2018 Interim Results 13 September 2018 Disclaimer NOT FOR - - PowerPoint PPT Presentation

2018 Interim Results

13 September 2018

2

Disclaimer

NOT FOR PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. This presentation has been prepared by GVC Holdings PLC (“GVC”). 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. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not

• ccur in the future and may be beyond GVC’s ability to control or predict. Nothing in this presentation should be construed as a profit
• forecast. Forward looking statements are not guarantees of future performance and hence may prove to be erroneous. Other than in

accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), GVC 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. No representation or warranty (express or implied) of any nature is given nor is any responsibility or liability of any kind accepted by GVC or any of its directors, officers, employees, advisers, representatives or other agents, with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (express or implied), omissions, errors or misstatements in this presentation, or any other written or oral statement provided. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotions in section 21 of the UK Financial Services and Markets Act 2000. In making this presentation available, GVC makes no recommendation to buy, sell or otherwise deal in shares of GVC or in any other securities or investments whatsoever and you should neither rely nor act upon, directly or indirectly, any of the information contained in this presentation in respect of any such investment activity. Any recipients of this presentation outside the UK should inform themselves of and observe any applicable legal or regulatory requirements in their jurisdiction, and are treated as having represented that they are able to receive this presentation without contravention of any law or regulation in the jurisdiction in which they reside or conduct business. In particular, the securities referred to in this presentation have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933. By accepting this presentation, you agree to be bound by the foregoing provisions, limitations and conditions. Totals may not sum as rounding and percentages have been calculated on the underlying rather than summarised figures.

3

Contents

Introduction Kenneth Alexander Financial Review Paul Bowtell Integration and Regulatory Paul Bowtell Update Operational Update Kenneth Alexander Summary Kenneth Alexander

4

Overview

• Strong financial and operational performance
• Group NGR1 +8% (cc2 +8%) with strong growth in Online1 +18% (cc2 +20%) and

European Retail1 +29% (cc2 +26%)

• Underlying EBITDA1,3 +11%; and operating profit1,3 +17%
• Market share gains in key territories
• Completion of Ladbrokes Coral acquisition – integration progressing well and

capex synergies of at least £30m identified

• JV with MGM leaves the Group very well placed for US sport betting market
• Interim dividend confirmed at 16.0p paid (2017 H1: 14.6p) and expected to pay on

a 50:50 (H1/H2) basis

• Strong current trading1,4 (Group NGR +14%: Online NGR: +30%) with full year
• utlook in line with management expectations

[1] Proforma basis [2] Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2018 exchange rates [3] Stated pre separately disclosed items [4] Current trading period: 1 July to 2 September 2018 vs 2017

Paul Bo aul Bowtell ll

Chief Financial Officer

5

6

Financials: Group P&L

• Group Proforma NGR +8%

8%

• Group Proforma

underlying EBITDA +11% 1%

• Adjusted fully diluted EPS

32.2p ( p (+30% 0%)

• Interim dividend of 16

16.0p (+10%) %)

• Net debt at 30 June 2018

£1,887 87.0m 0m

• 2.69x

69x Net debt/LTM EBITDA

[1] 2018 and 2017 reported results are unaudited and reflect the acquisition of the Ladbrokes Coral Group plc on 28 March 2018 [2] The Group’s proforma results are unaudited and presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. The results of Crystalbet are included from the date of acquisition (11 April 2018) and the results of Kalixa are excluded from the date of disposal (31 May 2017). [3] Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2018 exchange rates [4] Stated pre separately disclosed items [5] Adjusted for the impact of separately identified items, FX movements on financial indebtedness and gains on derivative financial instruments [6] Proforma basis

2018 2018 2017 2017 Cha hang nge 2018 2018 2017 2017 Cha hang nge CC CC3 £m £m £m £m % £m £m £m £m % % NG NGR 1,125.1 386.6 191% 1,717.0 1,591.0 8% 8% Revenue nue 1,105.9 374.8 195% 1,694.3 1,572.8 8% 8% Gross p profit 763.2 272.4 180% 1,163.4 1,098.2 6% Contr tributi tion 582.0 191.7 204% 923.0 908.9 2% Contribution Margin 51.7% 49.6% 2.1pp 53.8% 57.1% (3.3pp) Underlying E EBI BITDA4 235.0 100.7 133% 349.5 314.1 11% Ope perating P Profit4 188.6 78.6 140% 277.9 236.9 17% Me Memo:

2018 2018 2017 2017

Number of shares (m)

578.1 300.7

Diluted EPS(p)

24.9 (2.1)

Adjusted diluted EPS (p) 5

32.2 24.7

Dividend / share (p)

16.0 14.6

Net Debt (£m)

