1 22 February 2007 Sir Ian Robinson Chairman

2 Rosemary Thorne Group Finance Director

3 Continuing operations Operating profit (1) Net finance costs (1) Interest income on Hotels sale proceeds Profit before tax (1) Effective tax rate (1) EBITDA (1) EPS (1) Year to 31 December Summary of performance (1) Before non-trading items 2006 £m (45.6) % p 2005 £m (16.9) % p Variance B(W)% 7.7 (169.8) N/A

4 UK Retail Ireland & Belgium eGaming Telephone Betting Vernons Central Costs Total Year to 31 December Betting and Gaming 2006 £m , £m £m (15.2) £m (0.1) 5.8 (17.6) Variance B(W)% (6.0%) 47.9% 13.5% n/a 1.7% 13.6% 7.7% Gross WinOperating Profit Variance B(W)% 4.7% 18.3% 17.3% 119.5% (3.6)% 9.9%

5 OTC gross win Machines gross win Total gross win Adjustments to gross win (1) Net revenue Gross profits tax Staff costs Property costs (2) Content costs (3) Other costs (inc. depn and FOBT tax) (4) Operating profit Year to 31 December UK Retail – Results (1) Fair value adjustments, VAT, associate income (2) Rent, rates and utilities 2006 £m (27.9) (75.0) (183.7) (89.1) (58.6) (86.1) £m (2.0) (96.9) (171.4) (78.2) (53.4) (73.9) Variance B(W)% (7.2) (13.9) (9.7) (16.5) (6.0) (3) Pictures, data, levy, Sky (4) Depreciation = £34.7m (2005: £29.8m), FOBT tax = £5.6m (2005:£nil)

6 Like for like Total gross win growth Like for like OTC gross win growth Like for like machines gross win growth OTC margin Like for like total costs (1) increase Like for like shop staff costs increase Stake per slip (2) Average number of FOBTs Average weekly gross win per FOBT Year to 31 December UK Retail – KPIs (1) Excludes VAT, Gross profits tax and FOBT tax % 1.1% 0.1% 16.9% 4% 2.9% £8.39 6,743 £ % (2.3)% 7.7% 16.1% 5% 7.3% £8.47 6,403 £545 Variance B(W)% (0.9) 5.3 (1.3) (2) Slips exclude machines

7 Gross win Fair value adjustments Net revenue Duty / Gross profits tax Other costs Operating profit Shop numbers Year to 31 December Ireland 2006 £m 48.9 (0.4) 48.5 (5.1) (29.1) £m 34.3 (0.2) 34.1 (3.8) (23.4) Variance B(W)% 42.6 (24.4)

8 Sportsbook Poker Casino Games Gross Win Year to 31 December eGaming – Gross win 2006 £m £m Variance B(W)% 40.6 (2.7)

9 Gross win Fair value adjustments (1) Net revenue Gross profits tax Levy Staff costs Software & geographical partners (2) Marketing (inc. affiliates) Banking and chargebacks Other costs (inc. depn) Operating profit eGaming – Results 2006 £m (10.3) (6.9) (2.1) (11.0) (29.0) (17.3) (7.8) (13.0) 47.0 %age of net revenue Variance B(W)% £m (6.9) (5.8) (1.5) (10.2) (26.9) (14.2) (5.3) (10.9) 41.4 Year to 31 December %age of net revenue (1) Adjustments for free bets, promotions and bonuses (2) Payments to third party software and platform providers and geographical partners

10 Unique active players (000s) (1) Real money sign-ups (000s) (2) Cost per acquisition (3) Adjusted cost per acquisition (4) Year to 31 December eGaming – KPIs £91 £ £85 £62 Variance B(W)% (7.1) 9.7 (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 and affiliate expenses divided by the aggregate real money sign-ups (4) Total of all online and offline marketing spend less any CRM spend divided by the total real money sign-ups

11 Gross win exc. High Rollers Fair value adjustments Net revenue exc. High Rollers High Rollers’ net revenue Net revenue Gross profits tax Levy Staff costs Direct operating costs Other costs (inc. marketing and depn) Operating profit Telephone Betting – Results 2006 £m 33.9 (0.3) (7.3) (2.6) (8.4) (3.3) (6.5) 17.7 %age of net revenue Variance B(W)% £m 30.5 (0.4) 30.1 (9.5) 20.6 (3.1) (2.1) (8.1) (3.0) (4.4) (0.1) Year to 31 December %age of net revenue (1) Direct operating costs include telephone, bandwidth and banking costs

12 No. of calls (000s) (1) Agent cost per call Gross win margin (exc. High Rollers) Unique active players (000s) (2) Average monthly active player days (000s) Year to 31 December Telephone Betting – KPIs ,832 59p 7.2% ,290 63p 7.3% Variance B(W)% (0.7) 2.5 (1) Number of calls (excluding customer service calls) (2) A player who has placed a wager during the period

