1. 2005 Interim Results 25 August 2005

2. Brian Wallace Deputy Group Chief Executive and Finance Director

3. 2 Summary of Performance (1) Before non-trading items 2005 £m 2004 £m Variance B(W) Hotels72.665.610.7% Betting143.6153.3(6.3)% Central costs and income(8.9)(6.5)(36.9)% Operating profit (1) 207.3212.4(2.4)% Finance costs(15.2)(21.1)28.0% Profit before tax (1) 192.1191.30.4% Effective tax rate (1) 20.0 %15.5% EBITDA (1) 275.3278.4(1.1)% EPS (1) 9.6p10.2p(5.9)% Half year to 30 June

4. 3 Hotels - Like for Like Profit Reported profit (1) 72.665.610.7% Closed for refurbishment2.50.6 Disposals / new openings(1.9)(2.0) St Lucia termination receipt(2.3)- Foreign exchange(0.5)- Like for like hotels profit (1) 70.464.29.7% 2005 £m 2004 £m Variance B(W) Half year to 30 June (1) Before non-trading items

5. 4 Hotels Worldwide Revpar 2005 vs 2004 March and April results have been combined due to the timing of Easter. Like for Like Hotels, Constant Currencies

6. 5 Worldwide Revpar by Ownership Type Like for Like Hotels, Constant Currencies Revpar growth 2005 vs 2004 - First half +4.7% +8.4% +10.8% 2004 2005

7. 6 Hotels - Cost Management (1) Before non-trading items Total £m Increasing revenue £m Declining revenue £m Revenue movement75.2100.5(26.2)1.0 GOP movement (1) 36.758.3(18.4) 0.1 I ncremental conversion48.7%58.0%29.6% Rental & Owners return(25.2) Property taxes / rates(1.7) Other(3.6) Operating profit increase (1) 6.2 LivingWell £m Like for Like Hotels, Constant Currencies Half year to 30 June

8. 7 UK Hotels Profitability (1) Excludes Tindall associate result 2005 £m 2004 £m Variance B(W) Half year to 30 June Reported profit (1) 30.638.7(8.1) Disposals(2.2) Increased depreciation charge(1.0) Newcastle compensation(1.1) 5 major hotels decline(4.9) 65 other hotels increase1.1 Decline in UK Hotels profit(8.1) Analysis of decline

9. 8 Europe (Hilton brand) - Revpar By Country 2004 2005 +2.3% +7.1% +8.6% Like for Like Hotels, Constant Currencies, First Half

10. 9 Scandic Revpar 2005 vs 2004 March and April results have been combined due to the timing of Easter. Like for Like Hotels, Constant Currencies, Scandic Acquired Revpar growth 2005 vs 2004 - First half

11. 10 Scandic Performance 2005 vs 2004 (a) At constant currencies. (b) Includes openings, closing and refurbishments. 2005 Actual £m Other (b) £m Revenue 241.1 18.5 (3.1) (5.1) 5.8 257.2 GOP 76.2 10.9 (2.6) (2.5) 1.9 83.9 Inc. conversion 58.9% 16.1% Costs (73.3) (1.8) 0.41.4 (1.6) (74.9) Profit 2.9 9.1 (2.2) (1.1) 0.3 9.0 Like for like revenue gainers (a) £m 2004 Actual £m Like for like revenue losers (a) £m Exchange £m

12. 11 Betting & Gaming UK Retail342.1338.0108.8119.2 Ireland & Belgium35.635.95.77.0 Telephone Betting 21.625.98.511.8 eGaming58.044.717.512.1 Vernons9.910.63.13.2 Betting & Gaming467.2455.1143.6153.3 Gross Win 2005 2004 £m (1) Before non-trading items Operating Profit (1) 2005 2004 £m Half year to 30 June

13. 12 UK Retail Over-the-counter (1) 242.5254.2(4.6)% Machines*99.683.818.9% Total Gross Win342.1338.01.2% *Gross Win on Machines FOBT90.771.027.7% AWP8.912.8(30.5)% (1) Underlying GW after adjusting for major sporting events – Euro 2004, Ascot, Aintree and Cheltenham – fell by 0.3% from 2004 Half year to 30 June 2005 £m 2004 £m Variance B(W)

14. 13 Underlying overheads168.1162.63.4% Growth in retail estate 12.06.0 Opening hours increase 2.6 Total UK Retail costs 182.7168.68.4% UK Retail – Underlying Cost Growth 2005 £m 2004 £m Variance B(W) Half year to 30 June

