Agenda Introduction Financial performance 2014/15 Operational performance 2014/15 Strategic outlook Q&A

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3 Agenda Introduction Henry Birch, Chief Executive Financial performance 2014/15 Clive Jennings, Finance Director Operational performance 2014/15 Henry Birch, Chief Executive Strategic outlook Henry Birch, Chief Executive Q&A 3

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5 Financial headlines 2014/ /14 % Gross revenue (1) 738.3m 707.7m 4% Operating profit (2) 84.0m 72.4m 16% Adjusted earnings per share (2) 14.6p 12.4p 18% EBITDA (2) 126.3m 116.0m 9% Cash inflow from operations 154.5m 107.2m 44% Net debt (3) (52.9)m (137.0)m 61% Final dividend per share 4.00p 3.15p 27% Strong result for the year with profits up 16% H2 up 6% on H1 despite headwind from remote gaming duty Final dividend 4.00p - taking full year dividend to 5.60p (+24%) 5 (1) before adjustment for free bets, promotions and customer bonuses (2) before exceptional items (3) position at the end of the 12 month period

6 Revenue & operating profit Revenue (4) Operating profit (5) m 2014/ / / /14 Grosvenor Casinos Mecca Enracha Central costs Total continuing (28.1) (22.2) 72.4 Good profit growth seen in every brand Strong digital growth with revenue up 21% and profit up 14% Central costs higher due to IT investment and higher bonus / LTIP costs 6 (4) before adjustment for free bets, promotions and customer bonuses (5) before exceptional items

7 Operating profit bridge m Improvement in digital Higher central employment costs Other central costs Irrecoverable VAT -6.6 Bingo price reductions Improvement in venues Cost of RGD Reduction in bingo duty FY 2013/14 operating profit FY 2014/15 operating profit 7 Overall profit growth of 16% Strong profit growth in both venues and digital Net effect of tax changes broadly neutral in year

8 Statutory profit and loss m Profit from continuing operations Net interest payable Profit before tax and exceptional items Exceptional items Profit before tax Taxation Discontinued operations Profit for the period 2014/ / (10.3) (9.0) (49.0) (15.5) Effective tax rate: 22.9% (2015/16 forecast 21%-23%) Cash tax rate on adjusted profit: 3.0% (2015/16 forecast 17.5%-20%) Discontinued operations comprises the release of a tax provision 8

9 Exceptional items m Impairments & property leases Acquisition & integration costs Indirect taxation Closure of venues Net finance costs Total exceptionals pre tax Taxation Discontinued operations Total exceptionals post tax 2014/ / (18.0) - (1.7) - (26.1) 1.7 (0.7) (1.3) (2.5) 0.8 (49.0) (32.6) 9 Venue closures results from the decision to close nine under-performing Mecca venues, two impaired Grosvenor casinos and one loss-making Enracha venue Discontinued comprises the release of a tax provision following the successful resolution of a transfer pricing dispute on a business sold in 2006

10 Cash flow and net debt m Cash inflow from continuing operations Capital expenditure Fixed asset disposals Operating cash inflow Discontinued operations Acquisition and disposal of businesses Net cash payments; provisions and exceptional items Net interest and tax Settlement of legacy tax issues Dividends paid New finance leases Convertible loan payment Other (6) Cash inflow / (outflow ) Opening net debt Closing net debt 2014/ / (31.9) (0.1) (7.9) (9.7) - (18.6) - (2.4) (1.3) 84.1 (137.0) (52.9) (44.3) (0.6) 1.1 (6.7) (15.5) (56.6) (16.4) (2.3) (32.9) (104.1) (137.0) 10 (6) includes fx translation

11 Capital investment m Grosvenor Casinos Mecca Enracha Central Total 2014/ / Southend casino completed and now trading Luton 2005 Act conversion in progress completes later this month Mecca retail received significant investment in new product and club infrastructure, including re-commencing the refurbishment programme New digital platform on track 11

12 Financial strength Strong operating cash flow with EBITDA of 126.3m New bank facilities being put in place comprising 90m 3.5 year term loans and 90m 5 year revolving credit facilities Conservative leverage of c.0.4 times Living wage impact VAT reclaims now largely limited to compound interest claim 12

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14 Operational review: Grosvenor Casinos Strong retail performance driven by: Growth across all gaming products and F&B Effective VIP management Strong London growth Improved win margin in H2 65% digital revenue growth driven by: 130% growth in mobile revenues Continuing cross-over from retail On-going product and service development Improved marketing effectiveness (7) before adjustment for free bets, promotions and customer bonuses, (8) before exceptional items Revenue (7) Operating profit (8) m 2014/ / / /14 London Provinces Belgium Venues total Digital (0.9) Total brand KPIs Venues Digital Visits (000s) 8,233 8, Spend per visit ( )

