Entain PLC

213800GNI3K45LQR8L282021-01-012021-12-31iso4217:GBP213800GNI3K45LQR8L282021-01-01213800GNI3K45LQR8L282020-01-012020-12-31213800GNI3K45LQR8L282021-01-012021-12-31entainplc:UnderlyingItemsMember213800GNI3K45LQR8L282021-01-012021-12-31entainplc:SeperatelyDisclosedItemsMember213800GNI3K45LQR8L282020-01-012020-12-31entainplc:UnderlyingItemsMember213800GNI3K45LQR8L282020-01-012020-12-31entainplc:SeperatelyDisclosedItemsMemberiso4217:GBPxbrli:shares213800GNI3K45LQR8L282021-12-31213800GNI3K45LQR8L282020-12-31213800GNI3K45LQR8L282019-12-31ifrs-full:IssuedCapitalMember213800GNI3K45LQR8L282019-12-31ifrs-full:SharePremiumMember213800GNI3K45LQR8L282019-12-31ifrs-full:MergerReserveMember213800GNI3K45LQR8L282019-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800GNI3K45LQR8L282019-12-31ifrs-full:RetainedEarningsMember213800GNI3K45LQR8L282019-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800GNI3K45LQR8L282019-12-31ifrs-full:NoncontrollingInterestsMember213800GNI3K45LQR8L282019-12-31213800GNI3K45LQR8L282020-01-012020-12-31ifrs-full:IssuedCapitalMember213800GNI3K45LQR8L282020-01-012020-12-31ifrs-full:SharePremiumMember213800GNI3K45LQR8L282020-01-012020-12-31ifrs-full:MergerReserveMember213800GNI3K45LQR8L282020-01-012020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800GNI3K45LQR8L282020-01-012020-12-31ifrs-full:RetainedEarningsMember213800GNI3K45LQR8L282020-01-012020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800GNI3K45LQR8L282020-01-012020-12-31ifrs-full:NoncontrollingInterestsMember213800GNI3K45LQR8L282020-12-31ifrs-full:IssuedCapitalMember213800GNI3K45LQR8L282020-12-31ifrs-full:SharePremiumMember213800GNI3K45LQR8L282020-12-31ifrs-full:MergerReserveMember213800GNI3K45LQR8L282020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800GNI3K45LQR8L282020-12-31ifrs-full:RetainedEarningsMember213800GNI3K45LQR8L282020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800GNI3K45LQR8L282020-12-31ifrs-full:NoncontrollingInterestsMember213800GNI3K45LQR8L282021-01-012021-12-31ifrs-full:IssuedCapitalMember213800GNI3K45LQR8L282021-01-012021-12-31ifrs-full:SharePremiumMember213800GNI3K45LQR8L282021-01-012021-12-31ifrs-full:MergerReserveMember213800GNI3K45LQR8L282021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800GNI3K45LQR8L282021-01-012021-12-31ifrs-full:RetainedEarningsMember213800GNI3K45LQR8L282021-01-012021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800GNI3K45LQR8L282021-01-012021-12-31ifrs-full:NoncontrollingInterestsMember213800GNI3K45LQR8L282021-12-31ifrs-full:IssuedCapitalMember213800GNI3K45LQR8L282021-12-31ifrs-full:SharePremiumMember213800GNI3K45LQR8L282021-12-31ifrs-full:MergerReserveMember213800GNI3K45LQR8L282021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800GNI3K45LQR8L282021-12-31ifrs-full:RetainedEarningsMember213800GNI3K45LQR8L282021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800GNI3K45LQR8L282021-12-31ifrs-full:NoncontrollingInterestsMember game your It’s Annual Report 2021 Explore more in our online annual report: www.entaingroup.com/ 2021annualreport Overview 02 We are Entain Strategic report 06 Chairman’s introduction 10 Chief Executive’s Review 20 Our strategic framework 22 How we create value 24 Strategy in action 32 The industry in which we operate 34 Regulatory Update 36 Engaging with stakeholders 40 Sustainability 44 Safer betting and gaming 54 Covid-19 57 Investing in people and communities 64 TCFD Statement 66 Business Review ǪǥɆ ķļėį DļŝëŝĉļëŒ {įǘĉėƎȼƖ ¡ėǁļėǂ ǪǫɆ ķļėįEŨǁėƎŝëŝĉė{įǘĉėƎȼƖ¡ėǁļėǂ 79 Risk management 81 Principal Risks 86 Viability Statement Governance 88 Board of Directors ǬǤɆ ķļėį EŨǁėƎŝëŝĉė {įǘĉėƎȼƖ ¡ėƋŨƎƢ 95 Governance framework 103 Report of the Audit Committee 109 Report of the ESG Committee 112 Nomination Committee Report 116 Directors’ Remuneration Report 141 Directors’ Report Financial statements 144 Independent Auditor’s Report 152 Consolidated income statement 153 Consolidated statement of comprehensive income 154 Consolidated balance sheet 155 Consolidated statement of changes in equity 156 Consolidated statement of ĉëƖķ ǙŨǂƖ 157 Notes to the consolidated ǘŝëŝĉļëŒ ƖƢëƢėśėŝƢƖ 204 Company income statement 205 Company balance sheet ǥǣǩɆ ŨśƋëŝǈ ƖƢëƢėśėŝƢ Ũį ĉķëŝİėƖɇ in equity 207 Notes to the Company ǘŝëŝĉļëŒ ƖƢëƢėśėŝƢƖ 212 Glossary 213 Shareholder information 213 Corporate information Start here We are Entain. A world leader in sports betting, gaming and interactive entertainment with a clear strategy to deliver sustainability and growth. Our purpose is to bring moments of excitement into our customers’ lives. It’s our game, ļƢȼƖɇƢķėļƎɇİëśėșșș șșșļƢȼƖɇ your game. Read more about our best entertainment: pages 24 to 25 Read more about our new experiences: pages 26 to 27 Read more about doing the right thing: pages 30 to 31 Read more about our support for customers: pages 28 to 29 1Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Continued success Our market-leading platform enables us to deliver robust, ƖƪƖƢëļŝëĈŒėëŝĐĐļǁėƎƖļǘėĐİƎŨǂƢķșQŝǥǣǥǤǂėŨŝĉėëİëļŝ performed strongly in all of our major markets. BetMGM, our hugely exciting business in the US, which is now the second largest in the market, was a particular highlight. In addition to growing in our traditional areas of strength, we have broadened our horizons, investing in new areas of interactive entertainment such as esports and virtual reality (“VR”) while providing a broader and richer experience for our customers. Equally important to our growth story is our focus on sustainability. We believe that the most sustainable business in our sector will be the most successful. That is why we continue to lead the way in the critically important area of player protection, via our technology- based Advanced Responsibility and Care™ (“ARC™”) programme, and why we are investing in programmes to encourage diversity through technology and support grass roots sport. Where we’re heading Our purpose is clear – bring moments of excitement into our ĉƪƖƢŨśėƎƖȼŒļǁėƖșɇƢėĉķŝŨŒŨİǈĉŨśƋëŝǈƢŨŨƪƎĉŨƎėȚǂėëƎė uniquely positioned amongst our peers to innovate for customers, enabling us to grow in regulated markets both old and new, ǂķļŒėɇėŝƖƪƎļŝİƢķėķļİķėƖƢŒėǁėŒƖŨįƋŒëǈėƎɇƋƎŨƢėĉƢļŨŝș Entain plc | A nnual Report 2021 2 Overview We are Entain At Entain, everything we do is aimed at delivering the verybestin bey best in betting, gaming and interactive entertainment. We are one of the world’s largest sports betting, gaming and interactive entertainment groups, operating in the online and retail sectors.Asthewos. As the worldsolds ofbetf betting,gaminng, gamingmediaandtg media and technologyogy converge, we are uniquely placed to give our customers what they want. Through our proprietary cutting edge technology platform, weproe providesafeavide safe andexnd excitinggaciting gamingexpeming experiences,tomies, to millionsofs of customers, via  many iconic brands. ɆɆDƪŒǘŒɆŨƪƎɆĉŨƎėɆƖƢƎëƢėİļĉɆŨĈŌėĉƢļǁėƖɆƢŨɆ ĐėŒļǁėƎɇİƎŨǂƢķɆëŝĐɆƖƪƖƢëļŝëĈļŒļƢǈș Now live in 21 US jurisdictions, our BetMGM joint venture is the second largest in the US and the clear leader in iGaming.. Strong growth across the Group with śëƎŏėƢɇƖķëƎėɆİëļŝƖɆļŝɆëŒŒɆśëŌŨƎɆśëƎŏėƢƖș Full year online net gaming revenue up 13% in constant currency and total net gaming ƎėǁėŝƪėɆɣǫɼɆļŝɆĉŨŝƖƢëŝƢɇĉƪƎƎėŝĉǈș Launch of Ennovate, our new innovation hub with £100m investment to develop and showcase disruptive technologies ëŝĐɆǘƎƖƢɆĉŨŝƖƪśėƎɆƋƎŨĐƪĉƢƖɆįŨƎɆƢķėɆƖƋŨƎƢƖɆ ëŝĐɇėŝƢėƎƢëļŝśėŝƢɆśėƢëǁėƎƖėș Roll-out ARC™, our technology led safer gaming programme with real-time customer interaction tools. Through our Entain Foundation, invest in socially positive programmes to support grassroots sports and increase diversity ļŝɇƢķėɆǘėŒĐɆŨįɆƢėĉķŝŨŒŨİǈș Operational highlights 1. From continuing operations. Financial highlightsȂ Group Revenue ɞǦșǬĈŝ +8% (constant currency) 2020: £3.6bn Online Net Gaming Revenue ɞǦșǤĈŝ +13% (constant currency) 2020: £2.7bn BetMGM Net Gaming Revenue $850m +378% 2020: $178m Group Underlying EBITDA £881.7m +5% 2020: £843m ƎŨǘƢɆįƢėƎɆ¶ëǇ £275.6m +142% 2020: £113.8m pėƢɆ$ėĈƢ £2.1ĈŝɆȩǥșǧǇȪ 2020: £1.8bn (2.1x) Diluted EPS 53.8p -14% 2020: 62.8p ĐŌƪƖƢėĐɆ$ļŒƪƢėĐɆ,©ɆȩėǇĉŒƪĐļŝİɆ½©ɆÔȪ 81.1p +11% 2020: 73.1p 3 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Our commitments We have long held the view that the most sustainable business will be the most successful business in our industry. We aim to meet the highest standards in everything we do, from the way we run our business to the way we support our ĉŨŒŒėëİƪėƖȚɆŨƪƎɇĉƪƖƢŨśėƎƖɆëŝĐɆŨƪƎɇĉŨśśƪŝļƢļėƖș {ƪƎɆƖƪƖƢëļŝëĈļŒļƢǈɆ commitments An exclusive focus on regulated markets – we have committed that by the end of 2023 we will only operate in domestically regulated markets. We now generate nearly 100% of our NGR from regulated markets, more than any other major global operator. Lead on safer betting and gaming – provide our customers with the safest and most trusted environment to play. Pursue the highest levels of corporate governance with rigorous processes and oversight through a diverse Board. Invest in people and communities ȱɇǂėɇǂëŝƢɆ,ŝƢëļŝɆƢŨɆĈėɆƎėĉŨİŝļƖėĐɆëƖɆƢķėɆ best place to work in the industry as well as ensure we make a positive impact on the communities and markets in which we are based and operate. Our culture commitments Five values guide every decision we śëŏėɇëŝĐɆëĉƢļŨŝɆǂėɆƢëŏėșɆ¶ķėǈɆëƎėɆǁļƢëŒɆ ƢŨɇŨƪƎɆĉƪŒƢƪƎėș Why? Well that’s simple…because they map out how we do things. They’re at the heart of how we work together, serve our customers and even celebrate success. At Entain we strive to: Excite our customers. Drive innovation. Do what is right. Win together. Be bold. Customer commitments Customers are the focus of ėǁėƎǈƢķļŝİɇǂėɆĐŨș Our purpose is to provide them with moments of excitement. We will offer them exciting and trusted entertainment products and services. Listen to and respond to customer needs. Using our technology platform, we will continuously innovate to introduce new products and create a personalised experience for each of our customers. We are Entain continued Entain plc | Annual Report 2021 4 Ov erview Our divisions Market position Online Retail 4,300+ global outlets >100 Licences across 31 regulated territories 100+ dėëĐļŝİɆĈƎëŝĐƖɆ 24 UK #1 Belgium #1 Italy #3 Ireland #3 {įǘĉėƖɆǂŨƎŒĐǂļĐėɆ 20+ Employees & contractors c.25,000 Currencies accepted 42 dëŝİƪëİėƖɆŨįįėƎėĐ 33 UK #2 Italy #1 US #2 Germany #2 Australia #3 Brazil #1 Online sports wagers ɞǤǧșǥĈŝ +20% (+22%cc) 2020: £11.8bn ¡ėƢëļŒɆƖƋŨƎƢƖɆǂëİėƎƖɆȩŒļŏėȯįŨƎȯŒļŏėȪ ɞǥșǦĈŝ -10% (-9%cc) 2020: £2.6bn 2021 NGR Split 1. Online 78.8% 2. Retail 20.3% 3. Other 0.8% 1 2 3 1 2 2021 EBITDA Split 1 1. Online 92.5% 2. Retail 6.9% 3. Other 0.6% 3 1. New Opportunities and Corporate ëƎėɇėǇĉŒƪĐėĐëƖƢķėǈëƎėŝėİëƢļǁėș 5Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Chairman’s introduction Entain has now delivered nine years of double-digit growth in our online business.” J M Barry Gibson Chairman Entain plc | Annual Report 2021 6 Strategic report If 2020 was the year in which Entain ƎėĐėǘŝėĐɆļƢƖɆƖƢƎëƢėİǈɆëŝĐɆëƎƢļĉƪŒëƢėĐɆļƢƖɆ ambition to be the world-leader in sports betting and gaming entertainment, then 2021 has been the year in which we ėśƋķëƢļĉëŒŒǈɆĐėŒļǁėƎėĐɆŨŝɆƢķėɆǘƎƖƢɆƖƢëİėɆŨįɆ that journey. Entain has now delivered nine years of double-digit growth in our online business, ƖŨɆǂėɆįėėŒɆĉŨŝǘĐėŝƢɆļŝɆëƖƖėƎƢļŝİɆŨƪƎɆƖƢƎŨŝİɆ belief that this is a business that is capable of delivering sustainable and meaningful long-term returns for all of its stakeholders. ¶ķļƖɆĉŨŝǘĐėŝĉėɆļƖɆƪŝĐėƎƋļŝŝėĐɆĈǈɆŨƪƎɆ powerful, unique and market-leading platform, which encompasses everything from our outstanding proprietary technology to our capabilities in digital marketing, customer interaction, regulatory engagement, and M&A. And, of course, the foundation on which the Entain platform is built – and which connects it directly to our customers – is the industry-leading talent that we have across the business. On this front, we are working hard to continue to attract and retain the very best people at all levels at Entain and we know that, as a world-leader in technology, we need to be able to compete with the global tech giants in order to do so. It is the strength and viability of this platform which is behind our conviction that, as we announced in August, our total addressable market will grow more than three-fold to $160bn. There are vast growth opportunities ahead of us, which we intend to capture by: achieving leadership in the US market; growing our presence in core markets; expanding into new regulated markets; and extending into new interactive entertainment experiences. As a result, it was no surprise that Entain attracted interest from other industry players during the year. We strongly felt that the proposals that we received from MGM Resorts in January and DraftKings in September both substantially undervalued the Company and its prospects. But their interest was a great endorsement of the attractiveness of our strategy, operations, technology, and people. In the case of MGM Resorts, our relationship through our BetMGM joint venture in the US continues to go from strength to strength. Read more about our Board: pages 89 to 90 2021 has been an extraordinarily successful and eventful year for Entain, albeit one in which ǂėɆĉŨŝƢļŝƪėĐɆƢŨɆĉŨŝƢėŝĐɆǂļƢķɆƢķėɆƖļİŝļǘĉëŝƢɆ challenges of operating against the backdrop ŨįɆƢķėɇŨǁļĐȯǤǬɆƋëŝĐėśļĉșɆQŝɆƖƪĉĉėƖƖįƪŒŒǈɆĐŨļŝİɆ so, we proved beyond doubt the resilience of our business model as well as our ability to take advantages of growth opportunities in the most ĉķëŒŒėŝİļŝİɆŨįɇĉļƎĉƪśƖƢëŝĉėƖș Entain plc | Annual Report 2021 7 Overview | Strategic report | Governance | Financial statements Chairman’s introduction continued ESG at the heart of Entain 2021 was also a year in which we cemented our commitment to putting ESG at the heart of everything that we do. We are clear that this approach will make us an even more successful business for the future, and we want to take a lead on the issues that matter most to us including sustainability, diversity, and responsibility. As part of this, our goal is to provide the most trusted environment for betting and gaming in the world, so that our customers know that they can have a fantastic experience with us and that we have their interests at heart. This philosophy has been the driving force behind the development of our Advanced Responsibility and Care™ (“ARC™”) programme, which has made great strides during the year and is ƎėĐėǘŝļŝİɆƢķėɆĉƎļƢļĉëŒŒǈɆļśƋŨƎƢëŝƢɆëƎėëɆŨįɆ player protection. As a further demonstration of the fact that safer gambling sits at the core of our strategy, we have incorporated a safer gambling metric into remuneration. Colleagues are now assessed against whether certain milestones have been achieved in implementing our ARC™ programme, as part of the conditions of their annual bonus. We will be adding to this further in 2022, with an additional portion of the Group annual bonus being ĈëƖėĐɆŨŝɇȻĉƪƖƢŨśėƎɆĉėŝƢƎļĉļƢǈȼșɆ Read more about remuneration metrics: page 126 Financial performance QȼśɆƋŒėëƖėĐɆƢŨɆĈėɆëĈŒėɆƢŨɆƎėǙėĉƢɆŨŝɆëŝŨƢķėƎɆ set of strong results, delivered whilst both the business and our customers continue to įëĉėɆƢķėɆĉķëŒŒėŝİėƖɆƋƎėƖėŝƢėĐɆĈǈɆŨǁļĐȯǤǬșɆ This performance is a tribute to the quality of our people and resilience of our business śŨĐėŒɆĐƪėɆƢŨɆļƢƖɆĐļǁėƎƖļǘĉëƢļŨŝɆëĉƎŨƖƖɆ product, brand, territory and channel. Group net gaming revenue (“NGR”) was up by 8%cc for the full year, while our online NGR was ahead by 13%cc, the ninth consecutive year that we have delivered double-digit growth online. With all key markets in growth, with the exception of Germany and the Netherlands, which were subject to regulatory changes – our online business continues to go from strength- to-strength. The performance of our US joint venture, BetMGM, was particularly pleasing, securing our leading position with a 23% share of the the states we were active in during the fourth quarter of 2021. This is an outstanding achievement, in line with our target to secure 20-25% of the US market and we look forward to building on this position as further states regulate in 2022. Overall this performance enabled us to deliver £881.7m of underlying EBITDA, a 5% increase on the year, and gives us ĉŨŝǘĐėŝĉėɆƢķëƢɆŨƪƎɆƖƢƎëƢėİǈɆŨįɆİƎŨǂƢķɆëŝĐɆ sustainability remains on course. Entain plc | Annual Report 2021 8 Strategic report Read more about our strategy: pages 20 to 21 A clear commitment to robust corporate governance Our outstanding CEO, Jette Nygaard- Andersen, has now been in the role for over a year and, as we had hoped, her background in fast-growing disruptive next generation digital entertainment companies has added fresh perspective and impetus to Entain’s strategic direction. On behalf of the Board, I would like to congratulate Jette on ëɆķƪİėŒǈɆƖƪĉĉėƖƖįƪŒɆǘƎƖƢɆǈėëƎɆļŝɆĉķëƎİėș įƢėƎɆƢķėɆƖļİŝļǘĉëŝƢɆĉķëŝİėƖɆŨįɆǥǣǥǣȚɆƢķļƖɆ has been a year of consolidation for the Board, although we were delighted to be joined by Mark Gregory as an independent Non-Executive Director in March. Mark is now Chair of the Remuneration Committee and a member of the Audit and Nomination Committees. He has more than 35 years’ experience in a wide variety of senior ŒėëĐėƎƖķļƋɆƎŨŒėƖɆëĉƎŨƖƖɆĈŨƢķɆƢķėɆǘŝëŝĉļëŒɆ services and retail sectors. Last year we announced that Sandeep Tiku would be joining the Board as an Executive Director following his relocation to Gibraltar. DŨŒŒŨǂļŝİɆļŒŒɆķėëŒƢķɆĐƪėɆƢŨɆŨǁļĐȯǤǬȚɆ Sandeep’s relocation was delayed and he ķëƖɆŝŨƢļǘėĐɆƢķėɆŨśƋëŝǈɆƢķëƢɆķėɆŝŨɆŒŨŝİėƎɆ intends to relocate to Gibraltar and will therefore not join the Board. We recognise the value of having an inclusive and diverse Board and following Sandeep’s decision we will not meet shareholder expectations and our own Board Diversity Policy with respect to membership of a Director from an ethnic minority background. The Nomination Committee is undertaking an active search ƢŨɆǘŝĐɆëŝɆëƋƋƎŨƋƎļëƢėɆĉëŝĐļĐëƢėș Rewarding our outstanding İŒŨĈëŒɇƢėëś As ever, the hard work, dedication and innovation of our teams across the globe has been awe-inspiring to see, and on behalf of the Board I would like to thank all of our colleagues for another year of outstanding commitment and outperformance. In recognition of their extraordinary contribution, we were delighted to launch a Group-wide employee share ownership plan in April to give our UK and international colleagues the opportunity to share in the success and growth of the business. Looking ahead: 2022 and beyond As we look ahead to the coming year, the UK Government’s review of the 2005 Gambling Act will be a key milestone for our industry. We are in full support of the review, and have been engaging openly, proactively and transparently with all aspects of the process. We are hopeful that it will be a step towards creating the highest possible regulatory standards, and that any revised legislation is not draconian; we have seen in other markets that imposing arbitrarily low and disproportionate blanket thresholds will have the unintended consequence of driving customers to the black market, where the small minority of players who are at risk of harm will have none of the protection offered by established, regulated operators. When we think about the future more broadly, it is clear that the worlds of media, entertainment, technology and gaming are rapidly coming together, and that Entain sits at the very heart of that convergence. This provides us with a great ŨƋƋŨƎƢƪŝļƢǈɆƢŨɆƎėĐėǘŝėɆŨƪƎɆļŝĐƪƖƢƎǈȚɆëŝĐɆ also to meet the changing demands of customers who now want a richer and more engaging experience, with more content, social interaction, analytics, data, and live statistics. In simple terms, we are now able to use our outstandingly strong platform to give our customers even more reasons to engage with and stay with us. As a result, we are more excited than ever before about the exciting opportunities ahead of us that will drive Entain’s growth for many years to come. J M Barry Gibson Chairman 3 March 2022 Our goal is to provide the most trusted environment for betting and gaming in the world.” 9 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Chief Executive’s Review Entain is a consumer-focused growth business, and we continue to make progress on our ambition as a global leader in betting, gaming ëŝĐɇļŝƢėƎëĉƢļǁėɇėŝƢėƎƢëļŝśėŝƢșȺ Jette Nygaard-Andersen ķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎ A global leader for our industry Entain is a consumer-focused growth business ĐėŒļǁėƎļŝİɆƋƎŨǘƢëĈŒėɆëŝĐɆƖƪƖƢëļŝëĈŒėɆƎėƢƪƎŝƖɆįŨƎɆŨƪƎɆ stakeholders. We continue to make progress on our ambition as a global leader in betting, gaming and interactive entertainment. Entain plc | Annual Report 2021 10 Strategic report Overview | Strategic report | Governance | Financial statements Having substantially increased our online revenues year-on-year for the last nine years and grown at a compound annual rate of 20%cc over the last two years, we are clearly a business delivering growth. Our customer base has 25% more actives than in 2020. Our operations now span 31 regulated or regulating territories and we have established leading positions in each of our key markets. We also have further ƖļİŝļǘĉëŝƢɆİƎŨǂƢķɆŨƋƋŨƎƢƪŝļƢļėƖɆëķėëĐɆŨįɆƪƖɆ with our addressable markets set to grow to more than $160bn over the medium term – providing us with the opportunity to treble the size of our business. Entain is a business with growth built into our model, driven by our industry leading platform comprising our unique technology, people and capabilities. It is this platform that enables us to deliver an ever-better customer experience, evolve into emerging customer trends and grow into new markets and products. We continue to evolve as a business and position ourselves as a leader in our industry across growth, innovation, capabilities, player protection and customer centricity. By expanding content, products and experiences to broaden our customer appeal, creating moments of excitement across betting, gaming and interactive entertainment, we are rapidly laying the foundations to drive customer centric growth into new markets and products. This will further broaden our customer base, ļŝĉƎėëƖėɆŒŨǈëŒƢǈȚɆĐƎļǁėɆİƎėëƢėƎɆĐļǁėƎƖļǘĉëƢļŨŝɆ in our revenue streams and reduce acquisition costs. We have established ourselves at the forefront of sustainability in our industry with recognition across a number of indices as well as earning numerous awards. Importantly we are delivering ground- breaking improvements in player protection through our Advanced Responsibility and Care™ programme (“ARC™”). We delivered a strong performance in 2021 with Group NGR up +8%cc (up +15%cc including our 50% share of BetMGM) and EBITDA up +5%. Online NGR was up +13%cc with signs of the new normal ėśėƎİļŝİɆĐƪƎļŝİɆƢķėɆǘŝëŒɆƍƪëƎƢėƎșɆ We have made great progress in 2021 and I am delighted all my colleagues hard work has been recognised externally, especially in being awarded Operator of the year by EGR and being recognised as one of the most admired companies in 2021 by Management Today. These great achievements are testament to the high quality and talented team we have at Entain. I would like to thank each and everyone of them for the dedication and the commitment they have demonstrated throughout the year. Entain plc | Annual Report 2021 11 Overview | Strategic report | Governance | Financial statements Chief Executive’s Review continued We have a clear strategy that levers this platform to deliver on our core pillars of growth and sustainability. Our ambition is to be the world’s leading betting, gaming and entertainment company with our ĉƪƖƢŨśėƎƖɆëƢɆƢķėɆĉŨƎėɆŨįɆėǁėƎǈƢķļŝİɆǂėɆĐŨșɆQƢɇļƖɆƢķƎŨƪİķɆƢķļƖɆƖƢƎëƢėİǈɆ ƢķëƢɆǂėɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆĐƎļǁėɆƖļİŝļǘĉëŝƢɆǁëŒƪėɆįŨƎɆŨƪƎɆƖƢëŏėķŨŒĐėƎƖș Customer centric Entain platform Our Entain platform distinguishes us from competitors, powering our growth, supporting our customer centric focus and driving value creation. It comprises our unique in-house technology, our industry leading talent and our customer focused capabilities. It enables ƪƖɆƢŨɆëĉƢɆĐļįįėƎėŝƢŒǈȚɆĈėɆǙėǇļĈŒėɆëŝĐɆëİļŒėɆëŝĐɆĐėŒļǁėƎɆŨŝɆĈėļŝİɆëɆƎėƖƋŨŝƖļĈŒėɆėŝƢėƎƢëļŝśėŝƢɆ ĉŨśƋëŝǈɆǂķļŒƖƢɆëŒƖŨɆĐƎļǁļŝİɆƖļİŝļǘĉëŝƢɆĉŨśƋėƢļƢļǁėɆëĐǁëŝƢëİėƖɆļŝɆǘǁėɆŏėǈɆƖƢƎëƢėİļĉɆëƎėëƖț Customer centric continuous improvement – customer centricity is the backbone of our growth across the Group. Ensuring our customers’ experience is engaging, exciting, relevant and always improving means a continuous refreshment and evolution of our content, our offering and the way we support our customers. By focusing on what makes a better customer experience and creating those little moments of excitement, we have grown our active base 25% in 2021 ëŝĐɇļśƋƎŨǁėĐɆĉƪƖƢŨśėƎɆŒŨǈëŒƢǈș Driving growth ȱɆǂļƢķɆǙėǇļĈļŒļƢǈȚɆëİļŒļƢǈɆ and scalability built in, we are able to expand internationally, integrate new acquisitions, support growth in existing markets, including the US, understand and evolve into changing customer behaviours and grow into new products as demonstrated by our successful M&A and integration delivery to date. Player protection and Advanced Responsibility and Care™ – ARC™ is Entain’s industry-leading approach to customer protection. It is a proactive player programme that navigates each customer journey in real-time, using advanced analytics to monitor markers of protection and behavioural triggers to ļĐėŝƢļįǈɆƎļƖŏƖɆƖƋėĉļǘĉɆƢŨɆƢķëƢɆĉƪƖƢŨśėƎșɆ Early trials have delivered encouraging results, with a 30% overall reduction in customers increasing their risk levels, and we are now starting to roll out the programme internationally. Innovation engine – continuous product evolution keeps the customer experience fresh and engaging. With the launch of Ennovate, our innovation hub in London, supported by a £100m investment, we are exploring new technologies. These include AI and both virtual and augmented reality to create new moments of excitement for our customers. $ƎļǁļŝİɆėįǘĉļėŝĉļėƖɆ– maximising cost and revenue synergies from both ëĉƍƪļƖļƢļŨŝƖɆëŝĐɆėįǘĉļėŝĉļėƖɆëĉƎŨƖƖɆƢķėɆ Group. Operating our own platform enables us to operate at a lower cost than our competitors. Having launched our Evolve programme in 2021, we are on ƢƎëĉŏɆƢŨɆĐėŒļǁėƎɆɞǤǣǣśɆŨįɆėįǘĉļėŝĉļėƖɆŨǁėƎɆ three years. As Entain continues to grow, we are evolving our operational structures, processes and capabilities around the Entain Platform. This will enable us to drive an even better customer experience and ensure that we are able to deliver on the ƖļİŝļǘĉëŝƢɆİƎŨǂƢķɆŨƋƋŨƎƢƪŝļƢļėƖɆŨƋėŝɆƢŨɆƪƖɆ as a leading global sports betting, gaming and interactive entertainment company. We have a clear strategy that levers our platform to deliver on our core pillars of growth and sustainability. Our ambition is to be the world’s leading betting, gaming and interactive entertainment company with our customers at the core of everything we do. It is through this strategy that we ǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆĐƎļǁėɆƖļİŝļǘĉëŝƢɆǁëŒƪėɆįŨƎɆ our stakeholders. Read more about how we create value: pages 22-23 Entain plc | Annual Report 2021 12 Strategic report Our growth strategy has four pillars that will enable us to continue to drive the Group’s performance and increase our scale. These include delivering on our clear ambition to be the leading operator in the US through BetMGM, growing in our core markets, entering new regulated markets – both organically and via M&A – and expanding to reach new audiences. Leadership in North America ėƢnEnɆļƖɆǘƎśŒǈɆėƖƢëĈŒļƖķėĐɆëƖɆëɆŒėëĐļŝİɆ operator in the US market built on the strength of the technology and capabilities of the Entain platform as well as the brand strength of our joint venture partner, MGM Resorts International. The North American market is expected to be worth around $32bn over the long term. Throughout 2021, BetMGM has gone from strength-to- strength and, in the three months to December 2021, delivered a market share across sports betting and iGaming of 23% in the markets in which it operated. This is in line with our long- term objective of 20% to 25%, and while that secured BetMGM as the number two operator, we are ready to challenge for the number one position in these markets. BetMGM continues to lead in iGaming with ëɆǥǬɼɆśëƎŏėƢɆƖķëƎėɆļŝɆǧȚɆëŝĐɆļŝɆ©ƋŨƎƢƖɆ betting BetMGM further built its position across its markets with an 18% share ļŝɆǧșɆ¶ķėɆƪŝļƍƪėɆƎëŝİėɆŨįɆĈėƖƋŨŏėɆëŝĐɆ exclusive products provided through the Entain platform differentiate BetMGM’s offer, provide a competitive advantage and supports growth with over 70% of BetMGM customers engaging with these exclusive products. During the year BetMGM went live in nine śëƎŏėƢƖșɆQŝɆƢķėɆǘƎƖƢɆƢǂŨɆśŨŝƢķƖɆŨįɆǥǣǥǥɆǂėɆ added a further four jurisdictions taking the total to 21. BetMGM is live with 11 retail, 15 online sports betting and four iGaming markets, reaching approximately 37% of the US adult population. In addition, it has launched its horse racing product in three further markets leveraging our global expertise in this category. With Ontario opening up to regulation, we look forward to taking the BetMGM brand into that market as well as launching in Illinois during ƢķėɆǘƎƖƢɆķëŒįș QŝɆǥǣǥǤȚɆǂėɆŒëƪŝĉķėĐɆŨƪƎɆǘƎƖƢɆŝëƢļŨŝëŒɆ advertising campaign featuring Jamie Foxx which resonated strongly with customers as a differentiated approach in the emergent betting and gaming market. This was followed by a further campaign and a refreshed advert ahead of the 2022 NFL Superbowl. ėƢnEnɆĈėŝėǘƢƖɆįƎŨśɆƢķėɆƋŨǂėƎįƪŒɆ Entain platform that provides best in class digital marketing tools, deep database analytics and bespoke in-house products. ėƢnEnɆëŒƖŨɆĈėŝėǘƢƖɆįƎŨśɆnEnɆ¡ėƖŨƎƢƖɆ omni-channel presence and loyalty ƋƎŨİƎëśśėɆǂļƢķɆëƎŨƪŝĐɆǤǧɼɆŨįɆŝėǂɆ sign-ups having a pre-existing relationship through one of these channels. During the year we leveraged Entain’s global leadership in bingo and horse racing to launch several ground-breaking products such as Borgata Bingo in New Jersey and a horse racing app in three states where we did not have pre- existing operations. As a result, BetMGM has grown its leadership position rapidly while maintaining ǘŝëŝĉļëŒɆĐļƖĉļƋŒļŝėșɆ©ëśėɆƖƢëƢėɆƎėǁėŝƪėƖɆ ǂėƎėɆƪƋɆëƎŨƪŝĐɆǤǧǣɼɆǈėëƎȯŨŝȯǈėëƎɆëŝĐɆ ŨǁėƎëŒŒɆƎėǁėŝƪėƖɆǂėƎėɆƪƋɆŝėëƎŒǈɆǘǁėɆƢļśėƖɆƢŨɆ $850m in the full year. Costs per acquisition ǂėƎėɆļŝɆŒļŝėɆǂļƢķɆįŨƎėĉëƖƢƖɆǂķļĉķɆƎėëįǘƎśƖɆ our expectation of achieving a long-term cost per acquisition of $250. We are already achieving positive contribution in several markets, some within 12 months of opening. We anticipate that we will deliver revenues of over $1.3bn in 2022 and reach positive EBITDA in 2023. QŝɆƖƪśśëƎǈȚɆėƢnEnɆļƖɆǘƎśŒǈɆŨŝɆƢƎëĉŏɆƢŨɆ realising its ambition of being a leader in the US sports-betting and iGaming market and expects to achieve a 20-25% market share. Growth Entain is a growth business. We have grown Online revenues at a compound annual growth rate of 20%cc over the last two years. ÕėɇŨƋėƎëƢėɆļŝɆǦǤɆƎėİƪŒëƢėĐɆƢėƎƎļƢŨƎļėƖɆëĉƎŨƖƖɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆëŝĐɆ ǂėɇķëǁėɆëśĈļƢļŨƪƖɆƋŒëŝƖɆƢŨɆėǇƋëŝĐɆļŝƢŨɆŝėǂɆśëƎŏėƢƖɆëŝĐɆŝėǂɆƋƎŨĐƪĉƢƖɆ as we lean into interactive entertainment opportunities. 13 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Chief Executive’s Review continued Grow core markets Our operations now span 31 regulated or regulating territories and we have established leading positions in each of our key markets. Our combination of customer focus, strong brands, great products and digital marketing expertise has enabled us to grow across all our major online markets. Our current markets are expected to grow by a compound annual growth rate of over 8% and are expected to be worth around ɏǩǣĈŝɆȩƪƋɆįƎŨśɆëƎŨƪŝĐɆɏǧǣĈŝɆƢŨĐëǈȪɆŨǁėƎɆ the medium term. The Entain platform enables us to deliver a great experience for our customers with ease of use, stability, great service, and protection enhanced by fresh, unique and exciting content. We continue to evolve our offering and appeal to create moments of excitement for a broader, more recreational customer base. Not only will this grow and deepen our presence in our markets, but it will deliver earnings with greater stability and of a higher quality. In the UK, our brands continue to resonate with, and be enjoyed by, a growing number of customers with online actives growing by 15% in 2021. We have made ƖļİŝļǘĉëŝƢɆƋƎŨİƎėƖƖɆļŝɆƎėȯƋŨƖļƢļŨŝļŝİɆ the UK brands, particularly Ladbrokes and Coral, to maximise their appeal to a broader audience. Our new advertising ƖëǂɆƪƖɆŒëƪŝĉķɆƢķėɆļŝĐƪƖƢƎǈȼƖɆǘƎƖƢɆĈƎëŝĐȯ led marketing campaigns with both our “Drummers” and “Balloon” adverts captivating and exciting audiences, whilst our new range of TV adverts for Foxy and sponsorship of First Dates also landed well. We also further enhanced our offering and user experience, engaging customers with new games, products and content. We are creating free-to-play games in sports and gaming to provide more options for customers. Our partnership with ITV to create documentaries around inspiring stories in sports has reached an ëǁėƎëİėɆǫǣǣŏɆǁļėǂėƎƖɆƋŒƪƖɆǘǁėɆśļŒŒļŨŝɆŨŝɆ social channels. Our digital businesses in Italy and Belgium both performed strongly, despite the retail environment across Europe facing challenges due to Covid restrictions. The online winners during 2021 were those operators with the largest retail network, with omnichannel operations ƖėėļŝİɆëɆƖļİŝļǘĉëŝƢɆëĐǁëŝƢëİėșɆQŝɆQƢëŒǈɆ actives and NGR both saw strong growth, +18% and +31%cc respectively, as our ŨįįėƎļŝİɆĈėŝėǘƢėĐɆįƎŨśɆƋƎŨĐƪĉƢɆëŝĐɆįėëƢƪƎėɆ enhancements as well as user experience improvements. We also introduced new NBA game footage, new pre-match football player markets and in-house Eurobet games across bwin and Gioco Digitale. Eurobet continued to bring new and exciting content to customers with the release of over 300 new casino games as well as adding esports streaming to bwin. tv. The relaunch of Ladbrokes.be in Belgium drove almost 72% growth in actives, with ƢķėɆĐļİļƢëŒɆŨįįėƎļŝİɆëŒƖŨɆĈėŝėǘƢļŝİɆįƎŨśɆ refreshed advertising campaigns and bwin’s sponsorship of Jupiler Pro League enabling live streaming of football matches both online and mobile. During 2021, the German market further digested the new regulatory regime including both the Interstate Treaty and the new Turnover Tax. This structure brought welcome clarity to the German online betting and gaming market, however, challenges remain. We look forward to full licensing and regulatory oversight, creating an orderly market that delivers a properly regulated environment and protects customers from unregulated operators. We have continued to differentiate bwin’s offer with a number of products and enhancements. During the year bwin entered into a sponsorship agreement ǂļƢķɆ½,DɆƢķëƢɆƋƎŨǁļĐėƖɆƖļİŝļǘĉëŝƢɆĈƎëŝĐɆ exposure through stadia and media backdrops, not just in Germany, but also in many other countries around the world that follow the Europa League and the Europa Conference League. In addition, bwin’s exclusive free to play product partnership ǂļƢķɆįŨŨƢĈëŒŒɆįŨĉƪƖėĐɆĉŨŝƢėŝƢɆƋŒëƢįŨƎśȚɆǧǦǦȚɆ ķëƖɆķėŒƋėĐɆƢŨɆĐƎļǁėɆëɆǧǣɼɆļŝĉƎėëƖėɆļŝɆĈǂļŝɆ Instagram followers. Our Australian business continues to go from strength to strength with excellent performances from both Ladbrokes and pėĐƖɆĈƎëŝĐƖɆǂļƢķɆëĉƢļǁėƖɆɣǬɼȚɆǁėƎƖƪƖɆ strong 2020 comparators, and NGR +20% (+18%cc) year-on-year. Its refreshed approach has engaged with new and lapsed customers delivering exciting content, engaging material, eye-catching adverts, and an unwavering focus on customer experience. Since kicking off our content-led growth strategy, we have produced over 250 content pieces with Ladbrokes Deep Dives for both the Melbourne Cup and the Ladbrokes Cox ŒëƢėȚɆëƖɆǂėŒŒɆëƖɆŨƪƎɆȻnŨŨĐǈɆŨŝɆƢķėɆnļĉȼɆ podcast. To date, this content has had more ƢķëŝɆǧǧǣśɆļśƋƎėƖƖļŨŝƖȚɆǂļƢķɆėƢėƎɆnŨŨĐǈȼƖɆ podcast reaching an average of 2.5m people per episode. We launched free-to- play games and a new quiz-based game to coincide with the launch of the domestic 20/20 cricket season. Enlabs in the Baltics continues to perform ahead of our expectations with Entain’s core products now fully integrated in the Optibet offering helping to drive actives up +38% on a proforma basis. During H2 2021, Optibet rolled out a new esports betting product in Latvia and Estonia, with customers now able to bet and watch gaming such as eFIFA, eNBA, Fortnite, and Call Of Duty. Our acquisition of Bet.pt saw Entain enter Portugal, one of Europe’s fastest growing markets. Since its platform migration and brand alignment to bwin.pt the business ŝŨǂɆĈėŝėǘƢƖɆįƎŨśɆëɆŒëƎİėƎɆëŝĐɆĈƎŨëĐėƎɆ range of products with greater availability of live games whilst also leveraging our existing sportsbook strength alongside bwin’s partnership with Liga Portugal. Crystalbet continues to deliver strong growth with a leading market share of 32% and retaining its position as number one operator in the Georgian market. ÕėɆŨƋėŝėĐɆŨƪƎɆȻƖķŨƋɆŨįɆƢķėɆįƪƢƪƎėȼɆļŝɆ the UK that better connects with the retail environment.” Entain plc | Annual Report 2021 14 Strategic report Our business in Brazil continues to be the market leader, delivering exceptional growth with actives +156% and NGR +111%cc in 2021. Performance remains very strong and despite the heightened competition ahead of regulation of sports betting expected during 2022 (and gaming in 2023), the strength of our Sportingbet brands and operational expertise ensure we continued to outperform other operators, as there is clear demand for the high quality experience and breadth of product offering which Entain provides. PartyCasino and partypoker brands were consolidated to become One Party. The business performance was in-line with expectations, with pleasing growth in casino actives in particular. One Party continues its renewed focus on recreational players and their entertainment experience. The impact of Covid restrictions and associated disruptions impacted all our Retail operations throughout 2021, but to varying degrees. However, we were encouraged by the resilience of our Retail operations as customers demonstrated that they enjoy the in-store experience with volumes growing quickly as restrictions eased. Our shops in Europe were a step behind the UK on the recovery path due to the later easing of restrictions. Early reopening activity was machine-led with sports volumes returning with the football season and broader sporting calendar. Evolving the customer experience across Retail, leveraging digitalisation and improving the omni-channel journey is a key driver across our retail business in the UK with customers highly engaged with the range and depth of our offering. As part of our brand reinvigoration we leveraged the media value of our store windows through digitalisation of displays. Omnia, our proprietary EPOS system, is now fully rolled out in Great Britain and our in- house Betstation terminals, being enjoyed by customers in over 200 shops, have supercharged our machine-led growth for both sports and gaming. Positive feedback and encouraging data suggests customers are enjoying our Digital Hubs in the current 30 locations. Expanding into new markets ¶ķėƎėɆëƎėɆƖļİŝļǘĉëŝƢɆİƎŨǂƢķɆŨƋƋŨƎƢƪŝļƢļėƖɆ ëĉƎŨƖƖɆƢķėɆİŒŨĈėɆǂļƢķɆëƎŨƪŝĐɆɏǧǣɆĈļŒŒļŨŝɆļŝɆ long-term gross gaming revenues in over 50 regulated markets in Central & Eastern Europe, Latin America and Africa where we do not currently operate today. We have a strong track record of integration and value creation through M&A and completed four acquisitions during 2021 including Enlabs across the Baltics, Bet.pt in Portugal, Impala to drive access across Africa and Unikrn to take us into the esports wagering market. We have already been active in 2022 with three transactions to date. In February 2022, we acquired Avid Gaming which, through Sports Interaction, provides access to the highly attractive, fast growing and regulating sports betting and gaming market in Canada. Sports Interaction’s sports-led offering is highly complementary to Entain’s existing business, and the combination will provide customers with a broader offering of engaging products and services for customers in the Canadian market. With a portfolio of strong brands across the Group, some with global recognition such as bwin and Party, we are able to grow into new markets organically. We were one of ƢķėɆǘƎƖƢɆŨƋėƎëƢŨƎƖɆƢŨɆŒëƪŝĉķɆļŝɆŨŒŨśĈļëɆëƖɆ that market regulated and having acquired the enabling tools in Impala we will launch organically across Africa through 2022 and beyond. New market entries, both through M&A and organic expansion, collectively contributed 3% of Online NGR during the year. We continue to look for further opportunities to enter new, growing and regulated or regulating markets where we can drive greater value for shareholders. 15 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Chief Executive’s Review continued Engaging and attracting ŝėǂɇëƪĐļėŝĉėƖ Technology is changing consumer behaviour with new trends and ecosystems creating exciting opportunities. We are listening to the customers, we understand these changes, and we adapt and innovate to drive further growth across new audiences. Customers are seeking more content, more engagement, more interactive and social experiences, more video, more audio and more free-to-play entertainment. Simply put, interactive entertainment and media are converging with our traditional markets of betting and gaming. Entain sits at the heart of this convergence and provides us with a tremendous opportunity to leverage our platform to meet customers’ needs whilst attracting more customers into our network. This not only increases engagement and stickiness, ĈƪƢɆëŒƖŨɆƖƢëƎƢƖɆĉƎėëƢļŝİɆƋŨǂėƎįƪŒɆǙǈǂķėėŒɆ effects that enhance product cross-sell and reduce acquisition costs. During the year, we laid some of the foundations to grow into these markets ëŝĐɆƖƢëƎƢɆƢŨɆĈėŝėǘƢɆįƎŨśɆƢķŨƖėɆǙǈǂķėėŒɆ effects. As discussed above, in markets like the UK, Australia and Germany we have created rich content and media to engage customers around sports. These have ëŒƎėëĐǈɆƖķŨǂŝɆƖļİŝļǘĉëŝƢɆƖƪĉĉėƖƖɆļŝɆ broadening our actives base. We have created new products across both our free-to-play and real money offering that broadens engagement with customers. In August, we acquired Unikrn to provide access to the esports wagering market that we expect to be worth c$12bn over the medium term. Since the acquisition we have been re-setting the product suite and working with partners and regulators to develop a product that we will launch later this year. The casual mobile gaming market has grown rapidly in recent years and our technology, data analytics and other capabilities align with how this market ŨƋėƎëƢėƖșɆ¶ŨɆįƪŒŒǈɆĈėŝėǘƢɆįƎŨśɆƢķļƖɆśëƎŏėƢɆ we will likely acquire or partner with an existing operator. We believe that this market aligns closely with the evolving demands of our customers and will help ĐƎļǁėɆǙǈǂķėėŒɆėįįėĉƢƖɆŨįɆƎėĐƪĉļŝİɆĉŨƖƢƖȚɆ increasing stickiness and diversifying our revenue base. As we evolve Entain to address these changing customer needs and broaden our product markets, we will increasingly look to partnerships to expand our growth. For example, our partnership with McLaren provides richer and more engaging experiences for Formula 1 fans that are not available anywhere else. Our partnerships ǂļƢķɆ¶ɆʁɆÔėƎļǒŨŝɆǂļŒŒɆķėŒƋɆƪƖɆĈėŝėǘƢɆįƎŨśɆ innovative new experiences for customers. Technology continues to evolve and the Entain platform puts us in a unique position to be able to explore and innovate to create exciting new unique products and experiences for our customers. In order to accelerate that we have created the Ennovate hub supported by a £100m investment over three years. The Ennovate hub will develop new products around augmented reality (“AR”), virtual reality (“VR”), 5G and edge computing technology both directly and through funding for incubators and accelerators. We recently acquired an interest in Draw & Code, a leading immersive experience studio to develop VR products. We will also work with a number of partners such as Verizon, BT and Theta Labs in developing the technology and products that drive the emerging ecosystems within the metaverse. In addition, it will support initiatives in Entain’s Sustainability Charter around environmental and social issues as well as supporting EnTrain the Group’s global D&I initiative to provide more opportunities in technology and technology-related careers. We positively promote an inclusive culture as we believe that the more diverse your colleague group the better the business.” Entain plc | Annual Report 2021 16 Strategic report Sustainability ©ƪƖƢëļŝëĈļŒļƢǈɆļƖɆëƢɆƢķėɆķėëƎƢɆŨįɆėǁėƎǈƢķļŝİɆǂėɆĐŨȚɆëŝĐɆǂėɆǘƎśŒǈɆ believe that the most sustainable business will be the most successful business in our industry. Our Sustainability Charter underpins this approach and is built around four core principles: an exclusive focus on regulated markets; continuing to take the lead on responsible betting and gaming; best in class corporate governance; and investing in our people and local communities. Read more about our Sustainability Charter: pages 40 to 65 ÕėɆśëĐėɆƖļİŝļǘĉëŝƢɆƋƎŨİƎėƖƖɆëĉƎŨƖƖɆëŒŒɆ four of these during the year, many of ǂķļĉķɆǂėɆķļİķŒļİķƢėĐɆëƢɆŨƪƎɆǘƎƖƢɆ,ŝƢëļŝɆ Sustain event in November. Globally, we lead the industry on responsibility, with revolutionising player protection at the core of our approach. We continue to make great progress with ARC™ with both the real-time customer interaction trials and the international rollout well underway. It is pleasing to see our efforts being recognised externally with Entain being awarded Operator of the Year by EGR, and Socially Responsible Operator of the Year at the SBC Awards North America, our ĉŨŝƢļŝƪėĐɆƋëƎƢļĉļƋëƢļŨŝɆļŝɆƢķėɆD¶©,ǧEŨŨĐɆ index and the Dow Jones sustainability index as well as being recognised as a most admired company in Management Today’s annual awards. Focus on regulated markets We continue to make progress towards our commitment that all our revenues will come from regulated markets by the end of 2023. As at end of 2021, almost 100% of our NGR was from regulated or regulating markets, with Brazil, Canada and Netherlands ĈėļŝİɆƢķėɆśŨƖƢɆƖļİŝļǘĉëŝƢɆļŝɆƢķėɆƋƎŨĉėƖƖɆŨįɆ regulating within this. Being a trusted entertainment provider, protection of our customers is fundamental to our customer centric strategy. Operating in a well-structured regulatory regime ensures revenues have greater clarity and certainty and are ultimately more sustainable and therefore are of higher quality than earnings from non- regulated markets. Having withdrawn from a number of markets since November 2020, we continue to monitor the regulatory timetable for other countries, working closely with the relevant authorities to help develop a robust framework that protects players and maintains the highest regulatory standards. In October 2021, we ceased trading in the Netherlands whilst we await the licensing process to complete. We actively engage with regulators in order to help support a well-structured regulatory environment that balances a fair and open recreational market with the need to provide protections for the small minority of customers who may run into problems. In the UK, the 2005 Gambling Act is currently under a much-needed review that will set out the regulatory framework for years to come. We are contributing to this process both directly and with our industry peers through the Betting & Gaming ŨƪŝĉļŒɆƢŨɆķėŒƋɆǘŝĐɆƢķėɆƎļİķƢɆĈëŒëŝĉėɆįŨƎɆ a well-regulated market that protects the minority at risk, polices the fringes of the industry such as the black market and preserves the market as entertainment for the vast majority of customers who enjoy betting and gaming as part of their recreational activity. We are also engaging with regulators around the world to support emerging regulation around esports skill-based wagering as this market opens up across the world. 17 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ARC™ employs sophisticated algorithms, using 26 different markers of protection to identify signs of risk and, when needed, steps in to interact with the customer, modify the operation of games such as limiting stakes or slowing down play and suppressing marketing activity. Our initial trials have been very encouraging, with results showing a risk assessment accuracy of over 80%, a 120% uplift in the use of safer gambling tools by those most at risk and a 30% overall reduction in customers increasing their risk levels. Lead on Responsibility We continue to lead the market in the critically important area of responsible ĈėƢƢļŝİɆëŝĐɆİëśļŝİșɆƖɆëɆƎėǙėĉƢļŨŝɆŨįɆƢķėɆ importance of this across our business, in 2021 we introduced a responsible betting and gaming metric to our Group wide remuneration policy which, in 2022, will expand its measurement and accountability further into our international markets. Through our award-winning Changing for the Bettor safer betting and gaming programme, we take a holistic approach to protecting customers, investing millions into research, education and treatment. In 2021, we introduced ARC™ which, using revolutionary AI technology, operates in real-time, and, crucially, is individually tailored for each customer. It is built on a foundation of academic research and is designed to work invisibly in the background stepping in when needed. ƖɆëɆƎėǙėĉƢļŨŝɆŨįɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆƢķļƖɆ across our business, last year we introduced a responsible betting and gaming metric to our Group-wide remuneration policy.” ÕėɆĉŨŝƢļŝƪėɆƢŨɆƎėǘŝėɆ¡ʆȚɆëƖɆƢķėɆ programme continuously improves through machine-learning. Having been initially trialled in the UK, the programme is now being rolled-out internationally. $ƪƎļŝİɆƢķėɆŨǁļĐȯǤǬɆŒŨĉŏĐŨǂŝƖȚɆśļŝĐįƪŒɆŨįɆ the impact of restrictions on customers, we expanded our monitoring and markers of protection and increased communication and messaging to all customers on the importance of safer betting and gaming. Chief Executive’s Review continued Entain plc | Annual Report 2021 18 Strategic report Best in class corporate governance As a world-leading company we are committed to the highest standards of governance in all areas of our operations and our Board has been strengthened and revitalised during the year. In March 2021, Mark Gregory was appointed to the Board as an independent Non-Executive Director and as the Chair of the Remuneration Committee. The Board is now made-up of a Chairman, three Executive Directors and seven independent Non-Executive $ļƎėĉƢŨƎƖȚɆǂļƢķɆëɆǩǧɼțǦǩɼɆśëŒėɆƢŨɆįėśëŒėɆ gender split. In line with our objective to operate best in class corporate governance, we commissioned Alvarez & Marsal (“A&M”), ëŝɆļŝĐėƋėŝĐėŝƢɆƋƎŨįėƖƖļŨŝëŒɆǘƎśɆƢŨɆĉŨŝĐƪĉƢɆ a comprehensive review of the Group’s governance and compliance practices. Having completed their review, A&M concluded the Group had “put in place all the key components of a compliance framework to enable it to identify and manage its general compliance and regulatory risks”. While welcoming this positive assessment, the Group is taking ŨŝɆëɆŝƪśĈėƎɆŨįɆƖƋėĉļǘĉɆƎėĉŨśśėŝĐëƢļŨŝƖɆ within A&M’s report to further strengthen our processes. Best place to work and investing in our communities We want Entain to be a great place for our people to thrive, develop careers and feel empowered to do what’s right for our customers, our colleagues and our communities. We positively promote an inclusive culture as we believe that the more diverse your colleague group the better the business will be and, as importantly, will be better representative of our customer base. ÕėɆķëǁėɆëŒǂëǈƖɆķëĐɆëɆǙėǇļĈŒėɆëƋƋƎŨëĉķɆ ƢŨɆŨįǘĉėȯĈëƖėĐɆǂŨƎŏļŝİɆëŝĐɆǂļƢķɆƢķėɆ evolution taking place as a result of the Covid pandemic, we are further evolving ƢķëƢɆǙėǇļĈļŒļƢǈɆƎėĉŨİŝļƖļŝİɆƢķėɆŝėėĐƖɆŨįɆ ĐļįįėƎėŝƢɆƢėëśƖɆëŝĐɆĐļįįėƎėŝƢɆİŒŨĈëŒɆŨįǘĉėƖɆ will vary. We want to provide the right environment to continue to attract the best talent and to enable them to thrive. However, the power of collective thought and idea creation, particularly in face-to- face environments will remain a core part of how we do business and so we are evolving ŨƪƎɆǂŨƎŏƖƋëĉėƖɆƢŨɆėŝëĈŒėɆƢķëƢɆǙėǇļĈŒėɆĉŨȯ ordination to evolve. We have completely ƎėįƪƎĈļƖķėĐɆŨƪƎɆŨįǘĉėƖɆļŝɆ©ƢƎëƢįŨƎĐȚɆdŨŝĐŨŝɆ to create the right sort of collaborative environment for our people. We will be ƢėƖƢļŝİɆëŝĐɆƎėǁļėǂļŝİɆŨƪƎɆǘŝĐļŝİƖɆįƎŨśɆ this and take those into development of our ŨƢķėƎɆŨįǘĉėƖș We are committed to lightening our footprint on the planet and have already reduced our greenhouse gas emissions by 15% from 2018 to 2021. Last year, we committed to Net Zero carbon emissions by 2035 – 15 years ahead of the target set by the Paris Agreement on climate change. In doing so we have formally joined the Science Based Target initiative and are seeking to demonstrate leadership within our sector. Our two Foundations – the Entain Foundation and the Entain Foundation US, continue to support research into problem gambling, education initiatives that align with our sustainability ambitions as well as investing into local communities and grass roots sports across our key markets. In November we launched EnTrain, an initiative to provide access, education and technology for groups underrepresented across all sectors. EnTrain set the ambitious target to positively impact one million people through increased diversity in technology by the end of the decade. This builds on our partnerships with organisations such as Girls Who Code, ƢķėɇļŝƢėƎŝëƢļŨŝëŒɆŝŨŝȯƋƎŨǘƢɆĈŨĐǈɆǂŨƎŏļŝİɆ to close the gender gap in technology and ƎėĐėǘŝėɆƢķėɆļśëİėɆŨįɆǂķëƢɆëɆƋƎŨİƎëśśėƎɆ does; and The Tech Girls Movement Foundation, the Australian based foundation which is challenging gender stereotypes to increase female participation in STEM industries. The Entain Foundation is looking to build on these partnerships throughout 2022. The Entain Foundation has also continued to invest in grassroots sports through its Pitching In programme and partnered with the Pitching In Trident Leagues ĉŨŝƢëļŝļŝİɆǥǧǨɆĉŒƪĈƖɆëŝĐɆŨǁėƎɆǤǨȚǣǣǣɆ community based non-league football players. In addition to funding the running of the leagues, the Foundation is also the Founding partner in the Trident Community Fund, which enables clubs to run community engagement projects. In 2021 we also extended our long-term collaboration with SportsAid, the UK based sports charity, through which we sponsor and provide personal development coaching to 50 young athletes each year. We are also internationalising our investment in grassroots sport and are backing projects in Italy, Greece and Colombia. In Canada, since our recent acquisition of Avid Gaming and its Sports Interaction brand, Entain are delighted that our new unique relationship allows us to support the socioeconomic efforts of the Mohawks of Kahnawà:ke through our Mohawk Online agreement. Jette Nygaard-Andersen ķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎ 3 March 2022 19 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Our strategic framework The world leader in betting, gaming and interactive entertainment 2021 priorities 2021 progress Growth 1 – Leadership in North America Clear ambition to be the leading operator in the North American sports betting and iGaming market through BetMGM. Now the second biggest US operator, BetMGM achieved a 23% market share in the markets which it operates in, in the fourth quarter, in line with our long- term objective of 20% to 25. 2 – Grow our core markets Continue to grow rapidly in the 31 territories in which we already operate. We have now delivered nine years ŨįɆĐŨƪĈŒėȯĐļİļƢɆİƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡ɆǂļƢķɆëɆ two-year compound annual growth rate of 20%cc. 3 – Expanding into new markets ©ļİŝļǘĉëŝƢɆŨƋƋŨƎƢƪŝļƢļėƖɆėǇļƖƢɆįŨƎɆėǇƋëŝĐɆļŝƢŨɆŝėǂɆƎėİƪŒëƢėĐɆ markets through organic opportunities as well as M&A. Completed acquisitions of Enlabs in the Baltics, Bet.pt in Portugal, Impala to drive access across Africa and Unikrn to take us into the esports wagering market. 4 – Engaging and attracting new audiences Entain will be at the forefront of leveraging opportunities created as new technology-enabled forms of entertainment continuously evolve. Broadened focus to new areas of gaming entertainment, exploring new partnerships and opportunities. Sustainability 5 – Focus on regulated markets All revenues to derive from regulated markets by end of 2023. In 2021 nearly 100% of our revenue derived from nationally regulated or regulating markets. 6 – Lead on responsibility Our technology enables us to continuously upgrade and personalise our protections for customers. ¶ƎļëŒŒėĐɆŨƪƎɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢǈɆʁɆëƎėʆɆ ȩȹ¡ʆȺȪɆƋƎŨİƎëśśėɆƢŨɆƪƖėɆƢėĉķŝŨŒŨİǈɆƢŨɆ proactively intervene to prevent betting and gaming related harm developing. Establish appropriate safer betting and gaming metric to link remuneration with safer betting and gaming practices. 7 – Best in class standards of corporate governance Ensuring the highest standards in all areas of our operations. ©ƢƎėŝİƢķėŝėĐɆëŝĐɆĐļǁėƎƖļǘėĐɆŨƪƎɆŨëƎĐɆëŝĐɆ governance practices under Chairman ëƎƎǈɆEļĈƖŨŝșɆƋƋŨļŝƢėĐɆ¡ŨĈėƎƢɆLŨƖŏļŝɆëƖɆ ķļėįɇEŨǁėƎŝëŝĉėɆ{įǘĉėƎș 8 – Best place to work and investing in our people and communities Ensure Entain is the best place to work while contributing to communities where we are based and operate. In line with its with its commitment to donate £100m ƢŨɆİŨŨĐɆĉëƪƖėƖɆŨǁėƎɆǘǁėɆǈėëƎƖȚɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆ invested in research, education and treatment of problem gambling; its grassroots sports investment fund; and launched EnTrain, its diversity through technology programme. Our vision Entain plc | Annual Report 2021 20 Strategic report Bring moments of excitement into people’s lives Priorities for 2022 KPIs Risks Remuneration Enter new states as they regulate with market leading customer offer. Continue to innovate in existing markets focusing on product, brands and marketing. Identify new opportunities in the 50 regulated markets where we do not currently operate. Deliver new customer propositions outside of our traditional product offer. Market access 150m people NGR growth +13%cc Online net gaming revenue £3,067m Underlying EBITDA £881.7m Technology failure. Loss of key locations. Trading, liability and pricing management. Increased cost of product. Executive annual bonus ëƎėɇŒļŝŏėĐɆƢŨɆ{ƋėƎëƢļŝİɆ ƎŨǘƢȚɆ{ŝŒļŝėɆpE¡ɆİƎŨǂƢķɆ and safer betting and gaming targets and customer metrics. Work with authorities in ƎėśëļŝļŝİɆśëƎŏėƢƖɆƢŨɆǘŝĐɆ ëɇƋëƢķɆƢŨɆƎėİƪŒëƢļŨŝșɆ ŨŝƢļŝƪėɆƎŨŒŒȯŨƪƢɆŨįɆ¡ʆɆ and increase investment in all areas of research, education and treatment of problematic behaviour. Continuation of safer betting and gaming metric to make-up 15% of 2022 bonus payments for all ŨįǘĉėɆĈëƖėĐɆėśƋŒŨǈėėƖș Continue to diversify Board and evolve governance best practice. ¡ŨŒŒȯŨƪƢɆDŨƪŝĐëƢļŨŝɆ investment programmes in more international markets. Contribution to safer betting and gaming initiatives £12.9m Employee satisfaction with approach to wellbeing 87% Target set for carbon Net Zero throughout operations 2035 Commitment to Entain DŨƪŝĐëƢļŨŝɆŨǁėƎɆǘǁėɆǈėëƎƖ £100m Ensuring health, safety and wellbeing of our people. Ability to recruit and retain employees. Data breach and cybersecurity. Changes in betting and gaming legislation. Changes in betting and gaming tax regimes. Continued impact of Covid-19. DƪƎŒŨƪİķėĐɆĉŨŒŒėëİƪėƖɆ received 100% of salary. Safer betting and gaming metric for 2021 bonus schemes implemented. Achieved On target Not achieved ¡ėëĐɆśŨƎėțɆ pages 79–85 ¡ėëĐɆśŨƎėțɆ pages 40–65 ¡ėëĐɆśŨƎėțɆ pages 116–140 Key: Our purpose 21 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Bring moments of excitement into people’s lives 1. Our purpose LŨǂɆǂėɆĉƎėëƢėɆǁëŒƪė Growth We are focused on a range of exciting growth opportunities ƢķëƢɆǂļŒŒɆƖļİŝļǘĉëŝƢŒǈɆļŝĉƎėëƖėɆ the value of the Group. Sustainability We believe the most sustainable business will be the most successful business. 3. Our strategy ¡ėëĐɆśŨƎėțɆ pages 20 to 21 2. Our platform People and Talent Content Creation and Products Global Scale and Brand Awareness Marketing Excellence Proprietary Technology Ɇ nʁɆëŝĐɆQŝƢėİƎëƢļŨŝɆ¶ƎëĉŏɆ¡ėĉŨƎĐ Ɇ ƪƖƢŨśėƎɆ¡ėŒëƢļŨŝƖķļƋƖɆëŝĐɆ$ëƢë ɆɆ¡ėİƪŒëƢŨƎǈɆ,ǇƋėƎƢļƖėɆ ëŝĐɆ¡ėƖƋŨŝƖļĈļŒļty The Entain Platform provides us with unique competitive advantages to provide customers with a great experience and to deliver on our strategy Understanding and responding to customers’ needs, particularly as they ėǁŨŒǁėȚɆėŝëĈŒėƖɆƪƖɆƢŨɆĈėŝėǘƢɆįƎŨśɆ ƋŨǂėƎįƪŒɆǙǈǂķėėŒɆėįįėĉƢƖɆƢķëƢȚɆļŝɆ turn, broadens our customer reach, increases engagement and loyalty, grows revenues and drives down acquisition costs. 4. Delivering a differentiated customer experience Expanded interactive entertainment experience Great experience in real money gaming Enhanced content and media experience The Entain platform Entain plc | Annual Report 2021 22 Strategic report Customers Best betting and gaming experience We are focused on delivering our customers the most exciting and trusted entertainment. Online performance +19% pE¡ɆE¡ɆǥǣǤǬȱǥǣǥǤ ȩɣǥǣɼĉĉȪ Our people Great place to work In a global ‘Your Voice’ survey 87% of respondents reported that they felt Entain genuinely cared about our people. Satisfaction 87% Communities Community activity We actively support the communities in which we operate. Entain Foundation £100m ĉŨśśļƢƢėĐɆŨǁėƎɆǘǁėɆǈėëƎƖ Investors Positive returns Everything we do is ultimately focused on delivering value to our shareholders. Underlying EBITDA £881.7m +5% ǥǣǥǣțɆɞǫǧǦșǤś Dividends ¡ėĉŨİŝļƖļŝİɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆĐļǁļĐėŝĐƖɆƢŨɆ shareholders alongside our capital allocation priorities in support the Group’s growth strategy, ƢķėɇŨëƎĐɆĉŨŝƢļŝƪėɆƢŨɆŏėėƋɆƢķėɆƎėĉŨśśėŝĉėśėŝƢɆ ŨįɇƢķėɆƋëǈśėŝƢɆŨįɆĐļǁļĐėŝĐƖɆƪŝĐėƎɆŨŝİŨļŝİɆƎėǁļėǂș 6. Our stakeholder outcomes ¡ėëĐɆśŨƎėțɆ pages 66 to 76 Create moments of excitement Personalised offers. Effective marketing. Omni-channel approach. Great customer experience. Grow our business Gain market share. Maximise US opportunity. Enter new markets. Innovate for new audiences. Strengthen the quality of our earnings Diversify geographic and product mix. Broaden our customer base. Ɇ DŨĉƪƖɆŨŝɆƎėİƪŒëƢėĐɆśëƎŏėƢƖș Ɇ $ėŒļǁėƎɆƖĉëŒėɆėįǘĉļėŝĉļėƖș Ensure sustainability Be a great place to work. Ɇ $ėŒļǁėƎɆ¡ʆș Protect the environment. Support our communities. 5. How we add value ¡ėëĐɆśŨƎėțɆ pages 40 to 65 ¡ėëĐɆśŨƎėțɆ pages 13 to 18 ¡ėëĐɆśŨƎėțɆ pages 13 to 16 ¡ėëĐɆśŨƎėțɆ pages 24 to 25 23 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 enter be Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ Our strategy in action We are constantly working to provide a richer and more engaging experience for our customers. At the product level this means a continuous process of optimising our sites, apps and games to create the smoothest, most enjoyable experience. Free-to-play We have a built a hugely popular free-to-play portfolio that provides great entertainment at no cost to the customer. In Australia our Neds brand has introduced a live trivia quiz which takes place while sports are in play. At Coral we have a fully featured free arcade where customers can ǂļŝɆƋƎļǒėƖȚɆǂķļŒėɆdëĐĈƎŨŏėƖɆŨįįėƎƖɆǤȯǥȯDƎėėȚɆëɆ prediction game offering free bets. In the UK, our six free-to-play games are enjoyed by 700,000 customers a week, many of whom go on to enjoy our real money offer. Explore more in our ŨŝŒļŝėɆëŝŝƪëŒɆƎėƋŨƎƢțɆ www.entaingroup.com/2021annualreport m ore in our ŝƪëŒ ƎėƋŨƎƢț ŝƪëŒ Ɇ ƎėƋŨƎƢț Ɇ t i / 20 21 Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ 24 Strategic report tained Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ esports With our acquisition of Unikrn in August 2021, we got serious about esports. Boasting an audience ŨįɆŨǁėƎɆǧǨǣɆśļŒŒļŨŝɆǁļėǂėƎƖɆëŝŝƪëŒŒǈȚɆƢķėɆƖėĉƢŨƎɆ ļƖɆśŨƎėɆƋŨƋƪŒëƎɆǂļƢķɆǁļėǂėƎƖɆƢķëŝɆƢķėɆpDdȚɆpɆ or NLB. The global esports betting market is projected to be valued at $12bn by 2025. We are developing a dynamic new offer which will enable customers to bet against each other on their own performance, in either casual, skill-based games or in the massively popular blockbusters titles such as League of Legends and Counter Strike. The Group is also building an esports book where bets can be placed on professional esports athletes. The experience will be surrounded with rich media and social integrations. McLaren F1 In 2021 our partypoker and PartyCasino brands ƢėëśėĐȯƪƋɆǂļƢķɆnĉdëƎėŝɆ¡ëĉļŝİșɆDėëƢƪƎļŝİɆƢķėɆ Party brands on two of the fastest cars in DŨƎśƪŒëɆǤɆǂëƖɆŨŝŒǈɆƢķėɆĈėİļŝŝļŝİɆŨįɆƢķėɆƖƢŨƎǈșɆ Working with the McLaren team, we took fans behind the pit wall with the See the Unseen video ƖėƎļėƖɆļŝɆǂķļĉķɆĐƎļǁėƎɆ$ëŝļėŒɆ¡ļĉĉļëƎĐŨɆİëǁėɆķļƖɆ ƪŝļƍƪėɆļŝƖļİķƢƖɆļŝƢŨɆƢķėɆǂŨƎŒĐɆŨįɆDǤșɆ¶ķėɆƖėƎļėƖɆ proved a massive hit, having been viewed ŨǁėƎɆǧǣȚǣǣǣɆƢļśėƖșɆ©ėėɆƢķėɆ½ŝƖėėŝɆǂëƖɆƋëƎƢɆ of a broader McLaren Access content package that included rich media and money-can’t-buy competition prizes. Against the Odds 2021 was also the year that Coral turned documentary maker, creating Against the Odds, a groundbreaking series of 10 full-length sporting documentaries broadcast on primetime television ĈǈɆQ¶ÔșɆDėëƢƪƎļŝİɆƢķėɆƪŝļƍƪėɆƖƢŨƎļėƖɆŨįɆ$ëŝļƖķɆ international goalkeeper Kasper Schmeichel, ƢƎëļŒĈŒëǒļŝİɆįėśëŒėɆǙëƢɆŌŨĉŏėǈɆLŨŒŒļėɆ$ŨǈŒėɆëŝĐɆ darts world champion Gerwyn Price, the series captures some of the most inspiring stories in sport. Backed by social media campaigns, Against the Odds, which runs until July 2022, is enabling Coral to engage with customers in a more thought-provoking way. 25 Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ Overview | Strategic report | Governance | DļŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ new experie Our strategy in action continued Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ VR Arcades Through Ennovate, we are taking the immersive Ô¡ɆėǇƋėƎļėŝĉėɆƢŨɆĉƪƖƢŨśėƎƖɆŨŝɆƢķėɆķļİķɆƖƢƎėėƢȚɆ converting two of our betting shops into new Ô¡ɆƎėƢëļŒɆėǇƋėƎļėŝĉėɆǒŨŝėƖșɆŨŝƖƪśėƎƖɆǂļŒŒɆ soon be able to try out ground-breaking new experiences in immersive sports and interactive ėŝƢėƎƢëļŝśėŝƢɆįŨƎɆƢķėśƖėŒǁėƖșɆ{ƪƎɆǘƎƖƢɆÔ¡Ɇ arcades are expected to open in 2022. While we enrich the betting and gaming experiences on our core products to entertain our customers in the present, we are also looking to the future, expanding our horizons to develop new cutting-edge products which will thrill our customers tomorrow and beyond. In January 2022 we announced the launch of Ennovate, our global innovation hub, with a brand-new London- based lab, backed by £100m of funding. Entain plc | Annual Report 2021 26 Strategic report nces Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ Virtual Sports Club Soon to launch, we have developed a brand-new ĉŨŝĉėƋƢɆįŨƎɆƖŨĉļëŒļƖļŝİɆëƎŨƪŝĐɆƖƋŨƎƢɆȱɆƢķėɆǁļƎƢƪëŒɆ sports club. Utilising the world’s most popular Ô¡ɆķėëĐƖėƢƖɆƢķėɆ{ĉƪŒƪƖɆƪėƖƢɆǥȚɆĉƪƖƢŨśėƎƖɆǂļŒŒɆ be able to meet and hang out with each other in a virtual environment. There they will be able to chat, play games against each other, watch ĈƎŨëĐĉëƖƢɆƍƪëŒļƢǈɆŒļǁėȯƖƢƎėëśėĐɆƖƋŨƎƢļŝİɆǘǇƢƪƎėƖɆ and even place a bet. NFTs pD¶ƖɆŨƎɆpŨŝȯįƪŝİļĈŒėɆƢŨŏėŝƖȚɆëƎėɆƪŝļƍƪėɆĐļİļƢëŒɆ collectible assets which have rapidly exploded in popularity over the past year. In partnership ǂļƢķɆ¶ķėƢëɆdëĈƖȚɆǂėɆëƎėɆĐėǁėŒŨƋļŝİɆpD¶ƖɆƢŨɆ enable our customers to own unique moments ŨįɆĐļİļƢëŒɆķļƖƢŨƎǈșɆ{ƪƎɆǘƎƖƢɆpD¶ƖɆįƎŨśɆƋëƎƢǈƋŨŏėƎɆ will showcase some of the most iconic moments and tournament hands in the history of poker, while others will feature PokerApes, a series of ķļİķȯĐėǘŝļƢļŨŝɆļśëİėƖɆǂļƢķɆëɆƋëƎƢǈƋŨŏėƎɆƢǂļƖƢȚɆ featuring full 3D artwork. 27 Entain plc | Annual Report 2021 Overview | Strategic report | Governance | Financial statements Our strategy in action continued Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ As we entertain our customers, our number one priority remains ensuring they can play safely and within their means. Through our award- winning Changing for the Bettor safer betting and gaming programme, we take a holistic approach to protecting the customers, investing millions into research, education and treatment. prot player Entain plc | Annual Report 2021 28 Strategic report Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ ARC™ QŝɆǥǣǥǤɆǂėɆļŝƢƎŨĐƪĉėĐɆ¡ʆ ȱɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢǈɆëŝĐɆëƎėʆɆ ȱɆǂķļĉķɆƢëŏėƖɆëɆƢėĉķŝŨŒŨİǈȯŒėĐɆļŝƢėŒŒļİėŝƢɆëƋƋƎŨëĉķɆƢŨɆƎļƖŏɆƎėĐƪĉƢļŨŝșɆ ½ƖļŝİɆƎėǁŨŒƪƢļŨŝëƎǈɆQɆƢėĉķŝŨŒŨİǈȚɆ¡ʆ operates in real-time, and crucially, it is individually tailored for each customer. It is built on a foundation of academic research and will always be working invisibly in the background stepping in when needed. ¡ʆ employs sophisticated algorithms, utilising 26 different markers of protection to identify signs of risk and when needed steps in to interact with the customer, modify the operation of games such as limiting stakes or slowing down play and suppressing marketing activity. Our initial trials have been very encouraging, with results showing a risk assessment accuracy of over 80%, a 120% uplift in the use of safer gambling tools by those most at risk and a 30% overall reduction in customers increasing their risk levels. ÕėɆĉŨŝƢļŝƪėɆƢŨɆƎėǘŝėɆ¡ʆ , as the programme continuously improves ƢķƎŨƪİķɆśëĉķļŝėȯŒėëƎŝļŝİșɆLëǁļŝİɆĈėėŝɆļŝļƢļëŒŒǈɆƢƎļëŒŒėĐɆļŝɆƢķėɆ½bȚɆƢķėɆ programme is now being rolled-out internationally. ¡ėëĐɆśŨƎėț pages 46 to 47 HUMAN INTERVENTION GAME MODIFICATION COMMUNICATION CUSTOMER TOOLS POP-UPS MARKETING SUPPRESSION INTERVENE AND CONTINUE TO MONITOR IDENTIFY AND ASSESS RISK ection 29 Entain plc | Annual Report 2021 Overview | Strategic report | Governance | Financial statements the right Our strategy in action continued Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ Pitching In Sport is in our DNA at Entain and we are focused on providing support at the grassroots level, where it is most needed. In the UK we operate ƢǂŨɆǙëİƖķļƋɆƋƎŨŌėĉƢƖȚɆƋëƎƢŝėƎļŝİɆǂļƢķɆ©ƋŨƎƢƖļĐȚɆ ƢŨɆƋƎŨǁļĐėɆǈŨƪŝİɆëƢķŒėƢėƖɆǂļƢķɆƢķėļƎɆǘƎƖƢɆėǇƢėƎŝëŒɆ funding and personal development training and the Pitching In Trident Leagues, made up of ǥǧǨɆĉŒƪĈƖɆëƢɆƢķėɆķėëƎƢɆŨįɆŝŨŝȯŒėëİƪėɆįŨŨƢĈëŒŒșɆ QŝɆEƎėėĉėɆǂėɆƎƪŝɆŨƪƎɆ¶ėëśɆDƪƢƪƎėɆƋƎŨİƎëśśėȚɆ supporting the next generation of Greek athletes to reach their potential, with six bwin sponsored athletes featuring at the Tokyo Olympics. Elsewhere we are backing community football projects in countries including Italy, Germany and Colombia. ¡ėëĐɆśŨƎėț page 61 As a major international business, we embrace our responsibility to make a positive contribution to the societies and communities ļŝɆǂķļĉķɆǂėɆŨƋėƎëƢėɆȱɆļƢȼƖɆǂķëƢɆŨƪƎɆĉƪƖƢŨśėƎƖɆëŝĐɆĉŨŒŒėëİƪėƖɆ rightly expect of us. Our Sustainability Charter is at the heart of our business and sets out our commitment to operate exclusively in regulated or regulating markets, to lead on responsible gambling, pursue the highest standards in corporate governance and invest in our people and our communities. Net Zero We have taken an industry leading role on the environment, by formally committing to reach net zero for carbon emissions by 2035, 15 years ahead of the target set at the Paris Agreement. To deliver on this we are working with the Carbon Trust to develop our carbon reduction plan before submitting it to the Science Based Target Initiative. We are also working with an independent third-party to plant a one million tree Entain forest to capture carbon from the environment. ¡ėëĐɆśŨƎėțɆpages 63 to 65 Entain plc | Annual Report 2021 30 Strategic report thing Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ Chance for Childhood At the community level one of our largest projects has been supporting Chance for Childhood, the award- winning charity working in Africa to help the most vulnerable children. In partnership with them we are working to break the vicious cycle of poverty and exclusion through an approach tailored to the unique needs of each child. With this support įƎŨśɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝȚɆļŝɆǥǣǥǤɆ Chance for Children supported ǪǤǧɆśëƎİļŝëŒļƖėĐɆǂŨśėŝȚɆĉķļŒĐƎėŝɆ and families. EnTrain ƢɆ,ŝƢëļŝț©ƪƖƢëļŝɆǂėɆŒëƪŝĉķėĐɆ EnTrain, a global programme to promote increased access to, and diversity within, technology. We set a bold ambitious target for EnTrain to positively impact the lives of one śļŒŒļŨŝɆƋėŨƋŒėɆëƎŨƪŝĐɆƢķėɆǂŨƎŒĐɆȱɆėļƢķėƎɆ directly or through their families and ĐėƋėŝĐëŝƢƖɆȱɆĈǈɆǥǣǦǣșɆÕŨƎŏļŝİɆǂļƢķɆ ŝŨŝȯƋƎŨǘƢɆƋëƎƢŝėƎƖɆƖƪĉķɆëƖɆEļƎŒƖɆÕķŨɆ Code and the Tech Girls Movement DŨƪŝĐëƢļŨŝȚɆǂėɆëƎėɆĐėŒļǁėƎļŝİɆ programmes to inspire, educate and equip young women with the technology and IT skills to help them take leading roles in STEM industries ļŝɆƢķėɆįƪƢƪƎėșɆ,ŝ¶ƎëļŝɆėŝĉŨśƋëƖƖėƖțɆ the Entain Academy to develop tech skills; scholarships to provide academic learning; and apprenticeships to provide in-job training. ¡ėëĐɆśŨƎėțɆpages 61 to 62 31 Entain plc | Annual Report 2021 Overview | Strategic report | Governance | Financial statements 2017 £38.4bn 2012 £22.0bn 2018 £43.4bn 2013 £24.0bn 2019 £48.7bn 2014 £27.2bn 2020 £60.1bn 2015 £30.3bn 2021E £74.5bn 2016 £34.0bn The industry in which we operate Online Europe Geographically, the combined Online UK ëŝĐɆ,ƪƎŨƋėëŝɆśëƎŏėƢɆƎėƋƎėƖėŝƢƖɆǧǪɼɆŨįɆ the total online gaming market in 2021, with year-on-year growth of 18% and 20% ƎėƖƋėĉƢļǁėŒǈșɆ,ŝƢëļŝȼƖɆ{ŝŒļŝėɆƋƎŨįŨƎśëɆpE¡Ɇ in Europe represents over 70% of total EƎŨƪƋɆ{ŝŒļŝėɆpE¡ɆļŝɆǥǣǥǤș The next largest market is the unregulated Asian market (where Entain does not ŨƋėƎëƢėȪɆǂķļĉķɆƎėƋƎėƖėŝƢƖɆǥǫɼɆŨįɆƢķėɆ global total, followed by North America ȩǤǨɼȪȚɆ{ĉėëŝļëɆȩǪɼȪȚɆdëƢļŝɆśėƎļĉëɆ ȩǥɼȪȚɆëŝĐɆįƎļĉëɆȩǤɼȪșɆ,ŝƢëļŝɆëŒƖŨɆķëƖɆ online operations in Australia, Brazil, ëŝĐɇpŨƎƢķɆśėƎļĉëș Global Online Growth Entain operates in the global online gaming market, which is estimated to be worth c£75bn in 2021. Over the past 10 years ƢķėɆśëƎŏėƢɆİƎėǂɆëƢɆǤǧɼɆE¡ɆëŝĐɆİƎŨǂƢķɆ įƎŨśɆǥǣǥǣɆƢŨɆǥǣǥǤɆǂëƖɆǥǧɼȚɆĐƎļǁėŝɆĈǈɆ channel shift from pandemic enforced retail closures and the increasing number of US states legalising online gaming. 14% The global online market İƎėǂɆëƢɆǤǧɼɇE¡ɆŨǁėƎɆ the last 10 years. 47% UK and Europe represent half of the global online gaming market in 2021. 1. UK 13% 2. Europe 34% 3. Asia / Middle East 28% 4. North America 15% 5. Oceania 7% 6. Latin America / Caribbean 2% 7. Africa 1% 1 2 3 4 5 6 7 ©ŨƪƎĉėțɆ$ëƢëɆƋƎŨǁļĐėĐɆĈǈɆLǥɆEëśĈŒļŝİɆëƋļƢëŒȚɆ ƪŝŒėƖƖɇŨƢķėƎǂļƖėɆļŝĐļĉëƢėĐș Online Market by Product Online growth has been driven by product development, with the fastest growing product areas, Betting and Casino, growing at 29% and 23% vs. 2020 respectively. Entain’s brands offer online betting, casino, bingo, and poker; these products represent 87% of the total online gaming market in 2021. 87% Online betting, casino, bingo and poker represented 87% of all online gambling in 2021, with betting and casino forecast to have grown 27% globally. 1. Betting 54% 2. Casino 27% 3. State lotteries 12% 4. Poker 4% 5. Bingo 2% 6. Skill / other gaming / 1% commercial lotteries 1 2 3 4 56 Entain plc | Annual Report 2021 32 Strategic report Total Market ©ļǒėɆȱɆɞĈŝ Betting Casino Machines Bingo Lottery UK 4.8 14% 11% 24% 3% ǧǫɼ Italy 8.8 7% 1% ǧǦɼ 1% ǧǫɼ ¡{Q 0.5 29% 3% 36% 5% 28% Belgium 0.8 8% 6% 25% 0% 61% ȩ,ŝƢëļŝɆëƎėëƖɆŨįɆŨƋėƎëƢļŨŝƖɆëƎėɆķļİķŒļİķƢėĐȪ >85% Four operators account for over ǫǨɼɇŨįɇëŒŒɆ½bɆĈėƢƢļŝİɆƖķŨƋƖș 11% Online gaming is forecast to grow 11% CAGR between 2021 and 2026, with the US growing at 23%. 