(1,887.0) n/a

Net Debt / LTM EBITDA 6

2.69x n/a

Reported1 Proforma2

7

Financials: Proforma EBITDA Profit Bridge

£314.1m £305.1m £349.5m 32.4 13.1 4.8 (9.0) (5.4) (0.5) £250m £260m £270m £280m £290m £300m £310m £320m £330m £340m £350m H1 FY17 EBITDA Regulatory Adjustments H1 FY17 EBITDA Rebased Online UK Retail European Retail Other Corporate H1 FY18 EBITDA

Stro trong g growth th i in Online a and Euro rope pean R Reta tail

Online UK POCT - £6.5m Horse Race Levy - £2.5m

World C Cup up N NGR P Pre-Sub ubstitut ution ( n (£m) H1 H2 Tot

• tal

Number of matches 50 14 64 Online 21.1 16.9 38.0 Uk Retail 6.7 7.1 13.8 European Retail 7.2 4.9 12.1 Other 0.2

• 0.2

Total 35.2 28.9 64.1

8

Financials: Statutory P&L

Grou

• up Pro

Proforma underly lyin ing EBITD TDA +11 11% Grou

• up Pro

Proforma Operating p profi fit t +17% 17% Fina nanc nce c costs £26. 26.5m

• 87

87% higher as a result of the interest on loans taken out to finance the acquisition of Ladbrokes Coral Separ arat ately d disclosed i d items ms £48. 48.5m

• Major items including £126.

26.2m 2m

• amort. of acquired intangibles,

£48. 48.4m corporate transaction costs and £142 142.3m c credit it movement in fair value of contingent consideration Tax ax £0.2m c m credit

• Tax charge reflects an

underlying tax rate of 12% 2% (full year expected 13% 13%)

[1] 2018 and 2017 reported results are unaudited and reflect the acquisition of the Ladbrokes Coral Group plc on 28 March 2018 and excludes the results of discontinued operations [2] The Group’s proforma results are unaudited and presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. The results of Crystalbet are included from the date of acquisition (11 April 2018) and the results of Kalixa are excluded from the date of disposal (31 May 2017). [3] Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2018 exchange rates

2018 2018 2017 2017 Cha hang nge 2018 2018 2017 2017 Cha hang nge CC CC3 £m £m £m £m % £m £m £m £m % % NG NGR 1, 1,125. 125.1 386. 386.6 191% 191% 1, 1,717. 717.0 1, 1,591. 591.0 8% 8% 8% 8% Revenue nue 1, 1,105. 105.9 374. 374.8 195% 195% 1, 1,694. 694.3 1, 1,572. 572.8 8% 8% 8% 8% Gross p profit 763. 763.2 272. 272.4 180% 180% 1, 1,163. 163.4 1, 1,098. 098.2 6% 6% Contr tributi tion 582. 582.0 191. 191.7 204% 204% 923. 923.0 908. 908.9 2% 2% Contribution Margin 51.7% 49.6% 2.1pp 53.8% 57.1% (3.3pp) Underlying E EBI BITDA 235. 235.0 100. 100.7 133% 133% 349. 349.5 314. 314.1 11% 11% Share based payments (5.0) (9.1) 45% (6.0) (11.5) 48% Depreciation & Amort. (42.1) (13.0) (224%) (66.1) (67.6) 2% Share of JV income 0.7

• 0%

0.5 1.9 (74%) Ope perating P Profit 188. 188.6 78. 78.6 140% 140% 277. 277.9 236. 236.9 17% 17% Finance costs (26.5) (14.2) (87%) Profit b before t tax p pre separately ly d dis isclo losed ite tems 162. 162.1 64. 64.4 152% 152% Separately disclosed items (48.5) (87.2) 44% Profit b t before ta tax 113. 113.6 (22. (22.8) 8) 598% 598% Tax 0.2 (0.6) 133% Profit a t afte ter ta tax 113. 113.8 (23. (23.4) 4) 586% 586% Reported1 Proforma2

9

Online

Sport rts b s bran ands N s NGR +19% 19% ( (cc +21 21%)

• GVC brands +23% (cc +26%)
• Ladbrokes.com +7%
• Coral.co.uk +12%
• Ladbrokes.com.au +24% (cc +31%)
• Eurobet.it +36% (cc +32%)

Game ames b brands ds N NGR +13% 13% ( (cc + +15 15%)

• Partypoker +36% (cc +41%)
• Galabingo +5%

Total N l NGR GR +18% 8% ( (cc + +20% 20%)

• Good underlying growth in all

material markets

• Positive World Cup

Contribu ibutio ion m margin in -4.0pp pp

• see next slide

Opera rating c cost sts 1% hi % highe her

• Growth in business
• Crystalbet costs
• Increase regulatory & compliance

costs in UK

• Offset by LCL merger synergies

[1] The Group’s proforma results are unaudited and presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. The results of Crystalbet are included from the date of acquisition (11 April 2018) and the results of Kalixa are excluded from the date of disposal (31 May 2017). [2] Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2018 exchange rates [3] Stated pre separately disclosed items

