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7 August 2008

Sir Ian Robinson Chairman. 7 August 2008. Brian Wallace Group Finance Director. 7 August 2008. Summary of performance. 2008 £m 130.0 40.0 170.0 (36.0) 134.0 19% 197.8 18.0p. Variance B(W)% (2.0) (33.3) (11.8) (6.8) (15.7) (8.8) (15.5). 2007 £m 132.7 60.0

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7 August 2008

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  1. Sir Ian Robinson Chairman 7 August 2008

  2. Brian Wallace Group Finance Director 7 August 2008

  3. Summary of performance 2008£m 130.0 40.0 170.0 (36.0) 134.0 19% 197.8 18.0p Variance B(W)% (2.0) (33.3) (11.8) (6.8) (15.7) (8.8) (15.5) 2007£m 132.7 60.0 192.7 (33.7) 159.0 16% 216.9 21.3p Half year ended 30 June Continuing operations Operating profit(1) excluding High Rollers High Rollers Operating profit(1) Net finance costs(1) Profit before tax(1) Effective tax rate(1) EBITDA(1) EPS(1) (1) Before non-trading items

  4. Debt facilities maturity profile • Extended certain committed bank facilities • Signed further £125 million of new committed facilities • Repaid 7.25% bond in July - undrawn committed bank facilities of approx £433m on 5th August

  5. Summary of performance 2008£m 130.0 40.0 170.0 (36.0) 134.0 19% 197.8 18.0p Variance B(W)% (2.0) (33.3) (11.8) (6.8) (15.7) (8.8) (15.5) 2007£m 132.7 60.0 192.7 (33.7) 159.0 16% 216.9 21.3p Half year ended 30 June Continuing operations Operating profit(1) excluding High Rollers High Rollers Operating profit(1) Net finance costs(1) Profit before tax(1) Effective tax rate(1) EBITDA(1) EPS(1) (1) Before non-trading items

  6. Betting and Gaming (exc High Rollers) Gross Win Operating Profit Half year ended 30 June VarianceB(W)% (2.6) 11.4 (0.4) (33.3) (46.2) 9.5 (2.0) 2008£m 98.3 14.7 26.2 2.2 (3.8) (7.6) 130.0 2007(1)£m 100.9 13.2 26.3 3.3 (2.6) (8.4) 132.7 2007(1)£m 370.3 50.9 78.1 16.9 - - 516.2 VarianceB(W)% 6.5 51.3 22.9 (5.3) 13.0 2008£m 394.3 77.0 96.0 16.0 - - 583.3 UK Retail Ireland, Belgium & Italy eGaming Telephone Betting Other (2) Corporate Costs Total (1) Restated for discontinued operations and reallocation of Italy from other to Other European Retail (2) Other includes international development costs and start up costs associated with our Spanish joint venture

  7. UK Retail – Results Variance B(W)% 0.9 18.1 6.5 5.4 (8.3) (3.3) (21.8) (12.4) (9.9) (2.6) 2008 £m 251.8 142.5 394.3 (23.2) 371.1 1.5 (37.0) (104.6) (47.2) (34.7) (50.8) (237.3) 98.3 2007 £m 249.6 120.7 370.3 (18.2) 352.1 1.6 (36.8) (96.6) (45.7) (28.5) (45.2) (216.0) 100.9 Half year ended 30 June OTC gross win Machines gross win Total gross win Adjustments to gross win (1) Net revenue Associate income Gross profits tax Staff costs Property costs (2) Content costs (3) Other costs (inc. depn) (4) Operating costs Operating profit (1) Fair value adjustments, VAT (3) Pictures, data, levy, Sky (4) Depreciation = £21.4m (2007: £19.9m) (2) Rent, rates and utilities

  8. UK Retail – KPIs 200816.7% 1.1% 17.9% 6.6% 4% 1.6% £8.28 8,104 £676 200717.5% (5.2)% 14.2% 0.3% 4% 6.9% £8.14 8,155 £572 Variance B(W)% 1.7 (0.6) 18.2 Half year ended 30 June OTC margin Like for like OTC gross win growth Like for like machines gross win growth Like for like total gross win growth Like for like total costs (1) increase Like for like shop staff costs increase Stake per slip (2) Average number of machines Average weekly gross win per machine (2) Slips exclude machines (1) Excludes VAT, Freebets, Gross profits tax and FOBT tax

  9. Ireland 2008£m 47.6 (0.4) 47.2 (3.2) (28.5) 15.5 1.7% 282 2007£m 32.8 (0.2) 32.6 (2.2) (17.9) 12.5 15.7% 206 VarianceB(W)% 45.1 (59.2) 24.0 36.9 Half year ended 30 June Gross win Fair value adjustments Net revenue Duty / Gross profits tax Other costs Operating profit Like for like gross win increase Shop numbers at the end of the period

