INTERIM RESULTS Half Year Ended 30 June 2016

Similar documents
INTERIM RESULTS Half year ended 30 June August 2015

Final results for 52 weeks to 27 December Ralph Topping, Chief Executive Neil Cooper, Group Finance Director

Paddy Power Betfair plc Prelim Results

2017 Interim Results. 14 September 2017

Financial Results. 27 February 2008

THE HOME OF BETTING William Hill corporate presentation September 2014

Introduction. Introduction. Financial Performance. Operational Review. Strategy & Outlook. Page 1

THE HOME OF BETTING William Hill PLC corporate presentation December 2015

WILLIAM HILL PLC 2014 interim results presentation

FY16 Q1 Results 3 rd March 2016

Strong underlying EBITDA growth with continued momentum in all divisions

Introduction. Financial Performance. Divisional Review. Strategy & Outlook

2015 final results 52 weeks ended 29 December February 2016

Driving Shareholder Value. 24 July 2015

Good Financial and Operational performance allied with strong progress on integration

RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

2016 Final results. 23 March 2017

GALA CORAL GROUP. Second quarter results for the twelve weeks ended 7 April Total results {1} FY11 m. FY12 m

H results presentation 26 weeks ended 30 June August 2015

Financial Results. 5 March 2007

Interim results August 2016

Results for the Six Months Ended 30 June 2011

Financial Results. 2 March 2006

WILLIAM HILL PLC 2014 ANNUAL GENERAL MEETING 8 MAY 2014

GALA CORAL GROUP RESULTS FOR THE 16 WEEKS ENDED 19 JANUARY 2013

FY12 INTERIM RESULTS 14 December 2011

Introduction. Introduction. Financial Performance. Operational Review. Development & Strategy. Page 1

Sportech PLC 2012 Interim Results Interim Results

Paddy Power Betfair plc Q Trading Update

Introduction: Roger Withers, Chairman Financial Review: Shuki Barak, CFO Operational & Strategic Review: Mor Weizer, CEO Questions and Answers

Foxtons Interim results presentation For the period ended 30 June 2018

FY13 INTERIM RESULTS 13 December 2012

Annual Report and Accounts 2011

Acquisition of Sky Betting & Gaming by The Stars Group. April 23, 2018 (Revised May 3, 2018)

Annual Report and Accounts 2008

Full year results presentation Year ended 31 March June 2018

YEAR END RESULTS 31 MARCH Russell Down, Chief Executive Chris Morgan, Group Finance Director

In light of this development, the Business Review presentation scheduled for 30 June may be rescheduled depending on how discussions progress.

Paddy Power Betfair plc Interim Results. Paddy Power Betfair plc (the Group ) announces interim results for the six months ended 30 June 2017.

Financial Results. 1 August 2006

Mr Green & Co AB. Interim Report January-September Per Norman CEO & Simon Falk CFO. 27 October 2017 Conference Call

Paddy Power Betfair plc Preliminary Results

Q Results presentation

Interim Results. 5 September 2005

Tabcorp Holdings Limited 2015/16

2018 Interim Results. 13 September 2018

EXPERIENCING ENTERTAINMENT THE RANK GROUP PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

2015 Twelve Months Results

Results presentation. Half year ended 30 September 2017

Tabcorp Holdings Limited. 2014/15 Full Year Results Presentation 13 August 2015

Trading Update & Historic Proforma. 25 May 2018

WILLIAM HILL PLC PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE 52 WEEKS ENDED 31 DECEMBER 2002

Interim results August 2017

Annual Report and Accounts 2013

Year ending 31 December [awaiting picture]

52 weeks to 30 Dec 14 m

FY16 YEAR END RESULTS 5 APRIL 2016

William Hill PLC. Strong profit growth continues in third quarter. 19 October 2012

H1 16 interim results. 22 September 2015

Paddy Power Betfair plc Interim Results

2018 Full Year Results 20 November 2018

2012 First Half Results 31 August 2012

Q2 Presentation August 23 rd 2018

Interim results for the six months ended 31 October Betfair delivers a strong first half; building momentum

