THE HOME OF BETTING William Hill corporate presentation April 2015 - PDF document

THE HOME OF BETTING William Hill corporate presentation April 2015 1

Disclaimer This presentation has been prepared by William Hill PLC (“William Hill”). This presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and the information incorporated by reference into this presentation, and include statements regarding the intentions, beliefs or current expectations of the directors, William Hill or the Group concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and dividend policy of William Hill and the industry in which it operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond William Hill's ability to control or predict. Forward-looking statements are not guarantees of future performance and hence may prove to be erroneous. The Group's actual results of operations, financial condition, liquidity, dividend policy and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in this presentation and/or the information incorporated by reference into this presentation. In addition, even if the results of operations, financial condition, liquidity and dividend policy of the Group and the development of the industry in which it operates are consistent with the forward-looking statements contained in this presentation and/or the information incorporated by reference into this presentation, those results or developments may not be indicative of results or developments in subsequent periods. Other than in accordance with its legal or regulatory obligations (including under the Listing Rules, the Disclosure and Transparency Rules and the Prospectus Rules), William Hill does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. 2

2014: a record year World Cup Retail Online Australia Other UK Non-UK 372.2 3% 3% 335.0 330.6 8% 6% 15% 18% 276.8 275.7 30% 32% 85% 82% 61% 57% 2013 2014 2010 2011 2012 2013 2014 2013 2014 £372.2m 40% 18% Record operating of net revenue from of net revenue from profit 1 , up 11% digital businesses 2 international markets 1. Operating profit/loss is defined as pre-exceptional profit/loss before interest and tax, and the amortisation 3 of specific identified intangible assets recognised on acquisitions 2. Online and William Hill Australia

Best ever operating profit result in 2014 • Successful diversification continues Unaudited 2014 • Record-breaking World Cup performance with Online Group net revenue +8% wagering for the tournament +211% on 2010 - Online net revenue +18% • Weaker sports results year-on-year in Retail and - Retail net revenue +0% Online - Australia net revenue 2 +11% • Continued strong growth in Online Sportsbook - William Hill US +31% turnover and improved gaming growth - Telephone -28% • Retail supported by gaming machine growth and effective cost control Group operating profit 1 +11% • Improving Australia KPIs 40% 18% • Continued strong performance in US • Full-year dividend +5%, ahead of EPS growth of net revenue of net revenue from digital from international businesses 3 markets (2013: 36%) (2013: 15%) 1. Operating profit/loss is defined as pre-exceptional profit/loss before interest and tax, before the amortisation of specifically identified intangible assets recognised on acquisitions 4 2. Pro forma local currency comparisons 3. Digital businesses are Online and William Hill Australia

William Hill at a glance • One of the world’s leading multi-channel betting and gaming company • 16,000 employees in nine countries • Continued diversification • Betting and gaming • Land-based and digital • UK and international Revenue by business segment Revenue by product type Revenue by geography 2% 2% 1% 8% 7% 8% 46% 54% 32% 58% 82% Retail Online Betting Gaming UK Australia US Other Telephone William Hill Australia William Hill US 5

Our strategic priorities • Emerging trend in multi-channel usage in the UK • William Hill best placed as no.1 in Retail and no.1 in Online MULTI-CHANNEL • Already successful in gaming launches • Drive towards one customer proposition • Higher yields, higher retention, lower CPA UK betting population by channel and age 1 INNOVATION, TECHNOLOGY AND DATA 100% 13% 19% 21% 23% 26% 7% 80% 15% 22% 29% 60% 30% Retail: 59% 7% 40% 80% 66% Desktop: INTERNATIONAL 8% 55% 50% 5% 10% 44% 20% 7% 0% Mobile: 18-24 25-34 35-44 45-54 55+ 4% Retail Multi-channel Online 6 1. Kantar Retail Gambling Tracker Q4 2013. 7.4 million people used Retail, Online or Mobile in the past 12 months out of a UK population aged 18+ of 47.8 million people

Our strategic priorities • Blend of internal and external excellence and innovation MULTI-CHANNEL • Strong in-house track record: Trading platform and Vegas • Project Trafalgar • Improved data management, more personalisation Investing in internal technology capabilities 1 INNOVATION, TECHNOLOGY AND DATA 140 70% Increasing proportion of 53% internal 60% 120 development spend 50% 50% 100 40% 80 30% 20% 60 INTERNATIONAL 10% 41% 40 0% 40% 20 ‐ 10% 37% 0 ‐ 20% H1/12 H2/12 H1/13 H2/13 H1/14 2010 2011 2012 2013 2014 Total casino Vegas yoy growth Playtech casino yoy growth 1. Company data 7

Our strategic priorities Top ten gambling markets by gross win (2013, £bn) 1 • Leverage existing capabilities in other markets MULTI-CHANNEL • Focus on five regulated markets • Flexible enough to exploit opportunities • Consider complementary gambling skill sets • Evolving technology can support B2B potential INNOVATION, TECHNOLOGY AND DATA INTERNATIONAL 215 32 142 226 180 449 106 116 212 153 Gross win per capita (£) 8 1. H2GC Global Gambling Data (February 2014); population data (Wikipedia)

UK Retail • Largest business segment, representing 57% of revenue Market leader with 2,360 LBOs 1 , equivalent to 26% market share 2 • • 49% betting (OTC) and 51% gaming (machine) • £911.5m net revenue and £193m operating profit in 2014 • Resilient, cash-generative business Delivering growth against challenging economic backdrop Leader in UK retail bookmaking 3 Evolving product mix (revenue) 907 46% 51% Other, 837.9 14% William 4% 3% Hill, 6% 789.7 10% 4% 783.1 26% 8% Betfred, 12% 757.5 11% 16% 25% 20% Ladbrokes, Coral, 25% 2010 2014 20% Horse racing Football Greyhounds Virtual 2009 2010 2011 2012 2013 Other Gaming 1. Licensed betting offices 9 2. Gambling Commission Industry Statistics April 2012-March 2013

Online • c1,250 employees across seven countries, 3% of Group revenue Market leader with 15% market share by revenue in the UK 1 • • 48% betting (Sportsbook) and 52% gaming (casino, bingo, poker) • £527m net revenue and £178m operating profit in 2014 • Well-positioned under UK Point of Consumption Tax change Leader in UK online market 2 Growing ahead of the market 3 Strong profit growth 50% 446.3 15% 20% 406.7 321.3 4% 14% 5% 22% 251.5 16% 203.5 15% 5% 13% 12% 12% 9% 11% 5% 4% 8% 7% -4% 8% William Hill Bet365 Betfair Paddy Power Sportsbook Casino Poker Bingo Total Sky Bet Gamesys 2009 2010 2011 2012 2013 WH Online UK Ladbrokes Gala Coral PokerStars 888 Others 1. Gambling Data , European Regulated Online Markets Data Report, September 2014 10 2. 2009 to 2013 CAGR, UK data from H2GC

Italy and Spain • Mobile already generating 47% of net revenue Strengthening brand awareness: No. 1 in Italy, No. 2 in Spain 1 • • Strong market share gains • On track for break-even in 2015 Spain online sports market share by turnover 3 Italy online sports market share by turnover 2 Other 7% Sportium Others, 14% 8% Bet365 Snai 28% 7% Bet365 William Hill Paddy Power 46% 7% 19% Lottomatica Sisal 10% 8% Bwin Eurobet Bwin 8% 9% 20% William Hill 9% 1. European Brand Study, July 2014 2. Agimeg and AAMS 11 3. DGOJ, company estimates