2022E 2023E 2024E 2025E 2026E 2021E £bn 100 110 120 130 90 80 70 60 50 40 30 20 10 0 Global Online UK Retail (Betting & Gaming) Italy Retail (Betting) Belgium Retail (Betting) ROI Retail (Betting) Forecast The Online gaming market is forecast ƢŨɆİƎŨǂɆëƢɆǤǤɼɆE¡ɆŨǁėƎɆƢķėɆŝėǇƢɆǘǁėɆ years driven by US regulation, product innovation, mobile growth, and the ƎėƢƪƎŝɆŨįɆ¡ėƢëļŒșɆ¶ķėɆ½©ɆİëśļŝİɆśëƎŏėƢɆ is forecast to grow at 23% over the next ǘǁėɆǈėëƎƖșɆ ½bɆ¡ėƢëļŒɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆļƖɆįŨƎėĉëƖƢɆ ƢŨɆİƎŨǂɆëƢɆǥɼɆE¡ɆƋŨƖƢɆƢķėɆƋëŝĐėśļĉɆ between 2023 to 2026. In our smaller ¡ėƢëļŒɆĈėƢƢļŝİɆĈƪƖļŝėƖƖėƖȚɆįŨƎėĉëƖƢėĐɆ İƎŨǂƢķɆļŝɆQƢëŒǈȚɆėŒİļƪśɆëŝĐɆ¡{QɆļƖɆǙëƢɆ ĈėƢǂėėŝɆǥǣǥǦɇƢŨɆǥǣǥǩșɆ Retail ,ŝƢëļŝȼƖɆŏėǈɆ¡ėƢëļŒɆŨƋėƎëƢļŨŝƖɆëƎėɆļŝɆƢķėɆ½bȚɆ QƢëŒǈȚɆėŒİļƪśȚɆëŝĐɆƢķėɆ¡ėƋƪĈŒļĉɆŨįɆQƎėŒëŝĐɆ ȩ¡{QȪș ¶ķėɆ½bɆ¡ėƢëļŒɆśëƎŏėƢɆȩėǇĉŒƪĐļŝİɆŒŨƢƢėƎļėƖȪɆ is estimated to be worth £2.5bn in 2021, a small decline from £3.0bn in 2020 ëŝĐɆƖļİŝļǘĉëŝƢŒǈɆŒŨǂėƎɆƢķëŝɆƢķėɆɞǨșǣĈŝɆ market in 2019. This decline is a direct result of enforced shop closures due to the pandemic. ,ǇĉŒƪĐļŝİɆƢķėɆƋëŝĐėśļĉȚɆƢķėɆ½bɆ¡ėƢëļŒɆ śëƎŏėƢɆķëƖɆƎėśëļŝėĐɆƎėŒëƢļǁėŒǈɆǙëƢɆŨǁėƎɆ the past 10 years, with growth in machines ŨįįƖėƢɆĈǈɆƢķėɆɞǥɆǥȯśëĉķļŝėɆȩDļǇėĐɆ{ĐĐƖɆ ėƢƢļŝİɆ¶ėƎśļŝëŒƖȪɆƖƢëŏėɆŒļśļƢɆļśƋŒėśėŝƢėĐɆ in April 2019 and the decline in betting driven by online channel shift. ¶ķėɆ½bɆ¡ėƢëļŒɆĈėƢƢļŝİɆƖėĉƢŨƎɆļƖɆĐŨśļŝëƢėĐɆ by four operators which account for over 85% of all betting shops. Entain is the number one operator in the UK, operating under the Ladbrokes and Coral brands. ¶ķėɆQƢëŒļëŝɆ¡ėƢëļŒɆĈėƢƢļŝİɆśëƎŏėƢɆļƖɆ estimated to be worth £0.7bn in 2021, a decline from £0.8bn in 2020 and £1.1bn in 2019, as enforced closures and restrictions as a result of Covid-19 impact the market. Entain operates via the Eurobet brand as the third largest operator in the market for over the counter sports betting in Italy. ¶ķėɆ¡{QɆëŝĐɆėŒİļƪśɆ¡ėƢëļŒɆĈėƢƢļŝİɆśëƎŏėƢƖɆ are much smaller, estimated to be worth £0.2bn and £0.1bn respectively in 2021. ,ŝƢëļŝɆŨƋėƎëƢėƖɆļŝɆėŒİļƪśɆëŝĐɆƢķėɆ¡{QɆ via the Ladbrokes brand and is the largest operator in Belgium and third largest in ƢķėɆ¡{Qș 33 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ¡ėİƪŒëƢŨƎǈɆ½ƋĐëƢė Gaming is a truly global market and in 2021 the Group held licences in 31 territories and jurisdictions. By the end of 2023, we have committed to only operate in regulated or regulating markets. The UK The UK Government’s review of the 2005 Gambling Act is ongoing, with the promise of a white paper setting out its conclusions sometime in 2022. We continue to engage government actively in this process, both directly and via our trade body. It is our consistent view, based on the experience we have with customers, that it is more sensible to target interventions on the small minority who may develop gambling problems, than to penalise the responsible majority. We therefore have continued to develop and enhance our ĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢǈɆëŝĐɆëƎėʆɆ ȩȹ¡ʆȺȪɆƋƎŨİƎëśśėȚɆǂķļĉķɆŨįįėƎƖɆƢëļŒŨƎėĐɆ ļĐėŝƢļǘĉëƢļŨŝɆŨįɆĉƪƖƢŨśėƎƖɆǂķŨɆśëǈɆĈėɆëƢɆ risk, as well as targeted interventions and ļŝƢėƎëĉƢļŨŝƖșɆLŨǂėǁėƎȚɆǂėɆįƪŒŒǈɆƖƪƋƋŨƎƢɆ sensible additional regulation where ŌƪƖƢļǘėĐșɆÕėɆëƎėɆƋëƎƢļĉļƋëƢļŝİɆļŝɆëɆƢƎļëŒɆŨįɆ an industry-wide database of those with gambling problems and working to develop a new industry ombudsman. Many of these changes can be implemented without the delay inherent in primary legislation and would represent the most expedient path. Germany On 1 July 2021, the new German online betting and gaming regulation (Interstate ¶ƎėëƢǈɆŨŝɆEëśĈŒļŝİȪɆĉëśėɆļŝƢŨɆėįįėĉƢșɆ Additionally, the new Joint Gambling ƪƢķŨƎļƢǈɆȩȹEEdȺȪɆļŝɆ©ëǇŨŝǈȯŝķëŒƢɆķëƖɆ been established on 1 July but will not be operational until 2023. With the new regulation entering into force, operators were able to apply for nationwide slots and poker licences. As a result, the Group submitted three slots and two poker licence applications for its key German facing brands at the end of August 2021. Due to various delays on the side of the licensing authority, no licences have been issued to this day, but the Group still fully expects its applications to be successful. Unlike slots and poker, casino table games will be regulated on a state-by-state, as opposed to nationwide, basis. The states may either create a monopoly or issue as many licences as the state has land-based casinos. By the end of 2021, only the states ŨįɆ©ĉķŒėƖǂļİȯLŨŒƖƢėļŝɆëŝĐɆpŨƎƢķɆ¡ķļŝėȯ Westphalia opted for a licensing system, with the tendering process not yet released. The Group has been taking steps towards securing adequate market access for these products. DƪƎƢķėƎśŨƎėȚɆëɆŝėǂŒǈɆļśƋŒėśėŝƢėĐɆǨșǦɼɆ stake tax on virtual slots came into effect on 1 July 2021. Entain has been taking steps ƢŨɆǘŒėɆëɆĉŨśƋŒëļŝƢɆëİëļŝƖƢɆƢķļƖɆƖƢëŏėɆƢëǇɆëƢɆ an EU Commission level as well as on an administrative court level in Berlin. United States The sports betting regulatory activity continues at pace in the United States. Arizona, Louisiana, Maryland and South Dakota are amongst the US states that have regulated and launched their sport betting markets in 2021 or early 2022. Crucially, the state of New York opened up its mobile sports betting market in early January 2022. In addition, other US states such as Massachusetts, Missouri and Georgia continue their efforts to regulate throughout 2022, with Ohio, having adopted sports betting legislation, launching its regulated sports betting market no later than on 1 January 2023. Indiana and Illinois continue to explore potential expansion of their markets to cover online casino. In light of the fact that some 30 US states have already allowed for sports betting in one form or another, the Group remains of the view that in the ĉŨśļŝİɆǈėëƎƖɆƖŨśėɆǦǨɆƢŨɆǧǣɆ½©ɆƖƢëƢėƖɆǂļŒŒɆ have regulated sports-betting, which will provide BetMGM, the Group’s US JV, with even broader market access across the country. The number of states that permit online casino is also expected to grow. Entain plc | Annual Report 2021 34 Strategic report Ǥș ©ŨƪƎĉėțɆLǥɆEëśĈŒļŝİɆëƋļƢëŒɆȩļŝĉŒƪĐļŝİɆĈŨƢķɆƎėİƪŒëƢėĐɆ ëŝĐɆŝŨŝȯƎėİƪŒëƢėĐɆEE¡Ȫș 2021 Global online gross gaming revenue In 2021 online global gross gaming revenue ǂëƖɆėƖƢļśëƢėĐɆƢŨɆĈėɆǁëŒƪėĐɆëƢɆɞǪǧșǨĈŝ 1 . Below are the largest 15 markets that are either regulated or in the process of regulating. Other Europe DŨŒŒŨǂļŝİɆëɆƖƪĐĐėŝɆĉķëŝİėɆļŝɆėŝįŨƎĉėśėŝƢɆ policy by the Dutch authorities, Entain ceased its offering to players in the Netherlands on 1 October 2021. In December we were able to submit our licence application and are currently awaiting feedback from the regulator. We hope to receive a licence ŒëƢėƎɆļŝɆLǤɆƢķļƖɆǈėëƎɆëŝĐɆėŝƢėƎɆƢķėɆƎėİƪŒëƢėĐɆ Dutch market. In 2021, we were granted permanent operating licences for our brands in Greece and we also relaunched the bwin brand in Portugal following our acquisition of bet.pt earlier in the year. dŨŨŏļŝİɆëķėëĐȚɆëɆŝėǂɆ¡ėƖƋŨŝƖļĈŒėɆEëśĈŒļŝİɆ ¡ŨǈëŒɆ$ėĉƎėėɆǂļŒŒɆĉŨśėɆļŝƢŨɆįŨƎĉėɆļŝɆ©ƋëļŝɆ in July 2022 which will require us to make adjustments to the way we interact with certain customers. In Italy, the Government is expected to announce gambling market reforms later this year, including reconciling national and local regulations; amendments to licensing rules; and new measures to tackle problem gambling. In Georgia, new online casino regulations will come into force in the Spring bringing new taxes, a ban on advertising and increasing the minimum age for gambling from 18 to 25. In Sweden, the Government recently announced that it would not reimpose Covid-19 related deposit and bonusing limits, instead opting to consolidate its efforts into a new gambling regulation bill, which will include provisions on B2B licences, śëƎŏėƢļŝİɇƎėƖƢƎļĉƢļŨŝƖɆëŝĐɆśėëƖƪƎėƖɆƢŨɆ tackle illegal gambling. Elsewhere in Europe, we are still expecting the Austrian Government to announce reforms to its online casino market and, in the meantime, continue to make the case for an open EU compliant licensing regime. Canada The regulated Ontario online gambling śëƎŏėƢɆǂļŒŒɆŒëƪŝĉķɆŨŝɆǧɆƋƎļŒɆǥǣǥǥșɆ {ŝƢëƎļŨɆǂļŒŒɆķëǁėɆƢķƪƖɆĈėĉŨśėɆƢķėɆǘƎƖƢɆ Canadian Province to allow for licensing of private operators, with other Provinces such as Alberta expected to follow in the foreseeable future. The Ontario regulation allows for sports betting, including single sports wagering (following the removal ŨįɆƢķėɆƋƎėǁļŨƪƖŒǈɆėǇļƖƢļŝİɆįėĐėƎëŒɆĈëŝȪɆ betting on esports, as well as online casino and poker. Entain has applied for ëŝɇ{ŝƢëƎļŨɆŒļĉėŝĉėș Latin America ¶ķėɆEƎŨƪƋɆǂëƖɆŨŝėɆŨįɆƢķėɆǘƎƖƢɆİŒŨĈëŒɆ operators to obtain a Colombian online betting and gaming licence in late 2020 and continues to deploy its Latin American regulatory strategy. The Group expects that the Brazilian sports betting market will be ƎėİƪŒëƢėĐɆĈǈɆƢķėɆƢļśėɆŨįɆƢķėɆǥǣǥǥɆDŨŨƢĈëŒŒɆ World Cup, with Entain entering the regulated market at that time pursuant to a domestic licence. In addition, the Chilean government remains on track to have regulated its online betting and gaming market by the end of 2022. ¡ėëĐɆśŨƎėɆëĈŨƪƢɆŨƪƎɆėŝİëİėśėŝƢɆ ǂļƢķɆƎėİƪŒëƢŨƎƖțɆpage 39 £9,068.25m £7,966.21m £2,650.65m £3,279.02m £2,785.22m £4,764.39m United Kingdom United States Germany Italy France Australia £1,523.77m £1,856.32m £1,164.84m £840.29m £702.90m £945.32m £822.82m £774.55m £733.58m Sweden Canada Spain Finland Denmark Greece Netherlands Poland Ireland 35Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 The Board recognises the importance of effective governance and operates in line with the UK reporting regulations. The information below should be ƎėëĐɆļŝɆĉŨŝŌƪŝĉƢļŨŝɆǂļƢķɆƢķėɆƎėƖƢɆŨįɆƢķėɆ©ƢƎëƢėİļĉɆ¡ėƋŨƎƢș Section 172 of the Companies Act 2006 imposes a general duty on Directors to act in a way that they consider, in good faith, to most likely promote the success of the ŨśƋëŝǈɆįŨƎɆƢķėɆĈėŝėǘƢɆŨįɆƖķëƎėķŨŒĐėƎƖɆëƖɆ a whole. The Directors in setting policies and strategies continue to have regard to the interests of the Group’s employees, shareholders, investors, suppliers, customers, regulators, including the impact of its activities on the community and on the Group’s reputation. These factors underpin the way in which the Directors discharge their duties and the Board is cognisant of the need to foster strong relationships with all stakeholders to help the Group deliver its strategy and support its long-term values including sustainability. Our approach The Board understands the importance of effective engagement with all of its stakeholders. Depending on the nature of the issue in question, the relevance of each stakeholder group may differ and not every decision the Board makes will necessarily result in a positive outcome for every stakeholder. The Board at each meeting ensures that the process of considering its stakeholders is embedded in papers it receives to enable it to discharge its duties. The Board monitors the progress and delivery of strategic initiatives through metrics reported in meetings. QŝɆëĐĐļƢļŨŝȚɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆ assesses the overall performance of the Group, including progress against its responsible betting and gaming ambitions as well as delivery against its Environmental, Social and Governance ȩȹ,©EȺȪɆƖƢƎëƢėİǈɆƢŨɆƖƪƋƋŨƎƢɆĐėĉļƖļŨŝɆśëŏļŝİɆ on remuneration outcomes. To ensure that the Group continues to operate in line with good corporate practice, Directors as part of their induction receive training on the scope and application of Section 172 to ensure that they are aware of how a Board, in its decision making, śƪƖƢɇĉŨŝƖļĐėƎɆļƢƖɆƖƢëŏėķŨŒĐėƎƖș Engaging with stakeholders Colleagues While the Board’s ability to meet with colleagues in person was again limited in 2021 by Covid-19 related restrictions, Board members have taken part in virtual employee events and heard colleagues around the Group giving their views on our strategy, purpose and responsible betting and gaming commitments. Virginia McDowell, Chair of the ESG Committee, was appointed as Designated Workforce Director in 2019. She has attended our Employee DŨƎƪśƖɆȩƎėƋƎėƖėŝƢļŝİɆƎėƢëļŒɆëŝĐɆĈƪƖļŝėƖƖɆ ĉŨŒŒėëİƪėƖȪɆëŝĐɆėŝİëİėĐɆļŝɆĐļƖĉƪƖƖļŨŝƖɆŨŝɆ topics including protecting our customers and how the Company has supported colleagues during Covid-19. Our CEO, Jette Nygaard-Andersen and Deputy CEO ëŝĐɆD{ȚɆ¡ŨĈɆÕŨŨĐɆëŒƖŨɆëƢƢėŝĐėĐɆƢķėɆ ,śƋŒŨǈėėɆDŨƎƪśȚɆǂļƢķɆėƢƢėɆëŝƖǂėƎļŝİɆ questions from colleagues around the EƎŨƪƋɆŨŝɆķėƎɆƋƎļŨƎļƢļėƖɆëŝĐɆƎėǙėĉƢļŨŝƖɆ following her appointment. We do not discriminate on the basis of age, disability, gender or gender reassignment, pregnancy or maternity, race, religion or belief, sexual orientation or marriage/civil partnership. ¡ėëĐɆśŨƎėțɆpages 57 to 59 Entain plc | Annual Report 2021 36 Strategic report Customers Our customers’ interests range from product availability, ethical behaviour, service, ƋƎļĉļŝİɇëŝĐɆƋƎŨśŨƢļŝİɆƎėƖƋŨŝƖļĈŒėɆëƢƢļƢƪĐėƖɆƢŨɆĈėƢƢļŝİɆëŝĐɆİëśļŝİșɆ¶ķėɆEƎŨƪƋȚɆëƖɆ part of its commitment to safer betting and gaming, engages through initiatives such ëƖɆ¡ėƖƋŨŝƖļĈŒėɆEëśĈŒļŝİɆÕėėŏȚɆǂķėƎėɆƎėƖƋŨŝƖļĈŒėɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƖƖëİėƖɆ ĐŨśļŝëƢėĐɇŨƪƎɆǂėĈƖļƢėƖɆëŝĐɆƖŨĉļëŒɆśėĐļëɆĉķëŝŝėŒƖșɆ In addition, the Group offers the Gamban software which blocks access to thousands of betting and gaming sites. In early 2021, the Group commissioned independent research to survey the views of the general public on betting and gaming related issues. We also established ‘The Players’ Panel’ to provide consumers with a platform to voice their opinions on issues relating to the regulation of betting and gaming in the UK. ¡ėëĐɆśŨƎėțɆpages 44 to 53 Shareholders The Group’s investors and shareholders expect, and get, a comprehensive view of the ǘŝëŝĉļëŒɆëŝĐɆƖƪƖƢëļŝëĈŒėɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆĈƪƖļŝėƖƖɆëƖɆǂėŒŒɆëƖɆëɆĉŒėëƎɆĉŨśśļƢśėŝƢɆ to, and delivery against ESG objectives. The Group undertakes regular conference calls and meetings with investors through roadshows, investor conferences, one to one ëŝĐɆİƎŨƪƋɆĉëŒŒƖȚɆƋƪĈŒļĉëƢļŨŝɆŨįɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢȚɆƋƎėƖƖɆƎėŒėëƖėƖɆëŝĐɆ©ƢŨĉŏɆ,ǇĉķëŝİėɆ announcements. In 2021, much of this activity was conducted virtually due to the limitation imposed by Covid-19 restrictions. During the year the Group conducted a ƢŨƢëŒɆŨįɆǪǧǪɆļŝǁėƖƢŨƎɆļŝƢėƎëĉƢļŨŝƖȚɆǂļƢķɆŨǁėƎɆǦǣǣɆƪŝļƍƪėɆļŝƖƢļƢƪƢļŨŝƖșɆ¶ķėƖėɆļŝƢėƎëĉƢļŨŝƖɆ ļŝǁŨŒǁėĐɆëɆĉŨśĈļŝëƢļŨŝɆŨįɆƢķėɆ,{ȚɆD{ȚɆƢķėɆķëļƎśëŝȚɆƢķėɆķļėįɆQ¡ɆʁɆŨśśƪŝļĉëƢļŨŝƖɆ {įǘĉėƎȚɆLėëĐɆŨįɆQ¡ɆëŝĐɆŨƢķėƎɆśëŝëİėśėŝƢɆëƖɆëƋƋƎŨƋƎļëƢėșɆ In addition to these meetings, the Group also held three shareholder events ƢķƎŨƪİķŨƪƢɆƢķėɆǈėëƎșɆ¶ķėɆǘƎƖƢȚɆķėŒĐɆļŝɆƋƎļŒɆ 2021 provided a detailed update on the Group’s BetMGM joint venture. This was followed in August with a capital markets day, updating on the Group’s strategic direction and opportunities, while in November, the Group held its inaugural ,ŝƢëļŝț©ƪƖƢëļŝɆƖƪƖƢëļŝëĈļŒļƢǈɆƖķŨǂĉëƖėȚɆ with a comprehensive presentation on the Group ESG and sustainability strategy. The Board receives feedback on shareholder views in different ways, including through the Chairman and executive management who meet regularly with shareholders throughout the year. In the past year the investor relations team conducted two feedback and audit exercises to better understand investors views based on a number of ƖëƢļƖįëĉƢļŨŝɆëŝĐɆĉŨŝǘĐėŝĉėɆśėëƖƪƎėƖɆ ȱɆļŝĉŒƪĐļŝİɆƋėƎĉėƋƢļŨŝɆŨįɆƢķėɆEƎŨƪƋȼƖɆ strategy, management and opportunities as well as delivery versus expectations and transparency. The quantitative analysis and qualitative feedback were presented to the Board during the year. The audits showed positive progress in investor engagement through the year with Entain performing more positively than the benchmark in all measures. In addition, Board members listen in to results and trading updates held by the Group for analysts and institutional investors and can hear directly the questions and comments on Company performance and are ŏėƋƢɆëĈƎėëƖƢɆŨįɆƎėŒėǁëŝƢɆŝėǂƖǙŨǂɆëŝĐɆ commentary on the Company throughout the year. ¡ėëĐɆśŨƎėțɆpage 99 37 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Engaging with stakeholders continued Suppliers The Group works responsibly with its suppliers and regularly reviews its customer and creditor payment policies. In 2021 we updated our Modern Slavery Statement to set out the steps taken to prevent modern slavery in our business and various supply chains. Our supplier interests range from fair trading, payment terms, success of the business and long-term partnerships. The Group engages with suppliers by direct engagement, supplier conferences and corporate responsibility and ethics reporting. The Board in its duties receives regular reporting on retail performance and modern slavery. ¡ėëĐɆśŨƎėțɆpage 111 The Community As set out in the Company’s Sustainability Charter, Entain is committed to supporting ƢķėɆĉŨśśƪŝļƢļėƖɆļŝɆǂķļĉķɆļƢɆļƖɆĈëƖėĐɆëŝĐɆŨƋėƎëƢėƖșɆ¶ķƎŨƪİķɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝȚɆƢķėɆ EƎŨƪƋɆķëƖɆĉŨśśļƢƢėĐɆƢŨɆļŝǁėƖƢļŝİɆɞǤǣǣśɆŨǁėƎɆǘǁėɆǈėëƎƖɆŨŝɆëɆƎëŝİėɆŨįɆƋƎŨŌėĉƢƖɆëŝĐɆ good causes including safer betting and gaming measures, investment in grassroots sport, reducing environmental impact, diversity in technology and projects with a clear link to our local communities. ɆǙëİƖķļƋɆƋƎŨŌėĉƢɆŨįɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆļƖɆ the Group’s Pitching In grassroots sport investment programme through which ƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆƖƪƋƋŨƎƢƖɆ¶ķėɆ Trident Leagues in the UK, made up of ǥǧǨɆĉŒƪĈƖɆëƢɆƢķėɆķėëƎƢɆŨįɆ,ŝİŒëŝĐȼƖɆŝŨŝȯ league football pyramid. In November, the Group announced its EnTrain initiative, setting a target of positively impacting one million lives through a range of diversity in technology projects by the end of the decade. The Company engages through the publication of its ESG report and employee-matched funding for charity policy. The Board has overall oversight of corporate responsibility planning and reporting as well as involvement in corporate affairs strategy which is delegated to the ESG Committee. The ESG Committee is advised by the executive ESG Steering Group and also works with external consultants which assist the operational units and review the environmental and social performance data. ¡ėëĐɆśŨƎėțɆpages 57 to 63 Entain plc | Annual Report 2021 38 Strategic report Regulators As a global operator and one of the world’s largest online betting and gaming companies, Entain engages with a wide variety of stakeholders. These include regulators, investors, trade associations, safer betting and gaming charities and customers. This engagement is ĉŨƎėɆƢŨɆŨƪƎɆëĈļŒļƢǈɆƢŨɆŨįįėƎɆǘƎƖƢɆĉŒëƖƖɆƋŒëǈėƎɆƋƎŨƢėĉƢļŨŝɆƢķƎŨƪİķɆŨƪƎɆĉƪƢƢļŝİɆėĐİėɆƢėĉķŝŨŒŨİǈɆ and product platform, while upholding all licensing objectives, across multiple jurisdictions. One of the key relationships we maintain is with our regulators. Liaising with our regulators on an open and regular basis helps us to ensure that each of them are fully apprised of our operating practices. Through this process we can help policymakers shape our industry environment to best serve our stakeholder group whilst operating in a legal and fair way. Governments and regulators UK Government departments. UK Gambling Commission. Governments and regulators in territories where we hold gaming licences. US state licensing bodies. National information commissioners. Domestic and International trade Associations. What are their expectations? Providing an enjoyable and safe leisure experience. Making sure we operate legally and in a fair manner. Minimising harm and maximising player protection. Ensuring that we protect the young and the vulnerable. Ɇ ¡ėĐƪĉļŝİɆĉƎļśėɆëŝĐɆ unlawful behaviour. How we engage Ongoing dialogue with regulators, domestic and international trade associations and local authorities. Ɇ ¡ėƖƋŨŝĐļŝİɆƢŨɆƢķėɆ½bɆEŨǁėƎŝśėŝƢȼƖɆ ¡ėǁļėǂɆŨįɆƢķėɆǥǣǣǨɆEëśĈŒļŝİɆĉƢș Numerous face-to-face meetings bilaterally or as part of industry meetings. Ɇ ƪëƎƢėƎŒǈɆśėėƢļŝİƖȚɆëƢɆëɆśļŝļśƪśȚɆ between the UK Gambling Commission and senior members of Entain’s leadership team. Detailing governance, risk management and safer betting and gaming strategies through submission to the UK Gambling Commission Annual Assurance Statement process. Ɇ ëƎƢŝėƎƖķļƋƖɆǂļƢķɆƢķėɆEɆLėëŒƢķɆʁɆ Safety Executive. Engagement with the Nevada Gaming Commission’s Compliance Committee Ɇ LŨƖƢļŝİɆëɆ©ëįėƎɆėƢƢļŝİɆëŝĐɆEëśļŝİɆ ¡ėƖėëƎĉķɆ©ǈśƋŨƖļƪśɆǂļƢķɆļŝƢėƎŝëƢļŨŝëŒɆ thought leaders, researchers and academics. Ɇ DŨƎśëŒɆśėėƢļŝİƖɆǂļƢķɆŨƪƎɆƎėİƪŒëƢŨƎƖɆļŝɆ Gibraltar, Malta, the US and our other global regulated jurisdictions. Engage with the Department of Justice in Ireland as it implements new Anti-Money dëƪŝĐėƎļŝİɆȩȹndȺȪɆƎėƍƪļƎėśėŝƢƖș Ɇ ¡ėƖƋŨŝĐɆƢŨɆįŨƎśëŒɆƎėİƪŒëƢŨƎǈɆ consultations including most recently the call for evidence on affordability by the UK Gambling Commission and ¡EɇĉŨŝƖƪŒƢëƢļŨŝƖɆļŝɆ©ƋëļŝɆëŝĐɆ©ǂėĐėŝș e-betting and gaming international workshops in Spain, annual industry meeting in Denmark and the ‘Licensing information session’ in Germany. Suspicious activity disclosed to relevant national bodies and membership ŨįɆŝëƢļŨŝëŒɆśëƢĉķȯǘǇļŝİɆƋŒëƢįŨƎśƖɆ ȩėİɆ©ƋëļŝȪș Engagement with regulatory authorities in regulating markets via local associations and advisors in the run up ƢŨɆŒļĉėŝƖļŝİɆȩėİɆpėƢķėƎŒëŝĐƖȚɆƎëǒļŒȪș¡ėëĐɆśŨƎėțɆpages 34 to 35 39 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 At Entain, we have proudly put sustainability on an equal footing to our growth strategy. We embrace our role within society and want to take the lead on the issues that matter to us – sustainability, diversity, and responsibility – with the strongly held belief that the most sustainable business in our industry will be the śŨƖƢɆƖƪĉĉėƖƖįƪŒșɆ¶ķļƖɆļƖɆƎėǙėĉƢėĐɆļŝɆŨƪƎɆ©ƪƖƢëļŝëĈļŒļƢǈɆķëƎƢėƎȚɆǂķļĉķɆŨƪƢŒļŝėƖɆŨƪƎɆ ,©EɆŒėëĐėƎƖķļƋɆëśĈļƢļŨŝƖɆëĉƎŨƖƖɆįŨƪƎɆƋļŒŒëƎƖș Commitments: Only operate in regulated markets by the end of 2023 Commitments: Take the lead on safer betting and gaming Commitments: Best-in class corporate governance Commitments: Best place to work Net-zero greenhouse gas ȩȹELEȺȪɆėśļƖƖļŨŝƖɆĈǈɆǥǣǦǨ 2021 highlights: Nearly 100% of revenues from regulated markets Exited three markets with no clear path to a sustainable and safe regulated betting and gaming industry 2021 highlights: ɆɆ©ƪĉĉėƖƖįƪŒɆƎŨŒŒȯŨƪƢɆŨįɆ ŨƪƎɆƋļŨŝėėƎļŝİɆ¡ʆɆ player protection programme across all UK online products Increased UK contributions ƢŨɆ¡,¶ɆƢŨɆǣșǨɼɆŨįɆEEÛ 2021 highlights: Jette Nygaard-Andersen ëƋƋŨļŝƢėĐɆëƖɆ,{ɆȱɆƢķėɆ ǘƎƖƢɆįėśëŒėɆ,{ɆŨįɆëɆ UK-listed betting and gaming company 2021 highlights: Launched Entrain #1 in the All-In Diversity Index ɆɆǪɼɆƎėĐƪĉƢļŨŝɆŨįɆELEɆ emissions from 2020, with 100% renewable energy in the UK and ROI retail estate Regulation Responsibility Corporate Governance People & Communities Long-term sustainability = Long-term success ©ƪƖƢëļŝëĈļŒļƢǈ Our commitment to sustainability Entain plc | Annual Report 2021 40 Strategic report Governance for long-term success ,ŝǁļƎŨŝśėŝƢëŒȚɆ©ŨĉļëŒɆëŝĐɆEŨǁėƎŝëŝĉėɆȩȹ,©EȺȪɆļƖƖƪėƖɆŒėëĐėƎƖķļƋɆ starts with strong governance. This is crucial to managing our non- ǘŝëŝĉļëŒɆƎļƖŏƖɆëŝĐɆŨƋƋŨƎƢƪŝļƢļėƖɆėįįėĉƢļǁėŒǈɆëŝĐɆėįǘĉļėŝƢŒǈȚɆǂķļŒƖƢɆ creating value for all our stakeholders. Our governance structure is now fully embedded and has proved effective in managing ƢķėɆļŝĉƎėëƖėĐɆƖĉëŒėȚɆĉŨśƋŒėǇļƢǈȚɆëŝĐɆėǇƋėĉƢëƢļŨŝƖɆŨįɆƢķėɆEƎŨƪƋșɆ {ƪƎɆĈėƖƢȯļŝȯĉŒëƖƖɆEŨǁėƎŝëŝĉėɆļƖɆŨǁėƎƖėėŝɆĈǈɆ¡ŨĈėƎƢɆLŨƖŏļŝɆëƖɆŨƪƎɆ ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎș The ESG Committee ¶ķėɆŨëƎĐȯŒėǁėŒɆ,©EɆŨśśļƢƢėėɆķëƖɆƪŒƢļśëƢėɆƎėƖƋŨŝƖļĈļŒļƢǈɆįŨƎɆ safer betting and gaming, regulatory compliance, anti-money ŒëƪŝĐėƎļŝİɆȩȹndȺȪɆëŝĐɆĉŨƪŝƢėƎȯƢėƎƎŨƎļƖśɆǘŝëŝĉļŝİȚɆëŝƢļȯĈƎļĈėƎǈɆ ʁɆĉŨƎƎƪƋƢļŨŝɆȩȹȺȪȚɆķėëŒƢķɆëŝĐɆƖëįėƢǈȚɆėŝǁļƎŨŝśėŝƢëŒɆļśƋëĉƢȚɆ ĐëƢëɆƋƎŨƢėĉƢļŨŝɆëŝĐɆĐļǁėƎƖļƢǈɆļŝɆƢķėɆǂŨƎŏƋŒëĉėșɆķëļƎėĐɆĈǈɆÔļƎİļŝļëɆ nĉ$ŨǂėŒŒɆŨŝėɆŨįɆŨƪƎɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȚɆƢķėɆŨśśļƢƢėėɆ ķëƖɆįŨƪƎɆśėśĈėƎƖɆëŝĐɆİƪļĐėƖɆƢķėɆĈƪƖļŝėƖƖɆŨŝɆëŒŒɆëƖƋėĉƢƖɆŨįɆ,©EɆ strategy, sets targets and monitors our performance. The ESG Steering Group ¶ķėɆ,©EɆ©ƢėėƎļŝİɆEƎŨƪƋɆǂķļĉķɆśėėƢƖɆŨŝɆëɆśŨŝƢķŒǈɆĈëƖļƖɆĉŨŝƖļƖƢƖɆ of functional leaders from across the business, including Investor ¡ėŒëƢļŨŝƖȚɆLƪśëŝɆ¡ėƖŨƪƎĉėƖȚɆŨƎƋŨƎëƢėɆįįëļƎƖȚɆdėİëŒȚɆLėëŒƢķȚɆ ©ëįėƢǈɆʁɆ©ėĉƪƎļƢǈȚɆ{ƋėƎëƢļŨŝƖȚɆëŝĐɆŨśśƪŝļĉëƢļŨŝƖșɆŨŝǁėŝėĐɆĈǈɆ ŨƪƎɆLėëĐɆŨįɆ,©EɆëŝĐɆķëļƎėĐɆĈǈɆŨƪƎɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȚɆƢķėɆ EƎŨƪƋɆŨǁėƎƖėėƖɆƢķėɆļśƋŒėśėŝƢëƢļŨŝɆŨįɆŨƪƎɆƖƪƖƢëļŝëĈļŒļƢǈɆƖƢƎëƢėİǈș ESG Committee Strategy ESG steering group Oversight Co-ordination DeliveryOperational teams Operating units Central functions Board Our governance structure is now fully embedded and has proved effective in managing the ļŝĉƎėëƖėĐɇƖĉëŒėȚɆ complexity and expectations of ƢķėɇEƎŨƪƋșȺ 41 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Our performance across ESG ratings providers ÕėȼƎėɆƋƎŨƪĐɆƢŨɆĈėɆëɆƖėĉƢŨƎɆŒėëĐėƎɆëśŨŝİƖƢɆśëŝǈɆŨįɆƢķėɆŒėëĐļŝİɆļŝĐėƋėŝĐėŝƢɆ,©EɆƎëƢļŝİƖɆƋƎŨǁļĐėƎƖșɆ¶ķėɆĈėŒŨǂɆƢëĈŒėɆƖƪśśëƎļƖėƖɆŨƪƎɆ ƋėƎįŨƎśëŝĉėȚɆëŝĐɆļśƋƎŨǁėśėŝƢɆŨǁėƎɆƢļśėșɆÕėɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆǂŨƎŏɆƢļƎėŒėƖƖŒǈɆƢŨɆįƪƎƢķėƎɆļśƋƎŨǁėɆŨƪƎɆ,©EɆƋƎëĉƢļĉėƖɆëŝĐɆƋėƎįŨƎśëŝĉėȚɆ ëŝĐɇķŨƋėɆƢŨɆƖėėɆƢķļƖɆƎėǙėĉƢėĐɆļŝɆƢķėƖėɆėǇƢėƎŝëŒɆëƖƖėƖƖśėŝƢƖșɆ Sustainability continued Agency Rating Evaluation Score Industry rank ƪƎƎėŝƢ Previous MSCI ,©EɆ©ĉŨƎė ɆȩŒėëĐėƎȪ 6.7 Ǩșǩ N/A Sustainalytics ,©EɆ¡ļƖŏɆ¡ëƢļŝİ Medium risk 21.5 27 ǤǨȦǫǫɆļŝɆƢķėɆ ëƖļŝŨƖɆʁɆEëśļŝİɆ ©ƪĈļŝĐƪƖƢƎǈɆ ISS ESG ,©EɆ©ĉŨƎė C ȯ 2 nd highest decile S&P Global ,©EɆ©ĉŨƎė ©ʁɆ©ƪƖƢëļŝëĈļŒļƢǈɆ ÛėëƎĈŨŨŏɆȩƎŨŝǒėɆĉŒëƖƖȪ ɆʁɆ$©QɆ,ƪƎŨƋėɆĉŨŝƖƢļƢƪėŝƢ 67 ǩǦ 94 th percentile ¡ėǘŝļƢļǁ ,©EɆ©ĉŨƎė Top quar tile 83 N/A 11/319 FTSE4Good ,©EɆ©ĉŨƎė Inclusion in D¶©,ǧEŨŨĐɆQŝĐėǇ 3.4 4.1 ǫǪ th percentile CDP ŒļśëƢėɆĉķëŝİėɆƖĉŨƎė Management B- D Taking coordinated action on climate issues Entain plc | Annual Report 2021 42 Strategic report Showcasing our ESG leadership at Entain:Sustain In November 2021, we held an in-depth sustainability showcase ƢŨɆķļİķŒļİķƢɆŨƪƎɆëƋƋƎŨëĉķɆƢŨɆ,©EɆëŝĐɆƋƎŨǁļĐėɆĐėƢëļŒɆŨŝɆëɆƎëŝİėɆ ŨįɆƖƪƖƢëļŝëĈļŒļƢǈɆƎėŒëƢėĐɆļŝļƢļëƢļǁėƖșɆLėŒĐɆëƖɆĈŨƢķɆëɆǁļƎƢƪëŒɆëŝĐɆļŝȯ ƋėƎƖŨŝɆėǁėŝƢɆļŝɆdŨŝĐŨŝȚɆȹ,ŝƢëļŝț©ƪƖƢëļŝȺɆįėëƢƪƎėĐɆƋƎėƖėŝƢëƢļŨŝƖɆ įƎŨśɆƢķėɆEƎŨƪƋȼƖɆƖėŝļŨƎɆśëŝëİėśėŝƢȚɆƢķėɆļŝĐėƋėŝĐėŝƢɆķëļƎɆŨįɆ ƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆëŝĐɆëĉëĐėśļĉƖɆįƎŨśɆƢķėɆLëƎǁëƎĐɆnėĐļĉëŒɆ ©ĉķŨŨŒȼƖɆ$ļǁļƖļŨŝɆŨŝɆĐĐļĉƢļŨŝșɆ¶ķėɆĐëǈɆëŒƖŨɆļŝĉŒƪĐėĐɆëɆŝƪśĈėƎɆ of panel discussions, featuring a cross section of sustainability experts. Alongside the main presentation the event also featured an exhibition area with representatives from a range of the internal ,ŝƢëļŝɆļŝļƢļëƢļǁėƖɆëƖɆǂėŒŒɆëƖɆƢķėɆEƎŨƪƋȼƖɆėǇƢėƎŝëŒɆĉŨśśƪŝļƢǈɆ ļŝǁėƖƢśėŝƢɆƋëƎƢŝėƎƖɆƖƪĉķɆëƖɆķëŝĉėɆįŨƎɆķļŒĐķŨŨĐɆëŝĐɆ©ƋŨƎƢƖļĐș ƢɆƢķėɆėǁėŝƢȚɆǂėɆƖķëƎėĐɆƢķėɆǘƎƖƢɆƎėƖƪŒƢƖɆëŝĐɆśļŒėƖƢŨŝėƖɆįƎŨśɆ ƢķėɆƢƎļëŒƖɆŨįɆ¡ʆȚɆŨƪƎɆƋļŨŝėėƎļŝİȚɆƢėĉķŝŨŒŨİǈȯŒėĐɆëƋƋƎŨëĉķɆƢŨɆ personalised player protection. We also announced the launch of our EnTrain initiative, with its target to positively impact a million people across the globe through providing greater diversity in technology. The inaugural event was attended by over 100 delegates in person, with nearly 200 joining virtually. We plan to share our progress in this format again in 2022. ESG Materiality We have a long-established discipline of assessing our material ,©EɆļƖƖƪėƖșɆ¶ķėƖėɆśëƢėƎļëŒɆļƖƖƪėƖɆëƎėɆƎėǁļėǂėĐɆëŝŝƪëŒŒǈɆëƖɆƋëƎƢɆ ŨįɆŨƪƎɆļŝƢėƎŝëŒɆ,©EɆƎėƋŨƎƢļŝİɆƋƎŨĉėƖƖɆëŝĐɆƪƋĐëƢėĐɆĈëƖėĐɆŨŝɆëŝǈɆ strategic and operational changes, as well as developments in the wider industry and society. Our current top material issues include: Ɇ QŝĐƪƖƢƎǈɆƖėŒįȯƎėİƪŒëƢļŨŝɆȩƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİȪ Protecting the young and the vulnerable through working practices Providing support for customers at risk and problem gamblers Ɇ ƪƖƢŨśėƎɆƋƎļǁëĉǈɆëŝĐɆĐëƢëɆƖėĉƪƎļƢǈ Providing safe and responsible products, including safeguards inherent in design Promotion of safer betting and gaming Talent attraction and retention Preventing betting and gaming being used to support crime or associated with crime Diversity and equal opportunity Towards the end of 2021, we commenced a project to conduct a full-scale review of our materiality assessment framework. This update will draw upon evolutions in materiality best practice, and align our process and issues considered to the strategic reorientation of our business and external landscape. The outputs ëŝĐɆƋƎŨĉėƖƖɆǂļŒŒɆļŝįŨƎśɆŨƪƎɆ,©EɆƖƢƎëƢėİǈɆİŨļŝİɆįŨƎǂëƎĐȚɆķėŒƋɆƪƖɆ ƢŨɆļĐėŝƢļįǈɆėśėƎİļŝİɆ,©EɆļƖƖƪėƖȚɆëŝĐɆƋƎļŨƎļƢļƖėɆƢķėɆśëƢėƎļëŒɆ,©EɆ issues relevant to investors, as well as our wider stakeholders. As part of this process, we will conduct a comprehensive consultation across a broad range of our stakeholder groups through surveys, interviews and desk-based research. The outputs of our new materiality assessment will be presented in our 2022 Annual Report. 43 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ©ëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİ ¡ėëĐɆśŨƎėɆëĈŨƪƢɆŨƪƎɆ©ƪƖƢëļŝëĈļŒļƢǈɆ ķëƎƢėƎțɆpage 40 It all starts with our seven principles for safer betting and gaming: Understand the problem To reduce gambling harm, we need to know ëƖɆśƪĉķɆëƖɆƋŨƖƖļĈŒėɆëĈŨƪƢɆļƢșɆ©ŨɆǂėȼƎėɆįƪŝĐļŝİɆ ƎėƖėëƎĉķɆƢŨɆķėŒƋɆƪƖɆǘŝĐɆƢķėɆĈėƖƢɆƖŨŒƪƢļŨŝƖș 1 Through advertising, marketing and sponsorships we’re promoting social responsibility. Promote responsible attitudes 3 With ‘responsible design’ principles, we’re making sure our products are safe as well as fun. Champion responsible product design ǩ We’re helping to educate thousands of young people and professionals about the potential risks of gambling harm and how to avoid them. Educate stakeholders 2 We’re funding treatment and support for people who suffer from gambling harm. Fund treatment for those in need Ǩ Within our products, we’re adding features that help customers to gamble safely. Within our processes, we’re using tech to lead the way in detecting problematic play, and within our industry we’re working to collaborate and innovate. Empower customers 4 At Entain, safer betting and gaming ļƖɇėǁėƎǈŨŝėȼƖɆĈƪƖļŝėƖƖșɆÕėȼƎėɆśëŏļŝİɆƖƪƎėɆƢķëƢɆ everyone we work with knows safer betting and gaming is core to all that we do. Change ourselves for the bettor 7 Entain plc | Annual Report 2021 44 Strategic report Our purpose is to bring moments of excitement to people’s lives. We do this by putting our customers at the centre of everything we do. This includes providing the best experience and taking the lead ŨŝɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİșɆÕķļŒƖƢɆƢķėɆEëśĈŒļŝİɆŨśśļƖƖļŨŝɆ found that 99.7% of betting and gaming players in the UK use these products safely, there are still customers that are at-risk of ķëƎśįƪŒɆĈėƢƢļŝİɆëŝĐɆİëśļŝİșɆ{ƪƎɆķëŝİļŝİɆįŨƎɆƢķėɆėƢƢŨƎɆƖëįėƎɆ betting and gaming strategy focuses on making Entain the safest and most trusted betting and gaming environment in the world. We have a vision to use data, technology, and evidence-based insights to deliver the most sophisticated and effective player ƋƎŨƢėĉƢļŨŝșɆÕėɆĐėŒļǁėƎɆƢķļƖɆǁļƖļŨŝɆëƖɆƋëƎƢɆŨįɆŨƪƎɆ¡ʆȺɆƋƎŨİƎëśśėȚɆ ǂķļĉķɆǂėɆķëǁėɆëĐǁëŝĉėĐɆƖļİŝļǘĉëŝƢŒǈɆļŝɆǥǣǥǤșɆ¡ʆɆĉƪƢƖɆëĉƎŨƖƖɆ ëŒŒɆƖƢƎëŝĐƖɆŨįɆƢķėɆķëŝİļŝİɆįŨƎɆƢķėɆėƢƢŨƎɆ©ƢƎëƢėİǈɆëŝĐɆƋŨƖļƢļŨŝƖɆ Entain as a leader in player protection. This section provides an ƪƋĐëƢėɆŨŝɆ¡ʆɆëŝĐɆŨƢķėƎɆŒėëĐļŝİɆļŝļƢļëƢļǁėƖɆƢķëƢɆëƎėɆĐėŒļǁėƎļŝİɆ on the seven pillars of our strategy. ķëŝİļŝİɆįŨƎɆƢķėɆėƢƢŨƎɆļƖɆįƪŒŒǈɆëŒļİŝėĐɆǂļƢķɆƢķėɆ½bɆEëśĈŒļŝİɆ ŨśśļƖƖļŨŝȼƖɆƋƎļŝĉļƋëŒɆŨĈŌėĉƢļǁėƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆĈėƢƢļŝİɆëŝĐɆ gaming is crime-free, fair, conducted openly, and protecting children and other vulnerable persons. Our strategy is global, and we pursue these objectives across all our operations. The safer betting and gaming regulatory landscape continues to evolve, and we work proactively with regulators globally to ensure that regulation protects players from betting and gaming related harm, without excessive restrictions that run the risk of driving customers to the unregulated black market. In the UK, we provided evidence and engagement as part of the ½bɆEŨǁėƎŝśėŝƢȼƖɆEëśĈŒļŝİɆĉƢɆƎėǁļėǂșɆÕėɆĉŨŝƢļŝƪėɆƢŨɆƖƪƋƋŨƎƢɆ the review, which is a step towards creating the highest possible regulatory standards. We co-ordinated the response with other betting and gaming operators, together with our industry body, the ėƢƢļŝİɆëŝĐɆEëśļŝİɆŨƪŝĉļŒɆȩȹEȺȪɆƢŨɆėŝƖƪƎėɆƢķėɆĈėƖƢɆƋŨƖƖļĈŒėɆ outcomes for players and the regulated marketplace. QŝɆǥǣǥǤȚɆǂėɆĉŨŝƢļŝƪėĐɆƢŨɆļŝĉƎėëƖėɆƢķėɆƋƎŨƋŨƎƢļŨŝɆŨįɆ½bɆEƎŨƖƖɆ EëśļŝİɆÛļėŒĐɆȩȹEEÛȺȪɆƢķëƢɆļƖɆĉŨŝƢƎļĈƪƢėĐɆƢŨɆŨƎİëŝļƖëƢļŨŝƖɆǂŨƎŏļŝİɆ ŨŝɆ¡ėƖėëƎĉķȚɆ,ĐƪĉëƢļŨŝɆëŝĐɆ¶ƎėëƢśėŝƢɆȩȹ¡,¶ȺȪɆƢŨɆǣșǨɼȚɆǂķļĉķɆ ėƍƪëƢėĐɆƢŨɆɞǤǥșǨśɆļŝɆǥǣǥǤɆȱɆŨǁėƎɆƖėǁėŝɆƢļśėƖɆśŨƎėɆƢķëŝɆƢķėɆ ƎėĉŨśśėŝĐėĐɆƎėƍƪļƎėśėŝƢɆĈǈɆƢķėɆ½bɆEëśĈŒļŝİɆŨśśļƖƖļŨŝșɆ The four largest operators in the UK have pledged to scale up RET funding to 1% by 2023. Entain has gone further and committed to reach this commitment one year earlier by 2022. These RET ĉŨŝƢƎļĈƪƢļŨŝƖɆǂėƎėɆƋƎŨǁļĐėĐɆƢŨɆEëśĈŒėǂëƎėȚɆëɆİƎëŝƢȯśëŏļŝİɆ charity that is wholly independent and has a framework agreement ǂļƢķɆƢķėɆļŝĐƪƖƢƎǈɆƢŨɆĐėŒļǁėƎɆƢķėɆpëƢļŨŝëŒɆ©ƢƎëƢėİǈɆƢŨɆ¡ėĐƪĉėɆ EëśĈŒļŝİɆLëƎśƖș QŝɆƢķėɆ½©ɆëŝĐɆƢķėɆśėƎļĉëƖȚɆëƖɆëɆŝƪśĈėƎɆŨįɆŌƪƎļƖĐļĉƢļŨŝƖɆŒëƪŝĉķɆ regulated betting markets, we are scaling up our level of support of safer betting and gaming organisations to ensure that the correct support processes and pathways are established in these new and growing markets. We continue to proactively engage with regulators in these markets, including a digital roadshow. We have ëŒƖŨɆƖėƢɆƪƋɆëɆ½©Ɇ¡ėİƪŒëƢŨƎǈɆĐǁļƖŨƎǈɆŨśśļƢƢėėɆĉŨŝƖļƖƢļŝİɆ ŨįɆ,ŝƢëļŝɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆ$ëǁļĐɆ©ëƢǒȚɆƢķƎėėɆįŨƎśėƎɆ½©Ɇ ƎėİƪŒëƢŨƎƖɆëŝĐɆśėśĈėƎƖɆŨįɆƢķėɆ,ŝƢëļŝɆEŨǁėƎŝëŝĉėɆƢėëśȚɆƢŨɆëĉƢɆëƖɆ a sounding board to review Entain’s regulatory policies. We have also implemented our commitment to include a safer ĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉɆļŝɆŨƪƎɆEƎŨƪƋȯǂļĐėɆëŝŝƪëŒɆĈŨŝƪƖɆ ƖĉķėśėɆȩƖėėɆƋëİėɆǤǥǩȪșɆ¶ķļƖɆǈėëƎȼƖɆƢëƎİėƢƖɆǂėƎėɆëƖƖėƖƖėĐɆëİëļŝƖƢɆ ĉėƎƢëļŝɆśļŒėƖƢŨŝėƖɆŨįɆƢķėɆĐėŒļǁėƎǈɆŨįɆƢķėɆ¡ʆɆƋƎŨİƎëśśėșɆ In 2022, as the programmes mature, we will be shifting to outcomes-based performance metrics – to ensure that our world- leading player protection features are having a positive and measurable impact on our customers. Our leadership in this area was recognised at the end of the year on both sides of the Atlantic with Entain being named Operator of ƢķėɆÛėëƎɆëƢɆƢķėɆǥǣǥǤɆ,E¡Ɇ{ƋėƎëƢŨƎɆǂëƎĐƖȚɆƢķėɆļŝĐƪƖƢƎǈȼƖɆƋƎėśļėƎɆ ëǂëƎĐƖɆėǁėŝƢȚɆëŝĐɆëƖɆ©ŨĉļëŒŒǈɆ¡ėƖƋŨŝƖļĈŒėɆ{ƋėƎëƢŨƎɆŨįɆƢķėɆÛėëƎɆëƢɆ ƢķėɆ©ɆǂëƎĐƖɆpŨƎƢķɆśėƎļĉëș 45 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ¡ʆɆļƖɆŨƪƎɆƋļŨŝėėƎļŝİɆëƋƋƎŨëĉķɆƢŨɆĉƪƖƢŨśėƎɆƋƎŨƢėĉƢļŨŝȚɆĈǈɆ limiting customer exposure to risk at an individual level. It switches our player protection approach from reactive to proactive, and allows players to receive the intervention they need in real time, ŝŨƢɆëįƢėƎɆƢķėɆįëĉƢșɆ¡ʆɆƎėƋƎėƖėŝƢƖɆëɆįƪŝĐëśėŝƢëŒɆƖķļįƢɆļŝɆŨƪƎɆ approach to player protection, and is the driving force behind our vision to be the go-to platform for safe play. Using behavioural indicators, data science and analytics to assess ƎļƖŏɆļŝɆĈėƢƢļŝİɆëŝĐɆİëśļŝİȚɆ¡ʆɆǂŨƎŏƖɆĈėķļŝĐɆƢķėɆƖĉėŝėƖɆƪƖļŝİɆ ëĐǁëŝĉėĐɆëƎƢļǘĉļëŒɆļŝƢėŒŒļİėŝĉėɆƢŨɆŒėëƎŝɆëŝĐɆļĐėŝƢļįǈɆƎļƖŏƖɆļŝɆƋŒëǈėƎɆ behaviour so we can intervene before a problem develops. QŝɆǥǣǥǤȚɆǂėɆĉŨśśėŝĉėĐɆŒļǁėɆƢƎļëŒŒļŝİɆŨįɆ¡ʆɆļŝɆƢķėɆ½bȚɆëŝĐɆĈǈɆƢķėɆ ėŝĐɆŨįɆǥǣǥǤȚɆ¡ʆɆǂëƖɆƎŨŒŒėĐɆŨƪƢɆëĉƎŨƖƖɆŨƪƎɆėŝƢļƎėɆƋŒëƢįŨƎśɆįŨƎɆëŒŒɆ UK jurisdictions. In 2022, we will commence our work on adapting ëŝĐɆļśƋŒėśėŝƢļŝİɆ¡ʆɆļŝɆƖŨśėɆŨįɆŨƪƎɆŏėǈɆśëƎŏėƢƖɆŨƪƢƖļĐėɆŨįɆ the UK. Advanced Responsibility & Care™: Using data and technology to provide sector-leading player protection What does ARC™ involve? Protector Model: Identifying high-risk behaviour in real time Our leading Protector Model was launched in June 2021. It allows us to identify and understand customers who need our support the most, ļŝƢėƎǁėŝļŝİɆǂļƢķɆśėëƖƪƎėƖɆǂķļĉķɆëƎėɆƖƋėĉļǘĉɆƢŨɆƢķėļƎɆŝėėĐƖșɆ¡ʆɆ ƖļİŝļǘĉëŝƢŒǈɆėǇƢėŝĐƖɆƢķėɆśëƎŏėƎƖɆŨįɆƋƎŨƢėĉƢļŨŝɆĈėǈŨŝĐɆśėƎėŒǈɆǘŝëŝĉļëŒɆ markers to other behavioural characteristics that might suggest high- ƎļƖŏɆƋŒëǈļŝİșɆ{ƪƎɆśŨĐėŒɆĐƎëǂƖɆƪƋŨŝɆǥǩɆƎėƖėëƎĉķȯĈëĉŏėĐɆśëƎŏėƎƖɆȱɆŨǁėƎɆ three times more than in the past – adding further sophistication to improve the accuracy of identifying high-risk behaviour. As a result, we found that our predictor model is able to identify high-risk behaviour ǂļƢķɆǫǣɼɆëĉĉƪƎëĉǈș These markers developed through our partnerships with leading research institutions and consultancies, including lived experience ļŝƖļİķƢƖɆįƎŨśɆ,QɆ¡ļƖŏɆnëŝëİėśėŝƢȚɆƎŨįėƖƖŨƎɆnëƎŏɆEƎļįǘƢķƖɆŨįɆ pŨƢƢļŝİķëśɆ¶ƎėŝƢɆ½ŝļǁėƎƖļƢǈȚɆëŝĐɆëśĈƎļĐİėɆLėëŒƢķɆŒŒļëŝĉėɆ$ļǁļƖļŨŝɆŨŝɆ ĐĐļĉƢļŨŝȚɆëɆLëƎǁëƎĐɆnėĐļĉëŒɆ©ĉķŨŨŒɆDëĉƪŒƢǈșɆ,ǇëśƋŒėƖɆŨįɆƢķėƖėɆśëƎŏėƎƖɆ ļŝĉŒƪĐėɆǙƪĉƢƪëƢļŨŝƖɆļŝɆƖƢëŏėɆŒėǁėŒƖȚɆėƎƎëƢļĉɆƋŒëǈɆĐƪƎļŝİɆëɆƖļŝİŒėɆƖėƖƖļŨŝɆ and signs that a player might be chasing losses. Safer betting and gaming continued Entain plc | Annual Report 2021 46 Strategic report Support for higher-risk players Through a complete redesign of the user experience and customer communications together with the deployment of two new İëśĈŒļŝİɆĉŨŝƢƎŨŒƖɆȩŒëǈɆƎėëŏɆëŝĐɆ$ėƋŨƖļƢɆƪƎįėǂȪɆǂėɆķëǁėɆ ĈėėŝɆëĈŒėɆƢŨɆƖļİŝļǘĉëŝƢŒǈɆļŝĉƎėëƖėɆƢķėɆƪƖėɆŨįɆëĉĉŨƪŝƢɆĉŨŝƢƎŨŒƖșɆ The on-site interactive interceptors have meant that as well as being able to intervene and speak to a customer quickly, we can also recommend a gambling control for that customer based on ƢķėļƎɆƖƋėĉļǘĉɆƋŒëǈɆëŝĐɆŝėėĐƖșɆ¶ķėƖėɆļŝƢėƎĉėƋƢŨƎƖɆķëǁėɆƎėƖƪŒƢėĐɆļŝɆ more than 90% of our highest-risk players showing a reduction in risky play. ƖɆƋëƎƢɆŨįɆ¡ʆɆǂėɆķëǁėɆëŒƖŨɆśëĐėɆƖƢėƋȯĉķëŝİėɆļśƋƎŨǁėśėŝƢƖɆ in some of our safer gambling tools, including a budget calculator and improvements to our safer gambling help page – providing players with seamless access to engaging and research-backed safer gambling support and content. Protect using real-time interventions We are using advanced analytics real-time capabilities of our Protector Model to identify customers who deposit more than they ƪƖƪëŒŒǈɆǂŨƪŒĐɆǂļƢķļŝɆëɆƖėƖƖļŨŝɆŨįɆƋŒëǈșɆ{ŝĉėɆļĐėŝƢļǘėĐȚɆëɆĉƪƖƢŨśėƎɆ will initially be advised that they are depositing more than normal and offered the chance to reassess their depositing. If they do not take action by setting a control themselves, we will step in and prevent further deposits being made. As a result, we are seeing positive actions by customers with a ƎėĐƪĉƢļŨŝɆļŝɆķļİķėƎɆĐėƋŨƖļƢƖɆëŝĐɆëɆƖļİŝļǘĉëŝƢɆƎėĐƪĉƢļŨŝɆļŝɆƢķėɆ number of customers who raise their depositing. Encouragingly we ëŒƖŨɆƖėėɆëɆǥǨɼɆĐėĉƎėëƖėɆļŝɆĐėƋŨƖļƢƖɆįŨŒŒŨǂļŝİɆƢķėɆļŝļƢļëŒɆļŝƢėƎëĉƢļŨŝȚɆ ëŝĐɆëɆǪǨɼɆĐėĉƎėëƖėɆļŝɆƢķėɆŝƪśĈėƎɆŨįɆƋŒëǈėƎƖɆǂķŨɆƋƎėǁļŨƪƖŒǈɆǂŨƪŒĐɆ have continued to increase their spending. Almost all customers return to their previous betting norms shortly after intervention ĈǈɆ¡ʆșɆ¶ķļƖɆśėëŝƖɆŨƪƎɆśėƖƖëİļŝİɆļƖɆƋŨƖļƢļǁėŒǈɆİƪļĐļŝİɆƢķėļƎɆ experience to remain safe. Our plans for 2022 ¡ʆɆļƖɆĉŨŝƢļŝƪëŒŒǈɆļśƋƎŨǁļŝİȚɆǂļƢķɆƎėİƪŒëƎɆƢėƖƢļŝİɆëŝĐɆėǇƋėƎƢɆ analysis to build on our initial successes and further enhance player protection. In 2022, we will continue to build on the success ŨįɆ¡ʆȚɆǂļƢķɆëŝɆėǇĉļƢļŝİɆƎŨëĐśëƋɆŨįɆļŝĐļǁļĐƪëŒļƖėĐɆįėëƢƪƎėƖɆ and improved modelling that will enhance its effectiveness and functionality. Real-time tools: Over the coming months we will be implementing more real-time tools including those concerning long session lengths, declined deposits and large withdrawals. ƎŨĐƪĉƢȯƖƋėĉļǘĉɆļŝļƢļëƢļǁėƖ: We will also be implementing product- ƖƋėĉļǘĉɆļŝļƢļëƢļǁėƖɆƢķëƢɆǂļŒŒɆƋƎŨǁļĐėɆƋŒëǈėƎɆƖƪƋƋŨƎƢɆëƢɆëɆśŨƎėɆ granular level. ¡ėëŒȯƢļśėɆƋŒëǈėƎɆļĐėŝƢļǘĉëƢļŨŝ: We are further developing our Protector Model to enhance its real-time predictive nature and potentially halt any risk-conducive behaviour before it becomes a problem. InternationalțɆQŝɆëĐĐļƢļŨŝȚɆǂėɆǂļŒŒɆëŒƖŨɆļŝƢƎŨĐƪĉėɆ¡ʆɆļŝƢŨɆśëƎŏėƢƖɆ beyond the UK, with a target to introduce it to nine new markets in 2022. We will adopt a staged approach to the international ƎŨŒŒɆŨƪƢȚɆƢŨɆėŝƖƪƎėɆƢķëƢɆ¡ʆɆƋƎŨǁļĐėƖɆƢķėɆƖëśėɆķļİķɆŒėǁėŒɆŨįɆ player protection, whilst adapting it to meet the unique regulatory, ĉƪŒƢƪƎëŒȚɆëŝĐɆİëśėȯƖƋėĉļǘĉɆƎėƍƪļƎėśėŝƢƖɆļŝɆėëĉķɆśëƎŏėƢș The effectiveness of ARC™ is linked to remuneration ¶ķėɆļśƋŨƎƢëŝĉėɆŨįɆ¡ʆɆëŝĐɆŨƪƎɆĉŨśśļƢśėŝƢɆƢŨɆ,©EɆëŝĐɆƖëįėƎɆ İëśĈŒļŝİɆļƖɆƎėǙėĉƢėĐɆļŝɆŨƪƎɆĉŨŒŒėëİƪėɆëŝĐɆėǇėĉƪƢļǁėɆƎėśƪŝėƎëƢļŨŝɆ ƖƢƎƪĉƢƪƎėșɆQŝɆǥǣǥǤȚɆǤǨɼɆŨįɆƢķėɆEƎŨƪƋɆëŝŝƪëŒɆĈŨŝƪƖɆƖĉķėśėɆļƖɆ ĈëƖėĐɆŨŝɆƢķėɆĈƪƖļŝėƖƖɆĐėśŨŝƖƢƎëƢļŝİɆƢķëƢɆƢķėɆ¡ʆɆśŨĐėŒƖɆëƎėɆ successfully implemented, able to understand who the problem İëśĈŒėƎƖɆëƎėȚɆëŝĐɆǂķǈɆƢķėǈȼƎėɆĉŒëƖƖļǘėĐɆëƖɆƖƪĉķșɆ¶ŨɆėŝƖƪƎėɆƢķėɆ ĉƎėĐļĈļŒļƢǈɆŨįɆƢķėɆƋƎŨĉėƖƖȚɆǂėɆĉŨśśļƖƖļŨŝėĐɆ,QɆ¡ļƖŏɆnëŝëİėśėŝƢɆ to provide an independent review to determine whether we reached our targets for the year. QŝɆǥǣǥǥȚɆƢķėɆ,©EɆĉŨśƋŨŝėŝƢɆŨįɆŨƪƎɆEƎŨƪƋɆëŝŝƪëŒɆĈŨŝƪƖɆƖĉķėśėɆ ǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆįŨĉƪƖɆŨŝɆ¡ʆȚɆĈƪƢɆǂļŒŒɆƋļǁŨƢɆƢŨɆļŝĉėŝƢļǁļƖėɆƢķėɆ ļŝƢėƎŝëƢļŨŝëŒɆƎŨŒŒȯŨƪƢɆŨįɆ¡ʆȚɆëŝĐɆļƢƖɆëĈļŒļƢǈɆƢŨɆĐƎļǁėɆĈėķëǁļŨƪƎëŒɆ change in customers – including the uptake of safer gambling tools to medium and high-risk players. 47Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ɆŏėǈɆįŨĉƪƖɆįŨƎɆŨƪƎɆķëŝİļŝİɆįŨƎɆƢķėɆėƢƢŨƎɆƖƢƎëƢėİǈɆļƖɆƢŨɆĉŨŝƢļŝƪëŒŒǈɆ deepen our understanding of gambling-related harm, disseminate this knowledge with the wider industry, and incorporate this knowledge into our processes, policies and culture. This work is catalysed by developing long-term research partnerships with world-leading institutions in safer betting and gaming. {ƪƎɆǘǁėȯǈėëƎɆƎėƖėëƎĉķɆĉŨŒŒëĈŨƎëƢļŨŝɆǂļƢķɆëśĈƎļĐİėɆLėëŒƢķɆ ŒŒļëŝĉėɆ$ļǁļƖļŨŝɆŨŝɆĐĐļĉƢļŨŝɆļƖɆŨƪƎɆǙëİƖķļƋɆƎėƖėëƎĉķɆƋƎŨİƎëśśėȚɆ ǂķėƎėɆǂėɆķëǁėɆĉŨśśļƢƢėĐɆɞǨśɆŨǁėƎɆǘǁėɆǈėëƎƖșɆÛŨƪɆĉëŝɆƎėëĐɆśŨƎėɆ about this collaboration below. QŝɆƢķėɆ½©ȚɆǂėɆķëǁėɆƋëƎƢŝėƎėĐɆǂļƢķɆƢķėɆ½ŝļǁėƎƖļƢǈɆŨįɆpėǁëĐëȚɆdëƖɆ ÔėİëƖɆëŝĐɆƢķėļƎɆQŝƢėƎŝëƢļŨŝëŒɆEëśļŝİɆQŝƖƢļƢƪƢėɆȩȹQEQȺȪșɆQŝɆ©ėƋƢėśĈėƎɆ ǥǣǥǤȚɆǂėɆƋƎŨǁļĐėĐɆëɆįŨƪŝĐļŝİɆİƎëŝƢɆƢŨɆƢķėɆQEQɆƢŨɆėƖƢëĈŒļƖķɆëɆ pioneering betting and gaming research initiative which, for the ǘƎƖƢɆƢļśėɆļŝɆƢķėɆ½©ȚɆǂļŒŒɆĉŨśĈļŝėɆƖĉļėŝƢļǘĉɆƎėƖėëƎĉķɆǂļƢķɆŨƋėƎëƢļŨŝëŒɆ expertise to apply best practice in responsible gambling, policy, ëŝĐɆķėëŒƢķșɆ½ƖļŝİɆëɆśƪŒƢļĐļƖĉļƋŒļŝëƎǈɆëƋƋƎŨëĉķȚɆƢķėɆQEQɆƋŒëŝƖɆƢŨɆ take a holistic look at all aspects of betting and gaming from various perspectives, including problem gambling, responsible gaming, public health, education, economic impacts, research, ëŝĐɇƢėĉķŝŨŒŨİǈșɆ¶ķėɆĉėŝƢƎėɆļƖɆƋŒëŝŝėĐɆƢŨɆŒëƪŝĉķɆļŝɆǥǣǥǥș Safer betting and gaming continued 1 Understand the problem and best solutions Entain plc | Annual Report 2021 48 Strategic report Entain’s cutting edge research collaborative with Cambridge Health Alliance Division on Addiction, a Harvard Medical School Faculty. {ƪƎɆǘǁėȯǈėëƎɆƎėƖėëƎĉķɆĉŨŒŒëĈŨƎëƢļǁėɆǂļƢķɆƢķėɆ$ļǁļƖļŨŝɆĉŨŝƢļŝƪėƖɆ to go from strength-to-strength. Now in its third year, we have already contributed $3.2m to this cutting-edge research programme that is having real-world impact. The programme has progressed beyond expectations. It was originally expected to produce three papers annually, but in two and a half years the research teams have already submitted 11 papers for review and has an additional four papers in active development for submission to peer review. Our ongoing support for the collaboration currently funds the equivalent of eight full-time researchers: six researchers at the doctoral level, a part-time researcher at the masters level, and two researchers at the baccalaureate level. Entain not only provides funding but gives access to anonymised data from player records, ensuring that the research is based on real-life data and behavioural patterns. The ongoing projects with the Division fall under the four categories below. This important research is published in ƋėėƎȯƎėǁļėǂėĐɆëŝĐɆķļİķȯļśƋëĉƢɆƖĉļėŝƢļǘĉɆƎėƖėëƎĉķɆëƎƢļĉŒėƖȚɆ with worldwide circulation. The journals include Psychology ŨįɆĐĐļĉƢļǁėɆėķëǁļŨƎƖȚɆd{©Ɇ{ŝėɆëŝĐɆQŝƢėƎŝëƢļŨŝëŒɆ EëśĈŒļŝİɆ©ƢƪĐļėƖș Player data research projects Using real-life, anonymised player records from Entain to contribute to a growing body of knowledge revealing the ŝëƢƪƎėɆŨįɆëĉƢƪëŒɆŨŝŒļŝėɆİëśĈŒļŝİșɆ¶ķėƖėɆƋƎŨŌėĉƢƖɆķėŒƋɆƎėǘŝėɆ our understanding of evidence-based markers of disordered gambling and expand our search for potential markers. Safer betting and gaming training projects This in-depth understanding from the research is vital to strengthening our culture, processes and policies. We disseminate learnings from the research to employees through various training activities. The Division conducted reviews of 14 existing Entain employee training programmes, two teach-in seminars with select Entain employees to assist ļŝɆƢķėɆĐļİėƖƢļŨŝɆëŝĐɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆǘŝĐļŝİƖȚɆëŝĐɆƢķėɆ creation of four research snapshots with graphical summaries ŨįɇƋƪĈŒļƖķėĐɆƎėƖėëƎĉķș Open science projects Projects that relate to the Division’s and Entain’s commitment to the highest standards, and upholding the principles of academic freedom. In addition to engaging in open science practices for these research projects, including research pre-registration and data transparency, the Division has engaged in multiple projects ëŝĐɆƋëƋėƎƖɆƢŨɆëĐǁëŝĉėɆƢķėɆǘėŒĐɆŨįɆİëśĈŒļŝİɆƖƢƪĐļėƖɆƢŨǂëƎĐɆśŨƎėɆ open science practices. General research projects ¶ķėƖėɆƋƎŨŌėĉƢƖɆëĐĐƎėƖƖɆļśƋŨƎƢëŝƢɆëƎėëƖɆļŝɆƢķėɆǘėŒĐɆŨįɆİëśĈŒļŝİɆ ƖƢƪĐļėƖșɆ©ŨɆįëƎȚɆƢķėǈɆķëǁėɆļŝĉŒƪĐėĐɆëɆƖƢƪĐǈɆŨŝɆƢķėɆƖƢëƢėɆŨįɆƢķėɆ literature about gambling and self-harm and understanding gambling product safety features. The programme has progressed beyond ėǇƋėĉƢëƢļŨŝƖșȺ Grainne Hurst EƎŨƪƋɆ$ļƎėĉƢŨƎɆŨįɆŨƎƋŨƎëƢėɆįįëļƎƖ 49 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 We continue to partner with charities and other organisations to support their important work in preventing vulnerable audiences from potential betting and gaming harm. QŝɆƢķėɆ½bȚɆǂėɆƖƪƋƋŨƎƢėĐɆ,QȼƖɆ¡ļƖŏɆnëŝëİėśėŝƢȼƖɆ©ƢëƢėɆ©ĉķŨŨŒƖɆ ƋƎŨİƎëśśėșɆ,QɆĐėŒļǁėƎėĐɆļśƋëĉƢįƪŒɆİëśĈŒļŝİɆķëƎśɆëǂëƎėŝėƖƖɆ ƖėƖƖļŨŝƖɆƢŨɆǤǨȚǥǫǧɆǈŨƪŝİɆƋėŨƋŒėɆëĉƎŨƖƖɆǫǤɆƖĉķŨŨŒɆǁļƖļƢƖɆļŝɆƢķėɆ 2020/21 academic year. ÕėɆƖƪƋƋŨƎƢɆÛŨƪŝİɆėŨƋŒėȼƖɆEëśĈŒļŝİɆLëƎśɆƎėǁėŝƢļŨŝɆ ƎŨİƎëśśėɆȩȹÛEnȺȪɆƢķƎŨƪİķɆEëśëƎėɆëŝĐɆÛEnɆëƖɆƋëƎƢɆŨįɆŨƪƎɆ ļŝǁŨŒǁėśėŝƢɆǂļƢķɆėƢƢļŝİɆëŝĐɆEëśļŝİɆŨƪŝĉļŒșɆǈɆǥǣǥǧȚɆÛEnɆëŝĐɆ EëśëƎėɆëļśɆƢŨɆǂŨƎŏɆǂļƢķɆŨǁėƎɆǤǦȚǧǣǣɆƋƎëĉƢļƢļŨŝėƎƖɆëŝĐɆƋëƎƢŝėƎɆ organisations, resulting in millions of young people aged 11-19 receiving at least one awareness session during their secondary or further education. By the end of 2021, the programme delivered ƢƎëļŝļŝİɆƢŨɆǧȚǨǣǣɆǈŨƪŝİɆƋėŨƋŒėȚɆǂļƢķɆǬǣɼɆŨįɆƢķŨƖėɆƋëƎƢļĉļƋëƢļŝİɆ reporting that they better understand how to make safe choices about betting and gaming, and where to get help if they were experiencing problems. QŝɆëĐĐļƢļŨŝȚɆǂėɆķëǁėɆƖƪƋƋŨƎƢėĐɆÛEnɆƢŨɆĐėŒļǁėƎɆƢķėļƎɆļƢǈɆʁɆEƪļŒĐƖɆ ƖƖƪƎėĐɆƢƎëļŝļŝİɆƢŨɆǦȚǫǬǨɆƋƎŨįėƖƖļŨŝëŒƖɆƢķëƢɆǂŨƎŏɆǂļƢķɆǈŨƪŝİɆ people. This training is focused on identifying signs of harm and signposting to the help and support available. We also know that our customer services teams are an important resource for our customers to learn more about safer betting and gaming. In 2021, we streamlined our processes for these teams, providing them with all customer due diligence, anti-money laundering, affordability and player protection all within one dashboard – allowing these representatives to provide informed advice based on the customer’s individual circumstances. Safer betting and gaming continued 2 Educate our key stakeholders QŝɆƢķėɆ½©ȚɆǂėɆƖƪƋƋŨƎƢėĐɆ,QɆƢŨɆĐėŒļǁėƎɆǪǤɆǘƎƖƢȯŨįȯļƢƖȯŏļŝĐɆ education and advice sessions to groups that may be more likely to experience problems with betting and gaming – such as college and professional athletes. As sports betting is licensed and launched in an increasing number of states, this programme – sharing knowledge about harm prevention and sports betting integrity is front and centre of conversations at a time when it is needed most. We will continue to scale up this programme in 2022. QŝɆƢķėɆ½©ȚɆǂėɆŒëƪŝĉķėĐɆƢķėɆEëśĈŒėɆ¡ėƖƋŨŝƖļĈŒǈɆśėƎļĉëɆƋƋșɆ The app – freely available on phone iPhone and Android – provides a host of educational resources and tools to help and support anyone facing potential issues with problem gambling. It is the ǘƎƖƢɆëƋƋɆŨįɆļƢƖɆŏļŝĐɆļŝɆƢķėɆ½©ɆƢķëƢɆļƖɆįƎŨśɆƢķėɆŨƪƢƖėƢɆëǁëļŒëĈŒėɆļŝɆ ĈŨƢķɆ,ŝİŒļƖķɆëŝĐɆ©ƋëŝļƖķșɆEëśĈŒėɆ¡ėƖƋŨŝƖļĈŒǈɆśėƎļĉëɆķëƖɆĈėėŝɆ ėŝĐŨƎƖėĐɆĈǈɆƢķėɆśėƎļĉëŝɆEëśļŝİɆƖƖŨĉļëƢļŨŝɆëƖɆŨŝėɆŨįɆƢķėɆŏėǈɆ sources of problem and responsible gambling information. Entain plc | Annual Report 2021 50 Strategic report ƖɆƋëƎƢɆŨįɆŨƪƎɆ¡ʆɆƋƎŨİƎëśśėȚɆǂėɆśëĐėɆƖƢėƋȯĉķëŝİėƖɆļŝɆƢķėɆ safer betting and gaming tools that we provide to customers to empower them to be in control of their play. As part of the ėŝķëŝĉėĐɆĉƪƖƢŨśėƎɆŌŨƪƎŝėǈƖɆļŝɆ¡ʆȚɆǂėɆëƎėɆŝŨǂɆëĈŒėɆƢŨɆ proactively provide players with tailored recommendations and informative content based on their style of play. In addition, we have implemented an improved budget calculator to help customers understand a safe level to play based on their individual circumstances, and recommendations on setting deposit limits. These will be further enhanced in 2022 with the introduction of our safer gambling questionnaire, which will help customers understand whether a gambling control is needed and, if so, which one. We will also continue to improve our real-time interactions and intervention with customers, to provide them with recommendations that empower them to put in place the tools that help them to continue playing responsibly. For those customers who wish to take time out altogether, we also ĉŨŝƢļŝƪėĐɆƢŨɆƋƎŨśŨƢėɆƢķėɆƪƖėɆŨįɆƢķėɆEëśĈëŝɆƖŨįƢǂëƎėȚɆǂķļĉķɆǂėɆ śëŏėɆįƎėėŒǈɆëǁëļŒëĈŒėɆƢŨɆëŒŒɆŨįɆŨƪƎɆĉƪƖƢŨśėƎƖșɆEëśĈëŝɆëŒŒŨǂƖɆƪƖėƎƖɆ to block betting and gaming websites and apps globally from a user’s devices. We continue to take part in all relevant industry- wide self-exclusion programmes in the markets where we operate. QŝɆƢķėɆ½©ȚɆ,ŝƢëļŝɆǂļƢķɆŌŨļŝƢȯǁėŝƢƪƎėɆƋëƎƢŝėƎɆėƢnEnɆëƎėɆëśŨŝİƖƢɆ ƢķėɆǘƎƖƢɆŨƋėƎëƢŨƎƖɆƢŨɆķëǁėɆƖƪƋƋŨƎƢėĐɆŒëǈëƪƖėȚɆëɆƋƎŨŌėĉƢɆļŝƢėŝĐėĐɆ to introduce cross-state self-exclusion. Our approach to promoting responsible attitudes is focused on embedding these principles into our advertising and marketing. Responsible attitudes to advertising and marketing start with us, and we’re committed to ensuring that our activities in these areas uphold both the letter and spirit of the relevant legislation, ƎėİƪŒëƢļŨŝƖɆëŝĐɆļŝĐƪƖƢƎǈɆŨĐėƖɆŨįɆƎëĉƢļĉėșɆÕėɆëƎėɆëɆƖļİŝëƢŨƎǈɆŨįɆ ƢķėɆ,ƪƎŨƋėëŝɆėƢƢļŝİɆëŝĐɆEëśļŝİɆƖƖŨĉļëƢļŨŝȼƖɆŨĐėɆŨįɆŨŝĐƪĉƢșɆ {ƪƎɆëƋƋƎŨëĉķɆļƖɆİƪļĐėĐɆĈǈɆŨƪƎɆEƎŨƪƋɆ¡ėƖƋŨŝƖļĈŒėɆnëƎŏėƢļŝİɆ ŨŒļĉǈɆȩȹŨŒļĉǈȺȪșɆ¶ķļƖɆŨŒļĉǈɆļƖɆƖƋŨŝƖŨƎėĐɆĈǈɆƢķėɆķļėįɆEŨǁėƎŝëŝĉėɆ {įǘĉėƎɆȱɆëŒƖŨɆëɆ$ļƎėĉƢŨƎɆŨŝɆƢķėɆEƎŨƪƋɆŨëƎĐșɆ¶ķėɆŨŒļĉǈɆëƋƋŒļėƖɆƢŨɆ ëŒŒɆśëƎŏėƢļŝİɆëĉƢļǁļƢǈɆƪŝĐėƎƢëŏėŝɆĈǈɆëŒŒɆĈƎëŝĐƖɆǂļƢķļŝɆƢķėɆEƎŨƪƋȚɆ and applies to all marketing activities and channels. The Policy is complemented by internal guidelines for each market where we operate, including examples of acceptable and unacceptable marketing behaviour. QŝɆƢķėɆ½bȚɆǂėɆǂŨƎŏɆǂļƢķɆƢķėɆļŝĐƪƖƢƎǈɆǁļëɆƢķėɆėƢƢļŝİɆëŝĐɆEëśļŝİɆ ŨƪŝĉļŒɆȩȹEȺȪșɆ¶ķļƖɆļŝĉŒƪĐėƖɆƪƢļŒļƖļŝİɆŨƪƎɆśëƎŏėƢļŝİɆĈƪĐİėƢɆëŝĐɆ airtime for responsible gambling initiatives. We also use our reach and partnerships to bring safer betting and gaming to life via compelling content. Through our partypoker brand, we worked with the McLaren Formula 1 team to produce the ȹ¶ļśėɆƢŨɆļƢȺɆĉëśƋëļİŝșɆ©ƢëƎƎļŝİɆnĉdëƎėŝɆDǤɆƖƢëƎɆ$ëŝļėŒɆ¡ļĉĉļëƎĐŨȚɆ the video and microsite draws parallels between racing and betting and gaming, and the importance of knowing your limits and staying ļŝɆĉŨŝƢƎŨŒșɆ¶ķėɆȹ¶ļśėɆƢŨɆļƢȺɆĉëśƋëļİŝɆķëƖɆĈėėŝɆǁļėǂėĐɆŨǁėƎɆ 40,000 times. 4 Empower customers 3 Promote responsible attitudes 51Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ÕėɆǂŨƎŏɆĉŒŨƖėŒǈɆǂļƢķɆŨİŝëĉļƢǈȚɆëɆǂŨƎŒĐɆŒėëĐļŝİɆśėŝƢëŒɆķėëŒƢķɆ ŨƎİëŝļƖëƢļŨŝɆǂķŨɆëƎėɆëŝɆëƋƋƎŨǁėĐɆdɆ¡ėƖėëƎĉķɆ,ĐƪĉëƢļŨŝɆëŝĐɆ ¶ƎėëƢśėŝƢɆȩȹ¡,¶ȺȪɆƋƎŨǁļĐėƎȚɆƢŨɆŨįįėƎɆëĐĐļƢļŨŝëŒɆƖƪƋƋŨƎƢɆįŨƎɆƢķŨƖėɆ customers requiring clinical diagnosis, or support/signposting for treatment. The outcome of the assessment may result in a referral to a fully funded residential treatment programme with ŨİŝëĉļƢǈʀdėŨŝɆLŨƪƖėșɆ{ǁėƎɆƢķėɆƋëƖƢɆƢǂŨɆǈėëƎƖȚɆ,ŝƢëļŝɆįƪŝĐļŝİɆ ķëƖɆėŝëĈŒėĐɆǤǨǧɆĉŨśƋƎėķėŝƖļǁėɆëƖƖėƖƖśėŝƢƖɆëŝĐɆǤǣǣɆļŝĐļǁļĐƪëŒƖɆ ƢŨɆëĉĉėƖƖɆƖƪƋƋŨƎƢșɆ¶ķļƖɆļŝĉŒƪĐėƖɆǩǪɆļŝĐļǁļĐƪëŒƖɆëĉĉėƖƖļŝİɆƢķƎėėȯ day intensive residential gambling treatment programme at Leon LŨƪƖėɆȩŨƎɆŨŝŒļŝėɆĐƪƎļŝİɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉȪɆįŨŒŒŨǂėĐɆĈǈɆ individual follow-up therapy and relapse prevention (a minimum ŨįɆƖļǇɆƖėƖƖļŨŝƖɆƋėƎɆƋėƎƖŨŝȚɆǂļƢķɆëɆƢŨƢëŒɆŨįɆǥǨǫɆŨŝėȯƢŨȯŨŝėɆ ƖėƖƖļŨŝƖɆĐėŒļǁėƎėĐȪș ¶ķļƖɆƋƎŨİƎëśśėɆķëƖɆķëĐɆëɆƖļİŝļǘĉëŝƢŒǈɆķļİķėƎɆƎėƢėŝƢļŨŝɆƎëƢėɆ than the national average, with 70% of those seeking support at ŨİŝëĉļƢǈʀdėŨŝɆLŨƪƖėɆĉŨśƋŒėƢļŝİɆƢķėɆĉŨƪƎƖėȚɆëŝĐɆǫǩɼɆƎėƋŨƎƢļŝİɆ abstinence from gambling at last observation (six or 12 months after ƢķėɆƋƎŨİƎëśśėȪș ÕėɆëŒƖŨɆƋƎŨǁļĐėĐɆįƪŝĐļŝİɆƢŨɆEŨƎĐŨŝɆnŨŨĐǈȼƖɆŨŝŒļŝėɆEëśĈŒļŝİɆ Therapy service which has enabled the charity to reach an increasing ŝƪśĈėƎɆŨįɆƋėŨƋŒėɆŝėėĐļŝİɆƖƪƋƋŨƎƢɆǂŨƎŒĐǂļĐėȚɆǂļƢķɆŨǁėƎɆǘǁėɆśļŒŒļŨŝɆ people accessing the service. At the heart of championing responsible product design is our İƎŨƪŝĐĈƎėëŏļŝİɆ¡ʆɆƋƎŨİƎëśśėȚɆǂķļĉķɆķëƖɆĉëƢëŒǈƖėĐɆëɆƖƢėƋɆ change in the way our online products are designed in order to śëǇļśļƖėɆƋŒëǈėƎɆƋƎŨƢėĉƢļŨŝșɆŒėëƖėɆƎėįėƎɆƢŨɆƋëİėƖɆǧǩɆƢŨɆǧǪɆįŨƎɆ ļŝįŨƎśëƢļŨŝɆëŝĐɆëŝɆƪƋĐëƢėɆŨŝɆ¡ʆș To be effective as an organisation in responsible product design, we understand the need for engagement from the wider industry. To do this, we engage directly via our involvement in the Betting ëŝĐɆEëśļŝİɆŨƪŝĉļŒɆȩȹEȺȪɆEëśėɆ$ėƖļİŝɆÕŨƎŏļŝİɆEƎŨƪƋșɆ The group focuses on game characteristics, informed player choice, enhancing control innovation and governance and continuous ļśƋƎŨǁėśėŝƢƖșɆQŝɆǥǣǥǤȚɆǂėɆļśƋŒėśėŝƢėĐɆƢķėɆEɆǂŨƎŏļŝİɆİƎŨƪƋɆ ķëƖėɆQQɆƋƎļŝĉļƋŒėƖɆŨŝɆEëśėɆ$ėƖļİŝȚɆļŝĉŒƪĐļŝİɆİƪļĐëŝĉėɆŨŝɆǂļŝƖɆ ĈėŒŨǂɆƢķėɆƖƢëŏėɆŒļŝėȚɆëŝĐɆĈŨŝƪƖɆİëśėɆŝŨƢļǘĉëƢļŨŝƖș Responsibility is also about protecting our customers’ data, which is why we continue to roll out and implement our privacy-by-design principles, which puts privacy at the centre of our product design cycle early in its development. A full outline of our data privacy and ĉǈĈėƎƖėĉƪƎļƢǈɆļƖɆļŝĉŒƪĐėĐɆŨŝɆƋëİėɆǩǨș Safer betting and gaming continued Ǩ ǩ Fund treatment for those in need Champion responsible product design Entain plc | Annual Report 2021 52 Strategic report We strive to enable all colleagues, relevant suppliers, contractors, and secondees to undertake training on safer betting and gaming, with additional in-depth training that is tailored to role types. At the ėŝĐɆŨįɆǥǣǥǤȚɆǫǫɼɆŨįɆĉŨŒŒėëİƪėƖɆǂėƎėɆƪƋɆƢŨɆĐëƢėɆŨŝɆƢķėļƎɆśëŝĐëƢŨƎǈɆ ƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆƢƎëļŝļŝİȚɆǂļƢķɆǤǤȚǥǤǩɆƎėƢëļŒɆëŝĐɆǬǤǧɆ ĐļİļƢëŒɆĉŨŒŒėëİƪėƖɆƎėĉėļǁļŝİɆįëĉėȯƢŨȯįëĉėɆƢƎëļŝļŝİɆƖƋėĉļǘĉɆƢŨɆƢķėļƎɆ roles. In addition, our customer service teams received training įƎŨśɆŨƪƎɆƋëƎƢŝėƎƖɆ,QɆ¡ļƖŏɆnëŝëİėśėŝƢȚɆǂķļĉķɆėśƋŨǂėƎėĐɆ them to spot the signs of risky behaviour and utilise behavioural and interaction training to provide effective and empathetic customer interactions. {ƪƎɆƪƖƢŨśėƎɆ{śĈƪĐƖśëŝɆ$ļƎėĉƢŨƎɆȩȹ{$ȺȪȚɆļŝļƢļëŒŒǈɆëƋƋŨļŝƢėĐɆ in 2020, continues to protect our customers in everything that ǂėɆĐŨșɆ¶ķėɆ{$ɆėǁëŒƪëƢėƖɆƢķėɆƍƪëŒļƢǈɆŨįɆļŝƢėƎëĉƢļŨŝƖɆǂļƢķɆŨƪƎɆ players, reviews how complaints are handled, and suggests ways in which we can improve our service in a measured, consistent and responsible manner whilst ensuring the business is protected from ƪŝŌƪƖƢļǘėĐɆĉŨśƋŒëļŝƢƖș ¡ėëĐɆƢķėɆ¡ėƋŨƎƢɆŨįɆŨƪƎɆ,©EɆ ŨśśļƢƢėėțɆpages 109-111 Safer betting and gaming performance 2021 2020 2019 ëƖķɆëŝĐɆļŝȯŏļŝĐɆ contributions towards responsible betting and gaming initiatives £12.9m £9.7m ɞǦșǩś ƪƖƢŨśėƎɆļŝƢėƎëĉƢļŨŝƖɆ regarding problem gambling 1,2 2,268,550 ǤȚǦǬǣȚǬǣǩ ǤȚǣǩǪȚǬǣǫ ƪƖƢŨśėƎɆĉŨśƋŒëļŝƢƖ 1,2 4,045 ǩȚǦǪǫ ǤǨȚǩǬǥ ƪƖƢŨśėƎɆĉŨśƋŒëļŝƢƖɆ ƖƋėĉļǘĉëŒŒǈɆƎėŒëƢėĐɆƢŨɆ a betting and gaming transaction 1,2 655 919 2,031 ©ėŒįȯėǇĉŒƪƖļŨŝƖɆśëĐė 1,2,3 61,644 ǨǬȚǧǩǨ 137,391 Robberies 36 ǧǨ 110 Anti-social behaviour 4,216 ǧȚǪǩǣ ǩȚǣǩǨ Assaults 132 204 ǦǧǨ 1. Data covers all UK licences. 2. 2020 and 2019 data have been restated to removed discontinued licences, to be comparable to 2021 data. 3. Data only includes self-exclusions made via Entain’s own processes (eg via ĉƪƖƢŨśėƎɆƖėƎǁļĉėƖȪȚɆëŝĐɆĐŨėƖɆŝŨƢɆļŝĉŒƪĐėɆƢķļƎĐȯƋëƎƢǈɆƖėŒįȯėǇĉŒƪƖļŨŝɆƖĉķėśėƖɆƖƪĉķɆ ëƖȚɆįŨƎɇėǇëśƋŒėȚɆEn©¶{ɆȩpëƢļŨŝëŒɆ{ŝŒļŝėɆ©ėŒįȯ,ǇĉŒƪƖļŨŝɆ©ĉķėśėȪɆëŝĐɆƢķėɆnƪŒƢļɆ {ƋėƎëƢŨƎɆ©ėŒįɆ,ǇĉŒƪƖļŨŝɆ©ĉķėśėș 7 Change ourselves for the bettor 53 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ŨǁļĐȯǤǬ Putting our colleagues and ĉƪƖƢŨśėƎƖɆǘƎƖƢ Covid-19 continued throwing serious challenges at businesses and societies in 2021 – and we were no exception. We started the year suspending our entire retail estate over three months. Throughout the ups and downs of 2021, we spared no effort to continue protecting our customers and colleagues. Protecting our colleagues ©ķŨƋɆĉŒŨƖƪƎėɆëƢɆƢķėɆĈėİļŝŝļŝİɆŨįɆƢķėɆǥǣǥǤɆśėëŝƢɆƢķëƢɆĉșǤǧȚǣǣǣɆ ĉŨŒŒėëİƪėƖɆǂėƎėɆƋŒëĉėĐɆŨŝɆƢķėɆ½bɆEŨǁėƎŝśėŝƢȼƖɆįƪƎŒŨƪİķɆƖĉķėśėșɆ As in 2020, we topped up furlough payments to full salary to ƋƎŨƢėĉƢɆŨƪƎɆƖƢëįįȼƖɆǘŝëŝĉļëŒɆƖëįėƢǈșɆÕėɆĉŨŝƢļŝƪėĐɆļŝǁėƖƢļŝİɆ heavily in wellbeing initiatives to support colleagues whilst they were placed on furlough, working from home, or returning to the workplace post-lockdown. Our Employee Assistance Programme ƋƎŨǁļĐėĐɆƖƢëįįɆǂļƢķɆǥǧȦǪɆƖƪƋƋŨƎƢȚɆļŝĉŒƪĐļŝİɆĉŨŝǘĐėŝƢļëŒɆĉŨƪŝƖėŒŒļŝİɆ and legal advice. We also delivered 11 wellbeing campaigns across our global operations and trained 100 colleagues to become Mental LėëŒƢķɆDļƎƖƢɆļĐėƎƖșɆ¶ŨɆƎėëĐɆśŨƎėɆëĈŨƪƢɆŨƪƎɆÕėŒŒȯnėɆƖƢƎëƢėİǈȚɆ ƋŒėëƖėɆİŨɆƢŨɆƋëİėɆǨǫș $ƪƎļŝİɆƢķėɆǘƎƖƢɆǂėėŏƖɆŨįɆƢķėɆƋëŝĐėśļĉȚɆǂėɆƎëƋļĐŒǈɆŒėëƎŝėĐɆƢķëƢɆ the unprecedented levels of isolation and anxiety could put at- risk online gamblers in a vulnerable position. We were one of the ǘƎƖƢɆŨƋėƎëƢŨƎƖɆļŝɆǥǣǥǣɆƢŨɆļŝƢƎŨĐƪĉėɆëĐĐļƢļŨŝëŒɆƖëįėİƪëƎĐƖȚɆëŝĐɆ we continued in 2021 to bolster and adapt our player protection ƋƎŨİƎëśśėƖɆƢŨɆƢķėɆƪŝļƍƪėɆĉķëŒŒėŝİėƖɆĈƎŨƪİķƢɆĈǈɆŨǁļĐȯǤǬșɆ We have given colleagues a platform to share their amazing stories of working together whether that be raising money for charity or keeping up the team spirit when working from home. Protecting our customers during Covid-19 Entain Live, our annual all colleague event, went virtual this year, with over 10,000 people joining to hear who we are and where we’re heading with the launch of our new strategy, purpose and vision. Entain plc | Annual Report 2021 54 Strategic report Protecting our customers during Covid-19 1. Increase safer betting and gaming messages ëĉƎŨƖƖɇëŒŒɇƖļƢėƖɆëŝĐɆĐļƎėĉƢɆƢŨɆëŒŒɆĉƪƖƢŨśėƎƖș We increased responsible betting and gaming messaging on our homepage and throughout all sites, with a new page providing dedicated advice on keeping betting sensible and enjoyable during the crisis. Our gaming brands also ran multi-channel advertising and marketing campaigns to promote responsible betting and gaming to our customers while they enjoy time on our sites. 2. Step up interventions if customers increase time ëŝĐɇƖƋėŝĐɆĈėǈŨŝĐɆŝŨƎśëŒɆƋƎėȯĉƎļƖļƖɆƋëƢƢėƎŝƖș We took our player protection interventions a step further, introducing additional safeguarding measures to ensure that we can rigorously monitor and protect anyone who may be vulnerable at this time. This includes the introduction of two new Markers of Protection indicators to our safer betting and gaming algorithm, to factor in the evolving betting and gaming behaviour caused by ƢķėɆƋëŝĐėśļĉȚɆėŝëĈŒļŝİɆƢķėɆļĐėŝƢļǘĉëƢļŨŝɆŨįɆƋŨƢėŝƢļëŒŒǈɆƋƎŨĈŒėśëƢļĉɆ betting and gaming behaviour at an earlier stage. 3. Actively promote deposit limits. In addition to promoting deposit limits as part of our safer betting and gaming promotion, we introduced a new maximum stakes tool across our slots brand. 4. Take action to ensure appropriate and responsible advertising, including monitoring volume of placements. ÕėɆëĐŨƋƢėĐɆƢķėɆėƢƢļŝİɆëŝĐɆEëśļŝİɆŨƪŝĉļŒȼƖɆǁŨŒƪŝƢëƎǈɆĈëŝɆ on all UK broadcast gaming advertising, and its replacement with responsible betting and gaming messaging during the lockdown period. Ǩș Report all illegal, rogue advertising from black market online operators. We continued to work with local enforcement agencies if we detect these issues, and encouraged colleagues to speak up if ƢķėǈɇƖƋŨƢɆëŝǈƢķļŝİɆƢķëƢɆĈƎėëĉķėƖɆŨƪƎɆėśƋŒŨǈėėɆŨĐėɆŨįɆŨŝĐƪĉƢș ǩș Enforce a one-strike-and-you’re-out policy where ëįǘŒļëƢėƖɆĈƎėëĉķɆƋŒėĐİėƖș ÕėɆļśƋŒėśėŝƢėĐɆƖƋėĉļǘĉɆİƪļĐëŝĉėɆëŝĐɆƎėƖƢƎļĉƢļŨŝƖɆƢŨɆëŒŒɆëįǘŒļëƢėƖȚɆ preventing them from referencing the pandemic or encouraging excessive play due to boredom or isolation. This advice includes ëɇƖƋėĉļǘĉɆĈŒëĉŏŒļƖƢɆŨįɆĈëŝŝėĐɆƢėƎśƖș 7. Signpost help to GAMCARE and the National Gambling Helpline and GamStop for self-exclusion. ÕėɆĉŨŝƢļŝƪėĐɆƢŨɆƋƎŨśŨƢėɆEnpɆƢķƎŨƪİķŨƪƢɆǥǣǥǤș ǫș Ensure continued funding for Research Education ëŝĐɇ¶ƎėëƢśėŝƢɆȩȹ¡,¶ȺȪș QŝɆǥǣǥǤȚɆǂėɆļŝĉƎėëƖėĐɆŨƪƎɆ½bɆEƎŨƖƖɆEëśļŝİɆÛļėŒĐɆȩȹEEÛȺȪɆƢķëƢɆļƖɆ contributed to organisations working on the Research, Education ëŝĐɆ¶ƎėëƢśėŝƢɆȩȹ¡,¶ȺȪɆƢŨɆǣșǨɼș 9. Provide welfare checks and wellbeing help for staff. Due to the pandemic, we brought forward our delivery of Well- Me, Entain’s colleague wellbeing strategy, to provide additional support for our staff. This is outlined above. 10. Support the UK government’s ‘National Effort’ ǂļƢķɇǁŨŒƪŝƢėėƎƖɆëŝĐɆįëĉļŒļƢļėƖș ŒŒɆƖƢŨƎėƖɆļśƋŒėśėŝƢėĐɆƢķėɆpL©Ɇ¶ƎëĉŏɆëŝĐɆ¶ƎëĉėɆƋƎŨĉėĐƪƎėƖș 55 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Keeping our shops safe for everyone We take every measure possible to ensure our colleagues and customers are safe in our shops. After an initial investment of over £3m in 2020, we continued to invest in measures to keep our colleagues and customers safe. Our c.3,000 shops operate with strict procedures in place – including limited shop occupancy ŒėǁėŒƖȚɆƖļİŝëİėɆëŝĐɆǙŨŨƎɆśëƎŏļŝİȚɆśëĉķļŝėƖɆëŝĐɆƢļŒŒɆĐļǁļĐėƎƖȚɆëŝĐɆ personnel protective equipment. We continued our participation ļŝɆƢķėɆ½bȼƖɆpL©Ɇ¶ƎëĉŏɆʁɆ¶ƎëĉėɆƖǈƖƢėśȚɆļĐėŝƢļįǈļŝİɆëŝĐɆļƖŨŒëƢļŝİɆ colleagues who may have been in contact with someone who had ƢėƖƢėĐɆƋŨƖļƢļǁėɆįŨƎɆŨǁļĐȯǤǬșɆ We asked that colleagues who displayed symptoms, even minor, self-isolate immediately. We opened a hotline to help local teams deal with staff being unexpectedly off work. Supporting our communities The pandemic has never altered our commitment to supporting communities. In 2021, we extended our long-term partnership with ©ƋŨƎƢƖļĐȚɆļŝĉƎėëƖļŝİɆŨƪƎɆƢŨƢëŒɆĉŨśśļƢśėŝƢɆƢŨɆëƎŨƪŝĐɆɞǨǣǣȚǣǣǣɆ by 2024 and thereby supporting more up-and-coming athletes. Through Pitching in, our multi-million investment programme, we have continued promoting grassroot sports and delivering vital support to sport clubs and organisations. We also launched EnTrain, a global programme to increase access to, and diversity within, technology. To read more about these initiatives and the ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝȚɆƋŒėëƖėɆİŨɆƢŨɆƋëİėƖɆǩǣɆƢŨɆǩǦș Covid-19 continued Entain plc | Annual Report 2021 56 Strategic report Investing in people and communities One of the key pillars of our Sustainability Charter is to continue investing in our people and communities. We understand the importance of recruiting, retaining, and nurturing top talents from diverse backgrounds – especially as our people are central to our Entain platform. We are aware of our role in limiting global warming to no more than 1.5 o C and we have pledged to be Net Zero by no later than 2035. We also contribute to the wider communities in which we operate, supporting community organisation via the Entain Foundation. Best place to work Everyone’s in the Game: Diversity and Inclusion at Entain Our vision is to create a best place to work where our colleagues feel valued, respected, and engaged. We want to revolutionise the betting and gaming industry and become the technology employer of choice for all talented people regardless of who they are. ǥǣǥǤɆǂëƖɆƢķėɆǘŝëŒɆǈėëƎɆŨįɆƢķėɆ,ǁėƎǈŨŝėȼƖɆļŝɆƢķėɆEëśėɆƖƢƎëƢėİǈșɆ During this time, we started building a more intersectional and localised approach to diversity and inclusion. We are expanding our focus beyond gender equality, as well as ensuring our interventions are tailored to the context in which our colleagues live. We launched an Inclusion Ambassadors programme, Entain Nationals, and recruited 30 ambassadors across our global footprint. Those colleagues help us to better understand local ĉķëŒŒėŝİėƖɆëŝĐɆƢŨɆëĐëƋƢɆëŝĐɆėśĈėĐɆŨƪƎɆƋƎŨİƎëśśėƖɆļŝɆėëĉķɆŨįǘĉėșɆ We invested in educating Entain’s senior leaders on the importance of diversity & inclusion. Our Inclusion Team engaged with each ,ǇėĉƪƢļǁėɆŨśśļƢƢėėɆȩȹ,ǇŨȺȪɆśėśĈėƎɆëŝĐɆƢķėļƎɆĐļƎėĉƢɆƎėƋŨƎƢƖȚɆ presenting the diversity demographics of their team and helping them create tailored action plans for all business areas. We started ƎėëĉķļŝİɆƢŨɆŨƪƎɆǂļĐėƎɆĉŨŒŒėëİƪėȯĈëƖėɆǂļƢķɆƢķėɆEŒŨĈëŒɆQŝĉŒƪƖļŨŝɆ Learning, a new interactive and immersive training delivered by ǨǣɆįëĉļŒļƢëƢŨƎƖɆëĉƎŨƖƖɆƢķėɆĈƪƖļŝėƖƖșɆëƖėĐɆŨŝɆƎėëŒȯŒļįėɆƢėƖƢļśŨŝļëŒƖɆ from our colleagues, the course discusses how to be more inclusive in day-to-day business interactions and to challenge negative behaviours. Our aim is for all our people to have completed the programme by the end of 2022. We also broadened our inclusion partnerships by teaming up with global organisations. On International Women’s Day, we ëŝŝŨƪŝĉėĐɆŨƪƎɆĉŨŒŒëĈŨƎëƢļŨŝɆǂļƢķɆEļƎŒƖɆǂķŨɆŨĐėȚɆĐŨŝëƢļŝİɆ ɏǥǨǣȚǣǣǣɆƢķƎŨƪİķɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆƢŨɆƢķėļƎɆǂŨƎŏɆŨŝɆ encouraging more young girls of diverse backgrounds to study technology. In November, we launched our new multi-million-pound global initiative called EnTrain. Our goal is to positively impact the lives of one million people by 2030 by enabling access to technology and changing the diversity within technology. To read śŨƎėɆëĈŨƪƢɆƢķėƖėɆƋëƎƢŝėƎƖķļƋƖȚɆƋŒėëƖėɆƖėėɆƋëİėƖɆǩǣɆƢŨɆǩǥș Recognising our ambition and that there is still much to do, 2022 will see us launching the next iteration of our Diversity & QŝĉŒƪƖļŨŝɆ©ƢƎëƢėİǈșɆÕėɆǂļŒŒɆĐėŒļǁėƎɆëɆƖļǇȯśŨŝƢķɆ¡ėǁėƎƖėɆnėŝƢŨƎļŝİɆ programme to help our leaders stay in touch with colleagues and understand the lived experience of different groups. We are ƋëƎƢŝėƎļŝİɆǂļƢķɆEŒŨĈëŒɆEëśļŝİɆÕŨśėŝɆëŝĐɆƢķėɆŒŒȯQŝɆ$ļǁėƎƖļƢǈɆ Project to create ‘Lean In’ circles across Entain and connect our women across the globe with each other and other women within the broader technology and entertainment sectors. We will continue improving our talent attraction, selection, and development processes to remove bias and improve representation, using well-tested methods such as diverse candidate slates and interview panels, as well as gender neutralisation and bias removal in job adverts. We will also be investing in the creation of employee resource groups who will help us to better engage In the past three years, we have made improvements across our gender diversity at senior leadership level and across the business. We are now moving towards a more holistic approach to diversity, creating a workplace where everyone belongs and where access to opportunities is equal ƎėİëƎĐŒėƖƖɆŨįɆǂķŨɆǈŨƪɆëƎėșȺ Sophie Hawley LėëĐɆŨįɆ$ļǁėƎƖļƢǈȚɆQŝĉŒƪƖļŨŝȚɆʁɆ,ƍƪëŒļƢǈ Diversity at Entain 2021 2020 2019 Employees worldwide 25,554 ǥǦȚǨǪǦ ǥǧȚǩǤǧɆ Female employees 11,583 ǤǤȚǦǦǩ ǤǥȚǤǫǬɆ % female employees 45% ǧǫɼ Ǩǣɼ Part-time employees 1 4,328 ǥȚǨǥǨ ǤȚǧǨǫɆ % part-time employees 17% 11% ǩɼ Employee Engagement Index 78% Ǫǫɼ 74% Median hourly pay difference ĈėƢǂėėŝɇśëŒėɆëŝĐɆįėśëŒėɆĉŨŒŒėëİƪėƖɆ ȩEėŝĐėƎɆëǈɆEëƋȪȃ 5% 7% 4% nėëŝɆLŨƪƎŒǈɆƋëǈɆĐļįįėƎėŝĉėɆ ĈėƢǂėėŝɇśëŒėɆëŝĐɆįėśëŒėɆĉŨŒŒėëİƪėƖɆ ȩEėŝĐėƎɆëǈɆEëƋȪȃ 16% ǤǨɼ Ǥǫɼ Median bonus pay difference ĈėƢǂėėŝɇśëŒėɆëŝĐɆįėśëŒėɆĉŨŒŒėëİƪėƖȃ 60% 13% Ǧǩɼ Mean bonus pay difference ĈėƢǂėėŝɇśëŒėɆëŝĐɆįėśëŒėɆĉŨŒŒėëİƪėƖȃ 63% 19% ǫǦɼ ǤșɆ $ëƢëɆįŨƎɆǥǣǤǬɆëŝĐɆǥǣǥǣɆķëƖɆĈėėŝɆƎėƖƢëƢėĐɆĐƪėɆƢŨɆƢķėɆśėƎİļŝİɆŨįɆL¡ɆƖǈƖƢėśƖɆëŝĐɆƢķėɆ ķëƎśŨŝļƖëƢļŨŝɆŨįɆƢķėɆĐėǘŝļƢļŨŝɆŨįɆƋëƎƢȯƢļśėɆėśƋŒŨǈėėƖɆĈėƢǂėėŝɆƢķėƖėɆƖǈƖƢėśƖșɆ ǥșɆ $ëƢëɆĉŨǁėƎƖɆëŒŒɆ½bɆĉŨŒŒėëİƪėƖșɆ$ëƢëɆļƖɆĈëƖėɆŨŝɆëɆƖŝëƋƖķŨƢɆĐëƢėɆŨįɆǨɆƋƎļŒɆįŨƎɆƢķėɆǈėëƎɆ ƖƢëƢėĐȚɆëƖɆƋėƎɆƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆƢķėɆ½bȼƖɆEėŝĐėƎɆëǈɆEëƋɆ¡ėƋŨƎƢļŝİș and advocate for minority groups at Entain. Additionally we are expanding our education and awareness-building efforts to cover topics including allyship and the use of inclusive language to set the foundations of creating a psychologically safe culture at Entain. We will also work to improve our diversity data collection with a new global self-declaration campaign, encouraging our colleagues to disclose demographics beyond gender on our internal people management system. 57 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Well-Me: Wellbeing at Entain The delivery of our well-me strategy went from strength-to- strength in 2021, as we further embedded wellbeing in every aspect of the employee lifecycle, from recruitment and onboarding ƢŨɆƎėǂëƎĐƖɆëŝĐɆĐėǁėŒŨƋśėŝƢșɆ{ƪƎɆEŒŨĈëŒɆÕėŒŒĈėļŝİɆpėƢǂŨƎŏɆ ėǇƋëŝĐėĐɆëĉƎŨƖƖɆŨƪƎɆŨįǘĉėƖɆƢŨɆǤǦɆǂėŒŒĈėļŝİɆŒėëĐƖȚɆǂķŨɆëƎėɆ helping us to shape our global wellbeing strategy and adapt it to local contexts. In the past months, we continued to focus on supporting our colleagues through the pandemic. We have offered Well-Me booster sessions twice a week, alternating between yoga and meditation, and provided an interactive toolkit with resources to help our people adjust with returning to the workplace post lockdown. Throughout the year we continued the roll-out of our nėŝƢëŒɆLėëŒƢķɆDļƎƖƢɆļĐɆȩȹnLDȺȪɆƋƎŨİƎëśśėȚɆķëǁļŝİɆƎėĉƎƪļƢėĐɆ ëŝĐɆƢƎëļŝėĐɆŨǁėƎɆǤǣǣɆĉŨŒŒėëİƪėƖɆİŒŨĈëŒŒǈɆƢŨɆëĉƢɆëƖɆƢķėɆǘƎƖƢɆƋŨļŝƢɆŨįɆ contact for people with mental health issues. Launched in 2020, ŨƪƎɆ,śƋŒŨǈėėɆƖƖļƖƢëŝĉėɆƎŨİƎëśśėɆȩȹ,ȺȪɆƎėśëļŝƖɆëɆśëŌŨƎɆ ƖŨƪƎĉėɆŨįɆƖƪƋƋŨƎƢɆįŨƎɆŨƪƎɆĉŨŒŒėëİƪėƖȚɆǂļƢķɆǫɼɆŨįɆƪƢļŒļƖëƢļŨŝɆȩëɆķļİķɆ ƢëŏėȯƪƋɆƎëƢėɆǂķėŝɆĉŨśƋëƎėĐɆƢŨɆƖļśļŒëƎȯƖļǒėĐɆĉŨśƋëŝļėƖȪșɆÕėɆëŒƖŨɆ delivered 11 global campaigns on a variety of wellbeing topics, ëĉķļėǁļŝİɆǤǦǣȚǣǣǣɆǁļėǂƖɆëŝĐɆļŝƢėƎëĉƢļŨŝƖɆİŒŨĈëŒŒǈȚɆëɆǦǨɼɆļŝĉƎėëƖėɆ in engagement from 2020. ƖɆƋëƎƢɆŨįɆŨƪƎɆĈƎŨëĐėƎɆƎėƖƋŨŝƖėɆƢŨɆŨǁļĐȯǤǬȚɆǂėɆŒëƪŝĉķėĐɆ ƢķėɆDƪƢƪƎėɆŨįɆƢķėɆ{įǘĉėɆȱɆëɆƖƢƎëƢėİļĉɆƎėǁļėǂɆŨįɆŨƪƎɆǂŨƎŏļŝİɆ ƋƎëĉƢļĉėƖȚɆėǇƋŒŨƎļŝİɆķŨǂɆǂėɆĉëŝɆƪƖėɆėǇƋėƎļėŝĉėɆŨįɆķŨǂɆŨįǘĉėȯ ĈëƖėĐɆĉŨŒŒėëİƪėƖɆëĐëƋƢėĐɆĐƪƎļŝİɆŒŨĉŏĐŨǂŝƖɆƢŨɆĈėŝėǘƢɆĈŨƢķɆŨƪƎɆ ĈƪƖļŝėƖƖɆëŝĐɆŨƪƎɆƋėŨƋŒėșɆÕėɆķëǁėɆëĐŨƋƢėĐɆİƎėëƢėƎɆǙėǇļĈļŒļƢǈɆļŝɆ ŨƪƎɆĉŨŒŒėëİƪėƖȼɆëĈļŒļƢǈɆƢŨɆǂŨƎŏɆǂļƢķļŝɆƢķėɆŨįǘĉėɆŨƎɆįƎŨśɆëɆķŨśėȯ setting. We are also looking at how we can radically change our ƋķǈƖļĉëŒɆŒŨĉëƢļŨŝƖɆƢŨɆĉƎėëƢėɆśŨƎėɆļŝƖƋļƎļŝİɆëŝĐɆǙėǇļĈŒėɆǂŨƎŏƖƋëĉėƖȚɆ while increasing the use of existing buildings and maximising ƖƪƖƢëļŝëĈļŒļƢǈșɆƖɆëɆǘƎƖƢɆƖƢėƋȚɆļŝɆƋƎļŒɆǥǣǥǥȚɆǂėɆǂļŒŒɆŨƋėŝɆëɆƎėȯ ļśëİļŝėĐɆëŝĐɆƎėŝŨǁëƢėĐɆŨįǘĉėɆļŝɆ©ƢƎëƢįŨƎĐȚɆdŨŝĐŨŝȚɆǂķėƎėɆǂėɆ ǂļŒŒɆƋƎŨǁļĐėɆëɆƎëĐļĉëŒŒǈɆśŨƎėɆĉƎėëƢļǁėɆëŝĐɆǙėǇļĈŒėɆǂŨƎŏƖƋëĉėșɆ Through these developments, we want to deliver a more ƋėƎƖŨŝëŒļƖėĐɆŨįǘĉėɆėǇƋėƎļėŝĉėɆǂķļĉķɆǂėɆĈėŒļėǁėɆǂļŒŒɆķėŒƋɆƪƖɆƢŨɆ attract and retain the best talent. ŒƖŨȚɆŒëƢėƎɆƢķļƖɆǈėëƎȚɆǂėɆǂļŒŒɆƋëƎƢŝėƎɆǂļƢķɆ¡ŨĈėƎƢƖŨŝɆŨŨƋėƎɆƢŨɆ ƪŝĐėƎƢëŏėɆëɆEŒŨĈëŒɆÕėŒŒĈėļŝİɆ©ƪƎǁėǈșɆ¶ķļƖɆļŝȯĐėƋƢķɆëƖƖėƖƖśėŝƢɆ will help us to better understand the root causes of mental health risks at Entain and to tailor future interventions in different areas of the business. We will also focus on our ‘frontline’ people who are providing support to colleagues and customers and are at greater risk of mental health issues, developing an end-to-end process to assist them in their roles. I became a mental health ǘƎƖƢɆëļĐėƎɆëƖɆQɆĈėŒļėǁėɆƢķëƢɆ everyone has a right to be heard and that we all need to be placing equal importance on our mental health as we ĐŨɇŨƪƎɆƋķǈƖļĉëŒɆķėëŒƢķșȺ Jo Bleasdale $ļƎėĉƢŨƎɆŨįɆQŝƢėƎŝëŒɆŨśśƪŝļĉëƢļŨŝƖ ǪǨɼɆŨįɆŨƪƎɆĉŨŒŒėëİƪėƖɆƢķļŝŏɆ,ŝƢëļŝɆ takes genuine interest in colleagues’ ǂėŒŒĈėļŝİșȺ Jo Bleasdale $ļƎėĉƢŨƎɆŨįɆQŝƢėƎŝëŒɆŨśśƪŝļĉëƢļŨŝƖ Gender Diversity at Entain 2019 3 out of 9 (33%) 2020 3 out of 10 (30%) 4 out of 11 (36%) 2021 2019 101 out of 384 (26%) 2020 181 out of 524 (35%) 163 out of 463 (35%) 2021 2019 12,189 out of 24,614 (50%) 2020 11,336 out of 23,573 (48%) 11,583 out of 25,554 (45%) 2021 Group Board 36% Male Female Senior Managers 35% All Employees 45% Investing in people and communities continued Entain plc | Annual Report 2021 58 Strategic report Our economic contributions ¶ķėɆEƎŨƪƋɆėśƋŒŨǈƖɆëɆƖļİŝļǘĉëŝƢɆŝƪśĈėƎɆŨįɆƋėŨƋŒėɆëĉƎŨƖƖɆŨǁėƎɆ ǧȚǦǧǩɆƎėƢëļŒɆŨƪƢŒėƢƖɆëŝĐɆŨįǘĉėƖɆļŝɆśŨƎėɆƢķëŝɆǥǣɆƢėƎƎļƢŨƎļėƖșɆƖɆƖƪĉķȚɆ ŨƪƎɆėĉŨŝŨśļĉɆįŨŨƢƋƎļŝƢɆļƖɆƖļİŝļǘĉëŝƢșɆQŝɆǥǣǥǤȚɆǂėɆƋëļĐɆɞǤșǤĈŝɆļŝɆ taxes and levies across our countries of operation. This comes in ëĐĐļƢļŨŝɆƢŨɆƢķėɆɞǨǪǬșǤśɆǂėɆƋëļĐɆļŝɆėśƋŒŨǈėėɆǂëİėƖɆëŝĐɆƖëŒëƎļėƖș Economic contributions 2021 2020 2019 Net gaming revenue ȩpE¡Ȫ £3,886.3m ɞǦȚǩǥǫșǨś ɞǦȚǩǦǥșǪś Underlying EBITDA £881.7m ɞǫǧǦșǤś ɞǪǩǤșǧś Total tax paid £1,055m ɞǬǩǥś £927m Employee wages and salaries £579.1m ɞǨǥǧșǣś ɞǩǪǤșǥś Payments to providers of capital (interest & ĐļǁļĐėŝĐƖȪ £63.9m ɞǩǥșǫś ɞǥǩǪșǤś In January 2022, we launched Ennovate, our new global innovation hub. Through Ennovate we are investing up to £100m in innovation projects, start-up investments and collaborations ǂļƢķɆ½bȚɆ,ƪƎŨƋėëŝɆëŝĐɆİŒŨĈëŒɆƋëƎƢŝėƎƖșɆ{ƪƎɆǘƎƖƢɆŒëĈɆļŝɆdŨŝĐŨŝɆ ǂļŒŒɆŨƋėŝɆŒëƢėƎɆļŝɆƢķėɆǘƎƖƢɆķëŒįɆŨįɆƢķėɆǈėëƎȚɆǂļƢķɆɞǧǣśɆƖƋėĉļǘĉëŒŒǈɆ of investment allocated to pursue UK-based innovation initiatives. ,ŝŝŨǁëƢėɆƎėǙėĉƢƖɆ,ŝƢëļŝȼƖɆëśĈļƢļŨŝɆƢŨɆĈėɆëɆİŒŨĈëŒɆŒėëĐėƎɆļŝɆ interactive entertainment and provide great products and moments of excitement for customers. As the media, entertainment and gaming sectors converge, we are adapting to offer customers the richer experiences they now expect, with a greater variety of content, immersive experiences, personalisation, and social interaction which increase their enjoyment and engagement. Through Ennovate we are partnering with cutting-edge technology ĉŨśƋëŝļėƖɆƖƪĉķɆëƖɆÔėƎļǒŨŝȚɆ¶ȚɆëŝĐɆ¶ķėƢëɆdëĈƖȚɆƢŨɆĐėǁėŒŨƋɆ groundbreaking experiences for customers in gaming and interactive entertainment. Committed to colleague development In 2021, we delivered important milestones in improving the way people learn and grow at Entain. At the beginning of the year, we introduced a new performance management strategy called Entain & Perform. Our ambition was to harmonise how our colleagues and teams are supported to set and meet their objectives. The strategy has been underpinned by learning camps for all our people managers and a new online tool where colleagues can capture their goals, learnings, career conversations, and reviews. In June, we also launched Learning Moments, a global learning platform accessible to all our colleagues. Learning Moments provides an online library with podcasts, articles, LinkedIn Learning courses, getAbstract book summaries, and other video content. The platform is a great example of self-led learning and has been nominated for the 2022 RAD Innovation Award. Best place to work performance indicators 2021 2020 2019 ƪƖƢŨśėƎɆ©ëƢļƖįëĉƢļŨŝ 60% ǩǣɼ ǩǣɼ ėŝƢƎëŒɆdʁ$ɆļŝǁėƖƢśėŝƢ £2.6m £1.2m n/a Average hours per employee of ƢƎëļŝļŝİɇëŝĐɇĐėǁėŒŨƋśėŝƢ 10.5 hours n/a n/a Average amount spent per employee on training and development £116 n/a n/a Average hours per manager of training and development 38.5 hours n/a n/a Average amount spent per manager on training and development £577 n/a n/a Employee turnover – all 32% ǥǩɼ 44% Employee turnover – voluntary 25% 17% 33% Whistleblowing incidents reported and investigated 29 34 34 Employee accidents 117 137 179 Employee reportable incidents 5 4 ǫ Public accidents 9 31 24 Public reportable incidents 1 00 59 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Investing in Communities We aim for our impact on society to be positive, whether in terms of creating a great place to work, supporting communities, and promoting diversity and healthy lifestyles, and entertainment. We work with a range of partner organisations to bring this ambition to life. The Entain Foundation ÕėɆŨƎļİļŝëŒŒǈɆŒëƪŝĉķėĐɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆȩȹƢķėɆDŨƪŝĐëƢļŨŝȺȪ ļŝɆ©ėƋƢėśĈėƎɆǥǣǤǬɆƢŨɆķėŒƋɆĐėŒļǁėƎɆƢķėɆEƎŨƪƋȼƖɆëśĈļƢļŨŝɆƢŨɆƢëŏėɆƢķėɆ lead on safer betting and gaming and support the communities in which we operate. In addition to the main global Foundation, ǂėɆëŒƖŨɆŨƋėƎëƢėɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆ½©ȚɆëɆĐėĐļĉëƢėĐɆ½©ȯĈëƖėĐɆ ŝŨƢȯįŨƎȯƋƎŨǘƢșɆQŝɆpŨǁėśĈėƎɆǥǣǥǣȚɆƢķėɆEƎŨƪƋɆëŝĐɆļƢƖɆƎėŝëśėĐɆ Entain Foundation, which now enjoys registered charitable status, ĉŨśśļƢƢėĐɆƢŨɆļŝǁėƖƢļŝİɆɞǤǣǣśɆƢŨɆİŨŨĐɆĉëƪƖėƖɆŨǁėƎɆǘǁėɆǈėëƎƖș ¶ķėɆǂŨƎŏɆŨįɆƢķėɆDŨƪŝĐëƢļŨŝɆƖƪƋƋŨƎƢƖɆƢķėɆEƎŨƪƋȼƖɆƋļŨŝėėƎļŝİɆ ©ƪƖƢëļŝëĈļŒļƢǈɆķëƎƢėƎɆëŝĐɆǂļĐėƎɆ,©EɆļŝļƢļëƢļǁėƖȚɆëŝĐɆƋŒëǈƖɆëŝɆ ļŝƢėİƎëŒɆƎŨŒėɆļŝɆĐėŒļǁėƎļŝİɆëİëļŝƖƢɆƢķėɆķëƎƢėƎȼƖɆƋļŒŒëƎƖɆŨįɆėŨƋŒėɆëŝĐɆ ŨśśƪŝļƢļėƖȚɆëŝĐɆ¡ėƖƋŨŝƖļĈļŒļƢǈșɆ¶ķėɆDŨƪŝĐëƢļŨŝȼƖɆŏėǈɆëƎėëƖɆŨįɆ focus are safer betting and gaming, grassroots sports, diversity in technology and projects with a clear link to where we operate. Investing in people and communities continued Only operate in regulated markets by 2023. We support partner organisations that are engaged in research, education and treatment of problem gambling to bolster ŨƪƎɆļŝƢėƎŝëŒɆķëŝİļŝİɆįŨƎɆ the Better safer betting and gaming strategy. ©ƋŨƎƢƖɆëŝĐɆƖƋŨƎƢƖɆĈėƢƢļŝİɆ are what we do. We give back by supporting the next crop of athletes, and work with organisations that are making sport inclusive to bring everyone into the game. As a technology company at heart, we are supporting organisations that are working with young people that may currently be underrepresented in the tech talent pool. Promoting tech careers and ensuring that the future talent pipeline is inclusive, making sure that ,ǁėƎǈŨŝėȼƖɆļŝɆƢķėɆEëśėșɆ Our operations are truly global – embedded in communities in more than ǤǨɆĉŨƪŝƢƎļėƖșɆ Taking the lead on responsible betting ëŝĐɇİëśļŝİș Best-in-class standards ŨįɇĉŨƎƋŨƎëƢėɆİŨǁėƎŝëŝĉėș Creating the best place to work, net-zero emissions by 2035, and support the communities where we operate. Safer betting and gaming Grassroots, women’s and disability sports Diversity in technology Projects in the communities where we operate Responsibility People & Communities Why it matters Social impact areas of focus Entain group sustainability charter How our social impact focus supports the Entain Sustainability Charter Corporate Governance Regulation Entain plc | Annual Report 2021 60 Strategic report avoiding any promotion of our betting brands – Entain not only supports running of the Trident Leagues, but has also established ƢķėɆ¶ƎļĐėŝƢɆŨśśƪŝļƢǈɆDƪŝĐȚɆǂķļĉķɆėŝëĈŒėƖɆĉŒƪĈƖɆƢŨɆƎėĉėļǁėɆ funding to run community engagement projects. In 2022 a key focus for the programme is to facilitate and encourage community volunteers to do some pitching in of their own and contribute their time and effort. A Pitching In online volunteering hub will launch in Q1, providing a national framework to connect volunteers with their local club. The scheme will also encourage UK based Entain colleagues to connect with their local clubs to further strengthen community ties. SportsAid ,ŝƢëļŝɆķëƖɆĈėėŝɆƋëƎƢŝėƎėĐɆǂļƢķɆ©ƋŨƎƢƖļĐɆƖļŝĉėɆǥǣǤǫșɆ©ƋŨƎƢƖļĐɆļƖɆ the only national charity in the UK of its kind, helping young British athletes aspiring to be the country’s next Olympic, Paralympic, ŨśśŨŝǂėëŒƢķɆëŝĐɆǂŨƎŒĐɆĉķëśƋļŨŝƖșɆ¶ķƎŨƪİķɆƢķėɆƋëƎƢŝėƎƖķļƋɆ ,ŝƢëļŝɆƖƪƋƋŨƎƢƖɆŨǁėƎɆǨǣɆëƢķŒėƢėƖɆėëĉķɆǈėëƎɆĈǈɆƋƎŨǁļĐļŝİɆƢķėśɆ ǂļƢķɆëɆǘŝëŝĉļëŒɆëǂëƎĐɆƢŨɆķėŒƋɆƢŨǂëƎĐƖɆƢƎëļŝļŝİȚɆėƍƪļƋśėŝƢɆëŝĐɆ competition costs, as well as personal development training. QŝɆǥǣǥǤɆǂėɆėǇƢėŝĐėĐɆŨƪƎɆŒŨŝİȯƢėƎśɆƋëƎƢŝėƎƖķļƋɆǂļƢķɆ©ƋŨƎƢƖļĐɆ ƢķƎŨƪİķɆƢŨɆƢķėɆëƎļƖɆǥǣǥǧɆ{ŒǈśƋļĉɆëŝĐɆëƎëŒǈśƋļĉɆEëśėƖȚɆ ĐŨƪĈŒļŝİɆƢķėɆǘŝëŝĉļëŒɆĈëĉŏļŝİɆśëĐėɆƢķƪƖɆįëƎɆëŝĐɆļŝĉƎėëƖļŝİɆŨƪƎɆ ƢŨƢëŒɆĉŨśśļƢśėŝƢɆƢŨɆëƎŨƪŝĐɆɞǨǣǣȚǣǣǣɆĈǈɆǥǣǥǧȚɆƢķėƎėĈǈɆėŝƖƪƎļŝİɆ śŨƎėɆƪƋȯëŝĐȯĉŨśļŝİɆëƢķŒėƢėƖɆĈėŝėǘƢɆįƎŨśɆƢķėɆƋƎŨİƎëśśėș ©ƋŨƎƢƖļĐɆëŒƖŨɆƋƎŨǁļĐėƖɆëĉĉėƖƖɆƢŨɆëɆǁëƎļėƢǈɆŨįɆŨŝŒļŝėɆǂŨƎŏƖķŨƋƖɆ for athletes and their parents, online access to Olympians and ëƎëŒǈśƋļëŝƖȚɆëŝĐɆëƢƢėŝĐëŝĉėɆëƢɆƢķėɆLŨƪƖėɆŨįɆŨśśŨŝƖɆȩǂķėƎėɆ nƖɆśėėƢɆëƢķŒėƢėƖȪșɆ¶ķėƖėɆëƢķŒėƢėƖɆëƎėɆEƎėëƢɆƎļƢëļŝȼƖɆĈƎļİķƢėƖƢɆ ƖƋŨƎƢļŝİɆƋƎŨƖƋėĉƢƖșɆ¶ķėǈɆëƎėɆŝŨśļŝëƢėĐɆƢŨɆ©ƋŨƎƢƖļĐɆĈǈɆƢķėɆ ŝëƢļŨŝëŒɆİŨǁėƎŝļŝİɆĈŨĐļėƖɆŨįɆśŨƎėɆƢķëŝɆǩǣɆƖƋŨƎƢƖșɆ©ƋŨƎƢƖļĐɆįŨƪŝĐɆ ƢķëƢɆǩǤɼɆȩŨƎɆǥǧǥɆëƢķŒėƢėƖȪɆŨįɆƢķŨƖėɆƖėŒėĉƢėĐɆƢŨɆƎėƋƎėƖėŝƢɆ¶ėëśɆEɆ ëƢɆƢķėɆ¶ŨŏǈŨɆǥǣǥǣɆ{ŒǈśƋļĉɆEëśėƖɆķëǁėɆƎėĉėļǁėĐɆǘŝëŝĉļëŒɆƖƪƋƋŨƎƢɆ and recognition from the charity during their careers. Through our śƪŒƢļȯǈėëƎɆƖƢƎëƢėİļĉɆƋëƎƢŝėƎƖķļƋȚɆ,ŝƢëļŝȼƖɆĉŨŝƢƎļĈƪƢļŨŝƖɆƢŨɆ©ƋŨƎƢƖļĐɆ ƋƎŨǁļĐėƖɆǨǣɆƪƋɆëŝĐɆĉŨśļŝİɆëƢķŒėƢėƖɆėëĉķɆǈėëƎɆǂļƢķɆǘŝëŝĉļëŒɆ support, recognition and personal development opportunities. Promoting diversity in technology In November 2021, we launched EnTrain, a global programme to promote increased access to, and diversity within, technology. We have set the ambitious target for EnTrain to positively impact the lives of one million people around the world – either directly or through their families and dependants – by 2030. Supporting academic research Raising awareness amongst key stakeholders Providing treatment for those who need it Focus on safer betting and gaming As noted above, within our seven principles of safer betting ëŝĐɆİëśļŝİɆȩƖėėɆƋëİėƖɆǧǧɆƢŨɆǨǦȪȚɆƢķėɆDŨƪŝĐëƢļŨŝȼƖɆƢŨƋɆƋƎļŨƎļƢǈɆ is to further our promotion of safer betting and gaming and our contributions to partner organisations support the delivery of the EƎŨƪƋȼƖɆķëŝİļŝİɆįŨƎɆƢķėɆėƢƢŨƎɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆƖƢƎëƢėİǈșɆ Our work with our partner organisations supports this strategy across three key focus areas. ƖɆƋëƎƢɆŨįɆŨƪƎɆŨƋėƎëƢļŨŝƖɆļŝɆƢķėɆ½bȚɆļŝɆǥǣǥǤɆǂėɆĉŨŝƢƎļĈƪƢėĐɆǣșǨɼɆ ŨįɆŨƪƎɆEƎŨƖƖɆEëśļŝİɆÛļėŒĐɆȩȹEEÛȺȪɆƢŨɆƖƪƋƋŨƎƢɆ¡ėƖėëƎĉķȚɆ,ĐƪĉëƢļŨŝɆ ëŝĐɆ¶ƎėëƢśėŝƢɆȩȹ¡,¶ȺȪɆŨįɆƋƎŨĈŒėśɆİëśĈŒļŝİȚɆƢķļƖɆǂļŒŒɆƎļƖėɆƢŨɆǣșǪǨɼɆ ļŝɆǥǣǥǥșɆ¶ķļƖɆįƪŝĐļŝİɆļƖɆƋƎŨǁļĐėĐɆĐļƎėĉƢŒǈɆƢŨɆEëśĈŒėǂëƎėɆȱɆëɆ wholly independent grant-making charity that has a framework ëİƎėėśėŝƢɆëśŨŝİƖƢɆƢķėɆQŝĐƪƖƢƎǈɆƢŨɆĐėŒļǁėƎɆƢķėɆpëƢļŨŝëŒɆ©ƢƎëƢėİǈɆƢŨɆ ¡ėĐƪĉėɆEëśĈŒļŝİɆLëƎśƖș In addition to these contributions, we work with a range of organisations that are leading on groundbreaking safer betting and gaming initiatives and research. We also leverage the expertise of our academic partners to ensure our own player protection culture, ƋƎŨĉėƖƖėƖɆëŝĐɆĐėĉļƖļŨŝƖɆëƎėɆļŝįŨƎśėĐɆĈǈɆƖĉļėŝƢļǘĉɆƎėƖėëƎĉķɆëŝĐɆ lived experience. QŝɆƢķėɆ½©ȚɆëƖɆëŝɆļŝĉƎėëƖļŝİɆŝƪśĈėƎɆŨįɆƖƢëƢėƖɆŒëƪŝĉķɆƎėİƪŒëƢėĐɆ betting markets, we are also scaling up our level of support of safer gambling organisations to ensure that the correct support processes and pathways are established in these new and growing markets. Promoting grassroots sport As a business Entain is closely linked to the world of sport, and we believe an important way we can make impactful contribution is by investing at the grassroots level. The Foundation currently ƖƪƋƋŨƎƢƖɆƢǂŨɆŏėǈɆǙëİƖķļƋɆƋƎŨŌėĉƢƖɆļŝɆƢķėɆ½bɆëƖɆǂėŒŒɆļŝļƢļëƢļǁėƖɆļŝɆ EƎėėĉėɆëŝĐɆŨŒŨśĈļëșɆQŝɆǥǣǥǥȚɆǂėɆǂļŒŒɆĈėɆėǇƋëŝĐļŝİɆƢķļƖɆƖƪƋƋŨƎƢɆƢŨɆ projects internationally. Pitching In ÔļëɆļƢĉķļŝİɆQŝȚɆŨƪƎɆƢķėɆśƪŒƢļȯśļŒŒļŨŝȯƋŨƪŝĐȚɆśƪŒƢļȯǈėëƎȚɆļŝǁėƖƢśėŝƢɆ programme, the Foundation is partnered with the with the QƖƢķśļëŝȚɆpŨƎƢķėƎŝɆƎėśļėƎɆëŝĐɆ©ŨƪƢķėƎŝɆdėëİƪėƖɆȱɆĉŨŒŒėĉƢļǁėŒǈɆ known as The Trident Leagues – which make-up levels seven and eight of the English football leagues pyramid. The Trident Leagues, which trace their roots back to the nineteenth century, ëƎėɆëƢɆƢķėɆķėëƎƢɆŨįɆƢķėɆŝëƢļŨŝëŒɆİëśėȚɆǂļƢķɆǥǧǨɆĉŒƪĈƖɆëŝĐɆǤǨȚǣǣǣɆ players registered across the three leagues in many villages, towns and cities of England and Wales. Under the Pitching In banner – Research papers Building credible institutions Ɇ EėŝėƎëƢļŝİɆļŝƢėƎėƖƢɆļŝɆëĐǁëŝĉėɆ methods of gambling research Ɇ ½ƖļŝİɆǘŝĐļŝİƖɆļŝɆŨƪƎɆŨǂŝɆŨƋėƎëƢļŨŝƖ Training Outreach and awareness training Ɇ ©ļİŝƋŨƖƢļŝİɆƢŨɆķļİķȯ quality resources Ɇ ©ƪƋƋŨƎƢɆëŝĐɆëƖƖėƖƖśėŝƢƖ Intensive treatment Improving retention 61 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 As new and future generations face an increasingly digital world, ƢķėɆŨƋƋŨƎƢƪŝļƢǈɆƢŨɆŒėǁėŒɆƢķėɆƋŒëǈļŝİɆǘėŒĐɆĈǈɆĐļǁėƎƖļįǈļŝİɆķƪśëŝɆ capital, reorienting, and reskilling the workforce has never been more pressing. As of July 2021, over 40% of the world’s population did not have access to the internet, which, if not addressed, could ŒėëĐɆƢŨɆëɆĐļİļƢëŒɆƖŏļŒŒƖɆİëƋɆƢķëƢɆƎėƖƪŒƢƖɆļŝɆëɆŒŨƖƖɆŨįɆɏǤǤșǨƢƎŝɆĈǈɆ ǥǣǥǫșɆƖɆëɆĉŨśƋëŝǈɆƢķëƢɆĐėǁėŒŨƋƖɆĉƪƢƢļŝİȯėĐİėɆƢėĉķŝŨŒŨİǈȚɆǂėȼƎėɆ determined to use our position to provide opportunities that will help to address this picture. The EnTrain programme is comprised of four core initiatives: Ɇ ,ŝƢëļŝɆĉëĐėśǈțɆ©ƪƋƋŒǈļŝİɆƢƎëŝƖįŨƎśëƢļǁėɆƢėĉķɆƢƎëļŝļŝİɆįŨƎɆ ƢķėɇŝėǇƢɆİėŝėƎëƢļŨŝȜɆ Ɇ ,ŝƢëļŝɆ©ĉķŨŒëƎƖķļƋƖțɆƎŨǁļĐļŝİɆƢķėɆƋŒëƢįŨƎśɆįŨƎɆëɆĐļǁėƎƖėɆ ƖėŒėĉƢļŨŝɆŨįɆĉëŝĐļĐëƢėƖɆƢŨɆĈėĉŨśėɆĐļİļƢëŒɆƋļŨŝėėƎƖȜ Entain Apprenticeships: Expanding internal and external apprenticeship schemes with new and existing partners. Enabling our apprenticeship partners to provide technology ĉŨƪƎƖėƖɆįŨƎɆƋėŨƋŒėɆļŝɆĐėǁėŒŨƋļŝİɆĉŨƪŝƢƎļėƖȜɆëŝĐ Entain Partnerships: Building on our existing partnerships ǂļƢķɆŨƎİëŝļƖëƢļŨŝƖɆļŝĉŒƪĐļŝİɆEļƎŒƖɆÕķŨɆŨĐėɆëŝĐɆķëŝĉėɆįŨƎɆ ķļŒĐķŨŨĐɆëŝĐɆįŨƎśļŝİɆŝėǂɆĉŨŒŒëĈŨƎëƢļŨŝƖɆǂļƢķɆĉķëƎļƢļėƖɆëŝĐɆ ŝŨŝȯƋƎŨǘƢɆŨƎİëŝļƖëƢļŨŝƖɆƢŨɆļśƋƎŨǁėɆĐļǁėƎƖļƢǈɆëŝĐɆļŝĉƎėëƖėɆ ëĉĉėƖƖɇƢŨɆƢėĉķŝŨŒŨİǈɆįŨƎɆėĐƪĉëƢļŨŝëŒɆƋƪƎƋŨƖėƖș Investing in people and communities continued I started out playing for Wealdstone DɆĈėįŨƎėɆŌŨļŝļŝİɆŨǁėŝƢƎǈɆļƢǈɆƖŨɆQɆ understand how important funding is to ƢķėɆŝŨŝȯŒėëİƪėɆİëśėșɆEƎëƖƖƎŨŨƢƖɆįŨŨƢĈëŒŒɆ is facing huge challenges at the moment and many clubs are struggling to stay ëǙŨëƢșɆ,ŝƢëļŝȼƖɆļƢĉķļŝİɆQŝɆļŝǁėƖƢśėŝƢɆǂļŒŒɆ help make a big difference to hundreds of clubs and thousands of players across ƢķėɇĉŨƪŝƢƎǈșȺ Stuart Pearce Pitching In Ambassador Two organisations that Entain has worked with under our ,ŝ¶ƎëļŝɆļŝļƢļëƢļǁėɆëƎėɆEļƎŒƖɆÕķŨɆŨĐėɆëŝĐɆƢķėɆ¶ėĉķɆEļƎŒƖɆ Movement Foundation: Girls Who Code EļƎŒƖɆÕķŨɆŨĐėɆļƖɆëŝɆļŝƢėƎŝëƢļŨŝëŒɆŝŨŝȯƋƎŨǘƢɆŨƎİëŝļƖëƢļŨŝɆǂŨƎŏļŝİɆ to close the gender gap in technology and change the image of what a programmer looks like and does. With their initiatives, EļƎŒƖɆÕķŨɆŨĐėɆëƎėɆŒėëĐļŝİɆƢķėɆśŨǁėśėŝƢɆƢŨɆļŝƖƋļƎėȚɆėĐƪĉëƢėȚɆ and equip young women with the computing skills to pursue 21 st century opportunities. QŝɆnëƎĉķɆǥǣǥǤȚɆǂėɆëŝŝŨƪŝĉėĐɆƢķëƢɆǂėɆëƎėɆƋƎŨǁļĐļŝİɆɏǥǨǣȚǣǣǣɆ of funding to the organisation to expand its global pipeline of programmes to spark girls’ interest in technology. This pipeline includes free coding clubs, at home modules, virtual mentoring, panels and workshops as well as career fairs. Through these ƋƎŨİƎëśśėƖȚɆEļƎŒƖɆÕķŨɆŨĐėɆķëƖɆƎėëĉķėĐɆśŨƎėɆƢķëŝɆǦǣǣȚǣǣǣɆ young women globally and has nearly 90,000 college-aged ëŒƪśŝļȚɆǂķŨɆëƎėɆśëŌŨƎļŝİɆļŝɆŨśƋƪƢėƎɆ©ĉļėŝĉėɆëŝĐɆƎėŒëƢėĐɆǘėŒĐƖșɆ ŒƪśŝļɆëƎėɆǤǨɆƢļśėƖɆśŨƎėɆŒļŏėŒǈɆƢŨɆƖƢƪĐǈɆƖƪĉķɆĐėİƎėėƖȚɆǂķėŝɆ ĉŨśƋëƎėĐɆƢŨɆƢķėɆ½©ɆëǁėƎëİėɆįŨƎɆįėśëŒėɆėŝƎŨŒśėŝƢƖșɆ{ǁėƎɆķëŒįɆ ŨįɆƢķėɆİļƎŒƖɆƖėƎǁėĐɆĈǈɆEļƎŒƖɆÕķŨɆŨĐėɆëƎėɆįƎŨśɆķļƖƢŨƎļĉëŒŒǈɆ underrepresented groups. The Tech Girls Movement Foundation ¶ķėɆ¶ėĉķɆEļƎŒƖɆnŨǁėśėŝƢɆDŨƪŝĐëƢļŨŝɆǂëƖɆįŨƪŝĐėĐɆļŝɆƪėėŝƖŒëŝĐȚɆ Australia in 2014 with the aim of actively challenging gender ƖƢėƎėŨƢǈƋėƖɆƢķëƢɆŒļśļƢɆİļƎŒƖȼɆƋëƎƢļĉļƋëƢļŨŝɆļŝɆ©ĉļėŝĉėȚɆ¶ėĉķŝŨŒŨİǈȚɆ ,ŝİļŝėėƎļŝİȚɆëŝĐɆnëƢķėśëƢļĉƖɆȩȹ©¶,nȺȪɆƖƪĈŌėĉƢƖșɆ¶ķėļƎɆǁļƖļŨŝɆ ļƖɆƢŨɆĉƎėëƢėɆëɆƖŨĉļėƢǈɆļŝɆǂķļĉķɆİļƎŒƖɆĉŨŝǘĐėŝƢŒǈɆŒėëĐɆļŝɆ©¶,nɆ entrepreneurship and contribute to their community and the economy. ¶ķƎŨƪİķɆƖƪƋƋŨƎƢɆįƎŨśɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝȚɆ¶ėĉķɆEļƎŒƖɆnŨǁėśėŝƢɆ Foundation was able to provide free competition places for girls ǂķŨɆįëĉėĐɆǘŝëŝĉļëŒɆĈëƎƎļėƎƖɆƢŨɆƋëƎƢļĉļƋëƢļŝİș Entain plc | Annual Report 2021 62 Strategic report Reduce environmental Impact 2021 has been pivotal in our efforts to address climate change and reduce our environmental impact. At the start of 2021, we pledged ƢŨɆĈėĉŨśėɆŝėƢɆǒėƎŨɆįŨƎɆİƎėėŝķŨƪƖėɆİëƖɆėśļƖƖļŨŝƖɆȩELEɆėśļƖƖļŨŝƖȪɆ ĈǈɆŝŨɆŒëƢėƎɆƢķëŝɆǥǣǦǨȚɆǤǨɆǈėëƎƖɆëķėëĐɆŨįɆƢķėɆǥǣǨǣɆƢëƎİėƢɆƪŝĐėƎɆ the Paris Agreement. As part of this, we are formally submitting ëɆŝėëƎȯƢėƎśɆƖĉļėŝĉėȯĈëƖėĐɆƢëƎİėƢɆƢŨɆƢķėɆ©ĉļėŝĉėɆëƖėĐɆ¶ëƎİėƢɆ ļŝļƢļëƢļǁėɆȩȹ©¶ļȺȪɆǂķļĉķɆǂļŒŒɆĈėɆėįįėĉƢļǁėɆįƎŨśɆǥǣǥǥșɆ¶ķļƖɆļƖɆƢķėɆŝėǇƢɆ step on our journey to net zero, and we will outline our pathway ƢŨɆëĉķļėǁļŝİɆŨƪƎɆëśĈļƢļŨƪƖɆƢëƎİėƢɆļŝɆŨƪƎɆƪƋĉŨśļŝİɆ,©EɆ¡ėƋŨƎƢșɆ ÕėɆƖƪĉĉėƖƖįƪŒŒǈɆļŝĉƎėëƖėĐɆŨƪƎɆƖĉŨƎėɆƢŨɆ$ȼƖɆŒļśëƢėɆķëŝİėɆ questionnaire, moving from a D in 2020 to a B-. We also achieved ŨƪƎɆǘƎƖƢɆQ©{ǤǧǣǣǣǤțǥǣǤǨɆ,ŝǁļƎŨŝśėŝƢëŒɆnëŝëİėśėŝƢɆ©ǈƖƢėśɆ ëĉĉƎėĐļƢëƢļŨŝȚɆĉŨǁėƎļŝİɆëɆŝƪśĈėƎɆŨįɆŨƪƎɆ½bɆŨįǘĉėƖȚɆƖƢëĐļëȚɆëŝĐɆ c.3,000 shops. In 2022, we will expand this coverage across our UK operations and, in later years, to our global operations. In the UK all of our electricity supply contracts for our shops and greyhound stadia have switched over to 100% renewable energy. With the renewable supply we already used in the Republic ŨįɆQƎėŒëŝĐȚɆƢķļƖɆëśŨƪŝƢƖɆƢŨɆǪǤɼɆŨįɆƢķėɆEƎŨƪƋȼƖɆƢŨƢëŒɆėŒėĉƢƎļĉļƢǈɆ consumption being actively sourced from renewables, and a reduction of over 4,000 tons of our market-based emissions compared to 2020. We continued to support climate mitigation beyond our own value chain by partnering with an independent platform to support tree ƋŒëŝƢļŝİɆëŝĐɆƎėįŨƎėƖƢëƢļŨŝɆƋƎŨŌėĉƢƖɆİŒŨĈëŒŒǈșɆǈɆƢķėɆėŝĐɆŨįɆƢķėɆǘƎƖƢɆ half of 2022 we will have planted one million trees in our Entain forest. By 2032 it is forecast that these trees with sequester 21,000 ƢŨŝŝėƖɆŨįɆ{ 2 e from the atmosphere and provide employment and training for local people as well as localised environmental ëŝĐɆƖŨĉļëŒɆĈėŝėǘƢƖșɆÕėɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆėǁŨŒǁėɆŨƪƎɆëƋƋƎŨëĉķɆƢŨɆ offsetting in line with best practice. We are also working to understand and reduce emissions ƢķƎŨƪİķŨƪƢɆŨƪƎɆǁëŒƪėɆĉķëļŝșɆÕėɆǂŨƎŏėĐɆǂļƢķɆƢķėɆëƎĈŨŝɆ¶ƎƪƖƢɆƢŨɆ ĉŨŝĐƪĉƢɆëɆƖĉƎėėŝļŝİɆëƖƖėƖƖśėŝƢɆŨįɆŨƪƎɆ©ĉŨƋėɆǦɆėśļƖƖļŨŝƖȚɆǂķļĉķɆ ǂėɆǂļŒŒɆƋƪĈŒļĉŒǈɆƎėƋŨƎƢɆįŨƎɆƢķėɆǘƎƖƢɆƢļśėɆļŝɆŨƪƎɆǥǣǥǥɆ,©EɆ¡ėƋŨƎƢșɆ ÕėɆëŒƖŨɆëĉķļėǁėĐɆdėǁėŒɆǤɆėƎƢļǘĉëƢļŨŝɆŨįɆƢķėɆëƎĈŨŝɆ¶ƎƪƖƢɆ©ƪƋƋŒǈɆ ķëļŝɆ©ƢëŝĐëƎĐȚɆëŝɆļśƋŨƎƢëŝƢɆǘƎƖƢɆƖƢėƋɆļŝɆĐėĉëƎĈŨŝļƖļŝİɆŨƪƎɆǁëŒƪėɆ ĉķëļŝșɆÕļƢķɆƢķļƖɆėǇėƎĉļƖėȚɆǂėȼǁėɆĉŨŝǘƎśėĐɆƢķëƢɆ,ŝƢëļŝȼƖɆ©ĉŨƋėɆǦɆ ėśļƖƖļŨŝƖɆśëŏėɆƪƋɆǬǩɼɆŨįɆŨƪƎɆƢŨƢëŒɆǁëŒƪėɆĉķëļŝɆėśļƖƖļŨŝƖșɆÕėȼǁėɆ also mapped hotspots across our value chain, identifying where carbon emissions are greatest. We’re now planning to engage with those these key suppliers and value chain partners that represent ǪǨɼɆŨįɆŨƪƎɆǁëŒƪėɆĉķëļŝɆėśļƖƖļŨŝƖș Our colleagues also play an important role in our decarbonisation strategy, and we make sure to bring them along in this journey. ,ƖƢëĈŒļƖķėĐɆļŝɆǥǣǤǬȚɆŨƪƎɆEƎėėŝɆśĈëƖƖëĐŨƎƖɆpėƢǂŨƎŏɆķëƖɆİƎŨǂŝɆ İŒŨĈëŒŒǈɆƢŨɆǤǥǣɆĉŨŒŒėëİƪėƖɆǂķŨɆķėŒƋɆƪƖɆǘŝĐɆƋƎëĉƢļĉëŒɆǂëǈƖɆƢŨɆ ļśƋƎŨǁėɆėŝǁļƎŨŝśėŝƢëŒɆėįǘĉļėŝĉǈɆļŝɆƢķėɆǂŨƎŏƋŒëĉėșɆÕļƢķɆƢķėļƎɆ support and guidance, we’ve piloted two environmental awareness campaigns in 2021: Make Today Matter , to communicate our Net Zero target across the organisation, and It’s a Turn-Off , to drive positive behaviour change around energy consumption in our operations. As more colleagues return to the workplace this year, we will focus our awareness activities on waste and recycling. ÕėɆķëǁėɆëŒƖŨɆƖėƢɆƪƋɆëɆpėƢɆåėƎŨɆĉƢļŨŝɆEƎŨƪƋȚɆĉŨŝǁėŝļŝİɆƖėŝļŨƎɆ colleagues across departments to develop and accelerate our decarbonisation strategy with practical measures which can be implemented throughout our global operations. 63 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ¶ëƖŏɆDŨƎĉėɆįŨƎɆŒļśëƢėȯƎėŒëƢėĐɆDļŝëŝĉļëŒɆ $ļƖĉŒŨƖƪƎėƖɆȩȹ¶D$ȺȪɆ©ƢëƢėśėŝƢ ,ŝƢëļŝɆļƖɆëɆƖƪƋƋŨƎƢėƎɆŨįɆƢķėɆƎėĉŨśśėŝĐëƢļŨŝƖɆŨįɆƢķėɆ¶ëƖŏɆDŨƎĉėɆįŨƎɆŒļśëƢėȯƎėŒëƢėĐɆDļŝëŝĉļëŒɆ $ļƖĉŒŨƖƪƎėƖɆȩȹ¶D$ȺȪȚɆëŝĐɆļƢɆļƖɆĉŨśśļƢƢėĐɆƢŨɆļśƋŒėśėŝƢļŝİɆƢķėɆ¶D$ɆƎėĉŨśśėŝĐëƢļŨŝƖșɆÕėɆ ëŒƖŨɆǂėŒĉŨśėɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆƢķėɆDɆƎėƍƪļƎėśėŝƢƖɆįŨƎɆ½bɆƎėśļƪśɆdļƖƢėĐɆŨśƋëŝļėƖɆƢŨɆ ƎėƋŨƎƢɆļŝɆŒļŝėɆǂļƢķɆƢķėɆ¶D$ɆƎėĉŨśśėŝĐëƢļŨŝƖșɆ In this section, we outline our approach to climate-related risks and opportunities. This ƖƢëƢėśėŝƢɆļƖɆļŝɆŒļŝėɆǂļƢķɆƢķėɆįŨƪƎɆƋļŒŒëƎƖɆŨįɆƢķėɆƎėĉŨśśėŝĐëƢļŨŝƖțɆEŨǁėƎŝëŝĉėȚɆ©ƢƎëƢėİǈȚɆ¡ļƖŏɆ Management and Metrics and Targets. Whilst we discuss in general terms the resilience of our strategy and approach considering different climate-related scenarios, we plan to further specify this and include quantitative measures in future years. Governance ¶ķėɆEƎŨƪƋɆŨëƎĐɆļƖɆƪŒƢļśëƢėŒǈɆ responsible for climate-related risks and opportunities, with overall ownership of this agenda sitting driven by our ,{șɆ¡ėƖƋŨŝƖļĈļŒļƢǈɆįŨƎɆļĐėŝƢļįǈļŝİɆëŝĐɆ managing risk is delegated to both the ŨëƎĐȯŒėǁėŒɆ,©EɆŨśśļƢƢėėɆëŝĐɆƢķėɆ ƪĐļƢɆŨśśļƢƢėėȚɆǂķŨɆëƎėɆëĉĉŨƪŝƢëĈŒėɆ for monitoring our progress against targets, and ensuring climate-related risks are adequately addressed, respectively. The involvement of two ŨëƎĐɆŨśśļƢƢėėƖɆƎėǙėĉƢƖɆƢķėɆļŝƢėƎȯ related nature of climate-related risks and opportunities, and our commitment ƢŨɆĉŒļśëƢėɆëĉƢļŨŝșɆŒļśëƢėȯƎėŒëƢėĐɆļƖƖƪėƖɆ are raised at least quarterly with the ,©EɆŨśśļƢƢėėș ¶ķėƖėɆŨśśļƢƢėėƖɆëƎėɆƖƪƋƋŨƎƢėĐɆĈǈɆƢķėɆ ,©EɆ©ƢėėƎļŝİɆŨśśļƢƢėėɆȩǂķļĉķɆƎėƋŨƎƢƖɆ ƢŨɆƢķėɆŨëƎĐɆ,©EɆŨśśļƢƢėėȪɆëŝĐɆŨƪƎɆ pėƢɆåėƎŨɆĉƢļŨŝɆEƎŨƪƋɆƢŨɆĉķëŒŒėŝİėɆ and advise on the prioritisation and mitigation of climate-related risks and opportunities, as well as implement our ĉŒļśëƢėɆƖƢƎëƢėİǈșɆ¶ķėɆ¡ļƖŏɆŨśśļƢƢėėȚɆ ǂķļĉķɆƎėƋŨƎƢƖɆƢŨɆƢķėɆƪĐļƢɆŨśśļƢƢėėɆ and is chaired by Rob Wood, has operational responsibility for managing ƎļƖŏɆǂļƢķļŝɆƢķėɆEƎŨƪƋȚɆļŝĉŒƪĐļŝİɆĉŒļśëƢėȯ related risks. Physical risks As the operator of a large retail estate and four stadia in the UK and ROI, there is the risk that climate change will bring about increased exposure of these sites to extreme weather events in the longer ƢėƎśȚɆėƖƋėĉļëŒŒǈɆǙŨŨĐļŝİșɆ¶ķļƖɆĉŨƪŒĐɆĉëƪƖėɆ shop closures and increased insurance claims liability. This exposure varies across our estate, based on geography. EļǁėŝɆƢķėɆİėŨİƎëƋķļĉëŒɆĐļƖƋėƎƖļŨŝɆŨįɆŨƪƎɆ ėƖƢëƢėȚɆëƖɆǂėŒŒɆëƖɆƢķėɆĐļǁėƎƖļǘĉëƢļŨŝɆŨįɆŨƪƎɆ business into digital, this risk has not yet ĈėėŝɆļĐėŝƢļǘėĐɆëƖɆëɆƋƎļŝĉļƋëŒɆƎļƖŏș Transition risks As part of the transition to a lower-carbon economy, we expect an increase in the requirements for and expectations on our organisation to accurately report and reduce greenhouse gas emissions. We are managing this risk through our ambitious climate commitments – to reduce our greenhouse gas emissions ļŝɆŒļŝėɆǂļƢķɆëɆƖĉļėŝĉėȯĈëƖėĐɆǤșǨɆĐėİƎėėɆ scenario, and reach net-zero emissions by ǥǣǦǨșɆQŝɆǥǣǥǥȚɆǂėɆëŒƖŨɆƋƪƎĉķëƖėĐɆǤǣǣɼɆ renewable electricity across our UK and Irish retail estate, as well as many of our śëŌŨƎɆŨįǘĉėƖșɆEŒŨĈëŒŒǈȚɆŨǁėƎɆǪǣɼɆŨįɆŨƪƎɆ electricity purchased was from renewable energy contracts. This provides us with an opportunity to improve our trust and reputation with key stakeholders and realise cost savings through our energy ėįǘĉļėŝĉǈɆļśƋƎŨǁėśėŝƢƖɆëƖɆƋëƎƢɆŨįɆŨƪƎɆ ongoing shop refurbishment scheme. We have also undertaken a screening ëƖƖėƖƖśėŝƢɆŨįɆŨƪƎɆ©ĉŨƋėɆǦɆėśļƖƖļŨŝƖȚɆ which is outlined in this report. We have started to engage our key suppliers to support them in reducing their own emissions. We will start to report ƖǈƖƢėśëƢļĉëŒŒǈɆŨŝɆŨƪƎɆ©ĉŨƋėɆǦɆėśļƖƖļŨŝƖɆ in the coming years, improving the data quality and coverage of primary information obtained directly from our value chain partners. Risk management The process for identifying, assessing, and managing climate-related risks is integrated into our overall risk management and governance framework, ǂķļĉķɆļƖɆŨƪƢŒļŝėĐɆŨŝɆƋëİėƖɆǪǫɆƢŨɆǫǨșɆ As part of this process, mitigation ëŝĐɆśëŝëİėśėŝƢɆŨįɆƖƋėĉļǘĉɆƎļƖŏƖɆļƖɆ delegated to the relevant divisional or functional heads. At the end of 2021, we initiated a project to review the climate-related risks ļĐėŝƢļǘėĐɆļŝɆŨƪƎɆƎļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖșɆ This will involve an in-depth review of ƢķėɆĉƪƎƎėŝƢɆƎļƖŏƖɆļĐėŝƢļǘėĐȚɆëƖɆǂėŒŒɆëƖɆ considering future climate scenarios, in ŒļŝėɆǂļƢķɆƢķėɆ¶D$ɆƎėĉŨśśėŝĐëƢļŨŝƖșɆ In Q2 of 2022, we will convene leaders across Entain to carefully consider three climate change scenarios describing a ƢėśƋėƎëƢƪƎėɆƎļƖėɆŨįɆǤșǨʇȚɆǥșǣʇȚɆëŝĐɆ ǦșǣʇɆĉŨśƋëƎėĐɆƢŨɆƋƎėȯļŝĐƪƖƢƎļëŒɆŒėǁėŒƖșɆ This exercise will enable us to sense check our current risks, identify additional risks and opportunities, and communicate their ļśƋëĉƢɆŨŝɆƢķėɆEƎŨƪƋɆëŝĐɆŨƪƎɆƖƢëŏėķŨŒĐėƎƖșɆ The project is being championed by our ,{ȚɆǂļƢķɆƢķėɆŨƪƢƋƪƢɆļŝįŨƎśļŝİɆŨƪƎɆŝėǇƢɆ ¶D$ɆĐļƖĉŒŨƖƪƎėș By involving senior leaders across the EƎŨƪƋɆļŝɆƢķļƖɆǂŨƎŏȚɆǂėɆķŨƋėɆƢŨɆėŝĉŨƪƎëİėɆ holistic thinking about climate-related risk. We want our leaders to provide guidance and support for further incorporating ĉŒļśëƢėȯƎėŒëƢėĐɆƎļƖŏɆļĐėŝƢļǘĉëƢļŨŝɆëŝĐɆ management into the operational risk registers of each division and function. As the time horizons for climate-related risks tend to span longer into the future than many other risks, we will implement a parallel process to ensure that longer term risks are formally considered as part of our climate and business strategies. Strategy We identify climate-related risks as ƋëƎƢɆŨįɆŨƪƎɆEƎŨƪƋɆƎļƖŏɆśëŝëİėśėŝƢɆ system. Through this process, we have ļĐėŝƢļǘėĐɆĈŨƢķɆƋķǈƖļĉëŒɆëŝĐɆƢƎëŝƖļƢļŨŝɆ risks and opportunities, with the key risks explained below. As a result of this assessment, no climate-related risks ķëǁėɆĈėėŝɆļĐėŝƢļǘėĐɆëƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆƢŨɆ ƢķėɆEƎŨƪƋȚɆëŝĐɆƢķėǈɆëƎėɆëĐĐƎėƖƖėĐɆëƢɆƢķėɆ functional and divisional levels. Entain plc | Annual Report 2021 64 Strategic report Targets and metrics QŝɆƢķėɆƢëĈŒėɆĈėŒŨǂȚɆǂėɆŨƪƢŒļŝėɆŨƪƎɆİƎėėŝķŨƪƖėɆİëƖɆėśļƖƖļŨŝƖȚɆǂļƢķɆëɆįƪƎƢķėƎɆĈƎėëŏĐŨǂŝɆƢŨɆĈėɆƋƎŨǁļĐėĐɆļŝɆŨƪƎɆƪƋĉŨśļŝİɆ,©EɆƎėƋŨƎƢșɆ We also report on our global energy consumption, and the percentage of electricity purchased on renewable energy contracts. These metrics are used to monitor our performance in managing our transition risks, and to monitor our progress against our science- based greenhouse gas reduction targets. EļǁėŝɆƢķėɆƖļİŝļǘĉëŝĉėɆŨįɆƢķļƖɆëƎėëȚɆƢķėɆƎėƋƪƢëƢļŨŝëŒɆƎļƖŏɆŨįɆļŝëĉĉƪƎëƢėɆƎėƋŨƎƢļŝİȚɆëŝĐɆƢķėɆŝėėĐɆįŨƎɆķļİķȯƍƪëŒļƢǈɆ,©EɆĐëƢëȚɆǂėɆ ĉŨśśļƖƖļŨŝėĐɆƢķėɆëƎĈŨŝɆ¶ƎƪƖƢɆƢŨɆëƖƖƪƎėɆŨƪƎɆ©ĉŨƋėɆǤȚɆǥɆëŝĐɆĈƪƖļŝėƖƖɆƢƎëǁėŒɆĐëƢëșɆ¶ķļƖɆëƖƖƪƎëŝĉėɆķëƖɆƢëŏėŝɆƋŒëĉėɆįŨƎɆŨƪƎɆǥǣǤǬɆëŝĐɆ 2020 data, with our 2021 data to be assured in 2022. ,ŝǁļƎŨŝśėŝƢëŒɆbQƖȚɆļŝĉŒƪĐļŝİɆ©ƢƎėëśŒļŝėĐɆ,ŝėƎİǈɆëŝĐɆëƎĈŨŝɆ¡ėƋŨƎƢļŝİɆȩ©,¡ȪɆĐëƢë 2021 1 2020 2 2019 2 ¶ŨƢëŒɆėŝėƎİǈɆĉŨŝƖƪśƋƢļŨŝɆȩŏÕķȪ 112,035,246 ǤǤǤȚǪǨǨȚǥǪǣ ǤǧǬȚǬǪǩȚǧǬǫ UK 86,962,233 92,776,583 123,723,097 Rest of the world (“ROW”) 25,073,014 18,978,687 26,253,400 ¶ŨƢëŒɆELEɆėśļƖƖļŨŝƖɆȱɆĐļƎėĉƢɆëŝĐɆļŝĐļƎėĉƢɆȩƢŨŝŝėƖɆ{ 2 ėȪ 3,4 26,960 ǥǫȚǬǨǫ ǧǤȚǦǨǦ UK 18,679 21,497 29,331 Rest of the world 8,281 7,461 12,022 ¶ŨƢëŒɆELEɆėśļƖƖļŨŝƖɆļŝƢėŝƖļƢǈɆƋėƎɆėśƋŒŨǈėėɆȩƢŨŝŝėƖɆ{ 2 ėȦķėëĐĉŨƪŝƢȪ 3,4 1.07 1.21 Ǥșǩǫ ¶ŨƢëŒɆĐļƎėĉƢɆėśļƖƖļŨŝƖɆȩ©ĉŨƋėɆǤȪɆȱɆĐļƎėĉƢɆȩƢ{ 2 ėȪ 3,4 1,998 ǫǥǥ ǦȚǣǫǦ ¶ŨƢëŒɆļŝĐļƎėĉƢɆėśļƖƖļŨŝƖɆȩ©ĉŨƋėɆǥȪɆȱɆļŝĐļƎėĉƢɆȩƢ{ 2 ėȪ 3,4 24,962 ǥǫȚǤǦǩ ǦǫȚǥǪǣ % of purchased electricity from renewable sources 71% ǨǬɼ Ǩɼ ÕëƢėƎɆǂļƢķĐƎëǂëŒɆȩĉƪĈļĉɆśėƢƎėƖȪ 5 231,789 ǥǨǥȚǦǧǨ ǨǥǪȚǩǬǧ ǤșɆ ,ƖƢļśëƢėƖɆįŨƎɆƢķėɆįƪŒŒɆǥǣǥǤɆƎėƋŨƎƢļŝİɆǈėëƎɆǂėƎėɆƖƢļŒŒɆĈėļŝİɆǘŝëŒļƖėĐɆëƢɆƢķėɆƢļśėɆŨįɆƎėƋŨƎƢļŝİȚɆëŝĐɆśëǈɆĈėɆƎėǁļƖėĐɆļŝɆƖƪĈƖėƍƪėŝƢɆƎėƋŨƎƢļŝİș ǥșɆ $ëƢëɆįƎŨśɆƋƎėǁļŨƪƖɆǈėëƎƖɆķëƖɆĈėėŝɆƎėƖƢëƢėĐɆĈëƖėĐɆŨŝɆśļŝŨƎɆëĐŌƪƖƢśėŝƢƖɆƢķëƢɆëƎŨƖėɆëƖɆƋëƎƢɆŨįɆ,ŝƢëļŝȼƖɆELEɆļŝĐėƋėŝĐėŝƢɆĐëƢëɆǁëŒļĐëƢļŨŝɆĈǈɆƢķėɆëƎĈŨŝɆ¶ƎƪƖƢș ǦșɆ ,śļƖƖļŨŝƖɆëƎėɆĉëŒĉƪŒëƢėĐɆƪƖļŝİɆƢķėɆELEɆƎŨƢŨĉŨŒɆŨƎƋŨƎëƢėɆĉĉŨƪŝƢļŝİɆëŝĐɆ¡ėƋŨƎƢļŝİɆ©ƢëŝĐëƎĐșɆŨŝƖƪśƋƢļŨŝɆĐëƢëɆķëƖɆĈėėŝɆĉŨŝǁėƎƢėĐɆƢŨɆELEɆėśļƖƖļŨŝƖɆƪƖļŝİɆǥǣǥǤɆ,Q©Ɇ emissions factors and 2021 IEA emissions factors for non-UK grid electricity. We have excluded fugitive emissions from refrigerants, as they have been deemed de minimis in previous years. Emissions reported above are calculated using the location-based method, using an operational control boundary. ǧșɆ ELEɆėśļƖƖļŨŝƖɆĐëƢëɆķëƖɆĈėėŝɆĉëŒĉƪŒëƢėĐɆĈëƖėĐɆŨŝɆƋƎļśëƎǈɆĐëƢëɆĉŨǁėƎļŝİɆǤǣǣɼɆŨįɆ½bɆŨƋėƎëƢļŨŝƖȚɆëŝĐɆǬǨɼɆŨįɆİŒŨĈëŒɆŨƋėƎëƢļŨŝƖȚɆĈëƖėĐɆŨŝɆķėëĐĉŨƪŝƢșɆ¶ķėɆELEɆĐëƢëɆļƖɆƖĉëŒėĐɆ ƪƋɆƢŨɆėƖƢļśëƢėɆƢķėɆƢŨƢëŒɆİŒŨĈëŒɆELEɆėśļƖƖļŨŝƖɆëŝĐɆėŝėƎİǈɆĉŨŝƖƪśƋƢļŨŝș ǨșɆ ɆŒŒɆǂëƢėƎɆǂļƢķĐƎëǂŝɆļƖɆƖŨƪƎĉėĐɆįƎŨśɆśƪŝļĉļƋëŒɆǂëƢėƎɆƖƪƋƋŒļėƖșɆÕëƢėƎɆĐëƢëɆļŝĉŒƪĐėƖɆŨƪƎɆŨƋėƎëƢļŨŝƖɆļŝɆƢķėɆįŨŒŒŨǂļŝİɆĉŨƪŝƢƎļėƖțɆƪƖƢƎļëȚɆėŒİļƪśȚɆƪŒİëƎļëȚɆEļĈƎëŒƢëƎȚɆQŝĐļëȚɆ QƎėŒëŝĐȚɆQƖƎëėŒȚɆķļŒļƋƋļŝėƖȚɆ½bȚɆ½ƎƪİƪëǈșɆ¶ķļƖɆśëŏėƖɆƪƋɆǫǫɼɆŨįɆ,ŝƢëļŝȼƖɆİŒŨĈëŒɆķėëĐĉŨƪŝƢșɆpŨƢėɆƢķëƢɆƢķļƖɆĐëƢëɆļƖɆŝŨƢɆƖĉëŒėĐɆƪƋɆƢŨɆėƖƢļśëƢėɆƢķėɆƢŨƢëŒɆİŒŨĈëŒɆĉŨŝƖƪśƋƢļŨŝȚɆ ĈƪƢɇƎėƋŨƎƢėĐɆĉŨŝƖļƖƢėŝƢŒǈɆįŨƎɆƢķėɆŨƋėƎëƢļŨŝƖɆǂķėƎėɆĐëƢëɆļƖɆëǁëļŒëĈŒėș Our Commitment to Human Rights We are committed to act morally, honestly, openly ëŝĐɆǂļƢķɆļŝƢėİƎļƢǈɆļŝɆėǁėƎǈƢķļŝİɆǂėɆĐŨșɆÕėɆǘƎśŒǈɆ believe that a robust approach to protect human rights and prevent modern slavery is one way we can evidence this, as well as demonstrating our positive contribution to the communities in which we ǂŨƎŏɆëŝĐɆƢŨɆƖŨĉļėƢǈɆëƢɆŒëƎİėșɆÕėɆķëǁėɆļĐėŝƢļǘėĐɆƢķëƢɆ the two main potential risk areas for our business ëƎėɆļŝɆƢķėɆƎėĉƎƪļƢśėŝƢɆëŝĐɆŨŝĈŨëƎĐļŝİɆŨįɇƖƢëįįɆëŝĐɆļŝɆ our broader our supply chain. In 2021 we partnered with Unseen, a UK-based ĉķëƎļƢǈɆǘİķƢļŝİɆśŨĐėƎŝɆƖŒëǁėƎǈȚɆƢŨɆƖƢƎėŝİƢķėŝɆŨƪƎɆ procurement processes and policies. Unseen helped ƪƖɆƎėǁļƖėɆŨƪƎɆ©ƪƋƋŒļėƎɆŨĐėɆŨįɆŨŝĐƪĉƢȚɆƋƎŨǁļĐļŝİɆ greater emphasis on human rights standards within it. Every supplier must now approve the updated ŨĐėɆëŝĐɆƖķëƎėɆƢķėļƎɆëŝƢļȯĈƎļĈėƎǈɆëŝĐɆĉŨƎƎƪƋƢļŨŝɆ policy before they can start doing business with us. Unseen also helped us to upskill our procurement, L¡ȚɆëŝĐɆƋƎŨƋėƎƢǈɆĉŨŒŒėëİƪėƖȚɆĐėŒļǁėƎļŝİɆĈėƖƋŨŏėȚɆļŝȯ depth training courses on modern slavery. This was rolled out to all staff with a mandatory online ƢƎëļŝļŝİȚɆĉŨśƋŒėƢėĐɆĈǈɆǪǫɼ colleagues in 2021. In 2022, we will continue working with Unseen and implementing their recommendations. We will reinforce our supplier due diligence processes, with additional checks for high-risk suppliers at the onboarding stage and throughout the duration of the contract. We are also conducting a review of ŨƪƎɆƖƪƋƋŒļėƎɆƍƪėƖƢļŨŝŝëļƎėɆƢŨɆƎėǘŝėɆŨƪƎɆƖƪƋƋŒļėƎɆƎļƖŏɆ assessment and escalation process. Following this process we expect to introduce more stringent environmental and social clauses to our standard ¶ėƎśƖɆʁɆŨŝĐļƢļŨŝƖșɆ Data Privacy & Cybersecurity ©ëįėİƪëƎĐļŝİɆŨƪƎɆĉƪƖƢŨśėƎɆëŝĐɆĉŨƎƋŨƎëƢėɆļŝįŨƎśëƢļŨŝɆƎėśëļŝƖɆëɆƢŨƋɆ priority for Entain, as our betting and gaming interactive entertainment ŨįįėƎɆĉŨŝƢļŝƪėƖɆƢŨɆėǇƋëŝĐșɆ{ƪƎɆĉŨśśļƢśėŝƢɆļƖɆƎėǙėĉƢėĐɆļŝɆëɆİƎŨǂļŝİɆ headcount and the robust governance procedures we have implemented. {ƪƎɆķļėįɆƎļǁëĉǈɆ{įǘĉėƎɆȩǂķŨɆëŒƖŨɆķŨŒĐƖɆƢķėɆƋŨƖļƢļŨŝɆŨįɆEƎŨƪƋɆ$ëƢëɆ ƎŨƢėĉƢļŨŝɆ{įǘĉėƎȪɆëŝĐɆŨƪƎɆķļėįɆ©ėĉƪƎļƢǈɆ{įǘĉėƎɆƋƎŨǁļĐėɆƎėİƪŒëƎɆƪƋĐëƢėƖɆƢŨɆ ƢķėɆŨëƎĐɆëŝĐɆĐėŒļǁėƎɆĐėėƋȯĐļǁėɆƖėƖƖļŨŝƖɆƢŨɆŨƪƎɆ,ǇėĉƪƢļǁėɆŨśśļƢƢėėș QŝɆǥǣǥǤȚɆǂėɆįƪƎƢķėƎɆėśĈėĐĐėĐɆŨƪƎɆEƎŨƪƋȯǂļĐėɆ$ëƢëɆƎŨƢėĉƢļŨŝɆëŝĐɆ$ëƢëɆ Retention policies, which apply to everyone working for Entain, including ëİėŝĉǈɆƖƢëįįɆëŝĐɆĉŨŝƢƎëĉƢŨƎƖșɆǥǤȚǧǬǨɆĉŨŒŒėëİƪėƖɆĉŨśƋŒėƢėĐɆƢķėɆëŝŝƪëŒɆ śëŝĐëƢŨƎǈɆE$¡ɆƢƎëļŝļŝİȚɆëŝĐɆĐëƢëɆŨǂŝėƎƖɆķëǁėɆĈėėŝɆļĐėŝƢļǘėĐɆëĉƎŨƖƖɆëŒŒɆ departments to implement a four-stage data retention programme. Data privacy is also built into the development of our safer betting and İëśļŝİɆļŝļƢļëƢļǁėƖȚɆļŝĉŒƪĐļŝİɆļŝɆŨƪƎɆŝėǂɆ¡ʆɆƋƎŨİƎëśśėșɆÕķļŒƖƢɆǂėɆƪƖėɆ ĐëƢëȯĐƎļǁėŝɆƢėĉķŝŨŒŨİļėƖɆƖƪĉķɆëƖɆƎƢļǘĉļëŒɆQŝƢėŒŒļİėŝĉėɆȩȹQȺȪɆƢŨɆĉƎėëƢėɆëɆ safe environment for our players, we also have a duty to meet their privacy expectations and we’re working hard to strike that balance. Our data ƋƎļǁëĉǈɆėǇƋėƎƢƖɆëƎėɆƋëƎƢɆŨįɆƢķėɆ¡ʆɆ©ƢėėƎļŝİɆŨśśļƢƢėėȚɆƢķƎŨƪİķɆǂķļĉķɆ they provide technical guidance to the safer betting and gaming and customer services teams. Over the year, these teams undertook a Data ƎļǁëĉǈɆQśƋëĉƢɆƖƖėƖƖśėŝƢɆȩȹ$QȺȪɆƋƎŨİƎëśśėȚɆķėŒƋļŝİɆƢķėśɆƢŨɆëĐĐƎėƖƖɆ privacy-by-design requirements and implement appropriate disclosure into privacy notices. We have also developed an AI and Data Ethics ķëƎƢėƎȚɆŨǁėƎƖėėŝɆĈǈɆƢķėɆ,©EɆŨśśļƢƢėėȚɆǂķļĉķɆĐėǘŝėƖɆŨƪƎɆƋƎļŝĉļƋŒėƖɆŨŝɆ the responsible use of AI to ensure it is used in the best interests of our customers and employees. Our investment in cybersecurity continues to grow, with our team’s ķėëĐĉŨƪŝƢɆļŝĉƎėëƖļŝİɆĈǈɆǦǦɼɆļŝɆǥǣǥǤșɆÕėɆĉƎėëƢėĐɆëɆǈĈėƎƖėĉƪƎļƢǈɆƎļƖļƖɆ Management Plan, which guides our response across all functions and business units in case of a critical cybersecurity breach. We’ve also initiated a new programme to reduce data privacy and cybersecurity risks in śėƎİėƎƖɆʁɆëĉƍƪļƖļƢļŨŝƖɆȩȹnʁȺȪȚɆĈŨŒƖƢėƎļŝİɆĐƪėɆĐļŒļİėŝĉėɆŨŝɆnʁɆƢëƎİėƢƖɆ ëŝĐɆƖƋėėĐļŝİɆƪƋɆƢķėɆļŝƢėİƎëƢļŨŝɆƋƎŨĉėƖƖșɆƪƖļŝėƖƖėƖɆŌŨļŝļŝİɆƢķėɆEƎŨƪƋɆśƪƖƢɆ now align with our data privacy and cybersecurity requirements within six months of acquisition. 