2018 2018 2017 2017 Cha hang nge CC CC2 £m £m £m £m % % Spo ports br brands: s spo ports w wagers 4, 4,875. 875.4 4, 4,503. 503.1 8% 8% 10% 10% Spo ports br brands: s spo ports m margin 10. 10.4% 4% 9. 9.2% 2% 1. 1.2pp 2pp 1. 1.2pp 2pp Sports brands NGR 713.2 598.7 19% 21% Games brands NGR 169.6 150.6 13% 15% B2B NGR 12.6 9.4 34% 38% Tota tal N NGR 895. 895.4 758. 758.7 18% 18% 20% 20% VAT/GST (22.7) (18.2) (25%) (30%) Revenue nue 872. 872.7 740. 740.5 18% 18% 20% 20% Gross p profit 597. 597.1 518. 518.7 15% 15% Contr tributi tion 364. 364.2 339. 339.2 7% 7% Contribution Margin 40.7% 44.7% (4.0pp) Underlying E EBI BITDA3 210. 210.9 187. 187.7 12% 12% Share based payments (2.1) (4.0) 48% Depreciation & amortisation (38.2) (33.7) (13%) Share of JV income (0.3) (0.4) 25% Ope perating P Profit3 170. 170.3 149. 149.6 14% 14% 6 m mont nths hs e end nded 3 30 J June une Proforma1

10

Online: Contribution Margin

[1] Kalixa costs previously recorded in overheads. Post disposal 31 May 2017 equivalent 3rd party costs are now recorded in contribution

FY2018 Online contribution margin expected to be c42. 2.0% 0% - 43. 43.0%

44.7% 43.8% 40.7% (0.9%) (2.3%) (0.1%) (0.7%) 30% 32% 34% 36% 38% 40% 42% 44% 46% H1 FY17 Online Contribution Margin UK POC & Horse Race Levy H1 FY17 Online Contribution Margin Rebased Marketing phasing Growth in higher tax regions Kalixa [1] H1 FY18 Online Contribution Margin

11

UK Retail

OTC w wag agers rs -8% ( % (LFL3–7%) %)

• -6%

% after adjusting for the impact

• f poor weather, the World Cup and

full horse racing content OTC m marg argin 17. 7.9% ( (fla lat)

• Positive World Cup and

Cheltenham

• Offset by a relatively poor Grand

National Ma Mach chines N NGR/ R/Re Revenue -3% ( % (LFL3-1%) %)

• Flat

t after adjusting for the adverse impact of reduced shop hours and poor weather Contribu ibutio ion m margin in -0.6pp pp

• Higher machines mix and ARC

content costs Opera rating c cost sts 6% 6% lo lower

• Tight cost control, synergies from

LCL merger and shop closures No of shops at 30 June 2018 3,562 62 (2017: 3,660 60) Net shop closures:–2.7% 7%

[1] The Group’s proforma results are unaudited and presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. The results of Crystalbet are included from the date of acquisition (11 April 2018) and the results of Kalixa are excluded from the date of disposal (31 May 2017). [2] Stated pre separately disclosed items [3] UK Retail numbers are quoted on a LFL basis. During H1 there was an average of 3,563 shops in the estate, compared to an average of 3,663 in the same period last year

2018 2018 2017 2017 Cha hang nge £m £m £m £m % OTC w wagers 1, 1,562. 562.9 1, 1,702. 702.9 (8% (8%) OTC m margin 17. 17.9% 9% 17. 17.9% 9% 0. 0.0pp 0pp OTC NGR/Revenue 277.1 299.7 (8%) Machines NGR/Revenue 387.5 397.5 (3%) Total N NGR/Revenue nue 664. 664.6 697. 697.2 (5% (5%) Gross p profit 476. 476.9 507. 507.7 (6% (6%) Contr tributi tion 474. 474.4 501. 501.9 (5% (5%) Contribution Margin 71.4% 72.0% (0.6pp) Underlying E EBI BITDA2 125. 125.8 131. 131.0 (4% (4%) Share based payments (0.4) (0.7) 43% Depreciation & amortisation (18.5) (27.6) 33% Share of JV income

• 0%

Ope perating P Profit2 106. 106.9 102. 102.7 4% 4% 6 m mont nths hs e end nded 3 30 J June une Proforma1

12

European Retail

[1] The Group’s proforma results are unaudited and presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. The results of Crystalbet are included from the date of acquisition (11 April 2018) [2] Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2018 exchange rates [3] Stated pre separately disclosed items

OTC w wag agers rs +7% ( % (cc + +4%) %)

• Organic growth in Eurobet Italy and

estate growth in Ladbrokes Belgium OTC m marg argin 17.8% 8% ( (+3. 3.0pp) pp)

