Brian Wallace Group Finance Director and Deputy Chief Executive

1
Brian WallaceGroup Finance Directorand Deputy
Chief Executive
2
Hilton Group plc - Summary of Performance
6 months to 30 June 2002m
6 months to 30 June 2001(1)m
Variance B(W)
Hotels 97.8 126.3 (22.6) Worldwide
Betting 76.5 62.6 22.2 Disposal
businesses - 1.2 Central costs and
income (6.6) (6.2) Operating profit
(2) 167.7 183.9 (8.8) Interest (37.7) (39.6) 4.8
Profit before tax (2) 130.0 144.3 (9.9) Effecti
ve tax rate (2) 22.0 21.1 EBITDA
(2) 237.7 239.3 (0.7)
(1) Restated for the impact of FRS 19 (2) Before
goodwill amortisation and exceptional items
3
Hotels - Like for Like Profit (1)
2001m
2002 m
change
Reported profit 97.8 126.3 (22.6) Scandic
profit (16.6) (2.7) Comparable
profit 81.2 123.6 (34.3) Royal Bank of Scotland
rent 9.5 6.7 Disposals / new openings (1.0) (2.7)
Foreign exchange (0.6) - Like for like
profit 89.1 127.6 (30.2)
(1) Before goodwill amortisation and exceptional
items
4
Hotels Worldwide Occupancy,Rate and RevPAR
Performance vs 2001
Like for Like Hotels, Constant Currencies
Occ growth
Rate growth
RevPAR growth
5
1.1
0
(5)
(4.3)
(4.3)
(5.6)
(5.5)
(7.5)
(10)
Jan
Feb
Mar / Apr
May
June
July
Including Scandic March / April have been
combined to avoid the distortion caused by the
timing of Easter
5
Hotels Worldwide RevPAR by Ownership Type
Like for Like, Constant Currencies
First half RevPAR growth 2002 vs 2001
0

• First half RevPAR growth 2002 vs 2001 split by
  owned properties, fixed lease, contingent
  leaseand management contract
• Includes Scandic in2001 although it wasonly
  consolidated from11th June 2001

(0.8)
(2)
(4)
(6)
(8)
(8.2)
(8.3)
(10)
(10.0)
(12)
Fixed lease
Owned
Contingent lease
Managed
6
Hotels - Cost Management
Like for Like
m

• Revenue decrease (61.1)
• GOP decrease (1) (36.3)

Incremental conversion 40.6
Rental and owners return 2.6 Rates (2.4) Insurance
and other (1.8) Foreign exchange (0.6) (2.2)
Operating profitdecrease (1) (38.5)
(1) Before exceptional items and goodwill
amortisation Excludes Scandic
7
UK Hotels RevPAR Performance vs 2001
Like for Like Hotels
5
Provinces
London 5 star
London 4 star
Total UK
0
(5)
(10)
(15)
(20)
Jan
Feb
Mar / Apr
May
June
July
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
90
18
RevPAR ()
Premium
Hilton RevPAR 2002
16
The Market RevPAR 2002
80
14
Hilton RevPAR Premium 2002
12
70
10
8
60
6
50
4
Jan
Feb
Mar
Apr
May
June
Market Source PKF Hotel Consultancy Services
9
France, Germany, BeneluxRevPAR Performance vs
2001
Like for Like, Constant Currencies
0
(5)
(10)
(15)
(20)
(25)
Benelux
France
Germany
(30)
Jan
Feb
Mar / Apr
May
June
July
Including Scandic March / April have been
combined to avoid the distortion caused by the
timing of Easter
10
Scandic - Occupancy, Rate and RevPAR Performance
vs 2001
Like for Like, Constant Currencies
5
Occ growth
Rate growth
RevPAR growth
2.5
0
(1.9)
(0.7)
(5)
(5.4)
(5.9)
(10)
(10.2)
(15)
Jan
Feb
Mar / Apr
May
June
July
March / April have been combined to avoid the
distortion caused by the timing of Easter
11
Scandic - Financial Update
Profit Impact m
Like for like hotels trading (3.9) Openings /
closures / major refurbishments (3.5) Integration
synergies 5.8

