Sir%20Ian%20Robinson%20Group%20Chairman

1
Sir Ian RobinsonGroup Chairman
2
Brian WallaceGroup Finance Director
3
Hilton Group plc - Summary of Performance
Year to 31st December 2001m
Year to 31st December 2000 m
Variance
Hilton International 255.3 268.0 (4.7) Worldwide
Betting 113.5 92.3 23.0 Casinos disposal
businesses 2.8 22.6 Central costs and
income (12.4) (11.6) Operating profit 359.2 371.3
(3.3) Interest (79.0) (94.6) 16.5 Profit
before tax 280.2 276.7 1.3 Effective tax
rate 20.0 20.7
EBITDA 479.8 478.4 0.3
Before goodwill amortisation and exceptional
items
4
Hilton International - Like for Like Profit
2001m
2000 m

• Reported profit 255.3 268.0 (4.7)
• Scandic profit (33.9) -
• Comparable profit 221.4 268.0 (17.4)
• Royal Bank of Scotland rent 16.8 -
• Disposals / new openings (9.0) (11.0)
• Foreign exchange (1.0) -
• Like for like profit 228.2 257.0 (11.2)

Variance
Before goodwill amortisation and exceptional
items
5
Hilton International Worldwide Occupancy, Rate
and RevPAR Growths vs 2000
Like for Like Hotels, Constant Currencies

10
8.0
5
1.7
0
(4.2)
(5)
(10)
(11.4)
(15)
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Occ growth
Rate growth
RevPAR growth
6
Hilton International Worldwide Occupancy, Rate
and RevPAR Growths vs 2000/01
Like for Like Hotels, Constant Currencies

5
1.0
0
(5)
(4.7)
(7.3)
(10)
(10.6)
(11.7)
(14.3)
(15)
Aug
Sep
Oct
Nov
Dec
Jan
Occ growth
Rate growth
RevPAR growth
7
Hilton UK Occupancy Growth vs 2000/01
Like for Like Hotels

10
5
0
(5)
(10)
(15)
(20)
(25)
(30)
(35)
Aug
Sep
Oct
Nov
Dec
Jan
London 5 Star
London 4 Star
Provinces
8
Hilton UK Rate Growth vs 2000/01
Like for Like Hotels

10
5
0
(5)
(10)
(15)
(20)
Aug
Sep
Oct
Nov
Dec
Jan
London 5 Star
London 4 Star
Provinces
9
Hilton UK RevPAR Growth vs 2000/01
Like for Like Hotels

10
0
(10)
(20)
(30)
(40)
(50)
Aug
Sep
Oct
Nov
Dec
Jan
London 5 Star
London 4 Star
Provinces
Total UK
10
Hilton vs London Market - Cumulative Year to Date
RevPAR Premium
RevPAR
Premium
90
12
85
10
80
8
75
6
70
65
4
60
2
55
50
0
Aug01
Sep01
Oct01
Nov01
Dec01
Jul01
Jun01
May01
Apr01
Mar01
Feb01
Jan01
Dec00
Hilton RevPAR Premium
Hilton RevPAR
Market RevPAR
Market source PKF Hotel Consultancy Services
11
Hilton vs Provincial Market - Cumulative Year to
Date RevPAR Premium
RevPAR
Premium
10
60
9
58
8
56
7
54
6
52
50
5
48
4
46
3
44
2
42
1
40
0
Aug01
Sep01
Oct01
Nov01
Dec01
Jul01
Jun01
May01
Apr01
Mar01
Feb01
Jan01
Dec00
Hilton RevPAR Premium
Hilton RevPAR
Market RevPAR
Market source PKF Hotel Consultancy Services
12
Germany, France, Benelux RevPAR Growth vs 2000/01
Like for Like, Constant Currency

15
10
5
0
(5)
(10)
(15)
(20)
(25)
(30)
(35)
(40)
Aug
Jan
Dec
Nov
Oct
Sept
France
Germany
Benelux
13
Scandic - Financial Update
Acquisitionmodel assumptions
Latest view

• Cost synergies 8m 10m
• Debt funding cost 8 5.5
• Effective tax rate 20 0 - 10
• 2001 EBITDA - second half 41.4m 42.9m

14
Worldwide Betting Profit Comparison
Revenue
Profit
2000 m
2001 m
2001 m
2000 m
Retail Betting 2,037.5 1,867.5 102.4 94.6 Vernons
29.9 31.7 5.5 5.6 Telephone Betting 284.7 243.5
3.6 2.1 eGaming 188.2 68.6 2.0
(10.0) Worldwide Betting 2,540.3 2,211.3 113.5 9
2.3
Before goodwill amortisation and exceptional
items.
15
Betting Margins - UK Shops
1st Half
2nd Half
Total

