THE HOME OF BETTING William Hill corporate presentation September - PowerPoint PPT Presentation

THE HOME OF BETTING William Hill corporate presentation September 2014 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

William Hill at a glance • One of the world’s leading multi-channel betting and gaming company • 17,000 employees in nine countries • A balanced business: 54% betting and 46% gaming 1 • Successful multi-channel model: 61% Retail and 39% Online 1 • UK-focused with increasing international reach: 83% UK and 17% international 1 Revenue by business segment Revenue by product type Revenue by geography 2% 2% 1% 8% 7% 7% 46% 54% 32% 58% 83% Retail Online Betting Gaming UK Australia US Other Telephone William Hill Australia William Hill US 3 1. Based on net revenue H1 2014

UK Retail • Largest business segment, representing 58% of revenue 1 • Market leader with 2,360 LBOs 2 , equivalent to 26% market share 3 • 52% betting (OTC) and 48% gaming (machine) • £907m net revenue and £196m operating profit in 2013 • Resilient, cash-generative business Delivering growth against Leader in UK retail bookmaking 3 challenging economic backdrop Evolving product mix 907 Horseracing Football Greyhounds Other AWPs Gaming machines Other, 837.9 William 16% 15% Hill, 33% 5% 789.7 42% 26% 783.1 7% 48% Betfred, 1% 5% 757.5 21% 15% 7% 15% 7% 9% 12% 10% Ladbrokes, 8% 13% 12% Coral, 24% 45% 19% 36% 27% 23% 2003 2006 2010 2013 2009 2010 2011 2012 2013 1. Based on net revenue H1 2014 4 2. Licensed betting offices, end of August 2014 3. Gambling Commission Industry Statistics April 2012-March 2013

Online • c1,500 employees across seven countries, 32% of Group revenue 1 • Market leader with 15% market share by revenue in the UK 2 • 48% betting (Sportsbook) and 52% gaming (casino, bingo, poker) • £446m net revenue and £148m operating profit in 2013 • Well-positioned ahead of UK Point of Consumption Tax Leader in UK online market 2 Growing ahead of the market 3 Strong profit growth 50% 15% 446.3 406.7 23% 321.3 11% 3% 22% 251.5 16% 5% 203.5 15% 10% 13% 12% 12% 11% 5% 4% 6% 8% -4% 7% 7% William Hill Bet365 Betfair Sportsbook Casino Poker Bingo Total Paddy Power Gamesys Skybet 2009 2010 2011 2012 2013 Ladbrokes Pokerstars 888 WH Online UK Gala Coral Other 1. Based on net revenue H1 2014 5 2. Gambling Data , European Regulated Online Markets Data Report 2012 3. 2009 to 2013 CAGR, UK data from H2GC

Italy and Spain • Mobile already generating c30% of net revenue on average • 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 4% 9% 15% 17% 4% 13% 19% 48% 10% 11% 10% 20% 10% 10% Bet365 Bwin William Hill Lottomatica Bwin Paddy Power Sportium Others William Hill Eurobet Snai Sisal Betclic Others 1. European Brand Study, July 2014 2. Agimeg and AAMS 6 3. DGOJ

William Hill Australia • One of the leading corporate bookmarkers with three distinct brands: Sportingbet, Centrebet, tomwaterhouse.com • 21% online sports market share 1 • Good operational progress with strong improvement in KPIs • A$200m net revenue and A$20m operating profit in 2013 (pro forma) Goals Indicators 2 Milestones delivered INCREASE DIGITAL • Turnover +10%  Launch responsive design website CONTRIBUTION • Net revenue +7%  Integrate tomwaterhouse.com GROW • Profit nearly doubled RECREATIONAL  Improve search engine optimisation • CUSTOMER BASE New accounts +14%  Establish new affiliates approach ACCELERATE • Unique actives +21% FIRST TIME  Establish internal IT team • Improved win margin DEPOSITS  • New management team CPA reduced to £224 REDUCE CPA 3  from £724 in H1 2013 Optimise marketing budget (ongoing) 1. Macquarie Research, September 2013 2. H1 2014 7 3. Cost per acquisition

William Hill US • Land-based Sports Books and mobile offering in Nevada, with B2B opportunities • Exclusive risk manager for Delaware state lottery • Full gaming licence, well-positioned to exploit growth opportunities • Strong performance since integration • £23m net revenue and £5m Operating profit in 2013 Nevada sports handle 1 growth Nevada sports book market share 1 $4bn 11% $3bn 55% $2bn 89% 45% $1bn $0bn No. of books GGR 2003 2005 2007 2009 2011 2013 Other Wiliam Hill 1. Handle is defined as the total amounts wagered. Data from UNLV Center for Gaming Research March 2013 8

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 INNOVATION, UK betting population by channel and age 1 TECHNOLOGY AND DATA 100% 13% 19% 21% 23% 26% 7% 80% 15% 22% 29% 60% 30% Retail: 59% 7% 40% 80% Desktop: 66% 10% INTERNATIONAL 8% 55% 50% 5% 44% 20% 7% Mobile: 0% 4% 18-24 25-34 35-44 45-54 55+ Retail Multi-channel Online 9 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 10% INTERNATIONAL 41% 40 0% 40% 20 -10% 0 -20% H1/12 H2/12 H1/13 H2/13 H1/14 37% 2010 2011 2012 2013 H1 2014 Total casino Vegas yoy growth Playtech casino yoy growth 1. Company data 10

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 (£) 11 1. H2GC Global Gambling Data (February 2014); population data (Wikipedia)