1. Preliminary Results Presentation 26 February 2004

2. Sir Ian Robinson Chairman

3. Brian Wallace Deputy Group Chief Executive and Group Finance Director

4. Hilton Group plc - Summary of Performance (1) Before goodwill amortisation and exceptional items 2003 £m 2002 £m Variance B(W) Hotels146.5212.1(30.9)% Betting214.1149.343.4% Central costs and income(13.6)(13.3)(2.3)% Operating profit (1) 347.0348.1(0.3)% Interest(74.6)(76.7)2.7% Profit before tax (1) 272.4271.40.4% Effective tax rate (1) 22.0%22.0% EBITDA (1) 485.3486.1(0.2)% EPS (1) 13.4p13.4p0.0% Year to 31 December

5. Exceptional Items Operating: Impairment of assets and investments11.3 Non-operating: Profit on disposal of Pandox(3.2) Losses on disposals including provisions20.9 17.7 Total charge29.0 Exceptionals £m

6. Hotels - Like for Like Profit (1) Before goodwill amortisation and exceptional items 2003 £m 2002 £m Variance B(W) Reported profit (1) 146.5212.1(30.9)% Sale and leaseback rent24.68.4 Sale and leaseback associate(6.9)(2.5) Closed for refurbishment2.9(4.0) Disposals / new openings1.43.7 Foreign exchange(5.9)- Like for like profit (1) 162.6217.7(25.3)% Year to 31 December

7. Hotels Worldwide Revpar 2003 vs 2002 Like for Like Hotels, Constant Currencies Including Scandic March / April have been combined to avoid the distortion caused by the timing of Easter

8. Worldwide Revpar by Ownership Type Like for Like Hotels, Constant Currencies Revpar growth 2003 vs 2002 - first half, second half, full year H1H2FY H1H2FY H1 H2 FY

9. Hotels - Cost Management (2nd half) Like for Like, Constant Currencies (1) Before goodwill amortisation and exceptional items Total £m Increasing revenue £m Declining revenue £m Second Half Revenue movement25.374.1(48.8) GOP Movement (1) 8.145.8(37.7) Incremental conversion32.0%61.8%22.7% Rental & Owners return(24.6) Depreciation / FF&E2.6 One off costs / credits(7.4) Accounting reallocations(2.7) Operating profit decline (1) (24.0)

10. UK Hotels Revpar 2003 vs 2002 Like for Like Hotels March / April have been combined to avoid the distortion caused by the timing of Easter (20)% (15)% (10)% (5)% 0% 5% 10% JanFebMar/AprMayJuneJulyAugSepOctNovDecJan London Provinces Total UK

11. Europe (Hilton brand) - Revpar by country Like for Like, Constant Currencies, First Half, Second Half, Full Year H1 H2 FYH1H2FYH1H2FY

12. Scandic Revpar 2003 vs 2002 March / April have been combined to avoid the distortion caused by the timing of Easter Like for Like Hotels, Constant Currencies, Scandic Acquired Revpar growth 2003 vs 2002

13. Scandic Performance 2003 vs 2002 (a) At constant currencies (b) Includes support office costs not allocated to individual hotels and foreign exchange 2003 Actual £m Other (b) £m Revenue 461.46.4(18.3)50.5500.0 GOP 188.11.2(18.1)13.5184.7 Inc. conversion18.8%1.1% Profit 34.51.4(14.2)(1.9)19.8 Like for like revenue gainers (a) £m 2002 Actual £m Like for like revenue losers (a) £m Year to 31 December

14. Worldwide Betting UK Retail575.1460.8173.1113.2 Ireland & Belgium67.660.811.511.2 Telephone Betting - excluding high rollers30.526.610.67.4 - high rollers(1.6)0.8(1.2)0.7 28.927.49.48.1 eGaming63.753.414.211.3 Vernons20.220.05.95.5 Worldwide Betting755.5622.4214.1149.3 Gross Win 2003 2002 £m (1) Before goodwill amortisation and exceptional items Operating Profit (1) 2003 2002 £m Year to 31 December

15. UK Retail (1) Excluding machines 2003 £m 2002 £m Variance B(W) Gross win 575.1460.824.8% Duty / Gross profits tax(84.4)(67.1) Other costs(317.6)(280.5) Operating profit173.1113.252.9% Staff costs per slip32.67p30.94p5.6% Stake per slip (1) £8.37£8.063.8% Year to 31 December