15 Operational review: Grosvenor Venues Effective VIP management driving revenue growth: Introduction of Gold Cards (25k customers) and Black Cards (5k customers) enhanced levels of service and benefits enhanced loyalty points and rewards New VIP management team in place in London and major conurbations Revenue contribution in 2014/15 from top 50 customers 4.6m ahead of 4 year rolling average Play Points now in 46 casinos 15

16 Operational review: Grosvenor Venues Continuing active estate management ensuring sustained growth: Opening of Grosvenor Southend in September 2014 Opening of Oldbury casino adjacent to Mecca Oldbury in December 2014 New 2005 Act licence and extension of existing Grosvenor Luton Refurbishments of Bournemouth and Gloucester Road Closure of New Brighton and Portsmouth Osborne Road with licence being moved to Portsmouth Gunwharf Quays Grosvenor Southend 16

17 17 Operational review: Mecca Retail: Stable retail revenues on a like-for-like club basis Fall in visits offset by increase in spend per visit Improved retail performance as a result of focus on: spend per visit admissions cost control Digital: Strong digital revenue growth up 11% with H2 up 16% Active customers up 17% Growth driven by: investment in product, especially mobile improved marketing continuing and increasing retail cross-over Revenue (9) Operating profit (10) m 2014/ / / /14 Venues Digital Total brand KPIs Venues Digital Visits (000s) 12,035 12,607 5,213 4,822 Spend per visit ( ) (9) before adjustment for free bets, promotions and customer bonuses, (10) before exceptional items

18 Operational review: Mecca Venues Growth in spend per visit driven by improved product and service: Increased electronic bingo: Mecca Max units 5,600 new and replacement Max units introduced in the year reduced unit size makes for better customer experience and lower unit cost higher spend per head Improved slots offer 1,000 new and 1,315 upgraded Scientific Games/Videobet server based slots with TiTo functionality Improved food & beverage offer new menu offering quality and value Max Power: 11,000 operational Max units in the Mecca estate A Max customer s SPV on bingo will be on average c.4x that of a paper player ( vs 14.77) A Max customer on average will visit 2.04 times per week compared to 1.50 for a paper player Max players are also 2/3 more likely to play online 18

19 19 Operational review: Mecca Venues Continuing cost control and efficiency driving margin: 2% saving in direct payroll expenses despite 550k pay increase Closure of six clubs throughout the year: reduced revenues but improved profitability Improved purchasing processes (especially in F&B), increasing margins Bingo duty reduction driving considerable re-investment and cost saving: Duty reduction equates to 11.3m cost reduction Reinvestment into venues and product: 1.3m capital expenditure on refurbishment of eight venues (eight more in 2015/16) new format bingo club opening in this financial year additional 1.1m spent on club maintenance 3.4m allocated to reducing main stage bingo pricing 1.5m spent on enhanced customer prizes 2.2m spent on Mecca Max units The Codfather 10 inch fish finger

20 Operational review: Mecca Venues Rate of decline in admissions slowing: 2014/15 admissions variance of (2.6%) vs. (6.6%) prior year with several clubs in admissions growth Improved marketing: TV advertising promoting club experience retail CRM rationalised and improved Investment in clubs to improve customer experience eight light refurbishments with a further eight this year Reduction in the cost to player of main stage bingo Appointment of Mecca Marketing Director: Anna Shirley (Sainsbury s, Freemans) Improving admissions rate a key focus for this financial year 0% -5% -10% Like-for-like venues visits H1 14 H2 14 H1 15 H

21 Enracha Like-for-like euro revenues up 9% Encouraging quarterly trends with growth in admissions and revenue Significant growth in operating profit due to tax de-regulation, cost control and closure of loss making clubs Three venues converted to Enracha brand Looking to re-launch digital channel by 2016/17 following migration onto Bede platform 12% 6% Admissions growth 2014/15 m 2014/ /14 Revenue ( m) Revenue (euros m) Operating profit ( m) KPIs Venues Visits (000s) 1,844 1,945 Spend per visit ( ) % 2% Revenue growth 2014/15 0% Q1 Q2 Q3 Q4 0% Q1 Q2 Q3 Q4 21