  10. eGaming – Net revenue VarianceB(W)% 18.5 19.8 (6.4) 76.0 19.4 2008£m 32.1 26.6 14.7 13.2 86.6 2007£m 27.1 22.2 15.7 7.5 72.5 Half year ended 30 June Sportsbook Casino Poker Games Net revenue

  11. eGaming – Results 2007£m 78.1 (5.6) 72.5 (4.1) (1.6) (8.4) (8.6) (12.6) (3.0) (7.9) (42.1) 26.3 VarianceB(W)% 22.9 19.4 (31.8) (0.4) %age of net revenue 5.6 2.0 12.5 13.0 21.8 3.9 10.9 64.1 30.3 %age of net revenue 5.6 2.2 11.6 11.9 17.4 4.1 10.9 58.1 36.3 2008£m 96.0 (9.4) 86.6 (4.9) (1.7) (10.8) (11.3) (18.9) (3.4) (9.4) (55.5) 26.2 Half year ended 30 June Gross win Fair value adjustments (1) Net revenue Gross profits tax Levy and licences Staff costs Software & geographical partners (2) Marketing (inc. affiliates) Banking and chargebacks Other costs (inc. depn) Operating costs Operating profit (1) Adjustments for free bets, promotions and bonuses (2) Payments to third party software and platform providers and geographical partners

  12. eGaming – KPIs 2007 441 182 £116 £86 2008 541 237 £129 £88 Half year ended 30 June VarianceB(W)% 22.7 30.2 (11.2) (2.3) Unique active players (000s) (1) Real money sign-ups (000s) (2) Cost per acquisition (3) Adjusted cost per acquisition (4) (1) A player who contributed to rake and/or placed a wager during the period (2) A new player who has registered and deposited funds during the period (3) Total of all online and offline marketing spend (including promotions and bonuses netted from revenue) and all affiliate expenses relating to deals where affiliates are paid a one-off fee for each sign-up and all bonus costs (except those relating to sign-ups from revenue share affiliates) divided by the aggregate real money sign-ups from non-affiliate sources and the number of real money sign-ups through affiliates that are paid a one-off fee. (4) As per cost per acquisition, but excluding any marketing costs attributed to CRM activity.

  13. Telephone Betting – Results (exc High Rollers) VarianceB(W)% (5.3) (4.9) 8.0 (4.8) (33.3) 2007£m 16.9 (0.6) 16.3 (2.5) (1.2) (4.8) (1.5) (3.0) (10.5) 3.3 %age of net revenue 29.4 9.2 18.4 %age of net revenue 32.9 9.0 21.9 2008£m 16.0 (0.5) 15.5 (2.3) (1.1) (5.1) (1.4) (3.4) (11.0) 2.2 Half year ended 30 June Gross win Fair value adjustments Net revenue Gross profits tax Levy Staff costs Direct operating costs(1) Other costs (inc. marketing & depn) Operating costs Operating profit (1) Direct operating costs include telephone, bandwidth and banking costs

  14. Telephone Betting – KPIs (exc High Rollers) VarianceB(W)% (11.8) 1.6 (7.4) (8.9) 20073,893 63p 7.4% 97.4 204 20083,434 62p 8.4% 90.2 186 Half year ended 30 June No. of calls (000s) (1) Agent cost per call Gross win margin Unique active players (000s) (2) Average monthly active player days (000s) (1) Number of calls (excluding customer service calls) (2) A player who has placed a wager during the period

  15. Analysis of 2008 Capex 2007£m27.6 5.6 0.1 1.9 0.5 35.7 - 37.8 23.5 61.3 97.0 2008£m15.3 5.2 4.2 2.5 1.2 28.4 118.1 - 24.3 142.4 170.8 Half year ended 30 June CapexUK Retail Ireland Italy eGaming and Telephone Betting Other Statutory and licence acquisitionsEastwoods Sponsio Other (2008 - Italy: £14.4m, Ireland: £9.9m) Total

  16. Cash Flow 2008 £m (24.1) (7.4) (139.3) 2008 £m208.0 (74.0) (170.8) (36.8) (54.4) 0.3 (34.8) 3.4 (122.3) (917.0) (1,039.3) 2.3 3.5 2007£m (32.7) (13.6) (50.7) 2007£m152.5 (32.2) (97.0) 23.3 (54.1) 5.0 - 5.9 (19.9) (948.9) (968.8) 2.6 3.2 Half year ended 30 June Cash generated by operations Interest and tax PPE capital spend Intangibles Businesses and acquired subsidiaries Total capital spend Cash flow after interest, tax and capital Dividends paid Proceeds from issue of shares and options Share buybacks Exchange and other movements Net borrowings movement Opening net borrowings Closing net borrowings Annualised net debt to EBITDA ratio (1) Annualised net debt to EBITDA ratio (1) adjusted for high rollers (1) Continuing operations only

