2018 Full Year Results 5 March 2019 Disclaimer NOT FOR - - PowerPoint PPT Presentation

2018 Full Year Results

5 March 2019

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NOT FOR PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT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, and future events and circumstances can cause results and

developments to differ materially from those anticipated. 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

• r 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.

3

Contents

Introduction Kenneth Alexander Financial Review Rob Wood Operational Update Kenneth Alexander Summary Kenneth Alexander

4

Introduction

• A global online-led business of scale – licensed in over 20 countries
• Highly effective operating model – proprietary technology and local execution are

distinguishing features

• Underlying business is highly cash generative, operating in high growth markets within a

high growth sector

• Well-placed for regulatory changes – capitalising on opportunities whilst scale enables

headwinds to be absorbed

• Committed to leading the industry on safer gambling
• Very strong track record of delivery

5

2018 Overview

[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 January to 24 February 2019 vs same period 2018

• Strong financial and operational performance
• Group NGR1 +9% (cc2 +9%) with very strong growth in Online1 +19% (cc2 +21%)
• Underlying EBITDA1,3 +13% and underlying operating profit1,3 +19%
• Online market share gains in all key territories
• Integration progressing well; Playtech agreement signed - giving greater flexibility
• US: business well placed for growth; appointment of key roles
• Total 2018 dividend payment of 32.0p (+7%)
• Positive current trading1,4 (Group NGR +11%, Online NGR +22%)

Rob Wood

Chief Financial Officer

6

7

Financials: Group P&L

• Group Proforma NGR +9%

+9%

• Online +19%

19%

• UK Retail -5%

5%

• Euro Retail +16%

6%

• Group Proforma underlying

EBITDA +13% 13%

• Adjusted fully diluted EPS

76.3p 3p ( (+75% 75%)

• Total 2018 dividend of 32.

2.0p p (+7% +7%)

• Net debt at 31 Dec 2018

£1,896 896.6m 6m

• 2.5x

5x Net debt/LTM EBITDA

[1] 2018 and 2017 reported results reflect the acquisition of the Ladbrokes Coral Group plc on 28 March 2018 [2] The Group’s proforma results are presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. The results of Crystalbet and Neds are included from the date of acquisition (11 April 2018 and 28 November 2018 respectively) 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] Continuing EPS adjusted for the impact of separately disclosed items, FX movements on financial indebtedness and gains on derivative financial instruments [6] Proforma basis

Proforma u underly lyin ing E EBITDA g growt wth o

• f 13%

3%

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 2,979.5 815.9 265% 3,571.4 3,288.1 9% 9% Revenue nue 2,935.2 789.9 272% 3,523.6 3,247.6 8% 9% Gross p profit 2,004.2 575.3 248% 2,404.4 2,256.3 7% Contr tributi tion 1,598.8 400.7 299% 1,939.8 1,872.8 4% Underlying E EBI BITDA4 640.8 211.3 203% 755.3 666.5 13% Ope perating P Profit4 520.8 169.2 208% 610.1 514.1 19% Me Memo:

2018 2018 2017 2017

Number of shares (m)

581.9 303.7

Diluted EPS

(12.2) (11.6)

Adjusted diluted EPS 5

76.3 43.6

Dividend / share (p)

32.0 29.8

Net Debt (£m)

(1,896.6) n/a

Net Debt / EBITDA 6

2.5x n/a

Reported1 Proforma2 Year e ended 31 D 31 Decembe ber

£666.5m £650.6m £755.3m 94.9 16.8 3.4 0.1 (15.9) (5.1) (5.4) £500m £550m £600m £650m £700m £750m £800m FY17 EBITDA Regulatory adjustments FY17 EBITDA Rebased Online UK Retail European Retail Other Corporate Foreign exchange FY18 EBITDA

8

Financials: Proforma Underlying EBITDA Bridge

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

Online UK POCT - £9.8m Horse Race Levy - £2.5m Aus POCT - £3.6m

Strong g growth i in n Onl nline a and nd Eur European R Retail

[1] Based on total World Cup gross profit post substitution less marketing costs

9

Online

Sport rts b s bran ands N s NGR +20% 20% ( (cc +22 22%)

• GVC brands +27% (cc +29%)
• Ladbrokes.com +12%
• Coral.co.uk +16%
• Ladbrokes.com.au +11% (cc +17%)
• Eurobet.it +20% (cc +17%)