• 15.9 14.2 14.9
• 2000 14.2 14.8 14.5
• Average 96-00 14.2 14.3 14.2

Adjusted for gross profits tax
16
eGaming Monthly Turnover
m
30
28m
20
10
8m
0
Jan 2001
Jan 2002
17
eGaming Sportsbook - 2001 Turnover by Sport
1
2
3
3
34
56
Football
Greyhounds
Horses
Basketball
Tennis
Others
Golf
18
eGaming Sportsbook - 2001 Football Turnover
2
3
5
9
38
10
13
20
English soccer
Spanish soccer
European tournaments
German soccer
International matches
Scottish soccer
Italian soccer
Other soccer
19
eGaming Sportsbook Turnover by Country
1
9
2
9
57
20
United Kingdom
Italy
Hong Kong
Thailand
Singapore
Others
Malaysia
20
Hilton Group plc - Exceptional Items
PL effectm
Cash effectm
Operating exceptional items Scandic integration
costs (24.5) (24.5) Amounts written off
tangible and intangible fixed assets and
investments (27.4) - Non-operating exceptional
items Profit on fixed assets Profit on sale of
UK hotels 29.6 342.6 Loss on disposal of other
tangible fixed assets (4.7) 5.4 Profit on
sale of non-European betting and gaming
businesses 1.5 18.4 Provision for losses on fixed
assets pending sale (6.5) - Discontinued
Profit on sale of investment properties
3.9 11.3 Total (28.1) 353.2
21
Hilton Group plc Cash Flow
2001m
2000m
Opening net borrowings (1,374.3) (1,336.8) Cash
inflow from operating activities 445.7 462.0 Inter
est, tax and dividends paid (267.3)
(276.7) Free cash flow 178.4 185.3 Capital
expenditure (187.7) (476.9) Proceeds from asset
sales 376.0 22.0 Acquisitions /
disposals (486.2) (244.4) (119.5) (25.2) Exchange
other movements 19.9 (12.3) Net borrowings
movement (99.6) (37.5) Closing net
borrowings (1,473.9) (1,374.3)
22
Hilton Group plc - Analysis of Capital Expenditure
m
m
Hilton International

Livingwell UK - major projects 14.1 Sao
Paulo 13.1 Zurich 6.8 Gatwick 6.0 Manchester
Deansgate 6.0 Chicago Drake 5.1 Other 93.7 144
.8 Betting Gaming BS 2000 EPOS System
9.4 Other 33.5 42.9 Total 187.7
23
David MichelsGroup Chief Executive
24
Hilton Group plc Key Issues

• Hotel RevPAR
• Scandic
• Horse race turnover and margin
• BHB/Levy Saga
• eGaming

25
Revenue Per Available Room - Like for Like
6 Months to June
Year to 31st December
6 Months to December
2001
2000
Growth
2001
2000
Growth
2001
2000
Growth
London 81.7 78.3 4.3 75.0 87.7 (14.6)
78.3 83.2 (5.8) Provinces 51.1 48.0 6.5
49.7 51.3 (3.0) 50.4 49.6 1.7 Total
UK 63.2 59.5 6.2 59.7 65.3 (8.6) 61.4
62.4 (1.6) Europe, Middle East Africa 47.9
47.7 0.4 44.2 49.8 (11.2) 46.1 48.3
(4.6) Asia/Australasia 50.4 47.9 5.2 55.2
56.2 (1.7) 53.3 52.8 0.9 The Americas
47.5 44.7 6.3 45.2 47.9 (5.6)
46.3 46.2 0.3 Total Hilton 52.0 50.0 4.0
50.3 54.5 ( 7.7) 51.3 52.2 (1.9) Scandic
Hotels 31.3
31.1 0.6 31.3 31.1 0.6
-
-
-
All at Constant Currencies
26
Openings and Closures 2001
Openings
Sales/Closures
Copenhagen Airport Adana Melbourne Airport
Sofia Rhodes Resort Sorrento Auckland Bangalore L
uxembourg The Trafalgar Jeddah Cairo Ras Al
Khaima Dubai Creek Port Sudan
St.Ermins Huddersfield Kuala Lumpur Stoke
onTrent Bath Waterside Newcastle Edinburgh
Belford Algiers Jerusalem
27
Pipeline Growth
Openings 2002
Openings 2003
Openings 2004
Chongqing, China Kuwait London Paddington Konya,
Turkey Cologne Narita, Tokyo Airport Seoul Cebu,
Philippines Sao Paulo Ras Sudr Sinai, Egypt Shark
Bay Resort, Egypt Alexandria La Defense,
Paris Linkoping Scandic Copenhagen
Sydhaven Scandic Stockholm Alvik Scandic
Bruges Conrad Dublin Conrad Bangkok
Newcastle Haiti Dubrovnik Copenhagen Beirut
Barrage Residence Royal Residences Jeddah Yarra
Valley Sharm Nabq Makkah Towers Scandic Trondheim
Lagos Berlin Moscow Munich Dornach Beirut Kuala
Lumpur Doha, Qatar Denarau, Fiji Tahiti
Papeete Tahiti Rangiroa Tahiti Bora Bora Conrad
Bali
28
Guest Satisfaction
1999
2001
2000
9
9
12
18
20
20
68
71
73
Completely or very satisfied
Fairly satisfied
Dissatisfied
Independent research carried out for Hilton
International, based on a sample of approximately
50,000 respondents per annum
29
Hilton Awards

