Sir Ian Robinson Group Chairman

Brian Wallace Group Finance Director

Hilton Group plc - Summary of Performance Hilton International (4.7)% Worldwide Betting % Casinos & disposal businesses Central costs and income(12.4)(11.6) Operating profit* (3.3)% Interest(79.0)(94.6)16.5% Profit before tax* % Effective tax rate*20.0%20.7% Hilton International (4.7)% Worldwide Betting % Casinos & disposal businesses Central costs and income(12.4)(11.6) Operating profit* (3.3)% Interest(79.0)(94.6)16.5% Profit before tax* % Effective tax rate*20.0%20.7% Year to 31 st December 2001 £m Year to 31 st December 2000 £m EBITDA* % VarianceVariance * Before goodwill amortisation and exceptional items

Hilton International - Like for Like Profit Reported profit* (4.7)% Scandic profit (33.9) - Comparable profit* (17.4)% Royal Bank of Scotland rent Disposals / new openings (9.0) (11.0) Foreign exchange (1.0) - Like for like profit* (11.2)% * Before goodwill amortisation and exceptional items 2001 £m £m VarianceVariance

Hilton International Worldwide Occupancy, Rate and RevPAR Growths vs 2000 Like for Like Hotels, Constant Currencies (5) (10) (15) % Qtr 1 Qtr 2 Qtr 3 Qtr 4 Occ % growth Rate growth RevPAR growth 8.0% 1.7% (4.2%) (11.4%)

Aug Hilton International Worldwide Occupancy, Rate and RevPAR Growths vs 2000/01 Like for Like Hotels, Constant Currencies 5 0 (5) (10) (15) % SepOctNovDecJan 1.0% (10.6%) (11.7%) (14.3%) (7.3%) (4.7%) Occ % growth Rate growth RevPAR growth

Like for Like Hotels 5 0 (5) (10) (15) 10 (20) (25) (30) (35) Hilton UK Occupancy Growth vs 2000/01 AugSepOctNovDecJan London 5 Star London 4 Star Provinces %

Hilton UK Rate Growth vs 2000/01 Like for Like Hotels 5 0 (5) (10) (15) 10 (20) AugSepOctNovDecJan % London 5 Star London 4 Star Provinces

Hilton UK RevPAR Growth vs 2000/01 Like for Like Hotels 0 (10) 10 (20) (30) (40) (50) AugSepOctNovDecJan % London 5 Star London 4 Star Provinces Total UK

Hilton vs London Market - Cumulative Year to Date RevPAR Premium Aug01Sep01Oct01Nov01Dec01Jul01Jun01May01Apr01Mar01Feb01Jan01Dec00 RevPAR £ Premium % Hilton RevPAR Premium Hilton RevPAR Market RevPAR Market source: PKF Hotel Consultancy Services

Hilton vs Provincial Market - Cumulative Year to Date RevPAR Premium Aug01Sep01Oct01Nov01Dec01Jul01Jun01May01Apr01Mar01Feb01Jan01Dec RevPAR £ Premium % Market source: PKF Hotel Consultancy Services Hilton RevPAR Premium Hilton RevPAR Market RevPAR

Germany, France, Benelux RevPAR Growth vs 2000/ (5) (10) (15) (20) (25) (30) (35) (40) Aug Jan DecNov OctSept % Like for Like, Constant Currency FranceGermanyBenelux

Scandic - Financial Update Cost synergies £8m £10m Debt funding cost 8%5.5% Effective tax rate 20% 0% - 10% 2001 EBITDA - second half£41.4m £42.9m Acquisition model assumptions Latestview

Retail Betting2,037.51, Vernons Telephone Betting eGaming (10.0) Worldwide Betting2,540.32, Retail Betting2,037.51, Vernons Telephone Betting eGaming (10.0) Worldwide Betting2,540.32, Revenue Profit* 2001 £m 2001 £m 2000 £m 2000 £m 2000 £m 2000 £m Worldwide Betting Profit Comparison 2001 £m 2001 £m * Before goodwill amortisation and exceptional items.

