Sir Ian RobinsonSir Ian RobinsonGroupGroup ChairmanChairman

Sir Ian RobinsonSir Ian RobinsonGroupGroup ChairmanChairman

Brian WallaceBrian WallaceGroup Finance DirectorGroup Finance Director

Brian WallaceBrian WallaceGroup Finance DirectorGroup Finance Director

Hilton Group plc - Summary of PerformanceHilton Group plc - Summary of Performance

Hilton International 255.3 268.0 (4.7)%

Worldwide Betting 113.5 92.3 23.0%

Casinos & disposal businesses 2.8 22.6

Central costs and income (12.4) (11.6)

Operating profit* 359.2 371.3 (3.3)%

Interest (79.0) (94.6) 16.5%

Profit before tax* 280.2 276.7 1.3%

Effective tax rate* 20.0% 20.7%

Hilton International 255.3 268.0 (4.7)%

Worldwide Betting 113.5 92.3 23.0%

Casinos & disposal businesses 2.8 22.6

Central costs and income (12.4) (11.6)

Operating profit* 359.2 371.3 (3.3)%

Interest (79.0) (94.6) 16.5%

Profit before tax* 280.2 276.7 1.3%

Effective tax rate* 20.0% 20.7%

Year toYear to3131stst December December

20012001£m£m

Year to Year to 3131stst December December

2000 2000£m£m

EBITDA* 479.8 478.4 0.3%EBITDA* 479.8 478.4 0.3%

VarianceVarianceVarianceVariance

* Before goodwill amortisation and exceptional items* Before goodwill amortisation and exceptional items

Hilton International - Like for Like ProfitHilton International - Like for Like Profit

Reported profit*Reported profit* 255.3 255.3 268.0 268.0 (4.7)%(4.7)%

Scandic profitScandic profit (33.9) (33.9) - -

Comparable profit*Comparable profit* 221.4 221.4 268.0 268.0 (17.4)%(17.4)%

Royal Bank of Scotland rent Royal Bank of Scotland rent 16.816.8 - -

Disposals / new openings Disposals / new openings (9.0) (9.0) (11.0) (11.0)

Foreign exchangeForeign exchange (1.0) (1.0) - -

Like for like profit*Like for like profit* 228.2 228.2 257.0 257.0 (11.2)%(11.2)%

* Before goodwill amortisation and exceptional items* Before goodwill amortisation and exceptional items

20012001

£m£m

20002000£m£m VarianceVarianceVarianceVariance

Hilton International Worldwide Occupancy, Hilton International Worldwide Occupancy, Rate and RevPAR Growths vs 2000Rate and RevPAR Growths vs 2000Like for Like Hotels, Constant CurrenciesLike for Like Hotels, Constant Currencies

1010

55

00

(5)(5)

(10)(10)

(15)(15)

%%

Qtr 1Qtr 1 Qtr 2Qtr 2 Qtr 3Qtr 3 Qtr 4Qtr 4

Occ % growthOcc % growth Rate growthRate growth RevPAR growthRevPAR growth

8.0%8.0%

1.7%1.7%

(4.2%)(4.2%)

(11.4%)(11.4%)

AugAug

Hilton International Worldwide Occupancy, Hilton International Worldwide Occupancy, Rate and RevPAR Growths vs 2000/01Rate and RevPAR Growths vs 2000/01Like for Like Hotels, Constant CurrenciesLike for Like Hotels, Constant Currencies

55

00

(5)(5)

(10)(10)

(15)(15)

%%

SepSep OctOct NovNov DecDec JanJan

1.0%1.0%

(10.6%)(10.6%)(11.7%)(11.7%)

(14.3%)(14.3%)

(7.3%)(7.3%)

(4.7%)(4.7%)

Occ % growthOcc % growth Rate growthRate growth RevPAR growthRevPAR growth

Like for Like HotelsLike for Like Hotels

55

00

(5)(5)

(10)(10)

(15)(15)

1010

(20)(20)

(25)(25)

(30)(30)

(35)(35)

