1. Brian Wallace Group Finance Director and Deputy Chief Executive

2. Hotels97.8126.3(22.6)% Worldwide Betting76.562.622.2% Disposal businesses-1.2 Central costs and income(6.6)(6.2) Operating profit (2) 167.7183.9(8.8)% Interest(37.7)(39.6)4.8% Profit before tax (2) 130.0144.3(9.9)% Effective tax rate (2) 22.0%21.1% EBITDA (2) 237.7239.3(0.7)% Hotels97.8126.3(22.6)% Worldwide Betting76.562.622.2% Disposal businesses-1.2 Central costs and income(6.6)(6.2) Operating profit (2) 167.7183.9(8.8)% Interest(37.7)(39.6)4.8% Profit before tax (2) 130.0144.3(9.9)% Effective tax rate (2) 22.0%21.1% EBITDA (2) 237.7239.3(0.7)% 6 months to 30 June 2002 £m 6 months to 30 June 2002 £m 6 months to 30 June 2001 (1) £m 6 months to 30 June 2001 (1) £m Hilton Group plc - Summary of Performance Variance B(W) Variance B(W) (1) Restated for the impact of FRS 19 (2) Before goodwill amortisation and exceptional items

3. Reported profit97.8126.3(22.6)% Scandic profit(16.6)(2.7) Comparable profit81.2123.6(34.3)% Royal Bank of Scotland rent9.56.7 Disposals / new openings(1.0)(2.7) Foreign exchange(0.6)- Like for like profit89.1127.6(30.2)% Reported profit97.8126.3(22.6)% Scandic profit(16.6)(2.7) Comparable profit81.2123.6(34.3)% Royal Bank of Scotland rent9.56.7 Disposals / new openings(1.0)(2.7) Foreign exchange(0.6)- Like for like profit89.1127.6(30.2)% 2002 £m 2002 £m Hotels - Like for Like Profit (1) % change % change 2001 £m 2001 £m (1) Before goodwill amortisation and exceptional items

4. Like for Like Hotels, Constant Currencies 5% 0% (5)% (10)% Occ % growth Rate growth RevPAR growth Including Scandic March / April have been combined to avoid the distortion caused by the timing of Easter Hotels Worldwide Occupancy, Rate and RevPAR Performance vs 2001 JanFeb Mar / Apr MayJuneJuly 1.1% (7.5)% (4.3)% (5.5)% (5.6)% (4.3)%

5. Hotels Worldwide RevPAR by Ownership Type Like for Like, Constant Currencies 0% (2)% (6)% (10)% (12)% First half RevPAR growth 2002 vs 2001 (10.0)% (4)% (8)% (8.3)% (8.2)% (0.8)% First half RevPAR growth 2002 vs 2001 split by owned properties, fixed lease, contingent lease and management contract First half RevPAR growth 2002 vs 2001 split by owned properties, fixed lease, contingent lease and management contract Includes Scandic in 2001 although it was only consolidated from 11 th June 2001 Includes Scandic in 2001 although it was only consolidated from 11 th June 2001 First half RevPAR growth 2002 vs 2001 split by owned properties, fixed lease, contingent lease and management contract First half RevPAR growth 2002 vs 2001 split by owned properties, fixed lease, contingent lease and management contract Includes Scandic in 2001 although it was only consolidated from 11 th June 2001 Includes Scandic in 2001 although it was only consolidated from 11 th June 2001 Fixed lease Owned Contingent lease Managed

6. Revenue decrease(61.1) GOP decrease (1) (36.3) Revenue decrease(61.1) GOP decrease (1) (36.3) Hotels - Cost Management Like for Like (1) Before exceptional items and goodwill amortisation Excludes Scandic £m Incremental conversion40.6% Rental and owners return2.6 Rates(2.4) Insurance and other(1.8) Foreign exchange(0.6) (2.2) Rental and owners return2.6 Rates(2.4) Insurance and other(1.8) Foreign exchange(0.6) (2.2) Operating profit decrease (1) (38.5)

7. UK Hotels RevPAR Performance vs 2001 Like for Like Hotels 5% 0% (5)% (15)% (20)% JanFeb Mar / Apr MayJuneJuly Provinces (10)% London 5 star London 4 star Total UK March / April have been combined to avoid the distortion caused by the timing of Easter

