Complete Power Point Presentation Betfair – John Bowman

1. Complete Power Point PresentationBetfair – John Bowman

2. BETFAIR BETFAIR PEST Analysis / Market Analysis By John Bowman

4. Betfair - Snapshot

5. Betfair - snapshot

6. Betfair – snapshot LMAX the market for online Retail financial trading

7. PEST ANALYSIS

8. PEST Analysis - political

9. Pest analysis - economical

10. TOTAL REVENUE - betfair

11. Pest analysis - social

12. Pest analysis - social

13. Pest analysis - technological

14. Industry Analysis – Total gambling • Online gambling • $25 billion annually • 8% of total gambling • Betfair accounts for 2% of total market share of Online betting

15. A healthy industry

16. Fastest Growing industry

17. Industrial analysis

18. Threat of New Entrants - strong

19. Bargaining Power of industry - Weak

20. Bargaining power of customers - moderate

21. Threat of substitutions - strong

22. Intensity of rivalry - strong

23. True Competitive AdvantageBETFAIR offers: • Company based on Differentiation • based on Innovation • Based on fair bet • I bet against you, not the house

24. conclusion

25. BETFAIR BETFAIR Competitor and Market Analysis By John Bowman

26. HOW IT ALL WORKS http://www.youtube.com/watch?v=d05joU_FSYo

27. Direct CompetitionOnline Gambling Countries where betting licenses are located Countries that service is not offered Companies that are listed on the stock exchange

28. Competitors Revenue in millions Bet365 & Bodog - unavailable

29. Compete ?

30. ODDS -PAYOUT Odds Payout is a Exchange with an average odds of payout – based on 100% This means that for every EURO bet, that percent of the EURO is returned to the betters.

31. New Customer Sign – Up Bonus No sign up bonus for Betsson or Paddy Power Bonus is for new membership Sign – up bonus is a return of the amount the new customer deposits and bets and is then returned to their account Betfair – 100% of first 29 EURO’s bet BET365 100% of the first 100 EURO’s bet Bodog offers 50% of the first 29 EUROs bet

32. What to BET This charts shows the different sports you can place wagers on. Sports that bets are placed on: Here is a partial list – how many do you know? American Football Australian Rules Baseball Basketball Bowls Boxing Chess Cricket Cross Sport Accumulators Cycling Darts Financials - Today's Markets Financial Bets Floorball Football Football - Fixtures Gaelic Games Golf Greyhound Racing Greyhound - Todays Card Handball Horse Racing Horse Racing - Todays Card Horse Racing - Virtual Ice Hockey Motor Sport Netball Olympics 2012 Politics Rugby League Rugby Union Snooker Special Bets Tennis Volleyball

33. What services are offered

34. BRAND RECONITION BETFAIR

35. OVER ALL RATINGS Based on the following factors Financial Security Odds Payout Betting Selection Service Test Site Statistics Money Trans. Bonus

36. True Competitive AdvantageBETFAIR offers: • Company based on Differentiation • based on Innovation • Based on fair bet • I bet against you, not the house

37. Indirect Competition Over $330 billion bet each year Online reported gambling is $25 billion – Betfair has 2% of total Is the fastest growing gambling industry

38. Products Offered • Sport betting – football • Horse Racing • Online Poker rooms • Online gaming – casino • All offer same services • No real difference on product offered • Must compete elsewhere

39. Growth Rate - Unbelievable Growth rate is the fastest growing industry of any industry Much of revenue is unaccountable , unauthorized betting sites How much is really bet Illegal to bet in US

40. Key Trends Football – cash cow Poker – a thing of yesterday? Sport bets up 11.7% same period last year, mostly due to world cup Horse racing up 1.4% same period last year, poor weather cancelled racing Poker continues downward, losing 6.5% of same period last year. Sport bets Horse Racing Poker

41. Trends – How to place a bet Ease and discretion of use • Revenue is strong from mobile channel • Up 70% over one year • Accounts for 4% of total revenue • Leader is iPad and iPhone • Android Apps

42. Market Actives (ooo) A Growing Market Actives – a customer who has a bet or plays real money during a given period UK is 17% over one year Europe up 52% Rest of world up 46.3% What will happen when US market opens?

43. Rest of the World

44. Target Market – Gambling $ New target market Knows technology 50% of new actives –football players UK and Europe Well informed players Old target market No technology Knowledge Mostly casino and horse players Misinformed players

45. Conclusion • Gambling has always been among man and will continue. • Betfair has found a new channel to bet (same as it always has been – man to man) only now through technology. • They must keep their name recognition by sponsorship and advertising. • They must keep current with technology and even help shape it to stay ahead. • They must help regulate legislation and be at the door step when new and emerging markets are ready for the picking. • These are the factors that will ensure that they keep their market share and enhance the market for online gambling.

46. BETFAIR BETFAIR Internal Analysis / Overview By John Bowman

47. Business ModelMake up of Betfair Group

48. Business Model

49. Betfair – CEO – David Yu • Aggressive 3 yr. plan • Heavy re-investment • New software • Buy New Markets – TVG – USA • Key Sponsorship in many different sporting events

50. 5 Year Performance