Hilton UK Occupancy Growth vs 2000/01Hilton UK Occupancy Growth vs 2000/01

AugAug SepSep OctOct NovNov DecDec JanJan

London 5 StarLondon 5 Star London 4 StarLondon 4 Star ProvincesProvinces

%%

Hilton UK Rate Growth vs 2000/01Hilton UK Rate Growth vs 2000/01

Like for Like HotelsLike for Like Hotels

55

00

(5)(5)

(10)(10)

(15)(15)

1010

(20)(20)

AugAug SepSep OctOct NovNov DecDec JanJan

%%

London 5 StarLondon 5 Star London 4 StarLondon 4 Star ProvincesProvinces

Hilton UK RevPAR Growth vs 2000/01Hilton UK RevPAR Growth vs 2000/01

Like for Like HotelsLike for Like Hotels

00

(10)(10)

1010

(20)(20)

(30)(30)

(40)(40)

(50)(50)

AugAug SepSep OctOct NovNov DecDec JanJan

%%

London 5 StarLondon 5 Star London 4 StarLondon 4 Star ProvincesProvinces Total UKTotal UK

Hilton vs London Market - Cumulative Year to Hilton vs London Market - Cumulative Year to Date RevPAR PremiumDate RevPAR Premium

9090

8585

8080

7575

7070

6565

6060

5555

5050

1212

1010

88

66

44

22

00

Aug01Aug01 Sep01Sep01 Oct01Oct01 Nov01Nov01 Dec01Dec01Jul01Jul01Jun01Jun01May01May01Apr01Apr01Mar01Mar01Feb01Feb01Jan01Jan01Dec00Dec00

RevPAR £RevPAR £ Premium %Premium %

Hilton RevPAR PremiumHilton RevPAR Premium Hilton RevPARHilton RevPARMarket RevPARMarket RevPAR

Market source: PKF Hotel Consultancy ServicesMarket source: PKF Hotel Consultancy Services

Hilton vs Provincial Market - Cumulative Year Hilton vs Provincial Market - Cumulative Year to Date RevPAR Premiumto Date RevPAR Premium

Aug01Aug01 Sep01Sep01 Oct01Oct01 Nov01Nov01 Dec01Dec01Jul01Jul01Jun01Jun01May01May01Apr01Apr01Mar01Mar01Feb01Feb01Jan01Jan01Dec00Dec00

6060

5858

5656

5454

5252

5050

4848

4646

4444

1010

88

66

44

22

00

RevPAR £RevPAR £ Premium %Premium %

4242

4040

99

77

55

33

11

Market source: PKF Hotel Consultancy ServicesMarket source: PKF Hotel Consultancy Services

Hilton RevPAR PremiumHilton RevPAR Premium Hilton RevPARHilton RevPARMarket RevPARMarket RevPAR

Germany, France, Benelux RevPAR Germany, France, Benelux RevPAR Growth vs 2000/01Growth vs 2000/01

1515

1010

55

00

(5)(5)

(10)(10)

(15)(15)

(20)(20)

(25)(25)

(30)(30)

(35)(35)

(40)(40)AugAug JanJanDecDecNovNovOctOctSeptSept

%%

Like for Like, Constant CurrencyLike for Like, Constant Currency

FranceFrance GermanyGermany BeneluxBenelux

Scandic - Financial UpdateScandic - Financial Update

Cost synergies Cost synergies £8m £8m £10m£10m

Debt funding costDebt funding cost 8% 8% 5.5%5.5%

Effective tax rateEffective tax rate 20% 20% 0% - 10% 0% - 10%

2001 EBITDA - second half2001 EBITDA - second half £41.4m £41.4m £42.9m£42.9m

AcquisitionAcquisitionmodelmodel

assumptionsassumptionsLatestLatest

viewview

Retail Betting 2,037.5 1,867.5 102.4 94.6

Vernons 29.9 31.7 5.5 5.6

Telephone Betting 284.7 243.5 3.6 2.1

eGaming 188.2 68.6 2.0 (10.0)

Worldwide Betting 2,540.3 2,211.3 113.5 92.3

Retail Betting 2,037.5 1,867.5 102.4 94.6

Vernons 29.9 31.7 5.5 5.6

Telephone Betting 284.7 243.5 3.6 2.1

eGaming 188.2 68.6 2.0 (10.0)

Worldwide Betting 2,540.3 2,211.3 113.5 92.3

RevenueRevenue Profit*Profit*2001

£m2001

£m2000

£m2000

£m2000

£m2000

£m

Worldwide Betting Profit ComparisonWorldwide Betting Profit Comparison

2001 £m

2001 £m

* Before goodwill amortisation and exceptional items.* Before goodwill amortisation and exceptional items.

