Brian Wallace Group Finance Director

Hilton Group plc - Summary of Performance Hilton International Betting & Gaming Central costs and income Operating profit Goodwill amortisation Interest Profit before tax Tax Profit after tax Hilton International Betting & Gaming Central costs and income Operating profit Goodwill amortisation Interest Profit before tax Tax Profit after tax Year to 31st December 2000 £m Year to 31st December 2000 £m Proforma year to 31st December 1999* £m Proforma year to 31st December 1999* £m EBITDA before exceptional items Profit before tax, goodwill, FRS15 & exceptional items EBITDA before exceptional items Profit before tax, goodwill, FRS15 & exceptional items (11.6) (36.9) (94.6) (57.2) (11.6) (36.9) (94.6) (57.2) (21.4) (28.1) (76.8) (64.1) (21.4) (28.1) (76.8) (64.1) * 1999 results have been adjusted to show the effect of FRS15 depreciation as if it had been charged in 1999.

Hilton Group plc - Exceptional Items £m Profit on sale of UK Casinos Loss on termination of Egyptian Casinos Loss on sale of non-European betting and gaming businesses Impairment of Belgium fixed assets Profit on sale of UK Casinos Loss on termination of Egyptian Casinos Loss on sale of non-European betting and gaming businesses Impairment of Belgium fixed assets 6.9 (10.4) (14.3) (25.6) (43.4) 6.9 (10.4) (14.3) (25.6) (43.4) £m 52.7 (10.4) (14.3) (25.6) (10.4) (14.3) (25.6) 2.4 P&L effect Net asset effect

Operating profit as reported % Net effect of property changes (9.3)(24.3) Inclusion of overheads treated centrally in 1999-(10.0) Effect of treating Stakis as acquired on 1 January Adjusted operating profit: Full Year % Operating profit as reported % Net effect of property changes (9.3)(24.3) Inclusion of overheads treated centrally in 1999-(10.0) Effect of treating Stakis as acquired on 1 January Adjusted operating profit: Full Year % % Increase Year to 31st December 2000 £m Year to 31st December 2000 £m Proforma year to 31st December 1999 £m Proforma year to 31st December 1999 £m Adjusted operating profit: 1st Half % Adjusted operating profit: 2nd Half % Adjusted operating profit: 1st Half % Adjusted operating profit: 2nd Half % Hilton International - Underlying Performance

UK % Europe % Middle East and Africa % Asia / Australasia % Americas % LivingWell , , % Central & non- operating Items(14.4)(17.2) % UK % Europe % Middle East and Africa % Asia / Australasia % Americas % LivingWell , , % Central & non- operating Items(14.4)(17.2) % TurnoverProfitTurnoverProfit* Revpar £m£m£m£mGrowth TurnoverProfitTurnoverProfit* Revpar £m£m£m£mGrowth * At constant currencies and including full 12 months of Stakis results Proforma Hilton International

Hilton UK Revpar vs The London Market -5% 0% 5% 10% 15% 20% 25% JanFebMarAprMayJunJulAugSepOctNovDecMarketHilton Source: AA & PKF 2000 Revpar growth

Hilton UK Revpar vs The Provincial Market -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% JanFebMarAprMayJunJulAugSepOctNovDecMarketHilton Source: AA, PKF & TRI 2000 Revpar growth

Hilton UK Year on Year Movement Year on Year Increase Comparable sales Comparable gross profit Comparable PBIT 1 st Half £m (5.2) 2 nd Half £m

8.0% 3.0% 11.2% 22.8% 17.7% 11.9% 39.3% 35.1% Top Ten UK and International Hotel Growths First Half Second Half Revpar Gwth PBIT Gwth % Growth Top 10 UK Hotels Top 10 International Hotels Revpar Gwth PBIT Gwth % Growth

Comparable Like for Like Gross Operating Profit by Area 25.0% 30.0% 35.0% 40.0% 45.0%50.0%Americas Asia/ Australasia Middle East & Africa Continental Europe UK Total

Betting & Gaming Profit Comparison 1999 reported profit High roller activity Sale of Golden Gate Fields Stakis Q reported profit Movement 1999 reported profit High roller activity Sale of Golden Gate Fields Stakis Q reported profit Movement Retail Betting Retail Betting Telephone Betting / eGaming Telephone Betting / eGaming Americas Casinos Vernons Total £m (1.0) (1.0) (0.5) (0.5) 10.4 (2.9) (2.9) (12.2) 7.0 (7.9) (14.9) 19.2 (12.2) 7.0 (7.9) (14.9) (12.2) (2.9) (11.8) (12.2) (2.9) (11.8)