22 Operational review: Digital Combined revenues up 21% and operating profit up 14% despite RGD Strong growth in mobile: 65% of all digital customers played on mobile vs 49% in 2013/14 Grosvenor mobile revenue up 155% yoy Grosvenor mobile actives up 132% yoy Mecca mobile stakes up 69% yoy Mecca mobile actives up 49% yoy Expansion of talent: gaming and functional experience Organisational restructure with shared functions across brands: digital marketing - design and UX mobile - fraud and payments business intelligence - CRM Grosvenor ios Live Casino App 22 Grosvenor ios Live Casino App

23 Operational review: Digital Operational and product innovation driving growth ahead of platform migration: New Mecca website: single adaptive and responsive front end across desktop, mobile and tablet launched on Mecca in May 2015 Significant mobile product development: Mecca native IOS ipad app launched in December 2014 Grosvenor mobile refresh: new mobile site, upgraded IOS app, new Live Casino app Launch of compelling new content: 167 new games launched on Grosvenor from 12 different suppliers 156 new games launched on Mecca from 12 different suppliers Mecca new website and ipad app 23

24 Cross channel Retail base providing strong underpin and growth to digital: Percentage of digital customers who are also club customers: Mecca: 33% Grosvenor: 35% Percentage of new digital customers last year who were club customers: Mecca: 16% Grosvenor: 44% Percentage of retail customers who are also digital customers Mecca 9.1% Grosvenor: 2.3% The Opportunity 24

25 Strategy update Aim: To be the UK s leading multi-channel gaming operator Clear strategy for delivering sustainable profitable growth across all our brands through 5 initiatives: 1. Creating a compelling multi-channel offer 2. Building digital capability 3. Developing our venues 4. Investing in brands and marketing 5. Using technology to drive efficiency and improve customer experience 2014/15: Good progress made on these strategic objectives 25

26 1. Creating a compelling multi-channel offer Activity in 2014/15 Priorities in 2015/16 Grosvenor My Casino services app Tri-channel launch of content Progress towards a new digital platform BYOD trial in Mecca Grosvenor Play Points loyalty scheme rolled out to 46 clubs Grosvenor Casinos Black & Gold cards Digital platform migration Mecca Services app Progress towards single account and single wallet New/updated Grosvenor retail management system 26 Tri-channel game launch Grosvenor My Casino App

27 2. Building digital capability Activity in 2014/15 Priorities in 2015/16 Bede appointment New Mecca website: launch of a single responsive and adaptive Mecca front end for desk top, tablet and mobile devices Continued focus on digital customer acquisition conversion and retention Organisational restructure: single teams across marketing, mobile, design and user experience Expansion of talent Decision to move Enracha onto Bede Delivery of new digital platform Digital poker product development Sports betting product New digital brands 27

28 28 Building digital capability: New platform Good progress on core platform migration to Bede Gaming: Estimated launch in Q3 2015/16 Likely to be single big bang approach for both UK brands, with Enracha to follow Key benefits and functionality include: Flexible, open architecture allowing quick and easy integrations - central to joining up retail Direction of product and functionality roadmap Improved bonusing, CRM and business intelligence Allows us to work with best of breed products and content: Playtech, IGT, Novomatic, Evolution, Openbet, Safecharge, WMS, Bally

29 3. Developing our venues Activity in 2014/15 Priorities in 2015/16 New casino opened in Southend Refurbishments of Gloucester Road (London) and Bournemouth casinos Opening of Oldbury casino, adjacent to Mecca Oldbury 2005 Act licence added to existing Grosvenor Luton Eight light refurbishments of Mecca venues Expansion of Enracha brand to 3 clubs in Spain Opening of new format bingo venue Expansion of key casino sites Eighteen Grosvenor sparkles Eight light refurbishments of Mecca venues Grosvenor urinals 29

30 4. Investing in brands and marketing Activity in 2014/15 Priorities in 2015/16 A single cross-brand digital marketing team New advertising agency appointed across both brands New Mecca and Grosvenor Casinos TV adverts New Grosvenor Casinos logo design Increased VIP teams in Grosvenor Casinos Increased marketing spend New Mecca marketing director appointed Continue to increase marketing spend incrementally whilst ensuring ROI Review and improve our customer relationship management, business intelligence and insights capability Review sponsorship opportunities Old logo New logo Mecca TV ad 30