Game ames b brands ds N NGR +16% 16% ( (cc + +16 16%)

• Partypoker +40% (cc +42%)
• Galabingo.com +11%

Total N l NGR GR +19 19% ( (cc + +21% 21%)

• Continued momentum despite

tough Q4 comps Contribu ibutio ion m margin in –2.2pp 2pp

• UK & Aus POCT -0.8pp
• Marketing investment -0.6pp
• Kalixa4 -0.5pp
• Growth in higher tax regions -0.3pp

Opera rating c cost sts 6% hi % highe her

• IT investment and Crystalbet

partially offset by LCL merger synergies Depre reciation & & amo mort rtisa sation 21% h % highe her

• Capitalised LCL integration costs

[1] The Group’s proforma results are presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. The results of Crystalbet and Neds are included from the date of acquisition (11 April 2018 and 28 November 2018 respectively) [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] Kalixa costs previously recorded in overheads. Post disposal 31 May 2017 equivalent 3rd party costs are now recorded in contribution

Very s stro rong g growth w with m mark arket s shar are g gai ains i s in all k key t terri ritori ries

2018 2018 2017 2017 Cha hang nge CC CC2 £m £m £m £m % % Spo ports br brands: s spo ports w wagers 10, 10,182. 182.1 9, 9,035. 035.5 13% 13% 14% 14% Spo ports br brands: s spo ports m margin 10. 10.5% 5% 10. 10.1% 1% 0. 0.4pp 4pp 0. 0.4pp 4pp Sports brands NGR 1,539.7 1,278.4 20% 22% Games brands NGR 351.4 304.0 16% 16% B2B NGR 24.0 20.4 18% 18% Tota tal N NGR 1, 1,915. 915.1 1, 1,602. 602.8 19% 19% 21% 21% VAT/GST (47.8) (40.5) (18%) (21%) Revenue nue 1, 1,867. 867.3 1, 1,562. 562.3 20% 20% 21% 21% Gross p profit 1, 1,265. 265.0 1, 1,083. 083.8 17% 17% Contr tributi tion 816. 816.4 717. 717.9 14% 14% Contribution Margin 42.6% 44.8% (2.2pp) Operating costs (330.7) (311.0) (6%) Underlying E EBI BITDA3 485. 485.7 406. 406.9 19% 19% Share based payments (2.8) (6.2) 55% Depreciation & amortisation (82.2) (67.9) (21%) Share of JV income 0.5 0.1 400% Ope perating P Profit3 401. 401.2 332. 332.9 21% 21% Year e ended 31 D 31 Decembe ber Proforma1

10

UK Retail

OTC w wag agers rs -8% ( % (LFL3–6% 6%)

• LFL trend in-line with long-term
• expectations. Positive impacts of full

ARC content and World Cup offset by wager-enhancing offers in H217 OTC m marg argin 17.9% 9% ( (-0.3pp) pp)

• Horse racing margin +0.4pp

4pp offset by lower football margin -1.8pp pp Ma Mach chines N NGR/ R/Re Revenue -1% ( % (LFL3

3 Flat)

t)

• New cabinets driving growth in H2

Contribu ibutio ion m margin in –0.3pp 3pp

• ARC content costs (profit share)

now included in COS Opera rating c cost sts 6% 6% lo lower

• Shop closures, strong cost control

and LC merger synergies Depre reciation & & amo mort rtisa sation 27% 27% l lowe wer

• Impairment of assets in 2017

No of shops at 31 Dec 2018 3,475 75 (2017: 3,567 67)

[1] The Group’s proforma results are presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. [2] Stated pre separately disclosed items [3] UK Retail numbers are quoted on a LFL basis. In FY18, there was an average of 3,524 shops in the estate, compared to an average of 3,618 in the prior year

Slow L LFL N NGR d decline o

• f 3

3% a and s d stro rong c cost st c contro rol r results i s in stab able E EBIT ITDA a and o d opera rating p profit