Turnover1,642.91,667.2(24.3) Gross profit (including AWP’s) Gross profit % - including AWP’s18.9%18.0%0.9% - excluding AWP’s17.3%16.4%0.9% Operating costs(226.1)(215.8)(10.3) Operating profit Turnover1,642.91,667.2(24.3) Gross profit (including AWP’s) Gross profit % - including AWP’s18.9%18.0%0.9% - excluding AWP’s17.3%16.4%0.9% Operating costs(226.1)(215.8)(10.3) Operating profit £m 1999 £m Variance £m UK Retail Betting - Comparative Analysis

Horses Greyhounds Numbers Other Sports Football Total Horses Greyhounds Numbers Other Sports Football Total First Half Gross Betting Margin Before Costs (%) Second Half Full Year

Analysis of Telephone Betting/eGaming profit UK - Telephone Betting (1.2) - eGaming(8.0)-(8.0) International - Elite Telebetting (3.7) - Other Telebetting(1.9)(1.2) (0.7) - High Roller activity (11.5) - Internet Betting(2.0)-(2.0) (7.9)19.2(27.1) UK - Telephone Betting (1.2) - eGaming(8.0)-(8.0) International - Elite Telebetting (3.7) - Other Telebetting(1.9)(1.2) (0.7) - High Roller activity (11.5) - Internet Betting(2.0)-(2.0) (7.9)19.2(27.1) 2000 £m 1999 £m Variance £m

UK Telebetting Gibraltar Call Centre Gibraltar Call Centre Gibraltar Elite Gibraltar Elite Total 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m Turnover Gross profit Costs Net profit Turnover Gross profit Costs Net profit (6.5) (6.5) (6.6) (6.6) (6.2) (1.9) (6.2) (1.9) (1.6) (1.2) (1.6) (1.2) (1.6) (1.6) (1.0) (1.0) (14.3) (14.3) (9.2) (9.2) 7.0 Note: Excludes high roller activity in Gibraltar Telebetting Analysis

UK Telebetting Gibraltar Call Centre Gibraltar Call Centre Gibraltar Elite Gibraltar Elite Total 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m Turnover Gross profit Costs Net profit No. of calls Cost per call Turnover Gross profit Costs Net profit No. of calls Cost per call (6.5) m £ (6.5) m £ (6.6) m £ (6.6) m £ (6.2) (1.9) 1.2m £ (6.2) (1.9) 1.2m £ (1.6) (1.2) 39k £ (1.6) (1.2) 39k £ (1.6) k £ (1.6) k £ (1.0) k £ (1.0) k £ (14.3) m £ (14.3) m £ (9.2) m £ (9.2) m £3.40 Note: Excludes high roller activity in Gibraltar Telebetting Analysis

UK Telebetting Gibraltar Call Centre Gibraltar Call Centre Gibraltar Elite Gibraltar Elite Total 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m Turnover Gross profit Costs Net profit No. of calls Cost per call Full year gross profit % Half year gross profit % Turnover Gross profit Costs Net profit No. of calls Cost per call Full year gross profit % Half year gross profit % (6.5) m £ % 7.9% (6.5) m £ % 7.9% (6.6) m £ % 6.9% (6.6) m £ % 6.9% (6.2) (1.9) 1.2m £ % 3.4% (6.2) (1.9) 1.2m £ % 3.4% (1.6) (1.2) 39k £ % (1.6) (1.2) 39k £ % (1.6) k £ % 3.6% (1.6) k £ % 3.6% (1.0) k £ % 6.8% (1.0) k £ % 6.8% (14.3) m £ % 5.4% (14.3) m £ % 5.4% (9.2) m £ % 6.9% (9.2) m £ % 6.9% Note: Excludes high roller activity in Gibraltar Telebetting Analysis

Cumulative Internet Registrations 0 20,000 40,000 60,000 80, , ,000 FebMarAprilMayJuneJulyAugSeptOctNovDecJan

Sportsbook Margin Progression -5% 0% 5% 10% 15% 20% JulyAugSeptOctNovDecJan

Inflow from operating activities Interest paid(103.9)(60.2) Tax paid(48.9)(58.5) Dividends paid(123.5)(177.0) Free cash flow Capital expenditure(476.9)(358.6) Proceeds from asset sales Acquisitions, disposals244.4(366.7) (24.8)(413.3) Exchange & other movements(12.7)26.0 Opening net debt(1,336.8)(949.5) Closing net debt(1,374.3)(1,336.8) Inflow from operating activities Interest paid(103.9)(60.2) Tax paid(48.9)(58.5) Dividends paid(123.5)(177.0) Free cash flow Capital expenditure(476.9)(358.6) Proceeds from asset sales Acquisitions, disposals244.4(366.7) (24.8)(413.3) Exchange & other movements(12.7)26.0 Opening net debt(1,336.8)(949.5) Closing net debt(1,374.3)(1,336.8) 2000 £m 1999 £m Group Cash Flow