8. Hilton vs London Market Cumulative Year to Date RevPAR Premium £50 £60 £70 £80 Jan £90 FebMarAprMayJune RevPAR (£) 4% 10% 18% Premium 6% 8% 12% 14% 16% The Market RevPAR 2002 Hilton RevPAR 2002 Hilton RevPAR Premium 2002 Market Source: PKF Hotel Consultancy Services

9. France, Germany, Benelux RevPAR Performance vs 2001 Like for Like, Constant Currencies 0% (10)% (15)% (25)% (30)% Benelux (5)% (20)% FranceGermany Including Scandic March / April have been combined to avoid the distortion caused by the timing of Easter JanFeb Mar / Apr MayJuneJuly

10. Scandic - Occupancy, Rate and RevPAR Performance vs 2001 Like for Like, Constant Currencies 5% 0% (5)% (10)% (15)% (10.2)% Occ % growth Rate growth RevPAR growth March / April have been combined to avoid the distortion caused by the timing of Easter 2.5% (5.4)% (1.9)% (5.9)% (0.7)% JanFeb Mar / Apr MayJuneJuly

11. Like for like hotels trading(3.9) Openings / closures / major refurbishments(3.5) Integration synergies5.8 Like for like hotels trading(3.9) Openings / closures / major refurbishments(3.5) Integration synergies5.8 Profit Impact £m Profit Impact £m Scandic - Financial Update Integration synergies in excess of £10m on an annualised basis Integration synergies in excess of £10m on an annualised basis

12. Successful integration Successful integration Cost savings exceeded Cost savings exceeded Transformed UK market position Transformed UK market position Returns held back by 11 th September and economic slowdown Returns held back by 11 th September and economic slowdown Successful integration Successful integration Cost savings exceeded Cost savings exceeded Transformed UK market position Transformed UK market position Returns held back by 11 th September and economic slowdown Returns held back by 11 th September and economic slowdown Stakis - Post Acquisition Review

13. Retail Betting1,353.3933.264.158.0 Telephone Betting193.8125.84.71.6 eGaming192.362.85.10.2 Vernons15.115.32.62.8 Worldwide Betting1,754.51,137.176.562.6 Retail Betting1,353.3933.264.158.0 Telephone Betting193.8125.84.71.6 eGaming192.362.85.10.2 Vernons15.115.32.62.8 Worldwide Betting1,754.51,137.176.562.6 2002 £m 2002 £m Worldwide Betting 2001 £m 2001 £m 2002 £m 2002 £m 2001 £m 2001 £m Turnover Operating Profit (1) (1) Before goodwill amortisation and exceptional items

14. Gross Win by Channel 2002 Gross win - £319.9m 2001 Gross win - £295.5m European Retail Telephone Betting eGaming 87% 8% 5% 91% 4% 5% Gross win is before duty / gross profit tax are deducted NB. European retail includes AWPs net of VAT

15. UK Retail Betting Year on Year Turnover Growth - Zero Deduction Effect (2001/ 2 vs 2000/1) 0% 20% 40% 60% Oct 80% NovDecJanFebMarAprMayJune Actual growth Trendline (growth due to zero deduction) Growth due to zero deduction

16. Telephone Betting Single account proposition across telephone, online and interactive TV Single account proposition across telephone, online and interactive TV Voice recognition on trial during World Cup Voice recognition on trial during World Cup Single account proposition across telephone, online and interactive TV Single account proposition across telephone, online and interactive TV Voice recognition on trial during World Cup Voice recognition on trial during World Cup 2002 £m 2002 £m 2001 £m 2001 £m Turnover193.8125.8 Gross win 15.014.6 Gross win margin7.7%11.6% Operating profit4.74.6 Average stake per call (£)83.2666.21 No. of calls (000’s)2,2641,840 Active customers (000’s) 87.780.2 Turnover193.8125.8 Gross win 15.014.6 Gross win margin7.7%11.6% Operating profit4.74.6 Average stake per call (£)83.2666.21 No. of calls (000’s)2,2641,840 Active customers (000’s) 87.780.2

