About Ladbrokes

The name Ladbrokes is synonymous with betting and gaming: the hallmark of a leading betting brand. The Company, the origins of which date back to 1886, employs over 13,000 people in the UK and over 14,000 in total. It is one of the world's leading betting and gaming enterprises. Ladbrokes is a market leader in retail bookmaking in the UK, Ireland, Belgium and Spain where it operates a combined total of more than 2,800 betting shops. In addition to its extensive retail presence Ladbrokes offers thousands of betting markets on a daily basis via the Internet, mobile and telephone. Ladbrokes has underperformed in the digital space in recent years, particularly given the ongoing strength of its brand. To address this it launched a new online Sportsbook in 2013 and in May of that year a groundbreaking partnership with Playtech became operational. Integration of Playtech's product continued throughout the year with the launch of the Vegas tab and Mobenga mobile service. In early 2014 migration to Playtech's iPoker and Live Dealer services progressed the integration. With further product launches scheduled for Q2 2014 as well the delivery of Playtech's IMS back office and a single wallet Ladbrokes digital and mobile services will be in a significantly enhanced competitive position ahead of the World Cup 2014.

Strategy

Our business objective is to build an ‘e’ enabled international betting and gaming business.

Below are the five critical success factors which the business has prioritised in order to realise its strategic ambition and grow shareholder value:

Retail excellence
Retail betting has evolved to become a genuine leisure experience over recent years in both our core market and overseas. We strive to innovate continually, providing customers with a differentiated product offer, whilst optimising both margin and operational efficiency.

Digital capability
The digital betting and gaming market continues to grow and is becoming increasingly competitive. We aim to provide flexible technology which allows us to deliver the broadest range of products to customers.

Pricing, trading and liability management
The utilisation of a proprietary trading platform, enhancement of algorithims and increasing use of automated trading tools enables us to improve liability management and reduce earnings volatility.

Customer and brand
Ladbrokes is still the most recognised betting brand in the UK. We invest to evolve the brand with an emphasis on excitement. The development of our offer, be it in Digital or Retail, is centred around improving the experience of customers.

Regulatory leadership
The continued evolution of tax and regulation is a key influence on the development of our business. Ladbrokes seeks to play a lead role in ensuring that the Government and all regulatory authorities fully understand our industry and its significant contribution to the economy, employment and taxes.

Retail excellence

Progress in 2013

121 new shops opened in the UK delivering good returns
1,400 Self Service Betting Terminals (SSBTs) rolled out across the UK Retail estate along with Sky TV and Wifi in every shop
Market leaders in Belgian retail betting market
Continued expansion in Spain

Priorities in 2014

Optimisation of the UK Retail estate to improve quality of earnings
Improve performance of SSBTs
Successful rollout of 9,000 new machine cabinets across the UK Retail estate
Evaluation of our offer in Belgium with the introduction of SSBTs and virtual products
Further growth in Spain through a growing presence in newly regulated regions with Catalunya a priority for 2014

Customer and brand

Progress in 2013

Ladbrokes brand still the most recognised betting brand in UK and consistently the most used betting brand in the UK
Launch of Ladbrokes Live, improved in-store presentation of product, rolled out across Retail estate
Launch of Ladbrokes brand in Australia where research showed 25% awareness level despite having no physical presence in the country previously

Priorities in 2014

Launch of new advertising campaign to further enhance Ladbrokes brand appeal
Re-energise of our Odds On loyalty card offer
Maintain position as number one betting brand in UK

The Ladbrokes Vision and Values

Our values provide us with a framework within which everyone working in Ladbrokes, in shops, stadia, contact centres and offices, can feel part of something bigger. This sense of common purpose and a Ladbrokes way of doing things is part of our drive towards a culture of excellence, in which all of our 16,000 people are aligned in one direction to deliver success. Our values also help to bring energy and excitement into our environment, making Ladbrokes a better place to work.

Our Vision

Having a clear vision is critical to business success. Ladbrokes knows where we want to be and how to get there. We have a clear sense of purpose and understand that we are on a journey, with goals along the way. Our vision is to be the e-enabled international betting and gaming business. This means using proprietary technology to distribute our products, service our customers and gain access to new territories and distribution channels. It also means leveraging the tremendous power of the Ladbrokes brand to drive us forward in a multi-channel marketplace.

Our Core Values

We have developed a core set of values to provide a framework for us to deliver on our vision. These values were defined by people working at every level and in every location of our business and guide us in everything we do. As such, they truly represent the spirit of working at Ladbrokes in terms of who we are and what we aspire to be. These values are represented by four core themes – Buzz; adding energy and excitement to the Ladbrokes experience, for ourselves and our customers, Bold; having the confidence to go beyond the everyday. Team; understanding and respecting the players in our team, working towards one goal and Winners; striving to get things right and doing things better, faster and with more imagination.