Betting Margins - UK ShopsBetting Margins - UK Shops

20012001 15.9 15.9 14.214.2 14.914.9

20002000 14.214.2 14.814.8 14.514.5

Average ’96-’00Average ’96-’00 14.214.2 14.314.3 14.214.2

1st Half %

1st Half %

2nd Half %

2nd Half %

Total %

Total %

Adjusted for gross profits taxAdjusted for gross profits tax

eGaming Monthly TurnovereGaming Monthly Turnover

£m£m

3030

2020

1010

00

Jan 2001Jan 2001 Jan 2002Jan 2002

£8m£8m

£28m£28m

eGaming Sportsbook - 2001 Turnover by SporteGaming Sportsbook - 2001 Turnover by Sport

56%56%

34%34%

3%3%2%2% 1%1%

3%3%

FootballFootball

HorsesHorses

TennisTennis

GolfGolf

GreyhoundsGreyhounds

BasketballBasketball

OthersOthers

English soccerEnglish soccer

European tournamentsEuropean tournaments

International matchesInternational matches

Italian soccerItalian soccer

Spanish soccerSpanish soccer

German soccerGerman soccer

Scottish soccerScottish soccer

Other soccerOther soccer

eGaming Sportsbook - 2001 Football TurnovereGaming Sportsbook - 2001 Football Turnover

38%38%

20%20%

13%13%

10%10%

9%9%5%5%

3%3%2%2%

57%57%

20%20%

9%9%

2%2%1%1% 9%9%

United KingdomUnited Kingdom

Hong KongHong Kong

SingaporeSingapore

MalaysiaMalaysia

ItalyItaly

ThailandThailand

OthersOthers

eGaming Sportsbook – Turnover by CountryeGaming Sportsbook – Turnover by Country

Hilton Group plc - Exceptional ItemsHilton Group plc - Exceptional Items

Operating exceptional itemsOperating exceptional items

Scandic integration costs Scandic integration costs (24.5)(24.5) (24.5) (24.5)

Amounts written off tangible and Amounts written off tangible and intangible fixed assets and investmentsintangible fixed assets and investments (27.4)(27.4) - -

Non-operating exceptional itemsNon-operating exceptional items

Profit on fixed assetsProfit on fixed assets

Profit on sale of UK hotelsProfit on sale of UK hotels 29.629.6 342.6342.6

Loss on disposal of other tangible fixed assetsLoss on disposal of other tangible fixed assets (4.7) (4.7) 5.45.4

Profit on sale of non-European Profit on sale of non-European betting and gaming businessesbetting and gaming businesses 1.51.5 18.418.4

Provision for losses on fixed assets pending saleProvision for losses on fixed assets pending sale (6.5) (6.5) --

Discontinued: Profit on sale of investment propertiesDiscontinued: Profit on sale of investment properties 3.9 3.9 11.3 11.3

TotalTotal (28.1) (28.1) 353.2353.2

P&L effect£m

P&L effect£m

Cash effect£m

Cash effect£m

Hilton Group plc – Cash FlowHilton Group plc – Cash Flow

Opening net borrowingsOpening net borrowings (1,374.3)(1,374.3) (1,336.8)(1,336.8)

Cash inflow from operating activitiesCash inflow from operating activities 445.7445.7 462.0462.0

Interest, tax and dividends paidInterest, tax and dividends paid (267.3)(267.3) (276.7) (276.7)

Free cash flow Free cash flow 178.4 178.4 185.3185.3

Capital expenditureCapital expenditure (187.7)(187.7) (476.9)(476.9)

