A WINNING HAND…
Annual Report & Accounts 2002 1 Financial Highlights
2 Business Structure
4 Chairman’s Statement
5 Key Facts
6 Chief Executive’s Review
7 The Aces in our Pack
8 Gaming – Mecca Bingo
10 Gaming – Grosvenor Casinos
12 Gaming – Interactive 
14 Hard Rock
16 Deluxe – Film Laboratories
18 Deluxe – Media Services
20 Employees
22 Board of Directors
23 Operating and Financial Review
32 Directors’ Report
34 Remuneration Report
40 Corporate Governance
42 Directors’ Responsibilities
43 Independent Report of the Auditors
44 Group Profit and Loss Account
45 Balance Sheets
46 Group Cash Flow Statement
47 Group Recognised Gains and Losses
47 Movements in Group Shareholders’ Funds
48 Accounting Policies
50 Notes to the Accounts
73 Principal Subsidiary Undertakings
74 Five Year Review
75 Shareholder Information
76 Summary Notice of AGM
76 2003 Financial Calendar
CONTENTS ● Earnings per share before exceptionals 
up 21% to 19.9p
● Profit before tax and exceptionals of
£200.3m (2001 – £188.1m); £198.0m 
after exceptionals (2001 – £160.5m)
● Gaming
*
turnover up 8% to £472.1m and
operating profit up 13% to £109.8m
● Hard Rock operating profit of £27.6m 
(2001 – £38.0m), reflecting difficult
trading conditions
● Deluxe operating profit before exceptionals
up 20% to £89.0m; Ritek acquisition
integrated successfully
● Final dividend up 5% to 8.8p (2001 – 8.4p)
making a total for the year of 13.2p 
(2001 – 12.6p)
● Net debt of £399.1m (2001 – £248.1m);
fixed charge cover up to 5.0 times
● Acquisition of Blue Square provides the 
Group with the full suite of gaming and
betting products ahead of deregulation
*
excluding Rank Interactive Gaming
1 The Rank Group Plc
FINANCIAL HIGHLIGHTS HARD ROCK CASINOS ARE A NEW CONCEPT
FROM GROSVENOR CASINOS – RUN AND
MANAGED BY GROSVENOR STAFF AND
BRANDED HARD ROCK, THEY ARE DESIGNED 
TO APPEAL TO A YOUNGER AUDIENCE.
THE FIRST HARD ROCK CASINO OPENED IN
MANCHESTER IN JULY 2002 FOLLOWED BY
ONE IN LONDON IN NOVEMBER 2002 ♦ The London Hard Rock Casino is just 
off Leicester Square in a listed building.
Many of the period features were retained 
and have been complemented by the 
historic music memorabilia which adorns 
the walls and ceiling
♦ Specific to the Hard Rock casinos are large
plasma screens continuously showing an
excellent collection of music videos 
♦ Recent legislation permitting live
entertainment in casinos will allow
the use of the venue’s stage where 
bands can perform live
♦ A variety of fashionable merchandise 
is available from Hard Rock casinos ♦ Recent liberalisation of regulations has
allowed alcohol on the gaming floor –
waitresses serve drinks so that the customers
can continue to play
♦ Electronic Roulette is very popular with
customers and has been installed across 
the entire Grosvenor Casino estate
♦ Hard Rock casinos feature the same games 
as other Grosvenor casinos – black jack,
roulette and stud poker
♦ Progressive Stud Poker was introduced in
September 2002 and Grosvenor was the first
operator to link across its UK casinos  OVER 30,000 MEMBERS HAVE JOINED THE 
TWO HARD ROCK CASINOS SINCE OPENING
A TOTAL OF OVER 6,000 CUSTOMERS 
EACH WEEK
A HIGH PROPORTION OF YOUNG PLAYERS 
AGED 18-34
EXCELLENT LOCATIONS WHICH SHOULD
BENEFIT FROM DEREGULATION  THREE MAJOR DIVISIONS,
MARKET LEADING POSITIONS
OTHER OPERATIONS
US Holidays
US Holidays comprises timeshare operations, campgrounds 
and a hotel.
Universal Studios – Hotels
Rank has a 25% equity interest in three hotels at Universal Studios
Escape, Orlando, Florida – Portofino Bay Hotel, Hard Rock Hotel 
and Royal Pacific Resort Hotel.
Universal Studios – Japan
Rank has a 10% equity interest.Theme park opened 2001.
GAMING
TURNOVER £474.5M
OPERATING PROFIT
*
£104.8M
*Including Interactive Gaming
GAMING OPERATIONS
Mecca Bingo
123 clubs in the UK and 9 in Spain 
Grosvenor Casinos
5 in London, 27 UK provincial and 2 in Belgium 
Hard Rock Casinos
2 Hard Rock Casinos in London and Manchester
Rank Interactive Gaming and Sports Betting
www.rank.com, www.bluesq.com and www.hardrockcasino.com
Rank Leisure Machine Services
Operates 35,000 amusement machines in UK leisure venues
Stafferton Way, Maidenhead, Berks SL6 1AY Tel: 01628 504000 
www.meccabingo.com
www.grosvenor-casinos.co.uk
www.rank.com
www.bluesq.com
www.hardrockcasino.com
www.gamblingreview.co.uk
2 The Rank Group Plc
BUSINESS STRUCTURE
● Gaming
● Hard Rock
● Deluxe
● Holidays
● Acquisitions
Turnover by division % 3 The Rank Group Plc
Operating proﬁt by division %
● Gaming
● Hard Rock
● Deluxe
● Holidays
● Acquisitions
HARD ROCK
TURNOVER £242.7M
OPERATING PROFIT £27.6M
HARD ROCK OPERATIONS
Hard Rock Cafes
61 company-owned, 48 franchised in a total of 38 countries
Hard Rock Hotels and Casinos
Joint venture hotel in Orlando, while Bali and Thailand operate 
under licence. Two resort casinos and hotels under development 
on Indian reservation land in Florida, each operating under licence
Hard Rock Live
Concert venues in Orlando, Mexico City, Bali and Guadalajara
Merchandise
Variety of branded merchandise available at all Hard Rock locations
and via the website, www.hardrock.com
6100 Old Park Lane, Orlando, Florida 32835, US
Tel: 001 407 445 7625 
www.hardrock.com
DELUXE
TURNOVER £704.2M
OPERATING PROFIT £89.0M
DELUXE OPERATIONS
Deluxe Film Processing
Laboratories in Canada, US, UK, Spain, Italy and Australia
1377 North Serrano Avenue, Hollywood, CA 90027, US
Tel: 001 323 462 6171
Deluxe Media Services 
Video duplication in US and Europe
DVD replication in US and Europe
Distribution and supply chain services in US and Europe
Digital services business in California
555 Heuhl Road, Northbrook, IL 60062, US 
Tel: 001 847 291 1150
www.bydeluxe.com 4 The Rank Group Plc
CHAIRMAN’S STATEMENT
I AM DELIGHTED THAT THE GROUP’S PERFORMANCE 
IN 2002 HAS CONTINUED TO DEMONSTRATE THE 
STRENGTH OF OUR BUSINESS STRA TEGY AND RANK’S
EXECUTIVE MANAGEMENT TEAM BY DELIVERING A 
FURTHER INCREASE IN BOTH EARNINGS AND DIVIDENDS 
FOR SHAREHOLDERS
Alun Cathcart 
Going forward, the Group’s ability to continue to deliver consistent
growth in shareholder value will be heavily inﬂuenced by the presence
of a number of key attributes. First and foremost is a committed
executive management team with the necessary skills and experience
to communicate and deliver a cohesive business strategy.This team
has successfully transformed the business over the last three years
into one of Europe’s leading leisure groups. This transformation 
has been driven by strong operational management who have
themselves embraced a programme of change and development.
Second, continuous training and development of employees is
particularly important for businesses operating in competitive markets,
and where constant innovation is required to maintain market position
and increase levels of proﬁtability.The Group prides itself on ensuring
that its employees are fully equipped to learn and develop new
working practices, and provide customers with the best possible leisure
experience. While each of the Group’s divisions operates in different
markets, they share a common philosophy that having the best people
delivers the best results and each continues to invest in a regular
programme of training and development for all its employees.
Third, being able to recruit and then retain the best people is also 
a critical factor behind the Group’s success and is a reflection of 
the various incentive schemes that are now in place across all of 
the Group’s operations. At senior levels, each scheme seeks to align
the interests of management with those of shareholders, thereby
ensuring that personal achievements are rewarded, but always 
in the context of the Group’s overall performance.
While the economic uncertainty continues to affect the immediate
outlook for many international companies, I believe that the Rank Group
has both the necessary management and business structure to continue
to prosper and I look forward to the coming year with conﬁdence. 69
million DVDs produced 
by Deluxe in 2002
75
thousand registered members 
with Rank Interactive Gaming
1
Rank is the ﬁrst UK group to offer
bingo, casinos and sports betting 
to its customers
25
million pounds staked with 
Blue Square in December 2002
4%
increase in number of members 
at Mecca Bingo clubs
15
thousand members at each of the 
two new Hard Rock casinos
13.2
pence dividend per share,
up 5% on last year
23
million visits to Mecca 
Bingo clubs
38
countries have Hard
Rock operations
23%
increase in Grosvenor Casinos
operating proﬁt
8%
increase in visits by 18-34 year 
olds to Mecca in 2002 
34
casinos
in the UK
21 %
increase in earnings 
per share
5
billion feet of ﬁlm processed 
by Deluxe in 2002
5 The Rank Group Plc
90
million pounds of annualised stakes 
at Rank Interactive Gaming 6 The Rank Group Plc
CHIEF EXECUTIVE’S REVIEW Mike Smith
Dividends per share p
2000 2001 2002
12.0p
12.6p
13.2p
This growth was achieved despite the impact of continued difﬁcult trading
conditions for Hard Rock. We also absorbed considerable pre-opening 
and launch costs associated with the opening of new facilities across
the Group, all of which will contribute to driving future growth.
Just as importantly, whilst continuing to improve earnings, we 
have continued our development activities within existing markets 
as well as extending our operations into new but related markets,
thereby enhancing prospects for the longer term.
Gaming
The Gaming division continued its now well-established trend 
of double digit profit improvement with a further gain of 13% 
in the year (excluding Rank Interactive Gaming). Grosvenor Casinos
enjoyed strong turnover and proﬁt growth despite the absorption 
of launch costs for the two Hard Rock casinos and the relocation 
of the casino in Brighton. In Mecca Bingo, we deliberately cut back
advertising and promotional expenditure in the second half so that,
overall, turnover growth was modest but trading margin was strong,
supported by the continued success of cashline bingo.
Rank Interactive Gaming, whilst loss-making in its first full year of
operation, launched hardrockcasino.com in July and bore the costs 
of considerable new product development.The annualised running
rate of stakes placed at year-end was £90m, which represented a high
rate of growth over the period.The integration of the recently acquired
Blue Square betting business will add further opportunities for growth
this year.
Hard Rock
As we had expected, Hard Rock had a difficult year. Whilst like for 
like food and beverage sales were a little ahead of 2001, merchandise
sales continued to suffer from a lack of tourist traffic. This severely
reduced proﬁts in the major cafe locations, particularly those located 
in tourist destinations.We also absorbed pre-opening costs associated
with new cafe openings, mainly in non-tourist locations. Trading
performance during the ﬁnal quarter of 2002 was more encouraging,
albeit against relatively weak comparative ﬁgures for 2001.
We have regularly reviewed our overheads and operating costs 
in Hard Rock. Given the continued uncertain trading environment,
we plan to take further action to reduce costs in the first half 
of 2003.
Deluxe
Deluxe had an exceptionally good year. Film processing was outstanding
with an 8% growth in turnover and 16% growth in profit before
exceptional items. The strong performance in 2002 was assisted by 
the full year impact of the new laboratory in Rome and efficiencies
from the relocated Toronto laboratory. Media Services also had a good
year overall and in particular benefited from the DVD venture with
Ritek, established in August 2002.
Developments
In Mecca Bingo, the relocation of the Croydon club was completed 
in November 2002 and there are plans for a further two relocations in
2003. A new club will also be opened during 2003 in West Bromwich.
In Spain, we acquired three new clubs during 2002 and continue to
look for further opportunities in this large and fragmented market.
Within Grosvenor Casinos, over the last few years we have relocated 
a total of seven casinos and plans are in place for a further three
relocations in 2003. Grosvenor’s performance in 2002 is a clear
demonstration that improving the quality of our facilities, combined
with gradual deregulation, is a potent mixture for growth.The two 
new Hard Rock casinos in the UK offer a greater entertainment 
2002 WAS ANOTHER GOOD YEAR FOR THE RANK 
GROUP . OUR ALL ROUND STRENGTH AND SPREAD 
OF ACTIVITIES ENABLED US TO CONTINUE TO MOVE 
PROFITS FORWARD AND INCREASE EARNINGS 
PER SHARE, BEFORE EXCEPTIONAL ITEMS, BY 21% 
(65% AFTER EXCEPTIONAL ITEMS) 7 The Rank Group Plc
THE ACES IN OUR PACK…
content and are attracting new customers to enjoy a different casino
experience.The rate of growth in club membership and attendance 
at these two exciting new concepts is one of the fastest ever achieved 
in the UK for new “cold”licence openings – over 15,000 members each
and combined attendance of over 6,000 per week.
The recent acquisition of Blue Square brings both sports betting
expertise and a substantial customer base to the Group. The
integration of Blue Square with Rank’s existing online gaming
operations will generate immediate synergy beneﬁts and provide
considerable opportunities for cross-marketing in both the short
and longer term.
Within Hard Rock, there were a number of developments which will 
add to future prospects and continue to move the brand beyond 
pure restaurant operations. During 2002, six new company-owned 
cafes were opened taking the total to 61 and two were relocated,
most being designed for local markets with lower dependence 
on tourism. A new franchise was added in Tokyo, taking the total
number of franchised cafes around the world to 48.The Hard Rock
hotel in Orlando traded strongly and the Chicago hotel is expected 
to open at the end of the year. A Hard Rock beach club adjacent 
to a newly built water park on Choctaw Indian Reservation land 
will open during this year. The gaming and hotel developments 
on Seminole Indian Nation Reservation land in Florida are in-build 
and are expected to open, at least partially, by the year-end.
