1 7 August 2008 Sir Ian Robinson Chairman

2 Brian Wallace Group Finance Director 7 August 2008

3 Summary of performance 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) 2008 £m (36.0) % p 2007 £m (33.7) % p Variance B(W)% (2.0) (33.3) (11.8) (6.8) (15.7) (8.8) (15.5) (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 5 th August

5 Summary of performance 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) 2008 £m (36.0) % p 2007 £m (33.7) % p Variance B(W)% (2.0) (33.3) (11.8) (6.8) (15.7) (8.8) (15.5) (1) Before non-trading items

6 Betting and Gaming UK Retail Ireland, Belgium & Italy eGaming Telephone Betting Other (2) Corporate Costs Total 2008 £m (1) £m Variance B(W)% (5.3) £m (3.8) (7.6) (1) £m (2.6) (8.4) Variance B(W)% (2.6) 11.4 (0.4) (33.3) (46.2) 9.5 (2.0) Operating ProfitGross Win (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 (exc High Rollers) Half year ended 30 June

7 UK Retail – Results 2008 £m (23.2) (37.0) (104.6) (47.2) (34.7) (50.8) (237.3) £m (18.2) (36.8) (96.6) (45.7) (28.5) (45.2) (216.0) 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 Variance B(W)% (8.3) (3.3) (21.8) (12.4) (9.9) (2.6) (1) Fair value adjustments, VAT (3) Pictures, data, levy, Sky (4) Depreciation = £21.4m (2007: £19.9m) (2) Rent, rates and utilities Half year ended 30 June

8 UK Retail – KPIs % 1.1% 17.9% 6.6% 4% 1.6% £8.28 8,104 £ % (5.2)% 14.2% 0.3% 4% 6.9% £8.14 8,155 £572 Variance B(W)% 1.7 (0.6) 18.2 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 (1) Excludes VAT, Freebets, Gross profits tax and FOBT tax (2) Slips exclude machines Half year ended 30 June

9 Ireland 2008 £m 47.6 (0.4) 47.2 (3.2) (28.5) % £m 32.8 (0.2) 32.6 (2.2) (17.9) % 206 Variance B(W)% 45.1 (59.2) 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 Half year ended 30 June

10 eGaming – Net revenue Sportsbook Casino Poker Games Net revenue 2008 £m £m Variance B(W)% (6.4) Half year ended 30 June

11 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 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 %age of net revenue £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 %age of net revenue Variance B(W)% (31.8) (0.4) (1) Adjustments for free bets, promotions and bonuses(2) Payments to third party software and platform providers and geographical partners eGaming – Results Half year ended 30 June

12 eGaming – KPIs £129 £ £116 £86 Variance B(W)% (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. Half year ended 30 June

£m 16.9 (0.6) 16.3 (2.5) (1.2) (4.8) (1.5) (3.0) (10.5) 3.3 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 2008 £m 16.0 (0.5) 15.5 (2.3) (1.1) (5.1) (1.4) (3.4) (11.0) 2.2 %age of net revenue Variance B(W)% (5.3) (4.9) 8.0 (4.8) (33.3) Telephone Betting – Results (exc High Rollers) %age of net revenue (1) Direct operating costs include telephone, bandwidth and banking costs Half year ended 30 June

14 Telephone Betting – KPIs (exc High Rollers) ,434 62p 8.4% ,893 63p 7.4% Variance B(W)% (11.8) 1.6 (7.4) (8.9) 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 Half year ended 30 June

15 Analysis of 2008 Capex Capex UK Retail Ireland Italy eGaming and Telephone Betting Other Statutory and licence acquisitions Eastwoods Sponsio Other ( Italy: £14.4m, Ireland: £9.9m) Total 2008 £m £m Half year ended 30 June

16 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 Cash Flow 2008 £m (24.1) (7.4) (139.3) 2008 £m (74.0) (170.8) (36.8) (54.4) 0.3 (34.8) 3.4 (122.3) (917.0) (1,039.3) £m (32.7) (13.6) (50.7) 2007 £m (32.2) (97.0) 23.3 (54.1) (19.9) (948.9) (968.8) (1) Continuing operations only Half year ended 30 June

17 7 August 2008 Christopher Bell Chief Executive

18 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 Machines and Content Extended opening hours

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 outlets trading –Cirsa or 3 rd 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 –H £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 Poker Liquidity shortfall constraining growth Joining Microgaming network Increased Nordic Investment TV brand awareness campaign Regional content Betting in Play Continuously growing content

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 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) Variance % B(W) (1) Revenue per unique active player for the period 8.1%7.9% (4.7) (25.6) (4.6) (12.1) (2.1) Half year ended 30 June

32 Other European Retail 2008 £m £m £m (2.6) £m (0.3) 13.2 Operating Profit Gross Win Ireland Belgium Italy Total Variance B(W)% n/a 11.4 Half year ended 30 June

33 Belgium Variance £m £m B(W)% Gross win Duty / Gross profits tax (7.1) (6.4) Other costs (10.5) (9.6) (9.4) Operating profit Shop numbers (2.9) Half year ended 30 June