Hilton Analysis of Capital Expenditure £m Acquisitions Sydney70.8 Caledonian45.8 Dusseldorf Other Capital United Kingdom147.3 Overseas99.8 LivingWell Betting & Gaming Refurbishment/relocation19.5 BS2000 EPOS system8.5 Other Acquisitions Sydney70.8 Caledonian45.8 Dusseldorf Other Capital United Kingdom147.3 Overseas99.8 LivingWell Betting & Gaming Refurbishment/relocation19.5 BS2000 EPOS system8.5 Other

David Michels Group Chief Executive

Hilton International Worldwide revpar increase 1999 vs % (constant currencies and comparable Stakis) UK revpar increase10.5% Like for like UK: 1st half 2nd half GOP conversion46.5%49.0% PBIT(7.0%)14.3% £m £m £m £m Worldwide revpar increase 1999 vs % (constant currencies and comparable Stakis) UK revpar increase10.5% Like for like UK: 1st half 2nd half GOP conversion46.5%49.0% PBIT(7.0%)14.3% £m £m £m £m

Objectives More falls to the bottom line These businesses are as customer friendly as we can make them That our physical hotel estate lives up to Hilton’s perceived reputation That our eGaming investment is sensibly directed That we expand the group To improve the long term return on capital of the group as a whole More falls to the bottom line These businesses are as customer friendly as we can make them That our physical hotel estate lives up to Hilton’s perceived reputation That our eGaming investment is sensibly directed That we expand the group To improve the long term return on capital of the group as a whole As at Interim Results 2000

Openings and Pipeline HotelsNo. of rooms Openings ,713 Medina, Malta, Caledonian, Buenos Aires, Algiers, Budapest WestEnd, Dalian, Dubai Jumeirah, Hua Hin, Mauritius, Seremban, Tobago Pipeline41 11,237 Opening ,162 Incl: Copenhagen, Sofia, Rhodes, Melbourne Airport, Dubai, Jeddah, Trafalgar Square, Paddington, Auckland, Moscow, Bangalore, Amman Opening 2002/ ,075 Incl: Dubrovnik, Philippines, Beirut, Xiamen, Sao Paulo, Lagos, Kuala Lumpur, Tahiti, Inchon HotelsNo. of rooms Openings ,713 Medina, Malta, Caledonian, Buenos Aires, Algiers, Budapest WestEnd, Dalian, Dubai Jumeirah, Hua Hin, Mauritius, Seremban, Tobago Pipeline41 11,237 Opening ,162 Incl: Copenhagen, Sofia, Rhodes, Melbourne Airport, Dubai, Jeddah, Trafalgar Square, Paddington, Auckland, Moscow, Bangalore, Amman Opening 2002/ ,075 Incl: Dubrovnik, Philippines, Beirut, Xiamen, Sao Paulo, Lagos, Kuala Lumpur, Tahiti, Inchon

Customer Satisfaction Independent research carried out for Hilton International, based on a sample of over 8,100 respondents % 20% 12% 2000 Completely or Very Satisfied Fairly Satisfied Dissatisfied 71% 20% 9%

Maintenance/mandatory Profit generating New builds/development Acquisitions Total Maintenance/mandatory Profit generating New builds/development Acquisitions Total Hilton International Capital Expenditure ActualForecast £m£m

Major Projects Amsterdam- major refurbishment % Metropole- extension % Munich Park- major refurbishment % Caribe- purchase & refurbishment % Capital Expenditure £m IRR Forecast Amsterdam Hilton - Profit History Note: 2000 numbers are on a Pre FRS 15 basis Total cost £16.5m substantially completed Q Amsterdam Hilton Refurbishment

Hilton Alliance Hilton HHonors Total members10.5m7.7m Active members5.3m2.8m Hilton Reservations Worldwide Total worldwide9.2m7.8m hilton.com worldwide 376k 149k HRW Hilton International1.6m1.2m Conrad Joint Venture Family of brands - Hilton Garden Inn, Doubletree, Embassy, Hampton, Homewood, Red Lion

Current Total Membership125,000 UK 112,500 International12,500 UK Development 2000/2001 Clubs opened in UK in 2000Clubs to Open in UK in 2001 HotelPremier NottinghamPeterborough(open) CaledonianBurton on Trent (open) Inverness Premier Barnsley Sutton Coldfield York Carlisle Ashford LivingWell