Proceeds from asset salesProceeds from asset sales 376.0376.0 22.022.0

Acquisitions / disposalsAcquisitions / disposals (486.2)(486.2) (244.4)(244.4)

(119.5)(119.5) (25.2)(25.2)

Exchange & other movementsExchange & other movements 19.9 19.9 (12.3)(12.3)

Net borrowings movementNet borrowings movement (99.6)(99.6) (37.5)(37.5)

Closing net borrowingsClosing net borrowings (1,473.9)(1,473.9) (1,374.3)(1,374.3)

2001£m

2001£m

2000£m

2000£m

Hilton Group plc - Analysis of Capital Hilton Group plc - Analysis of Capital ExpenditureExpenditure

Livingwell UK - major projectsLivingwell UK - major projects 14.114.1

Sao PauloSao Paulo 13.113.1

ZurichZurich 6.8 6.8

GatwickGatwick 6.0 6.0

Manchester DeansgateManchester Deansgate 6.0 6.0

Chicago DrakeChicago Drake 5.15.1

OtherOther 93.793.7

144.8144.8

Betting & GamingBetting & Gaming

BS 2000 EPOS System BS 2000 EPOS System 9.49.4

OtherOther 33.533.542.942.9

TotalTotal 187.7187.7

£m£m£m£m £m£m£m£mHilton InternationalHilton InternationalHilton InternationalHilton International

David MichelsDavid MichelsGroup Chief ExecutiveGroup Chief Executive

David MichelsDavid MichelsGroup Chief ExecutiveGroup Chief Executive

Hilton Group plc – Key IssuesHilton Group plc – Key Issues

Hotel RevPAR

Scandic

Horse race turnover and margin

BHB/Levy Saga

eGaming

Hotel RevPAR

Scandic

Horse race turnover and margin

BHB/Levy Saga

eGaming

Revenue Per Available Room - Like for Like*Revenue Per Available Room - Like for Like*

LondonLondon 81.7 81.7 78.378.3 4.3% 4.3% 75.0 75.0 87.7 87.7 (14.6%) (14.6%) 78.3 78.3 83.2 83.2 (5.8%)(5.8%)

ProvincesProvinces 51.1 51.1 48.0 48.0 6.5% 6.5% 49.7 49.7 51.3 51.3 (3.0%) (3.0%) 50.4 50.4 49.6 49.6 1.7%1.7%

Total UKTotal UK 63.2 63.2 59.5 59.5 6.2% 6.2% 59.759.7 65.3 65.3 (8.6%)(8.6%) 61.4 61.4 62.4 62.4 (1.6%)(1.6%)

Europe, MiddleEurope, MiddleEast & AfricaEast & Africa 47.9 47.9 47.747.7 0.4%0.4% 44.244.2 49.8 49.8 (11.2%) (11.2%) 46.1 46.1 48.3 48.3 (4.6%)(4.6%)

Asia/Australasia Asia/Australasia 50.4 50.4 47.947.9 5.2% 5.2% 55.2 55.2 56.2 56.2 (1.7%) (1.7%) 53.3 53.3 52.8 52.8 0.9%0.9%

The AmericasThe Americas 47.5 47.5 44.7 44.7 6.3% 6.3% 45.2 45.2 47.9 47.9 (5.6%) (5.6%) 46.346.3 46.2 46.2 0.3%0.3%

Total HiltonTotal Hilton 52.052.0 50.0 50.0 4.0% 4.0% 50.3 50.3 54.5 54.5 ( 7.7%) ( 7.7%) 51.3 51.3 52.2 52.2 (1.9%)(1.9%)

Scandic HotelsScandic Hotels 31.3 31.3 31.1 31.1 0.6%0.6% 31.3 31.3 31.131.1 0.6%0.6%

6 Months to December6 Months to December 6 Months to June6 Months to June

Year to 31Year to 31stst December December

20012001 20002000 GrowthGrowth 20012001 20002000 GrowthGrowth 20012001 20002000 GrowthGrowth