17. eGamingeGaming Turnover192.362.8 Gross win (1) 26.810.4 Gross profit (2) 24.910.2 Gross profit % (2) 12.9%16.2% Operating profit5.10.2 Active customers (000’s) (3) 179.483.3 Turnover192.362.8 Gross win (1) 26.810.4 Gross profit (2) 24.910.2 Gross profit % (2) 12.9%16.2% Operating profit5.10.2 Active customers (000’s) (3) 179.483.3 eGaming now has over 400,000 registered customers eGaming now has over 400,000 registered customers 2002 £m 2002 £m 2001 £m 2001 £m (1) Gross win is before duty / gross profits tax are deducted (2) Gross profit is after duty / gross profits tax (3) Active customers are those who placed a bet during the period

18. eGaming - Monthly Turnover 40 25 15 5 0 £m 20 10 £5m 30 35 45 £14m £41m 64% World Cup Euro 2000 June 2000 June 2001 June 2002 £23m

19. eGaming Sportsbook First Half Turnover by Country UK Far East Europe 49% 4% 10% 61% 1% 6% 37% 32% Other 2002 2001 169% growth in sportsbook turnover year on year 169% growth in sportsbook turnover year on year

20. Hilton Group plc - Cash Flow Opening net borrowings(1,473.9)(1,374.3) Cash inflow from operating activities211.8193.9 Interest, tax and dividends paid(132.2)(134.5) Free cash flow 79.659.4 Capital expenditure(85.2)(94.6) Free cash flow after capex(5.6)(35.2) Proceeds from asset sales7.7363.8 Acquisitions / disposals3.5(457.9) 5.6(129.3) Exchange and other movements (1) (43.6)6.5 Net borrowings movement (38.0)(122.8) Closing net borrowings(1,511.9)(1,497.1) Opening net borrowings(1,473.9)(1,374.3) Cash inflow from operating activities211.8193.9 Interest, tax and dividends paid(132.2)(134.5) Free cash flow 79.659.4 Capital expenditure(85.2)(94.6) Free cash flow after capex(5.6)(35.2) Proceeds from asset sales7.7363.8 Acquisitions / disposals3.5(457.9) 5.6(129.3) Exchange and other movements (1) (43.6)6.5 Net borrowings movement (38.0)(122.8) Closing net borrowings(1,511.9)(1,497.1) 2002 £m 2002 £m 2001 £m 2001 £m (1) Includes £48.6m adverse exchange (2001: £3.1m favourable exchange)

21. Sao Paulo11.6 Gatwick9.9 Cologne - Scandic new build & rebrand6.2 Syndhaven - Scandic rebrand2.7 Barcelona2.7 Kalastajatorppa - refurbishment2.4 Zurich2.0 Other (all under £2m)21.9 Total Hotels59.4 Total LivingWell5.5 64.9 Sao Paulo11.6 Gatwick9.9 Cologne - Scandic new build & rebrand6.2 Syndhaven - Scandic rebrand2.7 Barcelona2.7 Kalastajatorppa - refurbishment2.4 Zurich2.0 Other (all under £2m)21.9 Total Hotels59.4 Total LivingWell5.5 64.9 BS 2000 EPOS system1.6 Numbers terminals1.1 eGaming / Telephone betting3.9 Other (including: acquisitions / new licences £1.8m, relocations £2.9m, refurbs / extensions £3.1m)13.7 20.3 85.2 BS 2000 EPOS system1.6 Numbers terminals1.1 eGaming / Telephone betting3.9 Other (including: acquisitions / new licences £1.8m, relocations £2.9m, refurbs / extensions £3.1m)13.7 20.3 85.2 Hotels Worldwide Betting Total 2002 £m 2002 £m Hilton Group plc - Analysis of Capital Expenditure