In Deluxe Film, we finalised the commissioning of the new 
laboratory in Toronto, entered into a joint venture with Atlab in
Australia and more recently purchased Image, a laboratory based 
in Barcelona, Spain. All of these developments strengthen our
position in ﬁlm processing. The acquisition of Capital FX towards 
the end of 2002 has extended further the range of services now
offered to studio customers. We also bought the outstanding 
50% which we did not own of ETS, a physical film distribution
business, and subsequently added a major new customer on 
a long term contract.
In Deluxe Media, the major change was the creation of the new
venture with Ritek which propelled Deluxe into a strong position 
in DVD to match that already achieved in VHS and distribution.
We also established new ventures in the digital storage and
manipulation of ﬁlm-related product.
Financing
The Group’s operating proﬁle remains cash positive. However, during
2002 we chose to extend a number of our existing Deluxe contracts,
so securing valuable cashﬂows and increasing the earnings visibility for
that business. Approximately 63% of our ﬁlm contracts based on 2002
volume are now extended until 2006 or beyond. In line with industry
practice, the contract extensions or renewals did involve considerable
upfront payments which are recoverable over the life of the contracts.
These payments were the main reason why the Group’s net debt rose
by £151m in the year. However, with ﬁxed charge cover at ﬁve times and
gearing of 53%, the Group’s ﬁnances remain in excellent health.We are
recommending an increased dividend payment to our shareholders 
with the ﬁnal dividend up 5% to 8.8p (2001 – 8.4p) making a total for
the year of 13.2p (2001 – 12.6p).
Outlook
The Rank Group is in a strong position in all of its major markets and is
well-invested for future growth. Our ﬁnances are robust and we are in
an enviable ﬁnancial position with the ﬂexibility to seize development
opportunities as and when they might arise.
The UK regulatory regime in gaming has become increasingly
positive. Later opening of casinos plus additional games, more
automated product, and alcohol on the gaming ﬂoor, have all added 
to a more customer friendly environment. There remains a strong
likelihood that much more is to come in the next two years as we 
still expect the Budd recommendations to be enacted on schedule.
There is also the prospect of positive duty changes during this period.
Despite uncertain political and economic conditions, current trading 
is satisfactory and we are conﬁdent that the Group can make further
progress in 2003. 8 The Rank Group Plc
GAMING – MECCA BINGO
MECCA BINGO CONTINUES TO ENHANCE
ITS ESTA TE, CAPITALISE ON THE EFFECTS
OF DEREGULATION AND INVEST IN 
NEW GAMES
Above left
Mecca Bingo continues to invest in
its estate – the relocated Croydon
club opened in November 2002
Above right
Mecca has beneﬁted from early
deregulation and is now allowed
up to four jackpot machines per
bingo club
UK spend per head £ UK operating proﬁt £m
1999 2000 2001 2002
50.2
54.9
67.6
72.4
7.92
8.48
9.45
10.22
1999 2000 2001 2002 9 The Rank Group Plc
♦ Mecca is one of the UK’s leading bingo
businesses and during 2002 grew its
membership by 4% to 1.1m, 45% of 
whom are under 45 years old 
♦ The small reduction in total admissions
during 2002 was more than compensated 
for by the increase in spend per head 
which has risen by 8% to £10.22
♦ As a result, Mecca Bingo has managed 
to increase its proﬁt margin by a further 
1% to 31%
♦ Mecca has already installed a total of 
210 new jackpot machines across its estate
and the full target of 350 machines will be
installed by mid-2003
♦ The UK government has indicated that it is
keen to introduce a gross proﬁts tax to replace
the current regime of taxing bingo customer
stakes – a shift which, if the rate of gross proﬁts
tax is in line with other gaming activities,
Mecca believes will be positive for the industry
♦ In Spain, Mecca Bingo now has nine clubs
following the addition of three clubs in Madrid,
Barcelona and Seville 
Turnover £250.3m Operating Profit £77.0m 10 The Rank Group Plc
UK attendance ‘000 people
1999 2000 2001 2002
Above left
Grosvenor has installed Electronic
Roulette machines across its estate
to meet customer demand
Above right
Progressive Stud Poker was
launched in September 2002
3,279
3,368
3,344
3,614
UK operating proﬁt £m
1999 2000 2001 2002
17.5
21.0
23.4
29.9
GAMING – GROSVENOR CASINOS 11 The Rank Group Plc
♦ The relocation of seven casinos over the last
few years has helped to grow both admissions
and revenues across the estate during 2002
♦ This modest investment has yielded substantial
returns and a further three casinos will be
relocated in 2003
♦ The relaxation of a number of licence
restrictions has meant that Grosvenor casinos
are now allowed alcohol and live entertainment
on the gaming ﬂoor 
♦ Several new games have been introduced into
Grosvenor casinos including Sic-bo, Big Six
(Wheel of Fortune) and Three Card Stud Poker
♦ The introduction of Progressive Stud Poker 
has been extremely popular and Grosvenor
was the ﬁrst casino operator in the UK to link 
the game across its estate
♦ Two Hard Rock casinos were opened in the UK
during 2002, one in Manchester and one in
London, targeting a younger, lower spending
customer than the traditional casino offer
♦ Grosvenor now has over 400 Electronic Roulette
positions across its estate with plans for a
further 50 positions by the end of April 2003
♦ Rank Leisure Machine Services operates some
35,000 amusement machines in UK leisure venues
THE POPULARITY OF ELECTRONIC 
ROULETTE TOGETHER WITH RELOCA TIONS
AND REFURBISHMENTS HA VE INCREASED
A TTENDANCE AND SPEND PER HEAD
TO RECORD LEVELS 
Turnover £171.8m Operating Proﬁt £29.7m Registered customers *
January 2002 December 2002
5,461
77,156
Monthly stakes *
January 2002 December 2002
£0.4m
£7.4m
12 The Rank Group Plc
Above left
Blue Square is one of the UK’s
leading sports betting brands
Above right
Fruit Frenzy II is one of the 18
games available at www.rank.com
THE GROUP CAN NOW OFFER THE 
FULL SUITE OF GAMING PRODUCTS 
ONLINE TO ALL ITS CUSTOMERS
GAMING – INTERACTIVE
*combined total for rank.com and hardrockcasino.com 13 The Rank Group Plc
♦ Following the launch of hardrockcasino.com 
in July 2002, the Group’s two gaming 
sites are now generating annualised stakes 
of approximately £90m
♦ Having acquired Blue Square in January 2003,
the Group has three online gaming brands:
rank.com, hardrockcasino.com and bluesq.com
♦ Rank is the only mainstream gaming company
able to offer a full suite of gaming products:
betting, bingo and casino games
♦ The integration of Blue Square and Rank’s
existing online activities has created a
substantial business with annualised stakes 
of approximately £400m based on current
levels of business
♦ The excellent ﬁt with Rank’s existing online
gaming activities provides an immediate and
substantial opportunity to cross-sell products 
to Rank’s existing 1.8m registered customers
and Blue Square’s 300,000 customers
♦ Post-deregulation, there should be a major
opportunity to leverage Rank’s gaming activities
through the creation of multi-gaming locations
Turnover £2.4m
*
Operating Loss £5.0m
* Gross win 14 The Rank Group Plc
HARD ROCK
Number of cafes worldwide
Above left
Attracting more local customers
has proved successful during 2002 –
Hard Rock Cafe, Manchester
Above right
The Hard Rock Hotel in Orlando is
extremely popular and other hotel
opportunities are being sought
95
101
108
109
Revenue £m
239.9
260.2
248.4
242.7
1999 2000 2001 2002 1999 2000 2001 2002 15 The Rank Group Plc
♠ Hard Rock is one of the world’s leading leisure
brands with 61 owned and 48 franchised cafes
throughout the world
♠ Extending the brand through licensing into
other leisure activities including hotels and
casinos remains a core strategy
♠ The Hard Rock Hotel in Orlando is extremely
popular with very high occupancy levels and
has led the way for another hotel in Chicago
which is scheduled to open at the end of 2003
♠ The Seminole Indian Nation hotel/casino
developments in Tampa and Hollywood
Florida are progressing well and on-track 
to fully open in spring 2004 
♠ While low levels of tourism have impacted
performance in 2002, the planned expansion 
of European cafes has continued in non-tourist
locations with cafes opening in Munich,
Nottingham and Leeds
♠ In the US, new cafes opened in Austin,
Pittsburgh and Minneapolis
OUR ABILITY TO GENERATE ADDITIONAL
REVENUE SOURCES FROM RELATED
ACTIVITIES AROUND ONE OF THE
WORLD’S STRONGEST BRAND NAMES
WILL BE KEY TO FUTURE GROWTH
Turnover £242.7m Operating Proﬁt £27.6m 16 The Rank Group Plc
DELUXE – FILM PROCESSING
OPERATIONAL AND TECHNICAL
EXCELLENCE ARE KEY TO DELUXE
RETAINING ITS WORLD LEADING
POSITION IN THE GROWING FILM
PROCESSING BUSINESS 
Above left
Deluxe processed a record amount
of ﬁlm in 2002 – 4.7 billion feet 
Above right
Processed by Deluxe, Star Wars
Episode II – Attack of the Clones
was one of the major blockbuster
ﬁlms released during 2002
Average release prints per title
4,786
5,047
Operating proﬁt £m
53.9
62.5
3,868
4,144
1999 2000 2001 2002 1999 2000 2001 2002
48.6
48.0 17 The Rank Group Plc
Turnover £367.5m Operating Proﬁt £62.5m
 After renewing customer contracts in 
2002, Deluxe Film is in its strongest ever
contractual position
 The length of ﬁlms and number of prints
required increases year on year – the 
state-of-the-art laboratories in Toronto 
and Rome have enabled Deluxe to process 
this ever increasing footage to the high
standards required by their customers
 Many of the most popular film titles – 
Spider-Man – Star Wars Episode II – Attack of 
the Clones – James Bond’s Die Another Day –
were each processed and delivered to cinemas
by Deluxe, providing millions of people with
hours of quality entertainment
 Through its investment in EFILM, Deluxe 
can now offer its studio customers a 
specialist service which digitally enhances 
the film “masters”
 Deluxe Film has expanded its geographic
reach through a joint venture with Atlab,
the largest film processing business in
Australasia, and the acquisition of Image 
in Spain
 The acquisition of the remaining 50% of 
ETS, not already owned by the Group, will
strengthen Deluxe’s position in the physical
distribution of release prints
COURTESY OF LUCASFILM LTD. Star Wars: Episode II – Attack of the Clones © 2002 Lucasﬁlm Ltd. & 
TM
. All rights reserved. Used under authorisation. Unauthorised duplication is a violation of applicable law. DVD replication capacity 
(millions of units)
20
175
Number of DVD distributed 
(millions of units)
30
56
90
171
18 The Rank Group Plc
DELUXE – MEDIA SERVICES
Above left
Deluxe offers a wide variety 
of front and back-end digital
solutions and services, ranging
from digital mastering and asset
management to distribution
Above right
Deluxe Media Services produced 
69m DVDs in 2002 compared to 
6m in 2001
COURTESY OF LUCASFILM LTD. Star Wars: Episode II – Attack of the Clones © 2002 Lucasﬁlm Ltd. & 
TM
. All rights reserved. Used under authorisation. Unauthorised duplication is a violation of applicable law.
1999 2000 2001 2002 2001 2002 19 The Rank Group Plc
OUR 80% OWNED VENTURE 
WITH RITEK HAS MADE DELUXE THE 
FOURTH LARGEST DVD PRODUCER 
IN THE WORLD
Turnover £336.7m Operating Proﬁt £26.5m
 Following the venture with Ritek, Deluxe’s
DVD production has gone up from 6m in 2001
to 69m in 2002 and capacity has gone up
from 20m to 175m
 With the backup and support of Ritek’s
Taiwanese operations, Deluxe is in a very
strong position to bid for new large contracts
 DVD is growing at a much faster rate than
video production is declining
 Deluxe Media Services can offer a complete
supply chain solution to its customers
including authoring, replication, packaging 
and distribution
 In distribution, during 2002 Deluxe shipped 
a total of over 440m DVD and VHS units to
more than 70 countries
 Technological advancements have enabled
Deluxe Media Services to provide its
customers with digital storage, retrieval 
and delivery of films and TV material 20 The Rank Group Plc
Top left:
Mecca Bingo
Top right:
Grosvenor Casinos 
Bottom left:
Hard Rock Cafe 
Bottom right:
Deluxe DVD production
EMPLOYEES 21 The Rank Group Plc
Employees
While overall responsibility for human resources is maintained at the
Group’s head ofﬁce in London, the diversity of both geography and
business activity necessitates that each business has day-to-day
responsibility for looking after its own people. However, a number 
of core themes emerge within each division, reﬂecting the Group’s
philosophy regarding recruitment and selection, diversity, productivity,
training and development and retention. Some examples can be found
by reviewing each division’s activity during 2002.
Gaming
The need to remain at the forefront of what is becoming an increasingly
competitive gaming environment requires regular and comprehensive
training and development for employees on both existing and new
gaming products.The division’s ability to both innovate new games and
products such as Progressive Stud Poker in its casinos and electronic
bingo in Mecca Bingo, and then roll them out across the gaming estate 
in a time effective manner is a key factor behind the division’s continued
success. As a result, a training system that was pioneered within
Mecca Bingo is now being implemented across Grosvenor Casinos.
This system ensures that all employees have access to the latest training
updates and can undergo training when it suits them and at their 
own pace. The result is a consistent delivery of high quality service
and professionalism to all the division’s gaming customers.
Similarly, in RLMS, the division’s amusement machine business, as new
gaming products have been launched, the service operations provided
to business customers have focused on the training of front line staff.
To support the new games and associated technology, 24 hour service
support has been provided, to ensure that clients are able to offer these
new products to their customers whatever the time of day or night.
Hard Rock
The Hard Rock brand is synonymous with great fun, great food and great
music. This is just as true for the division’s employees as it is for their
customers. Despite the difﬁcult trading conditions experienced during
2002, the division’s employees have continued to “serve all”and what’s
more, do it in true Hard Rock style – with a smile on their face! Hard Rock
is able to attract and retain the best employees because Hard Rock 
is a fun place to be, whether you are there to work or play. Let’s face it,
there aren’t many jobs where you can wear blue jeans, tattoos and 
body-piercings, all while listening to great Rock ‘n’ Roll all day! But, being 
a leading “employer-of-choice”comes not just from creating a great work
environment, it also relies on industry-leading training materials, beneﬁt
offerings and competitive salaries.