Betting Margins - UK Shops Average ’96-’ st Half % 2 nd Half % Total % Adjusted for gross profits tax

eGaming Monthly Turnover £m Jan 2001 Jan 2002 £8m £28m

eGaming Sportsbook Turnover by Sport 56% 34% 3% 2% 1% 3% Football Horses Tennis Golf Greyhounds Basketball Others

English soccer European tournaments International matches Italian soccer Spanish soccer German soccer Scottish soccer Other soccer eGaming Sportsbook Football Turnover 38% 20% 13% 10% 9% 5% 3% 2%

57% 20% 9% 2% 1% 9% United Kingdom Hong Kong Singapore Malaysia Italy Thailand Others eGaming Sportsbook – Turnover by Country

Hilton Group plc - Exceptional Items Operating exceptional items Scandic integration costs (24.5) (24.5) Amounts written off tangible and intangible fixed assets and investments(27.4) - Non-operating exceptional items Profit on fixed assets Profit on sale of UK hotels Loss on disposal of other tangible fixed assets (4.7)5.4 Profit on sale of non-European betting and gaming businesses Provision for losses on fixed assets pending sale (6.5)- Discontinued: Profit on sale of investment properties Total (28.1)353.2 P&L effect £m Cash effect £m

Hilton Group plc – Cash Flow Opening net borrowings(1,374.3)(1,336.8) Cash inflow from operating activities Interest, tax and dividends paid(267.3) (276.7) Free cash flow Capital expenditure(187.7)(476.9) Proceeds from asset sales Acquisitions / disposals(486.2)(244.4) (119.5)(25.2) Exchange & other movements19.9 (12.3) Net borrowings movement(99.6)(37.5) Closing net borrowings(1,473.9)(1,374.3) 2001 £m 2000 £m

Hilton Group plc - Analysis of Capital Expenditure Livingwell UK - major projects14.1 Sao Paulo13.1 Zurich 6.8 Gatwick 6.0 Manchester Deansgate 6.0 Chicago Drake5.1 Other Betting & Gaming BS 2000 EPOS System 9.4 Other Total187.7 £m£m£m£m Hilton International

David Michels Group Chief Executive

Hilton 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* London % (14.6%) (5.8%) Provinces % (3.0%) % Total UK % (8.6%) (1.6%) Europe, Middle East & Africa % (11.2%) (4.6%) Asia/Australasia % (1.7%) % The Americas % (5.6%) % Total Hilton % ( 7.7%) (1.9%) Scandic Hotels % % 6 Months to December 6 Months to December 6 Months to June Year to 31 st December Growth Growth Growth --- *All at Constant Currencies

Openings and Closures 2001 Copenhagen Airport Adana Melbourne Airport Sofia Rhodes Resort SorrentoAucklandBangaloreLuxembourg The Trafalgar JeddahCairo Ras Al Khaima Dubai Creek Port Sudan St.ErminsHuddersfield Kuala Lumpur Stoke onTrent Bath Waterside Newcastle Edinburgh Belford AlgiersJerusalem Sales/Closures Openings

Pipeline Growth Chongqing, China Kuwait London Paddington Konya, Turkey Cologne Narita, Tokyo Airport Seoul Cebu, Philippines Sao Paulo Ras Sudr Sinai, Egypt Shark Bay Resort, Egypt Alexandria La Defense, Paris Linkoping Scandic Copenhagen Sydhaven Scandic Stockholm Alvik Scandic Bruges Conrad Dublin Conrad Bangkok Openings 2002 NewcastleHaitiDubrovnikCopenhagen Beirut Barrage Residence Royal Residences Jeddah Yarra Valley Sharm Nabq Makkah Towers Scandic Trondheim Openings 2003 LagosBerlinMoscow Munich Dornach Beirut Kuala Lumpur Doha, Qatar Denarau, Fiji Tahiti Papeete Tahiti Rangiroa Tahiti Bora Bora Conrad Bali Openings 2004

Guest Satisfaction Completely or very satisfied Fairly satisfied Dissatisfied 68% 71% 73% 9% 18% 9% 20% 12% 20% Independent research carried out for Hilton International, based on a sample of approximately 50,000 respondents per annum

Hilton 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 Year -Ranked No.1 for brand loyalty Business Traveller Magazine Awards: UK Business Traveller Magazine Awards: UK - Best New Business Hotel Worldwide: Copenhagen Airport -Best Hotel Chain in UK -Best Business Hotel in Western Europe: London Hilton Business Traveller Magazine Awards: Germany Business Traveller Magazine Awards: Germany -Best Hotel Chain in Europe -Best Hotel Chain in Middle East - Best Hotel Chain Worldwide Hermes Awards, Paris: Hermes Awards, Paris: - Best Customer Loyalty Programme: Hilton HHonors - Best Wellness and Fitness Concept: LivingWell