65 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Financial Results and the use of Non-GAAP measures ¶ķėɆEƎŨƪƋȼƖɆƖƢëƢƪƢŨƎǈɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆļƖɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQŝƢėƎŝëƢļŨŝëŒɆDļŝëŝĉļëŒɆ¡ėƋŨƎƢļŝİɆ©ƢëŝĐëƎĐƖɆȩȹQD¡©ȺȪɆëŝĐɆQD¡©Ɇ QŝƢėƎƋƎėƢëƢļŨŝƖɆŨśśļƢƢėėɆȩȹQD¡©ɆQȺȪɆƋƎŨŝŨƪŝĉėśėŝƢƖɆëƖɆëĐŨƋƢėĐɆįŨƎɆƪƖėɆļŝɆƢķėɆ,ƪƎŨƋėëŝɆ½ŝļŨŝșɆQŝɆëĐĐļƢļŨŝɆƢŨɆƢķėɆƖƢëƢƪƢŨƎǈɆļŝįŨƎśëƢļŨŝɆ ƋƎŨǁļĐėĐȚɆśëŝëİėśėŝƢɆķëƖɆëŒƖŨɆƋƎŨǁļĐėĐɆëĐĐļƢļŨŝëŒɆļŝįŨƎśëƢļŨŝɆļŝɆƢķėɆįŨƎśɆŨįɆŨŝƢƎļĈƪƢļŨŝȚɆ,Q¶$¡ɆëŝĐɆ,Q¶$ɆëƖɆƢķėƖėɆśėƢƎļĉƖɆëƎėɆ ļŝĐƪƖƢƎǈɆƖƢëŝĐëƎĐɆbQƖɆǂķļĉķɆķėŒƋɆįëĉļŒļƢëƢėɆƢķėɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆEƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėɆļŝɆĉŨśƋëƎļƖŨŝɆƢŨɆļƢƖɆƋėėƎƖșɆɆįƪŒŒɆƎėĉŨŝĉļŒļëƢļŨŝɆ ŨįɆƢķėƖėɆŝŨŝȯEɆśėëƖƪƎėƖɆļƖɆƋƎŨǁļĐėĐɆǂļƢķļŝɆƢķėɆQŝĉŨśėɆ©ƢëƢėśėŝƢɆëŝĐɆƖƪƋƋŨƎƢļŝİɆśėśŨșɆ ¶ķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŝİɆƖėİśėŝƢƖɆëƎėɆŝŨǂɆëİİƎėİëƢėĐɆļŝƢŨɆǘǁėɆƎėƋŨƎƢëĈŒėɆƖėİśėŝƢƖȜɆ{ŝŒļŝėȚɆ¡ėƢëļŒȚɆpėǂɆ{ƋƋŨƎƢƪŝļƢļėƖȚɆ{ƢķėƎɆëŝĐɆ ŨƎƋŨƎëƢėșɆ¶ķļƖɆƎėƋƎėƖėŝƢƖɆëɆĉķëŝİėɆįƎŨśɆǥǣǥǣɆǂļƢķɆŨƪƎɆįŨƎśėƎɆ½bɆëŝĐɆ,ƪƎŨƋėëŝɆ¡ėƢëļŒɆƖėİśėŝƢƖɆŝŨǂɆĉŨśĈļŝėĐɆƢŨɆįŨƎśɆŨŝėɆ¡ėƢëļŒɆ ƖėİśėŝƢɆëŝĐɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆëɆpėǂɆ{ƋƋŨƎƢƪŝļƢļėƖɆƖėİśėŝƢɆƢŨɆƎėǙėĉƢɆƢķėɆļŝǁėƖƢśėŝƢɆƖƢƎëƢėİǈɆļŝɆļŝŝŨǁëƢļŨŝɆëŝĐɆŝėǂɆƋƎŨĐƪĉƢƖɆëŝĐɆ ǁėƎƢļĉëŒƖɆƖƪĉķɆëƖɆėƖƋŨƎƢƖɆǂëİėƎļŝİɆƋƎŨĐƪĉƢƖɆëƖɆëŝŝŨƪŝĉėĐɆļŝɆƪİƪƖƢɆǥǣǥǤșɆŨƢķɆĉķëŝİėƖɆëƎėɆļŝɆŒļŝėɆǂļƢķɆƢķėɆĉķëŝİėƖɆļŝɆƢķėɆEƎŨƪƋȼƖɆ ƎėƋŨƎƢļŝİɆƢŨɆƢķėɆėǇėĉƪƢļǁėɆśëŝëİėśėŝƢɆƢėëśɆȩȹ{$nȺȪȚɆǂļƢķɆƢķėɆ¡ėƢëļŒɆĉŨŝƖŨŒļĐëƢļŨŝɆëŒƖŨɆëɆƋƎŨĐƪĉƢɆŨįɆŨƪƎɆ¡ėƢëļŒɆƖėİśėŝƢɆĐļƖƋŒëǈļŝİɆ ĉŨŝƖļƖƢėŝƢɆƢƎëĐļŝİɆƋëƢƢėƎŝƖɆëŝĐɆƎļƖŏɆƋƎŨǘŒėƖɆëĉƎŨƖƖɆƢėƎƎļƢŨƎļėƖɆëŝĐɆëŒŒɆ¡ėƢëļŒɆĈƪƖļŝėƖƖėƖɆŝŨǂɆƎėƋŨƎƢļŝİɆļŝƢŨɆƢķėɆ$ėƋƪƢǈɆķļėįɆ,ǇėĉƪƢļǁėɆ {įǘĉėƎȦķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎș Group Reported results 1,2 Year ended 31 December 2021 £m ǥǣǥǣɆ ɞś ķëŝİėɆ %  3 % NGR 3,886.3 ǦȚǩǥǫșǨ 7% ǫɼ Ô¶ȦE©¶ (56.3) ȩǩǩșǬȪ Ǥǩɼ Ǥǩɼ Revenue 3,830.0 ǦȚǨǩǤșǩ ǫɼ Ǭɼ EƎŨƖƖɆƋƎŨǘƢ 2,435.8 ǥȚǦǣǫșǩ ǩɼ Contribution 1,851.5 ǤȚǪǧǣșǥ ǩɼ Operating costs (952.7) ȩǫǪǫșǤȪ ȩǫɼȪ Underlying EBITDAR 4 898.8 ǫǩǥșǤ ǧɼ Rent and associated costs (17.1) ȩǤǬșǣȪ Ǥǣɼ Underlying EBITDA 4 881.7 ǫǧǦșǤ Ǩɼ ©ķëƎėȯĈëƖėĐɆƋëǈśėŝƢƖ (12.3) ȩǤǧșǫȪ ǤǪɼ ½ŝĐėƎŒǈļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (222.8) ȩǥǦǫșǩȪ 7% ©ķëƎėɆŨįɆÔɆļŝĉŨśė (162.5) ȩǩǣșǥȪ ȩǤǪǣɼȪ ½ŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢ 5 484.1 ǨǥǬșǨ ȩǬɼȪ Reported Results 1,2 : ÕķļŒėɆǥǣǥǤɆǂëƖɆëŝŨƢķėƎɆǈėëƎɆĐļƖƎƪƋƢėĐɆĈǈɆŨǁļĐȯǤǬɆëŝĐɆƢėśƋŨƎëƎǈɆƖķŨƋɆĉŒŨƖƪƎėƖȚɆƢķėɆEƎŨƪƋɆƖƢļŒŒɆĐėŒļǁėƎėĐɆƖƢƎŨŝİɆƪŝĐėƎŒǈļŝİɆǈėëƎɆŨŝɆ ǈėëƎɆİƎŨǂƢķɆļŝɆpE¡ɆŨįɆɣǪɼɆȩɣǫɼĉĉȪșɆ{ŝŒļŝėɆpE¡ɆǂëƖɆɣǥǫɼɆȩɣǥǪɼĉĉȪɆëķėëĐɆļŝɆƢķėɆǘƎƖƢɆķëŒįɆëƖɆ{ŝŒļŝėɆĈėŝėǘƢėĐɆįƎŨśɆ¡ėƢëļŒɆĉƪƖƢŨśėƎƖɆ ƋŒëǈļŝİɆ{ŝŒļŝėșɆŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆŨŝɆ¡ėƢëļŒɆƖëǂɆëŒŒɆŨįɆŨƪƎɆ¡ėƢëļŒɆƖƢŨƎėƖɆĉŒŨƖėĐɆļŝɆǤɆëŝĐɆėǇƢėŝĐėĐɆĉŒŨƖƪƎėƖɆļŝɆ,ƪƎŨƋėɆĉŨŝƢļŝƪļŝİɆļŝƢŨɆ ǥȚɆƎėƖƪŒƢļŝİɆļŝɆLǤɆpE¡ɆļŝɆ¡ėƢëļŒɆȯǧǩɼĉĉɆĈėķļŝĐɆƢķėɆƋƎļŨƎɆǈėëƎșɆLǥɆƖëǂɆëɆƎėƢƪƎŝɆƢŨɆśŨƎėɆŝŨƎśëŒɆƢƎëĐļŝİɆƋëƢƢėƎŝƖɆǂļƢķɆ¡ėƢëļŒɆŨƋėŝɆëŝĐɆ ŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆëĈëƢļŝİșɆ¡ėƖƪŒƢļŝİɆ¡ėƢëļŒɆpE¡ɆǂëƖɆɣǥǣɼĉĉɆëķėëĐɆļŝɆLǥɆǂļƢķɆ{ŝŒļŝėɆpE¡ɆëɆśŨƎėɆśŨĐėƖƢɆǤɼĉĉɆëķėëĐɆëƖɆļƢɆŒëƋƋėĐɆ ŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆļŝɆLǥɆǥǣǥǣșɆÕķļŒėɆŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆķëǁėɆĐļƖƢŨƎƢėĐɆƢķėɆǈėëƎɆŨŝɆǈėëƎɆĉŨśƋëƎļƖŨŝƖȚɆƋŒėëƖļŝİŒǈɆǂėɆëƎėɆėǇļƢļŝİɆǥǣǥǤɆ ǂļƢķɆ{ŝŒļŝėɆpE¡ɆļŝɆǧɆɣǥǬɼɆëķėëĐɆŨįɆǥǣǤǬɆȩɣǤǧɼɆƢǂŨɆǈėëƎɆE¡ȪɆëŝĐɆ¡ėƢëļŒɆŨǁėƎɆǬǣɼɆŨįɆƋƎėɆŨǁļĐȯǤǬɆpE¡ɆŨŝɆëɆŒļŏėȯįŨƎȯŒļŏėɆĈëƖļƖșɆ ¡ėƖƪŒƢļŝİɆįƪŒŒɆǈėëƎɆpE¡ɆǂëƖɆɣǤǦɼĉĉɆëķėëĐɆļŝɆ{ŝŒļŝėɆĈƪƢɆȯǪɼĉĉɆȩȯǦɼĉĉɆdDdȪɆĈėķļŝĐɆļŝɆ¡ėƢëļŒș ŨŝƢƎļĈƪƢļŨŝɆįŨƎɆƢķėɆǈėëƎɆŨįɆɞǤȚǫǨǤșǨśɆǂëƖɆǩɼɆķļİķėƎɆƢķëŝɆŒëƖƢɆǈėëƎȚɆƎėƋƎėƖėŝƢļŝİɆëɆĉŨŝƢƎļĈƪƢļŨŝɆśëƎİļŝɆŨįɆǧǪșǩɼȚɆȯǣșǧƋƋɆŒŨǂėƎɆƢķëŝɆŒëƖƢɆ ǈėëƎɆĐƪėɆƢŨɆëɆķļİķėƎɆ{ŝŒļŝėɆƖėİśėŝƢëŒɆśļǇɆëŝĐɆƢķėɆļśƋŒėśėŝƢëƢļŨŝɆŨįɆİëśļŝİɆƢëǇėƖɆļŝɆEėƎśëŝǈșɆ{ƋėƎëƢļŝİɆĉŨƖƢƖɆȩĈėįŨƎėɆƎėŝƢȪɆǂėƎėɆǫɼɆ ķļİķėƎɆĐƪėɆƢŨɆëĉƍƪļƖļƢļŨŝƖɆëŝĐɆļŝǁėƖƢśėŝƢɆļŝɆŨƪƎɆƋƎŨĐƪĉƢȚɆƢėĉķŝŨŒŨİǈɆëŝĐɆƋėŨƋŒėȚɆŒėëǁļŝİɆƪŝĐėƎŒǈļŝİɆ,Q¶$ ǧ ɆŨįɆɞǫǫǤșǪśȚɆɣǨɼɆķļİķėƎɆ ƢķëŝɆǥǣǥǣșɆ ©ķëƎėɆĈëƖėĐɆƋëǈśėŝƢɆĉķëƎİėƖɆǂėƎėɆɞǥșǨśɆŒŨǂėƎɆƢķëŝɆŒëƖƢɆǈėëƎȚɆǂķļŒėɆƪŝĐėƎŒǈļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝɆǂëƖɆǪɼɆŒŨǂėƎɆëƖɆƢķėɆ ļśƋëĉƢɆŨįɆķļƖƢŨƎļĉɆnʁɆŨŝɆĐėƋƎėĉļëƢļŨŝɆƖƢëƎƢƖɆƢŨɆƎėĐƪĉėșɆ©ķëƎėɆŨįɆÔɆŒŨƖƖėƖɆŨįɆɞǤǩǥșǨśɆļŝĉŒƪĐėƖɆëɆŒŨƖƖɆŨįɆɞǤǩǤșǬśɆƎėŒëƢļŝİɆƢŨɆėƢnEnȚɆ ǂķļĉķɆļƖɆļŝɆŒļŝėɆǂļƢķɆėǇƋėĉƢëƢļŨŝƖșɆEƎŨƪƋɆƪŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢ Ǩ ɆǂëƖɆȯǬɼɆĈėķļŝĐɆǥǣǥǣșɆįƢėƎɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆŨįɆɞǤǥǫșǦśɆ ėǇĉŒƪĐļŝİɆɞǨșǫśɆƎėĉŨƎĐėĐɆļŝɆļŝƢėƎėƖƢɆȩǥǣǥǣțɆɞǤǪǣșǩśɆėǇĉŒƪĐļŝİɆɞǨșǦśɆƎėĉŨƎĐėĐɆļŝɆļŝƢėƎėƖƢȪȚɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆǂëƖɆɞǦǨǨșǫśȚɆëɆĐėĉƎėëƖėɆŨįɆ ɞǦșǤśɆŨŝɆǥǣǥǣș ƪƖļŝėƖƖɆ¡ėǁļėǂ Entain plc | Annual Report 2021 66 Strategic report Online Reported results 1,2 Year ended 31 December 2021 £m ǥǣǥǣɆ ɞś ķëŝİėɆ %  3 % Sports wagers 14,165.9 ǤǤȚǪǫǣșǬ ǥǣɼ ǥǤɼ Sports margin 12.7% ǤǥșǪɼ – – ©ƋŨƎƢƖɆpE¡ 1,444.3 ǤȚǤǬǩșǫ ǥǤɼ ǥǥɼ EëśļŝİɆpE¡ 1,595.9 ǤȚǨǦǧșǫ ǧɼ ǩɼ ǥɆpE¡ 26.3 ǤǨșǬ ǩǨɼ ǩǫɼ Total NGR 3,066.5 ǥȚǪǧǪșǨ Ǥǥɼ ǤǦɼ Ô¶ȦE©¶ (56.3) ȩǩǩșǬȪ Ǥǩɼ Ǥǩɼ Revenue 3,010.2 ǥȚǩǫǣșǩ Ǥǥɼ Ǥǧɼ EƎŨƖƖɆƋƎŨǘƢ 1,871.5 ǤȚǪǣǫșǪ Ǥǣɼ Contribution 1,294.7 ǤȚǤǧǪșǧ ǤǦɼ ŨŝƢƎļĈƪƢļŨŝɆśëƎİļŝ 42.2% ǧǤșǫɼ ǣșǧƋƋ Operating costs (393.7) ȩǦǧǥșǨȪ ȩǤǨɼȪ Underlying EBITDAR 4 901.0 ǫǣǧșǬ Ǥǥɼ Rent and associated costs (2.0) ȩǤșǧȪ ȩǧǦɼȪ Underlying EBITDA 4 899.0 ǫǣǦșǨ Ǥǥɼ ©ķëƎėɆĈëƖėĐɆƋëǈśėŝƢƖ (5.3) ȩǧșǦȪ ȩǥǦɼȪ ½ŝĐėƎŒǈļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (116.7) ȩǤǥǣșǤȪ 3% ©ķëƎėɆŨįɆÔɆȩŒŨƖƖȪȦļŝĉŨśė (1.0) ǣșǤ ɆŝȦśɆ ½ŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢ 5 776.0 ǩǪǬșǥ Ǥǧɼ Reported Results 1,2 : {ƪƎɆ{ŝŒļŝėɆĈƪƖļŝėƖƖɆĉŨŝƢļŝƪėƖɆƢŨɆİŨɆįƎŨśɆƖƢƎėŝİƢķɆƢŨɆƖƢƎėŝİƢķɆëƢƢƎëĉƢļŝİɆŝėǂɆĉƪƖƢŨśėƎƖɆļŝɆëŒŒɆŨįɆŨƪƎɆśëŌŨƎɆśëƎŏėƢƖɆƢķƎŨƪİķɆƢķėɆƋƎŨǁļƖļŨŝɆ ŨįɆķļİķɆƍƪëŒļƢǈɆƋƎŨĐƪĉƢƖȚɆëɆśëƎŏėƢɆŒėëĐļŝİɆëƋƋƎŨëĉķɆƢŨɆƋŒëǈėƎɆƖëįėƢǈɆëŝĐɆëŝɆėǇĉėŒŒėŝƢɆĉƪƖƢŨśėƎɆėǇƋėƎļėŝĉėșɆpE¡ɆįŨƎɆƢķėɆǈėëƎɆǂëƖɆƪƋɆ ǤǥɼɆȩɣǤǦɼĉĉȪɆǈėëƎɆŨŝɆǈėëƎȚɆƎėƋƎėƖėŝƢļŝİɆëɆƢǂŨɆǈėëƎɆE¡ɆŨįɆɣǥǣɼĉĉșɆÕķļŒėɆŨƪƎɆŒŨŝİɆƎƪŝɆŨįɆƍƪëƎƢėƎŒǈɆĐŨƪĈŒėȯĐļİļƢɆİƎŨǂƢķɆȩëƢɆĉŨŝƖƢëŝƢɆ ĉƪƎƎėŝĉǈȪɆƢŨŨŏɆëɆƋëƪƖėɆļŝɆǧȚɆëƖɆǂėɆŒëƋƋėĐɆëɆŒŨĉŏĐŨǂŝɆĈėŝėǘƢėĐɆǥǣǥǣȚɆǂėɆëƎėɆėǇļƢļŝİɆǥǣǥǤɆļŝɆëŝɆėǇĉėŒŒėŝƢɆƋŨƖļƢļŨŝɆǂļƢķɆǧɆpE¡ɆɣǤǧɼĉĉɆ ëķėëĐɆŨįɆǥǣǤǬɆŨŝɆëɆƢǂŨɆǈėëƎɆE¡ɆĈëƖļƖșɆ,ǇĉŒƪĐļŝİɆEėƎśëŝǈɆëŝĐɆƢķėɆpėƢķėƎŒëŝĐƖȚɆǂķėƎėɆƎėİƪŒëƢŨƎǈɆĉķëŝİėƖɆëƎėɆƖļİŝļǘĉëŝƢŒǈɆļśƋëĉƢļŝİɆ ƢķėɆśëƎŏėƢȚɆ{ŝŒļŝėɆpE¡ɆǂëƖɆƪƋɆɣǥǤɼĉĉɆǈėëƎɆŨŝɆǈėëƎɆǂļƢķɆƖƢƎŨŝİɆİƎŨǂƢķɆļŝɆëŒŒɆŨįɆŨƪƎɆŏėǈɆśëƎŏėƢƖɆȩƢǂŨɆǈėëƎɆE¡ɆɣǥǪɼĉĉȪș ½ŝĐėƎŒǈļŝİɆ,Q¶$¡ȅɆŨįɆɞǬǣǤșǣśɆëŝĐɆƪŝĐėƎŒǈļŝİɆ,Q¶$ȅɆŨįɆɞǫǬǬșǣśɆǂėƎėɆǤǥɼɆëķėëĐɆŨįɆǥǣǥǣșɆ½ŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢȐɆŨįɆ ɞǪǪǩșǣśɆǂëƖɆǤǧɼɆëķėëĐɆëŝĐȚɆëįƢėƎɆĉķëƎİļŝİɆɞǤǨǧșǣśɆŨįɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖȚɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆǂëƖɆɞǩǥǥșǣśȚɆɞǥǧǪșǦśɆëķėëĐɆŨįɆ ŒëƖƢɆǈėëƎșɆ QŝɆƢķėɆ½bȚɆpE¡ɆǂëƖɆɣǤǣɼɆëķėëĐɆŨįɆƢķėɆƋƎļŨƎɆǈėëƎșɆ½bɆƖƋŨƎƢƖɆĈƎëŝĐƖɆpE¡ɆǂëƖɆɣǤǥɼĉĉɆëķėëĐɆĐƎļǁėŝɆĈǈɆļŝǁėƖƢśėŝƢɆļŝɆśëƎŏėƢļŝİɆëŝĐɆ ƋƎŨĐƪĉƢɆļŝŝŨǁëƢļŨŝɆļŝĉŒƪĐļŝİɆƢķėɆŒëƪŝĉķɆŨįɆdëĐĈƎŨŏėƖɆǨȯëȯƖļĐėȚɆëɆƋƎŨĐƪĉƢɆǂķļĉķɆİëǁėɆįëŝƖɆëŝɆȹėƋļĉɆŝėǂɆǂëǈɆƢŨɆĈėƢȺșɆnŨƎėɆƢķëŝɆǨǣɼɆ ŨįɆŨƪƎɆįŨŨƢĈëŒŒɆëĉƢļǁėɆĉƪƖƢŨśėƎɆĈëƖėɆƋŒëǈėĐɆǨȯëȯƖļĐėɆĐƪƎļŝİɆƢķėɆ,ƪƎŨɆǥǣǥǣȚɆǂķėƎėɆļƢɆǂëƖɆƋƎŨśŨƢėĐɆëŝĐɆŨįįėƎėĐɆŨŝɆėǁėƎǈɆśëƢĉķɆļŝɆƢķėɆ ƢŨƪƎŝëśėŝƢșɆÕėɆķëǁėɆĈėİƪŝɆƢŨɆĉķëŝİėɆŨƪƎɆëĐǁėƎƢļƖļŝİȚɆśëŏļŝİɆļƢɆśŨƎėɆėŝƢėƎƢëļŝļŝİɆëŝĐɆķļİķɆļśƋëĉƢɆƢŨɆėŝİëİėɆëŝĐɆėǇĉļƢėɆŝėǂɆëŝĐɆ ėǇļƖƢļŝİɆëƪĐļėŝĉėƖșɆ$ƪƎļŝİɆƢķėɆǈėëƎȚɆǂėɆƖëǂɆƢķėɆƎėŒėëƖėɆŨįɆƢǂŨɆśëŌŨƎɆ¶ÔɆĉëśƋëļİŝƖɆįŨƎɆdëĐĈƎŨŏėƖȜɆȹ$ƎƪśśėƎƖȺȚɆǂķļĉķɆĉëƋƢƪƎėĐɆƢķėɆ ėǇĉļƢėśėŝƢɆëŝĐɆëŝƢļĉļƋëƢļŨŝɆŨįɆƢķėɆƎėƢƪƎŝɆŨįɆįŨŨƢĈëŒŒȚɆëŝĐɆȹëŒŒŨŨŝȺȚɆëŝɆļŝĐƪƖƢƎǈɆǘƎƖƢɆĈƎëŝĐɆŒėĐɆĉëśƋëļİŝɆįŨƎɆĉëƖļŝŨɆëŝĐɆİëśļŝİȚɆĉëƋƢƪƎļŝİɆ ƢķėɆėŝŌŨǈśėŝƢɆŨįɆƋŒëǈļŝİɆƢŨİėƢķėƎșɆ{ƪƎɆİëśļŝİɆŨįįėƎļŝİɆëĉƎŨƖƖɆĈŨƢķɆĈƎëŝĐƖɆĉŨŝƢļŝƪėƖɆƢŨɆėǇƋëŝĐɆİļǁļŝİɆŨƪƎɆĉƪƖƢŨśėƎƖɆëĉĉėƖƖɆƢŨɆƢķėɆŒëƢėƖƢɆ ĉŨŝƢėŝƢɆļŝĉŒƪĐļŝİɆŨƎëŒȼƖɆDƎėėɆƢŨɆŒëǈɆƖŒŨƢƖɆƢŨƪƎŝëśėŝƢƖɆëƖɆǂėŒŒɆëƖɆļŝƢƎŨĐƪĉļŝİɆƢķėɆĈėƖƢɆŒļǁėɆİëśėƖɆƢŨɆdëĐĈƎŨŏėƖșɆÕėɆķëǁėɆļŝŝŨǁëƢėĐɆ ƢķėɆǂëǈɆǂėɆƪƖėɆĐļİļƢëŒɆĉķëŝŝėŒƖɆƢŨɆĉƎėëƢėɆśŨƎėɆėŝİëİļŝİɆëŝĐɆƋėƎƖŨŝëŒļƖėĐɆļŝƢėƎëĉƢļŨŝƖɆǂļƢķɆŨƪƎɆĉƪƖƢŨśėƎƖȚɆļŝĉŒƪĐļŝİɆŨƎëŒȼƖɆķƪİėŒǈɆ ƖƪĉĉėƖƖįƪŒɆȹİëļŝƖƢɆƢķėɆ{ĐĐƖȺɆƖƋŨƎƢļŝİɆĐŨĉƪśėŝƢëƎǈɆƖėƎļėƖɆŨŝɆQ¶ÔǧɆǂķļĉķɆĐėŒļǁėƎƖɆëɆƪŝļƍƪėɆļŝƖļİķƢɆļŝƢŨɆƖŨśėɆŨįɆƢķėɆśŨƖƢɆļŝƖƋļƎļŝİɆ ƖƋŨƎƢļŝİɆƖƢŨƎļėƖɆëŝĐɆƢķėɆȺŒŒɆƢŨɆŒëǈɆDŨƎȺɆǂėėŏŒǈɆƋŨĐĉëƖƢȚɆǂķļĉķɆƢëŏėƖɆëɆŒŨŨŏɆëƢɆƢķėɆĈļİİėƖƢɆįŨŨƢĈëŒŒɆİëśėƖɆŨįɆƢķėɆƖėëƖŨŝɆǂļƢķɆëɆƖƋėĉļëŒɆ İƪėƖƢɆŒļŝėɆƪƋșɆ ½bɆEëśļŝİɆĈƎëŝĐƖɆpE¡ɆǂėƎėɆɣǬɼĉĉɆëķėëĐɆŨįɆŒëƖƢɆǈėëƎșɆ{ƪƎɆDŨǇǈɆĈƎëŝĐɆĉŨŝƢļŝƪėƖɆƢŨɆİŨɆįƎŨśɆƖƢƎėŝİƢķɆƢŨɆƖƢƎėŝİƢķȚɆƪƋɆɣǧǩɼĉĉɆŨŝɆƢķėɆ ƋƎļŨƎɆǈėëƎɆëŝĐɆƪƋɆɣǨǫɼĉĉɆŨŝɆëɆƢǂŨȯǈėëƎɆE¡ɆĈëƖļƖșɆ¶ķėɆƖƢƎŨŝİɆƋėƎįŨƎśëŝĉėɆļŝɆƢķėɆ½bɆķëƖɆĈėėŝɆĐƎļǁėŝɆĈǈɆĉŨŝƢļŝƪėĐɆļŝǁėƖƢśėŝƢɆļŝɆ ƋƎŨĐƪĉƢɆëŝĐɆśëƎŏėƢļŝİɆļŝĉŒƪĐļŝİɆƢķėɆśļİƎëƢļŨŝɆŨįɆŨƪƎɆĈļŝİŨɆƋƎŨĐƪĉƢɆŨŝɆƢŨɆƢķėɆEƎŨƪƋȼƖɆƋƎŨƋƎļėƢëƎǈɆƢėĉķŝŨŒŨİǈȚɆƢķėɆƖƋŨŝƖŨƎƖķļƋɆŨįɆDļƎƖƢɆ $ëƢėƖɆëŝĐɆëɆŝėǂɆƎëŝİėɆŨįɆDŨǇǈɆļŝİŨɆ¶ÔɆĉëśƋëļİŝƖșɆ$ƪƎļŝİɆƢķėɆǈėëƎȚɆDŨǇǈɆǂëƖɆëǂëƎĐėĐɆƢķėɆļŝİŨɆ{ƋėƎëƢŨƎɆŨįɆƢķėɆÛėëƎɆëƢɆƢķėɆ,E¡Ɇ ǂëƎĐƖɆƎėĉŨİŝļƖļŝİɆŨƪƎɆƖƢëŝĐȯŨƪƢɆƋƎŨƋŨƖļƢļŨŝșɆ QŝɆQƢëŒǈȚɆpE¡ɆëĉƎŨƖƖɆƢķėɆƢķƎėėɆśëŌŨƎɆĈƎëŝĐƖɆȩ,ƪƎŨĈėƢȚɆĈǂļŝɆëŝĐɆEļŨĉŨɆ$ļİļƢëŒėȪɆǂëƖɆǦǤɼĉĉɆëķėëĐɆŨįɆǥǣǥǣșɆpE¡ɆİƎŨǂƢķɆǂëƖɆĐƎļǁėŝɆ ĈǈɆļŝǁėƖƢśėŝƢɆļŝɆƋƎŨĐƪĉƢɆëŝĐɆįėëƢƪƎėɆėŝķëŝĉėśėŝƢƖȚɆİļǁļŝİɆŨƪƎɆĉƪƖƢŨśėƎƖɆİƎėëƢėƎɆėǇƋėƎļėŝĉėƖɆëŝĐɆėǇĉļƢļŝİɆėŝƢėƎƢëļŝśėŝƢɆŨŝŒļŝėșɆ 67 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ¶ķļƖɆļŝĉŒƪĐėĐɆƢķėɆƎėŒėëƖėɆŨįɆŝėǂɆpɆİëśėɆįŨŨƢëİėȚɆƋƎėȯśëƢĉķɆįŨŨƢĈëŒŒɆƋŒëǈėƎɆśëƎŏėƢƖɆëŝĐɆǦǣǣɆŝėǂɆĉëƖļŝŨɆİëśėƖɆļŝɆ,ƪƎŨĈėƢșɆQŝɆĈǂļŝɆ ëŝĐɆEļŨĉŨɆ$ļİļƢëŒėȚɆŨƪƎɆļŝȯķŨƪƖėɆ,ƪƎŨĈėƢɆİëśėƖɆǂėŝƢɆŒļǁėɆëƖɆǂėŒŒɆëƖɆŒëƪŝĉķļŝİɆėƖƋŨƎƢƖɆƖƢƎėëśļŝİɆƢŨɆĈǂļŝșƢǁșɆÕėɆĉŨŝƢļŝƪėɆƢŨɆĈėŝėǘƢɆ įƎŨśɆƢķėɆƖƢƎėŝİƢķɆŨįɆŨƪƎɆŨśŝļɆĉķëŝŝėŒɆŨįįėƎļŝİȚɆĉŨśƋëƎėĐɆǂļƢķɆŨƪƎɆŨŝŒļŝėɆŨŝŒǈɆĉŨśƋėƢļƢŨƎƖȚɆƋëƎƢļĉƪŒëƎŒǈɆǂķėŝɆŨǁļĐɆƎėƖƢƎļĉƢļŨŝƖɆĉëƪƖėĐɆ ƢėśƋŨƎëƎǈɆƎėƢëļŒɆĉŒŨƖƪƎėƖș QŝɆƪƖƢƎëŒļëȚɆǂėɆķëǁėɆƖėėŝɆƖƢƎŨŝİɆƪŝĐėƎŒǈļŝİɆİƎŨǂƢķɆëİëļŝɆļŝɆǥǣǥǤɆǂļƢķɆpE¡ɆɣǥǣɼɆȩɣǤǫɼĉĉȪɆëķėëĐɆŨįɆǥǣǥǣɆëŝĐɆƪƋɆɣǦǨɼɆŨŝɆëɆ ƢǂŨȯǈėëƎɆE¡ɆĈëƖļƖșɆŨƢķɆŨƪƎɆĈƎëŝĐƖȚɆdëĐĈƎŨŏėƖɆëŝĐɆpėĐƖȚɆĉŨŝƢļŝƪėɆƢŨɆƎėƖŨŝëƢėɆǂļƢķɆĉƪƖƢŨśėƎƖɆëŝĐɆŨƪƎɆƢėëśɆĉŨŝƢļŝƪėɆƢŨɆǂŨƎŏɆŨŝɆ ƖėǁėƎëŒɆėǇĉļƢļŝİɆĉŨŝƢėŝƢɆëŝĐɆƋƎŨĐƪĉƢɆƎėŒėëƖėƖɆļŝɆëĐĐļƢļŨŝɆƢŨɆƢķŨƖėɆëŒƎėëĐǈɆƎėŒėëƖėĐɆļŝɆǥǣǥǤșɆŨƢķɆĈƎëŝĐƖɆĉŨŝƢļŝƪėɆƢŨɆİëļŝɆśëƎŏėƢɆƖķëƎėɆ ǂļƢķɆƢķėɆƖƢƎëƢėİļĉɆįŨĉƪƖɆŨŝɆƋƎŨĐƪĉƢɆļŝŝŨǁëƢļŨŝȚɆĈƎëŝĐɆëĉƢļǁëƢļŨŝɆëŝĐɆĉƪƖƢŨśėƎɆėŝİëİėśėŝƢɆĉŨŝƢļŝƪļŝİɆƢŨɆĈėɆƎėǙėĉƢėĐɆļŝɆƢŨƋɆŒļŝėɆİƎŨǂƢķșɆ ÕėɆķëǁėɆëɆƖƢƎŨŝİɆƋļƋėŒļŝėɆŨįɆįėëƢƪƎėɆƋƎŨĐƪĉƢƖɆëŝĐɆĈƎëŝĐɆĉëśƋëļİŝƖɆƋŒëŝŝėĐɆįŨƎɆƎėŒėëƖėɆļŝɆǥǣǥǥɆƢķëƢɆįŨĉƪƖɆŨŝɆėǇƋëŝĐļŝİɆŨŝɆƢķėɆĉƪƖƢŨśėƎɆ ėǇƋėƎļėŝĉėɆëŝĐɆƎėǁŨŒƪƢļŨŝļƖļŝİɆƢķėɆǂëǈɆĉŨŝƖƪśėƎƖɆėŝİëİėɆǂļƢķɆŨƪƎɆĈƎëŝĐƖș QŝɆEėƎśëŝǈȚɆƖƋŨƎƢƖɆpE¡ɆǂëƖɆǥǥɼĉĉɆëķėëĐɆŨįɆǥǣǥǣɆǂķļŒƖƢɆİëśļŝİɆǂëƖɆȯǩǤɼĉĉɆĈėķļŝĐɆëƖɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆƢŨŒėƎëŝĉėɆƎėİļśėɆëŝŝƪëŒļƖėƖɆ ëŝĐɆƢķėɆŨŝİŨļŝİɆļśƋëĉƢɆŨįɆŝŨŝȯĉŨśƋŒļëŝƢɆŨƋėƎëƢŨƎƖɆĉŨŝƢļŝƪėƖɆƢŨɆĉƎėëƢėɆëŝɆƪŝėǁėŝɆśëƎŏėƢșɆLŨǂėǁėƎȚɆƢķļƖɆǂëƖɆëķėëĐɆŨįɆėǇƋėĉƢëƢļŨŝƖɆëŝĐȚɆ ëŒƢķŨƪİķɆǂėɆƖƢļŒŒɆëǂëļƢɆëɆĐėĉļƖļŨŝɆŨŝɆĐėƋŨƖļƢɆŒļśļƢƖɆŨŝɆƖƋŨƎƢƖɆëŝĐɆƢķėɆļƖƖƪëŝĉėɆŨįɆİëśļŝİɆŒļĉėŝĉėƖȚɆǂėɆĉŨŝƢļŝƪėɆƢŨɆĈėɆėǇĉļƢėĐɆĈǈɆƢķėɆŒŨŝİȯ ƢėƎśɆƋƎŨƖƋėĉƢƖɆįŨƎɆƢķėɆEėƎśëŝɆśëƎŏėƢșɆQŝɆ©ėƋƢėśĈėƎȚɆǂėɆëŝŝŨƪŝĉėĐɆëɆƖƋŨŝƖŨƎƖķļƋɆëİƎėėśėŝƢɆǂļƢķɆ½,DɆįŨƎɆƢķėɆ,ƪƎŨƋëɆdėëİƪėɆëŝĐɆ ,ƪƎŨƋëɆŨŝįėƎėŝĉėɆdėëİƪėɆƢŨɆįƪƎƢķėƎɆĐƎļǁėɆĈǂļŝȼƖɆėǇƋŨƖƪƎėɆļŝɆEėƎśëŝǈɆëƖɆǂėŒŒɆëƖɆƢķėɆƎėƖƢɆŨįɆ,ƪƎŨƋėșɆ QŝɆƢķėɆpėƢķėƎŒëŝĐƖȚɆǂėɆƖëǂɆƎėİƪŒëƢŨƎǈɆĉķëŝİėƖɆĉŨśėɆļŝƢŨɆėįįėĉƢɆļŝɆ{ĉƢŨĈėƎɆǥǣǥǤɆëŝĐɆëƖɆëɆƎėƖƪŒƢȚɆ,ŝƢëļŝɆĉėëƖėĐɆëŒŒɆŨƋėƎëƢļŨŝƖɆļŝɆƢķėɆ pėƢķėƎŒëŝĐƖɆįƎŨśɆǤɆ{ĉƢŨĈėƎɆǥǣǥǤșɆÕėɆķëǁėɆƖļŝĉėɆëƋƋŒļėĐɆįŨƎɆëɆŝėǂɆŒļĉėŝĉėɆëŝĐɆëǂëļƢɆƢķėɆŝėǇƢɆƖƢėƋƖɆļŝɆƢķėɆŒļĉėŝĉėɆëŒŒŨĉëƢļŨŝɆƋƎŨĉėƖƖɆ ǂķļĉķɆǂėɆėǇƋėĉƢɆƢŨɆĉŨŝĉŒƪĐėɆëƎŨƪŝĐɆƢķėɆśļĐĐŒėɆŨįɆǥǣǥǥșɆ pE¡ɆļŝɆƎëǒļŒɆǂëƖɆɣǤǤǤɼĉĉɆëķėëĐɆŨįɆǥǣǥǣȚɆįƪƎƢķėƎɆĉŨŝǘƎśļŝİɆ©ƋŨƎƢļŝİĈėƢɆëƖɆƢķėɆśëƎŏėƢɆŒėëĐėƎșɆ½ŝĐėƎŒǈļŝİɆĉƪƖƢŨśėƎɆśėƢƎļĉƖɆëŒƖŨɆƎėśëļŝɆ ƖƢƎŨŝİɆǂļƢķɆëĉƢļǁėƖɆƪƋɆɣǤǨǩɼɆļŝɆƢķėɆǈėëƎșɆÕėɆëŝƢļĉļƋëƢėɆƢķëƢɆƢķėɆƎëǒļŒļëŝɆśëƎŏėƢɆǂļŒŒɆƎėİƪŒëƢėɆƖƋŨƎƢƖɆļŝɆǥǣǥǥɆȩëŝĐɆİëśļŝİɆļŝɆǥǣǥǦȪɆëŝĐɆ ƖėėɆƢķļƖɆëƖɆëŝɆėǇĉļƢļŝİɆŨƋƋŨƎƢƪŝļƢǈɆƢŨɆįƪƎƢķėƎɆėƖƢëĈŒļƖķɆƢķėɆ©ƋŨƎƢļŝİĈėƢɆĈƎëŝĐɆëŝĐɆİƎŨǂɆśëƎŏėƢɆƖķëƎėșɆ ,ŝŒëĈƖȚɆǂķļĉķɆǂëƖɆëĉƍƪļƎėĐɆëƢɆƢķėɆėŝĐɆŨįɆǤȚɆķëƖɆƋėƎįŨƎśėĐɆėǇĉėƋƢļŨŝëŒŒǈɆǂėŒŒɆĐƪƎļŝİɆǥǣǥǤɆǂļƢķɆpE¡ɆëŝĐɆ,Q¶$ɆëķėëĐɆŨįɆŨƪƎɆļŝļƢļëŒɆ ėǇƋėĉƢëƢļŨŝƖșɆ{ŝɆëɆƋƎŨįŨƎśëɆĈëƖļƖȚɆpE¡ɆļƖɆƪƋɆɣǧǬɼɆǈėëƎɆŨŝɆǈėëƎɆëŝĐɆŨƪƎɆśëƎŏėƢɆƖķëƎėɆļŝɆƢķėɆëŒƢļĉƖɆķëƖɆļŝĉƎėëƖėĐɆƢŨɆǦǣɼȚɆƪƋɆɣǦșǣƋƋɆ ŨŝɆǥǣǥǣșɆDŨŒŒŨǂļŝİɆļƢƖɆļŝƢėİƎëƢļŨŝɆļŝƢŨɆƢķėɆ,ŝƢëļŝɆįëśļŒǈȚɆ,ŝŒëĈƖɆļƖɆŝŨǂɆŨįįėƎļŝİɆ,ŝƢëļŝȼƖɆĉŨƎėɆƋƎŨĐƪĉƢƖɆëŝĐɆŒėǁėƎëİļŝİɆļƢƖɆƖǈƖƢėśƖɆëŝĐɆ śëƎŏėƢļŝİɆĉëƋëĈļŒļƢļėƖɆļŝɆŨƎĐėƎɆƢŨɆĐƎļǁėɆįƪƎƢķėƎɆİƎŨǂƢķșɆ{ƋƢļĈėƢɆķëƖɆŌŨļŝėĐɆƢķėɆëƎƢǈƋŨŏėƎɆŝėƢǂŨƎŏȚɆĐŨƪĈŒļŝİɆƋŨŏėƎɆëĉƢļǁėɆƪƖėƎƖɆļŝɆƢķėɆǘƎƖƢɆ śŨŝƢķȚɆëƖɆǂėŒŒɆëƖɆŒëƪŝĉķļŝİɆƎëİśëƢļĉɆŒëǈɆŒļǁėɆİëśėƖșɆÕėɆĉŨŝƢļŝƪėɆƢŨɆǂŨƎŏɆŨŝɆƢķėɆļŝƢėİƎëƢļŨŝɆŨįɆƢķėɆĈǂļŝɆƖƋŨƎƢƖɆįėėĐɆļŝƢŨɆƢķėɆ,ŝŒëĈƖɆ ĈƪƖļŝėƖƖɆǂķļĉķɆǂļŒŒɆėŝëĈŒėɆƪƖɆƢŨɆŨįįėƎɆśŨƎėɆŒļǁėɆĈėƢƢļŝİɆėǁėŝƢƖɆƢŨɆŨƪƎɆĉƪƖƢŨśėƎƖɆļŝɆǥǣǥǥșɆ QŝɆEėŨƎİļëȚɆpE¡ɆǂëƖɆɣǥǩɼĉĉɆëķėëĐɆǈėëƎɆŨŝɆǈėëƎɆǂļƢķɆƎǈƖƢëŒĈėƢɆśëļŝƢëļŝļŝİɆļƢƖɆƋŨƖļƢļŨŝɆëƖɆƢķėɆŝƪśĈėƎɆŨŝėɆŨƋėƎëƢŨƎɆǂļƢķɆǦǥɼɆśëƎŏėƢɆ ƖķëƎėɆļŝɆǥǣǥǤșɆEļǁėŝɆƢķėɆƋŨƖļƢļŨŝɆŨįɆƢķėɆƎǈƖƢëŒĈėƢɆĈƎëŝĐɆļŝɆƢķėɆśëƎŏėƢȚɆǂėɆĈėŒļėǁėɆǂėɆëƎėɆǂėŒŒɆƋŨƖļƢļŨŝėĐɆƢŨɆëĈƖŨƎĈɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆŝėǂɆ ƎėİƪŒëƢļŨŝƖɆëŝĐɆƢëǇɆƎėƖƢƎļĉƢļŨŝƖɆëŝŝŨƪŝĉėĐɆļŝɆpŨǁėśĈėƎșɆ QŝɆǥǣǥǤȚɆǂėɆķëǁėɆĉŨŝƖŨŒļĐëƢėĐɆŨƪƎɆëƎƢǈɆĈƎëŝĐėĐɆĈƪƖļŝėƖƖėƖɆļŝƢŨɆ{ŝėɆëƎƢǈȚɆǂļƢķɆëɆƎėŝėǂėĐɆįŨĉƪƖɆŨŝɆƎėĉƎėëƢļŨŝëŒɆƋŒëǈėƎƖșɆ$ƪƎļŝİɆƢķėɆ ǈėëƎȚɆǂėɆëŒƖŨɆŒëƪŝĉķėĐɆëƎƢǈɆ¡ėƖƋŨŝƖļĈŒǈȚɆëɆŝėǂɆļŝļƢļëƢļǁėɆǂķļĉķɆƪƖėƖɆƢķėɆƋëƎƢŝėƎƖķļƋɆĈėƢǂėėŝɆŨƪƎɆƢǂŨɆĈƎëŝĐƖȚɆëƎƢǈɆëƖļŝŨɆëŝĐɆ ƋëƎƢǈƋŨŏėƎɆëŝĐɆnĉdëƎėŝɆ¡ëĉļŝİȚɆƢŨɆƋƎŨśŨƢėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİȚɆƢŨɆėŝƖƪƎėɆŨƪƎɆƋŒëǈėƎƖɆƎėƖƋėĉƢɆƢķėļƎɆŒļśļƢƖɆëŝĐɆėŝŌŨǈɆëɆİƎėëƢɆ ėŝƢėƎƢëļŝśėŝƢɆėǇƋėƎļėŝĉėșɆQŝɆƢķėɆǈėëƎȚɆ{ŝėɆëƎƢǈɆpE¡ɆǂëƖɆļŝɆŒļŝėɆǂļƢķɆǥǣǥǣȚɆǂķļĉķɆƎėƋƎėƖėŝƢƖɆǥǣɼɆİƎŨǂƢķɆŨŝɆëɆƢǂŨȯǈėëƎɆE¡ɆĈëƖļƖș ėƢșƋƢȚɆǂķļĉķɆǂëƖɆëĉƍƪļƎėĐɆëƢɆƢķėɆėŝĐɆŨįɆǤȚɆǂëƖɆƖƪĉĉėƖƖįƪŒŒǈɆƎėĈƎëŝĐėĐɆĈǂļŝɆëŝĐɆśļİƎëƢėĐɆŨŝƢŨɆƢķėɆ,ŝƢëļŝɆƋŒëƢįŨƎśɆĐƪƎļŝİɆƢķėɆƢķļƎĐɆ ƍƪëƎƢėƎșɆ©ļŝĉėɆƢķėɆëĉƍƪļƖļƢļŨŝɆƢķėɆĈƪƖļŝėƖƖɆķëƖɆëŒƖŨɆĈėĉŨśėɆƢķėɆƖƋŨŝƖŨƎɆŨįɆdļİëɆŨƎƢƪİëŒɆǂķļĉķȚɆǂķėŝɆĉŨśĈļŝėĐɆǂļƢķɆŨƪƎɆƖƋŨŝƖŨƎƖķļƋɆ ŨįɆ½,DɆëŝĐɆƢķėɆƋëƎƢŝėƎƖķļƋɆǂļƢķɆƢķėɆEėƎśëŝɆDȚɆįƪƎƢķėƎɆėǇƢėŝĐƖɆĈǂļŝȼƖɆƋƎėƖėŝĉėɆļŝɆįŨŨƢĈëŒŒɆëĉƎŨƖƖɆ,ƪƎŨƋėșɆÕėɆëƎėɆëŒƎėëĐǈɆƖėėļŝİɆƢķėɆ ĈėŝėǘƢƖɆŨįɆļśƋƎŨǁėĐɆƋƎŨĐƪĉƢɆëŝĐɆśëƎŏėƢļŝİɆĉëƋëĈļŒļƢļėƖɆįŨŒŒŨǂļŝİɆśļİƎëƢļŨŝɆƢŨɆƢķėɆ,ŝƢëļŝɆƋŒëƢįŨƎśșɆ {ŝŒļŝėɆĉŨŝƢƎļĈƪƢļŨŝɆśëƎİļŝɆŨįɆǧǥșǥɼɆǂëƖɆɣǣșǧƋƋɆķļİķėƎɆƢķëŝɆŒëƖƢɆǈėëƎȚɆǂļƢķɆƢķėɆļśƋëĉƢɆŨįɆëĐǁėƎƖėɆİėŨİƎëƋķļĉëŒɆśļǇɆëŝĐɆƢķėɆŝėǂɆEėƎśëŝɆ İëśļŝİɆƢëǇɆśŨƎėɆƢķëŝɆŨįįƖėƢɆĈǈɆƖëǁļŝİƖɆļŝɆśëƎŏėƢļŝİɆƎëƢėɆǂķļĉķɆǂëƖɆƋëƎƢļĉƪŒëƎŒǈɆŒŨǂɆļŝɆǥǣǥǤșɆ¶ķėɆśëƎŏėƢļŝİɆƎëƢėɆļƖɆėǇƋėĉƢėĐɆƢŨɆƎėƢƪƎŝɆƢŨɆ ëɆśŨƎėɆŝŨƎśëŒļƖėĐɆǥǤɼɆļŝɆǥǣǥǥɆǂļƢķɆëɆĉŨŝƢƎļĈƪƢļŨŝɆśëƎİļŝɆŨįɆǧǣɼȯǧǤɼșɆ {ƋėƎëƢļŝİɆĉŨƖƢƖɆȩĈėįŨƎėɆƎėŝƢȪɆǂėƎėɆǤǨɼɆķļİķėƎɆƢķëŝɆŒëƖƢɆǈėëƎșɆĉƍƪļƖļƢļŨŝƖɆëĉĉŨƪŝƢėĐɆįŨƎɆɣǪƋƋɆŨįɆƢķėɆļŝĉƎėëƖėȚɆëŝĐɆļŝǙëƢļŨŝɆëŝĐɆŨŝİŨļŝİɆ ļŝǁėƖƢśėŝƢɆļŝɆŨƪƎɆƋėŨƋŒėȚɆƋƎŨĐƪĉƢɆëŝĐɆƢėĉķŝŨŒŨİǈɆëĉĉŨƪŝƢėĐɆįŨƎɆķļİķɆƖļŝİŒėɆĐļİļƢɆĉŨƖƢɆļŝĉƎėëƖėƖɆǈėëƎɆŨŝɆǈėëƎșɆ ¡ėŝƢɆëŝĐɆëƖƖŨĉļëƢėĐɆĉŨƖƢƖɆǂėƎėɆɞǥśɆļŝɆƢķėɆǈėëƎȚɆĉŨśƋëƎėĐɆǂļƢķɆɞǤșǧśɆļŝɆƢķėɆƋƎļŨƎɆǈėëƎȚɆŒėëǁļŝİɆƪŝĐėƎŒǈļŝİɆ,Q¶$ȅɆŨįɆɞǫǬǬșǣśȚɆ ɣǤǥɼɇëķėëĐș ©ķëƎėɆĈëƖėĐɆƋëǈśėŝƢƖɆǂėƎėɆɞǤșǣśɆķļİķėƎɆƢķëŝɆŒëƖƢɆǈėëƎɆëŝĐɆƪŝĐėƎŒǈļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝɆŨįɆɞǤǤǩșǪśɆǂëƖɆǦɼɆŒŨǂėƎșɆ ©ķëƎėɆŨįɆÔɆŒŨƖƖėƖɆŨįɆɞǤșǣśɆļƖɆɞǤșǤśɆëĐǁėƎƖėɆƢŨɆƋƎļŨƎɆǈėëƎȚɆŒėëǁļŝİɆƪŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢȆɆɣǤǧɼɆķļİķėƎɆëƢɆɞǪǪǩșǣśșɆ Business Review ĉŨŝƢļŝƪėĐ Entain plc | Annual Report 2021 68 Strategic report Retail ¶ķėɆ¡ėƢëļŒɆĈƪƖļŝėƖƖɆļƖɆśëĐėɆƪƋɆŨįɆŨƪƎɆ¡ėƢëļŒɆėƖƢëƢėƖɆļŝɆƢķėɆ½bȚɆQƢëŒǈȚɆėŒİļƪśɆëŝĐɆ¡ėƋƪĈŒļĉɆŨįɆQƎėŒëŝĐșɆ Reported results 1,2 Year ended 31 December 2021 £m ǥǣǥǣɆ ɞś ķëŝİėɆ %  3 % Sports wagers 6 2,330.0 ǥȚǨǫǥșǣ ȩǤǣɼȪ ȩǬɼȪ Sports margin 6 18.1% ǤǬșǦɼ ȩǤșǥƋƋȪ ȩǤșǦƋƋȪ ©ƋŨƎƢƖɆpE¡Ȧ¡ėǁėŝƪė 426.1 ǨǦǤșǧ ȩǥǣɼȪ ȩǥǣɼȪ nëĉķļŝėƖɆpE¡Ȧ¡ėǁėŝƪė 365.0 ǦǥǨșǪ Ǥǥɼ Ǥǥɼ NGR/Revenue 791.1 ǫǨǪșǤ ȩǫɼȪ ȩǪɼȪ EƎŨƖƖɆƋƎŨǘƢ 535.8 ǨǪǪșǨ ȩǪɼȪ Contribution 529.0 ǨǪǤșǪ ȩǪɼȪ ŨŝƢƎļĈƪƢļŨŝɆśëƎİļŝ 66.9% ǩǩșǪɼ ǣșǥƋƋ Operating costs (447.5) ȩǧǨǩșǤȪ ǥɼ Underlying EBITDAR 4 81.5 ǤǤǨșǩ ȩǥǬɼȪ Rent and associated costs (14.6) ȩǤǪșǦȪ Ǥǩɼ Underlying EBITDA 4 66.9 ǬǫșǦ ȩǦǥɼȪ ©ķëƎėɆĈëƖėĐɆƋëǈśėŝƢƖ (1.9) ȩǤșǨȪ ȩǥǪɼȪ ½ŝĐėƎŒǈļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (102.4) ȩǤǤǨșǫȪ Ǥǥɼ ©ķëƎėɆŨįɆÔɆļŝĉŨśė – – – Underlying operating loss 5 (37.4) ȩǤǬșǣȪ ȩǬǪɼȪ Reported Results 1,2 : ¡ėƢëļŒɆpE¡ɆŨįɆɞǪǬǤșǤśɆǂëƖɆǫɼɆĈėķļŝĐɆŒëƖƢɆǈėëƎɆȩȯǦɼĉĉɆŨŝɆëɆŒļŏėȯįŨƎȯŒļŏėɆĈëƖļƖȪɆǂļƢķɆŝëƢļŨŝëŒɆŒŨĉŏĐŨǂŝƖɆëŝĐɆŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆ ĉŨŝƢļŝƪļŝİɆƢŨɆëįįėĉƢɆƢķėɆĈƪƖļŝėƖƖɆƢķƎŨƪİķɆśƪĉķɆŨįɆǥǣǥǤșɆ¶ķėɆǘƎƖƢɆķëŒįɆǂëƖɆƖļİŝļǘĉëŝƢŒǈɆļśƋëĉƢėĐɆĈǈɆŒŨĉŏĐŨǂŝɆƎėƖƢƎļĉƢļŨŝƖɆǂļƢķɆƢķėɆėŝƢļƎėɆ ėƖƢëƢėɆĉŒŨƖėĐɆļŝɆǤșɆ¶ķėɆ½bɆƎėŨƋėŝėĐɆƪŝĐėƎɆƎėƖƢƎļĉƢļŨŝƖɆļŝɆƋƎļŒɆǂļƢķɆ,ƪƎŨƋėɆŨƋėŝļŝİɆƋƎŨİƎėƖƖļǁėŒǈɆƢķƎŨƪİķŨƪƢɆǥȚɆƎėƖƪŒƢļŝİɆļŝɆpE¡Ɇ ǂķļĉķɆǂëƖɆȯǧǩɼĉĉɆĈėķļŝĐɆǈėëƎɆŨŝɆǈėëƎɆļŝɆLǤșɆQŝɆƢķėɆƖėĉŨŝĐɆķëŒįȚɆƎėƖƢƎļĉƢļŨŝƖɆĉŨŝƢļŝƪėĐɆƢŨɆėëƖėɆëŝĐȚɆǂļƢķɆƢķėɆĈėŝėǘƢɆŨįɆŒëƋƋļŝİɆŒŨĉŏĐŨǂŝƖɆ ļŝɆŒëƢėɆǧɆļŝɆǥǣǥǣȚɆpE¡ɆǂëƖɆǥǣɼĉĉɆëķėëĐɆŨįɆLǥɆǥǣǥǣșɆÕķļŒƖƢɆǈėëƎɆŨŝɆǈėëƎɆĉŨśƋëƎļƖŨŝƖɆëƎėɆĐļįǘĉƪŒƢɆİļǁėŝɆƢķėɆĐļƖƢŨƎƢļŨŝƖɆĉëƪƖėĐɆĈǈɆ ŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖȚɆėŝĉŨƪƎëİļŝİŒǈɆǂėɆëƎėɆėǇļƢļŝİɆǥǣǥǤɆǂļƢķɆŒļŏėɆįŨƎɆŒļŏėɆpE¡ɆëƢɆŨǁėƎɆǬǣɼɆŨįɆƋƎėɆŨǁļĐȯǤǬɆŒėǁėŒƖȚɆëŝĐɆǂļƢķļŝɆǨɼȇɆļŝɆŨƪƎɆ ŒëƎİėƖƢɆėƖƢëƢėƖɆļŝɆƢķėɆ½bɆëŝĐɆQƢëŒǈȚɆǂķļŒėɆƪŝĐėƎŒǈļŝİɆ,Q¶$ ǧ ɆļƖɆśëƎİļŝëŒŒǈɆëķėëĐɆŨįɆǥǣǤǬɆļŝɆLǥșɆ½ŝĐėƎŒǈļŝİɆ,Q¶$¡ȅɆŨįɆɞǫǤșǨśɆǂëƖɆ ɞǦǧșǤśɆĈėķļŝĐɆǥǣǥǣɆëŝĐɆƪŝĐėƎŒǈļŝİɆ,Q¶$ȅɆŨįɆɞǩǩșǬśɆǂëƖɆɞǦǤșǧśɆĈėķļŝĐɆëƖɆƖëǁļŝİƖɆļŝɆŨƋėƎëƢļŝİɆĉŨƖƢƖɆǂėƎėɆśŨƎėɆƢķëŝɆŨįįƖėƢɆĈǈɆ ƢķėɆƎėĐƪĉƢļŨŝɆļŝɆpE¡ɆƎėƖƪŒƢļŝİɆįƎŨśɆŨǁļĐȯǤǬɆėŝįŨƎĉėĐɆƖķŨƋɆĉŒŨƖƪƎėƖșɆ¶ķėɆƪŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆŒŨƖƖȆɆǂëƖɆɞǦǪșǧśɆëŝĐȚɆëįƢėƎɆļŝĉŒƪĐļŝİɆ ƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļŝĉŨśėɆŨįɆɞǤșǧśȚɆŨƋėƎëƢļŝİɆŒŨƖƖɆǂëƖɆɞǦǩșǣśȚɆɞǥǧǦșǦśɆĈėķļŝĐɆŒëƖƢɆǈėëƎȚɆëɆǈėëƎɆļŝɆǂķļĉķɆƢķėɆ¡ėƢëļŒɆƖėİśėŝƢɆƎėĉėļǁėĐɆ ëɆɞǥǥǦșǣśɆ½bɆÔ¶ɆƎėĉėļƋƢș QŝɆƢķėɆ½bȚɆpE¡ɆǂëƖɆȯǦɼɆĈėķļŝĐɆǥǣǥǣɆǂļƢķɆƖƋŨƎƢƖɆȯǤǪɼɆĈėķļŝĐɆǥǣǥǣɆĈƪƢɆśëĉķļŝėƖɆɣǤǥɼɆëķėëĐșɆ©ļŝĉėɆƎėŨƋėŝļŝİȚɆǂėɆķëǁėɆƖėėŝɆŨƪƎɆ śëĉķļŝėƖɆĈƪƖļŝėƖƖɆƎėƢƪƎŝɆśŨƎėɆƍƪļĉŏŒǈɆƢķëŝɆŨƪƎɆƖƋŨƎƢƖɆĈƪƖļŝėƖƖɆëƖɆƢķėɆļŝȯƋėƎƖŨŝɆİëśļŝİɆėǇƋėƎļėŝĉėɆļƖɆĐļįǘĉƪŒƢɆƢŨɆƎėƋŒļĉëƢėɆŨŝŒļŝėșɆ ÕķļŒėɆƖƋŨƎƢƖɆǁŨŒƪśėƖɆĉŨŝƢļŝƪėɆƢŨɆļśƋƎŨǁėɆįƪƎƢķėƎɆļŝƢŨɆǥǣǥǥȚɆǂėɆëŝƢļĉļƋëƢėɆëɆƎėĈëŒëŝĉļŝİɆŨįɆƢķėɆ¡ėƢëļŒɆļŝĉŨśėɆƋŨƖƢɆŨǁļĐȯǤǬɆǂļƢķɆ śëĉķļŝėƖɆśëŏļŝİɆƪƋɆëɆİƎėëƢėƎɆƋƎŨƋŨƎƢļŨŝɆŨįɆpE¡ɆƢķëŝɆǂëƖɆƢķėɆĉëƖėɆƋƎėɆŨǁļĐȯǤǬșɆ ÕļƢķɆƢķėɆĉƪƖƢŨśėƎɆëƢɆƢķėɆĉėŝƢƎėɆŨįɆŨƪƎɆŨƎİëŝļƖëƢļŨŝȚɆǂėɆƎėĉŨİŝļƖėɆƢķėɆŝėėĐɆįŨƎɆĉŨŝƢļŝƪėĐɆėǁŨŒƪƢļŨŝɆŨįɆŨƪƎɆƎėƢëļŒɆŨįįėƎļŝİșɆÕļƢķɆƢķļƖɆļŝɆ śļŝĐȚɆǂėɆëƎėɆƋƎŨİƎėƖƖļŝİɆǂļƢķɆŨƪƎɆĐļİļƢëŒļƖëƢļŨŝɆƋƎŨŌėĉƢƖɆëƢɆƋëĉėșɆÕėɆĉŨŝƢļŝƪėɆƢŨɆįŨĉƪƖɆŨŝɆļŝɆķŨƪƖėɆƢėĉķŝŨŒŨİǈɆëŝĐɆļŝŝŨǁëƢļŨŝɆëŝĐȚɆëƢɆƢķėɆ ƖƢëƎƢɆŨįɆǥǣǥǥȚɆǂėɆƖƪĉĉėƖƖįƪŒŒǈɆĉŨśƋŒėƢėĐɆƢķėɆƎŨŒŒŨƪƢɆŨįɆŨƪƎɆƋƎŨƋƎļėƢëƎǈɆ,Ũ©ɆƖǈƖƢėśȚɆ{śŝļëɆļŝɆEƎėëƢɆƎļƢëļŝșɆ¶ķļƖɆƖǈƖƢėśɆĈƎļŝİƖɆëɆķŨƖƢɆ ŨįɆĉƪƖƢŨśėƎɆëŝĐɆĉŨŒŒėëİƪėɆĈėŝėǘƢƖɆƋŒƪƖɆśëŝǈɆƖėƎǁļĉėɆĐėŒļǁėƎǈɆļśƋƎŨǁėśėŝƢƖșɆ{ƪƎɆėƢƖƢëƢļŨŝƖɆŝŨǂɆƎėƋƎėƖėŝƢɆëɆƢķļƎĐɆŨįɆŨƪƎɆƖƋŨƎƢƖĈŨŨŏȚɆ İƎŨǂļŝİɆǦǦɼɆļŝɆƢķėɆŒëƖƢɆƍƪëƎƢėƎɆŨŝɆëɆƢǂŨȯǈėëƎɆdDdɆĈëƖļƖșɆ¶ķėǈɆƋƎŨǁļĐėɆŨƪƎɆĉƪƖƢŨśėƎƖɆǂļƢķɆëŝɆļśƋƎŨǁėĐɆĐļİļƢëŒļƖėĐɆļŝȯƖķŨƋɆėǇƋėƎļėŝĉėɆ ŨįįėƎļŝİɆƖļİŝļǘĉëŝƢŒǈɆİƎėëƢėƎɆĐėƋƢķɆŨįɆƋƎŨĐƪĉƢƖɆëŝĐɆƋƎŨśŨƢļŨŝƖɆŝŨƢɆëǁëļŒëĈŒėɆŨǁėƎɆƢķėɆĉŨƪŝƢėƎșɆQŝɆëĐĐļƢļŨŝȚɆŨƪƎɆŨǂŝɆƋƎŨƋƎļėƢëƎǈɆėƢƖƢëƢļŨŝƖɆ ëƎėɆŝŨǂɆŒļǁėɆļŝɆŨǁėƎɆǥǣǣɆƖķŨƋƖɆǂļƢķɆļŝļƢļëŒɆƎėƖƪŒƢƖɆėŝĉŨƪƎëİļŝİșɆ$ļİļƢëŒɆLƪĈƖɆëƎėɆŝŨǂɆŒļǁėɆļŝɆǦǣɆŒŨĉëƢļŨŝƖɆëĉƎŨƖƖɆƢķėɆ½bȚɆƖķŨǂĉëƖļŝİɆ ŝėǂɆƢėĉķŝŨŒŨİļėƖɆëŝĐɆëƋƋėëŒļŝİɆƢŨɆëɆĈƎŨëĐėƎɆĉƪƖƢŨśėƎɆĈëƖėșɆQŝļƢļëŒɆƢƎļëŒƖɆŨįɆƢķėɆ$ļİļƢëŒɆLƪĈƖɆëƎėɆĐėŒļǁėƎļŝİɆƖƢƎŨŝİɆƎėƢƪƎŝƖɆǂļƢķɆƋŨƖļƢļǁėɆ įėėĐĈëĉŏɆįƎŨśɆŨƪƎɆĉƪƖƢŨśėƎƖșɆ ƢɆƢķėɆķėëƎƢɆŨįɆƢķėɆĉƪƖƢŨśėƎɆėǇƋėƎļėŝĉėɆļƖɆƢķėɆļŝȯƋėƎƖŨŝɆļŝƢėƎëĉƢļŨŝɆǂļƢķɆŨƪƎɆƖķŨƋɆĉŨŒŒėëİƪėƖșɆEļǁėŝɆƢķėɆļśƋŨƎƢëŝƢɆƎŨŒėɆŨƪƎɆƖķŨƋɆƖƢëįįɆƋŒëǈȚɆ ǂėɆëƎėɆĐėŒļİķƢėĐɆƢķëƢɆǂėɆǂļŒŒɆŝŨǂɆĈėɆƋëǈļŝİɆëɆśļŝļśƪśɆŨįɆɞǤǣɆƋėƎɆķŨƪƎɆƢŨɆëŒŒɆĉŨŒŒėëİƪėƖɆįƎŨśɆƋƎļŒɆǥǣǥǥșɆ QŝɆQƢëŒǈȚɆėŒİļƪśɆëŝĐɆQƎėŒëŝĐȚɆŨƪƎɆ¡ėƢëļŒɆƖķŨƋƖɆǂėƎėɆĉŒŨƖėĐɆįŨƎɆëɆśëŌŨƎļƢǈɆŨįɆƢķėɆǘƎƖƢɆķëŒįȚɆƎėȯŨƋėŝļŝİɆƋƎŨİƎėƖƖļǁėŒǈɆƢķƎŨƪİķŨƪƢɆnëǈɆëŝĐɆļŝƢŨɆ ƪŝėȚɆëŒĈėļƢɆƪŝĐėƎɆƎėƖƢƎļĉƢļŨŝƖɆǂķļĉķɆĉŨŝƢļŝƪėĐɆļŝƢŨɆƢķėɆƖėĉŨŝĐɆķëŒįșɆ$ėƖƋļƢėɆƢķėɆEƎėėŝɆëƖƖɆļŝɆQƢëŒǈɆƋƎėǁėŝƢļŝİɆƪŝǁëĉĉļŝëƢėĐɆĉƪƖƢŨśėƎƖɆ įƎŨśɆėŝƢėƎļŝİɆŨƪƎɆƖķŨƋƖȚɆŨƪƎɆ,ƪƎŨĈėƢɆėƖƢëƢėɆĐėśŨŝƖƢƎëƢėĐɆļƢƖɆƎėƖļŒļėŝĉėɆǂļƢķɆpE¡ɆǂļƢķļŝɆǨɼɆŨįɆƋƎėȯŨǁļĐɆŒėǁėŒƖɆĈǈɆƢķėɆėŝĐɆŨįɆƢķėɆǈėëƎșɆ ¶ƎëĐļŝİɆļŝɆėŒİļƪśɆƎėĉŨǁėƎėĐɆśŨƎėɆƖŒŨǂŒǈȚɆƋëƎƢļĉƪŒëƎŒǈɆļŝɆƢķėɆŒëƖƢɆƍƪëƎƢėƎɆëƖɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆŨǁļĐȯǤǬɆǁëƎļëŝƢƖɆėƖĉëŒëƢėĐȚɆƎėƖƪŒƢļŝİɆļŝɆ ėŒİļƪśɆƖķŨƋƖɆĉŒŨƖļŝİɆëİëļŝɆŨŝɆƢķėɆǥǩɆ$ėĉėśĈėƎȚɆŨŝŒǈɆƎėŨƋėŝļŝİɆŨŝɆǥǪɆëŝƪëƎǈɆǥǣǥǥșɆ¡ėƖƪŒƢļŝİɆpE¡ɆëĉƎŨƖƖɆ,ƪƎŨƋėɆǂëƖɆȯǥǪɼɆȩȯǥǩɼĉĉȪɆ ĈėķļŝĐɆļŝɆQƢëŒǈȚɆȯǥǨɼɆȩȯǥǧɼĉĉȪɆļŝɆėŒİļƪśɆëŝĐɆȯǥǦɼɆȩȯǥǥɼĉĉȪɆļŝɆ¡ėƋƪĈŒļĉɆŨįɆQƎėŒëŝĐșɆ {ƋėƎëƢļŝİɆĉŨƖƢƖɆȩĈėįŨƎėɆƎėŝƢȪɆǂėƎėɆǥɼɆŒŨǂėƎɆƢķëŝɆǥǣǥǣȚɆŒëƎİėŒǈɆĐƪėɆƢŨɆĉŨƖƢɆśļƢļİëƢļŨŝɆëĉƢļŨŝƖɆļŝɆƎėƖƋŨŝƖėɆƢŨɆŒŨĉŏĐŨǂŝƖɆëŝĐɆƎŨĈƪƖƢɆ ƪŝĐėƎŒǈļŝİɆĉŨƖƢɆĉŨŝƢƎŨŒșɆ$ƪƎļŝİɆLǤȚɆƢķėɆ¡ėƢëļŒɆĈƪƖļŝėƖƖɆĉŒëļśėĐɆįƪƎŒŨƪİķɆļŝɆŒļŝėɆǂļƢķɆEŨǁėƎŝśėŝƢɆİƪļĐėŒļŝėƖȚɆëŒĈėļƢɆƢķėɆëśŨƪŝƢƖɆƎėĉėļǁėĐɆ ǂėƎėɆĉǥǨɼɆŒŨǂėƎɆƢķëŝɆļŝɆǥǣǥǣșɆ 69 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 New Opportunities Reported results 1,2 Year ended 31 December 2021 £m ǥǣǥǣɆ ɞś ķëŝİėɆ %  3 % Underlying EBITDAR 4 (8.8) – – Rent and associated costs – – – Underlying EBITDA 4 (8.8) – – ©ķëƎėɆĈëƖėĐɆƋëǈśėŝƢƖ – – – ½ŝĐėƎŒǈļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (0.4) – – ©ķëƎėɆŨįɆÔɆȩŒŨƖƖȪȦļŝĉŨśė – – – Underlying operating loss 5 (9.2) – – Reported Results 1,2 : pėǂɆ{ƋƋŨƎƢƪŝļƢļėƖɆĉŨƖƢƖȅɆŨįɆɞǫșǫśɆƋƎļśëƎļŒǈɆƎėǙėĉƢɆɞǤșǥśɆŨįɆŨƋėƎëƢļŝİɆĉŨƖƢƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆ½ŝļŏƎŝɆëŝĐɆɞǪșǣśɆŨįɆļŝŝŨǁëƢļŨŝɆĉŨƖƢƖșɆ ĉƎŨƖƖɆŨƋėƎëƢļŝİɆĉŨƖƢƖɆëŝĐɆĉëƋļƢëŒɆėǇƋėŝĐļƢƪƎėȚɆƢķėɆEƎŨƪƋɆķëƖɆĉŨśśļƢƢėĐɆƢŨɆļŝǁėƖƢļŝİɆɞǤǣǣśɆļŝɆļŝŝŨǁëƢļŨŝɆƖƋėŝĐɆŨǁėƎɆƢķƎėėɆǈėëƎƖɆ ǂļƢķɆƢķėɆŒëƪŝĉķɆŨįɆëŝɆļŝŝŨǁëƢļŨŝɆķƪĈɆëŝŝŨƪŝĉėĐɆļŝɆëŝƪëƎǈɆǥǣǥǥșɆįƢėƎɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝȚɆpėǂɆ{ƋƋŨƎƢƪŝļƢļėƖɆƪŝĐėƎŒǈļŝİɆ ŨƋėƎëƢļŝİɆŒŨƖƖȆɆǂëƖɆɞǬșǥśșɆ©ėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆįŨƎɆƢķėɆǈėëƎɆǂėƎėɆɞŝļŒɆƎėƖƪŒƢļŝİɆļŝɆëŝɆŨƋėƎëƢļŝİɆŒŨƖƖɆŨįɆɞǬșǥśșɆ Business Review ĉŨŝƢļŝƪėĐ ¡ėŝƢɆëŝĐɆëƖƖŨĉļëƢėĐɆĉŨƖƢƖɆŨįɆɞǤǧșǩśɆļŝɆƢķėɆǈėëƎɆǂėƎėɆǤǩɼɆŒŨǂėƎɆƢķëŝɆƢķėɆƋƎļŨƎɆǈėëƎɆįŨŒŒŨǂļŝİɆëɆŝƪśĈėƎɆŨįɆƖķŨƋɆĉŒŨƖƪƎėƖɆļŝɆƢķėɆ½bȚɆ ŒėëǁļŝİɆƪŝĐėƎŒǈļŝİɆ,Q¶$ȅɆŨįɆɞǩǩșǬśȚɆǦǥɼɆŒŨǂėƎɆƢķëŝɆǥǣǥǣș ķëƎİėƖɆįŨƎɆƖķëƎėɆĈëƖėĐɆƋëǈśėŝƢƖɆǂėƎėɆɞǣșǧśɆķļİķėƎɆƢķëŝɆŒëƖƢɆǈėëƎɆëŝĐɆƪŝĐėƎŒǈļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝɆŨįɆɞǤǣǥșǧɆǂëƖɆǤǥɼɆ ŒŨǂėƎɆëƖɆƢķėɆļśƋëĉƢɆŨįɆĐėƋƎėĉļëƢļŨŝɆĉķëƎİėƖɆëƎļƖļŝİɆįƎŨśɆƢķėɆįëļƎɆǁëŒƪėɆėǇėƎĉļƖėɆŨŝɆƢķėɆëĉƍƪļƖļƢļŨŝɆŨįɆdëĐĈƎŨŏėƖɆŨƎëŒɆƖƢëƎƢƖɆƢŨɆƎėĐƪĉėȚɆ ŒėëǁļŝİɆëŝɆƪŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆŒŨƖƖȆɆŨįɆɞǦǪșǧśȚɆɞǤǫșǧśɆĈėķļŝĐɆǥǣǥǣș ƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆƢķėƎėɆǂėƎėɆëɆƢŨƢëŒɆŨįɆǧȚǦǧǩɆƖķŨƋƖȦŨƪƢŒėƢƖɆȩǥǣǥǣțɆǧȚǨǫǬȪțɆ½bɆǥȚǨǫǣɆȩǥǣǥǣțɆǥȚǫǧǨȪȚɆQƢëŒǈɆǬǧǣɆȩǥǣǥǣțɆǬǣǨȪȚɆėŒİļƪśɆ ƖķŨƋƖɆǥǬǤȚɆŨƪƢŒėƢƖɆǧǣǥɆȩǥǣǥǣțɆƖķŨƋƖɆǦǣǧȚɆŨƪƢŒėƢƖɆǧǣǥȪɆëŝĐɆQƎėŒëŝĐɆǤǦǦɆȩǥǣǥǣțɆǤǦǦȪșɆ EļǁėŝɆƢķėɆśŨƎėɆĉėƎƢëļŝɆśėĐļƪśȯƢėƎśɆŨƪƢŒŨŨŏȚɆǂėɆķëǁėɆƢëŏėŝɆƢķėɆĐėĉļƖļŨŝɆƢŨɆƎėƋëǈɆƢķėɆɞǧǧśɆƎėĉėļǁėĐɆƪŝĐėƎɆƢķėɆŨƎŨŝëǁļƎƪƖɆŨĈɆ ¡ėƢėŝƢļŨŝɆ©ĉķėśėɆȩȹįƪƎŒŨƪİķɆƖĉķėśėȺȪɆļŝɆDÛǥǤșɆ¶ķėɆƖĉķėśėɆǂëƖɆëɆƖėŝƖļĈŒėɆëŝĐɆķļİķŒǈɆǂėŒĉŨśėɆƋŨŒļĉǈɆļŝƢėƎǁėŝƢļŨŝɆƢķëƢɆķėŒƋėĐɆƪƖȚɆëƖɆŨŝėɆ ŨįɆƢķėɆĉŨƪŝƢƎǈȼƖɆŒëƎİėƖƢɆƎėƢëļŒėƎƖȚɆƢŨɆśëļŝƢëļŝɆƢķėɆŒļǁėŒļķŨŨĐƖɆŨįɆśŨƎėɆƢķëŝɆǤǧȚǣǣǣɆƎėƢëļŒɆĉŨŒŒėëİƪėƖɆŨŝɆįƪŒŒɆƋëǈșɆÕėɆķëǁėɆŏėƋƢɆƢķėɆƖļƢƪëƢļŨŝɆ ƪŝĐėƎɆƎėǁļėǂɆƖļŝĉėɆǂėɆǘƎƖƢɆśëĐėɆƪƖėɆŨįɆƢķėɆƖĉķėśėɆëŝĐɆëƎėɆƋŒėëƖėĐɆƢŨɆĈėɆļŝɆëɆƋŨƖļƢļŨŝɆƢŨɆƎėƋëǈɆƢķėƖėɆśŨŝļėƖș Entain plc | Annual Report 2021 70 Strategic report Other Reported results 1,2 Year ended 31 December 2021 £m ǥǣǥǣɆ ɞś ķëŝİėɆ %  3 % NGR/Revenue 32.8 ǥǪșǫ Ǥǫɼ Ǥǫɼ EƎŨƖƖɆƋƎŨǘƢ 28.5 ǥǥșǧ ǥǪɼ Contribution 27.8 ǥǤșǤ Ǧǥɼ Operating costs (22.1) ȩǥǨșǣȪ Ǥǥɼ Underlying EBITDAR 4 5.7 ȩǦșǬȪ ǥǧǩɼ Rent and associated costs (0.1) ȩǣșǦȪ ǩǪɼ Underlying EBITDA 4 5.6 ȩǧșǥȪ ǥǦǦɼ ©ķëƎėɆĈëƖėĐɆƋëǈśėŝƢƖ (0.1) – ǣɼ ½ŝĐėƎŒǈļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (2.9) ȩǥșǪȪ ɆȩǪɼȪ ©ķëƎėɆŨįɆÔɆļŝĉŨśė 0.4 ǣșǦ 33% ½ŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪ 5 3.0 ȩǩșǩȪ ǤǧǨɼ Reported Results 1,2 : pE¡ɆŨįɆɞǦǥșǫśɆǂëƖɆǤǫɼɆķļİķėƎɆƢķëŝɆǥǣǥǣɆëƖɆǁŨŒƪśėƖɆƖƢëƎƢɆƢŨɆƎėƢƪƎŝɆƢŨɆŨƪƎɆİƎėǈķŨƪŝĐɆƖƢëĐļëșɆ½ŝĐėƎŒǈļŝİɆ,Q¶$¡ȅɆŨįɆɞǨșǪśɆëŝĐɆ ƪŝĐėƎŒǈļŝİɆ,Q¶$ȅɆŨįɆɞǨșǩśɆǂėƎėɆɞǬșǩśɆëŝĐɆɞǬșǫśɆëķėëĐɆƎėƖƋėĉƢļǁėŒǈɆƋƎėĐŨśļŝëŝƢŒǈɆĐƪėɆƢŨɆƢķėɆpE¡ɆļśƋƎŨǁėśėŝƢɆëŝĐɆƎŨĈƪƖƢɆĉŨƖƢɆ ĉŨŝƢƎŨŒșɆ½ŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢȆɆŨįɆɞǦșǣśɆǂëƖɆǤǧǨɼɆëķėëĐɆëŝĐȚɆëįƢėƎɆĉķëƎİļŝİɆɞǤșǪśɆŨįɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖȚɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆ ǂëƖɆɞǤșǦśȚɆɞǪșǬśɆëķėëĐɆŨįɆŒëƖƢɆǈėëƎșɆ Corporate Reported results 1,2 Year ended 31 December 2021 £m ǥǣǥǣɆ ɞś ķëŝİėɆ %  3 % Underlying EBITDAR 4 (80.6) ȩǨǧșǨȪ ȩǧǫɼȪ Rent and associated costs (0.4) – ŝȦś Underlying EBITDA 4 (81.0) ȩǨǧșǨȪ ȩǧǬɼȪ ©ķëƎėɆĈëƖėĐɆƋëǈśėŝƢƖ (5.0) ȩǬșǣȪ ǧǧɼ ½ŝĐėƎŒǈļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (0.4) – ŝȦś ©ķëƎėɆŨįɆÔɆŒŨƖƖ (161.9) ȩǩǣșǩȪ ȩǤǩǪɼȪ Underlying operating loss 5 (248.3) ȩǤǥǧșǤȪ ȩǤǣǣɼȪ Reported Results 1,2 : ŨƎƋŨƎëƢėɆĉŨƖƢƖȅɆŨįɆɞǫǣșǩśɆǂėƎėɆɞǥǩșǤśɆķļİķėƎɆƢķëŝɆŒëƖƢɆǈėëƎɆĐƎļǁėŝɆĈǈɆļŝĉƎėëƖėƖɆļŝɆŨƪƎɆĉŨŝƢƎļĈƪƢļŨŝƖɆƢŨɆ¡ėƖėëƎĉķȚɆ,ĐƪĉëƢļŨŝɆëŝĐɆ ¶ƎėëƢśėŝƢɆļŝĉŒƪĐļŝİɆEëśĈŒėǂëƎėȚɆëĐĐļƢļŨŝëŒɆĉŨŝƢƎļĈƪƢļŨŝƖɆƢŨɆƢķėɆ,ŝƢëļŝɆįŨƪŝĐëƢļŨŝɆëŝĐɆŨƢķėƎɆEƎŨƪƋɆ,©EɆļŝļƢļëƢļǁėƖɆëŝĐɆļŝǁėƖƢśėŝƢɆļŝɆ ŨƪƎɆİŨǁėƎŝëŝĉėɆƋŨŒļĉļėƖɆëŝĐɆƋƎŨĉėĐƪƎėƖșɆįƢėƎɆƖķëƎėɆĈëƖėĐɆƋëǈśėŝƢƖȚɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝɆëŝĐɆƖķëƎėɆŨįɆÔɆŒŨƖƖėƖȚɆŨƎƋŨƎëƢėɆ ƪŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆŒŨƖƖȆɆǂëƖɆɞǥǧǫșǦśȚɆëŝɆļŝĉƎėëƖėɆŨįɆɞǤǥǧșǥśȚɆŒëƎİėŒǈɆëƖɆëɆƎėƖƪŒƢɆŨįɆƢķėɆėǇƋėĉƢėĐɆļŝĉƎėśėŝƢëŒɆŒŨƖƖɆļŝɆƢķėɆ½©ɆÔȚɆ ėƢnEnșɆįƢėƎɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļŝĉŨśėɆŨįɆɞǥǩșǣśȚɆƢķėɆŨƋėƎëƢļŝİɆŒŨƖƖɆŨįɆɞǥǥǥșǦśɆǂëƖɆɞǨșǫśɆĈėķļŝĐɆǥǣǥǣș Notes ǤșɆ ǥǣǥǤɆëŝĐɆǥǣǥǣɆƎėƋŨƎƢėĐɆƎėƖƪŒƢƖɆëƎėɆëƪĐļƢėĐɆëŝĐɆƎėŒëƢėɆƢŨɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖș ǥșɆ ¡ėƋŨƎƢėĐɆƎėƖƪŒƢƖɆëƎėɆƋƎŨǁļĐėĐɆŨŝɆëɆƋŨƖƢɆQD¡©ǤǩɆļśƋŒėśėŝƢëƢļŨŝɆĈëƖļƖș ǦșɆ EƎŨǂƢķɆŨŝɆëɆĉŨŝƖƢëŝƢɆĉƪƎƎėŝĉǈɆĈëƖļƖɆļƖɆĉëŒĉƪŒëƢėĐɆĈǈɆƢƎëŝƖŒëƢļŝİɆĈŨƢķɆĉƪƎƎėŝƢɆëŝĐɆƋƎļŨƎɆǈėëƎɆƋėƎįŨƎśëŝĉėɆëƢɆƢķėɆǥǣǥǤɆėǇĉķëŝİėɆƎëƢėƖș ǧșɆ ,Q¶$¡ɆļƖɆĐėǘŝėĐɆëƖɆėëƎŝļŝİƖɆĈėįŨƎėɆļŝƢėƎėƖƢȚɆƢëǇȚɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝȚɆƎėŝƢɆëŝĐɆëƖƖŨĉļëƢėĐɆĉŨƖƢƖȚɆƖķëƎėɆĈëƖėĐɆƋëǈśėŝƢƖɆëŝĐɆƖķëƎėɆŨįɆÔɆļŝĉŨśėșɆ ,Q¶$ɇļƖɇĐėǘŝėĐɇëƖɆ,Q¶$¡ɆëįƢėƎɆĉķëƎİļŝİɆƎėŝƢɆëŝĐɆëƖƖŨĉļëƢėĐɆĉŨƖƢƖșɆŨƢķɆ,Q¶$¡ɆëŝĐɆ,Q¶$ɆëƎėɆƖƢëƢėĐɆƋƎėɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖș ǨșɆ ©ƢëƢėĐɆƋƎėɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆȩpŨƢėɆǩȪș ǩșɆ ¡ėƢëļŒɆŝƪśĈėƎƖɆëƎėɆƍƪŨƢėĐɆŨŝɆëɆdDdɆĈëƖļƖșɆ$ƪƎļŝİɆǥǣǥǤɆƢķėƎėɆǂëƖɆëŝɆëǁėƎëİėɆŨįɆǧȚǨǧǣɆƖķŨƋƖɆļŝɆƢķėɆėƖƢëƢėȚɆĉŨśƋëƎėĐɆƢŨɆëŝɆëǁėƎëİėɆŨįɆǧȚǪǥǪɆļŝɆƢķėɆƖëśėɆƋėƎļŨĐɆŒëƖƢɆǈėëƎș 71 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎȼƖɆ¡ėǁļėǂ Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ 72 Strategic report $ėƖƋļƢėɆƢķėɆƪŝĉėƎƢëļŝƢǈɆĉëƪƖėĐɆĈǈɆŨǁļĐȯǤǬɆļŝɆ ǥǣǥǤȚɆƢķėɆEƎŨƪƋɆķëƖɆĐėŒļǁėƎėĐɆëŝŨƢķėƎɆƖƢƎŨŝİɆǈėëƎɆ ŨįɆİƎŨǂƢķɆǂļƢķɆ¡ėǁėŝƪėɆǫɼɆëķėëĐɆŨįɆǥǣǥǤɆëŝĐɆ ƪŝĐėƎŒǈļŝİɆ,Q¶$ɆŨįɆɞǫǫǤșǪśȚɆǨɼɆëķėëĐșɆ{ƪƎɆ {ŝŒļŝėɆĈƪƖļŝėƖƖɆĉŨŝƢļŝƪėƖɆƢŨɆİƎŨǂɆĐŨƪĈŒėȯĐļİļƢɆ ǈėëƎȯŨŝȯǈėëƎɆǂļƢķɆpE¡ɆǤǦɼɆëķėëĐɆŨŝɆëɆĉŨŝƖƢëŝƢɆ ĉƪƎƎėŝĉǈɆĈëƖļƖɆëŝĐȚɆĐėƖƋļƢėɆƢķėɆĐļƖƎƪƋƢļŨŝɆĉëƪƖėĐɆ ĈǈɆƢėśƋŨƎëƎǈɆĉŒŨƖƪƎėƖɆŨįɆŨƪƎɆ¡ėƢëļŒɆėƖƢëƢėƖɆĐƪėɆƢŨɆ ŨǁļĐȯǤǬȚɆǂėɆėǇļƢɆǥǣǥǤɆëƢɆŨǁėƎɆǬǣɼɆŨįɆƋƎėɆŨǁļĐȯǤǬɆ ǁŨŒƪśėƖɆļŝɆ¡ėƢëļŒșɆ $ƪƎļŝİɆƢķėɆǈėëƎɆǂėɆķëǁėɆëŒƖŨɆǂėŒĉŨśėĐɆëɆŝƪśĈėƎɆŨįɆŝėǂɆëĉƍƪļƖļƢļŨŝƖɆƢŨɆƢķėɆ,ŝƢëļŝɆEƎŨƪƋɆ ļŝĉŒƪĐļŝİɆ,ŝŒëĈƖȚɆǂķļĉķɆŨƋėƎëƢėƖɆļŝɆƢķėɆëŒƢļĉɆƖƢëƢėƖȚɆėƢșƋƢɆļŝɆŨƎƢƪİëŒɆëŝĐɆ½ŝļŏƎŝɆǂķļĉķɆ ƎėƋƎėƖėŝƢƖɆƢķėɆEƎŨƪƋȼƖɆǘƎƖƢɆǁėŝƢƪƎėɆļŝƢŨɆƢķėɆėƖƋŨƎƢƖɆśëƎŏėƢșɆ $ƪƎļŝİɆƢķėɆǈėëƎȚɆƢķėɆEƎŨƪƋɆëŒƖŨɆƎėǘŝëŝĉėĐɆļƢƖɆ½©ɆĐŨŒŒëƎɆĐėĈƢȚɆėŝƖƪƎļŝİɆƢķëƢɆ ƖƪįǘĉļėŝƢɆįëĉļŒļƢļėƖɆëŝĐɆŒļƍƪļĐļƢǈɆƎėśëļŝƖɆëǁëļŒëĈŒėɆįŨƎɆƢķėɆEƎŨƪƋɆƢŨɆƋƪƎƖƪėɆëŒŒɆŨįɆļƢƖɆ ƖƢƎëƢėİļĉɆŨĈŌėĉƢļǁėƖșɆ ÕėɆėŝƢėƎɆǥǣǥǥɆǂļƢķɆİŨŨĐɆśŨśėŝƢƪśɆëŝĐɆQɆëśɆëƖɇĉŨŝǘĐėŝƢɆëƖɆėǁėƎɆļŝɆ,ŝƢëļŝȼƖɆŒŨŝİȯ ƢėƎśɆƋƎŨƖƋėĉƢƖșɆ $ėƖƋļƢėɆƢķėɆƪŝĉėƎƢëļŝƢǈɆĉëƪƖėĐɆ ĈǈɆŨǁļĐȯǤǬɆļŝɆǥǣǥǤȚɆƢķėɆEƎŨƪƋɆ ķëƖɆĉŨŝƢļŝƪėĐɆƢŨɆƖķŨǂɆļƢƖɆ ƎėƖļŒļėŝĉėɆǂļƢķɆ¡ėǁėŝƪėɆǫɼɆ ëķėëĐɆǈėëƎȯŨŝȯǈėëƎșȺ Rob Wood ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎ Entain plc | ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ 73 {ǁėƎǁļėǂɆ | Strategic report | ɆEŨǁėƎŝëŝĉėɆ | ɆDļŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎȼƖɆ¡ėǁļėǂɆĉŨŝƢļŝƪėĐ Reported results 1,2 Year ended 31 December 2021 £m ǥǣǥǣɆ ɞś ķëŝİėɆ %  3 % NGR 3,886.3 ǦȚǩǥǫșǨ 7% ǫɼ Revenue 3,830.0 ǦȚǨǩǤșǩ ǫɼ Ǭɼ EƎŨƖƖɆƋƎŨǘƢ 2,435.8 ǥȚǦǣǫșǩ ǩɼ Contribution 1,851.5 ǤȚǪǧǣșǥ ǩɼ Underlying EBITDAR 4 898.8 ǫǩǥșǤ ǧɼ Underlying EBITDA 4 881.7 ǫǧǦșǤ Ǩɼ ©ķëƎėȯĈëƖėĐɆƋëǈśėŝƢƖ (12.3) ȩǤǧșǫȪ ǤǪɼ ½ŝĐėƎŒǈļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (222.8) ȩǥǦǫșǩȪ 7% ©ķëƎėɆŨįɆÔɆŒŨƖƖ (162.5) ȩǩǣșǥȪ ȩǤǪǣɼȪ ½ŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢ 5 484.1 ǨǥǬșǨ ȩǬɼȪ pėƢɆǘŝëŝĉėɆĉŨƖƢƖ (75.0) ȩǪǧșǥȪ pėƢɆįŨƎėļİŝɆėǇĉķëŝİėȦǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 118.2 ȩǤǣǧșǪȪ ƎŨǘƢɆĈėįŨƎėɆƢëǇɆƋƎėɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖ 527.3 ǦǨǣșǩ ©ėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖț śŨƎƢļƖëƢļŨŝɆŨįɆëĉƍƪļƎėĐɆļŝƢëŝİļĈŒėƖ (144.2) ȩǦǣǪșǣȪ {ƢķėƎ 10.1 ǤǦǤșǤ ƎŨǘƢɆĈėįŨƎėɆƢëǇ 393.2 ǤǪǧșǪ ¶ëǇ (117.6) ȩǩǣșǬȪ ƎŨǘƢɆëįƢėƎɆƢëǇɆįƎŨśɆĉŨŝƢļŝƪļŝİɆëĉƢļǁļƢļėƖ 275.6 ǤǤǦșǫ $ļƖĉŨŝƢļŝƪėĐɆ{ƋėƎëƢļŨŝƖɆ (14.9) ȩǦǧșǧȪ ƎŨǘƢɆëįƢėƎɆƢëǇ 260.7 ǪǬșǧ NGR and revenue EƎŨƪƋɆƎėƋŨƎƢėĐɆpE¡ɆǂëƖɆǪɼɆëķėëĐɆëŝĐɆ¡ėǁėŝƪėɆǂëƖɆǫɼɆëķėëĐɆ ŨįɆŒëƖƢɆǈėëƎȚɆǂļƢķɆƖƢƎŨŝİɆŨŝŒļŝėɆƋėƎįŨƎśëŝĉėɆśŨƎėɆƢķëŝɆŨįįƖėƢƢļŝİɆ ŨǁļĐȯǤǬɆƎėŒëƢėĐɆƖķŨƋɆĉŒŨƖƪƎėƖșɆDƪƎƢķėƎɆĐėƢëļŒƖɆëƎėɆƋƎŨǁļĐėĐɆļŝɆƢķėɆ ƪƖļŝėƖƖɆ¡ėǁļėǂɆƖėĉƢļŨŝș ½ŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢ 5 EƎŨƪƋɆƎėƋŨƎƢėĐɆƪŝĐėƎŒǈļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢȆɆŨįɆɞǧǫǧșǤśɆǂëƖɆǬɼɆ ĈėķļŝĐɆǥǣǥǣɆȩǥǣǥǣțɆɞǨǥǬșǨśȪȚɆǂļƢķɆƪŝĐėƎŒǈļŝİɆ,Q¶$ ǧ ɆëķėëĐɆ ĈǈɆǨɼɆëƖɆëɆƎėƖƪŒƢɆŨįɆƢķėɆƎėǁėŝƪėɆŨƪƢƋėƎįŨƎśëŝĉėɆŨįįƖėƢɆĈǈɆëŝɆ ėǇƋėĉƢėĐɆļŝĉƎėëƖėɆļŝɆŒŨƖƖėƖɆįƎŨśɆƢķėɆEƎŨƪƋȼƖɆƖķëƎėɆŨįɆƢķėɆėƢnEnɆ ŌŨļŝƢɆǁėŝƢƪƎėșɆėƢnEnɆŒŨƖƖėƖɆļŝɆƢķėɆǈėëƎɆǂėƎėɆɞǤǩǤșǬśȚɆɞǤǣǤșǦśɆ ķļİķėƎɆƢķëŝɆǥǣǥǣɆëƖɆƢķėɆĈƪƖļŝėƖƖɆļŝǁėƖƢƖɆļŝɆŝėǂɆŌƪƎļƖĐļĉƢļŨŝƖɆëƖɆ ƢķėǈɆŨƋėŝșɆŝëŒǈƖļƖɆŨįɆƢķėɆEƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėɆįŨƎɆƢķėɆǈėëƎɆļƖɆ ĐėƢëļŒėĐɆļŝɆƢķėɆƪƖļŝėƖƖɆ¡ėǁļėǂɆƖėĉƢļŨŝș Financing costs DļŝëŝĉėɆĉŨƖƢƖɆŨįɆɞǪǨșǣśɆėǇĉŒƪĐļŝİɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆ ȩǥǣǥǣțɆɞǪǧșǥśȪɆǂėƎėɆɞǣșǫśɆķļİķėƎɆƢķëŝɆǥǣǥǣșɆ¶ķėɆļŝĉƎėśėŝƢëŒɆ ļŝƢėƎėƖƢɆĉŨƖƢƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆƢķėɆļŝĉƎėëƖėĐɆŒėŝĐļŝİɆŨŝɆƢķėɆEƎŨƪƋȼƖɆ ½©ɆĐŨŒŒëƎɆŒŨëŝȚɆǂķļĉķɆƎëļƖėĐɆëŝɆëĐĐļƢļŨŝëŒɆɏǦǨǤśȚɆǂëƖɆƋëƎƢļëŒŒǈɆ ŨįįƖėƢɆĈǈɆëɆįƪŒŒɆǈėëƎɆŨįɆĈėŝėǘƢƖɆįƎŨśɆƢķėɆǥǣǥǣɆƎėǘŝëŝĉļŝİșɆ pėƢɆİëļŝƖɆŨŝɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖȚɆĐƎļǁėŝɆƋƎļśëƎļŒǈɆĈǈɆįŨƎėļİŝɆ ėǇĉķëŝİėɆİëļŝƖɆŨŝɆĐėĈƢɆƎėŒëƢėĐɆļƢėśƖȚɆǂėƎėɆɞǤǤǫșǥśɆļŝɆƢķėɆǈėëƎɆ ȩǥǣǥǣțɆɞǤǣǧșǪśɆŒŨƖƖȪșɆ¶ķļƖɆİëļŝɆļƖɆƋëƎƢļëŒŒǈɆŨįįƖėƢɆĈǈɆëɆįŨƎėļİŝɆ ėǇĉķëŝİėɆŒŨƖƖɆŨŝɆƢķėɆƢƎëŝƖŒëƢļŨŝɆŨįɆëƖƖėƢƖɆļŝɆŨǁėƎƖėëƖɆƖƪĈƖļĐļëƎļėƖɆ ǂķļĉķɆļƖɆƎėĉŨİŝļƖėĐɆļŝɆƎėƖėƎǁėƖɆëŝĐɆįŨƎśƖɆƋëƎƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆ ĉŨśśėƎĉļëŒɆķėĐİļŝİɆƖƢƎëƢėİǈș Separately disclosed items QƢėśƖɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆĈėįŨƎėɆƢëǇɆįŨƎɆƢķėɆƋėƎļŨĐɆëśŨƪŝƢɆƢŨɆëɆ ɞǤǦǧșǤśɆĉķëƎİėɆȩǥǣǥǣțɆɞǤǪǨșǬśȪɆëŝĐɆƎėŒëƢėɆƋƎļśëƎļŒǈɆƢŨɆɞǤǧǧșǥśɆ ŨįɆëśŨƎƢļƖëƢļŨŝɆŨŝɆëĉƍƪļƎėĐɆļŝƢëŝİļĈŒėƖɆȩǥǣǥǣțɆɞǦǣǪșǣśȪȚɆëɆɞǦșǦśɆ ȩǥǣǥǣțɆɞǨșǣśȪɆļśƋëļƎśėŝƢɆŨįɆĉėƎƢëļŝɆķėëĐɆŨįǘĉėɆƋƎėśļƖėƖɆǂķļĉķɆëƎėɆ ŝŨǂɆǁëĉëŝƢɆëŝĐɆŨƪƎɆėǇĉķëŝİėɆĈƪƖļŝėƖƖɆėƢĐëƍȚɆļŝƢėİƎëƢļŨŝɆĉŨƖƢƖɆ ŨįɆɞǤǪșǦśɆȩǥǣǥǣțɆɞǥǨșǤśȪȚɆĉŨƎƋŨƎëƢėɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖɆŨįɆɞǬșǧśɆ ȩǥǣǥǣțɆɞŝļŒȪɆëŝĐɆɞǥǩșǥśɆŨįɆŨŝėƎŨƪƖɆĉŨƖƢƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆŨǁļĐȯǤǬɆ ƎėŒëƢėĐɆƖķŨƋɆĉŒŨƖƪƎėƖɆëŝĐɆŨƢķėƎɆŨŝėȯŨįįɆŒėİëŒɆëŝĐɆŒļƢļİëƢļŨŝɆėǇƋėŝƖėƖɆ ȩǥǣǥǣțɆɞǫșǬśȪșɆQŝɆëĐĐļƢļŨŝȚɆƢķėɆEƎŨƪƋɆƎėĉŨƎĐėĐɆëɆɞǩșǤśɆĉķëƎİėɆ ëƖƖŨĉļëƢėĐɆǂļƢķɆƢķėɆƎėëƖƖėƖƖśėŝƢɆŨįɆĉŨŝƢļŝİėŝƢɆĉŨŝƖļĐėƎëƢļŨŝɆ ƋëǈśėŝƢƖɆƪŝĐėƎɆķļƖƢŨƎļĉɆëĉƍƪļƖļƢļŨŝƖɆȩǥǣǥǣțɆɞǧǥșǧśȪɆëŝĐɆɞǬșǪśɆŨįɆ ŨƢķėƎɆėǇĉėƋƢļŨŝëŒɆļƢėśƖɆƋƎļśëƎļŒǈɆĐƪėɆƢŨɆƢķėɆǂƎļƢėȯŨįįɆŨįɆļƖƖƪėɆĉŨƖƢƖɆ ŨŝɆƎėǘŝëŝĉļŝİɆȩǥǣǥǣțɆɞǬșǩśȪșɆ$ƪƎļŝİɆƢķėɆƋƎļŨƎɆǈėëƎɆƢķėɆEƎŨƪƋɆëŒƖŨɆ ļŝĉƪƎƎėĐɆɞǫșǦśɆŨįɆĉŨƖƢƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆƎļİķƢȯƖļǒļŝİɆƢķėɆ½bɆ¡ėƢëļŒɆ ėƖƢëƢėɆƋŨƖƢɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆƢķėɆɞǥɆD{¶ɆƖƢëŏėƖɆƎėƖƢƎļĉƢļŨŝƖș $ƪƎļŝİɆƢķėɆǈėëƎȚɆƢķėɆEƎŨƪƋɆëŒƖŨɆƎėĉŨƎĐėĐɆëɆŝėƢɆɞǫǣșǥśɆļŝĉŨśėȚɆ ƋƎėĐŨśļŝëŝƢŒǈɆëİëļŝƖƢɆƢķėɆEƎŨƪƋȼƖɆǥǣǤǣȦǤǤɆEƎėėŏɆ¶ëǇɆƖƖėƖƖśėŝƢɆ įŨŒŒŨǂļŝİɆëɆĉŨƪƎƢɆƎƪŒļŝİɆļŝɆƢķėɆEƎŨƪƋȼƖɆįëǁŨƪƎɆĐƪƎļŝİɆƢķėɆŒëƢƢėƎɆ ƋëƎƢɆŨįɆǥǣǥǤɆȩǥǣǥǣțɆɞǥǥǦșǨśɆƋƎėĐŨśļŝëŝƢŒǈɆëɆ½bɆÔ¶ɆĉŒëļśɆļŝɆ ŨƪƎɆdëĐĈƎŨŏėƖɆĈƪƖļŝėƖƖȪɆëŝĐɆëɆƋƎŨǘƢɆŨŝɆƖëŒėɆŨįɆëƖƖėƢƖɆŨįɆɞǤșǬśɆ ȩǥǣǥǣțɆɞǩșǬśȪșɆ Separately disclosed items 2021 £m ǥǣǥǣɆ ɞś śŨƎƢļƖëƢļŨŝɆŨįɆëĉƍƪļƎėĐɆļŝƢëŝİļĈŒėƖ (144.2) ȩǦǣǪșǣȪ QśƋëļƎśėŝƢ (3.3) ȩǨșǣȪ QŝƢėİƎëƢļŨŝɆĉŨƖƢƖ (17.3) ȩǥǨșǤȪ ŨƎƋŨƎëƢėɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖ (9.4) – ¶ëǇɆŒļƢļİëƢļŨŝȦŨŝėȯŨįįɆŒėİļƖŒëƢļǁėɆļśƋëĉƢƖ 80.2 ǥǥǦșǨ dėİëŒɆëŝĐɆŨŝėƎŨƪƖɆĉŨŝƢƎëĉƢɆĉŨƖƢƖ (26.2) ȩǫșǬȪ nŨǁėśėŝƢɆļŝɆįëļƎɆǁëŒƪėɆŨįɆĉŨŝƢļŝİėŝƢɆ ĉŨŝƖļĐėƎëƢļŨŝ (6.1) ȩǧǥșǧȪ {ƢķėƎɆļŝĉŒƪĐļŝİɆļƖƖƪėɆĉŨƖƢɆǂƎļƢėȯŨįį (9.7) ȩǬșǩȪ ƎŨǘƢɆŨŝɆƖëŒėɆŨįɆëƖƖėƢƖ 1.9 ǩșǬ ¶ƎļėŝŝļëŒɆƎėƖƢƎƪĉƢƪƎļŝİɆĉŨƖƢƖ – ȩǫșǦȪ ¶ŨƢëŒ (134.1) ȩǤǪǨșǬȪ Entain plc | Annual Report 2021 74 Strategic report ƎŨǘƢɆĈėįŨƎėɆƢëǇ ƎŨǘƢɆĈėįŨƎėɆƢëǇɆëŝĐɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆǂëƖɆɞǨǥǪșǦśɆȩǥǣǥǣțɆɞǦǨǣșǩśȪȚɆëɆǈėëƎȯŨŝȯǈėëƎɆļŝĉƎėëƖėɆŨįɆɞǤǪǩșǪśȚɆŒëƎİėŒǈɆĐƎļǁėŝɆĈǈɆ ,Q¶$ɆİƎŨǂƢķɆëŝĐɆƢķėɆįŨƎėļİŝɆėǇĉķëŝİėɆİëļŝɆŨŝɆƢķėɆƎėƢƎëŝƖŒëƢļŨŝɆŨįɆĐėĈƢɆƋëƎƢļëŒŒǈɆŨįįƖėƢɆĈǈɆëŝɆļŝĉƎėëƖėɆļŝɆŨƪƎɆƖķëƎėɆŨįɆėƢnEnɆŒŨƖƖėƖșɆ įƢėƎɆĉķëƎİļŝİɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖȚɆƢķėɆEƎŨƪƋɆƎėĉŨƎĐėĐɆëɆƋƎėȯƢëǇɆƋƎŨǘƢɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖɆŨįɆɞǦǬǦșǥśɆȩǥǣǥǣțɆɞǤǪǧșǪśȪșɆ ¶ëǇëƢļŨŝ ¶ķėɆƢëǇɆĉķëƎİėɆŨŝɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖɆįŨƎɆƢķėɆǈėëƎɆǂëƖɆɞǤǤǪșǩśɆȩǥǣǥǣțɆĉķëƎİėɆŨįɆɞǩǣșǬśȪȚɆƎėǙėĉƢļŝİɆëŝɆƪŝĐėƎŒǈļŝİɆėįįėĉƢļǁėɆƢëǇɆƎëƢėɆ ƋƎėȯėƢnEnɆŒŨƖƖėƖɆëŝĐɆįŨƎėļİŝɆėǇĉķëŝİėɆİëļŝƖɆŨŝɆėǇƢėƎŝëŒɆĐėĈƢɆŨįɆǤǧșǥɼɆȩǥǣǥǣțɆǤǥșǥɼȪɆëŝĐɆëɆƢëǇɆĉķëƎİėɆŨŝɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆ ŨįɆɞǥǪșǨśɆȩǥǣǥǣțɆļŝĉŨśėɆɞǥșǤśȪșɆ ëƖķɆǙŨǂ Year ended 31 December 2021 £m ǥǣǥǣɆ ɞś Underlying EBITDA 4 881.7 ǫǧǦșǤ $ļƖĉŨŝƢļŝƪėĐɆ,Q¶$ (5.3) ȩǤǧșǤȪ ½ŝĐėƎŒǈļŝİɆǂŨƎŏļŝİɆĉëƋļƢëŒ 23.7 ȩǤǥșǩȪ ëƋļƢëŒɆėǇƋėŝĐļƢƪƎė (176.2) ȩǤǨǫșǦȪ DļŝëŝĉėɆŒėëƖėɆƋƎļŝĉļƋëŒɆȩļŝĉŒșɆQD¡©ɆǤǩɆŒėëƖėƖȪ (87.9) ȩǫǨșǬȪ ŨƎƋŨƎëƢėɆƢëǇėƖ (98.7) ȩǨǬșǥȪ ½ŝĐėƎŒǈļŝİɆDƎėėɆĉëƖķɆǙŨǂ 537.3 ǨǤǦșǣ QŝǁėƖƢśėŝƢɆļŝɆėƢnEn (164.4) ȩǩǤșǫȪ ĉƍƪļƖļƢļŨŝƖȦĐļƖƋŨƖëŒƖɆŝėƢɆŨįɆĉëƖķ (510.6) – DƎėėɆĉëƖķɆǙŨǂ (137.7) ǧǨǤșǥ QŝƢėƎėƖƢɆƋëļĐɆȩļŝĉŒșɆQD¡©ɆǤǩɆŒėëƖėƖȪ (73.3) ȩǬǨșǦȪ ©ėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖ (225.1) ǥǧșǩ pėƢɆśŨǁėśėŝƢɆŨŝɆĐėĈƢɆëŝĐɆëƖƖŨĉļëƢėĐɆļŝƖƢƎƪśėŝƢƖ 212.0 ȩǦǣșǣȪ ,ƍƪļƢǈɆļƖƖƪė 0.7 ǫșǩ $ļǁļĐėŝĐƖɆƋëļĐ (24.5) ȩǤǥșǧȪ pėƢɆĉëƖķɆǙŨǂ (247.9) ǦǧǩșǪ DŨƎėļİŝɆėǇĉķëŝİė (14.8) ǤǦșǣ pėƢɆĉëƖķɆȩŨƪƢǙŨǂȪȦİėŝėƎëƢėĐ (262.7) ǦǨǬșǪ $ƪƎļŝİɆƢķėɆǈėëƎȚɆƢķėɆEƎŨƪƋɆķëĐɆëɆŝėƢɆĉëƖķɆŨƪƢǙŨǂɆŨįɆɞǥǧǪșǬśɆȩǥǣǥǣțɆļŝǙŨǂɆŨįɆɞǦǧǩșǪśȪȚɆĈƪƢɆëŝɆļŝǙŨǂɆŨįɆɞǧǥǪșǤśɆĈėįŨƎėɆëĉƍƪļƖļƢļŨŝƖɆëŝĐɆ ĐļƖƋŨƖëŒƖɆëŝĐɆļŝǁėƖƢśėŝƢɆļŝɆėƢnEnɆȩǥǣǥǣțɆɞǧǣǫșǨśȪșɆ ½ŝĐėƎŒǈļŝİɆįƎėėɆĉëƖķǙŨǂɆįŨƎɆƢķėɆǈėëƎɆǂëƖɆɞǨǦǪșǦśɆȩǥǣǥǣțɆɞǨǤǦșǣśȪɆǂļƢķɆƪŝĐėƎŒǈļŝİɆ,Q¶$ɆŨįɆɞǫǫǤșǪśɆȩǥǣǥǣțɆɞǫǧǦșǤśȪɆëŝĐɆëɆǂŨƎŏļŝİɆ ĉëƋļƢëŒɆļŝǙŨǂɆŨįɆɞǥǦșǪśɆȩǥǣǥǣțɆɞǤǥșǩśɆŨƪƢǙŨǂȪɆƋëƎƢļëŒŒǈɆŨįįƖėƢɆĈǈɆļŝǁėƖƢśėŝƢɆļŝɆĉëƋļƢëŒɆėǇƋėŝĐļƢƪƎėɆŨįɆɞǤǪǩșǥśɆȩǥǣǥǣțɆɞǤǨǫșǦśȪȚɆŒėëƖėɆ ƋëǈśėŝƢƖɆŨįɆɞǫǪșǬśɆȩǥǣǥǣțɆɞǫǨșǬśȪɆļŝĉŒƪĐļŝİɆƢķŨƖėɆŨŝɆŝŨŝȯŨƋėƎëƢļŨŝëŒɆƖķŨƋƖɆëŝĐɆɞǬǫșǪśɆļŝɆĉŨƎƋŨƎëƢėɆƢëǇɆƋëǈśėŝƢƖɆȩǥǣǥǣțɆɞǨǬșǥśȪșɆ $ļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖɆļŝĉƪƎƎėĐɆëɆɞǨșǦśɆ,Q¶$ɆŒŨƖƖɆĐƪƎļŝİɆƢķėɆǈėëƎɆȩǥǣǥǣțɆɞǤǧșǤśȪșɆQŝĉŒƪĐļŝİɆĉëƖķɆŨƪƢǙŨǂƖɆįŨƎɆnʁɆëĉƢļǁļƢǈɆëŝĐɆ ëĐĐļƢļŨŝëŒɆļŝǁėƖƢśėŝƢɆļŝɆėƢnEnɆĐƪƎļŝİɆƢķėɆǈėëƎȚɆįƎėėɆĉëƖķɆŨƪƢǙŨǂɆǂëƖɆɞǤǦǪșǪśɆȩǥǣǥǣțɆɞǧǨǤșǥśɆļŝǙŨǂȪșɆ $ƪƎļŝİɆƢķėɆǈėëƎȚɆƢķėɆEƎŨƪƋɆƋëļĐɆɞǪǦșǦśɆŨįɆļŝƢėƎėƖƢɆȩǥǣǥǣțɆɞǬǨșǦśȪɆëŝĐɆɞǥǥǨșǤśɆŨŝɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆȩǥǣǥǣțɆɞǥǧșǩśɆļŝĉŨśėȪɆ ļŝĉŒƪĐļŝİɆɞǤǦǣșǪśɆŨįɆĉŨŝƢļŝİėŝƢɆĉŨŝƖļĐėƎëƢļŨŝɆŨŝɆƋƎėǁļŨƪƖɆëĉƍƪļƖļƢļŨŝƖɆȩǥǣǥǣțɆɞǥǧșǫśȪȚɆɞǦǪșǣśɆŨŝɆƢëǇɆŒļƢļİëƢļŨŝɆļƢėśƖɆȩɞǤǣǥșǩśɆļŝǙŨǂȪȚɆ ɞǥǪșǪśɆŨŝɆļŝƢėİƎëƢļŨŝɆĉŨƖƢƖɆȩǥǣǥǣțɆɞǦǣșǤśȪȚɆɞǤǫșǫśɆŨŝɆŒėİëŒɆëŝĐɆŨŝėƎŨƪƖɆĉŨŝƢƎëĉƢɆĉŨƖƢƖɆȩǥǣǥǣțɆɞǥǥșǤśȪɆëŝĐɆɞǬșǧśɆŨŝɆëĉƍƪļƖļƢļŨŝɆëŝĐɆ ĐėëŒɆƎėŒëƢėĐɆĉŨƖƢƖɆȩǥǣǥǣțɆɞŝļŒȪșɆɞǥǤǥșǣśɆǂëƖɆƎėĉėļǁėĐɆŨŝɆĐėĈƢɆƎėŒëƢėĐɆļŝƖƢƎƪśėŝƢƖɆȩǥǣǥǣțɆɞǦǣșǣśɆƋëǈśėŝƢȪȚɆƋƎļśëƎļŒǈɆŨŝɆƢķėɆƎėǘŝëŝĉļŝİɆ ŨįɆƢķėɆ½©$ɆŒŨëŝɆǂķļĉķɆƎëļƖėĐɆŝėƢɆƋƎŨĉėėĐƖɆŨįɆɞǥǦǫșǥśɆȩǥǣǥǣțɆɞǦǨșǣśɆƎėƋëǈśėŝƢɆŨįɆĐƎëǂŝĐŨǂŝɆ¡DȪȚɆƋëƎƢļëŒŒǈɆŨįįƖėƢɆĈǈɆɞǤǬșǤśɆŨįɆĉŨƖƢƖɆ ŨŝɆƢķėɆƖėƢƢŒėśėŝƢɆŨįɆŨŝėɆŨįɆƢķėɆEƎŨƪƋȼƖɆėǇƢėƎŝëŒɆƖǂëƋɆëƎƎëŝİėśėŝƢƖɆȩǥǣǥǣțɆɞǤǥșǩśɆƎėĉėļƋƢȪșɆ$ƪƎļŝİɆƢķėɆǈėëƎȚɆƢķėɆEƎŨƪƋɆëŒƖŨɆƋëļĐɆɞǥǧșǨśɆ ļŝɆĐļǁļĐėŝĐƖɆƢŨɆƢķėɆśļŝŨƎļƢǈɆķŨŒĐļŝİɆļŝɆƎǈƖƢëŒĈėƢɆȩǥǣǥǣțɆɞǤǥșǧśȪɆëŝĐɆƎëļƖėĐɆɞǣșǪśɆŨŝɆƢķėɆļƖƖƪėɆŨįɆėƍƪļƢǈɆƪŝĐėƎɆŒėİëĉǈɆƖķëƎėɆļŝĉėŝƢļǁėɆ ƖĉķėśėƖɆȩǥǣǥǣțɆɞǫșǩśȪșɆpŨɆėƍƪļƢǈɆĐļǁļĐėŝĐƖɆǂėƎėɆƋëļĐɆĐƪƎļŝİɆėļƢķėƎɆƢķėɆĉƪƎƎėŝƢɆŨƎɆƋƎļŨƎɆǈėëƎș 75 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Net debt and liquidity ƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆŝėƢɆĐėĈƢɆǂëƖɆɞǥȚǣǫǩșǧśɆëŝĐɆƎėƋƎėƖėŝƢėĐɆëɆŝėƢɆĐėĈƢɆƢŨɆ,Q¶$ɆƎëƢļŨɆŨįɆǥșǧǇșɆ¶ķėƎėɆǂëƖɆŝŨɆĐƎëǂĐŨǂŝɆŨŝɆƢķėɆ EƎŨƪƋȼƖɆƎėǁŨŒǁļŝİɆĉƎėĐļƢɆįëĉļŒļƢǈșɆ Par value £m Issue costs/ Premium £m Total £m ŨŝĐƖ ȩǨǣǣșǣȪ ȩǤǣșǫȪ (510.8) ¶ėƎśɆŒŨëŝƖ ȩǤȚǪǪǥșǩȪ Ǥǧșǩ (1,758.0) QŝƢėƎėƖƢɆëĉĉƎƪëŒ ȩǤǦșǩȪ – (13.6) ȩǥȚǥǫǩșǥȪ Ǧșǫ (2,282.4) ëƖķɆ 487.1 Accounting net debt (1,795.3) ëƖķɆķėŒĐɆŨŝɆĈėķëŒįɆŨįɆĉƪƖƢŨśėƎƖ (205.9) DëļƎɆǁëŒƪėɆŨįɆƖǂëƋƖɆķėŒĐɆëİëļŝƖƢɆĐėĈƢɆļŝƖƢƎƪśėŝƢƖ 57.4 ©ķŨƎƢȯƢėƎśɆļŝǁėƖƢśėŝƢƖȦ$ėƋŨƖļƢƖɆķėŒĐ 20.3 ëŒëŝĉėƖɆķėŒĐɆǂļƢķɆƋëǈśėŝƢɆƖėƎǁļĉėɆƋƎŨǁļĐėƎƖ 130.8 dėëƖėɆŒļëĈļŒļƢļėƖ (293.7) Adjusted net debt (2,086.4) Going Concern QŝɆëĐŨƋƢļŝİɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨŝƖļĐėƎėĐɆƢķėɆĉƪƎƎėŝƢɆƢƎëĐļŝİɆ ƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆEƎŨƪƋȚɆƢķėɆǘŝëŝĉļëŒɆįŨƎėĉëƖƢƖɆëŝĐɆƢķėɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆëŝĐɆƪŝĉėƎƢëļŝƢļėƖȚɆļŝĉŒƪĐļŝİɆƢķėɆŨŝİŨļŝİɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬșɆ QŝɆëĐĐļƢļŨŝȚɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨŝƖļĐėƎėĐɆëŒŒɆśëƢƢėƎƖɆĐļƖĉƪƖƖėĐɆļŝɆĉŨŝŝėĉƢļŨŝɆǂļƢķɆƢķėɆŒŨŝİȯƢėƎśɆǁļëĈļŒļƢǈɆƖƢëƢėśėŝƢɆļŝĉŒƪĐļŝİɆƢķėɆ śŨĐėŒŒļŝİɆŨįɆȹƖėǁėƎėɆĈƪƢɆƋŒëƪƖļĈŒėȺɆĐŨǂŝƖļĐėɆƖĉėŝëƎļŨƖɆƖƪĉķɆëƖɆŒėİļƖŒëƢļŨŝɆĉķëŝİėƖɆļśƋëĉƢļŝİɆƢķėɆEƎŨƪƋȼƖɆ{ŝŒļŝėɆĈƪƖļŝėƖƖɆëŝĐɆŝėǂɆ ŒŨĉŏĐŨǂŝƖɆëįįėĉƢļŝİɆƢķėɆEƎŨƪƋȼƖɆ¡ėƢëļŒɆŨƋėƎëƢļŨŝƖșɆ $ėƖƋļƢėɆƢķėɆŝėƢɆĉƪƎƎėŝƢɆŒļëĈļŒļƢǈɆƋŨƖļƢļŨŝȚɆƢķėɆŒėǁėŒɆŨįɆƢķėɆEƎŨƪƋȼƖɆëǁëļŒëĈŒėɆĉëƖķɆȩĉɞǧǣǣśȪȚɆëǁëļŒëĈŒėɆǘŝëŝĉļŝİɆįëĉļŒļƢļėƖɆȩļŝĉŒƪĐļŝİɆëŝɆ ƪŝĐƎëǂŝɆƎėǁŨŒǁļŝİɆĉƎėĐļƢɆįëĉļŒļƢǈɆŨįɆĉɞǨǣǣśȪɆëŝĐɆƢķėɆįŨƎėĉëƖƢɆĉŨǁėŝëŝƢɆķėëĐƎŨŨśɆėǁėŝɆƪŝĐėƎɆƢķėɆƖėŝƖļƢļƖėĐɆĐŨǂŝƖļĐėɆƖĉėŝëƎļŨƖȚɆ ƢķėɆ$ļƎėĉƢŨƎƖɆĈėŒļėǁėɆƢķëƢɆƢķėɆEƎŨƪƋɆļƖɆǂėŒŒɆƋŒëĉėĐɆƢŨɆśëŝëİėɆƢķėɆƎļƖŏƖɆëŝĐɆƪŝĉėƎƢëļŝƢļėƖɆƢķëƢɆļƢɆįëĉėƖșɆƖɆƖƪĉķȚɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆëɆ ƎėëƖŨŝëĈŒėɆėǇƋėĉƢëƢļŨŝɆƢķëƢɆƢķėɆEƎŨƪƋɆǂļŒŒɆķëǁėɆëĐėƍƪëƢėɆǘŝëŝĉļëŒɆƎėƖŨƪƎĉėƖɆƢŨɆĉŨŝƢļŝƪėɆļŝɆŨƋėƎëƢļŨŝëŒɆėǇļƖƢėŝĉėɆëŝĐɆķëǁėȚɆƢķėƎėįŨƎėȚɆ ĉŨŝƖļĐėƎėĐɆļƢɆëƋƋƎŨƋƎļëƢėɆƢŨɆëĐŨƋƢɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș pŨƢėƖ ǤșɆ ǥǣǥǤɆëŝĐɆǥǣǥǣɆƎėƋŨƎƢėĐɆƎėƖƪŒƢƖɆëƎėɆëƪĐļƢėĐș ǥșɆ ¡ėƋŨƎƢėĐɆƎėƖƪŒƢƖɆëƎėɆƋƎŨǁļĐėĐɆŨŝɆëɆƋŨƖƢɆQD¡©ǤǩɆļśƋŒėśėŝƢëƢļŨŝɆĈëƖļƖș ǦșɆ EƎŨǂƢķɆŨŝɆëɆĉŨŝƖƢëŝƢɆĉƪƎƎėŝĉǈɆĈëƖļƖɆļƖɆĉëŒĉƪŒëƢėĐɆĈǈɆƢƎëŝƖŒëƢļŝİɆĈŨƢķɆĉƪƎƎėŝƢɆëŝĐɆƋƎļŨƎɆǈėëƎɆƋėƎįŨƎśëŝĉėɆëƢɆƢķėɆǥǣǥǤɆėǇĉķëŝİėɆƎëƢėƖș ǧșɆ ,Q¶$¡ɆļƖɆĐėǘŝėĐɆëƖɆėëƎŝļŝİƖɆĈėįŨƎėɆļŝƢėƎėƖƢȚɆƢëǇȚɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝȚɆƎėŝƢɆëŝĐɆëƖƖŨĉļëƢėĐɆĉŨƖƢƖȚɆƖķëƎėɆĈëƖėĐɆƋëǈśėŝƢƖɆëŝĐɆƖķëƎėɆŨįɆÔɆļŝĉŨśėșɆ ,Q¶$ɇļƖɇĐėǘŝėĐɇëƖɆ,Q¶$¡ɆëįƢėƎɆĉķëƎİļŝİɆƎėŝƢɆëŝĐɆëƖƖŨĉļëƢėĐɆĉŨƖƢƖșɆŨƢķɆ,Q¶$¡ɆëŝĐɆ,Q¶$ɆëƎėɆƖƢëƢėĐɆƋƎėɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖș ǨșɆ ©ƢëƢėĐɆƋƎėɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖș ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎȼƖɆ¡ėǁļėǂɆĉŨŝƢļŝƪėĐ Entain plc | Annual Report 2021 76 Strategic report ¶ķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƋƎėƋëƎļŝİɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆëŝĐɆƢķėɆEƎŨƪƋɆëŝĐɆƋëƎėŝƢɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļŝɆëĉĉŨƎĐëŝĉėɆ ǂļƢķɆëƋƋŒļĉëĈŒėɆŒëǂɆëŝĐɆƎėİƪŒëƢļŨŝƖșɆ ¶ķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆėŒėĉƢėĐɆƢŨɆƋƎėƋëƎėɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQŝƢėƎŝëƢļŨŝëŒɆDļŝëŝĉļëŒɆ¡ėƋŨƎƢļŝİɆ ©ƢëŝĐëƎĐƖɆëŝĐɆëƋƋŒļĉëĈŒėɆŒëǂɆëŝĐɆķëǁėɆėŒėĉƢėĐɆƢŨɆƋƎėƋëƎėɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆD¡©ɆǤǣǤɆ ¡ėĐƪĉėĐɆ$ļƖĉŒŨƖƪƎėɆDƎëśėǂŨƎŏșɆ QŝɆƋƎėƋëƎļŝİɆėëĉķɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƋëƎėŝƢɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƍƪļƎėĐɆƢŨțɆ Ɇ ƖėŒėĉƢɆƖƪļƢëĈŒėɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆëŝĐɆƢķėŝɆëƋƋŒǈɆƢķėśɆĉŨŝƖļƖƢėŝƢŒǈȜɆ Ɇ śëŏėɆŌƪĐİėśėŝƢƖɆëŝĐɆėƖƢļśëƢėƖɆƢķëƢɆëƎėɆƎėëƖŨŝëĈŒėɆëŝĐɆƋƎƪĐėŝƢȜɆ Ɇ įŨƎɆƢķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƖƢëƢėɆǂķėƢķėƎɆëƋƋŒļĉëĈŒėɆëĉĉŨƪŝƢļŝİɆƖƢëŝĐëƎĐƖɆķëǁėɆĈėėŝɆįŨŒŒŨǂėĐȚɆƖƪĈŌėĉƢɆƢŨɆëŝǈɆśëƢėƎļëŒɆ ĐėƋëƎƢƪƎėƖɆĐļƖĉŒŨƖėĐɆëŝĐɆėǇƋŒëļŝėĐɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȜɆ Ɇ įŨƎɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƖƢëƢėɆǂķėƢķėƎɆëƋƋŒļĉëĈŒėɆ½bɆëĉĉŨƪŝƢļŝİɆƖƢëŝĐëƎĐƖɆķëǁėɆĈėėŝɆįŨŒŒŨǂėĐȚɆƖƪĈŌėĉƢɆƢŨɆëŝǈɆ śëƢėƎļëŒɆĐėƋëƎƢƪƎėƖɆĐļƖĉŒŨƖėĐɆëŝĐɆėǇƋŒëļŝėĐɆļŝɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȜɆ Ɇ ëƖƖėƖƖɆƢķėɆEƎŨƪƋɆëŝĐɆƋëƎėŝƢɆŨśƋëŝǈȼƖɆëĈļŒļƢǈɆƢŨɆĉŨŝƢļŝƪėɆëƖɆëɆİŨļŝİɆĉŨŝĉėƎŝȚɆĐļƖĉŒŨƖļŝİȚɆëƖɆëƋƋŒļĉëĈŒėȚɆśëƢƢėƎƖɆƎėŒëƢėĐɆƢŨɆ İŨļŝİɆĉŨŝĉėƎŝȜɆ Ɇ ƪƖėɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆŨįɆëĉĉŨƪŝƢļŝİɆƪŝŒėƖƖɆƢķėǈɆėļƢķėƎɆļŝƢėŝĐɆƢŨɆŒļƍƪļĐëƢėɆƢķėɆEƎŨƪƋɆŨƎɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈɆŨƎɆƢŨɆĉėëƖėɆ ŨƋėƎëƢļŨŝƖȚɆŨƎɆķëǁėɆŝŨɆƎėëŒļƖƢļĉɆëŒƢėƎŝëƢļǁėɆĈƪƢɆƢŨɆĐŨɆƖŨȜɆëŝĐ Ɇ ƋƎėƋëƎėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆǂķļĉķɆİļǁėɆëɆƢƎƪėɆëŝĐɆįëļƎɆǁļėǂɆŨįɆƢķėɆƖƢëƢėɆŨįɆëįįëļƎƖɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈɆëŝĐɆŨįɆƢķėɆ ƋƎŨǘƢɆŨƎɆŒŨƖƖɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈɆįŨƎɆƢķëƢɆƋėƎļŨĐș ¶ķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆŏėėƋļŝİɆëĐėƍƪëƢėɆëĉĉŨƪŝƢļŝİɆƎėĉŨƎĐƖɆƢķëƢɆëƎėɆƖƪįǘĉļėŝƢɆƢŨɆƖķŨǂɆëŝĐɆėǇƋŒëļŝɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈȼƖɆ ƢƎëŝƖëĉƢļŨŝƖɆëŝĐɆĐļƖĉŒŨƖėɆǂļƢķɆƎėëƖŨŝëĈŒėɆëĉĉƪƎëĉǈɆëƢɆëŝǈɆƢļśėɆƢķėɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆŨįɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈɆëŝĐɆėŝëĈŒėɆƢķėśɆƢŨɆėŝƖƪƎėɆ ƢķëƢɆļƢƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆĉŨśƋŒǈɆǂļƢķɆƢķėɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩșɆ¶ķėǈɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƖƪĉķɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒɆëƖɆƢķėǈɆ ĐėƢėƎśļŝėɆļƖɆŝėĉėƖƖëƎǈɆƢŨɆėŝëĈŒėɆƢķėɆƋƎėƋëƎëƢļŨŝɆŨįɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƢķëƢɆëƎėɆįƎėėɆįƎŨśɆśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢȚɆǂķėƢķėƎɆĐƪėɆƢŨɆįƎëƪĐɆ ŨƎɆėƎƎŨƎȚɆëŝĐɆķëǁėɆİėŝėƎëŒɆƎėƖƋŨŝƖļĈļŒļƢǈɆįŨƎɆƢëŏļŝİɆƖƪĉķɆƖƢėƋƖɆëƖɆëƎėɆƎėëƖŨŝëĈŒǈɆŨƋėŝɆƢŨɆƢķėśɆƢŨɆƖëįėİƪëƎĐɆƢķėɆëƖƖėƢƖɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƢŨɆ ƋƎėǁėŝƢɆëŝĐɆĐėƢėĉƢɆįƎëƪĐɆëŝĐɆŨƢķėƎɆļƎƎėİƪŒëƎļƢļėƖșɆ ¶ķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƢķėɆśëļŝƢėŝëŝĉėɆëŝĐɆļŝƢėİƎļƢǈɆŨįɆƢķėɆĉŨƎƋŨƎëƢėɆëŝĐɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆļŝĉŒƪĐėĐɆŨŝɆƢķėɆŨśƋëŝǈȼƖɆ ǂėĈƖļƢėșɆdėİļƖŒëƢļŨŝɆļŝɆƢķėɆQƖŒėɆŨįɆnëŝɆİŨǁėƎŝļŝİɆƢķėɆƋƎėƋëƎëƢļŨŝɆëŝĐɆĐļƖƖėśļŝëƢļŨŝɆŨįɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆśëǈɆĐļįįėƎɆįƎŨśɆŒėİļƖŒëƢļŨŝɆ ļŝɇŨƢķėƎɆŌƪƎļƖĐļĉƢļŨŝƖșɆ ¡ėƖƋŨŝƖļĈļŒļƢǈɆƖƢëƢėśėŝƢɆŨįɆƢķėɆ$ļƎėĉƢŨƎƖɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆëŝŝƪëŒɆǘŝëŝĉļëŒɆƎėƋŨƎƢɆ ÕėɆĉŨŝǘƎśɆƢķëƢɆƢŨɆƢķėɆĈėƖƢɆŨįɆŨƪƎɆŏŝŨǂŒėĐİėțɆ Ɇ ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆëƋƋŒļĉëĈŒėɆƖėƢɆŨįɆëĉĉŨƪŝƢļŝİɆƖƢëŝĐëƎĐƖȚɆİļǁėɆëɆƢƎƪėɆëŝĐɆįëļƎɆǁļėǂɆŨįɆƢķėɆ ëƖƖėƢƖȚɆŒļëĈļŒļƢļėƖȚɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆëŝĐɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆŨįɆƢķėɆŨśƋëŝǈɆëŝĐɆƢķėɆƪŝĐėƎƢëŏļŝİƖɆļŝĉŒƪĐėĐɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢļŨŝɆƢëŏėŝɆëƖɆëɆ ǂķŨŒėȜɆëŝĐɆ Ɇ ƢķėɆ©ƢƎëƢėİļĉɆ¡ėƋŨƎƢɆļŝĉŒƪĐėƖɆëɆįëļƎɆƎėǁļėǂɆŨįɆƢķėɆĐėǁėŒŨƋśėŝƢɆëŝĐɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆĈƪƖļŝėƖƖɆëŝĐɆƢķėɆƋŨƖļƢļŨŝɆŨįɆƢķėɆļƖƖƪėƎɆëŝĐɆƢķėɆ ƪŝĐėƎƢëŏļŝİƖɆļŝĉŒƪĐėĐɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢļŨŝɆƢëŏėŝɆëƖɆëɆǂķŨŒėȚɆƢŨİėƢķėƎɆǂļƢķɆëɆĐėƖĉƎļƋƢļŨŝɆŨįɆƢķėɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆëŝĐɆƪŝĉėƎƢëļŝƢļėƖɆƢķëƢɆ ƢķėǈɆįëĉėșɆ ÕėɆĉŨŝƖļĐėƎɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆëŝĐɆĉĉŨƪŝƢƖȚɆƢëŏėŝɆëƖɆëɆǂķŨŒėȚɆļƖɆįëļƎȚɆĈëŒëŝĉėĐɆëŝĐɆƪŝĐėƎƖƢëŝĐëĈŒėɆëŝĐɆƋƎŨǁļĐėƖɆƢķėɆļŝįŨƎśëƢļŨŝɆ ŝėĉėƖƖëƎǈɆįŨƎɆƖķëƎėķŨŒĐėƎƖɆƢŨɆëƖƖėƖƖɆƢķėɆEƎŨƪƋȼƖɆƋŨƖļƢļŨŝɆëŝĐɆƋėƎįŨƎśëŝĉėȚɆĈƪƖļŝėƖƖɆśŨĐėŒɆëŝĐɆƖƢƎëƢėİǈș Rob Wood ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎ ǦɆnëƎĉķɆǥǣǥǥ ©ƢëƢėśėŝƢɆŨįɆ$ļƎėĉƢŨƎƖȼɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆ ŝŝƪëŒɆ¡ėƋŨƎƢɆëŝĐɆƢķėɆDļŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ 77 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȼƖɆ¡ėǁļėǂɆŨįɆ¡ļƖŏ ÕķļŒėɆƢķėƎėɆļƖɆƖƢļŒŒɆƖŨśėɆƪŝĉėƎƢëļŝƢǈɆļŝɆ ƢķėɆƖķŨƎƢȯƢėƎśȚɆǂėɆķëǁėɆėŝƢėƎėĐɆǥǣǥǥɆ ǂļƢķɆİŨŨĐɆƢƎëĐļŝİɆśŨśėŝƢƪśșȺ Robert Hoskin ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ ǥǣǥǤɆķëƖɆĈėėŝɆëŝŨƢķėƎɆǈėëƎɆŨįɆĐļƖƎƪƋƢļŨŝɆǂļƢķɆƢķėɆŨǁļĐȯǤǬɆ ƋëŝĐėśļĉɆĉŨŝƢļŝƪļŝİɆƢŨɆļśƋëĉƢɆİŒŨĈëŒɆėĉŨŝŨśļėƖɆëŝĐɆĉëƪƖļŝİɆ ƢėśƋŨƎëƎǈɆĉŒŨƖƪƎėƖɆŨįɆŨƪƎɆ¡ėƢëļŒɆėƖƢëƢėƖșɆƖɆǂėɆĐļƖĉƪƖƖėĐɆļŝɆ ŨƪƎɆǥǣǥǣɆŝŝƪëŒɆ¡ėƋŨƎƢȚɆƢķėɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬɆķëƖɆĈėėŝɆįėŒƢɆ ĈǈɆëŒŒɆĉŨƎƋŨƎëƢėƖɆëŝĐɆİļǁėŝɆƢķėɆƪŝƋƎėĉėĐėŝƢėĐɆŝëƢƪƎėɆŨįɆƢķėƖėɆ ėǁėŝƢƖȚɆŨƪƎɆƎŨĈƪƖƢɆƎļƖŏɆëƖƖėƖƖśėŝƢȚɆśëŝëİėśėŝƢɆëŝĐɆśļƢļİëƢļŨŝɆ ƋƎŨĉėĐƪƎėƖɆķëǁėɆĈėėŝɆļśƋėƎëƢļǁėɆļŝɆķėŒƋļŝİɆƢķėɆEƎŨƪƋɆŝëǁļİëƢėɆ ƢķėɇŒëƖƢɆƢǂŨɆǈėëƎƖșɆ ÕķļŒėɆƢķėƎėɆļƖɆƖƢļŒŒɆƖŨśėɆƪŝĉėƎƢëļŝƢǈɆļŝɆƢķėɆƖķŨƎƢȯƢėƎśȚɆǂėɆķëǁėɆ ėŝƢėƎėĐɆǥǣǥǥɆǂļƢķɆİŨŨĐɆƢƎëĐļŝİɆśŨśėŝƢƪśɆëŝĐɆëɆƖƢƎŨŝİɆëŒëŝĉėɆ ©ķėėƢɆëŝĐȚɆëƖɆƖƪĉķȚɆǂėɆƎėśëļŝɆëƖɆĉŨŝǘĐėŝƢɆëƖɆėǁėƎɆļŝɆ,ŝƢëļŝȼƖɆ ŒŨŝİėƎɆƢėƎśɆƋƎŨƖƋėĉƢƖș ÕķļŒƖƢɆŨƪƎɆƎļƖŏɆįƪŝĉƢļŨŝɆķëƖɆĉŨŝƢļŝƪėĐɆƢŨɆśŨŝļƢŨƎɆëŝĐɆëƖƖėƖƖɆƢķėɆ ƎļƖŏƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆŨǁļĐȯǤǬɆĐƪƎļŝİɆǥǣǥǤȚɆƢķėɆŒėëƎŝļŝİƖɆįƎŨśɆ ǥǣǥǣɆëŝĐɆƢķėɆƋƎŨĉėƖƖėƖɆëĐŨƋƢėĐɆķëǁėɆëįįŨƎĐėĐɆƢķėɆƢėëśɆİƎėëƢėƎɆ ƢļśėɆƢŨɆįŨĉƪƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆǂļĐėƎɆ¡ļƖŏɆnëŝëİėśėŝƢɆDƎëśėǂŨƎŏșɆ ƖɆƖƪĉķȚɆĐƪƎļŝİɆǥǣǥǤɆǂėɆķëǁėɆĉŨŝƢļŝƪėĐɆƢŨɆƎėǘŝėɆŨƪƎɆëƋƋƎŨëĉķɆƢŨɆ ¡ļƖŏɆëƖɆǂėŒŒɆëƖɆĐėŒļǁėƎɆŨŝɆëɆŝƪśĈėƎɆŨįɆŨƪƎɆǥǣǥǤɆŨĈŌėĉƢļǁėƖșɆ dŨŨŏļŝİɆĈëĉŏɆëƢɆŨƪƎɆëĉķļėǁėśėŝƢƖɆļŝɆǥǣǥǤɆëŝĐɆŨƪƎɆƋƎļŨƎļƢļėƖɆ įŨƎɆǥǣǥǥț Key successes in 2021 ŨŝƢļŝƪėĐɆĐėǁėŒŨƋśėŝƢɆëŝĐɆėŝķëŝĉėśėŝƢɆŨįɆŨƪƎɆĐļǁļƖļŨŝëŒȦ įƪŝĉƢļŨŝëŒɆƎļƖŏɆƎėİļƖƢėƎƖɆëŝĐɆƎļƖŏɆśļƢļİëƢļŨŝɆëĉƢļǁļƢļėƖș ¡ŨŒŒȯŨƪƢɆŨįɆƢķėɆEƎŨƪƋɆ¡ļƖŏɆnëŝëİėśėŝƢɆƋƎŨĉėƖƖėƖɆƢŨɆ ǥǣǥǤɆëĉƍƪļƖļƢļŨŝƖș DŨƎśëŒļƖëƢļŨŝɆŨįɆĐėėƋɆĐļǁėɆƖėƖƖļŨŝƖɆǂļƢķɆƢķėɆEƎŨƪƋɆŨëƎĐɆëŝĐɆ ŨśśļƢƢėėƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆŨŝɆƎŨƢëƢļŨŝș Key priorities for 2022 ¡ėǘŝėśėŝƢɆŨįɆŨƪƎɆƎļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖėƖɆƢŨɆėŝƖƪƎėɆƢķėǈɆ ëƎėɆįƪŒŒǈɆëŒļİŝėĐɆǂļƢķɆƢķėɆEƎŨƪƋɆƖƢƎëƢėİǈɆëŝĐɆƢķėɆįŨĉƪƖɆŨŝɆ ƖƪƖƢëļŝëĈļŒļƢǈɆëŝĐɆİƎŨǂƢķș ɆĉŨŝƢļŝƪėĐɆĉŨśśļƢśėŝƢɆƢŨɆƎėĐƪĉėɆƎļƖŏɆƢķƎŨƪİķɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆ ŨįɆŝėǂɆĈƪƖļŝėƖƖɆƋƎŨĉėƖƖėƖɆǂķėƎėɆļƢɆśëŏėƖɆĉŨśśėƎĉļëŒɆƖėŝƖėɆƢŨɆ ĐŨɆƖŨș ,ŝķëŝĉėśėŝƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆƢėƖƢļŝİɆƋƎŨİƎëśśėɆŨįɆƢķėɆĉƎļƢļĉëŒɆ ĉŨŝƢƎŨŒƖɆǂķļĉķɆķëǁėɆĈėėŝɆĐėƖļİŝėĐɆƢŨɆśļƢļİëƢėɆëŝĐɆśëŝëİėɆƢķėɆ EƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖș ¶ķėɆįŨŒŒŨǂļŝİɆƎļƖŏɆƎėƋŨƎƢɆĐėƢëļŒƖɆŨƪƎɆëƋƋƎŨëĉķɆƢŨɆƎļƖŏɆśëŝëİėśėŝƢȚɆ ƢķėɆEƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆëŝĐɆƢķėɆŨëƎĐȼƖɆëƖƖėƖƖśėŝƢɆŨįɆǁļëĈļŒļƢǈș Robert Hoskin ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ 3 nëƎĉķɆǥǣǥǥ Entain plc | Annual Report 2021 78 Strategic report ¡ļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖ ëŝĐɆśėƢķŨĐŨŒŨİǈ The effective understanding, measurement, acceptance and mitigation of risk is fundamental to the Group achieving its strategic priorities. As such, over the course of the year, the Group has continued to enhance its risk management capabilities, improving its ability to identify, evaluate, monitor and manage its principal risks as well as responding to the challenges presented by new and emerging risks. Risk management structure and governance Structure ¶ķėɆEƎŨƪƋɆķëƖɆĐėǁėŒŨƋėĐɆëŝĐɆĐėƋŒŨǈėĐɆëŝɆļŝƢėİƎëƢėĐɆëŝĐɆ ƋƎŨëĉƢļǁėɆëƋƋƎŨëĉķɆƢŨɆƎļƖŏɆśëŝëİėśėŝƢɆǂļƢķɆŨƋėƎëƢļŨŝëŒɆ śëŝëİėśėŝƢɆëŝĐɆįƪŝĉƢļŨŝëŒɆƖƋėĉļëŒļƖƢƖɆëƢɆƢķėɆķėëƎƢɆŨįɆŨƪƎɆ ƋƎŨĉėƖƖėƖɆëŝĐɆİŨǁėƎŝëŝĉėɆƖƢƎƪĉƢƪƎėșɆÕėɆĉŨŝƢļŝƪėɆƢŨɆĉķëŒŒėŝİėɆ ŨƪƎƖėŒǁėƖɆƢŨɆļśƋƎŨǁėɆŨƪƎɆëĈļŒļƢǈɆƢŨɆĐėƢėĉƢȚɆƪŝĐėƎƖƢëŝĐɆëŝĐɆĐėĈëƢėɆ ƎļƖŏɆǂķļŒƖƢɆëŒƖŨɆĉŨŝƢļŝƪļŝİɆƢŨɆƖƢƎėŝİƢķėŝɆŨƪƎɆƢķƎėėɆŒļŝėƖɆŨįɆĐėįėŝĉėɆ śŨĐėŒɆƢķƎŨƪİķɆļśƋƎŨǁėĐɆƋƎŨĉėƖƖėƖɆëŝĐɆļŝǁėƖƢśėŝƢɆļŝɆƎėƖŨƪƎĉėƖșɆ {ƪƎɆǘƎƖƢɆŒļŝėɆŨįɆĐėįėŝĉėɆļƖɆŨƪƎɆĐëǈɆƢŨɆĐëǈɆĈƪƖļŝėƖƖɆŨƋėƎëƢļŨŝɆƢėëśƖɆ ëŝĐɆįƪŝĉƢļŨŝëŒȦĐļǁļƖļŨŝëŒɆƎļƖŏɆįŨƎƪśƖȚɆǂķŨɆëĉƢļǁėŒǈɆėǁëŒƪëƢėɆëŝĐɆ śëŝëİėɆƎļƖŏƖɆëƖɆƋëƎƢɆŨįɆƢķėļƎɆĐëǈɆƢŨɆĐëǈɆëĉƢļǁļƢļėƖșɆ¶ķėɆƖėĉŨŝĐɆŒļŝėɆ ŨįɆĐėįėŝĉėɆļƖɆŨƪƎɆƎļƖŏɆëŝĐɆƎėİƪŒëƢŨƎǈɆŨǁėƎƖļİķƢɆįƪŝĉƢļŨŝƖɆëŝĐɆ¡ļƖŏɆ ŨśśļƢƢėėɆǂķļĉķɆļƖɆŨǁėƎƖėėŝɆĈǈɆƢķėɆ$ļƎėĉƢŨƎɆŨįɆDļŝëŝĉļëŒɆŨŝƢƎŨŒɆ ëŝĐɆ¡ļƖŏșɆ¶ķėƖėɆŨǁėƎƖļİķƢɆįƪŝĉƢļŨŝƖɆƋƎŨǁļĐėɆŨƪƎɆĈƪƖļŝėƖƖėƖɆǂļƢķɆ ėǇƋėƎƢɆëĐǁļĉėȚɆĉķëŒŒėŝİėɆëŝĐɆëƖƖļƖƢëŝĉėɆļŝɆėŝƖƪƎļŝİɆƎļƖŏƖɆëƎėɆ ëƋƋƎŨƋƎļëƢėŒǈɆļĐėŝƢļǘėĐȚɆėǁëŒƪëƢėĐȚɆśëŝëİėĐɆëŝĐɆśļƢļİëƢėĐɆļŝɆŒļŝėɆ ǂļƢķɆƢķėɆEƎŨƪƋȼƖɆƎļƖŏɆëƋƋėƢļƢėș {ƪƎɆƢķļƎĐɆŒļŝėɆŨįɆĐėįėŝĉėɆļƖɆƋƎŨǁļĐėĐɆĈǈɆQŝƢėƎŝëŒɆƪĐļƢȚɆǂķŨɆƋƎŨǁļĐėɆ ļŝĐėƋėŝĐėŝƢɆëŝĐɆŨĈŌėĉƢļǁėɆëƖƖƪƎëŝĉėɆŨǁėƎɆŨƪƎɆƎļƖŏɆëƖƖėƖƖśėŝƢɆ ƋƎŨĉėƖƖėƖɆëŝĐɆƢķėɆĐėƖļİŝɆëŝĐɆŨƋėƎëƢļŝİɆėįįėĉƢļǁėŝėƖƖɆŨįɆŨƪƎɆƎļƖŏɆ śļƢļİëƢļŨŝɆĉŨŝƢƎŨŒɆëĉƢļǁļƢļėƖș Divisional Risk forums Functional Risk forums Digital ȩƎėİļƖƢėƎɆ ƋėƎɆƎėİļŨŝȪ Data security Retail TradingCorporate Legal, Regulatory & Compliance Technology incl. Cyber Nominations Committee ÕķļŒƖƢɆƢķėɆŨëƎĐɆļƖɆƎėƖƋŨŝƖļĈŒėɆ įŨƎɆƢķėɆëŝŝƪëŒɆƎėǁļėǂɆŨįɆƢķėɆ ƋƎļŝĉļƋëŒɆƎļƖŏɆŨįɆƎėƢėŝƢļŨŝɆŨįɆ ŏėǈɆėśƋŒŨǈėėƖȚɆëƖɆƋëƎƢɆŨįɆƢķėļƎɆ ƎėƖƋŨŝƖļĈļŒļƢļėƖɆƢķėɆpŨśļŝëƢļŨŝƖɆ ŨśśļƢƢėėɆĉŨŝƢļŝƪëŒŒǈɆƎėǁļėǂƖɆ ƖƪĉĉėƖƖļŨŝɆƋŒëŝŝļŝİɆëŝĐɆƢķėɆ ƖƪƖĉėƋƢļĈļŒļƢǈɆŨįɆƢķėɆEƎŨƪƋɆ ƢŨɆƢķėɆƎļƖŏɆŨįɆƎėƢėŝƢļŨŝɆŨįɆ ŏėǈɆėśƋŒŨǈėėƖ ESG Committee Delegated risk oversight 1 : ɆɆ©ëįėƎɆėƢƢļŝİɆëŝĐɆEëśļŝİ ɆɆLėëŒƢķȚɆƖëįėƢǈɆëŝĐɆǂėŒŒĈėļŝİ dŨƖƖɆŨįɆŏėǈɆŒŨĉëƢļŨŝƖ ¡ļƖŏƖɆëŒƖŨɆƎėǁļėǂėĐɆĉŨŝƢļŝƪëŒŒǈɆ ƪŝĐėƎɆŨśśļƢƢėėɆ¶Ũ¡țɆ¡ėİƪŒëƢŨƎǈɆ ĉŨśƋŒļëŝĉėɆëŝĐɆŒļĉėŝƖļŝİȚɆndȚɆ ¡ėƖƋŨŝƖļĈŒė İëśĈŒļŝİȚɆĐëƢëɆ ƋƎŨƢėĉƢļŨŝɆëŝĐɆƢķėɆėŝǁļƎŨŝśėŝƢ Audit Committee Delegated risk oversight 1 : ɆɆ$ëƢëɆƎėëĉķȦǈĈėƎ ɆɆ¶ėĉķŝŨŒŨİǈɆįëļŒƪƎė ɆɆ¶ëǇėƖ ɆɆ¶ƎëĐļŝİȚɆdļëĈļŒļƢǈɆëŝĐɆ ƋƎļĉļŝİɆśëŝëİėśėŝƢ Remuneration Committee ÕķļŒƖƢɆƢķėɆŨëƎĐɆļƖɆƎėƖƋŨŝƖļĈŒėɆ įŨƎɆƢķėɆëŝŝƪëŒɆƎėǁļėǂɆŨįɆƢķėɆ ƋƎļŝĉļƋëŒɆƎļƖŏɆŨįɆƎėĉƎƪļƢśėŝƢɆ ëŝĐɆƎėƢėŝƢļŨŝɆŨįɆŏėǈɆėśƋŒŨǈėėƖȚɆ ëƖɆƋëƎƢɆŨįɆƢķėļƎɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆ ƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆ ĉŨŝƢļŝƪëŒŒǈɆƎėǁļėǂƖɆƢķļƖɆƎļƖŏɆëŝĐɆ ƢķėɆśļƢļİëƢļŝİɆëĉƢļŨŝƖɆļŝɆƋŒëĉėɆƢŨɆ ƋƎėǁėŝƢɆƢķėɆƎļƖŏɆĉƎǈƖƢëŒŒļƖļŝİ Group Risk Committee PLC Board ©ƋėĉļǘĉɆƎļƖŏɆŨǁėƎƖļİķƢț ɆɆdëǂƖȚɆƎėİƪŒëƢļŨŝƖȚɆŒļĉėŝƖļŝİɆëŝĐɆƎėİƪŒëƢŨƎǈɆĉŨśƋŒļëŝĉė ɆɆėƢɆnEnɆëŝĐɆ½©Ɇ©ƢƎëƢėİǈ ɆɆQŝĉƎėëƖėĐɆĉŨƖƢɆŨįɆƋƎŨĐƪĉƢ ɆɆëŝĐėśļĉ ɆɆ¡ėĉƎƪļƢśėŝƢɆëŝĐɆƎėƢėŝƢļŨŝɆŨįɆŏėǈɆėśƋŒŨǈėėƖ ÕķļŒƖƢɆŝŨƢɆëɆƋƎļŝĉļƋëŒɆƎļƖŏȚɆƢķėɆŨëƎĐɆëŒƖŨɆƎėǁļėǂƖɆƢķėɆEƎŨƪƋȼƖɆŒļƢļİëƢļŨŝɆƎļƖŏɆŨŝɆëŝɆŨŝİŨļŝİɆĈëƖļƖ Ǥș $ėŒėİëƢėĐɆŨǁėƎƖļİķƢɆëŝĐɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆĐėėƋɆĐļǁėɆƎėǁļėǂƖɆŨįɆEƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖ 79Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ¡ėëĐɆśŨƎėɆŨŝɆŨƪƎɆİŨǁėƎŝëŝĉėɆįƎëśėǂŨƎŏț pages 95-96 QŝɆëƖƖėƖƖļŝİɆļśƋëĉƢɆëŝĐɆ ŒļŏėŒļķŨŨĐɆǂėɆëƖƖėƖƖɆƢķėɆƎļƖŏɆ ëİëļŝƖƢɆǘŝëŝĉļëŒɆƋėƎįŨƎśëŝĉėȚɆ {ƋėƎëƢļŨŝëŒɆƋƎŨĉėƖƖėƖȚɆdėİëŒɆ ëŝĐɆ¡ɆëŝĐɆLėëŒƢķɆëŝĐɆ©ëįėƢǈșȺ Stuart Smith $ļƎėĉƢŨƎɆŨįɆDļŝëŝĉļëŒɆŨŝƢƎŨŒɆëŝĐɆ¡ļƖŏ Governance ¶ķėɆŨëƎĐɆƎėĉŨİŝļƖėƖɆƢķėɆĈėŝėǘƢƖɆŨįɆėŝƖƪƎļŝİɆļƢƖɆƎļƖŏɆśëŝëİėśėŝƢɆ ƋƎŨĉėƖƖėƖɆëƎėɆļŝɆŒļŝėɆǂļƢķɆƢķėɆ½bɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆŨĐėɆëŝĐɆ ƢķėɆėǇƋėĉƢëƢļŨŝƖɆŨįɆŒļƖƢėĐɆĉŨśƋëŝļėƖșɆƖɆƋëƎƢɆŨįɆƢķļƖɆƋƎŨĉėƖƖɆǂėɆ ŝŨƢɆŨŝŒǈɆëƖƖėƖƖɆƎļƖŏɆĈƪƢɆëŒƖŨɆėǁëŒƪëƢėɆƢķėɆŒėǁėŒɆŨįɆƎļƖŏɆƢķėɆEƎŨƪƋɆļƖɆ ǂļŒŒļŝİɆƢŨɆƢëŏėȚɆëŒƖŨɆƎėįėƎƎėĐɆƢŨɆëƖɆƎļƖŏɆëƋƋėƢļƢėșɆ¶ķļƖɆƋƎŨĉėƖƖɆįŨƎśƖɆ ëɆŏėǈɆƋëƎƢɆŨįɆƢķėɆ,ŝƢėƎƋƎļƖėɆ¡ļƖŏɆnëŝëİėśėŝƢɆȩȹ,¡nȺȪɆDƎëśėǂŨƎŏșɆ ¶ķėɆ,¡nɆDƎëśėǂŨƎŏɆļƖɆƢķėɆǁėķļĉŒėɆǂķļĉķɆĐėǘŝėƖɆëŝĐɆĐėŒļǁėƎƖɆƎļƖŏɆ śëŝëİėśėŝƢɆëĉƎŨƖƖɆƢķėɆĈƪƖļŝėƖƖɆëŝĐɆļŝĉŒƪĐėƖɆëɆƖƢëŝĐëƎĐɆƎļƖŏɆ ƖĉŨƎļŝİɆśëƢƎļǇɆƢŨɆėŝƖƪƎėɆëɆĉŨŝƖļƖƢėŝƢɆëƋƋƎŨëĉķɆƢŨɆƢķėɆļĐėŝƢļǘĉëƢļŨŝȚɆ śėëƖƪƎėśėŝƢɆëŝĐɆƎėƖƋŨŝƖėɆƢŨɆƎļƖŏș ¶ķėɆEƎŨƪƋɆ¡ļƖŏɆŨśśļƢƢėėȚɆĉķëļƎėĐɆĈǈɆƢķėɆķļėįɆEŨǁėƎŝëŝĉėɆ {įǘĉėƎȚɆļƖɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƢķėɆ,¡nɆëŝĐɆEƎŨƪƋɆ¡ļƖŏɆnëŝëİėśėŝƢɆ ƋŨŒļĉǈșɆ¶ķėɆŨśśļƢƢėėɆśėėƢƖɆįŨƎśëŒŒǈɆįŨƪƎɆƢļśėƖɆėëĉķɆǈėëƎɆ ëŝĐɆĉŨśƋƎļƖėƖɆŨƋėƎëƢļŨŝëŒɆśëŝëİėśėŝƢɆëŝĐɆįƪŝĉƢļŨŝëŒɆëƎėëɆ ƖƋėĉļëŒļƖƢƖșɆÕķļŒƖƢɆƢķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎƖɆëŒŒɆļĐėŝƢļǘėĐɆƎļƖŏƖɆƢŨɆ ƢķėɆĈƪƖļŝėƖƖȚɆļƢɆįŨĉƪƖėƖɆŨŝɆƢķėɆƋƎļŝĉļƋëŒɆƎļƖŏƖș ¶ķėɆ,ŝƢëļŝɆEƎŨƪƋɆ¡ļƖŏɆnëŝëİėśėŝƢɆƋŨŒļĉǈɆĐėƢëļŒƖɆķŨǂɆƎļƖŏƖɆëƎėɆ śëŝëİėĐɆëŝĐɆśŨŝļƢŨƎėĐșɆDŨƎɆėëĉķɆƎļƖŏɆļĐėŝƢļǘėĐȚɆƢķėɆļśƋëĉƢȚɆ ŒļŏėŒļķŨŨĐȚɆĉŨŝƖėƍƪėŝĉėȚɆƎļƖŏɆŨǂŝėƎɆȩ,ǇėĉƪƢļǁėɆŨśśļƢƢėėɆśėśĈėƎȪɆ ëŝĐɆŨƋėƎëƢļŨŝëŒɆŒėëĐɆëƎėɆļĐėŝƢļǘėĐșɆ¶ķėɆƎļƖŏɆŨǂŝėƎɆëŝĐɆŨƋėƎëƢļŨŝëŒɆ ŒėëĐɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆļĐėŝƢļįǈļŝİɆƢķėɆƎėŒėǁëŝƢɆśļƢļİëƢļŝİɆĉŨŝƢƎŨŒƖɆ ëŝĐɆƎėśėĐļëŒɆëĉƢļŨŝƖɆƎėƍƪļƎėĐɆƢŨɆśëŝëİėɆƎļƖŏɆëƋƋƎŨƋƎļëƢėŒǈșɆ ¶ķėɆ¡ļƖŏɆŨśśļƢƢėėɆŨƋļŝėɆŨŝɆƢķėɆëĐėƍƪëĉǈɆŨįɆƢķėɆĈƪƖļŝėƖƖėƖɆ ƎļƖŏɆśļƢļİëƢļŨŝɆǂļƢķɆQŝƢėƎŝëŒɆƪĐļƢɆƢėƖƢļŝİɆƢķėɆėįįėĉƢļǁėŝėƖƖɆŨįɆƢķėɆ ĉŨŝƢƎŨŒƖɆļĐėŝƢļǘėĐș ¶ķėɆŨëƎĐɆśëļŝƢëļŝƖɆëŝĐɆƎėǁļėǂƖɆëɆĉŨŝƖŨŒļĐëƢėĐɆǁļėǂɆŨįɆŏėǈɆƎļƖŏƖɆ ëĉƎŨƖƖɆëŒŒɆĈƪƖļŝėƖƖɆƖėİśėŝƢƖɆëŝĐɆƢëŏėƖɆëĐǁļĉėɆįƎŨśɆƢķėɆEƎŨƪƋɆ¡ļƖŏɆ ŨśśļƢƢėėɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƎļƖŏɆëƋƋėƢļƢėɆëŝĐɆƖƢƎëƢėİǈɆëƖɆǂėŒŒɆëƖɆƢķėɆ ėįįėĉƢļǁėŝėƖƖɆŨįɆŨƪƎɆƎļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖėƖșɆ¶ķėɆŨëƎĐɆëŝĐɆ ļƢƖɆƖƪĈȯŨśśļƢƢėėƖɆëŒƖŨɆƪŝĐėƎƢëŏėɆëɆĐėėƋȯĐļǁėɆƎėǁļėǂɆŨįɆëŒŒɆŨįɆƢķėɆ EƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆŨŝɆƎŨƢëƢļŨŝɆƢķƎŨƪİķŨƪƢɆƢķėɆǈėëƎșɆ ÕķļŒƖƢɆǂėɆƎėĉŨİŝļƖėɆƢķëƢɆǂėɆķëǁėɆŒļśļƢėĐɆĉŨŝƢƎŨŒɆŨǁėƎɆĉėƎƢëļŝɆƎļƖŏƖɆ įëĉėĐɆĈǈɆƢķėɆEƎŨƪƋȚɆƖƪĉķɆëƖɆƢķėɆĉƪƎƎėŝƢɆƋëŝĐėśļĉȚɆśëĉƎŨėĉŨŝŨśļĉɆ ėǁėŝƢƖɆëŝĐɆƢķėɆĉŨśƋŒėǇɆƎėİƪŒëƢŨƎǈɆėŝǁļƎŨŝśėŝƢɆļŝɆǂķļĉķɆǂėɆ ŨƋėƎëƢėȚɆǂėɆĉŨŝƢļŝƪėɆƢŨɆśŨŝļƢŨƎɆĐėǁėŒŨƋśėŝƢƖɆļŝɆƢķėƖėɆëƎėëƖɆ ĉŒŨƖėŒǈɆëŝĐɆļĐėŝƢļįǈɆėśėƎİļŝİɆƎļƖŏƖɆƢķƎŨƪİķɆķŨƎļǒŨŝɆƖĉëŝŝļŝİɆǂķļŒƖƢɆ ėŝƖƪƎļŝİɆƢķëƢɆƢķėɆEƎŨƪƋɆķëƖɆëƋƋƎŨƋƎļëƢėɆƎėƖƋŨŝƖėɆƋŒëŝƖɆļŝɆƋŒëĉėș ¶ķėɆƎļƖŏɆśëŝëİėśėŝƢɆëƋƋƎŨëĉķɆļƖɆƖƪĈŌėĉƢɆƢŨɆĉŨŝƢļŝƪŨƪƖɆƎėǁļėǂɆëŝĐɆ ƪƋĐëƢėƖɆļŝɆŨƎĐėƎɆƢŨɆƎėǙėĉƢɆŝėǂɆëŝĐɆĐėǁėŒŨƋļŝİɆļƖƖƪėƖɆǂķļĉķɆśļİķƢɆ ļśƋëĉƢɆĈƪƖļŝėƖƖɆƖƢƎëƢėİǈșɆ,śėƎİļŝİɆŨƎɆƢŨƋļĉëŒɆƎļƖŏƖȚɆƖƪĉķɆëƖɆƢķėɆ ƋëŝĐėśļĉɆŨƎɆƎėǇļƢȚɆëƎėɆėǇëśļŝėĐɆƢŨɆƪŝĐėƎƖƢëŝĐɆƢķėļƎɆƖļİŝļǘĉëŝĉėɆ ƢŨɆƢķėɆĈƪƖļŝėƖƖșɆ How risks are measured ƖɆƋëƎƢɆŨįɆƢķėɆƎļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖȚɆëŒŒɆƎļƖŏƖɆļĐėŝƢļǘėĐɆëƎėɆ śėëƖƪƎėĐɆëİëļŝƖƢɆëɆĐėǘŝėĐɆƖėƢɆŨįɆĉƎļƢėƎļëɆƪƖļŝİɆëɆƖƢëŝĐëƎĐɆǨɆǇɆǨɆ ƎļƖŏɆśëƢƎļǇɆǂķļĉķɆëƖƖėƖƖėƖɆĈŨƢķɆƢķėɆļśƋëĉƢɆëŝĐɆƢķėɆŒļŏėŒļķŨŨĐɆŨįɆëɆ ƎļƖŏɆëƎļƖļŝİșɆQŝɆëƖƖėƖƖļŝİɆļśƋëĉƢɆëŝĐɆŒļŏėŒļķŨŨĐɆǂėɆëƖƖėƖƖɆƢķėɆƎļƖŏɆ ëİëļŝƖƢɆǘŝëŝĉļëŒɆƋėƎįŨƎśëŝĉėȚɆ{ƋėƎëƢļŨŝëŒɆƋƎŨĉėƖƖėƖȚɆdėİëŒɆëŝĐɆ ¡ɆëŝĐɆLėëŒƢķɆëŝĐɆ©ëįėƢǈșɆQŝɆƋëƎƢļĉƪŒëƎț The potential impact/consequence to the Group should the risk materialise: – ¶ķėɆļśƋëĉƢɆŨįɆėëĉķɆƎļƖŏɆļƖɆśėëƖƪƎėĐɆǂļƢķɆƎėįėƎėŝĉėɆƢŨɆƢķėɆ ǘŝëŝĉļëŒɆļśƋŒļĉëƢļŨŝƖɆȩƪŝĐėƎŒǈļŝİɆ,Q¶$ɆëŝĐɆĉëƖķȪȚɆļƢƖɆ ƋŨƢėŝƢļëŒɆŨƋėƎëƢļŨŝëŒɆļśƋëĉƢɆȩļŝĉŒƪĐļŝİɆƢķėɆƖėĉƪƎļƢǈɆŨįɆŨƪƎɆ ĐëƢëȪȚɆƢķėɆėįįėĉƢɆŨŝɆƢķėɆƎėƋƪƢëƢļŨŝɆŨįɆŨƪƎɆĈƎëŝĐƖɆëŝĐɆǂķėƢķėƎɆ ŨƎɆŝŨƢɆļƢɆëįįėĉƢƖɆŨƪƎɆĉŨśśļƢśėŝƢɆƢŨɆķėëŒƢķɆëŝĐɆƖëįėƢǈșɆ ¶ķėɆļśƋëĉƢɆļƖɆśėëƖƪƎėĐɆŨŝɆëɆƖĉëŒėȚɆǂķėƎėɆǤɆļƖɆŒŨǂȚɆǂļƢķɆŒļśļƢėĐɆ ĐëśëİėɆƢŨɆëɆśļŝŨƎɆƖƢëŏėķŨŒĐėƎȚɆëŝĐɆǨɆĈėļŝİɆƖėǁėƎėȚɆǂķļĉķɆ śëǈɆķëǁėɆëɆƖƪĈƖƢëŝƢļëŒɆļśƋëĉƢɆŨŝɆƢķėɆEƎŨƪƋɆëįįėĉƢļŝİɆśëŝǈɆ ŏėǈɆƖƢëŏėķŨŒĐėƎƖȚɆļŝĉŒƪĐļŝİɆĉƪƖƢŨśėƎƖș The likelihood of the risk materialising: – ¶ķėɆėǇƢėŝƢɆƢŨɆǂķļĉķɆëŝɆėǁėŝƢɆļƖɆŒļŏėŒǈɆƢŨɆŨĉĉƪƎɆļƖɆƖĉŨƎėĐɆ įƎŨśɆǤȯǨȚɆǤɆĈėļŝİɆƎėśŨƢėɆļșėșɆǁėƎǈɆƪŝŒļŏėŒǈɆƢŨɆŨĉĉƪƎɆëŝĐɆǨɆ ĈėļŝİɆƋƎŨĈëĈŒėɆļșėșɆǂķėƎėɆļƢɆķëƖɆƢķėɆƋŨƢėŝƢļëŒɆƢŨɆŨĉĉƪƎɆŨƎɆķëƖɆ ëŒƎėëĐǈɆķëƋƋėŝėĐș ¶ķėɆƋƎŨĐƪĉƢɆŨįɆĈŨƢķɆƖĉŨƎėƖɆİļǁėƖɆƎļƖėɆƢŨɆƢķėɆƎļƖŏɆƖĉŨƎėɆƢķëƢɆ ĐėƢėƎśļŝėƖɆƢķėɆƎėŒëƢļǁėɆļśƋŨƎƢëŝĉėɆŨįɆƢķėɆļŝĐļǁļĐƪëŒɆƎļƖŏș Risk management process and methodology ĉŨŝƢļŝƪėĐ Entain plc | Annual Report 2021 80 Strategic report ƎļŝĉļƋëŒɆ¡ļƖŏƖ The principal risks and uncertainties, ǂķļĉķɆëƎėɆĉŨŝƖļĐėƎėĐɆƢŨɆķëǁėɇëɆ śëƢėƎļëŒɆļśƋëĉƢɇŨŝɆƢķėɆEƎŨƪƋȼƖɆŒŨŝİȯ term performance and achievement ŨįɆƖƢƎëƢėİǈȚɇëƎėɆƖėƢɆŨƪƢɆŨŝɇƢķėɆ table opposite. ¶ķėɆƎļƖŏƖɆƎėƋƎėƖėŝƢɆëɆƖŝëƋƖķŨƢɆëƢɆëɆƋŨļŝƢɆ ļŝɇƢļśėȚɆëŝĐɆëƖɆƢķėɆėŝǁļƎŨŝśėŝƢɆǂėɆŨƋėƎëƢėɆ ļŝɆļƖɆĉŨŝƖƢëŝƢŒǈɆėǁŨŒǁļŝİȚɆŝėǂɆƎļƖŏƖɆśëǈɆ ëƎļƖėȚɆƢķėɆƋŨƢėŝƢļëŒɆļśƋëĉƢɆŨįɆŏŝŨǂŝɆ ƎļƖŏƖɆśëǈɆļŝĉƎėëƖėɆŨƎɆĐėĉƎėëƖėȚɆëŝĐɆŨƪƎɆ ëƖƖėƖƖśėŝƢɆŨįɆëɆƎļƖŏɆśëǈɆĉķëŝİėșɆ¶ķėǈɆĐŨɆ ŝŨƢɆļŝĉŒƪĐėɆëŒŒɆƢķŨƖėɆƎļƖŏƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆ ƢķėɆEƎŨƪƋȼƖɆëĉƢļǁļƢļėƖɆëŝĐɆëƎėɆŝŨƢɆƖėƢɆŨƪƢɆ ļŝɇëŝǈɆŨƎĐėƎɆŨįɆƋƎļŨƎļƢǈș ¶ķļƖɆļƖɆŝŨƢɆļŝƢėŝĐėĐɆƢŨɆĈėɆëŝɆėǇķëƪƖƢļǁėɆëŝĐɆ ėǇƢėŝƖļǁėɆëŝëŒǈƖļƖɆŨįɇëŒŒɇƎļƖŏƖɆǂķļĉķɆśëǈɆ ëįįėĉƢɆƢķėɆEƎŨƪƋș ¡ėëĐɆśŨƎėɆŨŝɆƢķėɆŨëƎĐȼƖɆƎėǁļėǂɆŨįɆƎļŝĉļƋëŒɆ ¡ļƖŏƖɆŨŝțɆpage 101 Principal Risk/Uncertainty ¶ķėɆEƎŨƪƋɆŨƋėƎëƢļŨŝƖɆĐėƋėŝĐɆŨŝɆƢķėɆ įëļƎŝėƖƖɆŨįɆļƢƖɆİëśļŝİɆėŝİļŝėƖȚɆƢķėɆ ƋƎŨĉėƖƖļŝİɆŨįɆĉƪƖƢŨśėƎɆĐëƢëɆȩƋƎŨƢėĉƢėĐɆ ĈǈɆƖƢƎļĉƢɆĐëƢëɆƋƎŨƢėĉƢļŨŝɆëŝĐɆƋƎļǁëĉǈɆŒëǂƖɆ ļŝɆëŒŒɆŌƪƎļƖĐļĉƢļŨŝƖɆļŝɆǂķļĉķɆƢķėɆEƎŨƪƋɆ ŨƋėƎëƢėƖȪɆëŝĐɆƢķėɆëĈļŒļƢǈɆŨįɆĉƪƖƢŨśėƎƖɆƢŨɆ ëĉĉėƖƖɆļƢƖɆƖėƎǁļĉėƖɆŨŝɆëɆǥǧǇǪɆĈëƖļƖșɆ ¶ķėɆEƎŨƪƋɆļƖɆėǇƋŨƖėĐɆƢŨɆƢķėɆƎļƖŏɆƢķëƢɆƢķėɆ ļŝƢėİƎļƢǈɆŨįɆİëśļŝİȚɆĉŨŝǘĐėŝƢļëŒļƢǈɆŨįɆ ĐëƢëɆŨƎɆëǁëļŒëĈļŒļƢǈɆŨįɆļƢƖɆƖėƎǁļĉėƖɆǂŨƪŒĐɆ ĈėɆĉŨśƋƎŨśļƖėĐɆƢķƎŨƪİķɆëɆĉǈĈėƎëƢƢëĉŏɆ ŨƎɆëɆĈƎėëĉķɆļŝɆĐëƢëɆƖėĉƪƎļƢǈȚɆǂķļĉķɆǂŨƪŒĐɆ ļśƋëĉƢɆƢķėɆƢƎƪƖƢɆŨįɆļƢƖɆĉƪƖƢŨśėƎƖɆëŝĐɆ ĉŨƪŒĐɆƎėƖƪŒƢɆļŝɆƋƎŨƖėĉƪƢļŨŝƖɆļŝĉŒƪĐļŝİɆ ǘŝëŝĉļëŒɆƋėŝëŒƢļėƖș How we manage and mitigate the risk ¶ķėɆEƎŨƪƋɆķëƖɆĐėĐļĉëƢėĐɆǈĈėƎƖėĉƪƎļƢǈɆ ëŝĐɆ$ëƢëɆƎļǁëĉǈɆįƪŝĉƢļŨŝƖɆėŝƢƎƪƖƢėĐɆ ǂļƢķɆƋƎŨƢėĉƢļŝİɆƢķėɆƖėĉƪƎļƢǈɆŨįɆëŒŒɆ ļƢƖɆŨƋėƎëƢļŨŝƖșɆ ¶ķėɆįƪŝĉƢļŨŝƖɆėŝĉëƋƖƪŒëƢėɆƢķėɆŝėĉėƖƖëƎǈɆ ļŝȯķŨƪƖėɆėǇƋėƎƢļƖėɆƢŨɆëĐëƋƢɆƢŨɆėśėƎİļŝİɆ ƢķƎėëƢƖșɆ{ƋėƎëƢļŝİɆƪŝĐėƎɆëɆQ©{ǥǪǣǣǤɆ QŝįŨƎśëƢļŨŝɆ©ėĉƪƎļƢǈɆnëŝëİėśėŝƢɆ ©ǈƖƢėśɆĉėƎƢļǘĉëƢļŨŝȚɆƢķėɆǈĈėƎƖėĉƪƎļƢǈɆ ĉŨŝƢƎŨŒƖɆëŝĐɆëƖƖŨĉļëƢėĐɆķëƎśŨŝļƖėĐɆ ƋŨŒļĉļėƖɆëƎėɆĉŨŝƖƢëŝƢŒǈɆĈėļŝİɆėǁëŒƪëƢėĐɆ ëŝĐɆëƋƋŒļėĐȚɆǂķėƎėɆĐėėśėĐɆƎėŒėǁëŝƢɆ ëĉƎŨƖƖɆƢķėɆėŝŒëƎİėĐɆEƎŨƪƋșɆ ¶ķėɆ$ëƢëɆƎļǁëĉǈɆƢėëśȚɆŒėĐɆĈǈɆƢķėɆ EƎŨƪƋȼƖɆķļėįɆƎļǁëĉǈɆ{įǘĉėƎɆļƖɆƢëƖŏėĐɆ ǂļƢķɆëŒļİŝļŝİɆƢķėɆEƎŨƪƋȼƖɆĐëƢëɆƋƎļǁëĉǈɆ ƖƢƎëƢėİǈɆëŝĐɆİŨǁėƎŝëŝĉėɆƖƢƎƪĉƢƪƎėȚɆ ƋƎŨǁļĐļŝİɆƎėİƪŒëƎɆƪƋĐëƢėƖɆƢŨɆƢķėɆEƎŨƪƋȼƖɆ ,©EɆŨśśļƢƢėėșɆ Strategic relevance ƎǈƖƢëŒŒļƖëƢļŨŝɆĉŨƪŒĐɆŒėëĐɆƢŨɆƖļİŝļǘĉëŝƢɆ ƎėƋƪƢëƢļŨŝëŒɆëŝĐɆŨƋėƎëƢļŨŝëŒɆļƖƖƪėƖɆ ƢķëƢɆŒļśļƢɆƢķėɆEƎŨƪƋƖɆëĈļŒļƢǈɆƢŨɆĐƎļǁėɆ {ŝŒļŝėɆİƎŨǂƢķș Link to strategic objective: ŒŒɆŨĈŌėĉƢļǁėƖ Principal Risk/Uncertainty ¡ėİƪŒëƢŨƎǈȚɆŒėİļƖŒëƢļǁėɆëŝĐɆǘƖĉëŒɆƎėİļśėƖɆ įŨƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆļŝɆŏėǈɆśëƎŏėƢƖɆ ëƎŨƪŝĐɆƢķėɆǂŨƎŒĐɆĉëŝɆĉķëŝİėȚɆƖŨśėƢļśėƖɆ ëƢɆƖķŨƎƢɆŝŨƢļĉėșɆ ©ƪĉķɆĉķëŝİėƖɆĉŨƪŒĐɆĈėŝėǘƢɆŨƎɆķëǁėɆ ëŝɆëĐǁėƎƖėɆėįįėĉƢɆŨŝɆƢķėɆEƎŨƪƋɆëŝĐɆ ëĐĐļƢļŨŝëŒɆĉŨƖƢƖɆśļİķƢɆĈėɆļŝĉƪƎƎėĐɆļŝɆ ŨƎĐėƎɆƢŨɆĉŨśƋŒǈɆǂļƢķɆëŝǈɆŝėǂɆŒëǂƖɆŨƎɆ ƎėİƪŒëƢļŨŝƖɆļŝɆśƪŒƢļƋŒėɆŌƪƎļƖĐļĉƢļŨŝƖșɆ How we manage and mitigate the risk ¶ķėɆEƎŨƪƋɆĉŒŨƖėŒǈɆśŨŝļƢŨƎƖɆƎėİƪŒëƢŨƎǈȚɆ ŒėİļƖŒëƢļǁėɆëŝĐɆǘƖĉëŒɆĐėǁėŒŨƋśėŝƢƖɆļŝɆŏėǈɆ śëƎŏėƢƖȚɆëŒŒŨǂļŝİɆƢķėɆEƎŨƪƋɆƢŨɆëƖƖėƖƖȚɆ ëĐëƋƢɆëŝĐɆƢëŏėƖɆƢķėɆŝėĉėƖƖëƎǈɆëĉƢļŨŝɆ ǂķėƎėɆëƋƋƎŨƋƎļëƢėșɆ nëŝëİėśėŝƢɆƢëŏėɆėǇƢėƎŝëŒɆëĐǁļĉėȚɆ ǂķļĉķɆļŝĉŨƎƋŨƎëƢėƖɆƎļƖŏɆėǁëŒƪëƢļŨŝɆŨįɆ ļŝĐļǁļĐƪëŒɆƢėƎƎļƢŨƎļėƖșɆQƢɆëŒƖŨɆėŝİëİėƖɆ ǂļƢķɆƢķėɆƎėŒėǁëŝƢɆƎėİƪŒëƢŨƎǈɆĈŨĐļėƖɆļŝɆ ƋƎŨśŨƢļŝİɆŒļĉėŝƖļŝİɆƖŨŒƪƢļŨŝƖɆƢķëƢɆƋƎŨǁļĐėɆ ĉŨśśėƎĉļëŒŒǈɆǁļëĈŒėɆŨƋƋŨƎƢƪŝļƢļėƖɆįŨƎɆ ƎėƖƋŨŝƖļĈŒėɆŨŝŒļŝėɆİëśļŝİɆŨƋėƎëƢŨƎƖșɆ ¡ėİƪŒëƢŨƎǈɆƪƋĐëƢėƖɆëƎėɆƋƎŨǁļĐėĐɆŨŝɆ ëɆǂėėŏŒǈɆĈëƖļƖɆƢŨɆƖėŝļŨƎɆśëŝëİėśėŝƢɆ ǂļƢķɆƪƋĐëƢėƖɆƋƎŨǁļĐėĐɆƢŨɆƢķėɆŨëƎĐɆ ėëĉķɆśŨŝƢķɆëŝĐɆĐļƖĉƪƖƖėĐɆëƢɆėǁėƎǈɆ ŨëƎĐɆśėėƢļŝİșɆ Strategic relevance ÕķļŒƖƢɆĉķëŝİļŝİɆƎėİƪŒëƢŨƎǈɆëŝĐɆƢëǇɆ ƎėİļśėƖɆŨįįėƎɆŨƋƋŨƎƢƪŝļƢļėƖɆƢŨɆƢķėɆEƎŨƪƋɆ ëƖɆǂėŒŒɆëƖɆƋŨƖļŝİɆƎļƖŏƖȚɆëɆƖļİŝļǘĉëŝƢɆ ëĐǁėƎƖėɆĉķëŝİėɆļŝɆŌƪƎļƖĐļĉƢļŨŝƖɆļŝɆ ǂķļĉķɆƢķėɆEƎŨƪƋɆŨƋėƎëƢėƖɆĉŨƪŒĐɆķëǁėɆëɆ ƖļİŝļǘĉëŝƢɆļśƋëĉƢɆŨŝɆƢķėɆEƎŨƪƋȼƖɆįƪƢƪƎėɆ ƋƎŨǘƢëĈļŒļƢǈɆëŝĐɆĉëƖķɆİėŝėƎëƢļŨŝș QŝɆëĐĐļƢļŨŝȚɆĉķëŝİėƖɆļŝɆƎėİƪŒëƢļŨŝɆśëǈɆ ƎėƍƪļƎėɆƢķėɆEƎŨƪƋɆƢŨɆĉķëŝİėɆƋƎŨĉėĐƪƎėƖɆ ëŝĐɆƋŨŒļĉļėƖɆļŝɆŨƎĐėƎɆƢŨɆëĐķėƎėɆƢŨɆ ļƢƖɆĉŨśśļƢśėŝƢɆŨįɆƎėƖƋŨŝƖļĈļŒļƢǈɆ ëŝĐɆƖƪƖƢëļŝëĈļŒļƢǈș Link to strategic objective: ǤȚǥȚǦɆʁɆǨ Data Breach and Cyber Security ķļėįɆ{ƋėƎëƢļŝİɆ{įǘĉėƎɆëŝĐɆ ķļėįɆ¶ėĉķŝŨŒŨİǈɆ{įǘĉėƎ Risk category ¶ėĉķŝŨŒŨİǈ dėİëŒɆëŝĐɆƎėİƪŒëƢŨƎǈ ¡ėƋƪƢëƢļŨŝëŒ DļŝëŝĉļëŒ Impact: Lļİķ Likelihood: Lļİķ Oversight:ɆƪĐļƢɆŨśśļƢƢėė Laws, Regulations, Licensing and Regulatory Compliance ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ Risk category ŨśśėƎĉļëŒ dėİëŒɆëŝĐɆƎėİƪŒëƢŨƎǈ ¡ėƋƪƢëƢļŨŝëŒ DļŝëŝĉļëŒ Impact: Lļİķ Likelihood: nėĐļƪś Oversight: ŨëƎĐ 81 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Key: ¡ļƖŏɆļŝĉƎėëƖėĐ ¡ļƖŏɆĐėĉƎėëƖėĐ ¡ļƖŏɆƖƢëƢļĉ pėǂɆƎļƖŏ Technology Failure ķļėįɆ{ƋėƎëƢļŝİɆ{įǘĉėƎɆëŝĐɆ ķļėįɆ¶ėĉķŝŨŒŨİǈɆ{įǘĉėƎ Risk category ¶ėĉķŝŨŒŨİǈ dėİëŒɆëŝĐɆƎėİƪŒëƢŨƎǈ ¡ėƋƪƢëƢļŨŝëŒ DļŝëŝĉļëŒ Impact: Lļİķ Likelihood: dŨǂ Oversight:ɆƪĐļƢɆŨśśļƢƢėė Principal Risk/Uncertainty ¶ķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŨŝƖɆëƎėɆķļİķŒǈɆ ĐėƋėŝĐėŝƢɆŨŝɆƢėĉķŝŨŒŨİǈɆëŝĐɆëĐǁëŝĉėĐɆ ļŝįŨƎśëƢļŨŝɆƖǈƖƢėśƖɆëŝĐɆƢķėƎėɆļƖɆëɆ ƎļƖŏɆƢķëƢɆƖƪĉķɆƢėĉķŝŨŒŨİǈɆŨƎɆƖǈƖƢėśƖɆ ĉŨƪŒĐɆįëļŒș QŝɆƋëƎƢļĉƪŒëƎȚɆëŝǈɆĐëśëİėɆƢŨȚɆŨƎɆ įëļŒƪƎėɆŨįɆŨŝŒļŝėɆƖǈƖƢėśƖɆëŝĐɆƖėƎǁėƎƖȚɆ ėŒėĉƢƎŨŝļĉɆƋŨļŝƢɆŨįɆƖëŒėɆƖǈƖƢėśƖɆëŝĐɆ ėŒėĉƢƎŨŝļĉɆĐļƖƋŒëǈɆƖǈƖƢėśƖɆĉŨƪŒĐɆƎėƖƪŒƢɆ ļŝɆļŝƢėƎƎƪƋƢļŨŝƖɆƢŨɆƢƎëĐļŝİɆëŝĐɆĉƪƖƢŨśėƎɆ ƖėƎǁļĉėɆƖǈƖƢėśƖș How we manage and mitigate the risk ¶ķėɆEƎŨƪƋȼƖɆƢėĉķŝŨŒŨİǈɆƎėƖļŒļėŝĉėɆŒėǁėŒƖɆ ëƎėɆśëƢƪƎėȚɆėƖƢëĈŒļƖķėĐɆëŝĐɆƖƪƋƋŨƎƢėĐɆ ĈǈɆƎŨĈƪƖƢɆŨƋėƎëƢļŨŝëŒɆƋƎŨĉėĐƪƎėƖɆëŝĐɆ ĈƪƖļŝėƖƖɆĉŨŝƢļŝƪļƢǈɆƋŒëŝƖșɆ ŒŒɆĉƎļƢļĉëŒɆƎėǁėŝƪėɆİėŝėƎëƢļŝİɆƖǈƖƢėśƖɆ ëƎėɆĈƪļŒƢɆƢŨɆśļƖƖļŨŝɆĉƎļƢļĉëŒɆëŝĐɆķļİķɆ ëǁëļŒëĈļŒļƢǈɆƖƢëŝĐëƎĐƖɆǂļƢķɆëŒŒɆŨƋėƎëƢļŨŝëŒɆ ĐëƢëɆëĉƎŨƖƖɆƢķėɆėĉŨƖǈƖƢėśɆƋƎŨƢėĉƢėĐȚɆ ƎėƋŒļĉëƢėĐȚɆëŝĐɆƖëįėİƪëƎĐėĐșɆ ƖɆƋëƎƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆƢėĉķŝŨŒŨİǈɆ ƖƢƎëƢėİǈɆëŝĐɆŨĈŌėĉƢļǁėƖɆǂėɆëƎėɆ ĉŨŝƢļŝƪŨƪƖŒǈɆėŝķëŝĉļŝİɆŨƪƎɆƋƎŨĉėƖƖėƖɆ ëŝĐɆśëŏļŝİɆįƪƎƢķėƎɆļśƋƎŨǁėśėŝƢƖɆ ëŝĐȚɆǂķėƎėɆŝėĉėƖƖëƎǈȚɆƢŨɆëƪƢŨśëƢėɆ ƢķėɆEƎŨƪƋȼƖɆįƪŒŒɆİėŨİƎëƋķļĉëŒɆĐļƖëƖƢėƎɆ ƎėĉŨǁėƎǈɆĉëƋëĈļŒļƢǈș Strategic relevance ©ļİŝļǘĉëŝƢɆƢėĉķŝŨŒŨİǈɆįëļŒļŝİƖɆŨƎɆ ƋƎŨĐƪĉƢɆŨƪƢëİėɆļƖɆŒļŏėŒǈɆƢŨɆļśƋëĉƢɆƢķėɆ EƎŨƪƋȼƖɆëĈļŒļƢǈɆƢŨɆëƢƢƎëĉƢɆëŝĐɆƎėƢëļŝɆƢķėɆ ĉƪƖƢŨśėƎƖɆƎėƍƪļƎėĐɆƢŨɆĐėŒļǁėƎɆƢķėɆEƎŨƪƋȼƖɆ İƎŨǂƢķɆƖƢƎëƢėİǈșɆ Link to strategic objective: ŒŒɆŨĈŌėĉƢļǁėƖ Principal Risk/Uncertainty ¶ķėɆEƎŨƪƋɆļƖɆƖƪĈŌėĉƢɆƢŨɆëɆƎëŝİėɆŨįɆ ƢëǇėƖȚɆĐƪƢļėƖɆëŝĐɆŒėǁļėƖɆļŝɆśëŝǈɆŨįɆƢķėɆ ĉŨƪŝƢƎļėƖɆǂķėƎėɆǂėɆķëǁėɆŨƋėƎëƢļŨŝƖɆ ŨƎɆļŝɆǂķļĉķɆŨƪƎɆĉƪƖƢŨśėƎƖɆëƎėɆŒŨĉëƢėĐșɆ ¶ķėɆƢëǇėƖɆļśƋŨƖėĐɆƪƋŨŝɆĈėƢƢļŝİɆëŝĐɆ İëśļŝİɆĉŨśƋëŝļėƖɆķëǁėɆĉķëŝİėĐɆŨǁėƎɆ ƢļśėɆëŝĐɆĉŨŝƢļŝƪėɆƢŨɆĉķëŝİėșɆQŝɆëĐĐļƢļŨŝɆ ƢŨɆĉķëŝİļŝİɆƢëǇėƖȚɆİļǁėŝɆƢķėɆEƎŨƪƋȼƖɆ İėŨİƎëƋķļĉëŒɆĐļǁėƎƖļƢǈȚɆƢķėɆŝëƢƪƎėɆŨįɆ ƢëǇɆëįįëļƎƖɆĉëŝɆĈėɆĉŨśƋŒļĉëƢėĐɆǂļƢķɆ ĐļįįėƎļŝİɆŒėİëŒɆļŝƢėƎƋƎėƢëƢļŨŝɆƎėİëƎĐļŝİɆ ƢķėɆƖĉŨƋėɆëŝĐɆƖĉëŒėɆŨįɆƢëǇëƢļŨŝșɆŨƢķɆŨįɆ ƢķėƖėɆįëĉƢŨƎƖɆśėëŝɆƢķėɆŒėǁėŒƖɆŨįɆƢëǇëƢļŨŝɆ ƢŨɆǂķļĉķɆƢķėɆEƎŨƪƋɆļƖɆėǇƋŨƖėĐɆƢŨɆśëǈɆ ĉķëŝİėɆļŝɆƢķėɆįƪƢƪƎėș How we manage and mitigate the risk ¶ķėɆEƎŨƪƋȼƖɆƢëǇɆƖƢƎëƢėİǈɆļƖɆëƋƋƎŨǁėĐɆ ëŝŝƪëŒŒǈɆĈǈɆƢķėɆŨëƎĐɆŨįɆ$ļƎėĉƢŨƎƖșɆ ¡ėƖƋŨŝƖļĈļŒļƢǈɆįŨƎɆƢķėɆėǇėĉƪƢļŨŝɆŨįɆƢķėɆ EƎŨƪƋȼƖɆƢëǇɆƖƢƎëƢėİǈɆļƖɆĐėŒėİëƢėĐɆƢŨɆƢķėɆ ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎɆǂķŨɆƎėƋŨƎƢƖɆƢķėɆ EƎŨƪƋȼƖɆƢëǇɆƋŨƖļƢļŨŝɆƢŨɆƢķėɆŨëƎĐɆŨŝɆëɆ ƎėİƪŒëƎɆĈëƖļƖș QŝɆŨƎĐėƎɆƢŨɆśļƢļİëƢėɆƢëǇɆƎļƖŏƖɆƢķëƢɆëƎļƖėȚɆ ƢķėɆEƎŨƪƋɆëĉƢļǁėŒǈɆļĐėŝƢļǘėƖȚɆėǁëŒƪëƢėƖȚɆ śëŝëİėƖɆëŝĐɆśŨŝļƢŨƎƖɆļƢƖɆƢëǇɆƎļƖŏƖɆëŝĐɆ ƢķėɆİėŨİƎëƋķļėƖɆļŝɆǂķļĉķɆļƢɆŨƋėƎëƢėƖșɆ ¶ķėɆEƎŨƪƋɆķëƖɆëŝɆëƋƋƎŨƋƎļëƢėŒǈɆƍƪëŒļǘėĐɆ ëŝĐɆƎėƖŨƪƎĉėĐɆƢëǇɆƢėëśɆƢŨɆśëŝëİėɆļƢƖɆ ƢëǇɆëįįëļƎƖș QŝɆëĐĐļƢļŨŝȚɆǂķėƎėɆƢķėƎėɆļƖɆƖļİŝļǘĉëŝƢɆ ƪŝĉėƎƢëļŝƢǈɆŨƎɆĉŨśƋŒėǇļƢǈɆļŝɆƎėŒëƢļŨŝɆƢŨɆëɆ ƢëǇɆƎļƖŏȚɆƢķėɆEƎŨƪƋɆśëǈɆƪƖėɆƢķėɆƖėƎǁļĉėƖɆ ŨįɆėǇƢėƎŝëŒȚɆėǇƋėƎƢɆƢëǇɆëĐǁļƖŨƎƖș Strategic relevance ĐǁėƎƖėɆĉķëŝİėƖɆļŝɆƢķėɆƢëǇɆƎėİļśėƖɆļŝɆƢķėɆ ŌƪƎļƖĐļĉƢļŨŝƖɆļŝɆǂķļĉķɆƢķėɆEƎŨƪƋɆŨƋėƎëƢėƖȚɆ ŨƎɆëɆƖļİŝļǘĉëŝƢɆƢëǇɆëƖƖėƖƖśėŝƢȚɆśëǈɆ ļśƋëĉƢɆŨƪƎɆƋƎŨǘƢëĈļŒļƢǈɆëŝĐɆĉëƖķɆƋŨƖļƢļŨŝș Link to strategic objective: ǤȚǥɆʁɆǦ Taxes ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎɆëŝĐɆ$ļƎėĉƢŨƎɆ ŨįɆ¶ëǇȚɆ¶ƎėëƖƪƎǈɆëŝĐɆQŝƖƪƎëŝĉė Risk category ŨśśėƎĉļëŒ dėİëŒɆëŝĐɆƎėİƪŒëƢŨƎǈ DļŝëŝĉļëŒ Impact: nėĐļƪś Likelihood: Lļİķ Oversight:ɆƪĐļƢɆŨśśļƢƢėė Principal Risks ĉŨŝƢļŝƪėĐ Principal Risk/Uncertainty ,įįėĉƢļǁėɆėǇėĉƪƢļŨŝɆŨįɆėƢnEnȼƖɆ ƖƢƎëƢėİǈɆļŝɆƢķėɆ½©ɆļƖɆŏėǈɆƢŨɆƢķėɆEƎŨƪƋȼƖɆ İƎŨǂƢķɆįŨƎėĉëƖƢƖșɆQŝėįįėĉƢļǁėɆėǇėĉƪƢļŨŝɆ ŨįɆƢķėɆƖƢƎëƢėİǈɆśëǈɆļśƋëĉƢɆƢķėɆEƎŨƪƋȼƖɆ ëśĈļƢļŨŝɆŨįɆŒėëĐėƎƖķļƋɆļŝɆƢķėɆ½©ɆëŝĐɆ ŨƋƋŨƎƢƪŝļƢļėƖɆįŨƎɆpE¡ɆİƎŨǂƢķɆļŝɆëŒƎėëĐǈɆ ƎėİƪŒëƢėĐɆƖƢëƢėƖɆëŝĐɆŝėǂɆƖƢëƢėƖɆëƖɆ ƢķėǈɆƎėİƪŒëƢėș How we manage and mitigate the risk ŝɆėǇƋėƎļėŝĉėĐɆśëŝëİėśėŝƢɆƢėëśɆķëƖɆ ĈėėŝɆėƖƢëĈŒļƖķėĐɆǂļƢķļŝɆėƢnEnɆǂķļĉķɆ ķëƖɆėǇƢėŝƖļǁėɆėǇƋėƎļėŝĉėɆŨįɆĈŨƢķɆƢķėɆ½©Ɇ ëŝĐɆƢķėɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆļŝĐƪƖƢƎǈșɆ ¶ķļƖɆŒŨĉëŒɆśëŝëİėśėŝƢɆƢėëśɆķëƖɆĈėėŝɆ ƖƪƋƋŒėśėŝƢėĐɆĈǈɆëŝɆėǇƋėƎļėŝĉėĐɆŨëƎĐɆ ŨįɆļŝĐƪƖƢƎǈɆëŝĐɆ½©ɆƖƋėĉļëŒļƖƢƖɆįƎŨśɆĈŨƢķɆ ,ŝƢëļŝɆëŝĐɆnEnɆ¡ėƖŨƎƢƖșɆ QŝɆëĐĐļƢļŨŝȚɆƢķėɆėƢnEnɆĈƪƖļŝėƖƖɆķëƖɆ ëĉĉėƖƖɆƢŨɆƢķėɆƖƋėĉļëŒļƖƢɆƎėƖŨƪƎĉėƖɆļŝɆ ļƢƖɆƋëƎėŝƢɆėŝƢļƢļėƖɆëƖɆǂėŒŒɆëƖɆŒėëĐļŝİɆ ƋƎŨįėƖƖļŨŝëŒɆëĐǁļƖėƎƖșɆ¶ķļƖɆƖƢƎƪĉƢƪƎėɆ ļƖɆļŝƢėŝĐėĐɆƢŨɆėŝƖƪƎėɆƢķëƢɆėƢnEnɆ ķëƖɆėǁėƎǈɆĉķëŝĉėɆŨįɆƖƪĉĉėƖƖɆļŝɆƢķėɆ ½©ȚɆëɆśëƎŏėƢɆļŝɆǂķļĉķɆļƢɆķëƖɆëŒƎėëĐǈɆ ėƖƢëĈŒļƖķėĐɆļƢƖėŒįɆëƖɆŨŝėɆŨįɆƢķėɆśëƎŏėƢɆ ŒėëĐėƎƖɆëŝĐɆįëƖƢėƖƢɆİƎŨǂļŝİɆŨƋėƎëƢŨƎƖș Strategic relevance QŝėįįėĉƢļǁėɆėǇėĉƪƢļŨŝɆŨįɆƢķėɆ½©ɆƖƢƎëƢėİǈɆ ĉŨƪŒĐɆļśƋëĉƢɆƢķėɆEƎŨƪƋȼƖɆİƎŨǂƢķɆ ëśĈļƢļŨŝƖɆëŝĐɆƢķėɆėįǘĉļėŝĉǈɆŨįɆƢķėɆ ĐėƋŒŨǈśėŝƢɆŨįɆĉëƋļƢëŒș Link to strategic objective: Ǥ ėƢnEnɆëŝĐɆ½©ɇ©ƢƎëƢėİǈɇ ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎɆëŝĐɆ ķļėįɇ{ƋėƎëƢļŝİɇ{įǘĉėƎ Risk category ©ƢƎëƢėİļĉ ŨśśėƎĉļëŒ DļŝëŝĉļëŒ Impact: Lļİķ Likelihood: dŨǂ Oversight:ɆŨëƎĐ Entain plc | Annual Report 2021 82 Strategic report Principal Risk/Uncertainty ¶ķėɆEƎŨƪƋɆļƖɆƖƪĈŌėĉƢɆƢŨɆĉėƎƢëļŝɆ ëƎƎëŝİėśėŝƢƖɆļŝƢėŝĐėĐɆƢŨɆƖƪƋƋŨƎƢɆƢķėɆ ĉƪƖƢŨśėƎɆŨįįėƎļŝİșɆ,ǇëśƋŒėƖɆëƎėɆƢķėɆ ķŨƎƖėƎëĉļŝİɆëŝĐɆƢķėɆǁŨŒƪŝƢëƎǈɆİƎėǈķŨƪŝĐɆ ƎëĉļŝİɆŒėǁļėƖȚɆĐëƢëɆëŝĐɆĉŨŝƢėŝƢɆƖƪƋƋŒǈȚɆ ëŝĐɆƢķėɆƋƎŨǁļƖļŨŝɆŨįɆśëƎŏėƢļŝİɆƖėƎǁļĉėƖșɆ ¶ķėɆĉŨśĈļŝėĐɆĉŨƖƢɆŨįɆƢķėƖėɆƢķļƎĐȯƋëƎƢǈɆ ƖėƎǁļĉėƖɆļƖɆśëƢėƎļëŒɆëŝĐɆƢķėǈɆĉŨŒŒėĉƢļǁėŒǈɆ ķëǁėɆëɆƖļİŝļǘĉëŝƢɆļśƋëĉƢɆŨŝɆƢķėɆ ƋƎŨǘƢëĈļŒļƢǈɆįŨƎɆƢķėɆĈƪƖļŝėƖƖɆİŒŨĈëŒŒǈș ɆŝƪśĈėƎɆŨįɆƢķėɆĉŨŝƢƎëĉƢƖɆƢķëƢɆƪŝĐėƎƋļŝɆ ƢķėɆƋƎŨǁļƖļŨŝɆŨįɆƢķļƎĐȯƋëƎƢǈɆƖėƎǁļĉėƖɆ ëƎėɆƪŝĐėƎɆŝėİŨƢļëƢļŨŝɆëƢɆëŝǈɆŨŝėɆƢļśėșɆ ¶ķėɆƋƎļĉļŝİɆŨįɆƢķėƖėɆƖėƎǁļĉėƖɆļƖɆëŒƖŨɆ ƖƪĈŌėĉƢɆƢŨɆļŝǙëƢļŨŝëƎǈɆĉŨƖƢɆļŝĉƎėëƖėƖɆ ëŝĐɆĉëŝɆëŒƖŨɆĈėɆǁŨŒëƢļŒėɆĈëƖėĐɆŨŝɆƢķėɆ ĉķëŝİėëĈŒėɆĈƪƖļŝėƖƖɆėŝǁļƎŨŝśėŝƢɆƢķëƢɆ śëŝǈɆŨįɆŨƪƎɆƖƪƋƋŒļėƎƖɆŨƋėƎëƢėș How we manage and mitigate the risk ©ėŝļŨƎɆśëŝëİėśėŝƢɆėŝİëİėƖɆƎėİƪŒëƎŒǈɆ ǂļƢķɆƢķėɆƎėŒėǁëŝƢɆƢƎëĐėɆëƖƖŨĉļëƢļŨŝƖɆ ëŝĐɆƢķėɆƋƎļŝĉļƋëŒɆĈŨĐļėƖɆŨįɆƖƋŨƎƢɆëŝĐɆ ėǁėŝƢɆļŝĐƪƖƢƎļėƖɆǂļƢķɆƎėİëƎĐɆƢŨɆƖƋŨƎƢƖɆ ƎļİķƢƖɆƋëǈśėŝƢƖȚɆļŝĉŒƪĐļŝİɆƢķėɆƖƢëƢƪƢŨƎǈɆ ķŨƎƖėɆƎëĉļŝİɆŒėǁǈȚɆëŝļśëŒɆǂėŒįëƎėɆëŝĐɆ ŨƢķėƎɆļƖƖƪėƖș ĉƎŨƖƖɆƢķėɆǂļĐėƎɆƖƪƋƋŒļėƎɆĈëƖėȚɆëɆĉėŝƢƎëŒɆ ƋƎŨĉƪƎėśėŝƢɆįƪŝĉƢļŨŝɆëŝĐɆĉŨƖƢɆŨǁėƎƖļİķƢɆ ƋƎŨĉėƖƖėƖɆėǇļƖƢɆƢŨɆėŝƖƪƎėɆƢķëƢɆƋƎļĉļŝİɆļƖɆ ėįįėĉƢļǁėŒǈɆĉŨŝƢƎŨŒŒėĐɆĈŨƢķɆëƢɆĉŨŝƢƎëĉƢɆ ƖƢëİėɆëŝĐɆŨŝɆëŝɆŨŝİŨļŝİɆĈëƖļƖș Strategic relevance nëƢėƎļëŒɆļŝĉƎėëƖėƖɆļŝɆƢķėɆĉŨƖƢɆŨįɆ ĉŨŝƢėŝƢɆśëǈɆļŝĉƎėëƖėɆƢķėɆŨƋėƎëƢļŝİɆ ĉŨƖƢƖɆëƢɆķļİķėƎɆƢķëŝɆëŝƢļĉļƋëƢėĐɆŒėǁėŒƖɆ ļśƋëĉƢļŝİɆƋƎŨǘƢƖș Link to strategic objective: ǥ Increased Cost Of Product ķļėįɆ{ƋėƎëƢļŝİɆ{įǘĉėƎ Risk category ŨśśėƎĉļëŒ DļŝëŝĉļëŒ Impact: nėĐļƪś Likelihood: nėĐļƪś Oversight: ŨëƎĐ Principal Risk/Uncertainty ©ëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆļƖɆëƢɆƢķėɆĉėŝƢƎėɆ ŨįɆėǁėƎǈƢķļŝİɆƢķëƢɆ,ŝƢëļŝɆĐŨėƖșɆQƢɆļƖɆƢķėɆ ĉŨƎŝėƎƖƢŨŝėɆŨįɆŨƪƎɆ©ƪƖƢëļŝëĈļŒļƢǈɆķëƎƢėƎȚɆ ëŝĐɆŨƪƎɆśŨƖƢɆśëƢėƎļëŒɆ,©EɆļƖƖƪėɆļƖɆƢŨɆ ėŝƖƪƎėɆƢķėɆķļİķėƖƢɆƋŨƖƖļĈŒėɆŒėǁėŒƖɆŨįɆ ƋŒëǈėƎɆƖëįėƢǈɆëŝĐɆƋƎŨƢėĉƢļŨŝșɆDëļŒƪƎėɆƢŨɆ ëĐėƍƪëƢėŒǈɆƋƎŨƢėĉƢɆŨƪƎɆĉƪƖƢŨśėƎƖɆĉŨƪŒĐɆ ļśƋëĉƢɆŨƪƎɆëĈļŒļƢǈɆƢŨɆŨįįėƎɆƋƎŨĐƪĉƢƖɆëŝĐɆ ĈƪļŒĐɆëɆƖƪƖƢëļŝëĈŒėɆĈƪƖļŝėƖƖșɆ How we manage and mitigate the risk ÕėɆŏŝŨǂɆƢķëƢɆŨŝŒǈɆëɆƎėƖƋŨŝƖļĈŒėɆ ĈƪƖļŝėƖƖɆĉëŝɆĈėɆëɆƖƪƖƢëļŝëĈŒėɆŨŝėɆ ǂķļĉķɆļƖɆǂķǈɆǂėɆĉŨŝƢļŝƪėɆƢŨɆļŝǁėƖƢɆļŝɆ ŨƪƎɆ©ƪƖƢëļŝëĈļŒļƢǈɆķëƎƢėƎɆëƖɆĐėƢëļŒėĐɆŨŝɆ ƋëİėɆǧǣɆŨįɆƢķėɆ¡ėƋŨƎƢșɆ {ŝėɆŨįɆƢķėɆŏėǈɆƋļŒŒëƎƖɆŨįɆƢķļƖɆĉķëƎƢėƎɆļƖɆ ŨƪƎɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢǈɆëŝĐɆëƎėʆɆ ȩȹ¡ʆ Ⱥ ȪɆƋƎŨİƎëśśėșɆ¡ʆɆļƖɆëŝɆ ļŝƢėŒŒļİėŝƢɆëŝĐɆļŝŝŨǁëƢļǁėɆƋŒëƢįŨƎśɆƢķëƢɆ ƪƖėƖɆĈėķëǁļŨƪƎëŒɆļŝƖļİķƢɆëŝĐɆƎėƖėëƎĉķȚɆ ĐëƢëɆƖĉļėŝĉėɆëŝĐɆëŝëŒǈƢļĉƖɆƢŨɆëƖƖėƖƖɆƎļƖŏɆ ļŝɆƋŒëǈȚɆėŝëĈŒļŝİɆƪƖɆƢŨɆļĐėŝƢļįǈȚɆļŝƢėƎëĉƢɆ ëŝĐɆļŝƢėƎǁėŝėɆėëƎŒǈɆǂļƢķɆĉƪƖƢŨśėƎƖȚɆ ǂķŨɆƖķŨǂɆƖļİŝƖɆŨįɆİëśĈŒļŝİȯƎėŒëƢėĐɆ ķëƎśșɆ¶ķļƖɆļƖɆĉŨƪƋŒėĐɆǂļƢķɆëɆƎëŝİėɆŨįɆ ļŝļƢļëƢļǁėƖɆļŝɆƢķėɆëƎėëɆŨįɆƋŒëǈėƎɆƋƎŨƢėĉƢļŨŝȚɆ ļŝĉŒƪĐļŝİɆëɆɏǨśɆëĉëĐėśļĉɆƎėƖėëƎĉķɆ ƋëƎƢŝėƎƖķļƋɆǂļƢķɆƢķėɆLëƎǁëƎĐɆnėĐļĉëŒɆ ©ĉķŨŨŒȚɆƢŨɆƪŝĐėƎƖƢëŝĐɆƢķėɆĉëƪƖėƖɆëŝĐɆ ĉŨŝƖėƍƪėŝĉėƖɆŨįɆƋƎŨĈŒėśɆİëśĈŒļŝİȚɆ ëŝĐɆĐŨŝëƢļŝİɆƪƋɆƢŨɆǤɼɆŨįɆŨƪƎɆEEÛɆƢŨɆƢķėɆ ƢƎėëƢśėŝƢɆŨįɆİëśĈŒļŝİɆƎėŒëƢėĐɆļƖƖƪėƖșɆ Strategic relevance ¶ķėɆ,ŝƢëļŝɆƖƢƎëƢėİǈɆļƖɆįŨƪŝĐėĐɆŨŝɆķëǁļŝİɆ ëɆƖƪƖƢëļŝëĈŒėɆĈƪƖļŝėƖƖɆǂķļĉķɆƋƎŨǁļĐėƖɆ ëŝɆėŝƢėƎƢëļŝļŝİɆëŝĐɆƖëįėɆėŝǁļƎŨŝśėŝƢɆ įŨƎɆĉƪƖƢŨśėƎƖɆƢŨɆėŝŌŨǈɆŨƪƎɆƋƎŨĐƪĉƢƖșɆ ŝɆļŝëĈļŒļƢǈɆƢŨɆëĐėƍƪëƢėŒǈɆƋƎŨƢėĉƢɆŨƪƎɆ ĉƪƖƢŨśėƎƖɆǂŨƪŒĐɆįƪŝĐëśėŝƢëŒŒǈɆļśƋëĉƢɆ ŨƪƎɆëĈļŒļƢǈɆƢŨɆëĉķļėǁėɆŨƪƎɆƖƢƎëƢėİļĉɆİŨëŒƖșɆ ¶ķėƖėɆļŝĉŒƪĐėɆĈėļŝİɆƢķėɆśŨƖƢɆƎėƖƋŨŝƖļĈŒėɆ ŨƋėƎëƢŨƎȚɆƢëŏļŝİɆëɆƖĉļėŝƢļǘĉɆŒėĐɆëƋƋƎŨëĉķɆ ƢŨɆƋŒëǈėƎɆƋƎŨƢėĉƢļŨŝɆëŝĐɆŨŝŒǈɆŨƋėƎëƢļŝİɆļŝɆ ƎėİƪŒëƢėĐɆśëƎŏėƢƖɆĈǈɆƢķėɆėŝĐɆŨįɆǥǣǥǦșɆ Link to strategic objective: 6 Safer Betting and Gaming ķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎ Risk category {ƋėƎëƢļŨŝëŒ ¡ėƋƪƢëƢļŨŝëŒ ŨśśėƎĉļëŒ DļŝëŝĉļëŒ Impact: Lļİķ Likelihood: nėĐļƪś Oversight: ,©EɆŨśśļƢƢėė 83 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Key: ¡ļƖŏɆļŝĉƎėëƖėĐ ¡ļƖŏɆĐėĉƎėëƖėĐ ¡ļƖŏɆƖƢëƢļĉ pėǂɆƎļƖŏ Principal Risks ĉŨŝƢļŝƪėĐ Principal Risk/Uncertainty DëļŒƪƎėɆƢŨɆśėėƢɆƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆ ƢķėɆǁëƎļŨƪƖɆĐŨśėƖƢļĉɆëŝĐɆļŝƢėƎŝëƢļŨŝëŒɆ ƎƪŒėƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆƎėŒëƢļŝİɆƢŨɆƢķėɆ ķėëŒƢķɆëŝĐɆƖëįėƢǈɆŨįɆŨƪƎɆėśƋŒŨǈėėƖɆëŝĐɆ ŨƪƎɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆëŝĐɆĉŨśśļƢśėŝƢƖɆ ƢŨǂëƎĐƖɆĉƪƖƢŨśėƎƖɆëŝĐɆĉŨśśƪŝļƢļėƖɆ ĉŨƪŒĐɆėǇƋŨƖėɆƢķėɆŨśƋëŝǈɆƢŨɆśëƢėƎļëŒɆ ĉļǁļŒȚɆĉƎļśļŝëŒɆëŝĐȦɆŨƎɆƎėİƪŒëƢŨƎǈɆëĉƢļŨŝɆ ǂļƢķɆƢķėɆëƖƖŨĉļëƢėĐɆǘŝëŝĉļëŒɆëŝĐɆ ƎėƋƪƢëƢļŨŝëŒɆĉŨŝƖėƍƪėŝĉėƖșɆ How we manage and mitigate the risk ,ŝƢëļŝȼƖɆ¡ėƢëļŒɆëŝĐɆĐļİļƢëŒɆĈƪƖļŝėƖƖėƖɆķëǁėɆ ŝƪśėƎŨƪƖɆƋŨŒļĉļėƖɆëŝĐɆƋƎŨĉėĐƪƎėƖɆļŝɆƋŒëĉėșɆ ŝŝƪëŒɆƢƎëļŝļŝİɆëŝĐɆĉŨśśƪŝļĉëƢļŨŝɆƋŒëŝƖɆ ƢŨɆëŒŒɆƖƢëįįɆǂļƢķļŝɆƢķėƖėɆƖėİśėŝƢƖȚɆëƖɆǂėŒŒɆ ëƖɆƖƋėĉļǘĉɆĉŨśśƪŝļĉëƢļŨŝƖɆƢŨɆƖƢëįįɆëĉƎŨƖƖɆ ƢķėɆǂļĐėƎɆEƎŨƪƋɆĉŨŝƢļŝƪėɆƢŨɆƢëŏėɆƋŒëĉėșɆ ¶ķėɆEƎŨƪƋȼƖɆ,©EɆŨśśļƢƢėėɆëŒƖŨɆŨǁėƎƖėėɆ ëŒŒɆëƖƋėĉƢƖɆŨįɆLėëŒƢķȚɆ©ëįėƢǈȚɆ©ėĉƪƎļƢǈɆëŝĐɆ ,ŝǁļƎŨŝśėŝƢëŒɆȩȹL©©,ȺȪɆƋƎëĉƢļĉėƖșɆ ÕėɆƋƎŨǁļĐėɆëɆĉëƎļŝİɆëŝĐɆƖƪƋƋŨƎƢļǁėɆ ėŝǁļƎŨŝśėŝƢɆįŨƎɆŨƪƎɆĉŨŒŒėëİƪėƖɆëŝĐɆƢëŏėɆ ƢķėļƎɆǂėŒįëƎėɆƖėƎļŨƪƖŒǈșɆ QŝɆëĐĐļƢļŨŝɆƢŨɆƎļǁëƢėɆnėĐļĉëŒɆƖƪƋƋŨƎƢɆ ëǁëļŒëĈŒėɆįŨƎɆśëŝǈɆĉŨŒŒėëİƪėƖȚɆǂėɆƋƎŨǁļĐėɆ śėŝƢëŒɆķėëŒƢķɆƖƪƋƋŨƎƢɆįŨƎɆŨƪƎɆƋėŨƋŒėɆ ǁļëɆŨƪƎɆİŒŨĈëŒɆėśƋŒŨǈėėɆëƖƖļƖƢëŝĉėɆ ƋƎŨİƎëśśėȚɆǂėŒŒĈėļŝİɆëƋƋɆëŝĐɆǁëƎļŨƪƖɆ ǂėŒŒĈėļŝİɆļŝļƢļëƢļǁėƖɆƎƪŝɆƢķƎŨƪİķŨƪƢɆ ƢķėɆǈėëƎș ƖɆëɆŒëƎİėɆĉŨƎƋŨƎëƢėɆǂėɆëŒƖŨɆƎėĉŨİŝļƖėɆŨƪƎɆ ļśƋëĉƢɆŨŝɆƖŨĉļėƢǈɆëŝĐɆŒŨĉëŒɆĉŨśśƪŝļƢļėƖɆ ëŝĐɆëƖɆƋëƎƢɆŨįɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆǂėɆ ķëǁėɆĉŨśśļƢƢėĐɆƢŨɆĐŨŝëƢļŝİɆɞǤǣǣśɆŨǁėƎɆ ǘǁėɇǈėëƎƖɆƢŨɆǥǣǥǨșɆ Strategic relevance ƎėëĉķėƖɆļŝɆƢķėɆEƎŨƪƋȼƖɆL©©,ɆëŝĐɆƖëįėƎɆ İëśĈŒļŝİɆƋŨŒļĉļėƖɆĉŨƪŒĐɆŒėëĐɆƢŨɆĉƎļśļŝëŒȚɆ ĉļǁļŒɆëŝĐɆŨƎɆƎėİƪŒëƢŨƎǈɆƖëŝĉƢļŨŝƖȚɆëŒŨŝİɆ ǂļƢķɆƖļİŝļǘĉëŝƢɆƎėƋƪƢëƢļŨŝëŒɆĐëśëİėɆëŝĐɆ ŝėİëƢļǁėɆļśƋŒļĉëƢļŨŝƖɆŨŝɆėśƋŒŨǈėėɆśŨƎëŒėɆ ëŝĐɆĉƪƖƢŨśėƎɆİŨŨĐǂļŒŒș DëļŒƪƎėɆƢŨɆƋƎŨƢėĉƢɆŨƪƎɆĉƪƖƢŨśėƎƖɆëŝĐɆ ėśƋŒŨǈėėƖɆśëǈɆƎėƖƪŒƢɆļŝɆ,ŝƢëļŝɆŝŨƢɆ ëĉķļėǁļŝİɆŨƪƎɆƖƢƎëƢėİļĉɆëļśɆŨįɆĈėļŝİɆëɆ ƎėƖƋŨŝƖļĈŒėɆŨƋėƎëƢŨƎɆŨƎɆƢķėɆĈėƖƢɆƋŒëĉėɆƢŨɆ ǂŨƎŏșɆpŨƢɆŨŝŒǈɆǂļŒŒɆƢķļƖɆŒėëĐɆƢŨɆëɆƎėĐƪĉƢļŨŝɆ ļŝɆƢķėɆƍƪëŒļƢǈɆŨįɆĉŨŒŒėëİƪėƖɆĈƪƢɆëŒƖŨɆŨƪƎɆ ëĈļŒļƢļėƖɆƢŨɆƎėĉƎƪļƢɆëŝĐɆƎėƢëļŝɆƢķėɆƢëŒėŝƢɆŨįɆ ƢķėɆįƪƢƪƎėșɆ Link to strategic objective: ǩɆʁɆǫ Health, Safety & Wellbeing of Customers, Communities and Employees ¡ėƢëļŒɆnëŝëİļŝİɆ$ļƎėĉƢŨƎȚɆķļėįɆėŨƋŒėɆ{įǘĉėƎɆëŝĐɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ Risk category {ƋėƎëƢļŨŝëŒ ¡ėƋƪƢëƢļŨŝëŒ ©ƢƎëƢėİļĉ Impact: nėĐļƪś Likelihood: dŨǂ Oversight: ,©EɆŨśśļƢƢėė Principal Risk/Uncertainty ¶ķėɆEƎŨƪƋɆśëǈɆėǇƋėƎļėŝĉėɆƖļİŝļǘĉëŝƢɆ ŒŨƖƖėƖɆëƖɆëɆƎėƖƪŒƢɆŨįɆëɆįëļŒƪƎėɆƢŨɆĐėƢėƎśļŝėɆ ëĉĉƪƎëƢėŒǈɆƢķėɆŨĐĐƖɆļŝɆƎėŒëƢļŨŝɆƢŨɆëŝǈɆ ƋëƎƢļĉƪŒëƎɆėǁėŝƢɆëŝĐȦŨƎɆëŝǈɆįëļŒƪƎėɆŨįɆļƢƖɆ ƋƎļĉėɆƎļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖėƖș How we manage and mitigate the risk ¶ķėɆEƎŨƪƋɆķëƖɆƖŨśėɆŨįɆƢķėɆŒėëĐļŝİɆ ėǇƋėƎƢļƖėɆļŝɆƢƎëĐļŝİɆŒļëĈļŒļƢǈɆśëŝëİėśėŝƢɆ ëŝĐɆƢķėɆEƎŨƪƋȼƖɆƢƎëĐļŝİɆƢėëśɆķëƖɆ ĐėǁėŒŨƋėĐɆƢķėɆƖŏļŒŒƖɆëŝĐɆƖǈƖƢėśƖɆ ƢŨɆĈėɆëĈŒėɆƢŨɆŨįįėƎɆëɆǂļĐėɆƎëŝİėɆŨįɆ ĈėƢƢļŝİɆŨƋƋŨƎƢƪŝļƢļėƖș ,ǁėŝƢƖɆëƎėɆƋƎļĉėĐɆļŝɆŨƎĐėƎɆƢŨɆëĉķļėǁėɆëŝɆ ëǁėƎëİėɆƎėƢƪƎŝɆƢŨɆƢķėɆĈŨŨŏśëŏėƎɆŨǁėƎɆ ëɆŒëƎİėɆŝƪśĈėƎɆŨįɆėǁėŝƢƖɆëŝĐɆƢķėƎėįŨƎėȚɆ ŨǁėƎɆƢķėɆŒŨŝİɆƢėƎśș ¶ķėɆEƎŨƪƋȼƖɆİƎŨƖƖɆǂļŝɆƋėƎĉėŝƢëİėɆķëƖɆ ƎėśëļŝėĐɆįëļƎŒǈɆĉŨŝƖƢëŝƢɆļŝɆƎėĉėŝƢɆǈėëƎƖșɆ ,ǇėĉƪƢļǁėɆśëŝëİėśėŝƢɆśŨŝļƢŨƎɆƢķėɆ İƎŨƖƖɆǂļŝɆśëƎİļŝɆŨŝɆëɆĐëļŒǈɆĈëƖļƖɆļŝɆ ŨƎĐėƎɆƢŨɆėŝƖƪƎėɆƢķėɆŒŨŝİȯƢėƎśɆƢëƎİėƢƖɆ ëƎėɆëĉķļėǁėĐș Strategic relevance ɆƎƪŝɆŨįɆĉƪƖƢŨśėƎɆįëǁŨƪƎëĈŒėɆƎėƖƪŒƢƖɆ ŨƎɆëɆśļƖśëŝëİėśėŝƢɆŨįɆƢķėɆƢƎëĐļŝİɆ ĈŨŨŏɆĉŨƪŒĐɆƖļİŝļǘĉëŝƢŒǈɆļśƋëĉƢɆƢķėɆ EƎŨƪƋȼƖɆƋƎŨǘƢëĈļŒļƢǈș Link to strategic objective: ǥ Trading, Liability and Pricing Management ķļėįɆ{ƋėƎëƢļŝİɆ{įǘĉėƎ Risk category ŨśśėƎĉļëŒ {ƋėƎëƢļŨŝëŒ ©ƢƎëƢėİļĉ Impact: nėĐļƪś Likelihood: nėĐļƪś Oversight:ɆƪĐļƢɆŨśśļƢƢėė Entain plc | Annual Report 2021 84 Strategic report Principal Risk/Uncertainty ÕķļŒƖƢɆƢķėɆEƎŨƪƋɆŨƋėƎëƢėƖɆŨƪƢɆŨįɆëɆ ŝƪśĈėƎɆŨįɆİėŨİƎëƋķļĉëŒɆŒŨĉëƢļŨŝƖȚɆƢķėƎėɆ ëƎėɆëɆŝƪśĈėƎɆŨįɆŏėǈɆƖļƢėƖɆǂķļĉķɆëƎėɆ ĉƎļƢļĉëŒɆƢŨɆƢķėɆĐëǈȯƢŨȯĐëǈɆŨƋėƎëƢļŨŝƖɆŨįɆ ƢķėɆEƎŨƪƋȚɆļŝĉŒƪĐļŝİɆŨƪƎɆŨįǘĉėƖɆļŝɆėŝƢƎëŒɆ dŨŝĐŨŝȚɆEļĈƎëŒƢëƎȚɆÔļėŝŝëȚɆLǈĐėƎëĈëĐȚɆ ƪƖƢƎëŒļëȚɆQƢëŒǈȚɆQƎėŒëŝĐɆëŝĐɆnëŝļŒëșɆ $ļƖƎƪƋƢļŨŝɆļŝɆëŝǈɆŨįɆƢķėƖėɆŒŨĉëƢļŨŝƖɆĉŨƪŒĐɆ ķëǁėɆëŝɆļśƋëĉƢɆŨŝɆŨƋėƎëƢļŨŝƖș How we manage and mitigate the risk ƪƖļŝėƖƖɆĉŨŝƢļŝƪļƢǈɆƋŒëŝƖɆëŝĐɆ ëƎƎëŝİėśėŝƢƖɆįŨƎɆŨįįȯƖļƢėɆĐëƢëɆƖƢŨƎëİėȚɆ ëŒƢėƎŝëƢļǁėɆƖǈƖƢėśɆëǁëļŒëĈļŒļƢǈɆëŝĐɆ ƎėśŨƢėɆǂŨƎŏļŝİɆįŨƎɆŏėǈɆŨƋėƎëƢļŨŝëŒɆ ĉŨŒŒėëİƪėƖɆëŝĐɆƖėŝļŨƎɆśëŝëİėśėŝƢɆķëǁėɆ ĈėėŝɆƢėƖƢėĐɆƢŨɆĉėƎƢëļŝɆėǇƢėŝƢƖɆƢķƎŨƪİķŨƪƢɆ ƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉɆëŝĐɆĉŨŝƢļŝƪėɆƢŨɆ ĈėɆƖƪĈŌėĉƢɆƢŨɆŨŝİŨļŝİɆƎėǁļėǂș Strategic relevance dŨƖƖɆŨįɆëɆŏėǈɆŒŨĉëƢļŨŝɆĉŨƪŒĐɆļśƋëĉƢɆ ƢķėɆEƎŨƪƋȼƖɆëĈļŒļƢǈɆƢŨɆŨįįėƎɆƋƎŨĐƪĉƢɆƢŨɆ ļƢƖɆĉƪƖƢŨśėƎƖɆļśƋëĉƢļŝİɆļƢƖɆëĈļŒļƢǈɆƢŨɆ İėŝėƎëƢėɆƎėǁėŝƪėƖș Link to strategic objective: ǥ Loss Of Key Locations ķļėįɆ{ƋėƎëƢļŝİɆ{įǘĉėƎ Risk category {ƋėƎëƢļŨŝëŒ Impact: nėĐļƪś Likelihood: dŨǂ Oversight: ,©EɆŨśśļƢƢėė Principal Risk/Uncertainty DƪƎƢķėƎɆǂëǁėƖɆŨįɆƋëŝĐėśļĉɆëįįėĉƢļŝİɆ ļŝĐļǁļĐƪëŒɆĉŨƪŝƢƎļėƖɆŨƎɆĉŨŝƢļŝėŝƢƖɆ ƎėƖƪŒƢļŝİɆļŝɆƢķėɆĉŒŨƖƪƎėɆŨįɆëŒŒɆŨƎɆƋëƎƢɆŨįɆ ŨƪƎɆ¡ėƢëļŒɆėƖƢëƢėɆŨƎɆƢķėɆĉëŝĉėŒŒëƢļŨŝȦ ƋŨƖƢƋŨŝėśėŝƢɆŨįɆśëŌŨƎɆƖƋŨƎƢļŝİɆėǁėŝƢƖȚɆ ėİɆįŨŨƢĈëŒŒȚɆķŨƎƖėɆƎëĉļŝİɆǂķļĉķɆśëǈɆƎėƖƪŒƢɆ ļŝɆǘŝëŝĉļëŒɆŒŨƖƖėƖȚɆƖėƎǁļĉėɆŨƪƢëİėɆŨƎɆëŝɆ ļŝëĈļŒļƢǈɆƢŨɆƋƎŨƢėĉƢɆŨƪƎɆĉŨŒŒėëİƪėȼƖɆǂėŒŒȯ ĈėļŝİșɆ How we manage and mitigate the risk ƢɆǁëƎļŨƪƖɆƋŨļŝƢƖɆƢķƎŨƪİķɆǥǣǥǤɆëŝĐɆ ļŝƢŨɆǥǣǥǥȚɆƢķėɆEƎŨƪƋɆķëƖɆĈėėŝɆëĈŒėɆƢŨɆ ėŝëĉƢɆļƢƖɆƋŒëŝƖɆƢŨɆśŨǁėɆƢķėɆśëŌŨƎļƢǈɆŨįɆ ļƢƖɆĉŨŒŒėëİƪėƖɆƢŨɆķŨśėɆǂŨƎŏļŝİɆǂļƢķŨƪƢɆ ëŝǈɆŒŨƖƖɆŨįɆƖėƎǁļĉėɆȩėǇĉŒƪĐļŝİɆ¡ėƢëļŒɆ ĉŒŨƖƪƎėƖȪɆĐėƖƋļƢėɆƢķėɆëŝŝŨƪŝĉėśėŝƢɆŨįɆ ǂŨƎŒĐǂļĐėɆŒŨĉŏĐŨǂŝƖș ¶ķƎŨƪİķɆļƢƖɆĐļǁėƎƖėɆƋƎŨĐƪĉƢɆëŝĐɆ İėŨİƎëƋķļĉɆŨįįėƎļŝİȚɆƢķėɆĈƪƖļŝėƖƖɆķëƖɆ ĈėėŝɆëĈŒėɆƢŨɆŒėǁėƎëİėɆļƢƖɆĈƪƖļŝėƖƖɆśŨĐėŒɆ ƢŨɆƍƪļĉŏŒǈɆƎėƖƋŨŝĐɆƢŨɆĉķëŝİļŝİɆĉƪƖƢŨśėƎɆ ŝėėĐƖɆëŝĐɆƢķėƎėįŨƎėɆśëļŝƢëļŝɆƖƢƎŨŝİɆ ƢƎëĐļŝİɆƢķƎŨƪİķŨƪƢșɆ¶ķėɆEƎŨƪƋɆĉŨŝƢļŝƪėƖɆ ƢŨɆśŨŝļƢŨƎɆƢķėɆƎļƖŏƖɆļŝɆėëĉķɆŨįɆļƢƖɆŒŨĉëŒɆ ŨƋėƎëƢļŨŝƖɆĈŨƢķɆŨŝɆƢƎëĐļŝİɆëŝĐɆƢķėɆķėëŒƢķɆ ʁɆƖëįėƢǈɆŨįɆļƢƖɆĉŨŒŒėëİƪėƖȚɆƢķėɆŒëƢƢėƎɆŨįɆ ǂķļĉķɆļƖɆŨƪƎɆŝƪśĈėƎɆŨŝėɆƋƎļŨƎļƢǈș Strategic relevance ŒŨƖƪƎėɆŨįɆŨƪƎɆƎėƢëļŒɆƖķŨƋƖɆŨƎɆƢķėɆ ĉëŝĉėŒŒëƢļŨŝɆŨįɆƖƋŨƎƢļŝİɆėǁėŝƢƖɆśëǈɆƎėƖƪŒƢɆ ļŝɆǘŝëŝĉļëŒɆŒŨƖƖėƖȚɆŨƪƎɆëĈļŒļƢǈɆƢŨɆİėŝėƎëƢėɆ ƎėǁėŝƪėƖɆëŝĐɆëįįėĉƢɆŨǁėƎëŒŒɆƋƎŨǘƢëĈļŒļƢǈș Link to strategic objective: ŒŒɆŨĈŌėĉƢļǁėƖ Pandemic ķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎȚɆķļėįɆ{ƋėƎëƢļŝİɆ {įǘĉėƎɆëŝĐɆķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎ Risk category {ƋėƎëƢļŨŝëŒ DļŝëŝĉļëŒ ŨśśėƎĉļëŒ Impact: nėĐļƪś Likelihood: Lļİķ Oversight: ŨëƎĐ Principal Risk/Uncertainty ¶ķėɆƋėŨƋŒėɆǂķŨɆǂŨƎŏɆǂļƢķļŝɆ,ŝƢëļŝɆëƎėɆ ƋļǁŨƢëŒɆƢŨɆƢķėɆƖƪĉĉėƖƖɆŨįɆƢķėɆŨśƋëŝǈɆ ëŝĐɆŨƪƎɆįëļŒƪƎėɆƢŨɆëƢƢƎëĉƢɆŨƎɆƎėƢëļŝɆŏėǈɆ ļŝĐļǁļĐƪëŒƖɆśëǈɆļśƋëĉƢɆŨƪƎɆëĈļŒļƢǈɆƢŨɆ ĐėŒļǁėƎɆŨŝɆŨƪƎɆƖƢƎëƢėİļĉɆİŨëŒƖș How we manage and mitigate the risk ƪļŒĐļŝİɆŨŝɆƢķėɆƖƪĉĉėƖƖįƪŒɆŒëƪŝĉķɆŨįɆ ŨƪƎɆëǂëƎĐȯǂļŝŝļŝİɆėśƋŒŨǈėƎɆĈƎëŝĐȚɆ ŨƪƎɆėŨƋŒėɆ©ƢƎëƢėİǈɆįŨĉƪƖƖėƖɆŨƪƎɆ ėįįŨƎƢƖɆŨŝɆƖėĉƪƎļŝİɆëŝĐɆƎėƢëļŝļŝİɆƢķėɆ ĈėƖƢɆƢëŒėŝƢȚɆƋƎŨǁļĐļŝİɆëɆśëƎŏėƢɆŒėëĐļŝİɆ ǂŨƎŏļŝİɆėŝǁļƎŨŝśėŝƢɆëŝĐɆƢķėɆĈėƖƢɆ ėśƋŒŨǈėėɆėǇƋėƎļėŝĉėșɆ {ƪƎɆƢëŒėŝƢɆśëŝëİėśėŝƢɆëŝĐɆƎėǂëƎĐɆëŝĐɆ ƎėĉŨİŝļƢļŨŝɆƋƎŨİƎëśśėƖɆëƎėɆĉŨŝƢļŝƪëŒŒǈɆ ëƖƖėƖƖėĐɆƢķƎŨƪİķɆëɆŝƪśĈėƎɆŨįɆƎėİƪŒëƎɆ ĉŨŒŒėëİƪėɆįėėĐĈëĉŏɆśėĉķëŝļƖśƖɆëŝĐɆ ėǇƢėƎŝëŒɆĈėŝĉķśëƎŏļŝİș Strategic relevance ɆƋƎėȯƎėƍƪļƖļƢėɆƢŨɆëĉķļėǁļŝİɆëŒŒɆŨįɆƢķėɆ ƖƢƎëƢėİļĉɆƋƎļŨƎļƢļėƖɆļƖɆėŝƖƪƎļŝİɆǂėɆ ķëǁėɆƢķėɆƎļİķƢɆƋėŨƋŒėɆǂļƢķɆƢķėɆƎļİķƢɆ ƖŏļŒŒƖȚɆĐėƋŒŨǈėĐɆǂļƢķļŝɆƢķėɆƎļİķƢɆëƎėëɆŨįɆ ƢķėɆĈƪƖļŝėƖƖșɆDëļŒļŝİɆƢŨɆƎėĉƎƪļƢȦƎėƢëļŝɆ ƢķėɆĈėƖƢɆƋėŨƋŒėɆĉŨƪŒĐɆƖļİŝļǘĉëŝƢŒǈɆ ļśƋëĉƢɆƢķėɆEƎŨƪƋɆëĉķļėǁļŝİɆëŒŒɆŨįɆļƢƖɆ ƖƢƎëƢėİļĉɆŨĈŌėĉƢļǁėƖș Link to strategic objective: ǫ Recruitment and Retention of Key Employees ķļėįɆėŨƋŒėɆ{įǘĉėƎ Risk category {ƋėƎëƢļŨŝëŒ Impact: nėĐļƪś Likelihood: dŨǂ Oversight: ŨëƎĐ 85 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 QŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƋƎŨǁļƖļŨŝɆǦǤɆŨįɆƢķėɆǥǣǤǫɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆ ŨĐėȚɆƢķėɆŨëƎĐɆëŝĐɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨśƋŒėƢėĐɆëŝɆëƖƖėƖƖśėŝƢɆ ŨįɆƢķėɆƋƎŨƖƋėĉƢƖɆëŝĐɆǁļëĈļŒļƢǈɆŨįɆƢķėɆ,ŝƢëļŝɆLŨŒĐļŝİƖɆdɆEƎŨƪƋɆ ŨǁėƎɆëɇŒŨŝİėƎɆƋėƎļŨĐɆƢķëŝɆƢķėɆǤǥɆśŨŝƢķƖɆƎėƍƪļƎėĐɆĈǈɆƢķėɆȹEŨļŝİɆ ŨŝĉėƎŝȺɆƋƎŨǁļƖļŨŝș ¶ķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķƎėėɆǈėëƎƖɆǂëƖɆëŝɆëƋƋƎŨƋƎļëƢėɆ ƋėƎļŨĐɆįŨƎɆëƖƖėƖƖśėŝƢȚɆëƖɆƢķļƖɆļƖɆëŒļİŝėĐɆƢŨɆƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİļĉɆ ƋŒëŝŝļŝİɆƋƎŨĉėƖƖɆëŝĐɆļƖɆĉŨŝƖļĐėƎėĐɆƢŨɆĈėɆƢķėɆƋėƎļŨĐɆįŨƎɆǂķļĉķɆ ƎėŒļëĈŒėɆėƖƢļśëƢėƖɆĉëŝɆĈėɆśëĐėɆįŨƎɆǁëƎļëƢļŨŝƖɆļŝɆĈŨƢķɆļŝĐƪƖƢƎǈɆ ëŝĐɆĉƪƖƢŨśėƎɆĐǈŝëśļĉƖȚɆƎėİƪŒëƢŨƎǈɆĉķëŝİėȚɆƢėĉķŝŨŒŨİļĉëŒɆ ëĐǁëŝĉėśėŝƢƖɆëŝĐɆƢķėɆėĉŨŝŨśļĉɆĈëĉŏĐƎŨƋɆļŝɆƢķėɆĈėƢƢļŝİɆëŝĐɆ İëśļŝİɆļŝĐƪƖƢƎǈɆƢëŏļŝİɆļŝƢŨɆëĉĉŨƪŝƢɆƢķėɆĉķëŝİļŝİɆŒëŝĐƖĉëƋėɆëƖɆ ëɇƎėƖƪŒƢɆŨįɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉș ¶ķėɆŨĈŌėĉƢļǁėƖɆŨįɆƢķėɆƖƢƎëƢėİļĉɆƋŒëŝŝļŝİɆƋƎŨĉėƖƖɆëƎėɆƢŨɆįƪƎƢķėƎɆ ĐėǁėŒŨƋɆƢķėɆĈƪƖļŝėƖƖėƖɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆśëƎŏėƢƖɆļŝɆǂķļĉķɆ ļƢɆŨƋėƎëƢėƖȚɆëƖƖėƖƖɆƢķėɆƎļƖŏƖɆëŝĐɆŨƋƋŨƎƢƪŝļƢļėƖɆįëĉļŝİɆƢķėɆ ĈƪƖļŝėƖƖɆëŝĐɆĐėǁėŒŨƋɆëɆEƎŨƪƋȯǂļĐėɆƖƢƎëƢėİǈɆëŝĐɆëƖƖŨĉļëƢėĐɆ ǘŝëŝĉļëŒɆįŨƎėĉëƖƢƖș ¶ķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆƪƢļŒļƖėĐɆƢķėƖėɆƖƢƎëƢėİļĉɆįŨƎėĉëƖƢƖȚɆƢķėɆǥǣǥǥɆ ŨëƎĐɆëƋƋƎŨǁėĐɆĈƪĐİėƢɆëŝĐɆƢķėɆĉƪƎƎėŝƢɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆŨįɆ ƢķėɆEƎŨƪƋɆƢŨɆëƖƖėƖƖɆƢķėɆƋŨƢėŝƢļëŒɆļśƋëĉƢɆŨŝɆǁļëĈļŒļƢǈɆŨįɆĉėƎƢëļŝɆ ƖėǁėƎėȚɆĈƪƢɆƋŒëƪƖļĈŒėȚɆȹƎļƖŏɆėǁėŝƢƖȺɆëƎļƖļŝİɆǂķļĉķɆƎėƋƎėƖėŝƢɆƢķėɆ ĉƎǈƖƢëŒŒļƖëƢļŨŝɆŨįɆƢķėɆEƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆëŝĐɆƪŝĉėƎƢëļŝƢļėƖɆëƖɆ ļĐėŝƢļǘėĐɆŨŝɆƋëİėƖɆǫǤɆƢŨɆǫǨɆŨįɆƢķļƖɆŝŝƪëŒɆ¡ėƋŨƎƢșɆ¶ķėɆëƖƖėƖƖśėŝƢɆ ĉŨŝĐƪĉƢėĐɆĉŨŝƖļĐėƎėĐɆƢķėɆEƎŨƪƋȼƖɆƎėǁėŝƪėȚɆ,Q¶$ȚɆŨƋėƎëƢļŝİɆ ƋƎŨǘƢƖȚɆĉëƖķɆǙŨǂƖȚɆƎļƖŏɆśëŝëİėśėŝƢɆëŝĐɆĉŨŝƢƎŨŒƖȚɆļƢƖɆĉƪƎƎėŝƢɆĐėĈƢɆ śëƢƪƎļƢǈɆëŝĐɆëŝƢļĉļƋëƢėĐɆƎėǘŝëŝĉļŝİɆƋƎŨǘŒėɆëŝĐɆśļƢļİëƢļŝİɆëĉƢļŨŝƖɆ ƖķŨƪŒĐɆĈëƖėŒļŝėɆëƖƖƪśƋƢļŨŝƖɆĉķëŝİėș ¶ķėɆǘŝëŝĉļëŒɆļśƋëĉƢɆŨįɆƢķėɆļĐėŝƢļǘėĐɆƎļƖŏɆėǁėŝƢƖɆķëƖɆĈėėŝɆëƖƖėƖƖėĐɆ ĈŨƢķɆļŝĐļǁļĐƪëŒŒǈɆëŝĐɆļŝɆĉŨśĈļŝëƢļŨŝɆëŝĐɆļŝĉŒƪĐėț Ɇ ¶ķėɆļśƋëĉƢɆŨįɆëɆƖļİŝļǘĉëŝƢɆĉķëŝİėɆļŝɆƢķėɆEƎŨƪƋȼƖɆĐƪƢǈɆƋƎŨǘŒėȚɆ ļŝĉŒƪĐļŝİɆįƪƎƢķėƎɆĉķëŝİėƖɆļŝɆİëśļŝİɆƢëǇėƖɆļŝɆŏėǈɆİėŨİƎëƋķļėƖ Ɇ ©ļİŝļǘĉëŝƢɆĉķëŝİėƖɆļŝɆƢķėɆƎėİƪŒëƢŨƎǈɆėŝǁļƎŨŝśėŝƢɆļŝĉŒƪĐļŝİɆ İëśļŝİɆƎėƖƢƎļĉƢļŨŝƖɆļŝɆŏėǈɆśëƎŏėƢƖȚɆįƪƎƢķėƎɆįŨĉƪƖɆŨŝɆndɆ ŒėİļƖŒëƢļŨŝɆļŝɆƢķėɆ½bɆĈǈɆƢķėɆEëśĈŒļŝİɆŨśśļƖƖļŨŝɆëŝĐɆĈƎėëĉķėƖɆ ļŝɆĐëƢëɆƋƎļǁëĉǈɆƎėİƪŒëƢļŨŝƖ Ɇ ǈĈėƎɆƖėĉƪƎļƢǈɆįëļŒļŝİƖȚɆëŝĐɆśëŌŨƎɆĐļƖƎƪƋƢļŨŝɆļŝɆƖƪƋƋŒļėƎȦ ĉƪƖƢŨśėƎɆĉŨŝƢƎëĉƢƖ Ɇ $ŨǂŝƢƪƎŝɆļŝɆƢƎëĐļŝİɆëƖɆëɆƎėƖƪŒƢɆŨįɆëɆįëļŒƪƎėɆƢŨɆƋƎŨƢėĉƢɆĉƪƖƢŨśėƎƖɆ ëŝĐȦŨƎɆƎėƢëļŝɆŏėǈɆƖƢëįį ¶ķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆëŒƖŨɆƋėƎįŨƎśėĐɆƎėǁėƎƖėɆƖƢƎėƖƖɆƢėƖƢƖɆƢŨɆëƖƖėƖƖɆ ƢķėɆŒėǁėŒɆŨįɆŒļƍƪļĐļƢǈɆëŝĐɆĉŨǁėŝëŝƢɆķėëĐƎŨŨśɆļŝɆƢķėɆƪŝĐėƎŒǈļŝİɆ įŨƎėĉëƖƢƖɆëƖɆǂėŒŒɆëƖɆĉŨŝƖļĐėƎļŝİɆƢķėɆƋŨƢėŝƢļëŒɆļśƋëĉƢƖɆŨįɆƎėǇļƢɆļŝɆ įŨƎśļŝİɆƢķėļƎɆǁļėǂɆŨŝɆǁļëĈļŒļƢǈș ëƖėĐɆŨŝɆƢķėɆƎėƖƪŒƢƖɆŨįɆƢķļƖɆëŝëŒǈƖļƖɆëŝĐɆƢķėɆśļƢļİëƢļŝİɆëĉƢļŨŝƖɆ ëǁëļŒëĈŒėɆƢŨɆƢķėɆĈƪƖļŝėƖƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆĉŨŝǘƎśɆƢķëƢɆƢķėǈɆķëǁėɆëɆ ƎėëƖŨŝëĈŒėɆėǇƋėĉƢëƢļŨŝɆƢķëƢɆƢķėɆŨśƋëŝǈɆǂļŒŒɆĈėɆëĈŒėɆƢŨɆśėėƢɆļƢƖɆ ŒļëĈļŒļƢļėƖɆëƖɆƢķėǈɆįëŒŒɆĐƪėɆŨǁėƎɆƢķėɆƢķƎėėȯǈėëƎɆëƖƖėƖƖśėŝƢɆƋėƎļŨĐɆƢŨɆ $ėĉėśĈėƎɆǥǣǥǧș ÔļëĈļŒļƢǈɆ©ƢëƢėśėŝƢɆ Entain plc | Annual Report 2021 86 Strategic report 87 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 87 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Governance Governance 89 Board of Directors ǬǤɆ ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȼƖɆ¡ėƋŨƎƢ 103 Audit Committee Report 109 ESG Committee Report 112 Nomination Committee Report ǤǤǨɆ $ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢ ǤǧǤɆ $ļƎėĉƢŨƎƖȼɆ¡ėƋŨƎƢ Governance Entain plc | Annual Report 2021 88 Board of Directors (as at 3 March 2022) Attendance Age Diversity Gender 4:7 Meetings attended: No. of Directors No. of Directors 7211 Experience / Skills: No. of Directors Years: Barry Gibson Jette Nygaard-Andersen Rob Wood Robert Hoskin Pierre Bouchut Stella David Mark Gregory Peter Isola Vicky Jarman Virginia McDowell David Satz All Board members maximum 40-44 0 60-64 50-54 32 45-49 Tenure 1 65-69 55-59 54 100% 70+ 1132211 6 Gaming Sector Legal / Regulatory Technology / eCommerce LeadershipEntertainmentMarketingFinancial British American 5432515 French Danish 89Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 J M Barry Gibson Chairman Tenure: Appointed to the Board November 2019 and became Chairman in February 2020. Age: 70 Nationality: British Committee / attendance: N 3/3 Biography: Barry was previously a non-executive director of William Hill plc and bwin.party digital entertainment plc, where he was the senior independent director. He was the group retailing director at BAA plc, group chief executive of Littlewoods plc, non-executive chairman of Harding Brothers Holdings Ltd, non-executive director of both ©ŨśėƎǘėŒĐƋŒĉëŝĐpëƢļŨŝëŒ,ǇƋƎėƖƖƋŒĉëŝĐĉķëļƎśëŝŨį HomeServe plc. Key strengths and experience: Barry is an experienced chairman, chief executive, senior independent director and non-executive director, with extensive experience of the gaming, leisure, retail and marketing sectors. He has deep business experience and a track record in improving company performance and customer service. Robert Hoskin ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ Tenure: Appointed January 2021 Age: 50 Nationality: British Biography: Robert joined Entain in 2005 and served as Group Director of Legal, Regulatory and Secretariat, overseeing its corporate governance, legal and regulatory ƎėƍƪļƎėśėŝƢƖ ëĉƎŨƖƖ śŨƎė Ƣķëŝ ǥǣ ĉŨƪŝƢƎļėƖ ļŝ ǘǁė continents and supported various M&A transactions. Prior to Entain, he headed up the Investment Company Secretariat at Aberdeen Asset Management. Key strengths and experience: ¡ŨĈėƎƢļƖëƍƪëŒļǘėĐëŝĐėǇƋėƎļėŝĉėĐĉķëƎƢėƎėĐƖėĉƎėƢëƎǈ ǂļƢķ ƖļİŝļǘĉëŝƢ ļŝƖļİķƢ ļŝƢŨ ,ŝƢëļŝ ëŝĐ Ƣķė śëƎŏėƢƖ ļŝ which it operates following his 16 years at the Group, over which time he has overseen the Group evolve from holding two gambling licences to more than 100. His experience ëŝĐ ŏŝŨǂŒėĐİė ķëƖ Ĉėėŝ ļŝƖƢƎƪśėŝƢëŒ ƢŨ Ƣķė EƎŨƪƋȼƖ growth and development, and his appointment as Chief EŨǁėƎŝëŝĉė {įǘĉėƎ ƎėǙėĉƢƖ Ƣķė ļśƋŨƎƢëŝĉė Ƣķė ŨëƎĐ places on regulatory, legal and governance matters, all of which are central to our long-term growth plans to build a responsible and sustainable business of global scale and world class standards. Rob Wood ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎɆëŝĐɆ$ėƋƪƢǈɆ,{ Tenure: ƋƋŨļŝƢėĐ ƢŨ Ƣķė ŨëƎĐ ëƖ ķļėį DļŝëŝĉļëŒ {įǘĉėƎ in March 2019; the role of Deputy CEO was added to his portfolio in January 2021. Age: 42 Nationality: British Biography: Rob joined Entain in 2012 and worked in senior ƎŨŒėƖǂļƢķļŝǘŝëŝĉėȚļŝĉŒƪĐļŝİëƖD{ŨįƢķėEƎŨƪƋȼƖƎėƢëļŒ business. Prior to Entain, he was senior vice president ëƢ ėƎĈėƎƪƖ ëƋļƢëŒȚ ŨǁėƎƖėėļŝİ Ƣķė ƋƎļǁëƢė ėƍƪļƢǈ ǘƎśȼƖ European portfolio companies and worked in restructuring advisory at Rothschild. Rob started his career at KPMG ǂķėƎėķėƍƪëŒļǘėĐëƖëĉķëƎƢėƎėĐëĉĉŨƪŝƢëŝƢëŝĐķŨŒĐƖë degree in Mathematics and Management Studies from the University of Nottingham. Key strengths and experience: ¡ŨĈĈƎļŝİƖėǇƢėŝƖļǁėǘŝëŝĉļëŒėǇƋėƎļėŝĉėƢŨƢķė Board from private equity, banking and accountancy. LļƖɇŏŝŨǂŒėĐİė Ũį ,ŝƢëļŝȼƖ ĈƪƖļŝėƖƖ ëŝĐ ėǇƋėƎļėŝĉė ļŝ creating value through mergers and acquisitions enables him to effectively carry out his broad portfolio as CFO and $ėƋƪƢǈɇ,{ș Jette Nygaard-Andersen ķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎ Tenure: Appointed to the Board as Non-Executive Director in December 2019. Appointed as Chief ,ǇėĉƪƢļǁė{įǘĉėƎëŝĐ,ǇėĉƪƢļǁė$ļƎėĉƢŨƎļŝëŝƪëƎǈ 2021. Outside interests: Non-executive director of Coloplast