The division’s Human Resources and Operations activities have never
been closer business partners. Dubbed “The Year of the Product” , during
2002 continued training and development across all aspects of the
core restaurant business have focused on Hard Rock’s key selling
points: Menu, Merchandise, Music, Memorabilia and Memories.
Deluxe
Two of the highlights during 2002 were the acquisitions of Vision
Entertainment and the Ritek DVD business, which together put 
Deluxe ﬁrmly into the top tier of the entertainment media industry.
The smooth integration of both businesses is a testament to the 
HR team, placing new talent into the Deluxe culture, transitioning 
and reorganising functions, and educating and orientating new
employees on the division’s training programmes and policies.
Training and employee development remains one of the division’s
critical success factors. Development opportunities include the
Leadership Programme, Team Lead Mentoring, Employee Safety,
and Customer Focus Training. Steps to further improve internal
communication were fostered in the shape of more two-way dialogue
with open forum meetings such as Off the Cuff/Roundtable Meetings,
Beneﬁt Focus Groups, Beneﬁt Fairs, All Hands Meetings, and monthly 
KPI (Key Performance Indicator) Meetings.
As a major international leisure business, employing staff that 
share a similar passion for excellent service, and above all fun, requires
careful management and investment. The Group’s success to date
demonstrates that its strategy of continuing to invest in its people 
is one that is paying real dividends and as such can be expected 
to continue.
Health and safety 
The Group undertakes an annual assessment of the health and safety
risks facing its divisions. Senior management in each division speciﬁcally
considers health and safety issues as part of this exercise. Actions that
may be required to improve the control of health and safety risks are
identiﬁed and then actioned.
To ensure that the divisions continue to address health and safety
issues, an external audit of safety management systems across the
Group was undertaken in 2002. The results of the audit have been
used to direct actions at Group and divisional level to improve
current practice.
The board takes an active role in monitoring safety performance,
assisted by risk management groups in Europe and in North America
responsible for the co-ordination of health and safety standards across
the Group. The activities of these groups are already promoting the
sharing of good practice and the development of a strong network 
of safety professionals across the divisions.
THE GROUP HAS OVER 20,000 EMPLOYEES
IN OVER 11 COUNTRIES AND MANAGING
THIS KEY RESOURCE IS CRITICAL NOT ONL Y
TO THE CONTINUED SUCCESS OF EACH OF
ITS COMPONENT BUSINESSES, BUT ALSO
THA T OF THE GROUP AS A WHOLE 22 The Rank Group Plc
BOARD OF DIRECTORS
The board
Alun Cathcart Non-executive Chairman
Joined Rank as Chairman on 1 May 2001. Aged 59. Chairman of
Selfridges Plc, Deputy Chairman of Avis Europe Plc and Deputy
Chairman of Belron International Limited.
Mike Smith Chief Executive 
Appointed Chief Executive in April 1999. Aged 56. Formerly a
director of Hilton Group PLC.
Ian Dyson Finance Director 
Appointed Finance Director in September 1999. Aged 40. Formerly
Group Financial Controller of Hilton Group PLC and previously a
partner of Arthur Andersen.
Peter Jarvis, CBE Non-executive director 
An independent non-executive director since 1995. Aged 61.
Chairman of Debenhams PLC. Formerly Chief Executive of
Whitbread PLC.
Oliver Stocken Non-executive director 
An independent non-executive director since 1998. Aged 61.
Deputy Chairman of 3i Group plc, non-executive Chairman of
Rutland Trust PLC and Stanhope plc and a non-executive director 
of GUS PLC, Novar plc and Pilkington plc. Formerly Finance
Director of Barclays Bank PLC.
John Sunderland Non-executive director
An independent non-executive director since 1998. Aged 57.
Chief Executive Officer of Cadbury Schweppes plc.
Charles Cormick Company Secretary
Executive committee
Mike Smith
Ian Dyson
David Boden
Appointed Managing Director of Gaming in January 1998 and to the
Executive committee in January 1999. Formerly Managing Director 
of Grosvenor Casinos. Joined Rank in 1977. Director of The National
Bingo Game Association Limited. Aged 46.
Charles Cormick
Joined Rank as Company Secretary in 1995. A solicitor, and formerly
Company Secretary of Lex Service PLC. Aged 51.
Cyril Drabinsky
Appointed to the Executive committee in September 2001 
as President, Deluxe Film Worldwide. Formerly President,
Deluxe Laboratories Inc. Joined Rank in 1987. Aged 45. Based 
in Toronto, Ontario.
Peter Pacitti
Appointed to the Executive committee in September 2001 as
President, Deluxe Media Services Worldwide. Formerly Managing
Director, Deluxe Video Services Europe. Joined Rank in 1981.
Aged 45. Based in Chicago, Illinois.
Christine Ray
Appointed to the Executive committee as Group Human 
Resources Director in February 2001. Formerly Human Resources
Director of Rank’s Holidays Division, having joined Rank following 
the acquisition of Mecca Leisure in 1990. Aged 55.
Audit committee
Oliver Stocken – Chairman
Alun Cathcart 
Peter Jarvis
John Sunderland
Finance committee
Alun Cathcart – Chairman
Ian Dyson
Mike Smith
Nomination committee
The composition of this committee is determined according 
to the particular appointment under consideration.
Remuneration committee
Peter Jarvis – Chairman
Oliver Stocken
John Sunderland Summary of results
Turnover Profit before tax
2002 2001 2002 2001*
£m £m £m £m
Gaming 474.5 437.1 104.8 95.7
Hard Rock 242.7 248.4 27.6 38.0
Deluxe 704.2 634.6 89.0 74.1
US Holidays 43.2 46.8 8.1 9.5
Central costs and other – – (9.9) (7.6)
Continuing operations including acquisitions 1,464.6 1,366.9 219.6 209.7
Net income from associates and joint ventures 3.3 2.7
Managed businesses’ interest (22.6) (24.3)
Proﬁt before tax and exceptional items 200.3 188.1
Exceptional items (2.3) (27.6)
Proﬁt before tax 198.0 160.5
Basic earnings per share before exceptional items 19.9p 16.5p
Basic earnings per share 19.6p 11.9p
Dividend per share 13.2p 12.6p
*as restated for FRS 19.
Earnings per share before exceptional items of 19.9p was 21% ahead of last year, and 65% ahead after exceptional items. This improvement
reflects strong growth in Gaming and Deluxe, lower interest charges and a substantially reduced tax charge.
Group turnover was up 7% after including a £61.7m beneﬁt from acquisitions, in particular the Ritek transaction within Deluxe Media Services.
Turnover from existing operations was up 3%, reﬂecting strong growth in Gaming and Deluxe Film, offset by a weaker performance by Hard Rock
and adverse currency movements. The effect of the movement in exchange rates between 2001 and 2002 was to reduce turnover by £37 .8m.
Group operating profit before exceptional items was up 5%. Gaming had another excellent year with profit 13% ahead of 2001, before
accounting for a £5.0m loss at Rank Interactive Gaming. This result reﬂects both strong turnover growth and further improvement in operating
margins in both Mecca Bingo and Grosvenor Casinos. Deluxe Film proﬁt was up 16% due to an exceptional release schedule and a ﬁrst full year
of contribution from the new laboratory in Rome. Deluxe Media Services’ proﬁt was up 31%, helped by a ﬁrst time contribution of £4.3m from
the venture with Ritek and an improved result from distribution, which more than compensated for the decline in VHS volumes and margins.
As expected, Hard Rock experienced a difﬁcult year in the aftermath of the events of 11 September 2001. Operating proﬁt was down to £27.6m
from £38.0m in 2001 with low levels of travel and tourism having a direct impact on the cafe estate, particularly on merchandise sales.
Net interest payable before exceptional items was £1.7m lower than last year at £22.6m, despite higher average debt levels. This reflects a
substantial reduction in the average rate of interest. Net debt at the year end was £399.1m compared to £248.1m in 2001.
The following table sets out the divisional results and profit before tax after exceptional items.
Profit before tax
2002 2001
£m £m
Gaming 104.8 95.7
Hard Rock 27.6 38.0
Deluxe 82.8 36.6
US Holidays 8.1 9.5
Central costs and other (9.9) (7.6)
Continuing operations including acquisitions 213.4 172.2
Net income from associates and joint ventures 1.3 2.7
Non-operating items 5.9 9.9
Managed businesses’ interest (22.6) (24.3)
Profit before tax 198.0 160.5
The effective tax rate was 30.3% (2001 – 36.4%, after restating for FRS 19).
The board has recommended a final dividend of 8.8p, an increase of 5%, making a full year dividend of 13.2p (2001 – 12.6p).
23 The Rank Group Plc
OPERATING AND FINANCIAL REVIEW 24 The Rank Group Plc
OPERATING AND FINANCIAL REVIEW continued
Gaming
Turnover Operating profit
2002 2001 2002 2001
£m £m £m £m
Mecca Bingo – UK 231.7 225.7 72.4 67.6
– Spain 18.6 13.5 4.6 3.5
250.3 239.2 77.0 71.1
Grosvenor Casinos – UK 163.3 140.6 29.9 23.4
– Belgium 8.5 9.5 (0.2) 0.7
171.8 150.1 29.7 24.1
Rank Leisure Machine Services 50.0 47.8 3.1 2.3
Rank Interactive Gaming 2.4 – (5.0) (1.8)
474.5 437.1 104.8 95.7
The strong performance of the Gaming division continued during 2002 with profits up 13% before £5.0m of losses from Rank Interactive
Gaming. The division’s momentum for revenue growth was maintained during the year and, accompanied by a keen focus on cost control,
resulted in increased operating margins at each of Mecca Bingo, Grosvenor Casinos and Rank Leisure Machine Services.
Mecca Bingo
2002 2001 Change
UK Bingo statistics
Admissions (000s) 22,678 23,879 -5.0%
Spend per head (£) 10.22 9.45 8.0%
In the UK, Mecca Bingo continued the well-established trend 
of growth in both turnover and profit margins. During the year,
turnover increased by 3% and operating profit by 7%. The number 
of registered members increased by 4% to nearly 1.1m and although
admissions fell by 5%, this was more than compensated for by an 
8% increase in spend per head, continuing the pattern experienced
over the last few years. Mecca has been successful in attracting
younger, higher yielding customers, with 45% of the membership now aged below 44. These players tend to visit less frequently but spend
more per visit, especially on interval games, such as cashline bingo, and on machines, both of which attract high margins. The split of revenue 
by activity is shown below.
Analysis of UK bingo turnover
2002 2001
£m £m Change
Main stage bingo 47.1 48.7 -3%
Interval games 102.8 95.8 7%
Gaming machines 56.8 56.1 1%
Food and beverage 22.0 22.2 -1%
Other 3.0 2.9 3%
Total 231.7 225.7 3%
The roll-out of the recently permitted jackpot machines is continuing and is expected to further enhance machine revenue and profitability 
in the future. At the year end, 210 jackpot machines had been installed with plans for a total of 350 by the middle of 2003.
Mecca’s operating profit margin increased by a further 1% to 31% in 2002 despite an additional £3.5m in promotional costs, reflecting the
growth in interval games and machines and underlining the strength of cost controls within the business.
In Spain, Mecca’s bingo operations produced a strong year-on-year performance reflecting the inclusion for the first time of the three
additional clubs which were acquired during the ﬁrst half for net cash consideration of £15.0m, of which £9.2m was paid in 2002.The clubs
contributed £1.5m of operating profit in the year and have benefited from the introduction of Mecca’s UK expertise. 25 The Rank Group Plc
Grosvenor Casinos
Turnover Operating profit
2002 2001 2002 2001
£m £m £m £m
UK
London – upper 23.2 18.9 6.0 3.0
London – other 55.5 51.9 11.7 11.6
Provincial 83.3 69.8 22.7 16.5
Hard Rock 1.3 – (2.1) –
Overheads (8.4) (7.7)
163.3 140.6 29.9 23.4
Admissions Handle per head Win
2002 2001 2002 2001 2002 2001
000s 000s £ £ % %
UK
London – upper 54 47 2,062 2,271 20.9 17.6
London – other 647 629 469 409 17.1 18.9
Provincial 2,627 2,473 166 141 16.6 17.2
Grosvenor Casinos continues to benefit from the investment made over the last few years in relocating and refurbishing its casinos and 
from the enhancement of its product offering. Turnover was up 16% and operating profit increased 28%. This was despite a reduction in win
percentage that for the estate as a whole fell from 17.8% in 2001 to 17.2% in 2002.
In London, the Group’s two upper end casinos – the Clermont and the Park Tower – increased revenue by 23%, due largely to a much higher
win percentage, and doubled operating profit to £6.0m. The Park Tower is currently undergoing a major refurbishment that will extend its
gaming space by 40%. At the other London casinos – the Victoria, Gloucester and Connoisseur – while admissions were up 3%, handle per
head up 15% and turnover up 7%, operating profit was flat, partly reflecting increased costs associated with the introduction of later opening.
The provincial casinos delivered another impressive result in 2002. Admissions were up 6%, handle per head increased by 18% and turnover
was up by 19%, despite a lower win percentage of 16.6%. Operating profits increased by 38% to £22.7m. The Brighton casino was relocated
successfully and opened in August 2002.
The two new Hard Rock casinos opened during the second half of 2002 and incurred an operating loss of £2.1m, including pre-opening costs
of £1.4m. The first Hard Rock Casino opened in central Manchester in July, followed by the second casino which opened in November, just off
Leicester Square in the West End of London. Both casinos have enjoyed a strong start with impressive growth in both membership, now over
15,000 each, and also admissions, which for both casinos combined has reached over 6,000 per week.
The continued roll-out of electronic roulette is proving particularly successful and there are now a total of 420 machines across the Grosvenor
estate. Progressive Stud Poker, which links across Grosvenor casinos and was the ﬁrst of its type in the UK, was introduced in the fourth quarter
of 2002 and has proved popular to date.
Rank Leisure Machine Services
Operating profit at Rank Leisure Machine Services increased during the year to £3.1m (2001 – £2.3m).
Rank Interactive Gaming
Rank Interactive Gaming, comprising rank.com and hardrockcasino.com, continued to build its customer base in 2002. As at December 2002,
the business had over 75,000 registered customers and total stakes were running at an annualised rate of approximately £90m. The investment
in building market share together with start-up costs associated with hardrockcasino.com, which was launched in July 2002, resulted in an
operating loss of £5.0m for the year.