-- -- --

*All at Constant Currencies*All at Constant Currencies

Openings and Closures 2001Openings and Closures 2001

Copenhagen AirportCopenhagen AirportAdanaAdanaMelbourne Airport Melbourne Airport SofiaSofiaRhodes ResortRhodes ResortSorrentoSorrentoAucklandAucklandBangaloreBangaloreLuxembourgLuxembourgThe TrafalgarThe TrafalgarJeddahJeddahCairoCairoRas Al KhaimaRas Al KhaimaDubai CreekDubai CreekPort SudanPort Sudan

St.ErminsSt.ErminsHuddersfieldHuddersfieldKuala LumpurKuala LumpurStoke onTrentStoke onTrentBath WatersideBath WatersideNewcastleNewcastleEdinburgh BelfordEdinburgh BelfordAlgiersAlgiersJerusalemJerusalem

Sales/Closures Sales/Closures Openings Openings

Pipeline GrowthPipeline Growth

Chongqing, ChinaChongqing, ChinaKuwaitKuwaitLondon PaddingtonLondon PaddingtonKonya, TurkeyKonya, TurkeyCologneCologneNarita, Tokyo AirportNarita, Tokyo AirportSeoulSeoulCebu, PhilippinesCebu, PhilippinesSao PauloSao PauloRas Sudr Sinai, EgyptRas Sudr Sinai, EgyptShark Bay Resort, EgyptShark Bay Resort, EgyptAlexandriaAlexandriaLa Defense, ParisLa Defense, ParisLinkopingLinkopingScandic Copenhagen SydhavenScandic Copenhagen SydhavenScandic Stockholm AlvikScandic Stockholm AlvikScandic BrugesScandic BrugesConrad DublinConrad DublinConrad BangkokConrad Bangkok

Openings 2002Openings 2002 NewcastleNewcastle

HaitiHaitiDubrovnikDubrovnikCopenhagen Copenhagen Beirut Barrage ResidenceBeirut Barrage ResidenceRoyal Residences JeddahRoyal Residences JeddahYarra ValleyYarra ValleySharm NabqSharm NabqMakkah TowersMakkah TowersScandic TrondheimScandic Trondheim

Openings 2003Openings 2003 LagosLagos

BerlinBerlinMoscowMoscowMunich DornachMunich DornachBeirutBeirutKuala LumpurKuala LumpurDoha, QatarDoha, QatarDenarau, FijiDenarau, FijiTahiti PapeeteTahiti PapeeteTahiti RangiroaTahiti RangiroaTahiti Bora BoraTahiti Bora BoraConrad BaliConrad Bali

Openings 2004Openings 2004

Guest SatisfactionGuest Satisfaction

19991999 20002000 20012001

Completely or very satisfiedCompletely or very satisfied Fairly satisfiedFairly satisfied DissatisfiedDissatisfied

68%68% 71%71% 73%73%

9%9%

18%18%

9%9%

20%20%

12%12%

20%20%

Independent research carried out for Hilton International, based on Independent research carried out for Hilton International, based on a sample of approximately 50,000 respondents per annuma sample of approximately 50,000 respondents per annum

Hilton AwardsHilton Awards

BDRC British Hotel Guest Survey – Hotel Brand Performance in 2001 Awards: BDRC British Hotel Guest Survey – Hotel Brand Performance in 2001 Awards: -- British Business Travellers’ Leading Choice Hotel Brand of the YearBritish Business Travellers’ Leading Choice Hotel Brand of the Year

-- Ranked No.1 for brand loyaltyRanked No.1 for brand loyalty

Business Traveller Magazine Awards: UKBusiness Traveller Magazine Awards: UK- - Best New Business Hotel Worldwide: Copenhagen AirportBest New Business Hotel Worldwide: Copenhagen Airport-- Best Hotel Chain in UK Best Hotel Chain in UK -- Best Business Hotel in Western Europe: London HiltonBest Business Hotel in Western Europe: London Hilton

Business Traveller Magazine Awards: GermanyBusiness Traveller Magazine Awards: Germany-- Best Hotel Chain in EuropeBest Hotel Chain in Europe