13 Capex UK Development (1) FOBTs and EPOS Xtra Ireland Other (including IT: £8.0m; £3.1m) Retail eGaming / Telephone Betting Total Acquisitions Jack Brown Other (UK: £2.1m, Ireland: £25.6m, Italy: £4.7m) Year to 31 December Analysis of 2006 capital expenditure 2006 £m £m (1) Development = new licences, relocations and refurbishments (inc. Jack Brown)

gross win impacts High Rollers World Cup (1) 2007 incremental costs FOBT tax (2) Gambling Commission Specific Items FY £m (12) (9) (8) (3) H1 £m (13) (5) (7) (1) (1) Assumes 50% substitution (2) The incremental cost expected in 2007 over 2006

15 Cash generated by operations Interest and tax PPE capital spend (1) Intangibles Acquired subsidiaries Total capital spend (1) Cash flow after interest, tax and capital Hotels disposal proceeds Dividends paid Proceeds from issue of shares, convertibles and options Exchange and other movements Net borrowings movement Opening net borrowings Closing net borrowings Net debt to EBITDA ratio for continuing operations Year to 31 December Cash Flow (84.8) (9.0) (26.0) 2006 £m (53.5) (119.8) ,241.4 (4,208.4) (19.9) (551.0) (397.9) (948.9) 3.1 (1) Continuing operations only

16 Christopher Bell Chief Executive

17 Overview Good World Cup Continued eGaming growth Successful year with Telephone High Rollers

18 Agenda 2006 performance Strategic overview, including: –International progress –Casino ambitions Current trading

19 UK Retail Gross Win Margin % 2006 FY 2005 FY 2004 FY Yr Av. Q4Q3Q2Q1 Horses Football OTC Horse overround per runner %1 st /2 nd favs

20 Retail Estate Number of shops’06’07 pipeline Acquisitions449 New licences27 33 Relocations91 42 Extensions25 11 Refurbishments6717 Total254112

21 Shops New Dual screen FOBT estate EPOS renewal completed by April Winter evening opening from September £500 Jackpot machines from September Self service terminals being tested Largest retail estate in Ireland No negative impact from Scottish smoking ban

22 eGaming Continued organic growth Poker competitive but improvement in Q4 Good year for Casino and Games Strong Sportsbook growth Growing global market enabled by broadband Turnaround for Telephone Betting

23 Strategy Targeted shop investment Online expansion International expansion New UK Casino operation

24 International Italy –3 shops at year end (now 4 shops) –58 sports and 33 horseracing licences –51 in shop/café-bar kiosks –eGaming and Telephone Betting licences –JV with Pianeta Scommesse –200 outlets in the next 3 years

25 International Spain –Madrid first to regulate fixed odds betting –Virtually a green field for fixed odds betting –Large existing lottery, bingo, casino and slots market –JV with market leading Cirsa Slot

26 International Asia –Vietnam First time regulation of sports betting expected in Q2 –China Happy Pool single match betting shops Shops in three provinces JV with Asia Gaming Technologies Scandinavia –Acquisition of Sponsio

27 Casinos Paddington Casino and Sports Bar Targeting to operate a number of the 17 new casinos Will bid for Manchester

28 Summary Strong, highly motivated company World class brand, people and technology Continually evolving the Ladbrokes business Maintain future sustainability and grow earnings

29 Current Trading Trading satisfactory to date Good football results More race cancellations than 2006 eGaming performing strongly Telephone Betting in line with our expectations International plans on track, positive contribution in 2008

30 Q&As

31 Appendix

32 eGaming – Net revenue 2006 £m 2005 £m Variance % B(W) Sportsbook Poker (10.7) Casino Games Net revenue Year to 31 December

33 eGaming – KPIs Variance % B(W) Year to 31 December Sportsbook Gross win margin6.4%6.8% 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) (25.8) Casino Unique active players (000s) Average monthly active player days (000s) Yield per unique active player (£) (1) (0.2) Games Unique active players (000s) Average monthly active player days (000s) Yield per unique active player (£) (1) (16.7) (1) Net revenue per unique active player for the period

34 Belgium Gross win (4.4) Duty / Gross profits tax (13.3) (13.4) Other costs (18.8) (18.5) (1.6) Operating profit (37.5) Shop numbers (5.0) Year to 31 December Variance £m £m B(W)%

35 Gross win / Net revenue (3.6) Duty / Gross profits tax(2.6) (2.8) Other costs(10.1) (10.7) 5.6 Operating profit Customer recruitment (000’s): New customers 53 71(25.4) Reactivated customers65 68(4.4) Vernons 2006 £m 2005 £m Variance B(W)% Year to 31 December

36 Taxation £m Normal tax charge: Tax charge at 17.8% on continuing operations profit before tax and non-trading items* Tax charge on discontinued operations profit before tax and non-trading items Tax charge for Total Group Non-trading tax charge: Tax charge on non-trading items: Total tax charge *Include prior year settlement with HMRC credit

37 Disposal of Hotels £m Cash proceeds (1) Assets disposed Cost of disposal Foreign exchange Profit on disposal Profit on disposal of non- current assets 3,241 (2,766) (95) £m 3,298 as announced on 23 February 2006 (57) debt and working capital adjustment 3,241 (1)

operating profit impacts High Rollers World Cup (1) 2007 incremental costs FOBT tax (2) Gambling Commission Specific Items – effect on operating profit FY £m (10) (7) (8) (3) H1 £m (11) (4) (7) (1) (1) Assumes 50% substitution (2) The incremental cost expected in 2007 over 2006