• Integration synergies in excess of 10m on an
  annualised basis

12
Stakis - Post Acquisition Review

• Successful integration
• Cost savings exceeded
• Transformed UK market position
• Returns held back by 11th September and economic
  slowdown

13
Worldwide Betting
Turnover
Operating Profit (1)
2002 m
2001 m
2002 m
2001 m
Retail Betting 1,353.3 933.2 64.1 58.0 Telephone
Betting 193.8 125.8 4.7 1.6 eGaming 192.3 62.8 5.1
0.2 Vernons 15.1 15.3 2.6 2.8 Worldwide
Betting 1,754.5 1,137.1 76.5 62.6
(1) Before goodwill amortisation and exceptional
items
14
Gross Win by Channel
2002 Gross win - 319.9m
2001 Gross win - 295.5m
5
5
4
8
87
91
European Retail
Telephone Betting
eGaming
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)
80
Trendline (growth due to zero deduction)
Actual growth
Growth due to zero deduction
60
40
20
0
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
June
16
Telephone Betting
2002 m
2001 m
Turnover 193.8 125.8 Gross win 15.0 14.6 Gross
win margin 7.7 11.6 Operating
profit 4.7 4.6 Average stake per call
() 83.26 66.21 No. of calls (000s) 2,264 1,840 A
ctive customers (000s) 87.7 80.2

• Single account proposition across telephone,
  online and interactive TV
• Voice recognition on trial during World Cup

17
eGaming
2002 m
2001 m
Turnover 192.3 62.8 Gross win (1) 26.8 10.4 Gross
profit (2) 24.9 10.2 Gross profit
(2) 12.9 16.2 Operating profit 5.1 0.2 Active
customers (000s) (3) 179.4 83.3

• eGaming now has over 400,000 registered customers

(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
m
45
41m
40
35
World Cup
30
25
23m
20
14m
15
64
10
5m
5
Euro 2000
0
June 2000
June 2001
June 2002
19
eGaming Sportsbook
First Half Turnover by Country
2002
2001
4
10
1
6
32
49
37
61
UK
Far East
Europe
Other

• 169 growth in sportsbook turnover year on year

20
Hilton Group plc - Cash Flow
2002 m
2001 m
Opening net borrowings (1,473.9) (1,374.3) Cash
inflow from operating activities 211.8 193.9 Inter
est, tax and dividends paid (132.2) (134.5) Free
cash flow 79.6 59.4 Capital expenditure (85.2) (94
.6) Free cash flow after capex (5.6) (35.2) Procee
ds from asset sales 7.7 363.8 Acquisitions /
disposals 3.5 (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)
(1) Includes 48.6m adverse exchange (2001
3.1m favourable exchange)
21
Hilton Group plc - Analysis ofCapital Expenditure
2002 m
Hotels
Sao Paulo 11.6 Gatwick 9.9 Cologne - Scandic
new build rebrand 6.2 Syndhaven - Scandic
rebrand 2.7 Barcelona 2.7 Kalastajatorppa -
refurbishment 2.4 Zurich 2.0 Other (all under
2m) 21.9 Total Hotels 59.4 Total
LivingWell 5.5 64.9
Worldwide Betting
BS 2000 EPOS system 1.6 Numbers
terminals 1.1 eGaming / Telephone
betting 3.9 Other (including acquisitions / new
licences 1.8m, relocations 2.9m, refurbs /
extensions 3.1m) 13.7 20.3 85.2
Total
22
Treasury

• Successful bond issues
• - Euro 500 million 6.5 due July 2009
• - Sterling 250 million 7.125 due July 2012
• 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
• Fixed interest rates on 50 of gross debt for a
  weighted average term of 3 years
• Foreign currency assets hedged by borrowing
  inforeign currencies

