Preliminary Results for the Year Ended 30 June 2016 Chief Executive Agenda

The Rank Group Plc Preliminary results for the year ended 30 June 2016 Chief Executive Agenda

Introduction Henry Birch, Chief Executive Financial performance Clive Jennings, Finance Director

Operational performance and Strategic Outlook Henry Birch, Chief Executive

Q&A Summary

 Like-for-like revenue growth across all brands and channels  Digital revenues up 11%  Mecca retail in LFL revenue growth  EBITDA up 2%  Launch of new digital platform in Q3  Weaker Q4 across retail businesses  Investment in building blocks for future growth  EPS growth of 5% and 16% growth in dividend Finance Director Financial headlines

2015/16 2014/15 % Gross revenue(1) £753.0m £738.3m 2% Reported operating profit(2) £82.4m £84.0m (2)% Operating profit before RGD(2) £94.0m £90.6m 4% EBITDA(2) £128.2m £126.3m 2% Net debt(3) £(41.2)m £(52.0)m 22% Adjusted earnings per share(2) 15.4p 14.6p 5% Final dividend per share 4.70p 4.00p 18%

• Solid performance, with like-for-like revenue growth across all brands and channels • Operating profit up 4% excluding the impact of Remote Gaming Duty • Strong operating cash generation, net debt reduced by 22% • Final dividend up 18%

(1) before adjustment for customer incentives (2) before exceptional items (3) position at 30 June 2016 Revenue & operating profit

Revenue(4) Operating profit (5) £m 2015/16 2014/15 2015/16 2014/15 Grosvenor Casinos 438.6 423.4 66.2 66.5 Mecca 287.7 289.6 41.5 43.0 Enracha 26.7 25.3 3.6 2.6 Central costs (28.9) (28.1) Total continuing 753.0 738.3 82.4 84.0

• Grosvenor Casinos continued to deliver solid revenue growth, up 4% • Mecca venues in like-for-like revenue growth • Enracha continues to improve • Digital revenues up 11% • Unexpectedly weak Q4 casino venues performance – but in line with market

(4) before adjustment for customer incentives (5) before exceptional items Operating profit bridge +5.4 (8.3)

+11.4 £m Improvement (1.4) in digital (3.5) Increase in (4.8) customer National incentives and Living (0.4) Wage 84.0 rebates Increase in Increase in depreciation central costs 82.4 Cost of Improvement RGD 79.2 in venues

2014/15 Pre RGD 2015/16 operating H1 2014/15 operating profit profit operating profit

• Overall profit growth of 4% excluding the impact of RGD • Solid underlying performance across retail despite tough Q4 Statutory profit and loss

£m 2015/16 2014/15 Profit from continuing operations 82.4 84.0 Net interest payable (6.2) (10.3) Profit before taxation and exceptional 76.2 73.7 items Exceptional items 9.3 0.8 Profit before taxation 85.5 74.5 Taxation (14.4) (15.5) Discontinued operations 3.6 15.8 Profit for the period 74.7 74.8

• Reduction in interest cost following debt reduction and negotiation of new bank facilities • Effective tax rate: 22.5% (FY 2016/17 forecast 20%-22%) • Cash tax rate on adjusted profit: 18.3% (2016/17 forecast 17%-19%) Exceptional items

£m 2015/16 2014/15 Impairments & property leases 1.9 0.4 Disposal of freehold property 10.0 - Closure of venues (2.6) 1.7 Net finance costs - (1.3) Total exceptionals pre tax 9.3 0.8 Taxation 0.4 1.3 Discontinued operations 3.6 15.8 Total exceptionals post tax 13.3 17.9 • Two ex bingo clubs sold at a profit • Net impairment / lease credit from exiting closed sites plus improved trading at an Enracha club • Closed or committed to close seven sites – casino licences being re-deployed • Discontinued comprises a cash refund from the successful resolution of a transfer pricing dispute offset by book loss on selling captive insurance company Cash flow and net debt

£m 2015/16 2014/15 Cash inflow from continuing operations 116.4 154.5 Net cash payments in respect of provisions and exceptional items (6.2) (7.9) Cash generated from continuing operations 110.2 146.6 Capital expenditure (52.7) (31.9) Fixed asset disposals (inc subsidiaries) 12.1 1.5 Net interest and tax (12.0) (9.7) Payment of disputed tax (21.4) - Dividends paid (22.7) (18.6) Convertible loan payment (1.1) (2.4) Other(6) (0.7) (1.4) Cash inflow 11.7 84.1 Opening net debt (52.9) (137.0) Closing net debt (41.2) (52.9)