2018 2018 2017 2017 Cha hang nge £m £m £m £m % OTC w wagers 3, 3,084. 084.5 3, 3,344. 344.1 (8% (8%) OTC m margin 17. 17.9% 9% 18. 18.2% 2% (0. (0.3pp) 3pp) OTC NGR/Revenue 547.3 601.8 (9%) Machines NGR/Revenue 780.7 789.3 (1%) Total N NGR/Revenue nue 1, 1,328. 328.0 1, 1,391. 391.1 (5% (5%) Gross p profit 952. 952.2 1, 1,007. 007.4 (5% (5%) Contr tributi tion 948. 948.3 997. 997.6 (5% (5%) Contribution Margin 71.4% 71.7% (0.3pp) Operating costs (696.6) (741.0) 6% Underlying E EBI BITDA2 251. 251.7 256. 256.6 (2% (2%) Share based payments (0.3) (1.6) 81% Depreciation & amortisation (40.2) (55.2) 27% Share of JV income

• Ope

perating P Profit2 211. 211.2 199. 199.8 6% 6% Year e ended 31 D 31 Decembe ber Proforma1

Min inim imis ising d disruptio ion

• Business is ready for 1st April implementation
• Significant level of planning has been conducted and a clear response plan is in place

Expecting t to t tak ake mark arket s share are w with l leadi ading o

• ffer o

r on the h high s stre reet

• Investment in next generation machines, SSBTs, multi-channel offerings and EPOS
• Machines: new gaming product and new cabinets
• 6,800

00 new Equinox cabinets rolled out

• Over 40

0 slot games launched in 2018 with a further 30 30 planned in H1 2019

• SSBTs
• Investment in next generation units
• Market-leading offers and range of markets
• Multi-channel sign-ups
• Connect and Grid are a competitive advantage
• Best Price Guarantee driving penetration
• Ongoing focus on cost control – optimising central cost base to provide more efficient support
• Detailed modelling gives confidence in financial guidance

11

UK Retail – Post Triennial Plan

Tra ransition t to a a post £ £2 e est state al alre ready w well u unde derway – opport rtunity t to grow m mark arket s share re Transit itio ion p pla lans will d ll deliv liver a a retail e il estate t that i is right-si size zed, fit f for t the f future re, s support rting bran and a awareness a ss and o d online g gro rowt wth

12

European Retail

[1] The Group’s proforma results are presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 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

OTC w wag agers rs +11% 11% ( (cc + +9% 9%)

• Growth in Eurobet Italy football

wagers +13% 3%, estate growth in Belgium and World Cup benefit OTC m marg argin 17.7% 7% ( (+0. 0.6pp) pp)

• Increased football margin in Italy

+1.6p 6pp p and Belgium +2.0pp 0pp offset by lower horse racing margin Contribu ibutio ion m margin in -0.6pp pp

• Marketing investment in Italy and

World Cup marketing spend in Belgium Opera rating c cost sts 1% hi % highe her

• Acquisition of 26

26 shops in Belgium

• ffset by tight cost controls

Outle lets a at 31 D Dec 2 2018 018

• Eurobet Italy 851

51 (2017: 845 45)

• Ladbrokes Belgium 321

1 shops, 364 64

• utlets (2017: 299

99 shops, 244 44

• utlets)
• Ladbrokes ROI 141

41 (2017: 141 41) Strong ng r revenue nue gro rowth an and tight c cost st c contro rol driv ivin ing a a materia ial i l increase i in profitabilit ility

2018 2018 2017 2017 Cha hang nge CC CC2 £m £m £m £m % % OTC w wagers 1, 1,571. 571.4 1, 1,419. 419.7 11% 11% 9% 9% OTC m margin 17. 17.7% 7% 17. 17.1% 1% 0. 0.6pp 6pp 0. 0.6pp 6pp Sports NGR/Revenue 210.2 182.7 15% 13% Other OTC NGR/Revenue 66.0 55.8 18% 16% Machines NGR/Revenue 2.6 2.4 8% 6% Total N NGR/Revenue nue 278. 278.8 240. 240.9 16% 16% 14% 14% Gross p profit 145. 145.7 125. 125.1 16% 16% Contr tributi tion 138. 138.0 120. 120.8 14% 14% Contribution Margin 49.5% 50.1% (0.6pp) Operating costs (72.6) (72.2) (1%) Underlying E EBI BITDA3 65. 65.4 48. 48.6 35% 35% Share based payments (0.1) (0.1)

• Depreciation & amortisation

(18.3) (12.2) (50%) Share of JV income 2.6 2.1 24% Ope perating P Profit3 49. 49.6 38. 38.4 29% 29% Year e ended 31 D 31 Decembe ber Proforma1