• BDRC British Hotel Guest Survey Hotel Brand
  Performance in 2001 Awards
• - British Business Travellers Leading Choice
  Hotel Brand of the Year
• - Ranked No.1 for brand loyalty
• Business Traveller Magazine Awards UK
• - Best New Business Hotel Worldwide Copenhagen
  Airport
• - Best Hotel Chain in UK
• - Best Business Hotel in Western Europe London
  Hilton
• Business Traveller Magazine Awards Germany
• - Best Hotel Chain in Europe
• - Best Hotel Chain in Middle East
• - Best Hotel Chain Worldwide
• Hermes Awards, Paris
• - Best Customer Loyalty Programme Hilton
  HHonors
• - Best Wellness and Fitness Concept LivingWell

30
Capex
2000
2001
Plan 2002
1999
m
m
m
m
Hotels 214 278 144 112 Worldwide
betting 30 40 40 42 Major property purchases 84
147 - - Capital expenditure 328 465 184 15
4 Disposals - hotels (151) (13) (355) 177 45
2 (171)
Acquisitions (Stakis and Scandic)
Cash 461 - 454 Shares 882 - 165 Memo
goodwill on acquisition 739 - 597 Hotels
Property net book value 2.5bn 2.8bn
2.6bn
Potential sale and leaseback deal
31
Scandic Post Acquisition Result
Proformavs2000
2001
Occupancy 63.3 (3.1) Average Rate () 49.4
3.8 RevPAR () 31.3 0.6 GOP (m) 97.5
1.2 GOP conversion 42.6 2.7
32
Scandic Rebranding
Rebranded
To Rebrand 2002
Stockholm Malmo Gothenberg Helsinki Copenhag
en Linkoping
Hilton Vienna Danube Hilton
Innsbruck Hilton Brussels City Hilton
Bonn Hilton Bremen Hilton Dortmund Hilton
Karlsruhe Hilton Nuremberg Hilton London
Docklands Hilton Stockholm Slussen
33
LivingWell
Current Membership UK 123,784 International 15,2
05 Total 138,989
34
Branding
Hilton 467 hotels
Hilton 238 Hilton 229 Scandic 143 Hilton
Garden Inn 125 Conrad 12 Double Tree
151 Embassy Suites 168 Homewood Suites
104 Hampton 1,144 Conrad 12
HI
HHC
35
2001 Year End Performance - UK and Jersey
1995
1996
1997
1998
1999
2000
2001
Average number of shops PBIT
m 30.4 53.5 80.7 84.9 78.8 78.6 86.1 PBIT
perShop k 16.2 29.2 42.7 45.4 41.3 41.8 45.7
1,878 1,831 1,892 1,871 1,910 1,879 1,882
36
Betting Duty Modernisation - Turnover Increase

• Year on year 6.10.01 31.01.02 41.5
• Estimated real increase 30

UK shops only
37
Duty Modernisation
Horseracing - Where the duty cut has gone 6
October 2001 31 January 2002 Duty
2000/01 20.5m Duty 2001/02 9.9m 10.6m
m
10
8.4m
5
Customer returns increase
2m
Levy increase
0.2m
GP increase
0
38
Telephone Betting

• Profits normalised at 6.6m
• Returned to the UK post 6th October tax change
• New bet and call handling system installed
• Since 6th October turnover up 62
• Test voice recognition call system this year

39
Levy/BHB/Media and Data Rights/SIS

• Levy on gross profits from 1st April 2002
• BHB require bookmakers to sign commercial
  agreement of 1.5 of turnover for data and 1.0
  for pictures (plus VAT) by 1st May 2002
• OFT investigating potential abuse of monopoly
  position and bundling of rights by BHB/RCA/Jockey
  Club
• BHB vs William Hill at the ECJ over use of
  horseracing data
• SIS has supply contracts with 8,300 of 9,300
  potential betting shops

40
eGaming

• 2m PBIT achieved in 2001 ahead of forecast
• Customer volumes continue to grow rapidly

Since Launch
Registered 260,000 Active on Sportsbook 115,000
Active on Casino 27,000

• Available in 8 languages, 14 currencies with
  customers in 160 countries

41
eGaming

• Sportsbook turnover averaged 2.0m per week in
  2001, now 3.0m per week
• Chips purchased averaged 1.1m in 2001, 1.6m in
  December
• Balls turnover 0.5m per week
• Total eGaming turnover in 2001 reached 188m at
  13.0
• Ladbrokes brand ensures low customer acquisition
  costs
• Sportsbook provides vital click through to casino

42
eGaming

• Localised and tailored partnerships
• - Playboy
• - Scandinavia
• Digital TV
• - Ntl/ Telewest
• - Sky
• - attheraces
• Constant improvement and development
• - One account
• - Multi player poker
• - Progressive Balls
• Deal flow
• - International white label
• - Brand and activity partnerships