22 February 2007

1
Sir Ian Robinson Chairman
22 February 2007
2
Rosemary Thorne Group Finance Director
3
Summary of performance
Year to 31 December
2006m 268.1 (45.6) 24.0 246.5 17.8 310.
5 22.0p
2005m 249.0 (16.9) - 232.1 17.6
286.2 12.0p
Variance B(W) 7.7 (169.8)
- 6.2 8.5 N/A
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)
(1) Before non-trading items
4
Betting and Gaming
Gross Win
Operating Profit
2006m 715.8 84.0 144.4 46.1 18.6 - 1,008.9
2005m 683.6 71.0 123.1 21.0 19.3 - 918.0
2006m 195.4 17.3 47.0 17.7 5.9 (15.2
) 268.1
2005m 207.8 11.7 41.4 (0.1) 5.8 (17.
6) 249.0
VarianceB(W) (6.0) 47.9 13.5 n/a 1.
7 13.6 7.7
VarianceB(W) 4.7 18.3 17.3 119.5
(3.6) 9.9
Year to 31 December
UK Retail Ireland Belgium eGaming Telephone
Betting Vernons Central Costs Total
5
UK Retail Results
2006 m 510.5 205.3 715.8 (27.9) 687.9
(75.0) (183.7) (89.1) (58.6) (86.1) 19
5.4
2005 m 484.5 199.1 683.6 (2.0) 681.6
(96.9) (171.4) (78.2) (53.4) (73.9) 207
.8
Variance B(W) 5.4 3.1 4.7 0.9 22.6
(7.2) (13.9) (9.7) (16.5) (6.0)
Year to 31 December
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
(1) Fair value adjustments, VAT, associate
income (2) Rent, rates and utilities
(3) Pictures, data, levy, Sky (4) Depreciation
34.7m (2005 29.8m), FOBT tax 5.6m
(2005nil)
6
UK Retail KPIs
Variance B(W) (0.9) 5.3 (1.3)
20060.8 1.1 0.1 16.9 4 2.9 8.39 6,743 53
8
20050.4 (2.3) 7.7 16.1 5 7.3 8.47 6,403
545
Year to 31 December
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
(1) Excludes VAT, Gross profits tax and FOBT tax
(2) Slips exclude machines
7
Ireland
2006m 48.9 (0.4) 48.5 (5.1) (29.1)
14.3 195
2005m 34.3 (0.2) 34.1 (3.8) (23.4)
6.9 148
VarianceB(W) 42.6 (24.4) 107.2 31.8
Year to 31 December
Gross win Fair value adjustments Net revenue Duty
/ Gross profits tax Other costs Operating
profit Shop numbers
8
eGaming Gross win
2006m 46.4 40.3 44.7 13.0 144.4
2005m 33.0 41.4 39.1 9.6 123.1
VarianceB(W) 40.6 (2.7) 14.3 35.4 17.3
Year to 31 December
Sportsbook Poker Casino Games Gross Win
9
eGaming Results
age of net revenue 5.1 1.6 8.2 21.6 12.9 5.8 9
.7 35.0
age of net revenue 5.0 1.3 8.8 23.1 12.2 4.6 9
.4 35.6
Year to 31 December
2006m 144.4 (10.3) 134.1 (6.9) (2.1)
(11.0) (29.0) (17.3) (7.8) (13.0) 47.0
2005m 123.1 (6.9) 116.2 (5.8) (1.5)
(10.2) (26.9) (14.2) (5.3) (10.9) 41.4
VarianceB(W) 17.3 15.4 13.5
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
(1) Adjustments for free bets, promotions and
bonuses
(2) Payments to third party software and platform
providers and geographical partners
10
eGaming KPIs
2005435 247 85 62
VarianceB(W) 26.2 22.7 (7.1) 9.7
Year to 31 December
2006549 303 91 56
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 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
Telephone Betting Results
age of net revenue 25.0 9.8 19.3
age of net revenue 26.9 10.0 14.6
Year to 31 December
2006m 33.9 (0.3) 33.6 12.2 45.8 (7.3
) (2.6) (8.4) (3.3) (6.5) 17.7
2005m 30.5 (0.4) 30.1 (9.5) 20.6 (3.
1) (2.1) (8.1) (3.0) (4.4) (0.1)
VarianceB(W) 11.1 11.6 122.3
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
(1) Direct operating costs include telephone,
bandwidth and banking costs
12
Telephone Betting KPIs
Year to 31 December
VarianceB(W) 7.4 6.3 (0.7) 2.5
20067,832 59p 7.2 124.4 209
20057,290 63p 7.3 125.3 204
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)
(1) Number of calls (excluding customer service
calls) (2) A player who has placed a wager during
the period
13
Analysis of 2006 capital expenditure
2006m38.8 15.7 6.3 3.7 17.8 82.3 5.1 87.4 - 3
2.4 119.8
2005m37.7 - 4.1 3.2 11.1 56.1 4.1 60.2 80.3 4
4.5 185.0
Year to 31 December
CapexUK Development (1) FOBTs and
EPOS Xtra Ireland Other (including IT 8.0m
2005 - 3.1m) Retail eGaming / Telephone
Betting Total AcquisitionsJack Brown Other (UK
2.1m, Ireland 25.6m, Italy 4.7m)
(1) Development new licences, relocations and
refurbishments (inc. Jack Brown)
14
Specific Items
FYm (12) (9) (8) (3)
H1m (13) (5) (7) (1)
2006 gross win impacts High Rollers World Cup (1)
2007 incremental costs FOBT tax (2) Gambling
Commission
(1) Assumes 50 substitution (2) The incremental
cost expected in 2007 over 2006
15
Cash Flow
2006m 264.7 (53.5) (119.8) 91.4 3,241.4
(4,208.4) 344.5 (19.9) (551.0) (397.9) (948
.9) 3.1
Year to 31 December
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
(84.8) (9.0) (26.0)
(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 2006 2006 2006 2006 FY 2005 FY 2004 FY 04 - 06 3 Yr Av.
Q4 Q3 Q2 Q1 2006 FY 2005 FY 2004 FY 04 - 06 3 Yr Av.
Horses 14.6 13.3 15.7 14.5 14.6 13.9 14.2 14.2
Football 25.0 32.2 19.1 19.0 22.9 23.4 18.7 21.7
OTC 17.5 16.4 17.3 16.4 16.9 16.1 16.2 16.4
Horse overround per runner 1.71 1.61 1.50 1.51 1.58 1.55 1.60 1.58
1st/2nd favs 54.6 50.1 50.4 52.0 51.7 49.0 50.9 50.6
20
Retail Estate