13

Financials: Statutory P&L

Gro roup Pro Proforma u underl rlying E EBITDA +13% 13% Gro roup Pro Proforma O

• Op. p

pro rofit +19% 9%

• Reduced SBP charge reflects a

number of legacy GVC schemes vesting in 2017

• JV income increase driven by one-
• ff sale proceeds

Fina nanc nce c costs £86. 86.2m

• Increased as a result of the

interest on loans to finance Ladbrokes Coral acquisition and foreign exchange losses of £23. 23.4m Separ arat ately d disclosed i d items ms

• Amort. of acq. intangibles

£322. 2.5m 5m: primarily the acquisition

• f Ladbrokes Coral & bwin.party
• Greek tax £186.

6.8m 8m: Management’s estimate of the likely total for 2010-2017

• Other £55.

5.8m 8m c credit (slide 14) Tax ax £37. 37.5m

• Reflects an effective underlying

tax rate of 13%

[1] 2018 and 2017 reported results 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 presented as if the current Group, post the acquisition of Ladbrokes Coral Group plc, had existed since 1 Jan 2017. The results of Crystalbet and Neds are included from the date of acquisition (11 April 2018 and 28 November 2018 respectively) and the results of Kalixa are excluded from the date of disposal (31 May 2017)

2018 2018 2017 2017 Cha hang nge 2018 2018 2017 2017 Cha hang nge £m £m £m £m % £m £m £m £m % Underlying E EBI BITDA 640. 640.8 211. 211.3 203% 203% 755. 755.3 666. 666.5 13% 13% Share based payments (10.7) (15.5) 31% (11.7) (20.7) 43% Depreciation & Amort. (117.7) (26.7) (341%) (141.7) (137.0) (3%) Share of JV income 8.4 0.1 n/m 8.2 5.3 55% Ope perating P Profit 520. 520.8 169. 169.2 208% 208% 610. 610.1 514. 514.1 19% 19% Finance costs (86.2) (18.2) (374%) Profit b before t tax p pre separately ly d dis isclo losed ite tems 434. 434.6 151. 151.0 188% 188% Separately disclosed items: Amortisation of acquired intangibles (322.5) (106.5) (203%) Greek tax (186.8)

• n/m

Other 55.8 (67.1) 183% Loss b before t tax (18. (18.9) 9) (22. (22.6) 6) 16% 16% Tax (37.5) 1.7 n/m Loss a afte ter ta tax (56. (56.4) 4) (20. (20.9) 9) (170% (170%) Discontinued operations

• (14.0)

n/m Loss a afte ter ta tax (56. (56.4) 4) (34. (34.9) 9) (62% (62%) Year e ended 31 D 31 Decembe ber Reported1 Proforma2

14

Financials: Other Separately Disclosed Items

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

Impai airme rment l loss £41. 1.3m 3m

• Primarily impairment of UK Retail

assets following TR timing acceleration Movement nt i in fair v value ue o

• f c

conting ngent nt consi siderat ration £192 192.5m c credit it

• CVR credit partly offset by other

M&A contingent consideration Corp rporat rate t tran ansa saction c cost sts £64. 64.4m

• Acquisition of Ladbrokes Coral, US

JV and other smaller acquisitions Integra ration c cost sts £14. 14.5m

• Integration of Ladbrokes Coral

Legal a and o d onero rous c s contrac racts £9.2m 2m

• Including shop closure costs

Cash items

P& P&L £m £m Impairment loss (41.3) Movement in fair value of contingent consideration 192.5 Corporate transaction costs (64.4) Integration costs (14.5) Legal and onerous contract provisions (9.2) Other (7.3) Tota tal 55. 55.8 Year e ended 3 31 D December Reported1

1

2018 2018

15

Financials: Cashflow

Underlying ng W W/C: C: £24. 4.8m 8m o

• utflow
• As a result of only including nine

month trading of Ladbrokes Coral Cap apex/ x/In Invest

• st. i

in JVs: s: £214 214.2m o

• utflo

low

• Includes capex of £193.7m and

£19.2m investment in US JV Greek eek t tax: £108. 8.8m 8m o

• utflow

w Other S r SDI: I: £109 109.9m o

• utflo

low

• Primarily corporate transaction

costs of £74.7m, integration costs of £17.0m and legal and onerous contract provisions of £14.7m Acquis isit itio ions: £52 522. 2.6m o