AS (a medical technology company listed on the Copenhagen Stock Exchange) and a member of their remuneration and nomination committees. Age: 53 Nationality: Danish Biography: Jette held a number of senior leadership roles at Modern Times Group AB, a listed international entertainment group with a strong presence in Scandinavia and Central Europe. These included being chief executive of Pay TV, Broadcasting and, latterly, CEO of Digital Video Content, which had ownership in next generation digital entertainment businesses such as video gaming companies, esports and social content platforms. She also chaired the board of Astralis Group A/S, an international esports organisation. Key strengths and experience: Jette joined as Chief Executive on 21 January 2021, having previously spent one year on the Entain Board as a Non-Executive Director. She has over two decades of leadership experience in the media, sports and entertainment sectors, including working with companies to disrupt industries through global technology in international markets. Jette has a proven track record in digital transformation, optimisation of customer experience and engagement and working with digital growth start-ups globally. Pierre Bouchut Independent Non-Executive Director Tenure: Appointed September 2018 Outside interests: Non-executive director, board member of Tom & Co and chairman of the audit committees at Pepco Group, Firmenich SA, Albioma SA and GeoPost SA. Age: 66 Nationality: French Committee / attendance: A 7/7 N 3/3 Biography: ļėƎƎė ǂëƖ Ƣķė ĉķļėį ǘŝëŝĉļëŒ ŨįǘĉėƎ įŨƎ ©ĉķŝėļĐėƎ EƎŨƪƋ ȩǥǣǣǨȯǥǣǣǬȪȚ Ƣķė ĉķļėį ŨƋėƎëƢļŝİ ŨįǘĉėƎ for Europe at Koninklijke Aholddelhaize N.V. (2016-2018), ĉķļėį ǘŝëŝĉļëŒ ŨįǘĉėƎ ëƢ $ėŒķëļǒė EƎŨƪƋ ©Ț DƎėŝĉķ multi-national grocery group (2012-2016), Carrefour SA (2009-2012), Schneider Electric SA (2005-2009) and Casino (1995-2003). He was also a non-executive director of Hammerson plc (2015-2021). Prior to this, Pierre worked for Citibank, Bankers Trust and as a consultant with McKinsey. Key strengths and experience: Pierre has lengthy experience in senior executive and ŝŨŝȯėǇėĉƪƢļǁėƎŨŒėƖëĉƎŨƖƖǘŝëŝĉėȚƎėƢëļŒȚƋƎŨƋėƎƢǈ ëŝĐļŝĐƪƖƢƎǈëƖǂėŒŒëƖĐėėƋŏŝŨǂŒėĐİėŨįǘŝëŝĉļëŒ and audit committee practice. His familiarity with the management of large, internationally listed companies gives him extensive understanding of regulation, accounting standards and management practice. This ĈƎŨëĐėǇƋėƎļėŝĉėśëŏėƖķļśƖƪļƢėĐƢŨĉķëļƎ,ŝƢëļŝȼƖƪĐļƢ ŨśśļƢƢėė ëŝĐ ƢŨ ëĉƢ ëƖ ļƢƖ ǘŝëŝĉļëŒ ėǇƋėƎƢș Key: A Audit Committee Member R Remuneration Committee Member N Nomination Committee Member E ESG Committee Member A Audit Committee Chair R Remuneration Committee Chair N Nomination Committee Chair E ESG Committee Chair Stella David Senior Independent Director Tenure: Appointed March 2021 Outside interests: pŨŝȯėǇėĉƪƢļǁė ĐļƎėĉƢŨƎ Ũį $ŨśļŝŨȼƖ Pizza Group plc (where she chairs the remuneration committee), HomeServe plc, Norwegian Cruise Line Holdings and privately owned Bacardi Ltd. Age: 59 Nationality: British Committee / attendance: R 7/7 N 1/1 E 7/7 Biography: Stella David was previously CEO of William Grant & Sons, following more than 15 years with Bacardi Ltd where she undertook a number of roles culminating ļŝǘǁėǈėëƎƖëƖİŒŨĈëŒĉķļėįśëƎŏėƢļŝİŨįǘĉėƎȚëŝĐƪŝĐėƎ ķėƎ ŒėëĐėƎƖķļƋ ëĉëƎĐļ ǘŝļƖķėĐ ļŝ Ƣķė ½bȼƖ ƢŨƋ Ǥǣ Ũį Ƣķė ©ƪŝĐëǈ¶ļśėƖȻǤǣǣėƖƢŨśƋëŝļėƖƢŨÕŨƎŏDŨƎȼȚǘǁė years in a row, earning her a life-time achievement award. She was chair of C&J Clark Ltd and spent seven years as a non-executive director at the Nationwide Building Society, where she chaired the remuneration committee. Key strengths and experience: Stella brings extensive management and marketing experience to the Board through previous roles in high- ƋƎŨǘŒė ĉŨŝƖƪśėƎ ĈƎëŝĐėĐ ĉŨśƋëŝļėƖș LėƎ ŝŨŝȯėǇėĉƪƢļǁė roles have given her an insight into corporate governance best practice and investor expectations which will be ĈėŝėǘĉļëŒ ƢŨ Ƣķė ŨëƎĐ ǂķėŝ ļƢ ĉŨŝƖļĐėƎƖ ļƢƖ ėŝİëİėśėŝƢ with shareholders. Key: A Audit Committee Member R Remuneration Committee Member N Nomination Committee Member E ESG Committee Member A Audit Committee Chair R Remuneration Committee Chair N Nomination Committee Chair E ESG Committee Chair Entain plc | Annual Report 2021 90 Governance Virginia McDowell Independent Non-Executive Director Designated Workforce Director Tenure: Appointed June 2018 Outside interests: Vice-president of Global Gaming ÕŨśėŝȚëŝŨŝȯƋƎŨǘƢŨƎİëŝļƖëƢļŨŝǂļƢķëśļƖƖļŨŝƢŨ ƖƪƋƋŨƎƢȚ ļŝƖƋļƎė ëŝĐ ļŝǙƪėŝĉė Ƣķė ĐėǁėŒŨƋśėŝƢ Ũį ǂŨśėŝ in the gaming industry through education and mentoring and trustee of St Louis University. Age: 64 Nationality: American Committee / attendance: E 6/6 N 3/3 R 8/8 Biography: Virginia was the president and CEO of Isle of Capri Casinos, Inc. in the United States from 2011 until her retirement in 2016, and the president and COO of Isle of Capri (2007- 2011). Prior to this she was the chief ļŝįŨƎśëƢļŨŝŨįǘĉėƎëƢ¶ƎƪśƋ,ŝƢėƎƢëļŝśėŝƢ¡ėƖŨƎƢƖȩǥǣǣǨȯ 2007) and senior vice president of operations. Virginia is ëŒƖŨ Ƣķė ǘƎƖƢ ǂŨśëŝ ƢŨ Ĉė ļŝĐƪĉƢėĐ ļŝƢŨ Ƣķė nļƖƖļƖƖļƋƋļ Gaming Hall of Fame. Key strengths and experience: Virginia has spent her entire career in the gaming sector, with 40 years of experience in top US publicly traded gaming corporations. She possesses a deep understanding of the diversity and regulatory challenges of the gaming business which has assisted the Board and the ESG Committee and has engaged with our stakeholders in her role as designated Workforce Director. Her hard work has been recognised over the years with several prestigious awards. David Satz Independent Non-Executive Director Tenure: Appointed October 2020 Outside interests: Member of the board of a commercial gaming and hospitality entity established by the Eastern Band of Cherokee Indians (EBCI). Age: 62 Nationality: American Committee / attendance: E 6/6 A 3/3 Biography: David was senior vice president of Government Relations and Development for Caesars Entertainment Corporation in Las Vegas, where he worked from 2002 to 2019 and had responsibility for overseeing ëėƖëƎƖȼ İŨǁėƎŝśėŝƢ ëĉƢļǁļƢļėƖ įŨƎ śŨƎė Ƣķëŝ Ǩǥ ƋƎŨƋėƎƢļėƖ in 15 states in the US and several other countries around the world. Prior to this he spent 16 years at the US law ǘƎś ©ëļĈėƎ ©ĉķŒėƖļŝİėƎ ©ëƢǒ EŨŒĐƖƢėļŝ ddȚ ǂķėƎė ķė ķëĐ a particular focus on the gaming industry and played a key role in numerous regulatory and legislative initiatives throughout the US. Key strengths and experience: David has unrivalled regulatory and legislative expertise in the all-important US gaming market. His knowledge and insight has been invaluable to the Board as it seeks to achieve its strategy of being the leading operator in the US through BetMGM, our fast-growing joint venture with MGM Resorts. Vicky Jarman Independent Non-Executive Director Tenure: Appointed March 2021 Outside interests: Non-executive director of Great Portland Estates Plc and Melrose Industries Plc. Age: 49 Nationality: British Committee / attendance: A 6/6 R 7/7 Biography: Vicky spent over a decade working with dëǒëƎĐ ëŝĐ Ũ dƢĐ ļŝ ļƢƖ ĉŨƎƋŨƎëƢė ǘŝëŝĉė Ƣėëś ǂķėƎė Ɩķė ķėŒĐ ǁëƎļŨƪƖ ƖėŝļŨƎ ƎŨŒėƖ ļŝĉŒƪĐļŝİ ĉķļėį ŨƋėƎëƢļŝİ ŨįǘĉėƎ for the London and Middle East operations until 2009. Prior ƢŨƢķļƖƖķėƍƪëŒļǘėĐëƖëĉķëƎƢėƎėĐëĉĉŨƪŝƢëŝƢëƢbnEș She was previously a non-executive director and chair of the audit committees of each of Equiniti Group plc, Hays plc and De La Rue plc, the senior independent director at Equiniti Group plc and non-executive director of Knight Frank LLP and Signature Aviation plc. Key strengths and experience: Ôļĉŏǈ ķëƖ ĐėėƋ ĉŨƎƋŨƎëƢė ǘŝëŝĉė ëŝĐ ëĉĉŨƪŝƢļŝİ knowledge. Her extensive non-executive directorship career at international and FTSE companies, including membership of audit and remuneration committees has ĈƎŨƪİķƢįƪƎƢķėƎĐėƋƢķëŝĐƖƢƎëƢėİļĉļŝƖļİķƢƢŨ,ŝƢëļŝȼƖ Board. Peter Isola Independent Non-Executive Director Tenure: Appointed February 2016 Outside interests: Commissioner to the Gibraltar Financial Services Commission. Non-executive director of Gibraltar International Bank. Age: 63 Nationality: British Committee / attendance: E 6/6 Biography: Peter is the Senior Partner of ISOLAS LLP, EļĈƎëŒƢëƎȼƖ ŒŨŝİėƖƢ ėƖƢëĈŒļƖķėĐ Œëǂ ǘƎśș Lė ļƖ ë įŨƎśėƎ President of the Gibraltar Chamber of Commerce and advises the Government of Gibraltar on a number of ĉŨśśļƢƢėėƖ ļŝ ĈŨƢķ ǘŝëŝĉļëŒ ƖėƎǁļĉėƖ ëŝĐ İëśļŝİș Key strengths and experience: ėƢėƎķëƖǂŨƎŏėĐļŝƢķėİëśļŝİëŝĐǘŝëŝĉļëŒƖėƎǁļĉėƖ sector all of his professional life and is widely recognised and respected as a leading expert in gaming law and regulation. LļƖǂėëŒƢķŨįėǇƋėƎļėŝĉėǂļƢķļŝƢķėǘŝëŝĉļëŒƖėƎǁļĉėƖȚ insurance and gaming sectors, and in-depth knowledge enables him to contribute important insight and perspective to the Board and ESG Committee discussions as well as provide constructive challenge on strategy. Mark Gregory Independent Non-Executive Director Tenure: Appointed March 2021 Outside interests: Non-executive director of Direct Line Insurance plc where he chairs the board risk committee and is a member of the audit, remuneration and investment committees. Age: 58 Nationality: British Committee / attendance: R 6/6 N 1/1 A 6/6 Biography: Mark was the CEO of Merian Global Investors from 2019 to 2020. Prior to this, he held the role of group CFO and executive director at Legal & General Group plc until 2017. During his 19-year career at Legal & General, he held a variety of other senior roles including CEO of the ©ëǁļŝİƖ ĈƪƖļŝėƖƖȚ śëŝëİļŝİ ĐļƎėĉƢŨƎ Ũį Ƣķė ÕļƢķȯƎŨǘƢȼƖ business, director of service operations, group HR director and international director. Before joining Legal & General, nëƎŏ ķėŒĐ ƖėŝļŨƎ ǘŝëŝĉļëŒ ëŝĐ ĈƪƖļŝėƖƖ ĐėǁėŒŨƋśėŝƢ ƎŨŒėƖ ëƢ ƖĐë ëŝĐ bļŝİǘƖķėƎș Key strengths and experience: nëƎŏ ķëƖ ėǇƢėŝƖļǁė ŏŝŨǂŒėĐİė Ũį ǘŝëŝĉļëŒ ƖėƎǁļĉėƖ and a focus on customers through his lengthy career in the insurance and retail sectors. He is an experienced ƎėśƪŝėƎëƢļŨŝĉŨśśļƢƢėėĉķëļƎǂķŨĈƎļŝİƖĐėėƋǘŝëŝĉļëŒȚ commercial and corporate governance expertise to ƢķėɇŨëƎĐș Board of Directors continued 91Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ķļėįEŨǁėƎŝëŝĉė{įǘĉėƎȼƖ¡ėƋŨƎƢ The Board Since my last annual report the Board appointed Mark Gregory as an independent Non-Executive Director as the Chair of the Remuneration Committee. The Board now consists of the Chairman, three Executive Directors and seven independent Non- Executive Directors, with female Directors making up 36% of the ŨëƎĐȼƖ śėśĈėƎƖķļƋș Qŝ ŒëƖƢ ǈėëƎȼƖ ¡ėƋŨƎƢ ǂė ŨƪƢŒļŝėĐ ƢķëƢ ©ëŝĐėėƋ ¶ļŏƪȚ ,ŝƢëļŝȼƖ {{ was due to become a Director once he relocated from India to Gibraltar. This move was frustrated in 2021 by the ongoing global pandemic travel restrictions and Sandeep being hospitalised by ƢķėǁļƎƪƖȩķėśëĐėëįƪŒŒƎėĉŨǁėƎǈȪș©ëŝĐėėƋķëƖŝŨƢļǘėĐƢķėEƎŨƪƋ that he no longer intends to relocate to Gibraltar and will therefore not be appointed to the Board. As a result, the Board will not meet the recommendations of the Parker Review on an ethnically diverse composition. The Board believes an inclusive and diverse membership results in optimal decision-making. Our Nomination Committee is undertaking an active search to appoint a Director from an ethnically diverse background. Entain’s Governance Team We have continued to strengthen the governance team at Entain. As mentioned in my 2020 report, our new General Counsel, Simon Zinger joined the Group in February 2021. Simon comes from outside the industry and with a fresh pair of eyes he has been instrumental to making enhancements to our governance and compliance practises and overseeing further changes and recruitment into the legal and regulatory compliance teams, with a ŏėǈƋļŒŒëƎŨį,ŝƢëļŝȼƖ ESG strategy is to adopt a gold standard corporate İŨǁėƎŝëŝĉėɇįƎëśėǂŨƎŏșȺ Robert Hoskin ķļėį EŨǁėƎŝëŝĉė {įǘĉėƎ particular focus on succession planning and improving the bench strength of the teams. Martin Lycka moved from being the Director of Regulatory Affairs to a new role based in the USA, Senior Vice President of American Regulatory Affairs and Responsible EëśĈŒļŝİȚŨǁėƎƖėėļŝİ,ŝƢëļŝȼƖļŝļƢļëƢļǁėƖļŝƢķėƖėëƎėëƖļŝpŨƎƢķ and Latin America. This move has already paid dividends as Entain ǂŨŝ©ǂëƎĐȼƖpŨƎƢķśėƎļĉë©ŨĉļëŒŒǈ¡ėƖƋŨŝƖļĈŒė{ƋėƎëƢŨƎŨį the Year at the end of 2021. In conjunction with this change, Grainne Hurst expanded her UK regulatory affairs remit and took over regulatory affairs oversight for the rest of the world (excluding the Americas), whilst also retaining her management of our safer gambling strategy. Grainne and her team, were key to planning and the success of our industry leading Entain Sustain event held in November, which is reported on separately. Grainne works closely with Peter Marcus who was appointed to the new role of Director of Regulatory Operations at the beginning of 2021 and in this position Peter has been managing the development and roll-out of our sector leading Advanced Responsibility & Care™ (ARC™) programme. ARC™ is a critical element of our commitment to responsibility and sustainability and commentary on this project can be found on pages 46 to 47. All four roles mentioned above attend ESG Committee meetings and have direct access to Virginia McDowell who chairs the Committee. Entain plc | Annual Report 2021 92 Governance Governance & Compliance Review $ƪƎļŝİɆǥǣǥǤɆŒǁëƎėǒɆʁɆnëƎƖëŒȚɆëŝɆļŝĐėƋėŝĐėŝƢɆƋƎŨįėƖƖļŨŝëŒɆǘƎśȚɆ ĉŨśƋŒėƢėĐɆƢķėļƎɆƎėǁļėǂɆŨįɆƢķėɆEƎŨƪƋȼƖɆİŨǁėƎŝëŝĉėɆëŝĐɆĉŨśƋŒļëŝĉėɆ ƋƎëĉƢļĉėƖșɆɆŏėǈɆƋļŒŒëƎɆŨįɆ,ŝƢëļŝȼƖɆƖƪƖƢëļŝëĈļŒļƢǈɆƖƢƎëƢėİǈɆļƖɆƢŨɆëĐŨƋƢɆ a gold standard corporate governance framework and it was logical to bring in a third party to review our arrangements to get an objective analysis and avoid Entain being accused of marking its own homework. This thorough review process, which took several months and with which all colleagues cooperated concluded well, with ŒǁëƎėǒɆʁɆnëƎƖëŒɆśëŏļŝİɆƢķėɆįŨŒŒŨǂļŝİɆĉŨśśėŝƢƖɆļŝɆƢķėļƎɆǘŝëŒɆ summary report: “In our view, Entain has put in place all the key components of a compliance framework to enable it to identify and manage its İėŝėƎëŒɆĉŨśƋŒļëŝĉėɆëŝĐɆƎėİƪŒëƢŨƎǈɆƎļƖŏƖșȺ ȹQƢɆļƖɆĉŒėëƎɆƢķëƢɆƢķėƎėɆķëƖɆĈėėŝɆëɆƖļİŝļǘĉëŝƢɆļŝǁėƖƢśėŝƢɆļŝɆ both resources and technology to develop and implement the compliance framework over recent years. The arrangements provide for clear Board and senior level oversight of compliance risk and how it is being mitigated, including through a governance structure of committees that enables oversight, discussion, and escalation of issues. We observed a good ‘tone from the ƢŨƋȼɆƢķëƢɆļƖɆĐƎļǁļŝİɆƢķėɆĐėǁėŒŨƋśėŝƢɆŨįɆƖƢƎŨŝİɆİŨǁėƎŝëŝĉėɆŨǁėƎɆ ĉŨśƋŒļëŝĉėɆļƖƖƪėƖșȺ “We noted a strong culture during our interviews with key staff and executives of driving improvement and enhancement. The committee and escalation framework provides a mechanism for issues to be escalated to the appropriate level. We noted that management responds appropriately to Internal Audit issues and ĉķëŒŒėŝİėɆįƎŨśɆƢķėɆŨëƎĐɆëŝĐɆļƢƖɆŨśśļƢƢėėƖșȺ ɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȼƖɆ¡ėƋŨƎƢɆcontinued Entain’s governance reporting structure: Chief Governance {įǘĉėƎ Covers plc and subsidiary corporate governance Covers legal, data privacy & security, regulatory compliance and Group anti-money laundering Covers regulatory affairs and responsible gambling in the US, Canada & Latin America Covers global (excluding the Americas) ƎėİƪŒëƢŨƎǈɇëŝĐɆ government affairs and global safer gambling strategy Covers design & implementation of ARC™ and regulatory ŨƋėƎëƢļŨŝëŒɇĉķëŝİėƖ Key areas of focus for 2022 Address the recommendations in the ŒǁëƎėǒɇʁɇnëƎƖëŒɆƎėƋŨƎƢș Enhance colleague governance and compliance training with further recruitment overseen by a newly recruited Group Head of Ethics & Compliance. Continue to enter new domestically licensed markets with a focus on the Americas, Africa and Eastern Europe. Develop and roll-out ARC™ in selected international markets. Continue to progress resolution of the HMRC investigation. Hold a follow-up Entain:Sustain conference to ensure ongoing transparency and accountability around our ESG practises. General Counsel Senior VP for American Regulatory Affairs & Responsible Gaming Director of Corporate Affairs Director – Regulatory Operations Company Secretary 93 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Whilst the Board is pleased with the overall conclusion, it recognises Entain is on a journey and so there were some recommendations ĉŨśļŝİɆŨƪƢɆŨįɆƢķėɆƎėƋŨƎƢȜɆƢķėɆŨŝėȼƖɆĈėļŝİɆśŨƖƢɆƋėƎƢļŝėŝƢɆƢŨɆƢķėɆŨëƎĐɆëŝĐɆļƢƖɆŨśśļƢƢėėƖɆëƎėɆƖėƢɆŨƪƢɆļŝɆƢķėɆƢëĈŒėɆĈėŒŨǂț Alvarez & Marsal Recommendation Entain Response ESG Committee: responsibilities The ESG Committee yearly agenda is substantial, encompassing a broad range of topics: risk, compliance, environmental and social issues. The Group recognise this and as a result, the number of meetings per year has been increased to six to accommodate the increased agenda. ÕėɆƎėĉŨśśėŝĐɆƢķëƢɆƢķėɆŨëƎĐɆƖƋėĉļǘĉëŒŒǈɆĉŨŝƖļĐėƎɆļŝɆ its annual evaluation if the current structure has enabled ƖƪįǘĉļėŝƢɆįŨĉƪƖɆŨŝɆĉŨśƋŒļëŝĉėɆļƖƖƪėƖɆëŝĐɆƖƪįǘĉļėŝƢɆƢļśėɆįŨƎɆ the appropriate depth and challenge in meetings. Management has considered (including the UK and QŝƢėƎŝëƢļŨŝëŒɆŨśƋŒļëŝĉėɆ$ļƎėĉƢŨƎƖȪɆëŝĐɆĉŨŝǘƎśėĐɆƢķëƢɆ the current reporting and meeting structure enables a ƖƪįǘĉļėŝƢɆŒėǁėŒɆŨįɆŨǁėƎƖļİķƢɆŨįɆĉŨśƋŒļëŝĉėɆļƖƖƪėƖɆįŨƎɆƢķėɆ ESG Committee. The ESG Committee has also reviewed this as part of the annual performance evaluation and ĉŨŝǘƎśƖɆƖƪįǘĉļėŝƢɆƢļśėɆļƖɆëŒŒŨĉëƢėĐɆƢŨɆĉŨśƋŒļëŝĉėɆļƖƖƪėƖșɆ As the Group acquires licences in more jurisdictions and regulation generally evolves and matures, this matter will be reviewed annually. Board Risk Committee In order to maintain adequate oversight of key risks as the risk framework matures and to demonstrate effective corporate governance, establishing a Board Risk Committee ǂŨƪŒĐɆĈėȚɆļŝɆŨƪƎɆǁļėǂȚɆĈŨƢķɆĈėŝėǘĉļëŒɆëŝĐɆŝėĉėƖƖëƎǈș Having considered the responses to the Board performance annual evaluation the Board does not consider it the right śŨśėŝƢɆƢŨɆƖėƢɆƪƋɆëɆǘįƢķɆŨëƎĐɆŨśśļƢƢėėɆƢŨɆƖŨŒėŒǈɆŨǁėƎƖėėɆ risk. The Board believes that for the time-being risk is adequately overseen by the Board, Audit Committee and the ESG Committee. As risk governance is expected to evolve further in the Group (see below), the Board will revisit this point in 2023. Board Committee responsibilities The control oversight at Board level is split between the Audit Committee and the ESG Committee. Until recently second and third line inputs on controls were segmented across the Audit Committee and the ESG Committee. Internal Audit and Risk submitted to the Audit Committee, and Compliance to the ESG Committee. Internal Audit reports are now also submitted to the ESG Committee. We recommend that both Committees review the scope of the materials received to ĉŨŝǘƎśɆƢķëƢɆļƢɆƖƪƋƋŨƎƢƖɆƢķėɆƖĉŨƋėɆŨįɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆƖėƢɆŨƪƢɆļŝɆ their respective terms of reference. nëŝëİėśėŝƢɆķëƖɆƎėǁļėǂėĐɆëŝĐɆĉŨŝǘƎśėĐɆƢķëƢɆƢķėɆƪĐļƢɆ ŨśśļƢƢėėɆëŝĐɆ,©EɆŨśśļƢƢėėɆƎėĉėļǁėɆƖƪįǘĉļėŝƢɆļŝįŨƎśëƢļŨŝɆ and materials from Internal Audit and Compliance teams in order to meet their duties under the terms of reference. ¶ķėɆƪĐļƢɆëŝĐɆ,©EɆŨśśļƢƢėėƖɆķëǁėɆĉŨŝǘƎśėĐɆëƖɆƋëƎƢɆ of the annual performance evaluation that the Directors ëƎėɆĉŨśįŨƎƢëĈŒėɆƢķëƢɆėëĉķɆŨśśļƢƢėėɆƎėĉėļǁėƖɆƖƪįǘĉļėŝƢɆ information to allow them to perform their duties. Second line compliance testing Additional staff resources are currently being added to Compliance to enable Compliance to perform second line testing. We recommend that this Compliance testing ëĉƢļǁļƢǈɆļƖɆƢķŨƪİķƢįƪŒŒǈɆĉŨŨƎĐļŝëƢėĐɆǂļƢķɆĈŨƢķɆƢķėɆǘƎƖƢɆŒļŝėɆ and Internal Audit so that there is an effective three lines of defence approach. Compliance testing should be focused ŨŝɆśŨŝļƢŨƎļŝİɆƢķėɆėįįėĉƢļǁėŝėƖƖɆŨįɆƢķėɆǘƎƖƢɆŒļŝėɆĉŨŝƢƎŨŒƖɆŨǁėƎɆ business/operational activity. Compliance management in consultation with Internal Audit had already decided prior to the review to move the second line of defence from under the Director of Internal Audit to under the Compliance Directors to make the second line ƎėǁļėǂɆƋƎŨĉėƖƖɆśŨƎėɆĐǈŝëśļĉɆļŝɆėŝİëİļŝİɆǂļƢķɆƢķėɆǘƎƖƢɆ line. Compliance, AML and Internal Audit leads have been liaising to establish this function and consider resourcing. This function has now been set up and resources recruited in both the UK and International Compliance teams. A 2022 risk-based compliance monitoring plan has been actioned. Risk Function We recommend that the Risk function is given more weight in the organisation. It should be a better resourced, free- standing second line function with a more complete set of risk tools and capabilities and should be led by a senior person. Whilst progress on the evolution of our Group-wide Risk Management Framework has been hampered during 2021 following the loss of our Head of Risk for personal reasons, we have continued to develop and extend the capabilities of the Group Risk function during the year as discussed in the Risk section of the Annual Report. Whilst the evolution of the Risk function continues, śëŝëİėśėŝƢɆëĉŏŝŨǂŒėĐİėɆëŝĐɆëĉĉėƋƢɆƢķėɆǘŝĐļŝİɆŨįɆƢķėɆ Alvarez and Marsal review. As such, management have committed to presenting all options available to the Board for accelerating the evolution of the Risk function and the creation of a stand-alone second line of defence. The Board will then decide on the direction of the Risk function and its objectives for 2022 and beyond. Entain plc | Annual Report 2021 94 Governance Compliance Committees During the year the management team has moved from a monthly Executive Compliance Committee reviewing developments across all jurisdictions to establishing a number of sub-committees focused on particular jurisdictions such as the UK, US, Germany and Australia. This was done in recognition of the fact that gambling regulation continues to develop and become more complex and the Group is obtaining more licences. The sub- committees allow more time for a deeper dive into the issues associated with a particular territory. Regulatory Strategy Status In November 2020 Entain announced as part of its sustainability strategy that it would only take revenues from countries where the Group held a domestic licence, or could partner with a locally licensed operator or the jurisdiction was in the process of introducing a regulatory regime under which the Group could apply for a licence. In 2021 Entain acquired the Bet.pt and Enlabs businesses, bringing into our licence portfolio licences in Portugal, Latvia, Estonia and Lithuania. Entain was also successful in May in getting re-licensed in the state of Nevada. The Group is now licensed in 31 territories and its US JV partnership, BetMGM is licensed and operational now in 21 US markets. As part of our regulated market commitment, we also closed our gambling offerings in a further seven countries where we concluded there was little or no realistic licensing opportunity. The largest of these markets was Russia, where the Group has concluded that there are no prospects of obtaining a legitimate licence for any of its sports betting or gaming offerings on commercially attractive terms. For 2022 we are planning on entering at least two African markets with our bwin brand, the Polish sports betting market, the Dutch sports betting and gaming market, the Mexican gambling market and securing a licence in the Canadian state of Ontario. We also expect to gain further licences in 2022 as we complete various M&A projects. HMRC Update We have previously disclosed that the Group is cooperating with a ŒŨŝİȯƎƪŝŝļŝİɆļŝǁėƖƢļİëƢļŨŝɆĈǈɆƢķėɆ½bȼƖɆƢëǇɆëƪƢķŨƎļƢǈȚɆLnɆ¡ėǁėŝƪėɆ ʁɆƪƖƢŨśƖɆȩȹLn¡ȺȪɆļŝƢŨɆëɆŝƪśĈėƎɆŨįɆįŨƎśėƎɆƢķļƎĐɆƋëƎƢǈɆƖƪƋƋŒļėƎƖɆ ǂķŨɆƋƎŨǁļĐėĐɆƋëǈśėŝƢɆƋƎŨĉėƖƖļŝİɆƖėƎǁļĉėƖɆƢŨɆƢķėɆEƎŨƪƋȼƖɆŒėİëĉǈɆ Turkish-facing online gambling business. That business was sold in ǥǣǤǪșɆLn¡ȼƖɆļŝǁėƖƢļİëƢļŨŝɆļƖɆŨŝİŨļŝİɆļŝƢŨɆƢķėɆëĉƢļǁļƢļėƖɆŨįɆŨŝėɆŨƎɆ more members of the Group and the offences under investigation include, but are not limited to, offences under sections 1 and 7 of the Bribery Act 2010. The Group continues to cooperate fully with Ln¡ȼƖɆėŝƍƪļƎļėƖșɆ Robert Hoskin ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ 3 March 2022 ɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȼƖɆ¡ėƋŨƎƢɆcontinued 95 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Governance framework Regional Compliance Committees Divisional Risk Forum Functional Risk Forum Net Zero Group Group Compliance Committee Group Payment Processing Committee Group Risk Committee ESG Steering Group Global Leadership Team Direct reports to ExCo Approx. 20 people Senior Leadership Team Approx. 80 people Executive Committee (ExCo) Responsibilities Advisory Committee to support the CEO on ƢķėɆśëŝëİėśėŝƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŨŝëŒɆ ëŝĐɆǘŝëŝĉļëŒɆƋėƎįŨƎśëŝĉė CEO Audit Committee Responsibilities ɆɆ{ǁėƎƖļİķƢɆŨįɆǘŝëŝĉļëŒɆ reporting processes Integrity of ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ Reviews audit effectiveness including internal controls Supports the Board on risk management Advice on external auditor Nomination Committee Responsibilities Reviews composition of the Board and its Committees Leads Board appointments process Maintains strong NED pipeline Reviews independence and outside commitments of NEDs Reviews Board diversity policy Remuneration Committee Responsibilities Recommends the Remuneration Policy Determines remuneration packages of Executive Directors and ExCo members Monitors alignment of pay and incentives for the wider workforce Maintains dialogue with shareholders and workforce on remuneration Reports on implementation of the Remuneration Policy Chairman’s Committee Responsibilities Reviews structure and effectiveness of the EƎŨƪƋȼƖɆŨƎİëŝļƖëƢļŨŝɆ and management Reviews executive succession and performance ESG Committee Responsibilities Reviews ESG policies and controls for managing ƢķėɆEƎŨƪƋȼƖɆƎėŒëƢļŨŝƖķļƋƖɆ with stakeholders ɆɆnŨŝļƢŨƎƖɆƢķėɆEƎŨƪƋȼƖɆ,©EɆ performance, including against KPIs and ensures ƢķėɆ,©EɆƖƢƎëƢėİǈɆƎėśëļŝƖɆǘƢɆ for purpose Entain plc Board Entain plc | Annual Report 2021 96 Governance Board attendance and composition Director meeting attendance for 2021 ¶ķėɆŨëƎĐɆķëĐɆƖļǇɆƖĉķėĐƪŒėĐɆśėėƢļŝİƖɆļŝɆǥǣǥǤɆëŝĐɆëɆįƪƎƢķėƎɆǘǁėɆ ad-hoc meetings. Meetings attended/ eligible to attend Independent Chairman Barry Gibson 11/11 Independent upon appointment Executive Directors Shay Segev (resigned 21 January 2021) 2/2 Jette Nygaard-Andersen (appointed 21 January 2021) 8/8 Robert Hoskin 11/11 Rob Wood 11/11 Non-Executive Directors Pierre Bouchut 11/11 9 Stella David (appointed 4 March 2021) 6/6 9 Mark Gregory (appointed 17 March 2021) 6/6 9 Peter Isola 11/11 9 Vicky Jarman (appointed 4 March 2021) 6/6 9 Virginia McDowell 11/11 9 Stephen Morana (resigned 4 March 2021) 5/5 9 Jette Nygaard-Andersen (Non-Executive Director until 21 January 2021 when she was appointed CEO) 2/2 9 David Satz 11/11 9 Board Commitment, Balance and Independence ,ëĉķɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆȩȹp,$ȺȪɆśƪƖƢɆĈėɆëĈŒėɆƢŨɆĐėǁŨƢėɆ ƖƪįǘĉļėŝƢɆƢļśėɆƢŨɆƢķėɆƎŨŒėɆļŝɆŨƎĐėƎɆƢŨɆĐļƖĉķëƎİėɆķļƖɆŨƎɆķėƎɆ ƎėƖƋŨŝƖļĈļŒļƢļėƖɆėįįėĉƢļǁėŒǈɆëŝĐɆƢķėɆŨëƎĐɆļƖɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆ ķëļƎśëŝɆëŝĐɆėëĉķɆŨįɆƢķėɆp,$ƖɆĐėǁŨƢėƖɆƖƪįǘĉļėŝƢɆƢļśėɆƢŨɆ their duties. Excluding the Chairman, of the remaining ten Directors, seven are independent NEDs. The Nomination Committee, having considered the matter carefully, is of the opinion that all the current NEDs remain independent. The composition of all Board Committees complies with the 2018 Code recommendations. 97 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Roles and responsibilities of the Entain Board Accountability Responsible for the long-term success ŨįɇƢķėɆEƎŨƪƋ Establishes strategy and monitors its implementation Has regard to the interests of stakeholders ļŝɇļƢƖɇĐėĉļƖļŨŝɆśëŏļŝİ Leads and directs the Group’s values, ĉƪŒƢƪƎėɇëŝĐɆƋƪƎƋŨƖė Responsible for risk oversight Sets the standards of integrity, ethics and conduct within the Group Ɇ¡ėƖƋŨŝƖļĈŒėɆįŨƎɆƢķėɆŨǁėƎëŒŒɆǘŝëŝĉļëŒɆ ƋėƎįŨƎśëŝĉėɇŨįɆƢķėɆEƎŨƪƋ Responsible for the Group’s corporate governance Entain plc Board Non-Executive Senior Independent Director Supports the Chairman in his role Leads the Non-Executive Directors in evaluating the performance of the Chairman Acts as intermediary for other Non-Executive Directors when required Be available to shareholders if they have concerns which have failed to be resolved by the Chairman, CEO or CFO Leads an orderly succession process for the Chairman Chairs the Board in the absence of the Chairman Chairman Leads the Board and is responsible for its overall effectiveness Ensures the Board as a whole develops and determines ƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİǈɆ and objectives Acts as guardian of the ŨëƎĐȼƖɆĐėĉļƖļŨŝɆśëŏļŝİ Oversees the effective engagement with stakeholders Responsible for succession planning, director development and evaluation Non-Executive Director Constructively challenges and contributes to the development of the strategy Monitors the EƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėɆ ,ŝƖƪƎėƖɆƢķëƢɆǘŝëŝĉļëŒɆ information is accurate and that both controls and the system of risk management are effective and robust Responsible for determining Executive Director remuneration and overseeing succession planning of Executive management Executive CFO and Deputy CEO {ǁėƎƖėėƖɆŨƪƎɆǘŝëŝĉļëŒɆ operations, including ëĉĉŨƪŝƢļŝİȚɆǘŝëŝĉļëŒɆ reporting, tax, control and treasury $ļƎėĉƢƖɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆ objectives and budget Funds, enables and executes ƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİǈ Provides insight and analysis to support the CEO and ExCo Responsible for M&A activity Responsible for Retail operations CEO Leads the Group Articulates and acts as a role model for our values, culture and purpose Proposes and implements strategy Manages the Executive ŨśśļƢƢėėɆȩȹ,ǇŨȺȪ Responsible, with the ExCo, for implementing the decisions of the Board and its Committees Promotes and conducts the highest standards of integrity within the Group Engages with stakeholders Responsible for the EƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉė Chief Governance {įǘĉėƎ ɆɆ{ǁėƎƖėėƖɆƢķėɆEƎŨƪƋȼƖɆ governance framework Oversees the Legal and Compliance function Oversees government and regulatory affairs Chairs the Executive Environmental, Social and Governance Steering Group Chairs the Group Risk Committee Chairs the Group Compliance and Group Payments Processing Committees Oversight Entain plc | Annual Report 2021 98 Governance Employee Forum Virginia McDowell, Chair of the ESG Committee, appointed ëƖɆ$ėƖļİŝëƢėĐɆÕŨƎŏįŨƎĉėɆ$ļƎėĉƢŨƎɆļŝɆǥǣǤǬȚɆëƢƢėŝĐėĐɆ,ŝƢëļŝȼƖɆ Global Conference (representing colleagues across the Group) in December 2021. Throughout her attendance, Virginia actively engaged in conversations around the ongoing employee impact of the pandemic; mental health and well- being; women in leadership initiatives; the future of hybrid working models; and the cultural embedding of responsible betting and gaming practices within the Group. Other Board members, including Mark Gregory (Chair of the ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėȪȚɆëŒƖŨɆëƢƢėŝĐėĐɆ,ŝƢëļŝȼƖɆEŒŨĈëŒɆ Conference, answering questions from colleagues on a range of topics, including talent acquisition and retention initiatives; employee onboarding and training programmes; as well as the cultural embedding of company values, and the importance of the 2035 drive to reach net-zero. Board attendance to such events facilitates effective oversight of everyday life within the company for our employees; and enables the Board to: Understand how the strategy has been translated and implemented into everyday working practices. EëƪİėɆƢķėɆĐėİƎėėɆļŝɆǂķļĉķɆƢķėɆEƎŨƪƋȼƖɆǁëŒƪėƖɆķëǁėɆĈėėŝɆ culturally embedded. Understand what really matters to our colleagues. Engage with our colleagues in open, honest and candid conversations. The Board and stakeholder considerations ,ŝƢëļŝȼƖɆƋƪƎƋŨƖėɆļƖɆƢŨɆƎėǁŨŒƪƢļŨŝļƖėɆİëśĈŒļŝİɆƢŨɆĉƎėëƢėɆƢķėɆśŨƖƢɆ exciting and trusted entertainment for every customer; this puts ƖƢëŏėķŨŒĐėƎƖɆëƢɆƢķėɆĉėŝƢƎėɆŨįɆƢķėɆŨëƎĐȼƖɆĐėĉļƖļŨŝȯśëŏļŝİșɆ{ǁėƎɆƢķėɆ year the Board sought to promote our purpose and strategy and made decisions having considered the matters set out in s172 of the Companies Act 2006 (UK). Stakeholders ¶ķėɆŨëƎĐɆķëƖɆƎėƖƋŨŝƖļĈļŒļƢǈɆįŨƎɆŒėëĐļŝİɆƢķėɆEƎŨƪƋȼƖɆƖƢëŏėķŨŒĐėƎɆ engagement and considering the implications of key decisions on the Company and its stakeholders. The Board recognises that effective engagement with our stakeholders will drive long-term value creation, making Entain a company that people want to invest in, buy from, partner with and work for. ,ŝƢëļŝɆķëƖɆļĐėŝƢļǘėĐɆƖļǇɆƖƢëŏėķŨŒĐėƎɆĉëƢėİŨƎļėƖɆëŝĐɆŨƪƎɆƎėƋŨƎƢɆ ŨŝɆŨëƎĐɆĉƢļǁļƢļėƖɆƋƎŨǁļĐėƖɆëŝɆŨǁėƎǁļėǂɆŨįɆķŨǂɆƢķėɆEƎŨƪƋȼƖɆŏėǈɆ stakeholders are considered in Board discussions and deliberations on strategy. 1. Shareholders 2. Employees 3. Suppliers 4. Customers 5. Communities 6. Regulators During the year, the Board gave regard to the differing needs of its stakeholders in its decision making, recognising that the global pandemic had impacted their interests and views – for example, balancing the need to preserve cash to support our people, suppliers, customers and communities during a time of uncertainty ǁėƎƖƪƖɆŨƪƎɆƖķëƎėķŨŒĐėƎƖȼɆǂļƖķɆƢŨɆƎėĉėļǁėɆĐļǁļĐėŝĐɆļŝĉŨśėș Our people We have a number of colleague forums within Entain. These play an important role in providing our people with a voice and allow them to provide the business with valuable insight and feedback on a range of topics, including remuneration. Virginia McDowell, in her capacity as Designated Workforce Director, remains a regular attendee to Employee Forums, enabling her to provide the Board (and its Committees) with informed feedback and insight into the realities of everyday working life at Entain. ,ŝƢëļŝȼƖɆEŒŨĈëŒɆŨŝįėƎėŝĉėɆǂëƖɆķėŒĐɆļŝɆ$ėĉėśĈėƎɆǥǣǥǤșɆ The Conference considered a range of people-related topics from śėŝƢëŒɆķėëŒƢķɆƢŨɆėśƋŒŨǈėėɆŨŝĈŨëƎĐļŝİɆƋƎŨĉėƖƖėƖȚɆĈƪƢɆƖƋėĉļǘĉëŒŒǈɆ focused on the ongoing impact of the Covid-19 pandemic, both holistically across the Group, and the varied experience of individual business units. It was at this event that Mark Gregory (Chair of the Remuneration Committee) announced the increase to the minimum rate of pay in excess of the Real Living Wage for UK retail colleagues. The Conference supported the proposed increase, ëİƎėėļŝİɆƢķëƢɆëɆśŨƎėɆĉŨśƋėƢļƢļǁėɆƖëŒëƎǈɆƎėǙėĉƢėĐɆƢķėɆƖƢƎėŝİƢķɆëŝĐɆ resilience shown by UK retail colleagues throughout the pandemic; and would also enable the Company to attract and retain talent. DƎŨśɆëɆƎėśƪŝėƎëƢļŨŝɆƋėƎƖƋėĉƢļǁėȚɆnëƎŏɆEƎėİŨƎǈȼƖɆëƢƢėŝĐëŝĉėɆ at the Global Conference offered colleagues from across the Company the opportunity to openly share their experiences, ǁļėǂƖȚɆëŝĐɆƢķŨƪİķƢƖɆŨŝɆǂŨƎŏļŝİɆŒļįėɆëƢɆ,ŝƢëļŝȚɆëŝĐɆƖƋėĉļǘĉëŒŒǈɆ on remuneration. Valuable insights gained from this and future employee events enable Mark and the Remuneration Committee to better understand the individual roles our colleagues play in delivering our strategic objectives. Further information on Section 172 of the Companies Act 2006 can be found in the Strategic Report on: page 36 99 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Entain:Sustain event In November 2021, we held an inaugural sustainability ƖķŨǂĉëƖėɆȱɆ,ŝƢëļŝț©ƪƖƢëļŝɆȱɆǂķļĉķɆķļİķŒļİķƢėĐɆ,ŝƢëļŝȼƖɆ commitment to and progress in the areas of safer gambling, diversity and inclusion as well as wider societal and environmental initiatives. The event included a series of keynote speeches from prominent Entain colleagues, including Chief Executive Jette Nygaard-Andersen, ESG Committee ķëļƎɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒȚɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎɆ¡ŨĈėƎƢɆ Hoskin and Entain Foundation Chair, Ed Davis. The event was held physically in London with over 100 people attending in person, and nearly 200 delegates joining a specially developed platform online from across the UK, Europe and US. The audience included shareholders, regulators, legislators, media, as well as industry stakeholders and partners. Topics discussed included: ARC™: an update on the progress of our Advanced Responsibility and Care™ programme. Harvard Medical School Faculty giving an overview of studies they have conducted in the safer gambling space through their collaboration with Entain. Publication of a new Social Impact Report, measuring the human impact of our support and initiatives globally. Launch of the new EnTrain initiative – an Entain programme to support diversity within and access to technology. An update on the work of the Entain Foundation. Reducing our environmental impact. For further details see page 43 Shareholders The Board receives feedback on shareholder views in different ways, including through the Chairman and executive management who meet regularly with shareholders throughout the year, as well as an investor study compiled by an independent third party. Board members listen in to results and trading updates held by the Group for analysts and institutional investors and can hear directly the questions and comments on Company performance. The Chairman held one-to-one meetings with major institutional investors during the year, including during the two potential offers for the Group, collecting their views and sharing these with the rest of the Board. In addition, the Chair of the Remuneration Committee held calls with large institutional investors to discuss and receive feedback on potential developments for our Remuneration Policy. All resolutions put to the 2021 Annual General Meeting received overwhelming support of those investors who voted, being approximately 78% of our shareholder base (a moderate decrease over the 2020 vote of 82%). The results of the voting at all general meetings are published on our website: www.entaingroup.com. Entain plc | Annual Report 2021 100 Governance Key to stakeholder groups: S Shareholders E Employees Su Suppliers C Customers Co Communities R Regulators Strategy Response to potential offers S E Su C Co R Reviewed and discussed two potential offers for the Group. Formed a Defence Committee to consider a response and work with the EƎŨƪƋȼƖɆėǇƢėƎŝëŒɆëĐǁļƖŨƎƖș Held regular updates with the Board and advisors to discuss developments. Covid-19 S E Su C Co R Ɇ ŨŝƢļŝƪėĐɆƢŨɆśŨŝļƢŨƎɆëŝĐɆƎėǙėĉƢɆŨŝɆ ƢķėɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬɆŨŝɆƢķėɆEƎŨƪƋȼƖɆ employees, business and stakeholders. Ɇ ŨŝƖļĐėƎėĐɆķŨǂɆĈėƖƢɆƢŨɆƎėǙėĉƢɆƢķėɆ uncertainties associated with Covid-19 ļŝɆƢķėɆEƎŨƪƋȼƖɆƋŒëŝŝļŝİɆƋƎŨĉėƖƖėƖɆ and strategy. Evolving the Group’s strategy S E Su C R Held a session for Non-Executive Directors to hear from the new CEO on her observations and perspectives on ƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİǈș Considered regulatory and competitor developments in key markets and its ļśƋëĉƢɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİǈș Held strategic deep dives on esports, developments in the US and digital markets, interactive entertainment and product development. Ɇ ¡ėǙėĉƢėĐɆŨŝɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆ customer focus in our strategy and growth. Held a two-day strategy session, looking at growth in core and new markets, product development and technology opportunities. Reviewed updates to the market S E C Co R Strategy investor event. Inaugural ESG sustainability showcase Entain:Sustain. M&A activity S E Su C R Received regular updates on potential M&A opportunities. Reviewed and approved M&A projects recommended by management. Financial Plan S E Su C Discussed and approved the Three- Year plan. Board activities The Board has responsibility for establishing ƢķėɆEƎŨƪƋȼƖɆƋƪƎƋŨƖėȚɆǁëŒƪėƖɆëŝĐɆƖƢƎëƢėİǈȚɆëƖɆ well as overseeing the conduct of its business and promoting the long-term sustainable ƖƪĉĉėƖƖɆŨįɆƢķėɆEƎŨƪƋȚɆİėŝėƎëƢļŝİɇǁëŒƪėɆ įŨƎɇƖķëƎėķŨŒĐėƎƖɆëŝĐɆĉŨŝƢƎļĈƪƢļŝİɆƢŨɆ ǂļĐėƎɇƖŨĉļėƢǈș The Board had six scheduled meetings in 2021. In addition there ǂėƎėɆëɆįƪƎƢķėƎɆǘǁėɆśėėƢļŝİƖɆëƎƎëŝİėĐɆĐƪƎļŝİɆƢķėɆǈėëƎɆĉŨŝĉėƎŝļŝİɆ urgent matters such as the succession of the CEO, the appointment of Non-Executive Directors (including the Senior Independent Director and Chair of the Remuneration Committee) and potential M&A activity. Entain received two potential offers in the course of the year and regular update calls were held for the Board and the Defence Committee during these events. Board meetings are a key mechanism for Directors to discharge their duties, notably under Section 172 of the Companies Act ǥǣǣǩɆȩ½bȪșɆŝɆŨǁėƎǁļėǂɆŨįɆƢķėɆŨëƎĐȼƖɆĐļƖĉƪƖƖļŨŝƖɆëŝĐɆķŨǂɆƢķėƖėɆ ĉŨŝƖļĐėƎėĐɆƢķėɆEƎŨƪƋȼƖɆŏėǈɆƖƢëŏėķŨŒĐėƎƖɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂș As an Isle of Man incorporated company, Entain is not subject to the reporting obligations under Section 172 of the Companies Act 2006 (UK). Nevertheless, the Board recognises the importance of effective governance and intends to operate in line with the UK reporting regulations. During 2021 the Group complied with the principles and provisions of the 2018 UK Corporate Governance Code. 101 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Governance Investor feedback S Received written and verbal feedback on investor meetings from the Chairman, Remuneration Committee Chair, Executive Directors and Director of Investor Relations during the year. Considered an external report on the feedback of the launch of Entain and our new strategy from over 30 institutional investors. Board succession S E R Discussed and approved Executive and Non-Executive appointments, including the CEO, the Senior Independent Director and three Non- Executive Directors. Regulatory disclosures S E R Approved the Notice of Meeting for the AGM. Ɇ DŨŒŒŨǂļŝİɆƢķėɆƪĐļƢɆŨśśļƢƢėėȼƖɆ recommendation, reviewed and approved the Annual Report and Accounts and the Interim and Full Year results. Ɇ ƖƖėƖƖėĐɆëŝĐɆƎėƋŨƎƢėĐɆŨŝɆƢķėɆEƎŨƪƋȼƖɆ viability and going concern. ŨŝǙļĉƢƖɆŨįɆQŝƢėƎėƖƢɆƋŨŒļĉǈɆ S E Su C R Ɇ ¡ėǁļėǂėĐɆëŝĐɆëƋƋƎŨǁėĐɆƢķėɆŨëƎĐȼƖɆ ŨŝǙļĉƢƖɆŨįɆQŝƢėƎėƖƢɆ¡ėİļƖƢėƎș Risk reviews S E Su C R Bribery and corruption risk review. Criminal Finance Act risk review. Board governance S E R Reviewed and updated the Schedule of Matters Reserved for the Board. Held an externally facilitated Board evaluation covering the effectiveness of the Board, its Committees and the performance of the Chairman and individual Directors. Performance Business updates S E C Received updates on the Retail and Digital businesses. Monitored the performance of the BetMGM joint venture in the US. Financial updates S E Su Monitored net gaming revenue, ĉëƖķǙŨǂȚɆĐļǁļĐėŝĐɆĉŨǁėƎɆëŝĐɆĉƎėĐļƢɆ facilities in response to the impact of Covid-19 on the business and agreed that no dividend would be paid. Debated the repayment of furlough monies and the impact of the pandemic ŨŝɆƢķėɆEƎŨƪƋȼƖɆ¡ėƢëļŒɆĈƪƖļŝėƖƖș Reviewed and approved the 2022 Group budget. Regulatory updates S E Su C R Received regular regulatory updates įƎŨśɆƢķėɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎș Held deep dives on regulatory ĉķëŝİėƖɆļŝɆƢķėɆEƎŨƪƋȼƖɆŏėǈɆśëƎŏėƢƖɆ ŨįɆƢķėɆ½bɆëŝĐɆEėƎśëŝǈɆëŝĐɆƎėǙėĉƢėĐɆ on their potential impact on the EƎŨƪƋȼƖɆƖƢƎëƢėİǈș Risk S E Su C Co R Ɇ ½ŝĐėƎƢŨŨŏɆëɆƎėǁļėǂɆŨįɆƢķėɆEƎŨƪƋȼƖɆƎļƖŏɆ management programme. Reviewed and agreed the Principal Risks for 2022 and their allocation for monitoring between the Board, Audit and ESG Committees. Ɇ ¡ėǁļėǂėĐɆëŝĐɆëİƎėėĐɆƢķėɆEƎŨƪƋȼƖɆ annual long-term viability statement. Responsible Betting and Gaming E C Co R Received regular updates on the EƎŨƪƋȼƖɆƖëįėƎɆİëśĈŒļŝİɆëĉƢļǁļƢļėƖȚɆ including our Advanced Responsibility & Care™ (ARC™) programme. Received updates from the ESG Committee monitoring the performance of the safer betting and gaming remuneration metric. Reviewed the structure and work of Ƣķėɇ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝș People S E Su Reviewed the status of shop, ƖƢëĐļëɆëŝĐɆŨįǘĉėɆĉŒŨƖƪƎėƖɆįŨŒŒŨǂļŝİɆ Covid-19 restrictions. Ɇ nŨŝļƢŨƎėĐɆƢķėɆŨśƋëŝǈȼƖɆļŝļƢļëƢļǁėƖɆ to support colleagues impacted by the pandemic. Devoted a Board meeting to People issues, including senior management succession, organisational strategy, diversity, talent development and a review of our Principal Risk of recruitment and retention of key employees. Ɇ ¡ėǙėĉƢėĐɆŨŝɆƢķėɆEƎŨƪƋȼƖɆǂŨƎŏļŝİɆ policies, workspaces and needs of our people in a Covid-19 environment. Entain plc | Annual Report 2021 102 Governance ŨŝǙļĉƢƖɆŨįɆQŝƢėƎėƖƢɆƋŨŒļĉǈ ¶ķėɆŨëƎĐɆķëƖɆëɆŨŝǙļĉƢƖɆŨįɆQŝƢėƎėƖƢɆƋŨŒļĉǈɆëŝĐɆëŝɆëŝŝƪëŒɆĉŨŝǙļĉƢƖɆ ëƪƢķŨƎļƖëƢļŨŝɆƋƎŨĉėƖƖȚɆǂķėƎėĈǈɆƢķėɆŨëƎĐɆƎėǁļėǂƖɆ,ŝƢëļŝȼƖɆ ŨŝǙļĉƢƖɆŨįɆQŝƢėƎėƖƢɆ¡ėİļƖƢėƎɆëŝĐɆƖėėŏƖɆĉŨŝǘƎśëƢļŨŝɆįƎŨśɆėëĉķɆ Director of any changes or updates to their position. ¶ķļƖɆëƪƢķŨƎļƖëƢļŨŝɆƋƎŨĉėƖƖɆļŝįŨƎśƖɆƢķėɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėȼƖɆ ëƖƖėƖƖśėŝƢɆŨįɆëɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎȼƖɆļŝĐėƋėŝĐėŝĉėɆǂķėŝɆ proposing that Director for re-election at the AGM. Director Induction, Training and Development The Chairman is assisted by the Company Secretary in providing all new Directors with a comprehensive induction programme on joining the Board. The induction programme provides new Directors with an understanding of their duties as Directors, the Group, its businesses and the markets and regulatory environments in which it operates. This includes meeting with senior executives and their direct reports. The process also provides an overview of ƢķėɆEƎŨƪƋȼƖɆİŨǁėƎŝëŝĉėɆƋƎëĉƢļĉėƖșɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂļŒŒɆ have further content tailored to the Board Committees that they will join. Stella David, Vicky Jarman and Mark Gregory received tailored inductions following their appointment to the Board. These included one to one meetings with our Executive Committee, senior management and External Auditors. Their feedback on their induction programmes was reviewed by the Nomination Committee to improve the effectiveness of future Director inductions. The Chairman has overall responsibility for ensuring that Directors receive suitable training to enable them to carry out their duties. Training is also provided by way of reports and presentations prepared for each Board meeting, as well as meetings with Group employees and external advisers. During the year the Board received training on the Criminal Finance Act and Anti-Bribery and Corruption legislation, developments in HSSE requirements and GDPR and the duties of directors. The Directors have access to independent professional advice ëƢɆƢķėɆEƎŨƪƋȼƖɆėǇƋėŝƖėȚɆëƖɆǂėŒŒɆëƖɆƢķėɆëĐǁļĉėɆëŝĐɆƖėƎǁļĉėƖɆŨįɆƢķėɆ Company Secretary, who advises the Board on regulatory and corporate governance matters. Board Evaluation and Effectiveness I n 2022, Entain engaged Lintstock to facilitate an external review ŨįɆŨëƎĐɆƋėƎįŨƎśëŝĉėșɆdļŝƢƖƢŨĉŏɆļƖɆëŝɆëĐǁļƖŨƎǈɆǘƎśɆƢķëƢɆƖƋėĉļëŒļƖėƖɆ in Board performance reviews, and has no other connection with the Company. ¶ķėɆǘƎƖƢɆƖƢëİėɆŨįɆƢķėɆƎėǁļėǂɆļŝǁŨŒǁėĐɆdļŝƢƖƢŨĉŏɆėŝİëİļŝİɆǂļƢķɆ the Chairman and Company Secretary to set the context for ƢķėɆėǁëŒƪëƢļŨŝȚɆëŝĐɆƢŨɆƢëļŒŨƎɆƖƪƎǁėǈɆĉŨŝƢėŝƢɆƢŨɆƢķėɆƖƋėĉļǘĉɆ circumstances of Entain. All Board members were requested to complete an online survey on the performance of the Board, each of the Committees and the Chair. Lintstock subsequently interviewed each of the Directors, enabling them to expand on their responses to the survey, and to raise any further issues they wished to discuss. As well as addressing core aspects of Board and Committee performance, the exercise had a particular focus on the following areas: The response to takeover approaches received by Entain, ļŝĉŒƪĐļŝİɆƢķėɆƎŨŒėɆƋŒëǈėĐɆĈǈɆƢķėɆŨëƎĐɆëŝĐɆƢķėɆǙŨǂɆŨįɆ information during this period. The quality of debates and processes around decision making at Board level, particularly in the context of remote meetings necessitated by the pandemic. Ɇ ¶ķėɆƋƎŨİƎėƖƖɆĈėļŝİɆśëĐėɆƢŨǂëƎĐƖɆ,ŝƢëļŝȼƖɆƖƢƎëƢėİļĉɆļśƋėƎëƢļǁėƖȚɆ and the main challenges facing the business in executing on its objectives. Ɇ ¶ķėɆİŨǁėƎŝëŝĉėɆëƎŨƪŝĐɆƎļƖŏɆśëŝëİėśėŝƢȚɆëŝĐɆƢķėɆŨëƎĐȼƖɆ oversight of key risks facing Entain. Ɇ ¶ķėɆŨëƎĐȼƖɆŨǁėƎƖļİķƢɆŨįɆŨƋƋŨƎƢƪŝļƢļėƖɆëŝĐɆƢķƎėëƢƖɆįëĉļŝİɆƢķėɆ business, including in terms of competition, technology and data, regulation and ESG / sustainability. The oversight of organisational capacity and succession planning for key leaders. The interaction with key stakeholders, including major investors, customers and employees, and the processes in place to facilitate Board engagement with these groups. The performance of the Audit, ESG, Remuneration and Nomination ŨśśļƢƢėėƖɆǂëƖɆëŒƖŨɆƖƋėĉļǘĉëŒŒǈɆëĐĐƎėƖƖėĐɆļŝɆƢķėɆėǇėƎĉļƖėȚɆëƖɆǂëƖɆ the performance of the Chair and that of individual Directors. Following the sequence of Director interviews taking place in February / March 2022, Lintstock will prepare a report on the ǘŝĐļŝİƖȚɆëŒŨŝİƖļĐėɆëɆĉŨśƋëƎļƖŨŝɆǂļƢķɆƢķėɆdļŝƢƖƢŨĉŏɆEŨǁėƎŝëŝĉėɆ Index, which helps to place performance into context. It is envisaged that the outcomes will be discussed at a meeting of the Board in April 2022. The 2020 evaluation action plan was addressed in the following way: Theme How it was addressed Focus on technology Several deep dives were held during the year – including on product development, a technology tour and a presentation following an external assessment of our technology stack Online entertainment Regular strategic discussions on online entertainment, including an overview of market trends in interactive entertainment Technology risk Discussion on Principal Risks which included different ëƖƋėĉƢƖɆŨįɆ,ŝƢëļŝȼƖɆƢėĉķŝŨŒŨİǈɆ programme – including technology failure and cyber security held as well as a review ŨįɆƢķėɆEƎŨƪƋȼƖɆQ¶ɆļŝįƎëƖƢƎƪĉƢƪƎė Skillset for future Board appointments Included as part of Nomination Committee review and discussed at the Board at its People focused meeting Board Activities continued 103Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Report of the Audit Committee Introduction As Chair of the Audit Committee, I am pleased to present our report for the year ended 31 December 2021, setting out how the responsibilities delegated to the Audit Committee by the Board were discharged over the course of the year and the key topics we considered. 2021 has been another year of disruption for Entain. With the ŨǁļĐȯǤǬƋëŝĐėśļĉƖƢļŒŒǂļƢķƪƖȚƢķėļŝƢėİƎļƢǈŨįŨƪƎǘŝëŝĉļëŒ reporting and risk management processes continues to be of the upmost importance in assisting the Group in its navigation of these uncertain times. As a result, and similar to 2020, the Audit Committee has continued to focus on risk management and ǘŝëŝĉļëŒĉŨŝƢƎŨŒƢķƎŨƪİķŨƪƢǥǣǥǤșÕķļŒƖƢƢķėŨëƎĐķëƖśëŝëİėĐ ƢķėEƎŨƪƋȼƖŨǁėƎëŒŒƎėƖƋŨŝƖėƢŨƢķėƎļƖŏƖƋƎėƖėŝƢėĐĈǈŨǁļĐȯǤǬȚ the Audit Committee has maintained its oversight of the controls in place over forecasting and performance reporting, the judgements ƢëŏėŝļŝƖƪƋƋŨƎƢŨįǘŝëŝĉļëŒėƖƢļśëƢėƖëŝĐƢķėëƖƖėƖƖśėŝƢŨį viability in light of the changing landscape, all of which have been ƖƪƋƋŒėśėŝƢėĐĈǈƎėİƪŒëƎĐļëŒŨİƪėǂļƢķƢķėķļėįDļŝëŝĉļëŒ{įǘĉėƎ & Deputy CEO and our internal and external auditors. Whilst the ŨǁļĐȯǤǬ ƋëŝĐėśļĉ ļƖ ŝŨƢ ŨǁėƎȚ Ƣķė EƎŨƪƋȼƖ ƋėƎįŨƎśëŝĉė ķëƖ ƎėśëļŝėĐ ƖƢƎŨŝİ ëŝĐȚ ëƖ ƖƪĉķȚ Q ëś ëƖ ĉŨŝǘĐėŝƢ ëƖ ėǁėƎ ļŝ ,ŝƢëļŝȼƖ long-term prospects. As we discussed last year, the Board and its Committees have continued to focus on the enhancement of our Enterprise Risk Management Framework. During the course of 2021 the Board has ƪŝĐėƎƢëŏėŝëĐėƢëļŒėĐƎėǁļėǂŨįƢķėEƎŨƪƋȼƖƎļŝĉļƋëŒ¡ļƖŏƖȚǂļƢķ the Audit Committee taking responsibility for Data Breach and Cyber Security, Technology Failure, Taxes and Trading, Liability and Pricing Management. We intend to undertake a review process of this nature every year. The Audit Committee undertakes a pivotal role in providing ļŝĐėƋėŝĐėŝƢ ĉķëŒŒėŝİė ëŝĐ ŨǁėƎƖļİķƢ ëĉƎŨƖƖ ǘŝëŝĉļëŒ ƎėƋŨƎƢļŝİ ëŝĐ ĉŨŝƢƎŨŒƖįŨƎƢķėEƎŨƪƋș¶ķėƪĐļƢŨśśļƢƢėėȼƖŝėǂėƖƢśėśĈėƎƖȚ ÔļĉŏǈëƎśëŝȚnëƎŏEƎėİŨƎǈëŝĐ$ëǁļĐ©ëƢǒȚĈƎļŝİƖļİŝļǘĉëŝƢ ǘŝëŝĉļëŒȚ ëĉĉŨƪŝƢļŝİȚ ƎļƖŏ ëŝĐ ƖėĉƢŨƎ ėǇƋėƎļėŝĉė ǂķļĉķ ǂļŒŒ įƪƎƢķėƎ strengthen our oversight. My thanks go to Stephen Morana for his valuable service to the Committee, having stepped down from the Board and Audit Committee in March 2021. I believe the skills and experience of our members remain strong, enabling the Audit Committee to continue to perform effectively. Pierre Bouchut Chair of the Audit Committee 3 March 2022 [3 March The Audit Committee has maintained its oversight of the controls in place over forecasting and performance reporting, the judgements taken in support Ũį ǘŝëŝĉļëŒ ėƖƢļśëƢėƖ ëŝĐ Ƣķė assessment of viability in light of Ƣķė ĉķëŝİļŝİ ŒëŝĐƖĉëƋėșȺ Pierre Bouchut Chair of the Audit Committee Entain plc | Annual Report 2021 104 G overnance E ntain plc | Annual Report 2020 The role of the Audit Committee The Audit Committee oversees the effectiveness of the EƎŨƪƋȼƖɆǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİȚɆƖǈƖƢėśƖɆŨįɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒɆëŝĐɆ risk management and the integrity of external and internal audit processes. Key responsibilities of the Audit Committee Ɇ nŨŝļƢŨƎɆƢķėɆļŝƢėİƎļƢǈɆŨįɆ,ŝƢëļŝɆƋŒĉȼƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆ ëŝǈɆįŨƎśëŒɆëŝŝŨƪŝĉėśėŝƢƖɆƎėŒëƢļŝİɆƢŨɆƢķėɆŨśƋëŝǈȼƖɆǘŝëŝĉļëŒɆ performance and reviews, and challenge, where necessary, the ƖļİŝļǘĉëŝƢɆǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİɆļƖƖƪėƖɆëŝĐɆŌƪĐİėśėŝƢƖɆļŝɆƎėŒëƢļŨŝɆ ƢŨɆƢķėɆķëŒįȯǈėëƎɆëŝĐɆëŝŝƪëŒɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆĈėįŨƎėɆƢķėƖėɆëƎėɆ ƖƪĈśļƢƢėĐɆƢŨɆƢķėɆŨëƎĐɆįŨƎɆǘŝëŒɆëƋƋƎŨǁëŒș Make recommendations to the Board concerning any proposed, new or amended accounting policies. Ɇ ƖƖėƖƖɆƢķėɆėįįėĉƢļǁėŝėƖƖɆŨįɆƢķėɆEƎŨƪƋȼƖɆėǇƢėƎŝëŒɆëƪĐļƢŨƎɆ including reviewing the annual external audit plan and ëƪĐļƢɆǘŝĐļŝİƖș Ɇ ¡ėĉŨśśėŝĐɆƢķėɆëƪĐļƢɆįėėɆƢŨɆƢķėɆŨëƎĐɆëŝĐɆƖėƢɆƢķėɆEƎŨƪƋȼƖɆƋŨŒļĉǈɆ on the provision of non-audit services by the external auditor. Ɇ ¡ėǁļėǂɆëŝĐɆśŨŝļƢŨƎɆƢķėɆėǇƢėƎŝëŒɆëƪĐļƢŨƎȼƖɆļŝĐėƋėŝĐėŝĉėɆëŝĐɆ objectivity, and the effectiveness of the audit process. Monitor and review the internal audit programme and its effectiveness. Ɇ nŨŝļƢŨƎɆëŝĐɆƎėǁļėǂɆ,ŝƢëļŝȼƖɆƖǈƖƢėśƖɆŨįɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒȚɆǘŝëŝĉļëŒɆ reporting and risk management. Review internal audit reports covering the various areas and activities of the business and ensure the business responds to the recommendations made. Ɇ ƖƖėƖƖɆëŝĐɆƎėƋŨƎƢɆŨŝɆƢķėɆEƎŨƪƋȼƖɆǁļëĈļŒļƢǈɆƋƎļŨƎɆƢŨɆĈėļŝİɆ submitted to the Board for approval. ¶ķėɆƪĐļƢɆŨśśļƢƢėėȼƖɆƢėƎśƖɆŨįɆƎėįėƎėŝĉėɆĉëŝɆĈėɆįŨƪŝĐɆŨŝɆƢķėɆŨśƋëŝǈȼƖɆ ǂėĈƖļƢėɇëƢɆwww.entaingroup.com Audit Committee membership and attendance As at 31 December 2021 the Audit Committee comprised three members, all of whom are independent Non-Executive Directors. ļėƎƎėɆŨƪĉķƪƢɆļƖɆķëļƎɆŨįɆƢķėɆŨśśļƢƢėėșɆLėɆķëƖɆëɆƖƢƎŨŝİɆǘŝëŝĉļëŒɆ ĈëĉŏİƎŨƪŝĐȚɆķëǁļŝİɆĈėėŝɆĉķļėįɆǘŝëŝĉļëŒɆŨįǘĉėƎɆëƢɆ©ĉķŝėļĐėƎɆ Electric, Carrefour and Delhaize and extensive experience as an audit committee chair, currently serving at Pepco Group, Albioma S.A., Geopost S.A. and Firmenich S.A. in this role. The Board is ƖëƢļƖǘėĐɆƢķëƢɆķėɆļƖɆƢķėɆƪĐļƢɆŨśśļƢƢėėɆśėśĈėƎɆǂļƢķɆƎėĉėŝƢɆëŝĐɆ ƎėŒėǁëŝƢɆǘŝëŝĉļëŒɆėǇƋėƎļėŝĉėȚɆëƖɆŨƪƢŒļŝėĐɆļŝɆƢķėɆ½bɆŨƎƋŨƎëƢėɆ Governance Code, and competence in accounting and auditing ëƖɆƎėƍƪļƎėĐɆĈǈɆƢķėɆDȼƖɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆ¡ƪŒėƖɆļŝɆ$¶¡ǪșɆ It considers that the Audit Committee as a whole has an ëƋƋƎŨƋƎļëƢėɆëŝĐɆėǇƋėƎļėŝĉėĐɆĈŒėŝĐɆŨįɆĉŨśśėƎĉļëŒȚɆǘŝëŝĉļëŒɆëŝĐɆ audit expertise to assess the issues it is required to consider, as well as competence in the gaming sector. ŒŒɆ$ļƎėĉƢŨƎƖɆŨŝɆŌŨļŝļŝİɆƢķėɆŨëƎĐɆëƎėɆİļǁėŝɆƖƋėĉļǘĉɆƖėĉƢŨƎɆƢƎëļŝļŝİɆ to ensure competence relevant to the business, in addition to the other skills they bring to the Board and Committees. Vicky Jarman, Mark Gregory and David Satz each received a tailored Committee induction programme upon joining the Audit Committee during the year. Regular attendees at the meetings include the Chief Financial {įǘĉėƎȚɆ$ļƎėĉƢŨƎɆŨįɆDļŝëŝĉļëŒɆŨŝƢƎŨŒȚɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȚɆ Director of Internal Audit, the external auditor and the Chair of the ESG Committee. During the year the Audit Committee met for private discussions with the external auditor and the Director of Internal Audit. The Audit Committee had six scheduled meetings and one ad-hoc meeting during the year. Member Meetings attended/ eligible to attend Pierre Bouchut (Chair) 7/7 Stephen Morana 1 1/1 Mark Gregory 2 6/6 Vicky Jarman 3 6/6 David Satz 4 3/3 1. Resigned from the Audit Committee on 4 March 2021. 2. Joined the Audit Committee on 17 March 2021. 3. Joined the Audit Committee on 4 March 2021. 4. Joined the Audit Committee on 17 August 2021. Report of the Audit Committee continued 105 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ¡ėƖƋŨŝƖļĈļŒļƢǈɆįŨƎɆ,ŝƢëļŝȼƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖț Fair, Balanced and Understandable ¶ķėɆŨëƎĐɆļƖɆƪŒƢļśëƢėŒǈɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƋƎėƖėŝƢļŝİɆëɆįëļƎȚɆĈëŒëŝĉėĐɆëŝĐɆƪŝĐėƎƖƢëŝĐëĈŒėɆëƖƖėƖƖśėŝƢɆŨįɆ,ŝƢëļŝȼƖɆƋŨƖļƢļŨŝɆëŝĐɆ ƋƎŨƖƋėĉƢƖȚɆǂķļĉķɆėǇƢėŝĐƖɆƢŨɆƢķėɆķëŒįȯǈėëƎɆëŝĐɆëŝŝƪëŒɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆŝŝƪëŒɆ¡ėƋŨƎƢșɆ Delegation ,ŝƢëļŝȼƖɆǘŝëŝĉėɆĐėƋëƎƢśėŝƢȚɆŒėĐɆĈǈɆ the CFO & Deputy CEO, prepares and ƎėǁļėǂƖɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ Management coordinates with the CEO, CFO & Deputy CEO and Chairman on the preparation of any business model and strategy. The Company Secretary with the Chairman of the Board, the CGO and the Chair person of the various Board Committees, prepares the corporate governance statements and all Board Committee reports. External Review ,ŝƢëļŝȼƖɆėǇƢėƎŝëŒɆëƪĐļƢŨƎƖɆëƪĐļƢɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆëŝĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆƎėǁļėǂɆƢķėɆķëŒįȯǈėëƎɆëĉĉŨƪŝƢƖșɆɆƎėƋŨƎƢɆƢŨɆƢķėɆ Audit Committee is prepared. Committees’ Review The Audit Committee reviews the Annual Report, draft ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆëĉĉŨśƋëŝǈļŝİɆƖƢëƢėśėŝƢƖɆëŝĐɆ meets with the external auditors to review their report. The Audit Committee proposes amendments and makes recommendations to the Board and also approves the Audit ŨśśļƢƢėėȼƖɆ¡ėƋŨƎƢșɆ For the annual report the Remuneration Committee, Nomination Committee and ESG Committee respectively review the $ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢȚɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėɆ¡ėƋŨƎƢɆ and ESG Report, propose changes and make recommendations to the Board. Board Review ¶ķėɆŨëƎĐɆƎėǁļėǂƖɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆëŝĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆëĉĉŨśƋëŝǈļŝİɆƎėƋŨƎƢƖɆëŝĐɆƎėĉŨśśėŝĐëƢļŨŝƖɆįƎŨśɆļƢƖɆ Committees and makes changes to the disclosure where appropriate. Auditor Reporting To The Board ¶ķėɆ,ǇƢėƎŝëŒɆëƪĐļƢŨƎƖɆƋƎėƋëƎėɆƢķėļƎɆǘŝëŒɆƎėƋŨƎƢɆȩŝŝƪëŒɆ¡ėƋŨƎƢȪɆŨƎɆƎėǁļėǂɆƎėƋŨƎƢɆȩķëŒįȯǈėëƎɆƎėƖƪŒƢƖȪș Audit/Board Approval And Publish ¶ķėɆŨëƎĐɆëŝĐɆëƪĐļƢŨƎƖɆëƋƋƎŨǁėƖɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢȚɆǈėëƎȯėŝĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆĐļƖĉŒŨƖƪƎėƖɆëŝĐɆƢķėɆķëŒįȯǈėëƎɆƎėƋŨƎƢɆëŝĐɆ ƢķėƖėɆëƎėɆƢķėŝɆƎėŒėëƖėĐɆƢŨɆƢķėɆƖƢŨĉŏɆėǇĉķëŝİėɆëŝĐɆƋƪĈŒļƖķėĐɆŨŝɆ,ŝƢëļŝȼƖɆǂėĈƖļƢėɆŨŝɆƎėĉėļƋƢɆŨįɆƢķėɆǘŝëŒɆëƪĐļƢɆƎėƋŨƎƢșɆ QŝɆƎėƖƋėĉƢɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆëĉĉŨśƋëŝǈļŝİɆƎėƋŨƎƢƖɆįŨƎɆƢķėɆǈėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆƢķėɆŨśƋëŝǈɆķëƖɆ įŨŒŒŨǂėĐɆƢķėɆƋƎŨĉėƖƖɆĐėƢëļŒėĐɆëĈŨǁėșɆQŝɆĐŨļŝİɆƖŨɆƢķėɆ$ļƎėĉƢŨƎƖɆĉŨŝǘƎśɆƢķëƢɆƢķėǈɆķëǁėɆƎėǁļėǂėĐɆƢķėɆĉŨśƋŒėƢėɆǥǣǥǤɆŝŝƪëŒɆ¡ėƋŨƎƢɆ and consider that taken as a whole, the report is fair, balanced and understandable and provides the information necessary for ,ŝƢëļŝȼƖɇƖķëƎėķŨŒĐėƎƖɆƢŨɆëƖƖėƖƖɆƢķėɆEƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėȚɆĈƪƖļŝėƖƖɆśŨĐėŒɆëŝĐɆƖƢƎëƢėİǈș Entain plc | Annual Report 2021 106 Governance Effectiveness of the external audit The Audit Committee evaluated the effectiveness of the external audit process during the year in consultation with the Chief DļŝëŝĉļëŒɆ{įǘĉėƎɆëŝĐɆƖėŝļŨƎɆǘŝëŝĉėɆƢėëśșɆ¶ķėɆëƖƖėƖƖśėŝƢɆŨįɆƢķėɆ ëƪĐļƢŨƎȼƖɆëƋƋƎŨëĉķɆƢŨɆƋƎŨǁļĐļŝİɆëƪĐļƢɆƖėƎǁļĉėƖɆįŨĉƪƖėĐɆŨŝț Ɇ ©ëįėİƪëƎĐƖɆëİëļŝƖƢɆļŝĐėƋėŝĐėŝĉėɆƢķƎėëƢƖɆĈėļŝİɆƖƪįǘĉļėŝƢɆ and comprehensive. Quality and transparency of communications being timely, clear, concise and relevant and that any suggestions for improvements or changes are constructive. The exercise of professional scepticism and the willingness of the ëƪĐļƢŨƎɆƢŨɆĉķëŒŒėŝİėɆśëŝëİėśėŝƢȼƖɆëƖƖƪśƋƢļŨŝƖș The quality of the audit engagement team – including the continuity of appropriate industry, sector and technical expertise or where there have been new areas of activity and changes in regulation or professional standards. The Audit Committee concluded that the external audit team had provided the required quality in relation to the provision of audit services. Feedback is provided to the external auditor by the Audit Committee and through one-to-one discussions between the Audit Committee Chair and the lead audit partner. FRC Audit Quality Review ¶ķėɆƪĐļƢɆŨśśļƢƢėėɆƖƋėĉļǘĉëŒŒǈɆĉŨŝƖļĐėƎėĐɆƢķėɆǘŝĐļŝİƖɆŨįɆƢķėɆ D¡ȼƖɆƪĐļƢɆƪëŒļƢǈɆ¡ėǁļėǂɆƢėëśȼƖɆëƖƖėƖƖśėŝƢɆŨįɆbnEȼƖɆǥǣǥǣɆ audit of the Group. The Audit Committee discussed these with the auditor and separately with management, noting the observations ƎëļƖėĐɆëŝĐɆbnEȼƖɆƋƎŨƋŨƖėĐɆƎėƖƋŨŝƖėƖșɆ¶ķėɆƪĐļƢɆŨśśļƢƢėėɆǂļŒŒɆ śŨŝļƢŨƎɆƋƎŨİƎėƖƖɆŨįɆƢķėɆëƪĐļƢŨƎȼƖɆƋƎŨƋŨƖëŒƖɆŨǁėƎɆƢķėɆįŨƎƢķĉŨśļŝİɆ year and consider these as part of its annual review of the effectiveness of external audit. Non-audit services ¶ķėɆƪĐļƢɆŨśśļƢƢėėɆļƖɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƢķėɆEƎŨƪƋȼƖɆƋŨŒļĉǈɆŨŝɆŝŨŝȯ audit services and the approval of non-audit services. The policy ƖƢëƢėƖɆƢķëƢɆļŝɆƢķėɆŨśƋëŝǈȼƖɆǘŝëŝĉļëŒɆǈėëƎȚɆƢķėɆƢŨƢëŒɆįėėƖɆįŨƎɆ non-audit services provided by the external auditors, excluding ŝŨŝȯëƪĐļƢɆįėėƖɆįŨƎɆĐƪėɆĐļŒļİėŝĉėɆįŨƎɆëĉƍƪļƖļƢļŨŝƖɆëŝĐɆŨƢķėƎɆƖƋėĉļǘĉɆ matters noted below, should not exceed 70% of the average of the total fees for audit services they provided in the preceding three- ǈėëƎɆƋėƎļŨĐșɆ$ƪƎļŝİɆƢķėɆǈėëƎȚɆƢķėɆƋŨŒļĉǈɆǂëƖɆƪƋĐëƢėĐɆƢŨɆƎėǙėĉƢɆ ƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆƢķėɆD¡ȼƖɆ¡ėǁļƖėĐɆ,ƢķļĉëŒɆ©ƢëŝĐëƎĐɆǥǣǤǬșɆ The policy is kept under annual review and the Audit Committee receives regular reports on non-audit services provided by KPMG ëŝĐɆŨƢķėƎɆëƪĐļƢɆǘƎśƖș In the year ended 31 December 2021, the total non-audit fees as a ƋėƎĉėŝƢëİėɆŨįɆƢķėɆëƪĐļƢɆįėėƖɆƋëļĐɆƢŨɆƢķėɆėǇƢėƎŝëŒɆëƪĐļƢŨƎƖɆǂëƖɇǥǣɼș In addition to their statutory duties, KPMG LLP is also employed ǂķėƎėȚɆëƖɆëɆƎėƖƪŒƢɆŨįɆƢķėļƎɆƋŨƖļƢļŨŝɆëƖɆëƪĐļƢŨƎƖɆŨƎɆįŨƎɆƢķėļƎɆƖƋėĉļǘĉɆ expertise, they either must, or the Audit Committee accepts they are best placed to, perform the work in question. This is primarily work in relation to matters such as shareholder circulars, Group ĈŨƎƎŨǂļŝİƖȚɆƎėİƪŒëƢŨƎǈɆǘŒļŝİƖɆëŝĐɆĉėƎƢëļŝɆĈƪƖļŝėƖƖɆëĉƍƪļƖļƢļŨŝƖɆ and disposals. In such circumstances the Audit Committee will ƖėƋëƎëƢėŒǈɆƎėǁļėǂɆƢķėɆƖƋėĉļǘĉɆƖėƎǁļĉėɆƎėƍƪļƎėśėŝƢƖɆëŝĐɆĉŨŝƖļĐėƎɆ any impact on objectivity and independence of the auditors and any appropriate safeguards to this. As such the Audit Committee believes it appropriate for these non-audit services to be excluded from the 70% cap set out above. In the year ended 31 December 2021 the fees paid in respect of due diligence for acquisitions to the external auditors was £nil. Activities Financial statements and disclosure ¶ķėɆƪĐļƢɆŨśśļƢƢėėɆƎėǁļėǂėĐɆƢķėɆįƪŒŒɆëŝĐɆķëŒįȯǈėëƎɆǘŝëŝĉļëŒɆ statements with management before proposing them to the Board for approval. In undertaking its review, the Audit Committee received reports from management and the ėǇƢėƎŝëŒɆëƪĐļƢŨƎɆŨƪƢŒļŝļŝİɆƖļİŝļǘĉëŝƢɆǘŝëŝĉļëŒɆŌƪĐİėśėŝƢƖɆ and estimates. The Audit Committee reviewed the assessment and reporting of longer-term viability, systems of risk management and ļŝƢėƎŝëŒɆĉŨŝƢƎŨŒȚɆļŝĉŒƪĐļŝİɆƢķėɆƎėƋŨƎƢļŝİɆëŝĐɆĉŒëƖƖļǘĉëƢļŨŝɆŨįɆ risk across the Group and the examination of what might ĉŨŝƖƢļƢƪƢėɆëɆƖļİŝļǘĉëŝƢɆįëļŒļŝİɆŨƎɆǂėëŏŝėƖƖɆļŝɆƢķėɆƖǈƖƢėśɆ ŨįɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒșɆQƢɆėǇëśļŝėĐɆƢķėɆEƎŨƪƋȼƖɆśŨĐėŒŒļŝİɆįŨƎɆ ƖƢƎėƖƖɆƢėƖƢļŝİɆĐļįįėƎėŝƢɆǘŝëŝĉļëŒɆëŝĐɆŨƋėƎëƢļŨŝëŒɆėǁėŝƢƖɆëŝĐɆ ĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆƢķėɆƋėƎļŨĐɆĉŨǁėƎėĐɆĈǈɆƢķėɆEƎŨƪƋȼƖɆǁļëĈļŒļƢǈɆ statement was appropriate. With the impact of Covid-19 continuing to impact businesses, the Audit Committee gave consideration and challenge to the appropriateness of adopting the going concern assumption in ƋƎėƋëƎļŝİɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ¶ķėɆŨśśļƢƢėėɆëİƎėėɆǂļƢķɆ the conclusions reached and the going concern statement for the year ended 31 December 2021 is set out on page 76. Risk As noted in the introduction, the Audit Committee are responsible for the oversight of Cyber Security, Technology Failure, Taxes and Trading, Liability and Pricing Management Principal Risks. Throughout the course of 2021, the Audit Committee has performed detailed reviews over all these risks seeking assurances from management that they have suitable measures in place to monitor, manage and mitigate the relevant risks. In addition, the Audit Committee has also ƎėĉėļǁėĐɆƍƪëƎƢėƎŒǈɆƪƋĐëƢėƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆ¡ļƖŏɆnëŝëİėśėŝƢɆ programme and the progress being made with the ongoing maturity of our Enterprise Risk Management Framework. This approach will continue in 2022. FRC letter on Entain Annual Report During the year, the Group received a letter from the DļŝëŝĉļëŒɆ¡ėƋŨƎƢļŝİɆŨƪŝĉļŒɆȩD¡ȪɆƎėƍƪėƖƢļŝİɆĉŒëƎļǘĉëƢļŨŝɆ and explanation of certain points within the 2020 Annual Report. A number of items were resolved without the need for further explanation and the remaining FRC queries have been covered by additional disclosures included in the 2021 Report in order to provide greater clarity over certain items within the ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ External audit ¶ķėɆǥǣǥǤɆǘŝëŝĉļëŒɆǈėëƎȯėŝĐɆļƖɆbnEɆddȼƖɆįŨƪƎƢķɆǘŝëŝĉļëŒɆ ƎėƋŨƎƢļŝİɆƋėƎļŨĐɆëƖɆƢķėɆEƎŨƪƋȼƖɆėǇƢėƎŝëŒɆëƪĐļƢŨƎȚɆįŨŒŒŨǂļŝİɆƢķėɆ external audit tender process in 2018, with Mark Flanagan ƪŝĐėƎƢëŏļŝİɆķļƖɆǘƎƖƢɆǈėëƎɆëƖɆŒėëĐɆëƪĐļƢɆƋëƎƢŝėƎșɆ¶ķėɆƪĐļƢɆ Committee reviews the fee structure, resourcing and terms of engagement for the external auditor annually; it further considers the reappointment of the external auditor each year before making a recommendation to the Board. Report of the Audit Committee continued 107 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Internal audit and its effectiveness Internal Audit provides assurance to the Board, through the Audit ŨśśļƢƢėėȚɆƢķëƢɆėįįėĉƢļǁėɆëŝĐɆėįǘĉļėŝƢɆĉŨŝƢƎŨŒɆƋƎŨĉėƖƖėƖɆëƎėɆļŝɆ place to identify and manage business risks that may prevent the business from achieving its objectives and strategy. The Audit ŨśśļƢƢėėɆƎėĉėļǁėĐɆƎėİƪŒëƎɆƎėƋŨƎƢƖɆŨŝɆQŝƢėƎŝëŒɆƪĐļƢȼƖɆǘŝĐļŝİƖȚɆ including their assessment of issues raised in previous reports. The work completed by Internal Audit during the year focused on key areas of the Group (disclosed on pages 78 to 85 under Principal Risks), which included: Reviews of Anti-money Laundering and Safer Gambling processes across various business units. Review of the processes for developing and implementing new ƖŨįƢǂëƎėɆĉëƋëĈļŒļƢļėƖɆƢŨɆƢķėɆEƎŨƪƋȼƖɆĉŨƎėɆ¶ƎëĐļŝİɆŒëƢįŨƎśș Operating review of processes for payroll as a major expense to the Group in several key locations, including compliance with UK furlough regulations. Ɇ ¡ėǁļėǂɆŨįɆƢķėɆļŝƢėİƎļƢǈɆëŝĐɆƖėĉƪƎļƢǈɆŨįɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆ systems platform, Oracle. Operating review of the processes and technology used to ensure compliance with licence jurisdictions. Operating review of the new Colombian market for regulatory compliance. Ɇ ¡ėǁļėǂɆŨįɆƢķėɆEƎŨƪƋȼƖɆĉŨśƋŒļëŝĉėɆǂļƢķɆƢķėɆ½bɆnŨĐėƎŝɆ©ŒëǁėƎǈɆ Act and adequacy of provisions to mitigate risks of slavery. Review of the accuracy and integrity of processes to report to regulatory bodies. Ɇ {ŝİŨļŝİɆƎėǁļėǂƖɆŨįɆŏėǈɆǘŝëŝĉļëŒɆĉŨŝƢƎŨŒƖȼɆ operating effectiveness. The Board, with the support of the Audit Committee, completed its annual review of the effectiveness of the system of internal control, including the effectiveness of internal audit and consideration of whether it had the appropriate level of independence and ļƢƖɆļśƋŨƎƢëŝĉėɆļŝɆëƖƖėƖƖļŝİɆƢķėɆŨśƋëŝǈȼƖɆĉƪŒƢƪƎėșɆ¶ķėɆŨëƎĐɆ ĉŨŝĉŒƪĐėĐɆƢķëƢɆļƢɆǂëƖɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆƖǈƖƢėśɆŨįɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒɆ remains robust and have selected areas on a risk basis for inclusion in the 2022 Internal Audit Plan. The areas which will have their control environment reviewed in 2022 are: Technology disaster recovery capability. Corporate social responsibility activities including environmental procedures and charitable giving. New acquisitions and mergers to ensure that appropriate, commercially effective and highly compliant business practices are in place. Ongoing compliance assurance over key regulations including gambling and responsibility requirements, anti-money laundering, marketing and GDPR. Whistleblowing policy The Group has a formal whistleblowing procedure by which ėśƋŒŨǈėėƖɆĉëŝȚɆļŝɆĉŨŝǘĐėŝĉėȚɆƎëļƖėɆĉŨŝĉėƎŝƖɆëĈŨƪƢɆƋŨƖƖļĈŒėɆ ļśƋƎŨƋƎļėƢļėƖɆļŝɆǘŝëŝĉļëŒɆŨƎɆŨƢķėƎɆśëƢƢėƎƖșɆ¶ķļƖɆļƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆ EƎŨƪƋȼƖɆŨĐėɆŨįɆŨŝĐƪĉƢɆëŝĐɆļƖɆëƋƋƎŨǁėĐɆĈǈɆƢķėɆƪĐļƢɆŨśśļƢƢėėșɆ The policy sets out the type of disclosure which is protected and ëŒƖŨɆƖƋėĉļǘėƖɆƢŨɆǂķŨśɆĐļƖĉŒŨƖƪƎėƖɆƖķŨƪŒĐɆĈėɆśëĐėɆëŝĐɆƢķėɆƋƎŨĉėƖƖɆ that will be followed. The Group actively encourages individuals, where they believe that malpractice has taken place, to make protected disclosures either internally to the Audit Committee or externally through an outsourced service provider. ¶ķėɆƪĐļƢɆŨśśļƢƢėėɆļƖɆƖëƢļƖǘėĐɆƢķëƢɆƎŨĈƪƖƢɆëŝĐɆëƋƋƎŨƋƎļëƢėɆ arrangements are in place for the proportionate and independent investigation of such matters and for appropriate follow-up action. Committee evaluation The performance of the Audit Committee was assessed as a part of the Board Review, which this year was externally facilitated by Lintstock. All Audit Committee members completed a tailored survey, prior to being interviewed by Lintstock representatives, to expand on their survey responses and to raise any further issues they wished to discuss. As well as addressing core aspects of Audit Committee ƋėƎįŨƎśëŝĉėȚɆƢķėɇėǇėƎĉļƖėɆķëĐɆëɆƋëƎƢļĉƪŒëƎɆįŨĉƪƖɆŨŝɆƢķėɆ following areas: The assessment of work performed by the Internal and external auditors, the integrity of the control environment, and the quality ŨįɆǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİș Ɇ ¶ķėɆŨǁėƎƖļİķƢɆŨįɆ,ŝƢëļŝȼƖɆǘŝëŝĉļëŒɆķėëŒƢķȚɆëĉĉŨƪŝƢļŝİɆƢƎėëƢśėŝƢɆ and exposure to risk. The relationship and communication with key counterparties, including the Head of Internal Audit and the external audit partner. Following the interviews in February / March 2022, Lintstock will ƋƎėƋëƎėɆëɆƎėƋŨƎƢɆŨŝɆƢķėɆǘŝĐļŝİƖșɆQƢɆļƖɆėŝǁļƖëİėĐɆƢķëƢɆƢķėɆŨƪƢĉŨśėƖɆ will be discussed at a meeting of the Board in April 2022. Entain plc | Annual Report 2021 108 Governance Accounting and key areas of judgement ¶ķƎŨƪİķŨƪƢɆƢķėɆĉŨƪƎƖėɆŨįɆƢķėɆǈėëƎȚɆƢķėɆƪĐļƢɆŨśśļƢƢėėɆĐėƢėƎśļŝėĐɆƢķėɆįŨŒŒŨǂļŝİɆëƎėëƖɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆǂėƎėɆŨįɆ ƖļİŝļǘĉëŝƢɆļŝƢėƎėƖƢșɆ¶ķėƖėɆļƖƖƪėƖɆǂėƎėɆĐļƖĉƪƖƖėĐɆǂļƢķɆśëŝëİėśėŝƢɆëŝĐɆƢķėɆėǇƢėƎŝëŒɆëƪĐļƢŨƎƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆƢķėɆƎėƍƪļƎėĐɆ ŒėǁėŒɆŨįɇĐļƖĉŒŨƖƪƎėɆķëƖɆĈėėŝɆƋƎŨǁļĐėĐɆëŝĐɆƢķëƢɆëƋƋƎŨƋƎļëƢėɆƎļİŨƪƎɆķëƖɆĈėėŝɆëƋƋŒļėĐɆǂķėƎėɆëŝǈɆŌƪĐİėśėŝƢɆśëǈɆĈėɆėǇėƎĉļƖėĐșɆ For completeness, the Audit Committee report should be read in conjunction with the Risk Report on pages 78-85. Matter considered Action Separately disclosed items The Group separately discloses certain items in order to allow a clearer understanding of the underlying trading performance of the business. In 2021, the Group has recorded a net charge in respect of items which have been separately disclosed of £134.1m in the Income Statement. As part of their assessment that the treatment of separately ĐļƖĉŒŨƖėĐɆļƢėśƖɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļƖɆëƋƋƎŨƋƎļëƢėȚɆƢķėɆ Audit Committee has considered each of the items disclosed and challenged, where necessary, the treatment adopted by management. The Audit Committee has also considered the conclusions reached by KPMG as part of its audit in this area ëŝĐɆëƎėɆƖëƢļƖǘėĐɆǂļƢķɆƢķėɆƢƎėëƢśėŝƢɆëŝĐɆĐļƖĉŒŨƖƪƎėɆëĐŨƋƢėĐș In addition, non-GAAP measures have been provided within the Annual Report and Accounts to assist in the articulation of the underlying business. Non-GAAP measures relate to industry standard KPIs which are commonly used by the EƎŨƪƋȼƖɆƋėėƎƖɆëŝĐɆśëƎŏėƢɆëŝëŒǈƖƢƖș nëŝëİėśėŝƢȼƖɆƪƖėɆŨįɆŝŨŝȯEɆśėëƖƪƎėƖɆļŝɆėǇƋŒëļŝļŝİɆƢķėɆ underlying business performance has been considered by the Audit Committee, along with the views of KPMG on their use and prominence. Whilst the Committee understands the challenges associated with the use of non-GAAP measures, ƢķėǈɆëƎėɆƖëƢļƖǘėĐɆǂļƢķɆƢķėɆĈëŒëŝĉėɆŨįɆƢķėɆĐļƖĉŒŨƖƪƎėɆƋƎŨǁļĐėĐșɆ IFRS 3 fair value of acquired businesses During the year, the Group completed a number of ëĉƍƪļƖļƢļŨŝƖɆëƖɆĐėƢëļŒėĐɆļŝɆpŨƢėɆǦǥɆƢŨɆƢķėɆǘŝëŝĉļëŒɆ statements. Included within the IFRS 3 fair value exercise undertaken are a number of judgements including the value of acquired intangibles (£218.5m) and goodwill (£273.1m). The Audit Committee has reviewed the judgements made in connection with the accounting treatment, to determine whether the assets and liabilities recognised in ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆĉëƎƎļėĐɆëƢɆëŝɆëƋƋƎŨƋƎļëƢėɆįëļƎɆ value. In assessing the valuations, the Audit Committee has reviewed the working papers provided by management and its advisers in relation to the fair value exercise and has assessed the assumptions used and conclusions reached. The Committee has also considered the conclusions reached by KPMG on their work in this area and has concluded that ƢķėɆƢƎėëƢśėŝƢɆǂļƢķļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļƖɆëƋƋƎŨƋƎļëƢėș Uncertain tax positions Following a ruling by the Athens Administrative Court of Appeal in favour of the Group on the 2010/11 Greek Tax Assessment, the Group has recorded a receivable for the full amount due under the ruling plus interest. This has resulted in the Group recognising a receivable of €227.5m and an associated credit in the Income Statement of €82.5m ȩįŨƎɇëśŨƪŝƢƖɆƋƎėǁļŨƪƖŒǈɆƎėĉŨİŝļƖėĐɆëƖɆëɆĉķëƎİėȪș In assessing the treatment adopted, the Audit Committee has assessed the basis for the judgement taken, advice ƎėĉėļǁėĐɆĈǈɆƢķėɆEƎŨƪƋȼƖɆėǇƢėƎŝëŒɆŒėİëŒɆëĐǁļƖŨƎƖɆëŝĐɆƢķėɆ ëŝëŒǈƖļƖɆƋƎŨǁļĐėĐɆĈǈɆbnEșɆÕķļŒƖƢɆƢķėɆǘŝëŒɆŨƪƢĉŨśėɆƎėśëļŝƖɆ uncertain as the Greeks Authorities have appealed the ruling to the Greek Supreme Administrative Court, the Audit ŨśśļƢƢėėɆļƖɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆëƋƋƎŨƋƎļëƢėɆŌƪĐİėśėŝƢɆëŝĐɆ disclosure has been provided in the Annual Report. Contingent consideration Included within the Group Balance Sheet as at 31 December 2021 is contingent consideration of £70.8m, which has been ĉëŒĉƪŒëƢėĐɆĈëƖėĐɆŨŝɆƋŨƢėŝƢļëŒɆįƪƢƪƎėɆƋƎŨǘƢëĈļŒļƢǈɆëŝĐɆƢķėɆ likely cost of settlement. The Committee has reviewed the process and judgements taken by management in determining the likely pay-out under the contingent consideration agreements as well as ƢķėɆǘŝĐļŝİƖɆŨįɆƢķėɆbnEɆëƪĐļƢɆëŝĐɆëƎėɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆ liabilities recognised are appropriate given the circumstances. Report of the Audit Committee continued 109Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Report of the Environmental, Social ëŝĐɇEŨǁėƎŝëŝĉė ȩȹ,©EȺȪ ŨśśļƢƢėė Introduction Following the decision in 2020 to rename the Committee in recognition of the expanded scope and breadth of our remit, the ESG Committee has had an active period of work during 2021. We increased our meeting schedule from four to six meetings per ëŝŝƪśƢŨėŝƖƪƎėƢķëƢŨƪƎëİėŝĐëƖėŝëĈŒėĐƪƖƢŨĉŨǁėƎƢķėEƎŨƪƋȼƖ ,©EëĉƢļǁļƢļėƖëŝĐķŨǂƢķėƖėƪŝĐėƎƋļŝƢķėEƎŨƪƋȼƖƖƢƎëƢėİǈș pėǂįŨƎǥǣǥǤǂëƖƢķė,©EŨśśļƢƢėėȼƖśŨŝļƢŨƎļŝİŨįƢķŨƖė Principal Risks allocated to it by the Board for review. The ESG Committee held deep dive risk reviews on health, safety and wellbeing of customers and employees and the loss of key locations. In its reviews, the ESG Committee considered the nature and component of the Principal Risks, their proposed mitigations and risk management programmes. ¶ķė EƎŨƪƋȼƖ ėŝǁļƎŨŝśėŝƢëŒ ƋƎŨİƎëśśė ƎėĉėļǁėĐ ƋëƎƢļĉƪŒëƎ įŨĉƪƖ ĐƪƎļŝİƢķėǈėëƎȚǂļƢķƢķė,©EŨśśļƢƢėėƎėǁļėǂļŝİƢķėŨśƋëŝǈȼƖ commitment to be carbon net zero by 2035 and preparations to meet the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations. The ESG Committee will continue its įŨĉƪƖ Ũŝɇ¶D$ ĐƪƎļŝİ ǥǣǥǥș We increased our meeting schedule to ensure that our agendas enabled us to cover ƢķėEƎŨƪƋȼƖ,©EëĉƢļǁļƢļėƖ and how these underpin the EƎŨƪƋȼƖɇƖƢƎëƢėİǈșȺ Virginia McDowell Chair of the ESG Committee QŝpŨǁėśĈėƎQǂëƖĐėŒļİķƢėĐƢŨƋëƎƢļĉļƋëƢėļŝ,ŝƢëļŝȼƖǘƎƖƢ sustainability event – Entain:Sustain which demonstrated the EƎŨƪƋȼƖƋƎŨİƎėƖƖļŝŏėǈëƎėëƖƖƪĉķëƖƖëįėƎİëśĈŒļŝİȚĐļǁėƎƖļƢǈ and inclusion and environmental initiatives. I was pleased at the attendance at the event and the strength of the questions and discussion held, enabling important issues to be debated and explained. During the year we were joined by Stella David, our Senior Independent Director. Stella has brought deep insight from her executive career in consumer markets and non-executive roles. She has been a welcome addition to the ESG Committee. Virginia McDowell Chair of the ESG Committee 3 March 2022 Entain plc | Annual Report 2021 110 Governance The role of the ESG Committee ¶ķėɆŨśśļƢƢėėɆƋƎŨǁļĐėƖɆŨǁėƎƖļİķƢɆŨįɆƢķėɆŨśƋëŝǈȼƖɆ Environmental, Social and Governance (ESG) programme, ŨǁėƎƖėėļŝİɆƢķėɆėįįėĉƢļǁėɆśëŝëİėśėŝƢɆŨįɆƢķėɆŨśƋëŝǈȼƖɆ ongoing relationship and engagement with a wide spectrum of stakeholders. It monitors progress against internal key performance indicators and external ESG index results. Key responsibilities of the ESG Committee Review the framework of ESG policies and controls for managing ƢķėɆEƎŨƪƋȼƖɆƎėŒëƢļŨŝƖķļƋƖɆǂļƢķɆƖƢëŏėķŨŒĐėƎƖș Ɇ ,ŝƖƪƎėɆƢķëƢɆƖƪįǘĉļėŝƢɆįŨĉƪƖɆëŝĐɆƎėƖŨƪƎĉėɆļƖɆİļǁėŝɆƢŨɆ ļśƋŒėśėŝƢļŝİȚɆśŨŝļƢŨƎļŝİɆëŝĐɆśëŝëİļŝİɆƢķėɆEƎŨƪƋȼƖɆ,©EɆ policies and processes and that these remain effective. Consider the appointment of third parties to advise on ESG ƋŨŒļĉļėƖɆëŝĐɆƋƎëĉƢļĉėƖɆëŝĐȦŨƎɆëƪĐļƢɆƢķėɆEƎŨƪƋȼƖɆ,©EɆƋŨŒļĉļėƖș Ɇ dļëļƖėɆëŝĐɆǂŨƎŏɆǂļƢķɆƢķėɆŨëƎĐȼƖɆŨƢķėƎɆŨśśļƢƢėėƖɆƢŨɆėŝƖƪƎėɆƢķėɆ ŨëƎĐȼƖɆĐƪƢļėƖɆëŝĐɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆëƎėɆĉëƎƎļėĐɆŨƪƢɆėįįėĉƢļǁėŒǈș Prepare an ESG report for inclusion in the Annual Report and Accounts and oversee that any public disclosures on ESG ļƖƖƪėƖɆśëĐėɆĈǈɆƢķėɆEƎŨƪƋɆëĉĉƪƎëƢėŒǈɆƎėǙėĉƢɆƢķėɆEƎŨƪƋȼƖɆƋŨŒļĉļėƖɆ and processes. ¶ķėɆ,©EɆŨśśļƢƢėėȼƖɆƢėƎśƖɆŨįɆƎėįėƎėŝĉėɆǂėƎėɆƎėǁļėǂėĐɆëŝĐɆƪƋĐëƢėĐɆ and approved by the Board during the year. These can be found on the ŨśƋëŝǈȼƖɆǂėĈƖļƢėɆëƢɆwww.entaingroup.com ESG Committee membership and attendance During the year, the ESG Committee had four members. Jette Nygaard-Andersen stepped down from the Committee on 21 January 2021 upon becoming an Executive Director. Stella David joined the Committee on 4 March 2021 upon her appointment to the Board. Regular attendees at the meetings include the Chief Governance {įǘĉėƎȚɆ$ļƎėĉƢŨƎɆŨįɆQŝƢėƎŝëŒɆƪĐļƢȚɆEƎŨƪƋɆEėŝėƎëŒɆŨƪŝƖėŒɆëŝĐɆ ķļėįɆėŨƋŒėɆ{įǘĉėƎșɆ{ƢķėƎɆśëŝëİėśėŝƢɆļŝĉŒƪĐļŝİɆƢķėɆķėëĐƖɆ of the compliance teams, Director of Corporate Affairs, Director of Regulatory Operations and the HSSE Director attended periodically throughout the year. The Committee had six meetings during the year. Member Meetings attended/ eligible to attend Virginia McDowell (Chair) 6/6 Stella David 1 5/5 Peter Isola 6/6 David Satz 6/6 1. Joined the Committee on 4 March 2021. Activities Safer betting and gaming ¶ķėɆ,©EɆŨśśļƢƢėėɆƎėĉėļǁėĐɆƎėİƪŒëƎɆƪƋĐëƢėƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƖëįėƎɆ betting and gaming programme, including the ARC™ programme ëŝĐɆƢķėɆŨśƋëŝǈȼƖɆƎėƖėëƎĉķɆƋƎŨİƎëśśėɆǂļƢķɆLëƎǁëƎĐɆnėĐļĉëŒɆ School focusing on patterns of internet betting and gaming ĈėķëǁļŨƪƎɆëŝĐɆëƖƖėƖƖļŝİɆƢķėɆļśƋëĉƢɆŨįɆ,ŝƢëļŝȼƖɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆ gaming tools. The ESG Committee undertook a half-year and full-year review of the delivery of safer betting and gaming project metrics as part of the new safer betting and gaming element of the Group-wide annual bonus structure which has a 15% weighting. This review included an external assessment by EPIC Risk Management on ƢķėɆŨśƋëŝǈȼƖɆƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆƢëƎİėƢƖșɆƢɆļƢƖɆǈėëƎȯėŝĐɆ ëƖƖėƖƖśėŝƢɆƢķėɆ,©EɆŨśśļƢƢėėɆĐėƢėƎśļŝėĐɆļƢɆǂëƖɆƖëƢļƖǘėĐɆ that these metrics had been fully met and made a positive recommendation to the Remuneration Committee as part of its assessment. Further information on the development of the safer betting and gaming remuneration metric is outlined on page 126 of the $ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢș Gaming licence compliance ¶ķėɆ,©EɆŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆŏėǈɆėŒėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋȼƖɆ gaming licence compliance programme, including sports betting integrity and the work of the Gambling Ombudsman Director. Compliance governance The ESG Committee received quarterly reports on international, UK, retail and digital compliance developments and monitoring ŨįɆƢķėɆEƎŨƪƋȼƖɆĉŨśƋŒļëŝĉėɆśëŝëİėśėŝƢșɆQƢɆįƪƎƢķėƎɆƎėǁļėǂėĐɆƢķėɆ ƪƋĐëƢėɆŨįɆƢķėɆEƎŨƪƋɆŨśƋŒļëŝĉėɆŨśśļƢƢėėȼƖɆƢėƎśƖɆŨįɆƎėįėƎėŝĉėɆ and refreshed structure. Code of Conduct ¶ķėɆ,©EɆŨśśļƢƢėėɆƎėǁļėǂėĐɆëŝĐɆëƋƋƎŨǁėĐɆƢķėɆEƎŨƪƋȼƖɆ updated Code of Conduct and its associated roll-out and training ƋƎŨİƎëśśėșɆ$ėėƋɆĐļǁėƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆëŝƢļȯśŨŝėǈɆŒëƪŝĐėƎļŝİɆëŝĐɆ anti-bribery and corruption programmes were held during the year. Report of the ESG Committee continued 111 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Privacy and data protection Regular updates on data privacy and protection were given to the ESG Committee, including issues arising from requests to share safer betting and gaming data with regulators ëŝĐɆŒėİëŒɆëŝĐɆƎėİƪŒëƢŨƎǈɆĐėǁėŒŨƋśėŝƢƖɆëĉƎŨƖƖɆƢķėɆEƎŨƪƋȼƖɆ different jurisdictions. The ESG Committee held its annual review of the Group Data Retention Policy and Group Data Protection Policy. It further ĉŨŝƖļĐėƎėĐɆƢķėɆEƎŨƪƋȼƖɆƎƢļǘĉļëŒɆQŝƢėŒŒļİėŝĉėɆķëƎƢėƎș Health, Safety, Security and the Environment (“HSSE”) ¶ķėɆ,©EɆŨśśļƢƢėėɆĐļƖĉƪƖƖėĐɆƢķėɆEƎŨƪƋȼƖɆėŝǁļƎŨŝśėŝƢëŒɆ strategy and our commitment to being carbon net zero by 2035. HSSE performance was monitored by the ESG Committee ƢķƎŨƪİķɆƎėİƪŒëƎɆƪƋĐëƢėƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆL©©,ɆƋėƎįŨƎśëŝĉėɆ indicators and initiatives. The ESG Committee reviewed and approved the proposed HSSE strategy for 2022 as well as ëİƎėėļŝİɆƢķėɆEƎŨƪƋȼƖɆL©©,ɆbQƖɆįŨƎɆƢķėɆįŨƎƢķĉŨśļŝİɆǈėëƎș The ESG Committee undertook deep dive reviews on two Principal Risks allocate to it for monitoring: Health, safety and the wellbeing of customers and employees and loss of key locations. Diversity and inclusion ¶ķėɆ,©EɆŨśśļƢƢėėɆƎėĉėļǁėĐɆƍƪëƎƢėƎŒǈɆƎėƋŨƎƢƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆ ĐļǁėƎƖļƢǈɆëŝĐɆļŝĉŒƪƖļŨŝɆƋėƎįŨƎśëŝĉėȚɆǂļƢķɆĐėėƋėƎɆĈƎļėǘŝİƖɆŨŝɆ initiatives within the Company, including Employee Forums, technology access and apprenticeship programmes. Other reviews The ESG Committee oversaw the annual ESG report, ƎėǁļėǂļŝİɇƢķėɆƋƎėƋëƎėĐɆƢėǇƢɆëŝĐɆİļǁļŝİɆįėėĐĈëĉŏɆƢŨɆ śëŝëİėśėŝƢɇŨŝɆļƢƖɆĉŨŝƢėŝƢș ESG Committee evaluation The performance of the ESG Committee was assessed as ëɆƋëƎƢɇŨįɆƢķėɆŨëƎĐɆ¡ėǁļėǂȚɆǂķļĉķɆƢķļƖɆǈėëƎɆǂëƖɆėǇƢėƎŝëŒŒǈɆ facilitated by Lintstock. All ESG Committee members ĉŨśƋŒėƢėĐɇëɆƢëļŒŨƎėĐɆƖƪƎǁėǈȚɆƋƎļŨƎɆƢŨɆĈėļŝİɆļŝƢėƎǁļėǂėĐɆĈǈɆ Lintstock representatives, to expand on their survey responses ëŝĐɆƢŨɇƎëļƖėɆëŝǈɆįƪƎƢķėƎɆļƖƖƪėƖɆƢķėǈɆǂļƖķėĐɆƢŨɆĐļƖĉƪƖƖș As well as addressing core aspects of ESG Committee performance, the exercise had a particular focus on the following areas: The top priorities for Entain from an ESG perspective over the coming year, and the coverage of key issues at ESG Committee meetings. The policies and controls in key areas, including responsible gambling, anti-money laundering, anti-bribery and ĉŨƎƎƪƋƢļŨŝȚɇƋƎļǁëĉǈɆëŝĐɆĐëƢëɆƋƎŨƢėĉƢļŨŝȚɆëŝĐɆĐļǁėƎƖļƢǈɆ and inclusion. Ɇ ¶ķėɆëĐķėƎėŝĉėɆƢŨɆƋŨŒļĉļėƖɆëŝĐɆĉŨŝƢƎŨŒƖȚɆëŝĐɆ,ŝƢëļŝȼƖɆ engagement with key stakeholders in relation to ESG matters. Following the interviews in February / March 2022, Lintstock ǂļŒŒɆƋƎėƋëƎėɆëɆƎėƋŨƎƢɆŨŝɆƢķėɆǘŝĐļŝİƖșɆQƢɆļƖɆėŝǁļƖëİėĐɆƢķëƢɆ the outcomes will be discussed at a meeting of the Board in April 2022. Modern Slavery Act Statement review and internal Working Group ¶ķėɆǥǣǥǤɆnŨĐėƎŝɆ©ŒëǁėƎǈɆëŝĐɆLƪśëŝɆ¶ƎëįǘĉŏļŝİɆ Transparency Statement was written and published in accordance with Section 54(1) of the Modern Slavery Act 2015. The statement sets out the measures taken between 1st January 2020 – 31st December 2020. At the end of 2020, our Modern Slavery Working Group, which includes colleagues from Group Procurement, Human Resources, Internal Audit and Company Secretariat, was formed. The Working Group is responsible for producing the annual Modern Slavery Statement and aims to better the visibility of human rights issues, impacts and risks, and identify ways to eradicate adverse effects on human rights within the Entain plc group and extended supply chains. In 2021, the Working Group partnered with Unseen, one of the ½bȼƖɆŒėëĐļŝİɆëŝƢļȯƖŒëǁėƎǈɆĉķëƎļƢļėƖɆǂŨƎŏļŝİɆƢŨǂëƎĐƖɆėŝĐļŝİɆ modern slavery by empowering survivors, providing advice, ëŝĐɆļŝǙƪėŝĉļŝİɆƖŨĉļėƢǈșɆ½ŝƖėėŝɆëƖƖļƖƢėĐɆǂļƢķɆƎėǁļėǂļŝİɆ our policies and procedures, provided a comprehensive gap analysis of our current and future supply chain, and evaluated different areas of our operations such as HR, supply chains (including supply chain transparency) and procurement. In September 2021, we introduced mandatory training on the Modern Slavery Act 2015 to all colleagues across our ĈƪƖļŝėƖƖȚɆëŝĐɆǂėɆǂļŒŒɆƋƎŨǁļĐėɆƢëļŒŨƎėĐɆƢƎëļŝļŝİɆƢŨɆƖƋėĉļǘĉɆ functions within the Company, such as Procurement, Internal Audit and recruitment. The training aims to enhance our knowledge and understanding of the issues surrounding modern slavery and will help us identify and prevent modern slavery in our workplace and supply chains. The training will be refreshed annually. The Modern Slavery Statement was reviewed and approved by the Board of Entain plc and can be viewed on our Company website at www.entaingroup.com/sustainability/modern- slavery-statement Entain plc | Annual Report 2021 112 Governance The Nomination Committee also continued to monitor the composition and skills of the Board, succession planning for Non-Executive $ļƎėĉƢŨƎƖɇëŝĐɇĐļǁėƎƖļƢǈșȺ J M Barry Gibson Chair of the Nomination Committee Introduction I am pleased to introduce the Nomination Committee report for the year. During the early part of last year, the Nomination Committee focused on key Board appointments, a number of which I ĐļƖĉƪƖƖėĐļŝŒëƖƢǈėëƎȼƖƎėƋŨƎƢș¶ķėƖėļŝĉŒƪĐėĐƢķėëƋƋŨļŝƢśėŝƢ of Jette Nygaard-Andersen as Chief Executive, Stella David as Senior Independent Director and Vicky Jarman as a Non- Executive Director. In March, we appointed Mark Gregory as a Non-Executive Director ëŝĐķëļƎŨįƢķė¡ėśƪŝėƎëƢļŨŝŨśśļƢƢėėșnëƎŏĈƎļŝİƖǘŝëŝĉļëŒ and retail knowledge from his executive career as well as a deep understanding of UK corporate governance practice and investor sentiment. An experienced remuneration committee chair, he has proven to be a valuable addition to the Board. Stella, Vicky and Mark completed their induction programmes during 2021 and the Nomination Committee sought their feedback on the process in order to further build on the effectiveness of the programme for future new joiners. In our last report we announced that Sandeep Tiku, our Group ķļėį{ƋėƎëƢļŝİ{įǘĉėƎǂŨƪŒĐĈėŌŨļŝļŝİƢķėŨëƎĐĐƪƎļŝİǥǣǥǤ ƖƪĈŌėĉƢƢŨķļƖƎėŒŨĉëƢļŨŝƢŨEļĈƎëŒƢëƎș©ëŝĐėėƋȼƖƎėŒŨĉëƢļŨŝǂëƖ ĐėŒëǈėĐ Ĉǈ Ƣķė ƋëŝĐėśļĉ ëŝĐ ķė ķëƖ ŝŨƢļǘėĐ Ƣķė ŨśƋëŝǈ ƢķëƢ ķė no longer wishes to relocate and will therefore not be appointed to the Board. The Board will not meet shareholder expectations for an ethnically diverse composition and the Committee is currently undertaking an active search to appoint a Director from an ethnic minority background. The Nomination Committee also continued to monitor the composition and skills of the Board, succession planning for Non- Executive Directors and diversity. As outlined last year, we moved the regular succession planning for Executive Directors to the newly ėƖƢëĈŒļƖķėĐķëļƎśëŝȼƖŨśśļƢƢėėļŝŨƎĐėƎƢķëƢëŒŒpŨŝȯ,ǇėĉƪƢļǁė Directors can engage and input into this process. This worked well during 2021 and it is intended to continue this practice in 2022. J M Barry Gibson Chair of the Nomination Committee 3 March 2022 Nomination Committee Report 113 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 The role of the Nomination Committee The Nomination Committee actively reviews the composition and diversity of the Board and senior management and leads its succession process. It monitors the independence and time ĉŨśśļƢśėŝƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆėŝƖƪƎėƖɆ ƢķëƢɆëɆƎļİŨƎŨƪƖɆėǁëŒƪëƢļŨŝɆŨįɆƢķėɆŨëƎĐȼƖɆėįįėĉƢļǁėŝėƖƖɆëŝĐɆ performance is undertaken at least annually. Key responsibilities of the Nomination Committee Ensuring that there is a formal, rigorous and transparent procedure for appointments to the Board. Leading the process for appointments and make recommendations to the Board. Assisting the Board in ensuring its composition is regularly reviewed and refreshed, taking into account the length of service of the Board as a whole, so that it is effective and able to operate in the best interests of shareholders. Ensuring plans are in place for orderly succession to positions on the Board, the Executive Committee and where appropriate, senior management, including the Company Secretary. Overseeing the development of a diverse pipeline for succession. Working and liaising with other Board Committees, ëƖɇëƋƋƎŨƋƎļëƢėȚɆļŝĉŒƪĐļŝİɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆļŝɆ respect of any remuneration package to be offered to any new ëƋƋŨļŝƢėėɆŨįɇƢķėɆŨëƎĐșɆ ¶ķėɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėȼƖɆƢėƎśƖɆŨįɆƎėįėƎėŝĉėɆǂėƎėɆƎėǁļėǂėĐɆëŝĐɆƪƋĐëƢėĐɆ and approved by the Board during the year. These can be found on the ŨśƋëŝǈȼƖɆǂėĈƖļƢėɆëƢɆwww.entaingroup.com Nomination Committee membership and attendance ¶ķėɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėȼƖɆśėśĈėƎƖķļƋɆĉŨŝƖļƖƢƖɆŨįɆ the Senior Independent Director and the chairs of each ŨįɇƢķėɇŨëƎĐɆŨśśļƢƢėėƖș The Nomination Committee had three meetings during the year. Member Meetings attended/ eligible to attend Barry Gibson (Chair) 3/3 Pierre Bouchut 3/3 Stella David 1 1/1 Mark Gregory 2 1/1 Virginia McDowell 3/3 Stephen Morana 3 2/2 1. Joined the Nomination Committee on 4 March 2021. 