• Strong football margins in Italy

compared to prior period Cont ntribut ution n marg argin +1.6pp 6pp

• Lower payments to franchisees

(results mix) offset by front-ended World Cup marketing costs Opera rating c cost sts 11% h % highe her

• Investment in tech and people to

support growth in Italy and the acquisition of >20 independent

• perators in Belgium

Outle lets a at 30 J June 2 2018 018

• Eurobet Italy 836

36 (2017: 828 28)

• Ladbrokes Belgium 320

0 shops, 307 07

• utlets (2017: 289

89 shops, 213 13

• utlets)
• Ladbrokes ROI 139

39 (2017: 141 41)

2018 2018 2017 2017 Cha hang nge CC CC2 £m £m £m £m % % OTC w wagers 753. 753.1 703. 703.5 7% 7% 4% 4% OTC m margin 17. 17.8% 8% 14. 14.8% 8% 3. 3.0pp 0pp 3. 3.0pp 0pp Sports NGR/Revenue 103.4 75.1 38% 34% Other OTC NGR/Revenue 29.5 27.2 8% 5% Machines NGR/Revenue 1.2 1.3 (8%) (9%) Total N NGR/Revenue nue 134. 134.1 103. 103.6 29% 29% 26% 26% Gross p profit 69. 69.9 52. 52.1 34% 34% Contr tributi tion 67. 67.1 50. 50.1 34% 34% Contribution Margin 50.0% 48.4% 1.6pp Underlying E EBI BITDA3 28. 28.8 15. 15.7 83% 83% Share based payments (0.1) (0.1) 0% Depreciation & amortisation (8.7) (5.5) (58%) Share of JV income 0.2 1.0 (80%) Ope perating P Profit3 20. 20.2 11. 11.1 82% 82% 6 m mont nths hs e end nded 3 30 J June une Proforma1

13

Financials: Separately Disclosed Items

Amo mort

• rt. of
• f ac

acq .intangib ible les: £126 26.2m 2m

• Primarily relates to the acquisition of

the Ladbrokes Coral Group and bwin.party Corp rporat rate t tran ansa saction c cost sts: s: £48. 8.4m 4m

• Primarily relating to the acquisition
• f the Ladbrokes Coral Group

Legal a and o d onero rous c s contrac racts: s: £12. 2.8m 8m

• Shop closures and other legal

provisions outside the ordinary course of business Integra ration c cost sts: s: £3.4m 4m

• Costs associated with the

integration of the Ladbrokes Coral Group Movem emen ent i in fair v value o e of conting ngent nt consi siderat ration: £142 142.3m c credit it

• Movements in the value of the CVR

between the date of LCL acquisition and the current date

• Other M&A contingent consideration

(e.g. Crystalbet)

[1] 2018 reported results are unaudited and reflect the acquisition of the Ladbrokes Coral Group plc on 28 March 2018

P& P&L Cash sh ite tems Non C n Cash h ite tems £m £m £m £m £m £m Amortisation of acquired intangibles 126.2

• 126.2

Corporate transaction costs 48.4 48.4

• Legal and onerous contract provisions

12.8 12.8

• Integration costs

3.4 3.4

• Movement in fair value of contingent

consideration (142.3) (142.3)

• Tota

tal 48. 48.5 (77. (77.7) 7) 126. 126.2 6 m mont nths hs e end nded 3 30 J June une Reported1

1 2018

2018

14

Financials: Cashflow

Underlying ng w working ng capit pital: l: £45. 45.8m

• utfl

tflow

• Primarily driven by payment of staff

bonus; a large proportion of which is expected to unwind in H2. Greek t tax w ax working c cap apital: £46. 46.6m

• utfl

tflow

• Reflecting the monthly payments
• n account made as part of the

appeal process against the Greek Authority tax assessment of €186.8m Cap apex: x: £100. 00.9m 9m outfl tflow

• Underlying capex in-line with full

year proforma guidance of £160m Tax: ax: £11. 11.6m o

• utflo

low

• Full year tax payment expected to

be c£60m 0m Annual alised f d finan ance c costs: £39. 9.5m 5m

• utfl

tflow

• Reflects the charge that would

have resulted had the current capital structure been in place for the full period

[1] The Group’s proforma results are unaudited and presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. The results of Crystalbet are included from the date of acquisition (11 April 2018) and the results of Kalixa are excluded from the date of disposal (31 May 2017).

2018 2018 £m £m Underlying E EBI BITDA 349. 349.5 Working capital Underlying (45.8) Greek tax payments (46.6) Capital expenditure Underlying (88.4) EPOS2 (12.5) Tax (11.6) Proforma c cashflo low p pre s separately ly d dis isclo losed it items 144. 144.6 Annualised finance costs (39.5) Ope perating c cashflow 105. 105.1 6 m mont nths hs e end nded 3 30 J June une Proforma1

15

Financials: Net Debt

• The Group raised borrowings of

£1,398 398.0m 0m to finance the acquisition of the Ladbrokes Coral Group, utilised as follows:

• £660.