• utflo

low

• Primarily acquisition of Ladbrokes

Coral Group, Crystalbet and Neds Net t mov’ v’t o t on debt: £701 701.1m i inflo low

• £1.4bn of debt raised less

associated fees of £32.0m and repayment of £660.0m of legacy Ladbrokes Coral debt Dividends p ds pai aid: £14 142. 2.7m o

• utflo

low

• Includes £138.8m of equity

dividends

[1] 2018 and 2017 reported results reflect the acquisition of the Ladbrokes Coral Group plc on 28 March 2018

2018 2018 2017 2017 £m £m £m £m Underlying E EBI BITDA 640. 640.8 211. 211.3 Underlying working capital (24.8) 14.1 Capital expenditure / Investment in JVs (214.2) (33.1) Finance lease repayments (1.1)

• Interest paid

(55.5) (37.0) Corporate taxes (43.5) (13.1) Free c cashflow 301. 301.7 142. 142.2 Greek tax (108.8)

• Other separately disclosed items

(109.9) (27.5) Disposal proceeds

• 27.1

Acquisitions (net of cash acquired) (522.6) (32.3) Net movement on debt & cost of debt issuance 701.1 (76.2) Equity issue 26.2 41.4 Dividends received from associates 9.4

• Dividends paid

(142.7) (120.0) Net c cashflo low / / ( (outflo low) 154. 154.4 (45. (45.3) 3) Foreign exchange (2.5) 2.5 Net c cash g generated / / ( (outflow) 151. 151.9 (42. (42.8) 8) Year e ended 3 31 D December Reported1

16

Financials: Net Debt

• Next material refinancing not due

until 2023

• Interest cost is c4

c4% of gross debt

• The Group raised borrowings of

£1,398 398.0m 0m to finance the acquisition

• f the Ladbrokes Coral Group
• Total accessible cash of £295.

5.5m 5m

• As at 31 December 2018:
• Accounting net debt of

£1,813 813.5m 5m

• Adjusted net debt of

£1,896 896.6m 6m

• Proforma EBITDA ratio of

2.5x 5x Debt st stack i is s flexible an and h has as a a good ma maturi rity p pro rofile

Pa Par Issu ssue c cost sts/ s/ Tota tal Va Value Pr Premium £m £m £m £m £m £m Bonds (500.0) (32.0) (532.0) Terms loans / RCF (1,727.8) 32.4 (1,695.4) Interest accrual (8.0)

• (8.0)

Gross c ss cash sh d debt (2, (2,235. 235.8) 8) 0. 0.4 (2, (2,235. 235.4) 4) Cash 421.9 Net d debt (1, (1,813. 813.5) 5) Cash held on behalf of customers (312.5) Fair value of swaps held against debt instruments 43.3 Short term investments / Deposits held 96.2 Balances held with PSP 89.9 Adjusted n net d debt (1, (1,896. 896.6) 6) Proforma und underlying ng E EBITDA 755. 755.3 Leverage r ratio 2. 2.5x 5x As a at 31 D 31 Decembe ber 2018 2018

17

FY19 Guidance

• Onlin

ine N NGR GR Double ble-dig igit it growth

• Online

ne c cont ntribut ution m n margin c40% 40% (after betting duty changes adverse impact of c2%)

• Online marketing / NGR

c23% 23%

• US G

Guidan dance NGR run-rate >$100m 00m1 Impact on Group EBIT c£0m 0m-£5m m loss2 No cash payments required from GVC into the JV2/3 in FY19

• Triennial

al I Impac act £135 135m adverse EBITDA impact in FY19 (ref Appendix)

• Syner

ergies es Uncha hang nged (ref Appendix) Playtech migration timing TBC

• Cashflow:

w:

• Capex

c£155 155m

• One-offs
• Integration payments

c£39m 9m

• Shop closure costs

c£10m 0m-£20m 0m

• Greek tax assessment

c£80m 0m

• Playtech legacy LC payment

£30m 0m

• Interest costs

c4% % on gross debt; c£85m m

• Tax rates

c13% 13% P&L, c c£60m 0m cash

• Lever

erage R e Ratio FY19 c3.0x 0x FY20 onwards expect to de-lever by at least 0.5x 5x each year

