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Strategy and Progress

Our Strategic Priorities

We have gone through some big changes in recent years and have laid strong foundations, but there’s more to do.
Our approach is to make Ladbrokes the sports betting expert of choice for the recreational customer. In other words,
success will come from getting back to what we know best – being a great bookie.

Introduced in 2015, our three-year organic plan has given the business a clear set of priorities and goals through to 2017.
At the same time, we are moving forward with an aspiring merger plan with Coral Group.

Our organic plan

We have identified four key priorities, each backed by clear investment priorities:

1. Grow our UK recreational customer base across Retail and Digital
    •    We are investing an additional £15m-£20m per year on marketing to protect the Ladbrokes name comes through
loud and clear, across all media – but particularly where our amusement customers are
    •    We are focusing on football
    •    We are developing a clear, steady message about our brand
    •    We are investing selectively in cost-effective sponsorships

2. Develop our multi-channel offer in the UK
    •    We are applying ‘One Ladbrokes’ – a plan to ensure that wherever, whenever and however a customer wants to bet,
we are their bookmaker of choice
    •    We are making more of our digital products available in shops
    •    We are giving colleagues the understanding and support they need to moving and maintain our customers

3. Increase footfall in UK Retail
    •    To make the most of our investments in marketing and multi-channel we need to expand the number of customers
visiting our shops. To do this:
    •    We are investing in the fabric of our shops?Around 60% of our shops have seen no investment for seven years.
We’ll be investing up to £25m-30m over three years to improve them, wherever this will have the biggest influence.
    •    We are investing in football?This is our most popular product with over-the-counter customers, but we need to move faster
when it comes to improving our football offer. We will achieve this through better marketing and by investing more in self-service
betting terminals.  We have invested and had 6,700 across the estate at the end of 2015.

4. Grow market share in Australia
Australia is a fast growing market that presents us with a great opportunity. To address this:
    •    We are making significant new investments in marketing and product innovation to develop our market share Down Under.

While we are committed to these investments, we’re also applying lessons learnt from the past. If these actions do not pay off
we will stop them and re-invest elsewhere.
An investment programme of this scale will have an influence on profits in the short term. We realize this and are funding
investment through higher gearing and lower dividends.
We have two priorities that remain unchanged and non-negotiable. First, maintaining our absolute commitment to responsible
gambling. Second, maintaining the health and safety of Ladbrokes colleagues.
These priorities will continue to underpin everything we do.

Our proposed merger

In 2015 we announced a proposed merger with Coral Group. This would enable us to create a market-leading business faster.
It is a potentially game-changing occasion.
A combined business would be even more valid at:
    •    Driving online growth
    •    Creating a more efficient, sustainable and cash-generative retail estate
    •    Extending our international presence in regulated territories
We plan to continue operating both brands on the high street and offering our customers the best possible service. There will be
synergies as a result of this proposed merger, including joint back office systems and consolidation of head office teams.
These will be decided in due course.
The merger is currently being reviewed by the Competition and Markets Authority (CMA) and we expect a decision in mid 2016.
Regardless of this decision, we will be driving forward with our organic plan.