On 27 January 2003, the Group completed the acquisition of Blue Square Limited, one of the UK’s leading internet and telephone betting
businesses. The integration of Blue Square and Rank Interactive Gaming will create a substantial business with annualised stakes currently
running at approximately £400m. Annualised cost savings of approximately £5m per annum have already been identiﬁed as well as a number
of opportunities to cross-sell a variety of the games and betting products now available. 26 The Rank Group Plc
OPERATING AND FINANCIAL REVIEW continued
Hard Rock
Turnover Operating profit
2002 2001 2002 2001
£m £m £m £m
Owned cafes 230.4 233.3 29.2 41.5
Cafe franchise and other income 6.7 7.6 6.2 7.5
Hotel franchise and other income 3.3 3.3 3.8 2.3
Territory sales 2.3 4.2 2.3 4.2
Advertising and promotion – – (1.4) (1.7)
Overheads – – (12.5) (14.1)
Restructuring charge – – – (1.7)
242.7 248.4 27.6 38.0
Uncertainty in the international travel market during 2002 continued to impact the performance of Hard Rock and operating proﬁt fell 27% 
to £27.6m. The impact was particularly severe at some of the company-owned cafes where reduced levels of tourism contributed to a
substantial reduction in higher margin merchandise sales. In addition, pre-opening expenses were £1.9m higher than last year, reflecting the
opening of a further six cafes (Munich, Austin, Pittsburgh, Nottingham, Minneapolis and Leeds). During 2003, new cafes will open in Lisbon,
Cologne and Cardiff.
Like for like sales for the year as a whole were down 2.4% with food and beverage sales up 2.1%, a creditable result in the circumstances.
Merchandise sales were down 8.2%.
Hard Rock like for like sales
2002
First 8 weeks
half Q3 Q4 Total to 21.2.03
%%%%%
Total -6.3 -0.4 5.2 -2.4 -0.5
Food and beverage -1.7 4.7 8.1 2.1 2.6
Merchandise -12.3 -6.6 0.7 -8.2 -6.1
North America -5.1 0.8 3.6 -1.7 -1.1
Europe -11.9 -5.0 12.3 -5.2 2.3
Like for like trends improved considerably during the fourth quarter, albeit against relatively weak comparatives in 2001. Total sales were 
up 5.2% with food and beverage up 8.1%. Since the year end, after a good performance in January 2003, up 5.1%, like for like sales during
February were impacted by terrorist alerts in both the UK and the US, and by severe weather conditions in the northern states of the US.
Overall, for the eight weeks to 21 February 2003 like for like sales were down 0.5%.
Hotel franchise and other income contributed £3.8m in 2002, including a dividend of £1.4m from the Group’s 25% interest in the partnership
which owns three hotels in Orlando, including the Hard Rock Hotel. The development of new revenue streams from licensing the Hard Rock
brand to other leisure-related activities has made good progress. Following the completion of its financing arrangements in May 2002, the
Seminole Indian Nation development in Florida, comprising two new hotel and casino resorts, is now in-build and expected to open, at least
partially, by the year end. An arrangement with the Choctaw Indians for a beach club in Mississippi is now in place and is expected to open
later this year. In the longer term there is also a plan for a Hard Rock Hotel development on the same site. The new Hard Rock Hotel in Chicago
is scheduled to open at the end of 2003. These transactions demonstrate the value of the brand and we will continue to search for other
attractive opportunities.
Despite the receipt of a one-off site fee of £1.0m relating to the Choctaw development, territory fees fell by £1.9m during the year.
Deluxe
Turnover Operating profit*
2002 2001 2002 2001
£m £m £m £m
Film processing 367.5 341.5 62.5 53.9
Media services 336.7 293.1 26.5 20.2
704.2 634.6 89.0 74.1
Associates and joint ventures 1.8 1.1
90.8 75.2
*before exceptional items. 27 The Rank Group Plc
Film processing
Film processing had an exceptional year in 2002. A number of major blockbuster films were processed including Spider-Man, Star Wars
Episode II – Attack of the Clones, Lord of the Rings – The Two Towers, and James Bond – Die Another Day, contributing to a record year for 
the business. Film footage was up 16%, turnover 8% and operating profit 16%, helped by a full year’s contribution from the Rome laboratory
and the relocation of the Toronto laboratory which became fully operational in April 2002. The programme for 2003 looks strong and includes
Daredevil and Lord of the Rings – The Return of the King.
During 2002 Deluxe Film expanded its geographic coverage with the purchase of a new laboratory in Barcelona, acquired for £5.5m in
November 2002, and in Australia through a technical and marketing joint venture with Atlab, the largest ﬁlm processing business in Australasia.
These developments have further enhanced the position of the film business in Europe and also provided an entry point into the attractive
Asian market.
Deluxe also extended its range of services to studios through the acquisition of Capital FX and a 20% shareholding in EFILM. Capital FX was
acquired in November 2002 for £9.0m (of which £6.0m is deferred) and is a leading player in the UK laser sub-titling and digital effects market.
The 20% interest in EFILM, which is engaged in the digital production of film elements necessary for bulk film processing, was acquired in
July 2002. The results of Atlab and EFILM are recorded within Deluxe associates and joint ventures.
On 31 December 2002, the Group acquired the remaining 50% equity of ETS that it did not already own. ETS is a distributor of release prints
and trailers based in Los Angeles. The total consideration payable is up to £14.2m, of which £7.4m was paid in January 2003 and £6.8m is
deferred until later years. Of the deferred consideration, up to £1.6m is contingent upon the future performance of ETS. This brings the total
investment in ETS to £17.5m for 100% ownership.
The decision during the ﬁrst half to renew the majority of Deluxe’s major ﬁlm contracts has lengthened the average life of existing contracts
such that some 71% of 2002 actual volumes are now secure until 2005 and 63% until 2006. As stated at the time of the interim results,
the loss of the contract with Universal Studios will have an adverse impact on Film’s profits in the current year. However, we expect that
underlying growth in film footage, the effect of new acquisitions and a continuing drive to reduce costs, will mitigate the impact of the
contract loss on the results for 2003.
Media Services
Turnover Operating profit*
2002 2001 2002 2001
£m £m £m £m
Video duplication 178.9 212.1 18.1 23.6
DVD replication 55.7 12.6 2.3 (5.0)
Distribution services 90.8 68.4 5.3 1.6
Digital services 11.3 – 0.8 –
336.7 293.1 26.5 20.2
*before exceptional items.
After a number of years of declining turnover and proﬁt, Deluxe Media Services recorded a 31% growth in operating proﬁt in 2002.The Group
has made excellent progress in repositioning this business for the future, in particular through the formation of a new DVD replication venture
with Ritek Corporation of Taiwan. This venture combines the DVD assets of Deluxe and Ritek in North America and Europe and creates a major
force in the DVD market. Deluxe will pay a total of £33.8m to Ritek, spread over three years, for an 80% interest in the new venture which
contributed £4.3m to Deluxe operating proﬁt in 2002. The move into DVD, together with the continuing importance of distribution services and
the entry into digital services, means that, over time, Deluxe will become much less dependent upon the declining video duplication market.
The worldwide replication market for DVD was estimated at approximately 1.74bn units at the end of 2002, an increase of over 60%
compared with the previous year. The timing of the Ritek transaction meant that Deluxe was able to benefit from the inclusion of its share 
of the profits during the busiest time of the year in the run up to Christmas. Deluxe replicated 69m DVDs in 2002 (2001 – 6m), including
Star Wars Episode II – Attack of the Clones and Spider-Man. DVD revenues increased to £55.7m and the combined business produced an
operating profit of £2.3m.
The market for VHS continues to be difficult as consumers switch to using DVD as their primary home entertainment platform. Total volumes
were down by 10% while revenues were down by 16%, reﬂecting the continued price erosion being suffered as demand declines. During 2002,
Deluxe duplicated approximately 224m VHS cassettes (2001 – 250m). While this performance was better than the market as a whole, it was
not sufficient to prevent a fall in operating margin to 10.1% (2001 – 11.1%). The steady decline in VHS is expected to continue during 2003
and whilst we expect DVD volumes to grow strongly, the relative margins are such that overall profit for Deluxe Media Services is expected 
to decline in 2003.
With a capability to distribute both DVD and VHS, Deluxe has seen substantial volume growth within its distribution services business with
the number of DVDs distributed having increased by 90% to 171m (2001 – 90m). While the volume of VHS distributed declined by 20% to
272m, both revenue and profit from distribution activities increased substantially. 28 The Rank Group Plc
OPERATING AND FINANCIAL REVIEW continued
Digital services was formed in February 2002 following the acquisition of Vision Entertainment and the establishment of Deluxe Media Asset
Management. Having invested in some of the most sophisticated technologies in the industry, as well as the development of bespoke software,
the business has already secured a number of sizeable contracts to manage both physical as well as digital studio assets which are being securely
delivered to entertainment industry customers around the world.
Deluxe associates and joint ventures
These comprise the Group’s interests in EFILM, Atlab, The Lab, a front-end laboratory based in Toronto, and ETS (which became a 100% subsidiary
on 31 December 2002). Deluxe’s investments contributed £1.8m in 2002 (2001 – £1.1m).
US Holidays
The US Holidays business suffered from the reduced level of tourism but still managed a satisfactory result in the circumstances with operating
profit of £8.1m (2001 – £9.5m). The business generated net cash of £13.0m (2001 – £13.3m).
Central costs and other 
2002 2001
£m £m
Central costs (14.3) (10.2)
Other 4.4 2.6
(9.9) (7.6)
The increase in central costs is largely as a result of a £6.5m provision (2001 – £2.1m) in respect of the Group’s long term incentive plan for
key employees.
Associates and joint ventures
2002* 2001
£m £m
British Land 1.5 1.6
Deluxe associates and joint ventures 1.8 1.1
3.3 2.7
*before exceptional items.
The British Land joint venture ended with the disposal of all its remaining properties on 29 August 2002 for cash proceeds of £109m and net
cash proceeds, after financing, for the Group of £16.6m.
Managed businesses’ interest
2002 2001
£m £m
Interest payable and other charges 33.0 34.6
Interest receivable (9.5) (7.5)
Net profit on redemption of fixed rate debt (0.9) (2.8)
22.6 24.3
Average interest rate 5.5% 7.1%
Interest cover (times) 9.7 8.6
Fixed charge cover (times) 5.0 4.6
Managed businesses’ interest was £1.7m lower than 2001 reflecting a substantial reduction in the average rate of interest to 5.5% which
more than off-set the impact of higher levels of net debt.
Taxation
The Group has implemented Financial Reporting Standard (“FRS”) 19 “Deferred Tax” . This has resulted in an effective tax rate of 30.3%
(2001 – 36.4% as restated). The current tax rate is 15.6% (2001 – 17.0%). The effect of adopting FRS 19 is set out in note 5(c). 29 The Rank Group Plc
Exchange rates
The average exchange rates used and the net translation effect of changes in average exchange rates between 2001 and 2002 are summarised
in the table below.
Average exchange rate Impact on 2002
Operating
Turnover profit
2002 2001 £m £m
US dollar 1.51 1.43 (31.5) (4.1)
Canadian dollar 2.40 2.23 (8.3) (1.3)
Euro 1.59 1.61 2.0 0.2
(37.8) (5.2)
Gaming 0.4 0.1
Hard Rock (9.4) (0.9)
Deluxe (26.6) (4.0)
US Holidays (2.2) (0.4)
(37.8) (5.2)
Interest 0.8
Net impact on profit before tax (4.4)
Exceptional items
£m
Exceptional items within operating profit
– impairment of DVD assets within Deluxe (6.2)
Non-operating exceptional items 
– loss on disposal of continuing operations (0.8)
– net loss on disposal of fixed assets in joint ventures – discontinued (1.0)
– profit on disposal of interest in joint venture 7.7
Exceptional item within joint venture interest (2.0)
(2.3)
The exceptional charge in 2002 reﬂects an impairment of the value of Deluxe’s investment in the ex Pioneer DVD facility which crystallised as a
result of the venture with Ritek Corporation. The disposal of properties on ending the joint venture with British Land generated an exceptional
net proﬁt before interest of £6.7m and an exceptional £2.0m charge associated with the unwinding of a number of interest rate swaps.
Cash ﬂow
2002 2001
£m £m
Cash inflow from operating activities
Before Deluxe contract advances 242.3 233.4
Deluxe contract advances, net of repayments (135.0) 33.0
107.3 266.4
Capital expenditure (117.9) (103.3)
Fixed asset disposals 21.0 15.2
Operating cash flow 10.4 178.3
Distributions from associates and joint ventures – 2.4
Acquisitions and investments (57.5) (14.4)
Disposals (including sale and leaseback transactions) 18.9 52.9
(28.2) 219.2
Interest, tax and dividend payments (146.9) (151.1)
(175.1) 68.1
Group operating cash flow was £10.4m (2001 – £178.3m). The reduction in operating cash flow from 2001 is due to the up front payments
made during the first half of 2002 in relation to the extension of a number of contracts within Deluxe. The Group recorded net cash outflow
of £175.1m (2001 – inflow of £68.1m) in the year. 30 The Rank Group Plc
OPERATING AND FINANCIAL REVIEW continued
Capital expenditure 
2002 2001
£m £m
Gaming 60.0 48.5
Hard Rock 26.2 20.0
Deluxe 30.4 33.5
US Holidays 1.3 1.3
Total 117.9 103.3
Acquisitions and investments
£m
Purchase of subsidiaries (net of cash acquired) 35.3
Investment in joint ventures and associates
– Atlab 4.8
– EFILM 3.7
8.5
Purchase of investments
– Universal Rank Hotel partnership 5.8
– Rank Group ordinary shares 7.3
– Other 0.6
13.7
Total 57.5
The further investment of £5.8m in the Universal Rank Hotel partnership now completes the Group’s commitment to this venture.The investment
in Rank Group ordinary shares was made in connection with the Group’s long term incentive plan.