• Div

ivid idend Progressive – minimum 10% 0% growth per annum

[1] As at end of 2018 [2] Based on current regulation and assumption that Michigan regulates in 2019. 50% of the JV’s profit after tax is consolidated into the Group’s P&L below EBITDA but above EBIT [3] 2018 cash contributions from GVC of £19.2m

Kenneth Alexander

Chief Executive

18

19

GVC Recap

A tru ruly g global o

• perator i

r in a a high g gro rowth se sector 2004 04 2 2009 09 2 2012/ 12/13 13 201 016 6 2 201 018

IPO of Casino Club Acquisition of Betboo Acquisition of Sportingbet Acquisition of bwin.party Acquisition of Ladbrokes Coral and establishment

• f 50/50 JV with MGM

The he bus usiness no now: Largest online-led sports-betting and gaming business – a global operator

[1] Based on FY18 Proforma figures adjusted for the fully mature Triennial Review impact (ref Appendix) [2] Excluding corporate costs

2018 Proforma NGR1 2018 Proforma Underlying EBITDA1,2 Historic Reported EBITDA Growth

20

Strategic Overview

VISION STRATEGIC IMPERATIVES GOALS KEY ENABLERS VALUES

TO O BE T THE W WOR ORLD’S LARGEST SPORTS RTS-BETTIN ING A AND ND G GAMIN ING B BUS USIN INESS

SCALE GEOGRAPHIC DIVERSIFICATION

+

MARKET LEADING ORGANIC GROWTH M&A

+

TECH BRANDS PRODUCT MARKETING PEOPLE

+ + + +

A PASSI SSION F FOR D R DELIVERI RING S SUPERI RIOR C R CUST STOMER R EXPERIE IENCE AND A A TOT OTAL AL C COM OMMIT ITMENT T TO S SOC OCIAL IAL RESPONSIB IBIL ILIT ITY AND S SAFER G GAMB AMBLIN ING

21

Integration Update

• Cost synergies expected to be £130m

30m and capex synergies of at least £30m 0m

• Signed Playtech agreement provides flexibility for earlier migration of the Ladbrokes Coral online business to the GVC

technology platform

• Target organisation design developed across all functions; senior management in place
• Dedicated integration team executing and delivering plans

Integ egration w wel ell u under erway, d det etailed ed p plans in place a e and s syner ergies being d deliver ered ed Technol

• log
• gy

Key i integratio ion i init itia iativ ives u underwa way

• Advanced preparation for the Ladbrokes Coral Online migration to GVC in-house platform
• Games content integration between GVC and Ladbrokes Coral
• Technology procurement savings
• Group-wide ERP roll-out in design phase

Integra ration w work rkst streams Tradi ding

• bwin feed integration to Ladbrokes Coral helping enhance performance and stability

Cust stomer S r Serv rvice

• Customer journey and process optimisation
• Planning for CS tools harmonisation

Marketi ting

• Marketing technology consolidation (BI/CRM) in progress
• Procurement savings

Corp rporat rate

(HR, Finance, Facilities, etc.)

• Office consolidation
• Procurement savings
• Central teams combined

Consi sist stent m mark arket share re g gai ains c s consolidating l leadi ading p posi sitions

22

Country/ Br Bran and Br Bran ands Est stim imated Ma Market P Posit sitio ion1 FY18 NGR Gr Growth2

UK 4 +12% +16% +11% Germany 1 +23% Australia3 3 +17% Italy 2 +17% +11% Brazil 1 +33% Partypoker 2 +42%

Market Leading Global Online Growth

Driven B n By

Tec echnol

• logy

Br Bran ands Product uct Marke keting ng Peo eople

[1] Company estimates based on FY2018 net revenue [2] FY18 vs FY17 in constant currency [3] Ladbrokes.com.au and Neds.com.au FY18 NGR growth +21% in constant currency (including the results of Neds.com.au from the date of acquisition on 28 November 2018)

64% o % of Online ne r revenue nue i is ex-UK UK; T The G e Group i is pres esen ent i in all o

• f the w

e world’s t top 1 10 m market ets ( (ex-Asia) a)

23

Product

Pro Product de development re remains a a pri riori rity t throughout i integration New g gaming ng c content nt – focus o s on local alisa sation Imp mproved ‘ d ‘bet a and s stream am’ Po Poker r – imp mproved t d table l layout Con