(6) includes FX translation Capital investment

£m 2015/16 2014/15 Grosvenor Casinos 25.1 15.9 Mecca 10.6 9.5 Enracha 3.4 0.9 Central 13.6 5.6 Total 52.7 31.9

• Significant £10m investment in casino gaming (slots and electronic roulette) • Extension and refurbishment of Luton casino to accommodate additional product under the 2005 Act licence completed • Refurbishment of The Park Tower casino in London • £6.4m on new digital platform within central total • Purchase of a freehold in Enracha • 2016/17 guidance in £60-70m range Financial strength

 Low net debt of £41.2m with conservative leverage of c.0.3 times  Strong operating cash flow with EBITDA of £128.2m  Continued deleverage expected despite a planned increase in capital expenditure  Undrawn £90m revolving credit facilities  Plans in place to mitigate significant element of national living wage impact Dividend

6.5

5.6 6.5p

4.5 5.6p 4.1 3.6 4.5p 4.1p 3.6p

2011/12 2012/13 2013/14 2014/15 2015/16

• 16% increase in dividend in last 12 months • 16% compound growth rate over the last five years Chief Executive Operational review: Mecca Venues

Revenue(7) Operating profit(8)  2% like-for-like revenue growth £m 2015/16 2014/15 2015/16 2014/15  Operating profit up 14% Venues 221.5 224.4 32.9 28.9

 Annual active customers of 987k: KPIs 3% comparable increase vs last year Visits (000s) 11,550 12,035 Spend per visit (£) 19.18 18.65  Spend per visit continues to be driven by (7) before adjustment for customer incentives product and service improvement (8) before exceptional items  Record Net Promoter Score (NPS) at 69% - highest ever and up 22ppts in two years  Record levels of employee engagement Operational review: Mecca Venues

Comparable Venue Income  Five quarters of consecutive comparable 5% revenue growth for retail bingo. Something not 4% achieved since 2007 smoking ban 3% 2%  Admissions trend overall very positive but 1% Q2 15 Q3 15 0% marred by weak Q4 Q1 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 -1%  P1 back on track -2%  Marketing budget reduced by £3.7m but Comparable Venue Visits customer numbers increased 2%

1% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q4 16 0% Q2 16 Q3 16 -1%

-2%

-3%

-4%

-5% Operational review: Mecca Venues

 Like-for-like machine revenues up 3%: server based slots from Scientific Games/Playtech with TiTo functionality  Investment in Mecca Max units in prior year driving penetration: 34% of customers using Maxes up from 31% year before  Benefits continue from menu enhancements: F&B spend per visit up 6%  £2.2m on venue refurbishments to improve club standards, contributing to press and public perception that “bingo’s changing”  Three clubs closed: Grays (lease surrender), Breightmet (end of lease) and Hornchurch (sold)  Strong cost control – overheads reduced year-on-year Operational review: Mecca Digital

Revenue(9) Operating profit  Digital growth continues in a competitive market £m 2015/16 2014/15 2015/16 2014/15  Digital revenue up 2% Digital 66.2 65.2 8.6 14.1

 First-time depositing customers up 21% KPIs Visits (000s) 5,385 5,213  Disappointing H2: Spend per visit (£) 12.29 12.51 – Stability issues post Bede migration (9) before adjustment for customer incentives – Removal of some higher value customers following enhanced customer due diligence and introduction of social responsibility tools  Non VIP revenues up 8% in the year; VIP revenues down 8% in the year Operational review: Mecca Digital

 New management led by Leon Thomas, former MD of Tombola, Caesars Interactive. New head of marketing  Expanded VIP team  Proprietary content starting to drive volumes and differentiation: – Emoji Bingo and Burst – Slots eg Victoria’s Sponge  HTML5 version just launched  TV campaign launching in Q2  Clear roadmap adding content and functionality over the next 6 months, including new product verticals, retention games and a refer-a-friend programme Digital Platform

 Launch of new Bede platform on time and in-budget on both Mecca and Grosvenor in Q3  New platform provides: – modern open architecture, allowing rapid release of new content and functionality – cloud-based infrastructure – cost effective and scalable – significantly improved bonusing capabilities – enhanced player management and communications – advanced back-end analytics  BUT significant stability issues have affected Mecca: – 25 critical customer facing incidents in March and April  As a result, much of planned content and functionality has yet to be launched  The next 6 months will see: – significant new content from multiple providers (including Net Ent and NYX) – rich push notifications & app inbox messaging driven by new campaign management toolset (Silverpop/Bede) – bonus improvements, including free spins and tournaments – improved live casino product via new Malta studio – Mecca lobby and room overhaul – Significant IOS App updates Operational review: Grosvenor Casinos Venues

