I ntroduction � I ntroduction � Financial Performance � Operational Review � Development & Strategy Page 1
Highlights � 108% growth in operating profit � Favourable sporting results � UK Retail traded profitably � Continued investment for growth Page 2
Financial Perform ance � Introduction � Financial Perform ance � Operational Review � Development & Strategy Page 3
Financial Highlights � Double digit turnover growth € m H1 '0 7 H1 '0 6 Change despite higher sportsbook gross win percentage and Turnover 994 878 + 13% absence of World Cup � Group sportsbook gross win Gross w in 1 4 3 .8 1 0 5 .0 + 3 7 % percentage 12.4% versus 10.3% in H106 Gross profit 124.9 85.2 + 47% � Gross win growth of 37% comprising sportsbook 35% Operating profit 4 0 .8 1 9 .6 + 1 0 8 % & gaming/ FOBTs 48% � Cost growth due to increased Profit before tax 42.7 20.5 + 108% turnover and investment for future Profit after tax 35.5 17.5 + 103% Diluted EPS 6 9 .5 c 3 4 .5 c + 1 0 1 % Page 4
Gross W in to Gross Profit € m H1 '0 7 H1 '0 6 Change Gross w in 1 4 3 .8 1 0 5 .0 + 3 7 % Betting taxes, levies & discounts (10.2) (12.6) -19% Software supplier costs (4.0) (3.8) + 4% Other (4.7) (3.4) + 41% Gross profit 1 2 4 .9 8 5 .2 + 4 7 % Page 5
Operating Cost Grow th €m 8 4 .0 3 .4 2 .6 3 .5 2 .0 6 .9 6 5 .6 H1 0 6 New shops Marketing & Variable cost New business Other H1 0 7 opened and volum e driven grow th w ith launches and additional prom otional increased developm ent depreciation spend activity Page 6
Cash Flow € m H1 '0 7 H1 '0 6 Change Operating profit 4 0 .8 1 9 .6 + 1 0 8 % Depreciation 10.9 6.5 Employee share schemes 2.4 1.6 Working capital 4.7 8.8 Maintenance capex (2.2) (2.2) Operating cash flow 5 6 .6 3 4 .3 + 6 5 % Enhancement capex (5.3) (10.4) Acquisitions (2.6) - Share issues, interest & disposals 2.4 3.2 Corporation tax (0.6) (1.0) LTIP share purchases (5.1) (3.7) Dividends (11.7) (6.5) Purchase of own shares (48.2) - I ncrease/ ( decrease) in cash ( 1 4 .5 ) 1 5 .9 Cash at period end 7 2 .6 6 8 .3 + 6 % Page 7
H1 ’0 7 Cash Flow Capital Expenditure € m ‘Maintenance’ ‘Enhancem ent’ Total Irish Retail 1.7 2.8 4.5 UK Retail 0.1 0.8 0.9 Non Retail & HO 0.4 1.7 2.1 Total 2 .2 5 .3 7 .5 ‘Enhancement’ includes new shop openings, relocations and extensions; ‘Maintenance’ includes shop refits. Page 8
Cash Returns to Shareholders € m 2 0 0 7 2006 final dividend (+ 80% ) 11.7 H1 share buyback 47.6 (2.14m shares, 4.2% share capital, €22.25 average price) H1 ’0 7 cash returns to shareholders 5 9 .3 2 0 0 7 interim dividend ( + 7 0 % ) 7 .9 Page 9
Operational Review � Introduction � Financial Performance � Operational Review � Development & Strategy Page 10
Divisional Sum m ary € m H1 '0 7 H1 '0 6 Change Retail 543.9 474.7 + 15% Turnover Online 297.3 247.9 + 20% Telephone 152.5 155.0 -2% Total 9 9 3 .7 8 7 7 .6 + 1 3 % Retail 82.8 61.8 + 34% Online 45.6 30.8 + 48% Gross W in Telephone 15.4 12.4 + 24% Total 1 4 3 .8 1 0 5 .0 + 3 7 % Retail 22.0 6.7 + 227% Operating Online 14.8 9.7 + 53% Profit Telephone 4.1 3.2 + 27% Total 4 0 .8 1 9 .6 + 1 0 8 % Page 11
Sportsbook Gross W in Percentages � Grand National : Silver Birch 33/ 1 � Financial I m pact: Irish Grand National : Butlers Cabin 14/ 1 � Gross win percentages in � Champion Hurdle : Sublimity 16/ 1 excess of expected ranges in all channels; excesses in proportion to � 2000 Guineas : Cockney Rebel 25/ 1 Irish customer content � Continue to monitor � Wokingham H’cap : Dark Missile 22/ 1 closely gross win percentages; however recycling counterbalances � The Masters : Zach Johnson 175/ 1 some of impact � US Open : Angel Cabrera 125/ 1 Page 12
I rish Retail � Exceptional gross win percentage € m H1 '0 7 H1 '0 6 Change driven by poor performance of Irish punters’ selections in H107 Turnover 461 414 + 11% � LFL growth: turnover 5% , gross win Gross Win 67.7 51.6 + 31% 25% � Four shops opened. Four shops also Sportsbook Gross Win % 14.7% 12.4% acquired in H1 and further four acquired in August Operating Profit 22.5 9.7 + 131% � Market remains competitive Shops at period end 168 154 � Strong growth driven by brand, people and product, plus estate investment and Irish economy Page 13