15. 14 Telephone Betting (including high rollers) (1) Active customers are those who placed a bet during the period Gross win 21.625.9(16.6)% Gross profits tax(3.3)(3.8)13.2% Other costs(9.8)(10.3)4.9% Operating profit8.511.8(28.0)% Average stake per call£90.98£79.7714.1% Salary cost per call65.2p70.0p6.9% No. of calls (000’s) 3,751 3,33412.5% Active customers (000’s) (1) 103.4102.21.2% 2005 £m 2004 £m Variance B(W) Half year to 30 June

16. 15 Active customers (000’s) (1) Sportsbook228231(1.3)% Casino4666(30.3)% Poker9333181.8% Online registrations (000’s)195213(8.5)% eGaming Gross win 58.044.729.8% Gross profits tax(3.2)(2.7)(18.5)% Other costs(37.3)(29.9)(24.7)% Operating profit17.512.144.6% (1) Active customers are those who placed a bet during the period 2005 £m 2004 £m Variance B(W) Half year to 30 June

17. 16 Hilton Group plc - Cash Flow Cash generated by operations 239.2258.1 Interest, tax and dividends paid(128.1)(126.6) Cash flow before capex111.1131.5 Capital expenditure(82.6)(85.4) Cash flow after capex28.546.1 Intangible additions (1) (40.4)(19.5) Acquisitions / hotel disposals (2) 100.915.0 Exchange and other movements (3) 66.580.0 Net borrowings movement155.5121.6 Opening net borrowings(971.9)(1,147.7) Closing net borrowings(816.4)(1,026.1) (1)Includes £37.1m licence additions and £2.5m software additions (2004: £19.5m) (2)Includes £103.5m on hotel disposals in 2005 (2004: £15.0m) (3)Includes £38.7m favourable exchange (2004: £74.7m favourable) and £30.3m inflow from share capital issue (2004: £3.6m) 2005 £m 2004 £m Half year to 30 June

18. 17 Analysis of 2005 Capital Expenditure £m Hotels Acquisition linked development: Sydney (refurb)13.2 Dusseldorf (refurb)1.4 14.6 Other43.7 Total Hotels58.3 LivingWell0.3 58.6 Betting & Gaming Development – operating assets15.2 Ladbrokes Xtra0.7 Other (including Ireland £1.9m)7.4 eGaming / Telephone betting0.7 24.0 Total Group 82.6 Half year to 30 June

20. David Michels Group Chief Executive

21. 20 2005 – First Half Trading

22. 21

23. 22 Retail Estate

24. 23 Ladbrokes Costs Total UK Retail8.4% Worldwide Betting9.2% Like for Like UK Retail3.4%

25. 24 eGaming

26. 25 eGaming

27. 26 Telephone Betting

28. 27 International Partners Sweden Denmark Finland Norway Greece Turkey Spain Thailand Malaysia Singapore Ghana Tanzania Swaziland Malawi

29. 28 Casinos

30. 29

31. 30 Franchising Scandic by Hilton, Syracuse

32. 31 Management Contracts BarbadosDubrovnik, Croatia Mount Wolseley, Ireland

33. 32 Hilton International Americas Commercial Operations Group Nordic UK and Ireland Middle East and Asia Pacific Europe and Africa Sourcing and Productivity Sales Marketing Distribution IT

34. 33 BDRC **BDRC Survey 2004 MeasureEurope * UK * Asia Pacific ** Middle East ** Rank Brand Preference -1 st Choice -1 st or 2 nd Choice Brand Ranking Index 1 st 3 rd 1 st 2 nd 1 st 2 nd 1 st *BDRC Survey 2005

35. 34 GSTS Worldwide GSTS figures show an overall satisfaction score of 77% at June 2005, 4% up on December 2004 MEAP and UK have shown increases of 5 percentage points and 3 percentage points respectively during the first half