0.2m 2m repayment of legacy Ladbrokes Coral debt

• £630.

0.4m 4m to fund the cash element of the acquisition consideration

• £107.

7.4m 4m liquidity to fund the combined Group’s working capital requirements

• As at 30 June 2018:
• Accounting net debt was

£1,770 770.6m 6m

• Adjusted net debt was

£1,887 887.0m 0m

• Proforma EBITDA ratio was

2.69x 9x

Pa Par Issu ssue c cost sts/ s/ Tota tal Va Value Pr Premium £m £m £m £m £m £m Bonds (500.0) (35.4) (535.4) Terms loans / RCF (1,698.0) 34.8 (1,663.2) Interest accrual (16.2)

• (16.2)

Gross c ss cash sh d debt (2, (2,214. 214.2) 2) (0. (0.6) 6) (2, (2,214. 214.8) 8) Lease liabilities (0.4) Cash 444.6 Net D Debt (1, (1,770. 770.6) 6) Cash held on behalf of customers (213.4) Fair value of swaps held against debt instruments 30.4 Short term investments 4.4 Balances held with PSP 62.2 Adjusted n net d debt (1, (1,887. 887.0) 0) Prof

• for
• rma L

LTM E EBIT ITDA 701. 701.9 Leverage r ratio 2. 2.69x 69x Net D Debt As a at 30 J 30 June 2018 2018

16

Guidance

FY18 G Gui uidance nce: N New

• Australian POCT

c£ c£1-2m 2m 2018 and c£20m 20m 2019

• Depreciation and Amortisation

Full year proforma charge of c£140m 140m

• Dividend

Paid on 50 50:50 (H1:H2) basis

• Online contribution margin

c42. 2.0% 0% - 43 43.0% FY18 G Gui uidance nce: Uncha nchang nged f from Q1 Q1 Capex and integration:

• Capex – underlying1

c£125m 125m post acquisition2, c£160m 160m annualised

• Capex - EPOS 21

c£27m 27m post acquisition2

• Integration costs – previous deals3

c£15m 15m P&L charge post acquisition2 c£45m 45m cash cost post acquisition2 (of which c£20m 20m capex)

• Ladbrokes Coral integration costs

c£17m 17m (of which c£5m 5m capex) Other:

• Share based payments

c£10m 10m – £15m

• Interest costs

c4 c4% on gross debt c£60m 60m P&L charge4 post acquisition2, c£85m 85m annualised c£50m 50m cash cost post acquisition2, c£85m 85m annualised

[1] Pre Triennial Review [2] Period 28 March 2018 to 31 December 2018 [3] GVC Holdings plc acquisition of bwin.party and Ladbrokes PLC merger with the Coral Group [4] P&L cost of interest that will be paid in cash

17

Integration Update

• Detailed integration and synergy plans signed off
• Senior management structures in place, organisation structure design well progressed
• Trading teams aligned from Day 1, protecting the underlying trading performance
• Discussions with Playtech are well advanced regarding the timing of the Ladbrokes

Coral platform migrations

Fina nanci ncial Year Cost Syn ynergies Capex x Syn ynergies Integration

• n

Costs ts

Cumulative ve Exit t Ru Run Ra Rate Cumulative ve Rea eali lised In Y Year Cumulative ve Rea eali lised In Y Year In Y Year

2018 £7m £4m-£5m £0 £17m 2019 £35m £16m-£26m £10m-£15m £39m 2020 £78m £52m-£62m £20m-£30m £43m 2021 £130m £104m-£114m £30m £31m 2022 £130m £130m £30m

• Total capex synergies now

validated and are expected to be at least £30m

• Ladbrokes Coral synergies

(£150m) will hit 100% run rate at the end of 2018

• 2018 GVC LCL synergies

secured (£5m)

18

Regulation

Uni nited ted S Sta tates tes 7 states have now legalised sports-betting Austr ustralia POCT implemented 1/1/2019 (1/7/17 in SA; 1/10/18 in Queensland) Swed eden en Licences expected to be issued in 1/1/19 Spa pain Online duty reduced from 25% to 20%. Effective 1/7/18 Italy ly Full advertising restrictions in place from July 2019 UK UK

• Change in maximum B2 stakes

expected to be enacted in 2018. Implementation date tbc.