-- Best Hotel Chain in Middle EastBest Hotel Chain in Middle East

- - Best Hotel Chain WorldwideBest Hotel Chain Worldwide

Hermes Awards, Paris:Hermes Awards, Paris:- - Best Customer Loyalty Programme: Hilton HHonorsBest Customer Loyalty Programme: Hilton HHonors- - Best Wellness and Fitness Concept: LivingWellBest Wellness and Fitness Concept: LivingWell

Hotels 214 278 144 112

Worldwide betting 30 40 40 42

Major property purchases 84 147 - -

Capital expenditure 328 465 184 154

Disposals - hotels (151) (13) (355) *

177 452 (171)

Hotels 214 278 144 112

Worldwide betting 30 40 40 42

Major property purchases 84 147 - -

Capital expenditure 328 465 184 154

Disposals - hotels (151) (13) (355) *

177 452 (171)

Cash 461 - 454

Shares 882 - 165

Memo: goodwill on acquisition 739 - 597

Hotels – Property net book value £2.5bn £2.8bn £2.6bn

Cash 461 - 454

Shares 882 - 165

Memo: goodwill on acquisition 739 - 597

Hotels – Property net book value £2.5bn £2.8bn £2.6bn

CapexCapex

Acquisitions (Stakis and Scandic)Acquisitions (Stakis and Scandic)

£m£m £m£m £m£m £m£m20002000 20012001 Plan 2002Plan 200219991999

* Potential sale and leaseback deal* Potential sale and leaseback deal

Occupancy Occupancy 63.3% 63.3% (3.1%)(3.1%)

Average Rate (£)Average Rate (£) 49.4 49.4 3.8%3.8%

RevPAR (£)RevPAR (£) 31.3 31.3 0.6%0.6%

GOP (£m)GOP (£m) 97.5 97.5 1.2%1.2%

GOP conversionGOP conversion 42.6%42.6% 2.7%2.7%

ProformaProformavsvs

20002000

Scandic Post Acquisition ResultScandic Post Acquisition Result

20012001

Stockholm Stockholm

MalmoMalmo

GothenbergGothenberg

HelsinkiHelsinki

CopenhagenCopenhagen

LinkopingLinkoping

Scandic RebrandingScandic Rebranding

Hilton Vienna DanubeHilton Vienna Danube

Hilton InnsbruckHilton Innsbruck

Hilton Brussels CityHilton Brussels City

Hilton BonnHilton Bonn

Hilton BremenHilton Bremen

Hilton DortmundHilton Dortmund

Hilton KarlsruheHilton Karlsruhe

Hilton NurembergHilton Nuremberg

Hilton London DocklandsHilton London Docklands

Hilton Stockholm SlussenHilton Stockholm Slussen

RebrandedRebranded To Rebrand 2002To Rebrand 2002

LivingWellLivingWell

Current MembershipCurrent Membership

UKUK 123,784123,784

InternationalInternational 15,20515,205

TotalTotal 138,989138,989

BrandingBranding

HiltonHilton 238 238 Hilton Hilton 229229

Scandic Scandic 143 143 Hilton Garden InnHilton Garden Inn 125125

ConradConrad 1212 Double Tree Double Tree 151151

Embassy SuitesEmbassy Suites 168 168

Homewood Suites Homewood Suites 104 104

HamptonHampton 1,1441,144

ConradConrad 1212

Hilton Hilton 467467 hotels hotels

HIHI HHCHHC

19951995 19961996 19971997 19981998 19991999 20002000 20012001

Average number of shops

PBIT £m 30.4 53.5 80.7 84.9 78.8 78.6 86.1

PBIT perShop £k 16.2 29.2 42.7 45.4 41.3 41.8 45.7

Average number of shops

PBIT £m 30.4 53.5 80.7 84.9 78.8 78.6 86.1

PBIT perShop £k 16.2 29.2 42.7 45.4 41.3 41.8 45.7

1,878 1,831 1,892 1,871 1,910 1,879 1,8821,878 1,831 1,892 1,871 1,910 1,879 1,882