Preliminary Results. 22nd February 2018

Significant strategic progress and continued momentum as Online delivers double-digit operating profit growth

GVC Holdings PLC. ("GVC" or the Group ) Interim Results

Results for the six months ended 31 March #SageResults

Successful first half sees double-digit revenue and profit growth

2Q 2017 Earnings Results. September 12, 2017

Interim Results. 19 July 2018

SEPTEMBER 17, 2018 SKY BETTING & GAMING UPDATE

Annual Report and Accounts. Gala Coral Group Limited. For the year ended 28 September Registered Number:

Results presentation. Year ended 31 March 2016

In accordance with the Listing Rules, I enclose a letter to Shareholders, for release to the market.

1H 19 Investor Presentation February 2019

Initial contract signed with Grupo Televisa Announced plan to open a new office in Bucharest to strengthen the trading function

Financial results & business update. Quarter ended 30 September October 2016

2017 Quarter 1 Financial Results. For the quarter ended 29 March 2017

Proposed Acquisition of Ladbrokes Coral Group plc

Financial results & business update. Quarter ended 31 March April 2018

Financial results & business update. Quarter and year ended 31 December February 2017

ANNUAL GENERAL MEETING

Sisal Group S.p.A. Condensed consolidated interim financial statements

2016 profit in line with revised guidance, encouraging start to 2017

Foxtons Preliminary results presentation For the year ended December 2018

STRATEGICALLY POSITIONED FOR GROWTH.

The attached Revised FY2018 Results Presentation corrects this error.

Full Year 2016 and Q4 Financial Results. For the year ended 31 December 2016

Full Year Results. for the year ended 31 August October 2018

Presenters GUSTAF HAGMAN VIKTOR FRITZÉN. Group CEO and Co-founder

The Stars Group Reports Second Quarter 2018 Results

Interim results August 2018

Acquisition of Fortbet Romanian Entities (Bet Active Concept S.R.L., Bet Zone S.R.L., Public Slots S.R.L., and Slot Arena S.R.L.)

Results for the Six Months Ended 30 June August 2010

TECHNOLOGY-DRIVEN PERFORMANCE MARKETING. March 2019

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LADBROKES PLC

Paddy Power Betfair plc Preliminary Results Momentum in core markets; Early podium position secured in US online market

FY2017 Financial Results

WILLIAM HILL PLC ANNOUNCEMENT OF INTERIM RESULTS

Transcription:

INTERIM RESULTS Half Year Ended 30 June 2016 4 August 2016

Disclaimer Certain statements included or incorporated by reference within this presentation may constitute "forward looking statements" in respect of the operations, performance, prospects and/or financial condition of Ladbrokes plc (the Company ). Generally, words such as may, could, will, expect, intend, estimate, anticipate, aim, outlook, believe, plan, seek, continue or similar expressions identify forward looking statements. Such statements are inherently predictive and speculative and are based on the Company s current expectations and beliefs concerning future events and are subject to a number of known and unknown risks and uncertainties beyond the Company s control that could cause actual future financial condition, performance or results to differ materially from any plans, goals and expectations referred to in these forward looking statements. Such statements are also based on numerous assumptions regarding the Company s present and future strategy and the environment in which it operates, which may not be accurate. The Company undertakes no obligation to update any forward looking statements contained in this presentation or any other forward looking statements it may make, save in respect of any requirement under applicable law or regulation. Nothing in this presentation should be construed as a profit forecast. Past performance cannot be relied upon as a guide to future performance and persons needing advice should consult an independent financial adviser. No representation or warranty (express or implied) of any nature is given nor is any responsibility or liability of any kind accepted by the Company or any of its directors, officers, employees, advisers, representatives or other agents, with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied), omissions, errors or misstatements in this presentation, or any other written or oral statement provided. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotions in section 21 of the UK Financial Services and Markets Act 2000. In making this presentation available, the Company makes no recommendation to buy, sell or otherwise deal in shares of the Company or in any other securities or investments whatsoever and you should neither rely nor act upon, directly or indirectly, any of the information contained in this presentation in respect of any such investment activity. This presentation may not be reproduced (in whole or in part), distributed or transmitted to any other person without the prior written consent of the Company and is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Any recipients of this presentation outside the UK should inform themselves of and observe any applicable legal or regulatory requirements in their jurisdiction, and are treated as having represented that they are able to receive this presentation without contravention of any law or regulation in the jurisdiction in which they reside or conduct business. In particular, the securities referred to in this presentation have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933. 2