During 2002, the Group made a number of acquisitions. A summary of their respective cost and contribution to the Group’s operating profit
in 2002 is set out below:
Consideration**
2002 
Operating
Date 2002 Deferred profit 
acquired £m £m £m
Gaming
Spanish bingo clubs Q2 9.2 5.8 1.5
Deluxe Film
Capital FX November 3.0 6.0 0.2
Image December 5.1 0.4 0.1
Deluxe Media Services
Ritek Corporation (80%) July 14.2 19.6 4.3*
Other 3.8 – (0.1)
35.3 31.8 6.0
*before minority interests.
**net of cash acquired.
On 31 December 2002, the Group agreed to acquire the remaining 50% of ETS that it did not already own. The total consideration was £14.2m
of which £7.4m was paid in January 2003. On 27 January 2003, the Group completed its acquisition of Blue Square for a total consideration
of £65m in unlisted, unsecured convertible loan stock. The loan stock, which is redeemable from the end of July 2003, is convertible into
Rank ordinary shares at a price of 282p per £1 of loan stock held. Full conversion of the loan stock would result in the issue of 23m new Rank
ordinary shares. 31 The Rank Group Plc
Disposals
Disposals during the year comprise payments and receipts in connection with the disposals of the UK Holidays division in 2000 and the
Butlins Hotels in 1999 as well as the disposal of properties on ending the British Land joint venture and sale and leaseback transactions.
Net debt
Net debt at 31 December 2002 was £399.1m compared with £248.1m at 31 December 2001. Net debt as a percentage of shareholders’ funds
was 53% compared to 34% at 31 December 2001 (as restated for the effect of FRS 19 ”Deferred Tax”).
Pensions
An actuarial valuation of the Group’s deﬁned beneﬁt scheme for UK employees was conducted at 5 April 2001. At the valuation date the market
value of the assets of £589.9m exceeded the market value of the liabilities by 9%, giving a surplus of £49.2m. At 31 December 2002, the deﬁcit on
the pension fund would be £90.9m calculated in accordance with the provisions of FRS 17 “Retirement Beneﬁts” (2001 – surplus £36.9m).
Borrowings
The Company’s articles of association provide that borrowings shall not exceed one and a half times the adjusted share capital and
consolidated reserves of Rank. As at 31 December 2002, this limit was £1,044.5m compared with relevant borrowings of £463.1m.
Treasury policy
Rank seeks to achieve certainty of value on its foreign currency purchases and sales by buying or selling forward a portion of its estimated net
currency requirements up to a year ahead, or longer where an external currency exposure exists, or is forecast to exist. At 31 December 2002,
at least 80% of anticipated core currency transaction exposures for the following 12 months had been hedged. Balance sheet currency
exposure in respect of investments in overseas subsidiaries is minimised by hedging the underlying asset position with currency borrowings 
or through the use of currency swaps.
Rank seeks to protect itself against material adverse movements in interest rates by undertaking controlled management of the interest rate
structure on Group investments and borrowings. This exposure is managed by fixing interest rates on a portion of the Group’s borrowings
dependent on the level of gearing.
The directors review and agree the broad policies and guidelines for all significant areas of treasury activity, including key ratios, funding 
and risk management. Implementation of these policies is carried out by the Group treasury department, under close management direction.
The treasury function is not operated as a profit centre.
Rank uses off-balance sheet ﬁnancial instruments, including foreign exchange forward contracts and interest rate swaps, in its management of
exchange rate and interest rate exposures. Off-balance sheet financial instruments are only used to hedge underlying commercial exposures.
Therefore, while these instruments are subject to the risk of loss from changes in exchange rates and interest rates, such losses would be
offset by gains in the related exposures. Rank does not speculate in derivative financial instruments. Realised and unrealised gains and losses
on foreign exchange forward contracts that hedge firm third party commitments are recognised in income in the same period as the
underlying transaction. Net interest paid or received on interest rate swap contracts is included in net interest expense.
Further information on borrowings and financial instruments is contained in notes 18 and 19 to the accounts.
Shareholders’ funds
Shareholders’ funds were £748.6m at the end of 2002 compared with £728.7m (as restated) at the end of 2001. 32 The Rank Group Plc
DIRECTORS’ REPORT
The directors submit their report and statement of accounts for the
year ended 31 December 2002.
Principal activities and business review
Rank is one of the UK’s leading leisure and entertainment
companies and an international provider of services to the film
industry. In 2002, leisure and entertainment activities included
casinos and bingo clubs, and Hard Rock Cafes and global rights 
to the Hard Rock brand. Rank also owns film processing and video
and digital versatile disc (“DVD”) duplication and distribution
facilities, branded Deluxe. Rank operates primarily in the UK and
North America, although it also has activities in continental Europe
and other parts of the world.
During the year, the Company significantly strengthened Deluxe’s
position in the fast growing DVD market through the formation 
of Deluxe Global Media Services (“DGMS”), a venture with Ritek
Corporation (“Ritek”), the world’s largest manufacturer of optical 
discs. DGMS combines the DVD assets of Deluxe and Ritek in 
North America and Europe and is 80% owned by Deluxe. The 
major studio and other contracts held by Ritek were transferred 
to DGMS.
Deluxe paid Ritek $15m on completion of the transaction and
$14.75m on 3 January 2003 and will make a further payment of 
$14.75m on 1 January 2004. Deluxe also assumed a $5.5m loan 
note payable to Ritek in 2004.
An analysis of turnover, proﬁt, operating assets and net cash ﬂow by
business activity is given on pages 50 to 51. The Group’s continuing
activities and businesses are reported on in the operating and
financial review.
Result and equity dividends
Proﬁt before tax for the year was £198.0m (2001 – £160.5m proﬁt).
Profit for the year after tax and minority interests was £136.7m 
(2001 as restated – £91.1m profit).
The directors recommend a final dividend of 8.8p per ordinary
share which, together with the interim dividend of 4.4p already
declared, makes a total for the year of 13.2p per ordinary share
(2001 – 12.6p). Subject to approval at the annual general meeting,
the final dividend will be paid on 9 May 2003 to those shareholders
whose names are on the register on 11 April 2003. Retained profit
for the year of £37.5m (2001 – loss £4.4m) has been transferred 
to reserves.
Directors
The current directors of the Company are listed on page 22 
and all of them were directors of the Company throughout the
year. The Company is satisfied that each non-executive director 
is able to devote the amount of time required to attend to the
Company’s affairs.
John Sunderland (a member of both the Audit and Remuneration
committees) and Ian Dyson will retire by rotation at the annual general
meeting, and, being eligible, will offer themselves for re-appointment.
John Sunderland does not have a service agreement with the Company;
Ian Dyson has a service agreement with the Company, terminable on
12 months’ notice.
The interests of the directors in the shares of the Company, together
with their remuneration and, where applicable, their service
agreements, are detailed in the remuneration report. Biographical
details of the directors are given on page 22.
Human resources
The Company recognises that the contribution made by its
employees is crucial to the success of each of its businesses.
Substantial investment is therefore made in the training,
development and motivation of staff with particular attention to
ensuring customer satisfaction through the consistent achievement 
of high standards of service and delivery of quality products.
Employee involvement in the direction and objectives of the
business is encouraged through the use of incentive schemes 
to focus employees on the key performance indicators of each
business. In addition, communication and consultation programmes
exist at site, company and Group level.
The Company endorses the active application of equal opportunities
policies and programmes to provide fair and equitable conditions for
all employees regardless of sex, family status, religion, creed, colour,
ethnic origin, age, disability or sexual orientation.
Health and safety
The board receives regular reports on health and safety matters.
The Chief Executive has been nominated by the board as the main
board director responsible for health and safety across the Group.
The Group requires each division to develop and implement its 
own safety policy, organisation and arrangements, to respond to 
the particular health and safety risks in the division. The Group also
requires an annual report from each division on health and safety
performance for the year.
Environment
The Group’s policy is to encourage respect for the environment 
and Rank adopts an environmentally responsible attitude in the
fulfilment of its business objectives. Close attention is paid to 
energy and water conservation and recycling of waste material
where economically practical.
Corporate social responsibility
The Company has taken account of the disclosure guidelines 
on socially responsible investment published by the Association 
of British Insurers in its internal control practices, and will provide
further information on these issues in future reports.
Share capital
Details of the new ordinary shares issued pursuant to the exercise 
of options under Rank’s share option schemes are set out in note 
23. Note 23 also contains details of the ordinary shares issued pursuant
to the conversion of the Company’s convertible preference shares.
A resolution will be proposed at the annual general meeting 
to authorise the directors to allot and grant rights over the 
unissued share capital and to authorise the directors to allot 
and grant rights over ordinary shares for cash up to a maximum
nominal amount representing 5% of the issued ordinary share
capital, without first making a pro rata offer to all existing 
ordinary shareholders. 33 The Rank Group Plc
Resolutions will also be proposed at the annual general meeting to
authorise the Company to purchase up to 15% of its ordinary shares
and convertible preference shares at or between the minimum and
maximum prices specified in the relevant resolution set out in the
notice of meeting. The authorities would only be exercised by 
the directors if they considered it to be in the best interests of
shareholders generally and if the purchases could be expected 
to result in an increase in earnings per share.
Articles of association
A resolution will be proposed at the annual general meeting that
Article 102(A) of the Company’s articles of association be amended.
Article 102(A) of the Company’s articles of association refers to
borrowing restrictions on the board, relating to the Company and 
its subsidiary undertakings. The board considers that it is in the
Company’s and its shareholders’ best interests to have increased
flexibility by increasing the limit on the amount the Group may
borrow from one and a half times to two and a half times the
Group’s adjusted capital and reserves (as defined in Article 102).
The increase to two and a half times brings this limit into line with
those of groups similar to the Rank Group.
Fixed assets
The directors have considered the total net book value of land and
buildings and are of the opinion that it is not significantly different
from market value at 31 December 2002.
Payment of suppliers
The Company and its subsidiaries agree terms and conditions for
their business transactions with their suppliers. Payment is then
made on these terms, subject to the terms and conditions being
met by the supplier. Given the diversity of the Group’s businesses
and the widely differing credit terms which apply in the various
industries and territories in which they operate, the directors
consider that it is not meaningful to disclose an average period 
of credit taken. The Company has no trade creditors.
Signiﬁcant shareholdings
At the date of this report the Company has been notified of the
following interests over its ordinary shares in accordance with
Sections 198 to 208 of the Companies Act 1985:
CGNU Plc (28,854,661 – 4.87%), AXA-UAP S.A. (23,659,105 – 3.99%),
Barclays plc (23,291,274 – 3.93%), and Legal & General Investment
Management Limited (18,054,867 – 3.04%).
Charitable and political donations
Charitable donations made in the UK during the year amounted to
£151,000 (2001 – £68,000). The largest single donation was £80,000 
in favour of the BCA Gaming Industry Charitable Trust. Overseas
companies supported a variety of local and national charities 
and, in particular, Hard Rock Cafe International (USA) Inc. donated
approximately US$762,000 (2001 – US$412,000), continuing its focus
on humanitarian and environmental causes. The Company made no
political donations in the year.
Auditors
Following the conversion of the Company’s auditors
PricewaterhouseCoopers to a Limited Liability Partnership (LLP) 
from 1 January 2003, PricewaterhouseCoopers resigned on 
23 January 2003 and the directors appointed their successor,
PricewaterhouseCoopers LLP, as auditors. A resolution to 
re-appoint PricewaterhouseCoopers LLP as auditors to the 
Company will be proposed at the annual general meeting.
Post balance sheet event
On 27 January 2003 the Company completed the acquisition 
of Blue Square Limited, one of the UK’s leading internet and
telephone betting businesses for a consideration of £65m in
unlisted unsecured convertible loan stock. Further details are 
set out in note 34 to the accounts.
By order of the board
Charles Cormick
Secretary, The Rank Group Plc, Registered No. 3140769
Registered Office:
6 Connaught Place, London W2 2EZ
28 February 2003 34 The Rank Group Plc
REMUNERATION REPORT
The Remuneration committee 
Rank’s Remuneration committee is comprised solely of independent non-executive directors. It is chaired by Peter Jarvis and its other
members are Oliver Stocken and John Sunderland. The committee has formal terms of reference which include making recommendations
to the board on the Company’s policy on directors’ remuneration and on the Company’s framework of executive remuneration and its cost.
The committee also determines on behalf of the board the remuneration, benefits and employment packages of the Chairman and the
executive directors.
The committee meets at least three times a year; Alun Cathcart and Mike Smith normally attend its meetings as do Christine Ray, Group
Human Resources Director, and Charles Cormick, Company Secretary, except for when issues in which they have a direct interest are 
being considered.
Advisers
During 2002, Towers Perrin was appointed by the committee as external adviser to the board and the committee on remuneration issues;
advice on share-based incentive arrangements is also provided by New Bridge Street Consultants. Towers Perrin only provided services to the
Company in 2002 relating to remuneration and benefits arrangements for executive directors and senior management; the advice provided
by New Bridge Street Consultants extended to a wider employee population. Christine Ray assists the committee by preparing an annual report
on remuneration and employment conditions existing within the Group, including current and anticipated levels of pay increases, and planned
changes in employment conditions. Internal support is provided to the committee by Charles Cormick.
Remuneration policy
The Company’s policy is to design and implement remuneration packages for executive directors and employees that are competitive in the
marketplace and consistent with the reasonable expectation of shareholders for enhancing shareholder value. The Remuneration committee
reviews the remuneration packages regularly to ensure that they meet the policy requirements.
For 2003, the committee does not foresee any major changes in policy, although a new annual cash bonus scheme has been introduced,
as detailed below. The committee however accepts that the policy may need to change in subsequent years in order to take account of
possible future changes in the Company’s business environment, its strategic objectives, and in remuneration practice. Any changes in policy
for years after 2003 will be described in future reports.
The remuneration packages combine both short term elements (base salary, benefits and bonuses) with long term elements (executive
share option scheme and long term incentive plan). A significant proportion of executive directors’ remuneration is performance related
through the annual bonus plan, and the two long term share based incentive programmes. The share based schemes align the directors
with the interests of shareholders and to reinforce this alignment, the committee has introduced shareholding guidelines for the executive
directors. These guidelines call for the Chief Executive to build up a shareholding equivalent to one and a half times base salary, for other
executive directors a shareholding of one times base salary, and for Executive committee members a shareholding of 0.75 times base salary.
All have a number of years in which to build up the specified holding.
The targeted composition of each of the executive directors’ remuneration (excluding pensions) is approximately 60% performance related
and 40% non-performance related.
