I love Europe. When it comes to the Ryder Cup, were better together. - PowerPoint PPT Presentation

“I love Europe. When it comes to the Ryder Cup, we’re better together.” Nigel Farage UKIP Leader & MEP, Sep’14

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Revenue up 18% * , strong momentum in all key top-line metrics PBT up 21% * to € 167m & EPS up 18% to 297.6 cent Future strategy focused on Product & Brand differentiation Cash return of € 8 per share ( € 392m) proposed 2015 has started well * In constant currency 3

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 Net revenue growth of 18% *  Gaming & B2B +25%  Sportsbook +16% Sportsbook Amounts Staked 7,003 6,014 +16% +16%  Sports results below expectations Net t Reven enue ** 882 746 +18% +18%  2014 included World Cup stakes of Sportsbook Net Revenue % 9.2% 9.3% € 198m & gross win of € 34m  Operating cost growth of 14% EBITDA 211.8 176.9 +20% +23% * , below revenue growth Opera erating ting Profit it 163.8 .8 137.4 .4 +19% +22%  Effective tax rate of 13% in 2014 Profit Before Tax 166.6 141.0 +18% +21%  Proposed final dividend up 13% to Diluted luted EPS 297.6 .6c 252.0 .0c +18% +21% 102.0c Dividends 152.0c 135.0c +13% * Change in constant currency (‘CC’) with foreign currency component in 2013 translated at 2014 exchange rates ** For consistency, following the change to the Machine Gaming Duty (‘MGD’) taxation regime, VAT on machines in January 2013 has been added 5 back to net revenue & deducted within cost of sales, throughout this presentation

DIVISIO ISION 2014 CHAN ANGE * 2014 CHAN ANGE GE * 2014 CHAN ANGE GE * 2014 CHAN ANGE GE * Online Europe 2,763 +20% 335 +11% 205 +9% 75.3 +4% Online Australia ** 2,056 +14% 227 +34% 119 +24% 52.4 +68% UK Retail 710 +22% 174 +30% 108 +26% 21.2 +50% Irish Retail 1,093 +11% 127 +9% 98 +7% 15.6 +15% Telephone 380 +5% 20 (15%) 20 (4%) (0.7) n/a /a Tota tal 7,0 ,003 +16% 882 +18% 550 +14% 163.8 .8 +22% * In constant currency ** Australia also includes telephone operations accounting for less than 10% of its gross & operating profit 6

 Strong sportsbook growth  Bet volumes +28%  Actives +24% Sportsb rtsboo ook k Amou ounts ts Staked ed 2,7 ,763 2,2 ,218 +20%  Stakes +20% *  75% of actives used mobile in Dec’14 Sportsbook Net Revenue 194.2 180.6 +7%  eGaming growth driven by proprietary Sportsbook Net Revenue % 7.0% 8.0% content & mobile (40% of revenues)  New customer acquisition +27% Gaming ing/B2 /B2B Net t Reven enue e 140.5 .5 119.1 .1 +17%  Profit growth impacted by new taxes Total Net Revenue 334.6 299.7 +11% (- € 3m) & sports results (gross -c. € 14m)  paddypower.com rebound driven by Opera erati ting ng Profit it 75.3 .3 73.5 .5 +4% more TV advertising, plus online Operating Loss - Italy (14.7) (16.8) marketing, new product and value  paddypower.it net revenue +85% or Active tive Custo stomers ers (000’s) 1,8 ,840 1,5 ,524 +21% *** € 7.9m but overall market growth slower than expected * In constant currency ** Some activity has been reclassified in 2014 from Gaming to Sportsbook to better reflect the nature of the bets. All 2013 amounts (revenue € 6.2m) have been restated on a consistent basis. The impact on year-on-year growth rates is immaterial. 7 *** Active customers throughout are defined as those who have deposited real money & have bet in the year, excluding indirect B2B customers

 Online growth accelerated  New customers +33%  Active customers +38% Onli line Sportsboo rtsbook Amou ounts ts Staked ked 1,8 ,881 1,6 ,636 +22%  Net revenue +34% *  Mobile stakes up 66% * to 53% of online Total Sportsbook Amounts Staked 2,056 1,914 +14% stakes; 82% of actives used mobile in Net t Reven enue 226.9 .9 179.6 .6 +34% Dec’14  Structural improvement in gross win % Sportsbook Net Revenue % 11.0% 9.4%  Operating margin expansion up 5% * to Gross Profit 171.3 135.1 +35% 23%, despite increased product fees Opera erating ting Profit it 52.4 .4 33.5 .5 +68% Online Active Customers (000’s) 575 417 +38% * In constant currency 8