• ntinued r

rol

• ll ou
• ut of
• f Build-a-be

bet across b ss bran ands Examples of product development: Coral a and L d Ladb adbrokes l s live c casi sino a apps Neds T Tool

• lbox
• x

Brands and Marketing

Well e estab ablish shed b bran rands a ds and a d adv dvanced mar marketing c cap apabilities a s are a a comp mpetitive a adv dvantage

• The Group operates 19 brands across multiple territories worldwide
• Our brands are well established, with high levels of customer recognition creating barriers to entry in

established markets

• Multi-channel sports brands (Eurobet, Ladbrokes, Coral) drive faster online growth through cost effective

customer recruitment in Retail

• The Group has powerful marketing capability at its disposal, including ROI driven analysis and real-time CRM

Exam ample: C Coral al r real-time C e CRM r rea eaches es over er 7 70% o

• f customer

ers b betting o

• n an e

even ent

24

Real o

• ppo

portunit ity l lies w wit ith t the full d l deplo ployment o

• f t

this c capa pabilit ility a across t the G Group, s startin ing i in 2019 019 a and s stepp ppin ing-up p p post plat atform rm m migrat ration

Bet placed During match Tailored notification New bet placed

2 2 -1

25

US Opportunity: Progress and Roadmap

[1] Ref Appendix [2] As at end of 2018 [3] Based on current regulation and assumption that Michigan regulates in 2019. 50% of the JV’s profit after tax is consolidated into the Group’s P&L below EBITDA but above EBIT [4] 2018 cash contributions from GVC of £19.2m

Comb mbination o

• f l

leadi ading b bran rands, ds, p propri rietary ry t technology a and m d mark arket a access w ss will c creat ate a a lead ading p posi sition i in the U US JV w with M MGM GM Progre ress t ss to date 2019 r roadm dmap ap Guidan ance

• 25 year agreement
• playMGM as the lead brand

driven by GVC technology platforms both Online & Retail

• Ample liquidity ($100m

00m capital commitment each)

• Broad market access (Currently

19 19 states1)

• CEO and CMO appointments
• New Jersey launch (with limited

marketing)

• Major sports league and market

access deals signed

• JV proforma2 current run rate of

>$100 $100m NGR

• Key operational management appointments (by Q2

Q2)

• Deployment of enhanced marketing capability

(Q1/Q2 Q2)

• Step-up in NJ marketing spend (from Q1

Q1, expected to be at the full run-rate by start of new US football season Q3 Q3)

• Migration to GVC technology platform (H2)
• 2019:
• NGR run-rate >$100m

00m2

• Impact on Group EBIT c£0m

0m-£5m 5m loss3

• No cash payments required from GVC into the

JV3/4

• 2020:
• Dependent on timing and format of regulation

26

Regulation Update

Unit nited S States

• 8 states have now

legalised sports-betting

• Numerous states on

the road to regulation Aus ustralia lia POCT implemented 1/1/2019 (1/7/17 in SA; 1/10/18 in Queensland) Sweden en Licences issued 1/1/19. GVC launched bwin.se and partypoker.se Spain Online duty reduced from 25% to 20% on 1/7/18 Italy ly

• Tax increases effective 1/1/19
• Advertising restrictions in place

from July 2019 UK

• Voluntary ban on TV sports advertising

before 9pm watershed, effective Aug 2019

• Change in maximum B2 stakes to £2 and

RGD increase both effective April 2019 Germany ny No material updates. Increasing number of Lander calling for revisions to State Gaming Treaty Swi witzerla land nd Sports-betting prohibited

• utside of existing Swiss

lottery operators effective 1/1/2019. Gaming licensing expected H2 2019 Brazi zil Brazilian Parliament has authorised the Brazilian Government to legislate

• nline and retail sports-

betting Netherla land nds Gambling law approved. Licensing expected by 2021

Scale le, d div iversif ificatio ion & & mult lti-channel o

• fferings a

s are a adv dvantages i s in new m mark arkets & s & in mar markets w s where re r regulation is increasi sing

Safer G Gamb ambling

• Leading industry to improve standards e.g. UK whistle-

to-whistle advertising ban (Aug 2019)