  17. Christopher Bell Chief Executive 7 August 2008

  18. Machines and Content Extended opening hours UK Retail – performance drivers • First 3 months of year • 80% of estate open to 9.30pm • 15% of estate open to 10pm • B2 & B3 content now offered • £1 stake £500 jackpot • Blackjack and Poker • Improved machine estate • 8,002 machines in situ

  19. UK Retail – Results • Euro 2008 • £30m turnover • 21 of 31 matches won by favourites • 6 draws • Margin 12% 2008 vs 23% in 2004 • Royal Ascot • 2008: 11 favourites won (popular races) • 2007: 6 favourites won • Margin 10% 2008 vs 28% 2007

  20. UK Retail – operational focus • OddsOn! Loyalty Card launched in June • 400,000 active cards with customer details • >£1 million in free bets and bonuses • OTC content • Turf TV presentation issue • Machine innovation

  21. Ireland • Good performance – 45% gross win growth • Extended our lead as largest operator in Northern Ireland • 54 shop Eastwood Acquisition (Feb) • 6 McCartans shops (Apr) • All branded Ladbrokes, and trading in line with expectations • … and leader in Republic of Ireland • 7 new shops

  22. Italy • 25 acquired shops trading in line • Additional 8 shops acquired in H1 • Bersani roll-out slower than planned • 39 Bersani corners now trading • 19 Bersani shops now trading • Secured locations for further 34 shops and all corners • Expect openings to accelerate in H2 • Profit in 2009

  23. Spain • Sportium brand – JV with Cirsa • Madrid licence granted April 2008 • 18 outlets trading • Cirsa or 3rd party locations • In excess of 60 outlets expected by year end • Further regional regulation required

  24. Other International Development • Exploring new opportunities • Vietnam • India • China • Product development with AGTech

  25. Telephone Betting • £40 million High Rollers EBIT contribution • H1 2007 £60 million • Core business declining • Competitive landscape – online and telephone operators • Offshore enjoy favourable tax, levy and regulatory environment • High quality service

  26. eGaming – growth acceleration • Customer acquisition initiatives gaining traction • 19.4% NGR growth • 30.2% growth in sign-ups Television advertising

  27. eGaming – growth acceleration Increased Nordic Investment • TV brand awareness campaign • Regional content Betting in Play • Continuously growing content Poker • Liquidity shortfall constraining growth • Joining Microgaming network

  28. Summary • Good UK Retail performance • Strong machine growth aided by evening opening and improved dual screen machine estate • OTC positive growth despite poor results • Ireland expansion delivering growth • Good response to eGaming customer acquisition investment strategy • International diversification continues in Italy & Spain

  29. Q&A

  30. Appendix

  31. eGaming – KPIs Variance % B(W) 2008 2007 Half year ended 30 June Sportsbook Gross win margin Unique active players (000s) Average monthly active player days (000s) Yield per unique active player (£) (1) Casino Unique active players (000s) Average monthly active player days (000s) Yield per unique active player (£) (1) Poker Unique active players (000s) Average monthly active player days (000s) Yield per unique active player (£) (1) Games Unique active players (000s) Average monthly active player days (000s) Yield per unique active player (£) (1) 8.1% 7.9% 390 316 23.4 805 640 25.8 82 86 (4.7) 99 61 62.3 114 77 48.1 270 363 (25.6) 104 109 (4.6) 371 422 (12.1) 141 144 (2.1) 134 94 42.6 203 132 53.8 98 80 22.5 (1) Revenue per unique active player for the period

  32. Other European Retail Operating Profit Gross Win Half year ended 30 June 2007£m 12.5 1.0 (0.3) 13.2 Variance B(W)% Variance B(W)% 2008£m 15.5 1.8 (2.6) 14.7 2008£m 47.6 19.4 10.0 77.0 2007£m 32.8 17.0 1.1 50.9 45.1 14.1 809.1 51.3 24.0 80.0 n/a 11.4 Ireland Belgium Italy Total

  33. Belgium 2008 2007 Variance £m £m B(W)% Half year ended 30 June Gross win 19.4 17.0 14.1 Duty / Gross profits tax (7.1) (6.4) Other costs (10.5) (9.6) (9.4) Operating profit 1.8 1.0 80.0 Shop numbers 271 279 (2.9)

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