• Expected update on RGD

increase in Nov 2018 budget Germa many No material updates. Increasing number of lander calling for revisions to State Gaming Treaty Switzer erla land Legislation due to be passed prohibiting sports-betting outside of existing Swiss lottery

• perators. Potentially

effective 1/1/2019. Represents <1% of Group NGR

Pla lannin ing f for t the p post t trie iennia ial w l world ld

• Project team up-and-running to ensure a smooth

transition to a more sustainable estate

• Ongoing lease optimisation
• Review of central cost base
• Major operational developments include:
• Roll-out of next generation FOBTS commenced Q3
• Implementation of EPOS 2 – more efficient back
• ffice process
• Trials of in-house SSBTs
• Market leading multi-channel offerings continue to drive
• nline growth at very low CPA
• Continued focus on cost control

19

UK Retail – Post Triennial Plan & Impact

Triennia ial f l final d l decis isio ion p provid ides c certain inty a and e enable bles p pla lannin ing f for a a post £ £2 R 2 Retail e il estate Triennial al I Impac act (EBITDA g guidan dance u unchan anged f d from Q Q1)

• Fully mitigated impact of c£120m

20m on Group EBITDA by end of the second full year post implementation

• Enactment expected in Q4 2018
• Implementation date not yet known

Post I t Implementa tati tion in in y year im impact £m Year 1 1 Year 2 Year 3 3 NG NGR UK Retail (463.0) (520.0) (540.0) Online 18.0 32.0 40.0 Total (445. 45.0) 0) (481. 81.0) 0) (500. 00.0) 0) EBITDA UK Retail (172.5) (160.0) (145.0) Online 12.5 22.0 25.0 Total (160. 60.0) 0) (138. 38.0) 0) (120. 20.0) 0)

Kenne nneth A th Alexa xand nder

Chief Executive

20

21

Strategic Overview

Vision Values Strategic Imperatives Goals Key Enablers

To be e the w e wor

• rld’s l

largest s spor

• rts-bettin

ing a and nd g gamin ing b busin usiness Scale Geographic Diversification + Market Leading Organic Growth M&A + Brands Technology Product Marketing People + + + + A passion for delivering superior customer experience and a total commitment to social responsibility and responsible gambling

3.3 2.2 1.7 1.7 0.6 0.8 0.9 0.4 0.4 0.3 1.0 0.7

Scale

22

[1] Latest annual reports revenue figures. Exchange rates used as of 31 Dec 2017 [2] Includes Proforma GVC FY17 and Proforma Ladbrokes Coral FY17 [3] The Stars Group completed its acquisition of the Sky Betting and Gaming Group on 10 July 2018 [4] Playtech completed its acquisition of Snaitech on 5 June2018

Full Y ull Year Net R Reve venue1

(£ in billions, last reported)

[2] [3]

The l larg rgest st online-led d spor

• rts-betti

tting and g d gam aming o

• perat

rator in the w worl rld

[4]

Truly g y global r reach ch

Geographic Diversification

Office Locations Globa bal pr prese sence – 22 22 offices a s across ss five c contine inent nts >20 >20 Licensed j jurisd sdictions Yes (Transitional) Yes Yes (Application)

• Expertise in operating in a wide range of markets
• Present in all of the world’s top ten markets (ex Asia) and top 3 positions in Europe’s largest online

markets – UK, Germany and Italy, and top 3 retail positions in UK, Italy, Spain, Belgium and Ireland

• >90% revenue from regulated, regulating and taxed markets
• Well placed to diversify further through further M&A but only in regulated markets
• Will consider retail where there is an opportunity to accelerate online growth
• Willing to enter new frontier regulated markets e.g. Latin America, Africa, ex-Soviet, as well as consider

“bolt-on” acquisitions in existing geographies

23

Sust stainable o

• rgan

anic g growth i in all k key online mar markets; s; mark market s share are g gai ains c s consolidating leadi ading p posi sitions

24

Country/ Br Bran and Br Bran ands Est stim imated Ma Market P Posit sitio ion1 YTD D NGR G Growth2

UK 3 +10% +16% +8% Germany 1 +28% Australia 3 +26% Italy 3 +30% +21% Brazil 1 +32% Partypoker 2 +41%

Organic Growth: Online

Driven B n By

Tec echnol

• logy

Br Bran ands Product uct Marke keting ng Peo eople

[1] Company estimates based on H1 2018 net revenue [2] YTD trading period: 1 Jan to 2 September 2018 vs 2017 in constant currency

M&A

Deal al Size ze

19 March 2013 1 February 2016 28 March 2018 30 July 2018

 €83.9m[1]  Delivered EBITDA well

ahead of expectations in Year 1

 Removed €50m of cost

and returned to profitability in <1 year

 247.5p  £1.1bn  Synergy delivery of

€125m

 Immediate return to

growth

 11 successful system

migrations

 467.0p  £3.1bn[2]  Synergies of £130m

announced

 New organisational

structures in place

 Immediate sharing of

best practice (Trading, CS, Marketing)