INTRODUCTION John Kelly Chairman

Jim Mullen Chief Executive

Four key pillars to build a better Ladbrokes UK: GROW RECREATIONAL CUSTOMER BASE UK: DEVELOP MULTI-CHANNEL UK: INCREASE FOOTFALL IN RETAIL AUSTRALIA: GROW MARKET SHARE Health & Safety Responsible Gambling 5

2017 targets: Encouraging progress 2017 Targets 12 months to June 2016 Actual 2015 Actual 2014 Actual UK Retail Net revenue per shop (1) > FY14 392k 377k 356k EBIT per shop (2) > FY14 54k 51k 42k Digital 30% of Group net revenue (3) 22.7% 20.3% 18.6% Ladbrokes.com Actives over 1.3m 1.3m 1.1m 960k Ladbrokes More than 2x FY14 net revenue 2.0x 1.7x n/a Australia (4) Strategy is delivering improved customer metrics and improved profitability 6 (1) Excludes revenue from greyhound tracks (2) On a comparable basis and excludes greyhound tracks, associate income and exceptional items (3) Excludes High Rollers (4) Local currency

FINANCIAL OVERVIEW Richard Snow, CFO

H1 2016 Good underlying trading performance, strong results EBIT +34.4% 16H1 15H1 Variance m m Net revenue (1) 661.8 585.4 +13.1% Operating profit (1)(2) 52.3 38.9 +34.4% Finance costs (12.5) (14.2) +12.0% Profit before tax (1) 39.8 24.7 +61.1% Effective tax rate 12.3% 10.2% High Rollers (0.1) 2.8 n/a Underlying EPS (1) 3.4p 2.4p +41.7% Interim dividend 1.0p 1.0p - Net debt 227.2 414.3 (45.2)% Net revenue growth (1) : +13.1% (+10.4% ex. Euros) Operating profit: Marketing led strategy and strong product offer delivering Favourable OTC and sportsbook results benefitting from the unpredictability of the Premier League and Euros Tax: lower than medium term guidance Leverage: strong cash generation and 35m tax receipt reduces net debt leverage to 1.3x 8 Before exceptional items (1) Excluding High Rollers (2) Includes amortisation of acquisition related intangible assets of 2.2m in H116 and 2.7m in H115

Group Operating Profit +34.4% 6.6m 1.9m 2.7m ( 0.3m) 2.5m 52.3m 38.9m HY15 EBIT UK Retail Digital European Retail Telephone Corp Costs HY16 EBIT UK Retail: OTC staking stable despite increased margins; BetStation deliver; Machines ahead of expectations driven by slots strategy Digital: marketing investment driving growth in actives and stakes per active; Gaming strong - regulatory impact as expected European Retail: Republic of Ireland 4 th consecutive quarter of profitability 9 Before exceptional items

UK Retail operating profit ahead of expectations 12.0m (9.3)m 14.1m (1.5)m (8.7)m 56.9m 7.9m results driven (1) 63.5m HY15 EBIT OTC Net Revenue Machines Net Revenue GPT/MGD Marketing Other Costs/SIS HY16 EBIT OTC Net revenue: +7.7% (Q2 +7.4%) OTC staking flat: stable despite higher margins BetStation: c.10% of OTC staking in 16H1 vs. c.4% in 15H1 - football and sports growth; gross win up 172% year on year Gross win margin: 17.4% (+1.4ppts) vs. 5 year average of c.16.5% Machines: 9 th consecutive quarter of growth (2) driven by slots strategy Operating costs: 3.8% up on 15H1 (National Living Wage and voluntary single scheduling) Estate optimisation: 6 closures in H1; c.19 scheduled in H2 10 (1) Calculated by comparing 2016 H1 gross win margin vs. normalised margin of 16.75% (2) On per shop per week yoy basis