22. Successful bond issues: Successful bond issues: - Euro 500 million 6.5% due July 2009 - Sterling 250 million 7.125% due July 2012 Committed facilities: Committed facilities: - £1 billion surplus over gross debt - weighted average term of committed facilities is 4 years No financial ratio covenants in existing facility agreements No financial ratio covenants in existing facility agreements Fixed interest rates on 50% of gross debt for a weighted average term of 3 years Fixed interest rates on 50% of gross debt for a weighted average term of 3 years Foreign currency assets hedged by borrowing in foreign currencies Foreign currency assets hedged by borrowing in foreign currencies Successful bond issues: Successful bond issues: - Euro 500 million 6.5% due July 2009 - Sterling 250 million 7.125% due July 2012 Committed facilities: Committed facilities: - £1 billion surplus over gross debt - weighted average term of committed facilities is 4 years No financial ratio covenants in existing facility agreements No financial ratio covenants in existing facility agreements Fixed interest rates on 50% of gross debt for a weighted average term of 3 years Fixed interest rates on 50% of gross debt for a weighted average term of 3 years Foreign currency assets hedged by borrowing in foreign currencies Foreign currency assets hedged by borrowing in foreign currencies TreasuryTreasury

23. David Michels Group Chief Executive

24. Hilton Group plc

25. 42.243.942.446.028.841.347.644.747.249.532.144.8 68.348.055.6 Revenue Per Available Room - Like for Like* 2002 2001 Growth 2002 2001 Growth LondonProvinces Total United Kingdom Europe & Africa Middle East & Asia Pacific The Americas Total Hilton Scandic branded Total Hotels 77.849.059.7 (11.3)%(1.8)%(10.2)%(7.1)%(10.3)%(7.8)%55.142.748.751.434.046.758.541.352.153.733.448.3(5.8)%3.5%(6.5)%(4.3)%1.8%(3.3)%48.743.345.648.731.444.0 First Quarter 2001 Growth 53.243.049.751.632.846.5(8.4)%0.8%(8.2)%(5.7)%(4.2)%(5.4)% Second Quarter Six Months to June Hilton branded: (12.2)%(2.0)%(6.9)%74.051.559.885.652.965.0 (13.6)%(2.6)%(8.0)%71.249.857.781.751.062.4(12.8)%(2.4)%(7.5)% *All at constant currencies, including a full 6 months of Scandic in 2001

26. Hotels214278144139 Worldwide betting30404053 Major property purchases84 147 -- Capital expenditure328465184192 Disposals - hotels(151)(13)(355) * 177452(171) Hotels214278144139 Worldwide betting30404053 Major property purchases84 147 -- Capital expenditure328465184192 Disposals - hotels(151)(13)(355) * 177452(171) Cash461-454 Shares882-165 Cash461-454 Shares882-165 CapexCapex Acquisitions (Stakis and Scandic) 1999 £m 1999 £m 2000 £m 2000 £m 2001 £m 2001 £m Forecast 2002 £m Forecast 2002 £m * Potential sale and leaseback deal Hotels - Property net book value£2.5bn£2.8bn £2.6bn

27. Hilton International - Property Net Book Value movement over 4 years UK£1.8bn£1.9bn£1.6bn£1.6bn Overseas£0.7bn£0.9bn£1.0bn£1.0bn Total£2.5bn£2.8bn£2.6bn£2.6bn UK£1.8bn£1.9bn£1.6bn£1.6bn Overseas£0.7bn£0.9bn£1.0bn£1.0bn Total£2.5bn£2.8bn£2.6bn£2.6bn 1999 2000 2001 2002

28. ScandicScandic

29. BrandingBranding Hilton - 475 hotels in 70 countries (233 HHC) - 40 more on the way - Owned / management contract / leased Hilton - 475 hotels in 70 countries (233 HHC) - 40 more on the way - Owned / management contract / leased Scandic (mid-market) - 137 hotels - Target 200 by end 2004 - Management contract / leased / franchised Scandic (mid-market) - 137 hotels - Target 200 by end 2004 - Management contract / leased / franchised

30. LivingWellLivingWell UK123,600 International16,021 Total139,621 Current Membership

31. Half Year Shop Performance - UK and Jersey 1996 1997 1998 1999 2000 2001 Average number of shops PBIT £m29.137.143.334.736.148.358.1 PBIT per shop £k15.919.623.018.219.225.730.8 Average number of shops PBIT £m29.137.143.334.736.148.358.1 PBIT per shop £k15.919.623.018.219.225.730.8 1,8311,8921,8921,9101,8791,8831,884 2002 N.B. Excludes SIS contribution