2001 Year End Performance - UK and Jersey2001 Year End Performance - UK and Jersey

Betting Duty Modernisation - Turnover Betting Duty Modernisation - Turnover IncreaseIncrease

Year on year 6.10.01 – 31.01.02Year on year 6.10.01 – 31.01.02 +41.5%+41.5%

Estimated “real” increaseEstimated “real” increase +30%+30%

UK shops onlyUK shops only

Horseracing - Where the duty cut has goneHorseracing - Where the duty cut has gone

6 October 2001 – 31 January 20026 October 2001 – 31 January 2002

Duty 2000/01Duty 2000/01 £20.5m£20.5m

Duty 2001/02Duty 2001/02 £9.9m£9.9m

£10.6m£10.6m

Duty ModernisationDuty Modernisation

£2m£2m

£8.4m£8.4m

£0.2m£0.2m

Customer returns increaseCustomer returns increase

Levy increaseLevy increase

GP increaseGP increase

£m£m

1010

55

00

Telephone BettingTelephone Betting

Profits normalised at £6.6mProfits normalised at £6.6m

Returned to the UK post 6Returned to the UK post 6thth October tax change October tax change

New bet and call handling system installedNew bet and call handling system installed

Since 6Since 6thth October turnover up 62% October turnover up 62%

Test voice recognition call system this yearTest voice recognition call system this year

Levy/BHB/Media and Data Rights/SISLevy/BHB/Media and Data Rights/SIS

Levy on gross profits from 1st April 2002Levy on gross profits from 1st April 2002

BHB require bookmakers to sign commercial agreement of 1.5% BHB require bookmakers to sign commercial agreement of 1.5% of turnover for data and 1.0% for pictures (plus VAT) by 1of turnover for data and 1.0% for pictures (plus VAT) by 1stst May May 20022002

OFT investigating potential abuse of monopoly position and OFT investigating potential abuse of monopoly position and bundling of rights by BHB/RCA/Jockey Clubbundling of rights by BHB/RCA/Jockey Club

BHB vs William Hill at the ECJ over use of BHB vs William Hill at the ECJ over use of horseracing datahorseracing data

SIS has supply contracts with 8,300 of 9,300 potential betting SIS has supply contracts with 8,300 of 9,300 potential betting shopsshops

eGamingeGaming

£2m PBIT achieved in 2001 – ahead of forecast£2m PBIT achieved in 2001 – ahead of forecast

Customer volumes continue to grow rapidly:Customer volumes continue to grow rapidly:

RegisteredRegistered 260,000260,000

Active on SportsbookActive on Sportsbook 115,000115,000

Active on CasinoActive on Casino 27,00027,000

Available in 8 languages, 14 currencies with customers Available in 8 languages, 14 currencies with customers in 160 countriesin 160 countries

Since LaunchSince Launch

eGamingeGaming

Sportsbook turnover averaged £2.0m per week in 2001, Sportsbook turnover averaged £2.0m per week in 2001, now £3.0m per weeknow £3.0m per week

Chips purchased averaged £1.1m in 2001, £1.6m Chips purchased averaged £1.1m in 2001, £1.6m in Decemberin December

Balls turnover £0.5m per week Balls turnover £0.5m per week

Total eGaming turnover in 2001 reached £188m at 13.0%Total eGaming turnover in 2001 reached £188m at 13.0%

Ladbrokes brand ensures low customer acquisition costsLadbrokes brand ensures low customer acquisition costs

Sportsbook provides vital click through to casinoSportsbook provides vital click through to casino

eGamingeGaming

Localised and tailored partnershipsLocalised and tailored partnerships-- PlayboyPlayboy- Scandinavia- Scandinavia

Digital TVDigital TV- Ntl/ Telewest- Ntl/ Telewest- Sky- Sky- ‘attheraces’- ‘attheraces’

Constant improvement and developmentConstant improvement and development- One account- One account- Multi player poker- Multi player poker- Progressive Balls- Progressive Balls

Deal flowDeal flow- International white label- International white label- Brand and activity partnerships- Brand and activity partnerships