UK Retail trends supportive of our FY17 targets Total Net Revenue Per Shop Trends (1)(2) Inc. Euro 2016 Inc. World Cup 180 176 180 186 191 201 196 Net revenue per shop continues to grow in H1 Customers responding to value proposition are we winning share? BetStation gross win +172% 12-13 Ave. 14 H1 14 H2 15 H1 15 H2 16 H1 16 H1 adj(3) OTC net revenue per shop ( 000) Machine net revenue per shop ( 000) Gaming machines; sustained focus on lower staking play +12.2% ABB Code implementation/ Clarity roll-out 50+ B2 regulation implementation +7.9% Regular product launches continue to deliver growth in machines gross win +4.9% +5.9% +4.3% +4.6% +3.7% Slots the key driver (16H1 40% of machine gross win vs. 15H1 38%) +1.5% +1.5% Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Now target net revenue growth of c.4-5% for FY16 11 Machine GW yoy growth (1) 2013 net revenue has been restated for the VAT impact to enable like for like comparison (2) Excludes revenue from greyhounds tracks (3) Calculated using 2015 H2 gross win margin of 16.4%

UK Retail H1 costs trends broadly in line with guidance, H2 increase 16H1 m 15H1 m Variance Staff 108.0 102.4 +5.5% Property 54.8 56.8 (3.5)% Content 47.0 45.9 +2.4% Marketing 12.5 11.0 +13.6% Depreciation 20.4 18.7 +9.1% Other 42.7 40.2 +6.2% Operating Costs 285.4 275.0 +3.8% Staff costs impacted by National Living Wage and implementation of voluntary single scheduling Property benefit from shop closures Marketing includes staff incentives payments for multi-channel ( 1.1m) Depreciation increase reflects investment in shop fabric 2016 cost guidance c.4-5% increase: Higher revenue share due to Machines and BetStation outperformance Staff costs around voluntary single scheduling and higher bonus provisions 12

Digital Net Revenue +40.9% strong customer metrics 11.6m (0.4)m 10.1m 0.8m 158.1m 23.8m 112.2m 4.2m results driven (1) 15H1 NGR H1 Sportsbook H1 Gaming Exchanges Australia Other regulated 16H1 NGR Ladbrokes.com Sportsbook (2) : staking +30.4% (3) (Mobile +44.5%); strong H1 margins; Euros H1 4.7m NGR Gaming (2) : seventh consecutive quarter of yoy growth for both NGR and actives Australia (4) : staking +53.7% as we maintain momentum and build market share (1) Calculated by comparing 2016 H1 gross win margin vs. normalised margin of 7.25% (2) Ladbrokes.com 13 (3) Adjusted for the impact of significant HVC activity in Q1 2015 (4) Local currency

Ladbrokes.com and Exchanges EBIT 15H1 EBIT Marketing Tax /other variable costs (11.0)m Fixed Costs Net revenue 16H1 EBIT (9.6)m (18.4)m (11.2)m (4.0)m 35.0m Investment programme delivering returns in H1 Sportsbook: core stakes per active +12.8%, actives +38.4% NGR growth: Sportsbook (1) +48.0%; Gaming +26.8% Marketing: H1 35% of NGR Multi-channel customers delivered c.10% of Sportsbook NGR 14

Digital Ladbrokes Australia 16H1 AUDm 15H1 AUDm Variance Staking 1,002.3 652.0 +54% Gross win 98.3 62.8 +57% Gross win margin 9.8% 9.6% +0.2ppts Net revenue 69.9 49.4 +42% Operating costs (65.9) (44.2) +49% Operating profit 4.0 5.2 (23)% Increased marketing and promotional intensity developing market share Actives 116k (+71%) targeting recreational customers H1 Marketing at 32% of NGR (15H1: 28%) Operating costs: investment in people, product, technology and brand to support growth strategy Maintain approach in H2 15