23
David MichelsGroup Chief Executive
24
Hilton Group plc
25
Revenue Per Available Room - Like for Like
First Quarter
Second Quarter
Six Months to June
2002
2001
Growth
2002
2002
2001
Growth
2001
Growth
Hilton branded
68.3 48.0 55.6
London Provinces Total United Kingdom
77.8 49.0 59.7
(12.2) (2.0) (6.9)
74.0 51.5 59.8
85.6 52.9 65.0
(13.6) (2.6) (8.0)
71.2 49.8 57.7
81.7 51.0 62.4
(12.8) (2.4) (7.5)
42.2 43.9 42.4 46.0 28.8 41.3
47.6 44.7 47.2 49.5 32.1 44.8
(11.3) (1.8) (10.2) (7.1) (10.3) (7.
8)
55.1 42.7 48.7 51.4 34.0 46.7
58.5 41.3 52.1 53.7 33.4 48.3
(5.8) 3.5 (6.5) (4.3) 1.8 (3.3)
48.7 43.3 45.6 48.7 31.4 44.0
53.2 43.0 49.7 51.6 32.8 46.5
(8.4) 0.8 (8.2) (5.7) (4.2) (5.4)
Europe Africa Middle East Asia Pacific The
Americas Total Hilton Scandic branded Total Hotels
All at constant currencies, including a full 6
months of Scandic in 2001
26
Capex
1999 m
2000 m
2001 m
Forecast 2002 m
Hotels 214 278 144 139 Worldwide
betting 30 40 40 53 Major property purchases 84
147 - - Capital expenditure 328 465 184 19
2 Disposals - hotels (151) (13) (355) 177 452
(171)
Acquisitions (Stakis and Scandic)
Cash 461 - 454 Shares 882 - 165
Hotels - Property net book value 2.5bn 2.8bn
2.6bn
Potential sale and leaseback deal
27
Hilton International - Property
Net Book Value movement over 4 years
1999
2000
2001
2002
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
28
Scandic
29
Branding
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
30
LivingWell
Current Membership
UK 123,600 International 16,021 Total 139,621
31
Half Year Shop Performance - UK and Jersey
1996
1997
1998
1999
2000
2001
2002
Average numberof shops PBIT m 29.1 37.1 43.3 3
4.7 36.1 48.3 58.1 PBIT pershop
k 15.9 19.6 23.0 18.2 19.2 25.7 30.8
1,831 1,892 1,892 1,910 1,879 1,883 1,884
N.B. Excludes SIS contribution
32
UK Shops -Gross Profit (1) Product margins -
First Half
Average 97 - 00 (2)
2002
2001 (2)
2000 (2)
Horses 13.5 14.7 12.7 12.9 Greyhounds 17.2 16
.8 17.2 15.7 Football (3) 15.5 23.2 17.8 15.
9 Sports 14.2 12.8 10.7 10.7 Numbers 24.4 2
3.3 24.3 26.1 Average 14.9 15.9 14.2 14.0
(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
• EPOS drives improved efficiency, the new screen
  system and Fixed Odds Betting Terminals (FOBTs)
• FOBTs averaging 3,900 p/w per terminal
  sincenew bets introduction two months ago
• Turnover 50 this year vs last

34
Budd Review and the Casino Business
35
Telephone Betting
Year on Year Turnover Growth
60
55
50
40
29
30
18
20
10
6
0
1999 vs 1998
2000 vs 1999
2001 vs 2000
2002 HY vs 2001 HY
36
eGaming Gross Win
m
30.0
26.8
25.0
20.0
15.9
15.0
10.4
10.0
5.0
2.8
0.3
0.0
1st half 2000
2nd half 2000
2nd half2001
1st half2002
1st half2001
37
eGaming
Sportsbook
Casino
Poker
(Internet only)
Registered players 392,000 65,000 6,400 Active 130
,000 28,000 2,500 Currencies 15 15 15 stake per
bet / play 19.17 10.26 35 Languages 11 11 1
(Played since 1 Jan 2002)
(Average pot)
38
Poker - Average Rake Per Week
k
70
61
60
56
48
50
40
29
30
20
10
0
May
June
July
August to date
39
World Cup 2002
Internet and Interactive TV Betting
Total number of bets 1.2 million Turnover 21.6
million Gross win 2.5 million Total number
ofnew customer registrations 45,000 of
business non-UK 68
40
Upside / Opportunities
Hotels Rebound / RevPAR PBIT increase Peer /
Yield premium to rise New income stream from
midmarket resorts
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