32. Horses13.5%14.7%12.7%12.9% Greyhounds17.2%16.8%17.2%15.7% Football (3)15.5%23.2%17.8%15.9% Sports14.2%12.8%10.7%10.7% Numbers24.4%23.3%24.3%26.1% Average14.9%15.9%14.2%14.0% Horses13.5%14.7%12.7%12.9% Greyhounds17.2%16.8%17.2%15.7% Football (3)15.5%23.2%17.8%15.9% Sports14.2%12.8%10.7%10.7% Numbers24.4%23.3%24.3%26.1% Average14.9%15.9%14.2%14.0% 2002 UK Shops - Gross Profit (1) Product margins - First Half 2001 (2) 2000 (2) Average ’97 - ’00 (2) Average ’97 - ’00 (2) (1) Gross profit is after duty / gross profits tax (2) Adjusted for gross profits tax (3) Excluding the World Cup the gross profit margin on football for 2002 was 18.4%

33. Shop Innovation Further 14 shops recently purchased. 16 more in second half Further 14 shops recently purchased. 16 more in second half EPOS drives improved efficiency, the new screen system and Fixed Odds Betting Terminals (FOBT’s) EPOS drives improved efficiency, the new screen system and Fixed Odds Betting Terminals (FOBT’s) FOBT’s averaging £3,900 p/w per terminal since new bets introduction two months ago FOBT’s averaging £3,900 p/w per terminal since new bets introduction two months ago Turnover +50% this year vs last Turnover +50% this year vs last Further 14 shops recently purchased. 16 more in second half Further 14 shops recently purchased. 16 more in second half EPOS drives improved efficiency, the new screen system and Fixed Odds Betting Terminals (FOBT’s) EPOS drives improved efficiency, the new screen system and Fixed Odds Betting Terminals (FOBT’s) FOBT’s averaging £3,900 p/w per terminal since new bets introduction two months ago FOBT’s averaging £3,900 p/w per terminal since new bets introduction two months ago Turnover +50% this year vs last Turnover +50% this year vs last

34. Budd Review and the Casino Business

35. Telephone Betting Year on Year Turnover Growth 0% 10% 30% 40% 1999 vs 1998 60% 2000 vs 1999 2001 vs 2000 2002 HY vs 2001 HY 50% 20% 29% 6% 18% 55%

36. eGaming Gross Win 0.0 5.0 15.0 20.0 1st half 2000 30.0 2 nd half 2000 2 nd half 2001 1 st half 2002 25.0 10.0 0.3 2.8 10.4 26.8 £m 1 st half 2001 15.9

37. Registered players392,00065,0006,400 Active130,00028,0002,500 Currencies151515 £ stake per bet / play£19.17£10.26£35 Languages11111 Registered players392,00065,0006,400 Active130,00028,0002,500 Currencies151515 £ stake per bet / play£19.17£10.26£35 Languages11111 eGamingeGaming (Average pot) SportsbookSportsbookCasinoCasinoPokerPoker (Played since 1 Jan 2002) (Internet only)

38. MayJuneJuly August to date 29 48 56 61 Poker - Average Rake Per Week 0 20 40 50 70 60 30 £k 10

39. Total number of bets1.2 million Turnover£21.6 million Gross win£2.5 million Total number of new customer registrations45,000 % of business non-UK68% Total number of bets1.2 million Turnover£21.6 million Gross win£2.5 million Total number of new customer registrations45,000 % of business non-UK68% World Cup 2002 Internet and Interactive TV Betting

40. Hotels Rebound / RevPAR PBIT increase Peer / Yield premium to rise New income stream from mid market & resorts Hotels Rebound / RevPAR PBIT increase Peer / Yield premium to rise New income stream from mid market & resorts Upside / Opportunities Betting FOBT income stream Budd Casinos / Slots eGaming to double Turnover increase / more steam Telephone betting / opportunities Betting FOBT income stream Budd Casinos / Slots eGaming to double Turnover increase / more steam Telephone betting / opportunities Strong capex / cost control Capital redeployment EBITDA growth from invested capital Strong capex / cost control Capital redeployment EBITDA growth from invested capital