For each director, the performance related elements of the remuneration comprise an annual cash bonus and two long term share based
incentive programmes (see full description overleaf ). If target performance is achieved, the long term share based incentive plans have 
a value approximately twice that of the annual cash bonus. This reward structure is regularly reviewed by the committee to ensure that 
it meets the objectives of the remuneration policy. 35 The Rank Group Plc
Base salary and benefits
The policy is that base salaries should be reviewed annually, taking into account individual performance, and paid at a market competitive
level in comparison with comparable jobs in selected relevant companies. Comparator groups are derived from their sector involvement,
turnover and market capitalisation.
Benefits include a car, or cash allowance in lieu, and life, disability and health insurance.
Annual cash bonus
In recent years the executive directors have participated in a performance award scheme which provides annual cash bonuses of up to 50%
of base salary. Under this scheme, bonuses are dependent upon achievement of primary and secondary performance measures. The primary
measure is operating profit; the secondary measures are specific to the various group businesses and relate to a combination of turnover,
cash flow, and cost reduction targets, with all criteria being demonstrably quantifiable. The scheme provides for a sliding scale of bonuses
dependent upon performance. On-target performance results in bonuses totalling 35% of base salary with a maximum bonus of 50% of
base salary for 106% achievement.
For 2003 a new annual cash bonus plan for executive directors and senior management has been introduced. A small element of this bonus
will relate to the Company’s performance in the ﬁrst six months of the year. Whilst the objectives and overall structure of the plan are broadly
similar to previous arrangements, the committee believes that the following changes are consistent with current market practice, achievement
of the strategic objectives of the Group and in line with the remuneration policy:
• A change in the full-year performance measures for executive directors to a primary measure of operating profit and a secondary
measure of return on capital employed. There will be only one performance measure for the first half-year, which will be operating profit.
• The performance range and bonuses payable have been extended. On-target performance will continue to attract a bonus of 35% 
of base salary but the maximum bonus payable for the full year has been increased to 70% of base salary for 115% achievement.
Additional cash bonuses
Additional cash bonuses were introduced in 2000 when it was essential to ensure the retention and incentivisation of key management
at a time when the Group was undergoing major restructuring. It was never the intention of the Remuneration committee that they would
become a permanent element of remuneration packages; instead, it was planned that they would be phased out as the Group emerged
from the restructuring. This has now occurred and no additional cash bonuses accrued to directors or senior management in the second
half of 2002. The committee does not intend to pay additional cash bonuses in the future, save in exceptional circumstances.
For the first six months of 2002 additional cash bonus accrued to executive directors equal to one half of the ordinary cash bonuses
earned in the period. Payment of these additional cash bonuses was deferred until December 2002; the amounts are disclosed in the
table below, headed “Additional bonus” .
The cash emoluments received by the directors in 2002 were as follows:
Total emoluments 
(excluding pensions)
Base Expenses Annual Additional
salary/fees Benefits allowances bonus bonus 2002 2001
£000 £000 £000 £000 £000 £000 £000
Alun Cathcart 150 – 10 – – 160 107
Ian Dyson 300 23 – 116 31 470 481
Peter Jarvis 33 –––– 33 32
Mike Smith 530 30 – 206 54 820 878
Oliver Stocken 33–––– 33 32
John Sunderland 29 –––– 29 28
No compensation for loss of office was paid to or receivable by a director during the year. 36 The Rank Group Plc
Long Term Incentives
The Company operates a Save As You Earn (“SAYE”) option scheme in which all UK employees and executive directors can currently participate.
This scheme operates within speciﬁc tax legislation, including a requirement that the exercise of options can only be ﬁnanced by the proceeds
of a monthly savings contract; the exercise of options is not subject to satisfaction of a performance condition.
In addition, there are two other long term share based incentive programmes for executive directors and senior management. These are
an executive share option scheme, in which approximately 200 current employees participate, and a long term incentive plan, in which some
20 top managers participate.
Executive Share Option Scheme
A new executive share option scheme, the Rank Group 2002 Executive Share Option Scheme (the “2002 ESOS”), was approved by shareholders
at last year’s annual general meeting and options were subsequently granted to the executive directors under the terms of this scheme.
The minimum performance condition attaching to the exercise of these options is an average annual real growth in normalised earnings
per share (“eps”) of 3% over a three year performance period. (The scheme provides for tiered, more challenging performance conditions,
dependent upon the value of options granted.) Eps was determined by the committee to be the appropriate criterion given its clear linkage with
shareholder value, and the required real growth was in line with market practice at the time of shareholder approval of the scheme. Retesting of
the performance conditions is permitted for one year only following the relevant performance period, using the original base year. The board
considers that providing limited retesting is appropriate, given the changing focus of the Company and the cyclical nature of a number
of its businesses.
Both executive directors were also granted options under the Rank Group 1996 Executive Share Option Scheme at the time of their recruitment
in 1999. The performance condition attaching to the exercise of these options is that there must be an average annual real growth in eps of
at least 2% over a three year period.
The details of the executive directors’ executive share options are as follows:
Number of Options Number of
shares under awarded/ shares under
option at exercised/ option at Price
1 January lapsed/ 31 December paid on Exercise Exercise Expiry
Director 2002 varied 2002 grant price (p) date*** date
Ian Dyson 278,225 – 278,225* – 248.00 13.09.02 12.09.09
138,376 138,376** – 271.00 24.05.05 23.05.12
Mike Smith 795,580 – 795,580* – 226.25 01.04.02 31.03.09
244,464 244,464** – 271.00 24.05.05 23.05.12
* granted under the terms of the Rank Group 1996 Executive Share Option Scheme.
** granted under the terms of the Rank Group 2002 Executive Share Option Scheme.
***subject to satisfaction of performance conditions.
REMUNERATION REPORT continued 37 The Rank Group Plc
The market value of one ordinary share was 266.5p at 31 December 2002; the highest market value during 2002 was 303p, and the 
lowest, 226p.
The directors’ additional interests in shares of the Company, including options to purchase ordinary shares under the terms of the Group’s 
SAYE option scheme, are given below:
31 December 2002 1 January 2002
Ordinary Preference Ordinary Preference Exercise
shares shares SAYE shares shares SAYE price (p)
Alun Cathcart 75,000 – – 50,000 – – –
Ian Dyson 20,000 – – 20,000 – – –
Peter Jarvis 25,525 – – 20,113 – 5,412 179.00
Mike Smith 120,000 – – 80,000 – – –
Oliver Stocken 38,188 – – 25,000 – – –
John Sunderland 1,058 – – 1,058 – – –
No options to subscribe for ordinary shares were granted to directors or lapsed during the year ended 31 December 2002. Peter Jarvis
exercised a SAYE option over 5,412 ordinary shares on 1 May 2002. The exercise price per ordinary share was 179p and the market price
at the date of exercise was 275p.
Pursuant to the provisions of the Companies Act 1985, each executive director is also deemed to be interested in the ordinary shares of the
Company held by the Rank Group Employee Benefit Trust. At 1 January 2002 the interest was in a total of 1,224,389 ordinary shares, and at 
31 December 2002, and at the date of this report, the interest is in a total of 3,897,157 ordinary shares. There were no changes in directors’
interests between 1 January 2003 and the date of this report.
Long Term Incentive Plan
The Company’s current policy, introduced in 2002, is to allow executive directors, and selected senior executives, to participate in a long term
incentive plan (the Rank Group 2000 Long Term Incentive Plan (“the Plan”)) and the 2002 ESOS in respect of the same performance periods.
The Plan provides for executive directors, and selected executives, to be given restricted awards over existing ordinary shares with a market 
value of up to one times base salary. Awards are released if a total shareholder return (“TSR”) target is achieved and if there is an average annual
real growth in normalised eps of at least 2% over the relevant performance period, comprising three consecutive ﬁnancial years of the Company.
TSR is measured by reference to the change in the price of ordinary shares over the performance period and the gross value of dividends
received on the shares, assuming they are immediately reinvested in shares during that period. A total shareholder return criterion was selected 
by the committee because of its linkage with shareholder value, and a secondary criterion of eps growth was selected to ensure that awards
do not vest at a time of overall unsatisfactory ﬁnancial performance.
The group of companies with which the TSR of the Company is compared currently comprises BAA, Boots, Carlton, De Vere, Dixons,
EMI, Granada, GUS, Hilton, Kingﬁsher, Luminar Leisure, Mothercare, MyTravel, Next, Pearson, Scottish & Newcastle, Six Continents, WH Smith 
and Whitbread.
A participant in the Plan will receive the total number of shares comprised in the restricted award if the Company’s TSR performance ranks 
in the top quartile of the comparator group. To receive the minimum award (30%), the Company’s TSR performance must exceed the median
performance. The percentage of shares to be released for performance between the minimum and maximum targets increases on a straight
line basis.
The executive directors were given further restricted awards under the Plan in 2002 but these had a market value of 50% of base salary, not
100% as applied previously, as the directors were also granted executive share options in this period.
The Company’s TSR performance over the three years ended 31 December 2002 ranked number two in the comparator group, and the
average annual real growth in normalised eps exceeded 2% in the period. Accordingly, in 2003 Mike Smith and Ian Dyson will receive all 
of the shares conditionally awarded to them in 2000. In addition, Jerry Fowden, who resigned as a director in 2001, will receive an award 
of 61,502 ordinary shares. At the date of vesting of the awards, the market value of one ordinary share was 235p. 38 The Rank Group Plc
The following information relating to the Plan is required to be disclosed by the Directors’ Remuneration Report Regulations 2002
(the “Regulations”).
Performance At Shares At
Date of Market period 1 January conditionally 31 December 
conditional price per ending 2002 awarded 2002
award share (p) 31 December Number Number Number
Ian Dyson 22.05.00 146.5 2002 163,822 163,822
27.03.01 176.3 2003 153,191 153,191
12.03.02 275 2004 – 54,545 54,545
Mike Smith 22.05.00 146.5 2002 317,406 317,406
27.03.01 176.3 2003 283,687 283,687
12.03.02 275 2004 – 96,363 96,363
No variation was made in the terms and conditions of interests in the Plan during 2002.
As at 31 December 2002 the Company was ranked number two in its comparator group in respect of the performance periods commencing
January 2001 and 2002.
Pension arrangements
The executive directors are members of the Rank Pension Plan, which is a defined benefit scheme. Accrual rates do not exceed 1/30th of 
an individual’s pensionable earnings for each year of pensionable service. Cash bonuses and the cash values of other benefits in kind are 
not pensionable. The normal retirement age for executive directors is 60.
The amount of pension which can be provided by the Rank Pension Plan to the executive directors is restricted by the earnings cap
imposed by the Finance Act 1989. The Company therefore also pays an amount equal to 45% of Mike Smith’s base salary into an
unapproved retirement benefit scheme (“FURBS”), which is a defined contribution scheme, and Ian Dyson receives a salary supplement
of 20% (2002 – £60,000; 2001 – £54,000) of his base salary.
Pension entitlements 
Pension entitlements and corresponding transfer values under the Rank Pension Plan increased as follows during the year.
Total 
Increase Transfer Transfer Transfer change
Gross in accrued Total Directors’ value of net value of value of in transfer
increase pension accrued contributions increase in accrued accrued value
in accrued net of pension at during accrual over pension at pension at during
pension (1) inflation (2) 31/12/02 (3) period (4) period (5) 31/12/02 (6) 31/12/01 (7) period (8)
£000 £000 £000 £000 £000 £000 £000 £000
Ian Dyson 3 3 10 6 15 69 51 12
Mike Smith 2266 17 87 62 19
1 Pension accruals shown are the amounts which would be paid annually on retirement based on service to the end of the year.
2 Transfer values have been calculated in accordance with guidance note GN11 issued by the actuarial profession.
3 The value of net increase (5) represents the incremental value to the director of his service during the year, calculated on the assumption
service terminated at the year end. It is based on the accrued pension increase (2) after deducting the directors’ contributions (4).
4 The change in the transfer value (8) includes the effect of ﬂuctuations in the transfer value due to factors beyond the control of the
Company and directors, such as stockmarket movements. It is calculated after deducting the directors’ contributions (4).
5 Voluntary contributions paid by directors and resulting benefits are not shown.
6 These figures exclude any salary supplements and contribution to the FURBS paid in lieu of pension benefits on pay in excess of the
earnings cap.
7 These figures exclude Mike Smith’s FURBS benefits.
Contributions paid during the year in respect of defined contribution arrangements were as follows:
Contributions accrued in prior
Contributions due for the period periods and paid in this period
Mike Smith £238,500 £Nil
Pension entitlements have been disclosed in accordance with the requirements of the Listing Rules of the Financial Services Authority.
REMUNERATION REPORT continued 39 The Rank Group Plc
Service contracts and external directorships
The Company’s policy is that the Chairman and the executive directors should have service contracts with one-year notice periods although 
a longer initial notice period may be proposed in respect of any future appointments. The dates of the service contracts are as follows:
Alun Cathcart – 10 April 2001, Ian Dyson – 17 August 1999, and Mike Smith – 25 February 1999. There are no predetermined compensation
provisions for early termination. Compensation on termination will be determined on an individual basis, taking into account age, length
of service, the circumstances surrounding termination and an individual’s duty to mitigate losses. The existing non-executive directors do 
not have service contracts but serve the Company under letters of appointment which are terminable by the Company without liability 
for compensation. They are normally expected to retire from the board after seven years’ service. Future non-executive appointments will 
be for an initial period of three years and subject to annual review thereafter.
Executive directors are allowed to accept one external non-executive directorship and to retain the fees received.
Non-executive directors
The Chairman and the executive directors determine the non-executive directors’ fees; the policy is that the fees should be paid at a market
competitive level in comparison with companies of broadly similar size in terms of market capitalisation. With effect from 1 January 2003, the
fees are £32,500 pa, with the chairmen of the Audit and Remuneration committees receiving an additional £7,500 pa. The fees in 2002 were
£28,500 pa and committee chairmen received additional fees of £4,000 pa. The Chairman and the non-executive directors do not participate
in any bonus scheme, any Company pension scheme, any share option scheme or the long term incentive plan.
Company’s performance
As required by the Regulations, the left hand graph below compares the Company’s total shareholder return performance with the FTSE 350
(excluding investment companies) index for each of the past five financial years. The committee has selected the FTSE 350 (excluding
investment companies) index as a comparator as the Company was a constituent of both the FTSE 100 and FTSE 250 indices during 
this period.