• Launch of Changing for the Bettor strategy
• Working with the UK Gambling Commission and

international regulators, and working together as an industry

• Doubling investment into research, education and

treatment of problem gambling Respo ponsib ible le E Emplo ployer

• Three-year Diversity & Inclusion plan
• Launch of Horizon Women in Leadership programme

Resp sponsi sible C Comm mmunities a s and M d Mark arkets

• Launch of GVC Community Foundation with £2m

funding

• New multi-year national partners for Ladbrokes Coral

Trust - £10m raised over 10 years

• Three-year strategic partnership with SportsAid

Recog

• gnition
• n
• Admitted to FTSE4 Good and DJSI following extensive

independent reviews of Group ESG practices

27

Corporate Social Responsibility

CSR s strat rategy r reflects G s Group’s p s position a as i indu dust stry ry l lead ader

28

Current Trading

Tradin ing in t the p perio iod 1 1 January t to 24 F 4 Febr bruary 2 2019 0191 was s as strong

• Group NGR +11%

1%

• Online NGR +22%

22%

• European Retail NGR +9

+9%

• UK Retail like-for-like NGR -2%

2%

• Comfortable with expectations – online double digit growth

[1] Proforma basis

29

Summary

• Strong financial and operational performance
• Online operating model is delivering market leading growth in all territories
• Integration progressing well – start to leverage “best-of-both”
• Well placed to gain from US opportunity
• Increased dividend – minimum 10% growth year-on-year
• Positive current trading – momentum continues into 2019

Glo Global bu business o

• f scale in

in a hig igh g growth s sector

Q&A

30

Appendix

31

32

FY19 Guidance: Triennial Review and Synergies

Triennia ial R l Revie iew G Guid idance

• Guidance unchanged
• Now split by financial year
• Shop closures: Up to 1,000 shops expected to close,

with a cash cost of c£50k per shop

Post I t Implementa tati tion in in y year im impact £m FY19 19 FY20 20 FY21 21 FY22 22 NG NGR UK Retail (265.0) (430.0) (485.0) (540.0) Online 18.0 35.0 40.0 40.0 Total (247. 47.0) 0) (395. 95.0) 0) (445. 45.0) 0) (500. 00.0) 0) EBITDA UK Retail (147.5) (165.0) (153.0) (145.0) Online 12.5 20.0 25.0 25.0 Total (135. 35.0) 0) (145. 45.0) 0) (128. 28.0) 0) (120. 20.0) 0)

Syner ergies es

• Cost synergy guidance unchanged
• Playtech agreement provides flexibility

Fina nanci ncial Year Cost Syn ynergies £ £m Capex x Syn ynergies £m Integra- tion C

• n Costs

£m

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 8.0 5.0 0.0 (14.5) 2019 35.0 16.0 - 26.0 10.0 - 15.0 (39.0) 2020 78.0 52.0 - 62.0 20.0 - 30.0 (43.0) 2021 130.0 104.0 - 114.0 30.0 (33.5) 2022 130.0 130.0 30.0 (0.0)

33

US Opportunity: Progress and Roadmap

Mar arket A Access ss and R d Regulation

• Operational in Nevada, New Jersey, Delaware (B2B) and New Mexico (B2B)
• Current market access to a further 15 states
• Next-wave states (2019/2020)1 expected to include New York, Michigan, Illinois and 13 others

Comb mbination o

• f l

leadi ading b bran rands, ds, p propri rietary ry t technology a and m d mark arket a access w ss will c creat ate a a lead ading p posi sition i in the U US

WA OR CA MT ID NV AZ UT WY CO NM TX OK KS NE SD ND MN IA MO AR LA MS AL GA FL SC TN NC IL WI MI OH IN KY WV VA PA NY ME VT NH NJ DE MD D.C. MA CT RI JV operations (B2C and B2B) MGM properties or direct access Tribal gaming partnerships Commercial gaming partnerships Legen end [1] Based on management and third party views including Eilers & Krejcik Gaming

• Applicable for financial periods commencing on or after 1 January 2019
• The Group will apply the simplified prospective methodology (i.e. 2018 will not be

restated) and will first report under IFRS16 at the 2019 interims

• Reporting changes:
• For 2019 onwards the Group will additionally report EBITDAR and disclose the

IFRS16 impact on depreciation and interest costs

• An update will be provided ahead of the 2019 interims and historic proforma

financials for 2018 showing EBITDAR will also be issued

34

IFRS 16 Impact