Rank is worth substantially more than 150p per share ... - Rank Group

) The references to Rank Interactive (261,000 customers and 10% of 2010 revenue) are sourced from Rank’s annual report
and financial statements for the year ended 31 December 2010.
s) The references to TRE (11 bingo clubs across four regions in Spain, 331,000 customers and 7% of 2010 revenue) are
sourced from Rank’s annual report and financial statements for the year ended 31 December 2010.
t) The reference to the contribution to 2010 revenue of the UK is sourced from Rank’s annual report and financial statements
for the year ended 31 December 2010.
u) The information regarding the value of the UK Gross Gaming Yield for the years 2000 – 2010 is sourced from the H2
Gambling Capital report dated 20 April 2011.
v) The information regarding adult gambling participation is sourced from the British Gambling Prevalence Survey 2010.
w) The references to Rank’s performance in Casino, Bingo and Online relate to the compound annual growth rate of Rank’s
revenues from 2008 to 2010 and are all sourced from Rank’s annual reports and financial statements for the relevant years.
The CAGRs are calculated as follows:
2010 number
(2008 number) ^
1
(2) -1
x) The references to revenue, operating profit and number of customers, and the associated CAGRs (see note (w) above) for
Grosvenor Casinos, Mecca Bingo and Rank Interactive are sourced from Rank’s annual reports and financial statements
for the relevant years. The reference to incremental taxes relating to Mecca Bingo operating profit is sourced from Rank
management.
y) The reference to Rank’s significant capital investment in Grosvenor Casinos is sourced from Rank’s investor presentation
relating to its results for the year ended 31 December 2010.
z) The reference to the 191% increase in online referrals from Mecca Bingo clubs is sourced from Rank’s annual report and
financial statements for the year ended 31 December 2010.
aa)
The references to Rank’s 2010 performance in revenue, EBITDA, operating profit, EPS and DPS and associated growth
rates are all sourced from Rank’s annual report and financial statements for the year ended 31 December 2010. The
associated growth rates are as compared with Rank’s 2009 performance in the relevant metric.
bb) The data used in the chart of indexed share price performance from 1 January 2008 to 23 May 2011 for Rank, a UK
Gaming Index and the FTSE 350 is sourced from Datastream as at 23 May 2011 (being the Latest Practicable Date). See
note (g) above.
cc)
The references to the 3.3% and 7.8% CAGRs (see note (w) above) for gaming revenue and food and drink revenue
respectively are sourced from Rank’s annual report and financial statements for the year ended 31 December 2010.
dd) The details on the G Casino expansion are sourced from Rank’s annual report and financial statements for the year ended
31 December 2010 and from Rank’s investor presentation relating to its results for the year ended 31 December 2010. The
data presented in the chart on the number of G Casinos and the total number of UK Grosvenor Casinos from 2006 to 2010
is sourced from Rank’s annual report and investor relations materials for the relevant years. The data for 2011 to 2015 is
based on Rank management estimates.
ee)
ff)
The reference to £43m of capital investment is sourced from Rank’s investor presentation relating to its results for the year
ended 31 December 2010 and the reference to 15 G Casino sites is sourced from Rank management.
The reference to exceeding a target pre tax ROIC of 15% by year three is sourced from Rank management.
gg) The table comparing the G Casino format to Traditional Grosvenor is sourced from Rank’s investor presentation relating to
its results for the year ended 31 December 2010.
hh) The references to the Isle of Capri profit turnaround and payback within two years are sourced from Rank management.
ii)
jj)
The reference to Mecca Bingo’s innovation opportunities, the progress achieved so far, and the next steps are all sourced
from Rank’s annual report and financial statements for the year ended 31 December 2010.
The references to strongly improving customer satisfaction scores and a capital investment of £12m to date are sourced
from Rank management.
kk) The references to the distribution platforms for Rank’s brands are sourced from Rank’s annual report and financial
statements for the year ended 31 December 2010.
ll)
The references to online-offline crossover rates for Rank and the statement that customers who play with Rank in both
venues and online generate significantly greater revenue than those who play on a single channel are sourced from Rank
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