The right hand graph below compares the Company’s total share return performance with that of the comparator group of companies under
the Rank Group 2000 Long Term Incentive Plan for each of the last five financial years.
PricewaterhouseCoopers LLP
In their audit opinion on page 43 PricewaterhouseCoopers LLP refer to their audit of the disclosures required by Part 3 of Schedule 7A to the
Companies Act 1985. These comprise the following disclosures in this remuneration report:
• The table on page 35 showing cash emoluments received by the directors in 2002
• The disclosures under the heading ‘Executive Share Option Scheme’ on page 36
• The disclosures under the heading ‘Long Term Incentive Plan’ on pages 37 and 38
• The disclosures under the heading ‘Pension entitlements’ on page 38.
On behalf of the board
Peter Jarvis
Chairman of the
Remuneration committee
Value of Hypothetical £100 Holding
•
Rank Group LON
•
FTSE 350 (ex inv)
£150
£140
£130
£120
£110
£100
£90
£80
£70
£60
Dec 97 Dec 98 Dec 99 Dec 00 Dec 01 Dec 02 Dec 97
Value of Hypothetical £100 Holding
•
Rank Group LON
•
Comparator Group
£150
£140
£130
£120
£110
£100
£90
£80
£70
£60
Dec 98 Dec 99 Dec 00 Dec 01 Dec 02 40 The Rank Group Plc
CORPORATE GOVERNANCE
The policy of the board is to manage the affairs of the Company 
in accordance with the Principles of Good Governance and Code 
of Best Practice as set out in Section 1 of the Combined Code
annexed to the Listing Rules of the Financial Services Authority.
Application of Principles of Good Governance
Directors
The directors believe that it is essential that the Company should 
be led and controlled by an effective board. To this end, regular
board meetings are held (not less than seven meetings in a year) 
and the board receives a steady flow of information to enable 
it to discharge its duties. There is a formal schedule of matters
reserved for the board’s decision, and all directors have access 
to the advice and services of the Company Secretary and to
independent professional advice, if required, at the Company’s
expense. Training programmes, including induction into the
operations of the Company, are developed for newly appointed
directors. The current composition of the board is detailed on 
page 22.
The board has established the following committees, each with 
a formal constitution, to facilitate its operations:
The Audit committee
The Audit committee meets not less than three times a year and
assists the board in reviewing the effectiveness of internal control
systems. The committee also reviews financial statements to be
published externally before their submission to the board, to ensure
they present a fair assessment of the Group’s position and prospects.
It also authorises any change in accounting policies. The committee
meets at least annually with the auditors without executive
management being present.
The Audit committee also keeps under review the independence and
objectivity of the external auditors.The committee reviews the nature
and amount of non-audit work undertaken by PricewaterhouseCoopers
each year to satisfy itself that there is no effect on their independence.
It is the Group’s policy to employ PricewaterhouseCoopers on
assignments additional to their statutory audit duties where their
expertise and experience within the Group are important, principally
in the areas of transaction services, stock exchange transactions and
tax advice. The Group’s policy is, where appropriate, that work is put
out to competitive tender. Details of this year’s fees are given in note
2 on page 52.
PricewaterhouseCoopers are also subject to professional standards
which are intended to safeguard the integrity of the auditing role.
In this regard, the Audit committee has received and reviewed 
the written disclosures provided by PricewaterhouseCoopers as
required by the UK Statement of Auditing Standards No 610 revised
“Communication of audit matters to those charged with governance”
and the US Independence Standards Board Standard No 1
“Independence Discussions with Audit Committees” .
The Finance committee
The Finance committee is an executive committee to which certain
specific authorities have been delegated by the board, principally 
in respect of capital expenditure authorisation and financing of 
the Group.
The Nomination committee
The Nomination committee proposes board appointments, both
executive and non-executive, for approval by the board. Decisions 
on board appointments are a matter for the whole board.
The Remuneration committee
The Remuneration committee meets not less than twice a year 
and is responsible for determining the remuneration packages of 
the Chairman, the executive directors, and other members of the
Executive committee. Details of the Remuneration committee’s
deliberations during the year are contained in the remuneration 
report on pages 34 to 39.
The composition of each of these committees is given on page 22.
The Executive committee
The Executive committee is not a committee of the board. Its role 
is to assist the Chief Executive in fulfilling his responsibilities for
directing and promoting the proﬁtable operation and development 
of the Group, consistent with the primary objective of creating long
term shareholder value. It currently consists of the Chief Executive,
Finance Director, Company Secretary, Group Human Resources
Director and the Managing Directors of divisions.
Directors’ remuneration
Details of directors’ remuneration, and the process for its determination,
are contained in the remuneration report.
Relations with shareholders
The Company maintains regular dialogue with its institutional
shareholders and city analysts. Various presentations and visits are
made throughout the year, and regular meetings are held with
principal shareholders. All shareholders are welcome to attend the
annual general meeting and private investors are encouraged to take
advantage of the opportunity given to ask wide-ranging questions.
Accountability and audit
The means by which the board applies the principles of accountability
and audit are set out overleaf.
Compliance with Code provisions
The Company has throughout the year complied with the Code
provisions set out in Section 1 of the Combined Code save as follows:
Code provision A.2.1
The board has carefully considered the proposal that a senior
independent director should be identiﬁed in the annual report and
concluded that this would be inappropriate given that the Chairman
of the Company and the chairmen of the Audit and Remuneration
committees are already identified.
Risk management and internal control
The board maintained the procedures necessary to comply with 
the requirements of the Combined Code relating to internal control 
as described in the September 1999 guidance “Internal Control:
Guidance for directors on the Combined Code” (Turnbull Report).
In relation to Code provision D.2.1, the board reports below on the
procedures that have been applied in reviewing the effectiveness 
of the system of internal control.
The board conﬁrms that there is an ongoing process for identifying,
evaluating and managing the signiﬁcant risks faced by the Company.
The process has been in place during the year and up to the 
date of approval of the annual report and accounts. It is regularly
reviewed by the board and accords with the guidance set out in 
the Turnbull Report.
The directors acknowledge that they are responsible for the 
Group’s system of internal control, for setting policy on internal
control and for reviewing the effectiveness of internal control. 41 The Rank Group Plc
The role of management is to implement board policies on risk 
and control. The system of internal control is designed to manage
rather than eliminate the risk of failure to achieve business
objectives and can only provide reasonable and not absolute
assurance against material misstatement or loss.
Considerable importance is placed on maintaining a strong 
control environment. In particular, there is a simple organisational
structure with clearly drawn lines of accountability and delegation
of authority; adherence to specified codes of conduct is required 
at all times, and the board actively promotes a culture of quality
and integrity.
A Group risk management policy has been produced and regular
meetings of the Group Risk Management committee take place,
chaired by the Finance Director.
The Group Risk Management committee directs and reviews risk
management activities within the Group, so that the signiﬁcant risks
facing the Group can be reported to the Audit committee and the
board.The Group-wide risk assessment process includes a review that
covers all controls, including financial, operational and compliance
controls and risk management. The report to the Audit committee
also provides information on the management and control of
significant risks and monitors compliance with the Group risk
management policy.
Detailed control procedures exist throughout the operations of the
Group and compliance is monitored by management, internal
auditors and, to the extent they consider necessary to support their
audit report, external auditors. Gaming division has a compliance
function that monitors day-to-day adherence to control procedures.
Additionally, the Group retained an internal audit function an element
of which was outsourced to PricewaterhouseCoopers. The Group
terminated the outsourcing agreement with PricewaterhouseCoopers
at the end of 2002. Internal audit activities are now coordinated and
substantially resourced from within the Group.
The Audit committee has reviewed the effectiveness of the system 
of internal control during the year ended 31 December 2002. This has
included consideration of the Group-wide risk assessment and the
results of a self-certification of internal control exercise throughout
the Group. The Audit committee has also considered reports from
internal and external auditors.
The Audit committee has reported the results of its work to the board.
The board has considered these reports when undertaking its review
of the effectiveness of the Group’s system of internal control.
Going concern
After reviewing the Group’s budget for 2003 and its medium term
plans, the directors are conﬁdent that the Company and the Group
have adequate financial resources to continue in operational
existence for the foreseeable future. They have therefore continued 
to adopt the going concern basis in preparing the accounts. 42 The Rank Group Plc
DIRECTORS’ RESPONSIBILITIES IN RELATION TO THE ACCOUNTS
The directors are required by the Companies Act 1985 to prepare
accounts for each financial year which give a true and fair view 
of the state of affairs of the Company and the Group as at the end 
of the financial year and of the profit or loss for the financial year.
In preparing the accounts the directors are required to select
appropriate accounting policies and apply them consistently, to make
reasonable and prudent judgements and estimates, and to state
that all accounting standards which they consider to be applicable
have been followed, save as disclosed in the notes to the accounts.
The directors are also required to prepare the accounts on the going
concern basis unless it is inappropriate to do so.
The directors have responsibility for ensuring that the Company keeps
accounting records which disclose with reasonable accuracy at any
time the financial position of the Company and which enable them
to ensure that the accounts comply with the Companies Act 1985.
The directors also have responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the Group and 
to prevent and detect fraud and other irregularities. 43 The Rank Group Plc
We have audited the accounts which comprise the profit and loss
account, the balance sheet, the cash flow statement, the statement 
of recognised gains and losses, the statement of movements in
shareholders’ funds, the accounting policies and the related notes.
We have also audited the disclosures required by Part 3 of Schedule
7A to the Companies Act 1985 contained in the directors’ remuneration
report (“the auditable part”).
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report, the
directors’ remuneration report and the accounts in accordance with
applicable United Kingdom law and accounting standards are set
out in the statement of directors’ responsibilities.
Our responsibility is to audit the accounts and the auditable part of
the directors’ remuneration report in accordance with relevant legal
and regulatory requirements and United Kingdom Auditing Standards
issued by the Auditing Practices Board. This report, including the
opinion, has been prepared for and only for the Company’s members
as a body in accordance with Section 235 of the Companies Act 1985
and for no other purpose. We do not,in giving this opinion, accept 
or assume responsibility for any other purpose or to any other person
to whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the accounts give a
true and fair view and whether the accounts and the auditable part 
of the directors’ remuneration report have been properly prepared
in accordance with the Companies Act 1985. We also report to you 
if, in our opinion, the directors’ report is not consistent with the
accounts, if the Company has not kept proper accounting records,
if we have not received all the information and explanations we
require for our audit, or if information specified by law regarding
directors’ remuneration and transactions is not disclosed.
We read the other information contained in the annual report and
consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the accounts.
The other information comprises only the directors’ report, the
unaudited part of the directors’ remuneration report, the Chairman’s
statement, the Chief Executive’s review, the operating and financial
review, the corporate governance statement and other information
included in the contents list.
We review whether the corporate governance statement reflects
the Company’s compliance with the seven provisions of the Combined
Code specified for our review by the Listing Rules of the Financial
Services Authority, and we report if it does not. We are not required to
consider whether the board’s statements on internal control cover
all risks and controls, or to form an opinion on the effectiveness 
of the Group’s corporate governance procedures or its risk and
control procedures.
Basis of audit opinion
We conducted our audit in accordance with auditing standards
issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts 
and disclosures in the accounts and the auditable part of the
directors’ remuneration report. It also includes an assessment 
of the signiﬁcant estimates and judgements made by the directors 
in the preparation of the accounts, and of whether the accounting
policies are appropriate to the Company’s circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary 
in order to provide us with sufficient evidence to give reasonable
assurance that the accounts and the auditable part of the directors’
remuneration report are free from material misstatement, whether
caused by fraud or other irregularity or error. In forming our opinion
we also evaluated the overall adequacy of the presentation of
information in the accounts.