European Retail investment and restructuring = growth 16H1 15H1 Variance Net revenue Belgium ( m) 41.9 35.6 +18% Ireland ( m) 32.4 33.6 (4)% Spain JV (1) ( m) 19.3 13.9 +39% EBIT Belgium ( m) 6.1 6.1 n/a Ireland ( m) 4.4 2.5 +76% Spain JV (1) ( m) (0.3) (1.1) +73% European Retail ( m - reported) 8.9 6.2 +44% Belgium (2) : investment in SSBTs and virtual products delivering growth (staking +14%); net revenue growth (+18%) Ireland: Northern Ireland EBIT down slightly impacted by adverse horse racing results; Republic of Ireland delivered strong like-for-like staking growth (+9.7%) and 4 th consecutive quarter of profitability Spain: regional roll-out helping to drive revenue growth 16 (1) Being 50% share of Sportium JV gross win and EBIT (2) Local currency

Cashflow and Exceptional Items 16H1 m EBITDA (1) 91.8 Net finance expense (14.1) Capex (31.8) Other 25.0 Operating free cash flow 70.9 Tax 34.6 Dividend (20.3) Exceptional items (8.3) Net debt movement 76.9 Opening net debt (304.1) Closing net debt (227.2) Net Debt / EBITDA (1) 1.3x Capex H1: UK Retail 15.3m; Digital 12.4m; Other 4.1m FY16 guidance: c. 90-95m Tax Receipt of tax refund from HMRC of 35m following steps taken in 2015 to accelerate the use of historic corporation tax losses Dividend Payment of 2015 final dividend of 2.0 pence per share Exceptional Items H1 14.5m P&L charge: mainly relates to Coral merger and integration planning costs. 8.3m incurred in cash in H1. Higher cash exceptionals relating to the merger expected in H2 Net Debt Comprises 2 bonds - 225m 7.625%, maturing 2017 and 100m 5.125% retail bond, maturing 2022 Cash (2) at H1 2016 101m (H1 2015: 21m) 17 (1) Excludes exceptional items, includes High Rollers (2) Excludes customer balances

Updated Guidance for FY16 Group Continued increased marketing investment in UK Retail, Ladbrokes.com and Australia Depreciation & amortisation c. 82-84m Capex c. 90-95m UK estate investment programme continuing Sporting results expected to normalise UK Retail Estate optimisation: c.25 shop closures in FY16 FY16 OTC gross win margin target range c.17% as sporting results are expected to normalise Machines revenue: competitor response, target upgraded to c.4-5% growth Operating costs increase c.4-5%; includes impact of National Living Wage and implementation of voluntary single scheduling Digital Ladbrokes.com FY16 marketing intensity c.30% of NGR, focus remains on investment over short-term profitability FY16 margin c.7.25% to permit value based offers Australia target strong double digit revenue growth; continue to invest in marketing Brexit No economic impact identified to date 18

Summary Strong returns from sustained investment in marketing and products Strong balance sheet supported by good cash generation Current trading to 2 August: Net revenue +14.5%: H2 has started well following a strong finish to Euro 2016 offset slightly by a customer friendly Goodwood & Galway festival H2 focus will remain on marketing investment over short term profitability FY expectations increase although margins expected to normalise 19

BUILDING A BETTER LADBROKES Jim Mullen Chief Executive

UK RETAIL Making it Happen

UK Retail: Recreational customers are responding Plan A focuses: Brand: increased presence; relevant to customers; call to action Football: competitive promotion and pricing BetStation: compelling product offer Multi-channel: reward Multi-channel behaviour Machines: lower stakes strategy along with further responsible gambling measures Staking growth ahead of competitors 22

Football: Delivering growth Continued marketing investment FA official partner and official bookmaker SPFL sponsorship Tabloid presence Product diversity BetStation Coupon range Consistent value offer +15% yoy Staking lfl, 15/16 football season (1) +38% yoy Gross win lfl, 15/16 football season (1) +4pps yoy 16H1 football as a % of staking Favourable results welcome but underlying metrics are encouraging 23 (1) 2015/2016 football season from August 2015 to May 2016

BetStation: Market leading position Positive staking trends continued 10% of OTC staking (vs. 15H1 4%) 75%+ on football Record staking: 5m+ staking week during Euro 16 Average stake size: 16H1 +9.7% yoy BetStation Staking per shop per week Opportunities for growth More sports/events More in-play More higher team multiples BetStation now a core part of retail offer 24

Multi-channel: 10 months, 100,000+ customers and growing Over 100,000 actives in less than a year since August 2015 full roll out 16H1 70k+ new Multi-channel actives Euro 16 period alone generated over 13k new actives Geographic expansion into Republic of Ireland Shops and shop colleagues the most effective cross sell / affiliate network c.9,400 shop colleagues rewarded so far Attractive Multi-channel customer profile Higher retention than pure.com players More valuable than pure.com players On-going momentum 25

Multi-channel: Continued enhancement opportunities Key features released in 16H1 on our loyalty app The Grid Extended the Grid app functionality to the Republic of Ireland Released login via touch ID Extended bet tracking to Horse, Greyhound and Lottos Released Top Bets Widget Quick Bet Wizard Product evolution essential, more to play for 26

Machines: Content focused strategy Focus on lower stakes/slots Over 90% of Machine GW from stakes at or below 50 Slots GW +11% yoy Slots currently c.40% of GW Successful implementation of Time limit down from 30 minutes to 20 minutes Stake limit down from 250 level to 150 Algorithms independently reviewed Differentiated High Street offer New menu recently rolled out New games keep coming: 16H1 released 20 games, of which 15 are slots games Myth busters (1) Average stake per spin 4.56 Average spend per session 6.36 Average session time 6 minutes 28 seconds Slots / B3 growth gives more sustainable income 27 (1) Being 16H1 statistics

LADBROKES.COM Making it Happen

Ladbrokes.com record half year Edit My Acca Euro Hub Multi-channel Games Customer driven not technology driven 29

Sportsbook: 10 th consecutive quarter of staking growth Focus on key growth areas 16H1 Sportsbook Stakes 15H1 Sportsbook Stakes (1) +45% yoy Mobile +44% yoy BIP (1) +51% yoy Football (1) Desktop 22% Mobile 78% Desktop 30% Mobile 70% Benefitting from marketing investment Marketing spend +78% More content 2x more events streamed than 15H1 +30% yoy Staking (1) +38% yoy Actives Recreational customers driving growth 30 (1) Adjusted for the impact of losses following significant HVC activity in Q1 2015

Gaming: 7 th consecutive quarter of revenue growth Focus on products in 16H1 124 games released 15 Multi-channel games released New Mobile games: four per week on average Benefitting from marketing investment Mobile growth 69% of 16H1 Gaming NGR (15H1 51%) Playtech migration completed -7% -19% -2% Flat +23% +9% +35% +19% +13% +13% +51% +42% +44% +29% +27% +26% +12% +10% 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 Gaming Actives yoy Gaming NGR yoy Improved offer continues to drive customer response 31

LADBROKES AUSTRALIA Making it Happen

Ladbrokes Australia: goes from strength to strength Differentiated product Richer content e.g. InfoHub Market is money back, we are Odds Boost Higher marketing intensity Localising the brand: from a British brand to a more local brand Higher marketing presence sustaining 3 rd brand awareness ranking Smarter and more effective CRM +54% yoy +42% yoy +71% yoy Staking (1) NGR (1) Actives Recreational growth 33 (1) Local currency