16. Telephone Betting (excluding high rollers) (1) Active customers are those who placed a bet during the period 2003 £m 2002 £m Variance B(W) Gross win 30.526.614.7% Gross profits tax(4.6)(4.0) Other costs(15.3)(15.2) Operating profit10.67.443.2% Average stake per call£78.94£81.92(3.6)% Salary cost per call67.8p74.0p8.4% No. of calls (000’s) 5,995 4,73626.6% Active customers (000’s) (1) 117.0103.612.9% Year to 31 December

17. eGaming 2003 £m 2002 £m Variance B(W) Gross win 63.753.419.3% Gross profits tax(3.2)(3.5) Other costs(46.3)(38.6) Operating profit14.211.325.7% Year to 31 December (1) Active customers are those who placed a bet during the period Active customers (000’s) (1) Sportsbook20616822.6% Casino804673.9% Sportsbook registrations (000’s)26720927.8%

18. Hilton Group plc - Cash Flow 2003 £m 2002 £m Cash inflow from operating activities 501.9455.7 Interest, tax and dividends paid(261.5)(248.7) Free cash flow240.4207.0 Capital expenditure(189.9)(188.3) Free cash flow after capex50.518.7 Proceeds from asset sales20.0341.2 Acquisitions / disposals40.7(22.1) 111.2337.8 Exchange and other movements (1) (94.1)(28.7) Net borrowings movement17.1309.1 Opening net borrowings(1,164.8)(1,473.9) Closing net borrowings(1,147.7)(1,164.8) Year to 31 December (1) Includes £96.0m adverse exchange (2002: £28.6m adverse)

19. Analysis of 2003 Capital Expenditure £m Hotels Acquisition linked development: Luxembourg (hotel acquisition)18.2 HK Copenhagen (acquisition)12.9 Sydney (refurb)26.4 Dusseldorf (refurb)18.2 75.7 Other68.1 Total Hotels143.8 LivingWell3.5 147.3 Worldwide Betting Shop transmission system and TVs11.8 Development 14.6 Other (including EPOS £1.7m, terminals £1.7m, Ireland £2.4m)10.4 eGaming / Telephone betting5.8 42.6 Total Group189.9

20. Brian Wallace Deputy Group Chief Executive and Group Finance Director

21. David Michels Group Chief Executive

22. Ladbrokes Trading “Trading in the first six weeks has been good in all three areas”

23. Ladbrokes Shop Performance – UK & Jersey 19992000200120022003 Average number of shops PBIT £m78.878.686.1113.0175.2 PBIT per shop £k41.341.845.759.793.6 1,9101,8791,8821,8931,872 Over the counter gross win grew by 9% in 2003

24. UK Shops / New Competition

25. FOBTs – Voluntary Code of Conduct Max four machines/terminals per shop Max £500 payout per spin Max stake of £15 chip and £100 per spin Minimum betting time of 20 seconds when betting with existing credits Takes effect 1 April, 2004

26. eGaming: Trading for the Last Four Months Operating Profit

27. Poker & Games

28. Ladbrokescasino.com

29. Betting Exchanges

30. Telephone Betting

31. Resort / Entertainment Casinos

32. Brand

33. Vernons and LivingWell Profits up 51% Profits up 7%

34. Hotels Trading

35. Scandic

36. Franchising

37. Hilton Franchising

38. Conrad

39. Property

40. Pipeline Growth Openings 2004 Alexandria Green Plaza Newcastle Gateshead, England Phuket, Thailand (Conrad) Hurghada Long Beach, Egypt Shenzhen, China Miami, USA (Conrad) Jeddah Palace, Saudi Arabia Cebu, Philippines Bali, Indonesia (Conrad) Agra, India (Trident Hilton) Bhubaneshwar, India (Trident Hilton) Chennai, India (Trident Hilton) Cochin, India (Trident Hilton) Jaipur, India (Trident Hilton) Udaipur, India (Trident Hilton) Hilton Towers Mumbai, India Santo Domingo, Dominican Republic Paris Arc de Triomphe, France Dubrovnik, Croatia Kuala Lumpar, Malaysia Hilton Sydney, Australia Hilton Barbados, Caribbean Openings 2005 Valencia, Spain Venice, Italy Sharm Nabq, Egypt Casablanca Airport, Morocco Denarau, Fiji Warsaw, Poland Evian, France Hilton Malabo, Equatorial Guinea Hilton Seychelles Resort, Seychelles Hilton Beirut, Lebanon Hilton d'Haiti, Haiti Tahiti Papeete, Tahiti Tahiti Bora Bora, Tahiti Tahiti Rangiroa, Tahiti Zhuhai, China Shenyang, China