• Number of shops 06 07 pipeline
• Acquisitions 44 9
• New licences 27 33
• Relocations 91 42
• Extensions 25 11
• Refurbishments 67 17
• Total 254 112

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
QAs
31
Appendix
32
eGaming Net revenue
2006 m
2005 m
Variance B(W)
Year to 31 December
Sportsbook 45.5 32.4 40.4 Poker 35.0 39.2 (10.7)
Casino 41.0 35.2 16.5 Games 12.6 9.4 34.0 Net
revenue 134.1 116.2 15.4
33
eGaming KPIs
Variance B(W)
2006
2005
Year to 31 December
Sportsbook Gross win margin 6.4 6.8
Unique active players (000s) 398 305 30.5
Average monthly active player days
(000s) 610 451 35.3 Yield per unique active
player () (1) 114 106 7.5 Poker Unique
active players (000s) 154 128 20.3 Average
monthly active player days (000s) 461 411 12.2
Yield per unique active player () (1)
227 306 (25.8) Casino Unique active
players (000s) 90 77 16.9 Average monthly
active player days (000s) 72 64 12.5 Yield per
unique active player () (1) 454 455 (0.2) Games
Unique active players (000s) 126 78 61.5
Average monthly active player days
(000s) 99 54 83.3 Yield per unique active
player () (1) 100 120 (16.7) (1) Net
revenue per unique active player for the
period
34
Belgium
Year to 31 December
2006 2005 Variance m
m B(W)

Gross win 35.1 36.7
(4.4) Duty / Gross profits tax
(13.3) (13.4) Other costs
(18.8) (18.5)
(1.6) Operating profit
3.0 4.8
(37.5) Shop numbers 286
301 (5.0)
35
Vernons
2006 m
2005 m
Variance B(W)
Year to 31 December
Gross win / Net revenue 18.6 19.3 (3.6) Duty /
Gross profits tax (2.6) (2.8) Other
costs (10.1) (10.7) 5.6 Operating profit 5.9
5.8 1.7 Customer recruitment (000s) New
customers 53 71 (25.4) Reactivated
customers 65 68 (4.4)
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
43.9 3.8 47.7 4.9 52.6
37
Disposal of Hotels
m
3,241 (2,766) (95) 4
384 28 412
(1)
m
3,298 as announced on 23 February 2006 (57)
debt and working capital adjustment 3,241
38
Specific Items effect on operating profit
FYm (10) (7) (8) (3)
H1m (11) (4) (7) (1)
2006 operating profit impacts High Rollers World
Cup (1) 2007 incremental costs FOBT tax (2)
Gambling Commission
(1) Assumes 50 substitution (2) The incremental
cost expected in 2007 over 2006