36. 35 Sydney Hilton, Australia

37. 36 Sale of Assets Corby Dunblane Norwich Brighton West Pier

38. 37 Pipeline Growth Bari, Italy (Scandic by Hilton) Dubrovnik, Croatia Mount Wolseley, Ireland Cebu, Philippines Barbados, Caribbean Syracuse, Italy (Scandic by Hilton) Dublin Airport, Ireland Tokyo, Japan (Conrad) Sydney, Australia Barcelona Diagonal Mar, Spain Santo Domingo, Dominican Republic Hotels Opened - 2005 Phuket, Thailand (Conrad) Millennium Hilton Bangkok, Thailand Portorosa, Sicily Denarau, Fiji Sanya Resort and Spa, China London Canary Wharf, UK Manchester Deansgate, UK Warsaw, Poland Sharm Nabq, Egypt Valencia, Spain Jumeirah Beach Club, Dubai Evian, France Beirut, Lebanon London Tower Bridge, UK Alborea, Italy Calane, Italy Il Valentino, Italy Kalidria, Italy Qasr al Shaq, Saudi Arabia Hotels Opening - 2005 Hotels Opening - 2006

39. 38 Hotels135140 Betting8080 Major property purchase30- Capital Expenditure245220 Capex. Forecast 2005 £m Forecast 2006 £m

40. 39 Scandic

41. 40 Hotel Costs

42. 41 Current Trading

44. Appendix

45. 44 Revenue263.1138.2430.6520.62.426.81,381.7 Gross operating profit79.149.3141.8194.22.49.0475.8 Less: Rental/owners return(4.0)(33.6)(93.1)(142.4)-(2.3)(275.4) Depreciation(21.8)(9.9)(14.7)--(2.5)(48.9) Other costs/income(12.0)(3.0)(18.0)(32.8)(0.7)(2.3)(68.8) 2005 Profit41.32.816.019.01.71.9 82.7 2004 Profit44.30.711.215.81.02.775.7 Hotels - Analysis by Contract Type Total ManagedLivingWell No. of hotels544715410938 n/a402 No. of rooms14,6509,90534,19834,4789,672n/a102,903 Owned Fixed Lease Contingent Lease £m Franchise Half year to 30 June

46. 45 Geographical Revpar by Ownership Type Like for Like Hotels, Constant Currencies – First half Owned & Fixed Lease Contingent LeaseManaged UK0.8%3.4%5.9% Europe & Africa7.8%9.6%7.0% Middle East & Asia Pacific0.0%7.5%11.9% Americas6.5%19.6%18.3% Total4.7%8.4%10.8%

47. 46 Yield Premium - Hilton vs London Market Market Source: PKF Hotel Consultancy Services Market is 8 competitor chains - Marriott International, InterContinental, De Vere, Millennium & Copthorne, Thistle, Le Meridien, Whitbread, Sheraton Cumulative Year to Date Revpar Premium

48. 47 Yield Premium - Hilton vs UK Provincial Mkt Market Source: PKF Hotel Consultancy Services Market is 8 competitor chains - Marriott International, InterContinental, De Vere, Millennium & Copthorne, Thistle, Le Meridien, Whitbread, Sheraton Cumulative Year to Date Revpar Premium

49. 48 Betting & Gaming - Revenue (1) Includes FOBT revenue, year on year increase in machines revenue £643.4m UK Retail (1) 4,750.94,065.116.9% Ireland & Belgium180.4160.912.1% Telephone Betting341.4266.028.3% eGaming424.6281.950.6% Vernons14.515.2(4.6)% Betting & Gaming5,711.84,789.119.3% 2005 £m 2004 £m Variance B(W) Half year to 30 June

50. 49 Breakdown of Lease Commitments Fixed Lease £m Minimum Guarantee £m Total £m Hotels70.580.8127.4278.7 Betting40.2--40.2 Total110.780.8127.4318.9 Also circa £16m other operating lease commitments Forecast land and buildings full year lease commitments for 2005 Contingent Lease £m Forecast contingent commitments are based on 2005 forecast results

51. 50 Taxation Normal tax charge: Tax charge at 20% on profit before tax and non-trading items 38.4 Non-trading tax charge: Tax charge at 30% on finance income from: Unrealised gains on derivatives 1.5 Profit on sale of hotels2.4 Total tax charge42.3 £m

52. 51 Finance costs Derivatives financial instruments are used to hedge interest rate and currency exposures. IAS 39 dictates whether changes in the fair value of these instruments can be matched in the income statement by changes in the fair value of the item being hedged. Where they cannot be matched, or do not fully match, the unmatched gain or loss represents a timing difference that will reverse over the life of the financial instruments. Therefore, the gains arising on these derivatives in the period have been excluded from the Group’s adjusted profits to better reflect underlying performance. * IAS 39 applied from 1 January 2005 2005* £m 2004 £m Variance B(W)