 918.0p  Initial combined contribution of

$200m

 Well placed for US opportunity

– access to 15 states and NJ mobile app already launched

 1,154.0p

Impac act Dat ate Targ arget / Par Partner

[1] William Hill contributed £36.5m towards balance sheet repair, restructuring and deal costs [2] Assumes CVR valued at zero

Pro Proven t tra rack re record o

• f deliv

liverin ing v valu lue f from s successful l large s e scale M e M&A

• Improving growth in acquired businesses
• Synergy delivery
• Multiple system migrations
• Brand revitalisation
• Successful integration of people and cultures
• Retaining top talent from acquired businesses

Expertise in:

Deliv liverin ing Val alue

(share p price at d date)

25

26

M&A: U.S. JV with MGM

• 50/50 joint venture
• 25 year exclusive agreement
• Market access agreements1 providing a path to 15

states with addressable population of ~90m2

• Access to 30 million M Life members
• Creates a leading platform with world class content,

state-of-the-art proprietary technology, and broad reach and distribution

• Ample liquidity with total upfront capital

commitments $100 million each

• Speed to market: playMGM mobile sports-betting

app launched in New Jersey on 22nd August 2018 Part arties c s contri ributing exclu lusiv ive access t ss to: Economics of existing and future U.S. sportsbooks (Retail & Online)



All U.S. gaming licenses, including all “skins” for sports betting and interactive gaming

 

GVC’s platform technology (including Stadium)



Premier, globally recognised gaming and sports brands

[1] Access to 8 states through agreement with Boyd Gaming whereby the JV has access to Boyd Gamings’ 3rd and 4th online skins [2] Population figure represents Eilers & Krejcik Gaming estimate of population above 21 years old

Creating g a leadi ading U U.S. s sport rts b s betting and d in interactive g gaming pla platform wi with wo world-class c ss content, s stat ate-of

• f-th

the-art rt p propri rietary ry technol

• log
• gy, a

and b broa

• ad di

distri ribution re reac ach

27

M&A: U.S. JV with MGM

30 Million

M L ife Me mb e rs

• Clear path to 15 states with total addressable population
• f ~90m1
• Leading combination is well positioned to attract additional

market access and other partners

• Estimated that the current illegal sports-betting market is

worth $150bn3 wagering per annum MGM Sports Betting ng Regul ulator

• ry Status

us

Nevada Fully regulated New Jersey Fully regulated Mississippi Fully regulated New York Passed law but not yet regulated Maryland Likely to pass law by 2019 Massachusetts Likely to pass law by 2019 Michigan Likely to pass law by 2019

Boyd yd2 Sports Betting ng Regul ulator

• ry Status

us

Pennsylvania Passed law but not yet regulated Ohio Likely to pass law by 2019 Illinois Likely to pass law by 2019 Missouri Likely to pass law by 2019 Kansas Likely to pass law by 2019 Iowa Likely to pass law by 2019 Indiana Legislative efforts anticipated 2019 Louisiana Legislative efforts anticipated 2019

Broad ad f footpri rint a and m d mark arketable customer b r base ase

[1] Population figure represents Eilers & Krejcik Gaming estimate of population above 21 years old [2] Access to 8 states through agreement with Boyd Gaming whereby the JV has access to Boyd Gaming’s 3rd and 4th online skins [3] American Gaming Association

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M&A Bolt-on: Crystalbet

• Acquisition of 51%

1% of Mars LLC (“Crystalbet”) for £36. 36.0m completed April 2018

• Agreement to acquire 49%

9% in 2021 (7x 2020 EBITDA – max total consideration £172.5m)

• Management retained all their equity
• Not a competitive auction – GVC seen as culturally

and operationally preferred buyer given track record of growing businesses

• Georgian online gaming market estimated1 to be worth

cGEL600m 600m ( (c£180m 80m)

• Crystalbet market share estimated1 at c24%

4%

• Number 1 in sports, peer-to-peer gaming1
• Impressive performance pre and post acquisition
• H1 GGR +102

102% in local currency

• 300+ new casino games added via GVC content deals
• More to come
• CRM
• Additional gaming content
• Poker
• Further product enhancements
• Investing in product and marketing for long-term sustainable

growth

104 104% 82% 82% 80% 80% Wag Wagers GG GGR NG NGR

Gr Growth H H1 1 18 v 18 vs H1 17 1 17

[1] Management estimates

A proven p part artner and e d enab abler f for e r entre repreneuri rial b busi sinesse sses The group p will c ll contin inue t to i invest i in bolt lt-on acquis isit itio ions i in existin ing a and n new t w territ itorie ies

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Technology

Powerf rful p propri rietary ry t technology p provides s opera rating l levera rage a and s d speed t to m mark arket Sig ignif ific icant Scal ale Flexib ible le Availa ilabilit ility Resou

• urce

Backe ked M&A E Enable bler

Processing (p.a.)