EUROPEAN OPERATIONS UPDATE

Continued international progress Belgium Staking +18% yoy (1) Multi-channel programme launched Virtual regulation changes on hold Republic of Ireland Staking +10% yoy lfl (1) Benefits of Examinership continue More competitive and multi-channel released with good start Spain Continued top line growth: staking +53% (1) Digital growing well: actives +25% Outlets increased to 1,672, up 29%; launched in three new regions Balanced portfolio in regulated markets 35 (1) Local currency

SUMMARY

Strategy one year on Euro 2016 vs. Euro 2012 UK RETAIL OTC (1) LADBROKES.COM Sportsbook Staking +44% +103% Gross win +109% +348% Number of bets +47% +100% Sportsbook football actives n/a +65% Last four Saturdays of the 2015/16 EPL vs. 2014/15 EPL UK RETAIL OTC (1) LADBROKES.COM Sportsbook Football staking +25% +26% Total staking +2% +24% Total number of bets +3% +51% Sportsbook actives n/a +30% 37 (1) Like for like for UK Retail

Good progress and opportunities ahead Results ahead of our expectations Customer metrics are driving growth Ladbrokes is winning recreational customers Cultural change pride and belief Merger moves closer and is a significant opportunity But focus remains on customers and customer driven investments Much remains to be done 38

Q&A

APPENDICES

Merger update CMA conclusions Completion from CMA perspective Aug /Sep 2016 16Q4 to 17Q1 July 2016 Late Sep /early Oct 2016 Divestment / sale process Significant integration activities

Group Net revenue and operating profit (ex. High Rollers) Half year ended 30 June 2016 m Net revenue Operating profit (1) 2015 m Variance m 2016 m 2015 m Variance m UK Retail 436.6 410.5 +26.1 63.5 56.9 +6.6 Digital 158.1 112.2 +45.9 (9.6) (11.5) +1.9 European Retail 64.4 60.0 +4.4 8.9 6.2 +2.7 Telephone Betting 2.7 2.7 - (0.8) (0.5) (0.3) Corporate costs - - - (9.7) (12.2) +2.5 Total 661.8 585.4 +76.4 52.3 38.9 +13.4 42 (1) Operating profit is before exceptional items

UK Retail KPIs Half year ended 30 June 2016 2015 Variance OTC Gross win margin 17.4% 16.0% +1.4pps Like for like OTC amts staked 1.3% (3.6%) +4.9pps Like for like OTC net revenue increase/(decrease) 8.8% (5.0%) +13.8pps Like for like total costs (1) increase 5.3% 1.8% (3.5)pps Like for like shop staff costs increase 6.7% 3.9% (2.8)pps Stake per slip (2) 8.62 8.43 +2.3% Average number of machines 8,576 8,732 (1.8)% Average weekly gross win per machine 1,083 1,022 +6.0% Average weekly machine gross win per shop 4,316 4,070 +6.0% 43 Like for like takes into account shop openings and closures (1) Excludes MGD, freebets and gross profits tax (2) Slips exclude machines

UK Retail P&L (ex. exceptional items) 44 Half year ended 30 June 2016 m 2015 m Variance OTC gross win 202.8 185.4 +9.4% Machines gross win 241.5 230.7 +4.7% Total gross win 444.3 416.1 +6.8% OTC net revenue 197.6 183.5 +7.7% Machines net revenue 239.0 227.0 +5.3% Total net revenue 436.6 410.5 +6.4% Associate income 1.8 1.6 +12.5% Gross profits tax (29.9) (27.2) (9.9)% Machine Games Duty (59.6) (53.0) (12.5)% Staff costs (108.0) (102.4) (5.5)% Property costs (1) (54.8) (56.8) +3.5% Content costs (2) (47.0) (45.9) (2.4)% Marketing (12.5) (11.0) (13.6)% Other costs (inc. depn) (3) (63.1) (58.9) (7.1)% Operating costs (285.4) (275.0) (3.8)% Operating profit 63.5 56.9 +11.6% (1) Rent, rates and utilities (2) Pictures, data, levy, Sky TV (3) Depreciation = 20.4m (2015: 18.7m)