41. Internet / Booking Patterns Gross Reservations through Hilton Brand websites Iraq War Commences SARS

42. ‘Our Best Rates. Guaranteed’

43. BDRC Survey Prompted89%1st90%1st95%1st94%2nd Unprompted51%1st52%1st42%1st69%2nd 1st Choice9.8%1st15.2%1st11.5%1st15%2nd 1st or 2nd Choice17.9%1st25.7%1st21.9%1st28%2nd 12.9%4th15.8%4th22%1st26%2nd 74%2nd73%1st57%7th73%4th 561st551st51.52nd532nd Brand Usage* Brand Loyalty** Brand Ranking Index*** Measure Awareness Brand Preference EuropeUKAsia PacificMiddle East * Number of business travellers who have used the brand in the last 12 months ** Own guests who rate the brand 1 st or 2 nd choice or are “happy to use” *** Composite of all BDRC’s key brand measures

44. Hotel Profit Breakdown 2003

45. Preliminary Results Presentation 26 February 2004

46. Appendices

47. Turnover544.2269.8759.81,087.650.22,711.6 Gross operating profit182.298.9265.0410.319.9976.3 Less: Rental & owners return(8.7)(65.8)(173.1)(374.5)(3.8)(625.9) Depreciation(50.8)(22.4)(29.0)-(4.6)(106.8) Other costs / income(40.1)(6.4)(28.1)-(4.1)(78.7) 2003 Profit82.64.334.835.87.4164.9 2002 Profit110.023.454.832.84.9225.9 Hotels - Analysis by Contract Type Total ManagedLivingWell No. of hotels6849150125n/a392 No. of rooms17,16010,33732,53838,654n/a98,689 Owned Fixed lease Contingent lease £m

48. Geographical RevPAR by Ownership Type Like for Like Hotels, Constant Currencies Owned & fixed lease Contingent leaseManaged UK(3.1)%(3.7)%(2.7)% Europe & Africa(8.0)%2.1%1.4% Middle East & Asia Pacific11.6%19.1%(1.7)% Americas(15.3)%52.7%7.5% Total(5.8)%3.2%(0.1)%

49. Hotels - Like for Like Profit (2nd half) (1) Before goodwill amortisation and exceptional items 2003 £m 2002 £m Variance B(W) Reported profit (1) 90.4114.3(20.9)% Sale and leaseback rent13.08.4 Sale and leaseback associate(3.2)(2.5) Closed for refurbishment1.4(2.1) Disposals / new openings(1.8)2.6 Foreign exchange(3.1)- Like for like profit (1) 96.7120.7(19.9)% Second Half

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

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

52. Worldwide Betting - Revenue (1) Includes FOBT turnover, year on year increase £3,025.4m 2003 £m 2002 £m Variance B(W) Year to 31 December UK Retail (1) 6,001.22,755.6117.8% Ireland & Belgium298.7243.822.5% Telephone Betting476.0393.221.1% eGaming462.3390.318.4% Vernons28.929.0(0.3)% Worldwide Betting7,267.13,811.990.6%

53. eGaming Gross Win 20022003

54. Breakdown of Lease Commitments Fixed lease £m Minimum guarantee £m Total £m Hotels83.176.4102.9262.4 Betting33.8--33.8 Property / Centre6.2--6.2 Total123.176.4102.9302.4 Also circa £23m other operating lease commitments Forecast land and buildings lease commitments for 2004 Contingent lease £m Forecast contingent commitments are based on 2004 forecast results

55. Conversion to IFRS Comprehensive, ongoing programme to achieve conversion, working closely with our auditors Substantial progress made to date, but a number of standards only issued December 2003 and more expected before March 2004 cut off IASB also expected to issue further standards during 2004 and 2005, early adoption will be considered case by case In addition, IFRIC expected to issue interpretations mandatory for 2005 Based on work to date, major impacts on conversion in 2005 are expected to be due to differences in accounting for:  Derivatives, hedge accounting and convertible bond  Goodwill, brands and licences  Fixed assets - annual assessment of residual values  Share based payments  Pensions and employee benefits  Deferred tax  Segmental reporting, presentation and disclosure NB. Comments are based on information currently available and reflect the findings of our conversion project to date. They should not be taken as a comprehensive or complete indication of the impacts that conversion to IFRS might have on the Group.