31 5. Using technology to drive efficiency and improve customer experience Activity in 2014/15 Priorities in 2015/16 Server-based slots roll out in Mecca 1,000 new and 1,315 upgraded server-based machines from Scientific Games/Videobet Continuing Mecca Max roll out 5,600 units purchased giving a total of 11,000 Mecca Max units across the estate Bring Your Own Device trial in Mecca Labour scheduling in Grosvenor venues Outsourcing of club and operational IT support desk, giving 24/7 coverage ibeacon trial Improved electronic roulette Cashless systems in our venues Launch of progressive Blackjack jackpot across our UK casino estate 31 New slots

32 New management team Paul Richardson Group Director of Strategy and Corporate Development (Galaxy, GLP, CIBC) Martin Pugh MD Mecca (Camelot, Virgin Active, Safeway) Colin Cole-Johnson Director of Digital and Cross Channel (William Hill, Ladbrokes) Mark Jones MD Grosvenor Casinos (Mecca, Premium Bars and Restaurants, Yates, Pizza Hut) 32 Keith Woodcock CTO Frances Bingham Co Sec and General Counsel Sue Waldock HR Director Henry Birch Chief Executive Clive Jennings Finance Director

33 Key areas of focus for the year ahead Continued growth across all brands and channels Successful launch of new digital platform Successful launch of new retail bingo concept Acceleration in Grosvenor Casinos venues admissions growth Like-for-like revenue growth in Mecca venues Progress towards a single account and wallet across digital and retail Improved data analysis capability and solutions Current trading for 7 week period in line with expectations continuing positive trends 33

34 2014/15 Summary Strong operating performance Strong digital growth ahead of schedule New management team in place Ongoing delivery against strategic objectives with clear roadmap Strong balance sheet with significantly improved cash flow from operations 27% growth in final dividend, ahead of EPS growth, showing confidence in our future Clear strategy for sustainable, long term growth 34

35 35 APPENDICES

36 Grosvenor Casinos Venues datasheet FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 FY 2012/13 H1 2012/13 Casino licences: London Provinces Belgium Total Non-trading licences Revenue ( m) Operating profit ( m) Operating margin Customers MAT (000s) (1) 15.8% 1, % 1, % 1, % 1, % 1, % 1,282 Visits (000s) 8,233 4,147 8,139 4,082 6,052 3,052 Spend per visit ( ) Electronic gaming (UK only) B1 machines B2 machines B3/C/D machines Electronic casino terminals 1, ,770 1, ,759 1, ,732 1, , , , (1) Active customers on a Moving Annual Total basis, excluding Belgium

37 Grosvenor Casinos Digital datasheet FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 FY 2012/13 H1 2012/13 Revenue ( m) Operating profit / (loss) ( m) (0.9) (0.9) (2.1) (1.8) Operating margin 13.9% 19.2% Customers MAT (000s) Visits (000s) Spend per visit ( )

38 Mecca Venues datasheet FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 FY 2012/13 H1 2012/13 Venues Revenue ( m) Operating profit ( m) Operating margin Customers MAT (000s) Visits (000s) Spend per visit ( ) % , % 938 5, % , % 940 6, % , % 958 6, Electronic gaming B3/B4 machines (2) 1,578 1,749 1,762 1,841 1,908 1,224 C/D machines 3,692 3,342 3,407 3,423 3,577 4,213 Electronic bingo terminals 11,273 8,856 8,481 8,170 8,075 8,100 (2) includes B3 machines located in adult gaming centres, operated by Rank and located adjacent to Mecca Bingo clubs 38

39 Mecca Digital datasheet FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 FY 2012/13 H1 2012/13 Revenue ( m) Operating profit ( m) Operating margin 21.6% 26.7% 27.0% 22.8% 34.4% 37.5% Customers MAT (000s) Visits (000s) 5,213 2,569 4,822 2,323 5,003 2,436 Spend per visit ( )

40 Enracha datasheet FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 FY 2012/13 H1 2012/13 Venues Revenue ( m) Operating profit ( m) Operating margin 10.3% 7.0% 2.8% 2.0% 2.5% 2.9% Customers MAT (000s) Visits (000s) 1, , , Spend per visit ( )

41 UK casinos market supply Operator Grosvenor Casinos Genting Caesers Entertainment UK (fka London Clubs) A&S Leisure Double Diamond Aspers/Aspinall s Club 36 Clockfair Guoco Others Total Casino Venues (3) Total Licences 77 (3) (3) Source: National Casino Industry Forum (3) includes 2005 Act casino licences

42 UK bingo clubs market supply Operator Clubs (4) Gala Bingo Mecca Top Ten Bingo Carlton Clubs Castle Club 3000 Beacon Others Total Source: Bingo Association (4) excludes the conversion of adult gaming centres to bingo clubs 42