2. Joined the Nomination Committee on 17 March 2021. 3. Resigned from the Nomination Committee on 4 March 2021. Entain plc | Annual Report 2021 114 Governance Activities Board appointments ƖɆŨƪƢŒļŝėĐɆļŝɆŒëƖƢɆǈėëƎȼƖɆƎėƋŨƎƢȚɆļŝɆėëƎŒǈɆǥǣǥǤɆƢķėɆpŨśļŝëƢļŨŝɆ Committee led the process for the appointment of the new CEO Jette Nygaard-Andersen, the Senior Independent Director Stella David and Vicky Jarman as a Non-Executive Director. For these searches we engaged external search consultant Russell Reynolds. In addition, the Committee engaged Russell Reynolds for the search for a new Remuneration Committee Chair. A short list of candidates was put forward by Russell Reynolds and these candidates met members of the Committee, the Chief Executive ëŝĐɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎșɆ¶ķėɆŨśśļƢƢėėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆ Mark Gregory would be an excellent addition to the Board and an ėǇƋėƎļėŝĉėĐɆƎėśƪŝėƎëƢļŨŝɆĉŨśśļƢƢėėɆĉķëļƎȚɆǂļƢķɆǁëŒƪëĈŒėɆǘŝëŝĉļëŒɆ ëŝĐɆĉƪƖƢŨśėƎɆƖėƎǁļĉėɆļŝƖļİķƢȚɆëŝĐɆƢķėƎėįŨƎėɆƎėĉŨśśėŝĐėĐɆnëƎŏȼƖɆ appointment to the Board. Mark Gregory was appointed to the Board in March 2021. Russell Reynolds Associates have no other connection with the Group or individual Directors and are accredited under the ėŝķëŝĉėĐɆǁŨŒƪŝƢëƎǈɆĉŨĐėɆŨįɆĉŨŝĐƪĉƢɆįŨƎɆėǇėĉƪƢļǁėɆƖėëƎĉķɆǘƎśƖș External search consultants Following the intensive period of Director searches in early 2021, ƢķėɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėɆƎėǙėĉƢėĐɆŨŝɆƢķėɆƖėëƎĉķɆƋƎŨĉėƖƖɆëŝĐɆ agreed to implement a policy whereby there would be a rotation of external search consultants used for each new potential Director appointment going forward. Board composition and Board Committees To assist in succession planning for Non-Executive Director appointments and Committee membership, the Nomination Committee considered the skills, experience and tenure of current pŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƎėǙėĉƢėĐɆŨŝɆķŨǂɆƢķļƖɆƖŏļŒŒƖėƢɆėŝëĈŒėĐɆ ƢķėɆŨëƎĐɆƢŨɆėǇėĉƪƢėɆƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİǈȚɆįƪŒǘŒɆƢķėɆƢëƖŏƖɆëŝĐɆ activities of its Committees and meet future challenges. The Nomination Committee assessed the new Non-Executive Director appointments in 2021 and recommended that Stella David join the Remuneration, ESG and Nomination Committees, Vicky Jarman join the Audit and Remuneration Committees and Mark Gregory join the Audit and Nomination Committees (as well as chairing the Remuneration Committee). During the year the Nomination Committee considered membership of each Board Committee in light of Board changes and focused on succession planning for the chairs and membership of each Committee as this had been an action arising from the 2020 Board and Committee evaluation. The Nomination Committee agreed an immediate successor for each Committee chair from the current Non-Executive Directors and discussed longer term succession planning. In addition, it was recommended that David Satz join the Audit Committee in light of his deep knowledge of the betting and gaming industry. David joined the Audit Committee in August 2021. Independence The Nomination Committee considered the independence of each Non-Executive Director as part of its recommendation to the Board for Director re-election. In making this recommendation, the Nomination Committee also considered the time commitment and performance evaluation of each Director standing for appointment. Diversity The Nomination Committee continued to appraise appointments to the Board from the perspective of its commitment to diversity, particularly with respect to gender and ethnicity, in its composition and succession plans. With the appointment of Stella David and Vicky Jarman in March 2021, the proportion of women on the Board at 31 December 2021 increased to 36%. During the year the ŨëƎĐɆƎėǁļėǂėĐɆƢķėɆİėŝĐėƎɆĈëŒëŝĉėɆëśŨŝİƖƢɆƢķėɆEƎŨƪƋȼƖɆƖėŝļŨƎɆ management and further information can be found on page 58 of the Strategic Report. In January 2021 we announced that Sandeep Tiku, our Chief {ƋėƎëƢļŝİɆ{įǘĉėƎȚɆǂŨƪŒĐɆĈėɆŌŨļŝļŝİɆƢķėɆŨëƎĐɆëƖɆëŝɆ,ǇėĉƪƢļǁėɆ Director, with Sandeep relocating from India to Gibraltar. In 2021 ƢķļƖɆëƋƋŨļŝƢśėŝƢɆǂëƖɆĐėŒëǈėĐɆĐƪėɆƢŨɆ©ëŝĐėėƋȼƖɆļŒŒɆķėëŒƢķɆĐƪƎļŝİɆ ƢķėɆƋëŝĐėśļĉșɆ©ëŝĐėėƋɆķëƖɆŝŨǂɆŝŨƢļǘėĐɆƢķėɆEƎŨƪƋɆƢķëƢɆķėɆŝŨɆ longer intends to relocate to Gibraltar and he will therefore not be appointed to the Board. The Board recognises the value of having ëɆĐļǁėƎƖėɆśėśĈėƎƖķļƋɆëŝĐɆļƖɆśļŝĐįƪŒɆƢķëƢȚɆįŨŒŒŨǂļŝİɆ©ëŝĐėėƋȼƖɆ decision not to relocate, it will not meet shareholder expectations on the number of Directors from an ethnic minority background. Consequently, as part of its ongoing review of Board composition and diversity, the Nomination Committee is taking active steps to appoint a Director from an ethnic minority background. The Nomination Committee reviewed and recommended the Board Diversity Policy which was subsequently approved by ƢķėɆŨëƎĐșɆ¶ķļƖɆĉëŝɆĈėɆįŨƪŝĐɆŨŝɆƢķėɆŨśƋëŝǈȼƖɆǂėĈƖļƢėɆëƢɆ www.entaingroup.com Committee evaluation The performance of the Nomination Committee was assessed as a part of the Board Review, which this year was externally facilitated by Lintstock. All Nomination Committee members completed a tailored survey, prior to being interviewed by Lintstock representatives, to expand on their survey responses and to raise any further issues they wished to discuss. As well as addressing core aspects of Nomination Committee performance, the exercise had a particular focus on the following areas: The review of succession plans for key Board and management ƋŨƖļƢļŨŝƖȚɆļŝĉŒƪĐļŝİɆƢķėɆļĐėŝƢļǘĉëƢļŨŝɆŨįɆƢëŒėŝƢɆǂļƢķļŝɆ the business. The promotion of a diverse pipeline of talent within the organisation, and the level of attention devoted to diversity and inclusion in talent management. The level of exposure that the Board members gain to developing talent within the organisation. Following the interviews in February/March 2022, Lintstock will ƋƎėƋëƎėɆëɆƎėƋŨƎƢɆŨŝɆƢķėɆǘŝĐļŝİƖșɆQƢɆļƖɆėŝǁļƖëİėĐɆƢķëƢɆƢķėɆŨƪƢĉŨśėƖɆ will be discussed at a meeting of the Board in April 2022. ¶ķėɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėɆǂëƖɆƖëƢļƖǘėĐɆƢķëƢɆëɆśëļŝɆëĉƢļŨŝɆ from the 2020 Board and Committee evaluation to ensure that succession planning remained a key area of focus had been met during the year through detailed discussion at the Board (on senior ėǇėĉƪƢļǁėɆśëŝëİėśėŝƢȪȚɆƢķėɆķëļƎśëŝȼƖɆŨśśļƢƢėėɆȩŨŝɆ,ǇėĉƪƢļǁėɆ Directors), the Nomination Committee (for Non-Executive Directors ëŝĐɆƢķėɆŨśśļƢƢėėƖȪɆëŝĐɆëƢɆƢķėɆƪĐļƢɆŨśśļƢƢėėɆȩįŨƎɆƢķėɆǘŝëŝĉėɆ leadership of the Group). Nomination Committee Report continued Directors’ Remuneration Report Directors’ Remuneration Report Annual Statement from the Remuneration Committee Chair Page 116 The Remuneration Committee Page 120 Executive remuneration at Entain Page 122 Remuneration in context Page 128 Annual Report on Remuneration Page 134 Directors’ Remuneration Report 115 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 2021 Group performance ǥǣǥǤɆķëƖɆƖėėŝɆ,ŝƢëļŝɆĉŨŝƢļŝƪėɆƢŨɆĐėŒļǁėƎɆƖƢƎŨŝİɆǘŝëŝĉļëŒɆ and operational performance, demonstrating sustainable, ĉŨŝƖļƖƢėŝƢɆëŝĐɆĐļǁėƎƖļǘėĐɆİƎŨǂƢķȚɆĐƎļǁėŝɆĈǈɆŨƪƎɆŨŝŒļŝėɆ ėǇƋëŝƖļŨŝɆëŝĐɆƎėƖļŒļėŝƢɆƎėƢëļŒɆƎėĉŨǁėƎǈșɆÕėɆëƎėɆƋƎŨƪĐɆŨįɆŨƪƎɆ ëĉķļėǁėśėŝƢƖɆëƖɆǂėɆĉŨŝƢļŝƪėɆƢŨɆŒėëĐɆƢķėɆļŝĐƪƖƢƎǈɆļŝɆƢķėɆǁļƢëŒɆ ëƎėëɆŨįɆƋŒëǈėƎɆƋƎŨƢėĉƢļŨŝș bėǈɆǥǣǥǤɆƋėƎįŨƎśëŝĉėɆķļİķŒļİķƢƖɆļŝĉŒƪĐėț {ŝŒļŝėɆpE¡ɆƪƋɆǤǦɼɆëƢɆĉŨŝƖƢëŝƢɆĉƪƎƎėŝĉǈș pļŝėɆĉŨŝƖėĉƪƢļǁėɆǈėëƎƖɆŨįɆĐŨƪĈŒėȯĐļİļƢɆŨŝŒļŝėɆpE¡ɆİƎŨǂƢķș EƎŨƪƋɆƪŝĐėƎŒǈļŝİɆ,Q¶$ 1 ɆƪƋɆǨɼɆëƢɆɞǫǫǤșǪśș $ŨƪĈŒėɆĐļİļƢɆİƎŨǂƢķɆļŝɆëŒŒɆŏėǈɆśëƎŏėƢƖɆėǇĉŒƪĐļŝİɆEėƎśëŝǈɆ ëŝĐɆƢķėɆpėƢķėƎŒëŝĐƖșɆ ŨŝƢļŝƪėĐɆİėŨİƎëƋķļĉɆėǇƋëŝƖļŨŝɆļŝƢŨɆŝėǂɆśëƎŏėƢƖɆǂļƢķɆ ƢķėɆĉŨśƋŒėƢļŨŝɆŨįɆƢķėɆëĉƍƪļƖļƢļŨŝƖɆŨįɆėƢșƋƢɆļŝɆŨƎƢƪİëŒɆëŝĐɆ ,ŝŒëĈƖɆɆļŝɆƢķėɆëŒƢļĉƖș ĉƍƪļƖļƢļŨŝɆŨįɆ½ŝļŏƎŝɆƢŨɆĐƎļǁėɆëĉĉėƖƖɆƢŨɆƢķėɆėƖƋŨƎƢƖɆƖŏļŒŒɆ ĈëƖėĐɆǂëİėƎļŝİɆśëƎŏėƢș {ƪƎɆŌŨļŝƢɆǁėŝƢƪƎėɆļŝɆƢķėɆ½©ȚɆėƢnEnȚɆŝŨǂɆŒļǁėɆļŝɆǥǤɆƖƢëƢėƖɆ ǂļƢķɆśëƎŏėƢɆƖķëƎėɆļŝɆƢķėɆįŨƪƎƢķɆƍƪëƎƢėƎɆŨįɆǥǦɼɆǂķėƎėɆ ļƢɆŨƋėƎëƢėƖș ¶ķėɆĉŨŝƢļŝƪėĐɆëĐǁëŝĉėśėŝƢɆŨįɆŨƪƎɆ©ƪƖƢëļŝëĈļŒļƢǈɆ ķëƎƢėƎɆëŝĐɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢǈɆʁɆëƎėʆɆȩȹ¡ʆȺȪɆ programme, reinforcing the Group’s commitment to ĐėŒļǁėƎļŝİɆļŝĐƪƖƢƎǈɆĈėƖƢȯļŝȯĉŒëƖƖɆ,ŝǁļƎŨŝśėŝƢëŒȚɆ©ŨĉļëŒɆëŝĐɆ EŨǁėƎŝëŝĉėɆȩȹ,©EȺȪɇƋƎëĉƢļĉėƖș The launch of our commitment to net zero carbon emissions ĈǈɆǥǣǦǨɆëŝĐɆŨƪƎɆ,ŝ¶ƎëļŝɆļŝļƢļëƢļǁėɆƢŨɆĈėŝėǘƢɆƢķėɆŒļǁėƖɆŨįɆŨŝėɆ śļŒŒļŨŝɆƋėŨƋŒėɆƢķƎŨƪİķɆëĉĉėƖƖɆƢŨɆƢėĉķŝŨŒŨİǈș ǤșɆ ɆŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖɆƖƢëƢėĐɆƋƎėȯƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖș Annual Statement from the ¡ėśƪŝėƎëƢļŨŝɇŨśśļƢƢėėɆķëļƎɆ {ŝɆĈėķëŒįɆŨįɆƢķėɆŨëƎĐȚɆQɆëśɆƋŒėëƖėĐɆƢŨɆƋƎėƖėŝƢɆśǈɆǘƎƖƢɆ$ļƎėĉƢŨƎƖȼɆ ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢɆȩƢķėɆȹ¡ėƋŨƎƢȺȪɆëƖɆķëļƎɆŨįɆ,ŝƢëļŝȼƖɆ ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆȩƢķėɆȹŨśśļƢƢėėȺȪɆįŨƎɆƢķėɆǈėëƎɆėŝĐėĐɆ ǦǤɆ$ėĉėśĈėƎɆǥǣǥǤșɆQɆëśɆƋŒėëƖėĐɆƢŨɆķëǁėɆĈėėŝɆëĈŒėɆƢŨɆǂėŒĉŨśėɆ ©ƢėŒŒëɆ$ëǁļĐɆëŝĐɆÔļĉŏǈɆëƎśëŝɆëƖɆŝėǂɆśėśĈėƎƖɆŨįɆƢķėɆŨśśļƢƢėėɆ ļŝɆnëƎĉķɆǥǣǥǤɆëŝĐɆǂŨƪŒĐɆŒļŏėɆƢŨɆƢķëŝŏɆ©ƢėƋķėŝɆnŨƎëŝëɆįŨƎɆķļƖɆ ĉŨŝƢƎļĈƪƢļŨŝɆĐƪƎļŝİɆķļƖɆƢėŝƪƎėɆŨŝɆƢķėɆŨśśļƢƢėėșɆ DŨŒŒŨǂļŝİɆƖķëƎėķŨŒĐėƎɆëƋƋƎŨǁëŒɆŨįɆŨƪƎɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈɆëƢɆŨƪƎɆ EnɆŨŝɆǥǧɆƪŝėɆǥǣǥǣȚɆƢķļƖɆǈėëƎɆǂėɆǂļŒŒɆĈėɆëƖŏļŝİɆƖķëƎėķŨŒĐėƎƖɆ ƢŨɆǁŨƢėɆŨŝɆŨƪƎɆŝŝƪëŒɆ¡ėƋŨƎƢɆŨŝɆ¡ėśƪŝėƎëƢļŨŝɆëƢɆŨƪƎɆǥǣǥǥɆEnșɆ The Report summarises remuneration outcomes for 2021 and ėǇƋŒëļŝƖɆķŨǂɆǂėɆļŝƢėŝĐɆƢŨɆëƋƋŒǈɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈɆįŨƎɆ ǥǣǥǥșɆ¶ķėɆŨŒļĉǈɆļƖɆƖėƢɆŨƪƢɆļŝɆŨƪƎɆǥǣǤǬɆ$ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ ¡ėƋŨƎƢɆëŝĐɆĉëŝɆĈėɆįŨƪŝĐɆŨŝɆƢķėɆŨśƋëŝǈȼƖɆǂėĈƖļƢėɆëƢɆ www.entaingroup.com. QɆǂŨƪŒĐɆŒļŏėɆƢŨɆƢķëŝŏɆëŒŒɆŨįɆŨƪƎɆĉŨŒŒėëİƪėƖȚɆëĉƎŨƖƖɆƢķėɆİŒŨĈėȚɆǂķŨɆ ķëǁėɆĉŨŝƢƎļĈƪƢėĐɆƢŨɆƢķėɆŨśƋëŝǈȼƖɆƖƪĉĉėƖƖɆļŝɆǥǣǥǤɆĐėƖƋļƢėɆƢķėɆ ŨŝİŨļŝİɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬɆǂķļĉķɆëİëļŝɆƖëǂɆŨƪƎɆĉŨŒŒėëİƪėƖɆ ļśƋëĉƢėĐɆĈŨƢķɆëƢɆǂŨƎŏɆëŝĐɆƋėƎƖŨŝëŒŒǈșɆ¶ķėɆƎėƖļŒļėŝĉėɆëŝĐɆƋëƖƖļŨŝɆ ƖķŨǂŝɆĈǈɆŨƪƎɆĉŨŒŒėëİƪėƖɆĐƪƎļŝİɆƢķļƖɆƋƎŨŒŨŝİėĐɆƋėƎļŨĐɆļƖɆƢėƖƢëśėŝƢɆ ƢŨɆƢķėɆƖƢƎėŝİƢķɆŨįɆƢëŒėŝƢɆǂėɆķëǁėɆëƢɆ,ŝƢëļŝɆëŝĐɆƢķėļƎɆĐƎļǁėɆƢŨɆĐėŒļǁėƎɆ ƢķėɆŨśƋëŝǈȼƖɆİŨëŒƖș QŝɆ$ėĉėśĈėƎɆQɆǂëƖɆĐėŒļİķƢėĐɆƢŨɆķëǁėɆƢķėɆŨƋƋŨƎƢƪŝļƢǈɆƢŨɆƋëƎƢļĉļƋëƢėɆ ļŝɆ,ŝƢëļŝȼƖɆEŒŨĈëŒɆŨŝįėƎėŝĉėȚɆǂķļĉķɆėŝëĈŒėĐɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒɆ ëŝĐɆśǈƖėŒįɆƢŨɆƖƋėëŏɆǂļƢķɆĉŨŒŒėëİƪėɆƎėƋƎėƖėŝƢëƢļǁėƖɆįƎŨśɆëɆǁëƎļėƢǈɆ ŨįɆĉŨƪŝƢƎļėƖɆëŝĐɆŌŨĈɆƎŨŒėƖɆŨŝɆëɆǂļĐėɆƎëŝİėɆŨįɆƢŨƋļĉƖȚɆļŝĉŒƪĐļŝİɆ ƎėśƪŝėƎëƢļŨŝșɆnŨƎėɆļŝįŨƎśëƢļŨŝɆĉëŝɆĈėɆįŨƪŝĐɆŨŝɆƋëİėƖɆǬǫɆ ëŝĐɆǤǦǣș ǥǣǥǤɆƖëǂɆƢķėɆëƋƋŨļŝƢśėŝƢɆŨįɆėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝɆëƖɇŨƪƎɆ,{Ɇ ǂķŨȚɆƢŨİėƢķėƎɆǂļƢķɆķėƎɆśëŝëİėśėŝƢɆƢėëśȚɆķëĐɆëɆƖƪĉĉėƖƖįƪŒɆǈėëƎɆ ļŝɆĐėǁėŒŨƋļŝİɆëŝĐɆļśƋŒėśėŝƢļŝİɆŨƪƎɆƖƢƎëƢėİǈɆëŒŨŝİƖļĐėɆśëŝëİļŝİɆ ƢķėɆëƋƋƎŨëĉķėƖɆįŨƎɆƢķėɆEƎŨƪƋɆĈǈɆnEnɆ¡ėƖŨƎƢƖɆQŝƢėƎŝëƢļŨŝëŒɆëŝĐɆ $ƎëįƢbļŝİƖșɆ½ŝĐėƎɆėƢƢėȼƖɆŒėëĐėƎƖķļƋɆǂėɆėŝƢėƎɆǥǣǥǥɆļŝɆëɆƖƢƎŨŝİɆ ƋŨƖļƢļŨŝɆëŝĐɆĉŨŝƢļŝƪėɆƢŨɆśëŏėɆƋƎŨİƎėƖƖɆŨŝɆŨƪƎɆëśĈļƢļŨŝɆƢŨɆĈėɆƢķėɆ global leader in betting, gaming and interactive entertainment, ǂķļĉķɆļƖɆĉŨŝǘƎśėĐɆǂķėŝɆQɆƎėǙėĉƢɆŨŝɆƢķėɆǥǣǥǤɆEƎŨƪƋɆƋėƎįŨƎśëŝĉėɆ ķļİķŒļİķƢƖɆƖƪśśëƎļƖėĐɆƢŨɆƢķėɆŒėįƢșɆŒŒɆƢķėƖėɆëĉķļėǁėśėŝƢƖɆƋƪƢɆ ƪƖɆļŝɆëɆİƎėëƢɆƋŨƖļƢļŨŝɆëƖɆǂėɆŒŨŨŏɆįŨƎǂëƎĐɆƢŨɆėǇėĉƪƢļŝİɆŨŝɆŨƪƎɆ ƖƢƎëƢėİǈȚɆİƎŨǂļŝİɆŨƪƎɆįŨŨƢƋƎļŝƢɆëŝĐɆĉƪƖƢŨśėƎɆĈëƖėɆëŝĐɆĐėŒļǁėƎļŝİɆ ëŝɆėǁėŝɆĈėƢƢėƎɆėǇƋėƎļėŝĉėɆįŨƎɆŨƪƎɆĉƪƖƢŨśėƎƖɆėëĉķɆëŝĐɆėǁėƎǈɆĐëǈșɆ nŨƎėɆĐėƢëļŒɆļƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆķļėįɆ,ǇėĉƪƢļǁėȼƖɆ¡ėǁļėǂɆŨŝɆƋëİėɆǤǣș ǥǣǥǤɆǂëƖɆëŝŨƢķėƎɆƖƪĉĉėƖƖįƪŒɆǈėëƎɆ įŨƎɆ,ŝƢëļŝșɆQɆëśɆƋŒėëƖėĐɆƢķëƢɆŨƪƎɆ ƎėśƪŝėƎëƢļŨŝɆįƎëśėǂŨƎŏɆļƖɆķļİķŒǈɆëŒļİŝėĐɆ ƢŨɆƎėǂëƎĐɆŨƪƎɆėǇėĉƪƢļǁėƖɆįŨƎɆĐėŒļǁėƎļŝİɆ ƢķļƖɆŒėǁėŒɆŨįɆƋėƎįŨƎśëŝĉėɆëŝĐɆǂėɆķëǁėɆ ëŒƖŨɆĈėėŝɆëĈŒėɆƢŨɆƎėǙėĉƢɆƢķļƖɆļŝɆƢķėɆ ƖƢƎėŝİƢķėŝļŝİɆŨįɆŨƪƎɆƎėǂëƎĐɆƋƎŨƋŨƖļƢļŨŝɆ įŨƎɆëŒŒɆ,ŝƢëļŝɆĉŨŒŒėëİƪėƖșȺ Mark Gregory Chair of the Remuneration Committee Directors’ Remuneration Report continued Entain plc | Annual Report 2021 116 Governance Entain plc | Annual Report 2021 Remuneration in 2021 QɆǂëŝƢėĐɆƢŨɆƢëŏėɆƢķļƖɆŨƋƋŨƎƢƪŝļƢǈɆƢŨɆŨƪƢŒļŝėɆëĉƢļŨŝƖɆƢëŏėŝɆĈǈɆƢķėɆ ŨśśļƢƢėėɆĐƪƎļŝİɆƢķėɆĉŨƪƎƖėɆŨįɆƢķėɆǈėëƎɆëŝĐɆƢŨɆƖėƢɆƢķėƖėɆļŝɆƢķėɆ ĉŨŝƢėǇƢɆŨįɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉėș Salaries ɆŝƪśĈėƎɆŨįɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆĉķëŝİėƖɆǂėƎėɆëŝŝŨƪŝĉėĐɆļŝɆǥǣǥǤȚɆ ëŝĐɆįƪŒŒɆĐėƢëļŒƖɆŨįɆëƖƖŨĉļëƢėĐɆƎėśƪŝėƎëƢļŨŝɆǂėƎėɆƖėƢɆŨƪƢɆļŝɆƢķėɆǥǣǥǣɆ $ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢɆëŒŨŝİɆǂļƢķɆƢķėɆƖëŒëƎǈɆļŝĉƎėëƖėɆ ëǂëƎĐėĐɆƢŨɆŨƪƎɆD{ȚɆ¡ŨĈɆÕŨŨĐȚɆƪƋŨŝɆƢëŏļŝİɆŨŝɆëĐĐļƢļŨŝëŒɆ ƎėƖƋŨŝƖļĈļŒļƢǈɆëƖɆ$ėƋƪƢǈɆ,{șɆQŝɆƋëƎëŒŒėŒȚɆİļǁėŝɆƢķėɆĉŨŝƢļŝƪėĐɆ ƪŝĉėƎƢëļŝƢǈɆƎėŒëƢļŝİɆƢŨɆŨǁļĐȯǤǬɆļƢɆǂëƖɆëİƎėėĐɆƢķëƢɆŝŨɆİėŝėƎëŒɆ ƖëŒëƎǈɆļŝĉƎėëƖėƖɆǂŨƪŒĐɆĈėɆļśƋŒėśėŝƢėĐɆëƢɆƢķėɆƢǈƋļĉëŒɆëŝŝƪëŒɆ ƎėǁļėǂɆĐëƢėɆŨįɆǤɆëŝƪëƎǈɆǥǣǥǤșɆLŨǂėǁėƎȚɆƢķėɆEƎŨƪƋɆĉŨŝƢļŝƪėĐɆƢŨɆ ensure, throughout this period, that the salaries of those colleagues ƋŒëĉėĐɆŨŝɆįƪƎŒŨƪİķɆǂėƎėɆƢŨƋƋėĐɆƪƋɆƢŨɆǤǣǣɼșɆdëƢėƎɆļŝɆƢķėɆǈėëƎȚɆƢķėɆ ŨśśļƢƢėėɆǂëƖɆƋŒėëƖėĐɆƢķëƢȚɆİļǁėŝɆƢķėɆƖƢƎėŝİƢķɆŨįɆƢķėɆEƎŨƪƋȼƖɆ ƋėƎįŨƎśëŝĉėȚɆƢķėɆĐėĉļƖļŨŝɆǂëƖɆśëĐėɆƢŨɆĈƎļŝİɆįŨƎǂëƎĐɆƢķėɆǥǣǥǥɆ ëŝŝƪëŒɆƖëŒëƎǈɆƎėǁļėǂȚɆįŨƎɆƢķėɆİėŝėƎëŒɆėśƋŒŨǈėėɆƋŨƋƪŒëƢļŨŝɆ ȩėǇĉŒƪĐļŝİɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆ,ǇėĉƪƢļǁėɆŨśśļƢƢėėɆśėśĈėƎƖȪȚɆ ƢŨɆǤɆ{ĉƢŨĈėƎɆǥǣǥǤșɆ¶ķļƖɆėŝëĈŒėĐɆėŒļİļĈŒėɆĉŨŒŒėëİƪėƖɆƢŨɆƎėĉėļǁėɆëŝɆ ļŝĉƎėëƖėɆƢķƎėėɆśŨŝƢķƖɆĈėįŨƎėɆƢķėɆƢǈƋļĉëŒɆǤɆëŝƪëƎǈɆƎėǁļėǂɆĐëƢėș 2021 incentive outturns 2021 annual bonus outturn ÕķļŒƖƢɆƢķėɆŨǁėƎëŒŒɆƖƢƎƪĉƢƪƎėɆŨįɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆƎėśëļŝėĐɆ ƪŝĉķëŝİėĐȚɆǥǣǥǤɆƖëǂɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆëɆŝėǂɆŝŨŝȯǘŝëŝĉļëŒɆ metric, safer betting and gaming, representing 15% of the overall śëǇļśƪśɆĈŨŝƪƖɆŨƋƋŨƎƢƪŝļƢǈșɆ,ŝƢëļŝɆļƖɆįƪŒŒǈɆëŒļİŝėĐɆǂļƢķɆƢķėɆ UK Gambling Commission’s principal objectives to ensure that ĉķļŒĐƎėŝɆëŝĐɆǁƪŒŝėƎëĈŒėɆƋėŨƋŒėɆëƎėɆƋƎŨƢėĉƢėĐșɆ{ƪƎɆëƋƋƎŨëĉķɆƢŨɆ safer betting and gaming aims to maintain best practice standards ëĉƎŨƖƖɆŨƪƎɆĈƪƖļŝėƖƖɆǂķėƎėǁėƎɆǂėɆŨƋėƎëƢėɆëŝĐɆƢŨɆƎėļŝįŨƎĉėɆƢķļƖɆ ĉŨśśļƢśėŝƢɆǂėɆļŝĉŨƎƋŨƎëƢėĐɆëŝɆëƖƖŨĉļëƢėĐɆśėƢƎļĉɆļŝƢŨɆŨƪƎɆ ëŝŝƪëŒɆĈŨŝƪƖȚɆëŒŨŝİƖļĐėɆƢķėɆǘŝëŝĉļëŒɆśėƢƎļĉƖɆȩƪŝĐėƎŒǈļŝİɆEƎŨƪƋɆ ŨƋėƎëƢļŝİɆƋƎŨǘƢ 1 ɆëŝĐɆİƎŨǂƢķɆļŝɆŨŝŒļŝėɆŝėƢɆİëśļŝİɆƎėǁėŝƪėɆȩȹpE¡ȺȪȪșɆ LëǁļŝİɆƢķŨƎŨƪİķŒǈɆƎėǁļėǂėĐɆƢķėɆƋėƎįŨƎśëŝĉėɆįŨƎɆėëĉķɆśėƢƎļĉȚɆ and noting that furlough monies received during 2021 are being repaid, the Committee approved a bonus outturn for the Executive $ļƎėĉƢŨƎƖɆŨįɆǤǣǣɼɆŨįɆśëǇļśƪśɆŨƋƋŨƎƢƪŝļƢǈșɆ QŝɆëƖƖėƖƖļŝİɆƢķėɆƪŝĐėƎŒǈļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆŨƪƢĉŨśėȚɆ ƢķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆƖėǁėƎëŒɆļƢėśƖȚɆǂķļĉķɆļśƋëĉƢėĐɆĈŨƢķɆ ƋŨƖļƢļǁėŒǈɆëŝĐɆŝėİëƢļǁėŒǈɆĐƪƎļŝİɆǥǣǥǤșɆQŝɆƎėëĉķļŝİɆƢķėļƎɆĉŨŝĉŒƪƖļŨŝȚɆ ëƖɆǂŨƪŒĐɆĈėɆėǇƋėĉƢėĐȚɆƢķėɆŨśśļƢƢėėɆķëǁėɆėǇĉŒƪĐėĐɆƢķėɆĈėŝėǘƢɆŨįɆ įƪƎŒŨƪİķɆƋëǈśėŝƢƖɆƎėĉėļǁėĐɆĐƪƎļŝİɆǥǣǥǤșɆÕėɆķëǁėɆëŒƖŨɆėǇĉŒƪĐėĐɆ ƢķėɆŝėƢɆĈėŝėǘƢɆŨįɆëĉƍƪļƖļƢļŨŝƖȚɆëŝĐɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆƢėśƋŨƎëƎǈɆ ǂļƢķĐƎëǂëŒɆįƎŨśɆƢķėɆpėƢķėƎŒëŝĐƖɆśëƎŏėƢɆļŝɆƢķėɆįŨƪƎƢķɆƍƪëƎƢėƎɆŨįɆ ǥǣǥǤșɆƢɆƢķėɆƢļśėɆƢķėɆǥǣǥǤɆƢëƎİėƢƖɆǂėƎėɆƖėƢȚɆƢķėƖėɆļƢėśƖɆǂėƎėɆ ƪŝįŨƎėƖėėŝɆëŝĐɆƢķėƎėįŨƎėɆŝŨƢɆƎėǙėĉƢėĐɆļŝɆƢķėśș ÕķėŝɆƎėǁļėǂļŝİɆŨŝŒļŝėɆpE¡ɆƋėƎįŨƎśëŝĉėȚɆƢķėɆŨśśļƢƢėėɆ ĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆśëǇļśƪśɆƋëǈȯŨƪƢɆǂëƖɆëƋƋƎŨƋƎļëƢėșɆ ÕķļŒƖƢɆśļŝĐįƪŒɆŨįɆƢķėɆļśƋëĉƢɆŨŝɆƢķļƖɆśėƢƎļĉɆŨįɆƢķėɆŨǁļĐȯǤǬɆ pandemic and its effect on customer behaviour, the Committee ǂëƖɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆŨƪƢƋėƎįŨƎśëŝĉėɆëĉķļėǁėĐɆǂëƖɆŝŨƢɆƖŨŒėŒǈɆëɆ ƢėśƋŨƎëƎǈɆėįįėĉƢșɆ¶ķėɆŨśśļƢƢėėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėɆëĉķļėǁėśėŝƢɆ ƎėƋƎėƖėŝƢėĐɆȹƎėëŒȺɆİƎŨǂƢķɆëŝĐɆƢķėɆśëǇļśƪśɆƢëƎİėƢɆǂŨƪŒĐɆ ķëǁėɆĈėėŝɆėǇĉėėĐėĐɆǂļƢķŨƪƢɆƢķėɆƋŨƖļƢļǁėɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬɆ ƎėŒëƢėĐɆƎėƖƢƎļĉƢļŨŝƖș ÕķėŝɆĉŨŝƖļĐėƎļŝİɆƢķėɆŨƪƢĉŨśėɆŨįɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆ śėƢƎļĉȚɆƢķėɆŨśśļƢƢėėɆǂëƖɆƋŒėëƖėĐɆƢŨɆƎėëĐɆƢķėɆļŝĐėƋėŝĐėŝƢɆ ëƖƖėƖƖśėŝƢɆƋƎėƋëƎėĐɆĈǈɆ,QɆ¡ļƖŏɆnëŝëİėśėŝƢȚɆƢķėɆŒėëĐļŝİɆ İëśĈŒļŝİɆķëƎśɆśļŝļśļƖëƢļŨŝɆĉŨŝƖƪŒƢëŝĉǈȚɆëŝĐɆëĉĉėƋƢėĐɆƢķėɆ ƎėĉŨśśėŝĐëƢļŨŝɆƋƎŨǁļĐėĐɆŨŝɆƢķėɆŨƪƢƢƪƎŝɆĈǈɆƢķėɆ,©EɆŨśśļƢƢėėș ¶ķėɆŨśśļƢƢėėɆļƖɆƋŒėëƖėĐɆƢķëƢɆƢķėɆĉŨśśļƢśėŝƢɆëŝĐɆķëƎĐɆǂŨƎŏɆ of all eligible colleagues can be recognised and believes that ƢķėɆŨƪƢƢƪƎŝɆŨįɆǤǣǣɼɆŨįɆśëǇļśƪśɆŨƋƋŨƎƢƪŝļƢǈɆįŨƎɆƢķėɆ,ǇėĉƪƢļǁėɆ $ļƎėĉƢŨƎƖɆƎėƋƎėƖėŝƢƖɆëɆĉŨśśėŝƖƪƎëƢėɆŒėǁėŒɆŨįɆƎėǂëƎĐɆįŨƎɆǥǣǥǤșɆ nŨƎėɆĐėƢëļŒɆŨŝɆƢķėɆĈŨŝƪƖɆŨƪƢƢƪƎŝɆļƖɆİļǁėŝɆŨŝɆƋëİėɆǤǥǥș 2019 LTIP outturn {ƪƎɆƋėƎįŨƎśëŝĉėɆļŝɆǥǣǥǤɆĉŨŝƢļŝƪėĐɆƢķėɆƖƢƎŨŝİɆƢƎëŌėĉƢŨƎǈɆǂķļĉķɆǂėɆ ķëǁėɆƖķŨǂŝɆŨǁėƎɆƢķėɆŒëƖƢɆįėǂɆǈėëƎƖșɆ¡ŨĈƪƖƢɆ,©ɆİƎŨǂƢķɆŨǁėƎɆƢķėɆ ƋėƎļŨĐɆǥǣǤǬȱǥǤȚɆĉŨƪƋŒėĐɆǂļƢķɆƖļİŝļǘĉëŝƢɆ¶©¡ɆŨƪƢȯƋėƎįŨƎśëŝĉėɆŨįɆ ƢķėɆD¶©,ɆǨǤȯǤǨǣɆĉŨśƋëƎëƢŨƎɆİƎŨƪƋȚɆŒėĐɆƢŨɆƢķėɆǁėƖƢļŝİɆŨįɆƢķėɆǥǣǤǬɆ d¶QɆëǂëƎĐɆëƢɆǤǣǣɼɆŨįɆśëǇļśƪśș QŝɆĉŨŝƖļĐėƎļŝİɆƢķėɆŨƪƢĉŨśėɆŨįɆƢķėɆ,©ɆėŒėśėŝƢɆŨįɆƢķėɆǥǣǤǬɆd¶QȚɆ the Committee noted that the reported result for EPS over the ƢķƎėėȯǈėëƎɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐɆėǇĉėėĐėĐɆƢķėɆƪƋƋėƎɆėŝĐɆŨįɆƢķėɆ ƢëƎİėƢɆƎëŝİėșɆQŝɆëƖƖėƖƖļŝİɆƢķėɆǘŝëŒɆŨƪƢĉŨśėȚɆƢķėɆŨśśļƢƢėėɆįƪƎƢķėƎɆ ƎėǁļėǂėĐɆƖėǁėƎëŒɆļƢėśƖɆƢķëƢɆļśƋëĉƢėĐɆ,©ȚɆĈŨƢķɆƋŨƖļƢļǁėɆëŝĐɆ ŝėİëƢļǁėȚɆĐƪƎļŝİɆƢķėɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐșɆ¶ķėɆĈėŝėǘƢɆŨįɆįƪƎŒŨƪİķɆ ƋëǈśėŝƢƖɆƎėĉėļǁėĐɆĐƪƎļŝİɆǥǣǥǣɆëŝĐɆǥǣǥǤɆķëǁėɆĈėėŝɆėǇĉŒƪĐėĐȚɆ ëƖɆķëƖɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆQD¡©ɆǤǩȚɆƢķėɆŝėƢɆĈėŝėǘƢɆŨįɆ ëĉƍƪļƖļƢļŨŝƖȚɆƢķėɆėǇļƢɆįƎŨśɆŨƪƎɆĈƪƖļŝėƖƖėƖɆļŝɆ©ǂļƢǒėƎŒëŝĐɆëŝĐɆƢķėɆ pėƢķėƎŒëŝĐƖɆëŝĐɆƢķėɆļśƋëĉƢɆŨįɆƎėİƪŒëƢŨƎǈɆĉķëŝİėƖɆļŝɆEėƎśëŝǈșɆ pŨŝėɆŨįɆƢķėƖėɆļƢėśƖɆǂėƎėɆƎėǙėĉƢėĐɆļŝɆƢķėɆŨƎļİļŝëŒɆ,©ɆƢëƎİėƢƖșɆ The resulting EPS outcome continues to exceed the upper end of ƢķėɆƢëƎİėƢɆƎëŝİėș ¶ķėɆŨśśļƢƢėėɆƎėĉŨİŝļƖėƖɆƢķėɆŝėėĐɆƢŨɆėŝƖƪƎėɆƢķļƖɆƋëǈȯŨƪƢɆĉëŝɆ ĈėɆŌƪƖƢļǘėĐɆĈëƖėĐɆŨŝɆƢķėɆǂļĐėƎɆėǇƋėƎļėŝĉėɆŨįɆŨƪƎɆƖķëƎėķŨŒĐėƎƖȚɆ ĉŨŒŒėëİƪėƖȚɆëŝĐɆŨƢķėƎɆƖƢëŏėķŨŒĐėƎƖșɆQŝɆĐŨļŝİɆƖŨȚɆƢķėɆŨśśļƢƢėėɆ ĉŨŝƖļĐėƎėĐɆ,ŝƢëļŝȼƖɆƖķëƎėɆƋƎļĉėɆƋėƎįŨƎśëŝĉėɆŨǁėƎɆƢķėɆƋėƎļŨĐɆȱɆ ƪƋɆǤǨǣɼɆȱɆŨƪƎɆǘŝëŝĉļëŒɆëŝĐɆŨƋėƎëƢļŨŝëŒɆƋėƎįŨƎśëŝĉėȚɆëŝĐɆƢķėɆ ėǇĉėŒŒėŝƢɆƋƎŨİƎėƖƖɆƢķëƢɆǂėɆķëǁėɆśëĐėɆŨŝɆŨƪƎɆƖƪƖƢëļŝëĈļŒļƢǈɆëŝĐɆ ƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆëİėŝĐëșɆnŨƎėɆĐėƢëļŒɆŨŝɆƢķėɆd¶QɆŨƪƢƢƪƎŝɆ ļƖɆİļǁėŝɆŨŝɆƋëİėɆǤǥǥș ǤșɆ Ɇ,ǇĉŒƪĐļŝİɆƢķėɆĈėŝėǘƢɆŨįɆįƪƎŒŨƪİķɆƋëǈśėŝƢƖɆƎėĉėļǁėĐȚɆëĉƍƪļƖļƢļŨŝƖɆëŝĐɆƢķėɆƎėƖƪŒƢƖɆ ŨįɇėƢnEnș 117 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Directors’ Remuneration Report continued Conclusion ¶ëŏļŝİɆëŒŒɆŨįɆƢķėɆëĈŨǁėɆļŝƢŨɆëĉĉŨƪŝƢȚɆëŝĐɆĉŨŝƖļĐėƎļŝİɆƢķėɆEƎŨƪƋȼƖɆ ƖƪĈƖėƍƪėŝƢɆĐėĉļƖļŨŝɆƢŨɆƎėƋëǈɆįƪƎŒŨƪİķɆśŨŝļėƖɆƎėĉėļǁėĐɆļŝɆǥǣǥǤȚɆ the Committee believes that the outcomes of the annual bonus ëŝĐɆd¶QɆǂėƎėɆįëļƎɆëŝĐɆëƋƋƎŨƋƎļëƢėȚɆƎėǙėĉƢļŝİɆƪŝĐėƎŒǈļŝİɆĈƪƖļŝėƖƖɆ ƋėƎįŨƎśëŝĉėɆëŝĐɆĈėļŝİɆëŒļİŝėĐɆǂļƢķɆƢķėɆėǇƋėƎļėŝĉėɆŨįɆŨƪƎɆ ƖķëƎėķŨŒĐėƎƖɆëŝĐɆŨƢķėƎɆƖƢëŏėķŨŒĐėƎƖɆŨǁėƎɆƢķėɆŨŝėȯǈėëƎɆëŝĐɆƢķƎėėȯ ǈėëƎɆƎėƖƋėĉƢļǁėɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐƖșɆ 2021 LTIP awards ¶ķėɆǥǣǥǤɆd¶QɆëǂëƎĐƖɆǂėƎėɆİƎëŝƢėĐɆŨŝɆǥǧɆnëƎĉķɆǥǣǥǤșɆ DŨŒŒŨǂļŝİɆĉķëŝİėƖɆśëĐėɆƢŨɆƢķėɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆļŝɆǥǣǥǣȚɆƢķėɆ ŨśśļƢƢėėɆǂëƖɆĉŨśįŨƎƢëĈŒėɆƢķëƢɆƢķėǈɆƎėśëļŝėĐɆëƋƋƎŨƋƎļëƢėɆįŨƎɆ ƢķėɆǥǣǥǤɆëǂëƎĐƖȚɆǂļƢķɆŨŝŒǈɆëɆśļŝŨƎɆĉķëŝİėɆƢŨɆƢķėɆĈėƖƋŨŏėɆ¶©¡Ɇ ĉŨśƋëƎëƢŨƎɆİƎŨƪƋșɆ$ƪėɆƢŨɆĉŨƎƋŨƎëƢėɆëĉƢļǁļƢǈȚɆ¶ķėɆ©ƢëƎƖɆEƎŨƪƋɆ ëŝĐɆÕļŒŒļëśɆLļŒŒɆǂėƎėɆƎėśŨǁėĐɆįƎŨśɆƢķėɆİƎŨƪƋɆëŝĐɆëėƖëƎƖɆ ,ŝƢėƎƢëļŝśėŝƢɆǂëƖɆëĐĐėĐșɆ¶ķėɆśėƢƎļĉƖɆǂėƎėț Ɇ {ŝėȯƢķļƎĐɆƪśƪŒëƢļǁėɆ,© Ɇ {ŝėȯƢķļƎĐɆ¡ėŒëƢļǁėɆ¶ŨƢëŒɆ©ķëƎėķŨŒĐėƎɆ¡ėƢƪƎŝɆǁƖșɆƢķėɆD¶©,ɆǤǣǣɆ Ɇ {ŝėȯƢķļƎĐɆ¡ėŒëƢļǁėɆ¶ŨƢëŒɆ©ķëƎėķŨŒĐėƎɆ¡ėƢƪƎŝɆǁƖșɆëɆĈėƖƋŨŏėɆİƎŨƪƋɆ of sectoral peers ¶ķėɆŨśśļƢƢėėɆǂļŒŒɆëƖƖėƖƖɆƢķėɆǁëŒƪėɆŨįɆƢķėɆǥǣǥǤɆd¶QɆëǂëƎĐƖɆëƢɆ ǁėƖƢļŝİɆëŝĐɆǂļŒŒɆėŝƖƪƎėɆƢķëƢɆƢķėɆǘŝëŒɆŨƪƢƢƪƎŝɆƎėǙėĉƢƖɆëŒŒɆƎėŒėǁëŝƢɆ įëĉƢŨƎƖȚɆļŝĉŒƪĐļŝİɆĉŨŝƖļĐėƎëƢļŨŝɆŨįɆƪŝĐėƎŒǈļŝİɆƋėƎįŨƎśëŝĉėșɆ ¶ķėɆƢėƎśƖɆŨįɆƢķėɆëǂëƎĐƖɆƋƎŨǁļĐėɆƢķėɆŨśśļƢƢėėɆǂļƢķɆƢķėɆëĈļŒļƢǈɆ ƢŨɆƎėǁļėǂɆƢķėɆŨƪƢĉŨśėɆëƢɆǁėƖƢļŝİɆëŝĐɆƢŨɆśëŏėɆëƋƋƎŨƋƎļëƢėɆ ëĐŌƪƖƢśėŝƢƖɆļįɆļƢɆĉŨŝĉŒƪĐėƖɆƢķëƢɆƋëƎƢļĉļƋëŝƢƖɆķëǁėɆĈėŝėǘƢėĐɆ įƎŨśɆȹǂļŝĐįëŒŒɆİëļŝƖȺɆëƖɆǂėŒŒɆëƖɆƎėǁļėǂļŝİɆëŝǈɆśëŒƪƖɆëŝĐɆ ĉŒëǂĈëĉŏɆĉŨŝƖļĐėƎëƢļŨŝƖș Looking ahead to 2022 Directors’ salaries ¶ķėɆŨśśļƢƢėėɆƎėǁļėǂėĐɆƢķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆƖëŒëƎļėƖɆļŝɆ $ėĉėśĈėƎɆǥǣǥǤɆëŝĐɆëƋƋƎŨǁėĐɆëɆƖëŒëƎǈɆįŨƎɆŨƪƎɆ,{ɆŨįɆɞǫǥǣȚǣǣǣɆ įƎŨśɆǤɆëŝƪëƎǈɆǥǣǥǥɆȩëŝɆļŝĉƎėëƖėɆŨįɆǬșǦɼȪșɆ¶ķļƖɆǂëƖɆëİƎėėĐɆĈǈɆ ƢķėɆŨśśļƢƢėėȚɆëįƢėƎɆėǇƢėŝƖļǁėɆĐļƖĉƪƖƖļŨŝȚɆëŝĐɆƎėǙėĉƢƖɆƢķėɆİŒŨĈëŒɆ ŒëŝĐƖĉëƋėɆįŨƎɆŏėǈɆƖėŝļŨƎɆƢëŒėŝƢɆļŝɆǂķļĉķɆǂėɆŨƋėƎëƢėɆëŝĐɆĉėśėŝƢƖɆ ŨƪƎɆǂļƖķɆƢŨɆƎėƢëļŝɆėƢƢėɆëƢɆ,ŝƢëļŝșɆ¶ķėɆĉŨśƋėƢļƢļǁėɆŝëƢƪƎėɆŨįɆƢķļƖɆ śëƎŏėƢɆǂëƖɆļŒŒƪƖƢƎëƢėĐɆļŝɆǥǣǥǤɆǂļƢķɆƢķėɆĐėƋëƎƢƪƎėɆŨįɆ©ķëǈɆ©ėİėǁșɆ ½ŝĐėƎɆėƢƢėȼƖɆĐļƎėĉƢļŨŝȚɆ,ŝƢëļŝȼƖɆƖƢƎëƢėİǈɆķëƖɆƖļİŝļǘĉëŝƢŒǈɆėǁŨŒǁėĐɆ to provide a clear roadmap for a sustainable future business and ƖķėɆķëƖɆƋƎėƖļĐėĐɆŨǁėƎɆëŝɆėǇĉėŒŒėŝƢɆǈėëƎɆŨįɆİƎŨǂƢķɆëŝĐɆƋėƎįŨƎśëŝĉėɆ ǂķļŒƖƢɆėƖƢëĈŒļƖķļŝİɆķėƎƖėŒįɆëƖɆëŝɆŨƪƢƖƢëŝĐļŝİɆëŝĐɆķļİķŒǈɆƎėİëƎĐėĐɆ ļŝĐƪƖƢƎǈɆŒėëĐėƎșɆ¶ķėɆŨśśļƢƢėėɆǂëƖɆĉŨśįŨƎƢëĈŒėɆƢķëƢɆƢķļƖɆŒėǁėŒɆ ŨįɆļŝĉƎėëƖėɆǂëƖɆëƋƋƎŨƋƎļëƢėɆƢŨɆëĉŏŝŨǂŒėĐİėɆėƢƢėȼƖɆƖļİŝļǘĉëŝƢɆ ĉŨŝƢƎļĈƪƢļŨŝɆëŝĐɆŝŨƢėĐɆƢķėɆļŝĉƎėëƖėɆśŨǁėƖɆķėƎɆƖëŒëƎǈɆĈƎŨëĐŒǈɆļŝɆ ŒļŝėɆǂļƢķɆƢķëƢɆŨįɆbėŝŝėƢķɆŒėǇëŝĐėƎȚɆƋƎļŨƎɆƢŨɆķļƖɆƎėƢļƎėśėŝƢɆëƖɆ,{șɆ ėƢƢėȼƖɆėǇļƖƢļŝİɆļŝĉėŝƢļǁėɆŒėǁėŒƖɆƎėśëļŝɆƪŝĉķëŝİėĐș ¶ķėɆķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎɆʁɆ$ėƋƪƢǈɆ,{ɆëŝĐɆķļėįɆEŨǁėƎŝëŝĉėɆ {įǘĉėƎɆƎėĉėļǁėĐɆļŝĉƎėëƖėƖɆŨįɆǥșǨɼȚɆƢëŏļŝİɆƢķėļƎɆĈëƖėɆƖëŒëƎļėƖɆƢŨɆ ɞǨǦǫȚǤǥǨɆëŝĐɆɞǧǤǣȚǣǣǣɆƎėƖƋėĉƢļǁėŒǈȚɆǂļƢķɆėįįėĉƢɆįƎŨśɆǤɆëŝƪëƎǈɆ ǥǣǥǥșɆ¶ķėƖėɆļŝĉƎėëƖėƖɆëƎėɆļŝɆŒļŝėɆǂļƢķɆƢķėɆƖëŒëƎǈɆƎėǁļėǂɆĈƪĐİėƢɆ ëǁëļŒëĈŒėɆįŨƎɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉėɆļŝɆƢķėɆ½bɆëŝĐɆEļĈƎëŒƢëƎɆ ǂķėƎėɆƢķėƖėɆ$ļƎėĉƢŨƎƖɆëƎėɆĈëƖėĐșɆ¶ķėļƎɆėǇļƖƢļŝİɆļŝĉėŝƢļǁėɆŒėǁėŒƖɆ ƎėśëļŝɆƪŝĉķëŝİėĐș Annual bonus – new performance metric ¶ķėɆŨǁėƎëŒŒɆƖƢƎƪĉƢƪƎėɆŨįɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆƎėśëļŝƖɆǘƢɆįŨƎɆƋƪƎƋŨƖėɆ ëŝĐɆƢķėƎėįŨƎėɆǂėɆëƎėɆŝŨƢɆƋƎŨƋŨƖļŝİɆëŝǈɆśëŌŨƎɆĉķëŝİėƖɆįŨƎɆǥǣǥǥșɆ LŨǂėǁėƎȚɆQɆëśɆƋŒėëƖėĐɆƢŨɆƖëǈɆƢķëƢɆǂėɆķëǁėɆļŝƢƎŨĐƪĉėĐɆëɆŝėǂɆŝŨŝȯɆ ǘŝëŝĉļëŒɆśėƢƎļĉɆƢŨɆƎėǙėĉƢɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆƋŒëĉļŝİɆĉƪƖƢŨśėƎƖɆëƢɆ ƢķėɆķėëƎƢɆŨįɆėǁėƎǈƢķļŝİɆǂėɆĐŨșɆ¶ķļƖɆĉƪƖƢŨśėƎɆśėƢƎļĉɆǂļŒŒɆƎėƋƎėƖėŝƢɆ ǨɼɆŨįɆƢķėɆŨǁėƎëŒŒɆĈŨŝƪƖɆŨƋƋŨƎƢƪŝļƢǈɆļŝɆǥǣǥǥɆëŝĐɆǂėɆǂļŒŒɆƪƖėɆ pėƢɆƎŨśŨƢėƎɆ©ĉŨƎėɆȩȹp©ȺȪɆƢŨɆĐėƢėƎśļŝėɆļƢƖɆŨƪƢĉŨśėșɆp©ɆļƖɆ ëɆǂļĐėŒǈɆƪƖėĐɆĉƪƖƢŨśėƎɆŒŨǈëŒƢǈɆëŝĐɆƖëƢļƖįëĉƢļŨŝɆśėëƖƪƎėɆƢķëƢɆ ëŒŒŨǂƖɆĉŨśƋëŝļėƖɆƢŨɆƢƎëĉŏɆƋƎŨśŨƢėƎƖɆëŝĐɆĐėƢƎëĉƢŨƎƖȚɆƋƎŨĐƪĉļŝİɆ a clear measure of an organisation’s performance through its ĉƪƖƢŨśėƎƖȼɇėǈėƖș ÕėɆëƎėɆėŝķëŝĉļŝİɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉȚɆǘƎƖƢɆ ļŝƢƎŨĐƪĉėĐɆļŝɆǥǣǥǤșɆ¶ķļƖɆśėƢƎļĉɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆƎėƋƎėƖėŝƢɆǤǨɼɆ ŨįɆƢķėɆŨǁėƎëŒŒɆĈŨŝƪƖɆŨƋƋŨƎƢƪŝļƢǈșɆQŝɆĐėƢėƎśļŝļŝİɆƢķėɆŨƪƢĉŨśėɆŨįɆ ƢķļƖɆśėƢƎļĉȚɆƢķėɆŨśśļƢƢėėɆǂļŒŒɆëİëļŝɆƎėĉėļǁėɆļŝƋƪƢɆįƎŨśɆŨƪƎɆ,©EɆ ŨśśļƢƢėėȚɆǂķŨɆǂļŒŒɆķëǁėɆŨǁėƎëŒŒɆŨǁėƎƖļİķƢɆŨįɆŨƪƎɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆ İëśļŝİɆëİėŝĐëɆëŝĐɆǂļŒŒɆëƖƖėƖƖɆƢķėɆEƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆ ƢķļƖɆśėƢƎļĉșɆ Entain plc | Annual Report 2021 118 Governance ¶ķļƖɆśėëŝƖɆƢķëƢɆƢķėɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆŝŨǂɆƎėǙėĉƢɆëŝɆǫǣɼɆ ǘŝëŝĉļëŒɆȦɆǥǣɼɆŝŨŝȯǘŝëŝĉļëŒɆǂėļİķƢļŝİșɆDƪƎƢķėƎɆļŝįŨƎśëƢļŨŝɆŨŝɆƢķėɆ ŝėǂɆĉƪƖƢŨśėƎɆśėƢƎļĉɆëŝĐɆƢķėɆėǁŨŒƪƢļŨŝɆŨįɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆ İëśļŝİɆśėƢƎļĉɆļƖɆƋƎŨǁļĐėĐɆŨŝɆƋëİėɆǤǥǩș QŝɆƢėƎśƖɆŨįɆƢķėɆǘŝëŝĉļëŒɆśėëƖƪƎėƖȚɆǂėɆëƎėɆƎėƢëļŝļŝİɆƪŝĐėƎŒǈļŝİɆ EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆëƖɆëɆśėƢƎļĉɆļŝɆƢķėɆƖëśėɆƋƎŨƋŨƎƢļŨŝɆƢŨɆ ǥǣǥǤɆȩǩǣɼȪșɆ¶ķėɆƎėśëļŝļŝİɆǥǣɼɆŨįɆƢķėɆĈŨŝƪƖɆǂļŒŒɆĈėɆĐėƢėƎśļŝėĐɆ ĈǈɆëɆİƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡ɆśėƢƎļĉșɆpE¡ɆƎėśëļŝƖɆŨŝėɆŨįɆŨƪƎɆŏėǈɆ ƋėƎįŨƎśëŝĉėɆļŝĐļĉëƢŨƎƖɆëŝĐɆİƎŨǂļŝİɆƢķļƖɆśėƢƎļĉȚɆļŝɆƋëƎƢļĉƪŒëƎɆ in relation to our online business, is fundamental to driving ƖķëƎėķŨŒĐėƎɆǁëŒƪėșɆ¶ķėɆƢëƎİėƢɆƎëŝİėɆįŨƎɆĈŨƢķɆǘŝëŝĉļëŒɆśėëƖƪƎėƖɆ ķëƖɆĈėėŝɆƖėƢɆǂļƢķɆƎėįėƎėŝĉėɆƢŨɆļŝƢėƎŝëŒɆëŝĐɆėǇƢėƎŝëŒɆįŨƎėĉëƖƢƖȚɆ ėǇĉŒƪĐļŝİɆŨƪƎɆ½©ɆŌŨļŝƢɆǁėŝƢƪƎėșɆ Long-Term Incentive Plan QŝɆĐėƢėƎśļŝļŝİɆƢķėɆd¶QɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆįŨƎɆƢķėɆǥǣǥǥɆ ëǂëƎĐȚɆƢķėɆŨśśļƢƢėėɆķëƖɆĉŨŝƖļĐėƎėĐɆƢķėɆĐļįǘĉƪŒƢǈɆļŝɆƖėƢƢļŝİɆ ëƋƋƎŨƋƎļëƢėŒǈɆƖƢƎėƢĉķļŝİɆĈƪƢɆļŝĉėŝƢļǁļƖļŝİɆ,©ɆƢëƎİėƢƖȚɆİļǁėŝɆƢķėɆ įëƖƢȯĉķëŝİļŝİɆėǇƢėƎŝëŒɆėŝǁļƎŨŝśėŝƢɆļŝɆǂķļĉķɆǂėɆĉƪƎƎėŝƢŒǈɆŨƋėƎëƢėșɆ ¶ķėɆŨśśļƢƢėėɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķļƖɆĉëŝɆĈėɆëĐĐƎėƖƖėĐɆĈǈɆ ĈëƖļŝİɆŨƪƎɆǥǣǥǥɆd¶QɆëǂëƎĐɆėŝƢļƎėŒǈɆŨŝɆƎėŒëƢļǁėɆ¶©¡ɆśėƢƎļĉƖșɆ ¶ķļƖɆëŒļİŝƖɆśëŝëİėśėŝƢȼƖɆļŝƢėƎėƖƢƖɆĉŒŨƖėŒǈɆǂļƢķɆƢķėɆėǇƋėƎļėŝĉėɆ ŨįɆļŝǁėƖƢŨƎƖɆëŝĐɆļŝĉėŝƢļǁļƖėƖɆëĉƢļŨŝƖɆǂķļĉķɆėŝķëŝĉėɆŒŨŝİȯƢėƎśɆ ǁëŒƪėɆĉƎėëƢļŨŝș ǂëƎĐƖɆëƎėɆėǇƋėĉƢėĐɆƢŨɆĈėɆśëĐėɆļŝɆƢķėɆǘƎƖƢɆƍƪëƎƢėƎɆŨįɆǥǣǥǥɆëŝĐɆ ĐėƢëļŒƖɆŨįɆƢķėɆƖƋėĉļǘĉɆƢëƎİėƢƖɆëƎėɆƖėƢɆŨƪƢɆŨŝɆƋëİėɆǤǥǪș ŨëƎĐɆķëŝİėƖ ƖɆƎėƋŨƎƢėĐɆļŝɆĐėƢëļŒɆļŝɆŒëƖƢɆǈėëƎȼƖɆ$ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢȚɆ ėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝɆǂëƖɆëƋƋŨļŝƢėĐɆëƖɆŨƪƎɆ,{ɆŨŝɆǥǤɆëŝƪëƎǈɆ ǥǣǥǤȚɆƖƪĉĉėėĐļŝİɆ©ķëǈɆ©ėİėǁɆǂķŨɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐɆ ŨŝɆƢķėɆƖëśėɆĐëƢėșɆ¡ŨĈėƎƢɆLŨƖŏļŝɆǂëƖɆëŒƖŨɆëƋƋŨļŝƢėĐɆƢŨɆƢķėɆŨëƎĐɆ ŨŝɆǤɆëŝƪëƎǈɆǥǣǥǤɆļŝɆƢķėɆƎŨŒėɆŨįɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎșɆ Shareholder engagement ÕėɆƎėśëļŝɆĉŨśśļƢƢėĐɆƢŨɆśëļŝƢëļŝļŝİɆëŝɆŨƋėŝɆëŝĐɆƢƎëŝƖƋëƎėŝƢɆ ĐļëŒŨİƪėɆǂļƢķɆŨƪƎɆƖķëƎėķŨŒĐėƎƖɆëŝĐɆǂėɆėŝİëİėĐɆǂļƢķɆëɆŝƪśĈėƎɆ ŨįɆŨƪƎɆƖļİŝļǘĉëŝƢɆƖķëƎėķŨŒĐėƎƖɆļŝɆƢķėɆǘƎƖƢɆķëŒįɆŨįɆǥǣǥǤȚɆķŨŒĐļŝİɆ ėǇƋŒŨƎëƢŨƎǈɆĉŨŝǁėƎƖëƢļŨŝƖɆƎėİëƎĐļŝİɆƋŨƢėŝƢļëŒɆĐėǁėŒŨƋśėŝƢƖɆƢŨɆŨƪƎɆ ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈșɆQɆǂŨƪŒĐɆŒļŏėɆƢŨɆƢķëŝŏɆëŒŒɆĉŨŝƢƎļĈƪƢŨƎƖɆįŨƎɆƢķėļƎɆ ĉŨŝƖƢƎƪĉƢļǁėɆļŝƋƪƢɆëŝĐɆįŨƎɆƢķėɆƖƪƋƋŨƎƢɆǂėɆƎėĉėļǁėĐɆëƢɆŨƪƎɆǥǣǥǤɆ EnȚɆǂļƢķɆǬǫșǩɼɆŨįɆǁŨƢėƖɆĉëƖƢɆļŝɆįëǁŨƪƎɆįŨƎɆŨƪƎɆŝŝƪëŒɆ¡ėƋŨƎƢɆŨŝɆ ¡ėśƪŝėƎëƢļŨŝșɆ{ŝİŨļŝİɆĐļëŒŨİƪėɆǂļƢķɆƖķëƎėķŨŒĐėƎƖɆŨŝɆėǇėĉƪƢļǁėɆ ƎėśƪŝėƎëƢļŨŝɆļƖɆİƎėëƢŒǈɆǁëŒƪėĐȚɆǂļƢķɆįėėĐĈëĉŏɆĐļƖĉƪƖƖėĐɆĈǈɆƢķėɆ ŨśśļƢƢėėɆëŝĐɆƪƖėĐɆƢŨɆļŝįŨƎśɆįƪƢƪƎėɆĐėĉļƖļŨŝɆśëŏļŝİșɆ¶ķļƖɆǂļŒŒɆĈėɆ ėƖƋėĉļëŒŒǈɆƎėŒėǁëŝƢɆǂķėŝɆǂėɆƎėǁļėǂɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈɆļŝɆ ǥǣǥǥȚɆëķėëĐɆŨįɆƢķėɆŝėǇƢɆǁŨƢėɆŨŝɆļƢɆëƢɆƢķėɆǥǣǥǦɆEnș ŨŝĉŒƪƖļŨŝ ,ŝƢëļŝɆƎėƖƋŨŝĐėĐɆƖƢƎŨŝİŒǈɆƢŨɆƢķėɆŨŝİŨļŝİɆĉķëŒŒėŝİļŝİɆėǇƢėƎŝëŒɆ ĉļƎĉƪśƖƢëŝĉėƖɆļŝɆǥǣǥǤɆëŝĐɆĉŨŝƢļŝƪėĐɆƢŨɆƋėƎįŨƎśɆƖƢƎŨŝİŒǈȚɆ ĐėŒļǁėƎļŝİɆƎŨĈƪƖƢɆëŝĐɆƖƪƖƢëļŝëĈŒėɆƋėƎįŨƎśëŝĉėșɆ¶ķėɆŨśśļƢƢėėȼƖɆ ĐėĉļƖļŨŝȯśëŏļŝİɆƋƎŨĉėƖƖɆƋƪƢƖɆŨƪƎɆƋƎļŝĉļƋŒėƖɆŨįɆįëļƎŝėƖƖɆëŝĐɆ ƢƎëŝƖƋëƎėŝĉǈɆëƢɆƢķėɆĉėŝƢƎėɆŨįɆŨƪƎɆĐļƖĉƪƖƖļŨŝƖȚɆǂķļŒƖƢɆƖƪƋƋŨƎƢļŝİɆƢķėɆ EƎŨƪƋȼƖɆëśĈļƢļŨƪƖɆİƎŨǂƢķɆƖƢƎëƢėİǈɆëŝĐɆƎėǙėĉƢļŝİɆĈėƖƢɆƋƎëĉƢļĉėɆļŝɆ ½bɆƎėśƪŝėƎëƢļŨŝɆëŝĐɆİŨǁėƎŝëŝĉėɆƖƢëŝĐëƎĐƖșɆQɆķŨƋėɆƢķëƢɆǈŨƪɆǘŝĐɆ ƢķėɆƎėƋŨƎƢɆĉŒėëƎɆëŝĐɆļŝįŨƎśëƢļǁėɆëŝĐɆŒŨŨŏɆįŨƎǂëƎĐɆƢŨɆǈŨƪƎɆƖƪƋƋŨƎƢɆ ëƢɆƢķėɆįŨƎƢķĉŨśļŝİɆEnș Mark Gregory Chair of the Remuneration Committee ǦɆnëƎĉķɆǥǣǥǥɆ 119 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Directors’ Remuneration Report continued bėǈɆëƎėëƖɆŨįɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆįŨĉƪƖɆļŝɆǥǣǥǤ ɆƖƪśśëƎǈɆŨįɆƢķėɆśëƢƢėƎƖɆĉŨŝƖļĐėƎėĐɆĐƪƎļŝİɆƢķėɆǈėëƎɆļƖɆƖėƢɆ ŨƪƢɆĈėŒŨǂș Our workforce Ɇ ¡ėśƪŝėƎëƢļŨŝɆĐļƖĉƪƖƖļŨŝɆǂļƢķɆ,śƋŒŨǈėėɆ Forum representatives Ɇ ¡ėĉėļǁļŝİɆƪƋĐëƢėƖɆŨŝɆëŒŒȯĉŨŒŒėëİƪėɆƎėśƪŝėƎëƢļŨŝɆ arrangements throughout the Group Ɇ ¡ėǁļėǂɆëŝĐɆëƋƋƎŨǁëŒɆŨįɆƢķėɆǥǣǥǣɆ½bɆEėŝĐėƎɆëǈɆ Gap Report Approval of the launch of the 2021 ShareSave Executive and senior management remuneration Ɇ ƋƋƎŨǁëŒɆŨįɆƢķėɆëƋƋŨļŝƢśėŝƢɆƢėƎśƖɆįŨƎɆėƢƢėɆpǈİëëƎĐȯ Andersen as CEO Ɇ $ėƢėƎśļŝëƢļŨŝɆŨįɆƢķėɆƋëǈȯŨƪƢƖɆįƎŨśɆƢķėɆǥǣǥǣɆëŝŝƪëŒɆĈŨŝƪƖɆ ƋŒëŝɆëŝĐɆƢķėɆǥǣǤǫɆd¶QɆëǂëƎĐ Approval of the 2021 annual bonus plan and 2021 d¶QɆëǂëƎĐɆëŝĐɆƢķėļƎɆëƖƖŨĉļëƢėĐɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆ and targets Ɇ ¡ėǁļėǂɆŨįɆƖëŒëƎļėƖɆëŝĐɆƎėśƪŝėƎëƢļŨŝɆƋëĉŏëİėƖɆįŨƎɆƖėŝļŨƎɆ executives and fees for the Chairman Ɇ ¡ėǁļėǂɆŨįɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆįŨƎɆƢķėɆǥǣǥǥɆëŝŝƪëŒɆĈŨŝƪƖɆ ƋŒëŝɆëŝĐɆǥǣǥǥɆd¶Q Committee governance Approval of the 2020 Directors’ Remuneration Report Ɇ ¡ėĉėļǁļŝİɆƪƋĐëƢėƖɆŨŝɆėǇƢėƎŝëŒɆśëƎŏėƢɆĐėǁėŒŨƋśėŝƢƖɆļŝɆ remuneration and governance, including international compensation practices Evaluation of the Remuneration Committee, its advisers and the Committee’s Terms of Reference Ɇ ¡ėǁļėǂɆŨįɆƖķëƎėķŨŒĐėƎɆįėėĐĈëĉŏɆƎėĉėļǁėĐɆļŝɆƎėŒëƢļŨŝɆƢŨɆ $ļƎėĉƢŨƎƖȼɆƎėśƪŝėƎëƢļŨŝɆįŨŒŒŨǂļŝİɆƢķėɆǥǣǥǤɆEn ¡ŨŒėɆŨįɆƢķėɆŨśśļƢƢėėɆ ¶ķėɆŨśśļƢƢėėɆëƖƖļƖƢƖɆƢķėɆŨëƎĐɆļŝɆįƪŒǘŒŒļŝİɆļƢƖɆƎėƖƋŨŝƖļĈļŒļƢǈɆ ƢŨɆƖķëƎėķŨŒĐėƎƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈɆ and practices for Executive Directors and senior executive śëŝëİėśėŝƢɆƎėǂëƎĐƖɆįëļƎŒǈɆëŝĐɆƎėƖƋŨŝƖļĈŒǈɆƢŨɆƖƪƋƋŨƎƢɆƢķėɆ ƖƢƎëƢėİǈɆëŝĐɆƋƎŨśŨƢėɆƢķėɆŒŨŝİȯƢėƎśɆƖƪĉĉėƖƖɆŨįɆƢķėɆEƎŨƪƋșɆ QƢɆįƪƎƢķėƎɆŨǁėƎƖėėƖɆƢķėɆEƎŨƪƋȼƖɆŨǁėƎëŒŒɆƎėśƪŝėƎëƢļŨŝɆƖƢƎëƢėİǈɆ ëŝĐɆėŝƖƪƎėƖɆļƢɆļƖɆëŒļİŝėĐɆƢŨɆƢķėɆƋƪƎƋŨƖėɆëŝĐɆǁëŒƪėƖɆëŝĐɆļƖɆĉŒėëƎŒǈɆ ŒļŝŏėĐɆƢŨɆƢķėɆƖƪĉĉėƖƖįƪŒɆĐėŒļǁėƎǈɆŨįɆ,ŝƢëļŝȼƖɆŒŨŝİȯƢėƎśɆƖƢƎëƢėİǈș ŨśśļƢƢėėɆśėśĈėƎƖķļƋɆëŝĐɆëƢƢėŝĐëŝĉė nėśĈėƎ pƪśĈėƎɆŨįɆ meetings attended pƪśĈėƎɆŨįɆ meetings ėŒļİļĈŒėɆƢŨ attend nëƎŏɆEƎėİŨƎǈɆȩķëļƎȪ 1 ǪǪ Stella David 2 ǪǪ ÔļĉŏǈɆëƎśëŝ 2 ǪǪ ÔļƎİļŝļëɆnĉ$ŨǂėŒŒ 88 ©ƢėƋķėŝɆnŨƎëŝë 3 11 ǤșɆŨļŝėĐɆƢķėɆŨśśļƢƢėėɆŨŝɆǤǪɆnëƎĉķɆǥǣǥǤș ǥșɆ ŨļŝėĐɆƢķėɆŨśśļƢƢėėɆŨŝɆǧɆnëƎĉķɆǥǣǥǤș ǦșɆ ¡ėƖļİŝėĐɆįƎŨśɆƢķėɆŨśśļƢƢėėɆŨŝɆǧɆnëƎĉķɆǥǣǥǤș $ƪƎļŝİɆƢķėɆǈėëƎȚɆƢķėƎėɆǂėƎėɆƖļǇɆƖĉķėĐƪŒėĐɆŨśśļƢƢėėɆśėėƢļŝİƖɆëŝĐɆ ƢǂŨɆëĐȯķŨĉɆśėėƢļŝİƖșɆ¶ķėƎėɆǂļŒŒɆĈėɆƖėǁėŝɆƖĉķėĐƪŒėĐɆśėėƢļŝİƖɆļŝɆ ǥǣǥǥȚɆǂļƢķɆëĐȯķŨĉɆśėėƢļŝİƖɆëƖɆƎėƍƪļƎėĐș pŨŝėɆŨįɆƢķėɆŨśśļƢƢėėɆśėśĈėƎƖɆŨƎɆëƢƢėŝĐėėƖɆļƖɆļŝǁŨŒǁėĐɆļŝɆëŝǈɆ ŨśśļƢƢėėɆĐėĉļƖļŨŝƖɆįƎŨśɆǂķļĉķɆƢķėǈɆśëǈɆǘŝëŝĉļëŒŒǈɆĈėŝėǘƢɆ ƋėƎƖŨŝëŒŒǈɆȩŨƢķėƎɆƢķëŝɆëƖɆƖķëƎėķŨŒĐėƎƖȪɆļŝɆƢķėɆĐėĉļƖļŨŝƖɆśëĐėɆ ĈǈɆƢķėɆŨśśļƢƢėėșɆ¶ķėɆķëļƎśëŝȚɆķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎȚɆķļėįɆ DļŝëŝĉļëŒɆ{įǘĉėƎɆʁɆ$ėƋƪƢǈɆ,{ȚɆķļėįɆėŨƋŒėɆ{įǘĉėƎɆëŝĐɆƢķėɆ $ļƎėĉƢŨƎɆŨįɆ¡ėǂëƎĐɆśëǈɆëƢƢėŝĐɆśėėƢļŝİƖɆëƢɆƢķėɆļŝǁļƢëƢļŨŝɆŨįɆƢķėɆ ŨśśļƢƢėėɆĈƪƢɆëƎėɆŝŨƢɆƋƎėƖėŝƢɆǂķėŝɆƢķėļƎɆŨǂŝɆƎėśƪŝėƎëƢļŨŝɆļƖɆ ĈėļŝİɆĐļƖĉƪƖƖėĐșɆ¶ķėɆŨśƋëŝǈɆ©ėĉƎėƢëƎǈɆëĉƢƖɆëƖɆƢķėɆƖėĉƎėƢëƎǈɆƢŨɆ ƢķėɆŨśśļƢƢėėș bėǈɆƎėƖƋŨŝƖļĈļŒļƢļėƖ Ɇ ¡ėĉŨśśėŝĐļŝİɆƢŨɆƢķėɆŨëƎĐɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈɆįŨƎɆ ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƖėŝļŨƎɆśëŝëİėśėŝƢșɆ Ɇ ©ėƢƢļŝİɆƢķėɆƎėśƪŝėƎëƢļŨŝɆƋëĉŏëİėƖɆįŨƎɆėëĉķɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆ ëŝĐɆŨƢķėƎɆśėśĈėƎƖɆŨįɆƢķėɆ,ǇėĉƪƢļǁėɆŨśśļƢƢėėș Ɇ ©ėƢƢļŝİɆƢķėɆƎėśƪŝėƎëƢļŨŝɆƋëĉŏëİėɆįŨƎɆƢķėɆķëļƎśëŝɆŨįɆƢķėɆŨëƎĐș Ɇ {ǁėƎƖėėļŝİɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈɆįŨƎɆëŒŒɆĉŨŒŒėëİƪėƖș The Committee’s terms of reference can be found on the ŨśƋëŝǈȼƖɆǂėĈƖļƢėɆëƢɆ www.entaingroup.com. ¶ķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėė Entain plc | Annual Report 2021 120 Governance Remuneration Committee evaluation ¶ķėɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆǂëƖɆëƖƖėƖƖėĐɆëƖɆëɆƋëƎƢɆŨįɆƢķėɆŨëƎĐɆ¡ėǁļėǂȚɆǂķļĉķɆƢķļƖɆǈėëƎɆǂëƖɆėǇƢėƎŝëŒŒǈɆįëĉļŒļƢëƢėĐɆ ĈǈɆdļŝƢƖƢŨĉŏșɆŒŒɆŨśśļƢƢėėɆśėśĈėƎƖɆĉŨśƋŒėƢėĐɆëɆƢëļŒŨƎėĐɆƖƪƎǁėǈȚɆƋƎļŨƎɆƢŨɆĈėļŝİɆļŝƢėƎǁļėǂėĐɆĈǈɆdļŝƢƖƢŨĉŏɆƎėƋƎėƖėŝƢëƢļǁėƖȚɆƢŨɆėǇƋëŝĐɆŨŝɆ ƢķėļƎɆƖƪƎǁėǈɆƎėƖƋŨŝƖėƖɆëŝĐɆƢŨɆƎëļƖėɆëŝǈɆįƪƎƢķėƎɆļƖƖƪėƖɆƢķėǈɆǂļƖķėĐɆƢŨɆĐļƖĉƪƖƖș ƖɆǂėŒŒɆëƖɆëĐĐƎėƖƖļŝİɆĉŨƎėɆëƖƋėĉƢƖɆŨįɆŨśśļƢƢėėɆƋėƎįŨƎśëŝĉėȚɆƢķėɆėǇėƎĉļƖėɆķëĐɆëɆƋëƎƢļĉƪŒëƎɆįŨĉƪƖɆŨŝɆƢķėɆįŨŒŒŨǂļŝİɆëƎėëƖț Ɇ ¶ķėɆëŒļİŝśėŝƢɆŨįɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈɆǂļƢķɆƢķėɆėǇƋėĉƢëƢļŨŝƖɆŨįɆƖķëƎėķŨŒĐėƎƖȚɆëŝĐɆǂļƢķɆ,ŝƢëļŝȼƖɆƖƢƎëƢėİļĉɆŨĈŌėĉƢļǁėƖȚɆļŝĉŒƪĐļŝİɆƢķėɆɆ Ɇ ǘŝëŝĉļëŒɆëŝĐɆŝŨŝȯǘŝëŝĉļëŒɆśėëƖƪƎėƖɆƪƖėĐɆƢŨɆĐėƢėƎśļŝėɆǁëƎļëĈŒėɆƋëǈș Ɇ ¶ķėɆƍƪëŒļƢǈɆŨįɆĐėĈëƢėƖɆŨŝɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈȚɆļŝĉŒƪĐļŝİɆƢķėɆėŝİëİėśėŝƢɆǂļƢķɆśëŝëİėśėŝƢɆŨŝɆƢķļƖɆƢŨƋļĉș Ɇ ¶ķėɆŒėǁėŒɆŨįɆįŨĉƪƖɆŨŝɆǂļĐėƎɆǂŨƎŏįŨƎĉėɆƋëǈɆƋŨŒļĉǈș DŨŒŒŨǂļŝİɆƢķėɆļŝƢėƎǁļėǂƖɆļŝɆDėĈƎƪëƎǈɆȦɆnëƎĉķɆǥǣǥǥȚɆdļŝƢƖƢŨĉŏɆǂļŒŒɆƋƎėƋëƎėɆëɆƎėƋŨƎƢɆŨŝɆƢķėɆǘŝĐļŝİƖșɆQƢɆļƖɆėŝǁļƖëİėĐɆƢķëƢɆƢķėɆŨƪƢĉŨśėƖɆǂļŒŒɆĈėɆ ĐļƖĉƪƖƖėĐɆëƢɆëɆśėėƢļŝİɆŨįɆƢķėɆŨëƎĐɆļŝɆƋƎļŒɆǥǣǥǥș Advice to the Committee ĐǁļƖėƎƖɆëƎėɆëƋƋŨļŝƢėĐɆļŝĐėƋėŝĐėŝƢŒǈɆĈǈɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėȚɆǂķļĉķɆƎėǁļėǂƖɆļƢƖɆƖėŒėĉƢļŨŝɆƋėƎļŨĐļĉëŒŒǈɆëŝĐɆļƖɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆ ëĐǁļĉėɆļƢɆƎėĉėļǁėƖɆļƖɆļŝĐėƋėŝĐėŝƢȚɆŨĈŌėĉƢļǁėɆëŝĐɆįƎėėɆįƎŨśɆĉŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢșɆ¶ķėɆƢŨƢëŒɆįėėƖɆƋëļĐɆƢŨɆƢķėɆŨśśļƢƢėėȼƖɆëĐǁļƖėƎȚɆ$ėŒŨļƢƢėȚɆļŝɆ ƎėƖƋėĉƢɆŨįɆǥǣǥǤɆǂėƎėɆɞǤǧǤȚǨǣǣɆȩǥǣǥǣțɆɞǬǬȚǤǥǨȪșɆ¶ķėƖėɆǂėƎėɆĉķëƎİėĐɆŨŝɆëɆƢļśėɆëŝĐɆśëƢėƎļëŒƖɆĈëƖļƖșɆ$ėŒŨļƢƢėȼƖɆëĐǁļĉėɆļŝĉŒƪĐėĐɆƋƎŨǁļƖļŨŝɆ ŨįɆśëƎŏėƢɆĐëƢëȚɆëĐǁļĉėɆŨŝɆƢķėɆƎėśƪŝėƎëƢļŨŝɆëƖƋėĉƢƖɆŨįɆŨëƎĐɆëƋƋŨļŝƢśėŝƢƖɆëŝĐɆİėŝėƎëŒɆİƪļĐëŝĉėɆŨŝɆśëƎŏėƢɆëŝĐɆĈėƖƢɆƋƎëĉƢļĉėș $ėŒŨļƢƢėɆddɆëŒƖŨɆƋƎŨǁļĐėĐɆëɆƎëŝİėɆŨįɆƢëǇɆëŝĐɆëĐǁļƖŨƎǈɆƖėƎǁļĉėƖɆƢŨɆ,ŝƢëļŝɆĐƪƎļŝİɆƢķėɆǈėëƎȚɆƖƪƋƋŨƎƢɆļŝɆĉėƎƢëļŝɆƢėĉķŝŨŒŨİǈɆëƎėëƖɆëŝĐɆƖƪƋƋŨƎƢɆ įŨƎɆƢķėɆEƎŨƪƋȼƖɆļŝƢėƎŝëŒɆëƪĐļƢɆįƪŝĉƢļŨŝș $ėŒŨļƢƢėɆļƖɆëɆįŨƪŝĐļŝİɆśėśĈėƎɆŨįɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŝƖƪŒƢëŝƢƖɆEƎŨƪƋɆëŝĐɆëƖɆƖƪĉķȚɆǁŨŒƪŝƢëƎļŒǈɆŨƋėƎëƢėƖɆƪŝĐėƎɆƢķėɆĉŨĐėɆŨįɆĉŨŝĐƪĉƢɆļŝɆ ƎėŒëƢļŨŝɆƢŨɆėǇėĉƪƢļǁėɆƎėśƪŝėƎëƢļŨŝɆĉŨŝƖƪŒƢļŝİɆļŝɆƢķėɆ½bșɆDƪƎƢķėƎɆĐėƢëļŒƖɆĉëŝɆĈėɆįŨƪŝĐɆëƢɆǂǂǂșƎėśƪŝėƎëƢļŨŝĉŨŝƖƪŒƢëŝƢƖİƎŨƪƋșĉŨśș nëŝëİėśėŝƢȼƖɆëĐǁļĉėɆƢŨɆƢķėɆŨśśļƢƢėėɆǂëƖɆëŒƖŨɆƖƪƋƋŨƎƢėĐɆĈǈɆƢķėɆƋƎŨǁļƖļŨŝɆŨįɆśëƎŏėƢɆĐëƢëɆįƎŨśɆÕļŒŒļƖɆ¶ŨǂėƎƖɆÕëƢƖŨŝɆëŝĐɆŒėİëŒɆëĐǁļĉėɆ įƎŨśɆĈŨƢķɆĐĐŒėƖķëǂɆEŨĐĐëƎĐɆëŝĐɆDƎėƖķǘėŒĐƖș Shareholder voting and consideration of shareholder views ¶ķėɆǥǣǥǣɆŝŝƪëŒɆ©ƢëƢėśėŝƢɆįƎŨśɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆķëļƎɆëŝĐɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆŨŝɆ¡ėśƪŝėƎëƢļŨŝɆǂėƎėɆƖƪĈŌėĉƢɆƢŨɆëŝɆ ëĐǁļƖŨƎǈɆǁŨƢėɆëƢɆƢķėɆEnɆŨŝɆǥǨɆƪŝėɆǥǣǥǤșɆ{ƪƎɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈɆǂëƖɆŒëƖƢɆëƋƋƎŨǁėĐɆĈǈɆƖķëƎėķŨŒĐėƎƖɆŨŝɆǥǧɆƪŝėɆǥǣǥǣș Resolution Date Votes for % of Votes for Votes against % of Votes against Votes withheld Annual Report on Remuneration ǥǨɆƪŝėɆǥǣǥǤ 422,362,208 Ǭǫșǩɼ ǩȚǣǣǫȚǪǩǬ Ǥșǧɼ 40,400 ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈ ǥǧɆƪŝėɆǥǣǥǣ ǧǨǫȚǪǫǬȚǩǤǨ ǬǨșǣɼ 24,425,820 Ǩșǣɼ ǨǬǩȚǦǦǥ 121 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Directors’ Remuneration Report continued Executive remuneration at Entain ¶ķėɆƎėśƪŝėƎëƢļŨŝɆįƎëśėǂŨƎŏɆįŨƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëƢɆ,ŝƢëļŝɆļƖɆļŝƢėŝĐėĐɆƢŨɆļŝĉėŝƢļǁļƖėɆƢķėśɆƢŨɆėǇėĉƪƢėɆƢķėɆŨśƋëŝǈȼƖɆƖƢƎëƢėİǈɆëŝĐɆ ĉƎėëƢėɆŒŨŝİȯƢėƎśɆƖƪƖƢëļŝëĈŒėɆǁëŒƪėɆįŨƎɆƖķëƎėķŨŒĐėƎƖșɆQƢɆļƖɆƖļśƋŒėȚɆįŨĉƪƖėĐɆëŝĐɆëŒļİŝėĐɆǂļƢķɆŏėǈɆǘŝëŝĉļëŒɆëŝĐɆƖƢƎëƢėİļĉɆĈƪƖļŝėƖƖɆİŨëŒƖș Year 1 Year 2 Year 3 Year 4 Year 5 Total pay Fixed Pay ëƖėɆƖëŒëƎǈ ėŝėǘƢƖ Pension Annual Bonus {ŝėȯǈėëƎɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐ bėǈɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖ nëŒƪƖɆƋƎŨǁļƖļŨŝƖɆëƋƋŒǈ ¶ķƎėėȯǈėëƎɆĐėįėƎƎëŒɇƋėƎļŨĐ No further performance conditions ŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒǈ LTIP ¶ķƎėėȯǈėëƎɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐ bėǈɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖ nëŒƪƖɆƋƎŨǁļƖļŨŝƖɆëƋƋŒǈ ¶ǂŨȯǈėëƎɆķŨŒĐļŝİɆƋėƎļŨĐ No further performance conditions ŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒǈ Shareholding Requirement ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆśļŝļśƪśɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢɆëƋƋŒļėƖɆĈŨƢķɆļŝɆëŝĐɆįŨŒŒŨǂļŝİɆĉėƖƖëƢļŨŝɆŨįɆėśƋŒŨǈśėŝƢ 2021 – Executive Directors’ remuneration ¶ķėɆįƪŒŒɆėǇƋŒëŝëƢŨƎǈɆŝŨƢėƖɆįŨƎɆėëĉķɆėŒėśėŝƢɆŨįɆƎėśƪŝėƎëƢļŨŝɆëƎėɆĐėƢëļŒėĐɆŨŝɆƋëİėɆǤǦǧɆļŝɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆŨŝɆ¡ėśƪŝėƎëƢļŨŝș £000s Base Salary ėŝėǘƢƖ Pension Annual Bonus LTIP TotalėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝɆȩ,{ɆëƋƋŨļŝƢėĐɆŨŝɆǥǤɆëŝƪëƎǈɆǥǣǥǤȪ Ǫǣǫ 25 28 ǤȚǪǩǬ ȱ 2,530 ¡ŨĈɆÕŨŨĐɆȩD{ɆʁɆ$ėƋƪƢǈɆ,{Ȫ 520 15 23 ǤȚǣǦǬ 3,844 5,441 ¡ŨĈėƎƢɆLŨƖŏļŝɆȩķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȪ 400 5 ȱ 800 ǦȚǨǥǬ ǧȚǪǦǧ ©ķëǈɆ©ėİėǁɆȩ,{ɆƪŝƢļŒɆǥǤɆëŝƪëƎǈɆǥǣǥǤȪǦǬȱȱȱȱǦǬ 2021 Incentive outcomes ¶ķėɆįƪŒŒɆėǇƋŒëŝëƢŨƎǈɆŝŨƢėƖɆįŨƎɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆëŝĐɆd¶QɆŨƪƢĉŨśėƖɆëƎėɆĐėƢëļŒėĐɆŨŝɆƋëİėƖɆǤǦǨɆëŝĐɆǤǦǩɆļŝɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆ ŨŝɆ¡ėśƪŝėƎëƢļŨŝș 2021 Annual Bonus Underlying Group Operating ƎŨǘƢɆȩǩǣɼȪ 100% of maximum Growth in Online pE¡ɆȩǥǨɼȪ ǂ 100% of maximum Safer Betting and Gaming ȩǤǨɼȪ 100% of maximum 2019-21 LTIP ƪśƪŒëƢļǁėɆ EPS ȩǨǣɼȪ 100% of maximum Relative TSR ȩǨǣɼȪ ǂ 100% of maximum Outcome 227.8p Threshold 184p Stretch 214p Outcome 13% Threshold ǤɼɆİƎŨǂƢķ Target ǦɼɆİƎŨǂƢķ Stretch ǨɼɆİƎŨǂƢķ Outcome 161% Threshold nėĐļëŝțɆǧǬɼ Stretch ½ƋƋėƎɆƍƪëƎƢļŒėțɆǫǫɼ ESG Committee assessment of performance Outcome £587.5m Threshold ɞǨǦǪșǣś Target ɞǨǨǦșǩś Stretch ɞǨǫǤșǦś Entain plc | Annual Report 2021 122 Governance Implementation of the Remuneration Policy for Executive Directors in 2022 ¶ķėɆƢëĈŒėƖɆĈėŒŨǂɆļŒŒƪƖƢƎëƢėɆƢķėɆĈëŒëŝĉėɆŨįɆƋëǈɆëŝĐɆƢļśėɆƋėƎļŨĐɆŨįɆėëĉķɆėŒėśėŝƢɆŨįɆƢķėɆŨŒļĉǈɆįŨƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƖƪśśëƎļƖėƖɆķŨǂɆ ƢķėɆŨśśļƢƢėėɆëƋƋŒļėĐɆƢķėɆŨŒļĉǈɆļŝɆǥǣǥǤȚɆƢŨİėƢķėƎɆǂļƢķɆĐėƢëļŒƖɆŨįɆķŨǂɆƢķėɆŨśśļƢƢėėɆļŝƢėŝĐɆƢŨɆļśƋŒėśėŝƢɆƢķėɆŨŒļĉǈɆļŝɆǥǣǥǥș Element Operation How we implemented the Policy in 2021 How we plan to implement the Policy in 2022 Salary To provide competitive ǘǇėĐɆƎėśƪŝėƎëƢļŨŝɆƢķëƢɆ will attract and retain appropriate talent. ¡ėǙėĉƢƖɆëŝɆļŝĐļǁļĐƪëŒȼƖɆ ƎėƖƋŨŝƖļĈļŒļƢļėƖȚɆėǇƋėƎļėŝĉėɆ and role Salaries for Executive $ļƎėĉƢŨƎƖɆëƎėɆƎėǁļėǂėĐɆ ëŝŝƪëŒŒǈɆĈǈɆƢķėɆŨśśļƢƢėėɆ ëŝĐɆëŝǈɆļŝĉƎėëƖėƖɆŝŨƎśëŒŒǈɆ ƢëŏėɆėįįėĉƢɆįƎŨśɆǤɆëŝƪëƎǈșɆ To the extent that increases ëƎėɆëǂëƎĐėĐȚɆƢķėƖėɆǂļŒŒɆ ŨƎĐļŝëƎļŒǈɆĈėɆļŝȯŒļŝėɆǂļƢķɆ ƢķėɆƢǈƋļĉëŒɆŒėǁėŒɆŨįɆļŝĉƎėëƖėɆ ëĉƎŨƖƖɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉėɆ Executive Directors’ salaries įƎŨśɆǤɆëŝƪëƎǈɆǥǣǥǤț ȱɆ ,{ɆȱɆɞǪǨǣȚǣǣǣɆȩɆpǈİëëƎĐȯ Andersen from appointment ŨŝɆǥǤɆëŝƪëƎǈȪ ȱɆ D{ɆʁɆ$ėƋƪƢǈɆ,{ɆȱɆ ɞǧǦǣȚǣǣǣɆƪŝƢļŒɆǥǣɆëŝƪëƎǈȜɆ increased to £525,000 from ǥǤɆëŝƪëƎǈɆǂķėŝɆëƋƋŨļŝƢėĐɆ $ėƋƪƢǈɆ,{ ȱɆ E{ɆȱɆɞǧǣǣȚǣǣǣ ȱɆ ,{ɆȱɆɞǩǪǨȚǣǣǣɆȩ©Ɇ©ėİėǁɆ ƪŝƢļŒɆǥǤɆëŝƪëƎǈȪ Ɇ ©ëŒëƎǈɆļŝĉƎėëƖėƖɆŨįɆǬșǦɼɆįŨƎɆ ƢķėɆ,{ɆëŝĐɆǥșǨɼɆįŨƎɆĈŨƢķɆƢķėɆ D{ɆʁɆ$ėƋƪƢǈɆ,{ɆëŝĐɆE{ Ɇ DƎŨśɆǤɆëŝƪëƎǈɆǥǣǥǥȚɆ Executive Director ƖëŒëƎļėƖɆǂļŒŒɆĈėț ȱɆ ,{ɆȱɆɞǫǥǣȚǣǣǣ ȱɆ D{ɆʁɆ$ėƋƪƢǈɆ,{ɆȱɆ £538,125 ȱɆ E{ɆȱɆɞǧǤǣȚǣǣǣ ėŝėǘƢƖ To provide competitive ĈėŝėǘƢƖɆëŝĐɆƢŨɆëƢƢƎëĉƢɆ ëŝĐɆƎėƢëļŝɆķļİķɆĉëŒļĈƎėɆ employees Ɇ ¶ķėɆǁëŒƪėɆŨįɆĈėŝėǘƢƖɆļƖɆ based on the cost to the EƎŨƪƋɆëŝĐɆƢķėƎėɆļƖɆŝŨɆƋƎėȯ determined maximum limit Executive Directors receive ƖƢëŝĐëƎĐɆĈėŝėǘƢƖɆƖƪĉķɆëƖɆ medical and life insurance ëŝĐɆĉëƎɆëŒŒŨǂëŝĉė Ɇ pŨƎśëŒɆĉŨśƋëŝǈɆ ĈėŝėǘƢɆƋƎŨǁļƖļŨŝ Ɇ pŨƎśëŒɆĉŨśƋëŝǈɆ ĈėŝėǘƢɆƋƎŨǁļƖļŨŝ Pension To provide an opportunity įŨƎɆƎėƢļƎėśėŝƢɆƋŒëŝŝļŝİ Executive Directors have the ŨƋƋŨƎƢƪŝļƢǈɆƢŨɆƋëƎƢļĉļƋëƢėɆļŝɆ ëɆĉŨśƋëŝǈɆƋƎŨǁļĐėĐɆƋėŝƖļŨŝɆ ǂķļĉķɆļƖɆļŝɆŒļŝėɆǂļƢķɆƢķëƢɆ ëǁëļŒëĈŒėɆƢŨɆŨƢķėƎɆėśƋŒŨǈėėƖ Ɇ ,{ɆȱɆǩɼɆŨįɆƖëŒëƎǈɆĉëƖķɆ ëŒŒŨǂëŝĉėɆȩɆpǈİëëƎĐȯ ŝĐėƎƖėŝȪ Ɇ D{ɆʁɆ$ėƋƪƢǈɆ,{ɆȱɆǧșǨɼɆŨįɆ ƖëŒëƎǈɆĉŨśƋëŝǈɆĉŨŝƢƎļĈƪƢļŨŝ Ɇ E{ɆȱɆ{ƋƢėĐɆŨƪƢɆŨįɆƢķėɆƋŒëŝ Ɇ ,{ɆȱɆ{ƋƢėĐɆŨƪƢɆŨįɆƢķėɆƋŒëŝɆ ȩ©Ɇ©ėİėǁȪ No change Annual Bonus ¶ŨɆļŝĉėŝƢļǁļƖėɆƢķėɆ ëĉķļėǁėśėŝƢɆŨįɆŏėǈɆ ǘŝëŝĉļëŒɆëŝĐɆŝŨŝȯǘŝëŝĉļëŒɆ ƋėƎįŨƎśëŝĉėɆƢëƎİėƢƖɆļŝɆŒļŝėɆ ǂļƢķɆĉŨƎƋŨƎëƢėɆƖƢƎëƢėİǈɆ ŨǁėƎɆëɆŨŝėȯǈėëƎɆƋėƎļŨĐ Ɇ nëǇļśƪśɆëŝŝƪëŒɆļŝĉėŝƢļǁėɆ ŨƋƋŨƎƢƪŝļƢǈɆŨįɆǥǨǣɼɆŨįɆ ƖëŒëƎǈɆįŨƎɆƢķėɆ,{ɆëŝĐɆǥǣǣɼɆ ŨįɆƖëŒëƎǈɆįŨƎɆŨƢķėƎɆ,ǇėĉƪƢļǁėɆ $ļƎėĉƢŨƎƖșɆpŨɆƋëǈśėŝƢɆ ǂļŒŒɆĈėɆśëĐėɆįŨƎɆĈėŒŨǂɆ ƢķƎėƖķŨŒĐɆƋėƎįŨƎśëŝĉėșɆ 50% of the maximum ŨƋƋŨƎƢƪŝļƢǈɆļƖɆƋëǈëĈŒėɆįŨƎɆ target performance Ɇ ǨǣɼɆŨįɆëŝǈɆĈŨŝƪƖɆëǂëƎĐɆǂļŒŒɆ be deferred into shares for ƢķƎėėɆǈėëƎƖ Dividend equivalents are ƋëǈëĈŒėɆŨŝɆĐėįėƎƎėĐɆƖķëƎėƖ Ɇ nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆ ƋƎŨǁļƖļŨŝƖɆëƋƋŒǈ Ɇ nëǇļśƪśɆŨƋƋŨƎƢƪŝļƢļėƖț ȱɆ ,{ɆȱɆǥǨǣɼ ȱɆ {ƢķėƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆȱɆ 200% Ɇ ėƎįŨƎśëŝĉėɆśėëƖƪƎėƖɆȩëƖɆëɆɼɆ ŨįɆśëǇļśƪśȪț ȱɆ ½ŝĐėƎŒǈļŝİɆEƎŨƪƋɆ{ƋėƎëƢļŝİɆ ƎŨǘƢɆȩƋƎėɆ½©ɆŌŨļŝƢɆǁėŝƢƪƎėȪɆ ȩǩǣɼȪ ȱɆ EƎŨǂƢķɆļŝɆ{ŝŒļŝėɆpE¡ɆȩǥǨɼȪ ȱɆ ©ëįėƎɆėƢƢļŝİɆëŝĐɆEëśļŝİɆ ȩǤǨɼȪ Ɇ ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëǂëƎĐėĐɆ bonuses of 100% of their śëǇļśƪśɆŨƋƋŨƎƢƪŝļƢǈ No change to the maximum ĈŨŝƪƖɆŨƋƋŨƎƢƪŝļƢǈɆŨƎɆƋëǈśėŝƢɆ mechanisms of bonuses Ɇ ėƎįŨƎśëŝĉėɆśėëƖƪƎėƖɆȩëƖɆëɆ ɼɆŨįɆśëǇļśƪśȪț ȱɆ ½ŝĐėƎŒǈļŝİɆEƎŨƪƋɆ{ƋėƎëƢļŝİɆ ƎŨǘƢɆȩƋƎėɆ½©ɆŌŨļŝƢɆǁėŝƢƪƎėȪɆ ȩǩǣɼȪ ȱɆ EƎŨǂƢķɆļŝɆ{ŝŒļŝėɆpE¡ɆȩǥǣɼȪ ȱɆ ©ëįėƎɆėƢƢļŝİɆëŝĐɆEëśļŝİɆ ȩǤǨɼȪ ȱɆ ƪƖƢŨśėƎɆȩǨɼȪ Targets are considered ĉŨśśėƎĉļëŒŒǈɆƖėŝƖļƢļǁėȚɆ ĈƪƢɆǂļŒŒɆĈėɆĐļƖĉŒŨƖėĐɆ in the 2022 Directors’ Remuneration Report Y1 DļǇėĐɆƋëǈ Y2 Y3 Y4 Y5 Y1 DļǇėĐɆƋëǈ Y2 Y3 Y4 Y5 Y1 DļǇėĐɆƋëǈ Y2 Y3 Y4 Y5 Y1 ǨǣɼɆĉëƖķ Y2 Y3 Y4 Y5 Y1 ǨǣɼɆƖķëƎėƖ Y2 Y3 Y4 Y5 123 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Directors’ Remuneration Report continued Element Operation How we implemented the Policy in 2021 How we plan to implement the Policy in 2022 LTIP ¶ŨɆļŝĉėŝƢļǁļƖėɆƢķėɆėǇėĉƪƢļŨŝɆ ŨįɆƢķėɆŒŨŝİȯƢėƎśɆĈƪƖļŝėƖƖɆ ƋŒëŝɆëŝĐɆƢķėɆĐėŒļǁėƎǈɆŨįɆ ŒŨŝİȯƢėƎśɆƖƪƖƢëļŝëĈŒėɆǁëŒƪėɆ įŨƎɆƖķëƎėķŨŒĐėƎƖ Ɇ nëǇļśƪśɆëǂëƎĐɆŨįɆǦǣǣɼɆ ŨįɆĈëƖėɆƖëŒëƎǈɆįŨƎɆƢķėɆ,{Ɇ ëŝĐɆǥǨǣɼɆŨįɆĈëƖėɆƖëŒëƎǈɆįŨƎɆ other Executive Directors Threshold performance results in 25% of the ëǂëƎĐɆǁėƖƢļŝİ Ɇ ǂëƎĐƖɆëƎėɆİƎëŝƢėĐɆëŝŝƪëŒŒǈɆ ëŝĐɆëƎėɆƖƪĈŌėĉƢɆƢŨɆëɆƢķƎėėȯ ǈėëƎɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐ Ɇ ɆƢǂŨȯǈėëƎɆķŨŒĐļŝİɆƋėƎļŨĐɆ ǂļŒŒɆëƋƋŒǈɆįŨŒŒŨǂļŝİɆƢķėɆ vesting period Dividend equivalents are ƋëǈëĈŒėɆŨŝɆǁėƖƢėĐɆëǂëƎĐƖ Ɇ nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆ ƋƎŨǁļƖļŨŝƖɆëƋƋŒǈ Ɇ EƎëŝƢɆŒėǁėŒƖɆįŨƎɆǥǣǥǤɆëǂëƎĐƖț ȱɆ ,{ɆȱɆǦǣǣɼ ȱɆ {ƢķėƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆȱɆ 250% The performance conditions ǂėƎėɆĈëƖėĐɆŨŝț ȱɆ ƪśƪŒëƢļǁėɆ,©ɆȩǤȦǦƎĐȪ ȱɆ ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆƢķėɆD¶©,Ɇ ǤǣǣɆȩǤȦǦƎĐȪ ȱɆ ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆëɆĈėƖƋŨŏėɆ group of sectoral peers ȩǤȦǦƎĐȪɆ The performance period for ƢķėɆǥǣǤǬɆd¶QɆėŝĐėĐɆļŝɆƢķėɆ ǈėëƎɆëŝĐɆǤǣǣɼɆŨįɆƢķļƖɆëǂëƎĐɆ ǂļŒŒɆǁėƖƢșɆ©ėėɆƋëİėɆǤǦǩɆįŨƎɆ further information No change to maximum d¶QɆŨƋƋŨƎƢƪŝļƢļėƖ Ɇ ¶ķėɆƋėƎįŨƎśëŝĉėɆĉŨŝĐļƢļŨŝƖɆǂļŒŒɆ ĈėɆĈëƖėĐɆŨŝț ȱɆ ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆƢķėɆD¶©,Ɇ ǤǣǣɆȩǨǣɼȪ ȱɆ ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆëɆĈėƖƋŨŏėɆ İƎŨƪƋɆŨįɆƖėĉƢŨƎëŒɆƋėėƎƖɆȩǨǣɼȪ Ɇ ©ėėɆƋëİėɆǤǥǪɆįŨƎɆĐėƢëļŒƖɆŨŝɆ d¶QɆëǂëƎĐƖɆƢŨɆĈėɆİƎëŝƢėĐɆ in 2022 Shareholding Guidelines ¶ŨɆėŝƖƪƎėɆƢķëƢɆ,ǇėĉƪƢļǁėɆ $ļƎėĉƢŨƎƖȼɆļŝƢėƎėƖƢƖɆëƎėɆ ëŒļİŝėĐɆǂļƢķɆƢķŨƖėɆŨįɆ ƖķëƎėķŨŒĐėƎƖɆŨǁėƎɆëɆŒŨŝİėƎɆ ƢļśėɆķŨƎļǒŨŝ The shareholding guideline ļƖɆėƍƪëŒɆƢŨɆǧǣǣɼɆŨįɆƖëŒëƎǈɆįŨƎɆ ƢķėɆ,{ɆëŝĐɆǥǣǣɼɆŨįɆƖëŒëƎǈɆ for other Executive Directors Executive Directors are required to retain 50% of the ƋŨƖƢȯƢëǇɆŝƪśĈėƎɆŨįɆǁėƖƢėĐɆ ƖķëƎėƖɆįƎŨśɆƢķėɆŨśƋëŝǈɆ incentive plans until the minimum shareholding requirement is met and maintained Executive Directors are required to maintain 100% ŨįɆƢķėļƎɆİƪļĐėŒļŝėɆȩŨƎɆƢķėļƎɆ ëĉƢƪëŒɆķŨŒĐļŝİɆļįɆŒŨǂėƎȪɆ įŨƎɆƢǂŨɆǈėëƎƖɆįŨŒŒŨǂļŝİɆ ĉėƖƖëƢļŨŝɆŨįɆėśƋŒŨǈśėŝƢ Ɇ ©ķëƎėķŨŒĐļŝİɆİƪļĐėŒļŝėƖț ȱɆ ,{ɆȱɆǧǣǣɼ ȱɆ {ƢķėƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆȱɆ 200% The Executive Directors’ share interests as at 31 December 2021 are detailed on page 138 No change Y1 Up to 300% of salary Y2 Y3 Y4 Y5 Y1 ¶ǂŨȯǈėëƎɆķŨŒĐļŝİɆƋėƎļŨĐ Y2 Y3 Y4 Y5 Y1 ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆ ƖķëƎėɆŨǂŝėƎƖķļƋ Y2 Y3 Y4 Y5 Entain plc | Annual Report 2021 124 Governance Performance metrics and link to strategy ¶ķėɆƢëĈŒėɆĈėŒŨǂɆĐėśŨŝƖƢƎëƢėƖɆķŨǂɆėëĉķɆėŒėśėŝƢɆŨįɆŨƪƎɆƎėǂëƎĐɆƋëĉŏëİėɆŒļŝŏƖɆƢŨɆŨƪƎɆƢǂŨɆƖƢƎëƢėİļĉɆƋļŒŒëƎƖɆŨįɆEƎŨǂƢķɆëŝĐɆ©ƪƖƢëļŝëĈļŒļƢǈșɆ nŨƎėɆļŝįŨƎśëƢļŨŝɆëĈŨƪƢɆŨƪƎɆƖƢƎëƢėİļĉɆƋļŒŒëƎƖɆļƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆķļėįɆ,ǇėĉƪƢļǁėȼƖɆ¡ėǁļėǂɆŨŝɆƋëİėƖɆǤǥɆƢŨɆǤǬș Strategic pillars Element of reward Link to reward Growth ©ƪƖƢëļŝëĈļŒļƢǈ Bonus ½ŝĐėƎŒǈļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆ EƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡ Safer betting and gaming Customer Deferral of bonus into shares LTIP Total shareholder return LŨŒĐļŝİɆƋėƎļŨĐƖɆįŨƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖ Bonus and LTIP nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒǈ Shareholding requirements for Executive Directors ėŝėǘƢƖ ©ķëƎė©ëǁėɆįŨƎɆëŒŒɆėśƋŒŨǈėėƖ DƎėėȯƖķëƎėɆëǂëƎĐɆȩƖƪĈŌėĉƢɆƢŨɆƖķëƎėķŨŒĐėƎɆëƋƋƎŨǁëŒȪ nëƎŏėƢɆƎėŒëƢėĐɆĈėŝėǘƢƖɆƋëĉŏëİė ,śƋŒŨǈėėɆƎėĉŨİŝļƢļŨŝ dėëƎŝļŝİɆëŝĐɆĐėǁėŒŨƋśėŝƢɆŨƋƋŨƎƢƪŝļƢļėƖ 125 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Directors’ Remuneration Report continued ǥǣǥǥɆŝŝƪëŒɆĈŨŝƪƖɆśėƢƎļĉƖ The Committee is mindful of the continued focus on ESG performance and is pleased to ļŝƢƎŨĐƪĉėɆŨƪƎɆŝėǂɆĉƪƖƢŨśėƎɆśėƢƎļĉɆëŝĐɆƢŨɆėǇƋŒëļŝɆķŨǂɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉɆ ǂļŒŒɆŨƋėƎëƢėɆļŝɆǥǣǥǥșɆ¶ķėɆėǁŨŒƪƢļŨŝɆŨįɆŨƪƎɆëŝŝƪëŒɆĈŨŝƪƖɆśėƢƎļĉƖɆķļİķŒļİķƢƖɆķŨǂɆǂėɆëƎėɆ ǂŨƎŏļŝİɆƢŨɆėśĈėĐɆƖƪƖƢëļŝëĈļŒļƢǈɆëĉƎŨƖƖɆëŒŒɆëƖƋėĉƢƖɆŨįɆƢķėɆĈƪƖļŝėƖƖș ÕķǈɆķëƖɆƢķėɆŨśśļƢƢėėɆƖƢƎėŝİƢķėŝėĐɆ ƢķėɆëŒļİŝśėŝƢɆĈėƢǂėėŝɆƖƪƖƢëļŝëĈļŒļƢǈɆ and remuneration? ƪƖƢŨśėƎƖɆëƎėɆëɆŏėǈɆƋƎļŨƎļƢǈɆįŨƎɆ,ŝƢëļŝɆ ëŝĐɆƢķėɆŝėǂɆśėƢƎļĉɆļƖɆĐėƖļİŝėĐɆƢŨɆëŒļİŝɆ ëŝɆėŒėśėŝƢɆŨįɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆǂļƢķɆƢķėɆ ëĉķļėǁėśėŝƢɆŨįɆİƎėëƢɆĉƪƖƢŨśėƎɆŨƪƢĉŨśėƖș ÕķǈɆĐŨėƖɆƢķėɆŨśśļƢƢėėɆƢķļŝŏɆļƢɆ is important to include a customer śėƢƎļĉɆļŝɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖȠ The customer measure complements ėǇļƖƢļŝİɆĉŨśśļƢśėŝƢƖɆƢŨɆĉŨŝƢļŝƪŨƪƖŒǈɆ enhance and personalise the protection ŨįɆĉƪƖƢŨśėƎƖȚɆƢķėƎėĈǈɆƋŒëĉļŝİɆƢķėśɆëƢɆƢķėɆ ķėëƎƢɆŨįɆėǁėƎǈƢķļŝİɆǂėɆĐŨșɆ How will the new metric work? ÕėɆǂļŒŒɆƪƖėɆpėƢɆƎŨśŨƢėƎɆ©ĉŨƎėɆȩȹp©ȺȪɆ to measure performance across our ĈƎëŝĐƖɆǂļƢķɆƢķėɆǘŝëŒɆŨƪƢĉŨśėɆëƖƖėƖƖėĐɆ ëƢɆEƎŨƪƋɆŒėǁėŒșɆp©ɆļƖɆëɆĉƪƖƢŨśėƎɆ ŒŨǈëŒƢǈɆëŝĐɆƖëƢļƖįëĉƢļŨŝɆśėëƖƪƎėɆƢķëƢɆ ĉŨśƋëŝļėƖɆƪƖėɆƢŨɆƢƎëĉŏɆƋƎŨśŨƢėƎƖɆëŝĐɆ detractors, producing a clear measure of an organisation’s performance through its ĉƪƖƢŨśėƎƖȼɆėǈėƖșɆ ƖɆëɆśėëƖƪƎėɆļƢɆļƖɆėëƖļŒǈɆƪŝĐėƎƖƢŨŨĐɆ ĈǈɆĈŨƢķɆėǇƢėƎŝëŒɆƖƢëŏėķŨŒĐėƎƖɆëŝĐɆ ėśƋŒŨǈėėƖȚɆļƢɆëŒļİŝƖɆǂļƢķɆŨƪƎɆƖƢƎëƢėİļĉɆ ĐļƎėĉƢļŨŝɆëŝĐɆƢķėɆƎėƖƪŒƢƖɆǂļŒŒɆėŝëĈŒėɆƪƖɆƢŨɆ ƢëŏėɆëƋƋƎŨƋƎļëƢėɆëĉƢļŨŝƖɆƢŨɆļśƋƎŨǁėɆŨƪƎɆ ĉƪƖƢŨśėƎƖȼɆėǇƋėƎļėŝĉėș LŨǂɆǂļŒŒɆƢķėɆŝėǂɆśėƢƎļĉɆĈėɆļŝĉŒƪĐėĐɆļŝɆ ƢķėɆëŝŝƪëŒɆĈŨŝƪƖȠ ǨɼɆŨįɆƢķėɆǥǣǥǥɆëŝŝƪëŒɆĈŨŝƪƖɆƋŒëŝɆǂļŒŒɆ ĈėɆĈëƖėĐɆŨŝɆŨƪƎɆŝėǂɆĉƪƖƢŨśėƎɆśėƢƎļĉɆ ëŝĐɆǤǨɼɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆĈėɆĐėĐļĉëƢėĐɆ ƢŨɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİșɆ¶ķėɆǥǣǥǥɆ ƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆǂļŒŒɆƢķėƎėįŨƎėɆ ĉŨśƋƎļƖėɆëŝɆǫǣɼɆǘŝëŝĉļëŒɆëŝĐɆǥǣɼɆŝŨŝȯ ǘŝëŝĉļëŒɆǂėļİķƢļŝİș LŨǂɆǂļŒŒɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆ metric evolve in 2022? ÕėɆëƎėɆŏėėŝɆƢŨɆĉŨŝƢļŝƪėɆƢķėɆėǁŨŒƪƢļŨŝɆ of the safer betting and gaming metric ĈǈɆįƪƎƢķėƎɆėŝķëŝĉļŝİɆŨƪƎɆƖǈƖƢėśƖɆëŝĐɆ processes, continuing to improve the detection and prevention of problematic ƋŒëǈșɆDŨƎɆǥǣǥǥț Ɇ LëŒįɆŨįɆƢķėɆƢŨƢëŒɆǂļŒŒɆƎėŒëƢėɆƢŨɆƢķėɆ½bɆ śëƎŏėƢȚɆǂķėƎėɆǂėɆǂļŒŒɆƢëƎİėƢɆƢķėɆƪƖëİėɆ of our active account management tools ëśŨŝİƖƢɆƎļƖŏɆëƖƖėƖƖėĐɆŨŝŒļŝėɆĉƪƖƢŨśėƎƖșɆ ¶ķƎŨƪİķɆŨƪƎɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢǈɆ ëŝĐɆëƎėʆɆȩȹ¡ʆȺȪɆƋŒëƢįŨƎśɆǂėɆ are able to monitor and categorise ƋŒëǈėƎɆĈėķëǁļŨƪƎɆëŝĐɆļŝƢėƎëĉƢɆǂļƢķɆ ƢķėɆĉƪƖƢŨśėƎɆƢŨɆėįįėĉƢļǁėŒǈɆļŝǙƪėŝĉėɆ ĈėķëǁļŨƪƎȚɆƢķėƎėĈǈɆƋƎŨǁļĐļŝİɆëɆśŨƎėɆ ƋŨƖļƢļǁėɆëŝĐɆƖëįėƎɆėǇƋėƎļėŝĉėșɆ Ɇ ¶ķėɆŨƢķėƎɆķëŒįɆǂļŒŒɆƎėŒëƢėɆƢŨɆśëƎŏėƢƖɆ ŨƪƢƖļĐėɆƢķėɆ½bșɆ¶ķėɆĐėƋŒŨǈśėŝƢɆ ŨįɆ¡ʆȼƖɆëĐǁëŝĉėĐɆśŨĐėŒƖɆëŝĐɆ ƢėĉķŝŨŒŨİļėƖȚɆƢëļŒŨƎėĐɆƢŨɆėëĉķɆĉŨƪŝƢƎǈȼƖɆ ƎėİƪŒëƢŨƎǈɆƎėƍƪļƎėśėŝƢƖȚɆĉƪŒƢƪƎėɆëŝĐɆ śëƢƪƎļƢǈȚɆİļǁėƖɆƪƖɆëŝɆŨƋƋŨƎƢƪŝļƢǈɆƢŨɆ offer the same targeted interactions and overall experiences to a large number of ŨƪƎɆƋŒëǈėƎƖɆëƎŨƪŝĐɆƢķėɆİŒŨĈėș Ɇ QŝɆëĐĐļƢļŨŝȚɆƢŨɆƎėëĉķɆƢķėɆƢķƎėƖķŨŒĐɆŒėǁėŒɆ įŨƎɆƋëǈȯŨƪƢɆƪŝĐėƎɆƢķļƖɆśėƢƎļĉȚɆëŝĐɆƖķŨǂɆ our internal commitment, minimum levels of completion of safer betting and İëśļŝİɆëŝĐɆŨƢķėƎɆƎėŒėǁëŝƢɆĉŨśƋƪŒƖŨƎǈɆ ƢƎëļŝļŝİɆśŨĐƪŒėƖɆśƪƖƢɆĈėɆëĉķļėǁėĐɆĈǈɆ ŨƪƎɆĉŨŒŒėëİƪėƖɆİŒŨĈëŒŒǈșɆ nŨƎėɆļŝįŨƎśëƢļŨŝɆŨŝɆƢķėɆǥǣǥǤɆƢëƎİėƢɆëŝĐɆ outturn of the safer betting and gaming metric can be found in this report on ƋëİėɇǤǦǨɆëŝĐɆƢķėɆ,©EɆŨśśļƢƢėėɆƎėƋŨƎƢɆ ŨŝɇƋëİėɇǤǤǣș How will we ensure that the safer ĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉɆǂļŒŒɆĈėɆ ƎŨĈƪƖƢŒǈɆśėëƖƪƎėĐȚɆƎėǁļėǂėĐɆëŝĐɆ ƎėǙėĉƢɆƪŝĐėƎŒǈļŝİɆƋėƎįŨƎśëŝĉėȠ To provide the Committee and ƖķëƎėķŨŒĐėƎƖɆǂļƢķɆĉŨśįŨƎƢɆƢķëƢɆƢķėɆ outcome for the safer betting and gaming metric are robust and appropriate, the ESG ŨśśļƢƢėėɆǂļŒŒɆëİëļŝɆķëǁėɆŨǁėƎƖļİķƢɆŨįɆƢķėɆ ƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉȚɆëŝĐɆǂļŒŒɆ ƎėĉėļǁėɆļŝƋƪƢɆįƎŨśɆ,QɆ¡ļƖŏɆnëŝëİėśėŝƢɆ ȱɆƢķėɆŒėëĐļŝİɆļŝĐėƋėŝĐėŝƢɆİëśĈŒļŝİɆ ķëƎśɆśļŝļśļƖëƢļŨŝɆĉŨŝƖƪŒƢëŝĉǈɆȱɆǂķėŝɆ ƎėǁļėǂļŝİɆëŝĐɆėǁëŒƪëƢļŝİɆƢķėɆĐėŒļǁėƎǈɆ against targets, prior to recommending the ŨƪƢĉŨśėɆƢŨɆƢķėɆŨśśļƢƢėėș How will the rest of the 2022 annual ĈŨŝƪƖɆĈėɆĐėƢėƎśļŝėĐȠ The 80% of the annual bonus based on ǘŝëŝĉļëŒɆśėƢƎļĉƖɆǂļŒŒɆĈėɆƖƋŒļƢɆĈėƢǂėėŝɆ ƪŝĐėƎŒǈļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆëŝĐɆ İƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡șɆ½ŝĐėƎŒǈļŝİɆEƎŨƪƋɆ ŨƋėƎëƢļŝİɆƋƎŨǘƢɆƎėśëļŝƖɆëƢɆƢķėɆƖëśėɆ ƋƎŨƋŨƎƢļŨŝɆƢŨɆǥǣǥǤɆȩǩǣɼȪɆëŝĐɆƢķėɆpE¡Ɇ ǂėļİķƢļŝİɆķëƖɆƎėĐƪĉėĐɆįƎŨśɆǥǨɼɆƢŨɆǥǣɼɆ to enable the inclusion of the customer śėƢƎļĉșɆpE¡ɆĉŨŝƢļŝƪėƖɆƢŨɆĈėɆëɆŏėǈɆ performance indicator and fundamental to ĐƎļǁļŝİɆƖķëƎėķŨŒĐėƎɆǁëŒƪėșɆ¶ķėɆƢëƎİėƢƖɆëŝĐɆ respective outcomes of the 2022 metrics ǂļŒŒɆĈėɆƎėƋŨƎƢėĐɆļŝɆŝėǇƢɆǈėëƎȼƖɆ$ļƎėĉƢŨƎƖȼɆ ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢș Entain plc | Annual Report 2021 126 Governance 2022 LTIP targets QŝɆĐėƢėƎśļŝļŝİɆƢķėɆd¶QɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆįŨƎɆƢķėɆǥǣǥǥɆ ëǂëƎĐȚɆƢķėɆŨśśļƢƢėėɆķëƖɆĉŨŝƖļĐėƎėĐɆƢķėɆĐļįǘĉƪŒƢǈɆļŝɆƖėƢƢļŝİɆ ëƋƋƎŨƋƎļëƢėŒǈɆƖƢƎėƢĉķļŝİɆĈƪƢɆļŝĉėŝƢļǁļƖļŝİɆ,©ɆƢëƎİėƢƖȚɆİļǁėŝɆƢķėɆ įëƖƢȯĉķëŝİļŝİɆėǇƢėƎŝëŒɆėŝǁļƎŨŝśėŝƢɆļŝɆǂķļĉķɆǂėɆĉƪƎƎėŝƢŒǈɆŨƋėƎëƢėșɆ ¶ķėɆŨśśļƢƢėėɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķļƖɆĉëŝɆĈėɆëĐĐƎėƖƖėĐɆĈǈɆ ĈëƖļŝİɆŨƪƎɆǥǣǥǥɆd¶QɆëǂëƎĐɆėŝƢļƎėŒǈɆŨŝɆƎėŒëƢļǁėɆ¶©¡ɆśėƢƎļĉƖșɆ ¶ķļƖɆëŒļİŝƖɆśëŝëİėśėŝƢȼƖɆļŝƢėƎėƖƢƖɆĉŒŨƖėŒǈɆǂļƢķɆƢķėɆėǇƋėƎļėŝĉėɆ ŨįɆļŝǁėƖƢŨƎƖɆëŝĐɆļŝĉėŝƢļǁļƖėƖɆëĉƢļŨŝƖɆǂķļĉķɆėŝķëŝĉėɆŒŨŝİȯƢėƎśɆ ǁëŒƪėɆĉƎėëƢļŨŝș DŨƎɆǥǣǥǥȚɆǨǣɼɆŨįɆƢķėɆd¶QɆëǂëƎĐƖɆǂļŒŒɆĈėɆĈëƖėĐɆŨŝɆ¶©¡Ɇ performance relative to the FTSE 100 and 50% on performance ƎėŒëƢļǁėɆƢŨɆëŝɆļŝĐƪƖƢƎǈɆƋėėƎɆİƎŨƪƋɆŨįɆƢķėɆįŨŒŒŨǂļŝİɆĉŨśƋëŝļėƖțɆ ǫǫǫɆLŨŒĐļŝİƖȚɆƎļƖƢŨĉƎëƢȚɆėƢƖƖŨŝȚɆëėƖëƎƖɆ,ŝƢėƎƢëļŝśėŝƢȚɆ DraftKings, Evolution Gaming Group, Flutter Entertainment, QŝƢėƎŝëƢļŨŝëŒɆEëśėɆ¶ėĉķȚɆbļŝĐƎėĐɆEƎŨƪƋȚɆnEnɆ¡ėƖŨƎƢƖȚɆŒëǈƢėĉķȚɆ ŨļŝƢƖėƢȚɆ¡ëŝŏɆEƎŨƪƋȚɆ¡ƪƖķɆ©ƢƎėėƢɆQŝƢėƎëĉƢļǁėɆëŝĐɆ©ëŝĐƖɆdÔș ¶ķėɆƢëƎİėƢƖɆëŝĐɆǁėƖƢļŝİɆƖĉķėĐƪŒėɆįŨƎɆƢķėɆǥǣǥǥɆd¶QɆëǂëƎĐƖɆëƎėɆƖėƢɆ ŨƪƢɆĈėŒŨǂș Measure Weighting Threshold 1 ȩǥǨɼɆǁėƖƢļŝİȪ Maximum 1 ȩǤǣǣɼɆǁėƖƢļŝİȪ TSR vs FTSE100 50% nėĐļëŝ Upper quartile TSR vs peer group 50% nėĐļëŝ Upper quartile ǤșɆ ©ƢƎëļİķƢɆŒļŝėɆǁėƖƢļŝİɆĈėƢǂėėŝɆƢķƎėƖķŨŒĐɆëŝĐɆśëǇļśƪśș ¶ķėɆŨśśļƢƢėėɆƎėƢëļŝƖɆĐļƖĉƎėƢļŨŝɆǂķėƢķėƎɆëŝĐȚɆļįɆƖŨȚɆķŨǂɆƢŨɆ ëĐŌƪƖƢɆƢëƎİėƢƖɆƋŨƖƢɆİƎëŝƢɆǂķėŝɆĐėƢėƎśļŝļŝİɆƢķėɆƋėƎįŨƎśëŝĉėɆ ŨƪƢĉŨśėșɆĐĐļƢļŨŝëŒŒǈȚɆƢķėɆŨśśļƢƢėėɆǂļŒŒɆëƖƖėƖƖɆƢķėɆǁëŒƪėɆŨįɆ ƢķėɆǥǣǥǥɆd¶QɆëǂëƎĐƖɆëƢɆǁėƖƢļŝİɆëŝĐɆǂļŒŒɆėŝƖƪƎėɆƢķëƢɆƢķėɆǘŝëŒɆ ŨƪƢƢƪƎŝɆƎėǙėĉƢƖɆëŒŒɆƎėŒėǁëŝƢɆįëĉƢŨƎƖȚɆļŝĉŒƪĐļŝİɆĉŨŝƖļĐėƎëƢļŨŝɆŨįɆ ƪŝĐėƎŒǈļŝİɆƋėƎįŨƎśëŝĉėș 127 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Directors’ Remuneration Report continued Remuneration in context Committed to good governance ÕķėŝɆĉŨŝƖļĐėƎļŝİɆėǇėĉƪƢļǁėɆƎėśƪŝėƎëƢļŨŝȚɆƢķėɆŨśśļƢƢėėɆƢëŏėƖɆļŝƢŨɆëĉĉŨƪŝƢɆëɆǂļĐėɆƎëŝİėɆŨįɆįëĉƢŨƎƖɆļŝĉŒƪĐļŝİɆŒėİëŒɆëŝĐɆƎėİƪŒëƢŨƎǈɆ ƎėƍƪļƎėśėŝƢƖȚɆëƖƖŨĉļëƢėĐɆİƪļĐëŝĉėȚɆëŝĐɆƢķėɆǁļėǂƖɆŨįɆƖķëƎėķŨŒĐėƎƖɆëŝĐɆƢķėļƎɆƎėƋƎėƖėŝƢëƢļǁėɆĈŨĐļėƖșɆLŨǂɆƢķėɆŨśśļƢƢėėɆëĐĐƎėƖƖėƖɆƢķėɆ įŨŒŒŨǂļŝİɆƋƎļŝĉļƋŒėƖȚɆƢëŏėŝɆįƎŨśɆƢķėɆǥǣǤǫɆ½bɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆŨĐėȚɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂș ŒëƎļƢǈ Ɇ {ƪƎɆƎėśƪŝėƎëƢļŨŝɆįƎëśėǂŨƎŏɆļƖɆƖƢƎƪĉƢƪƎėĐɆƢŨɆƖƪƋƋŨƎƢɆƢķėɆǘŝëŝĉļëŒɆëŝĐɆƖƢƎëƢėİļĉɆŨĈŌėĉƢļǁėƖɆŨįɆƢķėɆEƎŨƪƋȚɆ ëŒļİŝļŝİɆƢķėɆļŝƢėƎėƖƢƖɆŨįɆŨƪƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂļƢķɆƢķŨƖėɆŨįɆƖķëƎėķŨŒĐėƎƖ Ɇ ÕėɆëƎėɆĉŨśśļƢƢėĐɆƢŨɆƢƎëŝƖƋëƎėŝƢɆĉŨśśƪŝļĉëƢļŨŝɆǂļƢķɆëŒŒɆŨƪƎɆƖƢëŏėķŨŒĐėƎƖȚɆļŝĉŒƪĐļŝİɆƖķëƎėķŨŒĐėƎƖɆ ȱɇƋëİėɇǦǪɆƖėƢƖɆŨƪƢɆśŨƎėɆĐėƢëļŒƖɆŨįɆķŨǂɆǂėɆėŝİëİėɆǂļƢķɆƖķëƎėķŨŒĐėƎƖ Simplicity Ɇ ÕėɆŨƋėƎëƢėɆëɆƖļśƋŒėȚɆĈƪƢɆėįįėĉƢļǁėɆƎėśƪŝėƎëƢļŨŝɆįƎëśėǂŨƎŏ Ɇ ¶ķėɆëŝŝƪëŒɆĈŨŝƪƖɆëŝĐɆd¶QɆƎėǂëƎĐɆƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆŏėǈɆśėëƖƪƎėƖɆŨįɆƖƪĉĉėƖƖɆįŨƎɆƢķėɆĈƪƖļŝėƖƖ There is clear line of sight for management and shareholders Risk Ɇ {ƪƎɆļŝĉėŝƢļǁėƖɆëƎėɆƖƢƎƪĉƢƪƎėĐɆƢŨɆëŒļİŝɆǂļƢķɆƢķėɆEƎŨƪƋȼƖɆƎļƖŏɆśëŝëİėśėŝƢɆįƎëśėǂŨƎŏ Ɇ ¶ķƎėėȯǈėëƎɆĐėįėƎƎëŒɆƪŝĐėƎɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆëŝĐɆƢķėɆƢǂŨȯǈėëƎɆķŨŒĐļŝİɆƋėƎļŨĐɆŨŝɆd¶QɆëǂëƎĐƖɆĉƎėëƢėɆŒŨŝİȯɆ ƢėƎśɆëŒļİŝśėŝƢȚɆëƖɆĐŨɆŨƪƎɆǂļƢķļŝɆëŝĐɆƋŨƖƢȯėśƋŒŨǈśėŝƢɆƖķëƎėķŨŒĐļŝİɆİƪļĐėŒļŝėƖ Ɇ ŨƢķɆļŝĉėŝƢļǁėƖɆëŒƖŨɆļŝĉŨƎƋŨƎëƢėɆƎŨĈƪƖƢɆƋėƎįŨƎśëŝĉėɆƢëƎİėƢƖȚɆśëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖȚɆëŝĐɆ overarching Committee discretion to adjust formulaic outcomes ƎėĐļĉƢëĈļŒļƢǈ Ɇ ¶ķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈɆĉŒėëƎŒǈɆƖėƢƖɆŨƪƢɆƢķėɆƋŨƖƖļĈŒėɆįƪƢƪƎėɆǁëŒƪėɆŨįɆƎėśƪŝėƎëƢļŨŝɆǂķļĉķɆ,ǇėĉƪƢļǁėɆ Directors could receive, including the impact of share price appreciation of 50% Proportionality Ɇ ¶ķėƎėɆļƖɆĉŒėëƎɆëŒļİŝśėŝƢɆĈėƢǂėėŝɆƢķėɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆŨśƋëŝǈɆëŝĐɆƢķėɆƎėǂëƎĐƖɆëǁëļŒëĈŒėɆƢŨɆ Executive Directors Ɇ QŝĉėŝƢļǁėɆėŒėśėŝƢƖɆëƎėɆĉŒŨƖėŒǈɆëŒļİŝėĐɆƢŨɆŨƪƎɆƖƢƎëƢėİļĉɆİŨëŒƖȚɆƢƎëŝƖƋëƎėŝƢɆëŝĐɆƎŨĈƪƖƢŒǈɆëƖƖėƖƖėĐȚɆǂļƢķɆƢķėɆ ŨśśļƢƢėėɆķëǁļŝİɆįƪŒŒɆĐļƖĉƎėƢļŨŝɆƢŨɆëĐŌƪƖƢɆŨƪƢĉŨśėƖɆƢŨɆėŝƖƪƎėɆƢķėǈɆëŒļİŝɆǂļƢķɆŨǁėƎëŒŒɆ,ŝƢëļŝɆƋėƎįŨƎśëŝĉė Alignment to culture Ɇ ÕėɆëƎėɆĉŨśśļƢƢėĐɆƢŨɆėįįėĉƢļǁėɆƖƢëŏėķŨŒĐėƎɆëŝĐɆĉŨŒŒėëİƪėɆėŝİëİėśėŝƢȚɆƋëƎƢɆŨįɆǂķļĉķɆļƖɆėŝƖƪƎļŝİɆƢķëƢɆƢķėɆ ŨśśļƢƢėėɆƖėėƖɆëŒŒɆƎėŒėǁëŝƢɆĐëƢëɆƎėŒëƢļŝİɆƢŨɆƋëǈɆëŝĐɆĉŨŝĐļƢļŨŝƖɆļŝɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉė Ɇ {ƋėƎëƢļŝİɆƎėƖƋŨŝƖļĈŒǈɆƢŨǂëƎĐƖɆŨƪƎɆĉƪƖƢŨśėƎƖɆļƖɆįƪŝĐëśėŝƢëŒɆƢŨɆƢķėɆǂëǈɆļŝɆǂķļĉķɆ,ŝƢëļŝɆŨƋėƎëƢėƖɆëŝĐɆ ƎėśƪŝėƎëƢļŨŝɆŨƪƢĉŨśėƖɆëƎėɆƎėǁļėǂėĐɆļŝɆƢķėɆŒļİķƢɆŨįɆëĉƢļŨŝƖɆƢëŏėŝɆļŝɆƖƪƋƋŨƎƢɆŨįɆŨƪƎɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆ gaming agenda Ɇ ¶ķļƖɆǈėëƎɆǂėɆëƎėɆļŝƢƎŨĐƪĉļŝİɆëɆŝėǂɆĉƪƖƢŨśėƎɆśėëƖƪƎėɆļŝƢŨɆŨƪƎɆëŝŝƪëŒɆĈŨŝƪƖȚɆƢŨɆƎėǙėĉƢɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆ ƋƪƢƢļŝİɆƢķėɆĉƪƖƢŨśėƎɆëƢɆƢķėɆķėëƎƢɆŨįɆėǁėƎǈƢķļŝİɆǂėɆĐŨȚɆëƖɆǂėŒŒɆëƖɆėǁŨŒǁļŝİɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆ śėƢƎļĉșɆŨƢķɆśėƢƎļĉƖɆĉŨŝƢƎļĈƪƢėɆƢŨɆŨƪƎɆƖƪƖƢëļŝëĈļŒļƢǈɆëŝĐɆĐėśŨŝƖƢƎëƢėɆëɆĉŒėëƎɆŒļŝŏɆĈėƢǂėėŝɆƎėśƪŝėƎëƢļŨŝɆ ëŝĐɆŨƪƎɆĉƪŒƢƪƎėșɆ¶ķėɆŨśśļƢƢėėɆǂļŒŒɆëŒƖŨɆƢëŏėɆĈƎŨëĐėƎɆ,©EɆĉŨŝƖļĐėƎëƢļŨŝƖɆļŝƢŨɆëĉĉŨƪŝƢɆëŝĐɆśëǈɆëƋƋŒǈɆ ĐļƖĉƎėƢļŨŝɆļįɆŝėĉėƖƖëƎǈɆǂķėŝɆëƖƖėƖƖļŝİɆƢķėɆëƋƋƎŨƋƎļëƢėŝėƖƖɆŨįɆļŝĉėŝƢļǁėɆŨƪƢĉŨśėƖ Entain plc | Annual Report 2021 128 Governance ¡ėëĐɆśŨƎėɆëĈŨƪƢɆƢķėɆŨśśļƢƢėėȼƖɆǂŨƎŏɆļŝɆǥǣǥǤț page 120 Understanding our colleague reward framework {ƪƎɆƋėŨƋŒėɆëƎėɆǁļƢëŒɆƢŨɆŨƪƎɆĈƪƖļŝėƖƖșɆƢɆ,ŝƢëļŝȚɆǂėɆĈėŒļėǁėɆļŝɆįëļƎŝėƖƖɆƢķƎŨƪİķŨƪƢɆƢķėɆŨśƋëŝǈșɆ¶ķėɆEƎŨƪƋɆŨƋėƎëƢėƖɆëɆŝƪśĈėƎɆŨįɆİėŝėƎëŒɆ ƋƎļŝĉļƋŒėƖɆëƋƋŒļėĐɆƢŨɆëŒŒɆŒėǁėŒƖș Ɇ ÕėɆǂļŒŒɆƋƎŨǁļĐėɆëɆĉŨśƋėƢļƢļǁėɆƋëĉŏëİėɆĉŨśƋëƎėĐɆƢŨɆƢķėɆƎėŒėǁëŝƢɆśëƎŏėƢɆįŨƎɆėëĉķɆĉŨŒŒėëİƪėș Ɇ ÕėɆǂļŒŒɆėŝƖƪƎėɆĉŨŒŒėëİƪėƖɆĉëŝɆƖķëƎėɆļŝɆƢķėɆƖƪĉĉėƖƖɆŨįɆƢķėɆĈƪƖļŝėƖƖȚɆǂķėƎėɆëƋƋƎŨƋƎļëƢėȚɆƢķƎŨƪİķɆƋėƎįŨƎśëŝĉėȯĈëƖėĐɆǁëƎļëĈŒėɆ ƎėśƪŝėƎëƢļŨŝɆëŝĐɆŨƋƋŨƎƢƪŝļƢǈɆƢŨɆëĉƍƪļƎėɆ,ŝƢëļŝɆƖķëƎėƖșɆ Ɇ ÕėɆëļśɆįŨƎɆƢƎëŝƖƋëƎėŝĉǈɆëŝĐɆëɆįëļƎɆĉëƖĉëĐėɆŨįɆƎėśƪŝėƎëƢļŨŝɆƢķƎŨƪİķŨƪƢɆƢķėɆEƎŨƪƋș ¶ķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆĉŨŝƖļĐėƎƖɆëɆƎëŝİėɆŨįɆįëĉƢŨƎƖɆǂķėŝɆĐėĉļĐļŝİɆƪƋŨŝɆƢķėɆƎėśƪŝėƎëƢļŨŝɆįŨƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȚɆŨŝėɆŨįɆǂķļĉķɆ ļƖɆƢķėɆëŒļİŝśėŝƢɆǂļƢķɆƋëǈɆƋƎëĉƢļĉėƖɆëĉƎŨƖƖɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉėșɆ¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖƪśśëƎļƖėƖɆƢķėɆƎėśƪŝėƎëƢļŨŝɆƖƢƎƪĉƢƪƎėɆįŨƎɆėśƋŒŨǈėėƖɆ ĈėŒŨǂɆƢķėɆŨëƎĐș Element Wider workforce Executive Directors and senior management Base salary Ɇ {ƪƎɆĈëƖėɆƖëŒëƎǈɆļƖɆƢķėɆĈëƖļƖɆįŨƎɆëɆĉŨśƋėƢļƢļǁėɆ ƢŨƢëŒɆƎėǂëƎĐɆƋëĉŏëİėɆįŨƎɆëŒŒɆėśƋŒŨǈėėƖȚɆëŝĐɆǂėɆ ƎėǁļėǂɆƢķėƖėɆëŝŝƪëŒŒǈ Ɇ ¶ķėɆƎėǁļėǂɆƢëŏėƖɆļŝƢŨɆëĉĉŨƪŝƢɆëɆŝƪśĈėƎɆŨįɆ įëĉƢŨƎƖɆƖƪĉķɆëƖɆĉŨƪŝƢƎǈɆĈƪĐİėƢȚɆƎėŒėǁëŝƢɆ śëƎŏėƢɆĉŨśƋëƎëƢŨƎƖȚɆƢķėɆƖŏļŒŒƖȚɆŏŝŨǂŒėĐİėɆ ëŝĐɆėǇƋėƎļėŝĉėɆŨįɆėëĉķɆļŝĐļǁļĐƪëŒȚɆƎėŒëƢļǁļƢǈɆ ƢŨɆƋėėƎƖɆǂļƢķļŝɆƢķėɆŨśƋëŝǈɆëŝĐɆŒŨĉëŒɆ legislative requirements Ɇ QŝɆƖėƢƢļŝİɆƢķėɆƖëŒëƎǈɆƎėǁļėǂɆĈƪĐİėƢɆėëĉķɆǈėëƎȚɆ ǂėɆĉŨŝƖļĐėƎɆëįįŨƎĐëĈļŒļƢǈɆëƖɆǂėŒŒɆëƖƖėƖƖļŝİɆ ķŨǂɆėśƋŒŨǈėėɆĈëƖėɆƖëŒëƎļėƖɆëƎėɆƋŨƖļƢļŨŝėĐɆ ƎėŒëƢļǁėɆƢŨɆśëƎŏėƢɆƎëƢėƖȚɆįŨƎėĉëƖƢƖɆŨįɆëŝǈɆ įƪƎƢķėƎɆśëƎŏėƢɆļŝĉƎėëƖėƖɆëŝĐɆëƢƢƎļƢļŨŝɆƎëƢėƖ Ɇ ¶ķėɆĈëƖėɆƖëŒëƎǈɆŨįɆŨƪƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆ and senior management forms the basis of ƢķėļƎɆƢŨƢëŒɆƎėśƪŝėƎëƢļŨŝɆëŝĐɆǂėɆƎėǁļėǂɆƢķėļƎɆ ƖëŒëƎļėƖɆëŝŝƪëŒŒǈ ėŝėǘƢƖɆëŝĐɆƋėŝƖļŨŝ Ɇ ÕėɆŨįįėƎɆśëƎŏėƢȯëŒļİŝėĐɆĈėŝėǘƢƖɆƋëĉŏëİėƖɆ ƎėǙėĉƢļŝİɆśëƎŏėƢɆƋƎëĉƢļĉėɆļŝɆėëĉķɆĉŨƪŝƢƎǈɆļŝɆ ǂķļĉķɆǂėɆŨƋėƎëƢė Ɇ ÕķėƎėɆëƋƋƎŨƋƎļëƢėȚɆǂėɆŨįįėƎɆėŒėśėŝƢƖɆŨįɆ ƋėƎƖŨŝëŒɆĈėŝėǘƢɆĉķŨļĉėɆƢŨɆŨƪƎɆėśƋŒŨǈėėƖ Ɇ ¶ķėɆĈėŝėǘƢƖɆƋëĉŏëİėƖɆŨįɆŨƪƎɆ,ǇėĉƪƢļǁėɆ Directors and senior management are aligned ǂļƢķɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉėɆŨįɆƢķėɆĉŨƪŝƢƎǈɆļŝɆ ǂķļĉķɆƢķėǈɆëƎėɆėśƋŒŨǈėĐ Executive Directors are eligible to participate ļŝɆƢķėɆƋėŝƖļŨŝɆëƎƎëŝİėśėŝƢɆļŝɆƢķėɆĉŨƪŝƢƎǈɆļŝɆ ǂķļĉķɆƢķėǈɆëƎėɆĈëƖėĐȚɆŨŝɆƢķėɆƖëśėɆĈëƖļƖɆëƖɆ ŒŨĉëŒɆėśƋŒŨǈėėƖɆ Short-term incentives Ɇ nëŝǈɆŨįɆŨƪƎɆİŒŨĈëŒɆǂŨƎŏįŨƎĉėɆƋëƎƢļĉļƋëƢėɆļŝɆ ƢķėɆEƎŨƪƋɆëŝŝƪëŒɆĈŨŝƪƖȚɆǂļƢķɆśėƢƎļĉƖɆëŒļİŝėĐɆ to those of the Executive Directors and senior management Ɇ ÕėɆŨƋėƎëƢėɆŒŨĉëŒɆļŝĉėŝƢļǁėɆëƎƎëŝİėśėŝƢƖɆ ǂķėƎėɆëƋƋƎŨƋƎļëƢėɆƢŨɆëŒļİŝɆǂļƢķɆ śëƎŏėƢɆƋƎëĉƢļĉė The Executive Directors and senior management participate in the same Group annual bonus plan as eligible members of the İŒŨĈëŒɆǂŨƎŏįŨƎĉė Ɇ LëŒįɆŨįɆëŝǈɆëǂëƎĐɆƢŨɆëŝɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆļƖɆ ƖƪĈŌėĉƢɆƢŨɆĐėįėƎƎëŒɆļŝƢŨɆƖķëƎėƖɆįŨƎɆƢķƎėėɆǈėëƎƖ Ɇ nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒǈ Long-term incentives A small proportion of this population is eligible ƢŨɆĈėɆĉŨŝƖļĐėƎėĐɆįŨƎɆ¡ėƖƢƎļĉƢėĐɆ©ƢŨĉŏɆǂëƎĐƖȚɆ ǂķļĉķɆǁėƖƢɆëįƢėƎɆƢķƎėėɆǈėëƎƖ Ɇ nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒǈ Ɇ ŒŒɆėśƋŒŨǈėėƖɆķëǁėɆƢķėɆĉķëŝĉėɆƢŨɆƋëƎƢļĉļƋëƢėɆļŝɆ ƢķėɆEƎŨƪƋȼƖɆëŒŒȯėśƋŒŨǈėėɆ©ķëƎė©ëǁėɆƋŒëŝ Ɇ ©ƪĈŌėĉƢɆƢŨɆëƋƋƎŨǁëŒɆĈǈɆƖķëƎėķŨŒĐėƎƖɆëƢɆƢķėɆ ǥǣǥǥɆEnȚɆëŝɆëǂëƎĐɆŨįɆȹįƎėėɆƖķëƎėƖȺɆǂļŒŒɆ ĈėɆśëĐėɆƢŨɆëŒŒɆėŒļİļĈŒėɆėśƋŒŨǈėėƖɆļŝɆǥǣǥǥȚɆļŝɆ recognition of the Group’s strong performance in 2021 Ɇ ÕėɆŨƋėƎëƢėɆëŝɆd¶QɆǂļƢķɆëɆƢķƎėėȯǈėëƎɆ performance period for Executive Directors and senior management, and vesting is subject to Group performance outcomes Ɇ ǂëƎĐƖɆśëĐėɆƢŨɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆ ëƎėɆƖƪĈŌėĉƢɆƢŨɆëɆƢǂŨȯǈėëƎɆķŨŒĐļŝİɆƋėƎļŨĐɆ įŨŒŒŨǂļŝİɆǁėƖƢļŝİ Ɇ nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒǈ 129 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Directors’ Remuneration Report continued ĉƢļŨŝƖɆëƖɆëɆƎėƖƪŒƢɆŨįɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉɆ ¶ķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉɆĉŨŝƢļŝƪėĐɆƢŨɆļśƋëĉƢɆŨƪƎɆĉŨŒŒėëİƪėƖȚɆëƖɆļƢɆĐļĐɆėǁėƎǈŨŝėɆļŝɆǥǣǥǤșɆ{ƪƎɆƋėŨƋŒėɆǂŨƎŏļŝİɆļŝɆƖķŨƋƖɆëŝĐɆƖƢëĐļëɆļŝɆ ƢķėɆ½bɆǂėƎėɆƪŝëĈŒėɆƢŨɆǂŨƎŏɆĐƪėɆƢŨɆŒŨĉŏĐŨǂŝƖɆļŝɆƢķėɆǘƎƖƢɆƍƪëƎƢėƎɆŨįɆǥǣǥǤɆëŝĐɆƢķŨƖėɆĈëƖėĐɆļŝɆŨįǘĉėƖɆĉŨŝƢļŝƪėĐɆƢŨɆǂŨƎŏɆįƎŨśɆķŨśėɆļŝɆ ŒļŝėɆǂļƢķɆƎėŒėǁëŝƢɆŒŨĉëŒɆİŨǁėƎŝśėŝƢɆİƪļĐëŝĉėșɆÕėɆķëǁėɆĈėėŝɆļŝĉƎėĐļĈŒǈɆƋƎŨƪĐɆŨįɆķŨǂɆŨƪƎɆƋėŨƋŒėɆķëǁėɆƎėëĉƢėĐɆƢŨɆƢķėƖėɆĉķëŒŒėŝİėƖɆ ŨǁėƎɆƢķėɆƋëƖƢɆƢǂŨɆǈėëƎƖșɆ¶ķėļƎɆķėëŒƢķȚɆƖëįėƢǈɆëŝĐɆǂėŒŒĈėļŝİɆǂėƎėɆŨƪƎɆƋƎļŨƎļƢǈɆƢķƎŨƪİķŨƪƢșɆŝɆėǇƢėŝƖļǁėɆĉŨśśƪŝļĉëƢļŨŝɆëŝĐɆǂėŒŒĈėļŝİɆ ƋƎŨİƎëśśėɆǂëƖɆļŝɆƋŒëĉėɆƢŨɆƖƪƋƋŨƎƢɆĉŨŒŒėëİƪėƖɆƢķƎŨƪİķŨƪƢɆƢķėɆǈėëƎȚɆëŝĐɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆĈėɆëɆįŨĉƪƖɆļŝɆƢķėɆįƪƢƪƎėșɆDŨƎɆƢķŨƖėɆƋėŨƋŒėɆ ƋŒëĉėĐɆŨŝɆįƪƎŒŨƪİķɆļŝɆƢķėɆ½bȚɆǂėɆėŝƖƪƎėĐɆƢķėļƎɆƖëŒëƎǈɆǂëƖɆƢŨƋƋėĐɆƪƋɆƢŨɆǤǣǣɼȚɆëŝĐɆƢķėɆEƎŨƪƋɆķëƖɆƖƪĈƖėƍƪėŝƢŒǈɆĉķŨƖėŝɆƢŨɆƎėƋëǈɆ įƪƎŒŨƪİķɆśŨŝļėƖɆƎėĉėļǁėĐɆļŝɆǥǣǥǤș ŨŝƖļĐėƎëƢļŨŝɆŨįɆĉŨŒŒėëİƪėɆëŝĐɆƖƢëŏėķŨŒĐėƎɆǁļėǂƖ ¶ķėɆŨśśļƢƢėėɆƖƪƋƋŨƎƢƖɆëŝĐɆëļśƖɆįŨƎɆįëļƎŝėƖƖɆëŝĐɆƢƎëŝƖƋëƎėŝĉǈɆ ŨįɆƎėśƪŝėƎëƢļŨŝɆëƎƎëŝİėśėŝƢƖɆëĉƎŨƖƖɆƢķėɆEƎŨƪƋȚɆǂļƢķɆĉŨŝƖļƖƢėŝƢɆ ƋƎļŝĉļƋŒėƖɆƪŝĐėƎŒǈļŝİɆĈŨƢķɆƋëǈɆįŨƎɆƢķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆ ƢķëƢɆįŨƎɆŨƪƎɆǂļĐėƎɆĉŨŒŒėëİƪėɆƋŨƋƪŒëƢļŨŝșɆ¶ŨɆƖƪƋƋŨƎƢɆƢķļƖȚɆƢķėɆ Committee receives regular updates, for example, during the ǈėëƎȚɆëɆĐėƢëļŒėĐɆƋëƋėƎɆŨŝɆEƎŨƪƋȯǂļĐėɆëŒŒɆĉŨŒŒėëİƪėɆƎėśƪŝėƎëƢļŨŝɆ ëƎƎëŝİėśėŝƢƖɆǂëƖɆƋƎėƖėŝƢėĐɆƢŨɆƢķėɆŨśśļƢƢėėșɆ ÕėɆķëǁėɆëɆŝƪśĈėƎɆŨįɆĉŨŒŒėëİƪėɆįŨƎƪśƖɆǂļƢķļŝɆ,ŝƢëļŝșɆ¶ķėƖėɆƋŒëǈɆ ëŝɆļśƋŨƎƢëŝƢɆƎŨŒėɆļŝɆƋƎŨǁļĐļŝİɆŨƪƎɆƋėŨƋŒėɆǂļƢķɆëɆǁŨļĉėɆëŝĐɆëŒŒŨǂɆ ƢķėśɆƢŨɆƋƎŨǁļĐėɆƢķėɆĈƪƖļŝėƖƖɆǂļƢķɆǁëŒƪëĈŒėɆļŝƖļİķƢɆëŝĐɆįėėĐĈëĉŏɆ ŨŝɆëɆƎëŝİėɆŨįɆƢŨƋļĉƖȚɆļŝĉŒƪĐļŝİɆƎėśƪŝėƎëƢļŨŝșɆ$ƪƎļŝİɆǥǣǥǤȚɆ representatives from our Retail Forum and National Forum ȩįŨƎɆŝŨŝȯƎėƢëļŒɆĉŨŒŒėëİƪėƖɆļŝɆƢķėɆ½bȪɆëƢƢėŝĐėĐɆëɆśėėƢļŝİɆŨįɆƢķėɆ ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆƢŨɆƋƎŨǁļĐėɆĐļƎėĉƢɆįėėĐĈëĉŏɆǂķļĉķɆ ļŝĉŒƪĐėĐɆĐļƖĉƪƖƖļŨŝɆŨŝɆƢŨƋļĉƖɆĉƪƎƎėŝƢŒǈɆĉŨŝĉėƎŝļŝİɆŨƪƎɆĉŨŒŒėëİƪėƖșɆ ¶ķļƖɆļŝĉŒƪĐėĐɆƢķėɆǁļėǂƖɆŨįɆŨƪƎɆ½bɆ¡ėƢëļŒɆĉŨŒŒėëİƪėƖɆŨŝɆķŨǂɆ ƢķėɆEƎŨƪƋɆķëĐɆƎėëĉƢėĐɆƢķƎŨƪİķŨƪƢɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉșɆ QŝɆëĐĐļƢļŨŝȚɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒȚɆļŝɆķėƎɆƎŨŒėɆëƖɆ$ėƖļİŝëƢėĐɆ ÕŨƎŏįŨƎĉėɆ$ļƎėĉƢŨƎȚɆƋƎŨǁļĐėƖɆƢķėɆŨśśļƢƢėėɆǂļƢķɆƪƋĐëƢėƖɆŨŝɆ ĉŨŒŒėëİƪėɆǁļėǂƖɆŨŝɆƎėśƪŝėƎëƢļŨŝșɆ¶ķƎŨƪİķɆƢķėɆŨëƎĐɆǂėɆƎėĉėļǁėɆ ǁëŒƪëĈŒėɆļŝƖļİķƢɆëƖɆƢŨɆİėŝėƎëŒɆĉŨŒŒėëİƪėɆǁļėǂƖɆŨŝɆƎėśƪŝėƎëƢļŨŝȜɆ ƢķėɆƎėƖƪŒƢƖɆŨįɆŨƪƎɆEŒŨĈëŒɆȻÛŨƪƎɆǁŨļĉėȼɆ©ƪƎǁėǈȚɆļŝĉŒƪĐļŝİɆƢķŨƖėɆ ƎėŒëƢėĐɆƢŨɆƋëǈɆëŝĐɆĈėŝėǘƢƖșɆ©ėėɆƋëİėɆǬǫɆįŨƎɆśŨƎėɆĐėƢëļŒɆŨŝɆŨƪƎɆ ŨëƎĐɆ,ŝİëİėśėŝƢɆëĉƢļǁļƢļėƖș QɆǂëƖɆĐėŒļİķƢėĐɆƢŨɆƋëƎƢļĉļƋëƢėɆļŝɆ,ŝƢëļŝȼƖɆEŒŨĈëŒɆŨŝįėƎėŝĉėȚɆ ķėŒĐɆǁļƎƢƪëŒŒǈɆļŝɆ$ėĉėśĈėƎɆǥǣǥǤȚɆĈƎļŝİļŝİɆƢŨİėƢķėƎɆĉŨŒŒėëİƪėɆ representatives from across the Group, and giving them the ŨƋƋŨƎƢƪŝļƢǈɆƢŨɆėŝİëİėɆǂļƢķɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒɆëŝĐɆśǈƖėŒįɆŨŝɆëɆ ǂļĐėɆƎëŝİėɆŨįɆƢŨƋļĉƖșɆ¶ķėɆśėėƢļŝİɆǂëƖɆļŝƖļİķƢįƪŒɆëŝĐɆļŝįŨƎśëƢļǁėɆ ǂļƢķɆĉŨŒŒėëİƪėƖɆŨƋėŝŒǈɆƖķëƎļŝİɆƢķėļƎɆėǇƋėƎļėŝĉėƖɆëŝĐɆƖƪİİėƖƢļŨŝƖɆ įŨƎɆëƎėëƖɆŨįɆļśƋƎŨǁėśėŝƢȚɆëŝĐɆQɆĉŨśśėŝĐɆƢķėļƎɆƋëƖƖļŨŝɆįŨƎɆƢķėɆ ĈƪƖļŝėƖƖɆëŝĐɆƢķėɆǁëŒƪėɆŨįɆƢķėļƎɆĉŨŝƢƎļĈƪƢļŨŝɆĐƪƎļŝİɆŨƪƎɆĐļƖĉƪƖƖļŨŝș QɆǂëƖɆƋŒėëƖėĐɆƢķëƢɆǂėɆǂėƎėɆëĈŒėɆƢŨɆļśƋŒėśėŝƢɆëɆŝƪśĈėƎɆŨįɆ ëŒŒȯĉŨŒŒėëİƪėɆƎėśƪŝėƎëƢļŨŝɆļŝļƢļëƢļǁėƖɆĐƪƎļŝİɆǥǣǥǤȚɆƖŨśėɆŨįɆ ǂķļĉķɆĐļƎėĉƢŒǈɆƎėŒëƢėɆƢŨɆįėėĐĈëĉŏɆƎėĉėļǁėĐɆĐƪƎļŝİɆŨƪƎɆDŨƎƪśɆ ėŝİëİėśėŝƢɆëĉƢļǁļƢļėƖȚɆëƖɆǂėŒŒɆëƖɆëĉŏŝŨǂŒėĐİļŝİɆƢķėɆƢƎėśėŝĐŨƪƖɆ ėįįŨƎƢɆƢķëƢɆėǁėƎǈŨŝėɆķëƖɆƋƪƢɆļŝɆŨǁėƎɆƢķėɆƋëƖƢɆƢǂŨɆǈėëƎƖɆĐƪƎļŝİɆëɆ ƋƎŨŒŨŝİėĐɆƋėƎļŨĐɆŨįɆƪŝĉėƎƢëļŝƢǈț ¶ķėɆEƎŨƪƋȯǂļĐėɆëŝŝƪëŒɆƖëŒëƎǈɆƎėǁļėǂɆǂëƖɆĈƎŨƪİķƢɆįŨƎǂëƎĐɆ įƎŨśɆǤɆëŝƪëƎǈɆǥǣǥǥɆƢŨɆǤɆ{ĉƢŨĈėƎɆǥǣǥǤȚɆëĉŏŝŨǂŒėĐİļŝİɆƢķėɆ ƖƢƎėŝİƢķɆŨįɆƢķėɆEƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėɆĐƪƎļŝİɆƢķėɆǈėëƎș ÕėɆëĉŏŝŨǂŒėĐİėĐɆƢķėɆĉŨśśļƢśėŝƢɆŨįɆŨƪƎɆ½bɆ¡ėƢëļŒɆ ĉŨŒŒėëİƪėƖȚɆǂķŨɆķëǁėɆĉŨŝƢļŝƪëŒŒǈɆƋƪƢɆĉƪƖƢŨśėƎƖɆǘƎƖƢɆėǁėƎǈɆ ĐëǈɆëŝĐɆƖķŨǂŝɆİƎėëƢɆƎėƖļŒļėŝĉėɆƢķƎŨƪİķŨƪƢɆƢķėɆƋëŝĐėśļĉȚɆĈǈɆ ëŝŝŨƪŝĉļŝİɆëŝɆļŝĉƎėëƖėɆļŝɆƢķėļƎɆķŨƪƎŒǈɆƎëƢėɆŨįɆƋëǈșɆÕļƢķɆėįįėĉƢɆ įƎŨśɆǤɆƋƎļŒɆǥǣǥǥɆƢķļƖɆǂļŒŒɆĈėɆëɆśļŝļśƪśɆŨįɆɞǤǣɆƋėƎɆķŨƪƎȚɆƪƋɆ įƎŨśɆɞǬșǤǦɆƋėƎɆķŨƪƎȚɆëŝĐɆƢëŏėƖɆŨƪƎɆśļŝļśƪśɆŒėǁėŒɆŨįɆƋëǈɆëĈŨǁėɆ ƢķëƢɆƎėĉŨśśėŝĐėĐɆĈǈɆƢķėɆ¡ėëŒɆdļǁļŝİɆÕëİėɆDŨƪŝĐëƢļŨŝșɆ ɆƎėǁļėǂɆŨįɆĈėŝėǘƢɆƖƢƎƪĉƢƪƎėƖɆļŝɆƢķėɆ½bɆëŝĐɆEļĈƎëŒƢëƎɆŒėĐɆƢŨɆëŝɆ ļŝĉƎėëƖėɆļŝɆƢķėɆśëǇļśƪśɆėśƋŒŨǈėƎɆƋėŝƖļŨŝɆĉŨŝƢƎļĈƪƢļŨŝɆƢŨɆǩɼɆ ŨįɆĈëƖėɆƖëŒëƎǈș ŒŒɆŨįɆŨƪƎɆĉŨŒŒėëİƪėƖɆķëǁėɆƢķėɆŨƋƋŨƎƢƪŝļƢǈɆƢŨɆƖķëƎėɆļŝɆƢķėɆǁëŒƪėɆ ƢķėǈɆĉƎėëƢėșɆ¶ķėɆƖƪĉĉėƖƖįƪŒɆŒëƪŝĉķɆŨįɆŨƪƎɆǘƎƖƢɆëŒŒȯėśƋŒŨǈėėɆ ©ķëƎė©ëǁėɆƋŒëŝɆļŝɆƋƎļŒɆǥǣǥǤɆƖëǂɆŨǁėƎɆǥǣɼɆŨįɆŨƪƎɆĉŨŒŒėëİƪėƖɆ ėŒėĉƢļŝİɆƢŨɆƋëƎƢļĉļƋëƢėȚɆİļǁļŝİɆƢķėśɆƢķėɆŨƋƋŨƎƢƪŝļƢǈɆƢŨɆ ƋƪƎĉķëƖėɆ,ŝƢëļŝɆƖķëƎėƖɆëƢɆëŝɆŨƋƢļŨŝɆƋƎļĉėɆŨįɆɞǤǥșǩǧșɆɆƖėĉŨŝĐɆ ©ķëƎė©ëǁėɆǂļŒŒɆĈėɆŒëƪŝĉķėĐɆļŝɆǥǣǥǥș ©ƪĈŌėĉƢɆƢŨɆëƋƋƎŨǁëŒɆĈǈɆƖķëƎėķŨŒĐėƎƖɆëƢɆƢķėɆǥǣǥǥɆEnȚɆ ëɇȹįƎėėɇƖķëƎėȺɆëǂëƎĐɆŨįɆɞǦǣǣɆŨįɆ,ŝƢëļŝɆƖķëƎėƖɆǂļŒŒɆĈėɆśëĐėɆ ƢŨɇëŒŒɆėŒļİļĈŒėɆėśƋŒŨǈėėƖɆŒëƢėƎɆļŝɆǥǣǥǥșɆ¶ķėɆëǂëƎĐɆļƖɆĐėƖļİŝėĐɆ to include colleagues across the entire Group, including recent ëĉƍƪļƖļƢļŨŝƖȚɆëŝĐɆƢŨɆĈƪļŒĐɆŨŝɆƢķėɆ©ķëƎė©ëǁėɆƋŒëŝɆĈǈɆįƪƎƢķėƎɆ ëŒļİŝļŝİɆļŝƢėƎėƖƢƖɆǂļƢķɆƖķëƎėķŨŒĐėƎƖș ŒŒɆŨįɆƢķėƖėɆļŝļƢļëƢļǁėƖɆëĉŏŝŨǂŒėĐİėɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆŨƪƎɆ ĉŨŒŒėëİƪėƖɆļŝɆĐėŒļǁėƎļŝİɆƢķėɆEƎŨƪƋȼƖɆŨĈŌėĉƢļǁėƖɆëŝĐɆQɆŒŨŨŏɆ įŨƎǂëƎĐɇƢŨɆĉŨŝƢļŝƪļŝİɆƢķėɆĐļëŒŨİƪėɆǂļƢķɆŨƪƎɆƋėŨƋŒėɆļŝɆǥǣǥǥș Entain plc | Annual Report 2021 130 Governance CEO Pay Ratio (Unaudited) ¶ķėɆǘƎƖƢɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆƢķėɆƎëƢļŨɆëƢɆśėĐļëŝȚɆǥǨƢķɆëŝĐɆ ǪǨƢķɆƋėƎĉėŝƢļŒėɆŨįɆƢķėɆƢŨƢëŒɆƎėśƪŝėƎëƢļŨŝɆƎėĉėļǁėĐɆĈǈɆŨƪƎɆ ,{ƖɆĉŨśƋëƎėĐɆƢŨɆƢķėɆƢŨƢëŒɆƎėśƪŝėƎëƢļŨŝɆƎėĉėļǁėĐɆĈǈɆŨƪƎɆ½bɆ ĉŨŒŒėëİƪėƖȚɆǂķļŒėɆƢķėɆƖėĉŨŝĐɆƋƎŨǁļĐėƖɆįƪƎƢķėƎɆļŝįŨƎśëƢļŨŝɆŨŝɆ ƢķėɆƢŨƢëŒɆĉŨŒŒėëİƪėɆƋëǈɆǘİƪƎėɆëƢɆėëĉķɆƍƪëƎƢļŒėȚɆëŝĐɆƢķėɆƖëŒëƎǈɆ ĉŨśƋŨŝėŝƢɆǂļƢķļŝɆƢķļƖșɆ{ƪƎɆĉŨśĈļŝėĐɆ,{ƖȼɆǥǣǥǤɆƋëǈɆǂëƖɆǤǥǥɆ ƢļśėƖɆƢķėɆśėĐļëŝɆȩǨǣƢķɆƋėƎĉėŝƢļŒėȪșɆ¶ķļƖɆƎėƋƎėƖėŝƢƖɆëŝɆļŝĉƎėëƖėɆ įƎŨśɆŒëƖƢɆǈėëƎȚɆǂķļĉķɆļƖɆśëļŝŒǈɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆëŝɆëŝŝƪëŒɆĈŨŝƪƖɆ ƋëǈśėŝƢɆĈėļŝİɆśëĐėɆļŝɆǥǣǥǤȚɆǂļƢķɆƢķļƖɆķëǁļŝİɆĈėėŝɆǂëļǁėĐɆĈǈɆƢķėɆ ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆ,ǇėĉƪƢļǁėɆŨśśļƢƢėėɆśėśĈėƎƖɆļŝɆǥǣǥǣșɆ ¶ķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎƖɆƢķëƢɆƢķļƖɆƎëƢļŨɆļƖɆŝŨƢɆŨƪƢɆŨįɆŒļŝėɆǂļƢķɆŨƢķėƎɆ ƎėƢëļŒɆŨƎİëŝļƖëƢļŨŝƖș Method 25th percentile 50th percentile 75th percentile ǥǣǥǤɆ,{ɆƋëǈɆƎëƢļŨ Option A ǤǦǬ 122 Ǭǫ ǥǣǥǣɆ,{ɆƋëǈɆƎëƢļŨ Option A 106 ǬǨ ǪǨ ǥǣǤǬɆ,{ɆƋëǈɆƎëƢļŨ Option A ǥǪǫ ǥǥǬ ǤǪǣ UK colleagues – pay element 25th percentile 50th percentile 75th percentile ©ëŒëƎǈ ǤǨȚǧǫǪ ǤǪȚǥǤǤ 20,125 Total remuneration 18,503 21,028 26,330 ÕėɆǂŨƪŒĐɆķļİķŒļİķƢɆƢķėɆįŨŒŒŨǂļŝİɆļŝɆƢėƎśƖɆŨįɆƢķėɆëƋƋƎŨëĉķɆƢëŏėŝț Ɇ {ƋƢļŨŝɆɆǂëƖɆĉķŨƖėŝɆëƖɆļƢɆļƖɆĉŨŝƖļĐėƎėĐɆƢŨɆĈėɆƢķėɆśŨƖƢɆëĉĉƪƎëƢėɆ ǂëǈɆŨįɆļĐėŝƢļįǈļŝİɆĉŨŒŒėëİƪėƖɆëƢɆǥǨȚɆǨǣɆëŝĐɆǪǨȚɆëŝĐɆļƖɆ ëŒļİŝėĐɆǂļƢķɆļŝǁėƖƢŨƎɆėǇƋėĉƢëƢļŨŝƖșɆ½ŝĐėƎɆƢķļƖɆëƋƋƎŨëĉķɆǂėɆ calculate total remuneration for all of our UK colleagues and ƎëŝŏɇƢķėśɆëĉĉŨƎĐļŝİŒǈɆŨŝɆƢķļƖɆĈëƖļƖș Ɇ ¶ķėɆŒŨǂėƎɆƍƪëƎƢļŒėȚɆśėĐļëŝɆëŝĐɆƪƋƋėƎɆƍƪëƎƢļŒėɆĉŨŒŒėëİƪėƖɆ ǂėƎėɆĉëŒĉƪŒëƢėĐɆĈëƖėĐɆŨŝɆįƪŒŒȯƢļśėɆėƍƪļǁëŒėŝƢɆĐëƢëɆëƖɆëƢɆ ǦǤɆ$ėĉėśĈėƎɆǥǣǥǤș Ɇ QŝɆƎėǁļėǂļŝİɆƢķėɆĉŨŒŒėëİƪėɆƋëǈɆĐëƢëȚɆƢķėɆŨśśļƢƢėėɆļƖɆ ĉŨśįŨƎƢëĈŒėɆƢķëƢɆƢķėɆǥǨȚɆǨǣɆëŝĐɆǪǨɆļŝĐļǁļĐƪëŒƖɆļĐėŝƢļǘėĐɆ ëƋƋƎŨƋƎļëƢėŒǈɆƎėǙėĉƢɆƢķėɆĉŨŒŒėëİƪėɆƋëǈɆƋƎŨǘŒėɆëƢɆƢķŨƖėɆƍƪëƎƢļŒėƖȚɆ ëŝĐɆƢķëƢɆƢķėɆŨǁėƎëŒŒɆƋļĉƢƪƎėɆƋƎėƖėŝƢėĐɆĈǈɆƢķėɆƎëƢļŨƖɆļƖɆĉŨŝƖļƖƢėŝƢɆ ǂļƢķɆŨƪƎɆƋëǈȚɆƎėǂëƎĐɆëŝĐɆƋƎŨİƎėƖƖļŨŝɆƋŨŒļĉļėƖɆįŨƎɆ½bɆĉŨŒŒėëİƪėƖșɆ ¶ķėɆĉëŒĉƪŒëƢļŨŝɆŨįɆƖëŒëƎǈɆëŝĐɆƢŨƢëŒɆƎėśƪŝėƎëƢļŨŝɆļŝĉŒƪĐėƖɆëŝǈɆ ƋëǈśėŝƢƖɆśëĐėɆƢķëƢɆǂėƎėɆƎėĉŒëļśėĐɆǁļëɆƢķėɆ½bɆŨƎŨŝëǁļƎƪƖɆŨĈɆ ¡ėƢėŝƢļŨŝɆ©ĉķėśėɆȩįƪƎŒŨƪİķȪɆĐƪƎļŝİɆǥǣǥǤș The Committee notes that Entain has in place a number of ļŝļƢļëƢļǁėƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆƢķėɆƋëǈɆëŝĐɆĉŨŝĐļƢļŨŝƖɆįŨƎɆŨƪƎɆǂļĐėƎɆ colleague population are fair and reasonable and receives regular ƪƋĐëƢėƖɆŨŝɆƎėǂëƎĐɆƋƎëĉƢļĉėƖɆƢķƎŨƪİķŨƪƢɆƢķėɆEƎŨƪƋș ÕėɆëļśɆƢŨɆƋƎŨǁļĐėɆëɆśëƎŏėƢɆĉŨśƋėƢļƢļǁėɆƎėśƪŝėƎëƢļŨŝɆƋëĉŏëİėɆļŝɆ ėëĉķɆŨįɆƢķėɆĉŨƪŝƢƎļėƖɆļŝɆǂķļĉķɆǂėɆŨƋėƎëƢėșɆ¶ķļƖɆļŝĉŒƪĐėƖɆĈėŝėǘƢƖɆ ëƋƋƎŨƋƎļëƢėɆƢŨɆƢķėɆŒŨĉëŒɆśëƎŏėƢɆëŝĐɆƢķėɆëĈļŒļƢǈɆįŨƎɆśëŝǈɆĉŨŒŒėëİƪėƖɆ ƢŨɆƖķëƎėɆļŝɆƢķėɆƖƪĉĉėƖƖɆŨįɆ,ŝƢëļŝɆǁļëɆëŝŝƪëŒɆļŝĉėŝƢļǁėɆƋƎŨİƎëśśėƖșɆ įƢėƎɆƢķėɆƖƪĉĉėƖƖįƪŒɆŒëƪŝĉķɆŨįɆŨƪƎɆǘƎƖƢɆëŒŒȯėśƋŒŨǈėėɆ©ķëƎė©ëǁėɆ ƋŒëŝɆŒëƖƢɆǈėëƎȚɆëŝŨƢķėƎɆĉǈĉŒėɆŨįɆ©ķëƎė©ëǁėɆǂļŒŒɆĈėɆŨįįėƎėĐɆļŝɆƋƎļŒɆ ǥǣǥǥșɆ¶ķļƖɆƖļƢƖɆëŒŨŝİƖļĐėɆƢķėɆȹįƎėėɆƖķëƎėȺɆëǂëƎĐɆǂķļĉķȚɆƖƪĈŌėĉƢɆ ƢŨɆƖķëƎėķŨŒĐėƎɆëƋƋƎŨǁëŒɆëƢɆƢķėɆEnȚɆǂļŒŒɆĈėɆŨįįėƎėĐɆƢŨɆëŒŒɆėŒļİļĈŒėɆ ėśƋŒŨǈėėƖɆŒëƢėƎɆļŝɆƢķėɆǈėëƎș ©ƢƎƪĉƢƪƎėƖɆëƎėɆļŝɆƋŒëĉėɆƢŨɆƖƪƋƋŨƎƢɆƖëŒëƎǈɆƋƎŨİƎėƖƖļŨŝɆëŝĐɆƎėİƪŒëƎɆ śëƎŏėƢɆëŝëŒǈƖļƖȚɆĈǈɆİėŨİƎëƋķǈɆëŝĐɆƎŨŒėɆįƪŝĉƢļŨŝɆļƖɆĉëƎƎļėĐɆŨƪƢȚɆ ǂļƢķɇëĉƢļŨŝɆƢëŏėŝɆëƖɆëƋƋƎŨƋƎļëƢėș ©ëŒëƎļėƖɆëƎėɆƢǈƋļĉëŒŒǈɆƎėǁļėǂėĐɆļŝɆëŝƪëƎǈɆėëĉķɆǈėëƎșɆDŨƎɆǥǣǥǤȚɆ ƢķėɆĐļįǘĉƪŒƢɆĐėĉļƖļŨŝɆǂëƖɆƢëŏėŝȚɆĐƪėɆƢŨɆƢķėɆƪŝĉėƎƢëļŝƢļėƖɆŨįɆƢķėɆ ƋëŝĐėśļĉȚɆƢķëƢɆëɆİėŝėƎëŒɆƖëŒëƎǈɆƎėǁļėǂɆƋƎŨĉėƖƖɆǂŨƪŒĐɆŝŨƢɆĈėɆ ĉëƎƎļėĐɆŨƪƢșɆLŨǂėǁėƎȚɆİļǁėŝɆŨƪƎɆƖƢƎŨŝİɆĈƪƖļŝėƖƖɆƋėƎįŨƎśëŝĉėɆ ĐƪƎļŝİɆǥǣǥǤɆļƢɆǂëƖɆëİƎėėĐɆƢķëƢɆƢķėɆEƎŨƪƋȯǂļĐėɆƎėǁļėǂɆĐƪėɆļŝɆ ëŝƪëƎǈɆǥǣǥǥɆǂŨƪŒĐɆĈėɆĈƎŨƪİķƢɆįŨƎǂëƎĐɆƢŨɆǤɆ{ĉƢŨĈėƎɆǥǣǥǤȚɆ ėǇĉŒƪĐļŝİɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆ,ǇėĉƪƢļǁėɆŨśśļƢƢėėɆśėśĈėƎƖșɆ Relative Importance of the Spend on Pay ¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆƢķėɆŨǁėƎëŒŒɆƖƋėŝĐɆŨŝɆƋëǈɆįŨƎɆëŒŒɆĉŨŒŒėëİƪėƖɆ ĉŨśƋëƎėĐɆǂļƢķɆƢķėɆƎėƢƪƎŝƖɆĐļƖƢƎļĈƪƢėĐɆƢŨɆƖķëƎėķŨŒĐėƎƖș ©ļİŝļǘĉëŝƢɆĐļƖƢƎļĈƪƢļŨŝƖ 2021 2020 % change ©ƢëįįɆĉŨƖƢƖɆȩɞśȪ 1 579.1 Ǩǥǧșǣ ǤǣșǨɼ $ļƖƢƎļĈƪƢļŨŝƖɆƢŨɆƖķëƎėķŨŒĐėƎƖɆȩɞśȪ 2 – ȱŝȦë ǤșɆ ¶ķėɆļŝĉƎėëƖėɆļŝɆƖƢëįįɆĉŨƖƢƖɆļƖɆŒëƎİėŒǈɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƢķėɆļŝĉƎėëƖėɆļŝɆĈŨŝƪƖɆƋëǈëĈŒėɆ ļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǤɆĉŨśƋëƎėĐɆƢŨɆǥǣǥǣȚɆĉŨśĈļŝėĐɆǂļƢķɆëɆĉķëŝİėɆļŝɆśļǇɆŨįɆĉŨŒŒėëİƪėƖɆ ėśƋŒŨǈėĐȚɆǂļƢķɆëɆśŨǁėɆƢŨǂëƎĐƖɆëɆķļİķėƎɆƖŏļŒŒėĐɆŨŝŒļŝėɆǂŨƎŏįŨƎĉėɆëŝĐɆįėǂėƎɆƖķŨƋɆ ĈëƖėĐɆƎėƢëļŒɆĉŨŒŒėëİƪėƖș ǥșɆ pŨɆĐļǁļĐėŝĐƖɆǂėƎėɆƋëļĐɆĐƪƎļŝİɆǥǣǥǣɆŨƎɆǥǣǥǤș Gender pay gap reporting ǥǣǥǤɆļƖɆƢķėɆįŨƪƎƢķɆǈėëƎɆļŝɆǂķļĉķɆǂėɆķëǁėɆƋƪĈŒļƖķėĐɆŨƪƎɆİėŝĐėƎɆƋëǈɆ İëƋɆƎėƖƪŒƢƖșɆ{ƪƎɆśėĐļëŝɆķŨƪƎŒǈɆƋëǈɆĐļįįėƎėŝĉėɆĈėƢǂėėŝɆśëŒėɆëŝĐɆ įėśëŒėɆĉŨŒŒėëİƪėƖɆļŝɆƢķėɆ½bɆļƖɆǨșǦɼɆȩǥǣǥǣțɆǪșǤɼȪȚɆǂķļĉķɆĉŨśƋëƎėƖɆ įëǁŨƪƎëĈŒǈɆǂļƢķɆƢķėɆ½bɆśėĐļëŝɆƋëǈɆİëƋɆŨįɆǤǨșǧɼɆëĉƎŨƖƖɆëŒŒɆƖėĉƢŨƎƖɆ ȩƖŨƪƎĉėțɆ{įǘĉėɆįŨƎɆpëƢļŨŝëŒɆ©ƢëƢļƖƢļĉƖȚɆ{ĉƢŨĈėƎɆǥǣǥǤȪșɆ{ƪƎɆśėĐļëŝɆ ĈŨŝƪƖɆƋëǈɆİëƋɆļƖɆǨǬșǩɼɆȩǥǣǥǣțɆǤǦɼȪɆǂļƢķɆƢķėɆļŝĉƎėëƖėɆĈėļŝİɆĐƎļǁėŝɆ ĈǈɆƢķėɆĐėįėƎƎëŒɆŨįɆƢķėɆǥǣǤǬɆEƎŨƪƋɆëŝŝƪëŒɆĈŨŝƪƖɆƋëǈśėŝƢȚɆśėëŝļŝİɆ ŝŨɆĈŨŝƪƖɆƋëǈśėŝƢɆǂëƖɆĉëƋƢƪƎėĐɆļŝɆǥǣǥǣɆëŝĐɆƢǂŨɆƋëǈśėŝƢƖɆëƎėɆ ļŝĉŒƪĐėĐɆļŝɆƢķėɆǥǣǥǤɆǘİƪƎėƖș DƎŨśɆįƪƎƢķėƎɆëŝëŒǈƖļƖɆļƢɆļƖɆĉŒėëƎɆƢķëƢɆƢķėƖėɆİëƋƖɆŒëƎİėŒǈɆƎėśëļŝɆ ëɆįƪŝĉƢļŨŝɆŨįɆŒŨǂėƎɆŝƪśĈėƎƖɆŨįɆǂŨśėŝɆëƢɆƖėŝļŨƎɆŒėǁėŒƖșɆÕėɆëƎėɆ ĉŨśśļƢƢėĐɆƢŨɆśëŏļŝİɆ,ŝƢëļŝɆëŝɆļŝĉŒƪƖļǁėɆƋŒëĉėɆƢŨɆǂŨƎŏɆëŝĐɆǂėɆ ëƎėɆĉŨŝƢļŝƪļŝİɆƢŨɆļŝǁėƖƢɆļŝɆļŝļƢļëƢļǁėƖɆƢŨɆĉƎėëƢėɆİƎėëƢėƎɆĐļǁėƎƖļƢǈɆëƢɆ ƖėŝļŨƎɆŒėǁėŒƖșɆDƪƎƢķėƎɆļŝįŨƎśëƢļŨŝɆŨŝɆƢķėƖėɆļŝļƢļëƢļǁėƖɆļƖɆƋƎŨǁļĐėĐɆ in the investing in people and communities section on page ǨǪșɆ{ƪƎɆİėŝĐėƎɆƋëǈɆİëƋɆƎėƋŨƎƢɆįŨƎɆƢķėɆǈėëƎɆėŝĐėĐɆǨɆƋƎļŒɆǥǣǥǤȚɆ ƢŨİėƢķėƎɆǂļƢķɆĉŨŝƢėǇƢƪëŒɆļŝįŨƎśëƢļŨŝɆëŝĐɆśŨƎėɆĐėƢëļŒɆŨŝɆƢķėɆ ļŝļƢļëƢļǁėƖɆǂėɆķëǁėɆƪŝĐėƎǂëǈɆƢŨɆĉŒŨƖėɆŨƪƎɆİėŝĐėƎɆƋëǈɆİëƋȚɆĉëŝɆĈėɆ ǁļėǂėĐɆŨŝɆƢķėɆŨśƋëŝǈȼƖɆǂėĈƖļƢėɆëƢɆwww.entaingroup.com. 131 Ov erview | Strategic report | Governance | F inancial statements Entain plc | Annual Report 2021 Directors’ Remuneration Report continued Summary of performance ¶ķėɆĉķëƎƢɆĈėŒŨǂɆƖķŨǂƖɆƢķėɆǁëŒƪėɆŨįɆɞǤǣǣɆļŝǁėƖƢėĐɆļŝɆ,ŝƢëļŝɆƋŒĉɆƖļŝĉėɆŨĈƢëļŝļŝİɆnëļŝɆnëƎŏėƢɆŒļƖƢļŝİɆŨŝɆǤɆDėĈƎƪëƎǈɆǥǣǤǩȚɆĉŨśƋëƎėĐɆǂļƢķɆ ƢķėɆǁëŒƪėɆŨįɆɞǤǣǣɆļŝǁėƖƢėĐɆļŝɆƢķėɆD¶©,ɆǤǣǣɆQŝĐėǇɆëŝĐɆƢķėɆD¶©,ɆǦǨǣɆ¶ƎëǁėŒɆëŝĐɆdėļƖƪƎėɆQŝĐėǇșɆ¶ķėɆD¶©,ɆǤǣǣɆķëƖɆĈėėŝɆĉķŨƖėŝɆŨŝɆƢķėɆ ĈëƖļƖɆƢķëƢɆƢķļƖɆļƖɆƢķėɆļŝĐėǇɆļŝɆǂķļĉķɆ,ŝƢëļŝɆǂëƖɆëɆĉŨŝƖƢļƢƪėŝƢɆŨįɆëƢɆƢķėɆėŝĐɆŨįɆǥǣǥǤș ɞǤǣǣɆļŝǁėƖƢėĐɆļŝɆ,ŝƢëļŝɆƋŒĉɆŨŝɆǤɆDėĈƎƪëƎǈɆǥǣǤǩɆǂŨƪŒĐɆķëǁėɆĈėėŝɆǂŨƎƢķɆɞǧǤǩɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆĉŨśƋëƎėĐɆǂļƢķɆɞǤǨǧɆļįɆļŝǁėƖƢėĐɆļŝɆ ƢķėɆD¶©,ɆǤǣǣɆëŝĐɆɞǤǣǣɆļįɆļŝǁėƖƢėĐɆļŝɆƢķėɆD¶©,ɆǦǨǣɆ¶ƎëǁėŒɆëŝĐɆdėļƖƪƎėɆQŝĐėǇș {ǁėƎɆƢķėɆƢķƎėėȯǈėëƎɆƋėƎļŨĐɆǤɆëŝƪëƎǈɆǥǣǤǬɆƢŨɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆȩƢķėɆƋėƎļŨĐɆĉŨǁėƎėĐɆĈǈɆƢķėɆǥǣǤǬɆd¶QȪɆƢķėɆƢŨƢëŒɆƖķëƎėķŨŒĐėƎɆƎėƢƪƎŝɆ ȩȹ¶©¡ȺȪɆŨįɆ,ŝƢëļŝɆƖķëƎėƖɆǂëƖɆɣǤǩǨɼɆĉŨśƋëƎėĐɆǂļƢķɆɣǥǦɼɆįŨƎɆƢķėɆD¶©,ɆǤǣǣɆëŝĐɆȯǤǣɼɆįŨƎɆƢķėɆD¶©,ɆǦǨǣɆ¶ƎëǁėŒɆëŝĐɆdėļƖƪƎėɆQŝĐėǇș 01/02/16 £100 £200 £300 £400 £500 31/12/2031/12/1931/12/1831/12/1731/12/16 Entain F TSE 100 FTSE 35 0 Travel & Leisure Index Source: Datastream 31/12/21 Entain plc | Annual Report 2021 132 Governance ©ƪśśëƎǈɆŨįɆ,{ɆƎėśƪŝėƎëƢļŨŝɆŨƪƢĉŨśėƖțɆǥǣǤǨȱǥǣǥǤ Year 2021 2020 2019 2018 2017 2016 2015 CEO ɆpǈİëëƎĐȯ Andersen 1 S Segev 2 S Segev 2 K Alexander 3 K Alexander K Alexander K Alexander K Alexander K Alexander ©ļŝİŒėɆǘİƪƎėɆŨįɆƢŨƢëŒɆ remuneration 4 £2.53m £0.04m ɞǣșǦś ɞǤșǩǫś ɞǨșǥǦś ɞǤǬșǤǣś ɞǤǫșǥǤś ɞǤǪșǫǦś ɞǦșǧǤś ŝŝƪëŒɆĈŨŝƪƖɆƋëǈȯŨƪƢ 5 ȩɼɆŨįɆśëǇļśƪśȪ 100% – ȱȱ100% Ǭǥɼ 100% ȱɆ ȱɆ d¶QɆǁėƖƢļŝİɆ ȩɼɆŨįɆśëǇļśƪśȪ ––ȱǫǬșǫɼǬǤșǤɼȱȱȱȱ dėİëĉǈɆëǂëƎĐɆǁėƖƢļŝİɆ ȩɼɆŨįɆśëǇļśƪśȪ ––ȱȱȱ100% 100% 100% 100% ǤșɆėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝɆǂëƖɆëƋƋŨļŝƢėĐɆ,{ɆŨŝɆǥǤɆëŝƪëƎǈɆǥǣǥǤș ǥșɆ ©ķëǈɆ©ėİėǁɆǂëƖɆëƋƋŨļŝƢėĐɆ,{ɆŨŝɆǤǪɆƪŒǈɆǥǣǥǣɆëŝĐɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐɆŨŝɆǥǤɆëŝƪëƎǈɆǥǣǥǤșɆ©ķëǈȼƖɆǥǣǤǫɆëŝĐɆǥǣǤǬɆd¶QɆëǂëƎĐƖɆŒëƋƖėĐɆǂķėŝɆķėɆŒėįƢɆėśƋŒŨǈśėŝƢɆ ëŝĐɆķėɆǂëƖɆŝŨƢɆėŝƢļƢŒėĐɆƢŨɆëŝǈɆĈŨŝƪƖɆƋëǈśėŝƢɆļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǤș ǦșɆ bėŝŝėƢķɆŒėǇëŝĐėƎɆƎėƢļƎėĐɆįƎŨśɆƢķėɆƎŨŒėɆŨįɆ,{ɆŨŝɆǤǪɆƪŒǈɆǥǣǥǣș ǧșɆ DļİƪƎėƖɆįŨƎɆǥǣǤǨȚɆǥǣǤǩɆëŝĐɆǥǣǤǪɆǂėƎėɆƋƎėǁļŨƪƖŒǈɆƎėƋŨƎƢėĐɆļŝɆ,ƪƎŨƖɆëŝĐɆķëǁėɆĈėėŝɆĉŨŝǁėƎƢėĐɆļŝƢŨɆEɆƪƖļŝİɆëŝɆëǁėƎëİėɆƎëƢėɆįŨƎɆƢķėɆƎėŒėǁëŝƢɆǈėëƎș ǨșɆ ¶ķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂëļǁėĐɆëŝǈɆėŝƢļƢŒėśėŝƢɆƢŨɆĈŨŝƪƖɆįŨƎɆǥǣǥǣɆĐƪėɆƢŨɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉș ķëŝİėɆļŝɆ$ļƎėĉƢŨƎƖȼɆƋëǈɆįŨƎɆƢķėɆǈėëƎɆļŝɆĉŨśƋëƎļƖŨŝɆƢŨɆëŒŒɆ,ŝƢëļŝɆĉŨŒŒėëİƪėƖ ¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖķŨǂƖɆƢķėɆǈėëƎȯŨŝȯǈėëƎɆĉķëŝİėɆļŝɆƖëŒëƎǈȚɆĈėŝėǘƢƖɆëŝĐɆëŝŝƪëŒɆĈŨŝƪƖɆėëƎŝėĐɆįƎŨśɆǥǣǥǤɆƢŨɆǥǣǥǣȚɆĈƪļŒĐļŝİɆƢŨɆëɆ ǘǁėȯǈėëƎɆķļƖƢŨƎǈȚɆįŨƎɆëŒŒɆ,ǇėĉƪƢļǁėɆëŝĐɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƢķėɆķëļƎśëŝɆŨįɆƢķėɆŨëƎĐȚɆĉŨśƋëƎėĐɆƢŨɆƢķëƢɆįŨƎɆ,ŝƢëļŝȼƖɆ½bɆ ĉŨŒŒėëİƪėƖșɆ¶ķėɆĉŨśƋëƎļƖŨŝɆļƖɆŝŨƢɆëĈŒėɆƢŨɆĈėɆƖķŨǂŝɆįŨƎɆƢķŨƖėɆļŝĐļǁļĐƪëŒƖɆǂķŨɆǂėƎėɆŝŨƢɆļŝɆƎŨŒėɆįŨƎɆƢķėɆįƪŒŒɆǤǥɆśŨŝƢķƖɆŨįɆėļƢķėƎɆǈėëƎș 2021 2020 Base salary/fees ėŝėǘƢƖ ŝŝƪëŒɆĈŨŝƪƖ Base salary/fees ėŝėǘƢƖ ŝŝƪëŒɆĈŨŝƪƖ Executive Directors ɆpǈİëëƎĐȯŝĐėƎƖėŝ 1 –––ȱȱȱ ¡ɆÕŨŨĐ 2 27.2% 2.2% n/a ȱȱȱ ¡ɆLŨƖŏļŝ 3 –––ȱȱȱ Non-Executive Directors 4 ɆEļĈƖŨŝ 5,6 5.3% – – ȱȱȱ ɆŨƪĉķƪƢ 6 1.9% – – ȩǦșǫȪɼ ȱ ȱ S David 3 –––ȱȱȱ nɆEƎėİŨƎǈ 3 –––ȱȱȱ ɆQƖŨŒë 6 5.4% – – ȩǫșǦȪɼ ȱ ȱ ÔɆëƎśëŝ 3 –––ȱȱȱ ÔɆnĉ$ŨǂėŒŒ 6 5.4% – – ȩǫșǨȪɼ ȱ ȱ D Satz Ǫ –––ȱȱȱ All colleagues 8 0.1% 1.9% 132.4% ǦșǨɼ ȩǤșǧȪɼ ȩǨǦșǤȪɼ ǤșɆ ėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝɆŌŨļŝėĐɆƢķėɆŨëƎĐɆļŝɆǥǣǤǬɆëŝĐɆǂëƖɆëƋƋŨļŝƢėĐɆ,{ɆļŝɆǥǣǥǤșɆƖɆƖķėɆǂëƖɆŝŨƢɆļŝɆėļƢķėƎɆƎŨŒėɆįŨƎɆëɆįƪŒŒɆǤǥɆśŨŝƢķƖɆŝŨɆĉŨśƋëƎļƖŨŝɆļƖɆƖķŨǂŝș ǥșɆ ¡ŨĈɆÕŨŨĐɆŌŨļŝėĐɆƢķėɆŨëƎĐɆĐƪƎļŝİɆǥǣǤǬșɆƖɆķėɆǂëƖɆŝŨƢɆļŝɆƎŨŒėɆįŨƎɆƢķėɆįƪŒŒɆǤǥɆśŨŝƢķƖɆŨįɆǥǣǤǬȚɆŝŨɆĉŨśƋëƎļƖŨŝɆļƖɆƖķŨǂŝɆļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǣșɆQŝɆǥǣǥǣȚɆļŝɆķļƖɆƎŨŒėɆëƖɆD{ȚɆ¡ŨĈɆǂëƖɆ ƖƪĈŌėĉƢɆƢŨɆëɆǥǣɼɆƎėĐƪĉƢļŨŝɆļŝɆƖëŒëƎǈɆįŨƎɆƢķƎėėɆśŨŝƢķƖȚɆëŝĐɆëĐĐļƢļŨŝëŒŒǈɆëƖɆëŝɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆķėɆǂëļǁėĐɆķļƖɆėŝƢļƢŒėśėŝƢɆƢŨɆƎėĉėļǁėɆëɆĈŨŝƪƖɆƪŝĐėƎɆƢķėɆǥǣǥǣɆEƎŨƪƋɆëŝŝƪëŒɆ ĈŨŝƪƖɆƋŒëŝșɆQŝɆǥǣǥǤȚɆ¡ŨĈȼƖɆƖëŒëƎǈɆǂëƖɆļŝĉƎėëƖėĐɆįƎŨśɆɞǧǦǣȚǣǣǣɆƢŨɆɞǨǥǨȚǣǣǣȚɆėįįėĉƢļǁėɆǥǤɆëŝƪëƎǈɆǥǣǥǤȚɆƪƋŨŝɆƢëŏļŝİɆŨŝɆëĐĐļƢļŨŝëŒɆƎėƖƋŨŝƖļĈļŒļƢǈɆëƖɆ$ėƋƪƢǈɆ,{ș ǦșɆ ¡ŨĈėƎƢɆLŨƖŏļŝȚɆ©ƢėŒŒëɆ$ëǁļĐȚɆnëƎŏɆEƎėİŨƎǈɆëŝĐɆÔļĉŏǈɆëƎśëŝɆŌŨļŝėĐɆƢķėɆŨëƎĐɆĐƪƎļŝİɆǥǣǥǤȚɆƢķėƎėįŨƎėɆŝŨɆĉŨśƋëƎļƖŨŝƖɆëƎėɆƖķŨǂŝș ǧșɆ pŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆƎėĉėļǁėɆįėėƖɆŨŝŒǈɆëŝĐɆĐŨɆŝŨƢɆƎėĉėļǁėɆëŝǈɆëĐĐļƢļŨŝëŒɆĈėŝėǘƢƖɆŨƎɆĈŨŝƪƖɆƋëǈśėŝƢƖș ǨșɆ ëƎƎǈɆEļĈƖŨŝɆŌŨļŝėĐɆƢķėɆŨëƎĐɆĐƪƎļŝİɆǥǣǤǬșɆƖɆķėɆǂëƖɆŝŨƢɆļŝɆƎŨŒėɆįŨƎɆƢķėɆįƪŒŒɆǤǥɆśŨŝƢķƖɆŨįɆǥǣǤǬȚɆŝŨɆĉŨśƋëƎļƖŨŝɆļƖɆƖķŨǂŝɆļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǣșɆ ǩșɆ QŝɆǥǣǥǣȚɆëƎƎǈɆEļĈƖŨŝȚɆļėƎƎėɆŨƪĉķƪƢȚɆėƢėƎɆQƖŨŒëɆëŝĐɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒɆǂėƎėɆëŒŒɆƖƪĈŌėĉƢɆƢŨɆëɆǥǣɼɆƎėĐƪĉƢļŨŝɆļŝɆįėėƖɆįŨƎɆƢķƎėėɆśŨŝƢķƖșɆ¶ķėƎėɆǂėƎėɆŝŨɆļŝĉƎėëƖėƖɆƢŨɆƢķėɆpŨŝȯ ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆįėėɆƖƢƎƪĉƢƪƎėɆļŝɆǥǣǥǤș ǪșɆ $ëǁļĐɆ©ëƢǒɆǂëƖɆëƋƋŨļŝƢėĐɆƢŨɆƢķėɆŨëƎĐɆļŝɆǥǣǥǣȚɆƢķėƎėįŨƎėɆŝŨɆĉŨśƋëƎļƖŨŝƖɆëƎėɆƖķŨǂŝșɆ ǫșɆ ¶ķėɆëŒŒɆĉŨŒŒėëİƪėɆĐëƢëɆļƖɆĉŨśƋƎļƖėĐɆŨįɆƢķëƢɆƪƖėĐɆƢŨɆĉëŒĉƪŒëƢėɆƢķėɆ,{ɆƋëǈɆƎëƢļŨșɆ¶ŨɆėŒļśļŝëƢėɆƢķėɆļśƋëĉƢɆŨįɆĉķëŝİėƖɆļŝɆĉŨŒŒėëİƪėɆŝƪśĈėƎƖɆǈėëƎȯŨŝȯǈėëƎɆƢķļƖɆķëƖɆĈėėŝɆĈëƖėĐɆ ŨŝɆëǁėƎëİėɆĈëƖėɆƖëŒëƎǈȚɆĈėŝėǘƢƖɆëŝĐɆëŝŝƪëŒɆĈŨŝƪƖɆĐëƢëɆįŨƎɆǥǣǤǬȦǥǣɆëŝĐɆǥǣǥǣȦǥǤșɆDŨƎɆǥǣǥǤȚɆƢķėɆĐļįǘĉƪŒƢɆĐėĉļƖļŨŝɆǂëƖɆƢëŏėŝȚɆĐƪėɆƢŨɆƢķėɆƪŝĉėƎƢëļŝƢļėƖɆŨįɆƢķėɆƋëŝĐėśļĉȚɆŝŨƢɆ ƢŨɆƋƎŨĉėėĐɆǂļƢķɆƢķėɆǥǣǥǤɆëŒŒȯėśƋŒŨǈėėɆƖëŒëƎǈɆƎėǁļėǂɆǂķļĉķɆķëƖɆƎėƖƪŒƢėĐɆļŝɆƢķėɆŒŨǂɆŒėǁėŒɆŨįɆǈėëƎȯŨŝȯǈėëƎɆĉķëŝİėɆƖķŨǂŝɆëĈŨǁėșɆ¶ķėɆƖļİŝļǘĉëŝƢɆƋėƎĉėŝƢëİėɆĉķëŝİėɆļŝɆëŝŝƪëŒɆ ĈŨŝƪƖɆƎėǙėĉƢƖɆëŝɆŨƪƢƢƪƎŝɆŨįɆǤǣǣɼɆļŝɆǥǣǥǤɆĉŨśƋëƎėĐɆƢŨɆëɆĈŨŝƪƖɆƋëǈśėŝƢɆĉëƋƋėĐɆëƢɆƢëƎİėƢɆļŝɆǥǣǥǣɆȩǂķėŝɆƢķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂëļǁėĐɆƢķėļƎɆĈŨŝƪƖɆėŝƢļƢŒėśėŝƢȪș 133 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ¶ķėɆǥǣǥǤɆŝŝƪëŒɆ¡ėƋŨƎƢɆŨŝɆ¡ėśƪŝėƎëƢļŨŝɆĉŨŝƢëļŝƖɆĐėƢëļŒƖɆŨįɆƢķėɆƎėśƪŝėƎëƢļŨŝɆƋëļĐɆëŝĐɆëǂëƎĐėĐɆƢŨɆ$ļƎėĉƢŨƎƖɆĐƪƎļŝİɆƢķėɆǘŝëŝĉļëŒɆǈėëƎɆ ėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤșɆ¶ķļƖɆƎėƋŨƎƢɆķëƖɆĈėėŝɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆƋƎŨǁļƖļŨŝƖɆŨįɆƢķėɆŨśƋëŝļėƖɆĉƢɆǥǣǤǩȚɆ©ĉķėĐƪŒėɆǫɆŨįɆ ƢķėɆdëƎİėɆëŝĐɆnėĐļƪśɆ©ļǒėĐɆŨśƋëŝļėƖɆEƎŨƪƋƖɆȩĉĉŨƪŝƢƖɆëŝĐɆ¡ėƋŨƎƢƖȪɆȩśėŝĐśėŝƢȪɆ¡ėİƪŒëƢļŨŝƖɆǥǣǤǦɆȩƢķėɆȹ¡ėİƪŒëƢļŨŝƖȺȪȚɆƢķėɆdļƖƢļŝİɆ ¡ƪŒėƖɆŨįɆƢķėɆ½bɆDļŝëŝĉļëŒɆŨŝĐƪĉƢɆƪƢķŨƎļƢǈɆëŝĐɆƢķėɆ½bɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆŨĐėșɆŝɆëĐǁļƖŨƎǈɆƎėƖŨŒƪƢļŨŝɆƢŨɆëƋƋƎŨǁėɆƢķėɆŝŝƪëŒɆ ¡ėƋŨƎƢɆŨŝɆ¡ėśƪŝėƎëƢļŨŝɆëŝĐɆƢķėɆŝŝƪëŒɆ©ƢëƢėśėŝƢɆǂļŒŒɆĈėɆƋƪƢɆƢŨɆƖķëƎėķŨŒĐėƎƖɆëƢɆƢķėɆǥǣǥǥɆEnș ©ļŝİŒėɆǘİƪƎėɆŨįɆƎėśƪŝėƎëƢļŨŝɆƢëĈŒėɆȩëƪĐļƢėĐȪɆ ¶ķėɆƎėśƪŝėƎëƢļŨŝɆŨįɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȚɆƖķŨǂļŝİɆƢķėɆĈƎėëŏĐŨǂŝɆĈėƢǂėėŝɆĉŨśƋŨŝėŝƢƖɆǂļƢķɆĉŨśƋëƎëƢļǁėɆǘİƪƎėƖɆįŨƎɆƢķėɆƋƎļŨƎɆǘŝëŝĉļëŒɆ ǈėëƎȚɆļƖɆƖķŨǂŝɆĈėŒŨǂșɆDļİƪƎėƖɆƋƎŨǁļĐėĐɆķëǁėɆĈėėŝɆĉëŒĉƪŒëƢėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆ¡ėİƪŒëƢļŨŝƖșɆDƪƎƢķėƎɆļŝįŨƎśëƢļŨŝɆŨŝɆƢķėɆĉŨśƋŨŝėŝƢɆ ėŒėśėŝƢƖɆļƖɆƋƎŨǁļĐėĐɆļŝɆƖƪĈƖėƍƪėŝƢɆƖėĉƢļŨŝƖș Executive Directors Base salary ėŝėǘƢƖ Pension Annual ĈŨŝƪƖ Long-term incentive 1 Total ¶ŨƢëŒɆǘǇėĐɆ remuneration ¶ŨƢëŒɆǁëƎļëĈŒėɆ remuneration £000 £000 £000 £000 £000 £000 £000 £000ėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝ 2 2021 Ǫǣǫ 25 28 ǤȚǪǩǬ ȱ 2,530 ǪǩǤ ǤȚǪǩǬ 2020 ȱȱȱȱȱȱȱȱ ¡ŨĈɆÕŨŨĐ 3 2021 520 15 23 ǤȚǣǦǬ 3,844 5,441 558 4,883 2020 408 15 18 ȱǨǨǬ1,000 441 ǨǨǬ ¡ŨĈėƎƢɆLŨƖŏļŝ 4 2021 400 5 ȱ 800 ǦȚǨǥǬ ǧȚǪǦǧ 405 ǧȚǦǥǬ 2020 ȱȱȱȱȱȱȱȱ ©ķëǈɆ©ėİėǁ 5 2021 ǦǬȱȱȱȱǦǬǦǬȱ 2020 301 2 ȱȱȱ303 303 ȱ ǤșɆ ŝɆëƖƖƪśėĐɆƖķëƎėɆƋƎļĉėɆŨįɆǤȚǫǬǣƋɆķëƖɆĈėėŝɆƪƖėĐɆƢŨɆĉëŒĉƪŒëƢėɆƢķėɆǁëŒƪėɆŨįɆƢķėɆǥǣǤǬɆd¶QɆëǂëƎĐƖɆƖķŨǂŝɆįŨƎɆėëĉķɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǤșɆ¶ķļƖɆƎėƋƎėƖėŝƢƖɆƢķėɆ ëǁėƎëİėɆƖķëƎėɆƋƎļĉėɆŨǁėƎɆƢķėɆǘŝëŒɆƍƪëƎƢėƎɆŨįɆƢķėɆǥǣǥǤɆǘŝëŝĉļëŒɆǈėëƎșɆ¶ķėɆƋƎŨƋŨƎƢļŨŝɆŨįɆƢķėɆǁëŒƪėɆŨįɆƢķėɆǥǣǤǬɆd¶QɆƢķëƢɆļƖɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėɆƋƎļĉėɆëƋƋƎėĉļëƢļŨŝɆļƖɆǪǦșǥɼșɆ¶ķėɆ ǁëŒƪėƖɆƖķŨǂŝɆëŒƖŨɆļŝĉŒƪĐėɆƢķėɆǁëŒƪėɆŨįɆĐļǁļĐėŝĐɆėƍƪļǁëŒėŝƢƖɆƋëǈëĈŒėș ǥșɆ ėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝɆǂëƖɆëƋƋŨļŝƢėĐɆ,{ɆŨŝɆǥǤɆëŝƪëƎǈɆǥǣǥǤȚɆķëǁļŝİɆŌŨļŝėĐɆƢķėɆŨëƎĐɆëƖɆëɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆļŝɆǥǣǤǬșɆDėėƖɆƋëļĐɆĐƪƎļŝİɆǥǣǥǣɆëŝĐɆǥǣǥǤɆįŨƎɆķėƎɆƎŨŒėɆëƖɆëɆ pŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆëƎėɆƖķŨǂŝɆŨŝɆƋëİėɆǤǦǬșɆ ǦșɆ ¶ķėɆëśŨƪŝƢɆƖķŨǂŝɆļŝɆŒëƖƢɆǈėëƎȼƖɆƎėƋŨƎƢɆįŨƎɆ¡ŨĈɆÕŨŨĐɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆǥǣǤǫɆd¶QɆǂëƖɆĉëŒĉƪŒëƢėĐɆĈëƖėĐɆŨŝɆëŝɆëƖƖƪśėĐɆƖķëƎėɆƋƎļĉėɆŨįɆǤȚǣǦǨƋșɆ¶ķėɆëĉƢƪëŒɆƖķëƎėɆƋƎļĉėɆëƢɆǁėƖƢļŝİɆŨŝɆ ǦɆpŨǁėśĈėƎɆǥǣǥǤɆǂëƖɆǥȚǣǦǤƋșɆ¶ķėɆëśŨƪŝƢɆƖķŨǂŝɆįŨƎɆǥǣǥǣɆķëƖɆĈėėŝɆƪƋĐëƢėĐɆƢŨɆƎėǙėĉƢɆƢķļƖɆĉķëŝİėɆëŝĐɆƢķėɆǁëŒƪėɆŨįɆĐļǁļĐėŝĐɆėƍƪļǁëŒėŝƢƖɆƋëǈëĈŒėșɆ¶ķėɆƋƎŨƋŨƎƢļŨŝɆŨįɆƢķėɆǁëŒƪėɆŨįɆ ƢķėɆǥǣǤǫɆd¶QɆƢķëƢɆǂëƖɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėɆƋƎļĉėɆëƋƋƎėĉļëƢļŨŝɆļƖɆǨǣșǫɼșɆ ǧșɆ ¡ŨĈėƎƢɆLŨƖŏļŝɆǂëƖɆëƋƋŨļŝƢėĐɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎɆëŝĐɆƢŨɆƢķėɆŨëƎĐɆŨŝɆǤɆëŝƪëƎǈɆǥǣǥǤș ǨșɆ ©ķëǈɆ©ėİėǁɆƎėƖļİŝėĐɆįƎŨśɆƢķėɆŨëƎĐɆŨŝɆǥǤɆëŝƪëƎǈɆǥǣǥǤșɆ¶ķėɆd¶QɆëǂëƎĐɆİƎëŝƢėĐɆƢŨɆ©ķëǈɆļŝɆǥǣǤǬɆŒëƋƖėĐɆǂķėŝɆķėɆŒėįƢɆėśƋŒŨǈśėŝƢɆëŝĐɆƖŨɆŝļŒɆǁëŒƪėɆļƖɆƖķŨǂŝɆļŝɆƢķėɆƢëĈŒėɆëĈŨǁėș DƪƎƢķėƎɆļŝįŨƎśëƢļŨŝɆŨŝɆƢķėɆƖļŝİŒėɆǘİƪƎėɆŨįɆƎėśƪŝėƎëƢļŨŝɆƢëĈŒė Base salary ©ëŒëƎļėƖɆëƎėɆŝŨƎśëŒŒǈɆƎėǁļėǂėĐɆŨŝɆǤɆëŝƪëƎǈɆėëĉķɆǈėëƎș ƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆķëļƎȼƖɆƖƢëƢėśėŝƢɆŨŝɆƋëİėɆǤǤǩȚɆėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝɆǂëƖɆëƋƋŨļŝƢėĐɆ,{ɆŨŝɆǥǤɆëŝƪëƎǈɆǥǣǥǤɆŨŝɆëɆƖëŒëƎǈɆŨįɆ ɞǪǨǣȚǣǣǣșɆDėėƖɆƋëļĐɆƢŨɆėƢƢėɆĐƪƎļŝİɆǥǣǥǣɆëŝĐɆǥǣǥǤɆǂķėŝɆƖķėɆƖėƎǁėĐɆëƖɆëɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆëƎėɆƖķŨǂŝɆŨŝɆƋëİėɆǤǦǬș ¡ŨĈɆÕŨŨĐɆǂëƖɆŨŝɆëɆƖëŒëƎǈɆŨįɆɞǧǦǣȚǣǣǣɆƪŝƢļŒɆǥǣɆëŝƪëƎǈɆǥǣǥǤȚɆǂķļĉķɆļŝĉƎėëƖėĐɆƢŨɆɞǨǥǨȚǣǣǣɆįƎŨśɆǥǤɆëŝƪëƎǈɆǥǣǥǤɆǂķėŝɆķėɆǂëƖɆ ëƋƋŨļŝƢėĐɆëƖɆ$ėƋƪƢǈɆ,{ȚɆļŝɆëĐĐļƢļŨŝɆƢŨɆķļƖɆD{ɆƎėƖƋŨŝƖļĈļŒļƢļėƖș ¡ŨĈėƎƢɆLŨƖŏļŝɆǂëƖɆŨŝɆëɆƖëŒëƎǈɆŨįɆɞǧǣǣȚǣǣǣɆįƎŨśɆķļƖɆëƋƋŨļŝƢśėŝƢɆƢŨɆƢķėɆŨëƎĐɆŨŝɆǤɆëŝƪëƎǈɆǥǣǥǤș ©ķëǈɆ©ėİėǁɆǂëƖɆŨŝɆëɆƖëŒëƎǈɆŨįɆɞǩǪǨȚǣǣǣșɆLėɆŒėįƢɆƢķėɆŨëƎĐɆŨŝɆǥǤɆëŝƪëƎǈɆǥǣǥǤș ėŝėǘƢƖɆëŝĐɆƋėŝƖļŨŝ ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆśëǈɆƎėĉėļǁėɆƢëǇëĈŒėɆĈėŝėǘƢƖɆƖƪĉķɆëƖɆƋƎļǁëƢėɆśėĐļĉëŒɆëŝĐɆŒļįėɆļŝƖƪƎëŝĉėɆëŝĐɆĉëƎɆëŒŒŨǂëŝĉėș ėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝɆƎėĉėļǁėĐɆëɆĉëƎɆëŒŒŨǂëŝĉėɆŨįɆɞǥǨȚǣǣǣɆëŝĐȚɆįƎŨśɆnëǈɆǥǣǥǤȚɆëŝɆëŒŒŨǂëŝĉėɆļŝɆŒļėƪɆŨįɆëŝɆėśƋŒŨǈėƎɆƋėŝƖļŨŝɆ ĉŨŝƢƎļĈƪƢļŨŝɆėƍƪëŒɆƢŨɆǩɼɆŨįɆķėƎɆĈëƖėɆƖëŒëƎǈșɆɆĉëƖķɆëŒŒŨǂëŝĉėɆǂëƖɆëƋƋƎŨǁėĐɆĈǈɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆëƖɆėƢƢėɆļƖɆëɆ$ëŝļƖķɆƢëǇɆ ƎėƖļĐėŝƢɆëŝĐɆƢķėƎėįŨƎėɆŝŨƢɆëĈŒėɆƢŨɆƋëƎƢļĉļƋëƢėɆļŝɆëŝǈɆŨįɆƢķėɆEƎŨƪƋȼƖɆėǇļƖƢļŝİɆėśƋŒŨǈėėɆƋėŝƖļŨŝɆëƎƎëŝİėśėŝƢƖșɆ¶ķėɆƍƪëŝƢƪśɆļƖɆëŒļİŝėĐɆƢŨɆ ƢķėɆśëǇļśƪśɆĉŨśƋëŝǈɆĉŨŝƢƎļĈƪƢļŨŝɆëǁëļŒëĈŒėɆƢŨɆŨƢķėƎɆėśƋŒŨǈėėƖɆļŝɆƢķėɆ½bșɆ ¡ŨĈɆÕŨŨĐɆƎėĉėļǁėĐɆëɆĉëƎɆëŒŒŨǂëŝĉėɆŨįɆɞǤǣȚǪǣǣɆëŝĐɆƋëƎƢļĉļƋëƢėĐɆļŝɆƢķėɆĐėǘŝėĐɆĉŨŝƢƎļĈƪƢļŨŝɆƋėŝƖļŨŝɆëƎƎëŝİėśėŝƢƖɆǂķļĉķɆëƎėɆëǁëļŒëĈŒėɆŨŝɆ ƢķėɆƖëśėɆĈëƖļƖɆëƖɆįŨƎɆŨƢķėƎɆĉŨŒŒėëİƪėƖȚɆƎėĉėļǁļŝİɆëɆĉŨśƋëŝǈɆĉŨŝƢƎļĈƪƢļŨŝɆŨįɆǧșǨɼɆŨįɆķļƖɆĈëƖėɆƖëŒëƎǈș ¡ŨĈėƎƢɆLŨƖŏļŝɆëŝĐɆ©ķëǈɆ©ėİėǁɆŨƋƢėĐɆŨƪƢɆŨįɆƢķėɆƋėŝƖļŨŝɆƋŒëŝș Annual Report on Remuneration Entain plc | Annual Report 2021 134 Governance ǥǣǥǤɆëŝŝƪëŒɆĈŨŝƪƖɆ ¶ķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂėƎėɆėŒļİļĈŒėɆƢŨɆƋëƎƢļĉļƋëƢėɆļŝɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆįŨƎɆǥǣǥǤșɆ ¶ķėɆëŝŝƪëŒɆĈŨŝƪƖɆįƎëśėǂŨƎŏɆįŨƎɆǥǣǥǤɆǂëƖɆĈëƖėĐɆŨŝɆƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆƢķƎėėɆŏėǈɆśėëƖƪƎėƖɆįŨƎɆ,ŝƢëļŝȚɆƪŝĐėƎŒǈļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆ ƋƎŨǘƢȚɆƋƎėɆ½©ɆŌŨļŝƢɆǁėŝƢƪƎėɆȩǩǣɼȪȚɆİƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡ɆȩǥǨɼȪɆëŝĐɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆȩȹ©EȺȪɆȩǤǨɼȪșɆ¶ķėɆ©EɆśėƢƎļĉɆǂëƖɆļŝƢƎŨĐƪĉėĐɆ ļŝɆǥǣǥǤȚɆƪŝĐėƎɆƢķėɆŨǁėƎƖļİķƢɆŨįɆƢķėɆ,©EɆŨśśļƢƢėėȚɆëŝĐɆśŨƎėɆĐėƢëļŒɆŨŝɆƢķėɆëƖƖėƖƖśėŝƢɆŨįɆƢķėɆǘŝëŒɆŨƪƢƢƪƎŝɆĉëŝɆĈėɆįŨƪŝĐɆļŝɆƢķėɆ,©EɆ ŨśśļƢƢėėɆƎėƋŨƎƢɆŨŝɆƋëİėɆǤǤǣșɆƢɆƢķėɆƖƢëƎƢɆŨįɆƢķėɆǈėëƎɆƢķėɆŨśśļƢƢėėɆƖėƢɆƖƢƎėƢĉķļŝİɆƢëƎİėƢƖɆƪŝĐėƎɆƢķėƖėɆśėëƖƪƎėƖȚɆǂëƖɆƖëƢļƖǘėĐɆƢķëƢɆ ƢķėƖėɆƎėƋƎėƖėŝƢėĐɆĉķëŒŒėŝİļŝİɆĈƪƢɆƎėëŒļƖƢļĉɆƢëƎİėƢƖȚɆëŝĐɆƢķëƢɆƖļİŝļǘĉëŝƢɆŨƪƢȯƋėƎįŨƎśëŝĉėɆǂŨƪŒĐɆĈėɆƎėƍƪļƎėĐɆƢŨɆëĉķļėǁėɆëɆśëǇļśƪśɆƋëǈȯ ŨƪƢș ¶ķėɆƢëƎİėƢƖɆƖėƢɆįŨƎɆǘŝëŝĉļëŒɆśėƢƎļĉƖȚɆƢķėɆƋėƎįŨƎśëŝĉėɆëĉķļėǁėĐɆëİëļŝƖƢɆëŒŒɆśėƢƎļĉƖȚɆëŝĐɆƢķėɆƎėƖƪŒƢļŝİɆƋëǈȯŨƪƢɆļƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆƢëĈŒėɆĈėŒŨǂș Metric Weighting Threshold Target Stretch Actual Pay-out ëƖɇëɇɼɇŨį maximum for each metric Total weighting of each metric as a % of śëǇļśƪśɆĈŨŝƪƖɆ opportunity ½ŝĐėƎŒǈļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆ ƋƎŨǘƢ 1 60% ɞǨǦǪșǣś ɞǨǨǦșǩś ɞǨǫǤșǦś ɞǨǫǪșǨś 100% 60% EƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡ 2 25% ǤɼɆİƎŨǂƢķ ǦɼɆİƎŨǂƢķ ǨɼɆİƎŨǂƢķ ǤǦɼɆİƎŨǂƢķ 100% 25% Safer betting and gaming 3 15% ©ėėɆįŨŨƢŝŨƢėɆǦɆĈėŒŨǂ 100% 15% ¶ŨƢëŒɆëƖɆëɆɼɆŨįɆśëǇļśƪśɆŨƋƋŨƎƢƪŝļƢǈ 100% ǤșɆ QŝɆëƖƖėƖƖļŝİɆƢķėɆƪŝĐėƎŒǈļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆŨƪƢĉŨśėȚɆƢķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆƖėǁėƎëŒɆļƢėśƖȚɆǂķļĉķɆļśƋëĉƢėĐɆĈŨƢķɆƋŨƖļƢļǁėŒǈɆëŝĐɆŝėİëƢļǁėŒǈɆĐƪƎļŝİɆǥǣǥǤșɆQŝɆƎėëĉķļŝİɆ ƢķėļƎɆĉŨŝĉŒƪƖļŨŝȚɆëƖɆǂŨƪŒĐɆĈėɆėǇƋėĉƢėĐȚɆƢķėɆŨśśļƢƢėėɆķëǁėɆėǇĉŒƪĐėĐɆƢķėɆĈėŝėǘƢɆŨįɆįƪƎŒŨƪİķɆƋëǈśėŝƢƖɆƎėĉėļǁėĐɆĐƪƎļŝİɆǥǣǥǤșɆÕėɆķëǁėɆëŒƖŨɆėǇĉŒƪĐėĐɆƢķėɆŝėƢɆĈėŝėǘƢɆŨįɆ ëĉƍƪļƖļƢļŨŝƖȚɆëŝĐɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆƢėśƋŨƎëƎǈɆǂļƢķĐƎëǂëŒɆįƎŨśɆƢķėɆpėƢķėƎŒëŝĐƖɆśëƎŏėƢɆļŝɆƢķėɆįŨƪƎƢķɆƍƪëƎƢėƎɆŨįɆǥǣǥǤșɆȩ¶ķėɆëĉƢƪëŒɆǘİƪƎėɆƖķŨǂŝɆëĈŨǁėɆļƖɆƖƢëƢėĐɆëįƢėƎɆƢķėƖėɆ ëĐŌƪƖƢśėŝƢƖȪș ǥșɆÕķėŝɆƎėǁļėǂļŝİɆŨŝŒļŝėɆpE¡ɆƋėƎįŨƎśëŝĉėȚɆƢķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆśëǇļśƪśɆƋëǈȯŨƪƢɆǂëƖɆëƋƋƎŨƋƎļëƢėɆİļǁėŝɆƢķėɆŒėǁėŒɆŨįɆŨƪƢƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆƢķėɆƢëƎİėƢșɆÕķļŒƖƢɆ śļŝĐįƪŒɆŨįɆƢķėɆļśƋëĉƢɆŨŝɆƢķļƖɆśėƢƎļĉɆŨįɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉɆëŝĐɆļƢƖɆėįįėĉƢɆŨŝɆĉƪƖƢŨśėƎɆĈėķëǁļŨƪƎȚɆƢķėɆŨśśļƢƢėėɆǂėƎėɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆŨƪƢƋėƎįŨƎśëŝĉėɆëĉķļėǁėĐɆǂëƖɆŝŨƢɆ ƖŨŒėŒǈɆëɆƢėśƋŨƎëƎǈɆėįįėĉƢșɆ¶ķėɆŨśśļƢƢėėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėɆëĉķļėǁėśėŝƢɆƎėƋƎėƖėŝƢėĐɆȹƎėëŒȺɆİƎŨǂƢķɆëŝĐɆƢķėɆśëǇļśƪśɆƢëƎİėƢɆǂŨƪŒĐɆķëǁėɆĈėėŝɆėǇĉėėĐėĐɆǂļƢķŨƪƢɆƢķėɆƋŨƖļƢļǁėɆ ļśƋëĉƢɆŨįɆŨǁļĐȯǤǬɆƎėŒëƢėĐɆƎėƖƢƎļĉƢļŨŝƖș ǦșɆ QŝɆǥǣǥǤȚɆ,ŝƢëļŝɆļŝƢƎŨĐƪĉėĐɆëɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉɆƢŨɆŨƪƎɆëŝŝƪëŒɆĈŨŝƪƖɆĈëƖėĐɆŨŝɆƢķėɆĐėǁėŒŨƋśėŝƢɆŨįɆŨƪƎɆƋŒëǈėƎɆƋƎŨƢėĉƢļŨŝɆëŒİŨƎļƢķśƖșɆ¶ķėɆįƪŒŒɆśėƢƎļĉɆĉŨśƋƎļƖėĐɆŨįɆƢǂŨɆ ėƍƪëŒŒǈɆǂėļİķƢėĐɆƋëƎƢƖɆëƢɆǪșǨɼɆėëĉķɆȩǤǨɼɆļŝɆƢŨƢëŒȪț ȱɆ ½bɆśëƎŏėƢɆȱɆĈëƖėĐɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƋƎŨİƎėƖƖɆļŝɆƎŨŒŒļŝİɆŨƪƢɆŝėǂɆƖļİŝļǘĉëŝƢŒǈɆėŝķëŝĉėĐɆƋƎŨƢėĉƢļŨŝɆƢƎëĉŏėƎƖȚɆǂļƢķļŝɆƢķėɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢǈɆʁɆëƎėʆɆƋƎŨİƎëśśėȚɆǂļƢķɆƢķėɆëļśɆ ŨįɆļśƋƎŨǁļŝİɆŨƪƎɆëĈļŒļƢǈɆƢŨɆļĐėŝƢļįǈɆëŝĐɆƋƎŨǁļĐėɆƢëļŒŨƎėĐɆƖƪƋƋŨƎƢɆëŝĐɆļŝƢėƎëĉƢļŨŝƖɆƢŨɆƢķŨƖėɆśŨƖƢɆëƢɆƎļƖŏș ȱɆ QŝƢėƎŝëƢļŨŝëŒɆśëƎŏėƢɆȱɆĈëƖėĐɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƋƎŨİƎėƖƖɆļŝɆƎŨŒŒļŝİɆŨƪƢɆŝėǂɆśëƎŏėƎƖɆëŝĐɆëŒİŨƎļƢķśƖɆȩĈėƖƋŨŏėɆĈǈɆƢėƎƎļƢŨƎǈȪɆǂļƢķļŝɆëƢɆŒėëƖƢɆǤǣɆŒėƖƖɆśëƢƪƎėɆļŝƢėƎŝëƢļŨŝëŒɆśëƎŏėƢƖȚɆ ëƋƋŒǈļŝİɆŨƪƎɆŒėëƎŝļŝİƖɆëŝĐɆĈėƖƢɆƋƎëĉƢļĉėɆƢŨɆļśƋƎŨǁėɆŨƪƎɆƋŒëǈėƎɆƋƎŨƢėĉƢļŨŝɆŨįįėƎļŝİș Ɇ ,QɆ¡ļƖŏɆnëŝëİėśėŝƢȚɆƢķėɆŒėëĐļŝİɆİëśĈŒļŝİɆķëƎśɆśļŝļśļƖëƢļŨŝɆĉŨŝƖƪŒƢëŝĉǈȚɆļŝĐėƋėŝĐėŝƢŒǈɆƎėǁļėǂėĐɆƢķėɆǂŨƎŏɆĉëƎƎļėĐɆŨƪƢɆëŝĐɆƋƎŨǁļĐėĐɆëĐǁļĉėɆƢŨɆƢķėɆ,©EɆŨśśļƢƢėėɆǂķļĉķɆķëƖɆ ėŝëĈŒėĐɆļƢɆƢŨɆśëŏėɆëɆƎėĉŨśśėŝĐëƢļŨŝɆŨŝɆƢķėɆŨƪƢƢƪƎŝɆƢŨɆƢķėɆŨśśļƢƢėėșɆnŨƎėɆĐėƢëļŒɆŨŝɆƢķėɆëƖƖėƖƖśėŝƢɆŨįɆƢķėɆǘŝëŒɆŨƪƢƢƪƎŝɆĉëŝɆĈėɆįŨƪŝĐɆļŝɆƢķėɆ,©EɆŨśśļƢƢėėɆƎėƋŨƎƢɆŨŝɆƋëİėɆǤǤǣș ¶ķėɆŨśśļƢƢėėɆŝŨƢėĐɆƢķėɆŒėǁėŒɆŨįɆƋëǈȯŨƪƢȚɆǂķėŝɆëƖƖėƖƖėĐɆŨŝɆëɆįŨƎśƪŒëļĉɆĈëƖļƖȚɆǂķļĉķɆǂëƖɆƎėǙėĉƢļǁėɆŨįɆƢķėɆƖƢƎŨŝİɆpE¡ɆƋėƎįŨƎśëŝĉėɆëŝĐɆ ƢķėɆĉŨŝƖļƖƢėŝƢɆëĈļŒļƢǈɆŨįɆŨƪƎɆŨƋėƎëƢļŝİɆśŨĐėŒɆƢŨɆĐėŒļǁėƎɆĐļǁėƎƖļǘėĐɆëŝĐɆƖƪƖƢëļŝëĈŒėɆİƎŨǂƢķșɆQŝɆŒļŝėɆǂļƢķɆƢķėɆƋƎŨǁļƖļŨŝƖɆŨįɆƢķėɆ½bɆŨƎƋŨƎëƢėɆ EŨǁėƎŝëŝĉėɆŨĐėȚɆƢķėɆŨśśļƢƢėėɆĉëƎėįƪŒŒǈɆĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆƢķėɆƋƎŨƋŨƖėĐɆŨƪƢĉŨśėɆĉŨƪŒĐɆĈėɆŌƪƖƢļǘėĐɆļŝɆƢķėɆĉŨŝƢėǇƢɆŨįɆ,ŝƢëļŝȼƖɆŨǁėƎëŒŒɆ ƋėƎįŨƎśëŝĉėșɆQŝɆĐŨļŝİɆƖŨȚɆļƢɆĉŨŝƖļĐėƎėĐțɆ Ɇ ƪƖļŝėƖƖɆƋėƎįŨƎśëŝĉėɆĐƪƎļŝİɆǥǣǥǤȚɆļŝĉŒƪĐļŝİɆƋƎŨİƎėƖƖɆëİëļŝƖƢɆǘŝëŝĉļëŒȚɆŨƋėƎëƢļŨŝëŒȚɆëŝĐɆƖƢƎëƢėİļĉɆƢëƎİėƢƖȜɆ Ɇ ¶ķėɆƍƪëŒļƢǈɆŨįɆƪŝĐėƎŒǈļŝİɆėëƎŝļŝİƖɆëŝĐɆǂķėƢķėƎɆëŝǈɆƖļİŝļǘĉëŝƢɆŨŝėȯŨįįɆįëĉƢŨƎƖɆļŝǙƪėŝĉėĐɆƢķėɆƎėƖƪŒƢƖȜɆ Ɇ {ƪƎɆƎļƖŏɆëŝĐɆƎėƋƪƢëƢļŨŝëŒɆƋėƎįŨƎśëŝĉėȜɆ Ɇ ¶ķėɆļŝĐļǁļĐƪëŒɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȜɆëŝĐ Ɇ ,ŝƢëļŝȼƖɆƖķëƎėɆƋƎļĉėɆƋėƎįŨƎśëŝĉėɆëŝĐɆƢķėɆėǇƋėƎļėŝĉėɆŨįɆŨƪƎɆƖķëƎėķŨŒĐėƎƖɆŨǁėƎɆƢķėɆǈėëƎș ¶ķėɆŨśśļƢƢėėɆŝŨƢėĐɆƢķėɆEƎŨƪƋȼƖɆėǇĉėŒŒėŝƢɆŨƋėƎëƢļŨŝëŒɆëŝĐɆǘŝëŝĉļëŒɆƋƎŨİƎėƖƖɆĐƪƎļŝİɆƢķėɆǈėëƎȚɆëƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆǥǣǥǤɆEƎŨƪƋɆƋėƎįŨƎśëŝĉėɆ ķļİķŒļİķƢƖɆļŝɆƢķėɆķëļƎȼƖɆŒėƢƢėƎɆŨŝɆƋëİėɆǤǤǩșɆ ¶ëŏļŝİɆëŒŒɆƢķėɆëĈŨǁėɆįëĉƢŨƎƖɆļŝƢŨɆëĉĉŨƪŝƢȚɆƢķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆƢķëƢɆƢķėɆŨƪƢĉŨśėɆƪŝĐėƎɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆǂëƖɆŌƪƖƢļǘëĈŒėɆëŝĐɆëɆįëļƎɆ ƎėǙėĉƢļŨŝɆŨįɆŨǁėƎëŒŒɆ,ŝƢëļŝɆƋėƎįŨƎśëŝĉėɆĐƪƎļŝİɆƢķėɆǈėëƎȚɆëŝĐɆƢķėƎėįŨƎėɆĉŨŝĉŒƪĐėĐɆŝŨɆįƪƎƢķėƎɆĐļƖĉƎėƢļŨŝëƎǈɆëĐŌƪƖƢśėŝƢƖɆǂėƎėɆŝėĉėƖƖëƎǈșɆ ƖɆëɆƎėƖƪŒƢȚɆƢķėɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆƢķėɆǘŝëŒɆŨƪƢĉŨśėɆëŝĐɆëŝŝƪëŒɆĈŨŝƪƖɆƋëǈëĈŒėɆƢŨɆėëĉķɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆįŨƎɆǥǣǥǤș J Nygaard-Andersen 1 R Wood 2 R Hoskin ŨŝƪƖɆŨƋƋŨƎƢƪŝļƢǈɆȩɼɆŨįɆƖëŒëƎǈȪ 250% 200% 200% ©ëŒëƎǈɆėŒļİļĈŒėɆįŨƎɆǥǣǥǤɆĈŨŝƪƖ ɞǪǣǪȚǩǬǦ ɞǨǤǬȚǩǧǤ £400,000 {ƪƢĉŨśėț ȱɆƖɆɼɆŨįɆśëǇļśƪśɆĈŨŝƪƖ 100% 100% 100% ȱɆƖɆɼɆŨįɆƖëŒëƎǈ 250% 200% 200% ȱɆƖɆɞɆëśŨƪŝƢ ɞǤȚǪǩǬȚǥǦǦ ɞǤȚǣǦǬȚǥǫǥ £800,000 ǤșɆ ėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝȼƖɆĈŨŝƪƖɆėŒļİļĈŒėɆƖëŒëƎǈɆļƖɆƋƎŨȯƎëƢėĐɆƢŨɆƎėǙėĉƢɆķėƎɆëƋƋŨļŝƢśėŝƢɆëƖɆ,{ɆŨŝɆǥǤɆëŝƪëƎǈɆǥǣǥǤș ǥșɆ ¡ŨĈɆÕŨŨĐȼƖɆĈŨŝƪƖɆėŒļİļĈŒėɆƖëŒëƎǈɆļƖɆƋƎŨȯƎëƢėĐɆƢŨɆƎėǙėĉƢɆķļƖɆƖëŒëƎǈɆŨįɆɞǧǦǣȚǣǣǣɆįƎŨśɆǤɆëŝƪëƎǈɆƢŨɆǥǣɆëŝƪëƎǈɆǥǣǥǤȚɆëŝĐɆķļƖɆƖëŒëƎǈɆŨįɆɞǨǥǨȚǣǣǣȚɆėįįėĉƢļǁėɆǥǤɆëŝƪëƎǈɆǥǣǥǤș LëŒįɆŨįɆƢķėɆƢŨƢëŒɆĈŨŝƪƖɆļƖɆƋëļĐɆļŝɆĉëƖķɆįŨŒŒŨǂļŝİɆƢķėɆǈėëƎȯėŝĐȚɆǂķļŒėɆķëŒįɆļƖɆĐėįėƎƎėĐɆļŝƢŨɆƖķëƎėƖɆįŨƎɆƢķƎėėɆǈėëƎƖɆƪŝĐėƎɆƢķėɆ$ėįėƎƎėĐɆ ŨŝƪƖɆŒëŝșɆ 135 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Annual Report on Remuneration continued 2019 Long-Term Incentive Plan ¶ķėɆdŨŝİȯ¶ėƎśɆQŝĉėŝƢļǁėɆŒëŝɆǁëŒƪėƖɆƖķŨǂŝɆļŝɆƢķėɆƖļŝİŒėɆǘİƪƎėɆƢëĈŒėɆįŨƎɆǥǣǥǤɆƎėŒëƢėɆƢŨɆƢķėɆǁėƖƢļŝİɆŨįɆd¶QɆëǂëƎĐƖɆśëĐėɆļŝɆǥǣǤǬșɆ ¶ķėɆƢëƎİėƢƖɆëƢƢëĉķėĐɆƢŨɆƢķėɆǥǣǤǬɆd¶QɆëǂëƎĐƖɆëŝĐɆƢķėɆƋėƎįŨƎśëŝĉėɆŨƪƢĉŨśėɆëİëļŝƖƢɆƢķėƖėɆëƎėɆƖėƢɆŨƪƢɆĈėŒŨǂș Measure Weighting Threshold ȩǥǨɼɆǁėƖƢļŝİȪ Maximum ȩǤǣǣɼɆǁėƖƢļŝİȪ Entain performance Vesting ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆD¶©,ɆǨǤȯǤǨǣ 50% nėĐļëŝț ǧǬɼ ½ƋƋėƎɆƍƪëƎƢļŒėț 88% 161% 100% of maximum Cumulative adjusted EPS 50% 184p 214p ǥǥǪșǫƋ 100% of maximum Outcome 100% ©ƢƎëļİķƢȯŒļŝėɆǁėƖƢļŝİɇĈėƢǂėėŝ ƢķƎėƖķŨŒĐɇëŝĐɇśëǇļśƪś 100% of maximum QŝɆĉŨŝƖļĐėƎļŝİɆƢķėɆŨƪƢĉŨśėɆŨįɆƢķėɆ,©ɆėŒėśėŝƢɆŨįɆƢķėɆǥǣǤǬɆd¶QȚɆƢķėɆŨśśļƢƢėėɆŝŨƢėĐɆƢķëƢɆƢķėɆƎėƋŨƎƢėĐɆƎėƖƪŒƢɆįŨƎɆ,©ɆŨǁėƎɆƢķėɆƢķƎėėȯǈėëƎɆ ƋėƎįŨƎśëŝĉėɆƋėƎļŨĐɆėǇĉėėĐėĐɆƢķėɆƪƋƋėƎɆėŝĐɆŨįɆƢķėɆƢëƎİėƢɆƎëŝİėșɆQŝɆëƖƖėƖƖļŝİɆƢķėɆǘŝëŒɆŨƪƢĉŨśėȚɆƢķėɆŨśśļƢƢėėɆįƪƎƢķėƎɆƎėǁļėǂėĐɆƖėǁėƎëŒɆ ļƢėśƖɆƢķëƢɆļśƋëĉƢėĐɆ,©ȚɆĈŨƢķɆƋŨƖļƢļǁėɆëŝĐɆŝėİëƢļǁėȚɆĐƪƎļŝİɆƢķėɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐșɆ¶ķėɆĈėŝėǘƢɆŨįɆįƪƎŒŨƪİķɆƋëǈśėŝƢƖɆƎėĉėļǁėĐɆĐƪƎļŝİɆ ǥǣǥǣɆëŝĐɆǥǣǥǤɆķëǁėɆĈėėŝɆėǇĉŒƪĐėĐȚɆëƖɆķëƖɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆQD¡©ɆǤǩȚɆƢķėɆŝėƢɆĈėŝėǘƢɆŨįɆëĉƍƪļƖļƢļŨŝƖȚɆƢķėɆėǇļƢɆįƎŨśɆŨƪƎɆ ĈƪƖļŝėƖƖėƖɆļŝɆ©ǂļƢǒėƎŒëŝĐɆëŝĐɆƢķėɆpėƢķėƎŒëŝĐƖɆëŝĐɆƢķėɆļśƋëĉƢɆŨįɆƎėİƪŒëƢŨƎǈɆĉķëŝİėƖɆļŝɆEėƎśëŝǈșɆpŨŝėɆŨįɆƢķėƖėɆļƢėśƖɆǂėƎėɆƎėǙėĉƢėĐɆļŝɆ ƢķėɆŨƎļİļŝëŒɆ,©ɆƢëƎİėƢƖșɆ¶ķėɆƎėƖƪŒƢļŝİɆ,©ɆŨƪƢĉŨśėɆȩëƖɆƖķŨǂŝɆļŝɆƢķėɆƢëĈŒėɆëĈŨǁėȪɆĉŨŝƢļŝƪėƖɆƢŨɆėǇĉėėĐɆƢķėɆƪƋƋėƎɆėŝĐɆŨįɆƢķėɆƢëƎİėƢɆƎëŝİėșɆ QŝɆƢķėɆŨśśļƢƢėėȼƖɆǁļėǂȚɆƢķļƖɆŒėǁėŒɆŨįɆǁėƖƢļŝİɆįŨƎɆƢķļƖɆƋëƎƢɆŨįɆƢķėɆëǂëƎĐɆļƖɆëɆįëļƎɆëŝĐɆƎėëƖŨŝëĈŒėɆŨƪƢĉŨśėș ƖɆëŝɆëĐĐļƢļŨŝëŒɆĉķėĉŏȚɆƢķėɆŨśśļƢƢėėɆëƖƖėƖƖėĐɆǂķėƢķėƎɆ,ŝƢëļŝȼƖɆŨǁėƎëŒŒɆƋėƎįŨƎśëŝĉėɆŨǁėƎɆƢķėɆƢķƎėėɆǈėëƎƖɆŌƪƖƢļǘėĐɆƢķėɆĉŨśĈļŝėĐɆ ǁėƖƢļŝİɆŒėǁėŒɆŨįɆǤǣǣɼșɆQŝɆĐŨļŝİɆƖŨȚɆƢķėǈɆƢŨŨŏɆļŝƢŨɆëĉĉŨƪŝƢɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆëŝĐɆŨƋėƎëƢļŨŝëŒɆëĉķļėǁėśėŝƢƖɆŨǁėƎɆƢķļƖɆƋėƎļŨĐȚɆŨƪƎɆƖķëƎėɆ ƋƎļĉėɆƋėƎįŨƎśëŝĉėȚɆëŝĐɆŨƢķėƎɆĉŨŝƖļĐėƎëƢļŨŝƖɆƖƪĉķɆëƖɆƢķėɆƋƎŨİƎėƖƖɆǂėɆķëǁėɆśëĐėɆǂļƢķɆŨƪƎɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆëŝĐɆƖƪƖƢëļŝëĈļŒļƢǈɆ ƋƎŨİƎëśśėƖșɆ¶ķėɆŨśśļƢƢėėɆįŨƪŝĐɆļƢɆƋëƎƢļĉƪŒëƎŒǈɆƎėëƖƖƪƎļŝİɆƢķëƢɆŨǁėƎɆƢķėɆƋėƎļŨĐț Ɇ ÕėɆķëǁėɆƖėėŝɆĉŨŝƢļŝƪėĐɆėǇƋëŝƖļŨŝɆļŝƢŨɆŝėǂɆśëƎŏėƢƖɆǂļƢķɆƢķėɆĉŨśƋŒėƢļŨŝɆŨįɆƢķėɆëĉƍƪļƖļƢļŨŝƖɆŨįɆėƢșƋƢɆļŝɆŨƎƢƪİëŒɆëŝĐɆ,ŝŒëĈƖɆɆļŝɆƢķėɆ ëŒƢļĉƖȚɆëƖɆǂėŒŒɆëƖɆ½ŝļŏƎŝɆƢŨɆĐƎļǁėɆëĉĉėƖƖɆƢŨɆƢķėɆėƖƋŨƎƢƖɆƖŏļŒŒɆĈëƖėĐɆǂëİėƎļŝİɆśëƎŏėƢș Ɇ ėƢnEnȚɆŨƪƎɆŌŨļŝƢɆǁėŝƢƪƎėɆļŝɆƢķėɆ½©ȚɆļƖɆŝŨǂɆŒļǁėɆļŝɆǥǤɆśëƎŏėƢƖɆǂļƢķɆƖƢƎŨŝİɆśŨśėŝƢƪśɆëƖɆëɆŒėëĐļŝİɆƋŒëǈėƎɆǂķėƎėɆļƢɆŨƋėƎëƢėƖș Ɇ ¶ķėɆŨśƋëŝǈȼƖɆƖķëƎėɆƋƎļĉėɆķëĐɆļŝĉƎėëƖėĐɆĈǈɆǤǨǣɼɆįƎŨśɆǤɆëŝƪëƎǈɆǥǣǤǬɆƢŨɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆĐėƖƋļƢėɆļśƋëĉƢƖɆįƎŨśɆŨǁļĐȯǤǬɆļŝɆƢķėɆ ƖėĉŨŝĐɆëŝĐɆƢķļƎĐɆǈėëƎƖș ŒŒɆŨįɆƢķėƖėɆįëĉƢŨƎƖɆİëǁėɆƢķėɆŨśśļƢƢėėɆĉŨśįŨƎƢɆƢķëƢɆëɆǁėƖƢļŝİɆŨƪƢĉŨśėɆŨįɆǤǣǣɼɆŨįɆśëǇļśƪśɆǂëƖɆįëļƎɆëŝĐɆƎėëƖŨŝëĈŒėȚɆëŝĐɆëƋƋƎŨƋƎļëƢėŒǈɆ ƎėǙėĉƢėĐɆ,ŝƢëļŝȼƖɆƋėƎįŨƎśëŝĉėɆëŝĐɆǁëŒƪėɆĐėŒļǁėƎėĐɆƢŨɆƖķëƎėķŨŒĐėƎƖɆŨǁėƎɆƢķėɆƋėƎļŨĐș ¶ķėɆd¶QɆëǂëƎĐƖɆİƎëŝƢėĐɆļŝɆǥǣǤǬɆķëĐɆŝŨƢɆǁėƖƢėĐɆëƢɆƢķėɆƢļśėɆƢķļƖɆƎėƋŨƎƢɆǂëƖɆǘŝëŒļƖėĐȚɆëŝĐɆƖŨɆƢķėɆƎėƋŨƎƢėĐɆǁëŒƪėɆķëƖɆĈėėŝɆĈëƖėĐɆŨŝɆƢķėɆ ëǁėƎëİėɆƖķëƎėɆƋƎļĉėɆļŝɆƢķėɆŒëƖƢɆƢķƎėėɆśŨŝƢķƖɆŨįɆƢķėɆǘŝëŝĉļëŒɆǈėëƎȚɆǂķļĉķɆǂëƖɆǤȚǫǬǣƋșɆ¶ķėɆśëǇļśƪśɆǁëŒƪėɆŨįɆƢķėɆëǂëƎĐƖȚɆƢķėɆǁëŒƪėɆŨįɆƢķėɆ ëǂëƎĐƖɆļŝĉŒƪĐėĐɆļŝɆƢķėɆƖļŝİŒėɆǘİƪƎėɆŨįɆƎėśƪŝėƎëƢļŨŝɆƢëĈŒėɆëŝĐɆƢķėɆǁëŒƪėɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėɆƋƎļĉėɆśŨǁėśėŝƢɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂș Name LTIP shares ƪŝĐėƎɇëǂëƎĐ Maximum value of ëǂëƎĐɇëĉķļėǁëĈŒė % vesting LTIP shares vesting Value of shares vesting Value of dividend equivalents due 1 Total value of LTIP ȩƖļŝİŒėɇǘİƪƎėȪ Value ëƢƢƎļĈƪƢëĈŒėɆ ƢŨɆƖķëƎėɇƋƎļĉėɆ movement ¡ɆÕŨŨĐ ǤǬǪȚǣǧǧ ɞǦȚǪǥǧȚǤǦǥ 100% ǤǬǪȚǣǧǧ ɞǦȚǪǥǧȚǤǦǥ £120,204 £3,844,336 £2,845,323 ¡ɆLŨƖŏļŝ 180,886 ɞǦȚǧǤǫȚǪǧǨ 100% 180,886 ɞǦȚǧǤǫȚǪǧǨ ɞǤǤǣȚǦǨǪ ɞǦȚǨǥǬȚǤǣǥ £2,612,010 ǤșɆ ëƖėĐɆŨŝɆĐļǁļĐėŝĐƖɆƋëļĐɆļŝɆƢķėɆƋėƎļŨĐɆƖļŝĉėɆƢķėɆĐëƢėɆŨįɆİƎëŝƢɆƢŨɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤș 2021 Long-Term Incentive Plan Share awards granted during 2021 (audited) ¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆƖķëƎėɆëǂëƎĐƖɆİƎëŝƢėĐɆƢŨɆƢķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆĐƪƎļŝİɆǥǣǥǤɆƪŝĐėƎɆƢķėɆd¶QșɆpŨɆëǂëƎĐƖɆǂėƎėɆśëĐėɆƪŝĐėƎɆ ƢķėɆŝŝƪëŒɆʁɆ$ėįėƎƎėĐɆŨŝƪƖɆŒëŝɆëƖɆƢķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆǂëļǁėĐɆƢķėļƎɆėŝƢļƢŒėśėŝƢɆƢŨɆƎėĉėļǁėɆëɆĈŨŝƪƖɆƪŝĐėƎɆƢķėɆǥǣǥǣɆEƎŨƪƋɆëŝŝƪëŒɆ ĈŨŝƪƖɆƋŒëŝș Name Award type Grant date Face value of award Shares awarded 1 % vesting at threshold performance % vesting at maximum performance Performance conditions ɆpǈİëëƎĐȯ Andersen d¶Q ǥǧɆnëƎĉķɆǥǣǥǤ £2,250,000 ǤǧǪȚǨǧǣ 25% 100% See next page ¡ɆÕŨŨĐ d¶Q ǥǧɆnëƎĉķɆǥǣǥǤ £1,312,500 86,065 25% 100% See next page ¡ɆLŨƖŏļŝ d¶Q ǥǧɆnëƎĉķɆǥǣǥǤ £1,000,000 ǩǨȚǨǪǦ 25% 100% See next page ǤșɆ ©ķëƎėɆƋƎļĉėɆƪƖėĐɆįŨƎɆİƎëŝƢɆĉëŒĉƪŒëƢļŨŝƖɆļƖɆǤȚǨǥǨƋȚɆƢķėɆĉŒŨƖļŝİɆƖķëƎėɆƋƎļĉėɆŨŝɆƢķėɆĐëǈɆƋƎļŨƎɆƢŨɆİƎëŝƢș Entain plc | Annual Report 2021 136 Governance DŨƎɆƢķėɆǥǣǥǤɆd¶QȚɆƢķėɆŨśśļƢƢėėɆëİƎėėĐɆƢķëƢɆƢķėɆëǂëƎĐɆƖķŨƪŒĐɆĈėɆĈëƖėĐɆŨŝɆƢķėɆƖëśėɆśėëƖƪƎėƖɆëƖɆǥǣǥǣșɆ¶ķļƖɆƋƎŨǁļĐėƖɆëɆĈëŒëŝĉėɆŨįɆ ėǇƢėƎŝëŒɆƎėŒëƢļǁėɆƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆƋėėƎƖɆëŝĐɆƢķėɆĈƎŨëĐėƎɆśëƎŏėƢɆëƖɆǂėŒŒɆëƖɆëĈƖŨŒƪƢėɆǘŝëŝĉļëŒɆƋėƎįŨƎśëŝĉėɆǂļƢķɆƎėįėƎėŝĉėɆƢŨɆ,©Ɇ ǂķļĉķɆļƖɆëɆŏėǈɆƋėƎįŨƎśëŝĉėɆļŝĐļĉëƢŨƎɆįŨƎɆƢķėɆEƎŨƪƋșɆėƎįŨƎśëŝĉėɆįŨƎɆƢķėƖėɆëǂëƎĐƖɆǂļŒŒɆĈėɆśėëƖƪƎėĐɆŨǁėƎɆƢķėɆƋėƎļŨĐɆǤɆëŝƪëƎǈɆǥǣǥǤɆƢŨɆ ǦǤɆ$ėĉėśĈėƎɆǥǣǥǦș Measure Weighting ¶ķƎėƖķŨŒĐɆȩǥǨɼɆǁėƖƢļŝİȪ nëǇļśƪśɆȩǤǣǣɼɆǁėƖƢļŝİȪ ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆD¶©,ɆǤǣǣ {ŝėȯƢķļƎĐ nėĐļëŝ ½ƋƋėƎɇƍƪëƎƢļŒė ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆĈėƖƋŨŏėɆƋėėƎɆİƎŨƪƋ 1 {ŝėȯƢķļƎĐ Cumulative adjusted EPS {ŝėȯƢķļƎĐ 255p ǥǬǩƋ ©ƢƎëļİķƢȯŒļŝėɆǁėƖƢļŝİɆĈėƢǂėėŝɆƢķƎėƖķŨŒĐɆëŝĐɆśëǇļśƪś ǤșɆ ¶ķėɆĈėƖƋŨŏėɆƋėėƎɆİƎŨƪƋɆĉŨśƋƎļƖėƖɆƢķėɆįŨŒŒŨǂļŝİɆĉŨśƋëŝļėƖɆįŨƎɆƢķėɆǥǣǥǤɆëǂëƎĐƖțɆǫǫǫɆLŨŒĐļŝİƖȚɆėƢƖƖŨŝȚɆëėƖëƎƖɆ,ŝƢėƎƢëļŝśėŝƢȚɆ,ǁŨŒƪƢļŨŝɆEëśļŝİɆEƎŨƪƋȚɆDŒƪƢƢėƎɆ,ŝƢėƎƢëļŝśėŝƢȚɆ EëśėƖǈƖȚɆQŝƢėƎŝëƢļŨŝëŒɆEëśėɆ¶ėĉķŝŨŒŨİǈȚɆbļŝĐƎėĐɆEƎŨƪƋȚɆŒëǈƢėĉķȚɆ¡ëŝŏɆEƎŨƪƋɆëŝĐɆ¶ëĈŨƎƋɆLŨŒĐļŝİƖș ¶ķėɆŨśśļƢƢėėɆǂëƖɆĉŨśįŨƎƢëĈŒėɆƢķëƢɆƢķėɆ,©ɆƢëƎİėƢƖɆƎėƋƎėƖėŝƢėĐɆƖƢƎėƢĉķļŝİɆƋėƎįŨƎśëŝĉėȚɆǂļƢķɆśëŝëİėśėŝƢɆƎėƍƪļƎėĐɆƢŨɆĐėŒļǁėƎɆƢķƎėėȯɆ ǈėëƎɆE¡ɆļŝɆ,©ɆŨįɆǤǩɼɆƢŨɆƎėëĉķɆśëǇļśƪśɆǁėƖƢļŝİș ¶ķėɆƢėƎśƖɆŨįɆƢķėɆǥǣǥǤɆëǂëƎĐƖɆƋƎŨǁļĐėɆƢķėɆŨśśļƢƢėėɆǂļƢķɆƢķėɆëĈļŒļƢǈɆƢŨɆƎėǁļėǂɆƢķėɆŨƪƢĉŨśėɆëƢɆǁėƖƢļŝİɆëŝĐɆƢŨɆśëŏėɆëƋƋƎŨƋƎļëƢėɆ ëĐŌƪƖƢśėŝƢƖɆļįɆļƢɆĉŨŝĉŒƪĐėƖɆƢķëƢɆƋëƎƢļĉļƋëŝƢƖɆķëǁėɆĈėŝėǘƢėĐɆįƎŨśɆȹǂļŝĐįëŒŒɆİëļŝƖȺɆŨǁėƎɆƢķėɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐșɆ¶ķėɆŨśśļƢƢėėɆëŒƖŨɆ ƎėƢëļŝƖɆƢķėɆëĈļŒļƢǈȚɆƪŝĐėƎɆƢķėɆƢėƎśƖɆŨįɆƢķėɆŨŒļĉǈȚɆƢŨɆėǇėƎĉļƖėɆĐļƖĉƎėƢļŨŝɆƢŨɆŨǁėƎƎļĐėɆƢķėɆįŨƎśƪŒëļĉɆŨƪƢĉŨśėƖɆļįɆļƢɆĈėŒļėǁėƖɆƢķëƢɆƢķėɆŨƪƢƢƪƎŝɆļƖɆ ŝŨƢɆëƋƋƎŨƋƎļëƢėș Shareholdings and share interests (audited) ©ķëƎėķŨŒĐļŝİɆİƪļĐėŒļŝėƖ ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƍƪļƎėĐɆƢŨɆśëļŝƢëļŝɆëɆƖķëƎėķŨŒĐļŝİɆëƖɆĐėƢėƎśļŝėĐɆĈǈɆƢķėɆŨśśļƢƢėėɆëŝĐɆƎėƢëļŝɆƢķļƖɆįŨƎɆëɆƋėƎļŨĐɆŨįɆƢļśėɆįŨŒŒŨǂļŝİɆ ĉėƖƖëƢļŨŝɆįƎŨśɆƢķėɆƎŨŒėșɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëƎėɆėǇƋėĉƢėĐɆƢŨɆĈƪļŒĐɆƪƋɆƢķėļƎɆƖķëƎėķŨŒĐļŝİɆŨǁėƎɆëɆƋėƎļŨĐɆŨįɆǘǁėɆǈėëƎƖɆįƎŨśɆƢķėɆĐëƢėɆŨįɆ ëƋƋŨļŝƢśėŝƢɆëƖɆëŝɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆȩŨƎȚɆļįɆŒëƢėƎȚɆįƎŨśɆƢķėɆĐëƢėɆŨįɆëŝǈɆĉķëŝİėɆƢŨɆƢķėɆƢėƎśƖɆŨįɆƢķėɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢȪșɆ©ķëƎėƖɆƢķëƢɆ ĉŨƪŝƢɆƢŨǂëƎĐƖɆƢķėɆƎėƍƪļƎėśėŝƢɆëƎėɆƢķŨƖėɆƢķëƢɆëƎėɆĈėŝėǘĉļëŒŒǈɆŨǂŝėĐȚɆëŝǈɆǁėƖƢėĐɆƖķëƎėɆëǂëƎĐƖɆƖƪĈŌėĉƢɆƢŨɆëɆķŨŒĐļŝİɆƋėƎļŨĐɆëŝĐɆƪŝǁėƖƢėĐɆ ĐėįėƎƎėĐɆĈŨŝƪƖɆƖķëƎėƖɆȩŨŝɆëŝɆëįƢėƎȯƢëǇɆĈëƖļƖȪșɆ¶ķėɆĉƪƎƎėŝƢɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢƖɆëƎėț Ɇ ,{ɆȱɆǧǣǣɼɆŨįɆĈëƖėɆƖëŒëƎǈș Ɇ {ƢķėƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆȱɆǥǣǣɼɆŨįɆĈëƖėɆƖëŒëƎǈș QŝɆŒļŝėɆǂļƢķɆƢķėɆƋƎŨǁļƖļŨŝƖɆŨįɆƢķėɆ½bɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆŨĐėȚɆƢķėɆŨśśļƢƢėėɆķëƖɆļśƋŒėśėŝƢėĐɆƋŨƖƢȯėśƋŒŨǈśėŝƢɆƖķëƎėķŨŒĐļŝİɆ ƎėƍƪļƎėśėŝƢƖɆįŨƎɆƢķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆƢķėǈɆƎėśëļŝɆëŒļİŝėĐɆǂļƢķɆƖķëƎėķŨŒĐėƎƖɆįŨƎɆëɆƋėƎļŨĐɆëįƢėƎɆƢķėǈɆƖƢėƋɆĐŨǂŝɆįƎŨśɆ ƢķėɆŨëƎĐșɆ¶ķėɆŨśśļƢƢėėɆėǇƋėĉƢƖɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆƢŨɆśëļŝƢëļŝɆǤǣǣɼɆŨįɆƢķėļƎɆİƪļĐėŒļŝėɆȩŨƎɆƢķėļƎɆëĉƢƪëŒɆķŨŒĐļŝİɆļįɆŒŨǂėƎȪɆįŨƎɆƢǂŨɆǈėëƎƖɆ įŨŒŒŨǂļŝİɆĐėƋëƎƢƪƎėșɆ©ķëƎėƖɆƋƪƎĉķëƖėĐɆĈǈɆƢķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆŨƪƢɆŨįɆƢķėļƎɆŨǂŝɆįƪŝĐƖɆǂļŒŒɆŝŨƢɆĉŨƪŝƢɆƢŨǂëƎĐƖɆƢķėƖėɆİƪļĐėŒļŝėƖșɆ¶ŨɆëƖƖļƖƢɆ ļŝɆƢķėɆļśƋŒėśėŝƢëƢļŨŝɆŨįɆƢķėɆƋŨƖƢȯėśƋŒŨǈśėŝƢɆƖķëƎėķŨŒĐļŝİɆİƪļĐėŒļŝėɆŨƪƎɆƋŨŒļĉǈɆļŝĉŒƪĐėƖɆƢķėɆƋŨƢėŝƢļëŒɆƢŨɆƎėƍƪļƎėɆŒėëǁėƎƖɆƢŨɆĐėƋŨƖļƢɆƢķėɆ ƎėƍƪļƖļƢėɆŝƪśĈėƎɆŨįɆƖķëƎėƖɆļŝƢŨɆëɆƢƎƪƖƢɆŨƎɆŝŨśļŝėėɆëƎƎëŝİėśėŝƢșɆQŝɆƢķėɆĉëƖėɆŨįɆİŨŨĐɆŒėëǁėƎƖȚɆįƪƢƪƎėɆǁėƖƢļŝİƖɆśëǈɆĈėɆśëĐėɆƖƪĈŌėĉƢɆƢŨɆ ëĐķėƎėŝĉėɆƢŨɆƢķėɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢș 137 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Annual Report on Remuneration continued ©ķëƎėɆļŝƢėƎėƖƢƖ ƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆƢķėɆǁëŒƪėɆŨįɆėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝȚɆ¡ŨĈɆÕŨŨĐɆëŝĐɆ¡ŨĈėƎƢɆLŨƖŏļŝȼƖɆĈėŝėǘĉļëŒɆƖķëƎėķŨŒĐļŝİƖɆǂėƎėɆɞǣșǥśȚɆ ɞǤșǣśɆëŝĐɆɞǤșǥśɆƎėƖƋėĉƢļǁėŒǈșɆDŨŒŒŨǂļŝİɆƢķėļƎɆëƋƋŨļŝƢśėŝƢƖɆƢŨɆƢķėɆŨëƎĐȚɆėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝȚɆļŝɆǥǣǥǤȚɆëŝĐɆ¡ŨĈɆÕŨŨĐȚɆļŝɆǥǣǤǬȚɆ ĉŨŝƢļŝƪėɆƢŨɆĈƪļŒĐɆƪƋɆƢķėļƎɆķŨŒĐļŝİƖɆļŝɆ,ŝƢëļŝɆƖķëƎėƖșɆ¡ŨĈėƎƢɆLŨƖŏļŝɆǂëƖɆëƋƋŨļŝƢėĐɆƢŨɆƢķėɆŨëƎĐɆļŝɆǥǣǥǤɆëŝĐɆśėėƢƖɆķļƖɆƖķëƎėķŨŒĐļŝİɆ ƎėƍƪļƎėśėŝƢɆŨįɆǥǣǣɼɆŨįɆĈëƖėɆƖëŒëƎǈș ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆƖķëƎėɆļŝƢėƎėƖƢƖɆëƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëƎėɆƖėƢɆŨƪƢɆĈėŒŨǂș Share interests ƖƪĈŌėĉƢɆƢŨ performance conditions Share interests not ƖƪĈŌėĉƢɆƢŨ performance conditions Name pƪśĈėƎɆŨįɆ ĈėŝėǘĉļëŒŒǈɆ owned shares 1 Share awards Share options Share awards Share options ¶ŨƢëŒɇļŝƢėƎėƖƢƖɆ ëƢɆǦǤɇ$ėĉėśĈėƎɆ 2021 Value of shares ķėŒĐɇëƖɇɼɇŨįɆ ĈëƖėɇƖëŒëƎǈ 2 Shareholding requirement met? ɆpǈİëëƎĐȯŝĐėƎ Ɩėŝ ǬȚ Ǭ ǣ ǣ ǤǧǪȚǨǧ ǣ ȱ ȱ ȱ ǤǨǪȚǧǧ ǣ 22% N ¡ɆÕŨŨĐ 40,052 ǧǤǬȚǬǤǥ ȱ ǦǬȚǣǩǪ ȱ ǧǬǬȚǣǦǤ ǤǬǨɼ N ¡ɆLŨƖŏļŝ 3 ǩǬȚǧǦǨ ȱ ǦǩǨȚǩǤǬ ȱ ȱ 435,054 ǥǬǥɼ Y S Segev 4 1,602,800 ȱǩǩǦȚǬǨǫȱ53,352 2,320,110 ŝȦë ŝȦë ǤșɆ ėŝėǘĉļëŒŒǈɆŨǂŝėĐɆƖķëƎėƖɆļŝĉŒƪĐėɆƖķëƎėƖɆķėŒĐɆĐļƎėĉƢŒǈɆŨƎɆļŝĐļƎėĉƢŒǈɆĈǈɆĉŨŝŝėĉƢėĐɆƋėƎƖŨŝƖșɆ¶ķėɆǁëŒƪėɆŨįɆɞǣșǥśȚɆɞǤșǣśɆëŝĐɆɞǤșǥśɆįŨƎɆėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝȚɆ¡ŨĈɆÕŨŨĐɆëŝĐɆ ¡ŨĈėƎƢɆLŨƖŏļŝɆƎėƖƋėĉƢļǁėŒǈɆļƖɆĈëƖėĐɆŨŝɆƢķėɆĉŒŨƖļŝİɆƖķëƎėɆƋƎļĉėɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆȩǤȚǩǫǦƋȪșɆ¶ķėƎėɆǂėƎėɆŝŨɆĉķëŝİėƖɆļŝɆƢķėɆŝƪśĈėƎɆŨįɆĈėŝėǘĉļëŒŒǈɆŨǂŝėĐɆƖķëƎėƖɆįŨƎɆëŝǈɆ ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆĈėƢǂėėŝɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëŝĐɆƢķėɆĐëƢėɆƢķļƖɆƎėƋŨƎƢɆǂëƖɆƖļİŝėĐș ǥșɆ QŝɆŒļŝėɆǂļƢķɆŨƪƎɆƖķëƎėķŨŒĐļŝİɆƋŨŒļĉǈȚɆƢķėɆǁëŒƪėɆŨįɆƖķëƎėƖɆķėŒĐɆëƖɆëɆƋėƎĉėŝƢëİėɆŨįɆĈëƖėɆƖëŒëƎǈɆļŝĉŒƪĐėƖɆƖķëƎėƖɆŨǂŝėĐɆĈǈɆƢķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƢķėɆëįƢėƎȯƢëǇɆƖķëƎėƖɆķėŒĐɆƪŝĐėƎɆ ƢķėɆŝŝƪëŒɆʁɆ$ėįėƎƎėĐɆŨŝƪƖɆŒëŝșɆ¶ķėɆǁëŒƪėɆŨįɆƖķëƎėķŨŒĐļŝİɆļƖɆĈëƖėĐɆŨŝɆƢķėɆĉŒŨƖļŝİɆƖķëƎėɆƋƎļĉėɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆȩǤȚǩǫǦƋȪș ǦșɆ QŝɆŒļŝėɆǂļƢķɆŨƪƎɆĈėŒŨǂɆŨëƎĐɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈȚɆ¡ŨĈėƎƢɆLŨƖŏļŝɆƎėĉėļǁėĐɆëɆĉëƖķɆëǂëƎĐɆŨįɆɞǪǨǣȚǣǣǣɆļŝɆƪİƪƖƢɆǥǣǥǣȚɆǂķļĉķɆǂļŒŒɆĈėɆƋëǈëĈŒėɆļŝɆëŝƪëƎǈɆǥǣǥǧȚɆƖƪĈŌėĉƢɆƢŨɆĉŨŝƢļŝƪėĐɆ ėśƋŒŨǈśėŝƢș ǧșɆ ƖɆëɆįŨƎśėƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎȚɆƢķėɆļŝįŨƎśëƢļŨŝɆƖķŨǂŝɆëĈŨǁėɆįŨƎɆ©ķëǈɆ©ėİėǁɆƎėǙėĉƢƖɆƢķėɆƋŨƖļƢļŨŝɆŨŝɆǥǤɆëŝƪëƎǈɆǥǣǥǤȚɆƢķėɆĐëƢėɆķėɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐșɆ¶ķėɆǩǩǦȚǬǨǫɆ ƖķëƎėɆŨƋƢļŨŝƖɆķėŒĐȚɆƖƪĈŌėĉƢɆƢŨɆƋėƎįŨƎśëŝĉėɆĉŨŝĐļƢļŨŝƖȚɆŒëƋƖėĐɆǂķėŝɆķėɆŒėįƢɆėśƋŒŨǈśėŝƢɆëŝĐɆƢķėɆƖķëƎėɆŨƋƢļŨŝƖȚɆŝŨƢɆƖƪĈŌėĉƢɆƢŨɆƋėƎįŨƎśëŝĉėɆĉŨŝĐļƢļŨŝƖȚɆǁėƖƢėĐɆƪŝĐėƎɆƢķėɆǥǣǤǪɆd¶QɆ ëǂëƎĐɆëŝĐɆǂėƎėɆėǇėƎĉļƖėĐɆļŝɆnëƎĉķɆǥǣǥǤș ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆƖėƎǁļĉėɆĉŨŝƢƎëĉƢƖɆëŝĐɆėǇƢėƎŝëŒɆëƋƋŨļŝƢśėŝƢƖ ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆķëǁėɆƎŨŒŒļŝİɆĉŨŝƢƎëĉƢƖȚɆƢėƎśļŝëĈŒėɆĈǈɆėļƢķėƎɆƋëƎƢǈɆİļǁļŝİɆƢķėɆëƋƋƎŨƋƎļëƢėɆŝŨƢļĉėș Director Date appointed Arrangement Notice period ɆpǈİëëƎĐȯŝĐėƎƖėŝ ǥǤɆëŝƪëƎǈɆǥǣǥǤ Service contract 12 months ¡ɆÕŨŨĐ ǨɆnëƎĉķɆǥǣǤǬ Service contract 12 months ¡ɆLŨƖŏļŝ ǤɆëŝƪëƎǈɆǥǣǥǤ Service contract 12 months ©ƪĈŌėĉƢɆƢŨɆŨëƎĐɆëƋƋƎŨǁëŒȚɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëƎėɆëĈŒėɆƢŨɆëĉĉėƋƢɆëƋƋƎŨƋƎļëƢėɆŨƪƢƖļĐėɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆëƋƋŨļŝƢśėŝƢƖɆƋƎŨǁļĐėĐɆƢķėɆ ëİİƎėİëƢėɆĉŨśśļƢśėŝƢɆļƖɆĉŨśƋëƢļĈŒėɆǂļƢķɆƢķėļƎɆĐƪƢļėƖɆëƖɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖșɆ¶ķėɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆĉŨŝĉėƎŝėĐɆśëǈɆƎėƢëļŝɆįėėƖɆƋëļĐɆ įŨƎɆƢķėƖėɆƖėƎǁļĉėƖșɆėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝɆļƖɆëɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆŨįɆŨŒŨƋŒëƖƢɆȦ©ɆëŝĐɆļŝɆǥǣǥǤɆƖķėɆǂëƖɆƋëļĐɆįėėƖɆŨįɆǩǣǣȚǣǣǣɆ$bbɆ ǂķļĉķɆƖķėɆƎėƢëļŝėĐșɆ¶ķėɆŨƢķėƎɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆĐŨɆŝŨƢɆĉƪƎƎėŝƢŒǈɆķŨŒĐɆëŝǈɆėǇƢėƎŝëŒɆëƋƋŨļŝƢśėŝƢƖș ëǈśėŝƢƖɆįŨƎɆŒŨƖƖɆŨįɆŨįǘĉėɆȩëƪĐļƢėĐȪ ƖɆëŝŝŨƪŝĉėĐɆŨŝɆǤǤɆëŝƪëƎǈɆǥǣǥǤȚɆ©ķëǈɆ©ėİėǁɆƎėƖļİŝėĐɆįƎŨśɆ,ŝƢëļŝɆƢŨɆƢëŏėɆƪƋɆëɆŝėǂɆƎŨŒėșɆLėɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐɆŨŝɆ ǥǤɆëŝƪëƎǈɆëŝĐɆŒėįƢɆėśƋŒŨǈśėŝƢɆŨŝɆǦǤɆnëǈɆǥǣǥǤșɆQŝɆŒļŝėɆǂļƢķɆŨƪƎɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉǈț Ɇ ©ķëǈɆƎėĉėļǁėĐɆɞǥǧǦȚǬǤǥɆļŝɆƖëŒëƎǈɆëŝĐɆĈėŝėǘƢƖɆĈėƢǂėėŝɆǥǥɆëŝƪëƎǈɆǥǣǥǤɆëŝĐɆƢķėɆĐëƢėɆŨįɆƢėƎśļŝëƢļŨŝȜɆķļƖɆƖëŒëƎǈɆƎėśëļŝėĐɆƪŝĉķëŝİėĐɆ ëƢɆǤɆëŝƪëƎǈɆǥǣǥǤșɆ©ķëǈȼƖɆƖëŒëƎǈɆëŝĐɆĈėŝėǘƢƖɆƎėĉėļǁėĐɆƪƋɆƢŨɆǥǤɆëŝƪëƎǈɆǥǣǥǤɆëƎėɆƖķŨǂŝɆļŝɆƢķėɆƖļŝİŒėɆǘİƪƎėɆƢëĈŒėɆŨŝɆƋëİėɆǤǦǧș Ɇ {ƪƢƖƢëŝĐļŝİɆëǂëƎĐƖɆƪŝĐėƎɆƢķėɆd¶QɆŒëƋƖėĐɆǂķėŝɆķėɆŒėįƢɆėśƋŒŨǈśėŝƢɆŨįɆƢķėɆEƎŨƪƋɆëƢɆƢķėɆėŝĐɆŨįɆnëǈɆǥǣǥǤș Ɇ pŨɆëŝŝƪëŒɆĈŨŝƪƖɆǂëƖɆƋëǈëĈŒėɆļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǤș Ɇ QŝɆŒļŝėɆǂļƢķɆŨƪƎɆƋŨƖƢȯėśƋŒŨǈśėŝƢɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢɆƋŨŒļĉǈȚɆ©ķëǈɆļƖɆƎėƍƪļƎėĐɆƢŨɆśėėƢɆķļƖɆįƪŒŒɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢɆŨįɆǧǣǣɼɆ įŨƎɆƢǂŨɆǈėëƎƖɆįŨŒŒŨǂļŝİɆķļƖɆĐėƋëƎƢƪƎėș ëǈśėŝƢƖɆƢŨɆƋëƖƢɆ$ļƎėĉƢŨƎƖɆȩëƪĐļƢėĐȪ bėŝŝėƢķɆŒėǇëŝĐėƎɆƎėƢļƎėĐɆëƖɆ,{ɆŨŝɆǤǪɆƪŒǈɆǥǣǥǣɆëŝĐɆįƪŒŒɆĐėƢëļŒƖɆŨįɆķļƖɆŒėëǁļŝİɆëƎƎëŝİėśėŝƢƖɆĉëŝɆĈėɆįŨƪŝĐɆļŝɆƢķėɆǥǣǥǣɆ$ļƎėĉƢŨƎƖȼɆ ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢșɆ¶ķļƖɆļŝĉŒƪĐėƖɆƢķėɆƎėƍƪļƎėśėŝƢȚɆƪŝĐėƎɆƢķėɆŨŒļĉǈȚɆƢŨɆśëļŝƢëļŝɆëɆƖķëƎėķŨŒĐļŝİɆŨįɆǧǣǣɼɆŨįɆƖëŒëƎǈɆįŨƎɆƢǂŨɆǈėëƎƖɆ įŨŒŒŨǂļŝİɆķļƖɆĐėƋëƎƢƪƎėșɆ¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆĐėƢëļŒƖɆŨįɆƢķėɆ$ɆëŝĐɆd¶QɆëǂëƎĐƖȚɆśëĐėɆļŝɆǥǣǤǫȚɆǂķļĉķɆǂėƎėɆĈŨƢķɆƎėŒėëƖėĐɆƢŨɆķļśɆ ŨŝɆƢķėɆŨƎĐļŝëƎǈɆǁėƖƢļŝİɆĐëƢėɆŨįɆǥǣɆ©ėƋƢėśĈėƎɆǥǣǥǤșɆ¶ķėɆǥǣǤǫɆd¶QɆëǂëƎĐɆǂëƖɆƋƎŨȯƎëƢėĐɆįŨƎɆƢļśėɆƖėƎǁėĐɆĐƪƎļŝİɆƢķėɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐɆ ëƖɆǂėŒŒɆëƖɆƢķėɆƋėƎįŨƎśëŝĉėɆĉŨŝĐļƢļŨŝșɆLėɆëŒƖŨɆƎėĉėļǁėĐɆĐļǁļĐėŝĐɆėƍƪļǁëŒėŝƢƖɆŨŝɆëŒŒɆŨįɆƢķėɆǁėƖƢėĐɆƖķëƎėƖș Award End of performance period pƪśĈėƎɆŨįɆƖķëƎėƖ ǥǣǤǫɆd¶Q 31 December 2020 ǤǤǫȚǣǦǬ ǥǣǤǫɆ$ 20 September 2021 ǤǣǣȚǨǪǩ Entain plc | Annual Report 2021 138 Governance ķëļƎśëŝɆëŝĐɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖ ©ļŝİŒėɆǘİƪƎėɆŨįɆƎėśƪŝėƎëƢļŨŝɆƢëĈŒėɆȩëƪĐļƢėĐȪ ¶ķėɆƎėśƪŝėƎëƢļŨŝɆŨįɆƢķėɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆļƖɆƖķŨǂŝɆĈėŒŨǂșɆ Non-Executive Directors Fees 1 £000 ėŝėǘƢƖ £000 Annual ĈŨŝƪƖ £000 Long-term incentives £000 Pension £000 Total £000 ¶ŨƢëŒɆǘǇėĐɆ remuneration ¶ŨƢëŒɆǁëƎļëĈŒėɆ remuneration ëƎƎǈɆEļĈƖŨŝ 2 2021 450 ȱȱȱȱ450 450 ȱ 2020 428 ȱȱȱȱ428 428 ȱ ļėƎƎėɆŨƪĉķƪƢ 2 2021 108 ȱȱȱȱ108 108 ȱ 2020 106 ȱȱȱȱ106 106 ȱ Stella David 3 2021 128 ȱȱȱȱ128 128 ȱ 2020 ȱȱȱȱȱȱȱȱ nëƎŏɆEƎėİŨƎǈ 4 2021 88 ȱȱȱȱ88 88 ȱ 2020 ȱȱȱȱȱȱȱȱ ėƢėƎɆQƖŨŒë 2 2021 85 ȱȱȱȱ85 85 ȱ 2020 81 ȱȱȱȱ81 81 ȱ ÔļĉŏǈɆëƎśëŝ 3 2021 ǪǣȱȱȱȱǪǣǪǣȱ 2020 ȱȱȱȱȱȱȱȱ ÔļƎİļŝļëɆnĉ$ŨǂėŒŒ 2 2021 106 ȱȱȱȱ106 106 ȱ 2020 101 ȱȱȱȱ101 101 ȱ ©ƢėƋķėŝɆnŨƎëŝë 2,5 2021 28 ȱȱȱȱ28 28 ȱ 2020 ǤǧǪȱȱȱȱǤǧǪǤǧǪȱėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝ 6 2021 ǪȱȱȱȱǪǪȱ 2020 85 ȱȱȱȱ85 85 ȱ David Satz 2021 85 ȱȱȱȱ85 85 ȱ 2020 ǤǪȱȱȱȱǤǪǤǪȱ DŨƎśėƎɆpŨŝȯ,ǇėĉƪƢļǁėɆ Directors Ǫ 2021 _ ȱȱȱȱȱȱȱ 2020 ǤǨǪȱȱȱȱǤǨǪǤǨǪȱ ǤșɆ pŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆƎėĉėļǁėɆįėėƖɆŨŝŒǈɆëŝĐɆĐŨɆŝŨƢɆƎėĉėļǁėɆëŝǈɆëĐĐļƢļŨŝëŒɆĈėŝėǘƢƖɆŨƎɆĈŨŝƪƖɆƋëǈśėŝƢƖșɆ ǥșɆ QŝɆǥǣǥǣȚɆëƎƎǈɆEļĈƖŨŝȚɆļėƎƎėɆŨƪĉķƪƢȚɆėƢėƎɆQƖŨŒëȚɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒɆëŝĐɆ©ƢėƋķėŝɆnŨƎëŝëɆǂėƎėɆëŒŒɆƖƪĈŌėĉƢɆƢŨɆëɆǥǣɼɆƎėĐƪĉƢļŨŝɆļŝɆįėėƖɆįŨƎɆƢķƎėėɆśŨŝƢķƖșɆ ǦșɆ ©ƢėŒŒëɆ$ëǁļĐɆëŝĐɆÔļĉŏǈɆëƎśëŝɆŌŨļŝėĐɆƢķėɆŨëƎĐɆŨŝɆǧɆnëƎĉķɆǥǣǥǤș ǧșɆ nëƎŏɆEƎėİŨƎǈɆŌŨļŝėĐɆƢķėɆŨëƎĐɆŨŝɆǤǪɆnëƎĉķɆǥǣǥǤș ǨșɆ ©ƢėƋķėŝɆnŨƎëŝëɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐɆŨŝɆǧɆnëƎĉķɆǥǣǥǤș ǩșɆėƢƢėɆpǈİëëƎĐȯŝĐėƎƖėŝɆƖƢėƋƋėĐɆĐŨǂŝɆëƖɆëɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆǂķėŝɆƖķėɆǂëƖɆëƋƋŨļŝƢėĐɆëƖɆ,{ɆŨŝɆǥǤɆëŝƪëƎǈɆǥǣǥǤșɆLėƎɆƎėśƪŝėƎëƢļŨŝɆëƖɆ,{ɆļƖɆƖėƢɆŨƪƢɆŨŝɆƋëİėɆǤǦǧș ǪșɆ DėėƖɆƢŨƢëŒŒļŝİɆɞǤǨǪȚǣǣǣɆǂėƎėɆƋëļĐɆƢŨɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆļŝɆǥǣǥǣɆǂķŨɆƖƢŨŨĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐɆĐƪƎļŝİɆƢķëƢɆǈėëƎɆëŝĐɆƎėĉėļǁėĐɆŝŨɆįėėƖɆļŝɆƎėŒëƢļŨŝɆƢŨɆǥǣǥǤș 139 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Fee structure ¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆƢķėɆįėėɆƖƢƎƪĉƢƪƎėɆįŨƎɆǥǣǥǥɆįŨƎɆƢķėɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƢķėɆķëļƎśëŝɆŨįɆƢķėɆŨëƎĐșɆ¶ķėƖėɆëƎėɆƪŝĉķëŝİėĐɆ įƎŨśɆƢķŨƖėɆļŝɆǥǣǥǤșɆQŝɆėëƎŒǈɆǥǣǥǣȚɆƢķėɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂėƎėɆİļǁėŝɆƢķėɆŨŝėȯŨįįɆĉķŨļĉėɆƢŨɆķëǁėɆƢķėļƎɆįėėƖɆĐėŝŨśļŝëƢėĐɆļŝɆėļƢķėƎɆ EɆŨƎɆ,ƪƎŨƖȚɆëŝĐɆƖƪĈƖėƍƪėŝƢŒǈɆëŝɆėƍƪļǁëŒėŝƢɆ½©$ɆįėėɆŒėǁėŒɆǂëƖɆėƖƢëĈŒļƖķėĐș As at 1 January 2022 ķëļƎśëŝɆŨįɆƢķėɆŨëƎĐ £450,000 ©ėŝļŨƎɆQŝĐėƋėŝĐėŝƢɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎ £155,000 ŨëƎĐɆśėśĈėƎ ɑǤǣǣȚǣǣǣɆŨƎɆɞǫǨȚǣǣǣɆŨƎɆɏǤǤǪȚǣǣǣ Chair of Audit, Remuneration or ESG Committee €25,000 or £21,000 Letters of appointment pŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëƎėɆëƋƋŨļŝƢėĐɆƪŝĐėƎɆŒėƢƢėƎƖɆŨįɆëƋƋŨļŝƢśėŝƢɆëŝĐɆëƖɆƖƪĉķɆĐŨɆŝŨƢɆķëǁėɆƖėƎǁļĉėɆĉŨŝƢƎëĉƢƖșɆƋëƎƢɆįƎŨśɆƢķėɆķëļƎśëŝɆ ŨįɆƢķėɆŨëƎĐȚɆėëĉķɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆļƖɆƖƪĈŌėĉƢɆƢŨɆëŝɆļŝļƢļëŒɆƢķƎėėȯǈėëƎɆƢėƎśɆƖƪĈŌėĉƢɆƢŨɆëŝŝƪëŒɆƎėȯėŒėĉƢļŨŝɆëƢɆƢķėɆŨśƋëŝǈȼƖɆEnș ŒŒɆŒėƢƢėƎƖɆŨįɆëƋƋŨļŝƢśėŝƢɆëƎėɆëǁëļŒëĈŒėɆįŨƎɆǁļėǂļŝİɆëƢɆƢķėɆŨśƋëŝǈȼƖɆƎėİļƖƢėƎėĐɆŨįǘĉėɆëŝĐɆëƢɆƢķėɆEnș Director Date appointed Arrangement Notice period ɆEļĈƖŨŝ ǧɆpŨǁėśĈėƎɆǥǣǤǬ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months ɆŨƪĉķƪƢ 13 September 2018 dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months S David ǧɆnëƎĉķɆǥǣǥǤ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months nɆEƎėİŨƎǈ ǤǪɆnëƎĉķɆǥǣǥǤ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months ɆQƖŨŒë ǥɆDėĈƎƪëƎǈɆǥǣǤǩ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months ÔɆëƎśëŝ ǧɆnëƎĉķɆǥǣǥǤ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months ÔɆnĉ$ŨǂėŒŒ ǩɆƪŝėɆǥǣǤǫ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months D Satz 22 October 2020 dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months Share interests (audited) pŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆƖķëƎėɆļŝƢėƎėƖƢƖɆëƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëƎėɆƖėƢɆŨƪƢɆĈėŒŨǂșɆÕļƢķɆƢķėɆėǇĉėƋƢļŨŝɆŨįɆ©ƢėŒŒëɆ$ëǁļĐɆëŝĐɆÔļĉŏǈɆëƎśëŝɆ ǂķŨɆŨŝŒǈɆŌŨļŝėĐɆƢķėɆŨëƎĐɆļŝɆnëƎĉķɆǥǣǥǤɆëŝĐɆ$ëǁļĐɆ©ëƢǒɆǂķŨɆŌŨļŝėĐɆƢķėɆŨëƎĐɆļŝɆ{ĉƢŨĈėƎɆǥǣǥǣȚɆëŒŒɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆķŨŒĐɆƖķëƎėƖɆ ǂļƢķɆëɆǁëŒƪėɆļŝɆėǇĉėƖƖɆŨįɆŨŝėɆƢļśėƖɆƢķėļƎɆëŝŝƪëŒɆįėėș Director pƪśĈėƎɆŨįɆĈėŝėǘĉļëŒŒǈɆ owned shares 1 ɆEļĈƖŨŝ ǩǫȚǧǦǪ ɆŨƪĉķƪƢ 38,500 S David 3,652 nɆEƎėİŨƎǈ ǪȚǧǧǩ ɆQƖŨŒë 36,135 ÔɆëƎśëŝ ȱ ÔɆnĉ$ŨǂėŒŒ 15,000 ©ɆnŨƎëŝë 2 34,184 D Satz ȱ ǤșɆ ėŝėǘĉļëŒŒǈɆŨǂŝėĐɆƖķëƎėƖɆļŝĉŒƪĐėɆƖķëƎėƖɆķėŒĐɆĐļƎėĉƢŒǈɆŨƎɆļŝĐļƎėĉƢŒǈɆĈǈɆĉŨŝŝėĉƢėĐɆƋėƎƖŨŝƖșɆ¶ķėƎėɆǂėƎėɆŝŨɆĉķëŝİėƖɆļŝɆƢķėɆŝƪśĈėƎɆŨįɆƖķëƎėƖɆŨǂŝėĐɆŨƪƢƎļİķƢɆįŨƎɆëŝǈɆpŨŝȯ,ǇėĉƪƢļǁėɆ $ļƎėĉƢŨƎɆĈėƢǂėėŝɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëŝĐɆƢķėɆĐëƢėɆƢķļƖɆƎėƋŨƎƢɆǂëƖɆƖļİŝėĐș ǥșɆ ƖɆëɆįŨƎśėƎɆpŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎȚɆƢķėɆĈėŝėǘĉļëŒŒǈɆŨǂŝėĐɆƖķëƎėƖɆįŨƎɆ©ƢėƋķėŝɆnŨƎëŝëɆƎėǙėĉƢƖɆƢķėɆƋŨƖļƢļŨŝɆŨŝɆǧɆnëƎĉķɆǥǣǥǤȚɆƢķėɆĐëƢėɆķėɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐș Mark Gregory Chair of the Remuneration Committee ǦɆnëƎĉķɆǥǣǥǥ Annual Report on Remuneration continued Entain plc | Annual Report 2021 140 Governance Principal activity ,ŝƢëļŝɆƋŒĉɆȩƢķėɆȹŨśƋëŝǈȺȪɆëŝĐɆļƢƖɆƖƪĈƖļĐļëƎļėƖɆȩƢŨİėƢķėƎɆƢķėɆ ȹEƎŨƪƋȺȪɆļƖɆëɆśëŌŨƎɆļŝƢėƎŝëƢļŨŝëŒɆƖƋŨƎƢƖȯĈėƢƢļŝİɆëŝĐɆİëśļŝİɆ ĉŨśƋëŝǈɆŨƋėƎëƢļŝİɆĈŨƢķɆŨŝŒļŝėɆëŝĐɆļŝɆƢķėɆƎėƢëļŒɆƖėĉƢŨƎș ¶ķėɆŨśƋëŝǈɆļƖɆƎėİļƖƢėƎėĐɆëƖɆëɆƋƪĈŒļĉɆŒļśļƢėĐɆĉŨśƋëŝǈɆƪŝĐėƎɆ ƢķėɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩɆëŝĐɆļƖɆŒļƖƢėĐɆļŝɆƢķėɆƎėśļƪśɆ ĉëƢėİŨƎǈɆŨŝɆƢķėɆnëļŝɆnëƎŏėƢɆŨįɆƢķėɆdŨŝĐŨŝɆ©ƢŨĉŏɆ,Ǉĉķëŝİėș Results and future performance ɆƎėǁļėǂɆŨįɆƢķėɆEƎŨƪƋȼƖɆƎėƖƪŒƢƖɆëŝĐɆëĉƢļǁļƢļėƖɆļƖɆĉŨǁėƎėĐɆǂļƢķļŝɆ ƢķėɆ©ƢƎëƢėİļĉɆ¡ėƋŨƎƢɆŨŝɆƋëİėƖɆǩɆƢŨɆǫǩșɆ¶ķļƖɆļŝĉŨƎƋŨƎëƢėƖɆƢķėɆ ķëļƎśëŝȼƖɆƖƢëƢėśėŝƢȚɆķļėįɆ,ǇėĉƪƢļǁėɆëŝĐɆķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎȼƖɆ ƎėǁļėǂȚɆǂķļĉķɆļŝĉŒƪĐėɆëŝɆļŝĐļĉëƢļŨŝɆŨįɆŒļŏėŒǈɆįƪƢƪƎėɆĐėǁėŒŨƋśėŝƢƖș Key performance indicators bėǈɆƋėƎįŨƎśëŝĉėɆļŝĐļĉëƢŨƎƖɆļŝɆƎėŒëƢļŨŝɆƢŨɆƢķėɆEƎŨƪƋȼƖɆëĉƢļǁļƢļėƖɆëƎėɆ ĉŨŝƢļŝƪëŒŒǈɆƎėǁļėǂėĐɆĈǈɆƖėŝļŨƎɆśëŝëİėśėŝƢɆëŝĐɆëƎėɆƋƎėƖėŝƢėĐɆŨŝɆ ƋëİėɆǥǤș Dividends {ŝɆǩɆƋƎļŒɆǥǣǥǣɆƢķėɆEƎŨƪƋɆëŝŝŨƪŝĉėĐɆƢķëƢɆƢķėɆǥǣǤǬɆƖėĉŨŝĐɆļŝƢėƎļśɆ ĐļǁļĐėŝĐɆǂŨƪŒĐɆĈėɆǂļƢķĐƎëǂŝɆĐƪėɆƢŨɆƢķėɆŨŝİŨļŝİɆƪŝĉėƎƢëļŝƢǈɆ ƖƪƎƎŨƪŝĐļŝİɆŨǁļĐȯǤǬɆëŝĐɆĐļǁļĐėŝĐƖɆķëǁėɆŝŨƢɆƎėƖƪśėĐɆƖļŝĉėɆƢķëƢɆ ĐëƢėșɆpŨɆļŝƢėƎļśɆĐļǁļĐėŝĐƖɆķëǁėɆĈėėŝɆĐėĉŒëƎėĐɆǂļƢķɆƎėƖƋėĉƢɆƢŨɆƢķėɆ ǈėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤș ƢɆƢķėɆĐëƢėɆŨįɆƢķļƖɆƎėƋŨƎƢȚɆƢķėɆŨëƎĐɆķëƖɆŝŨƢɆƋƎŨƋŨƖėĐɆëɆĐļǁļĐėŝĐɆ İļǁėŝɆƢķëƢɆśëŝǈɆŨįɆŨƪƎɆśëƎŏėƢƖɆĉŨŝƢļŝƪėĐɆƢŨɆĈėɆļśƋëĉƢėĐɆĈǈɆ ŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆļŝƢŨɆƢķėɆƖƢëƎƢɆŨįɆƢķėɆŝėǂɆǘŝëŝĉļëŒɆǈėëƎșɆ LŨǂėǁėƎȚɆƋƎŨİƎėƖƖɆƎėśëļŝƖɆėŝĉŨƪƎëİļŝİɆëŝĐɆƢķėɆŨëƎĐɆǂļŒŒɆƎėǁļėǂɆ ƢķėɆƋëǈśėŝƢɆŨįɆĐļǁļĐėŝĐƖɆǂļƢķɆįƪƢƪƎėɆƎėƖƪŒƢƖș ŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉė The Directors recognise the importance of corporate governance ëŝĐɆƢķėļƎɆëƖƖŨĉļëƢėĐɆƎėƋŨƎƢɆļƖɆƖėƢɆŨƪƢɆŨŝɆƋëİėƖɆǫǫɆƢŨɆǤǧǥșɆ The information in that section is deemed to form part of this ¡ėƋŨƎƢɆëŝĐɆƖŨɆįƪŒǘŒƖɆƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆƢķėɆĉŨƎƋŨƎëƢėɆİŨǁėƎŝëŝĉėɆ ƖƢëƢėśėŝƢɆįŨƎɆƢķėɆƋƪƎƋŨƖėƖɆŨįɆ$¶¡ɆǪșǥșǤș ƖɆëɆĉŨśƋëŝǈɆƍƪŨƢėĐɆŨŝɆƢķėɆƎėśļƪśɆnëļŝɆnëƎŏėƢɆŨįɆƢķėɆdŨŝĐŨŝɆ ©ƢŨĉŏɆ,ǇĉķëŝİėȚɆƢķėɆŨśƋëŝǈɆķëƖɆëĐŨƋƢėĐɆƢķėɆǥǣǤǫɆ½bɆŨƎƋŨƎëƢėɆ EŨǁėƎŝëŝĉėɆŨĐėɆȩȹŨĐėȺȪȚɆëƖɆëśėŝĐėĐɆįƎŨśɆƢļśėɆƢŨɆƢļśėȚɆëŝĐɆǂļŒŒɆ ƖėėŏɆƢŨɆĉŨśƋŒǈɆǂļƢķɆƋƎėśļƪśɆŒļƖƢėĐɆĉŨśƋëŝǈɆŝŨƎśƖɆƢŨɆƢķėɆėǇƢėŝƢɆ ëƋƋƎŨƋƎļëƢėɆįŨƎɆƢķėɆƖļǒėɆëŝĐɆŝëƢƪƎėɆŨįɆƢķėɆŨśƋëŝǈș Engagement with Employee Statements ¶ķļƖɆļƖɆĐļƖĉƪƖƖėĐɆļŝɆƢķėɆƖǤǪǥɆ©ƢëƢėśėŝƢɆŨŝɆƋëİėɆǦǩɆëŝĐɆŨŝɆ ƋëİėƖɇǬǫɆƢŨɆǬǬș Engagement with Stakeholder Statements ¶ķļƖɆļƖɆĐļƖĉƪƖƖėĐɆļŝɆƢķėɆƖǤǪǥɆ©ƢëƢėśėŝƢɆŨŝɆƋëİėƖɆǦǩɆƢŨɆǦǬɆëŝĐɇŨŝɆ ƋëİėƖɆǬǫɆƢŨɆǬǬș ƪƖƢŨśėƎɆëŝĐɆĉƎėĐļƢŨƎɆƋëǈśėŝƢɆƋŨŒļĉǈ ¶ķėɆEƎŨƪƋɆļƖɆĉŨśśļƢƢėĐɆƢŨɆƋƎŨśƋƢɆƋëǈśėŝƢɆŨįɆĉƪƖƢŨśėƎɆĉëƖķȯŨƪƢɆ requests and maintains adequate cash reserves to cover customer ǂļƢķĐƎëǂëŒƖɆëŝĐɆĈëŒëŝĉėƖșɆ pŨƎśëŒŒǈɆƋëǈśėŝƢƖɆǂļŒŒɆĈėɆśëĐėɆƢŨɆĉƪƖƢŨśėƎƖɆǂļƢķļŝɆƖėǁėŝɆĐëǈƖɆŨįɆ ƎėĉėļǁļŝİɆëɆĉƪƖƢŨśėƎɆļŝƖƢƎƪĉƢļŨŝș QŝɆƢķėɆĉëƖėɆŨįɆŨƢķėƎɆĉƎėĐļƢŨƎƖȚɆļƢɆļƖɆƢķėɆEƎŨƪƋȼƖɆƋŨŒļĉǈɆƢŨɆëİƎėėɆƢėƎśƖɆ ëƢɆƢķėɆŨƪƢƖėƢɆŨįɆëɆƢƎëŝƖëĉƢļŨŝɆëŝĐɆėŝƖƪƎėɆĉŨśƋŒļëŝĉėɆǂļƢķɆƖƪĉķɆ ëİƎėėĐɆƢėƎśƖșɆQŝɆƢķėɆėǁėŝƢɆƢķëƢɆëŝɆļŝǁŨļĉėɆļƖɆĉŨŝƢėƖƢėĐɆƢķėŝɆƢķėɆ EƎŨƪƋɆļŝįŨƎśƖɆƢķėɆƖƪƋƋŒļėƎɆǂļƢķŨƪƢɆĐėŒëǈɆëŝĐɆƖėėŏƖɆƢŨɆƖėƢƢŒėɆƢķėɆ ĐļƖƋƪƢėɆƍƪļĉŏŒǈșɆ$ƪƎļŝİɆǥǣǥǣȚɆƢķėɆEƎŨƪƋɆëƋƋŨļŝƢėĐɆëɆƪƖƢŨśėƎɆ {śĈƪĐƖśëŝɆ$ļƎėĉƢŨƎș Articles of Association ¶ķėɆŨśƋëŝǈȼƖɆƎƢļĉŒėƖɆŨįɆƖƖŨĉļëƢļŨŝɆśëǈɆŨŝŒǈɆĈėɆëśėŝĐėĐɆĈǈɆ ƖƋėĉļëŒɆƎėƖŨŒƪƢļŨŝɆëƢɆëɆİėŝėƎëŒɆśėėƢļŝİɆŨįɆƖķëƎėķŨŒĐėƎƖșɆ Directors ¶ķėɆ$ļƎėĉƢŨƎƖɆŨįɆƢķėɆŨśƋëŝǈɆǂķŨɆǂėƎėɆļŝɆŨįǘĉėɆĐƪƎļŝİɆƢķėɆǈėëƎȚɆ ëƎėɆĐļƖĉŒŨƖėĐɆŨŝɆƋëİėƖɆǫǫȯǫǬɆș ¶ķėɆŨśƋëŝǈȼƖɆƎƢļĉŒėƖɆŨįɆƖƖŨĉļëƢļŨŝɆƋƎŨǁļĐėɆƢķëƢɆëŝǈɆŝėǂɆ $ļƎėĉƢŨƎɆëƋƋŨļŝƢėĐɆĈǈɆƢķėɆŨëƎĐɆĐƪƎļŝİɆƢķėɆǈėëƎȚɆķëǁļŝİɆŝŨƢɆĈėėŝɆ ƋƎėǁļŨƪƖŒǈɆėŒėĉƢėĐɆĈǈɆƖķëƎėķŨŒĐėƎƖȚɆśëǈɆķŨŒĐɆŨįǘĉėɆŨŝŒǈɆƪŝƢļŒɆƢķėɆ ŝėǇƢɆEnȚɆǂķėŝɆƢķëƢɆ$ļƎėĉƢŨƎɆśƪƖƢɆƎėƢļƎėɆëŝĐɆƖƢëŝĐɆįŨƎɆėŒėĉƢļŨŝɆëƢɆ ƢķėɆśėėƢļŝİșɆ¶ķėɆƎƢļĉŒėƖɆëŒƖŨɆƎėƍƪļƎėɆŨŝėɆƢķļƎĐɆŨįɆƢķėɆ$ļƎėĉƢŨƎƖɆŝŨƢɆ ŝėǂŒǈɆëƋƋŨļŝƢėĐɆƖļŝĉėɆƢķėɆŒëƖƢɆEnɆƢŨɆƖėėŏɆƎėȯėŒėĉƢļŨŝș QŝɆĉŨśƋŒļëŝĉėɆǂļƢķɆƢķėɆƎėĉŨśśėŝĐëƢļŨŝɆŨįɆƢķėɆǥǣǤǫɆŨĐėȚɆëŒŒɆ $ļƎėĉƢŨƎƖɆǂļŒŒɆƖėėŏɆƎėëƋƋŨļŝƢśėŝƢɆëƢɆƢķėɆǥǣǥǥɆEnȚɆëƖɆƢķėǈɆĐļĐɆ ļŝɆǥǣǥǤș Directors’ remuneration ŨƢķɆ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆķëǁėɆ©ėƎǁļĉėɆİƎėėśėŝƢƖɆëŝĐɆëŒŒɆƢķėɆ pŨŝȯ,ǇėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆķëǁėɆdėƢƢėƎƖɆŨįɆƋƋŨļŝƢśėŝƢɆëŝĐɆƢķėɆ ĐėƢëļŒƖɆŨįɆƢķėļƎɆŏėǈɆƢėƎśƖɆëƎėɆƖėƢɆŨƪƢɆļŝɆƢķėɆ$ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ ¡ėƋŨƎƢșɆ$ėƢëļŒƖɆŨįɆƎėśƪŝėƎëƢļŨŝɆŨįɆėëĉķɆ$ļƎėĉƢŨƎɆëƎėɆƋƎŨǁļĐėĐɆļŝɆƢķėɆ ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢɆŨŝɆƋëİėƖɆǤǤǩɆƢŨɆǤǧǣș Powers of directors ©ƪĈŌėĉƢɆƢŨɆĉŨśƋëŝǈɆŒëǂɆëŝĐɆƢķėɆŨśƋëŝǈȼƖɆëƎƢļĉŒėƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆ śëǈɆėǇėƎĉļƖėɆëŒŒɆŨįɆƢķėɆƋŨǂėƎƖɆŨįɆƢķėɆŨśƋëŝǈɆëŝĐɆśëǈɆĐėŒėİëƢėɆ ƢķėļƎɆƋŨǂėƎɆëŝĐɆĐļƖĉƎėƢļŨŝɆƢŨɆŨśśļƢƢėėƖșɆ¶ķėɆëƎƢļĉŒėƖɆİļǁėɆƢķėɆ $ļƎėĉƢŨƎƖɆƋŨǂėƎɆƢŨɆëƋƋŨļŝƢɆëŝĐɆƎėƋŒëĉėɆ$ļƎėĉƢŨƎƖșɆ Directors’ interests This is reported in the Directors’ Remuneration Report on pages 116 to 140 and provides details of the interests of each Director, ļŝĉŒƪĐļŝİɆĐėƢëļŒƖɆŨįɆĉƪƎƎėŝƢɆļŝĉėŝƢļǁėɆƖĉķėśėƖɆëŝĐɆŒŨŝİȯƢėƎśɆ incentive schemes, the interests of Directors in the share ĉëƋļƢëŒɆŨįɆƢķėɆŨśƋëŝǈɆëŝĐɆĐėƢëļŒƖɆŨįɆƢķėļƎɆƖķëƎėɆļŝƢėƎėƖƢƖɆëƖɆëƢɆ ǦǤɆ$ėĉėśĈėƎɆǥǣǥǤș Directors’ Report 141 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢ {ŝɆëƋƋŨļŝƢśėŝƢȚɆėëĉķɆ$ļƎėĉƢŨƎɆśƪƖƢɆŝŨƢļįǈɆƢķėɆŨśƋëŝǈɆŨįɆƢķėļƎɆ ėǇƢėƎŝëŒɆĈŨëƎĐɆëƋƋŨļŝƢśėŝƢƖȚɆŨƢķėƎɆƖļİŝļǘĉëŝƢɆĉŨśśļƢśėŝƢƖɆëŝĐɆ ëŝǈɆëĉƢƪëŒɆŨƎɆƋŨƢėŝƢļëŒɆĉŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢșɆ,ëĉķɆ$ļƎėĉƢŨƎɆļƖɆƎėƍƪļƎėĐɆ ƢŨɆĐļƖĉŒŨƖėɆëĉƢƪëŒɆŨƎɆƋŨƢėŝƢļëŒɆĉŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢƖɇƢŨɆƢķėɆŨëƎĐɆëŝĐɆ ǂķėƎėɆëĉƢƪëŒɆŨƎɆƋŨƢėŝƢļëŒɆĉŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢɆëƎļƖėȚɆƢķėɇƎėŒėǁëŝƢɆ $ļƎėĉƢŨƎɆĐŨėƖɆŝŨƢɆƎėĉėļǁėɆŨëƎĐɆƋëƋėƎƖɆëŝĐɆļƖɆėǇĉŒƪĐėĐɆįƎŨśɆ discussions and voting on the subject matter that gives rise to the ĉŨŝǙļĉƢșɆ¶ķėɆŨëƎĐɆķëƖɆëɆƋŨŒļĉǈɆƢŨɆļĐėŝƢļįǈɆëŝĐɆśëŝëİėɆ$ļƎėĉƢŨƎƖȼɆ ĉŨŝǙļĉƢƖɆŨƎɆƋŨƢėŝƢļëŒɆĉŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢș Directors’ Indemnities ¶ķėɆŨśƋëŝǈɆķëƖɆėŝƢėƎėĐɆļŝƢŨɆĐėėĐƖɆŨįɆļŝĐėśŝļƢǈɆǂļƢķɆėëĉķɆŨįɆƢķėɆ $ļƎėĉƢŨƎƖȚɆǂķļĉķɆĉŨśƋŒǈɆǂļƢķɆƢķėɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩȜɆ ƢķėƖėɆƎėśëļŝɆļŝɆįŨƎĉėɆëƖɆëƢɆƢķėɆĐëƢėɆŨįɆƢķļƖɆƎėƋŨƎƢș Share capital $ėƢëļŒƖɆŨįɆƢķėɆŨśƋëŝǈȼƖɆëƪƢķŨƎļƖėĐɆëŝĐɆļƖƖƪėĐɆƖķëƎėɆĉëƋļƢëŒȚɆ ƢŨİėƢķėƎɆǂļƢķɆĐėƢëļŒƖɆŨįɆƢķėɆśŨǁėśėŝƢɆƢķėƎėļŝȚɆëƎėɆƖėƢɆŨƪƢɆļŝɆ pŨƢėɆǥǫɆƢŨɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ¶ķļƖɆļŝĉŒƪĐėƖɆƢķėɆƎļİķƢƖɆëŝĐɆ obligations attaching to shares and restrictions on the transfer ŨįɆƖķëƎėƖșɆ ©ƪĈƖƢëŝƢļëŒɆƖķëƎėķŨŒĐļŝİƖɆȱɆQŝƢėƎėƖƢƖɆļŝɆǁŨƢļŝİɆƎļİķƢƖ ƖɆëƢɆǥǫɆDėĈƎƪëƎǈɆǥǣǥǥȚɆƢķėɆŨśƋëŝǈɆķëĐɆĈėėŝɆŝŨƢļǘėĐɆļŝɆ ëĉĉŨƎĐëŝĉėɆǂļƢķɆķëƋƢėƎɆǨɆŨįɆƢķėɆ$ļƖĉŒŨƖƪƎėɆëŝĐɆ¶ƎëŝƖƋëƎėŝĉǈɆ ¡ƪŒėƖɆŨįɆƢķėɆįŨŒŒŨǂļŝİɆļŝƢėƎėƖƢƖɆļŝɆƢķėɆŨśƋëŝǈȼƖɆ©ķëƎėƖțɆ Shareholder pƪśĈėƎɆŨįɆ Shares % of Issued Share ëƋļƢëŒɆʁɆ¶ŨƢëŒɆ Voting rights 1 The Capital Group Companies 64,825,853 ǤǤșǣǨɼ Sands ëƋļƢëŒɆnëŝëİėśėŝƢ ǥǫȚǬǣǣȚǦǦǬ ǧșǬǦɼ ǤșɆ ¶ķėɆŨśƋëŝǈɆķëĐɆǨǫǩȚǩǨǧȚǦǨǨɆŨƎĐļŝëƎǈɆƖķëƎėƖɆļŝɆļƖƖƪėɆŨŝɆǥǫɆDėĈƎƪëƎǈɆǥǣǥǥș ½ƖėɆŨįɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ ¶ķėɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖɆŨįɆƢķėɆEƎŨƪƋɆëƎėɆƖėƢɆ ŨƪƢɆǂļƢķļŝɆpŨƢėɆǥǨɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș Political donations ¶ķėɆŨśƋëŝǈɆĐļĐɆŝŨƢɆśëŏėɆëŝǈɆƋŨŒļƢļĉëŒɆĐŨŝëƢļŨŝƖɆŨƎɆļŝĉƪƎɆëŝǈɆ ƋŨŒļƢļĉëŒɆėǇƋėŝĐļƢƪƎėɆĐƪƎļŝİɆǥǣǥǤɆȩǥǣǥǣțɆpļŒȪș Insurance ¶ķėɆŨśƋëŝǈɆśëļŝƢëļŝƖɆëɆĐļƎėĉƢŨƎƖɆëŝĐɆŨįǘĉėƎƖȼɆŒļëĈļŒļƢǈɆļŝƖƪƎëŝĉėɆ ƋŨŒļĉǈɆļŝɆƎėƖƋėĉƢɆŨįɆëŝǈɆŒėİëŒɆĉŨƖƢƖɆƢķëƢɆśëǈɆĈėɆļŝĉƪƎƎėĐɆëİëļŝƖƢɆƢķėɆ $ļƎėĉƢŨƎƖɆļŝɆĐėëŒļŝİɆǂļƢķɆëŝǈɆŒėİëŒɆĉŒëļśƖɆŨƎɆļŝǁėƖƢļİëƢļŨŝƖș Annual General Meeting ¶ķėɆŨśƋëŝǈȼƖɆŝŝƪëŒɆEėŝėƎëŒɆnėėƢļŝİɆǂļŒŒɆĈėɆķėŒĐɆŨŝɆǥǧɆƪŝėɆ ǥǣǥǥɆëƢɆ¶ķėɆƎėǂėƎǈȚɆķļƖǂėŒŒɆ©ƢƎėėƢȚɆdŨŝĐŨŝɆ,ǤÛɆǧ©ș Independent Auditors bnEɆddɆȩȹbnEȺȪɆķëƖɆėǇƋƎėƖƖėĐɆļƢƖɆǂļŒŒļŝİŝėƖƖɆƢŨɆĉŨŝƢļŝƪėɆ ļŝɆŨįǘĉėɆëƖɆëƪĐļƢŨƎɆëŝĐɆëɆƎėƖŨŒƪƢļŨŝɆƢŨɆƎėȯëƋƋŨļŝƢɆbnEɆǂļŒŒɆĈėɆ ƋƎŨƋŨƖėĐɆëƢɆƢķėɆįŨƎƢķĉŨśļŝİɆEnș ©ŨɆįëƎɆëƖɆƢķėɆ$ļƎėĉƢŨƎƖɆëƎėɆëǂëƎėȚɆƢķėƎėɆļƖɆŝŨɆƎėŒėǁëŝƢɆëƪĐļƢɆ ļŝįŨƎśëƢļŨŝɆȩëƖɆĐėǘŝėĐɆĈǈɆ©ėĉƢļŨŝɆǧǤǫɆŨįɆƢķėɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩȪɆ ŨįɆǂķļĉķɆƢķėɆŨśƋëŝǈȼƖɆëƪĐļƢŨƎƖɆëƎėɆƪŝëǂëƎėȚɆëŝĐɆėëĉķɆ$ļƎėĉƢŨƎɆ ķëƖɆƢëŏėŝɆëŒŒɆƢķėɆƖƢėƋƖɆƢķëƢɆķėɆŨƎɆƖķėɆŨƪİķƢɆƢŨɆķëǁėɆƢëŏėŝɆëƖɆëɆ $ļƎėĉƢŨƎɆļŝɆŨƎĐėƎɆƢŨɆśëŏėɆķļśƖėŒįɆŨƎɆķėƎƖėŒįɆëǂëƎėɆŨįɆëŝǈɆƎėŒėǁëŝƢɆ ëƪĐļƢɆļŝįŨƎśëƢļŨŝɆëŝĐɆƢŨɆėƖƢëĈŒļƖķɆƢķëƢɆƢķėɆŨśƋëŝǈȼƖɆëƪĐļƢŨƎƖɆëƎėɆ ëǂëƎėɆŨįɆƢķëƢɆļŝįŨƎśëƢļŨŝș {ŝɆĈėķëŒįɆŨįɆƢķėɆŨëƎĐț ɆnɆëƎƎǈɆEļĈƖŨŝ Chairman ǦɆnëƎĉķɆǥǣǥǥ ¡ėİļƖƢėƎėĐɆŨįǘĉėțɆǦǥɆƢķŨŒɆ©ƢƎėėƢɆ$ŨƪİŒëƖȚɆQƖŒėɆŨįɆnëŝȚɆQnǤɆǤ Director’s Report continued Entain plc | Annual Report 2021 142 Governance Financial statements 145 Independent Auditor’s Report 152 Consolidated income statement 153 Consolidated statement of comprehensive income 154 Consolidated balance sheet 155 Consolidated statement of changes in equity 156 Consolidated statement of ĉëƖķɆǙŨǂƖ 157 Notes to the consolidated ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ 204 Company income statement 205 Company balance sheet ǥǣǩɆ ɆŨśƋëŝǈɆƖƢëƢėśėŝƢɆŨįɆĉķëŝİėƖɇ in equity 207 Notes to the Company ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ 212 Glossary 213 Shareholder & Corporate information 143 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Financial sta tements Entain plc | Annual Report 2021 144 Financial statements Independent Auditor’s Report to the members of Entain plc ǤɆ{ƪƎɆŨƋļŝļŨŝɆļƖɆƪŝśŨĐļǘėĐɆ ÕėɆķëǁėɆëƪĐļƢėĐɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆ,ŝƢëļŝɆŒĉɆȩȹƢķėɆ ŨśƋëŝǈȺȪɆįŨƎɆƢķėɆǈėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆǂķļĉķɆĉŨśƋƎļƖėɆ the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Consolidated ©ƢëƢėśėŝƢɆŨįɆëƖķɆDŒŨǂƖȚɆƢķėɆŨśƋëŝǈɆQŝĉŨśėɆ©ƢëƢėśėŝƢȚɆƢķėɆ Company Balance Sheet, the Company Statement of Changes ļŝɇ,ƍƪļƢǈȚɆëŝĐɆƢķėɆƎėŒëƢėĐɆŝŨƢėƖȚɆļŝĉŒƪĐļŝİɆƢķėɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ ļŝɇpŨƢėɆǧșɆ In our opinion: Ɇ ¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆİļǁėɆëɆƢƎƪėɆëŝĐɆįëļƎɆǁļėǂɆŨįɆƢķėɆ state of the Group’s and of the parent Company’s affairs as ëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëŝĐɆŨįɆƢķėɆEƎŨƪƋȼƖɆƋƎŨǘƢɆëŝĐɆƋëƎėŝƢɆ ŨśƋëŝǈȼƖɆƋƎŨǘƢɆįŨƎɆƢķėɆǈėëƎɆƢķėŝɆėŝĐėĐȜɆ Ɇ ¶ķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆķëǁėɆĈėėŝɆƋƎŨƋėƎŒǈɆƋƎėƋëƎėĐɆ ļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQŝƢėƎŝëƢļŨŝëŒɆDļŝëŝĉļëŒɆ¡ėƋŨƎƢļŝİɆ©ƢëŝĐëƎĐƖɆ ëƖɇëĐŨƋƢėĐɆĈǈɆƢķėɆ,ƪƎŨƋėëŝɆ½ŝļŨŝȜɆ Ɇ ¶ķėɆƋëƎėŝƢɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆķëǁėɆĈėėŝɆƋƎŨƋėƎŒǈɆ ƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆ½bɆëĉĉŨƪŝƢļŝİɆƖƢëŝĐëƎĐƖȚɆ ļŝĉŒƪĐļŝİɇD¡©ɆǤǣǤɆ¡ėĐƪĉėĐɆ$ļƖĉŒŨƖƪƎėɆDƎëśėǂŨƎŏȜɆëŝĐɆ Ɇ ¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆķëǁėɆĈėėŝɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆ ǂļƢķɇƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆƢķėɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩșɆ Basis for opinion ÕėɆĉŨŝĐƪĉƢėĐɆŨƪƎɆëƪĐļƢɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQŝƢėƎŝëƢļŨŝëŒɆ ©ƢëŝĐëƎĐƖɆŨŝɆƪĐļƢļŝİɆȩ½bȪɆȩȹQ©ƖɆȩ½bȪȺȪɆëŝĐɆëƋƋŒļĉëĈŒėɆŒëǂșɆ {ƪƎɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆëƎėɆĐėƖĉƎļĈėĐɆĈėŒŨǂșɆÕėɆķëǁėɆįƪŒǘŒŒėĐɆŨƪƎɆ ethical responsibilities under, and are independent of the Group in ëĉĉŨƎĐëŝĉėɆǂļƢķȚɆ½bɆėƢķļĉëŒɆƎėƍƪļƎėśėŝƢƖɆļŝĉŒƪĐļŝİɆƢķėɆD¡Ɇ,ƢķļĉëŒɆ ©ƢëŝĐëƎĐɆëƖɆƎėƍƪļƎėĐɆĈǈɆƢķėɆƎŨǂŝɆ$ėƋėŝĐėŝĉļėƖȼɆƪĐļƢɆ¡ƪŒėƖɆëŝĐɆ EƪļĐëŝĉėșɆÕėɆĈėŒļėǁėɆƢķëƢɆƢķėɆëƪĐļƢɆėǁļĐėŝĉėɆǂėɆķëǁėɆŨĈƢëļŝėĐɆļƖɆ ëɆƖƪįǘĉļėŝƢɆëŝĐɆëƋƋƎŨƋƎļëƢėɆĈëƖļƖɆįŨƎɆŨƪƎɆŨƋļŝļŨŝșɆ 2 Key audit matters: our assessment of risks of śëƢėƎļëŒɇśļƖƖƢëƢėśėŝƢ bėǈɆëƪĐļƢɆśëƢƢėƎƖɆëƎėɆƢķŨƖėɆśëƢƢėƎƖɆƢķëƢȚɆļŝɆŨƪƎɆƋƎŨįėƖƖļŨŝëŒɆ ŌƪĐİėśėŝƢȚɆǂėƎėɆŨįɆśŨƖƢɆƖļİŝļǘĉëŝĉėɆļŝɆƢķėɆëƪĐļƢɆŨįɆƢķėɆǘŝëŝĉļëŒɆ ƖƢëƢėśėŝƢƖɆëŝĐɆļŝĉŒƪĐėɆƢķėɆśŨƖƢɆƖļİŝļǘĉëŝƢɆëƖƖėƖƖėĐɆƎļƖŏƖɆŨįɆ śëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢɆȩǂķėƢķėƎɆŨƎɆŝŨƢɆĐƪėɆƢŨɆįƎëƪĐȪɆļĐėŝƢļǘėĐɆĈǈɆ ƪƖȚɆļŝĉŒƪĐļŝİɆƢķŨƖėɆǂķļĉķɆķëĐɆƢķėɆİƎėëƢėƖƢɆėįįėĉƢɆŨŝțɆƢķėɆŨǁėƎëŒŒɆ ëƪĐļƢɆƖƢƎëƢėİǈȜɆƢķėɆëŒŒŨĉëƢļŨŝɆŨįɆƎėƖŨƪƎĉėƖɆļŝɆƢķėɆëƪĐļƢȜɆëŝĐɆĐļƎėĉƢļŝİɆ ƢķėɆėįįŨƎƢƖɆŨįɆƢķėɆėŝİëİėśėŝƢɆƢėëśșɆÕėɆƖƪśśëƎļƖėɆĈėŒŨǂɆƢķėɆ ŏėǈɆëƪĐļƢɆśëƢƢėƎƖȚɆļŝɆĐėĉƎėëƖļŝİɆŨƎĐėƎɆŨįɆëƪĐļƢɆƖļİŝļǘĉëŝĉėȚɆļŝɆ ëƎƎļǁļŝİɆëƢɆŨƪƎɆëƪĐļƢɆŨƋļŝļŨŝɆëĈŨǁėȚɆƢŨİėƢķėƎɆǂļƢķɆŨƪƎɆŏėǈɆëƪĐļƢɆ ƋƎŨĉėĐƪƎėƖɆƢŨɆëĐĐƎėƖƖɆƢķŨƖėɆśëƢƢėƎƖɆëŝĐɆŨƪƎɆǘŝĐļŝİƖɆįƎŨśɆƢķŨƖėɆ procedures in order that the Company’s members, as a body, may ĈėƢƢėƎɆƪŝĐėƎƖƢëŝĐɆƢķėɆƋƎŨĉėƖƖɆĈǈɆǂķļĉķɆǂėɆëƎƎļǁėĐɆëƢɆŨƪƎɆëƪĐļƢɆ ŨƋļŝļŨŝșɆ¶ķėƖėɆśëƢƢėƎƖɆǂėƎėɆëĐĐƎėƖƖėĐȚɆëŝĐɆŨƪƎɆǘŝĐļŝİƖɆëƎėɆĈëƖėĐɆ ŨŝɆƋƎŨĉėĐƪƎėƖɆƪŝĐėƎƢëŏėŝȚɆļŝɆƢķėɆĉŨŝƢėǇƢɆŨįȚɆëŝĐɆƖŨŒėŒǈɆįŨƎɆƢķėɆ ƋƪƎƋŨƖėɆŨįȚɆŨƪƎɆëƪĐļƢɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆǂķŨŒėȚɆëŝĐɆ in forming our opinion thereon, and consequently are incidental ƢŨɆƢķëƢɆŨƋļŝļŨŝȚɆëŝĐɆǂėɆĐŨɆŝŨƢɆƋƎŨǁļĐėɆëɆƖėƋëƎëƢėɆŨƋļŝļŨŝɆŨŝɆ ƢķėƖėɆśëƢƢėƎƖș A Revenue recognition from online operations B Recoverability of parent Company’s investments in subsidiaries and receivables due from Group entities ȩëƎėŝƢɆŨśƋëŝǈɆŨŝŒǈȪ C ɆɆEëśļŝİɆƢëǇėƖɆļŝɆ ļśśëƢƪƎėɆśëƎŏėƢƖ D ɆɆnëŝëİėśėŝƢɆŨǁėƎƎļĐėɆ of controls E ɆɆ$ļƖĉŒŨƖƪƎėɆȱɆnƖɆļŝĉŒƪĐļŝİɆ separately disclosed items F ɆɆƎŨǁļƖļŨŝƖȦĉŨŝƢļŝİėŝƢɆ liabilities for litigation ëŝĐȦŨƎɆĈƎėëĉķėƖɆŨįɆŒëǂƖɆ and regulations G Acquisition accounting H Valuation of the Group’s EëŒëɆŨƎëŒɆĐėǘŝėĐɆ ĈėŝėǘƢɆƋėŝƖļŨŝɆ I Revenue recognition įƎŨśɇ½bɆ¡ėƢëļŒ J ɆɆ$ļƎėĉƢɆƢëǇëƢļŨŝ K Share-based payments L Contingent consideration M Going concern and Long- Term Viability Statement ŨƢėŝƢļëŒɆļśƋëĉƢɆŨŝɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ dļŏėŒļķŨŨĐɆŨįɆśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢ bėǈɆëƪĐļƢɆśëƢƢėƎ Change compared to prior year {ƢķėƎɆƎļƖŏƖ pėǂɆƎļƖŏ Low High High A B C D M H I J K L E Dynamic Audit planning tool ȩ¡ėŒëƢļǁėɆƖļİŝļǘĉëŝĉėɆŨįɆëƪĐļƢɆƎļƖŏƖɆĈėįŨƎėɆƢëŏļŝİɆëĉĉŨƪŝƢɆŨįɆĉŨŝƢƎŨŒȩƖȪ F G 145 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 QŝĐėƋėŝĐėŝƢɆƪĐļƢŨƎȼƖɆ¡ėƋŨƎƢɆƢŨɆƢķėɆśėśĈėƎƖɆŨįɆ,ŝƢëļŝɆƋŒĉɆcontinued Data reconciliations: Where GITCs over in-house managed systems handling the transfer of data are not designed and implemented effectively, comparing the amounts of revenue in the accounting records against the amounts reported in the platform ŨƎɆĈǈɆƢķļƎĐɆƋëƎƢļėƖɆȩƖŨƪƎĉėɆĐëƢëȪȚɆëƖɆëƋƋŒļĉëĈŒėȚɆįŨƎɆėëĉķɆśŨŝƢķɆëŝĐɆ ĈǈɇŒëĈėŒɆëŝĐɆƎėĉŨŝĉļŒļŝİɆƢķėɆļŝįŨƎśëƢļŨŝɆĈėƢǂėėŝɆƖǈƖƢėśƖș ¶ėƖƢƖɆŨįɆĐėƢëļŒƖɆȩƢƎëĉļŝİɆëŝĐɆǁŨƪĉķļŝİȪțɆWe assessed the appropriateness of revenue recognised by: Tracing a sample of sporting betting and gaming transactions ƢķƎŨƪİķɆƢķėɆƋŒëƢįŨƎśɆŨƎɆƢŨɆƢķļƎĐɆƋëƎƢǈɆƖǈƖƢėśƖɆȩǂķėŝɆ outsourced), and assessing that they are appropriately recorded ǂļƢķļŝɆƢķėɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆƖǈƖƢėśƖɆëƢɆƢķėɆƢƎëŝƖëĉƢļŨŝɆŒėǁėŒȜ Vouching a sample of sporting betting transactions from data ǂëƎėķŨƪƖėɆƢŨɆƢķėɆƋŒëƢįŨƎśɆƢŨɆǁėƎļįǈɆĉŨƎƎėĉƢɆĉëŒĉƪŒëƢļŨŝɆŨįɆƢķėɆ ƋëǈȯŨƪƢɆĈëƖėĐɆŨŝɆƢķėɆƖƢëŏėɆƋŒëĉėĐɆëŝĐɆŨĐĐƖɆŨįįėƎėĐɆŨŝɆƢķėɆ ļŝĐļǁļĐƪëŒɆĈėƢȜ Vouching a sample of sporting betting and gaming transactions įƎŨśɆĐëƢëɆǂëƎėķŨƪƖėɆƢŨɆƢķėɆƋŒëƢįŨƎśɆŨƎɆƢŨɆƢķļƎĐɆƋëƎƢǈɆ ƖǈƖƢėśƖɆȩǂķėŝɆŨƪƢƖŨƪƎĉėĐȪɆëŝĐɆëƖƖėƖƖļŝİɆƢķëƢɆƢķėǈɆëƎėɆ ëƋƋƎŨƋƎļëƢėŒǈɆƎėĉŨƎĐėĐȜɆ Ɇ {ĈƢëļŝļŝİɆėǇƢėƎŝëŒɆĉŨŝǘƎśëƢļŨŝɆŨįɆĉŒļėŝƢɆįƪŝĐƖɆķėŒĐɆļŝɆƢķėɆ ƋëǈśėŝƢɆƖėƎǁļĉėɆƋƎŨǁļĐėƎƖɆëŝĐɆƎėĉŨŝĉļŒļŝİɆƢķėɆŨĈƢëļŝėĐɆĈëŝŏɆ ĈëŒëŝĉėɆĉŨŝǘƎśëƢļŨŝɆƢŨɆƢķėɆĉƪƖƢŨśėƎƖȼɆëĉĉŨƪŝƢƖȜɆëŝĐ Ɇ ėƎįŨƎśļŝİɆëɆƖƪĈƖƢëŝƢļǁėɆëŝëŒǈƢļĉëŒɆƋƎŨĉėĐƪƎėɆŨǁėƎɆƢķėɆȹ¡ėƢƪƎŝɆ ƢŨɆƋŒëǈėƎȺɆƎëƢļŨș Assessing transparency: We also considered the adequacy of the EƎŨƪƋȼƖɆĐļƖĉŒŨƖƪƎėƖɆļŝɆƎėƖƋėĉƢɆŨįɆƎėǁėŝƪėș {ƪƎɆǘŝĐļŝİƖɆȱɆ{ƪƎɆƢėƖƢļŝİɆļĐėŝƢļǘėĐɆŝŨɆśëƢėƎļëŒɆėƎƎŨƎƖɆļŝɆƢķėɆ recording of revenue transactions for the Online businesses ȩǥǣǥǣțɇŝŨɆśëƢėƎļëŒɆėƎƎŨƎƖɆļĐėŝƢļǘėĐȪșɆ Revenue recognition from online operations ȩǥǣǥǤțɆɞǦȚǣǤǣșǥɆśļŒŒļŨŝȚɆǥǣǥǣțɆɞǥȚǩǫǣșǩɆśļŒŒļŨŝȪ ¡ėįėƎɆƢŨɆƋëİėɆǤǩǦɆȩëĉĉŨƪŝƢļŝİɆƋŨŒļĉǈȪɆëŝĐɆƋëİėƖɆǤǩǧɆƢŨɆǤǩǩɆ ȩǘŝëŝĉļëŒɆĐļƖĉŒŨƖƪƎėƖȪș The risk (Data capture and processing error or fraud – Revenue įƎŨśɆŨŝŒļŝėɆŨƋėƎëƢļŨŝƖȪțɆƎļƖŏɆǁƖɆǥǣǥǣ ÍÎ – Revenue streams ëƎėɆĉŨśƋƪƢėĐɆëŝĐɆƎėĉŨƎĐėĐɆŨŝɆķļİķŒǈɆĉŨśƋŒėǇɆQ¶ɆƖǈƖƢėśƖȚɆǂķļĉķɆ ƋƎŨĉėƖƖɆëɆķļİķɆǁŨŒƪśėɆŨįɆŒŨǂɆǁëŒƪėɆƢƎëŝƖëĉƢļŨŝƖɆǂļƢķɆƢķėɆŏėǈɆ ėŒėśėŝƢƖɆĈėļŝİɆƢķėɆİëśļŝİɆëŝĐɆĈėƢƢļŝİɆƋŒëƢįŨƎśƖɆȩȹƋŒëƢįŨƎśȺȪȚɆ ĉƪƖƢŨśėƎɆǂëŒŒėƢƖȚɆƢķėɆĐëƢëɆǂëƎėķŨƪƖėȚɆëŝĐɆƢķėɆǘŝëŝĉļëŒɆƖǈƖƢėśƖșɆ Systematic errors in calculations in aggregation could result in ļŝĉŨƎƎėĉƢɆƎėƋŨƎƢļŝİɆŨįɆƎėǁėŝƪėșɆ The Group’s income streams across its online operations are ĐėƋėŝĐėŝƢɆŨŝɆƢķėļƎɆĉŨƎėɆǘŝëŝĉėɆƋƎŨĉėƖƖėƖɆëŝĐɆėįįėĉƢļǁėŝėƖƖɆŨįɆ operational controls to accurately report and reconcile revenue ƢƎëŝƖëĉƢļŨŝƖɆĈėƢǂėėŝɆƢķėɆƋŒëƢįŨƎśȚɆƢķėɆĐëƢëɆǂëƎėķŨƪƖėɆëŝĐɆƢķėɆ ǘŝëŝĉļëŒɆƖǈƖƢėśƖȚɆëŝĐɆƢķėƎėɆļƖɆëɆƎļƖŏɆƢķëƢɆƪŝëƪƢķŨƎļƖėĐɆĉķëŝİėƖɆ ĉŨƪŒĐɆĈėɆśëĐėɆļŝɆƢķėɆĐëƢëɆǂëƎėķŨƪƖėɆŨƎɆƢķėɆǘŝëŝĉļëŒɆƖǈƖƢėśƖɆ ǂķļĉķɆśëǈɆƎėƖƪŒƢɆļŝɆƢķėɆŨǁėƎƖƢëƢėśėŝƢɆŨįɆƎėǁėŝƪėșɆ Our response – Our procedures included: Control operation:ɆDŨƎɆƢķėɆEƎŨƪƋȼƖɆļŝȯķŨƪƖėɆƖǈƖƢėśƖɆǂėɆƪƢļŒļƖėĐɆ ŨƪƎɆŨǂŝɆQ¶ɆƖƋėĉļëŒļƖƢƖɆƢŨɆëƖƖėƖƖɆƢķėɆƎėŒėǁëŝƢɆQ¶ɆƖǈƖƢėśƖɆëŝĐɆ controls by: Testing the functionality of the platform that processes player ëĉƢļǁļƢǈȚɆĉƪƖƢŨśėƎȼƖɆǂëŒŒėƢƖɆƎėĉŨŝĉļŒļëƢļŨŝɆëŝĐɆĉëƖķɆśŨǁėśėŝƢƖȜ Ɇ ¶ėƖƢļŝİɆƢķėɆĐëƢëɆǙŨǂɆļŝɆƢķėɆŨŝŒļŝėɆĈėƢƢļŝİɆėŝǁļƎŨŝśėŝƢɆĈǈɆ observing bets placed from the customer-facing systems and tracing the transactions to the platform, and then from the ĐëƢëɆǂëƎėķŨƪƖėɆȩƖƢŨƎëİėȪɆƢŨɆƢķėɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆƖǈƖƢėśƖɆ ȩëĉĉŨƪŝƢļŝİɆƎėĉŨƎĐƖȪɆƢŨɆëƖƖėƖƖɆǂķėƢķėƎɆƢķėɆļŝįŨƎśëƢļŨŝɆļƖɆƋëƖƖėĐɆ ëƋƋƎŨƋƎļëƢėŒǈɆįƎŨśɆŨŝėɆƖǈƖƢėśɆƢŨɆëŝŨƢķėƎȜɆ Ɇ ¶ėƖƢļŝİɆƢķėɆƎėŒėǁëŝƢɆİėŝėƎëŒɆQ¶ɆĉŨŝƢƎŨŒƖɆȩȹEQ¶ƖȺȪɆļŝĉŒƪĐļŝİɆ access to programs and data, program change and development ȱɆƖƋėĉļǘĉëŒŒǈɆėǁëŒƪëƢļŝİɆëĉĉŨƪŝƢɆƖėƢȯƪƋɆëŝĐɆƢėƎśļŝëƢļŨŝɆŨįɆƪƖėƎƖȚɆ ƋëƖƖǂŨƎĐɆƎėƖƢƎļĉƢļŨŝƖȚɆƪƖėƎƖɆǂļƢķɆƋƎļǁļŒėİėĐɆëĉĉėƖƖȚɆƋƎŨİƎëśɆ ĉķëŝİėɆëŝĐɆĐėǁėŒŨƋśėŝƢɆƋƎŨĉėƖƖɆĉŨŝƢƎŨŒƖȚɆëŝĐɆƢėƖƢļŝİɆǂķėƢķėƎɆ ëŝǈɆƪŝëƪƢķŨƎļƖėĐɆĉķëŝİėƖɆķëǁėɆĈėėŝɆśëĐėɆƢŨɆƢķėɆƖǈƖƢėśȜ Where GITCs are not operating effectively over in-house systems handling the transfer of data, testing the operating effectiveness of compensating manual controls reconciling the ëĉĉŨƪŝƢļŝİɆƎėĉŨƎĐƖɆƢŨɆƢķėɆƢķļƎĐɆƋëƎƢǈɆƖǈƖƢėśƖȜɆëŝĐ Assessing the overall IT environment, including relevant IT security policies and procedures, IT organisational structure, Q¶ɇƖƢƎëƢėİǈɆëŝĐɆƎėƋŨƎƢļŝİȚɆĐļƖëƖƢėƎɆƎėĉŨǁėƎǈɆëŝĐɆĈëĉŏȯƪƋɆƢėƖƢļŝİș Entain plc | Annual Report 2021 146 Financ ial statements ¡ėĉŨǁėƎëĈļŒļƢǈɆŨįɆƋëƎėŝƢɆŨśƋëŝǈȼƖɆļŝǁėƖƢśėŝƢƖɆļŝɆƖƪĈƖļĐļëƎļėƖɆ ëŝĐɆƎėĉėļǁëĈŒėƖɆĐƪėɆįƎŨśɆEƎŨƪƋɆėŝƢļƢļėƖɆȩƋëƎėŝƢɆŨśƋëŝǈɆŨŝŒǈȪțɆ (2021 carrying value: £5,114.7 million, 2020 carrying value: ɞǨȚǣǤǫșǧɆśļŒŒļŨŝȪ ¡ėįėƎɆƢŨɆƋëİėƖɆǥǣǪɆëŝĐɆǥǣǬɆȩŨśƋëŝǈɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉǈȪɆëŝĐɆ ƋëİėƖɆǥǤǣɆƢŨɆǥǤǤɆȩŨśƋëŝǈɆǘŝëŝĉļëŒɆĐļƖĉŒŨƖƪƎėƖȪș ¶ķėɆƎļƖŏɆȩ¡ėĉŨǁėƎëĈļŒļƢǈɆŨįɆƋëƎėŝƢɆŨśƋëŝǈȼƖɆļŝǁėƖƢśėŝƢƖɆ ļŝɆƖƪĈƖļĐļëƎļėƖɆëŝĐɆƎėĉėļǁëĈŒėƖɆĐƪėɆįƎŨśɆEƎŨƪƋɆėŝƢļƢļėƖȪțɆ risk vs 2020 Ð – The carrying amount of the parent Company’s investments in subsidiaries and of the intra-Group debtor balance ƢŨİėƢķėƎɆƎėƋƎėƖėŝƢƖɆǬǬɼɆȩǥǣǥǣțɆǬǬɼȪɆŨįɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈȼƖɆ ƢŨƢëŒɆëƖƖėƢƖșɆ¶ķėļƎɆƎėĉŨǁėƎëĈļŒļƢǈɆļƖɆŝŨƢɆëƢɆëɆķļİķɆƎļƖŏɆŨįɆƖļİŝļǘĉëŝƢɆ śļƖƖƢëƢėśėŝƢɆŨƎɆƖƪĈŌėĉƢɆƢŨɆƖļİŝļǘĉëŝƢɆŌƪĐİėśėŝƢșɆLŨǂėǁėƎȚɆĐƪėɆ ƢŨɆƢķėļƎɆśëƢėƎļëŒļƢǈɆļŝɆƢķėɆĉŨŝƢėǇƢɆŨįɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈɆǘŝëŝĉļëŒɆ statements, this is considered to be the area that had the greatest ėįįėĉƢɆŨŝɆŨƪƎɆŨǁėƎëŒŒɆƋëƎėŝƢɆŨśƋëŝǈɆëƪĐļƢș ÕėɆƋėƎįŨƎśėĐɆƢķėɆƢėƖƢƖɆĈėŒŨǂɆƎëƢķėƎɆƢķëŝɆƖėėŏļŝİɆƢŨɆƎėŒǈɆŨŝɆëŝǈɆŨįɆ the Company’s controls because the nature of the balance is such ƢķëƢɆǂėɆǂŨƪŒĐɆėǇƋėĉƢɆƢŨɆŨĈƢëļŝɆëƪĐļƢɆėǁļĐėŝĉėɆƋƎļśëƎļŒǈɆƢķƎŨƪİķɆ ƢķėɆĐėƢëļŒėĐɆƋƎŨĉėĐƪƎėƖɆĐėƖĉƎļĈėĐș Our response – Our procedures included: Benchmarking assumptions: We challenged the assumptions ƪƖėĐɆļŝɆƢķėɆĉëƖķɆǙŨǂƖɆļŝĉŒƪĐėĐɆļŝɆƢķėɆĈƪĐİėƢƖɆĈëƖėĐɆŨŝɆ ŨƪƎɆŏŝŨǂŒėĐİėɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƢķėɆśëƎŏėƢƖɆļŝɆǂķļĉķɆƢķėɆ ƖƪĈƖļĐļëƎļėƖɆŨƋėƎëƢėș Historical comparisons: We assessed the reasonableness of the budgets by considering the historical accuracy of the ƋƎėǁļŨƪƖɆįŨƎėĉëƖƢƖș Our sector experience: We evaluated the current level of trading, ļŝĉŒƪĐļŝİɆļĐėŝƢļįǈļŝİɆëŝǈɆļŝĐļĉëƢļŨŝƖɆŨįɆëɆĐŨǂŝƢƪƎŝɆļŝɆëĉƢļǁļƢǈȚɆ ĈǈɆėǇëśļŝļŝİɆƢķėɆƋŨƖƢɆǈėëƎɆėŝĐɆśëŝëİėśėŝƢɆëĉĉŨƪŝƢƖɆëŝĐɆ ĉŨŝƖļĐėƎļŝİɆŨƪƎɆŏŝŨǂŒėĐİėɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƢķėɆśëƎŏėƢș Comparing valuations: We compared the carrying value of the parent Company’s investments in subsidiaries and receivables due from Group entities to value in use calculations for the relevant E½ƖɆëŝĐɆƢŨɆƢķėɆśëƎŏėƢɆĉëƋļƢëŒļƖëƢļŨŝɆŨįɆƢķėɆEƎŨƪƋș Assessing transparency: We assessed the adequacy of the parent Company’s disclosures in respect of investments in subsidiaries and EƎŨƪƋɆĐėĈƢŨƎɆĈëŒëŝĉėƖș {ƪƎɆǘŝĐļŝİƖ – We found the Company’s conclusion that there is no impairment of investments in subsidiaries and intercompany ƎėĉėļǁëĈŒėƖɆƢŨɆĈėɆĈëŒëŝĉėĐɆȩǥǣǥǣțɆĈëŒëŝĉėĐȪș ÕėɆĉŨŝƢļŝƪėɆƢŨɆƋėƎįŨƎśɆƋƎŨĉėĐƪƎėƖɆŨǁėƎɆİëśļŝİɆƢëǇėƖɆļŝɆļśśëƢƪƎėɆ śëƎŏėƢƖșɆLŨǂėǁėƎȚɆįŨŒŒŨǂļŝİɆƢķėɆƎƪŒļŝİɆśëĐėɆĈǈɆƢķėɆĐśļŝļƖƢƎëƢļǁėɆ ŨƪƎƢɆŨįɆƋƋėëŒɆļŝɆƢķėŝƖɆļŝɆƎėŒëƢļŨŝɆƢŨɆƢķėɆķļƖƢŨƎļĉɆEƎėėŏɆƢëǇɆĉëƖėɆ ĐƪƎļŝİɆƢķėɆǈėëƎȚɆǂėɆķëǁėɆŝŨƢɆëƖƖėƖƖėĐɆƢķļƖɆëƖɆŨŝėɆŨįɆƢķėɆśŨƖƢɆ ƖļİŝļǘĉëŝƢɆƎļƖŏƖɆļŝɆŨƪƎɆĉƪƎƎėŝƢɆǈėëƎɆëƪĐļƢɆëŝĐȚɆƢķėƎėįŨƎėȚɆļƢɆļƖɆŝŨƢɆ ƖėƋëƎëƢėŒǈɆļĐėŝƢļǘėĐɆļŝɆŨƪƎɆƎėƋŨƎƢɆƢķļƖɆǈėëƎș 3 Our application of materiality and an overview of the scope of our audit nëƢėƎļëŒļƢǈɆįŨƎɆƢķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆǂķŨŒėɆǂëƖɆ ƖėƢɆëƢɆɞǦǨɆśļŒŒļŨŝɆȩǥǣǥǣțɆɞǥǣɆśļŒŒļŨŝȪȚɆĐėƢėƎśļŝėĐɆǂļƢķɆƎėįėƎėŝĉėɆ ƢŨɆëɆĈėŝĉķśëƎŏɆŨįɆEƎŨƪƋɆƎėǁėŝƪėɆȩŨįɆǂķļĉķɆļƢɆƎėƋƎėƖėŝƢƖɆǣșǬɼɆ ȩǥǣǥǣțɆǣșǩɼȪȪșɆ¶ķėɆƖļİŝļǘĉëŝƢɆļŝĉƎėëƖėɆļŝɆśëƢėƎļëŒļƢǈɆƋƎļśëƎļŒǈɆ ëƎŨƖėɆĐƪėɆŨƪƎɆƎėëƖƖėƖƖśėŝƢɆŨįɆƢķėɆƎļƖŏɆļŝɆƢķėɆĈƪƖļŝėƖƖȚɆƢķėɆİƎŨǂƢķɆ ļŝɆƎėǁėŝƪėɆëŝĐȚɆƢķėɆEƎŨƪƋȼƖɆƎėƖļŒļėŝĉėɆƢŨɆƢķėɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬșɆ ÕėɆĉŨŝƖļĐėƎɆƢŨƢëŒɆƎėǁėŝƪėɆƢŨɆĈėɆƢķėɆśŨƖƢɆëƋƋƎŨƋƎļëƢėɆĈėŝĉķśëƎŏɆ ëƖɆļƢɆƋƎŨǁļĐėƖɆëɆśŨƎėɆƖƢëĈŒėɆśėëƖƪƎėɆǈėëƎɆŨŝɆǈėëƎɆƢķëŝɆEƎŨƪƋɆƋƎŨǘƢɆ ĈėįŨƎėɆƢëǇș nëƢėƎļëŒļƢǈɆįŨƎɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆ ǂķŨŒėɆǂëƖɆƖėƢɆëƢɆɞǤǪɆśļŒŒļŨŝɆȩǥǣǥǣțɆɞǫɆśļŒŒļŨŝȪȚɆĐėƢėƎśļŝėĐɆǂļƢķɆ ƎėįėƎėŝĉėɆƢŨɆëɆĈėŝĉķśëƎŏɆŨįɆƢŨƢëŒɆëƖƖėƢƖȚɆŨįɆǂķļĉķɆļƢɆƎėƋƎėƖėŝƢƖɆ ǣșǦɼɆȩǥǣǥǣțɆǣșǥɼȪș QŝɆŒļŝėɆǂļƢķɆŨƪƎɆëƪĐļƢɆśėƢķŨĐŨŒŨİǈȚɆŨƪƎɆƋƎŨĉėĐƪƎėƖɆŨŝɆļŝĐļǁļĐƪëŒɆ ëĉĉŨƪŝƢɆĈëŒëŝĉėƖɆëŝĐɆĐļƖĉŒŨƖƪƎėƖɆǂėƎėɆƋėƎįŨƎśėĐɆƢŨɆëɆŒŨǂėƎɆ threshold, performance materiality, so as to reduce to an ëĉĉėƋƢëĈŒėɆŒėǁėŒɆƢķėɆƎļƖŏɆƢķëƢɆļŝĐļǁļĐƪëŒŒǈɆļśśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢƖɆ in individual account balances add up to a material amount across ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆǂķŨŒėș ėƎįŨƎśëŝĉėɆśëƢėƎļëŒļƢǈɆǂëƖɆƖėƢɆëƢɆǪǨɼɆȩǥǣǥǣțɆǪǨɼȪɆŨįɆśëƢėƎļëŒļƢǈɆ įŨƎɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆǂķŨŒėȚɆǂķļĉķɆėƍƪëƢėƖɆƢŨɆ ɞǥǩșǥǨɆśļŒŒļŨŝɆȩǥǣǥǣțɆɞǤǨɆśļŒŒļŨŝȪɆįŨƎɆƢķėɆEƎŨƪƋɆëŝĐɆɞǤǥșǪǨɆśļŒŒļŨŝɆ ȩǥǣǥǣțɆɞǩɆśļŒŒļŨŝȪɆįŨƎɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈșɆÕėɆëƋƋŒļėĐɆƢķļƖɆ percentage in our determination of performance materiality ĈėĉëƪƖėɆǂėɆĐļĐɆŝŨƢɆļĐėŝƢļįǈɆëŝǈɆįëĉƢŨƎƖɆļŝĐļĉëƢļŝİɆëŝɆėŒėǁëƢėĐɆ ŒėǁėŒɇŨįɆƎļƖŏșɆ We agreed to report to the Audit Committee any corrected or ƪŝĉŨƎƎėĉƢėĐɆļĐėŝƢļǘėĐɆśļƖƖƢëƢėśėŝƢƖɆėǇĉėėĐļŝİɆɞǤșǫɆśļŒŒļŨŝɆ ȩǥǣǥǣțɆɞǤɆśļŒŒļŨŝȪȚɆļŝɆëĐĐļƢļŨŝɆƢŨɆŨƢķėƎɆļĐėŝƢļǘėĐɆśļƖƖƢëƢėśėŝƢƖɆ ƢķëƢɇǂëƎƎëŝƢėĐɆƎėƋŨƎƢļŝİɆŨŝɆƍƪëŒļƢëƢļǁėɆİƎŨƪŝĐƖș {įɆƢķėɆEƎŨƪƋȼƖɆǤǣɆȩǥǣǥǣțɆǤǣȪɆƎėƋŨƎƢļŝİɆĉŨśƋŨŝėŝƢƖȚɆǂėɆƖƪĈŌėĉƢėĐɆ ƢķƎėėɆȩǥǣǥǣțɆįŨƪƎȪɆƢŨɆįƪŒŒɆƖĉŨƋėɆëƪĐļƢƖɆįŨƎɆEƎŨƪƋɆƋƪƎƋŨƖėƖɆëŝĐɆŨŝėɆ ȩǥǣǥǣțɆŝŨŝėȪɆƢŨɆƖƋėĉļǘėĐɆƎļƖŏȯįŨĉƪƖėĐɆëƪĐļƢɆƋƎŨĉėĐƪƎėƖșɆ¶ķėɆŒëƢƢėƎɆ ǂëƖɆŝŨƢɆǘŝëŝĉļëŒŒǈɆƖļİŝļǘĉëŝƢɆėŝŨƪİķɆƢŨɆƎėƍƪļƎėɆëɆįƪŒŒɆƖĉŨƋėɆëƪĐļƢɆ įŨƎɆEƎŨƪƋɆƋƪƎƋŨƖėƖȚɆĈƪƢɆĐļĐɆƋƎėƖėŝƢɆƖƋėĉļǘĉɆļŝĐļǁļĐƪëŒɆƎļƖŏƖɆƢķëƢɆ ŝėėĐėĐɆƢŨɆĈėɆëĐĐƎėƖƖėĐșɆ¶ķėɆĐėĉƎėëƖėɆļŝɆŝƪśĈėƎɆŨįɆĉŨśƋŨŝėŝƢƖɆ ƖƪĈŌėĉƢɆƢŨɆįƪŒŒɆƖĉŨƋėɆëƪĐļƢƖɆļƖɆëɆƎėƖƪŒƢɆŨįɆƢķėɆEƎŨƪƋɆĉŨśĈļŝļŝİɆƢǂŨɆ ĉŨśƋŨŝėŝƢƖɆƢŨİėƢķėƎɆļŝɆƢķėɆĉƪƎƎėŝƢɆǈėëƎș ÕėɆƖƪĈŌėĉƢėĐɆŨŝėɆȩǥǣǥǣțɆŝŨŝėȪɆĉŨśƋŨŝėŝƢɆƢŨɆƖƋėĉļǘėĐɆƎļƖŏȯ focused audit procedures over revenue, cost of sales and ĉŨśƋŒļëŝĉėɆǂļƢķɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝș DŨƎɆƢķėɆƎėƖļĐƪëŒɆƖļǇɆĉŨśƋŨŝėŝƢƖȚɆǂėɆƋėƎįŨƎśėĐɆëŝëŒǈƖļƖɆëƢɆëŝɆ ëİİƎėİëƢėĐɆEƎŨƪƋɆŒėǁėŒɆƢŨɆƎėȯėǇëśļŝėɆŨƪƎɆëƖƖėƖƖśėŝƢɆƢķëƢɆƢķėƎėɆ ǂėƎėɆŝŨɆƖļİŝļǘĉëŝƢɆƎļƖŏƖɆŨįɆśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢɆǂļƢķļŝɆƢķėƖėș The component materialities ranged from £17 million to £31 million ȩǥǣǥǣțɆɞǫɆśļŒŒļŨŝɆƢŨɆɞǤǧɆśļŒŒļŨŝȪȚɆëŝĐɆǂėƎėɆĐėƢėƎśļŝėĐɆķëǁļŝİɆ ƎėİëƎĐɆƢŨɆƢķėɆśļǇɆŨįɆƖļǒėɆëŝĐɆƎļƖŏɆƋƎŨǘŒėɆŨįɆƢķėɆEƎŨƪƋɆëĉƎŨƖƖɆ ƢķėɆĉŨśƋŨŝėŝƢƖș ¶ķėɆǂŨƎŏɆŨŝɆëŒŒɆŨįɆƢķėɆĉŨśƋŨŝėŝƢƖɆȩǥǣǥǣțɆëŒŒɆŨįɆƢķėɆĉŨśƋŨŝėŝƢƖȪȚɆ ļŝĉŒƪĐļŝİɆƢķėɆëƪĐļƢɆŨįɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈȚɆǂëƖɆƋėƎįŨƎśėĐɆĈǈɆƢķėɆ EƎŨƪƋɆƢėëśș 147 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 QŝĐėƋėŝĐėŝƢɆƪĐļƢŨƎȼƖɆ¡ėƋŨƎƢɆƢŨɆƢķėɆśėśĈėƎƖɆŨįɆ,ŝƢëļŝɆƋŒĉɆcontinued Revenue (%) EBITDA (pre corporate costs and bonus) (%) £ƙųǦƭ͘Ďğķųƙğ͘ƭñǓ̹͘Β̺ Net assets (%) 79 76 21 24 % coverage full scope 2021 % out of scope 2021 ͘Β͘ĐųǍğƙñĸğ͘ơƖğĐņǦğė͘ƙņơř͘ ́͘ķųĐƵơơğė͘ñƵėņƭ͘ƖƙųĐğėƵƙğơ͘˫˩˫˪͘ % coverage full scope 2020 % out of scope 2020 76% (2020: 79%) 77 61 23 25 14 75% (2020: 77%) 87 75 13 16 9 84% (2020: 87%) 99 97 1 3 97% (2020: 99%) ÕėɆǂėƎėɆëĈŒėɆƢŨɆƎėŒǈɆƪƋŨŝɆƢķėɆEƎŨƪƋȼƖɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒɆŨǁėƎɆ ǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİɆļŝɆƖėǁėƎëŒɆëƎėëƖɆŨįɆŨƪƎɆëƪĐļƢȚɆǂķėƎėɆŨƪƎɆĉŨŝƢƎŨŒƖɆ ƢėƖƢļŝİɆƖƪƋƋŨƎƢėĐɆƢķļƖɆëƋƋƎŨëĉķȚɆǂķļĉķɆėŝëĈŒėĐɆƪƖɆƢŨɆƎėĐƪĉėɆƢķėɆ ƖĉŨƋėɆŨįɆŨƪƎɆƖƪĈƖƢëŝƢļǁėɆëƪĐļƢɆǂŨƎŏȜɆļŝɆƢķėɆŨƢķėƎɆëƎėëƖɆƢķėɆƖĉŨƋėɆ ŨįɇƢķėɆëƪĐļƢɆǂŨƎŏɆƋėƎįŨƎśėĐɆǂëƖɆįƪŒŒǈɆƖƪĈƖƢëŝƢļǁėș ¶ķėɆĉŨśƋŨŝėŝƢƖɆǂļƢķļŝɆƢķėɆƖĉŨƋėɆŨįɆŨƪƎɆǂŨƎŏɆëĉĉŨƪŝƢėĐɆįŨƎɆƢķėɆ ƋėƎĉėŝƢëİėƖɆļŒŒƪƖƢƎëƢėĐɆĈėŒŨǂș 4 The impact of climate change on our audit QŝɆƋŒëŝŝļŝİɆŨƪƎɆëƪĐļƢȚɆǂėɆķëǁėɆĉŨŝƖļĐėƎėĐɆƢķėɆƋŨƢėŝƢļëŒɆļśƋëĉƢɆ ŨįɆĉŒļśëƢėɆĉķëŝİėɆŨŝɆƢķėɆEƎŨƪƋȼƖɆĈƪƖļŝėƖƖɆëŝĐɆļƢƖɆǘŝëŝĉļëŒɆ ƖƢëƢėśėŝƢƖșɆ¶ëŏļŝİɆļŝƢŨɆëĉĉŨƪŝƢɆƢķėɆŝëƢƪƎėɆŨįɆƢķėɆĈƪƖļŝėƖƖɆ operations, the level of headroom on the long term assets and the ƖŨŒǁėŝĉǈɆŨįɆƢķėɆEƎŨƪƋɆǂėɆĐļĐɆŝŨƢɆļĐėŝƢļįǈɆëŝǈɆƎļƖŏƖɆƢķëƢɆƖļİŝļǘĉëŝƢŒǈɆ ļśƋëĉƢɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋɆŨƎɆŨƪƎɆëƪĐļƢș We read the climate related disclosure in the front half of the ëŝŝƪëŒɆƎėƋŨƎƢɆëŝĐɆĉŨŝƖļĐėƎėĐɆĉŨŝƖļƖƢėŝĉǈɆǂļƢķɆƢķėɆǘŝëŝĉļëŒɆ ƖƢëƢėśėŝƢƖɆëŝĐɆŨƪƎɆëƪĐļƢɆŏŝŨǂŒėĐİėș 5 Going concern ¶ķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆƋƎėƋëƎėĐɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨŝɆƢķėɆ going concern basis as they do not intend to liquidate the Group or the Company or to cease their operations, and as they have ĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėɆEƎŨƪƋȼƖɆëŝĐɆƢķėɆŨśƋëŝǈȼƖɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆ śėëŝƖɆƢķëƢɆƢķļƖɆļƖɆƎėëŒļƖƢļĉșɆ¶ķėǈɆķëǁėɆëŒƖŨɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėƎėɆ ëƎėɆŝŨɆśëƢėƎļëŒɆƪŝĉėƎƢëļŝƢļėƖɆƢķëƢɆĉŨƪŒĐɆķëǁėɆĉëƖƢɆƖļİŝļǘĉëŝƢɆĐŨƪĈƢɆ over their ability to continue as a going concern for at least a year įƎŨśɆƢķėɆĐëƢėɆŨįɆëƋƋƎŨǁëŒɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆȩȹƢķėɆİŨļŝİɆ ĉŨŝĉėƎŝɆƋėƎļŨĐȺȪșɆ ÕėɆƪƖėĐɆŨƪƎɆŏŝŨǂŒėĐİėɆŨįɆƢķėɆEƎŨƪƋȚɆļƢƖɆļŝĐƪƖƢƎǈȚɆëŝĐɆƢķėɆİėŝėƎëŒɆ ėĉŨŝŨśļĉɆėŝǁļƎŨŝśėŝƢɆƢŨɆļĐėŝƢļįǈɆƢķėɆļŝķėƎėŝƢɆƎļƖŏƖɆƢŨɆļƢƖɆĈƪƖļŝėƖƖɆ śŨĐėŒɆëŝĐɆëŝëŒǈƖėĐɆķŨǂɆƢķŨƖėɆƎļƖŏƖɆśļİķƢɆëįįėĉƢɆƢķėɆEƎŨƪƋȼƖɆëŝĐɆ ŨśƋëŝǈȼƖɆǘŝëŝĉļëŒɆƎėƖŨƪƎĉėƖɆŨƎɆëĈļŒļƢǈɆƢŨɆĉŨŝƢļŝƪėɆŨƋėƎëƢļŨŝƖɆ ŨǁėƎɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆƋėƎļŨĐșɆ¶ķėɆƎļƖŏƖɆƢķëƢɆǂėɆĉŨŝƖļĐėƎėĐɆśŨƖƢɆ ŒļŏėŒǈɆƢŨɆëĐǁėƎƖėŒǈɆëįįėĉƢɆƢķėɆEƎŨƪƋȼƖɆëŝĐɆŨśƋëŝǈȼƖɆëǁëļŒëĈŒėɆ ǘŝëŝĉļëŒɆƎėƖŨƪƎĉėƖɆëŝĐɆśėƢƎļĉƖɆƎėŒėǁëŝƢɆƢŨɆĐėĈƢɆĉŨǁėŝëŝƢƖɆŨǁėƎɆƢķļƖɆ ƋėƎļŨĐɆǂėƎėțɆ Ɇ ¶ķėɆļśƋëĉƢɆŨįɆƖļİŝļǘĉëŝƢɆĉķëŝİėƖɆļŝɆƎėİƪŒëƢļŨŝɆëįįėĉƢļŝİɆƢķėɆ EƎŨƪƋȼƖɆëĈļŒļƢǈɆƢŨɆŨƋėƎëƢėɆļŝɆĉėƎƢëļŝɆƢėƎƎļƢŨƎļėƖȜɆëŝĐ Ɇ ¶ķėɆļśƋëĉƢɆŨįɆëɆƖļİŝļǘĉëŝƢɆĈƪƖļŝėƖƖɆĉŨŝƢļŝƪļƢǈɆļƖƖƪėɆëįįėĉƢļŝİɆ ƢķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŝİɆƖǈƖƢėśƖɆįŨƎɆëɆƖļİŝļǘĉëŝƢɆƋŨƎƢļŨŝɆŨįɆƢķėɆ İŨļŝİɆĉŨŝĉėƎŝɆƋėƎļŨĐșɆ We also considered less predictable but realistic second order impacts, such as political or policy changes that could affect ĐėśëŝĐɆļŝɆƢķėɆEƎŨƪƋȼƖɆśëƎŏėƢƖș ÕėɆĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆƢķėƖėɆƎļƖŏƖɆĉŨƪŒĐɆƋŒëƪƖļĈŒǈɆëįįėĉƢɆƢķėɆ liquidity or covenant compliance in the going concern period by ĉŨśƋëƎļŝİɆƖėǁėƎėȚɆĈƪƢɆƋŒëƪƖļĈŒėɆĐŨǂŝƖļĐėɆƖĉėŝëƎļŨƖɆƢķëƢɆĉŨƪŒĐɆ ëƎļƖėɆįƎŨśɆƢķėƖėɆƎļƖŏƖɆļŝĐļǁļĐƪëŒŒǈɆëŝĐɆĉŨŒŒėĉƢļǁėŒǈɆëİëļŝƖƢɆƢķėɆŒėǁėŒɆ ŨįɆëǁëļŒëĈŒėɆǘŝëŝĉļëŒɆƎėƖŨƪƎĉėƖɆëŝĐɆĉŨǁėŝëŝƢƖɆļŝĐļĉëƢėĐɆĈǈɆƢķėɆ EƎŨƪƋȼƖɆǘŝëŝĉļëŒɆįŨƎėĉëƖƢƖșɆ ÕėɆĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĐļƖĉŒŨƖƪƎėɆļŝɆpŨƢėɆǥɆƢŨɆ ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆİļǁėƖɆëɆįƪŒŒɆëŝĐɆëĉĉƪƎëƢėɆĐėƖĉƎļƋƢļŨŝɆŨįɆ ƢķėɆ$ļƎėĉƢŨƎƖȼɆëƖƖėƖƖśėŝƢɆŨįɆİŨļŝİɆĉŨŝĉėƎŝȚɆļŝĉŒƪĐļŝİɆƢķėɆļĐėŝƢļǘėĐɆ ƎļƖŏƖɆëŝĐȚɆĐėƋėŝĐėŝĉļėƖȚɆëŝĐɆƎėŒëƢėĐɆƖėŝƖļƢļǁļƢļėƖșɆ {ƪƎɆĉŨŝĉŒƪƖļŨŝƖɆĈëƖėĐɆŨŝɆƢķļƖɆǂŨƎŏț We consider that the Directors’ use of the going concern basis ŨįɆëĉĉŨƪŝƢļŝİɆļŝɆƢķėɆƋƎėƋëƎëƢļŨŝɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ ļƖɆëƋƋƎŨƋƎļëƢėȜ Ɇ ÕėɆķëǁėɆŝŨƢɆļĐėŝƢļǘėĐȚɆëŝĐɆĉŨŝĉƪƎɆǂļƢķɆƢķėɆ$ļƎėĉƢŨƎƖȼɆ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast ƖļİŝļǘĉëŝƢɆĐŨƪĈƢɆŨŝɆƢķėɆEƎŨƪƋȼƖɆŨƎɆŨśƋëŝǈȼƖɆëĈļŒļƢǈɆƢŨɆĉŨŝƢļŝƪėɆ ëƖɆëɆİŨļŝİɆĉŨŝĉėƎŝɆįŨƎɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆƋėƎļŨĐȜɆëŝĐ Ɇ ÕėɆķëǁėɆŝŨƢķļŝİɆśëƢėƎļëŒɆƢŨɆëĐĐɆŨƎɆĐƎëǂɆëƢƢėŝƢļŨŝɆƢŨɆļŝɆƎėŒëƢļŨŝɆ ƢŨɆƢķėɆ$ļƎėĉƢŨƎƖȼɆƖƢëƢėśėŝƢɆļŝɆpŨƢėɆǥɆƢŨɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ ŨŝɆƢķėɆƪƖėɆŨįɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆŨįɆëĉĉŨƪŝƢļŝİɆǂļƢķɆŝŨɆ śëƢėƎļëŒɆƪŝĉėƎƢëļŝƢļėƖɆƢķëƢɆśëǈɆĉëƖƢɆƖļİŝļǘĉëŝƢɆĐŨƪĈƢɆŨǁėƎɆƢķėɆ Group and Company’s use of that basis for the going concern ƋėƎļŨĐȚɆëŝĐɆǂėɆįŨƪŝĐɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĐļƖĉŒŨƖƪƎėɆļŝɆpŨƢėɆǥɆƢŨɆ ĈėɆëĉĉėƋƢëĈŒėș LŨǂėǁėƎȚɆëƖɆǂėɆĉëŝŝŨƢɆƋƎėĐļĉƢɆëŒŒɆįƪƢƪƎėɆėǁėŝƢƖɆŨƎɆĉŨŝĐļƢļŨŝƖɆëŝĐɆ as subsequent events may result in outcomes that are inconsistent ǂļƢķɆŌƪĐİėśėŝƢƖɆƢķëƢɆǂėƎėɆƎėëƖŨŝëĈŒėɆëƢɆƢķėɆƢļśėɆƢķėǈɆǂėƎėɆśëĐėȚɆ the above conclusions are not a guarantee that the Group or the ŨśƋëŝǈɆǂļŒŒɆĉŨŝƢļŝƪėɆļŝɆŨƋėƎëƢļŨŝșɆ Entain plc | Annual Report 2021 148 Financ ial statements ǩɆɆDƎëƪĐɆëŝĐɆĈƎėëĉķėƖɆŨįɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆ ȱɇëĈļŒļƢǈɇƢŨɇĐėƢėĉƢ Identifying and responding to risks of material misstatement due to fraud. ¶ŨɆļĐėŝƢļįǈɆƎļƖŏƖɆŨįɆśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢɆĐƪėɆƢŨɆįƎëƪĐɆȩȹįƎëƪĐɆ ƎļƖŏƖȺȪɆǂėɆëƖƖėƖƖėĐɆėǁėŝƢƖɆŨƎɆĉŨŝĐļƢļŨŝƖɆƢķëƢɆĉŨƪŒĐɆļŝĐļĉëƢėɆëŝɆ incentive or pressure to commit fraud or provide an opportunity to ĉŨśśļƢɆįƎëƪĐșɆ{ƪƎɆƎļƖŏɆëƖƖėƖƖśėŝƢɆƋƎŨĉėĐƪƎėƖɆļŝĉŒƪĐėĐț Enquiring of Directors, and internal audit and inspection of policy documentation as to the Group’s high-level policies and procedures to prevent and detect fraud including the internal ëƪĐļƢɆįƪŝĉƢļŨŝȚɆëŝĐɆƢķėɆEƎŨƪƋȼƖɆĉķëŝŝėŒɆįŨƎɆȹǂķļƖƢŒėĈŒŨǂļŝİȺȚɆëƖɆ ǂėŒŒɆëƖɆǂķėƢķėƎɆƢķėǈɆķëǁėɆŏŝŨǂŒėĐİėɆŨįɆëŝǈɆëĉƢƪëŒȚɆƖƪƖƋėĉƢėĐɆ ŨƎɆëŒŒėİėĐɆįƎëƪĐș Reading Board, Audit Committee and Remuneration ŨśśļƢƢėėɆśļŝƪƢėƖș Considering remuneration incentive schemes and performance ƢëƎİėƢƖɆįŨƎɆ$ļƎėĉƢŨƎƖɆëŝĐɆķŨǂɆƢķėƖėɆëƎėɆļśƋëĉƢėĐɆĈǈɆƖėƋëƎëƢėŒǈɆ ĐļƖĉŒŨƖėĐɆļƢėśƖș Ɇ ½ƖļŝİɆëŝëŒǈƢļĉëŒɆƋƎŨĉėĐƪƎėƖɆƢŨɆļĐėŝƢļįǈɆëŝǈɆƪŝƪƖƪëŒɆŨƎɆ ƪŝėǇƋėĉƢėĐɆƎėŒëƢļŨŝƖķļƋƖș Ɇ QĐėŝƢļįǈļŝİɆįƎëƪĐɆƎļƖŏƖȚɆǂļƢķɆëƖƖļƖƢëŝĉėɆįƎŨśɆŨƪƎɆįŨƎėŝƖļĉɆ specialists, based on discussions of the circumstances of ƢķėɆEƎŨƪƋș ÕėɆĉŨśśƪŝļĉëƢėĐɆļĐėŝƢļǘėĐɆįƎëƪĐɆƎļƖŏƖɆƢķƎŨƪİķŨƪƢɆƢķėɆëƪĐļƢɆƢėëśɆ ëŝĐɆƎėśëļŝėĐɆëŒėƎƢɆƢŨɆëŝǈɆļŝĐļĉëƢļŨŝƖɆŨįɆįƎëƪĐɆƢķƎŨƪİķŨƪƢɆƢķėɆëƪĐļƢș ƖɆƎėƍƪļƎėĐɆĈǈɆëƪĐļƢļŝİɆƖƢëŝĐëƎĐƖȚɆëŝĐɆƢëŏļŝİɆļŝƢŨɆëĉĉŨƪŝƢɆ ƋŨƖƖļĈŒėɆƋƎėƖƖƪƎėƖɆƢŨɆśėėƢɆƋƎŨǘƢɆƢëƎİėƢƖȚɆǂėɆƋėƎįŨƎśɆƋƎŨĉėĐƪƎėƖɆ ƢŨɆëĐĐƎėƖƖɆƢķėɆƎļƖŏɆŨįɆśëŝëİėśėŝƢɆŨǁėƎƎļĐėɆŨįɆĉŨŝƢƎŨŒƖɆëŝĐɆƢķėɆ ƎļƖŏɆŨįɆįƎëƪĐƪŒėŝƢɆƎėǁėŝƪėɆƎėĉŨİŝļƢļŨŝȚɆļŝɆƋëƎƢļĉƪŒëƎɆƢķėɆƎļƖŏɆƢķëƢɆ revenue from the Group’s online operations is recorded incorrectly, ƢķëƢɆśëŝëİėśėŝƢɆśëǈɆĈėɆļŝɆëɆƋŨƖļƢļŨŝɆƢŨɆśëŏėɆļŝëƋƋƎŨƋƎļëƢėɆ ëĉĉŨƪŝƢļŝİɆėŝƢƎļėƖȚɆëŝĐɆƢķėɆƎļƖŏɆŨįɆĈļëƖɆļŝɆëĉĉŨƪŝƢļŝİɆėƖƢļśëƢėƖɆëŝĐɆ judgements such as accounting for acquisitions and the recognition ŨįɆļŝƢëŝİļĈŒėɆëƖƖėƢƖȚɆƋƎŨǁļƖļŨŝƖɆįŨƎɆİëśļŝİɆƢëǇɆŨĈŒļİëƢļŨŝƖȚɆ ƋƎŨǁļƖļŨŝƖɆįŨƎɆļśƋëļƎśėŝƢɆëŝĐɆƋėŝƖļŨŝɆëƖƖƪśƋƢļŨŝƖș Further detail in respect of online revenue recognition is set out in ƢķėɆŏėǈɆëƪĐļƢɆśëƢƢėƎɆĐļƖĉŒŨƖƪƎėɆļŝɆƖėĉƢļŨŝɆǥɆŨįɆƢķļƖɆƎėƋŨƎƢș We also performed procedures including: Identifying journal entries and other adjustments to test for all įƪŒŒɆƖĉŨƋėɆĉŨśƋŨŝėŝƢƖɆĈëƖėĐɆŨŝɆƎļƖŏɆĉƎļƢėƎļëɆëŝĐɆĉŨśƋëƎļŝİɆƢķėɆ ļĐėŝƢļǘėĐɆėŝƢƎļėƖɆƢŨɆƖƪƋƋŨƎƢļŝİɆĐŨĉƪśėŝƢëƢļŨŝșɆ¶ķėƖėɆļŝĉŒƪĐėĐțɆ ƪŝƪƖƪëŒɆƎėǁėŝƪėɆƋëļƎļŝİƖȜɆƪŝƪƖƪëŒɆŌŨƪƎŝëŒƖɆǂļƢķɆëɆĉƎėĐļƢɆŨƎɆĐėĈļƢɆ ƢŨɆėŝƢƎǈɆƢŨɆĉëƖķȜɆëŝĐȚɆƪŝƪƖƪëŒɆŌŨƪƎŝëŒƖɆļŝɆƖėŒĐŨśɆƪƖėĐɆƋëļƎļŝİƖș Ɇ ,ǁëŒƪëƢėĐɆƢķėɆĈƪƖļŝėƖƖɆƋƪƎƋŨƖėɆŨįɆƖļİŝļǘĉëŝƢɆ ƪŝƪƖƪëŒɆƢƎëŝƖëĉƢļŨŝƖș Ɇ ƖƖėƖƖļŝİɆǂķėƢķėƎɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆėƖƢļśëƢėƖɆëƎėɆ ļŝĐļĉëƢļǁėɆŨįɆëɆƋŨƢėŝƢļëŒɆĈļëƖș Identifying and responding to risks of material misstatement related to compliance with laws and regulations. ÕėɆļĐėŝƢļǘėĐɆëƎėëƖɆŨįɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆƢķëƢɆĉŨƪŒĐɆƎėëƖŨŝëĈŒǈɆ ĈėɆėǇƋėĉƢėĐɆƢŨɆķëǁėɆëɆśëƢėƎļëŒɆėįįėĉƢɆŨŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ įƎŨśɆŨƪƎɆİėŝėƎëŒɆĉŨśśėƎĉļëŒɆëŝĐɆƖėĉƢŨƎɆėǇƋėƎļėŝĉėɆëŝĐɆƢķƎŨƪİķɆ ĐļƖĉƪƖƖļŨŝɆǂļƢķɆƢķėɆ$ļƎėĉƢŨƎƖɆëŝĐɆŨƢķėƎɆśëŝëİėśėŝƢɆȩëƖɆƎėƍƪļƎėĐɆ by auditing standards), and from inspection of the Group’s ƎėİƪŒëƢŨƎǈɆëŝĐɆŒėİëŒɆĉŨƎƎėƖƋŨŝĐėŝĉėɆëŝĐɆĐļƖĉƪƖƖėĐɆǂļƢķɆƢķėɆ Directors and other management the policies and procedures ƎėİëƎĐļŝİɆĉŨśƋŒļëŝĉėɆǂļƢķɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖșɆ ƖɆƢķėɆEƎŨƪƋɆļƖɆƎėİƪŒëƢėĐȚɆŨƪƎɆëƖƖėƖƖśėŝƢɆŨįɆƎļƖŏƖɆļŝǁŨŒǁėĐɆİëļŝļŝİɆ an understanding of the control environment including the entity’s ƋƎŨĉėĐƪƎėƖɆįŨƎɆĉŨśƋŒǈļŝİɆǂļƢķɆƎėİƪŒëƢŨƎǈɆƎėƍƪļƎėśėŝƢƖșɆ ÕėɆĉŨśśƪŝļĉëƢėĐɆļĐėŝƢļǘėĐɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆƢķƎŨƪİķŨƪƢɆŨƪƎɆ team and remained alert to any indications of non-compliance ƢķƎŨƪİķŨƪƢɆƢķėɆëƪĐļƢșɆ ¶ķėɆƋŨƢėŝƢļëŒɆėįįėĉƢɆŨįɆƢķėƖėɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆŨŝɆƢķėɆǘŝëŝĉļëŒɆ ƖƢëƢėśėŝƢƖɆǁëƎļėƖɆĉŨŝƖļĐėƎëĈŒǈș DļƎƖƢŒǈȚɆƢķėɆEƎŨƪƋɆļƖɆƖƪĈŌėĉƢɆƢŨɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆƢķëƢɆĐļƎėĉƢŒǈɆ ëįįėĉƢɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļŝĉŒƪĐļŝİɆǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİɆ ŒėİļƖŒëƢļŨŝɆȩļŝĉŒƪĐļŝİɆƎėŒëƢėĐɆĉŨśƋëŝļėƖɆŒėİļƖŒëƢļŨŝȪȚɆëŝĐɆƢëǇëƢļŨŝɆ ŒėİļƖŒëƢļŨŝɆëŝĐɆǂėɆëƖƖėƖƖėĐɆƢķėɆėǇƢėŝƢɆŨįɆĉŨśƋŒļëŝĉėɆǂļƢķɆƢķėƖėɆ ŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆëƖɆƋëƎƢɆŨįɆŨƪƎɆƋƎŨĉėĐƪƎėƖɆŨŝɆƢķėɆƎėŒëƢėĐɆ ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢɆļƢėśƖșɆ ©ėĉŨŝĐŒǈȚɆƢķėɆEƎŨƪƋɆļƖɆƖƪĈŌėĉƢɆƢŨɆśëŝǈɆŨƢķėƎɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆ ǂķėƎėɆƢķėɆĉŨŝƖėƍƪėŝĉėƖɆŨįɆŝŨŝȯĉŨśƋŒļëŝĉėɆĉŨƪŒĐɆķëǁėɆëɆśëƢėƎļëŒɆ ėįįėĉƢɆŨŝɆëśŨƪŝƢƖɆŨƎɆĐļƖĉŒŨƖƪƎėƖɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆįŨƎɆ ļŝƖƢëŝĉėɆƢķƎŨƪİķɆƢķėɆļśƋŨƖļƢļŨŝɆŨįɆǘŝėƖɆŨƎɆŒļƢļİëƢļŨŝɆŨƎɆƢķėɆŒŨƖƖɆ ŨįɆƢķėɆEƎŨƪƋȼƖɆŒļĉėŝĉėɆƢŨɆŨƋėƎëƢėșɆÕėɆļĐėŝƢļǘėĐɆƢķėɆįŨŒŒŨǂļŝİɆ ëƎėëƖɆëƖɆƢķŨƖėɆśŨƖƢɆŒļŏėŒǈɆƢŨɆķëǁėɆƖƪĉķɆëŝɆėįįėĉƢțɆëŝƢļȯĈƎļĈėƎǈɆ and corruption, recognising the nature of the Group’s operations, and responsible gaming legislation across all of the territories ǂķėƎėɆƢķėɆEƎŨƪƋɆİėŝėƎëƢėƖɆśëƢėƎļëŒɆƎėǁėŝƪėƖșɆƪĐļƢļŝİɆƖƢëŝĐëƎĐƖɆ limit the required audit procedures to identify non-compliance ǂļƢķɆƢķėƖėɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆƢŨɆėŝƍƪļƎǈɆŨįɆƢķėɆ$ļƎėĉƢŨƎƖɆ and other management and inspection of regulatory and legal ĉŨƎƎėƖƋŨŝĐėŝĉėȚɆļįɆëŝǈșɆ¶ķėƎėįŨƎėɆļįɆëɆĈƎėëĉķɆŨįɆŨƋėƎëƢļŨŝëŒɆ regulations is not disclosed to us or evident from relevant ĉŨƎƎėƖƋŨŝĐėŝĉėȚɆëŝɆëƪĐļƢɆǂļŒŒɆŝŨƢɆĐėƢėĉƢɆƢķëƢɆĈƎėëĉķș ŨŝƢėǇƢɆŨįɆƢķėɆëĈļŒļƢǈɆŨįɆƢķėɆëƪĐļƢɆƢŨɆĐėƢėĉƢɆįƎëƪĐɆŨƎɆ ĈƎėëĉķėƖɆŨįɇŒëǂɆŨƎɆƎėİƪŒëƢļŨŝș {ǂļŝİɆƢŨɆƢķėɆļŝķėƎėŝƢɆŒļśļƢëƢļŨŝƖɆŨįɆëŝɆëƪĐļƢȚɆƢķėƎėɆļƖɆëŝɆ ƪŝëǁŨļĐëĈŒėɆƎļƖŏɆƢķëƢɆǂėɆśëǈɆŝŨƢɆķëǁėɆĐėƢėĉƢėĐɆƖŨśėɆśëƢėƎļëŒɆ śļƖƖƢëƢėśėŝƢƖɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆėǁėŝɆƢķŨƪİķɆǂėɆķëǁėɆ ƋƎŨƋėƎŒǈɆƋŒëŝŝėĐɆëŝĐɆƋėƎįŨƎśėĐɆŨƪƎɆëƪĐļƢɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆ ëƪĐļƢļŝİɆƖƢëŝĐëƎĐƖșɆDŨƎɆėǇëśƋŒėȚɆƢķėɆįƪƎƢķėƎɆƎėśŨǁėĐɆŝŨŝȯ ĉŨśƋŒļëŝĉėɆǂļƢķɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆļƖɆįƎŨśɆƢķėɆėǁėŝƢƖɆëŝĐɆ ƢƎëŝƖëĉƢļŨŝƖɆƎėǙėĉƢėĐɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƢķėɆŒėƖƖɆŒļŏėŒǈɆƢķėɆ ļŝķėƎėŝƢŒǈɆŒļśļƢėĐɆƋƎŨĉėĐƪƎėƖɆƎėƍƪļƎėĐɆĈǈɆëƪĐļƢļŝİɆƖƢëŝĐëƎĐƖɆǂŨƪŒĐɆ ļĐėŝƢļįǈɆļƢșɆ QŝɆëĐĐļƢļŨŝȚɆëƖɆǂļƢķɆëŝǈɆëƪĐļƢȚɆƢķėƎėɆƎėśëļŝėĐɆëɆķļİķėƎɆƎļƖŏɆŨįɆ non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of ļŝƢėƎŝëŒɆĉŨŝƢƎŨŒƖșɆ{ƪƎɆëƪĐļƢɆƋƎŨĉėĐƪƎėƖɆëƎėɆĐėƖļİŝėĐɆƢŨɆĐėƢėĉƢɆ śëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢșɆÕėɆëƎėɆŝŨƢɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƋƎėǁėŝƢļŝİɆ ŝŨŝȯĉŨśƋŒļëŝĉėɆŨƎɆįƎëƪĐɆëŝĐɆĉëŝŝŨƢɆĈėɆėǇƋėĉƢėĐɆƢŨɆĐėƢėĉƢɆŝŨŝȯ ĉŨśƋŒļëŝĉėɆǂļƢķɆëŒŒɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖș 149 Overview | Strategic report | Governance | Financial statements E ntain plc | Annual Report 2021 QŝĐėƋėŝĐėŝƢɆƪĐļƢŨƎȼƖɆ¡ėƋŨƎƢɆƢŨɆƢķėɆśėśĈėƎƖɆŨįɆ,ŝƢëļŝɆƋŒĉɆcontinued 7 We have nothing to report on the other information ļŝɇƢķėɇŝŝƪëŒɆ¡ėƋŨƎƢɆ The Directors are responsible for the other information presented ļŝɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆƢŨİėƢķėƎɆǂļƢķɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ {ƪƎɆŨƋļŝļŨŝɆŨŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆĐŨėƖɆŝŨƢɆĉŨǁėƎɆƢķėɆŨƢķėƎɆ ļŝįŨƎśëƢļŨŝɆëŝĐȚɆëĉĉŨƎĐļŝİŒǈȚɆǂėɆĐŨɆŝŨƢɆėǇƋƎėƖƖɆëŝɆëƪĐļƢɆŨƋļŝļŨŝɆ ŨƎȚɆėǇĉėƋƢɆëƖɆėǇƋŒļĉļƢŒǈɆƖƢëƢėĐɆĈėŒŨǂȚɆëŝǈɆįŨƎśɆŨįɆëƖƖƪƎëŝĉėɆ ĉŨŝĉŒƪƖļŨŝɆƢķėƎėŨŝșɆ Our responsibility is to read the other information and, in doing so, ĉŨŝƖļĐėƎɆǂķėƢķėƎȚɆĈëƖėĐɆŨŝɆŨƪƎɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƪĐļƢɆǂŨƎŏȚɆ ƢķėɆļŝįŨƎśëƢļŨŝɆƢķėƎėļŝɆļƖɆśëƢėƎļëŒŒǈɆśļƖƖƢëƢėĐɆŨƎɆļŝĉŨŝƖļƖƢėŝƢɆǂļƢķɆ ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨƎɆŨƪƎɆëƪĐļƢɆŏŝŨǂŒėĐİėșɆëƖėĐɆƖŨŒėŒǈɆŨŝɆ ƢķëƢɆǂŨƎŏɆǂėɆķëǁėɆŝŨƢɆļĐėŝƢļǘėĐɆśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢƖɆļŝɆƢķėɆ ŨƢķėƎɆļŝįŨƎśëƢļŨŝșɆ Directors’ remuneration report QŝɆëĐĐļƢļŨŝɆƢŨɆŨƪƎɆëƪĐļƢɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆ have engaged us to audit the information in the Directors’ Remuneration Report that is described as having been audited, ǂķļĉķɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĐėĉļĐėĐɆƢŨɆƋƎėƋëƎėɆëƖɆļįɆƢķėɆŨśƋëŝǈɆ ǂëƖɆƎėƍƪļƎėĐɆƢŨɆĉŨśƋŒǈɆǂļƢķɆƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆ©ĉķėĐƪŒėɆǫɆƢŨɆ¶ķėɆ dëƎİėɆëŝĐɆnėĐļƪśȯƖļǒėĐɆŨśƋëŝļėƖɆëŝĐɆEƎŨƪƋƖɆȩĉĉŨƪŝƢƖɆëŝĐɆ ¡ėƋŨƎƢƖȪɆ¡ėİƪŒëƢļŨŝƖɆǥǣǣǫɆȩ©QɆǥǣǣǫɆpŨșɆǧǤǣȪɆśëĐėɆƪŝĐėƎɆƢķėɆ½bɆ ŨśƋëŝļėƖɆĉƢɆǥǣǣǩș In our opinion the part of the Directors’ Remuneration Report to ĈėɆëƪĐļƢėĐɆķëƖɆĈėėŝɆƋƎŨƋėƎŒǈɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆ ½bɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩȚɆëƖɆļįɆƢķŨƖėɆƎėƍƪļƎėśėŝƢƖɆëƋƋŒļėĐɆƢŨɆ ƢķėɆŨśƋëŝǈșɆ Disclosures of emerging and principal risks and longer- ƢėƎśɇǁļëĈļŒļƢǈɆ ÕėɆëƎėɆƎėƍƪļƎėĐɆƢŨɆƋėƎįŨƎśɆƋƎŨĉėĐƪƎėƖɆƢŨɆļĐėŝƢļįǈɆǂķėƢķėƎɆƢķėƎėɆ ļƖɆëɆśëƢėƎļëŒɆļŝĉŨŝƖļƖƢėŝĉǈɆĈėƢǂėėŝɆƢķėɆ$ļƎėĉƢŨƎƖȼɆĐļƖĉŒŨƖƪƎėƖɆļŝɆ ƎėƖƋėĉƢɆŨįɆėśėƎİļŝİɆëŝĐɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆëŝĐɆƢķėɆǁļëĈļŒļƢǈɆƖƢëƢėśėŝƢȚɆ ëŝĐɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆŨƪƎɆëƪĐļƢɆŏŝŨǂŒėĐİėșɆ ëƖėĐɆŨŝɆƢķŨƖėɆƋƎŨĉėĐƪƎėƖȚɆǂėɆķëǁėɆŝŨƢķļŝİɆśëƢėƎļëŒɆƢŨɆëĐĐɆŨƎɆ ĐƎëǂɆëƢƢėŝƢļŨŝɆƢŨɆļŝɆƎėŒëƢļŨŝɆƢŨțɆ Ɇ ¶ķėɆ$ļƎėĉƢŨƎƖȼɆĉŨŝǘƎśëƢļŨŝɆǂļƢķļŝɆƢķėɆÔļëĈļŒļƢǈɆ©ƢëƢėśėŝƢɆŨŝɆ ƋëİėɆǫǩɆƢķëƢɆƢķėǈɆķëǁėɆĉëƎƎļėĐɆŨƪƢɆëɆƎŨĈƪƖƢɆëƖƖėƖƖśėŝƢɆŨįɆƢķėɆ ėśėƎİļŝİɆëŝĐɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆįëĉļŝİɆƢķėɆEƎŨƪƋȚɆļŝĉŒƪĐļŝİɆƢķŨƖėɆ ƢķëƢɆǂŨƪŒĐɆƢķƎėëƢėŝɆļƢƖɆĈƪƖļŝėƖƖɆśŨĐėŒȚɆįƪƢƪƎėɆƋėƎįŨƎśëŝĉėȚɆ ƖŨŒǁėŝĉǈɆëŝĐɆŒļƍƪļĐļƢǈȜɆ Ɇ ¶ķėɆ,śėƎİļŝİɆëŝĐɆƎļŝĉļƋëŒɆ¡ļƖŏƖɆĐļƖĉŒŨƖƪƎėƖɆĐėƖĉƎļĈļŝİɆƢķėƖėɆ ƎļƖŏƖɆëŝĐɆķŨǂɆėśėƎİļŝİɆƎļƖŏƖɆëƎėɆļĐėŝƢļǘėĐȚɆëŝĐɆėǇƋŒëļŝļŝİɆķŨǂɆ ƢķėǈɆëƎėɆĈėļŝİɆśëŝëİėĐɆëŝĐɆśļƢļİëƢėĐȜɆëŝĐɆ Ɇ ¶ķėɆ$ļƎėĉƢŨƎƖȼɆėǇƋŒëŝëƢļŨŝɆļŝɆƢķėɆÔļëĈļŒļƢǈɆ©ƢëƢėśėŝƢɆŨįɆķŨǂɆƢķėǈɆ ķëǁėɆëƖƖėƖƖėĐɆƢķėɆƋƎŨƖƋėĉƢƖɆŨįɆƢķėɆEƎŨƪƋȚɆŨǁėƎɆǂķëƢɆƋėƎļŨĐɆ ƢķėǈɆķëǁėɆĐŨŝėɆƖŨɆëŝĐɆǂķǈɆƢķėǈɆĉŨŝƖļĐėƎėĐɆƢķëƢɆƋėƎļŨĐɆƢŨɆĈėɆ ëƋƋƎŨƋƎļëƢėȚɆëŝĐɆƢķėļƎɆƖƢëƢėśėŝƢɆëƖɆƢŨɆǂķėƢķėƎɆƢķėǈɆķëǁėɆëɆ ƎėëƖŨŝëĈŒėɆėǇƋėĉƢëƢļŨŝɆƢķëƢɆƢķėɆEƎŨƪƋɆǂļŒŒɆĈėɆëĈŒėɆƢŨɆĉŨŝƢļŝƪėɆļŝɆ operation and meet its liabilities as they fall due over the period ŨįɆƢķėļƎɆëƖƖėƖƖśėŝƢȚɆļŝĉŒƪĐļŝİɆëŝǈɆƎėŒëƢėĐɆĐļƖĉŒŨƖƪƎėƖɆĐƎëǂļŝİɆ ëƢƢėŝƢļŨŝɆƢŨɆëŝǈɆŝėĉėƖƖëƎǈɆƍƪëŒļǘĉëƢļŨŝƖɆŨƎɆëƖƖƪśƋƢļŨŝƖșɆ ëƖėĐɆŨŝɆƢķėɆëĈŨǁėɆƋƎŨĉėĐƪƎėƖȚɆǂėɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėɆëĈŨǁėɆ ĐļƖĉŒŨƖƪƎėƖɆëƎėɆśëƢėƎļëŒŒǈɆĉŨŝƖļƖƢėŝƢɆǂļƢķɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ ëŝĐɆŨƪƎɆëƪĐļƢɆŏŝŨǂŒėĐİėș {ƪƎɆǂŨƎŏɆļƖɆŒļśļƢėĐɆƢŨɆëƖƖėƖƖļŝİɆƢķėƖėɆśëƢƢėƎƖɆļŝɆƢķėɆĉŨŝƢėǇƢɆŨįɆ ŨŝŒǈɆƢķėɆŏŝŨǂŒėĐİėɆëĉƍƪļƎėĐɆĐƪƎļŝİɆŨƪƎɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ ëƪĐļƢșɆƖɆǂėɆĉëŝŝŨƢɆƋƎėĐļĉƢɆëŒŒɆįƪƢƪƎėɆėǁėŝƢƖɆŨƎɆĉŨŝĐļƢļŨŝƖɆëŝĐɆëƖɆ subsequent events may result in outcomes that are inconsistent ǂļƢķɆŌƪĐİėśėŝƢƖɆƢķëƢɆǂėƎėɆƎėëƖŨŝëĈŒėɆëƢɆƢķėɆƢļśėɆƢķėǈɆǂėƎėɆśëĐėȚɆ the absence of anything to report on these statements is not a İƪëƎëŝƢėėɆëƖɆƢŨɆƢķėɆEƎŨƪƋȼƖɆëŝĐɆŨśƋëŝǈȼƖɆŒŨŝİėƎȯƢėƎśɆǁļëĈļŒļƢǈș ŨƎƋŨƎëƢėɆİŨǁėƎŝëŝĉėɆĐļƖĉŒŨƖƪƎėƖɆɆ Ɇ ÕėɆëƎėɆƎėƍƪļƎėĐɆƢŨɆƋėƎįŨƎśɆƋƎŨĉėĐƪƎėƖɆƢŨɆļĐėŝƢļįǈɆǂķėƢķėƎɆƢķėƎėɆ ļƖɆëɆśëƢėƎļëŒɆļŝĉŨŝƖļƖƢėŝĉǈɆĈėƢǂėėŝɆƢķėɆ$ļƎėĉƢŨƎƖȼɆĉŨƎƋŨƎëƢėɆ İŨǁėƎŝëŝĉėɆĐļƖĉŒŨƖƪƎėƖɆëŝĐɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆŨƪƎɆ ëƪĐļƢɆŏŝŨǂŒėĐİėș ëƖėĐɆŨŝɆƢķŨƖėɆƋƎŨĉėĐƪƎėƖȚɆǂėɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆėëĉķɆŨįɆƢķėɆ įŨŒŒŨǂļŝİɆļƖɆśëƢėƎļëŒŒǈɆĉŨŝƖļƖƢėŝƢɆǂļƢķɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆ ŨƪƎɆëƪĐļƢɆŏŝŨǂŒėĐİėțɆ The Directors’ statement that they consider that the annual ƎėƋŨƎƢɆëŝĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƢëŏėŝɆëƖɆëɆǂķŨŒėɆļƖɆįëļƎȚɆĈëŒëŝĉėĐɆ and understandable, and provides the information necessary for shareholders to assess the Group’s position and performance, ĈƪƖļŝėƖƖɆśŨĐėŒɆëŝĐɆƖƢƎëƢėİǈȜɆ Ɇ ¶ķėɆƖėĉƢļŨŝɆŨįɆƢķėɆëŝŝƪëŒɆƎėƋŨƎƢɆĐėƖĉƎļĈļŝİɆƢķėɆǂŨƎŏɆŨįɆƢķėɆ ƪĐļƢɆŨśśļƢƢėėȚɆļŝĉŒƪĐļŝİɆƢķėɆƖļİŝļǘĉëŝƢɆļƖƖƪėƖɆƢķëƢɆƢķėɆƪĐļƢɆ ŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆļŝɆƎėŒëƢļŨŝɆƢŨɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆëŝĐɆ ķŨǂɆƢķėƖėɆļƖƖƪėƖɆǂėƎėɆëĐĐƎėƖƖėĐȜɆëŝĐ Ɇ ¶ķėɆƖėĉƢļŨŝɆŨįɆƢķėɆëŝŝƪëŒɆƎėƋŨƎƢɆƢķëƢɆĐėƖĉƎļĈėƖɆƢķėɆƎėǁļėǂɆŨįɆ ƢķėɆėįįėĉƢļǁėŝėƖƖɆŨįɆƢķėɆEƎŨƪƋȼƖɆƎļƖŏɆśëŝëİėśėŝƢɆëŝĐɆļŝƢėƎŝëŒɆ ĉŨŝƢƎŨŒɆƖǈƖƢėśƖș ÕėɆëƎėɆƎėƍƪļƎėĐɆƢŨɆƎėǁļėǂɆƢķėɆƋëƎƢɆŨįɆƢķėɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆ ©ƢëƢėśėŝƢɆƎėŒëƢļŝİɆƢŨɆƢķėɆEƎŨƪƋȼƖɆĉŨśƋŒļëŝĉėɆǂļƢķɆƢķėɆƋƎŨǁļƖļŨŝƖɆŨįɆ ƢķėɆ½bɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆŨĐėɆƖƋėĉļǘėĐɆĈǈɆƢķėɆdļƖƢļŝİɆ¡ƪŒėƖɆ įŨƎɆŨƪƎɆƎėǁļėǂșɆÕėɆķëǁėɆŝŨƢķļŝİɆƢŨɆƎėƋŨƎƢɆļŝɆƢķļƖɆƎėƖƋėĉƢșɆ Entain plc | Annual Report 2021 150 Financ ial statements ǫɆɆ¡ėƖƋėĉƢļǁėɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆ $ļƎėĉƢŨƎƖȼɆƎėƖƋŨŝƖļĈļŒļƢļėƖ ƖɆėǇƋŒëļŝėĐɆśŨƎėɆįƪŒŒǈɆļŝɆƢķėļƎɆƖƢëƢėśėŝƢɆƖėƢɆŨƪƢɆŨŝɆƋëİėɆǪǪȚɆ ƢķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎțɆƢķėɆƋƎėƋëƎëƢļŨŝɆŨįɆƢķėɆǘŝëŝĉļëŒɆ ƖƢëƢėśėŝƢƖɆļŝĉŒƪĐļŝİɆĈėļŝİɆƖëƢļƖǘėĐɆƢķëƢɆƢķėǈɆİļǁėɆëɆƢƎƪėɆëŝĐɆ įëļƎɆǁļėǂȜɆƖƪĉķɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒɆëƖɆƢķėǈɆĐėƢėƎśļŝėɆļƖɆŝėĉėƖƖëƎǈɆƢŨɆ ėŝëĈŒėɆƢķėɆƋƎėƋëƎëƢļŨŝɆŨįɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƢķëƢɆëƎėɆįƎėėɆįƎŨśɆ śëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢȚɆǂķėƢķėƎɆĐƪėɆƢŨɆįƎëƪĐɆŨƎɆėƎƎŨƎȜɆëƖƖėƖƖļŝİɆ the Group and parent Company’s ability to continue as a going ĉŨŝĉėƎŝȚɆĐļƖĉŒŨƖļŝİȚɆëƖɆëƋƋŒļĉëĈŒėȚɆśëƢƢėƎƖɆƎėŒëƢėĐɆƢŨɆİŨļŝİɆĉŨŝĉėƎŝȜɆ and using the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease ŨƋėƎëƢļŨŝƖȚɆŨƎɆķëǁėɆŝŨɆƎėëŒļƖƢļĉɆëŒƢėƎŝëƢļǁėɆĈƪƢɆƢŨɆĐŨɆƖŨșɆ ƪĐļƢŨƎȼƖɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆ {ƪƎɆŨĈŌėĉƢļǁėƖɆëƎėɆƢŨɆŨĈƢëļŝɆƎėëƖŨŝëĈŒėɆëƖƖƪƎëŝĉėɆëĈŨƪƢɆǂķėƢķėƎɆ ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆǂķŨŒėɆëƎėɆįƎėėɆįƎŨśɆśëƢėƎļëŒɆ śļƖƖƢëƢėśėŝƢȚɆǂķėƢķėƎɆĐƪėɆƢŨɆįƎëƪĐɆŨƎɆėƎƎŨƎȚɆëŝĐɆƢŨɆļƖƖƪėɆŨƪƎɆ ŨƋļŝļŨŝɆļŝɆëŝɆëƪĐļƢŨƎȼƖɆƎėƋŨƎƢșɆ¡ėëƖŨŝëĈŒėɆëƖƖƪƎëŝĉėɆļƖɆëɆķļİķɆŒėǁėŒɆ of assurance, but does not guarantee that an audit conducted ļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQ©ƖɆȩ½bȪɆǂļŒŒɆëŒǂëǈƖɆĐėƢėĉƢɆëɆśëƢėƎļëŒɆ śļƖƖƢëƢėśėŝƢɆǂķėŝɆļƢɆėǇļƖƢƖșɆnļƖƖƢëƢėśėŝƢƖɆĉëŝɆëƎļƖėɆįƎŨśɆįƎëƪĐɆ or error and are considered material if, individually or in aggregate, ƢķėǈɆĉŨƪŒĐɆƎėëƖŨŝëĈŒǈɆĈėɆėǇƋėĉƢėĐɆƢŨɆļŝǙƪėŝĉėɆƢķėɆėĉŨŝŨśļĉɆ ĐėĉļƖļŨŝƖɆŨįɆƪƖėƎƖɆƢëŏėŝɆŨŝɆƢķėɆĈëƖļƖɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ A fuller description of our responsibilities is provided on the FRC’s ǂėĈƖļƢėɆëƢɆǂǂǂșįƎĉșŨƎİșƪŏȦëƪĐļƢŨƎƖƎėƖƋŨŝƖļĈļŒļƢļėƖșɆ 9 The purpose of our audit work and to whom we owe ŨƪƎɇƎėƖƋŨŝƖļĈļŒļƢļėƖɆɆ This report is made solely to the Company’s members, as a body, ļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆ©ėĉƢļŨŝɆǫǣɆȩĉȪɆŨįɆƢķėɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆ ĉƢɆǥǣǣǩɆëŝĐɆƢķėɆƢėƎśƖɆŨįɆŨƪƎɆėŝİëİėśėŝƢɆĈǈɆƢķėɆŨśƋëŝǈșɆ {ƪƎɆëƪĐļƢɆǂŨƎŏɆķëƖɆĈėėŝɆƪŝĐėƎƢëŏėŝɆƖŨɆƢķëƢɆǂėɆśļİķƢɆƖƢëƢėɆƢŨɆƢķėɆ ŨśƋëŝǈȼƖɆśėśĈėƎƖɆƢķŨƖėɆśëƢƢėƎƖɆǂėɆëƎėɆƎėƍƪļƎėĐɆƢŨɆƖƢëƢėɆƢŨɆ ƢķėśɆļŝɆëŝɆëƪĐļƢŨƎȼƖɆƎėƋŨƎƢȚɆëŝĐɆƢķėɆįƪƎƢķėƎɆśëƢƢėƎƖɆǂėɆëƎėɆƎėƍƪļƎėĐɆ ƢŨɆƖƢëƢėɆƢŨɆƢķėśɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆƢėƎśƖɆëİƎėėĐɆǂļƢķɆƢķėɆ ŨśƋëŝǈȚɆëŝĐɆįŨƎɆŝŨɆŨƢķėƎɆƋƪƎƋŨƖėșɆ¶ŨɆƢķėɆįƪŒŒėƖƢɆėǇƢėŝƢɆƋėƎśļƢƢėĐɆ ĈǈɆŒëǂȚɆǂėɆĐŨɆŝŨƢɆëĉĉėƋƢɆŨƎɆëƖƖƪśėɆƎėƖƋŨŝƖļĈļŒļƢǈɆƢŨɆëŝǈŨŝėɆŨƢķėƎɆ than the Company and the Company’s members, as a body, for our ëƪĐļƢɆǂŨƎŏȚɆįŨƎɆƢķļƖɆƎėƋŨƎƢȚɆŨƎɆįŨƎɆƢķėɆŨƋļŝļŨŝƖɆǂėɆķëǁėɆįŨƎśėĐș Mark Flanagan Responsible Individual įŨƎɆëŝĐɆŨŝɆĈėķëŒįɆŨįɆbnEɆddȚɆ©ƢëƢƪƢŨƎǈɆƪĐļƢŨƎ Chartered Accountants and Recognised Auditors ©ƢɆpļĉķŨŒëƖɆLŨƪƖė ëƎŏɆ¡Ũǂ Nottingham NG1 6FQ ǦɆnëƎĉķɆǥǣǥǥ 151 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Consolidated income statement for the year ended 31 December 2021 2021 2020 Notes Underlying items £m Separately disclosed Items (note 6) £m Total £m Underlying items £m Separately disclosed items (note 6) £m Total £m Net Gaming Revenue 3,886.3 – 3,886.3 3,628.5 – 3,628.5 VAT/GST (56.3) – (56.3) (66.9) – (66.9) Revenue 5 3,830.0 – 3,830.0 3,561.6 – 3,561.6 Cost of sales 7 (1,394.2) – (1,394.2) (1,253.0) – (1,253.0) EƎŨƖƖɆƋƎŨǘƢ 2,435.8 – 2,435.8 2,308.6 – 2,308.6 Administrative costs 7 (1,789.2) (128.3) (1,917.5) (1,718.9) (170.6) (1,889.5) Contribution 1,851.5 – 1,851.5 1,740.2 – 1,740.2 Administrative costs excluding marketing (1,204.9) (128.3) (1,333.2) (1,150.5) (170.6) (1,321.1) EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƖķëƎėɆ ŨįɆƎėƖƪŒƢƖɆįƎŨśɆŌŨļŝƢɆǁėŝƢƪƎėƖɆëŝĐɆëƖƖŨĉļëƢėƖ 646.6 (128.3) 518.3 589.7 (170.6) 419.1 Share of results from joint ventures and associates 16,17 (162.5) – (162.5) (60.2) – (60.2) EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪ 484.1 (128.3) 355.8 529.5 (170.6) 358.9 Finance expense 8 (77.1) (5.8) (82.9) (76.5) (5.3) (81.8) Finance income 8 2.1 – 2.1 2.3 – 2.3 Gains/(losses) arising from change in fair value ŨįɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 8 62.0 – 62.0 (61.8) – (61.8) Gains/(losses) arising from foreign exchange on debt instruments 8 56.2 – 56.2 (42.9) – (42.9) ƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƢëǇ 527.3 (134.1) 393.2 350.6 (175.9) 174.7 Income tax 10 (90.1) (27.5) (117.6) (63.0) 2.1 (60.9) ƎŨǘƢȦȩŒŨƖƖȪɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖ 437.2 (161.6) 275.6 287.6 (173.8) 113.8 Loss for the year from discontinued operations after tax 21 (5.6) (9.3) (14.9) (14.4) (20.0) (34.4) ƎŨǘƢȦȩŒŨƖƖȪɆįŨƎɆƢķėɆǈėëƎ 431.6 (170.9) 260.7 273.2 (193.8) 79.4 Attributable to: Equity holders of the parent 420.2 (170.9) 249.3 251.6 (193.8) 57.8 Non-controlling interests 11.4 – 11.4 21.6 – 21.6 431.6 (170.9) 260.7 273.2 (193.8) 79.4 ,ëƎŝļŝİƖɆƋėƎɆƖķëƎėɆŨŝɆƋƎŨǘƢɆįŨƎɆƢķėɆǈėëƎ from continuing operations 54.3p 1 45.1p 63.5p 15.8p DƎŨśɆƋƎŨǘƢɆįŨƎɆƢķėɆǈėëƎ 12 53.3p 1 42.6p 61.0p 9.9p $ļŒƪƢėĐɆėëƎŝļŝİƖɆƋėƎɆƖķëƎėɆŨŝɆƋƎŨǘƢɆįŨƎɆƢķėɆǈėëƎɆ from continuing operations 53.8p 1 44.7p 62.8p 15.6p DƎŨśɆƋƎŨǘƢɆįŨƎɆƢķėɆǈėëƎ 12 52.8p 1 42.2p 60.4p 9.8p Memo EBITDAR 2 898.8 19.2 918.0 862.1 141.4 1,003.5 Rent and associated costs 3 (17.1) – (17.1) (19.0) – (19.0) EBITDA 881.7 19.2 900.9 843.1 141.4 984.5 Share based payments (12.3) – (12.3) (14.8) – (14.8) Depreciation, amortisation and impairment (222.8) (147.5) (370.3) (238.6) (312.0) (550.6) Share of results from joint ventures and associates (162.5) – (162.5) (60.2) – (60.2) EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪ 484.1 (128.3) 355.8 529.5 (170.6) 358.9 ǤșɆ ¶ķėɆĉëŒĉƪŒëƢļŨŝɆŨįɆƪŝĐėƎŒǈļŝİɆėëƎŝļŝİƖɆƋėƎɆƖķëƎėɆķëƖɆĈėėŝɆëĐŌƪƖƢėĐɆįŨƎɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖȚɆëŝĐɆįŨƎɆƢķėɆƎėśŨǁëŒɆŨįɆįŨƎėļİŝɆėǇĉķëŝİėɆǁŨŒëƢļŒļƢǈɆëƎļƖļŝİɆŨŝɆǘŝëŝĉļëŒɆ instruments as it provides a better understanding of the underlying performance of the Group. See note 12 for further details. 2. Included within the Income Statement and Memo above are certain non-statutory measures. The use of these items and the reconciliation to their statutory equivalents is provided above and on page 66 of the report. 3. Rent and associated costs include VAT and rent not captured by IFRS 16. These are predominantly driven by VAT on rental charges not being recoverable and held over leases. ¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǤǨǪɆƢŨɆǥǣǦɆįŨƎśɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș Entain plc | Annual Report 2021 152 Financial statements Consolidated statement of comprehensive income for the year ended 31 December 2021 Notes 2021 £m 2020 £m ƎŨǘƢɆįŨƎɆƢķėɆǈėëƎ 260.7 79.4 Other comprehensive (expense)/income: QƢėśƖɆƢķëƢɆśëǈɆĈėɆƎėĉŒëƖƖļǘėĐɆƢŨɆƋƎŨǘƢɆŨƎɆŒŨƖƖț Currency differences on translation of foreign operations (128.3) 137.7 ¶ŨƢëŒɆļƢėśƖɆƢķëƢɆśëǈɆĈėɆƎėĉŒëƖƖļǘėĐɆƢŨɆƋƎŨǘƢɆŨƎɆŒŨƖƖ (128.3) 137.7 QƢėśƖɆƢķëƢɆǂļŒŒɆŝŨƢɆĈėɆƎėĉŒëƖƖļǘėĐɆƢŨɆƋƎŨǘƢɆŨƎɆŒŨƖƖț ¡ėȯśėëƖƪƎėśėŝƢɆŨįɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆƖĉķėśė 30 31.2 (0.2) ¶ëǇɆŨŝɆƎėȯśėëƖƪƎėśėŝƢɆŨįɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆƖĉķėśė 10 (10.9) 0.1 Share of associate other comprehensive (expense)/income 17 – 0.3 ¶ŨƢëŒɆļƢėśƖɆƢķëƢɆǂļŒŒɆŝŨƢɆĈėɆƎėĉŒëƖƖļǘėĐɆƢŨɆƋƎŨǘƢɆŨƎɆŒŨƖƖ 20.3 0.2 Other comprehensive (expense)/income for the year, net of tax (108.0) 137.9 Total comprehensive income for the year 152.7 217.3 Attributable to: Equity holders of the parent: 141.3 195.7 Non-controlling interests 11.4 21.6 ¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǤǨǪɆƢŨɆǥǣǦɆįŨƎśɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș 153 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Notes 2021 £m 2020 £m Assets Non-current assets Goodwill 13 3,217.0 3,061.1 Intangible assets 13 2,152.5 2,105.4 Property, plant and equipment 15 467.2 470.2 Interest in joint venture 16 9.7 6.2 Interest in associates and other investments 17 58.4 29.4 Trade and other receivables 18 3.0 3.8 {ƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖ 26 0.3 4.4 Deferred tax assets 10 141.4 129.8 ¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆëƖƖėƢ 30 95.1 64.2 6,144.6 5,874.5 Current assets Trade and other receivables 18 539.8 475.8 Income and other taxes recoverable 23.1 13.6 $ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 26 57.4 – Cash and cash equivalents 19 487.1 706.7 1,107.4 1,196.1 ƖƖėƢƖɆļŝɆĐļƖƋŨƖëŒɆİƎŨƪƋɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė 21 – 199.1 Total assets 7,252.0 7,269.7 Liabilities Current liabilities Trade and other payables 20 (695.8) (687.4) Balances with customers 27 (205.9) (241.1) Lease liabilities 22 (78.2) (89.8) Interest bearing loans and borrowings 23 (121.1) (14.1) Corporate tax liabilities (59.1) (66.4) Provisions 24 (43.5) (49.4) $ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 26 – (26.1) {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 26 (36.1) (147.5) (1,239.7) (1,321.8) Non-current liabilities Interest bearing loans and borrowings 23 (2,161.3) (2,085.7) Lease liabilities 22 (215.5) (248.2) Deferred tax liabilities 10 (408.0) (331.7) Provisions 24 (6.4) (19.5) {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 26 (52.6) (9.3) (2,843.8) (2,694.4) dļëĈļŒļƢļėƖɆļŝɆĐļƖƋŨƖëŒɆİƎŨƪƋɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė 21 – (172.0) Total liabilities (4,083.5) (4,188.2) Net assets 3,168.5 3,081.5 Equity Issued share capital 28 4.8 4.8 Share Premium 1,207.3 1,206.6 Merger Reserve 2,527.4 2,527.4 Translation reserve 63.4 191.7 Retained earnings (635.8) (901.3) ,ƍƪļƢǈɆƖķëƎėķŨŒĐėƎƖȼɆįƪŝĐƖ 3,167.1 3,029.2 Non-controlling interests 35 1.4 52.3 ¶ŨƢëŒɆƖķëƎėķŨŒĐėƎƖȼɆėƍƪļƢǈ 3,168.5 3,081.5 ¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨŝɆƋëİėƖɆǤǨǥɆƢŨɆǥǣǦɆǂėƎėɆëƋƋƎŨǁėĐɆĈǈɆƢķėɆŨëƎĐɆŨįɆ$ļƎėĉƢŨƎƖɆŨŝɆǦɆnëƎĉķɆǥǣǥǥɆëŝĐɆƖļİŝėĐɆŨŝɆļƢƖɆĈėķëŒįɆĈǈ J Nygaard-Andersen R Wood ķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎɆ $ėƋƪƢǈɆķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎȦķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎ Consolidated balance sheet (Company number 4685V) At 31 December 2021 Entain plc | Annual Report 2021 154 Financial statements Issued share capital £m Share premium £m Merger Reserve £m Translation reserve 1 £m Retained earnings £m Equity shareholders’ funds £m Non- controlling Interests (note 35) £m Total Shareholders’ equity £m At 1 January 2020 4.8 1,198.0 2,527.4 54.0 (971.4) 2,812.8 43.1 2,855.9 ƎŨǘƢɆįŨƎɆƢķėɆǈėëƎ ––––57.8 57.8 21.6 79.4 Other comprehensive income – – – 137.7 0.2 137.9 – 137.9 Total comprehensive income – – – 137.7 58.0 195.7 21.6 217.3 Share options exercised –8.6–––8.6–8.6 Share-based payments charge––––12.1 12.1 – 12.1 Equity dividends (note 11) ––––––(12.4) (12.4) At 31 December 2020 4.8 1,206.6 2,527.4 191.7 (901.3) 3,029.2 52.3 3,081.5 At 1 January 2021 4.8 1,206.6 2,527.4 191.7 (901.3) 3,029.2 52.3 3,081.5 ƎŨǘƢɆįŨƎɆƢķėɆǈėëƎ ––––249.3 249.3 11.4 260.7 Other comprehensive income – – – (128.3) 20.3 (108.0) – (108.0) Total comprehensive income – – – (128.3) 269.6 141.3 11.4 152.7 Share options exercised –0.7–––0.7–0.7 Share-based payments charge ––––6.96.9–6.9 Business combinations (note 32) ––––(50.0) (50.0) 14.2 (35.8) Purchase of non-controlling interests (note 35) ––––39.0 39.0 (52.0) (13.0) Equity dividends (note 11) ––––––(24.5) (24.5) At 31 December 2021 4.8 1,207.3 2,527.4 63.4 (635.8) 3,167.1 1.4 3,168.5 ǤșɆ ¶ķėɆƢƎëŝƖŒëƢļŨŝɆƎėƖėƎǁėɆļƖɆƪƖėĐɆƢŨɆƎėĉŨƎĐɆėǇĉķëŝİėɆĐļįįėƎėŝĉėƖɆëƎļƖļŝİɆįƎŨśɆƢķėɆƢƎëŝƖŒëƢļŨŝɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƖƪĈƖļĐļëƎļėƖɆǂļƢķɆŝŨŝȯ©ƢėƎŒļŝİɆįƪŝĉƢļŨŝëŒɆĉƪƎƎėŝĉļėƖș ¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǤǨǪɆƢŨɆǥǣǦɆįŨƎśɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș Consolidated statement of changes in equity for the year ended 31 December 2021 155 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Notes 2021 £m 2020 £m ëƖķɆİėŝėƎëƢėĐɆĈǈɆŨƋėƎëƢļŨŝƖ 29 803.8 864.8 Income taxes paid (98.7) (59.2) pėƢɆǘŝëŝĉėɆėǇƋėŝƖėɆƋëļĐ (73.3) (95.3) p ėƢɆĉëƖķɆİėŝėƎëƢėĐɆįƎŨśɆŨƋėƎëƢļŝİɆëĉƢļǁļƢļėƖ 631.8 710.3  ëƖķɆǙŨǂƖɆįƎŨśɆļŝǁėƖƢļŝİɆëĉƢļǁļƢļėƖț Acquisitions (449.8) – Cash acquired on business combinations 22.3 – C ash disposed on sale of business (53.7) – Purchase of intangible assets (106.4) (101.6) Purcha se of property, plant and equipment (69.8) (62.6) Proceeds from the sale of property, plant and equipment including disposal of shops 1.9 6.9 P urchase of investments in associates and other investments (29.4) – I nvestment in joint ventures (164.4) (61.8) pėƢɆĉëƖķɆƪƖėĐɆļŝɆļŝǁėƖƢļŝİɆëĉƢļǁļƢļėƖ (849.3) (219.1)  ëƖķɆǙŨǂƖɆįƎŨśɆǘŝëŝĉļŝİɆëĉƢļǁļƢļėƖț Proceeds from issue of ordinary shares 0.7 8.6 N et proceeds from borrowings 797.2 – Repayment of borrowings (566.1) (43.5) © ėƢƢŒėśėŝƢɆŨįɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëŝĐɆŨƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆ (149.8) (11.3) P ayment of lease liabilities (87.9) (85.9) Equity dividends paid 1 (24.5) (12.4) pėƢɆĉëƖķɆƪƖėĐɆļŝɆǘŝëŝĉļŝİɆëĉƢļǁļƢļėƖɆ (30.4) (144.5) Net (decrease)/increase in cash and cash equivalents (247.9) 346.7 E ffect of changes in foreign exchange rates (14.8) 13.0 C ash and cash equivalents at beginning of the year 749.8 390.1  ëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆëƢɆėŝĐɆŨįɆƢķėɆǈėëƎ 2 487.1 749.8 ŨŝƖŨŒļĐëƢėĐɆƖƢëƢėśėŝƢɆŨįɆĉëƖķɆǙŨǂƖ for the year ended 31 December 2021 Entain plc | Annual Report 2021 156 Financ ial statements 1. Equity dividends paid represent dividends paid to non-controlling interests of £24 . 5m (2020: £1 2. 4m). 2. Cash and cash equivalents at the beginning of the year include £43 .1m of cash within assets in disposal group classified as held for sale. The notes on pages 157 to 203 form an integral part of these consolidated financial statements. ǤɆŨƎƋŨƎëƢėɆļŝįŨƎśëƢļŨŝ Entain PLC (“the Company”) is a company incorporated and domiciled in the Isle of Man on 5 January 2010 whose shares are traded publicly on the London Stock Exchange. The principal activities of the Company and its subsidiaries (“the Group”) are described in the ƖƢƎëƢėİļĉɆƎėƋŨƎƢșɆ¶ķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋɆįŨƎɆƢķėɆǈėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆǂėƎėɆëƪƢķŨƎļƖėĐɆįŨƎɆļƖƖƪėɆļŝɆ accordance with a resolution of the Directors on 3 March 2022. The nature of the Group’s operations and its principal activities are set out in note 5. ǥɆëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝ ¶ķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋɆķëǁėɆĈėėŝɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQŝƢėƎŝëƢļŨŝëŒɆDļŝëŝĉļëŒɆ¡ėƋŨƎƢļŝİɆ©ƢëŝĐëƎĐƖɆ adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and with the Isle of Man Companies Act 2006 applicable to companies reporting under IFRSs. The accounting policies set out in this section as detailed have been applied consistently year on year other than for the changes in accounting policies set out in note 3. Going concern ¶ķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆƋƎėƋëƎėĐɆƪŝĐėƎɆƢķėɆķļƖƢŨƎļĉëŒɆĉŨƖƢɆĉŨŝǁėŝƢļŨŝɆƪŝŒėƖƖɆŨƢķėƎǂļƖėɆƖƢëƢėĐșɆQŝɆëĐŨƋƢļŝİɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆ ĈëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨŝƖļĐėƎėĐɆƢķėɆĉƪƎƎėŝƢɆƢƎëĐļŝİɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆEƎŨƪƋȚɆƢķėɆǘŝëŝĉļëŒɆ forecasts and the principal risks and uncertainties, including the ongoing impact of Covid-19. In addition, the Directors have considered all matters discussed in connection with the long-term viability statement including the modelling of “severe but plausible” downside scenarios such as legislation changes impacting the Group’s Online business and new lockdowns affecting the Group’s Retail operations. $ėƖƋļƢėɆƢķėɆŝėƢɆĉƪƎƎėŝƢɆŒļëĈļŒļƢǈɆƋŨƖļƢļŨŝȚɆƢķėɆŒėǁėŒɆŨįɆƢķėɆEƎŨƪƋȼƖɆëǁëļŒëĈŒėɆĉëƖķɆȩĉɞǧǣǣśȪȚɆëǁëļŒëĈŒėɆǘŝëŝĉļŝİɆįëĉļŒļƢļėƖɆȩļŝĉŒƪĐļŝİɆëŝɆ undrawn revolving credit facility of c£500m) and the forecast covenant headroom even under the sensitised downside scenarios, the Directors believe that the Group is well placed to manage the risks and uncertainties that it faces. As such, the Directors have a ƎėëƖŨŝëĈŒėɆėǇƋėĉƢëƢļŨŝɆƢķëƢɆƢķėɆEƎŨƪƋɆǂļŒŒɆķëǁėɆëĐėƍƪëƢėɆǘŝëŝĉļëŒɆƎėƖŨƪƎĉėƖɆƢŨɆĉŨŝƢļŝƪėɆļŝɆŨƋėƎëƢļŨŝëŒɆėǇļƖƢėŝĉėɆëŝĐɆķëǁėȚɆƢķėƎėįŨƎėȚɆ ĉŨŝƖļĐėƎėĐɆļƢɆëƋƋƎŨƋƎļëƢėɆƢŨɆëĐŨƋƢɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș ¶ķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆƋƎėƖėŝƢėĐɆļŝɆŨƪŝĐƖɆ©ƢėƎŒļŝİɆȩɞȪșɆŒŒɆǁëŒƪėƖɆëƎėɆļŝɆśļŒŒļŨŝƖɆȩɞśȪɆƎŨƪŝĐėĐɆƢŨɆŨŝėɆĐėĉļśëŒɆƋŒëĉėɆ ėǇĉėƋƢɆǂķėƎėɆŨƢķėƎǂļƖėɆļŝĐļĉëƢėĐșɆ¶ķėɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆķëǁėɆĈėėŝɆļŝĉŒƪĐėĐɆǂļƢķļŝɆƢķėɆëƋƋƎŨƋƎļëƢėɆĉŒëƖƖļǘĉëƢļŨŝƖɆļŝɆƢķėɆ consolidated income statement. Further details are given in note 6. ǦɆķëŝİėƖɆļŝɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖ DƎŨśɆǤɆëŝƪëƎǈɆǥǣǥǤɆƢķėɆEƎŨƪƋɆķëƖɆŝŨƢɆĈėėŝɆƎėƍƪļƎėĐɆƢŨɆëĐŨƋƢȚɆįŨƎɆƢķėɆǘƎƖƢɆƢļśėȚɆëŝǈɆŝėǂɆƖƢëŝĐëƎĐƖȚɆļŝƢėƎƋƎėƢëƢļŨŝƖȚɆŨƎɆëśėŝĐśėŝƢƖɆëƖɆ there have been no new issues effective in the reporting year. ǧɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ ǧșǤɆëƖļƖɆŨįɆĉŨŝƖŨŒļĐëƢļŨŝ ¶ķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆĉŨśƋƎļƖėɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋɆëƢɆǦǤɆ$ėĉėśĈėƎɆėëĉķɆǈėëƎșɆ¶ķėɆĉŨŝƖŨŒļĐëƢļŨŝɆ has been performed using the results to 31 December for all subsidiaries, using consistent accounting policies. With the exception of a ƖśëŒŒɆŝƪśĈėƎɆŨįɆļśśëƢėƎļëŒɆƖƪĈƖļĐļëƎļėƖȚɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķŨƖėɆƖƪĈƖļĐļëƎļėƖɆëƎėɆƋƎėƋëƎėĐɆƢŨɆǦǤɆ$ėĉėśĈėƎșɆŨŝƢƎŨŒɆļƖɆëĉķļėǁėĐɆ where the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect these returns through its power over the investee. All intragroup transactions, balances, income and expenses are eliminated on consolidation. Subsidiaries are consolidated, using the acquisition method of accounting, from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred from the Group. On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at fair value at the date of acquisition. Any excess of the cost of acquisition over the įëļƎɆǁëŒƪėƖɆŨįɆƢķėɆƖėƋëƎëƢėŒǈɆļĐėŝƢļǘëĈŒėɆŝėƢɆëƖƖėƢƖɆëĉƍƪļƎėĐɆļƖɆƎėĉŨİŝļƖėĐɆëƖɆİŨŨĐǂļŒŒșɆÕķėƎėɆŝėĉėƖƖëƎǈȚɆëĐŌƪƖƢśėŝƢƖɆëƎėɆśëĐėɆƢŨɆƢķėɆ ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƖƪĈƖļĐļëƎļėƖɆƢŨɆĈƎļŝİɆƢķėɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆƪƖėĐɆļŝɆŒļŝėɆǂļƢķɆƢķŨƖėɆƪƖėĐɆĈǈɆƢķėɆEƎŨƪƋș ǧșǥɆƎļƢļĉëŒɆëĉĉŨƪŝƢļŝİɆėƖƢļśëƢėƖɆëŝĐɆŌƪĐİėśėŝƢƖ ¶ķėɆƋƎėƋëƎëƢļŨŝɆŨįɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆƎėƍƪļƎėƖɆƢķėɆƪƖėɆŨįɆëƖƖƪśƋƢļŨŝƖȚɆėƖƢļśëƢėƖɆëŝĐɆŌƪĐİėśėŝƢƖɆëĈŨƪƢɆįƪƢƪƎėɆĉŨŝĐļƢļŨŝƖșɆ½ƖėɆŨįɆ available information and application of judgement are inherent in the formation of estimates. Actual results in the future may differ from those reported. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ for the year ended 31 December 2021 157 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǧɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) ǧșǥɆƎļƢļĉëŒɆëĉĉŨƪŝƢļŝİɆėƖƢļśëƢėƖɆëŝĐɆŌƪĐİėśėŝƢƖɆ(continued) Judgements Management believes that the areas where judgement has been applied are: – accounting for uncertain tax positions (note 18); and – separately disclosed items (note 6). Accounting for uncertain tax positions The Group is subject to various forms of tax in a number of jurisdictions. Given the nature of the industry within which the Group operates, the tax and regulatory regimes are continuously changing and, as such, the Group is exposed to a small number of uncertain tax positions. Judgement is applied in or order to adequately provide for uncertain tax positions where it is believed that it is more likely than not that ëŝɆėĉŨŝŨśļĉɆŨƪƢǙŨǂɆǂļŒŒɆëƎļƖėșɆQŝɆƋëƎƢļĉƪŒëƎȚɆĐƪƎļŝİɆǥǣǥǤɆŌƪĐİėśėŝƢɆķëƖɆĈėėŝɆëƋƋŒļėĐɆļŝɆƢķėɆEƎŨƪƋȼƖɆëĉĉŨƪŝƢļŝİɆįŨƎɆEƎėėŏɆƢëǇɆëŝĐɆįƪƎƢķėƎɆ disclosure is given in note 18. Separately disclosed items To assist in understanding the underlying performance of the Group, management applies judgement to identify those items that are deemed to warrant separate disclosure due to either their nature or size. Whilst not limited to, the following items of pre-tax income and expense are generally disclosed separately: – amortisation of acquired intangibles resulting from IFRS 3 “Business Combinations” fair value exercises; – ƋƎŨǘƢƖɆŨƎɆŒŨƖƖėƖɆŨŝɆĐļƖƋŨƖëŒȚɆĉŒŨƖƪƎėȚɆŨƎɆļśƋëļƎśėŝƢɆŨįɆŝŨŝȯĉƪƎƎėŝƢɆëƖƖėƢƖɆŨƎɆĈƪƖļŝėƖƖėƖȜ – corporate transaction and restructuring costs; – legal, regulatory and tax litigation; – changes in the fair value of contingent consideration; and – the related tax effect of these items. ŝǈɆŨƢķėƎɆŝŨŝȯƎėĉƪƎƎļŝİɆļƢėśƖɆëƎėɆĉŨŝƖļĐėƎėĐɆļŝĐļǁļĐƪëŒŒǈɆįŨƎɆĉŒëƖƖļǘĉëƢļŨŝɆëƖɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆĈǈɆǁļƎƢƪėɆŨįɆƢķėļƎɆŝëƢƪƎėɆŨƎɆƖļǒėșɆ During 2021 the Group separately disclosed a net charge on continuing operations of £134.1m including £144.2m of amortisation of acquired intangibles resulting from IFRS 3. The separate disclosure of these items allows a clearer understanding of the trading performance on a consistent and comparable basis, ƢŨİėƢķėƎɆǂļƢķɆëŝɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆėįįėĉƢɆŨįɆŝŨŝȯƎėĉƪƎƎļŝİɆŨƎɆŒëƎİėɆļŝĐļǁļĐƪëŒɆƢƎëŝƖëĉƢļŨŝƖɆƪƋŨŝɆƢķėɆŨǁėƎëŒŒɆƋƎŨǘƢëĈļŒļƢǈɆŨįɆƢķėɆEƎŨƪƋș ¶ķėɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆķëǁėɆĈėėŝɆļŝĉŒƪĐėĐɆǂļƢķļŝɆƢķėɆëƋƋƎŨƋƎļëƢėɆĉŒëƖƖļǘĉëƢļŨŝƖɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆļŝĉŨśėɆƖƢëƢėśėŝƢșɆ Further details are given in note 6. Estimates nëŝëİėśėŝƢɆĈėŒļėǁėƖɆƢķëƢɆƢķėɆëƎėëɆǂķėƎėɆƖļİŝļǘĉëŝƢɆėƖƢļśëƢėƖɆķëǁėɆĈėėŝɆśëĐėɆǂļƢķļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢɆëƎėț – accounting for business combinations (note 32). The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised. Further information about key assumptions concerning the future and other key sources of estimation uncertainty are set out below; Business combinations For business combinations, the Group estimates the fair value of the consideration transferred, which can include assumptions about the future business performance of the business acquired and an appropriate discount rate to determine the fair value of any contingent consideration. The Group then estimates the fair value of assets acquired and liabilities assumed in the business combination, including any separately ļĐėŝƢļǘëĈŒėɆļŝƢëŝİļĈŒėɆëƖƖėƢƖșɆ¶ķėƖėɆėƖƢļśëƢėƖɆëŒƖŨɆƎėƍƪļƎėɆļŝƋƪƢƖɆëŝĐɆëƖƖƪśƋƢļŨŝƖɆļŝĉŒƪĐļŝİɆįƪƢƪƎėɆėëƎŝļŝİƖȚɆĉƪƖƢŨśėƎɆëƢƢƎļƢļŨŝɆƎëƢėƖɆëŝĐɆ discount rates. The Group engages external experts to support the valuation process, where appropriate. IFRS 3 “Business Combinations” allows the Group to recognise provisional fair values if the initial accounting for the business combination is incomplete. The fair value of contingent consideration recognised in business combinations is reassessed at each reporting date, using updated ļŝƋƪƢƖɆëŝĐɆëƖƖƪśƋƢļŨŝƖɆĈëƖėĐɆŨŝɆƢķėɆŒëƢėƖƢɆǘŝëŝĉļëŒɆįŨƎėĉëƖƢƖɆįŨƎɆƢķėɆƎėŒėǁëŝƢɆĈƪƖļŝėƖƖșɆDëļƎɆǁëŒƪėɆśŨǁėśėŝƢƖɆëŝĐɆƢķėɆƪŝǂļŝĐļŝİɆŨįɆƢķėɆ discounting is recognised within the income statement as a separately disclosed item. See note 6 and note 32 for further details. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 158 Financial statements ǧɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) ǧșǥɆƎļƢļĉëŒɆëĉĉŨƪŝƢļŝİɆėƖƢļśëƢėƖɆëŝĐɆŌƪĐİėśėŝƢƖɆ(continued) Goodwill on acquisition is initially measured at cost, being the excess of the cost of the business combination over the Group’s interest in ƢķėɆŝėƢɆįëļƎɆǁëŒƪėɆŨįɆƢķėɆƖėƋëƎëƢėŒǈɆļĐėŝƢļǘëĈŒėɆëƖƖėƢƖȚɆŒļëĈļŒļƢļėƖɆëŝĐɆĉŨŝƢļŝİėŝƢɆŒļëĈļŒļƢļėƖɆëƢɆƢķėɆĐëƢėɆŨįɆëĉƍƪļƖļƢļŨŝșɆQŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆ QD¡©ɆǦɆƪƖļŝėƖƖɆŨśĈļŝëƢļŨŝƖȚɆİŨŨĐǂļŒŒɆļƖɆŝŨƢɆëśŨƎƢļƖėĐɆĈƪƢɆƎėǁļėǂėĐɆįŨƎɆļśƋëļƎśėŝƢɆëƢɆƢķėɆǘƎƖƢɆƎėƋŨƎƢļŝİɆƋėƎļŨĐɆëįƢėƎɆëĉƍƪļƖļƢļŨŝɆëŝĐɆ then annually thereafter. As such it is stated at cost less any provision for impairment of value. Any impairment is recognised immediately in the consolidated income statement and is not subsequently reversed. On acquisition, any goodwill acquired is allocated to cash generating units for the purpose of impairment testing. Where goodwill forms part of a cash generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposal is included in the carrying amount of the assets when determining the gain or loss on disposal. ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖ Intangible assets Intangible assets acquired separately are capitalised at cost and those acquired as part of a business combination are capitalised separately from goodwill if the fair value can be measured reliably on initial recognition. The costs relating to internally generated intangible assets, principally software costs, are capitalised if the criteria for recognition as assets are met. Other expenditure is charged in the year in which the expenditure is incurred. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. ¶ķėɆƪƖėįƪŒɆŒļǁėƖɆŨįɆƢķėƖėɆļŝƢëŝİļĈŒėɆëƖƖėƢƖɆëƎėɆëƖƖėƖƖėĐɆƢŨɆĈėɆėļƢķėƎɆǘŝļƢėɆŨƎɆļŝĐėǘŝļƢėșɆŒŒɆļŝĐėǘŝļƢėɆŒļǁėĐɆëƖƖėƢƖɆëƎėɆƖƪĈŌėĉƢɆƢŨɆëŝɆëŝŝƪëŒɆ ļśƋëļƎśėŝƢɆƎėǁļėǂɆįƎŨśɆƢķėɆǈėëƎɆŨįɆëĉƍƪļƖļƢļŨŝșɆÕķėƎėɆëśŨƎƢļƖëƢļŨŝɆļƖɆĉķëƎİėĐɆŨŝɆëƖƖėƢƖɆǂļƢķɆǘŝļƢėɆŒļǁėƖȚɆƢķļƖɆėǇƋėŝƖėɆļƖɆƢëŏėŝɆƢŨɆƢķėɆ consolidated income statement through the “operating expenses, depreciation and amortisation” line item. Useful lives are reviewed on an annual basis. A summary of the policies applied to the Group’s intangible assets is as follows: Retail licences Lower of 15 years, or duration of licence Software - purchased & internally capitalised costs 2-15 years Trademarks & brand names ǤǣȯǤǨɆǈėëƎƖȚɆŨƎɆļŝĐėǘŝļƢėɆŒļįė Customer relationships 3-15 years ¶ķėɆƪƖėįƪŒɆŒļǁėƖɆŨįɆëŒŒɆļŝƢëŝİļĈŒėɆëƖƖėƢƖɆëƎėɆƎėǁļėǂėĐɆëƢɆėëĉķɆǘŝëŝĉļëŒɆƋėƎļŨĐɆėŝĐșɆQśƋëļƎśėŝƢɆƢėƖƢļŝİɆļƖɆƋėƎįŨƎśėĐɆëŝŝƪëŒŒǈɆįŨƎɆļŝƢëŝİļĈŒėɆ assets which are not subject to systematic amortisation and where an indicator of impairment exists for all other intangible assets. An intangible asset is derecognised on disposal, with any gain or loss arising (calculated as the difference between the net disposal proceeds and the carrying amount of the item) included in the consolidated income statement in the year of disposal. ėŝƖļŨŝƖɆëŝĐɆŨƢķėƎɆƋŨƖƢȯėśƋŒŨǈśėŝƢɆĈėŝėǘƢƖ ¶ķėɆEƎŨƪƋȼƖɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆƋŒëŝƖȚɆƢķėɆdëĐĈƎŨŏėƖɆėŝƖļŨŝɆŒëŝɆëŝĐɆƢķėɆEëŒëɆŨƎëŒɆėŝƖļŨŝɆŒëŝɆķŨŒĐɆëƖƖėƢƖɆƖėƋëƎëƢėŒǈɆįƎŨśɆƢķėɆ EƎŨƪƋșɆ¶ķėɆƋėŝƖļŨŝɆĉŨƖƢɆƎėŒëƢļŝİɆƢŨɆĈŨƢķɆƋŒëŝƖɆëƎėɆëƖƖėƖƖėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆëĐǁļĉėɆŨįɆļŝĐėƋėŝĐėŝƢɆƍƪëŒļǘėĐɆëĉƢƪëƎļėƖɆƪƖļŝİɆƢķėɆ projected unit credit method. Actuarial gains or losses are recognised in the consolidated statement of comprehensive income in the period in which they arise. ŝǈɆƋëƖƢɆƖėƎǁļĉėɆĉŨƖƢɆļƖɆƎėĉŨİŝļƖėĐɆļśśėĐļëƢėŒǈșɆ¶ķėɆƎėƢļƎėśėŝƢɆĈėŝėǘƢɆëƖƖėƢɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆĈëŒëŝĉėɆƖķėėƢɆƎėƋƎėƖėŝƢƖɆƢķėɆįëļƎɆǁëŒƪėɆŨįɆ ƖĉķėśėɆëƖƖėƢƖɆŒėƖƖɆƢķėɆǁëŒƪėɆŨįɆƢķėɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝƖș QŝɆëĉĉŨƪŝƢļŝİɆįŨƎɆƢķėɆEƎŨƪƋȼƖɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆƋŒëŝƖȚɆļƢɆļƖɆŝėĉėƖƖëƎǈɆįŨƎɆśëŝëİėśėŝƢɆƢŨɆśëŏėɆëɆŝƪśĈėƎɆŨįɆėƖƢļśëƢėƖɆëŝĐɆ ëƖƖƪśƋƢļŨŝƖɆėëĉķɆǈėëƎșɆ¶ķėƖėɆļŝĉŒƪĐėɆƢķėɆĐļƖĉŨƪŝƢɆƎëƢėƖȚɆļŝǙëƢļŨŝɆƎëƢėƖɆëŝĐɆŒļįėɆėǇƋėĉƢëŝĉǈșɆQŝɆśëŏļŝİɆƢķėƖėɆėƖƢļśëƢėƖɆëŝĐɆëƖƖƪśƋƢļŨŝƖȚɆ management considers advice provided by external advisers, such as actuaries. Where actual experience differs to these estimates, actuarial gains and losses are recognised directly in other comprehensive income. Refer to note 30 for details of the values of assets and obligations and key assumptions used. Although the Group anticipates that plan surpluses will be utilised during the life of the plans to ëĐĐƎėƖƖɆśėśĈėƎɆĈėŝėǘƢƖȚɆƢķėɆEƎŨƪƋɆƎėĉŨİŝļƖėƖɆļƢƖɆƋėŝƖļŨŝɆƖƪƎƋŒƪƖɆļŝɆįƪŒŒɆŨŝɆƢķėɆĈëƖļƖɆƢķëƢɆļƢɆĐŨėƖɆŝŨƢɆĉŨŝƖļĐėƎɆƢķėƎėɆƢŨɆĈėɆƖƪĈƖƢëŝƢļǁėɆ restrictions on the return of residual plan assets in the event of a winding up of the plans after all member obligations have been met. ¶ķėɆEƎŨƪƋȼƖɆĉŨŝƢƎļĈƪƢļŨŝƖɆƢŨɆĐėǘŝėĐɆĉŨŝƢƎļĈƪƢļŨŝɆƖĉķėśėƖɆëƎėɆĉķëƎİėĐɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆļŝĉŨśėɆƖƢëƢėśėŝƢɆļŝɆƢķėɆƋėƎļŨĐɆƢŨɆǂķļĉķɆƢķėɆ contributions relate. ¶ķėƎėɆļƖɆëɆĐėİƎėėɆŨįɆėƖƢļśëƢļŨŝɆļŝǁŨŒǁėĐɆļŝɆƋƎėĐļĉƢļŝİɆƢķėɆƪŒƢļśëƢėɆĈėŝėǘƢƖɆƋëǈëĈŒėɆƪŝĐėƎɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆëƎƎëŝİėśėŝƢƖșɆ The pension scheme liabilities are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates are subject to uncertainty. See note 30 for details on sensitivity analysis performed around these estimates. ¶ķėɆEƎŨƪƋȼƖɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆƖĉķėśėƖɆĈŨƢķɆķëǁėɆëɆŝėƢɆëƖƖėƢɆƋŨƖļƢļŨŝɆǂķėŝɆśėëƖƪƎėĐɆŨŝɆëŝɆQ©ɆǤǬɆĈëƖļƖșɆƪĐİėśėŝƢɆļƖɆëƋƋŒļėĐȚɆ based on legal, actuarial, and accounting guidance in IFRIC 14, regarding the amounts of net pension asset that is recognised in the consolidated balance sheet. Further details are given in note 30. 159 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǧɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) Impairment On acquisition, any goodwill acquired is allocated to cash generating units for the purpose of impairment testing. Where goodwill forms part of a cash generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposal is included in the carrying amount of the assets when determining the gain or loss on disposal. ŝɆļśƋëļƎśėŝƢɆƎėǁļėǂɆļƖɆƋėƎįŨƎśėĐɆįŨƎɆİŨŨĐǂļŒŒɆëŝĐɆŨƢķėƎɆļŝĐėǘŝļƢėɆŒļįėɆëƖƖėƢƖɆŨŝɆëƢɆŒėëƖƢɆëŝɆëŝŝƪëŒɆĈëƖļƖșɆDŨƎɆëŒŒɆŨƢķėƎɆŝŨŝȯĉƪƎƎėŝƢɆ assets an impairment review is performed where there are indicators of impairment. This requires an estimation of the recoverable amount which is the higher of an asset’s fair value less costs to sell and its value in use. Estimating a value in use amount requires śëŝëİėśėŝƢɆƢŨɆśëŏėɆëŝɆėƖƢļśëƢėɆŨįɆƢķėɆėǇƋėĉƢėĐɆįƪƢƪƎėɆĉëƖķɆǙŨǂƖɆįƎŨśɆėëĉķɆĉëƖķɆİėŝėƎëƢļŝİɆƪŝļƢɆëŝĐɆƢŨɆĐļƖĉŨƪŝƢɆĉëƖķɆǙŨǂƖɆĈǈɆëɆ ƖƪļƢëĈŒėɆĐļƖĉŨƪŝƢɆƎëƢėɆļŝɆŨƎĐėƎɆƢŨɆĉëŒĉƪŒëƢėɆƢķėɆƋƎėƖėŝƢɆǁëŒƪėɆŨįɆƢķŨƖėɆĉëƖķɆǙŨǂƖșɆ,ƖƢļśëƢļŝİɆëŝɆëƖƖėƢȼƖɆįëļƎɆǁëŒƪėɆŒėƖƖɆĉŨƖƢƖɆƢŨɆƖėŒŒɆļƖɆ ĐėƢėƎśļŝėĐɆƪƖļŝİɆįƪƢƪƎėɆĉëƖķǙŨǂɆëŝĐɆƋƎŨǘƢɆƋƎŨŌėĉƢļŨŝƖɆëƖɆǂėŒŒɆëƖɆļŝĐƪƖƢƎǈɆŨĈƖėƎǁėĐɆśƪŒƢļƋŒėƖɆëŝĐɆƋƪĈŒļĉŒǈɆŨĈƖėƎǁėĐɆƖķëƎėɆƋƎļĉėƖɆįŨƎɆ similar gambling companies. See note 14 for details on sensitivity analysis performed around these estimates. ÕļƢķļŝɆ½bɆëŝĐɆ,ƪƎŨƋėëŝɆ¡ėƢëļŒȚɆƢķėɆĉëƖķɆİėŝėƎëƢļŝİɆƪŝļƢƖɆëƎėɆİėŝėƎëŒŒǈɆëŝɆļŝĐļǁļĐƪëŒɆdļĉėŝƖėĐɆėƢƢļŝİɆ{įǘĉėɆȩȹd{ȺȪɆëŝĐɆƢķėƎėįŨƎėȚɆ ļśƋëļƎśėŝƢɆļƖɆǘƎƖƢɆëƖƖėƖƖėĐɆëƢɆƢķļƖɆŒėǁėŒɆįŨƎɆŒļĉėŝĉėƖȚɆƎļİķƢɆŨįɆƪƖėɆȩȹ¡{½ȺȪɆëƖƖėƢƖɆëŝĐɆƋƎŨƋėƎƢǈȚɆƋŒëŝƢɆëŝĐɆėƍƪļƋśėŝƢȚɆǂļƢķɆëŝǈɆļśƋëļƎśėŝƢɆ arising booked to licences and property, plant and equipment on a pro-rata basis. Impairment losses are recognised in the consolidated income statement. Investments in joint ventures A joint venture is an entity in which the Group holds an interest on a long-term basis, and which is jointly controlled by the Group and one or more other venturers under a contractual agreement. Joint control exists only when decisions about the relevant activities require the unanimous consent of the parties that collectively control the arrangement. The Group’s share of results of joint ventures is included in the Group consolidated income statement using the equity method of accounting. Investments in joint ventures are carried in the Group consolidated balance sheet at cost plus post-acquisition changes in the Group’s share of net assets of the entity less any impairment in value. The carrying value of investments in joint ventures includes acquired goodwill. If the Group’s share of losses in the joint venture equals or exceeds its investment in the joint venture, the Group does not recognise further ŒŨƖƖėƖȚɆƪŝŒėƖƖɆļƢɆķëƖɆŨĈŒļİëƢļŨŝƖɆƢŨɆĉŨŝƢļŝƪėɆƢŨɆƋƎŨǁļĐėɆǘŝëŝĉļëŒɆƖƪƋƋŨƎƢɆƢŨɆƢķėɆŌŨļŝƢɆǁėŝƢƪƎėș Investments in associates ƖƖŨĉļëƢėƖɆëƎėɆƢķŨƖėɆĈƪƖļŝėƖƖėƖɆļŝɆǂķļĉķɆƢķėɆEƎŨƪƋɆķëƖɆëɆŒŨŝİȯƢėƎśɆļŝƢėƎėƖƢɆëŝĐɆļƖɆëĈŒėɆƢŨɆėǇėƎĉļƖėɆƖļİŝļǘĉëŝƢɆļŝǙƪėŝĉėɆŨǁėƎɆƢķėɆǘŝëŝĉļëŒɆ and operational policies but does not have control or joint control over those policies. The Group’s share of results of associates is included in the Group’s consolidated income statement using the equity method of accounting. Investments in associates are carried in the Group’s consolidated balance sheet at cost plus post-acquisition changes in the Group’s share of net assets of the entity less any impairment in value. The carrying value of investments in associates includes acquired goodwill. If the Group’s share of losses in the associate equals or exceed its investments in the associate, the Group does not recognise įƪƎƢķėƎɆŒŨƖƖėƖȚɆƪŝŒėƖƖɆļƢɆķëƖɆŨĈŒļİëƢļŨŝƖɆƢŨɆĉŨŝƢļŝƪėɆƢŨɆƋƎŨǁļĐėɆǘŝëŝĉļëŒɆƖƪƋƋŨƎƢɆƢŨɆƢķėɆëƖƖŨĉļëƢėș Property, plant and equipment Land is stated at cost less any impairment in value. Buildings, plant and equipment are stated at cost less accumulated depreciation and any impairment in value. $ėƋƎėĉļëƢļŨŝɆļƖɆëƋƋŒļėĐɆƪƖļŝİɆƢķėɆƖƢƎëļİķƢȯŒļŝėɆśėƢķŨĐɆƢŨɆƖƋėĉļǘĉɆĉŒëƖƖėƖɆŨįɆëƖƖėƢɆƢŨɆƎėĐƪĉėɆƢķėśɆƢŨɆƢķėļƎɆƎėƖļĐƪëŒɆǁëŒƪėɆŨǁėƎɆƢķėļƎɆ estimated useful economic lives. Land and buildings dŨǂėƎɆŨįɆǨǣɆǈėëƎƖȚɆŨƎɆėƖƢļśëƢėĐɆƪƖėįƪŒɆŒļįėɆŨįɆƢķėɆĈƪļŒĐļŝİȚɆŨƎɆŒėëƖėșɆQŝĐėǘŝļƢėɆŒļǁėƖɆ are attached to any freehold land held and therefore it is not depreciated Plant and equipment 3-5 years DļǇƢƪƎėƖɆëŝĐɆǘƢƢļŝİƖ 3-10 years ¡ļİķƢɆŨįɆ½ƖėɆȩȹ¡{½ȺȪɆëƖƖėƢƖɆëƎļƖļŝİɆƪŝĐėƎɆŒėëƖėɆĉŨŝƢƎëĉƢƖɆëƎėɆĐėƋƎėĉļëƢėĐɆŨǁėƎɆƢķėɆŒėëƖėɆƢėƎśɆȩëƖɆĐėǘŝėĐɆļŝɆQD¡©ɆǤǩȪɆĈėļŝİɆƢķėɆƋėƎļŨĐɆ to the expiry date of the lease, unless it is expected that a break clause will be exercised when the lease term is the period to the date of the break. The carrying values of property, plant and equipment are reviewed for impairment where an indicator of impairment exists as to whether there are events or changes in circumstances indicating that the carrying values may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash generating units are written down to their recoverable amount. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 160 Financial statements ǧɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) The recoverable amount of property, plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value ļŝɆƪƖėȚɆƢķėɆėƖƢļśëƢėĐɆįƪƢƪƎėɆĉëƖķɆǙŨǂƖɆëƎėɆĐļƖĉŨƪŝƢėĐɆƢŨɆƢķėļƎɆƋƎėƖėŝƢɆǁëŒƪėɆƪƖļŝİɆëɆƋƎėȯƢëǇɆĐļƖĉŨƪŝƢɆƎëƢėɆƢķëƢɆƎėǙėĉƢƖɆĉƪƎƎėŝƢɆśëƎŏėƢɆ ëƖƖėƖƖśėŝƢƖɆŨįɆƢķėɆƢļśėɆǁëŒƪėɆŨįɆśŨŝėǈɆëŝĐɆƢķėɆƎļƖŏƖɆƖƋėĉļǘĉɆƢŨɆƢķėɆëƖƖėƢșɆDŨƎɆëŝɆëƖƖėƢɆƢķëƢɆĐŨėƖɆŝŨƢɆİėŝėƎëƢėɆŒëƎİėŒǈɆļŝĐėƋėŝĐėŝƢɆĉëƖķɆ ļŝǙŨǂƖȚɆƢķėɆƎėĉŨǁėƎëĈŒėɆëśŨƪŝƢɆļƖɆĐėƢėƎśļŝėĐɆįŨƎɆƢķėɆĉëƖķɆİėŝėƎëƢļŝİɆƪŝļƢɆƢŨɆǂķļĉķɆƢķėɆëƖƖėƢɆĈėŒŨŝİƖș An item of property, plant and equipment is derecognised upon disposal, with any gain or loss arising (calculated as the difference between the net disposal proceeds and the carrying amount of the item) included in the consolidated income statement in the year of disposal. Leases ¶ķėɆEƎŨƪƋɆķëƖɆëƋƋŒļėĐɆQD¡©ɆǤǩɆŨŝŒǈɆƢŨɆƢķŨƖėɆĉŨŝƢƎëĉƢƖɆƢķëƢɆǂėƎėɆƋƎėǁļŨƪƖŒǈɆļĐėŝƢļǘėĐɆëƖɆëɆŒėëƖėɆƪŝĐėƎɆQ©ɆǤǪɆdėëƖėƖȚɆëŝǈɆĉŨŝƢƎëĉƢƖɆŝŨƢɆ ƋƎėǁļŨƪƖŒǈɆļĐėŝƢļǘėĐɆëƖɆŒėëƖėƖɆķëǁėɆŝŨƢɆĈėėŝɆƎėëƖƖėƖƖėĐɆįŨƎɆƢķėɆƋƪƎƋŨƖėƖɆŨįɆëĐŨƋƢļŝİɆQD¡©ɆǤǩșɆĉĉŨƎĐļŝİŒǈȚɆƢķėɆĐėǘŝļƢļŨŝɆŨįɆëɆŒėëƖėɆƪŝĐėƎɆ IFRS 16 has only been applied to contracts entered into on or after 1 January 2019. Leases, other than those with a lease period of less than one year at inception, or where the original cost of the asset acquired would be a negligible amount (see note 22), are capitalised at the inception at the present value of the minimum lease payments. Lease payments are ëƋƋŨƎƢļŨŝėĐɆĈėƢǂėėŝɆƢķėɆǘŝëŝĉėɆĉķëƎİėƖɆëŝĐɆƎėĐƪĉƢļŨŝɆŨįɆƢķėɆŒėëƖėɆŒļëĈļŒļƢǈɆƖŨɆëƖɆƢŨɆëĉķļėǁėɆëɆĉŨŝƖƢëŝƢɆƎëƢėɆŨįɆļŝƢėƎėƖƢɆŨŝɆƢķėɆƎėśëļŝļŝİɆ balance of the liability. Finance charges are charged directly against income. ROU assets are included within property, plant and equipment at cost and depreciated over their estimated useful lives, which normally equates to the lives of the leases, after considering anticipated residual values. ¡{½ɆëƖƖėƢƖɆǂķļĉķɆëƎėɆƖƪĈȯŒėëƖėĐɆƢŨɆĉƪƖƢŨśėƎƖɆëƎėɆĉŒëƖƖļǘėĐɆëƖɆǘŝëŝĉėɆŒėëƖėƖɆļįɆƢķėɆŒėëƖėɆëİƎėėśėŝƢƖɆƢƎëŝƖįėƎɆƖƪĈƖƢëŝƢļëŒŒǈɆëŒŒɆƢķėɆƎļƖŏƖɆ ëŝĐɆƎėǂëƎĐƖɆŨįɆƪƖëİėɆƢŨɆƢķėɆŒėƖƖėėșɆŒŒɆŨƢķėƎɆƖƪĈȯŒėëƖėƖɆëƎėɆĉŒëƖƖļǘėĐɆëƖɆŨƋėƎëƢļŝİɆŒėëƖėƖșɆÕķėŝɆëƖƖėƢƖɆëƎėɆƖƪĈŌėĉƢɆƢŨɆǘŝëŝĉėɆŒėëƖėƖȚɆƢķėɆ present value of the sub-lease is recognised as a receivable, net of allowances for expected credit losses and the related ROU asset is de- ƎėĉŨİŝļƖėĐșɆ¶ķėɆĐļįįėƎėŝĉėɆĈėƢǂėėŝɆƢķėɆİƎŨƖƖɆƎėĉėļǁëĈŒėɆëŝĐɆƢķėɆƋƎėƖėŝƢɆǁëŒƪėɆŨįɆƢķėɆƎėĉėļǁëĈŒėɆļƖɆƎėĉŨİŝļƖėĐɆëƖɆƪŝėëƎŝėĐɆǘŝëŝĉėɆŒėëƖėɆ income. Finance lease interest income is recognised over the term of the lease using the net investment method (before tax) so as to give a constant rate of return on the net investment in sub-leases. Operating lease rental income is recognised on a straight-line basis over the life of the lease. Cash and cash equivalents Cash and cash equivalents consist of cash at bank and in hand, short-term deposits with an original maturity of less than three months (and customer balances). Financial assets DļŝëŝĉļëŒɆëƖƖėƢƖɆëƎėɆƎėĉŨİŝļƖėĐɆǂķėŝɆƢķėɆEƎŨƪƋɆĈėĉŨśėƖɆƋëƎƢǈɆƢŨɆƢķėɆĉŨŝƢƎëĉƢƖɆƢķëƢɆİļǁėɆƎļƖėɆƢŨɆƢķėśșɆ¶ķėɆEƎŨƪƋɆĉŒëƖƖļǘėƖɆǘŝëŝĉļëŒɆ ëƖƖėƢƖɆëƢɆļŝĉėƋƢļŨŝɆëƖɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢȚɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆįëļƎɆǁëŒƪėɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆŨƎɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆįëļƎɆǁëŒƪėɆ through other comprehensive income. DļŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢɆëƎėɆŝŨŝȯĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆëƖƖėƢƖɆǂļƢķɆǘǇėĐɆŨƎɆĐėƢėƎśļŝëĈŒėɆƋëǈśėŝƢƖɆƢķëƢɆëƎėɆŝŨƢɆƍƪŨƢėĐɆļŝɆëŝɆ ëĉƢļǁėɆśëƎŏėƢșɆ{ŝɆļŝļƢļëŒɆƎėĉŨİŝļƢļŨŝȚɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢɆëƎėɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆŝėƢɆŨįɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖș ¶ƎëĐėɆƎėĉėļǁëĈŒėƖɆëƎėɆİėŝėƎëŒŒǈɆëĉĉŨƪŝƢėĐɆįŨƎɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢșɆ,ǇƋėĉƢėĐɆĉƎėĐļƢɆŒŨƖƖėƖɆëƎėɆƎėĉŨİŝļƖėĐɆįŨƎɆǘŝëŝĉļëŒɆëƖƖėƢƖɆƎėĉŨƎĐėĐɆëƢɆ amortised cost, including trade receivables. Expected credit losses are calculated by using an appropriate probability of default, taking accounts of a range of possible future scenarios and applying this to the estimated exposure of the Group at the point of default. DļŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆįëļƎɆǁëŒƪėɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆļŝĉŒƪĐėɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖșɆDļŝëŝĉļëŒɆëƖƖėƢƖɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆëƎėɆ measured initially at fair value with transaction costs taken directly to the consolidated income statement. Subsequently, the fair values are remeasured, and gains and losses are recognised in the consolidated income statement. Financial assets at fair value through other comprehensive income comprise equity investments that are designated as such on acquisition. These investments are measured initially at fair value. Subsequently, the fair values are remeasured, and gains and losses are recognised in the consolidated statement of comprehensive income. Financial liabilities Financial liabilities comprise trade and other payables, interest bearing loans and borrowings, contingent consideration, ante-post bets, İƪëƎëŝƢėėƖɆëŝĐɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖșɆ{ŝɆļŝļƢļëŒɆƎėĉŨİŝļƢļŨŝȚɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆëƎėɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆŝėƢɆŨįɆƢƎëŝƖëĉƢļŨŝɆ ĉŨƖƢƖɆǂķėƎėɆƢķėǈɆëƎėɆŝŨƢɆĉëƢėİŨƎļƖėĐɆëƖɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆëƢɆįëļƎɆǁëŒƪėșɆDļŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆļŝĉŒƪĐėɆĉŨŝƢļŝİėŝƢɆ ĉŨŝƖļĐėƎëƢļŨŝȚɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖȚɆëŝƢėȯƋŨƖƢɆĈėƢƖɆëŝĐɆİƪëƎëŝƢėėƖș Financial liabilities at fair value are measured initially at fair value, with transaction costs taken directly to the consolidated income statement. Subsequently, the fair values are remeasured and gains and losses from changes therein are recognised in the consolidated income statement. Trade and other payables are held at amortised cost and include amounts due to clients representing customer deposits and winnings, which is matched by an equal and opposite amount within cash and cash equivalents. 161 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǧɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) All interest-bearing loans and borrowings are initially recognised at fair value net of issue costs associated with the borrowing. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method. $ėƎėĉŨİŝļƢļŨŝɆŨįɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆ DļŝëŝĉļëŒɆëƖƖėƢƖɆëƎėɆĐėƎėĉŨİŝļƖėĐɆǂķėŝɆƢķėɆƎļİķƢɆƢŨɆƎėĉėļǁėɆĉëƖķɆǙŨǂƖɆįƎŨśɆƢķėɆëƖƖėƢƖɆķëƖɆėǇƋļƎėĐɆŨƎɆǂķėŝɆƢķėɆEƎŨƪƋɆķëƖɆƢƎëŝƖįėƎƎėĐɆ ļƢƖɆĉŨŝƢƎëĉƢƪëŒɆƎļİķƢɆƢŨɆƎėĉėļǁėɆƢķėɆĉëƖķɆǙŨǂƖɆįƎŨśɆƢķėɆǘŝëŝĉļëŒɆëƖƖėƢƖɆŨƎɆķëƖɆëƖƖƪśėĐɆëŝɆŨĈŒļİëƢļŨŝɆƢŨɆƋëǈɆƢķėɆƎėĉėļǁėĐɆĉëƖķɆǙŨǂƖɆļŝɆįƪŒŒɆ without material delay to a third party, and either: – substantially all the risks and rewards of ownership have been transferred; or – substantially all the risks and rewards have neither been retained nor transferred but control is not retained. Financial liabilities are derecognised when the obligation is discharged, cancelled or expires. $ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ ¶ķėɆEƎŨƪƋɆƪƖėƖɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆƖƪĉķɆëƖɆĉƎŨƖƖɆĉƪƎƎėŝĉǈɆƖǂëƋƖȚɆįŨƎėļİŝɆėǇĉķëŝİėɆƖǂëƋƖɆëŝĐɆļŝƢėƎėƖƢɆƎëƢėɆƖǂëƋƖȚɆƢŨɆ ķėĐİėɆļƢƖɆƎļƖŏƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆļŝƢėƎėƖƢɆƎëƢėɆëŝĐɆįŨƎėļİŝɆĉƪƎƎėŝĉǈɆǙƪĉƢƪëƢļŨŝƖșɆ$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëƎėɆƎėĉŨİŝļƖėĐɆļŝļƢļëŒŒǈɆëŝĐɆ subsequently at fair value. The gains or losses on remeasurement are taken to the consolidated income statement. $ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëƎėɆĉŒëƖƖļǘėĐɆëƖɆëƖƖėƢƖɆǂķėƎėɆƢķėļƎɆįëļƎɆǁëŒƪėɆļƖɆƋŨƖļƢļǁėȚɆŨƎɆëƖɆŒļëĈļŒļƢļėƖɆǂķėƎėɆƢķėļƎɆįëļƎɆǁëŒƪėɆļƖɆŝėİëƢļǁėșɆ Derivative assets and liabilities arising from different transactions are only offset if the transactions are with the same counterparty, a ŒėİëŒɆƎļİķƢɆŨįɆŨįįƖėƢɆėǇļƖƢƖȚɆëŝĐɆƢķėɆƋëƎƢļėƖɆļŝƢėŝĐɆƢŨɆƖėƢƢŒėɆƢķėɆĉëƖķɆǙŨǂƖɆŨŝɆëɆŝėƢɆĈëƖļƖș Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that ëŝɆŨƪƢǙŨǂɆŨįɆƎėƖŨƪƎĉėƖɆėśĈŨĐǈļŝİɆėĉŨŝŨśļĉɆĈėŝėǘƢƖɆǂļŒŒɆĈėɆƎėƍƪļƎėĐɆƢŨɆƖėƢƢŒėɆƢķėɆŨĈŒļİëƢļŨŝɆëŝĐɆëɆƎėŒļëĈŒėɆėƖƢļśëƢėɆĉëŝɆĈėɆśëĐėɆŨįɆƢķėɆ amount of the obligation. Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the balance sheet date and ëƎėɆĐļƖĉŨƪŝƢėĐɆƢŨɆƋƎėƖėŝƢɆǁëŒƪėɆǂķėƎėɆƢķėɆėįįėĉƢɆļƖɆśëƢėƎļëŒɆƪƖļŝİɆëɆƋƎėȯƢëǇɆƎëƢėɆƢķëƢɆƎėǙėĉƢƖɆĉƪƎƎėŝƢɆśëƎŏėƢɆëƖƖėƖƖśėŝƢƖɆŨįɆƢķėɆƢļśėɆ ǁëŒƪėɆŨįɆśŨŝėǈɆëŝĐɆƢķėɆƎļƖŏƖɆƖƋėĉļǘĉɆƢŨɆƢķėɆŒļëĈļŒļƢǈșɆ¶ķėɆƪŝǂļŝĐļŝİɆŨįɆƢķėɆĐļƖĉŨƪŝƢɆļƖɆƎėĉŨİŝļƖėĐɆëƖɆëɆǘŝëŝĉėɆėǇƋėŝƖėș Foreign currency translation The presentational currency of Entain PLC and the functional currencies of its UK subsidiaries are Pounds Sterling (£). Other than Sterling the main functional currencies of subsidiaries are the Euro (€), the US Dollar ($) and the Australian Dollar (A$). At the reporting date, the assets and liabilities of non-Sterling subsidiaries are translated into Pounds Sterling (£) at the rate of exchange ƎƪŒļŝİɆëƢɆƢķėɆĈëŒëŝĉėɆƖķėėƢɆĐëƢėɆëŝĐɆƢķėļƎɆĉëƖķȯǙŨǂƖɆëƎėɆƢƎëŝƖŒëƢėĐɆëƢɆƢķėɆǂėļİķƢėĐɆëǁėƎëİėɆėǇĉķëŝİėɆƎëƢėƖɆįŨƎɆƢķėɆǈėëƎșɆ¶ķėɆƋŨƖƢȯƢëǇɆ exchange differences arising on the retranslation are taken directly to other comprehensive income. Transactions in foreign currencies are initially recorded in the subsidiary’s functional currency and translated at the foreign currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the foreign currency rate of exchange ruling at the balance sheet date. All foreign currency translation differences are taken to the consolidated income statement. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was determined. On disposal of a foreign entity, the deferred cumulative retranslation differences previously recognised in equity relating to that particular įŨƎėļİŝɆėŝƢļƢǈɆëƎėɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆļŝĉŨśėɆƖƢëƢėśėŝƢɆëƖɆƋëƎƢɆŨįɆƢķėɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆŨŝɆĐļƖƋŨƖëŒș The following exchange rates were used in 2021 and 2020: 2021 2020 Currency Average Year end Average Year end Euro (€) 1.159 1.190 1.131 1.112 US Dollar ($) 1.375 1.354 1.286 1.365 Australian Dollar (A$) 1.832 1.862 1.876 1.765 Income tax Deferred tax is provided on all temporary differences at the balance sheet date, between the tax bases of assets and liabilities and their ĉëƎƎǈļŝİɆëśŨƪŝƢƖɆįŨƎɆǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİɆƋƪƎƋŨƖėƖɆėǇĉėƋƢț – on the initial recognition of goodwill; – where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business ĉŨśĈļŝëƢļŨŝɆëŝĐȚɆëƢɆƢķėɆƢļśėɆŨįɆƢķėɆƢƎëŝƖëĉƢļŨŝȚɆëįįėĉƢƖɆŝėļƢķėƎɆƢķėɆëĉĉŨƪŝƢļŝİɆƋƎŨǘƢɆŝŨƎɆƢķėɆƢëǇɆƋƎŨǘƢȜɆëŝĐ – associated with investments in subsidiaries, joint ventures and associates, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 162 Financial statements ǧɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) Deferred tax assets are recognised for all deductible temporary differences and carry forward of unused tax assets and unused tax ŒŨƖƖėƖȚɆƢŨɆƢķėɆėǇƢėŝƢɆƢķëƢɆļƢɆļƖɆƋƎŨĈëĈŒėɆƢķëƢɆƢëǇëĈŒėɆƋƎŨǘƢɆǂļŒŒɆĈėɆëǁëļŒëĈŒėɆëİëļŝƖƢɆǂķļĉķɆƢķėɆĐėĐƪĉƢļĈŒėɆƢėśƋŨƎëƎǈɆĐļįįėƎėŝĉėƖɆëŝĐɆĉëƎƎǈɆ forward of unused tax assets and unused tax losses can be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable ƢķëƢɆƖƪįǘĉļėŝƢɆƢëǇëĈŒėɆƋƎŨǘƢɆǂļŒŒɆĈėɆëǁëļŒëĈŒėɆƢŨɆëŒŒŨǂɆëŒŒɆŨƎɆƋëƎƢɆŨįɆƢķėɆĐėįėƎƎėĐɆƢëǇɆëƖƖėƢɆƢŨɆĈėɆƪƢļŒļƖėĐș Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted. Interest or penalties payable and receivable in relation to income tax are recognised as an income tax expense or credit in the consolidated income statement. QŝĉŨśėɆƢëǇɆėǇƋėŝƖėƖɆëƎėɆƎėĉŨİŝļƖėĐɆǂļƢķļŝɆƋƎŨǘƢɆëŝĐɆŒŨƖƖɆėǇĉėƋƢɆƢŨɆƢķėɆėǇƢėŝƢɆƢķëƢɆļƢɆƎėŒëƢėƖɆƢŨɆļƢėśƖɆƎėĉŨİŝļƖėĐɆļŝɆŨƢķėƎɆĉŨśƋƎėķėŝƖļǁėɆ income or directly in equity, in which case it is recognised in other comprehensive income or directly in equity. Revenues, expenses and assets are recognised net of the amount of sales tax except: – where the sales tax incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and – receivables and payables are stated with the amount of sales tax included. The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the consolidated balance sheet. Equity instruments and dividends Equity instruments issued by the Company are recorded at the fair value of proceeds received net of direct issue costs. DļŝëŒɆĐļǁļĐėŝĐƖɆƋƎŨƋŨƖėĐɆĈǈɆƢķėɆŨëƎĐɆŨįɆ$ļƎėĉƢŨƎƖɆëŝĐɆƪŝƋëļĐɆëƢɆƢķėɆǈėëƎɆėŝĐɆëƎėɆŝŨƢɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƪŝƢļŒɆƢķėǈɆ have been approved by shareholders at the Annual General Meeting. Interim dividends are recognised when paid. Revenue The Group reports the gains and losses on all betting and gaming activities as revenue, which is measured at the fair value of the consideration received or receivable from customers less free bets, promotions, bonuses and other fair value adjustments. Revenue is net of VAT/GST. The Group considers betting and gaming revenue to be out of the scope of IFRS 15 Revenue, and accounts for those revenues within the scope of IFRS 9 Financial Instruments. DŨƎɆŒļĉėŝƖėĐɆĈėƢƢļŝİɆŨįǘĉėƖɆȩd{ƖȪȚɆŨŝɆĉŨƪƎƖėɆĈėƢƢļŝİȚɆŨƎėɆ¶ėŒėƋķŨŝėɆėƢƢļŝİȚɆśŨĈļŒėɆĈėƢƢļŝİȚɆ$ļİļƢëŒɆĈƪƖļŝėƖƖėƖɆȩļŝĉŒƪĐļŝİɆƖƋŨƎƢƖĈŨŨŏȚɆ betting exchange, casino, games, other number bets), revenue represents gains and losses, being the amounts staked and fees received, less total payouts recognised on the settlement of the event. Open betting positions (“Ante-post”) are carried at fair value and gains and losses arising on these positions are recognised in revenue. See note 26 for details of ante-post positions at the year end. ¶ķėɆįŨŒŒŨǂļŝİɆįŨƎśƖɆŨįɆƎėǁėŝƪėɆëƎėɆëĉĉŨƪŝƢėĐɆįŨƎɆǂļƢķļŝɆƢķėɆƖĉŨƋėɆŨįɆQD¡©ɆǤǨɆ¡ėǁėŝƪėșɆ¡ėǁėŝƪėɆįƎŨśɆƢķėɆŨŝŒļŝėɆƋŨŏėƎɆĈƪƖļŝėƖƖɆƎėǙėĉƢƖɆ the net income (rake) earned from poker hands completed by the year end. In the case of the greyhound stadia, revenue represents income arising from the operation of the greyhound stadia in the year, including sales of refreshments, net of VAT. Given the nature of these revenue streams they are not considered to be subject to judgement over the performance obligations, amount received or timing of recognition. Government assistance Receipts from government assistance programs such as, furlough, are recorded as reductions in the costs against which they have been received. See note 7 for more details. Finance expense and income DļŝëŝĉėɆėǇƋėŝƖėɆëŝĐɆļŝĉŨśėɆëƎļƖļŝİɆŨŝɆļŝƢėƎėƖƢɆĈėëƎļŝİɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆĉëƎƎļėĐɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢɆëƎėɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆ income statement using the effective interest rate method. Finance expense includes the amortisation of fees that are an integral part ŨįɆƢķėɆėįįėĉƢļǁėɆǘŝëŝĉėɆĉŨƖƢɆŨįɆëɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢȚɆļŝĉŒƪĐļŝİɆļƖƖƪėɆĉŨƖƢƖȚɆëŝĐɆƢķėɆëśŨƎƢļƖëƢļŨŝɆŨįɆëŝǈɆŨƢķėƎɆĐļįįėƎėŝĉėƖɆĈėƢǂėėŝɆƢķėɆ ëśŨƪŝƢɆļŝļƢļëŒŒǈɆƎėĉŨİŝļƖėĐɆëŝĐɆƢķėɆƎėĐėśƋƢļŨŝɆƋƎļĉėșɆŒŒɆǘŝëŝĉėɆėǇƋėŝƖėƖɆëƎėɆƎėĉŨİŝļƖėĐɆŨǁėƎɆƢķėɆëǁëļŒëĈļŒļƢǈɆƋėƎļŨĐș Share-based payment transactions Certain employees (including Directors) of the Group receive remuneration in the form of equity settled share-based payment transactions, whereby employees render services in exchange for shares or rights over shares (equity settled transactions). The cost of equity settled transactions is measured by reference to the fair value at the date on which they are granted. Further details of which are given in note 31. In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Entain PLC (market conditions). 163 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǧɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) The cost of equity settled transactions is recognised in the consolidated income statement, with a corresponding credit in equity, over ƢķėɆƋėƎļŨĐɆļŝɆǂķļĉķɆƢķėɆƋėƎįŨƎśëŝĉėɆĉŨŝĐļƢļŨŝƖɆëƎėɆįƪŒǘŒŒėĐȚɆėŝĐļŝİɆŨŝɆƢķėɆĐëƢėɆŨŝɆǂķļĉķɆƢķėɆƎėŒėǁëŝƢɆėśƋŒŨǈėėƖɆĈėĉŨśėɆįƪŒŒǈɆėŝƢļƢŒėĐɆƢŨɆ the award (vesting date). The cumulative expense recognised for equity settled transactions at each reporting date until the vesting date ƎėǙėĉƢƖɆƢķėɆėǇƢėŝƢɆƢŨɆǂķļĉķɆƢķėɆǁėƖƢļŝİɆƋėƎļŨĐɆķëƖɆėǇƋļƎėĐɆëŝĐɆƢķėɆŝƪśĈėƎɆŨįɆëǂëƎĐƖɆƢķëƢȚɆļŝɆƢķėɆŨƋļŝļŨŝɆŨįɆƢķėɆ$ļƎėĉƢŨƎƖɆŨįɆƢķėɆEƎŨƪƋɆëƢɆ that date, based on the best available estimate of the number of equity instruments, will ultimately vest. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, ǂķļĉķɆëƎėɆƢƎėëƢėĐɆëƖɆǁėƖƢļŝİɆļƎƎėƖƋėĉƢļǁėɆŨįɆǂķėƢķėƎɆŨƎɆŝŨƢɆƢķėɆśëƎŏėƢɆĉŨŝĐļƢļŨŝɆļƖɆƖëƢļƖǘėĐȚɆƋƎŨǁļĐėĐɆƢķëƢɆëŒŒɆŨƢķėƎɆƋėƎįŨƎśëŝĉėɆ ĉŨŝĐļƢļŨŝƖɆëƎėɆƖëƢļƖǘėĐș ¶ķėɆĐļŒƪƢļǁėɆėįįėĉƢɆŨįɆŨƪƢƖƢëŝĐļŝİɆŨƋƢļŨŝƖɆļƖɆƎėǙėĉƢėĐɆëƖɆëĐĐļƢļŨŝëŒɆƖķëƎėɆĐļŒƪƢļŨŝɆļŝɆƢķėɆĉŨśƋƪƢëƢļŨŝɆŨįɆėëƎŝļŝİƖɆƋėƎɆƖķëƎėɆëƖɆƖķŨǂŝɆļŝɆ note 12. 4.4 Future accounting developments The standards and interpretations that are issued, but not yet effective, excluding those relating to annual improvements, up to the date ŨįɆļƖƖƪëŝĉėɆŨįɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆĐļƖĉŒŨƖėĐɆĈėŒŨǂșɆ¶ķėɆEƎŨƪƋɆļŝƢėŝĐƖɆƢŨɆëĐŨƋƢɆƢķėƖėɆƖƢëŝĐëƎĐƖȚɆļįɆëƋƋŒļĉëĈŒėȚɆǂķėŝɆƢķėǈɆ ĈėĉŨśėɆėįįėĉƢļǁėșɆpŨŝėɆŨįɆƢķėƖėɆëƎėɆėǇƋėĉƢėĐɆƢŨɆķëǁėɆëɆƖļİŝļǘĉëŝƢɆėįįėĉƢɆŨŝɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋɆëƖɆƖėƢɆ out below: IAS 1 Presentation of Financial Statements śėŝĐśėŝƢƖɆƢŨɆƢķėɆĉŒëƖƖļǘĉëƢļŨŝɆŨįɆŒļëĈļŒļƢļėƖɆëƖɆĉƪƎƎėŝƢɆŨƎɆŝŨŝȯĉƪƎƎėŝƢ 1 January 2023 Amendments to IAS1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgments IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors Amendments to clarify between changes in accounting estimates and changes in accounting policies 1 January 2023 IAS 12 Income Taxes Amendments to the measurement techniques for current and deferred taxes 1 January 2023 IAS 16 Property, Plant and Equipment śėŝĐśėŝƢƖɆƢŨɆƢķėɆĐėǘŝļƢļŨŝɆŨįɆƖëŒėƖɆƋƎŨĉėėĐƖɆëŝĐɆƎėŒëƢėĐɆĉŨƖƢƖ 1 January 2022 IAS 37 Provisions, Contingent Liabilities and Contingent Assets śėŝĐśėŝƢƖɆƢŨɆƢķėɆĐėǘŝļƢļŨŝɆŨįɆĉŨƖƢƖɆƢŨɆįƪŒǘŒɆëŝɆŨŝėƎŨƪƖɆĉŨŝƢƎëĉƢ 1 January 2022 IAS 41 Agriculture Amendments to the measurement techniques for biological assets 1 January 2022 IFRS 3 Business Combinations Updating a reference to the Conceptual Framework 1 January 2022 IFRS 17 Insurance Contracts Original issue 1 January 2023 ǨɆ©ėİśėŝƢɆļŝįŨƎśëƢļŨŝ The Group’s operating segments are based on the reports reviewed by the Executive management team (which is collectively considered to be the Chief Operating Decision Maker (CODM)) to make strategic decisions, and allocate resources. IFRS 8 requires segment information to be presented on the same basis as that used by the CODM for assessing performance and ëŒŒŨĉëƢļŝİɆƎėƖŨƪƎĉėƖșɆ¶ķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŝİɆƖėİśėŝƢƖɆëƎėɆŝŨǂɆëİİƎėİëƢėĐɆļŝƢŨɆƢķėɆǘǁėɆƎėƋŨƎƢëĈŒėɆƖėİśėŝƢƖɆëƖɆĐėƢëļŒėĐɆĈėŒŨǂșɆ This represents a change from 2020 with our former UK and European Retail segments now combined to form one Retail segment and ëɆpėǂɆ{ƋƋŨƎƢƪŝļƢļėƖɆƖėİśėŝƢɆĉƎėëƢėĐɆƢŨɆƎėǙėĉƢɆƢķėɆļŝǁėƖƢśėŝƢɆƖƢƎëƢėİǈɆļŝɆļŝŝŨǁëƢļŨŝɆëŝĐɆŝėǂɆƋƎŨĐƪĉƢƖɆëŝĐɆǁėƎƢļĉëŒƖɆëƖɆƋƎėǁļŨƪƖŒǈɆ communicated. Both changes are in line with the changes in the Group’s reporting to the executive management team (CODM), with the ¡ėƢëļŒɆĉŨŝƖŨŒļĐëƢļŨŝɆëŒƖŨɆëɆƋƎŨĐƪĉƢɆŨįɆŨƪƎɆ¡ėƢëļŒɆƖėİśėŝƢɆĐļƖƋŒëǈļŝİɆĉŨŝƖļƖƢėŝƢɆƢƎëĐļŝİɆƋëƢƢėƎŝƖɆëŝĐɆƎļƖŏɆƋƎŨǘŒėƖɆëĉƎŨƖƖɆƢėƎƎļƢŨƎļėƖɆëŝĐɆëŒŒɆ İėŨİƎëƋķļėƖɆŝŨǂɆƎėƋŨƎƢļŝİɆļŝƢŨɆƢķėɆ$ėƋƪƢǈɆķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎȦķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎșɆ – Online: comprises betting and gaming activities from online and mobile operations. Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino, Optibet and Ninja; – Retail: comprises betting and retail activities in the shop estates in Great Britain, Northern Ireland, Jersey, Republic of Ireland, Belgium and Italy; – New opportunities: Unikrn and innovation spend; – ŨƎƋŨƎëƢėțɆļŝĉŒƪĐėƖɆĉŨƖƢƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆEƎŨƪƋɆįƪŝĉƢļŨŝƖɆļŝĉŒƪĐļŝİɆEƎŨƪƋɆėǇėĉƪƢļǁėȚɆŒėİëŒȚɆEƎŨƪƋɆǘŝëŝĉėȚɆ½©ɆŌŨļŝƢɆǁėŝƢƪƎėȚɆƢëǇɆëŝĐɆ treasury; and – Other segments: includes activities primarily related to telephone betting, Stadia and on course pitches. The Executive management team of the Group has chosen to assess the performance of operating segments based on a measure of net ƎėǁėŝƪėȚɆ,Q¶$¡ȚɆ,Q¶$ȚɆëŝĐɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆǂļƢķɆǘŝëŝĉėɆĉŨƖƢƖɆëŝĐɆƢëǇëƢļŨŝɆĉŨŝƖļĐėƎėĐɆįŨƎɆƢķėɆEƎŨƪƋɆëƖɆëɆǂķŨŒėșɆ©ėėɆƋëİėɆǩǩɆŨįɆƢķļƖɆ annual report for further considerations of the use of Non-GAAP measures. Transfer prices between operating segments are on an arm’s- length basis in a manner similar to transactions with third parties. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 164 Financial statements ǨɆ©ėİśėŝƢɆļŝįŨƎśëƢļŨŝɆ(continued) The segment results for the year ended 31 December were as follows: 2021 Online £m Retail £m ŒŒɆŨƢķėƎɆ segments £m pėǂɆ Opportunities £m Corporate £m Elimination ŨįɆļŝƢėƎŝëŒɆ revenue £m Total Group £m NGR 1 3,066.5 791.1 32.8 – – (4.1) 3,886.3 VAT/GST (56.3) –––––(56.3) Revenue 3,010.2 791.1 32.8 – – (4.1) 3,830.0 EƎŨƖƖɆƎŨǘƢ 1,871.5 535.8 28.5–––2,435.8 Contribution 2 1,294.7 529.0 27.8 – – – 1,851.5 Operating costs excluding marketing costs (393.7) (447.5) (22.1) (8.8) (80.6) – (952.7) Underlying EBITDAR before separately disclosed items 901.0 81.5 5.7 (8.8) (80.6) – 898.8 Rental costs (2.0) (14.6) (0.1) – (0.4) – (17.1) Underlying EBITDA before separately disclosed items 899.0 66.9 5.6 (8.8) (81.0) – 881.7 Share based payments (5.3) (1.9) (0.1) – (5.0) – (12.3) Depreciation and Amortisation (116.7) (102.4) (2.9) (0.4) (0.4) – (222.8) Share of joint ventures and associates (1.0) – 0.4 – (161.9) – (162.5) {ƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆ separately disclosed items 776.0 (37.4) 3.0 (9.2) (248.3) – 484.1 Separately disclosed items (note 6) (154.0) 1.4 (1.7) – 26.0 – (128.3) EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪ 622.0 (36.0) 1.3 (9.2) (222.3) – 355.8 pėƢɆǘŝëŝĉėɆļŝĉŨśė 37.4 ƎŨǘƢɆĈėįŨƎėɆƢëǇ 393.2 Income tax (117.6) ƎŨǘƢɆįŨƎɆƢķėɆǈėëƎɆįƎŨśɆ continuing operations 275.6 Loss for the year from discontinued operations after tax (note 21) (14.9) ƎŨǘƢɆįŨƎɆƢķėɆǈėëƎɆëįƢėƎɆ discontinued operations 260.7 1. Included within NGR are amounts of £82.6m (2020: £116.6m) in relation to online poker services and £20.5m (2020: £14.9m) arising from the operation of greyhound stadia recognised under IFRS 15 Revenue. ǥșɆ ŨŝƢƎļĈƪƢļŨŝɆƎėƋƎėƖėŝƢƖɆİƎŨƖƖɆƋƎŨǘƢɆŒėƖƖɆśëƎŏėƢļŝİɆĉŨƖƢƖɆëŝĐɆļƖɆëɆŏėǈɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉɆƪƖėĐɆĈǈɆƢķėɆEƎŨƪƋȚɆƋëƎƢļĉƪŒëƎŒǈɆļŝɆ{ŝŒļŝėș 165 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǨɆ©ėİśėŝƢɆļŝįŨƎśëƢļŨŝɆ(continued) 2020 Re-presented Online £m Retail £m All other segments £m Corporate £m Elimination of internal revenue £m Total Group £m NGR 2,747.5 857.1 27.8 – (3.9) 3,628.5 VAT/GST (66.9) ––––(66.9) Revenue 2,680.6 857.1 27.8 – (3.9) 3,561.6 EƎŨƖƖɆƎŨǘƢ 1,708.7 577.5 22.4 – – 2,308.6 Contribution 1 1,147.4 571.7 21.1 – – 1,740.2 Operating costs excluding marketing costs (342.5) (456.1) (25.0) (54.5) – (878.1) Underlying EBITDAR before separately disclosed items 804.9 115.6 (3.9) (54.5) – 862.1 Rental costs (1.4) (17.3) (0.3) – – (19.0) Underlying EBITDA before separately disclosed items 803.5 98.3 (4.2) (54.5) – 843.1 Share based payments (4.3) (1.5) – (9.0) – (14.8) Depreciation and Amortisation (120.1) (115.8) (2.7) – – (238.6) Share of joint ventures and associates 0.1 – 0.3 (60.6) – (60.2) {ƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƖėƋëƎëƢėŒǈɆ disclosed items 679.2 (19.0) (6.6) (124.1) – 529.5 Separately disclosed items (note 6) (304.5) 226.3 – (92.4) – (170.6) EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪ 374.7 207.3 (6.6) (216.5) – 358.9 pėƢɆǘŝëŝĉėɆėǇƋėŝƖė (184.2) ƎŨǘƢɆĈėįŨƎėɆƢëǇ 174.7 Income tax (60.9) ƎŨǘƢɆįŨƎɆƢķėɆǈėëƎɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖ 113.8 Loss for the year from discontinued operations after tax (note 21) (34.4) ƎŨǘƢɆįŨƎɆƢķėɆǈėëƎɆëįƢėƎɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖ 79.4 ǤșɆ ŨŝƢƎļĈƪƢļŨŝɆƎėƋƎėƖėŝƢƖɆİƎŨƖƖɆƋƎŨǘƢɆŒėƖƖɆśëƎŏėƢļŝİɆĉŨƖƢƖɆëŝĐɆļƖɆëɆŏėǈɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉɆƪƖėĐɆĈǈɆƢķėɆEƎŨƪƋȚɆƋëƎƢļĉƪŒëƎŒǈɆļŝɆ{ŝŒļŝėș EėŨİƎëƋķļĉëŒɆļŝįŨƎśëƢļŨŝ Revenue by destination and non-current assets on a geographical basis for the Group, are as follows: 2021 2020 re-presented Revenue £m Non-current assets 3 £m Revenue £m Non-current assets 3 £m United Kingdom 1,754.5 3,007.2 1,675.5 3,116.4 Australia 458.1 507.0 383.3 557.8 Italy 392.4 483.0 353.6 428.4 Rest of Europe 1 966.2 1,807.0 962.9 1,569.0 Rest of the world 2 258.8 103.6 186.3 4.5 Total 3,830.0 5,907.8 3,561.6 5,676.1 1. Rest of Europe is predominantly driven by markets in Germany, Belgium and Georgia. 2. Rest of the world is predominantly driven by the market in Brazil. ǦșɆ pŨŝȯĉƪƎƎėŝƢɆëƖƖėƢƖɆėǇĉŒƪĐļŝİɆŨƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖȚɆĐėįėƎƎėĐɆƢëǇɆëƖƖėƢƖɆëŝĐɆƎėƢļƎėśėŝƢɆĈėŝėǘƢɆëƖƖėƢƖș pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 166 Financial statements 6 Separately disclosed items 2021 £m 2020 £m Amortisation of acquired intangibles 1 144.2 307.0 Integration costs 2 17.3 25.1 Corporate transaction costs 3 9.4 – Tax litigation/ one-off legislative impacts 4 (80.2) (223.5) Legal and onerous contract provisions 5 26.2 8.9 ƎŨǘƢɆŨŝɆĐļƖƋŨƖëŒɆŨįɆƋƎŨƋėƎƢǈȚɆƋŒëŝƢɆëŝĐɆėƍƪļƋśėŝƢ 6 (1.9) (6.9) Movement in fair value of contingent consideration 7 6.1 42.4 Issue costs write off 8 5.8 5.3 Impairment loss 9 3.3 5.0 Triennial restructuring costs – 8.3 Other one-off items 10 3.9 4.3 Total before tax 134.1 175.9 Tax on separately disclosed items 11 27.5 (2.1) Separately disclosed items for the year from continuing operations 161.6 173.8 Separately disclosed items for the year from discontinued operations (note 21) 9.3 20.0 Separately disclosed items for the year after discontinued operations 170.9 193.8 1. Amortisation charges in relation to acquired intangible assets arising from the various acquisitions made by the Group in recent years, including Ladbrokes Coral, Crystalbet, Enlabs, Portugal and Unikrn. 2. Final costs associated with the integration of the Ladbrokes Coral Group and legacy GVC businesses, including redundancy costs. 3. During the year, the Group incurred a number of transaction costs associated with M&A activity including Enlabs, Portugal and Unikrn as well as the approaches for the Entain Group by US based betting and gaming businesses. 4. In November 2021, the Athens Administrative Court of Appeal found in favour of the Group on the 2010/11 Greek Tax case. The ruling stipulated that the previous amounts paid by the Group plus interest were now due to Entain. Whilst the Greek authorities have appealed the decision by the courts, the Group has recognised the full receivable due under the court ruling including reversing charges previously recognised in the Income Statement in respect of 2010/11. The credit of £80.2m recognised also includes £7.1m in respect ŨįɆƢķėɆǘŝëŒɆëśŨƪŝƢɆƎėĉėļǁėĐɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆ½bɆÔ¶ɆĉŒëļśɆȩǥǣǥǣțɆɞǥǥǦșǣśȪșɆ 5. Includes costs associated with complying with the HMRC investigation as well as a provision for potential settlement costs on matters associated with past trading activity. 6. Relates to the sale of various retail assets. 7. Costs associated with discount unwind and movements in the fair value of contingent consideration on acquisition activity from previous years. ǫșɆ QƖƖƪėɆĉŨƖƢƖɆǂƎļƢƢėŝɆŨįįɆŨŝɆƢķėɆƎėǘŝëŝĉļŝİɆŨįɆ½©ɆĐėŝŨśļŝëƢėĐɆŒŨëŝƖɆëŝĐɆƢķėɆEƎŨƪƋȼƖɆƎėǁŨŒǁļŝİɆĉƎėĐļƢɆįëĉļŒļƢǈɆļŝɆƢķėɆǈėëƎș 9. During the current year, the Group recorded a non-cash impairment charge against certain leased assets which are now vacant and against assets relating to the disposed Betdaq business. 10. Relates predominantly to the one-off costs associated with Covid-19. 11. The tax charge on separately disclosed items of £27.5m (2020: credit of £2.1m) represents -20.5% (2020: 1.2%) of the separately disclosed items incurred of £134.1m (2020: £175.9m). This is lower than the expected rate of 19.0% (2020: 19.0%) as certain corporate transaction costs and integration costs are non-deductible for tax purposes, as ǂėŒŒɆëƖɆƢķėɆļśƋëĉƢɆŨįɆƖļİŝļǘĉëŝƢɆėŒėśėŝƢƖɆŨįɆëśŨƎƢļƖëƢļŨŝɆŨįɆëĉƍƪļƎėĐɆļŝƢëŝİļĈŒėƖɆĈėļŝİɆƖƪĈŌėĉƢɆƢŨɆŒŨǂėƎɆŨǁėƎƖėëƖɆƢëǇɆƎëƢėƖșɆQŝɆëĐĐļƢļŨŝȚɆƢķėɆĉķëŝİėƖɆļŝɆįƪƢƪƎėɆ½bɆëŝĐɆEļĈƎëŒƢëƎɆ corporation tax rates have been applied to deferred tax liabilities recognised against acquired intangibles resulting in a current year charge. ¶ķėɆļƢėśƖɆëĈŨǁėɆƎėǙėĉƢɆļŝĉŨśėƖɆëŝĐɆėǇƋėŝĐļƢƪƎėƖɆǂķļĉķɆëƎėɆėļƢķėƎɆėǇĉėƋƢļŨŝëŒɆļŝɆŝëƢƪƎėɆŨƎɆƖļǒėɆŨƎɆëƎėɆëƖƖŨĉļëƢėĐɆǂļƢķɆƢķėɆëśŨƎƢļƖëƢļŨŝɆ of acquired intangibles. The Directors believe that each of these items warrants separate disclosure as they do not form part of the day to day underlying trade of the Group and are not expected to persist beyond the short term (excluding the amortisation of acquired intangibles). 167 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 7 Administrative costs ƎŨǘƢɆĈėįŨƎėɆƢëǇȚɆŝėƢɆǘŝëŝĉėɆėǇƋėŝƖėɆëŝĐɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆķëƖɆĈėėŝɆëƎƎļǁėĐɆëƢɆëįƢėƎɆĉķëƎİļŝİț 2021 £m 2020 £m Betting tax and Machine Games Duty 837.3 767.1 Revenue share arrangements 440.3 386.6 Software royalties 116.1 91.6 Other cost of sales 0.5 7.7 Cost of sales 1,394.2 1,253.0 Salaries and payroll-related expenses (note 9) 575.4 514.9 Property expenses 63.1 62.7 Content and levy expenses 137.5 136.1 Marketing expenses 584.3 568.4 Depreciation and amortisation – owned assets 169.0 176.2 Depreciation and amortisation – leased assets 53.8 62.4 Other operating expenses 206.1 198.2 Administrative costs 1,789.2 1,718.9 ©ėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆĈėįŨƎėɆƢëǇɆëŝĐɆǘŝëŝĉėɆėǇƋėŝƖėɆȩŝŨƢėɆǩȪ 128.3 170.6 Total 3,311.7 3,142.5 $ƪƎļŝİɆƢķėɆǈėëƎɆƢķėɆEƎŨƪƋɆĈėŝėǘƢėĐɆįƎŨśɆɞǧǫșǪśɆȩǥǣǥǣțɆɞǩǥșǬśȪɆŨįɆİŨǁėƎŝśėŝƢɆƖƪƋƋŨƎƢɆļŝɆƢķėɆįŨƎśɆŨįɆįƪƎŒŨƪİķɆƎėĉėļƋƢƖɆëĉƎŨƖƖɆƢķėɆ various countries in which the Group operates, predominantly the UK and the Republic of Ireland. There are no ongoing obligations on the Group for the amounts received which have been recorded as a reduction to salaries and payroll-related expenses within underlying trading. Fees payable to KPMG were as follows: 2021 £m 2020 £m Audit and audit-related services: ƪĐļƢɆŨįɆƢķėɆƋëƎėŝƢɆŨśƋëŝǈɆëŝĐɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ 0.6 0.6 Audit of the Company’s subsidiaries 1.9 1.5 Audit-related assurance services 0.5 0.4 Total fees 3.0 2.5 ǫɆDļŝëŝĉėɆėǇƋėŝƖėɆëŝĐɆļŝĉŨśė 2021 £m 2020 £m Bank loans and overdrafts (63.3) (60.2) Interest on lease liabilities 1 (13.8) (16.3) Issue costs write off (note 6) (5.8) (5.3) ¶ŨƢëŒɆǘŝëŝĉėɆėǇƋėŝƖė (82.9) (81.8) Interest receivable 2.1 2.3 EëļŝƖȦȩŒŨƖƖėƖȪɆëƎļƖļŝİɆŨŝɆǘŝëŝĉļëŒɆĐėƎļǁëƢļǁėƖ 62.0 (61.8) Gains/(losses) arising on foreign exchange on debt instruments 56.2 (42.9) pėƢɆǘŝëŝĉėɆļŝĉŨśėȦȩėǇƋėŝƖėȪ 37.4 (184.2) 1. Interest on lease liabilities of £13.8m (2020: £16.3) is net of £0.2m of sub-let interest receivable (2020: £0.4m). pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 168 Financial statements ǬɆ,śƋŒŨǈėėɆƖƢëįįɆĉŨƖƢƖ The average monthly number of employees (including Executive Directors) was: 2021 Number 2020 Number Online 8,929 6,447 Retail 14,363 16,806 Other 428 463 Corporate 1 918 271 24,638 23,987 1. Certain central functions have been recategorised to sit within a centralised corporate segment rather than within a divisionalised one. The number of people employed by the Group at 31 December 2021 was 25,554 (2020: 23,573). 2021 £m 2020 £m Wages and salaries 503.1 444.2 Redundancy costs 1 6.0 9.1 Social security costs 41.6 40.3 Other pension costs (note 30) 2 16.3 15.6 Share-based payments (note 31) 12.3 14.8 579.3 524.0 1. Included within redundancy costs are £3.4m (2020: £6.7m) which are included within separately disclosed items. 2. Included within other pension costs are £0.5m (2020: £2.4m) which are included within separately disclosed items. QŝɆëĐĐļƢļŨŝɆƢŨɆƖëŒëƎǈȚɆėśƋŒŨǈėėƖɆśëǈɆƍƪëŒļįǈɆįŨƎɆǁëƎļŨƪƖɆĈėŝėǘƢɆƖĉķėśėƖɆŨƋėƎëƢėĐɆĈǈɆƢķėɆEƎŨƪƋșɆ,ŒļİļĈļŒļƢǈɆįŨƎɆĈėŝėǘƢƖɆļƖɆŝŨƎśëŒŒǈɆ ĐėƢėƎśļŝėĐɆëĉĉŨƎĐļŝİɆƢŨɆëŝɆėśƋŒŨǈėėȼƖɆŒėŝİƢķɆŨįɆƖėƎǁļĉėɆëŝĐɆŒėǁėŒɆŨįɆƎėƖƋŨŝƖļĈļŒļƢǈșɆ¶ķėɆëśŨƪŝƢƖɆŨįɆƖŨśėɆĈėŝėǘƢƖɆëƎėɆƋƎŨƋŨƎƢļŨŝëƢėɆƢŨɆ individual salary. ėŝėǘƢƖɆśëǈɆļŝĉŒƪĐėɆļŝƖƪƎėĐɆĈėŝėǘƢƖɆƢķëƢɆĉëŝɆĉŨǁėƎɆƋƎļǁëƢėɆķėëŒƢķĉëƎėɆįŨƎɆƢķėɆėśƋŒŨǈėėɆëŝĐɆƢķėļƎɆļśśėĐļëƢėɆįëśļŒǈȚɆŒŨŝİȯƢėƎśɆĐļƖëĈļŒļƢǈȚɆ ƋėƎƖŨŝëŒɆëĉĉļĐėŝƢɆëŝĐɆĐėëƢķɆļŝɆƖėƎǁļĉėɆĉŨǁėƎșɆŨśƋëŝǈɆĉëƎƖȚɆļŝĉŒƪĐļŝİɆįƪėŒɆĈėŝėǘƢƖȚɆëƎėɆƋƎŨǁļĐėĐɆƋƎėĐŨśļŝëŝƢŒǈɆƢŨɆśėėƢɆŌŨĈɆƎėƍƪļƎėśėŝƢƖɆ but also to certain executives. Staff costs are stated net of furlough receipts as discussed in note 7. ǤǣɆQŝĉŨśėɆƢëǇ Analysis of expense for the year: 2021 £m 2020 £m Current income tax: – UK 97.4 89.1 – adjustments in respect of previous years (6.8) 7.2 Deferred tax: – relating to origination and reversal of temporary differences 32.3 (33.9) – adjustments in respect of previous years (5.3) (2.8) Income tax expense reported in the income statement 117.6 59.6 Income tax expense is attributable to ƎŨǘƢɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖ 117.6 60.9 Loss from discontinued operations – (1.3) 117.6 59.6 Deferred tax charged/(credited) directly to other comprehensive income 10.9 (0.1) 169 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǤǣɆQŝĉŨśėɆƢëǇɆ(continued) ɆƎėĉŨŝĉļŒļëƢļŨŝɆŨįɆļŝĉŨśėɆƢëǇɆėǇƋėŝƖėɆȩǥǣǥǣțɆėǇƋėŝƖėȪɆëƋƋŒļĉëĈŒėɆƢŨɆƋƎŨǘƢɆȩǥǣǥǣțɆƋƎŨǘƢȪɆĈėįŨƎėɆƢëǇɆëƢɆƢķėɆ½bɆƖƢëƢƪƢŨƎǈɆļŝĉŨśėɆƢëǇɆƎëƢėɆƢŨɆ the income tax expense (2020: expense) for the years ended 31 December 2021 and 31 December 2020 is as follows: 2021 £m 2020 £m ƎŨǘƢɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖɆĈėįŨƎėɆļŝĉŨśėɆƢëǇ 393.2 174.7 Loss from discontinued operations before tax (14.9) (35.7) ƎŨǘƢɆĈėįŨƎėɆƢëǇ 378.3 139.0 Corporation tax expense thereon at 19.00% 71.9 26.4 Adjusted for the effects of: – Lower effective tax rates on overseas earnings (10.7) (6.9) – Non-deductible expenses 7.0 10.6 – Fair value adjustment to contingent consideration 1.2 5.9 – Goodwill impairment – 2.4 – Impact of additional 50% deduction for marketing expenditure in Gibraltar (18.4) – – Increase in unrecognised tax losses 50.5 18.5 – (Decrease)/increase in unrecognised deferred interest (0.4) 2.2 – Revaluation of deferred tax balances following increase in UK and Overseas tax rates 28.3 – – Difference in current and deferred tax rates 0.3 (3.9) Adjustments in respect of prior years: – Deferred tax prior year adjustments (5.3) (2.8) – Current tax adjustments (6.8) 7.2 Income tax expense 117.6 59.6 Reported as: – expense in consolidated income statement (before separately disclosed items) 90.1 63.0 – expense/(credit) in consolidated income statement (tax on separately disclosed items) (note 6) 27.5 (3.4) Income tax expense 117.6 59.6 $ėįėƎƎėĐɆƢëǇ Deferred tax at 31 December relates to the following: $ėįėƎƎėĐɆƢëǇ liabilities $ėįėƎƎėĐɆƢëǇ assets 2021 £m 2020 £m 2021 £m 2020 £m Property, plant and equipment – – (62.3) (58.6) Intangible assets 333.0 284.7 (27.3) (19.8) ¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆëƖƖėƢƖɆ 33.3 22.6 – – Losses – – (27.0) (27.2) Other temporary difference 41.7 24.4 (24.8) (24.2) Deferred tax liabilities/ (assets) 408.0 331.7 (141.4) (129.8) pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 170 Financial statements ǤǣɆQŝĉŨśėɆƢëǇɆ(continued) Movements in deferred tax during the year ended 31 December 2021 were recognised as follows: Net deferred tax liabilities/(assets) Property, plant and equipment £m Intangible assets £m Retirement ĈėŝėǘƢɆëƖƖėƢƖ £m Losses £m Other temporary differences £m Total £m At 31 December 2020 (56.1) 304.9 23.4 (33.2) (5.2) 233.8 Income statement 0.1 (48.7) (0.7) 6.7 5.9 (36.7) Other comprehensive income – – (0.1) – – (0.1) Exchange adjustment (0.2) 6.3 – (0.7) (0.5) 4.9 At 31 December 2021 (56.2) 262.5 22.6 (27.2) 0.2 201.9 Income statement (6.9) 24.2 (0.2) (0.9) 10.8 27.0 Other comprehensive income – – 10.9 – – 10.9 Arising on business combinations (note 32) – 25.0 – – 7.2 32.2 Exchange adjustment 0.8 (6.0) – 1.1 (1.3) (5.4) At 31 December 2021 (62.3) 305.7 33.3 (27.0) 16.9 266.6 Amounts presented on the consolidated balance sheet: 2021 £m 2020 £m Deferred tax liabilities 408.0 331.7 Deferred tax assets (141.4) (129.8) Net deferred tax liability 266.6 201.9 Deferred tax assets are considered recognisable based on the ability of future offset against deferred tax liabilities or against future ƢëǇëĈŒėɆƋƎŨǘƢƖșɆ As at 31 December 2021, the Group had £1,621.6m (2020: £1,660.7m) of gross unrecognised deferred tax assets. This unrecognised deferred tax asset consists of £213.3m of capital losses (2020: £213.3m), £1,408.7m of trading losses (2020: £1,407.2m), £nil of deferred interest relief (2020: £40.2m) and £0.4m of other deferred tax assets (2020: £nil). These assets have not been recognised as they are not expected to be utilised in the foreseeable future. ¶ķėƎėɆëƎėɆŝŨɆƖļİŝļǘĉëŝƢɆƪŝƎėĉŨİŝļƖėĐɆƢëǇëĈŒėɆƢėśƋŨƎëƎǈɆĐļįįėƎėŝĉėƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆļŝǁėƖƢśėŝƢƖɆļŝɆƖƪĈƖļĐļëƎļėƖș The standard rate of UK corporation tax throughout the period was 19.0%. In the UK Budget on 3 March 2021, the Chancellor announced that the standard rate of UK Corporation Tax would be increased from 19% to 25% with effect from 1 April 2023. This was substantively enacted on 24 May 2021. Both the 19% and the 25% rate have therefore been used in measuring the UK deferred tax items at the date of this Report, depending on the expected date of reversal of any timing differences. The impact of the UK Corporation Tax increase in this Report is a credit of £13.0m to Underlying Items, and a charge of £10.6m to Separately Disclosed Items. In the Gibraltar Budget on 20 July 2021, the Chief Minister announced that the standard rate of Gibraltar Corporate Income Tax would be increased from 10% to 12.5% with effect from 1 August 2021. This was substantively enacted on 26 July 2021. The 12.5% rate has therefore been used in measuring the Gibraltar deferred tax items at the date of this Report. The impact of the Gibraltar Corporate Income Tax increase in this Report is a credit of £5.8m to Underlying Items, and a charge of £36.7m to Separately Disclosed Items. The Gibraltar Budget also introduced a temporary enhanced tax deduction for qualifying business marketing and promotion costs, which will apply for the years ending 31 December 2021 and 31 December 2022. This was substantively enacted on 30 July 2021. The impact of this temporary measure in this Report is a credit of £18.4m to Underlying Items. ¶ķėɆEƎŨƪƋȼƖɆįƪƢƪƎėɆƢëǇɆĉķëƎİėȚɆëŝĐɆėįįėĉƢļǁėɆƢëǇɆƎëƢėȚɆĉŨƪŒĐɆĈėɆëįįėĉƢėĐɆĈǈɆëɆŝƪśĈėƎɆŨįɆįëĉƢŨƎƖɆļŝĉŒƪĐļŝİɆƢķėɆśļǇɆŨįɆƋƎŨǘƢƖɆëƎļƖļŝİɆļŝɆėëĉķɆ country, changes to statutory corporate tax rates and the impact of continuing global tax reforms. The Group has noted the OECD’s work on the taxation of the digital economy and the EU Proposal for a Council Directive on ensuring a global minimum level of taxation for multinational groups, issued on 22 December 2021. If implemented, these are expected to apply to the Group from the year ended 31 December 2023. The Group expects this to increase the future Effective Tax Rate on Underlying Items. It is not yet possible to quantify the impact these changes will have until further details on the proposals and their implementation become available. The deferred tax assets and liabilities are measured at the tax rates of the respective territories which are expected to apply to the year in which the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at ƢķėɆĈëŒëŝĉėɆƖķėėƢɆĐëƢėșɆ$ėįėƎƎėĐɆƢëǇɆŨŝɆƎėƢļƎėśėŝƢɆĈėŝėǘƢɆëƖƖėƢƖɆļƖɆƋƎŨǁļĐėĐɆëƢɆǦǨșǣɼȚɆǂķļĉķɆļƖɆƢķėɆƎëƢėɆëƋƋŒļĉëĈŒėɆƢŨɆƎėįƪŝĐƖș 171 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 11 Dividends The dividends in the year of £24.5m relate entirely to dividends paid out to non-controlling interests (2020: £12.4m). ǤǥɆ,ëƎŝļŝİƖɆƋėƎɆƖķëƎė ëƖļĉɆėëƎŝļŝİƖɆƋėƎɆƖķëƎėɆķëƖɆĈėėŝɆĉëŒĉƪŒëƢėĐɆĈǈɆĐļǁļĐļŝİɆƢķėɆƋƎŨǘƢɆįŨƎɆƢķėɆǈėëƎɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėķŨŒĐėƎƖɆŨįɆƢķėɆŨśƋëŝǈɆŨįɆɞǥǧǬșǦśɆ (2020: £57.8m) by the weighted average number of shares in issue during the year of 585.7m (2020: 583.7m). At 31 December 2021, there were 586.6m €0.01 ordinary shares in issue. The calculation of adjusted earnings per share which removes separately disclosed items and foreign exchange gains and losses arising ŨŝɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆķëƖɆëŒƖŨɆĈėėŝɆĐļƖĉŒŨƖėĐɆëƖɆļƢɆƋƎŨǁļĐėƖɆëɆĈėƢƢėƎɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆƪŝĐėƎŒǈļŝİɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆEƎŨƪƋșɆ ©ėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆëƎėɆĐėǘŝėĐɆļŝɆŝŨƢėɆǧɆëŝĐɆĐļƖĉŒŨƖėĐɆļŝɆŝŨƢėɆǩș ¶ŨƢëŒɆėëƎŝļŝİƖɆƋėƎɆƖķëƎė ÕėļİķƢėĐɆëǁėƎëİėɆŝƪśĈėƎɆŨįɆƖķëƎėƖɆȩśļŒŒļŨŝƖȪ 2021 2020 Shares for basic earnings per share 585.7 583.7 Potentially dilutive share options and contingently issuable shares 5.4 6.2 Shares for diluted earnings per share 591.1 589.9 ¶ŨƢëŒɆƋƎŨǘƢ 2021 £m 2020 £m ƎŨǘƢɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėķŨŒĐėƎƖɆ 249.3 57.8 – from continuing operations 264.2 92.2 – from discontinued operations (14.9) (34.4) ȩEëļŝƖȪȦŒŨƖƖėƖɆëƎļƖļŝİɆįƎŨśɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ (62.0) 61.8 (Gains)/losses arising from foreign exchange debt instruments (56.2) 42.9 ƖƖŨĉļëƢėĐɆƢëǇɆĉķëƎİėɆŨŝɆİëļŝƖɆëƎļƖļŝİɆįƎŨśɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëŝĐɆįŨƎėļİŝɆėǇĉķëŝİėɆĐėĈƢɆļŝƖƢƎƪśėŝƢƖ 9.9 – Separately disclosed items net of tax (note 6) 170.9 193.8 ĐŌƪƖƢėĐɆƋƎŨǘƢɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėķŨŒĐėƎƖ 311.9 356.3 – from continuing operations 317.5 370.7 – from discontinued operations (5.6) (14.4) ,ëƎŝļŝİƖɆƋėƎɆƖķëƎėɆȩƋėŝĉėȪ Standard earnings ƋėƎɆƖķëƎė ĐŌƪƖƢėĐɆėëƎŝļŝİƖɆ ƋėƎɆƖķëƎė 2021 2020 2021 2020 Basic earnings per share – from continuing operations 45.1 15.8 54.3 63.5 – from discontinued operations (2.5) (5.9) (1.0) (2.5) DƎŨśɆƋƎŨǘƢɆįŨƎɆƢķėɆƋėƎļŨĐ 42.6 9.9 53.3 61.0 Diluted earnings per share – from continuing operations 44.7 15.6 53.8 62.8 – from discontinued operations (2.5) (5.8) (1.0) (2.4) DƎŨśɆƋƎŨǘƢɆįŨƎɆƢķėɆƋėƎļŨĐ 42.2 9.8 52.8 60.4 The earnings per share presented above is inclusive of the performance from the US joint venture BetMGM. Adjusting for the removal of the BetMGM performance would result in a basic adjusted earnings per share of 81.9p (2020: 73.9p) and a diluted adjusted earnings per share of 81.1p (2020: 73.1p) from continuing operations. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 172 Financial statements ǤǦɆEŨŨĐǂļŒŒɆëŝĐɆļŝƢëŝİļĈŒėɆëƖƖėƢƖ Goodwill £m Licences £m Software £m Customer relationships £m Trade-marks & brand names £m Total £m Cost At 1 January 2020 3,238.8 15.7 595.9 935.9 1,925.7 6,712.0 Exchange adjustment 128.3 – 11.3 20.6 30.3 190.5 Additions – – 101.6 – – 101.6 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (14.9) – (169.5) (7.9) (2.0) (194.3) At 31 December 2020 3,352.2 15.7 539.3 948.6 1,954.0 6,809.8 Exchange adjustment (132.8) (0.3) (28.0) (22.5) (32.7) (216.3) Additions – 12.8 96.7 – – 109.5 Additions from business combinations (note 32) 273.1 22.3 21.1 78.9 96.2 491.6 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė – (0.8) (8.2) – – (9.0) ¡ėĉŒëƖƖļǘĉëƢļŨŝ ––1.1––1.1 At 31 December 2021 3,492.5 49.7 622.0 1,005.0 2,017.5 7,186.7 Accumulated amortisation and impairment At 1 January 2020 272.4 6.3 379.3 593.2 96.4 1,347.6 Exchange adjustment 18.7 – 6.0 17.4 6.8 48.9 Amortisation charge – 1.1 115.8 262.2 39.3 418.4 Disposals – – (169.1) (1.2) (1.3) (171.6) At 31 December 2020 291.1 7.4 332.0 871.6 141.2 1,643.3 Exchange adjustment (15.6) (0.1) (22.3) (19.4) (8.6) (66.0) Amortisation charge – 6.8 102.7 89.8 48.0 247.3 Impairment charge ––1.6––1.6 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė – (0.8) (8.2) – – (9.0) At 31 December 2021 275.5 13.3 405.8 942.0 180.6 1,817.2 Net book value At 31 December 2020 3,061.1 8.3 207.3 77.0 1,812.8 5,166.5 At 31 December 2021 3,217.0 36.4 216.2 63.0 1,836.9 5,369.5 At 31 December 2021, the Group had not entered into contractual commitments for the acquisition of any intangible assets (2020: £nil). QŝĉŒƪĐėĐɆǂļƢķļŝɆƢƎëĐėȯśëƎŏƖɆʁɆĈƎëŝĐɆŝëśėƖɆëƎėɆɞǤȚǦǬǫșǧśɆȩǥǣǥǣțɆɞǤȚǦǬǫșǧśȪɆŨįɆļŝƢëŝİļĈŒėɆëƖƖėƢƖɆĉŨŝƖļĐėƎėĐɆƢŨɆķëǁėɆļŝĐėǘŝļƢėɆŒļǁėƖșɆ ¶ķėƖėɆëƖƖėƢƖɆƎėŒëƢėɆƢŨɆƢķėɆ½bɆdëĐĈƎŨŏėƖɆëŝĐɆŨƎëŒɆĈƎëŝĐƖɆǂķļĉķɆëƎėɆĉŨŝƖļĐėƎėĐɆƢŨɆķëǁėɆļŝĐėǘŝļƢėɆĐƪƎëĈļŒļƢǈɆƢķëƢɆĉëŝɆĈėɆĐėśŨŝƖƢƎëƢėĐȚɆ ëŝĐɆƢķėļƎɆǁëŒƪėɆĉëŝɆĈėɆƎėëĐļŒǈɆśėëƖƪƎėĐșɆ¶ķėɆĈƎëŝĐƖɆŨƋėƎëƢėɆļŝɆŒŨŝİƖƢëŝĐļŝİɆëŝĐɆƋƎŨǘƢëĈŒėɆśëƎŏėƢɆƖėĉƢŨƎƖșɆ¶ķėɆEƎŨƪƋɆķëƖɆëɆƖƢƎŨŝİɆ ƋŨƖļƢļŨŝɆļŝɆƢķėɆśëƎŏėƢɆëŝĐɆƢķėƎėɆëƎėɆĈëƎƎļėƎƖɆƢŨɆėŝƢƎǈɆĐƪėɆƢŨɆƢķėɆƎėƍƪļƎėśėŝƢɆƢŨɆĐėśŨŝƖƢƎëƢėɆƢķëƢɆƢķėɆëƋƋŒļĉëŝƢɆļƖɆëɆǘƢɆëŝĐɆƋƎŨƋėƎɆƋėƎƖŨŝɆ with the “know-how” required to run such operations. EŨŨĐǂļŒŒɆƎėǙėĉƢƖɆƢķėɆǁëŒƪėɆĈǈɆǂķļĉķɆĉŨŝƖļĐėƎëƢļŨŝɆėǇĉėėĐƖɆƢķėɆįëļƎɆǁëŒƪėɆŨįɆŝėƢɆëƖƖėƢƖɆëĉƍƪļƎėĐɆëƖɆƋëƎƢɆŨįɆëɆĈƪƖļŝėƖƖɆĉŨśĈļŝëƢļŨŝɆ including the deferred tax liability arising on acquisitions. Licences comprise the cost of acquired betting shop licences. Software relates to the cost of acquired software, through purchase or business combination, and the capitalisation of internally developed software. Additions of £96.7m (2020: £101.6m) include £46.0m of internally capitalised costs (2020: £31.1m). Customer relationships, trade-marks and brand names relate to the fair value of customer lists, trade-marks and brand names acquired as part of business combinations, primarily relating to the bwin, Ladbrokes Coral Group plc and Enlabs businesses. An impairment charge of £1.6m (2020: £nil) has been made against assets relating to the disposed Betdaq business. See notes 6 and 14 for further details of the impairment charge. 173 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǤǧɆQśƋëļƎśėŝƢɆƢėƖƢļŝİɆŨįɆİŨŨĐǂļŒŒɆëŝĐɆļŝĐėǘŝļƢėɆŒļįėɆļŝƢëŝİļĈŒėɆëƖƖėƢƖ An impairment loss is recognised for any amount by which an asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. For the purposes of assessing impairment, assets are İƎŨƪƋėĐɆëƢɆƢķėɆŒŨǂėƖƢɆŒėǁėŒƖɆįŨƎɆǂķļĉķɆƢķėƎėɆëƎėɆƖėƋëƎëƢėŒǈɆļĐėŝƢļǘëĈŒėɆĉëƖķɆǙŨǂƖɆȩĉëƖķȯİėŝėƎëƢļŝİɆƪŝļƢƖȪș ÕļƢķļŝɆ½bɆëŝĐɆ,ƪƎŨƋėëŝɆ¡ėƢëļŒȚɆƢķėɆĉëƖķɆİėŝėƎëƢļŝİɆƪŝļƢƖɆȩȹE½ƖȺȪɆëƎėɆİėŝėƎëŒŒǈɆëŝɆļŝĐļǁļĐƪëŒɆdļĉėŝƖėĐɆėƢƢļŝİɆ{įǘĉėɆȩȹd{ȺȪɆëŝĐɆ ƢķėƎėįŨƎėȚɆļśƋëļƎśėŝƢɆļƖɆǘƎƖƢɆëƖƖėƖƖėĐɆëƢɆƢķļƖɆŒėǁėŒɆįŨƎɆŒļĉėŝĉėƖɆȩļŝƢëŝİļĈŒėƖȪɆëŝĐɆƋƎŨƋėƎƢǈȚɆƋŒëŝƢɆëŝĐɆėƍƪļƋśėŝƢȚɆǂļƢķɆëŝǈɆļśƋëļƎśėŝƢɆ arising booked to licences and property, plant and equipment on a pro-rata basis. Since goodwill and brand names have not been historically allocated to individual LBOs, a secondary assessment is then made to compare the carrying value of the segment against the ƎėĉŨǁėƎëĈŒėɆëśŨƪŝƢɆǂļƢķɆëŝǈɆëĐĐļƢļŨŝëŒɆļśƋëļƎśėŝƢɆƢķėŝɆƢëŏėŝɆëİëļŝƖƢɆİŨŨĐǂļŒŒɆǘƎƖƢș DŨƎɆ{ŝŒļŝėɆƢķėɆE½ɆļƖɆƢķėɆƎėŒėǁëŝƢɆİėŨİƎëƋķļĉëŒɆŒŨĉëƢļŨŝɆŨƎɆĈƪƖļŝėƖƖɆƪŝļƢȚɆįŨƎɆėǇëśƋŒėɆƪƖƢƎëŒļëȚɆ,ƪƎŨƋėëŝɆĐļİļƢëŒɆȩĐėǘŝėĐɆëƖɆǂėĈƖļƢėƖɆ ķŨƖƢėĐɆĈǈɆƋƎŨƋƎļėƢëƎǈɆƋŒëƢįŨƎśƖɆĈëƖėĐɆļŝɆ,ƪƎŨƋėëŝɆĉŨŝƖƢļƢƪėŝƢɆĉŨƪŝƢƎļėƖȪȚɆ$ļİļƢëŒɆȩĐėǘŝėĐɆëƖɆǂėĈƖļƢėƖɆķŨƖƢėĐɆĈǈɆ,ŝƢëļŝɆƋƎŨƋƎļėƢëƎǈɆ ƋŒëƢįŨƎśƖȪɆėƢĉșɆëŝĐɆëŝǈɆļśƋëļƎśėŝƢƖɆëƎėɆśëĐėɆǘƎƖƢŒǈɆƢŨɆİŨŨĐǂļŒŒȚɆŝėǇƢɆƢŨɆëŝǈɆĉëƋļƢëŒļƖėĐɆļŝƢëŝİļĈŒėɆëƖƖėƢɆëŝĐɆƢķėŝɆǘŝëŒŒǈɆƢŨɆƋƎŨƋėƎƢǈȚɆ ƋŒëŝƢɆëŝĐɆėƍƪļƋśėŝƢșɆ¶ķėɆėǇƋėĉƢėĐɆĉëƖķɆǙŨǂƖɆİėŝėƎëƢėĐɆĈǈɆƢķėɆëƖƖėƢƖɆëƎėɆĐļƖĉŨƪŝƢėĐɆƪƖļŝİɆëƋƋƎŨƋƎļëƢėɆĐļƖĉŨƪŝƢɆƎëƢėƖɆƢķëƢɆƎėǙėĉƢɆƢķėɆ time value of money and risks associated with the group of assets. DŨƎɆĈŨƢķɆƢëŝİļĈŒėɆëŝĐɆļŝƢëŝİļĈŒėɆëƖƖėƢƖȚɆƢķėɆįƪƢƪƎėɆĉëƖķɆǙŨǂƖɆëƎėɆĈëƖėĐɆŨŝɆƢķėɆįŨƎėĉëƖƢƖɆëŝĐɆĈƪĐİėƢƖɆŨįɆƢķėɆE½ɆŨƎɆĈƪƖļŝėƖƖɆĐļƖĉŨƪŝƢėĐɆ ƢŨɆƎėǙėĉƢɆƢļśėɆǁëŒƪėɆŨįɆśŨŝėǈșɆ¶ķėɆŏėǈɆëƖƖƪśƋƢļŨŝƖɆǂļƢķļŝɆƢķėɆ½bɆëŝĐɆ,ƪƎŨƋėëŝɆ¡ėƢëļŒɆĈƪĐİėƢƖɆëƎėɆ{¶ɆǂëİėƎƖɆȩĉƪƖƢŨśėƎɆǁļƖļƢƖɆëŝĐɆ spend per visit), the average number of machines per shop, gross win per shop per week, salary increases, the potential impact of the ƖķŨƋɆĉŒŨƖƪƎėƖɆëŝĐɆƢķėɆǘǇėĐɆĉŨƖƢƖɆŨįɆƢķėɆd{ƖșɆ¶ķėɆŏėǈɆëƖƖƪśƋƢļŨŝƖɆǂļƢķļŝɆƢķėɆĈƪĐİėƢƖɆįŨƎɆ{ŝŒļŝėɆëƎėɆƢķėɆŝƪśĈėƎɆŨįɆëĉƢļǁėɆĉƪƖƢŨśėƎƖȚɆŝėƢɆ revenue per head, win percentage, marketing spend, revenue shares and operating costs. ¶ķėɆǁëŒƪėȯļŝȯƪƖėɆĉëŒĉƪŒëƢļŨŝƖɆƪƖėɆĉëƖķɆǙŨǂƖɆĈëƖėĐɆŨŝɆĐėƢëļŒėĐȚɆĈŨëƎĐɆëƋƋƎŨǁėĐȚɆǘŝëŝĉļëŒɆĈƪĐİėƢƖɆƋƎėƋëƎėĐɆĈǈɆśëŝëİėśėŝƢɆĉŨǁėƎļŝİɆ a three-year period. These forecasts have been extrapolated over years 4 to 8 representing a declining growth curve from year 3 until the long term forecast growth rate is reached. The growth rates used from years 4-8 range from 0% to 16%. From year 9 onwards long term growth rates used are between 0% and 2.0% (2020: between 0% and 3.0%) and are based on the long term GDP growth rate of the countries in which the relevant CGUs operate or the relevant outlook for the business. An 8-year horizon is considered appropriate based ŨŝɆƢķėɆEƎŨƪƋȼƖɆķļƖƢŨƎǈɆŨįɆƪŝĐėƎŒǈļŝİɆƋƎŨǘƢɆëƖɆǂėŒŒɆëƖɆėŝƖƪƎļŝİɆƢķėƎėɆļƖɆëŝɆëƋƋƎŨƋƎļëƢėɆĐėĉŒļŝėɆƢŨɆŒŨŝİɆƢėƎśɆİƎŨǂƢķɆƎëƢėƖɆįƎŨśɆƢķŨƖėɆİƎŨǂƢķɆ rates currently observed in our key markets. A 0% growth rate has been used for the UK Retail operating segment due to the ongoing ƪŝĉėƎƢëļŝƢǈɆįŨŒŒŨǂļŝİɆŨǁļĐȯǤǬșɆŒŒɆŏėǈɆëƖƖƪśƋƢļŨŝƖɆƪƖėĐɆļŝɆƢķėɆǁëŒƪėȯļŝȯƪƖėɆĉëŒĉƪŒëƢļŨŝƖɆƎėǙėĉƢɆƢķėɆEƎŨƪƋȼƖɆƋëƖƢɆėǇƋėƎļėŝĉėɆƪŝŒėƖƖɆëɆ relevant external source of information is available. ¶ķėɆĐļƖĉŨƪŝƢɆƎëƢėɆĉëŒĉƪŒëƢļŨŝɆļƖɆĈëƖėĐɆŨŝɆƢķėɆƖƋėĉļǘĉɆĉļƎĉƪśƖƢëŝĉėƖɆǂļƢķɆƎėįėƎėŝĉėɆƢŨɆƢķėɆÕɆëŝĐɆƎļƖŏɆįëĉƢŨƎƖɆėǇƋėĉƢėĐɆļŝɆƢķėɆļŝĐƪƖƢƎǈɆ in which the Group operates. The pre-tax discount rates used and the associated carrying value of goodwill by CGU is as follows: EŨŨĐǂļŒŒ 2021 % 2020 % 2021 £m 2020 £m Digital 10.9 9.1 2,121.5 2,101.1 UK Retail 10.9 9.1 76.4 76.4 Australia 11.7 10.6 331.2 349.5 European Retail 9.3 – 11.5 8.5 – 10.4 153.0 163.7 European Digital 10.9 – 11.5 9.9 – 10.4 332.0 355.2 Enlabs 12.7 n/a 187.7 – All other segments 10.9 9.1 15.2 15.2 3,217.0 3,061.1 It is not practical or material to disclose the carrying value of individual licences by LBO. Impairment recognised during the year Impairments of intangible assets and property, plant and equipment are recognised as separately disclosed items within operating expenses. $ƪƎļŝİɆƢķėɆĉƪƎƎėŝƢɆǈėëƎȚɆƢķėɆEƎŨƪƋɆƎėĉŨƎĐėĐɆëɆŝŨŝȯĉëƖķɆļśƋëļƎśėŝƢɆĉķëƎİėɆŨįɆɞǦșǦśɆȩǥǣǥǣțɆɞǨșǣśȪɆŨŝɆĉėƎƢëļŝɆķėëĐɆŨįǘĉėɆŒŨĉëƢļŨŝƖɆǂķļĉķɆ are now vacant (within the Retail segment), and against assets relating to the disposed Betdaq business (within All other segment). Sensitivity analysis ɆƎėĐƪĉƢļŨŝɆƢŨɆǣɼɆįŨƎɆƢķėɆƢėƎśļŝëŒɆİƎŨǂƢķɆƎëƢėɆëƋƋŒļėĐɆƢŨɆƢķėɆĉëƖķǙŨǂƖɆȩǂļƢķɆŨƢķėƎɆëƖƖƪśƋƢļŨŝƖɆƎėśëļŝļŝİɆĉŨŝƖƢëŝƢȪɆǂŨƪŒĐɆƎėƖƪŒƢɆļŝɆŝŨɆ additional impairment to any CGU. ɆǨɼɆĐėĉƎėëƖėɆļŝɆëŒŒɆĉëƖķɆǙŨǂƖɆƪƖėĐɆļŝɆƢķėɆĐļƖĉŨƪŝƢėĐɆĉëƖķɆǙŨǂɆśŨĐėŒɆįŨƎɆƢķėɆǁëŒƪėɆļŝɆƪƖėɆĉëŒĉƪŒëƢļŨŝɆȩǂļƢķɆŨƢķėƎɆëƖƖƪśƋƢļŨŝƖɆƎėśëļŝļŝİɆ constant) would result in no additional impairment to any CGU. ɆǣșǨƋƋɆļŝĉƎėëƖėɆļŝɆĐļƖĉŨƪŝƢɆƎëƢėƖɆƪƖėĐɆļŝɆƢķėɆĐļƖĉŨƪŝƢėĐɆĉëƖķɆǙŨǂɆśŨĐėŒɆįŨƎɆƢķėɆǁëŒƪėɆļŝɆƪƖėɆĉëŒĉƪŒëƢļŨŝɆȩǂļƢķɆëŒŒɆŨƢķėƎɆëƖƖƪśƋƢļŨŝƖɆ remaining constant) would result in no additional impairment to any CGU. No other reasonable change in assumptions to the CGUs would cause any additional impairment. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 174 Financial statements ǤǧɆQśƋëļƎśėŝƢɆƢėƖƢļŝİɆŨįɆİŨŨĐǂļŒŒɆëŝĐɆļŝĐėǘŝļƢėɆŒļįėɆļŝƢëŝİļĈŒėɆëƖƖėƢƖɆ(continued) QśƋëļƎśėŝƢɆƢėƖƢļŝİɆëĉƎŨƖƖɆƢķėɆĈƪƖļŝėƖƖ dļĉėŝĉėƖȦ įƎëŝĉķļƖėėƖ ,ɆʁɆ©ŨįƢǂëƎė Customer ƎėŒëƢļŨŝƖķļƋƖ EŨŨĐǂļŒŒ Brand name Digital UK Retail ROI Eurobet Digital Eurobet Retail Belgium Digital Belgium Retail Australia Enlabs Digital Impairment review UK Retail site by site Impairment review UK Retail – Impairment review ROI Impairment reviewROI site by site Impairment review Australia Impairment review Enlabs Impairment review Belgium Digital Impairment review Belgium Digital Impairment review Eurobet Retail Impairment review Eurobet Digital Impairment review Combined $ļİļƢëŒȦ UK Retail Impairment review Eurobet Impairment review Belgium Impairment review 175 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 15 Property, plant and equipment Land and buildings £m Plant and equipment £m Fixtures ëŝĐɆǘƢƢļŝİƖɆ £m Leased assets £m Total £m Cost At 1 January 2020 29.6 78.6 237.5 439.8 785.5 Exchange adjustment – 2.4 3.7 3.5 9.6 Additions 13.9 13.0 31.6 70.9 129.4 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (17.0) (4.6) (72.9) (2.8) (97.3) ¡ėĉŒëƖƖļǘĉëƢļŨŝ – – (18.1) 18.1 – At 31 December 2020 26.5 89.4 181.8 529.5 827.2 Exchange adjustment (0.6) (2.7) (12.0) (5.6) (20.9) Additions 14.9 16.8 38.1 52.0 121.8 Additions from business combinations (note 32) 0.2 2.0 0.2 0.9 3.3 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (14.2) (1.9) (19.8) (4.5) (40.4) ¡ėĉŒëƖƖļǘĉëƢļŨŝ - (1.1) – – (1.1) At 31 December 2021 26.8 102.5 188.3 572.3 889.9 Accumulated depreciation At 1 January 2020 21.2 15.7 90.3 190.4 317.6 Exchange adjustment – 1.4 2.0 0.4 3.8 Depreciation charge 10.3 12.9 41.6 62.4 127.2 Impairment – – – 5.0 5.0 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (17.0) (4.6) (72.9) (2.1) (96.6) ¡ėĉŒëƖƖļǘĉëƢļŨŝ – (7.1) 7.1 – At 31 December 2020 14.5 25.4 53.9 263.2 357.0 Exchange adjustment (0.6) (2.1) (10.6) (2.0) (15.3) Depreciation charge 11.6 16.9 28.7 62.5 119.7 Impairment – – – 1.7 1.7 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (14.2) (1.9) (19.8) (4.5) (40.4) At 31 December 2021 11.3 38.3 52.2 320.9 422.7 Net book value At 31 December 2020 12.0 64.0 127.9 266.3 470.2 At 31 December 2021 15.5 64.2 136.1 251.4 467.2 At 31 December 2021, the Group had not entered into contractual commitments for the acquisition of any property, plant and equipment (2020: £nil). QŝɆƢķėɆƋƎėĉėĐļŝİɆǈėëƎɆƢķėɆEƎŨƪƋɆƎėĉŒëƖƖļǘėĐɆĉėƎƢëļŝɆŒėëƖėĐɆëƖƖėƢƖɆƢķëƢɆǂėƎėɆƋƎėǁļŨƪƖŒǈɆķėŒĐɆǂļƢķļŝɆǘǇƢƪƎėƖɆëŝĐɆǘƢƢļŝİƖɆƢŨɆĈėɆƋƎėƖėŝƢėĐɆ within Leased assets. QŝĉŒƪĐėĐɆǂļƢķļŝɆǘǇƢƪƎėƖȚɆǘƢƢļŝİƖɆëŝĐɆėƍƪļƋśėŝƢɆëƎėɆëƖƖėƢƖɆļŝɆƢķėɆĉŨƪƎƖėɆŨįɆĉŨŝƖƢƎƪĉƢļŨŝɆǂķļĉķɆëƎėɆŝŨƢɆĈėļŝİɆĐėƋƎėĉļëƢėĐɆŨįɆɞǫșǦśɆ (2020: £38.8m), relating predominantly to the new till system in UK Retail. ŝɆļśƋëļƎśėŝƢɆĉķëƎİėɆŨįɆɞǤșǪśɆȩǥǣǥǣțɆɞǨșǣśȪɆķëƖɆĈėėŝɆśëĐėɆëİëļŝƖƢɆŨįǘĉėɆĈƪļŒĐļŝİƖɆļŝĉŒƪĐėĐɆǂļƢķļŝɆŒėëƖėĐɆëƖƖėƢƖɆļŝɆƢķėɆǈėëƎșɆ See notes 6 and 14 for further details. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 176 Financial statements 15 Property, plant and equipment (continued) Analysis of leased assets: Land and buildings £m Plant and equipment £m Total £m Cost At 1 January 2020 433.4 6.4 439.8 Exchange adjustment 3.3 0.2 3.5 Additions 40.3 30.6 70.9 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (0.8) (2.0) (2.8) ¡ėĉŒëƖƖļǘĉëƢļŨŝ – 18.1 18.1 At 31 December 2020 476.2 53.3 529.5 Exchange adjustment (5.5) (0.1) (5.6) Additions 51.1 0.9 52.0 Additions from business combinations 0.9 – 0.9 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (2.0) (2.5) (4.5) At 31 December 2021 520.7 51.6 572.3 Accumulated depreciation At 1 January 2020 188.2 2.2 190.4 Exchange adjustment 0.3 0.1 0.4 Depreciation charge 56.6 5.8 62.4 Impairment 5.0 – 5.0 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (0.3) (1.8) (2.1) ¡ėĉŒëƖƖļǘĉëƢļŨŝ – 7.1 7.1 At 31 December 2020 249.8 13.4 263.2 Exchange adjustment (1.9) (0.1) (2.0) Depreciation charge 52.2 10.3 62.5 Impairment 1.7 – 1.7 $ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (2.0) (2.5) (4.5) At 31 December 2021 299.8 21.1 320.9 Net book value At 31 December 2020 226.4 39.9 266.3 At 31 December 2021 220.9 30.5 251.4 ǤǩɆQŝƢėƎėƖƢɆļŝɆŌŨļŝƢɆǁėŝƢƪƎė Share of joint venture’s net assets £m Cost At 1 January 2020 6.0 Additions 61.8 Exchange adjustment (1.0) Share of loss after tax (60.6) At 31 December 2020 6.2 Additions 164.4 Exchange adjustment 1.0 Share of loss after tax (161.9) At 31 December 2021 9.7 The joint venture represents the Group’s investment in BetMGM set up in the US in which a 50% stake is held. 177 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǤǩɆQŝƢėƎėƖƢɆļŝɆŌŨļŝƢɆǁėŝƢƪƎėɆ(continued) ©ƪśśëƎļƖėĐɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆŌŨļŝƢɆǁėŝƢƪƎėȼƖɆŝėƢɆëƖƖėƢƖɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂț 2021 £m 2020 £m Non-current assets 103.5 42.2 Cash and cash equivalents 208.1 45.0 Other current assets 67.8 15.5 Current assets 275.9 60.5 Balances with customers (132.6) (16.2) Other current liabilities (227.4) (67.1) Current liabilities (360.0) (83.3) Non-current liabilities – (7.0) Net assets 19.4 12.4 Group’s share of net assets 9.7 6.2 ©ƪśśëƎļƖėĐɆƖƢëƢėśėŝƢɆŨįɆĉŨśƋƎėķėŝƖļǁėɆļŝĉŨśėɆ 2021 £m 2020 £m Revenue 617.9 135.5 Depreciation and amortisation (12.0) (3.5) Other operating expenses (929.7) (253.2) Income tax – – Loss for the year (323.8) (121.2) Group’s share of loss (161.9) (60.6) There are no contingent liabilities relating to the Group’s interest in the joint venture (2020: £nil). The risks associated with the Group’s interest in joint ventures are aligned to the same risks the Group is exposed to on the basis that they operate wholly within the betting and gaming market. The Group has committed to further investment in BetMGM over the course of 2022, with $225.0m additional contributions expected ($450.0m split between both joint venture partners). This will take the Group’s total investment to $550m ($1.1bn across both joint venture partners). ǤǪɆQŝƢėƎėƖƢɆļŝɆëƖƖŨĉļëƢėƖɆëŝĐɆŨƢķėƎɆļŝǁėƖƢśėŝƢƖ Share of associates’ net assets £m Other investments £m Total £m Cost At 1 January 2020 19.0 10.9 29.9 Additions – 0.2 0.2 Revaluation loss – (1.7) (1.7) ©ķëƎėɆŨįɆƋƎŨǘƢɆëįƢėƎɆƢëǇ 0.4 – 0.4 Share of other comprehensive income 0.3 – 0.3 Foreign exchange (0.4) 0.7 0.3 At 31 December 2020 19.3 10.1 29.4 Revaluation loss – (2.3) (2.3) Arising on business combinations (note 32) – 2.9 2.9 Additions 25.6 3.8 29.4 Share of loss after tax (0.6) – (0.6) Foreign exchange (0.1) (0.3) (0.4) At 31 December 2021 44.2 14.2 58.4 pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 178 Financial statements ǤǪɆQŝƢėƎėƖƢɆļŝɆëƖƖŨĉļëƢėƖɆëŝĐɆŨƢķėƎɆļŝǁėƖƢśėŝƢƖɆ(continued) Associates ©ƪśśëƎļƖėĐɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆëƖƖŨĉļëƢėƖɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂț 2021 £m 2020 £m Non-current assets 43.3 14.1 Current assets 132.9 106.5 Current liabilities (72.7) (51.5) Net assets 103.5 69.1 Group’s share of net assets 44.2 19.3 Revenue for the year 193.5 197.2 ƎŨǘƢȦȩŒŨƖƖȪɆįŨƎɆƢķėɆǈėëƎ 0.3 (1.7) Other comprehensive (expense)/income (1.2) 1.3 Total comprehensive expense (0.9) (0.4) Group’s share of total comprehensive (expense)/income (0.6) 0.7 Further details of the Group’s associates are listed in note 34. ¶ķėɆǘŝëŝĉļëŒɆǈėëƎɆėŝĐɆŨįɆ©ƋŨƎƢƖɆQŝįŨƎśëƢļŨŝɆ©ėƎǁļĉėƖɆȩLŨŒĐļŝİƖȪɆdļśļƢėĐɆȩ©Q©ȪȚɆëŝɆëƖƖŨĉļëƢėɆŨįɆƢķėɆEƎŨƪƋȚɆļƖɆǦǤɆnëƎĉķșɆ¶ķėɆEƎŨƪƋɆķëƖɆ included the results for SIS for the 12 months ended 31 December 2021. QŝɆƢķėɆǈėëƎɆƢķėɆEƎŨƪƋɆëĉƍƪļƎėĐɆįŨƪƎɆŝėǂɆëƖƖŨĉļëƢėƖȜɆEƎëŝɆëƖļŝŨɆ$ļŝëŝƢɆ©ȚɆQŝǘŝļƢļɆëƖļŝŨɆ{ŨƖƢėŝĐėɆpÔȚɆdėëĐėƎĈėƢɆpÔɆëŝĐɆ$ƎëǂɆʁɆŨĐėɆ Limited. All associates are private companies and there are no quoted market price available for their shares. The risks associated with associate investments considered to be aligned to the same risks the Group is exposed to on the basis that they operate wholly within the betting and gaming market. {ƢķėƎɆļŝǁėƖƢśėŝƢƖɆŨįɆɞǤǧșǥśɆȩǥǣǥǣțɆɞǤǣșǤśȪɆĉŨŝƖļƖƢɆŨįɆļŝǁėƖƢśėŝƢƖɆǂķļĉķɆķëǁėɆŝŨɆǘǇėĐɆśëƢƪƎļƢǈɆĐëƢėɆŨƎɆĉŨƪƋŨŝɆƎëƢėș ǤǫɆ¶ƎëĐėɆëŝĐɆŨƢķėƎɆƎėĉėļǁëĈŒėƖ 2021 £m 2020 £m Trade receivables 22.5 12.8 Other receivables 461.6 385.8 Finance lease receivable 4.1 4.9 Prepayments 54.6 76.1 542.8 479.6 Trade and other receivables are presented on the Balance Sheet as follows: 2021 £m 2020 £m Current 539.8 475.8 Non-current 3.0 3.8 Total 542.8 479.6 Trade receivables are non-interest bearing and are generally on 30-90 day terms. Trade receivables are reviewed for impairment on an ŨŝİŨļŝİɆĈëƖļƖȚɆƢëŏļŝİɆëĉĉŨƪŝƢɆŨįɆƢķėɆëİėļŝİɆŨįɆŨƪƢƖƢëŝĐļŝİɆëśŨƪŝƢƖɆëŝĐɆƢķėɆĉƎėĐļƢɆƋƎŨǘŒėɆŨįɆĉƪƖƢŨśėƎƖșɆQśƋëļƎėĐɆƎėĉėļǁëĈŒėƖȚɆļŝĉŒƪĐļŝİɆ all trade receivables that are a year old, are provided for in an allowance account. Impaired receivables are derecognised when they are ëƖƖėƖƖėĐɆëƖɆļƎƎėĉŨǁėƎëĈŒėșɆ¶ķėɆėǇƋėĉƢėĐɆĉƎėĐļƢɆŒŨƖƖėƖɆëƎļƖļŝİɆįƎŨśɆƎėĉėļǁëĈŒėƖɆëƎėɆŝŨƢɆĉŨŝƖļĐėƎėĐɆƢŨɆĈėɆƖļİŝļǘĉëŝƢșɆ The balance of other receivables consists of the receivable for Greek tax of €227.5m (2020: €145.0m), amounts receivable from payment service providers of £130.8m (2020: £172.4m), and other smaller items such as regulatory deposits, security deposits, rent deposits and ĈëŒëŝĉėƖɆĐƪėɆįƎŨśɆëįǘŒļëƢėƖɆëŝĐɆƋëƎƢŝėƎƖșɆ Greek tax In November, The Athens Administrative Court of Appeal ruled in favour of the Group on the 2010/11 Greek Tax Assessment, a ruling which has subsequently been appealed by the Greek authorities. Following the ruling, the Group is now entitled to recover all amounts paid under the 2010/11 Assessment plus interest and, as such, a receivable of €227.5m has been recorded. Whilst the Group expects to be successful in defending the appeal by the Greek authorities, should the Greek Supreme Administrative Court rule in favour of the Greek tax authorities, then the Group may become liable for the full 2010/11 Assessment plus interest. ÕķļŒƖƢɆƢķėɆŨƪƢĉŨśėɆŨįɆƢķėɆëƋƋėëŒɆķėëƎļŝİȚɆǂķļĉķɆļƖɆŝŨƢɆėǇƋėĉƢėĐɆƪŝƢļŒɆǥǣǥǧȚɆƎėśëļŝƖɆƪŝĉėƎƢëļŝȚɆƢķėɆEƎŨƪƋɆƎėśëļŝƖɆĉŨŝǘĐėŝƢɆƢķëƢɆƢķėɆ ©ƪƋƎėśėɆŨƪƎƢɆǂļŒŒɆëŒƖŨɆǘŝĐɆļŝɆįëǁŨƪƎɆŨįɆƢķėɆEƎŨƪƋș 179 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǤǬɆëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆ 2021 £m 2020 £m Cash and short-term deposits 487.1 706.7 ĐĐļƢļŨŝëŒɆƢŨɆƢķėɆĉëƖķɆĈëŒëŝĉėɆëĈŨǁėȚɆļŝɆƢķėɆƋƎļŨƎɆǈėëƎȚɆǂėƎėɆëśŨƪŝƢƖɆŨįɆɞǧǦșǤśɆļŝĉŒƪĐėĐɆǂļƢķļŝɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒėș ëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆƖƢëƢėśėŝƢɆŨįɆĉëƖķɆǙŨǂƖɆĉŨśƋƎļƖėƖɆĉëƖķɆëƢɆĈëŝŏɆǂļƢķɆëɆśëƢƪƎļƢǈɆŨįɆƢķƎėėɆśŨŝƢķƖɆŨƎɆŒėƖƖȚɆ overdrafts net of short term investments and includes £69.4m (2020: £36.3m) restricted in respect of customer accounts. ǥǣɆ¶ƎëĐėɆëŝĐɆŨƢķėƎɆƋëǈëĈŒėƖ Current trade and other payables comprise: 2021 £m 2020 £m Trade payables 66.7 47.1 Other payables 112.7 103.3 Social security and other taxes 208.1 229.7 Accruals 308.3 307.3 695.8 687.4 ǥǤɆƖƖėƢƖɆķėŒĐɆįŨƎɆƖëŒėɆëŝĐɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖ During the year the Group disposed of its interest in its spread betting business recognising a loss on disposal of £9.3m in 2021. Inclusive of the loss on disposal, the results for the year for the discontinued operation were: 2021 £m 2020 £m Revenue 11.0 13.8 Cost of sales (6.9) (7.6) EƎŨƖƖɆƋƎŨǘƢ 4.1 6.2 Administrative costs (9.7) (20.6) Operating loss (5.6) (14.4) Separately disclosed items (9.3) (21.3) dŨƖƖɆĈėįŨƎėɆƢëǇ (14.9) (35.7) Income tax credit – 1.3 dŨƖƖɆįŨƎɆƢķėɆǈėëƎɆįƎŨśɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖɆëįƢėƎɆƢëǇ (14.9) (34.4) Separately disclosed items consist of £9.3m (2020: provision of £10.0m) relating to a loss on disposal (including tax), £nil (2020: £3.4m) relating to amortisation of acquired intangibles, £nil (2020: £19.3m) relating to impairment and £nil (2020: £11.4m gain) relating to movement in fair value of contingent consideration. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 180 Financial statements ǥǤɆƖƖėƢƖɆķėŒĐɆįŨƎɆƖëŒėɆëŝĐɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖɆ(continued) QƢėśƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐȯįŨƎȯƖëŒėɆŨŝɆƢķėɆĈëŒëŝĉėɆƖķėėƢɆëƎėɆĐļƖĉŒŨƖėĐɆĈėŒŨǂț 2021 £m 2020 £m Non-current assets Property, plant and equipment – 0.7 Current assets Trade and other receivables – 155.3 Cash and cash equivalents – 43.1 – 198.4 ƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė – 199.1 Current liabilities Trade and other payables – (12.7) Balances with customers – (155.0) {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ – (4.3) dļëĈļŒļƢļėƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė – (172.0) 22 Lease liabilities 2021 £m 2020 £m Current Lease liabilities 78.2 89.8 Non-current Lease liabilities 215.5 248.2 Total lease liabilities 293.7 338.0 ¶ķėɆEƎŨƪƋȼƖɆŒėëƖļŝİɆëĉƢļǁļƢǈɆĉŨŝƖļƖƢƖɆŨįɆŒėëƖėƖɆŨŝɆƋƎŨƋėƎƢǈȚɆĉëƎƖȚɆ©ėŒįɆ©ėƎǁļĉėɆėƢƢļŝİɆ¶ėƎśļŝëŒƖɆëŝĐɆŨįǘĉėɆėƍƪļƋśėŝƢșɆ¶ķėɆśëŌŨƎļƢǈɆŨįɆ ƢķŨƖėɆƎėŒëƢėɆƢŨɆƢķėɆŒėëƖļŝİɆŨįɆd{ƖɆǂļƢķļŝɆƢķėɆ¡ėƢëļŒɆėƖƢëƢėƖɆëŝĐɆŨįǘĉėɆĈƪļŒĐļŝİƖșɆ ,ëĉķɆŒėëƖėɆļƖɆƎėǙėĉƢėĐɆŨŝɆƢķėɆĈëŒëŝĉėɆƖķėėƢɆëƖɆëɆƎļİķƢȯŨįȯƪƖėɆëƖƖėƢɆëŝĐɆëɆŒėëƖėɆŒļëĈļŒļƢǈșɆÔëƎļëĈŒėɆŒėëƖėɆƋëǈśėŝƢƖɆǂķļĉķɆĐŨɆŝŨƢɆĐėƋėŝĐɆŨŝɆ an index or a rate (such as lease payments on gaming machines based on a percentage of revenue) are excluded from the measurement ŨįɆƢķėɆŒėëƖėɆŒļëĈļŒļƢǈɆëŝĐɆëƖƖėƢșɆ¶ķėɆEƎŨƪƋɆĉŒëƖƖļǘėƖɆļƢƖɆƎļİķƢȯŨįȯƪƖėɆëƖƖėƢƖɆļŝɆëɆĉŨŝƖļƖƢėŝƢɆśëŝŝėƎɆƢŨɆļƢƖɆƋƎŨƋėƎƢǈȚɆƋŒëŝƢɆëŝĐɆėƍƪļƋśėŝƢɆȩƖėėɆ note 15). Leases of vehicles and IT equipment are generally limited to a new lease term of 3 to 5 years. Leases of property generally have a lease term ranging from 5 years to 10 years, with some legacy leases extending out to 20 years and beyond. Most new leases of property are now generally expected to be limited to no more than 10 years, with a break option after no more than 5 years, except in special circumstances. The maturity analysis of lease liabilities at 31 December 2021 is as follows: Minimum lease payments due ÕļƢķļŝɆ 1 year £m 1-2 years £m 2-5 years £m > 5 years £m Total £m 2021 Net present value 78.2 52.4 103.6 59.5 293.7 2020 Net present value 89.8 67.6 108.5 72.1 338.0 The Group secures the use of its retail premises primarily through taking out leases for these premises. Typically, the leases are for a duration between 5 and 10 years. In respect of the UK property portfolio there is commonly a right to negotiate replacement leases on expiry, by virtue of the Landlord and Tenant Act 1954. Details of undiscounted amounts payable under leases are set out in note 25. Certain lease payments are not recognised as a liability. This arises when the Group continues to pay rents and occupy properties after the lease has expired. Payments made under such leases are expensed on a straight-line basis. In addition, certain variable lease payments and irrecoverable VAT are not permitted to be recognised as lease liabilities and are expensed as incurred. ¶ķėɆƪƖėɆŨįɆėǇƢėŝƖļŨŝɆëŝĐɆƢėƎśļŝëƢļŨŝɆŨƋƢļŨŝƖɆİļǁėƖɆƢķėɆEƎŨƪƋɆëĐĐėĐɆǙėǇļĈļŒļƢǈɆļŝɆƢķėɆėǁėŝƢɆļƢɆķëƖɆļĐėŝƢļǘėĐɆśŨƎėɆƖƪļƢëĈŒėɆƋƎėśļƖėƖɆļŝɆ terms of cost and/or location or determined that it is advantageous to remain in a location beyond the original lease term. An option is ŨŝŒǈɆėǇėƎĉļƖėĐɆǂķėŝɆĉŨŝƖļƖƢėŝƢɆǂļƢķɆƢķėɆEƎŨƪƋȼƖɆƎėİļŨŝëŒɆśëƎŏėƢƖɆƖƢƎëƢėİǈɆëŝĐɆƢķėɆėĉŨŝŨśļĉɆĈėŝėǘƢƖɆŨįɆėǇėƎĉļƖļŝİɆƢķėɆŨƋƢļŨŝɆėǇĉėėĐƖɆƢķėɆ expected overall cost. 181 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 22 Lease liabilities (continued) Amounts paid for short term and low value leases not included within the lease liability are immaterial. The Group incurs no expense in relation to variable lease payments (2020: £nil). $ėƢëļŒƖɆŨįɆƢŨƢëŒɆĉëƖķɆŨƪƢǙŨǂɆƎėŒëƢļŝİɆƢŨɆŒėëƖėƖȚɆëƎėɆĐļƖĉŒŨƖėĐɆļŝɆƢķėɆŨŝƖŨŒļĐëƢėĐɆ©ƢëƢėśėŝƢɆŨįɆëƖķɆDŒŨǂƖș Group as Lessor: DļŝëŝĉėɆŒėëƖėɆƎėĉėļǁëĈŒėƖɆëƎėɆļŝĉŒƪĐėĐɆļŝɆƢķėɆƖƢëƢėśėŝƢɆŨįɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆǂļƢķļŝɆƢƎëĐėɆëŝĐɆŨƢķėƎɆƎėĉėļǁëĈŒėƖɆëŝĐɆëƎėɆëƖɆįŨŒŒŨǂƖț 2021 £m 2020 £m Current 1.1 1.1 Non-current 3.0 3.8 The maturity analysis of lease receivables, including the undiscounted lease payments to be received are as follows: Minimum lease payments due ÕļƢķļŝɆ 1 year £m 1-2 years £m 2-5 years £m > 5 years £m Total £m 2021 Lease payments receivable 1.2 1.7 0.7 1.1 4.7 Interest (0.1) (0.2) (0.1) (0.2) (0.6) Present value of lease payments receivable 1.1 1.5 0.6 0.9 4.1 2020 Lease payments receivable 1.3 1.1 1.9 1.3 5.6 Interest (0.2) (0.1) (0.2) (0.2) (0.7) Present value of lease payments receivable 1.1 1.0 1.7 1.1 4.9 Operating lease commitments – Group as lessor ɆŝƪśĈėƎɆŨįɆƢķėɆƖƪĈŒėëƖėɆëİƎėėśėŝƢƖɆįŨƎɆƪŝƪƢļŒļƖėĐɆƖƋëĉėɆļŝɆƢķėɆ½bɆƖķŨƋɆėƖƢëƢėɆëƎėɆŝŨƢɆĉŒëƖƖļǘėĐɆëƖɆǘŝëŝĉėɆŒėëƖėƖɆǂļƢķļŝɆQD¡©ɆǤǩșɆ These non-cancellable leases have remaining lease terms of between one and nine years. The future minimum rentals receivable under these non-cancellable operating leases at 31 December are as follows: 2021 £m 2020 £m Within one year 0.5 0.6 įƢėƎɆŨŝėɆǈėëƎɆĈƪƢɆŝŨƢɆśŨƎėɆƢķëŝɆǘǁėɆǈėëƎƖ 0.7 0.8 įƢėƎɆǘǁėɆǈėëƎƖ 0.1 0.3 1.3 1.7 ǥǦɆQŝƢėƎėƖƢɆĈėëƎļŝİɆŒŨëŝƖɆëŝĐɆĈŨƎƎŨǂļŝİƖ 2021 £m 2020 £m Current Euro denominated loans 7.2 2.8 USD denominated loans 8.1 5.9 Sterling denominated loans 105.8 5.4 121.1 14.1 Non-current Euro denominated loans 945.1 1,011.0 USD denominated loans 810.7 563.6 Sterling denominated loans 405.5 511.1 2,161.3 2,085.7 As at 31 December 2021 there were £515.0m (2020: £480.0m) of committed bank facilities of which £nil (2020: £nil) were drawn down. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 182 Financial statements 24 Provisions Property provisions 1 £m Restructuring provisions 2 £m Litigation and regulation provisions 3 £m Total £m At 1 January 2020 13.0 9.1 67.4 89.5 Provided 12.3 6.7 24.0 43.0 Utilised (8.9) (12.5) (40.0) (61.4) Released (1.6) – (3.0) (4.6) Exchange adjustment – – 2.4 2.4 At 31 December 2020 14.8 3.3 50.8 68.9 Provided 8.0 3.7 32.5 44.2 Utilised (9.4) (6.2) (34.3) (49.9) Released (4.7) – (8.1) (12.8) Exchange adjustment – – (3.2) (3.2) ¡ėĉŒëƖƖļǘĉëƢļŨŝ 0.4 – 2.3 2.7 At 31 December 2021 9.1 0.8 40.0 49.9 1. The Group is party to a number of leasehold property contracts. Provision has been made against the unavoidable non-rent costs on those leases where the property is now ǁëĉëŝƢșɆƎŨǁļƖļŨŝƖɆķëǁėɆĈėėŝɆĈëƖėĐɆŨŝɆśëŝëİėśėŝƢȼƖɆĈėƖƢɆėƖƢļśëƢėɆŨįɆƢķėɆśļŝļśƪśɆįƪƢƪƎėɆĉëƖķɆǙŨǂƖɆƢŨɆƖėƢƢŒėɆƢķėɆEƎŨƪƋȼƖɆŨĈŒļİëƢļŨŝƖȚɆĉŨŝƖļĐėƎļŝİɆƢķėɆƎļƖŏƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆ each obligation, discounted at a risk-free interest rate of 1%. The periods of vacant property commitments range from 1 to 14 years (2020: 1 to 15 years). As a result of the implementation of IFRS 16 the rental elements of certain property provisions are now included within lease liabilities. 2. Restructuring provisions relate to redundancy costs provided in association with ongoing merger and acquisition activities. 