Revenue(10) Operating profit(11) Solid venues performance £m 2015/16 2014/15 2015/16 2014/15  2% revenue growth London 150.3 148.3 31.7 34.0 Provinces 243.7 239.6 27.2 28.6  Operating profit down 4% Belgium 14.1 13.2 2.0 0.8 – Player rebates and loyalty scheme costs Venues total 408.1 401.1 60.9 63.4 – Increased labour costs: NLW from 1 January KPIs  Disappointing Q4 Visits (000s) 8,159 8,233 – Profit 11% ahead of last year at end of Q3 Spend per visit (£) 50.02 48.72 – (10) before adjustment for customer incentives Weakness in admissions and handle, (11) before exceptional items. compounded by reduction in margin – Greene King Leisure Tracker shows June was the third consecutive month in which non food/drink leisure spending declined year-on- year with spend down 10% in the month Operational review: Grosvenor Casinos Venues

Product development  £10m investment in next generation of electronic gaming starting to drive slots revenues: up 9%.  Introduction of an estate-wide blackjack progressive jackpot (‘Ace King Suited’)  Introduction of improved electronic roulette (‘Get Set Roulette’) in seven clubs offering enhanced customer experience  Continuing development of our food & beverage offer: move from formal dining to more flexible offer  Trialling of ‘partial open‘ and ‘full open door’ Get Set Roulette  Record numbers for ‘Goliath’, the UK’s largest poker tournament: over 9,000 competitors Operational review: Grosvenor Casinos Venues

Venue development  Successful roll out of new Neon casino management system from IGS  Significant extension and refurbishment of Luton casino, utilising a new 2005 Act licence and 40 additional slots  Second licences put alongside existing casinos, increasing slot provision Grosvenor Luton  15 ‘sparkles’ light refurbishments  Refurbishment of The Park Tower (London) completed in Q4  Net promoter score up 17ppt year-on-year Operational review: Grosvenor Casinos Digital

Revenue(12) Operating profit Continued strong digital performance £m 2015/16 2014/15 2015/16 2014/15  37% revenue growth Digital 30.5 22.3 5.3 3.1

 71% growth in operating profit even with KPIs Remote Gaming Duty Visits (000s) 839 667 Spend per visit (£) 36.35 33.43  Mobile now dominant over desktop (12) before adjustment for customer incentives  Improved functionality, especially bonusing and promotions from Bede platform  Soft launch of new sports and poker offer  Live casino offer (Evolution): imminent improvement with move to larger studio in Malta and a new native app coming in Q3 Enracha

 Strong trends with growth in admissions and £m 2015/16 2014/15 revenue continuing: Revenue (£m) 26.7 25.3 – Euro revenues up 7% Revenue (euros m) 35.6 33.4 (13) – Visits up 10% Operating profit (£m) 3.6 2.6

– Operating profit up 38% KPIs Venues  Ownership of five freeholds following Visits (000s) 2,020 1,844 purchase of Continental freehold in Barcelona Spend per visit (£) 13.22 13.72 (13) before exceptional items  Digital service soft launched in June  Overall economic trends positive 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 1. Creating a compelling multi-channel offer

My Mecca app Activity on 2015/16 Priorities for 2016/17  ‘My Mecca’ services app  Launch of new bingo brand launched across both digital and retail channels  Development of new cross- channel bingo brand  Launch of single account and wallet in Grosvenor Casinos  Significant progress towards single account and wallet  Further development of Mecca and Grosvenor services apps  New poker offer launched Neon casino management  Simultaneous launch of further  New digital platform in place content across retail, online  New casino management and mobile system (Neon) in place 2. Building digital capability

Activity on 2015/16 Priorities for 2016/17  New digital platform in place  Full launch of sports book  Soft launch of new digital  Improvements to new poker sports book offer  Launch of new poker product  New slots content from multiple providers  New proprietary and exclusive content launched across both  Successful live casino offer Mecca (Emoji Bingo, Victoria’s refresh following move to Sponge) and Grosvenor larger facilities in July 2016 Casinos (Reel King Potty)  Launch of new digital Mecca  Soft launch of enracha.es VIP site  Full launch of enracha.es  Launch of new HTML5 version of Mecca 3. Developing our venues

