Presentation to Analysts I nterim results for the six months ended - PowerPoint PPT Presentation

Presentation to Analysts I nterim results for the six months ended 30 June 2006 1 24th August 2006

Agenda • Roger Withers - I ntroduction • Avigur Zmora - Highlights • Shuki Barak - Financial Review • Avigur Zmora - Operating Review & Outlook • Roger Withers - Summary • Questions & Answers 2

Highlights 3

Financial Highlights • Total Revenues up 139% to $46.2 M (2005: $19.3 M) – Casino Revenues up 129% to $40.4 M (2005: $17.6 M) – Poker Revenues up 851% to $4.8 M (2005: $0.5 M) • Operating Profit* up 166% to $36.5 M (2005: $13.7 M) • Net Profit* up 172% to $37.3 M (2005: $13.7 M) • Net Profit Margin* up to 81% (2005: 71% ) • Basic EPS* up 157% to 18¢ (2005: 7¢) • Proposed interim dividend of 8.7¢ per share 4 * Excluding founders’ cash contribution to employees and options charge in the amount of $6.8 M

Operational Highlights • Greater Geographical Diversification* – USA has decreased from 62% in 2005 to 49% in 2006 – Asia has increased to 20% in 2006 from 11% in 2005 – Europe has increased to 25% in 2006 from 20% in 2005 • Continued growth of licensee portfolio – 42 licensees operating 137 game sites (as at 30 June 2006) – 44 licensees operating 144 game sites to date • New products and platforms currently being introduced and in the pipeline – Mobile and Videobet completed during H1 – Mahjong and other Asian games are being developed • Substantial recruitment and training program established – Playtech Bulgaria – Playtech Academy (Estonia) 5 * Player revenue generated

Financial Review 6

Six months ended June Profit & Loss 2006 2005 Change $’000 $’000 % Revenues 46,176 19,300 139 Operating Expenses* 3,174 2,105 51 Sales & Marketing* 3,692 2,690 37 Development Costs* 374 456 (18) General & Administrative* 2,474 357 593 Operating Profit* 36,464 13,692 166 Financing Income 1,076 10 10,660 I ncome before Taxation* 37,549 13,702 174 Tax Expenses 254 12 2,017 Net I ncome* 37,286 13,690 172 Basic EPS (¢)* 18 7 163 Net I ncome 30,490 13,690 123 7 * Excluding founders’ cash contribution to employees and options charge in the amount of $6.8 M

Revenue and US Exposure Asian operators Million $ focus on World 65% Cup 45 60% 35 55% 25 50% 15 45% 5 H1-05 H2-05 H1-06 Total Revenues Percentage of income from US players 8

Revenues by Product - H1 2006 Casino 87% Poker 10% Others 1% Bingo 9 2%

Revenue by Product - Growth Million $ 50 40 30 20 10 0 H1-05 H2-05 H1-06 Casino Poker Others 10

Geographic Diversification* - H1 2006 USA 49% Europe 25% Asia 20% Rest of the World 2% Canada 4% 11 *Player revenue generated

Geographic Diversification* (cont.) 70% 60% 50% 40% 30% 20% 10% 0% USA Europe Asia H1 2005 H1 2006 12 * Player revenue generated

Cost Breakdown* Number of employees up by 40% to 277 (2005 – 198), Revenue up by 139% • I n 2006, total development costs were $1.4 M, out of which $1.0 M has been • capitalized Million $ 10 2.5 8 0.4 0.4 6 0.5 3.7 2.7 4 3.2 2 2.1 Includes provision 0 of $1 M for H1-05 H1-06 performance bonus Operating Sales & Marketing Development General & Administrative 13 * Excluding founders’ cash contribution to employees and options charge in the amount of $6.8 M

Founders’ Cash Contribution to Employees • The founders of the Company gifted $6.6 M to a staff trust fund for distribution to the Company’s employees • This amount does not impact the Company’s cash flow • Accounting implementation: – The Company accounted for this contribution as a capital contribution in accordance with generally accepted accounting principles – The Company recorded a one time charge to the P&L 14

Balance Sheet June 2006 December 2005 $’000 $’000 Current Assets Cash and Cash Equivalents 89,857 17,995 Other Current Assets 6,452 4,526 Total Current Assets 96,039 22,521 Fixed Assets 1,460 934 I ntangible and Non-Current Assets 2,886 1,448 Total Assets 100,385 24,903 Current Liabilities 8,164 5,102 Non-Current Liabilities 24 82 Shareholders' Equity Share Capital and Funds 55,889 132 Accumulated Profit 36,308 19,587 Total Liabilities and Shareholders’ Equity 100,385 24,903 15

June 2006 June 2005 Cash Flow $’000 $’000 Net I ncome 30,490 13,690 Depreciation and Amortization 503 182 - Founders’ Cash Contribution to Employees 6,566 - Employees Stock Options Expenses 230 Net change in Assets and Liability 1,342 (436) Other Adjustments 11 (2) Net Cash Provided by Operating Activities 39,142 13,434 Net cash Used in I nvesting Activities (2,537) (335) Net cash Provided by (Used in) Financing Activities 34,987 (10,171) I ncrease in Cash and Cash Equivalents 71,592 2,928 Cash and Cash Equivalents at Beginning of Period 17,995 11,298 16 Cash and Cash Equivalents at End of Period 89,587 14,226

Cash from Operations Compared to Operating Profit* Million $ 40 $39 M $37 M 30 Operating Profit 20 Cash from Operations $14 M $13 M 10 0 H1-05 H1-06 17 * Excluding founders’ cash contribution to employees and options charge in the amount of $6.8 M

Operating Review & Outlook 18

Cross Selling Opportunities 19

Product Pipeline • Pachinko • Mahjong • Asian card games • New progressive concepts • On-going production of new games • Exclusive and branded games 20

Licensees • Expected to launch 6 new licensees this year, 3 targeting Asia, 1 targeting South America, 1 targeting North America and 1 targeting Europe • Cross selling - 5 licensees launched new products in the last 12 months • Profile of potential licensee – $150k in royalties per month within 12 months from launch 21

Building for the Future • Current number of employees 277 • On going recruitment 25 • Playtech Bulgaria 20 • Playtech Academy 25 • Expected number of employees by the end of 2006 347 22

Summary • Strong H1 results • Continued reduction of US exposure • Diversity of licensees base to minimize risks • New products being introduced • New licensees being added • Current trading 23

Questions & Answers 24