Hotels Worldwide betting Major property purchases Capital expenditure Disposals - hotels(151)(13)(355) * (171) Hotels Worldwide betting Major property purchases Capital expenditure Disposals - hotels(151)(13)(355) * (171) Cash Shares Memo: goodwill on acquisition Hotels – Property net book value £2.5bn £2.8bn £2.6bn Cash Shares Memo: goodwill on acquisition Hotels – Property net book value £2.5bn £2.8bn £2.6bn Capex Acquisitions (Stakis and Scandic) £m £m£m£m Plan * Potential sale and leaseback deal

Occupancy 63.3% (3.1%) Average Rate (£) % RevPAR (£) % GOP (£m) % GOP conversion42.6%2.7% Proforma vs 2000 Scandic Post Acquisition Result 2001

StockholmMalmoGothenbergHelsinkiCopenhagenLinkoping Scandic Rebranding Hilton Vienna Danube Hilton Innsbruck Hilton Brussels City Hilton Bonn Hilton Bremen Hilton Dortmund Hilton Karlsruhe Hilton Nuremberg Hilton London Docklands Hilton Stockholm Slussen Rebranded To Rebrand 2002

LivingWell Current Membership UK123,784 International15,205 Total138,989

Branding Hilton238 Hilton 229 Scandic 143 Hilton Garden Inn125 Conrad12Double Tree 151 Embassy Suites 168 Homewood Suites 104 Hampton1,144 Conrad12 Hilton 467 hotels HIHHC

Average number of shops PBIT £m PBIT per Shop £k Average number of shops PBIT £m PBIT per Shop £k ,8781,8311,8921,8711,9101,8791, Year End Performance - UK and Jersey

Betting Duty Modernisation - Turnover Increase Year on year – % Estimated “real” increase+30% UK shops only

Horseracing - Where the duty cut has gone 6 October 2001 – 31 January 2002 Duty 2000/01£20.5m Duty 2001/02£9.9m £10.6m Duty Modernisation £2m £8.4m £0.2m Customer returns increase Levy increase GP increase £m

Telephone Betting Profits normalised at £6.6m Profits normalised at £6.6m Returned to the UK post 6 th October tax change Returned to the UK post 6 th October tax change New bet and call handling system installed New bet and call handling system installed Since 6 th October turnover up 62% Since 6 th October turnover up 62% Test voice recognition call system this year Test voice recognition call system this year

Levy/BHB/Media and Data Rights/SIS Levy on gross profits from 1st April 2002 Levy on gross profits from 1st April 2002 BHB require bookmakers to sign commercial agreement of 1.5% of turnover for data and 1.0% for pictures (plus VAT) by 1 st May 2002 BHB require bookmakers to sign commercial agreement of 1.5% of turnover for data and 1.0% for pictures (plus VAT) by 1 st May 2002 OFT investigating potential abuse of monopoly position and bundling of rights by BHB/RCA/Jockey Club OFT investigating potential abuse of monopoly position and bundling of rights by BHB/RCA/Jockey Club BHB vs William Hill at the ECJ over use of horseracing data BHB vs William Hill at the ECJ over use of horseracing data SIS has supply contracts with 8,300 of 9,300 potential betting shops SIS has supply contracts with 8,300 of 9,300 potential betting shops

eGaming £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: Registered260,000 Active on Sportsbook115,000 Active on Casino27,000 Available in 8 languages, 14 currencies with customers in 160 countries Available in 8 languages, 14 currencies with customers in 160 countries Since Launch

eGaming Sportsbook turnover averaged £2.0m per week in 2001, now £3.0m per week Sportsbook turnover averaged £2.0m per week in 2001, now £3.0m per week Chips purchased averaged £1.1m in 2001, £1.6m in December Chips purchased averaged £1.1m in 2001, £1.6m in 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 costs Ladbrokes brand ensures low customer acquisition costs Sportsbook provides vital click through to casino Sportsbook provides vital click through to casino

eGaming Localised and tailored partnerships Localised and tailored partnerships - Playboy - Scandinavia Digital TV Digital TV - Ntl/ Telewest - Sky - ‘attheraces’ Constant improvement and development Constant improvement and development - One account - Multi player poker - Progressive Balls Deal flow Deal flow - International white label - Brand and activity partnerships