Health Club Malta (open) Melbourne Airport Mersin Adana Dresden Berlin Mainz Health Club Malta (open) Melbourne Airport Mersin Adana Dresden Berlin Mainz Premier Health Club North Sydney (open) Castlehill, Sydney (open) Brisbane (open) Carindale, Brisbane Sydney Hilton Premier Health Club North Sydney (open) Castlehill, Sydney (open) Brisbane (open) Carindale, Brisbane Sydney Hilton LivingWell Bucharest Prague Dresden Bangkok Colombo Adelaide Bucharest Prague Dresden Bangkok Colombo Adelaide International Development 2000 / 2001

Hilton International Property UK-£1.9 billion Overseas-£0.9 billion Property UK-£1.9 billion Overseas-£0.9 billion £300 million to be sold in UK whilst retaining flag

UK Ladbroke Casinos-non core Sold for £236.7 million vs 2000 PBIT £14.9 million Overseas Gaming-non core Sold - Fort Erie; Argentina; Peru; San Pablo Card Club; Pennsylvania (conditional contract); Colorado (auction process at advanced stage) To be sold - 2 Cairo casinos Sale of Businesses

UK Betting Industry & Environment Government review of a new betting tax regime Gambling Review Body to submit report to Home Office during summer Horserace levy agreed for 2001/02. Home Office consulting on a replacement scheme SIS in discussions with the Racecourse Association (RCA) over renewal of betting shop picture rights Government review of a new betting tax regime Gambling Review Body to submit report to Home Office during summer Horserace levy agreed for 2001/02. Home Office consulting on a replacement scheme SIS in discussions with the Racecourse Association (RCA) over renewal of betting shop picture rights

EBITDA break even achieved Further investment planned By end 2001 sustainable break even will be achieved Move into profit during 2002 Sportsbook registrations 105,000 Casino players 6,000 Average cost customer recruitment 2000 £ £29.00 EBITDA break even achieved Further investment planned By end 2001 sustainable break even will be achieved Move into profit during 2002 Sportsbook registrations 105,000 Casino players 6,000 Average cost customer recruitment 2000 £ £29.00 eGaming Performance

PlatformMediaTiming InternetBet.co.uk Launched February 2000 Ladbrokes.co.uk Ladbrokes.com Ladbrokescasino.com Launched November 2000 Vernons.co.uk Launched February 2001 MobileWAP Launched August 2000 GPRS Summer 2001 UMTS2003 Digital TV Cable}Telewest Launched February 2000 }CWC Launched March 2000 }Ntl Launch April/May 2001 Satellite}Open In Discussion } Sky (WAPTV) Awaiting platform rates Terrestrial} On Digital Launched eGaming Platforms

PartnerActivity TeamtalkExclusive sportsbook and casino link South China Morning PostSportsbook and casino link SoccernetWorld’s largest soccer site – exclusive sportsbook link CricinfoWorld’s largest single sports site Sportsbook and casino link Autosport.comEurope’s second biggest motor racing site Sportsbook link Totalsports.asia.comDedicated sales team in KL generating affiliate deals for Ladbrokes sportsbook and casino in Far East PlayboyProvide sportsbook. One of the top ten most searched words on the worldwide web PartnerActivity TeamtalkExclusive sportsbook and casino link South China Morning PostSportsbook and casino link SoccernetWorld’s largest soccer site – exclusive sportsbook link CricinfoWorld’s largest single sports site Sportsbook and casino link Autosport.comEurope’s second biggest motor racing site Sportsbook link Totalsports.asia.comDedicated sales team in KL generating affiliate deals for Ladbrokes sportsbook and casino in Far East PlayboyProvide sportsbook. One of the top ten most searched words on the worldwide web eGaming Partnerships

eGaming Future Developments ActivityPlanned 2001 Flash casino gamesMarch Cantonese CasinoApril Ntl interactive TV serviceApril Playboy sportsbook April Progressive casino games (blackjack/roulette/slots) May High roller casinoSeptember Numbers gamesJuly Sportsbook – next generationJuly Poker Million web siteSeptember Video streamed casinoDecember ActivityPlanned 2001 Flash casino gamesMarch Cantonese CasinoApril Ntl interactive TV serviceApril Playboy sportsbook April Progressive casino games (blackjack/roulette/slots) May High roller casinoSeptember Numbers gamesJuly Sportsbook – next generationJuly Poker Million web siteSeptember Video streamed casinoDecember

NB:* 1 million digital terrestrial homes via OnDigital but only circa 50,000 currently subscribe to OnNet boxes which enable Web access (i.e. delivers a return path) eGaming - Digital TV (F’cast) Homes Connected SatelliteSky/Open4.7m7.2m CableNtl0.5m2.8m Telewest0.3m1.5m TerrestrialOn-Digital1.0m3.3m 6.5m14.8m (F’cast) Homes Connected SatelliteSky/Open4.7m7.2m CableNtl0.5m2.8m Telewest0.3m1.5m TerrestrialOn-Digital1.0m3.3m 6.5m14.8m