UK Retail Gross win adjustments Half year ended 30 June 2016 2015 OTC Machines Total OTC Machines Total Variance m m m m m m Gross win 202.8 241.5 444.3 185.4 230.7 416.1 +6.8% Freebets (5.2) (2.5) (7.7) (1.9) (3.7) (5.6) (37.5)% Net revenue 197.6 239.0 436.6 183.5 227.0 410.5 +6.4% 45

Digital Ladbrokes.com & Exchanges P&L (ex. exceptional items) Half year ended 30 June 2016 m % of net revenue 2015 m % of net revenue Variance Net revenue 119.6 84.6 +41.4% Betting tax / Irish VAT (1.1) (0.4) (175)% POC tax (18.7) (12.6) (48.4)% Levy and licenses (0.6) 0.5 (0.4) 0.5 (50.0)% Staff costs (16.7) 14.0 (15.6) 18.4 (7.1)% Software and geographical partners (1) (13.3) 11.1 (9.7) 11.5 (37.1)% Marketing (including affiliates) (42.4) 35.5 (24.0) 28.4 (76.7)% Banking and chargebacks (4.2) 3.5 (3.2) 3.8 (31.3)% Other costs (including depreciation and amortn) (2) (32.2) 26.9 (29.7) 35.0 (8.4)% Operating costs (2) (109.4) 91.5 (82.6) 97.6 (32.4)% Operating loss (9.6) (11.0) +12.7% EBITDA 4.6 3.4 +35.3% 46 (1) Payments to third party software and platform providers and geographical partners (2) Includes depreciation of 12.5m ( 12.5m in 2015) and amortisation of acquired intangibles of 1.7m (2015: 1.9m)

Digital - Australia P&L (ex. exceptional items) Half year ended 30 June 2016 % of net 2015 % of net m revenue m revenue Variance Gross win 49.9 32.4 +54.0% Freebets (10.8) (4.4) (145.5)% GST (3.6) (2.6) (38.5)% Net revenue 35.5 25.4 +39.8% Levy and licenses (8.4) 23.7 (5.2) 20.5 (61.5)% Staff costs (5.8) 16.3 (4.2) 16.5 (38.1)% Marketing (including affiliates) (11.4) 32.1 (7.0) 27.6 (62.9)% Other costs (including depreciation) (1) (7.8) 22.0 (6.3) 24.8 (23.8)% Operating costs (1) (33.4) 94.1 (22.7) 89.4 (47.1)% Operating profit 2.1 2.7 (22.2)% EBITDA 2.6 3.8 (31.6)% 47 (1) Includes depreciation and amortisation of 0.5m ( 1.1m in 2015)

Digital KPIs - Ladbrokes.com Half year ended 30 June 2016 2015 Variance Total Digital Unique active players (1) (000s) 1,034 739 +39.9% Real money sign-ups (2) (000s) 628 388 +61.9% Sportsbook Gross win margin 7.7% 5.2% +2.5pp Unique active players (1) (000s) 848 610 +39.0% Average monthly active player days (000s) 1,659 1,205 +37.7% Yield per unique active player ( ) (3) 69 56 +23.2% Casino Unique active players (1) (000s) 262 166 +57.8% Average monthly active player days (000s) 234 157 +49.0% Yield per unique active player ( ) (3) 115 128 (10.2)% Poker Unique active players (1) (000s) 17 16 +6.3% Average monthly active player days (000s) 32 42 (23.8)% Yield per unique active player ( ) (3) 98 99 (1.0)% Games Unique active players (1) (000s) 207 151 +37.1% Average monthly active player days (000s) 245 197 +24.4% Yield per unique active player ( ) (3) 81 96 (15.6)% Bingo Unique active players (1) (000s) 57 44 +29.5% Average monthly active player days (000s) 96 95 +1.1% Yield per unique active player ( ) (3) 111 139 (20.1)% 48 (1) A player who contributed to rake and/or placed a wager during the half year (2) A new player who has registered and deposited funds during the half year (3) Revenue per unique active player for the half year