1

7 August 2008

Sir Ian RobinsonChairman

2

Brian WallaceGroup Finance Director

7 August 2008

3

Summary of performanceHalf 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

130.0

40.0

170.0

(36.0)

134.0

19%

197.8

18.0p

2007£m

132.7

60.0

192.7

(33.7)

159.0

16%

216.9

21.3p

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

050

100150200250300350400450500

2008 2009 2010 2011 2012 2013

Bank Debt

Loan Note

Bond

• Repaid 7.25% bond in July - undrawn committed bank facilities of approx £433m on 5th August

5

Summary of performanceHalf 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

130.0

40.0

170.0

(36.0)

134.0

19%

197.8

18.0p

2007£m

132.7

60.0

192.7

(33.7)

159.0

16%

216.9

21.3p

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

394.3

77.0

96.0

16.0

-

-

583.3

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

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

VarianceB(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 – Results2008£m

251.8142.5 394.3(23.2)371.1

1.5(37.0)

(104.6)(47.2)(34.7)(50.8)

(237.3)98.3

2007£m

249.6120.7370.3(18.2)352.1

1.6(36.8)(96.6)(45.7)(28.5)(45.2)

(216.0)100.9

OTC gross winMachines gross winTotal gross winAdjustments to gross win (1)

Net revenueAssociate incomeGross profits taxStaff costsProperty costs (2)

Content costs (3)

Other costs (inc. depn) (4)

Operating costsOperating profit

VarianceB(W)%

0.918.1

6.5

5.4

(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 – KPIs2008

16.7%

1.1%

17.9%

6.6%

4%

1.6%

£8.28

8,104

£676

2007

17.5%

(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

Ireland2008£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

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

32.1

26.6

14.7

13.2

86.6

2007£m

27.1

22.2

15.7

7.5

72.5

VarianceB(W)%

18.5

19.8

(6.4)

76.0

19.4

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

5.6

2.0

12.5

13.0

21.8

3.9

10.9

64.1

30.3

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

%age of

net revenue

5.6

2.2

11.6

11.9

17.4

4.1

10.9

58.1

36.3

VarianceB(W)%

22.9

19.4

(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 – ResultsHalf year ended 30 June

12

eGaming – KPIs2008

541

237

£129

£88

2007

441

182

£116

£86

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.

Half year ended 30 June

13

2007£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

32.9

9.0

21.9

VarianceB(W)%

(5.3)

(4.9)

8.0

(4.8)

(33.3)

Telephone Betting – Results (exc High Rollers)

%age of

net revenue

29.4

9.2

18.4

(1) Direct operating costs include telephone, bandwidth and banking costs

Half year ended 30 June

14

Telephone Betting – KPIs (exc High Rollers)

2008

3,434

62p

8.4%

90.2

186

2007

3,893

63p

7.4%

97.4

204

VarianceB(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

CapexUK RetailIrelandItalyeGaming and Telephone BettingOther

Statutory and licence acquisitionsEastwoodsSponsioOther (2008 - Italy: £14.4m, Ireland: £9.9m)

Total

2008£m

15.35.24.22.51.2

28.4

118.1-

24.3142.4170.8

2007£m

27.65.60.11.90.5

35.7

-37.823.561.397.0

Half year ended 30 June

16

Cash generated by operationsInterest and taxPPE capital spendIntangiblesBusinesses and acquired subsidiariesTotal capital spendCash flow after interest, tax and capitalDividends paidProceeds from issue of shares and optionsShare buybacksExchange and other movementsNet borrowings movementOpening net borrowingsClosing net borrowingsAnnualised net debt to EBITDA ratio (1)

Annualised net debt to EBITDA ratio (1) adjusted for high rollers

Cash Flow2008

£m

(24.1) (7.4)

(139.3)

2008£m

208.0 (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£m

152.5(32.2)

(97.0)23.3

(54.1)5.0-

5.9(19.9)

(948.9)(968.8)

2.6 3.2

(1) Continuing operations only

Half year ended 30 June

17

7 August 2008

Christopher BellChief 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 ContentExtended 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 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

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 – KPIsSportsbook 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)

2008 2007 Variance% B(W)

(1) Revenue per unique active player for the period

8.1% 7.9%390 316 23.4805 640 25.8

82 86 (4.7)

99 61 62.3114 77 48.1270 363 (25.6)

104 109 (4.6)371 422 (12.1)141 144 (2.1)

134 94 42.6203 132 53.8

98 80 22.5

Half year ended 30 June

32

Other European Retail

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

2008£m

15.5

1.8

(2.6)

14.7

2007£m

12.5

1.0

(0.3)

13.2

Operating ProfitGross Win

Ireland

Belgium

Italy

Total

Variance B(W)%

Variance B(W)%

24.0

80.0

n/a

11.4

Half year ended 30 June

33

Belgium 2008 2007 Variance £m £m B(W)%

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)

Half year ended 30 June