• >350m sports bets
• >9bn casino spins
• >1bn poker hands

played Currently supports:

• 100+ front-ends
• 27 languages
• 25 currencies
• 1000+ IT staff
• Core locations in

Hyderabad and Vienna

• Rapid deployment

& synergy creation

• 99.95% service

availability

• 70+ changes

deployed per day

Lead ading b bran rands s in l leadi ading mar markets

Brands

• Well established brands act as barriers to entry in more mature markets
• Multiple brands in one market provide a cross sell opportunity especially to lapsing customers
• Omni channel sports brands drive faster online growth through cost effective retail acquisition
• Marketing driven by advanced CRM capability
• Track record of revitalising underperforming brands e.g. bwin and partypoker, focus is now on Ladbrokes

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Product development

Pro Product de development re remains a a pri riori rity t throughout i integration Sports ts Gami aming

• Improved UX - Increased data integrations

and improved post bet experience

• Combination bet BetBuilder
• Enhanced customer profiling
• Mobile wrapper launch
• 40% reduction in mobile load time (L)
• Extended Cash Out markets (L)
• Improved UX - horse racing & greyhound

redesign (L&C)

• Build-a-bet enhancements (C)
• New concept game - Coral Millions
• New content providers in .IT, .ES and .BE
• 7 new in-house games launched
• New table & lobby layouts (poker)
• Multi region/shared liquidity (poker)
• Integration of Cozy
• Live casino native app (L)
• Improved speed, stability & SEO (L)
• New concept game - Pick a Box (C)
• New desktop (C)
• Improved UX Bingo page redesign (G)
• New reward games (G)
• New RG tools
• Improved App tracking capabilities
• Optimised sign-up/improved registration
• Fixed password recovery journey = 11k

additional users

• GDPR
• New loyalty program
• Unified navigation – improved loading time
• Improved on-boarding journey
• GDPR

Platfor

• rm/Cor
• re

GVC B Bran rands ds Ladb adbrokes C s Coral ral B Bran ands

Brand revitalisation continued with a multi-format campaign featuring Maradona

Marketing

Brand relaunched with “The smart money’s on Coral” campaign featuring Danny Mcbride Creativity a and nd t techno hnology d driving ng e engagement nt

• Track record of innovative marking and brand revitalisation
• Acquisition of Ladbrokes Coral enhances CRM capability
• Major brand campaigns launched for the World Cup:

Mass market campaign “Bettors of Britain”

• 143k FTDs
• >0.7m actives
• 98k FTDs
• >0.4m actives
• 121k FTDs
• >0.4m actives

Add Image Add Image Add Image

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During World Cup:

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Corporate Social Responsibility

Corp rporat rate

• New CSR Board committee established
• New position of Head of CSR created and filled

Respo ponsib ible le G Gamin ing

• Commitment to increase investment in RG initiatives beyond 0.1% of UK GGR
• £0.5m extra commitment to GamCare Youth Outreach Programme
• New RG training and education programme to be rolled out across all areas of the

business

• GVC to become a Platinum Member of (US) National Council on Problem

Gambling + providing funding for proposed National Survey of Gambling Emplo ployer Communi unities

• Established “Horizon” our flagship Women in Leadership programme
• Improving our recruitment processes to remove any potential for diversity bias
• Dedicated Safety Management Centre established for UK retail
• Delivering on our 3 year plan continuing to drive our diversity and inclusion

agenda

• Ladbrokes Coral Trust funded >£8m to nearly 1,000 local charities/good causes

since launch

• £100,000 donation to Bobby Moore Trust following World Cup campaign
• Expansion of staff volunteering programme
• Greater focus and coordination, together with increased funding the cornerstones
• f new communities strategy

CSR s strat rategy w will r reflect G Group’s p s posi sition a as i indu dust stry ry l leade ader

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Current Trading

Tradin ing in t the p perio iod 1 1 July 2 2018 018 t to 2 2 Sept ptember 2 2018 0181,

1,2 was s

as strong

• Group NGR +14% (cc +14%) buoyed by the final two weeks of the World Cup
• Online NGR +30% (cc +31%):
• Sports brands NGR +34% (cc +35%)
• Sports gross win margin+0.7pp
• Strong wagering +22% (cc +25%)
• Crystalbet contributed 5pp of growth
• Games brands NGR +17% (cc +16%)
• European Retail NGR +26% (cc +25%)
• UK Retail like-for-like NGR -4% (OTC sports margin -1.1pp)

[1] Proforma basis [2] Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2018 exchange rates

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Summary

• Strong financial and operational performance with market share gains in all main

territories

• Integration progressing well
• MGM joint-venture leaves us very well placed for US sport betting market
• Sustainable growth enabled by:
• Proprietary technology
• Portfolio of leading brands
• Relentless product development
• Innovative marketing and advanced CRM
• Leading talent
• Dividend growth of 10%
• Strong current trading; on-track for the full year

Q&A &A

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