Activity on 2015/16 Priorities for 2016/17  £4.3m invested in a refurbishment and  Opening of new concept extension of Grosvenor Luton, bingo venues utilisation of a new 2005 Act licence  Refurbishment of our Leeds  Refurbishment of The Park Tower and Nottingham casinos completed  Further refurbishments of  Second casino licences added eight Mecca venues alongside existing casinos in Coventry, Grosvenor Park Tower  Seven further ‘sparkles’ Portsmouth and Blackpool refurbishments in Grosvenor  Refurbishment of seven Mecca venues  Further roll out of ‘Partial’  ‘Partial‘ and ‘Full open door’ policy and ‘Full open door’ policy in introduced in Grosvenor Grosvenor  15 ‘sparkles’ refurbishments of Grosvenor venues 4. Investing in brands and marketing

Activity on 2015/16 Priorities for 2016/17  Appointment of new  Launch of new customer contact Grosvenor marketing director, centre in Sheffield Jo Blundell (former MD of  Launch of data platform, giving TBWA and marketing director single customer view and real- of McDonalds) time analytics across all channels  Creation and development of  Investment into VIP teams across a new central, cross- brand all brands CRM and analytics team  Launch of new retail bingo brand  Creation of new bingo brand  Launch additional digital brands 5. Using technology to drive efficiency and improve customer experience

Activity on 2015/16 Priorities for 2016/17  Rollout of new casino management system, Neon  Full integration of new casino loyalty system with Neon  Launch of ‘Ace King Suited’ progressive jackpot across Grosvenor  Additional Mecca Max units rolled  Digital membership trial in Mecca out  Investment into new slots and electronic roulette in Grosvenor  Launch of new F&B ordering facility  “Get Set Roulette” launched in seven casinos, offering an on Mecca app and Max enhanced customer experience  Additional new slots and electronic  Introduction of server-based games and TiTo into Mecca roulette machines in Grosvenor  Investment in bingo cash line systems to deal with the  Further roll-out of ‘Get Set Roulette’ introduction of the new £1 coin  New customer analytics platform for  Continued use of labour-planning software to reduce all channels employment costs in Grosvenor  New Grosvenor EPOS system  IGS table management system Key areas of focus for the year ahead

 Growth across all brands and channels  Mecca digital to show double-digit revenue growth  Successful launch of new retail bingo concept  Launch of new digital brands  Launch of a single account and wallet across digital and retail  Improved data analysis capability through new platform Summary

 Solid operating performance across all brands and channels  Clear delivery of building blocks for growth  Launch of new digital platform  Strong balance sheet with net debt of £41m  18% growth in final dividend, ahead of EPS growth, showing continued confidence in our future  Clear strategy for sustainable, long term growth  Trading in last seven weeks in line with expectations

Group datasheet

FY 2015/16 H1 2015/16 FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 Revenue (£m) 753.0 374.2 738.3 361.7 707.7 352.4 - YOY growth 2% 3% 4% 3% 13% 16% Operating profit (£m) 82.4 40.4 84.0 40.8 72.4 32.7 - YOY growth (2)% (1)% 16% 25% 4% (14)% Operating margin 10.9% 10.8% 11.4% 11.3% 10.2% 9.3% EBITDA (£m) 128.2 62.7 126.3 62.1 116.0 54.2 Capex (£m) 52.7 26.1 31.9 15.8 44.3 29.7 Adjusted EPS (p) 15.4 7.4 14.6 7.1 12.4 5.3 Dividend (p) 6.50 1.80 5.60 1.60 4.50 1.35 Grosvenor Casinos Venues datasheet

FY 2015/16 H1 2015/16 FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 Casino licences: London 9 9 9 9 9 9 Provinces 56 58 56 56 54 54 Belgium 2 2 2 2 2 2 Total 67 69 67 67 65 65 Non-trading licences 12 10 12 12 13 13 Revenue (£m) 408.1 205.1 401.1 195.7 377.7 188.4 Operating profit (£m) 60.9 30.9 63.4 29.1 57.7 29.1 Operating margin 14.9% 15.1% 15.8% 14.9% 15.3% 15.4% EBITDA (£m) 85.9 43.0 87.1 41.2 79.8 39.7 Customers MAT (000s)(1) 1,557 n/a 1,743 1,743 1,721 1,713 Visits (000s) 8,159 4,194 8,233 4,147 8,139 4,082 Spend per visit (£) 50.02 48.90 48.72 47.19 46.41 46.15 Electronic gaming (UK only) B1 machines 1,289 1,304 1,246 1,220 1,194 1,167 B2 machines - - - - - 18 B3/C/D machines 78 38 79 88 80 104 Electronic casino terminals 1,763 1,758 1,770 1,759 1,732 1,639

