Sportech PLC

1
Sportech PLC Interim Results Presentation
September 2004
2
Highlights

• Six months of good progress platforms in place
  benefits to flow through.
• Resilient performance from established Soft
  Gaming business, particularly from football
  pools.
• Improved performance from Betting business,
  driven by strong casino growth and profit.
• Substantial investment in existing and new
  products and distribution channels to provide
  growth opportunities for Soft Gaming and Betting.

3
Financial Highlights

• Strong casino turnover growth
• Established Soft Gaming profit resilient,
  particularly football pools
• Betting3 gross win increased by 74
• Betting3 loss reduced by 38 to 1.0m

1 Before goodwill amortisation and exceptionals 2
Before goodwill, exceptionals and restructuring 3
Betting comprises sports betting and on line
casino
4
Summary Business Performance
5
Summary Cash Flow
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Soft Gaming

• Established Soft Gaming operating profits up to
  13.3m from 12.8m.
• Resilient performance from football pools, with
  operating profit of 12.9m (2003 13.0m).
• Rate of football pools turnover decline reduced
  to 12 (2003 14 like for like).
• Net profit margin improved by 3.5 to 32.
• Increased investment in interactive development
  with comprehensive ITV gaming service now in
  place.

7
Soft Gaming

• Major new initiatives to refresh the pools.
• Major marketing campaign (4m) underway
  investing in be lucky sub brand commenced
  August 2004.
• footballpools.com and pools on ITVi launched
  August 2004.
• Potential new easy play Premiership linked
  product 2005/6, possibly with extended retail
  distribution following Gambling Act 2005.

8
Betting

• Actions Outlined March 2004
• Littlewoods Bet Direct on ITVi launched June
  2004.
• Reduce horse racing reliance / increase share of
  football market
• proportion of total stakes H1 football 20, 2003
  15.
• Major upgrade of betdirect.net completed March
  2004.
• Introduce fixed odds games to LittlewoodsBet
  Direct commenced July/August 2004.
• Reduce operating costs - in-house call handling
  commences October 2004.
• In addition
• Renegotiation of attheraces contract.
• Acquisition of Bet attheraces telephone customer
  base.

9
Betting
10
Betting

• Sportsbook growth from new channels still to come
  through.
• Focus on profit generation continues
• Capitalise on ITVi presence extend popular TV
  programme related betting,
• e.g. X Factor.
• Improve operational efficiencies, e.g. own
  call-centre.
• Drive increased volume through new distribution
  channels and continue growth of fixed odds games.
• Continued focus on casino growth with improved IT
  deal and target to launch Littlewoods Bet Direct
  branded site by end of year.

11
ITV Update

• Comprehensive gaming and betting service now in
  place
• consisting of
• This Morning Daily Lottery Game May 04
• Million Hot Shot June 04
• Champions Reels July 04
• Barnets United July 04
• Football Pools August 04
• X Factor Reels September 04
• Plus Littlewoods Bet Direct sportsbook
• ITV to execute major launch of service during
  October 2004.
• Extension of service,
• In programming prompts,
• National TV/PR campaign.
• Programming linked games launched in H1 include
  Instant Love, Fame and Fortune,
• Three Lions Quiz, Championship Reels, and 5 Line
  Fever.

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ITV Investment Model

• Exclusive deal for 5/7 yrs commenced March
  2004/option to break March 2006.
• 11m payable to ITV in first two years 6m paid
  to date.
• c.50m gross win over two years needed to recoup
  11m allowable co-operation costs.
• Driven by Betting (24/7 enhanced tv
  applications (etv)), games (24/7 etv) plus
  relational products (digital and analogue).
• Illustrative Key Performance Indicators

13
ITV Update

• Ongoing development activity
• Templates to improve efficiency and reduce cost
  of retheming games.
• 247 Game Zone assisted by royalty based deal
  with third party to supply
• games.
• Programme linked games, e.g. Im a Celebrity 4.
• Development of additional opportunities
  relational games e.g. virtual racing and bingo
  (digital and analogue).
• Key focus on more visibility/promotion of
  interactive service by ITV.

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Current Trading / H2 2004 Outlook

• Challenging H2 2004
• Weaker margins from horse racing in first 8 weeks
  of H2 2004 plus additional costs of new channels.
• H1 year on year Betting business gains materially
  reduced as a result.
• Maximising potential of the ITV interactive
  launch and Football Pools marketing campaign.
• Potential impact on H2 outcome.

15
Summary

• Significant progress made in last six months
• Revitalising football pools initiatives,
• Casino growth boosting Betting segment,
• Comprehensive ITV gaming and betting service now
  in place ahead of planned ITV launch (Oct 2004).
• Outlook
• Challenging H2 04,
• Exciting growth opportunities.

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Contact Information

• George Rushton
• Managing Director
• Gary Speakman
• Finance Director
• Suzanne Judge
• Investor Relations

• Sportech PLC
• Sportech House
• Enterprise Way
• Liverpool
• L13 1FB
• Tel [phone]
• Web www.sportechplc.com