UK Retail � Once off step change in profitability € m H1 '0 7 H1 '0 6 Change from revenue and cost initiatives Turnover 83 60 + 38% � €0.1m profit, prior to €0.6m shop closure costs Gross Win OTC 9.8 7.2 + 37% � LFL gross win growth 24% (OTC 19% , FOBT 37% ) Sportsbook Gross Win % 12.6% 12.5% � Average FOBT drop £716 per week � Aggressive cost review delivered Gross Win FOBT 5.3 3.1 + 72% substantial savings, offsetting AMLD Total Gross Win 15.1 10.3 + 47% � Each group of shops (by year) opened in last four years EBIT positive Trading Profit / (Loss) 0.1 (3.0) � Further openings in London and reviewing potential elsewhere in UK Operating Loss (0.5) (3.0) Shops at period end 59 51 Page 14
UK Retail Half Year Profit / ( Loss) REVENUE GROW TH • LFL gross win growth 24% • FOBT initiatives: new machines/ SLA, training, competitions, branding H1 ‘0 4 H2 ‘0 4 H1 ‘0 5 H2 ‘0 5 H1 ‘0 6 H2 ‘0 6 H1 ‘0 7 • OTC initiatives: Turf TV, MBS, shop presentation € 0 .1 m * COST SAVI NGS • LFL shop operating costs ( € 1 .8 m ) ( € 1 .9 m ) ( € 2 .0 m ) down 8% • Broad range of initiatives ( € 2 .7 m ) covering FOBT supply, ( € 3 .0 m ) ( € 3 .0 m ) payroll, cleaning, telephone, electricity and * Pre shop closure provision of €0.6m stationery Page 15
Online � Bet volume growth 16% € m H1 '0 7 H1 '0 6 Change � Continued site and product Turnover 297 248 + 20% development � Increased gaming gross win, Gross Win Sportsbook 27.2 17.8 + 53% notwithstanding Poker challenges Sportsbook Gross Win % 9.8% 7.6% � Cost increases reflecting business launches, marketing spend and Gross Win Gaming 18.4 12.9 + 42% variable cost increases � Market increasingly competitive Total Gross Win 45.6 30.8 + 48% � Multi product customers up 56% to 34K Operating Profit 14.8 9.7 + 53% � From Sept ‘07 expect less betting Active Customers* 157,410 133,374 + 18% tax in Non Retail, c.€5m p.a. at current activity levels * Active customers defined throughout as those who have bet in the last 3 months Page 16
Telephone � Turnover growth impacted by € m H1 '0 7 H1 '0 6 Change higher gross win percentage and Turnover 152 155 -2% absence of World Cup � Bet volumes down 2% ; Average Gross Win 15.4 12.4 + 24% stake maintained at €99 Sportsbook Gross Win % 10.1% 8.0% � Improved customer service Gross Profit 13.9 11.2 + 24% � Competitive intensity increasing � Priority on profitability over top line Operating Profit 4.1 3.2 + 27% growth Active Customers 25,196 25,418 -1% Page 17
Developm ent & Strategy � Introduction � Financial Performance � Operational Review � Developm ent & Strategy Page 18
I nvesting for Grow th Staff num bers grow ing… Recruiting aggressively … ( FTEs) + 1 0 % 1 3 1 1 G LOBET I NTERNATIONAL S PORTS B ETTING 1 1 9 1 Jan-0 7 Jun- 0 7 Page 19
I nvestm ent in Risk and Trading Sam ple Markets I ntroduced H1 '0 7 � Ice hockey: Betting–In–Running (‘B-I-R’) � Rugby: 33 new markets for World Cup Risk and Trading Personnel � Horse racing: B-I-R all terrestrial TV races 4 8 � Football: 10 minute markets B-I-R � Golf: score on next hole B-I - R in Non- Retail Sports Betting 9 4 5 % 2 0 0 7 2 0 0 1 < 1 % H1 ‘0 1 H1 '0 7 Page 20
I nvestm ent in Technology Technology Scale � 35 different active websites � 150 different reports per day Technology Personnel � 2000 GB of retail information stored 5 2 � 250 GB of non retail information stored Online Grand National Bets Per Minute 5 ( peak) 1 ,0 6 3 2 0 0 7 2 0 0 1 7 7 2 0 0 1 2 0 0 7 Page 21
Page 22 New Business Developm ent
New Business Developm ent Accessing other betting Accessing other betting market segments market segments Expansion in existing Expansion in existing geographies geographies New Business Development New Business Development Deeper use of existing Deeper use of existing resources resources Geographic expansion Geographic expansion Brand stretch Brand stretch Page 23
Page 24 Brand
Page 25 Brand: Early Payouts - I reland
Page 26 Brand: Refunds
Retail: Turf TV & Racing Money-Back Specials Page 27
Delivering Strong Grow th H1 ‘01 H1 '07 CAGR Turnover €206m €994m + 30% EBIT €4.0m €40.8m + 47% EPS 6.9 cent 69.5 cent + 47% Dividend 1.7 cent 16.0 cent + 45% Page 28
Outlook � In the second half… � ‘We expect operating profit for the full year of approximately €68m....growth of approximately 50% ’ � And beyond… � Very well positioned through combination of: o People, brand and product innovation o Portfolio of attractive opportunities o Ongoing investment Page 29
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