Rank : Annual report and accounts 2021

Unlocking our growth potential

Annual Report 2021

Our business

A unique blend of experiences, branded venues and digital channels in the UK and Spain

Our branded venues and digital channels

72 Mecca branded venues

Mecca is Rank's community-gaming brand for the British market. A national portfolio of 72 venues offering bingo, slot machine games, great value food and drink, and live entertainment.

Mecca digital channels

The digital channel offers a range of popular games like bingo, a wide range of slot games and table games.

52 Grosvenor branded venues

The UK's largest multi-channel casino operator with 52 venues. The brand offers a range of casino table games, including roulette, blackjack, baccarat and poker as well as electronic roulette and slot machine games.

Grosvenor digital channels

The brand's complementary digital channel offers many popular games, including its successful live casino, in addition to a sports betting offer.

10 Enracha branded venues Enracha is Rank's community-gamingbusiness for the Spanish market. Ten venues offering a range of popular community games like bingo and poker as well as electronic casino and slot games, great value food and drink, and live entertainment.

Enracha digital channels

Enracha also has a small complementary digital offer.

Our digital only brands

The Group operates the market-leading digital bingo brand, YoBingo, to the Spanish market alongside its recently launched digital casino offer, YoCasino.

In addition to its established brands the Group also operates multiple digital brands using a combination of proprietary and non-proprietary licensed software providing online bingo, casino and slot gaming.

Omni-channel - extending the customer experience

Our omni-channel aim is to provide a seamless, continuous and personalised customer experience across any device or venue they wish to visit.

Our markets

Split of LFL net gaming revenue ('NGR')

1.

UK

2.

1. Venues  £134.4m
2. Digital channels  £156.3m

Split of LFL net gaming revenue ('NGR')

1.

Spain

2.

1. Venues  £17.5m
2. Digital channels  £21.1m

Who we are

Over the course of more than three-quarters of a century, the Group has entertained many millions of customers in Britain and around the world. The Group's story is one of iconic brands and talented people.

Our purpose

To work together to create exciting environments that reflect the changing needs and expectations of our customers and colleagues, delivering stimulating and exciting experiences every time, to excite and to entertain.

Our ambition

To become a £1bn revenue international gaming company by 2023, through transforming our business and consistently exceeding our customer and shareholder expectations.

2021 business highlights

Financial

Like-for-like ('LFL') underlying net gaming revenue ('NGR')

£288.2m

LFL underlying operating loss

£(67.0)m

Cash and available facilities

£98.0m

Underlying loss per share

(20.3)p

Strategic

• Next phase of the Group's transformation (Transformation
  2.0) is well underway with three- year plans now being implemented for each business unit
• Rank is fully engaged with UK Government regarding its review of gambling legislation, focusing on opportunities for land-based casinos and bingo

Operational

• Strong focus on preserving cash and ensuring the Group has sufficient liquidity to emerge from the pandemic in a position of strength
• Successful equity placing at 90p per share raised £70.0m of additional liquidity
• New £25.0m RCF secured in July 2021, further increasing Group liquidity
• Good progress made in developing the Group's proprietary digital platform, with the bellacasino brand successfully migrated in the year. Mecca and Grosvenor brand migrations to be delayed until 2021/22 to ensure appropriate level of sophistication in place regarding customer affordability journeys
• Preparation for the successful reopening of our venues with new products and services
• Group back to generating cash post venues reopening in May 2021

Sustainability

• ESG materiality assessment has been completed, and work commenced on a Group-wide sustainability strategy
• Key safer gambling initiatives delivered in the year included the introduction of machine loss and time limits in Grosvenor venues, the integration of ID scan technology in Grosvenor's venues and the strict application of affordability controls in digital
• Significant community efforts in the year ranging from the provision of over 210,000 free meals for vulnerable members of our local communities and NHS and emergency workers to raising over £450,000 for charitable causes

Contents

Overview

IC Our business

01 Unlocking our growth potential

Strategic Report 08 Chair's letter

1. Chief Executive's review

1. Our strategy to unlock our growth potential

1. Our key performance indicators

1. Our external environment

1. Our business model

1. How we create long-term value

1. Financial review

1. Alternative performance measures

1. Risk management

1. Compliance statements

Governance Report

1. Chair's introduction to governance

1. Unlocking our growth potential
2. • At a glance

1. 2018 Code compliance statement
2. How we are governed

80 Our Board

84 Unlocking our growth potential

- A year in review

1. Nominations Committee Report

1. Audit Committee Report

1. Finance Committee Report

1. ESG & Safer Gambling Committee Report

1. Remuneration Committee Report

1. Directors' Report

1. Directors' responsibilities

Financial Statements

1. Independent auditor's report

1. Group income statement
2. Group statement of comprehensive income
3. Balance sheets

1. Statements of changes in equity

1. Statements of cash flow
2. Notes to the financial statements

1. Five year review
2. Shareholder information

Unlocking our growth potential

During a year of unprecedented disruption to our business we took the right decisions to initially protect and, in the second half of the year, prepare ready for a return to growth

Left:

Bill Floydd

Chief Financial Officer

Right:

John O'Reilly

Chief Executive

Annual Report 2021

OVERVIEW

STATEMENTS FINANCIALREPORT GOVERNANCEREPORT STRATEGIC

01