3. Litigation and regulation provisions relate to estimates for potential liabilities which may arise in the Group as a result of customer claims and past practices. Whilst the nature of legal claims means that the timing of settlement can be uncertain, we expect all claims to be settled in the next 1 to 2 years. Whilst the provisions are based on management’s best estimate of the likely liability for obligations that exist at the year end date, the maximum potential exposure is not expected to be materially different to the provision made. Of the total provisions at 31 December 2021, £43.5m (2020: £49.4m) is current and £6.4m (2020: £19.5m) is non-current. Provisions expected to be settled in greater than 1 year are discounted at the risk free rate. ǥǨɆDļŝëŝĉļëŒɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖ ¶ķėɆEƎŨƪƋȼƖɆƢƎėëƖƪƎǈɆįƪŝĉƢļŨŝɆƋƎŨǁļĐėƖɆëɆĉėŝƢƎëŒļƖėĐɆƖėƎǁļĉėɆįŨƎɆƢķėɆƋƎŨǁļƖļŨŝɆŨįɆǘŝëŝĉėɆëŝĐɆƢķėɆśëŝëİėśėŝƢɆëŝĐɆĉŨŝƢƎŨŒɆŨįɆŒļƍƪļĐļƢǈȚɆ foreign exchange rates and interest rates. The function operates as a cost centre and manages the Group’s treasury exposures to reduce risk in accordance with policies approved by the Board. ¶ķėɆEƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆĉŨśƋƎļƖėɆĈëŝŏɆŒŨëŝƖȚɆŨǁėƎĐƎëįƢƖȚɆŒŨëŝɆŝŨƢėƖȚɆĈŨŝĐƖȚɆǘŝëŝĉļëŒɆİƪëƎëŝƢėėɆĉŨŝƢƎëĉƢƖȚɆëŝĐɆĉëƖķɆ ëŝĐɆƖķŨƎƢȯƢėƎśɆĐėƋŨƖļƢƖȚɆƢŨİėƢķėƎɆǂļƢķɆĉėƎƢëļŝɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖșɆ¶ķėɆśëļŝɆƋƪƎƋŨƖėɆŨįɆƢķėƖėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆļƖɆƢŨɆ ƎëļƖėɆǘŝëŝĉėɆįŨƎɆƢķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŨŝƖșɆ¶ķėɆEƎŨƪƋɆķëƖɆǁëƎļŨƪƖɆŨƢķėƎɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆƖƪĉķɆëƖɆƢƎëĐėɆƎėĉėļǁëĈŒėƖȚɆƢƎëĐėɆƋëǈëĈŒėƖɆëŝĐɆ accruals that arise directly from its operations. Details of derivatives are set out in note 26. QƢɆļƖȚɆëŝĐɆķëƖɆĈėėŝɆƢķƎŨƪİķŨƪƢɆƢķėɆǈėëƎɆƪŝĐėƎɆƎėǁļėǂȚɆƢķėɆEƎŨƪƋȼƖɆƋŨŒļĉǈɆƢķëƢɆŝŨɆƢƎëĐļŝİɆļŝɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆƖķëŒŒɆĈėɆƪŝĐėƎƢëŏėŝɆŨƢķėƎɆ than betting and gaming transactions and for the purposes of currency trading as part of the discontinued Intertrader business (note 21). Activity of this nature is only undertaken by the customer and is not speculative activity of the Group. The Group’s exposure to ante-post ĈėƢƢļŝİɆëŝĐɆİëśļŝİɆƢƎëŝƖëĉƢļŨŝƖɆļƖɆŝŨƢɆƖļİŝļǘĉëŝƢș ¶ķėɆśëļŝɆǘŝëŝĉļëŒɆƎļƖŏƖɆįŨƎɆƢķėɆEƎŨƪƋɆëƎėɆėǇĉķëŝİėɆƎëƢėɆƎļƖŏȚɆļŝƢėƎėƖƢɆƎëƢėɆƎļƖŏȚɆĉƎėĐļƢɆƎļƖŏɆëŝĐɆŒļƍƪļĐļƢǈɆƎļƖŏșɆ¶ķėɆŨëƎĐɆƎėǁļėǂƖɆëŝĐɆëİƎėėƖɆ policies for managing each of these risks and they are summarised below. The Group also monitors the market price risk arising from all ǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖș Interest rate risk The Group is exposed to interest rate risk on certain of its interest-bearing loans and borrowings and on cash and cash equivalents. ¶ķėɆEƎŨƪƋȼƖɆƋŨŒļĉǈɆįŨƎɆƢķėɆǈėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆǂëƖɆƢŨɆśëļŝƢëļŝɆëɆśļŝļśƪśɆŨįɆǥǣșǣɼɆȩǥǣǥǣțɆǥǣșǣɼȪɆŨįɆƢŨƢëŒɆĈŨƎƎŨǂļŝİƖɆëƢɆǘǇėĐɆ interest rates to reduce its sensitivity to movements in variable short-term interest rates. The Group anticipates revisiting this policy upon ƢķėɆśëƢƪƎļƢǈɆŨįɆļƢƖɆǘǇėĐɆƢėƎśɆĈŨŝĐƖɆĐƪƎļŝİɆǥǣǥǥșɆƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆɞǨǣǣșǣśɆȩǥǣǥǣțɆɞǨǣǣșǣśȪɆŨƎɆǥǥșǣɼɆȩǥǣǥǣțɆǥǧșǣɼȪɆŨįɆƢķėɆEƎŨƪƋȼƖɆ ĈŨƎƎŨǂļŝİƖɆǂėƎėɆëƢɆǘǇėĐɆƎëƢėƖɆėǇĉŒƪĐļŝİɆƢķŨƖėɆƎėŒëƢļŝİɆƢŨɆŒėëƖėƖș QŝƢėƎėƖƢɆŨŝɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëƢɆǙŨëƢļŝİɆƎëƢėƖɆļƖɆƎėƋƎļĉėĐɆëƢɆļŝƢėƎǁëŒƖɆŨįɆŒėƖƖɆƢķëŝɆƖļǇɆśŨŝƢķƖșɆQŝƢėƎėƖƢɆŨŝɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëƢɆǘǇėĐɆ ƎëƢėƖɆļƖɆǘǇėĐɆƪŝƢļŒɆƢķėɆśëƢƪƎļƢǈɆŨįɆƢķėɆļŝƖƢƎƪśėŝƢș 183 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǥǨɆDļŝëŝĉļëŒɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖɆ(continued) The table below demonstrates the sensitivity to reasonably possible changes in interest rates on income for the year when this movement ļƖɆëƋƋŒļėĐɆƢŨɆƢķėɆĉëƎƎǈļŝİɆǁëŒƪėɆŨįɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖț Effect on: ƎŨǘƢɆĈėįŨƎėɆƢëǇ 2021 2020 25 basis points increase 3.8 4.2 Foreign currency risk Given the multi-national nature of the business, the Group is exposed to foreign exchange gains and losses on its trading activities, ƢķėɆŝėƢɆëƖƖėƢƖɆŨįɆļƢƖɆŨǁėƎƖėëƖɆƖƪĈƖļĐļëƎļėƖɆëŝĐɆļƢƖɆŝŨŝȯEɆĐėŝŨśļŝëƢėĐɆǘŝëŝĉļŝİɆįëĉļŒļƢļėƖșɆ¶ķėɆƋƎļśëƎǈɆĉƪƎƎėŝĉļėƖɆƢķëƢɆƢķėɆEƎŨƪƋɆļƖɆ ėǇƋŨƖėĐɆƢŨɆǙƪĉƢƪëƢļŨŝƖɆļŝɆëƎėɆƢķėɆ,ƪƎŨȚɆƪƖƢƎëŒļëŝɆ$ŨŒŒëƎɆëŝĐɆ½©Ɇ$ŨŒŒëƎșɆ ÕķļŒƖƢɆƢķėɆEƎŨƪƋɆĐŨėƖɆŝŨƢɆëĉƢļǁėŒǈɆķėĐİėɆƢķėɆįŨƎėļİŝɆėǇƋŨƖƪƎėɆŨŝɆļƢƖɆƢƎëĐļŝİɆĉëƖķǙŨǂƖȚɆļƢɆĉŨŝƢļŝƪŨƪƖŒǈɆśŨŝļƢŨƎƖɆėǇƋŨƖƪƎėƖɆƢŨɆļŝĐļǁļĐƪëŒɆ ĉƪƎƎėŝĉļėƖȚɆƢëŏļŝİɆƎėśėĐļëƢļŝİɆëĉƢļŨŝƖɆëƖɆŝėĉėƖƖëƎǈɆƢŨɆśëŝëİėɆëŝǈɆƖļİŝļǘĉëŝƢɆƎļƖŏƖɆëƖɆƢķėǈɆëƎļƖėșɆQŝɆƢķėɆėǁėŝƢɆƢķëƢɆƢķėɆEƎŨƪƋɆëŝƢļĉļƋëƢėƖɆ large transactions in currencies other than GBP, then forward exchange contracts are taken out to manage the potential foreign exchange exposure. The Group’s exposure to the translation of net assets on foreign currency subsidiaries into its reporting currency are partially offset by the ŨƋƋŨƖļƢėɆėǇƋŨƖƪƎėɆŨŝɆƢķėɆEƎŨƪƋƖɆǘŝëŝĉļŝİɆįëĉļŒļƢļėƖɆƋƎŨǁļĐļŝİɆëɆŝëƢƪƎëŒɆėĉŨŝŨśļĉɆķėĐİėȚɆėǁėŝɆƢķŨƪİķɆƢķėɆEƎŨƪƋɆĐŨėƖɆŝŨƢɆëƋƋŒǈɆķėĐİėɆ ëĉĉŨƪŝƢļŝİșɆ¶ķėɆEƎŨƪƋȼƖɆƋŨŒļĉǈɆŨŝɆĈŨƎƎŨǂļŝİƖɆļƖɆĈƎŨëĐŒǈɆëŒļİŝėĐɆƢŨɆƢķėɆƪŝĐėƎŒǈļŝİɆĉëƖķǙŨǂƖɆŨįɆƢķėɆĈƪƖļŝėƖƖșɆ ¶ķėɆEƎŨƪƋɆķëƖɆǘŝëŝĉļŝİɆįëĉļŒļƢļėƖɆļŝɆEȚɆ,ƪƎŨɆëŝĐɆ½©Ɇ$ŨŒŒëƎƖșɆƖɆƢķėɆEƎŨƪƋȼƖɆŨǁėƎƖėëƖɆƖƪĈƖļĐļëƎļėƖɆŒëƎİėŒǈɆƎėƋŨƎƢɆļŝɆ,ƪƎŨƖȚɆƢķėɆEƎŨƪƋɆķëƖɆ ƢëŏėŝɆŨƪƢɆëɆƖǂëƋɆĉŨŝƢƎëĉƢɆƢŨɆķėĐİėɆƢķėɆ½©ɆĐŨŒŒëƎɆĐėĈƢɆļŝƢŨɆ,ƪƎŨƖɆļŝɆŨƎĐėƎɆƢŨɆëŒļİŝɆƢķėɆįŨƎėļİŝɆĉƪƎƎėŝĉǈɆėǇƋŨƖƪƎėɆŨŝɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļŝİɆ facilities with that on the net assets of its subsidiaries. ɆǨɼɆǂėëŏėŝļŝİɆļŝɆƢķėɆ,ƪƎŨɆǂŨƪŒĐɆƎėĐƪĉėɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆĈǈɆɞǥǬșǨśɆȩǥǣǥǣțɆɞǥǥșǣśȪɆëŝĐɆŝėƢɆëƖƖėƢƖɆĈǈɆɞǦșǤśɆȩǥǣǥǣțɆɞǪșǩśȪɆǂķėŝɆ applied to the results of year in question. ɆǨɼɆǂėëŏėŝļŝİɆļŝɆƢķėɆƪƖƢƎëŒļëŝɆ$ŨŒŒëƎɆǂŨƪŒĐɆƎėĐƪĉėɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆĈǈɆɞǨșǩśɆȩǥǣǥǣțɆɞǦșǬśȪɆëŝĐɆŝėƢɆëƖƖėƢƖɆĈǈɆɞǥǪșǬśɆ (2020: £22.7m) when applied to the results of year in question. Credit risk ¶ķėɆEƎŨƪƋɆļƖɆŝŨƢɆƖƪĈŌėĉƢɆƢŨɆƖļİŝļǘĉëŝƢɆĉŨŝĉėŝƢƎëƢļŨŝɆŨįɆĉƎėĐļƢɆƎļƖŏȚɆǂļƢķɆėǇƋŨƖƪƎėɆƖƋƎėëĐɆëĉƎŨƖƖɆëɆŒëƎİėɆŝƪśĈėƎɆŨįɆĉŨƪŝƢėƎƋëƎƢļėƖɆ and customers. Receivable balances are monitored on an ongoing basis. Any changes to credit terms are assessed and authorised by senior management on an individual basis. ÕļƢķɆƎėƖƋėĉƢɆƢŨɆĉƎėĐļƢɆƎļƖŏɆëƎļƖļŝİɆįƎŨśɆƢķėɆŨƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖɆŨįɆƢķėɆEƎŨƪƋȚɆǂķļĉķɆĉŨśƋƎļƖėɆĉëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆƢķėɆEƎŨƪƋȼƖɆ exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these ļŝƖƢƎƪśėŝƢƖșɆƎėĐļƢɆƎļƖŏɆļŝɆƎėƖƋėĉƢɆŨįɆĉëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆļƖɆśëŝëİėĐɆĈǈɆƎėƖƢƎļĉƢļŝİɆƢķŨƖėɆƢƎëŝƖëĉƢļŨŝƖɆƢŨɆĈëŝŏƖɆƢķëƢɆķëǁėɆëɆĐėǘŝėĐɆ minimum credit rating and by setting an exposure ceiling per bank. Liquidity risk ¶ķėɆEƎŨƪƋȼƖɆŨĈŌėĉƢļǁėɆļƖɆƢŨɆśëļŝƢëļŝɆëɆĈëŒëŝĉėɆĈėƢǂėėŝɆĉŨŝƢļŝƪļƢǈɆŨįɆįƪŝĐļŝİɆëŝĐɆǙėǇļĈļŒļƢǈɆƢķƎŨƪİķɆƢķėɆƪƖėɆŨįɆĈŨƎƎŨǂļŝİƖɆǂļƢķɆëɆƎëŝİėɆŨįɆ śëƢƪƎļƢļėƖșɆ¶ķėɆEƎŨƪƋȼƖɆƋŨŒļĉǈɆŨŝɆŒļƍƪļĐļƢǈɆļƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆƢķėƎėɆëƎėɆƖƪįǘĉļėŝƢɆśėĐļƪśȯƢėƎśɆëŝĐɆŒŨŝİȯƢėƎśɆĉŨśśļƢƢėĐɆĈŨƎƎŨǂļŝİɆįëĉļŒļƢļėƖɆ to meet the medium-term funding requirements. At 31 December 2021, there were undrawn committed borrowing facilities of £515.0m (2020: £480.0m). Total committed facilities had an average maturity of 3.2 years (2020: 3.0 years). ¶ķėɆƢŨƢëŒɆİƎŨƖƖɆĉŨŝƢƎëĉƢƪëŒɆƪŝĐļƖĉŨƪŝƢėĐɆĉëƖķɆǙŨǂƖɆŨįɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖȚɆļŝĉŒƪĐļŝİɆļŝƢėƎėƖƢɆƋëǈśėŝƢƖȚɆįëŒŒɆĐƪėɆëƖɆįŨŒŒŨǂƖșɆëƖķɆǙŨǂƖɆļŝɆ ƎėƖƋėĉƢɆŨįɆǘŝëŝĉļëŒɆİƪëƎëŝƢėėɆĉŨŝƢƎëĉƢƖɆƎėǙėĉƢɆƢķėɆƋƎŨĈëĈļŒļƢǈɆǂėļİķƢėĐɆĉëƖķɆǙŨǂƖș 2021 On demand ŨƎɆǂļƢķļŝɆ 1 year £m 1-2 years £m 2-5 years £m > 5 years £m Total £m Interest bearing loans and borrowings 199.5 1,471.9 73.9 794.1 2,539.4 {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 37.9 0.4 90.6 1.4 130.3 Trade and other payables 487.7 – – – 487.7 Lease liabilities 87.8 59.7 115.9 67.1 330.5 Total 812.9 1,532.0 280.4 862.6 3,487.9 pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 184 Financial statements ǥǨɆDļŝëŝĉļëŒɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖɆ(continued) 2020 On demand or within 1 year £m 1-2 years £m 2-5 years £m > 5 years £m Total £m Interest bearing loans and borrowings 74.6 643.4 1,575.0 – 2,293.0 {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 13.7 177.4 0.6 1.0 192.7 Trade and other payables 457.7–––457.7 Lease liabilities 99.5 79.6 124.6 81.2 384.9 Total 645.5 900.4 1,700.2 82.2 3,328.3 $ėƢëļŒƖɆŨįɆĐļƖĉŨƪŝƢėĐɆĉŨŝƢƎëĉƢƪëŒɆĉëƖķɆǙŨǂƖɆŨįɆŒėëƖļŝİɆŒļëĈļŒļƢļėƖɆëƎėɆƖėƢɆŨƪƢɆļŝɆŝŨƢėɆǥǥș Capital risk management The primary objective of the Group’s capital management is to ensure that it maintains a credit quality that enables the Group to raise funds at an economic interest rate and to maintain healthy capital ratios in order to support its business and maximise shareholder value. The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, adjust borrowings, return capital to shareholders or issue new shares. The Group monitors capital using a net debt to EBITDA ratio (before separately disclosed items). The ratio at 31 December 2021 was 2.4 times (2020: 2.1 times). See note 27 for further details. The Group’s funding policy is to raise funds centrally to meet the Group’s anticipated requirements. These are planned so as to mature at ĐļįįėƎėŝƢɆƖƢëİėƖɆļŝɆŨƎĐėƎɆƢŨɆƎėĐƪĉėɆƎėǘŝëŝĉļŝİɆƎļƖŏșɆ¶ķėɆŨëƎĐɆƎėǁļėǂƖɆƢķėɆEƎŨƪƋȼƖɆĉëƋļƢëŒɆƖƢƎƪĉƢƪƎėɆëŝĐɆŒļƍƪļĐļƢǈɆƋėƎļŨĐļĉëŒŒǈș ǥǩɆDļŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëŝĐɆįëļƎɆǁëŒƪėɆĐļƖĉŒŨƖƪƎėƖ ¶ķėɆƢëĈŒėɆĈėŒŨǂɆëŝëŒǈƖėƖɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆļŝƢŨɆƢķėļƎɆƎėŒėǁëŝƢɆĉëƢėİŨƎļėƖț 31 December 2021 Amortised cost £m ƖƖėƢƖȦɆ (liabilities) ëƢɆįëļƎɆǁëŒƪėɆ ƢķƎŨƪİķɆ ƋƎŨǘƢɆëŝĐɆŒŨƖƖ £m Assets at įëļƎɆǁëŒƪėɆ ƢķƎŨƪİķɆŨƢķėƎɆ ĉŨśƋƎėķėŝƖļǁėɆ income £m Total £m Assets Non-current: Other investments 2.0 3.3 8.9 14.2 {ƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖ 0.3 – – 0.3 Current: Trade and other receivables 484.1 – – 484.1 $ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ – 57.4 – 57.4 Cash and short-term investments (including customer funds) 487.1 – – 487.1 Total 973.5 60.7 8.9 1,043.1 Liabilities Current: Customer balances (205.9) – – (205.9) Interest bearing loans and borrowings (121.1) – – (121.1) Trade and other payables (487.7) – – (487.7) {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 1 – (36.1) – (36.1) Lease liabilities (note 22) (78.2) – – (78.2) Non-current: Interest bearing loans and borrowings (2,161.3) – – (2,161.3) {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 1 (2.6) (50.0) – (52.6) Lease liabilities (note 22) (215.5) – – (215.5) Total (3,272.3) (86.1) – (3,358.4) pėƢɆǘŝëŝĉļëŒɆȩŒļëĈļŒļƢļėƖȪȦëƖƖėƢƖ (2,298.8) (25.4) 8.9 (2,315.3) 185 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǥǩɆDļŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëŝĐɆįëļƎɆǁëŒƪėɆĐļƖĉŒŨƖƪƎėƖɆ(continued) 31 December 2020 Amortised cost £m Assets/ (liabilities) at fair value through ƋƎŨǘƢɆëŝĐɆŒŨƖƖ £m Assets at fair value through other comprehensive income £m Total £m Assets Non-current: Other investments 2.1 2.9 5.1 10.1 {ƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖ 4.4 – – 4.4 Current: Trade and other receivables 268.2 – – 268.2 Cash and short-term investments (including customer funds) 706.7 – – 706.7 Total 981.4 2.9 5.1 989.4 Liabilities Current: Customer balances (241.1) – – (241.1) Interest bearing loans and borrowings (14.1) – – (14.1) Trade and other payables (457.7) – – (457.7) $ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ – (26.1) (26.1) {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 1 – (147.5) – (147.5) Lease liabilities (note 22) (89.8) – – (89.8) Non-current: Interest bearing loans and borrowings (2,085.7) – – (2,085.7) {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ (2.2) (7.1) – (9.3) Lease liabilities (note 22) (248.2) – – (248.2) Total (3,138.8) (180.7) – (3,319.5) pėƢɆǘŝëŝĉļëŒɆȩŒļëĈļŒļƢļėƖȪȦëƖƖėƢƖ (2,157.4) (177.8) 5.1 (2,330.1) ǤșɆ {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆļŝĉŒƪĐėɆɞǪǣșǫśɆĐėįėƎƎėĐɆëŝĐɆĉŨŝƢļŝİėŝƢɆĉŨŝƖļĐėƎëƢļŨŝɆȩǥǣǥǣțɆɞǤǧǥșǤśȪȚɆɞǥșǩśɆŨįɆǘŝëŝĉļëŒɆİƪëƎëŝƢėėƖɆȩǥǣǥǣțɆɞǥșǥśȪɆëŝĐɆɞǤǨșǦśɆŨįɆëŝƢėȯƋŨƖƢɆŒļëĈļŒļƢļėƖɆ (2020: £12.5m). Fair value hierarchy QD¡©ɆǤǦɆƎėƍƪļƎėƖɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆƎėĉŨƎĐėĐɆëƢɆįëļƎɆǁëŒƪėɆƢŨɆĈėɆĉëƢėİŨƎļƖėĐɆļŝɆƢķƎėėɆŒėǁėŒƖɆëĉĉŨƎĐļŝİɆƢŨɆƢķėɆļŝƋƪƢƖɆƪƖėĐɆļŝɆƢķėɆ calculation of their fair value: – Level 1 – uses quoted prices as the input to fair value calculations – Level 2 – uses inputs other than quoted prices, that are observable either directly or indirectly – Level 3 – uses inputs that are not observable ¶ķėɆįŨŒŒŨǂļŝİɆƢëĈŒėƖɆļŒŒƪƖƢƎëƢėɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆëįƢėƎɆļŝļƢļëŒɆƎėĉŨİŝļƢļŨŝɆëƢɆǦǤɆ$ėĉėśĈėƎɆ 2021 and 31 December 2020: 2021 Level 1 £m Level 2 £m Level 3 £m Total £m ƖƖėƢƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪė $ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ – 57.4 – 57.4 Other investments – 2.2 10.0 12.2 – 59.6 10.0 69.6 dļëĈļŒļƢļėƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆ {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆ – – (86.1) (86.1) pėƢɆëƖƖėƢƖȦȩŒļëĈļŒļƢļėƖȪɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪė – 59.6 (76.1) (16.5) pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 186 Financial statements ǥǩɆDļŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëŝĐɆįëļƎɆǁëŒƪėɆĐļƖĉŒŨƖƪƎėƖɆ(continued) 2020 Level 1 £m Level 2 £m Level 3 £m Total £m Assets measured at fair value Other investments – 2.9 5.1 8.0 Liabilities measured at fair value $ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ – (26.1) – (26.1) {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆ – – (154.6) (154.6) Net liabilities measured at fair value – (23.2) (149.5) (172.7) There have been no transfers of assets or liabilities recorded at fair value between the levels of the fair value hierarchy. QŝĉŒƪĐėĐɆǂļƢķļŝɆŨƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëŝĐɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆëƎėȜɆƢķėɆEƎŨƪƋɂƖɆĉƪƎƎėŝĉǈɆƖǂëƋƖɆķėŒĐɆ against debt instruments as an asset of £57.4m (2020: liability of £26.1m), investments in Hui 10 and R&S Technology, designated as fair value through other comprehensive income, of £5.1m (2020: £5.1m) and £3.8m (2020: £nil) respectively, an investment in Scout Gaming of £1.1m (2020: £nil) and a convertible equity instrument with Visa Inc. for £2.2m (2020: £2.9m), both designated as fair value ƢķƎŨƪİķɆƋƎŨǘƢɆëŝĐɆŒŨƖƖșɆ¶ķėɆįëļƎɆǁëŒƪėɆŨįɆƢķėɆļŝǁėƖƢśėŝƢƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëŝĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǣɆëƎėɆŝŨƢɆśëƢėƎļëŒŒǈɆĐļįįėƎėŝƢɆƢŨɆƢķėļƎɆ original cost. Contingent consideration Contingent consideration arises through business combinations, the fair value for which is reassessed at each reporting date using ƪƋĐëƢėĐɆļŝƋƪƢƖɆëŝĐɆëƖƖƪśƋƢļŨŝƖɆĈëƖėĐɆŨŝɆƢķėɆŒëƢėƖƢɆǘŝëŝĉļëŒɆįŨƎėĉëƖƢƖɆŨįɆėëĉķɆƎėƖƋėĉƢļǁėɆĈƪƖļŝėƖƖșɆƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆĉŨŝƢļŝİėŝƢɆ ĉŨŝƖļĐėƎëƢļŨŝɆļŝĉŒƪĐėĐɆǂļƢķļŝɆŨƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆǂëƖɆɞǪǣșǫśɆȩǥǣǥǣțɆɞǤǧǥșǤśȪɆëƎļƖļŝİɆįƎŨśɆƢķėɆķļƖƢŨƎļĉëŒɆƢƎëŝƖëĉƢļŨŝƖɆļŝǁŨŒǁļŝİɆƢķėɆ Group’s operations in Africa, earn-out arrangements in Portugal and Australia (Neds) and amounts payable to Dusk Till Dawn in respect of PartyPoker (2020: Dusk Till Dawn, Neds and Crystalbet). The valuation of the contingent consideration in relation to the Group’s įƎļĉëŝɆĈƪƖļŝėƖƖɆļƖɆƖƪĈŌėĉƢɆƢŨɆėƖƢļśëƢļŨŝɆƪŝĉėƎƢëļŝƢǈɆëƖɆƢķėɆëśŨƪŝƢɆƋëǈëĈŒėɆļƖɆĈëƖėĐɆŨŝɆįƪƢƪƎėɆƋƎŨǘƢëĈļŒļƢǈșɆÕķļŒƖƢɆƢķėɆëśŨƪŝƢɆƎėĉŨƎĐėĐɆ of £50m represents management’s best estimate of the likely payment based on internal forecasts, the maximum amount payable is capped at $309.9m. The valuation of the remaining contingent consideration is based largely on historical trading performance and therefore involves limited estimation uncertainty. Ante-post Ante-post liabilities are valued using methods and inputs that are not based upon observable market data. The principal assumptions relate to anticipated gross win margins on unsettled bets. There are no reasonably probable changes to assumptions or inputs that would ŒėëĐɆƢŨɆśëƢėƎļëŒɆĉķëŝİėƖɆļŝɆƢķėɆįëļƎɆǁëŒƪėɆĐėƢėƎśļŝėĐȚɆëŒƢķŨƪİķɆƢķėɆǘŝëŒɆǁëŒƪėɆǂļŒŒɆĈėɆĐėƢėƎśļŝėĐɆĈǈɆįƪƢƪƎėɆƖƋŨƎƢļŝİɆƎėƖƪŒƢƖșɆ 27 Net debt The components of the Group’s net debt are as follows: 2021 £m 2020 £m Current assets Cash and short-term deposits 487.1 749.8 Current liabilities Interest bearing loans and borrowings (121.1) (14.1) Non-current liabilities Interest bearing loans and borrowings (2,161.3) (2,085.7) Accounting net debt (1,795.3) (1,350.0) Cash held on behalf of customers (205.9) (396.1) DëļƎɆǁëŒƪėɆƖǂëƋƖɆķėŒĐɆëİëļŝƖƢɆĐėĈƢɆļŝƖƢƎƪśėŝƢƖɆȩĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆëƖƖėƢƖȪ 57.4 (26.1) Deposits/ short-term investments 20.3 171.2 Balances held with payment service providers 130.8 172.4 ĐŌƪƖƢėĐɆŝėƢɆĐėĈƢ (1,792.7) (1,428.6) Lease liabilities (293.7) (338.0) Net debt including lease liabilities (2,086.4) (1,766.6) Cash held on behalf of customers represents the outstanding balance due to customers in respect of their online gaming wallets. QŝĉŒƪĐėĐɆǂļƢķļŝɆƢķļƖɆĈëŒëŝĉėɆļƖɆɞŝļŒɆȩǥǣǥǣțɆɞǤǨǨșǣśȪɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒėșɆQŝĉŒƪĐėĐɆǂļƢķļŝɆĐėƋŨƖļƢƖɆļƖɆɞŝļŒɆȩǥǣǥǣțɆɞǤǧǬșǨśȪɆĉŒëƖƖļǘėĐɆ as held for sale. 187 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǥǫɆ©ķëƎėɆĉëƋļƢëŒ pƪśĈėƎɆŨįɆ €0.01 ordinary ƖķëƎėƖ Total €m Total £m Authorised: At 31 December 2020 and 31 December 2021 773,000,000 7.7 6.4 Issued and fully paid: At 1 January 2020 582,331,946 5.9 4.8 Exercise of share options 2,745,701 – – At 31 December 2020 585,077,647 5.9 4.8 Exercise of share options 1,472,572 – – At 31 December 2021 586,550,219 5.9 4.8 The Company’s share capital consists entirely of ordinary shares, accordingly all shares rank pari passu in all respects. See note 31 for further information on terms and amounts of shares reserved for issue under options. ǥǬɆpŨƢėƖɆƢŨɆƢķėɆƖƢëƢėśėŝƢɆŨįɆĉëƖķɆǙŨǂƖ ǥǬșǤɆ¡ėĉŨŝĉļŒļëƢļŨŝɆŨįɆƋƎŨǘƢȦȩŒŨƖƖȪɆƢŨɆŝėƢɆĉëƖķɆļŝǙŨǂɆįƎŨśɆŨƋėƎëƢļŝİɆëĉƢļǁļƢļėƖț 2021 £m 2020 £m ƎŨǘƢɆĈėįŨƎėɆƢëǇɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖ 393.2 174.7 pėƢɆǘŝëŝĉėɆȩļŝĉŨśėȪȦėǇƋėŝƖė (37.4) 184.2 ƎŨǘƢɆĈėįŨƎėɆƢëǇɆëŝĐɆŝėƢɆǘŝëŝĉėɆėǇƋėŝƖėɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖ 355.8 358.9 dŨƖƖɆĈėįŨƎėɆƢëǇɆëŝĐɆŝėƢɆǘŝëŝĉėɆėǇƋėŝƖėɆįƎŨśɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖ (14.9) (35.7) ƎŨǘƢɆĈėįŨƎėɆƢëǇɆëŝĐɆŝėƢɆǘŝëŝĉėɆėǇƋėŝƖėɆļŝĉŒƪĐļŝİɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖ 340.9 323.2 Adjustments for: Impairment 3.3 34.3 dŨƖƖȦȩƋƎŨǘƢȪɆŨŝɆĐļƖƋŨƖëŒ 7.3 (6.9) Depreciation of property, plant and equipment 120.0 127.5 Amortisation of intangible assets 247.3 421.8 Share based payments charge 12.3 14.8 QŝĉƎėëƖėɆļŝɆŨƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖ – (2.3) Increase in trade and other receivables (73.7) (161.2) QŝĉƎėëƖėɆļŝɆŨƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 3.5 25.2 Increase in trade and other payables 1.9 33.4 Decrease in provisions (18.5) (22.7) Share of results from joint venture and associate 162.5 60.2 Other non-cash items (3.0) 17.5 Cash generated by operations 803.8 864.8 ǥǬșǥɆëƖķɆǙŨǂƖɆëƎļƖļŝİɆįƎŨśɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖț 2021 £m 2020 £m Cash (used in)/generated from operating activities (5.3) 20.8 Cash (used in)/ generated by investing activitiesȂ (27.5) 0.1 ëƖķɆİėŝėƎëƢėĐɆįƎŨśɆǘŝëŝĉļŝİɆëĉƢļǁļƢļėƖ – – pėƢɆĉëƖķɆȩŨƪƢǙŨǂȪȦļŝǙŨǂɆëƎļƖļŝİɆįƎŨśɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖ (32.8) 20.9 1. Included within cash used in investment activities is £23.3m of cash disposed with business. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 188 Financial statements ǥǬɆpŨƢėƖɆƢŨɆƢķėɆƖƢëƢėśėŝƢɆŨįɆĉëƖķɆǙŨǂƖɆ(continued) ǥǬșǦɆ¡ėĉŨŝĉļŒļëƢļŨŝɆŨįɆśŨǁėśėŝƢƖɆŨįɆŒļëĈļŒļƢļėƖɆƢŨɆĉëƖķɆǙŨǂƖɆëƎļƖļŝİɆįƎŨśɆǘŝëŝĉļŝİɆëĉƢļǁļƢļėƖț 2021 £m 2020 £m {ƢķėƎɆ loans and ĈŨƎƎŨǂļŝİƖ Lease liabilities Total Other loans and borrowings Lease liabilities Total Balance at 1 January 2,099.8 338.0 2,437.8 2,116.0 363.5 2,479.5 ķëŝİėƖɆįƎŨśɆǘŝëŝĉļŝİɆĉëƖķǙŨǂƖ Proceeds from borrowings, net of issue costs 797.2 – 797.2 ––– Repayment of borrowings (566.1) – (566.1) (43.5) – (43.5) Repayment of lease liabilities 1 – (88.1) (88.1) – (86.2) (86.2) ¶ŨƢëŒɆĉķëŝİėƖɆįƎŨśɆǘŝëŝĉļŝİɆĉëƖķǙŨǂƖɆ 231.1 (88.1) 143.0 (43.5) (86.2) (129.7) {ƢķėƎɆĉķëŝİėƖ Interest expense 63.3 14.0 77.3 64.2 16.7 80.9 Interest paid 2 (61.4) (14.0) (75.4) (81.1) (16.7) (97.8) New lease liabilities – 52.0 52.0 – 70.9 70.9 Finance fees 5.8 – 5.8 1.3 – 1.3 Remeasurement adjustments – (5.5) (5.5) – (13.4) (13.4) ¶ŨƢëŒɆŨƢķėƎɆĉķëŝİėƖ 7.7 46.5 54.2 (15.6) 57.5 41.9 Arising through business combinations – 0.9 0.9 ––– The effect of changes in foreign exchange (56.2) (3.6) (59.8) 42.9 3.2 46.1 Balance at 31 December 2,282.4 293.7 2,576.1 2,099.8 338.0 2,437.8 ǤșɆ QŝɆëĐĐļƢļŨŝɆƢŨɆƢķėɆëĈŨǁėȚɆƢķėɆEƎŨƪƋɆƎėĉėļǁėĐɆɞǣșǥśɆȩǥǣǥǣțɆɞǣșǦśȪɆļŝɆƎėƖƋėĉƢɆŨįɆŒėëƖėɆƎėĉėļǁëĈŒėƖɆƎėƖƪŒƢļŝİɆļŝɆëɆŝėƢɆƎėƋëǈśėŝƢɆŨįɆǘŝëŝĉėɆŒėëƖėƖɆŨįɆɞǫǪșǬśɆȩǥǣǥǣțɆɞǫǨșǬśȪș ǥșɆ QŝɆëĐĐļƢļŨŝɆƢŨɆƢķėɆëĈŨǁėȚɆƢķėɆEƎŨƪƋɆƎėĉėļǁėĐɆɞǥșǤśɆȩǥǣǥǣțɆɞǥșǦśȪɆŨįɆļŝƢėƎėƖƢɆļŝĉŨśėɆƎėƖƪŒƢļŝİɆļŝɆëɆŝėƢɆǘŝëŝĉėɆėǇƋėŝƖėɆƋëļĐɆŨįɆɞǪǦșǦśɆȩǥǣǥǣțɆɞǬǨșǦśȪș Non cash movements include amounts acquired as a result of business combinations and the amortisation of issue costs incurred in respect of debt instruments. ǦǣɆ¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆƖĉķėśėƖɆ $ėǘŝėĐɆĉŨŝƢƎļĈƪƢļŨŝɆƖĉķėśėƖ During the year the Group charged contributions of £16.0m (2020: £13.4m) to the consolidated income statement in relation to the ĐėǘŝėĐɆĉŨŝƢƎļĈƪƢļŨŝɆƋėŝƖļŨŝɆƖĉķėśėƖș $ėǘŝėĐɆĈėŝėǘƢɆƋŒëŝƖ Judgement is applied, based on legal, actuarial, and accounting guidance in IFRIC 14, regarding the amounts of net pension asset that is recognised in the consolidated balance sheet. ¶ķėɆEƎŨƪƋɆķëƖɆƢǂŨɆĐėǘŝėĐɆĈėŝėǘƢɆƋŒëŝƖȚɆƢķėɆdëĐĈƎŨŏėƖɆėŝƖļŨŝɆŒëŝȚɆǂķļĉķɆļƖɆŝŨǂɆļŝɆëɆĈƪǈȯŨƪƢɆƋŨƖļƢļŨŝȚɆëŝĐɆƢķėɆEëŒëɆŨƎëŒɆėŝƖļŨŝɆ ŒëŝɆǂķļĉķɆļƖɆëɆǘŝëŒɆƖëŒëƎǈɆƋėŝƖļŨŝɆƋŒëŝɆįŨƎɆ½bɆėśƋŒŨǈėėƖɆëŝĐɆĉŒŨƖėĐɆƢŨɆŝėǂɆėśƋŒŨǈėėƖɆëŝĐɆįƪƢƪƎėɆëĉĉƎƪëŒș At retirement each member’s pension is related to their “career average earning” for the Gala Coral Pension Plan. The weighted average ĐƪƎëƢļŨŝɆŨįɆƢķėɆėǇƋėĉƢėĐɆĈėŝėǘƢɆƋëǈśėŝƢƖɆįƎŨśɆƢķėɆŒëŝɆļƖɆëƎŨƪŝĐɆǤǫɆǈėëƎƖɆȩǥǣǥǣțɆǤǬɆǈėëƎƖȪɆįŨƎɆƢķėɆEëŒëɆŨƎëŒɆėŝƖļŨŝɆŒëŝș The Plans’ assets are held separately from those of the Group. The Plans are approved by HMRC for tax purposes, and are managed by independent Trustees. The Plans are subject to UK regulations, which require the Group and Trustees to agree a funding strategy and contribution schedule at least every three years. Under the current contribution schedule in place, the Group does not pay contributions to Gala Coral Pension Plan but are paying the administrative costs. As the Ladbrokes Pension Plan is in a buy-out position the Group has no future funding obligations or ongoing administrative costs. There is a risk to the Group that adverse circumstances, such as a disconnect between changes in asset investment values and required įƪŝĐļŝİɆŨĈŒļİëƢļŨŝƖȚɆĉŨƪŒĐɆŒėëĐɆƢŨɆëɆƎėƍƪļƎėśėŝƢɆįŨƎɆƢķėɆEƎŨƪƋɆƢŨɆśëŏėɆëĐĐļƢļŨŝëŒɆĉŨŝƢƎļĈƪƢļŨŝƖɆƢŨɆįƪŝĐɆëŝǈɆĐėǘĉļƢɆƢķëƢɆëƎļƖėƖșɆƖɆëƢɆƢķėɆ ĐëƢėɆŨįɆƖļİŝļŝİɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŝŨɆƖƪĉķɆėǁėŝƢɆķëƖɆëƎļƖėŝș The results of the latest formal actuarial valuation 30 June 2019 for the Gala Coral Pension Plan was updated to 31 December 2021 by ëŝɆļŝĐėƋėŝĐėŝƢɆƍƪëŒļǘėĐɆëĉƢƪëƎǈɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQ©ɆǤǬɆȩ¡ėǁļƖėĐȪɆ,śƋŒŨǈėėɆėŝėǘƢƖșɆ¶ķėɆǁëŒƪėɆŨįɆƢķėɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆëŝĐɆ current service cost have been measured using the projected unit credit method, as required by IAS 19 (Revised). Actuarial gains and losses are recognised immediately through other comprehensive income. $ƪƎļŝİɆƢķėɆǈėëƎȚɆƢķėɆEƎŨƪƋɆǘŝëŒļƖėĐɆƢķėɆĈƪǈȯŨƪƢɆŨįɆƢķėɆdëĐĈƎŨŏėƖɆƋėŝƖļŨŝɆƖĉķėśėɆǂļƢķɆƢķėɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆŨįɆƢķėɆƖĉķėśėɆƋëƖƖėĐɆƢŨɆ a third party. As the Group has extinguished its obligations to the IAS 19 liabilities, only the residual assets remaining in the scheme are now recorded. 189 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǦǣɆ¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆƖĉķėśėƖɆ(continued) The amounts recognised in the balance sheet are as follows: 2021 (Coral) £m 2021 (Ladbrokes) £m 2021 Total £m 2020 (Coral) £m 2020 (Ladbrokes) £m 2020 Total £m Present value of funded obligations (430.5) – (430.5) (450.1) (385.1) (835.2) Fair value of plan assets 518.6 7.0 525.6 506.9 392.5 899.4 Net asset 88.1 7.0 95.1 56.8 7.4 64.2 Disclosed in the balance sheet as: Retirement ĈėŝėǘƢɆëƖƖėƢ 88.1 7.0 95.1 56.8 7.4 64.2 The Group has considered the appropriate accounting treatment in respect of the pension plan surplus, considering the current agreement with the Trustees, and concluded the recognition of the surplus is appropriate. Whilst the trustees have discretionary rights over the use of any surplus, the nature of the obligations in the plans that any surplus that exists once all liabilities have been settled are expected to ĈėɆįŨƎɆƢķėɆĈėŝėǘƢɆŨįɆƢķėɆEƎŨƪƋș The amounts recognised in the income statement are as follows: 2021 (Coral) £m 2021 (Ladbrokes) £m 2021 Total £m 2020 (Coral) £m 2020 (Ladbrokes) £m 2020 Total £m Analysis of amounts charged to the Income Statement Separately disclosed items – 0.5 0.5 – 2.4 2.4 Other administrative expenses 0.6 – 0.6 (0.1) 1.2 1.1 Net interest on net asset (0.7) (0.1) (0.8) (1.2) (0.1) (1.3) Total charge/(credit) recognised in the Income Statement (0.1) 0.4 0.3 (1.3) 3.5 2.2 The actual return on plan assets over the year was a £23.1m gain (2020: £111.0m). The amounts recognised in the statement of comprehensive income are as follows: 2021 (Coral) £m 2021 (Ladbrokes) £m 2021 Total £m 2020 (Coral) £m 2020 (Ladbrokes) £m 2020 Total £m Actual return on assets less interest on plan assets 21.4 (7.0) 14.4 54.6 40.3 94.9 ĉƢƪëƎļëŒɆİëļŝƖɆŨŝɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆĐƪėɆƢŨɆ changes in demographic assumptions –––0.2 10.4 10.6 ĉƢƪëƎļëŒɆİëļŝƖȦȩŒŨƖƖėƖȪɆŨŝɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆ ĐƪėɆƢŨɆĉķëŝİėƖɆļŝɆǘŝëŝĉļëŒɆëƖƖƪśƋƢļŨŝƖ 15.4 6.1 21.5 (63.3) (52.5) (115.8) ,ǇƋėƎļėŝĉėɆëĐŌƪƖƢśėŝƢƖɆŨŝɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝ (5.6) 0.9 (4.7) 4.1 6.0 10.1 Actuarial gains/(losses) recognised in the statement of comprehensive income 31.2 – 31.2 (4.4) 4.2 (0.2) ķëŝİėƖɆļŝɆƢķėɆƋƎėƖėŝƢɆǁëŒƪėɆŨįɆƢķėɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆëƎėɆëƖɆįŨŒŒŨǂƖț 2021 (Coral) £m 2021 (Ladbrokes) £m 2021 Total £m 2020 (Coral) £m 2020 (Ladbrokes) £m 2020 Total £m At 1 January (450.1) (385.1) (835.2) (396.0) (357.5) (753.5) Interest on obligation (5.3) (2.6) (7.9) (7.8) (7.0) (14.8) Actuarial gains due to changes in demographic assumptions –––0.2 10.4 10.6 Actuarial gains/(losses) due to changes ļŝɆǘŝëŝĉļëŒɆëƖƖƪśƋƢļŨŝƖ 15.4 6.1 21.5 (63.3) (52.5) (115.8) Experience adjustments on obligations (5.6) 0.9 (4.7) 4.1 6.0 10.1 Scheme buy-out – 368.4 368.4 ––– ėŝėǘƢƖɆƋëļĐ 15.1 12.3 27.4 12.7 15.5 28.2 At 31 December (430.5) – (430.5) (450.1) (385.1) (835.2) pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 190 Financial statements ǦǣɆ¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆƖĉķėśėƖɆ(continued) Changes in the fair value of plan assets are as follows: 2021 (Coral) £m 2021 (Ladbrokes) £m 2021 Total £m 2020 (Coral) £m 2020 (Ladbrokes) £m 2020 Total £m At 1 January 506.9 392.5 899.4 455.9 364.2 820.1 Interest on plan assets 6.0 2.7 8.7 9.0 7.1 16.1 Administrative expenses (0.6) (0.5) (1.1) 0.1 (3.6) (3.5) Actual return less interest on plan assets 21.4 (7.0) 14.4 54.6 40.3 94.9 Scheme buy-out – (368.4) (368.4) ––– ėŝėǘƢƖɆƋëļĐ (15.1) (12.3) (27.4) (12.7) (15.5) (28.2) At 31 December 518.6 7.0 525.6 506.9 392.5 899.4 The Group does not expect to contribute to either plan in 2022. The Group will however continue to meet the administrative expenses of the Gala Coral Pension Plan scheme. The major categories of plan assets as a percentage of total plan assets are as follows: 2021 (Coral) % 2021 (Ladbrokes) % 2020 (Coral) % 2020 (Ladbrokes) % ,ƍƪļƢļėƖɆëŝĐɆ$ļǁėƎƖļǘėĐɆEƎŨǂƢķɆDƪŝĐƖ 25.2 – 26.9 – Insurance policy ––– 98.1 Liability Driven Investment 69.3 – 69.5 1.2 Private credit 5.1 – 3.2 – Cash and cash equivalents 0.4 100.0 0.4 0.7 The Plan assets are held exclusively within instruments with quoted market prices in an active market with the exception of the holdings in a private credit asset and in 2020 an insurance policy. At 31 December 2021 these represented c5.1% (2020: c.42.8%) of the Plan’s total assets. ¶ķėɆŒëŝɆĐŨėƖɆŝŨƢɆļŝǁėƖƢɆĐļƎėĉƢŒǈɆļŝɆƋƎŨƋėƎƢǈɆŨĉĉƪƋļėĐɆĈǈɆƢķėɆEƎŨƪƋɆŨƎɆļŝɆǘŝëŝĉļëŒɆƖėĉƪƎļƢļėƖɆļƖƖƪėĐɆĈǈɆƢķėɆEƎŨƪƋșɆŒƢķŨƪİķȚɆëƖɆƢķėɆŒëŝɆ holds pooled investment vehicles, there may at times be indirect employer related investment. At 31 December 2021 these represented less than 0.1% (2020: 0.1%) of the Plan’s total assets. The investment strategy is set by the Trustees of the Plans in consultation with the Group. For the Gala Coral Plan the current long-term strategy is to invest in a low-risk matching bond portfolio with a relatively small investment in return seeking funds. With respect to the Ladbrokes pension plan the majority of investment was previously held within an insurance policy that guarantees the payments of future pension liabilities. The Ladbrokes Plan now holds only cash and cash equivalents. Principal actuarial assumptions at the balance sheet date (expressed as weighted averages where appropriate): 2021 (Coral) % p.a. 2021 (Ladbrokes) % p.a. 2020 (Coral) % p.a. 2020 (Ladbrokes) % p.a. Discount rate 1.8 ŝȦë 1.2 1.2 ƎļĉėɆļŝǙëƢļŨŝɆȩQȪ 2.3 ŝȦë 1.9 1.9 ƎļĉėɆļŝǙëƢļŨŝɆȩ¡QȪ 3.3 ŝȦë 2.9 2.9 Future pension increases – LPI 5% (CPI) 3.2 ŝȦë 2.9 2.9 – LPI 2.5% (CPI) 2.2 ŝȦë 2.1 2.1 Post-retirement mortality assumed for most members is based on the standard SAPS mortality table with the CMI 2018 projections ǂķļĉķɆĉŨŝƖļĐėƎƖɆįƪƢƪƎėɆļśƋƎŨǁėśėŝƢƖȚɆëĐŌƪƖƢėĐɆƢŨɆƎėǙėĉƢɆƋŒëŝɆƖƋėĉļǘĉɆėǇƋėƎļėŝĉėșɆ The assumption used implies that the expected lifetime of members for the two schemes is: 2021 (Coral) 2021 (Ladbrokes) 2020 (Coral) 2020 (Ladbrokes) Male aged 65 for year ended 86.5 86.5 86.4 86.5 Female aged 65 for year ended 88.6 88.9 88.5 88.9 191 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǦǣɆ¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆƖĉķėśėƖɆ(continued) Changes to the assumptions will impact the amounts recognised in the consolidated balance sheet and the consolidated statement of ĉŨśƋƎėķėŝƖļǁėɆļŝĉŨśėɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆŒëŝșɆDŨƎɆƢķėɆƖļİŝļǘĉëŝƢɆëƖƖƪśƋƢļŨŝƖȚɆƢķėɆįŨŒŒŨǂļŝİɆƖėŝƖļƢļǁļƢǈɆëŝëŒǈƖļƖɆƋƎŨǁļĐėƖɆëŝɆļŝĐļĉëƢļŨŝɆŨįɆ ƢķėɆļśƋëĉƢɆŨŝɆƢķėɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆįŨƎɆƢķėɆǈėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤț 2021 (Coral) % 2021 (Ladbrokes) % 2020 (Coral) % 2020 (Ladbrokes) % – 0.5% p.a. decrease in the discount rate 9.8 – 10.3 9.1 ȱɆǣșǨɼɆƋșëșɆļŝĉƎėëƖėɆļŝɆƋƎļĉėɆļŝǙëƢļŨŝ 6.9 – 7.7 4.7 – One year increase in life expectancy 4.6 – 4.5 4.1 ¶ķėƖėɆƖėŝƖļƢļǁļƢļėƖɆķëǁėɆĈėėŝɆĉëŒĉƪŒëƢėĐɆƢŨɆƖķŨǂɆƢķėɆśŨǁėśėŝƢɆļŝɆƢķėɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆļŝɆļƖŨŒëƢļŨŝȚɆëŝĐɆëƖƖƪśļŝİɆŝŨɆŨƢķėƎɆ changes in market conditions at the accounting date. This is unlikely in practice, for example, a change in discount rate is unlikely to occur without any movement in the value of the assets held by the Plan. ǦǤɆ©ķëƎėȯĈëƖėĐɆƋëǈśėŝƢƖ The following options to purchase €0.01 Ordinary Shares in the Group were granted, exercised, forfeited or existing at the year end: $ëƢėɆŨįɆİƎëŝƢ ,ǇėƎĉļƖėɆƋƎļĉė ,ǇļƖƢļŝİɆëƢɆ 1 January 2021 Granted ļŝɆƢķėɆǈėëƎ Cancelled ŨƎɆįŨƎįėļƢėĐɆ ļŝɆƢķėɆǈėëƎ ,ǇėƎĉļƖėĐɆ ļŝɆƢķėɆǈėëƎ ,ǇļƖƢļŝİɆëƢɆ 31 December 2021 ,ǇėƎĉļƖëĈŒėɆëƢɆ 31 December 2021 Vesting criteria 16 Dec 2016 422p 630,561 – – (176,423) 454,138 454,138 Note a 30 Mar 2017 422p 50,000 – – (50,000) – – Note a 28 Dec 2017 0p 335,645 – – (309,828) 25,817 25,817 Note b 19 Sep 2018 0p 1,100,321 – (224,632) (835,745) 39,944 39,944 Note c 26 Mar 2019 0p 2,375,286 – (318,566) – 2,056,720 – Note d 10 Jun 2020 0p 1,727,301 – (216,116) – 1,511,185 – Note e 24 Mar 2021 0p – 1,124,620 (2,295) – 1,122,325 – Note f 04 May 2021 1264p – 957,613 – – 957,613 – Note g Total Schemes 6,219,114 2,082,233 (761,609) (1,371,996) 6,167,742 519,899 Note a: 2016 MIP Scheme – These equity settled awards were issued on completion of the acquisition of bwin.party. The options vest and became exercisable, subject to the satisfaction of a performance condition, over 30 months, with one-ninth vesting six months after the date of grant and a further ninth vesting at each subsequent quarter. The options lapse, if not exercised, on 2 February 2026. The performance condition is comparator total shareholder return (“TSR”) of the Group against the FTSE 250. Each ninth of the shares will have its TSR condition reviewed from the date of grant until the relevant testing date. To the extent the TSR is not met at that time, it is tested again the following quarter and, if necessary, at the end of the 30-month vesting period. In order to vest, the TSR of the Group must rank at median or above against the FTSE 250. Note b: 2017 LTIP Scheme – These equity settled awards were awarded to certain Directors and employees and vest over a three-year period from the date of grant. The number of awards to vest are conditional on both cumulative Earnings Per Share (“EPS”) exceeding 180 euro cents, with a pro-rata increase in the amount vesting between 180 cents and 214 cents, and TSR performance conditions being met which are split with equal weighting. Note c: 2018 LTIP Scheme – These equity settled awards were awarded to certain Directors and employees and vest over a three-year period from the date of grant. The number of awards that vested was conditional on both cumulative 3 year Earnings Per Share (“EPS”) exceeding 191p, with a pro-rata increase in the amount vesting between 191p and 224p, and TSR performance conditions being met which are split with equal weighting. Note d: 2019 LTIP Scheme – These equity settled awards were awarded to certain Directors and employees and vest over a three-year period from the date of grant. The number of awards that vested was conditional on both cumulative 3 year Earnings Per Share (“EPS”) exceeding 184p, with a pro-rata increase in the amount vesting between 184p and 214p, and TSR performance conditions being met which are split with equal weighting. Note e: 2020 LTIP Scheme – These equity settled awards were awarded to certain Directors and employees and vest over a three-year period from the date of grant. The number of awards to vest are conditional on both cumulative 3 year Earnings Per Share (“EPS”) exceeding 267p, with a pro-rata increase in the amount vesting between 267p and 295p, and certain TSR performance conditions being met which are split with the weighting of one third based on EPS and two thirds relating to TSR conditions. There were also a number of restricted share plan shares issued during 2020 against which service conditions apply. Note f: 2021 LTIP Scheme – These equity settled awards were awarded to certain Directors and employees and vest over a three-year period from the date of grant. The number of awards to vest are conditional on both cumulative 3 year Earnings Per Share (“EPS”) exceeding 255p, with a pro-rata increase in the amount vesting between 255p and 296p, and certain TSR performance conditions being met which are split with the weighting of one third based on EPS and two thirds relating to TSR conditions. Note g: 2021 Employee Sharesave scheme – During 2021 the Group set up an Employee Sharesave scheme. Under this scheme employees of the Group are able to subscribe up to a maximum of £100 a month in share purchases at a discount of 20% for a vesting period of three years. The shares will vest conditional upon continued employment at the end of the three years. The charge to share-based payments within the consolidated income statement in respect of these options in 2021 was £12.3m (2020: £14.8m) which related entirely to equity settled options. ÕėļİķƢėĐɆëǁėƎëİėɆėǇėƎĉļƖėɆƋƎļĉėɆŨįɆŨƋƢļŨŝƖ The number and weighted average exercise prices of share options are as follows: ÕėļİķƢėĐɆ average ėǇėƎĉļƖėɆƋƎļĉėɆ 31 December 2021 Number ŨįɆŨƋƢļŨŝƖɆ 31 December 2021 Weighted average exercise price 31 December 2020 Number of options 31 December 2020 Outstanding at the beginning of the year 52p 6,219,114 154p 9,236,748 Granted during the year 570p 2,082,233 0p 2,045,307 Exercised during the year 70p (1,371,996) 414p (2,745,701) Cancelled or forfeited in the year 0p (761,609) 0p (2,317,240) Outstanding at the end of the year 31p 6,167,742 52p 6,219,114 Exercisable at the end of the year 369p 519,899 295p 1,016,206 pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 192 Financial statements ǦǤɆ©ķëƎėȯĈëƖėĐɆƋëǈśėŝƢƖɆ(continued) The options outstanding at 31 December 2021 have a weighted average contractual life of 1.2 years (31 December 2020: 1.3 years). ÔëŒƪëƢļŨŝɆŨįɆŨƋƢļŨŝƖ The fair value of services received in return for share options granted are measured by reference to the fair value of share options granted. The Group engaged third-party valuation specialists to provide a fair value for the options. All LTIP plans are valued using both a Black Scholes valuation model and Monte Carlo valuation for the cumulative EPS and TSR conditions respectively. Fair value of share options and assumptions: $ëƢėɆŨįɆİƎëŝƢ ©ķëƎėɆƋƎļĉėɆëƢɆ ĐëƢėɆŨįɆİƎëŝƢɆ (£) ,ǇėƎĉļƖėɆƋƎļĉėɆ (£) ,ǇƋėĉƢėĐɆ volatility % ,ǇėƎĉļƖėɆ multiple ,ǇƋėĉƢėĐɆ dividend yield ¡ļƖŏɆįƎėėɆƎëƢėɆ % Fair value at measurement date (£) Dec 16 6.48 4.22 28%-30% n/a n/a – 1.43 – 1.94 Dec 17 9.34 – 26.6% n/a n/a 0.40% 7.39 – 9.34 Sep 18 9.14 – 33.7% n/a n/a 1.00% 4.58 – 9.14 Mar 19 4.96 – 31.5% n/a n/a 0.70% 1.90 – 4.96 Jun 20 7.86 – 33.2% n/a n/a 0.30% 3.54 – 7.86 Mar 21 15.25 – 52.8% n/a 2.0% 0.01% 10.03 – 11.27 May-21 16.46 12.64 51.3% n/a 2.0% 0.02% 6.75 32 Business Combinations ƪƖļŝėƖƖɆĉŨśĈļŝëƢļŨŝƖɆëƎėɆëĉĉŨƪŝƢėĐɆįŨƎɆƪƖļŝİɆƢķėɆëĉƍƪļƖļƢļŨŝɆśėƢķŨĐșɆQĐėŝƢļǘëĈŒėɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆëĉƍƪļƎėĐȚɆëŝĐɆĉŨŝƢļŝİėŝƢɆ ŒļëĈļŒļƢļėƖɆëƖƖƪśėĐɆļŝɆëɆĈƪƖļŝėƖƖɆĉŨśĈļŝëƢļŨŝɆëƎėɆśėëƖƪƎėĐɆëƢɆƢķėļƎɆįëļƎɆǁëŒƪėƖɆëƢɆƢķėɆëĉƍƪļƖļƢļŨŝɆĐëƢėșɆ¶ķėɆļĐėŝƢļǘĉëƢļŨŝɆëŝĐɆǁëŒƪëƢļŨŝɆŨįɆ intangible assets arising on business combinations is subject to a degree of judgement. We engaged independent third parties, including $ƪįįɆʁɆķėŒƋƖɆƢŨɆëƖƖļƖƢɆǂļƢķɆƢķėɆļĐėŝƢļǘĉëƢļŨŝɆëŝĐɆǁëŒƪëƢļŨŝɆƋƎŨĉėƖƖșɆ$ƪįįɆʁɆķėŒƋƖɆķëǁėɆƪƢļŒļƖėĐɆëɆ¡ėŒļėįɆįƎŨśɆ¡ŨǈëŒƢǈɆnėƢķŨĐɆëŝĐɆƢķėɆ Excess Earnings Method approach to determine the fair value of acquired intangibles. This was performed in accordance with the Group’s ƋŨŒļĉļėƖșɆ¶ķėɆėǇĉėƖƖɆŨįɆƢķėɆĉŨƖƢɆŨįɆëĉƍƪļƖļƢļŨŝɆŨǁėƎɆƢķėɆįëļƎɆǁëŒƪėɆŨįɆƢķėɆEƎŨƪƋȼƖɆƖķëƎėɆŨįɆƢķėɆļĐėŝƢļǘëĈŒėɆëƖƖėƢƖɆëĉƍƪļƎėĐɆļƖɆƎėĉŨƎĐėĐɆëƖɆ goodwill. Costs related to the acquisition are expensed as incurred, see note 6 for details. Summary of acquisitions: Enlabs On 30 March, the Group acquired 95.9% of the share capital of Enlabs AB. The acquisition of the share capital resulted in control being obtained and as a result Enlabs is consolidated as a subsidiary from this date forward. Enlabs operates predominantly via an online platform across sports betting and gaming markets and provides the Entain Group with access to the regulated Baltic markets. Consideration consisted of £304.5m for its 95.9% share in Enlabs with £14.2m recognised as a non-controlling interest within equity for the 4.1% of remaining holding not acquired by the Group. During Q4 the Group acquired the remaining share capital of Enlabs AB leaving a small non-controlling interest in one of the historic acquisitions performed by Enlabs prior to the Entain acquisition. Bet.pt On 31 March, the Group acquired 100% of the share capital of Entertainment Technologies Group Limited which owns the Bet.pt business, an online sports betting and gaming business operating in Portugal. The acquisition of the Bet.pt brand provides the Group with access to the regulated Portuguese market. In accordance with IFRS 3, as control has been obtained, the business has been consolidated from this point forwards. Including relevant adjustments for the net debt acquired with the business and potential payments under contingent arrangements, consideration amounted to £51.3m. Impala During the year, the Group established a 51% owned subsidiary GVC (Impala) Limited, subsequently renamed Impala Digital Limited, (“Impala Digital”). On 29 March 2021, Impala Digital acquired the trade and assets of a B2B business operating in the African betting and gaming market for $40m. This acquisition provides the Entain Group with a platform with which the Group can access the African market. In accordance with IFRS 3, as the Entain Group exercises control, Impala Digital has been consolidated within the Group ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ The shareholder agreement for Impala Digital provides an opportunity for the Group to purchase the remaining 49% of share capital. ëƖėĐɆŨŝɆƢķėɆėǇƋėĉƢëƢļŨŝɆƢķëƢɆƢķėɆƖėĉŨŝĐɆĉŨśƋŒėƢļŨŝɆƎėƍƪļƎėśėŝƢƖɆǂļŒŒɆĈėɆśėƢȚɆëɆǘŝëŝĉļëŒɆŒļëĈļŒļƢǈɆķëƖɆĈėėŝɆƎėĉŨƎĐėĐɆëƢɆɞǨǣșǣśɆ ëƢɆëĉƍƪļƖļƢļŨŝșɆ¶ķėɆėƖƢļśëƢėɆŨįɆƢķėɆǘŝëŝĉļëŒɆŒļëĈļŒļƢǈɆǂëƖɆĈëƖėĐɆŨŝɆįŨƎėĉëƖƢɆƎėƖƪŒƢƖɆëŝĐɆƢķėɆŒļŏėŒǈɆƋëǈśėŝƢɆĐƪėɆƪŝĐėƎɆƢķėɆƖėĉŨŝĐɆ completion conditions with £50m still provided at the year end. The shareholder agreement contains a cap of $309.9m in relation to the second purchase. 193 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 32 Business Combinations (continued) Finnplay On 1 April 2021, the Group acquired 100% of the share capital of Finnplay Technologies Oy, the platform provider for the Ninja brand of Enlabs for £10.3m. In accordance with IFRS 3, the business has been consolidated from this point forwards. Unikrn On 19 October 2021, the Group acquired the trade and assets of the Unikrn business for $72.2m. Unikrn provides the Group with a platform and expertise to enter the esports market. In accordance with IFRS 3 the Unikrn businesses results are consolidated from the point of acquisition. Given the proximity of some of the acquisitions to the period end and as permitted by IFRS 3 “Business Combinations”, the fair value of ƢķėɆëĉƍƪļƎėĐɆļĐėŝƢļǘëĈŒėɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆķëǁėɆĈėėŝɆƋƎėƖėŝƢėĐɆŨŝɆëɆƋƎŨǁļƖļŨŝëŒɆĈëƖļƖșɆDëļƎɆǁëŒƪėƖɆǂėƎėɆĐėƢėƎśļŝėĐɆŨŝɆƢķėɆĈëƖļƖɆŨįɆëŝɆ initial assessment performed by an independent professional expert. Details of the purchase consideration, the net assets acquired and goodwill are as follows: Provisional fair value £m Intangible assets (excluding goodwill) 218.5 Property, plant and equipment 3.3 Investments 2.9 Trade and other receivables 12.6 Cash and cash equivalents 22.3 Deferred tax asset 0.5 Deferred tax liability (32.7) Trade and other payables (31.3) Lease liabilities (0.9) Total 195.2 Net assets acquired 195.2 Goodwill 273.1 Total net assets acquired 468.3 ŨŝƖļĐėƎëƢļŨŝț Cash 436.5 Non-controlling interests 14.2 Deferred and contingent consideration 17.6 Total consideration 468.3 ¶ķėɆëĉƍƪļƎėĐɆĈƪƖļŝėƖƖėƖɆĉŨŝƢƎļĈƪƢėĐɆƎėǁėŝƪėƖɆŨįɆɞǬǬșǧśɆëŝĐɆƋƎŨǘƢɆĈėįŨƎėɆƢëǇɆŨįɆɞǤǬșǬśș LëĐɆƢķėɆëĉƍƪļƖļƢļŨŝƖɆŨĉĉƪƎƎėĐɆŨŝɆƢķėɆǘƎƖƢɆĐëǈɆŨįɆƢķėɆǘŝëŝĉļëŒɆǈėëƎɆƢķėɆƎėǁėŝƪėɆįŨƎɆƢķėɆEƎŨƪƋɆǂŨƪŒĐɆķëǁėɆĈėėŝɆɞǦȚǬǤǩșǤśɆǂļƢķɆëɆƋƎŨǘƢɆ before tax of £401.1m. Non-controlling interests have been stated at their fair value on acquisition, which has been determined by reference to the amount paid for the Group’s controlling interest. QŝĉŒƪĐėĐɆļŝɆƢķėɆǁëŒƪëƢļŨŝɆŨįɆİŨŨĐǂļŒŒɆļƖɆƢķėɆǁëŒƪėɆëƢƢƎļĈƪƢėĐɆƢŨɆëĉƍƪļƎėĐɆǂŨƎŏįŨƎĉėȚɆëŝĐɆƢķėɆĈėŝėǘƢɆŨįɆįƪƢƪƎėɆƢƎëĐļŝİɆƋŨƢėŝƢļëŒɆļŝĉŒƪĐļŝİɆ synergies arising as part of the acquisition. 33 Commitments and contingencies Contingent liabilities Guarantees have been given in the ordinary course of business in respect of loans and derivative contracts granted to subsidiaries amounting to £500.0 million (31 December 2020: £500.0 million). pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 194 Financial statements 33 Commitments and contingencies (continued) HMRC investigation On 28 November 2019, one of our UK subsidiaries, GVC Holdings (UK) Limited, received a production order from HM Revenue & Customs ȩɁLn¡ɁȪɆƎėƍƪļƎļŝİɆļƢɆƢŨɆƋƎŨǁļĐėɆļŝįŨƎśëƢļŨŝɆƎėŒëƢļŝİɆƢŨɆƢķėɆİƎŨƪƋɂƖɆįŨƎśėƎɆ¶ƪƎŏļƖķɆįëĉļŝİɆŨŝŒļŝėɆİëśĈŒļŝİɆĈƪƖļŝėƖƖȚɆƖŨŒĐɆļŝɆǥǣǤǪșɆƢɆƢķëƢɆ ƢļśėȚɆƢķėɆEƎŨƪƋɆƪŝĐėƎƖƢŨŨĐɆƢķëƢɆLn¡ɂƖɆļŝǁėƖƢļİëƢļŨŝɆǂëƖɆĐļƎėĉƢėĐɆëƢɆëɆŝƪśĈėƎɆŨįɆįŨƎśėƎɆƢķļƎĐɆƋëƎƢǈɆƖƪƋƋŒļėƎƖȚɆƎėŒëƢļŝİɆƢŨɆƢķėɆƋƎŨĉėƖƖļŝİɆ of payments for online gambling in Turkey. On 21 July 2020, GVC Holdings Plc announced that HMRC was widening the scope of its investigation and was examining potential corporate offending by the GVC group. It had previously been understood that no Group ĉŨśƋëŝǈɆǂëƖɆëɆƖƪĈŌėĉƢɆŨįɆLn¡ɂƖɆļŝǁėƖƢļİëƢļŨŝșɆ¶ķƎŨƪİķɆŨŝİŨļŝİɆėŝİëİėśėŝƢɆǂļƢķɆLn¡ɆǂėɆƪŝĐėƎƖƢëŝĐɆƢķëƢɆƢķėɆEƎŨƪƋɆƎėśëļŝƖɆëɆ corporate suspect and that the offences under investigation include, but are not limited to, offences under sections 1 and 7 of the Bribery ĉƢɆǥǣǤǣșɆ¶ķėɆEƎŨƪƋɆĉŨŝƢļŝƪėƖɆƢŨɆĉŨȯŨƋėƎëƢėɆįƪŒŒǈɆǂļƢķɆLn¡ɂƖɆėŝƍƪļƎļėƖȚɆǂķļĉķɆëƎėɆŨŝİŨļŝİș In addition to the items discussed above, the Group is subject to number of other potential litigation claims that arise as part of the normal course of business and continue to arise in 2022. Provision has not been made against these claims as they are either not considered ŒļŏėŒǈɆƢŨɆƎėƖƪŒƢɆļŝɆëŝɆėĉŨŝŨśļĉɆŨƪƢǙŨǂɆŨƎɆƢķėǈɆĐŨɆŝŨƢɆƎėƋƎėƖėŝƢɆëŝɆŨĈŒļİëƢļŨŝɆëƢɆƢķėɆǈėëƎɆėŝĐɆĐëƢėșɆŨŝƖļƖƢėŝƢɆǂļƢķɆëŝǈɆĉŒëļśƖɆŨįɆƢķļƖɆŝëƢƪƎėɆ ƢķėƎėɆĉëŝɆĈėɆƪŝĉėƎƢëļŝƢǈɆǂļƢķɆƢķėɆǘŝëŒɆŨƪƢĉŨśėșɆ For a discussion of the current position of the Group in relation to Greek tax, refer to note 18. 34 Related party disclosures Other than its associates and joint venture, the related parties of the Group are the Executive Directors, Non-Executive Directors and members of the Executive Committee of the Group. Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Transactions between the Group and its associates and joint venture and other related parties are disclosed below. During the year, Group companies entered into the following transactions with related parties who are not members of the Group: 2021 £m 2020 £m Equity investment – Joint venture 1 164.4 61.8 Sundry expenditure – Associates 2 59.3 56.6 1. Equity investment in BetMGM. 2. Payments in the normal course of business made to Sports Information Services (Holdings) Limited and bwin eK Neugersdorf. Details of related party outstanding balances: 2021 £m 2020 £m Other amounts outstanding – Associates 0.1 0.1 ¶ėƎśƖɆëŝĐɆĉŨŝĐļƢļŨŝƖɆŨįɆƢƎëŝƖëĉƢļŨŝƖɆǂļƢķɆƎėŒëƢėĐɆƋëƎƢļėƖ Sales to, and purchases from, related parties are made at market prices and in the ordinary course of business. Outstanding balances at 31 December 2021 are unsecured and settlement occurs in cash. For the year ended 31 December 2021, the Group has not raised any provision (2020: £nil) for doubtful debts relating to amounts owed by related parties as the payment history has been good. ¶ķļƖɆëƖƖėƖƖśėŝƢɆļƖɆƪŝĐėƎƢëŏėŝɆėëĉķɆǘŝëŝĉļëŒɆǈėëƎɆƢķƎŨƪİķɆėǇëśļŝļŝİɆƢķėɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆŨįɆƢķėɆƎėŒëƢėĐɆƋëƎƢǈɆëŝĐɆƢķėɆśëƎŏėƢɆļŝɆǂķļĉķɆ the related party operates. ¶ƎëŝƖëĉƢļŨŝƖɆǂļƢķɆ$ļƎėĉƢŨƎƖɆëŝĐɆŏėǈɆśëŝëİėśėŝƢɆƋėƎƖŨŝŝėŒɆŨįɆƢķėɆEƎŨƪƋ For details of Directors’ remuneration please refer to the Directors’ remuneration table included on pages 134 to 140 of this report. ¶ķėɆƎėśƪŝėƎëƢļŨŝɆŨįɆŏėǈɆśëŝëİėśėŝƢɆƋėƎƖŨŝŝėŒɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂɆļŝɆëİİƎėİëƢėɆįŨƎɆėëĉķɆŨįɆƢķėɆĉëƢėİŨƎļėƖɆƖƋėĉļǘėĐɆļŝɆQ©ɆǥǧɆ¡ėŒëƢėĐɆ Party Disclosures. Key management personnel comprise Executive Directors, Non-Executive Directors and members of the Executive management team. Further information about the remuneration of individual Directors is provided in the Directors’ remuneration report. 2021 £m 2020 £m ©ķŨƎƢȯƢėƎśɆėśƋŒŨǈėėɆĈėŝėǘƢƖ 9.7 5.8 Share-based payments 5.2 7.3 Total compensation paid to key management personnel 14.9 13.1 ėƢėƎɆQƖŨŒëɆļƖɆëɆĐļƎėĉƢŨƎɆŨįɆ,ƪƎŨƋŨƎƢɆȩQŝƢėƎŝëƢļŨŝëŒȪɆLŨŒĐļŝİƖɆdļśļƢėĐɆëŝĐɆ,ƪƎŨƋŨƎƢɆDļǁėɆdļśļƢėĐȚɆëɆƋƎŨƋėƎƢǈɆǘƎśɆļŝɆEļĈƎëŒƢëƎɆǂķļĉķɆĉķëƎİėĐɆ rental expenses of £2.6m to the Group during the year (2020: £2.5m). 195 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ¶ķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļŝĉŒƪĐėɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆ,ŝƢëļŝɆƋŒĉɆëŝĐɆļƢƖɆƖƪĈƖļĐļëƎļėƖșɆ¶ķėɆĉŨśƋëŝļėƖɆŒļƖƢėĐɆĈėŒŨǂɆëƎėɆ ƢķŨƖėɆǂķļĉķɆǂėƎėɆƋëƎƢɆŨįɆƢķėɆEƎŨƪƋɆëƢɆǦǤɆ$ėĉėśĈėƎɆëŝĐɆƢķėƎėįŨƎėɆƢķėɆƎėƖƪŒƢƖȚɆĉëƖķɆǙŨǂƖɆëŝĐɆĈëŒëŝĉėɆƖķėėƢƖɆŨįɆëŒŒɆƖƪĈƖļĐļëƎļėƖɆŒļƖƢėĐɆëƎėɆ ĉŨŝƖŨŒļĐëƢėĐɆļŝƢŨɆƢķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆįƪƎƢķėƎśŨƎėɆƢķėɆƎėƖƪŒƢƖɆŨįɆŌŨļŝƢɆǁėŝƢƪƎėƖɆëŝĐɆëƖƖŨĉļëƢėƖɆëƎėɆëĉĉŨƪŝƢėĐɆįŨƎɆļŝɆëĉĉŨƎĐëŝĉėɆ with the policy set out in note 4. ©ƪĈƖļĐļëƎļėƖɆĈëƖėĐɆļŝɆƢķėɆ½ŝļƢėĐɆbļŝİĐŨś Registered address Company % equity interest 2021 2020 3rd Floor One New Change, London, United Kingdom, EC4M 9AF Arthur Prince (Turf Accountants) Limited (5) 100.0 100.0 Bartletts Limited (5) 100.0 100.0 Birchgree Limited (4)(6) 100.0 100.0 Bloxhams Bookmakers Limited (5) 100.0 100.0 Brickagent Limited (5) 100.0 100.0 Cashcade Limited (6) 100.0 100.0 CE Acquisition 1 Limited (4)(6) 100.0 100.0 Chas Kendall (Turf Accountant) Limited (5) 100.0 100.0 Choicebet Limited (5) 100.0 100.0 C L Jennings (1995) Limited (5) 100.0 100.0 Competition Management Services Co. Limited (5) 97.5 97.5 Coral (Holdings) Limited (4)(6) 100.0 100.0 Coral (Stoke) Limited (5) 100.0 100.0 Coral Estates Limited (6) 100.0 100.0 Coral Eurobet Limited (6) 100.0 100.0 Coral Eurobet Holdings Limited (4)(6) 100.0 100.0 Coral Group Limited (4)(6) 100.0 100.0 Coral Group Trading Limited (4)(6) 100.0 100.0 Coral Limited (4)(6) 100.0 100.0 Coral Racing Limited (4)(6) 100.0 100.0 Coral Stadia Limited (4)(5) 100.0 100.0 E.F. Politt & Son Limited (5) 100.0 100.0 Entain Services Limited (5) 100.0 100.0 Forestal Land, Timber and Railways Company Limited (The) (5) 100.0 100.0 Forster’s (Bookmakers) Limited (5) 100.0 100.0 Gable House Estates Limited (5) 100.0 100.0 Ganton House Investments Limited (6) 100.0 100.0 Greatmark Limited (5) 100.0 100.0 Electraworks Maple Limited (5) 100.0 100.0 Entain Holdings (UK) Limited (1)(2)(4) 100.0 100.0 Entain Marketing (UK) Limited (4) 100.0 100.0 Hillford Estates Limited (5) 97.5 97.5 Impala Digital Limited (3)(4) 51.0 – Hindwain Limited (6) 100.0 100.0 Interactive Sports Limited (6) 100.0 100.0 J G Leisure Limited (5) 100.0 100.0 J. Ward Hill & Company (5) 100.0 100.0 Jack Brown (Bookmaker) Limited (6) 100.0 100.0 Jerusalem Development (Mamilla) Co. Limited (5) 100.0 100.0 Jerusalem Development Corporation (Holdings) Limited (4)(5) 100.0 100.0 Joe Jennings (1995) Limited (5) 100.0 100.0 Joe Jennings Limited (5) 100.0 100.0 Krullind Limited (5) 100.0 100.0 Ladbroke & Co., Limited (5) 100.0 100.0 Ladbroke (Rentals) Limited (5) 100.0 100.0 Ladbroke City & County Land Company Limited (4)(5) 100.0 100.0 34 Related party disclosures continued pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 196 Financial statements Registered address Company % equity interest 2021 2020 Ladbroke Coral Corporate Director Limited (5) 100.0 100.0 Ladbroke Coral Corporate Secretaries Limited (5) 100.0 100.0 Ladbroke Dormant Holding Company Limited (4)(5) 100.0 100.0 Ladbroke Entertainments Limited (6) 100.0 100.0 Ladbroke Group (4)(5) 100.0 100.0 Ladbroke Group Homes Limited (5) 100.0 100.0 Ladbroke Group International (5) 100.0 100.0 Ladbroke Group Properties Limited (4)(5) 100.0 100.0 Ladbroke Land Limited (5) 100.0 100.0 Ladbroke Leasing (South East) Limited (5) 100.0 100.0 Ladbroke Racing (South East) Limited (5) 100.0 100.0 Ladbroke US Investments Limited (4)(5) 100.0 100.0 Ladbrokes (CLJEA) Limited (5) 100.0 100.0 Ladbrokes (CLJHC) Limited (5) 100.0 100.0 Ladbrokes (CLJSW) Limited (5) 100.0 100.0 Ladbrokes Betting & Gaming Limited (2)(3)(4) 100.0 100.0 Ladbrokes Contact Centre Limited (5) 100.0 100.0 dëĐĈƎŨŏėƖɆŨƎëŒɆEƎŨƪƋɆdļįėɆėŝėǘƢƖɆ¶ƎƪƖƢėėɆdļśļƢėĐ (5) 100.0 100.0 Ladbrokes Coral Group Limited (2)(4) 100.0 100.0 Ladbrokes CPCB Limited (5) 100.0 100.0 Ladbrokes E-Gaming Limited (5) 100.0 100.0 Ladbrokes Group Finance plc (2) 100.0 100.0 Ladbrokes Group Holdings Limited (4)(5) 100.0 100.0 Ladbrokes Investments Holdings Limited (4)(5) 100.0 100.0 Ladbrokes IT & Shared Services Limited (5) 100.0 100.0 Ladbrokes PT Limited (5) 100.0 100.0 Ladbrokes Trustee Company Limited (6) 100.0 100.0 Lightworld Limited (4)(5) 100.0 100.0 London & Leeds Estates Limited (5) 93.5 93.5 Margolis and Ridley Limited (5) 100.0 100.0 New Angel Court Limited (5) 100.0 100.0 Paddington Casino Limited (5) 100.0 100.0 Reg.Boyle Limited (5) 100.0 100.0 Reuben Page Limited (4)(5) 100.0 100.0 Romford Stadium Limited (5) 100.0 100.0 Rousset Capital Limited (6) 100.0 100.0 Sabrinet Limited (5) 100.0 100.0 Sponsio Limited (4)(5) 100.0 100.0 Sporting Odds Limited (2)(3) 100.0 100.0 Sportingbet (IT Services) Limited (5) 100.0 100.0 Sportingbet (Management Services) Limited (5) 100.0 100.0 Sportingbet (Product Services) Limited (5) 100.0 100.0 Sportingbet Holdings Limited (5)(6) 100.0 100.0 Sportingbet Limited (5)(6) 100.0 100.0 Sports (Bookmakers) Limited (5) 100.0 100.0 Techno Land Improvements Limited (5) 100.0 100.0 Town and County Factors Limited (5) 100.0 100.0 Travel Document Service (4)(5) 100.0 100.0 Vegas Betting Limited (5) 100.0 100.0 Ventmear Limited (5) 100.0 100.0 34 Related party disclosures continued 197 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Registered address Company % equity interest 2021 2020 35 Great St. Helen’s London, United Kingdom EC3A 6AP Techno Limited 84.0 84.0 77A Andersonstown Road Ladbrokes (Northern Ireland) (Holdings) Limited (4)(6) 100.0 100.0 Belfast Ladbrokes (Northern Ireland) Limited (5) 100.0 100.0 BT11 9AH North West Bookmakers Limited (2)(3) 100.0 100.0 Subsidiaries based overseas Registered address Company % equity interest 2021 2020 Belmont Chambers Creative Trend Limited 100.0 100.0 Road Town CTL Holdings International Limited (4) 100.0 100.0 Tortola SRL Holdings International Limited (4) 100.0 100.0 British Virgin Islands Sunrise Resources Limited 100.0 100.0 Jayla Place, Wickhams Cay 1, Road Town, Westman Holdings Limited 100.0 100.0 Tortola, British Virgin Islands 13/F, Gloucester Tower GVC Technology Consulting (Asia) Co Limited 100.0 100.0 The Landmark 15 Queen’s Road Central Hong Kong, China Inchalla, Alderney, GY9 3UL, Guernsey ElectraWorks (Alderney) Limited 100.0 100.0 1st Floor, Otter House Ladbroke (Ireland) Limited (2)(3)(4) 100.0 100.0 Naas Road, Dublin 22 Ireland 25/28 North Wall Quay, Dublin 1, Fort Anne Limited (1) 100.0 100.0 D01 H104, Ireland M.L.B. Limited 100.0 100.0 Menahem Begin Road Gala Interactive (Services) Limited 100.0 100.0 121 &125 GVC Impala R&D Limited 51.0 – Tel Aviv, Jaffa, Israel Ladbrokes Israel Limited (2) 100.0 100.0 Via Alessandro Marchetti No.105 Eurobet Holding SRL (4) 100.0 100.0 Rome 00148, Italy Eurobet Italia SRL (2)(3) 100.0 100.0 1st Floor, Liberation House Ladbroke (Channel Islands) Limited (3) 100.0 100.0 Castle Street, St. Helier, JE1 1GL, Jersey 461-473 Lutwyche Road Gaming Investments Pty Limited (4) 100.0 100.0 Lutwyche Entain Australia Pty Ltd (2)(3) 100.0 100.0 Queensland LB Australia Holdings Pty Limited (4) 100.0 100.0 QLD 4030 Neds.com.au Pty Ltd 100.0 100.0 Australia Neds International Pty Ltd (2)(3) 100.0 100.0 IFC 5, ST. HELIER, JE1 1ST, Jersey GVC Finance Limited 100.0 100.0 Maple Court Investments (Jersey) Limited (5) 100.0 100.0 PartyGaming Finance Limited 100.0 100.0 Chaussée de Wavre 1100/3 Ladbroke Belgium S.A. (4) 100.0 100.0 1160 Auderghem Pari Mutuel Management Services S.A. 100.0 100.0 Belgium Redsports.be SPRL 100.0 100.0 S.A. Derby N.V. (2)(3)(4) 100.0 100.0 Tierce Ladbroke S.A. (3) 100.0 100.0 29 Avenue Lavoisier, 1300 Wavre, Belgium Professional Gaming Services Sprl 100.0 100.0 6F Tower 3 Double Dragon Plaza EDSA InteractiveSports Asia Limited Inc. 100.0 100.0 Ext. cor. Macapagal Avenue, Pasay City, NCH Customer Support Services, Inc 100.0 100.0 Philippines 34 Related party disclosures continued pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 198 Financial statements Registered address Company % equity interest 2021 2020 24A 18th Street Ladbrokes (SA) (Pty) Limited 60.0 60.0 Menlo Park, Pretoria 0081, South Africa Castello 82 4 IZQ, 28006, Madrid, Spain Ladbrokes Betting and Gaming Spain, S.A. 100.0 100.0 270 E. Park Street, Suite 1 Butte, Ladbrokes Holdco, Inc. (4) 100.0 100.0 Montana 59701 608 Lander Street Stadium Technology Group, LLC (3) 100.0 100.0 Reno Nevada 89509, United States 15 Agion Omologiton, Nicosia, 1080, Bellingrath Enterprises Limited 100.0 100.0 Cyprus 1565 Carling Avenue, Suite 400, Ottawa, Canada Limited 100.0 100.0 Ontario K1Z 8R1 19 Boulevard Malesherbes, 75008, Paris, B.E.S. S.A.S 100.0 100.0 France ǥŝĐɆDŒŨŨƎȚɆ©ƢɆnëƎǈɂƖɆŨƪƎƢȚɆǥǣɆLļŒŒɆ©ƢƎėėƢȚɆ Cozy Games Management Limited (5) 100.0 100.0 Douglas, IM1 1EU, Isle of Man 32 Athol Street, Douglas, IM1 1JB, Entain (IOM) Limited (1) 100.0 100.0 Isle of Man 820 Bear Tavern Road, Trenton, bwin.party (USA) Inc 100.0 100.0 New Jersey, 08628, USA bwin.party entertainment (NJ) LLC 90.0 90.0 bwin.party services (NJ) Inc 100.0 100.0 701 S. Carson Street, Suite 200, Ladbrokes Subco LLC 100.0 100.0 Carson City, 89701, Nevada Harborside Plaza 3, 210 Hudson Street, GVC Holdings (USA) Inc 100.0 100.0 Jersey City, New Jersey 07311 ǨǣɆ¡ëįǙėƖɆŒëĉėȚɆǦǥȯǣǤɆ©ļŝİëƋŨƎėɆdëŝĐ Cozy Games Pte Limited 100.0 100.0 Tower, Singapore (048623) Florent Pte Limited 100.0 100.0 ǨǨɆpļŏŨŒëɆÔëƋƢƖëƎŨǁɆŒǁĐȚɆ{įǘĉėɆëƎŏ GVC Services (Bulgaria) EOOD 100.0 100.0 Expo 2000, Building Phase 4, Floor 3, dŨǒėŝėƢƖɆƎėëȚɆ©ŨǘëɆǤǧǣǪȚɆƪŒİëƎļë 5th Floor, Divyasree Omega, Block - B, IVY Comptech Private Limited 100.0 100.0 Hitec City Road, Kondapur, Hyderabad, Andhra Pradesh, 500081, India 6th Floor, Divyashree omega, Block-B, IVY Foundation Limited 100.0 100.0 Plot No. 13/E, Survey no.13(part), IVY Global Shared Services Private Limited 100.0 100.0 Kondapur, Hyderabad, 500081, Andhra IVY Software Development Services Private Limited 100.0 100.0 Pradesh, India 85 St John Street, Valletta, VLT 1165, Entain Holdings (Malta) Limited 100.0 100.0 Malta Gaming VC Corporation Limited 100.0 99.0 bwin.gr Limited (2) 100.0 99.0 Headlong 2 Limited (1) 100.0 100.0 Scandic Bookmakers Limited 100.0 99.0 Spread Your Wings Bravo Limited 100.0 99.0 VistaBet Limited (2) 100.0 100.0 68, Tower Road, Sliema, Entertainments Technologies Group Limited (4) 100.0 – SLM – 1606, Malta ǁėŝļĐëɆĐėɆDƪėŝĉëƎƎëŒɆǧǧȚɆ,ĐļǘĉļŨ Winner Apuestas S.A. 100.0 100.0 Tribeca 1, modulo B, CP 28108, Alcobendas, Madrid, Spain Bertolt - Brecht - Allee 24, 01309, DSG Deutsche Sportwelt GmbH 100.0 100.0 Dresden, Germany 34 Related party disclosures continued 199 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Registered address Company % equity interest 2021 2020 Schwanthalerstrasse 73, Entain (Germany) GmbH 100.0 – 80336 Munich, Germany Box 3095, 350 33 Växjö, Sweden Webdollar Sweden AB 100.0 100.0 c/o Kilpatrick Townsend & Stockton bwin.party Games AB 100.0 100.0 Advokat KB, Box 5421, 114 84 Stockholm, Sweden Calle Amador de los Ríos n°1, 6 planta, bwin Interactive Marketing Espana S.L. 100.0 100.0 28010 Madrid, Spain c/o The Corporation Trust Company, GVC Finance LLC (1) 100.0 100.0 1209 Orange Street, County of New Castle, Wilmington, Delaware, 19801, USA Calle Josep Plá, número 2, planta 5ªD, Javari Marketing Consultancy Services S.L. 100.0 100.0 ,ĐļǘĉļŨɆ¶ŨƎƎėɆ$ļëİŨŝëŒɆdļƢŨƎëŒȚɆǣǫǣǤǬȚ Barcelona Century House, 12 Victoria Street, Interactive Sports (C.I.) Limited 100.0 100.0 Alderney, GY9 3UF, Channel Islands Emancipatie Boulevard Dominico F. GVC Services BV 100.0 100.0 “Don” Martina 29, Curaçao Fruebjergvej 3, Copenhagen, 2100, Interactive Sports (Denmark) ApS 100.0 100.0 Denmark dëİŨëƖɆëƎŏȚɆ,ĐļǘĉļŨɆǤǤȚɆļƖŨɆǣɆ©ƪŒȚɆ QŝǘėŒĐɆȱɆ©ėƎǁļĉŨƖɆĐėɆŨŝƖƪŒƢŨƎļëɆnëƎŏėƢļŝİɆ½ŝļƋėƖƖŨëŒɆd$ș 100.0 100.0 2740-244, Porto Salvo, Portugal Av. Dos Combatentes, no. Gobet Entretenimento SA (3) 100.0 – 43-5 A, 1600-042 Lisbon, Portugal Entain Operations Portugal SA 100.0 – Marxergasse 1b, 1030 Vienna, Austria bwin.party services (Austria) GmbH 100.0 100.0 Websports Entertainment Marketing Services GmbH 100.0 100.0 Penthouse, Palazzo Spinola Business bwin (Deutschland) Limited 100.0 100.0 Centre, Number 46, St Christopher bwin Holdings (Malta) Limited (1) 100.0 100.0 Street, Valletta, VLT 1464, Malta bwin.party services (Malta) Limited 100.0 100.0 bwin.party holding Malta Limited 100.0 100.0 bwin.party International Malta Limited 100.0 100.0 ElectraWorks (France) Limited 100.0 100.0 ElectraWorks (Kiel) Limited 100.0 100.0 ElectraWorks (Malta) PLC 100.0 100.0 ElectraWorks (Svenska) Limited 100.0 100.0 ElectraWorks Europe Ltd 100.0 100.0 Gamebookers (Deutschland) Limited 100.0 100.0 Ladbrokes (Deutschland) Limited 100.0 100.0 Martingale Europe Limited 100.0 100.0 Martingale Malta 2 Limited 100.0 100.0 Sportingbet (Deutschland) Limited 100.0 100.0 {ǘĉļŝëɆŝƎșǥǣǤȯǥǣǤǨȚɆėĐėǘĉļŨʀǦȚɆƎƪƢëɆǫȚɆ Gomifer S.A. 100.0 100.0 km. 17,500, Uruguay Quay House, South Esplanade St, Peter Longfrie Limited 100.0 100.0 Port, Guernsey, GY1 4EJ, PO Box 132 Sea Meadow House, Blackburne Wavecrest Providers Limited (5) 100.0 100.0 Highway, Road Town, Tortola, British Virgin Islands, PO BOX 116 Suite 4, Constantia House, Steenberg Main Street 1013 Pty Limited 100.0 100.0 {įǘĉėɆëƎŏȚɆŨŝƖƢëŝƢļëȚɆǪǫǣǣȚɆ©ŨƪƢķ SBT Software Operations (SA) (Pty) 100.0 100.0 Africa 34 Related party disclosures continued pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 200 Financial statements 34 Related party disclosures continued Registered address Company % equity interest 2021 2020 Vake District, Kavtaradze Str., No 5, MARS LLC (2)(3) 100.0 51.0 ,ŝƢƎëŝĉėɆǥȚɆDŒŨŨƎɆǥȚɆ{įǘĉėɆ©ƋëĉėɆpŨɆǥȚ Tbilisi, Georgia Via Gaetano Previati 9, 20149, Milan, bwin European Markets Holding SpA 100.0 100.0 Italy bwin Italia S.R.L. (3) 100.0 100.0 Rruga Dervish Hirna, Ada Tower, LevTech Shpk 51.0 – nr.pasurie 6/55-N, 8160 Albania Suite 6, Atlantic Suites, Europort Avenue, Balltree (International) Limited (5) 100.0 100.0 Gibraltar Bingo Marketing Limited 100.0 100.0 bwin.party holdings Limited 100.0 100.0 bwin.party services (Gibraltar) Limited 100.0 100.0 Claymore Interactive Entertainment Holdings Limited (5) 100.0 100.0 Coral Interactive (Gibraltar) Limited (5) 100.0 100.0 ElectraGames Limited 100.0 100.0 ElectraWorks Limited (2)(3) 100.0 100.0 Entain Holdings Limited (5) 100.0 100.0 Gala Coral Interactive (Gibraltar) Limited (4)(5) 100.0 100.0 Gala Interactive (Gibraltar) Limited (4)(5) 100.0 100.0 Greyjoy Limited 100.0 100.0 Entain Corporate Services Limited 100.0 100.0 Entain Holdings (Gibraltar) Limited (1) 100.0 100.0 Entain Operations Limited 100.0 100.0 EntainTrustees Limited 100.0 100.0 IGM Domain Name Services Limited 100.0 100.0 ISG (Gibraltar) Limited 100.0 100.0 ITL Holdings Limited 100.0 100.0 LC International Limited (2)(3)(4) 100.0 100.0 PartyGaming IA Limited (5) 100.0 100.0 Stora Gatan 46, Sigtuna Baltic Gaming AB 100.0 – Kommun, 19330, Sweden Enlabs AB (4) 100.0 – Entraction AB 97.0 – Kama Net AB (3) 100.0 – dļǙëŝĐɆEëśļŝİɆ 100.0 – NLI AB 100.0 – Score24 AB (3) 100.0 – 120, The Strand, Unit 6. Triq BestBet Limited (3) 100.0 – Ix-Xatt, Gzira GZR, 1027, Elec Games C1 Limited (3) 100.0 – Malta Elec Games Holdings Limited (4) 100.0 – Elec Games Limited (3) 100.0 – Future Lead Generation Limited (4) 100.0 – dļǙëŝĐɆLŨŒĐļŝİƖɆdļśļƢėĐ (4) 100.0 – Ninja Global Limited (3) 100.0 – West African Gaming Limited (5) 100.0 – ¡ŨǈëŒɆëƎŏɆ©ėƎǁļĉėĐɆ{įǘĉėȚ Scout Gaming AB (3) 100.0 – Frosundaviks alle 15, 16903 Solna, Sweden Zalgurio g. 96-101, Vilnius, UAB Baltic Bet (3) 100.0 – Lithuania Republic of Belarus, 220039, OOO Optibet (3) 100.0 – Minsk, 20 Chkalov Str. ƎėśļƖėɆǬǫȚɆ{įǘĉėɆǤ {įǘĉėɆǤǦȚɆǦǬɆ$ǒķŨŝë Ninja Casino TOB 100.0 – Makkeina Street, Kyiv, 01042, Ukraine 201 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Registered address Company % equity interest 2021 2020 Setekles iela, 2B, Riga, LV- SIA Laimz (3) 100.0 – 1050, Latvia SIA Optibet (3) 100.0 – Unioninkatu 24, Helsinki, Finnplay Technologies Oy 100.0 – 00130, Finland – Lootsa tn 1a, Lasnamae Ninja Global OU (5) 100.0 – Linnaosa, 11415, Estonia Optiwin OU (3) 100.0 – 1. Company that is directly owned by Entain PLC. 2. Company that forms part of the Group as at 31 December 2021 and which, principally affected the Group’s reported results for the year. 3. Trading entity engaged in activity associated with betting and gaming. 4. Holding company. 5. Dormant company. ǩșɆ ŨśƋëŝǈɆǂķļĉķɆƢķėɆEƎŨƪƋɆėǇƋėĉƢƖɆƢŨɆėǇėśƋƢɆįƎŨśɆƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆƢķėɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩɆƎėŒëƢļŝİɆƢŨɆƢķėɆëƪĐļƢɆŨįɆļŝĐļǁļĐƪëŒɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆĈǈɆǁļƎƢƪėɆŨįɆƖėĉƢļŨŝɆǧǪǬșɆ As a result, the Group guarantees all outstanding liabilities to which the subsidiary is subject. Joint ventures Registered address Company % equity interest 2021 2020 Corporation Service Company, 251 Little Falls Drive, Wilmington, Delaware 19808 BetMGM, LLC 50.0 50.0 Associates ŨƪŝƢƎǈɆŨįɆļŝĉŨƎƋŨƎëƢļŨŝ Company % equity interest 2021 2020 China Asia Gaming Technologies (Beijing) Co., Ltd (1) 49.0 49.0 Asia Gaming Technologies (Tianjin) Co., Ltd (1) 49.0 49.0 Asia Gaming Technologies Limited 49.0 49.0 Germany bwin E.K. Neugersdorf 50.0 50.0 Belgium Gran Casino de Dinant SA 20.0 – QŝǘŝļƢļɆëƖļŝŨɆ{ŨƖƢėŝĐėɆpÔ 20.0 – Leaderbet NV 20.0 – United Kingdom Draw & Code Limited 40.0 – Games For Good Causes PLC 36.3 36.3 Lucky Choice Limited (2) 66.6 66.6 Sports Information Services (Holdings) Limited 23.4 23.4 1. Subsidiary of Asia Gaming Technologies Limited. ǥșɆ ,ŝƢëļŝɆdɆķŨŒĐɆǩǩșǩɼɆŨįɆƢķėɆėƍƪļƢǈɆŨįɆƢķėɆļŝǁėƖƢśėŝƢșɆ¶ķėɆëƖƖŨĉļëƢėɆļƖɆŝŨƢɆĉŨŝƖŨŒļĐëƢėĐɆļŝɆƢķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨŝɆƢķėɆĈëƖļƖɆƢķëƢɆƢķėɆEƎŨƪƋɆĐŨėƖɆŝŨƢɆėǇėƎĉļƖėɆ management control over the associate. pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 34 Related party disclosures continued Entain plc | Annual Report 2021 202 Financial statements 35 Non-controlling interests During the year the Group acquired a non-controlling interest in Enlabs AB as a result of the acquisition disclosed in note 32. Subsequently, the Group purchased the remaining non-controlling interests in Crystalbet (acquired in 2018) and Enlabs AB. Following the purchase of the non-controlling interest in Enlabs AB and Crystalbet, the Group continues to hold non-controlling interests in Entraction AB (a subsidiary of Enlabs AB) and Impala Digital Limited. At 31 December 2020 non-controlling interests consisted principally of Crystalbet. The total assets relating to subsidiaries with a non-controlling interest were £54.5m (2020: £42.4m) of which there were related liabilities of £37.1m (2020: £25.3m). ¶ķėɆƋƎŨǘƢɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆŝŨŝȯĉŨŝƢƎŨŒŒļŝİɆļŝƢėƎėƖƢƖɆǂëƖɆɞǤǤșǧśɆȩǥǣǥǣțɆɞǥǤșǩśȪșɆ The balance of retained earnings attributable to non-controlling interest is disclosed in the table below: Total £m As at January 2020 43.1 ƎŨǘƢɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆŝŨŝȯĉŨŝƢƎŨŒŒļŝİɆļŝƢėƎėƖƢƖ 21.6 Payment of dividends (12.4) As at 31 December 2020 52.3 ƎŨǘƢɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆŝŨŝȯĉŨŝƢƎŨŒŒļŝİɆļŝƢėƎėƖƢƖ 11.4 Business combinations 14.2 Purchase of non-controlling interests (52.0) Payment of dividends (24.5) As at 31 December 2021 1.4 36 Subsequent Events Given the more certain medium-term outlook, the Group has taken the decision to repay the £44m received under the Coronavirus Job Retention Scheme (“furlough scheme”) in FY21. The scheme was a sensible and highly welcome policy intervention that helped us, as one of the country’s largest retailers, to maintain the livelihoods of more than 14,000 retail colleagues on full pay. We have kept the situation ƪŝĐėƎɆƎėǁļėǂɆƖļŝĉėɆǂėɆǘƎƖƢɆśëĐėɆƪƖėɆŨįɆƢķėɆƖĉķėśėɆëŝĐɆëƎėɆƋŒėëƖėĐɆƢŨɆĈėɆļŝɆëɆƋŨƖļƢļŨŝɆƢŨɆƎėƋëǈɆƢķėƖėɆśŨŝļėƖșɆ Following the year end, the Group announced the acquisition of Deis Ltd ("Avid Gaming") for CAD300 million from Middlebrook QŝǁėƖƢśėŝƢƖɆdļśļƢėĐșɆǁļĐɆEëśļŝİɆŨǂŝƖɆ©ƋŨƎƢƖɆQŝƢėƎëĉƢļŨŝȚɆëŝëĐëɂƖɆŒėëĐļŝİɆŨŝŒļŝėɆƖƋŨƎƢƖɆĈėƢƢļŝİɆĈƎëŝĐșɆQƢɆļƖɆķėëĐƍƪëƎƢėƎėĐɆļŝɆėƎƖėǈɆ ȩķëŝŝėŒɆQƖŒëŝĐƖȪȚɆǂļƢķɆŨįǘĉėƖɆļŝɆƢķėɆnŨķëǂŏɆ¶ėƎƎļƢŨƎǈɆŨįɆbëķŝëǂþțŏėɆëŝĐɆQƎėŒëŝĐș 203 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Note 2021 £m 2020 £m Other operating income 14.6 12.2 Dividends received 192.5 – Operating expense 5 (16.5) (11.5) {ƋėƎëƢļŝİɆƋƎŨǘƢɆĈėįŨƎėɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖ 190.6 0.7 Separately disclosed items 6 (12.1) (31.2) ƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƢëǇɆëŝĐɆŝėƢɆǘŝëŝĉėɆėǇƋėŝƖė 178.5 (30.5) Finance expense 7 (3.5) (2.8) Finance income 7 14.4 22.9 EëļŝƖȦȩŒŨƖƖėƖȪɆëƎļƖļŝİɆįƎŨśɆĉķëŝİėɆļŝɆįëļƎɆǁëŒƪėɆŨįɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 7 77.4 (59.8) Losses arising from foreign exchange on debt instruments 7 (0.1) (10.5) ƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƢëǇ 266.7 (80.7) Income Tax 8 0.6 – ƎŨǘƢȦȩŒŨƖƖȪɆįŨƎɆƢķėɆǈėëƎ 267.3 (80.7) All items included above relate to continuing operations. There were no other items of comprehensive income in the year. ¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǥǣǪɆƢŨɆǥǤǤɆįŨƎśɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș Company income statement for the year ended 31 December 2021 Entain plc | Annual Report 2021 204 Financial statements Note 2021 £m 2020 £m Assets Non-current assets Investments 10 4,372.1 4,008.6 Trade and other receivables 11 650.9 – Interest bearing loans and borrowings 13 6.8 6.7 5,029.8 4,015.3 Current assets Trade and other receivables 11 97.5 1,013.6 $ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆëƖƖėƢƖ 57.3 – Interest bearing loans and borrowings 13 – 0.6 Cash and cash equivalents 0.3 2.9 155.1 1,017.1 Total assets 5,184.9 5,032.4 Liabilities Current liabilities Trade and other payables 12 (744.3) (875.3) $ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆŒļëĈļŒļƢǈɆ (7.5) (26.0) (751.8) (901.3) pėƢɆĉƪƎƎėŝƢɆȩŒļëĈļŒļƢļėƖȪȦëƖƖėƢƖ (596.7) 115.8 Non-current liabilities Trade and other payables 12 (594.0) (566.9) (594.0) (566.9) Net assets 3,839.1 3,564.2 Shareholders’ equity Called up share capital 15 4.8 4.8 Share premium account 1,207.3 1,206.6 Merger reserve 2,527.4 2,527.4 Retained earnings 99.6 (174.6) ¶ŨƢëŒɆƖķëƎėķŨŒĐėƎƖȼɆėƍƪļƢǈ 3,839.1 3,564.2 ½ŝĐėƎɆƢķėɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩɆƖėĉƢļŨŝɆǧǬɆȩQƖŒėɆŨįɆnëŝȪȚɆƢķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆŨśƋëŝǈɆƖëƢļƖǘėƖɆƢķėɆƖŨŒǁėŝĉǈɆƢėƖƢɆįŨƎɆ distributions to be made. ¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǥǣǪɆƢŨɆǥǤǤɆëƎėɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș ¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨŝɆƋëİėƖɆǥǣǧɆƢŨɆǥǤǤɆǂėƎėɆëƋƋƎŨǁėĐɆĈǈɆƢķėɆŨëƎĐɆŨįɆ$ļƎėĉƢŨƎƖɆŨŝɆǦɆnëƎĉķɆǥǣǥǥɆëŝĐɆƖļİŝėĐɆŨŝɆļƢƖɆĈėķëŒįɆĈǈ J Nygaard-Andersen R Wood ķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎɆ $ėƋƪƢǈɆķļėįɆ,ǇėĉƪƢļǁėɆ{įǘĉėƎȦķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎ Company balance sheet (Company number 4685V) at 31 December 2021 205 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Called up share capital £m Share premium account £m Merger Reserve account £m Retained earnings £m Total £m At January 2020 4.8 1,198.0 2,527.4 (106.0) 3,624.2 Loss for the year – – – (80.7) (80.7) Total comprehensive expense – – – (80.7) (80.7) Share options exercised – 8.6 – – 8.6 Share-based payments charge – – – 12.1 12.1 At 31 December 2020 4.8 1,206.6 2,527.4 (174.6) 3,564.2 ƎŨǘƢɆįŨƎɆƢķėɆǈėëƎ – – – 267.3 267.3 Total comprehensive expense – – – 267.3 267.3 Share options exercised – 0.7 – – 0.7 Share-based payments charge – – – 6.9 6.9 At 31 December 2021 4.8 1,207.3 2,527.4 99.6 3,839.1 ¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǥǣǪɆƢŨɆǥǤǤɆįŨƎśɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș Company statement of changes in equity for the year ended 31 December 2021 Entain plc | Annual Report 2021 206 Financial statements ǤɆEėŝėƎëŒɆļŝįŨƎśëƢļŨŝ ,ŝƢëļŝɆdɆȩȹƢķėɆŨśƋëŝǈȺȪɆļƖɆëɆŒļśļƢėĐɆĉŨśƋëŝǈɆļŝĉŨƎƋŨƎëƢėĐɆëŝĐɆĐŨśļĉļŒėĐɆļŝɆƢķėɆQƖŒėɆŨįɆnëŝșɆ¶ķėɆëĐĐƎėƖƖɆŨįɆļƢƖɆƎėİļƖƢėƎėĐɆŨįǘĉėɆëŝĐɆ principal place of business is disclosed in the Directors’ report. ¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆŨśƋëŝǈɆįŨƎɆƢķėɆǈėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆǂėƎėɆëƪƢķŨƎļƖėĐɆįŨƎɆļƖƖƪėɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆëɆƎėƖŨŒƪƢļŨŝɆ of the Directors on 3 March 2022. ¶ķėɆŨśƋëŝǈɆķëƖɆƢëŏėŝɆëĐǁëŝƢëİėɆŨįɆƢķėɆėǇėśƋƢļŨŝɆįƎŨśɆƋƎėƋëƎļŝİɆëɆĉëƖķɆǙŨǂɆƖƢëƢėśėŝƢɆƪŝĐėƎɆƋëƎëİƎëƋķɆǫȩİȪɆŨįɆƢķėɆĐļƖĉŒŨƖƪƎėɆ exemptions from EU-adopted IFRS for qualifying entities included in Financial Reporting Standard 101 Reduced Disclosure Framework ȩD¡©ɆǤǣǤȪșɆ¶ķėɆ,ŝƢëļŝɆdɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆįŨƎɆƢķėɆǈėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆĉŨŝƢëļŝɆëɆĉŨŝƖŨŒļĐëƢėĐɆƖƢëƢėśėŝƢɆŨįɆ ĉëƖķɆǙŨǂƖș The Company is exempt under paragraph 8(k) of the disclosure exemptions from EU-adopted IFRS included in FRS 101 for qualifying entities from disclosing related party transactions with entities that form part of the Entain PLC group of which Entain PLC is the ultimate parent undertaking. ¶ķėɆŨśƋëŝǈȼƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆƋƎėƖėŝƢėĐɆļŝɆŨƪŝĐƖɆ©ƢėƎŒļŝİɆȩɞȪșɆŒŒɆǁëŒƪėƖɆëƎėɆļŝɆśļŒŒļŨŝƖɆȩɞśȪɆƎŨƪŝĐėĐɆƢŨɆŨŝėɆĐėĉļśëŒɆƋŒëĉėɆ ėǇĉėƋƢɆǂķėƎėɆŨƢķėƎǂļƖėɆļŝĐļĉëƢėĐșɆ¶ķėɆŨśƋëŝǈȼƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆļŝĐļǁļĐƪëŒɆėŝƢļƢǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș ǥɆëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝ ¶ķėƖėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆǂėƎėɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆD¡©ɆǤǣǤɆëŝĐɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩșɆ¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ ëƎėɆƋƎėƋëƎėĐɆŨŝɆëɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆƪŝĐėƎɆƢķėɆķļƖƢŨƎļĉëŒɆĉŨƖƢɆĉŨŝǁėŝƢļŨŝɆėǇĉėƋƢɆįŨƎɆĉėƎƢëļŝɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėșɆ DŨƎɆĐėƢëļŒƖɆŨŝɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĉŨŝƖļĐėƎëƢļŨŝƖɆśëĐėȚɆƖėėɆŝŨƢėɆǥɆŨįɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș ¶ķėɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆǂķļĉķɆįŨŒŒŨǂɆļŝɆŝŨƢėɆǦɆƖėƢɆŨƪƢɆƢķŨƖėɆƋŨŒļĉļėƖɆǂķļĉķɆëƋƋŒǈɆļŝɆƋƎėƋëƎļŝİɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆįŨƎɆƢķėɆǈėëƎɆėŝĐėĐɆ 31 December 2021 and have been applied consistently to all years presented. The Company has taken advantage of the following disclosure exemptions under FRS 101 in respect of: (a) IFRS 3 Business Combinations; (b) the requirements of IFRS 7 Financial Instruments: Disclosures; (c) IFRS 13 Fair Value Measurement; (d) Share-based payments; (e) Intra-Group-related party transactions; (f) Related party transactions. DŨƎɆĐėƢëļŒƖɆŨįɆëƪĐļƢɆįėėƖȚɆƖėėɆŝŨƢėɆǪɆŨįɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș ¶ķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆļĐėŝƢļǘėĐɆƢķëƢɆļƢɆļƖɆëƋƋƎŨƋƎļëƢėɆƢŨɆƋƎėƖėŝƢɆƢķėɆśëŌŨƎļƢǈɆŨįɆëśŨƪŝƢƖɆŨǂėĐɆĈǈɆŨƢķėƎɆEƎŨƪƋɆƪŝĐėƎƢëŏļŝİƖɆëƖɆŝŨŝȯĉƪƎƎėŝƢɆ assets; this is on the basis that whilst all amounts due from Group companies are repayable on demand the expectation is that only £97.5m will be settled within one year of the balance sheet date. In making this assessment in the current year, the Directors have ļĐėŝƢļǘėĐɆƢķëƢɆƢķėɆśëŌŨƎļƢǈɆŨįɆƢķėɆɞǤȚǣǣǬșǫśɆëśŨƪŝƢɆƎėĉėļǁëĈŒėɆįƎŨśɆEƎŨƪƋɆĉŨśƋëŝļėƖɆļŝɆƢķėɆĉŨśƋëƎëƢļǁėɆƋėƎļŨĐɆƖķŨƪŒĐɆëŒƖŨɆķëǁėɆĈėėŝɆ ƋƎėƖėŝƢėĐɆëƖɆŝŨŝȯĉƪƎƎėŝƢɆëƖƖėƢƖșɆ¶ķėɆ$ļƎėĉƢŨƎƖɆĉŨŝƖļĐėƎɆƢķëƢɆƢķėɆŏėǈɆśėƢƎļĉƖɆƢŨɆƢķėɆƪƖėƎƖɆŨįɆƢķėɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆƢŨƢëŒɆ ëƖƖėƢƖɆëŝĐɆŝėƢɆëƖƖėƢƖɆëŝĐɆëƖɆƢķļƖɆĉķëŝİėɆķëƖɆŝŨɆļśƋëĉƢɆŨŝɆėļƢķėƎɆŨįɆƢķėƖėɆśėƢƎļĉƖȚɆëŝĐɆŝŨɆļśƋëĉƢɆŨŝɆƢķėɆŨśƋëŝǈȼƖɆƎėƋŨƎƢėĐɆƋƎŨǘƢɆŨƎɆ ŒŨëŝɆĉŨǁėŝëŝƢƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėɆļśƋëĉƢɆŨŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļƖɆŝŨƢɆśëƢėƎļëŒɆëŝĐɆƢķėƎėįŨƎėɆƢķėɆƋƎļŨƎɆǈėëƎɆ balance has not been restated. ǦɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ Investments Investments comprise interests in subsidiary companies and are held as non-current assets stated at cost less provision for impairment. The Company assesses these investments for impairment wherever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. If any such indication of impairment exists, the Company makes an estimate of the recoverable amount. If the recoverable amount is less than the value of the investment, the investment is considered to be impaired and is written down to its recoverable amount. An impairment loss is recognised immediately in the income statement. ëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖ Cash and short term deposits in the balance sheet consist of cash at banks and in hand, short-term deposits with an original maturity of less than three months. Financial assets Financial assets are recognised when the Company becomes party to the contracts that give rise to them. ¶ķėɆŨśƋëŝǈɆĉŒëƖƖļǘėƖɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆļŝĉėƋƢļŨŝɆëƖɆėļƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆįëļƎɆǁëŒƪėɆŨƎɆŒŨëŝƖɆëŝĐɆƎėĉėļǁëĈŒėƖșɆDļŝëŝĉļëŒɆëƖƖėƢƖɆ ëƢɆįëļƎɆǁëŒƪėɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆëƎėɆśėëƖƪƎėĐɆļŝļƢļëŒŒǈɆëƢɆįëļƎɆǁëŒƪėȚɆǂļƢķɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖɆƢëŏėŝɆĐļƎėĉƢŒǈɆƢŨɆļŝĉŨśėɆƖƢëƢėśėŝƢșɆ Subsequently, the fair values are remeasured and gains and losses from changes therein are recognised in the income statement. pŨƢėƖɆƢŨɆƢķėɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ for the year ended 31 December 2021 207 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǦɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) Financial assets (continued) dŨëŝƖɆëŝĐɆƎėĉėļǁëĈŒėƖɆëƎėɆŝŨŝȯĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆëƖƖėƢƖɆǂļƢķɆǘǇėĐɆŨƎɆĐėƢėƎśļŝëĈŒėɆƋëǈśėŝƢƖɆƢķëƢɆëƎėɆŝŨƢɆƍƪŨƢėĐɆļŝɆëŝɆëĉƢļǁėɆśëƎŏėƢșɆ On initial recognition, loans and receivables are measured at fair value plus directly attributable transaction costs. Subsequently, such assets are measured at amortised cost, using the effective interest (EIR) method, less any allowance for impairment. Financial liabilities DļŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆĉŨśƋƎļƖėɆƋƎėĐŨśļŝëŝƢŒǈɆëśŨƪŝƢƖɆĐƪėɆƢŨɆŨƢķėƎɆEƎŨƪƋɆĉŨśƋëŝļėƖșɆ{ŝɆļŝļƢļëŒɆƎėĉŨİŝļƢļŨŝȚɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆëƎėɆ śėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆƋŒƪƖɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖɆǂķėƎėɆƢķėǈɆëƎėɆŝŨƢɆĉëƢėİŨƎļƖėĐɆëƖɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆëƢɆįëļƎɆǁëŒƪėɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖșɆ DļŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆëƢɆįëļƎɆǁëŒƪėɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆëƎėɆśėëƖƪƎėĐɆļŝļƢļëŒŒǈɆëƢɆįëļƎɆǁëŒƪėȚɆǂļƢķɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖɆƢëŏėŝɆĐļƎėĉƢŒǈɆƢŨɆƢķėɆ income statement. Subsequently, the fair values are remeasured and gains and losses from changes therein are recognised in the income statement. $ėƎėĉŨİŝļƢļŨŝɆŨįɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆ DļŝëŝĉļëŒɆëƖƖėƢƖɆëƎėɆĐėƎėĉŨİŝļƖėĐɆǂķėŝɆƢķėɆƎļİķƢɆƢŨɆƎėĉėļǁėɆĉëƖķɆǙŨǂƖɆįƎŨśɆƢķėɆëƖƖėƢƖɆķëƖɆėǇƋļƎėĐɆŨƎɆǂķėŝɆƢķėɆŨśƋëŝǈɆķëƖɆƢƎëŝƖįėƎƎėĐɆ ļƢƖɆĉŨŝƢƎëĉƢƪëŒɆƎļİķƢɆƢŨɆƎėĉėļǁėɆƢķėɆĉëƖķɆǙŨǂƖɆįƎŨśɆƢķėɆǘŝëŝĉļëŒɆëƖƖėƢƖɆŨƎɆķëƖɆëƖƖƪśėĐɆëŝɆŨĈŒļİëƢļŨŝɆƢŨɆƋëǈɆƢķėɆƎėĉėļǁėĐɆĉëƖķɆǙŨǂƖɆļŝɆįƪŒŒɆ without material delay to a third party, and either: – Substantially all the risks and rewards of ownership have been transferred; or – Substantially all the risks and rewards have neither been retained nor transferred but control is not retained. Financial liabilities are derecognised when the obligation is discharged, cancelled or expires. ƪƎƎėŝƢɆëŝĐɆĐėįėƎƎėĐɆļŝĉŨśėɆƢëǇ The Company is tax resident in the United Kingdom. The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in shareholders’ funds. In this case, the tax is also recognised in other comprehensive income or directly in shareholders’ funds, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying ëśŨƪŝƢƖɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆLŨǂėǁėƎȚɆĐėįėƎƎėĐɆƢëǇɆŒļëĈļŒļƢļėƖɆëƎėɆŝŨƢɆƎėĉŨİŝļƖėĐɆļįɆƢķėǈɆëƎļƖėɆįƎŨśɆƢķėɆļŝļƢļëŒɆƎėĉŨİŝļƢļŨŝɆŨįɆ goodwill; or arise from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the ƢƎëŝƖëĉƢļŨŝɆëįįėĉƢƖɆŝėļƢķėƎɆëĉĉŨƪŝƢļŝİɆŝŨƎɆƢëǇëĈŒėɆƋƎŨǘƢɆŨƎɆŒŨƖƖș Deferred income tax is recognised using the tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply then the related deferred income tax asset is realised or the deferred income tax liability is settled. $ėįėƎƎėĐɆƢëǇɆëƖƖėƢƖɆëƎėɆŨŝŒǈɆƎėĉŨİŝļƖėĐɆƢŨɆƢķėɆėǇƢėŝƢɆļƢɆļƖɆƋƎŨĈëĈŒėɆƢķëƢɆƢķėƎėɆǂļŒŒɆĈėɆƖƪļƢëĈŒėɆƢëǇëĈŒėɆƋƎŨǘƢƖɆįƎŨśɆǂķļĉķɆƢķėǈɆĉëŝɆ be recovered. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Deferred tax balances are not discounted. Foreign currency translation Transactions in foreign currencies are initially recorded in Pounds Sterling (£) at the foreign currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into Pounds Sterling (£) at the rates of exchange ruling at the balance sheet date (the closing rate). Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was determined. Dividends DļŝëŒɆĐļǁļĐėŝĐƖɆƋƎŨƋŨƖėĐɆĈǈɆƢķėɆŨëƎĐɆŨįɆ$ļƎėĉƢŨƎƖɆëŝĐɆƪŝƋëļĐɆëƢɆƢķėɆǈėëƎɆėŝĐɆëƎėɆŝŨƢɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƪŝƢļŒɆƢķėǈɆ have been approved by shareholders at the Annual General Meeting. Interim dividends are recognised when paid. pŨƢėƖɆƢŨɆƢķėɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 208 Financial statements ǦɆ©ƪśśëƎǈɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued) Equity instruments Equity instruments issued by the Company are recorded at the proceeds received net of direct issue costs. ©ķëƎėȯĈëƖėĐɆƋëǈśėŝƢƖ The cost of equity settled transactions with employees is measured by reference to the fair value at the date on which they are granted ȩƖėėɆŝŨƢėɆǦǤɆŨįɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆįŨƎɆįƪƎƢķėƎɆĐėƢëļŒƖȪș The cost of equity settled transactions is recharged to the respective employing entities. Separately disclosed items ¶ŨɆëƖƖļƖƢɆļŝɆƪŝĐėƎƖƢëŝĐļŝİɆļƢƖɆƪŝĐėƎŒǈļŝİɆƋėƎįŨƎśëŝĉėȚɆƢķėɆŨśƋëŝǈɆķëƖɆĐėǘŝėĐɆƢķėɆįŨŒŒŨǂļŝİɆļƢėśƖɆŨįɆƋƎėȯƢëǇɆļŝĉŨśėɆëŝĐɆėǇƋėŝƖėɆëƖɆ ƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆëƖɆƢķėǈɆƎėǙėĉƢɆļƢėśƖɆǂķļĉķɆëƎėɆėǇĉėƋƢļŨŝëŒɆļŝɆŝëƢƪƎėɆŨƎɆƖļǒėș The separate disclosure of these items allows a clearer understanding of the trading performance on a consistent and comparable ĈëƖļƖȚɆƢŨİėƢķėƎɆǂļƢķɆëŝɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆėįįėĉƢɆŨįɆŝŨŝȯƎėĉƪƎƎļŝİɆŨƎɆŒëƎİėɆļŝĐļǁļĐƪëŒɆƢƎëŝƖëĉƢļŨŝƖɆƪƋŨŝɆƢķėɆŨǁėƎëŒŒɆƋƎŨǘƢëĈļŒļƢǈɆŨįɆ the Company. ¶ķėɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖɆķëǁėɆĈėėŝɆļŝĉŒƪĐėĐɆǂļƢķļŝɆƢķėɆëƋƋƎŨƋƎļëƢėɆĉŒëƖƖļǘĉëƢļŨŝƖɆļŝɆƢķėɆļŝĉŨśėɆƖƢëƢėśėŝƢșɆDƪƎƢķėƎɆĐėƢëļŒƖɆëƎėɆ given in note 6. DļŝëŝĉėɆėǇƋėŝƖėɆëŝĐɆļŝĉŨśė DļŝëŝĉėɆėǇƋėŝƖėɆëŝĐɆļŝĉŨśėɆëƎļƖļŝİɆŨŝɆļŝƢėƎėƖƢɆĈėëƎļŝİɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆĉëƎƎļėĐɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢɆëƎėɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆļŝĉŨśėɆ statement using the effective interest rate method. Finance expense includes the amortisation of fees that are an integral part of the ėįįėĉƢļǁėɆǘŝëŝĉėɆĉŨƖƢɆŨįɆëɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢȚɆļŝĉŒƪĐļŝİɆļƖƖƪėɆĉŨƖƢƖȚɆëŝĐɆƢķėɆëśŨƎƢļƖëƢļŨŝɆŨįɆëŝǈɆŨƢķėƎɆĐļįįėƎėŝĉėƖɆĈėƢǂėėŝɆƢķėɆëśŨƪŝƢɆ ļŝļƢļëŒŒǈɆƎėĉŨİŝļƖėĐɆëŝĐɆƢķėɆƎėĐėśƋƢļŨŝɆƋƎļĉėșɆŒŒɆǘŝëŝĉėɆėǇƋėŝƖėƖɆëƎėɆƎėĉŨİŝļƖėĐɆŨǁėƎɆƢķėɆëǁëļŒëĈļŒļƢǈɆƋėƎļŨĐș ǧɆƪĐİėśėŝƢƖɆëŝĐɆŏėǈɆƖŨƪƎĉėƖɆŨįɆėƖƢļśëƢļŨŝɆƪŝĉėƎƢëļŝƢǈ ¶ķėɆƋƎėƋëƎëƢļŨŝɆŨįɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƎėƍƪļƎėƖɆśëŝëİėśėŝƢɆƢŨɆśëŏėɆëƖƖƪśƋƢļŨŝƖȚɆėƖƢļśëƢėƖɆëŝĐɆŌƪĐİėśėŝƢƖɆƢķëƢɆëįįėĉƢɆƢķėɆëśŨƪŝƢƖɆ reported as assets and liabilities as at the balance sheet date and the amounts reported as revenues and expenses during the year. Use of available information and application of judgement are inherent in the formation of estimates. Actual results in the future may differ from those reported. In this regard, management believes that the accounting policies where estimation is applied are those that relate to: Investment in subsidiaries The carrying value of investments is calculated as the initial cost at recognition less any provisions for impairment. The values used in any impairment review are based on the same principles and methods as described in the Group accounting policies and in note 14 of the Consolidated Financial Statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised. ǨɆ{ƋėƎëƢļŝİɆƋƎŨǘƢɆĈėįŨƎėɆƖėƋëƎëƢėŒǈɆĐļƖĉŒŨƖėĐɆļƢėśƖ This is stated after crediting/(charging): 2021 £m 2020 £m Management fees 14.6 12.2 Audit fees (0.6) (0.6) 6 Separately disclosed items 2021 £m 2020 £m Integration costs – 0.2 Legal and onerous contract provisions 4.5 6.2 Movement in fair value of contingent consideration 2.3 19.5 Issue costs write off 5.3 5.3 12.1 31.2 209 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 ǪɆDļŝëŝĉėɆėǇƋėŝƖėɆëŝĐɆļŝĉŨśė 2021 £m 2020 £m Loan interest income 5.9 7.0 Intercompany interest 8.5 15.9 Loan interest expense (3.5) (2.8) EëļŝƖȦȩŒŨƖƖėƖȪɆëƎļƖļŝİɆįƎŨśɆĉķëŝİėɆļŝɆįëļƎɆǁëŒƪėɆŨįɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 77.4 (59.8) Losses arising from foreign exchange on debt instruments (0.1) (10.5) pėƢɆǘŝëŝĉėɆļŝĉŨśėȦȩėǇƋėŝƖėȪ 88.2 (50.2) ǫɆQŝĉŨśėɆƢëǇ The tax credit for the year presented is £0.6m (2020: £nil). ɆƎėĉŨŝĉļŒļëƢļŨŝɆŨįɆļŝĉŨśėɆƢëǇɆëƋƋŒļĉëĈŒėɆƢŨɆƋƎŨǘƢɆȩǥǣǥǣțɆŒŨƖƖȪɆĈėįŨƎėɆƢëǇɆëƢɆƢķėɆ½bɆƖƢëƢƪƢŨƎǈɆļŝĉŨśėɆƢëǇɆƎëƢėɆƢŨɆƢķėɆļŝĉŨśėɆƢëǇɆįŨƎɆƢķėɆ years ended 31 December 2021 and 31 December 2020 is as follows: 2021 £m 2020 £m ƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƢëǇ 266.7 (80.7) Corporate tax credit thereon at 19.00% 50.7 (15.3) Adjusted for the effects of: – Non-taxable income (36.6) (4.3) – Non-deductible expenses 1.5 6.8 – Group relief claimed (15.6) – – Tax losses carried forward – 12.8 – Overseas tax credit (0.6) – Income tax credit (0.6) – There is no deferred tax present on the balance sheet for either periods presented. 9 Dividends Please see note 11 of the Consolidated Financial Statements. 10 Investments Total £m Cost and net book value At 1 January 2020 3,950.9 Additions 57.7 At 31 December 2020 4,008.6 Cost and net book value At 1 January 2021 4,008.6 Additions 363.5 At 31 December 2021 4,372.1 Subsidiaries and other related entities are listed in note 34 of the Consolidated Financial Statements. Additions in the year predominantly relate to the acquisition of Enlabs. pŨƢėƖɆƢŨɆƢķėɆŨśƋëŝǈɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued for the year ended 31 December 2021 Entain plc | Annual Report 2021 210 Financial statements ǤǤɆ¶ƎëĐėɆëŝĐɆŨƢķėƎɆƎėĉėļǁëĈŒėƖ 2021 £m 2020 £m Amounts due from Group companies 742.6 1,009.8 Other debtors 3.3 1.6 Prepayments 2.5 2.2 748.4 1,013.6 śŨƪŝƢƖɆŨįɆɞǩǨǣșǬśɆȩǥǣǥǣțɆɞŝļŒȪɆëƎėɆŝŨƢɆėǇƋėĉƢėĐɆƢŨɆĈėɆĉëŒŒėĐɆƪƋŨŝɆǂļƢķļŝɆƢķėɆŝėǇƢɆǤǥɆśŨŝƢķƖɆįŨŒŒŨǂļŝİɆƢķėɆëƋƋƎŨǁëŒɆŨįɆƢķėƖėɆǘŝëŝĉļëŒɆ ƖƢëƢėśėŝƢƖɆëŝĐɆķëǁėɆƢķėƎėįŨƎėɆĈėėŝɆĉŒëƖƖļǘėĐɆëƖɆŝŨŝȯĉƪƎƎėŝƢɆëƖƖėƢƖɆǂļƢķļŝɆƢķėɆëŒëŝĉėɆ©ķėėƢș Other amounts owed by other Group undertakings are included under amounts falling due within one year as they are repayable on demand, unsecured, and accumulate interest in a range between 0% and 4% plus IBOR. ǤǥɆ¶ƎëĐėɆëŝĐɆŨƢķėƎɆƋëǈëĈŒėƖ 2021 £m 2020 £m Current Amounts due to Group companies 739.5 872.8 Other payables 4.8 2.5 744.3 875.3 Non-Current Amounts due to Group companies 594.0 566.9 Amounts owed to other Group undertakings are included under amounts falling due within one year as they are repayable on demand, unsecured, and accumulate interest in a range between 0% and 4% plus IBOR. ǤǦɆQŝƢėƎėƖƢɆĈėëƎļŝİɆŒŨëŝƖɆëŝĐɆĈŨƎƎŨǂļŝİƖ 2021 £m 2020 £m Current Euro denominated loans – 2.1 USD denominated loans – (0.1) Sterling denominated loans – (2.6) – (0.6) Non-current Euro denominated loans – – USD denominated loans – – Sterling denominated loans (6.8) (6.7) (6.8) (6.7) As at 31 December 2021 there were £590.0m (2020: £535.0m) of committed bank facilities against which £51.0m (2020: £55.0m) has been utilised for letters of credit. Of the remaining balance £nil (2020: £nil) was drawn down. Fees in the year relating to the undrawn facility were £6.8m (2020: £6.7m). ǤǧɆDļŝëŝĉļëŒɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖ ¶ķėɆǘŝëŝĉļëŒɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖɆëƋƋŒļėĐɆĈǈɆƢķėɆŨśƋëŝǈɆëƎėɆļŝɆŒļŝėɆǂļƢķɆƢķŨƖėɆŨįɆƢķėɆEƎŨƪƋɆëƖɆĐļƖĉŒŨƖėĐɆļŝɆŝŨƢėɆǥǨɆ to the Consolidated Financial Statements. ǤǨɆëŒŒėĐɆƪƋɆƖķëƎėɆĉëƋļƢëŒ Details of the share capital of the Company are given in note 28 of the Consolidated Financial Statements. 16 Related party transactions The Company has taken advantage of the exemption under paragraph 8(k) of FRS 101 not to disclose transactions with fellow wholly- owned subsidiaries. See note 34 of the Consolidated Financial Statements for disclosure of remuneration of key management personnel. 17 Subsequent Events For details of subsequent events affecting the Company, see note 36 of the Consolidated Financial Statements. 211 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Glossary $ėǘŝļƢļŨŝɆŨįɆƢėƎśƖ $ėǘŝļƢļŨŝɆŨįɆƢėƎśƖ AAMS Automated accounts management systems ĐŌƪƖƢėĐɆįƪŒŒǈɆĐļŒƪƢėĐɆ,©ɆĉėŝƢƖ Fully diluted earnings per share based on adjusted PBT ĐŌƪƖƢėĐɆ¶ ƎŨǘƢɆĈėįŨƎėɆėǇĉėƋƢļŨŝëŒɆļƢėśƖȚɆëśŨƎƢļƖëƢļŨŝɆëƖƖŨĉļëƢėĐɆǂļƢķɆëĉƍƪļƖļƢļŨŝȚɆĐļǁļĐėŝĐƖɆįƎŨśɆƋƎėǁļŨƪƖŒǈɆ sold businesses AR Augmented reality ARC™ Advanced Responsibility and Care ™, the Group’s safer betting and gaming technology programme B2B Business-to-business B2C Business-to-consumer BI Business intelligence CAGR Compound annual growth rate CGUs Cash-generating units CMS Customer marketing services Constant currency basis Each month in the prior period re-translated at the current periods exchange rate Contribution ¡ėǁėŝƪėɆŒėƖƖɆĈėƢƢļŝİɆƢëǇėƖȚɆƋëǈśėŝƢɆƖėƎǁļĉėɆƋƎŨǁļĐėƎɆįėėƖȚɆƖŨįƢǂëƎėɆƎŨǈëŒƢļėƖȚɆëįǘŒļëƢėɆĉŨśśļƖƖļŨŝƖȚɆ revenue share and marketing costs Contribution margin Contribution as a percentage of NGR CRM Customer relationship management CS Customer services DTR Disclosure and transparency rules EPS Earnings per share ESG Environmental, social and governance GGY Gross gaming revenue GHG Greenhouse gas EÔɆȦɆEÔɆLŨŒĐļŝİƖɆd The Group’s former name before becoming Entain plc in December 2021 H2GC H2 Gambling Capital – independent providers of betting and gaming market data and estimates IA Internal audit and risk management IAS International Accounting Standards IFRS International Financial Reporting Standards IOT Internet of things KPIs Key performance indicators KYC bŝŨǂɆǈŨƪƎɆĉƪƖƢŨśėƎɆȱɆĉƪƖƢŨśėƎɆǁėƎļǘĉëƢļŨŝɆƢŨŨŒƖɆ Ladbrokes Coral Ladbrokes Coral Group Plc LTIP Long-term incentive plan MIP Management incentive plan Net debt ëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆȩļŝĉŒƪĐļŝİɆëśŨƪŝƢƖɆƎėĉŨƎĐėĐɆëƖɆëƖƖėƢƖɆļŝɆĐļƖƋŨƖëŒɆİƎŨƪƋƖɆĉŒëƖƖļǘėĐɆëƖɆ held for sale), less customer liabilities less interest bearing loans and borrowings Net Gaming Revenue (“NGR”) Revenue before deducting VAT NGR YTD Net Gaming Revenue in the year to date RET Research, education and treatment associated with responsible gambling Revenue Net Gaming Revenue less VAT (imposed by certain EU jurisdictions on either sports or gaming revenue) Sports Gross Win Margin Sports wagers less payouts Sports Gross Win Margin % Sports Gross Win Margin divided by Sports wagers Sports Net Gaming Revenue (“Sports NGR”) Sports Gross Win Margin less free bets and promotional bonuses Sports Wagers Gross bets placed by customers on sporting events TCFD Taskforce for Climate-related Financial Disclosures Underlying EBITDA Stated pre separately disclosed items VR Virtual reality Entain plc | Annual Report 2021 212 Financial statements Company name Entain plc Company number 4685V ©ėĉƎėƢëƎǈɆëŝĐɆƎėİļƖƢėƎėĐɇŨįǘĉė Emily Carey Entain plc 32 Athol Street Douglas Isle of Man IM1 1JB Telephone: +350 200 78700 ǂǂǂșėŝƢëļŝİƎŨƪƋșĉŨś ½bɆLėëĐɆ{įǘĉė One New Change London EC4M 9AF Registrars Link Asset Services The Registry 34 Beckenham Road Beckenham BR3 4TU www.linkgroup.eu/get-in-touch/ shareholders-in-uk-companies Telephone: 0871 664 0300 from the UK or +44 (0)371 664 0300 from outside the UK ,śëļŒțɆƖķëƎėķŨŒĐėƎėŝƍƪļƎļėƖʀŒļŝŏİƎŨƪƋșĉŨșƪŏ Auditors KPMG LLP St Nicholas House 31 Park Row Nottingham NG1 6FQ Legal advisors DƎėƖķǘėŒĐƖɆƎƪĉŏķëƪƖɆ$ėƎļŝİėƎ DQ Advocates Principal UK Bankers Barclays Bank PLC The Royal Bank of Scotland plc Future trading updates ëŝĐɆǘŝëŝĉļëŒɆĉëŒėŝĐëƎ 7 April Q1 trading update 7 July Post close trading update 11 August Interim results 13 October Q3 trading update Corporate information Shareholder information Annual General Meeting The Company’s 2022 AGM will be held on Friday 24 June at 10:00 at The Brewery, 52 Chiswell Street, London EC1Y 4SD. Details of each resolution to be considered at the meeting and voting instructions will be provided in the Notice of Meeting that will be available on the Company’s website at ǂǂǂșėŝƢëļŝİƎŨƪƋșĉŨśșɆ ¶ķėɇǁŨƢļŝİɆƎėƖƪŒƢƖɆŨįɆƢķėɆǥǣǥǥɆEnɆǂļŒŒɆ be available on the Company’s website at ǂǂǂșėŝƢëļŝİƎŨƪƋșĉŨś shortly after the meeting. Communications Information about the Company, including ǘŝëŝĉļëŒɆƎėƖƪŒƢƖɆëŝĐɆĐėƢëļŒƖɆŨįɆƢķėɆĉƪƎƎėŝƢɆ share price, is available on the website, ǂǂǂșėŝƢëļŝİƎŨƪƋșĉŨśș ©ķëƎėķŨŒĐļŝİɆĉŨŝƢëĉƢƖ For any queries regarding your shareholding, please contact our registrars Link Asset Services. ©ķëƎėɆįƎëƪĐɆǂëƎŝļŝİ Fraudsters use persuasive and high- pressure tactics to lure investors into scams. They may offer to sell shares that turn out to be worthless or non-existent, or to buy ƖķëƎėƖɆëƢɆëŝɆļŝǙëƢėĐɆƋƎļĉėɆļŝɆƎėƢƪƎŝɆįŨƎɆëŝɆ ƪƋįƎŨŝƢɆƋëǈśėŝƢșɆÕķļŒėɆķļİķɆƋƎŨǘƢƖɆëƎėɆ promised, if you buy or sell shares in this way you will probably lose your money. Should you receive any unsolicited calls or documents to this effect, you are advised not to give out any personal details or to hand over any money without ensuring that the organisation is authorised by the UK Financial Conduct Authority (“FCA”) and undertaking further research. If you are unsure or you think you have been targeted, you should report the organisation to the FCA. For further information, please visit the FCA’s website at www.fca.org.uk, ėśëļŒɆĉŨŝƖƪśėƎșƍƪėƎļėƖʀįĉëșŨƎİșƪŏɆŨƎɆĉëŒŒɆ the FCA consumer helpline on 0800 111 6768 (freephone), 0300 500 8082 (from the UK) or +44 20 7066 1000 (if calling from outside the UK). 213 Overview | Strategic report | Governance | Financial statements Entain plc | Annual Report 2021 Entain plc Incorporated in the Isle of Man under number 4685V ǂǂǂșėŝƢëļŝİƎŨƪƋșĉŨś Design and production by Radley Yeldar | ry.com Paper: Claro silk Printed by Pureprint Group. This report has been printed on paper ǂķļĉķɆļƖɆĉėƎƢļǘėĐɆĈǈɆƢķėɆDŨƎėƖƢɆ©ƢėǂëƎĐƖķļƋɆŨƪŝĉļŒ ® . The paper ļƖɆ,ŒėśėŝƢëŒɆķŒŨƎļŝėɆDƎėėɆȩ,DȪɆśëĐėɇëƢɆëɆśļŒŒɆǂļƢķɆQ©{ɆǤǧǣǣǤɆ environmental management system accreditation. This report was produced using the pureprint ® environmental print technology, a guaranteed, low carbon, low waste, independently audited ƋƎŨĉėƖƖɆƢķëƢɇƎėĐƪĉėƖɆƢķėɆėŝǁļƎŨŝśėŝƢëŒɆļśƋëĉƢɆŨįɆƢķėɆƋƎļŝƢļŝİɆ process. Printed using vegetable oil based inks by a CarbonNeutral ® ƋƎļŝƢėƎɆĉėƎƢļǘėĐɆƢŨɆQ©{ɆǤǧǣǣǤɆėŝǁļƎŨŝśėŝƢëŒɆśëŝëİėśėŝƢɆƖǈƖƢėśș The paper used in this report has been Carbon Balanced with The World Land Trust. CBP00019082504183028

AI Terminal

More from Entain PLC

Talk to a Data Expert