(1) Active customers on a Moving Annual Total basis, excluding Belgium; following the introduction of ‘full’ and ‘partial open door’ venues customers only includes registered customers Grosvenor Casinos Venues - London datasheet

FY 2015/16 H1 2015/16 FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 Revenue (£m) 150.3 75.2 148.3 71.2 131.5 65.5 Operating profit (£m) 31.7 16.0 34.0 16.3 27.9 13.9 Operating margin 21.1% 21.3% 22.9% 22.9% 21.2% 21.2%

Visits (000s) 1,482 772 1,468 757 1,452 729 Spend per visit (£) 101.42 97.41 101.02 94.06 90.56 89.85 Grosvenor Casinos Digital datasheet

FY 2015/16 H1 2015/16 FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 Revenue (£m) 30.5 13.9 22.3 9.9 13.5 5.8 Operating profit / (loss) (£m) 5.3 2.4 3.1 1.9 (0.9) (0.9) Operating margin 17.4% 17.3% 13.9% 19.2% - - EBITDA (£m) 7.4 3.4 4.6 2.6 1.1 0.1

Customers MAT (000s) 101 126 114 54 50 42 Visits (000s) 839 406 667 270 440 200 Spend per visit (£) 36.35 34.24 33.43 36.67 30.68 29.00 Mecca Venues datasheet

FY 2015/16 H1 2015/16 FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 Venues 87 87 90 93 96 97 Revenue (£m) 221.5 109.8 224.4 111.8 229.3 113.7 Operating profit (£m) 32.9 14.3 28.9 14.5 21.1 7.1 Operating margin 14.9% 13.0% 12.9% 13.0% 9.2% 6.2% EBITDA (£m) 45.5 20.8 41.6 20.8 34.9 14.3 Customers MAT (000s) 987 973 961 938 937 940 Visits (000s) 11,550 5,756 12,035 5,993 12,607 6,209 Spend per visit (£) 19.18 19.08 18.65 18.66 18.19 18.31

Electronic gaming B3/B4 machines(2) 1,799 1,569 1,578 1,749 1,762 1,841 C/D machines 3,158 3,340 3,692 3,342 3,407 3,423 Electronic bingo terminals 11,494 11,494 11,273 8,856 8,481 8,170

(2) includes B3 machines located in adult gaming centres, operated by Rank and located adjacent to Mecca bingo venues Mecca Digital datasheet

FY 2015/16 H1 2015/16 FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 Revenue (£m) 66.2 33.2 65.2 31.5 58.9 29.8 Operating profit (£m) 8.6 5.6 14.1 8.4 15.9 6.8 Operating margin 13.0% 16.9% 21.6% 26.7% 27.0% 22.8% EBITDA (£m) 11.4 6.7 15.6 9.1 18.3 7.9

Customers MAT (000s) 303 267 267 243 229 234 Visits (000s) 5,385 2,645 5,213 2,569 4,822 2,323 Spend per visit (£) 12.29 12.55 12.51 12.26 12.21 12.83 Enracha datasheet

FY 2015/16 H1 2015/16 FY 2014/15 H1 2014/15 FY 2013/14 H1 2013/14 Venues 9 9 9 9 10 11 Revenue (£m) 26.7 12.2 25.3 12.8 28.3 14.7 Operating profit (£m) 3.6 1.4 2.6 0.9 0.8 0.3 Operating margin 13.5% 11.5% 10.3% 7.0% 2.8% 2.0% EBITDA (£m) 5.1 2.2 4.1 1.7 2.9 1.3 Customers MAT (000s) 274 260 269 250 260 278 Visits (000s) 2,020 978 1,844 903 1,945 989 Spend per visit (£) 13.22 12.47 13.72 14.17 14.55 14.86 UK casinos market supply

Casino Total Venues Licences

Operator

Grosvenor Casinos 56 77(3)

Genting 41 56

Caesers Entertainment UK 9 11 A&S Leisure 6 6 Double Diamond 6 7 Aspers/Aspinall’s 7 9(3) Club 36 3 3 Clockfair 2 2 Guoco 1 1 Others 12 26 Total 143 198

Source: National Casino Industry Forum (3) includes 2005 Act casino licences UK bingo clubs market supply

Clubs(4) Operator Gala Bingo 130 Mecca 87 Top Ten Bingo 15 Carlton Clubs 13 Castle 11 Club 3000 12 Beacon 9 Others 86 Total 363

Source: Bingo Association (4) excludes the conversion of adult gaming centres to bingo clubs