 Operating profit up 50% *  Like-for-like KPIs *  Sportsbook stakes +5% Sportsbook Amounts Staked 710 552 +22%  Sportsbook net revenue +4%  Machine gaming net revenue +13% Sport rtsb sboo ook Net t Revenu enue 80.5 .5 64.0 .0 +20%  Total net revenue +8%  Opex +3% Sportsbook Net Revenue % 11.4% 11.5%  Operating profit +38% Mach chine ine Gaming ing Net t Reven enue 93.5 .5 64.3 .3 +39%  Leading product proposition  Eclipse gaming machines in full estate Total Net Revenue 173.9 128.3 +30% since 2013  SSBT ** in every shop since 2011 Opera erating ting Profit it 21.2 .2 13.9 .9 +50%  Broadest multi- channel ‘cash card’ Shops at Year End 321 266 +21% solution in market  55 shops opened, including 8 acquired * In constant currency ** Self Service Betting Terminal 9

 Record stakes > € 1 billion  Like-for-like KPIs  Bet volumes +8% Sportsbook Amounts Staked 1,093 981 +11%  Amounts staked +5%  Net revenue +3% Net t Reven enue 126.6 .6 115.6 .6 +9%  Opex +2% Sportsbook Net Revenue % 11.6% 11.8%  Sports results below expectations  Record 20 new shops opened, including Opera erating ting Profit it 15.6 .6 14.0 .0 +15% 17 acquired Shops at Year End 243 223 +9% * In constant currency 10

EBITDA 211.8 Maintenance capex (17.9) Positive working capital inflow as business grows Working capital 13.0 2014 operating cashflow Tax & other (13.7) 133% of profit after tax Opera erating ting cash shflow low after ter tax 193.2 .2 (5 years 2010-2014: 133%) Inves esting ting and financing cing acti tiviti ities es: New shop openings & technology for product Acquisitions (11.8) enhancement & expansion Enhancement capex (48.9) Dividends (69.0) Share buybacks (23.6) Includes + € 10m FX translation impact on cash balances Closing cash € 285m Other 16.2 ( € 218m excluding customer balances) Increa crease se in net cash sh 56.1 .1 11

Increased efficiency without compromising growth Ratio ionale ale € 8.00 per share ( € 392m) Quantum Surplus cash & debt raise of circa 1x EBITDA Fundin ing B-Share type scheme followed by a share consolidation Mec echan hanics ics Shareholder approval required at AGM in May 12

UK UK  Point of Consumptio ion n tax  15% tax payable since Dec 2014 ( € 44m * gross cost)  Mitigation opportunities  Gaming ing machines ines  Voluntary Code of Conduct since Mar 2014  Machine Gaming Duty increased to 25% from Mar 2015 ( € 4m * net cost)  DCMS measures affecting staking over £50 from Apr 2015  RGT’s research published Dec 2014  Senet Group established Sep 2014  Government expected to publish its review w into indus ustry advertisin ing g shortly  Government conducting further consultation on possible reform of horseracin ing g betting ing levy Irelan land Australia lia  Year round evening ing opening ngs since Jan 2015  Increas ased racing ing produc uct fees since H2 2014 * gross cost) ( € 8m  VAT payable on Iris ish h eGaming ing since Jan 2015 ( € 2m * net cost)  1% online/p ine/phone hones turno nover tax expected later this year ( € 8m * gross cost) * Full year impact based on if tax / increased rate applied for full year 2014 13

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Online ine Growth owth Outpac pacing ing Retail il Future ure Growth owth All in Mobile ile Sportsbett etting ing Bigg igges est Segmen ment Global Online Gambling Market (% of Total Market) UK Sports & Gaming Market Growth 2014-18 UK Online e Regu egular r Gambl blers ers – Produ duct Usage ge % of Total Customers Gross Win, € (11%) 92% of UK growth is in Mobile 12% CAGR Sport ortsbe sbetting g +1.0bn bn +1.1bn € 27bn only custom omers rs (6%) 56% 56% € 9bn Retail Phone Desktop Mobile Total Growth 2004 2014 Sportsbetting & Australian Sportsbetting Market Growth FY14-19 Source: H2GC, excludes lotteries gaming customers Turnover, A$ 38% 203% of Aus growth is in Mobile Retail to online migration:  6% ― Retail bettors spending more online +11.8bn bn +5.8bn Gaming only ― New bettors disproportionately online customers Retail market still significantly larger  Retail Phone Desktop Mobile Total Growth 15 Source: Internal analysis utilising H2GC, Kantar, company accounts, Euromonitor, Datamonitor & consumer surveys

PP Excepti PP tionally onally Well l Po Positi tione oned Pred edomin ominantl ntly y Online ine Mobil ile e Leader ership ip Sportsboo ook k Led ed PP 2014 Group Operating Profit 2014 Mobile % of Online Net Revenue PP 2014 Group Net Revenue Retail & Gaming phones 55% 55% 27% 23% 73% 73% Estimated UK Peers 40% 77% 77% Online Spor orts tsbook ook 16