Opinion
In our opinion:
• the accounts give a true and fair view of the state of affairs of 
the Company and the Group at 31 December 2002 and the profit
and cash flows of the Group for the year then ended;
• the accounts have been properly prepared in accordance with the
Companies Act 1985; and
• those parts of the directors’ remuneration report required by Part 3 
of Schedule 7A to the Companies Act 1985 have been properly
prepared in accordance with the Companies Act 1985.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
London
28 February 2003
INDEPENDENT REPORT OF THE AUDITORS to the members of The Rank Group Plc GROUP PROFIT AND LOSS ACCOUNT for the year ended 31 December 2002
44 The Rank Group Plc
2002 2001
Before
Before exceptional
exceptional Exceptional items Exceptional Total
items items Total (as restated) items (as restated)
Note £m £m £m £m £m £m
Turnover
Continuing operations 1, 2 1,402.9 – 1,402.9 1,366.9 – 1,366.9
Acquisitions 1, 2 61.7 – 61.7 –––
1,464.6 – 1,464.6 1,366.9 – 1,366.9
Operating proﬁt
Continuing operations 1, 2 213.6 (6.2) 207.4 209.7 (37.5) 172.2
Acquisitions 1, 2 6.0 – 6.0 –––
Group operating proﬁt 1, 2 219.6 (6.2) 213.4 209.7 (37.5) 172.2
Share of operating proﬁt in joint ventures and associates
Joint ventures 12 5.3 – 5.3 6.3 – 6.3
Associated undertakings 13 (0.5) – (0.5) –––
Total operating proﬁt 224.4 (6.2) 218.2 216.0 (37.5) 178.5
Non-operating items
Net profit on disposal of fixed assets – continuing 3 ––– –12.312.3
Net loss on disposal of continuing operations 3 – (0.8) (0.8) – (0.7) (0.7)
Net loss on disposal of discontinued operations 3 ––– – (1.1) (1.1)
Net loss on disposal of fixed assets in 
joint ventures – discontinued 3 – (1.0) (1.0) – (0.6) (0.6)
Profit on disposal of interest in discontinued joint venture 3 –7.7 7.7 –––
Proﬁt (loss) before interest 224.4 (0.3) 224.1 216.0 (27.6) 188.4
Net interest payable and similar charges
Group 4 (22.6) – (22.6) (24.3) – (24.3)
Joint ventures 12 (1.5) (2.0) (3.5) (3.6) – (3.6)
(24.1) (2.0) (26.1) (27.9) – (27.9)
Proﬁt (loss) on ordinary activities before tax 200.3 (2.3) 198.0 188.1 (27.6) 160.5
Tax on profit (loss) on ordinary activities 5 (59.8) 0.6 (59.2) (67.5) – (67.5)
Proﬁt (loss) on ordinary activities after tax 140.5 (1.7) 138.8 120.6 (27.6) 93.0
Equity minority interests 24 (2.1) – (2.1) (1.9) – (1.9)
Proﬁt (loss) for the ﬁnancial year 138.4 (1.7) 136.7 118.7 (27.6) 91.1
Dividends and other appropriations
Preference – non-equity 7 (21.0) – (21.0) (21.0) – (21.0)
Ordinary – equity 7 (78.2) – (78.2) (74.5) – (74.5)
Transfer to (from) reserves 23 39.2 (1.7) 37.5 23.2 (27.6) (4.4)
Basic earnings (loss) per ordinary share 8 19.9p (0.3)p 19.6p 16.5p (4.6)p 11.9p
Diluted earnings (loss) per ordinary share 8 19.8p (0.3)p 19.5p 16.5p (4.6)p 11.9p
There is no difference between the result as disclosed in the profit and loss account and that on an unmodified historical cost basis. BALANCE SHEETS at 31 December 2002
45 The Rank Group Plc
Group Company
2001
2002 (as restated) 2002 2001
Note £m £m £m £m
Fixed assets
Intangible assets 9 52.3 7.4 – –
Tangible assets 10 780.7 726.0 – –
Investments
Subsidiary undertakings 11 – – 1,697.0 1,697.0
Joint ventures
Share of gross assets 12.9 66.8 – –
Share of gross liabilities (7.5) (50.7) – –
12 5.4 16.1 – –
Associated undertakings 13 4.0 0.8 – –
Other 14 58.0 48.3 9.8 2.5
67.4 65.2 1,706.8 1,699.5
900.4 798.6 1,706.8 1,699.5
Current assets
Stocks 15 74.4 69.4 – –
Debtors (amounts falling due within one year) 16 411.8 430.4 – –
Debtors (amounts falling due after more than one year) 16 319.7 224.3 – –
Investments 17 24.0 6.3 – –
Cash and deposits 17 83.2 117.6 – –
913.1 848.0 – –
Creditors (amounts falling due within one year)
Loan capital and borrowings 18 (38.8) (7.9) – –
Other 20 (403.5) (363.7) (535.1) (435.6)
(442.3) (371.6) (535.1) (435.6)
Net current assets (liabilities) 470.8 476.4 (535.1) (435.6)
Total assets less current liabilities 1,371.2 1,275.0 1,171.7 1,263.9
Creditors (amounts falling due after more than one year)
Loan capital and borrowings 18 (467.5) (364.1) – –
Other 20 (83.5) (79.2) – –
(551.0) (443.3) – –
Provisions for liabilities and charges 21 (51.5) (87.8) (2.2) (2.2)
768.7 743.9 1,169.5 1,261.7
Capital and reserves
Called up share capital 23 104.8 104.6 104.8 104.6
Share premium account 23 13.6 8.5 13.6 8.5
Capital redemption reserve 23 24.8 24.8 24.8 24.8
Other reserves 23 605.4 590.8 1,026.3 1,123.8
Shareholders’ funds 748.6 728.7 1,169.5 1,261.7
Equity interests 522.0 504.3 942.9 1,037.3
Non-equity interests 226.6 224.4 226.6 224.4
Equity minority interests 24 20.1 15.2 – –
768.7 743.9 1,169.5 1,261.7
These accounts were approved by the board on 28 February 2003 and signed on its behalf by:
Alun Cathcart, Chairman
Ian Dyson, Finance Director GROUP CASH FLOW STATEMENT for the year ended 31 December 2002
46 The Rank Group Plc
2002 2001
Note £m £m
Net cash inﬂow from operating activities 25 107.3 266.4
Distributions from joint ventures and associated undertakings – 2.4
Returns on investment and servicing of ﬁnance
Interest received 8.2 7.5
Interest paid (31.3) (49.2)
Dividends paid to preference shareholders (18.8) (18.8)
Dividends paid to minority shareholders in subsidiary undertakings (2.1) (3.0)
(44.0) (63.5)
Taxation paid (net) (27.1) (15.4)
Capital expenditure and ﬁnancial investment
Purchase of tangible fixed assets (117.9) (103.3)
Purchase of investments (13.7) (12.0)
Sale of fixed assets and assets held for disposal 34.8 64.3
(96.8) (51.0)
Acquisitions and disposals
Purchase of subsidiaries 26 (38.7) –
Cash acquired with subsidiaries 26 3.4 –
Sale of businesses and investments 5.1 3.8
Investment in joint ventures and associated undertakings (8.5) (2.4)
(38.7) 1.4
Ordinary dividends paid (75.8) (72.2)
Cash (outﬂow) inﬂow before use of liquid resources and ﬁnancing (175.1) 68.1
Management of liquid resources 28 (18.8) 5.4
Financing
Issue of ordinary share capital 5.2 –
Changes in debt and lease ﬁnancing
Debt due within one year:
repayment of US dollar private placements – (31.9)
drawdown of other short term loans and borrowings 25.8 –
Debt due after more than one year:
repayment of US dollar private placements – (40.8)
net drawdown on dollar syndicated facilities 159.9 –
net movements on other long term facilities (25.5) (43.8)
Capital element of finance lease rental payments (0.5) (0.8)
Net cash inflow (outflow) from financing 26, 27 164.9 (117.3)
Decrease in cash 26, 27 (29.0) (43.8) GROUP RECOGNISED GAINS AND LOSSES for the year ended 31 December 2002
47 The Rank Group Plc
2001
2002 (as restated)
Note £m £m
Profit for the financial year 136.7 91.1
Currency translation differences on foreign currency net investments (26.5) 2.0
Tax on exchange adjustments offset in reserves (0.5) (3.2)
Total recognised gains and losses relating to the year 109.7 89.9
Prior year adjustment
– deferred tax asset 5(c) 144.5
Total recognised gains and losses since last annual report 254.2
2001
2002 (as restated)
Note £m £m
Profit for the financial year 136.7 91.1
Dividends payable excluding provision for redemption premium (97.0) (93.3)
Retained profit (loss) for the year 39.7 (2.2)
Other recognised gains and losses (net) (27.0) (1.2)
New share capital subscribed 5.3 –
Goodwill realised on disposal of subsidiaries 2.6 –
Amounts deducted in respect of shares issued to the QUEST (0.7) –
Net movement in shareholders’ funds 19.9 (3.4)
Opening shareholders’ funds as previously stated 584.2 556.3
Prior year adjustment
– deferred tax asset 5(c) 144.5 175.8
Opening shareholders’ funds as restated 728.7 732.1
Closing shareholders’ funds 748.6 728.7
MOVEMENTS IN GROUP SHAREHOLDERS’ FUNDS for the year ended 31 December 2002 ACCOUNTING POLICIES
48 The Rank Group Plc
1 Basis of preparation
The accounts are prepared under the historical cost convention, and comply with applicable accounting standards on a basis consistent with
the previous year except for the changes detailed below. The Group’s profit and loss account and balance sheet include the accounts of the
Company and its subsidiary undertakings, and the Group’s share of proﬁts or losses and reserves of its joint ventures and associated undertakings.
The profits or losses of subsidiary undertakings acquired or sold during the period are included as from or up to the dates on which control
passed. All business combinations are accounted for using the acquisition accounting method.
Changes in accounting policy
The Group has adopted Financial Reporting Standard (“FRS”) 19 “Deferred Tax” in 2002.
FRS 19 requires deferred tax to be accounted for on a full provision basis rather than a partial provision basis as in 2001 and earlier years.
This change in accounting policy has been accounted for as a prior period adjustment and accordingly the results reported in 2001 and earlier
years have been restated as set out in note 5(c).
2 Foreign currency
Revenues, costs and cash ﬂows of overseas undertakings are included in the Group proﬁt and loss account at average rates of exchange. Assets
and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date except where
a forward exchange contract has been arranged when the contracted rate is used. Exchange differences on the retranslation of opening net
assets and results for the period of foreign subsidiary undertakings are dealt with through reserves net of differences on related foreign currency
borrowings and are reported in the statement of recognised gains and losses. Other gains and losses arising from foreign currency transactions,
including trading, are included in the consolidated profit and loss account.
The principal exchange rates affecting the Group were:
2002 2001
Year end Average Year end Average
US dollar 1.61 1.51 1.46 1.43
Canadian dollar 2.54 2.40 2.32 2.23
Euro 1.53 1.59 1.63 1.61
3 Income recognition
Turnover consists of sales of goods and services and is generally recognised as goods are shipped or services are rendered. Turnover for casinos
includes the gaming win before deduction of gaming duty.
4 Contract advances
The Deluxe businesses enter into contracts with major customers that span several years. As part of these contracts, Deluxe provides advance
cash payments to the customers. Both Deluxe Media and Deluxe Film capitalise the total commitment payable under each contract within
debtors at the date of the agreement and record a corresponding liability on the balance sheet for any outstanding amounts. Within Deluxe
Media capitalised contract costs are amortised against revenue on a straight line basis over the life of the contract. Within Deluxe Film,
contract advances are amortised on the basis of estimated total footage over the life of the contract, unless the terms of the contract
indicate an alternative treatment would be more appropriate.
5 Goodwill
Goodwill arising on acquisitions made before 31 December 1997 has been written off directly to reserves. Goodwill arising on acquisitions
subsequent to 31 December 1997 has been capitalised and is being amortised on a straight line basis over its useful economic life of 20 years
or less.
6Stocks
Stocks include work in progress and are valued at the lower of cost (including an appropriate proportion of overhead) and net realisable value.
7 Tangible ﬁxed assets
Freehold properties are depreciated on a straight line basis over 100 years or their useful life, if less. Leased properties are depreciated over the
lesser of 100 years, their useful life or the term of the lease. No depreciation is provided on freehold land. Expenditure on major refurbishment
of properties is amortised over periods of between three and 15 years. Other fixed assets are depreciated mainly at rates between 5% and
33% per annum on a straight line basis.
Pre-opening costs are expensed as incurred.
Casino properties are depreciated over the useful economic life of the physical properties to their residual values. Both the initial carrying
amount and residual value take into account the trading potential of the property with the benefit of the casino licences. In view of the high
residual values, casino properties are reviewed annually for potential impairment. 49 The Rank Group Plc
8 Leased assets
Assets acquired under finance leases are included in tangible fixed assets. Depreciation is provided at rates designed to write-off the cost in
equal annual amounts over the shorter of the estimated useful lives of the assets (which are the same as those for assets purchased outright)
and the period of the leases. The capital element of future rentals is treated as a liability and the interest element is charged to the profit and
loss account over the period of the leases in proportion to the balances outstanding. Operating lease payments are charged to the profit and
loss account as incurred.
9 Pensions
The pension costs as calculated under SSAP 24 relating to the UK defined benefit scheme are assessed in accordance with the advice of a
qualified actuary using the attained age method. Actuarial surpluses and deficiencies are amortised on a straight line basis over the expected
average remaining service lives of the employees. The pension costs relating to the UK deﬁned contribution scheme represent the contributions
payable by the Group. Overseas schemes are accounted for in accordance with local conditions and practice such that the costs are charged
against profits on a systematic basis over the service lives of the employees. The disclosures required under the transitional arrangements for
FRS 17 are presented in note 30(b).
10 Taxation
Current tax is applied to taxable profits at the rates ruling in the relevant country.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions
or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet
date. A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be
regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences
can be deducted.
Provision is made for the tax that would arise on remittance of the retained earnings of overseas subsidiaries only to the extent that, at the
balance sheet date, dividends have been accrued as receivable.
Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which timing differences are
expected to reverse.
The Group’s previous accounting policy was to recognise a deferred tax liability to the extent that it was likely to arise in the future.
11 Financial instruments
Derivative instruments that may be utilised by the Group are forward interest rate swaps and caps, cross currency swaps, forward starting
swaps, forward rate agreements, interest rate swaps, interest rate swap options, forward foreign exchange contracts and currency options.
Derivative instruments that are currently utilised by the Group are interest rate swaps, forward foreign exchange contracts and short term
currency swaps. These instruments are used to manage interest rate and foreign exchange risk.
The forward foreign exchange contracts are used to hedge future transaction ﬂows. The resulting gains and losses are recognised as they arise
and offset against gains and losses in the related underlying exposure.
During 2001, the Group entered into a series of interest rate swaps with banks, the effect of which has been to replace part of the Group’s ﬁxed
interest rate exposure with a floating rate exposure on an equivalent amount of notional debt.
The interest rate differentials from interest rate swaps used to manage the amounts and periods for which interest rates on underlying debt
is fixed are recorded through an adjustment of net interest payable.
The underlying principal amounts of short term currency swaps are revalued at the exchange rates as at the balance sheet date and included
in current asset investments or creditors to the extent that they are not related to underlying debt. The interest rate element of these
contracts is recognised as part of net interest payable over the term of the agreement.
If a legally enforceable right exists to set off recognised amounts of financial assets and liabilities, which are determinable monetary amounts,
and the Group intends to settle on a net basis, the relevant financial assets and liabilities are offset. NOTES TO THE ACCOUNTS
50 The Rank Group Plc
1 SEGMENTAL INFORMATION
Proﬁt (loss) before Proﬁt (loss) after Capital
Turnover exceptional items exceptional items employed (b)
2002 2001 2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m £m £m
Analysis by division (a)
Gaming 470.3 437.1 103.3 95.7 103.3 95.7 589.3 553.5
Hard Rock 242.7 248.4 27.6 38.0 27.6 38.0 728.7 776.4
Deluxe 646.7 634.6 84.5 74.1 78.3 36.6 717.1 547.8
US Holidays 43.2 46.8 8.1 9.5 8.1 9.5 65.5 77.9
Central costs and other – – (9.9) (7.6) (9.9) (7.6) – –
Continuing operations 1,402.9 1,366.9 213.6 209.7 207.4 172.2 2,100.6 1,955.6
Acquisitions 61.7 – 6.0 – 6.0 –
1,464.6 1,366.9 219.6 209.7 213.4 172.2 2,100.6 1,955.6
Share of investments (c) 3.3 2.7 1.3 2.7 67.4 65.2
Total capital employed 2,168.0 2,020.8
Non-operating items (net) 5.9 9.9
Group interest payable and other similar charges (22.6) (24.3) (22.6) (24.3)
Profit on ordinary activities before tax 200.3 188.1 198.0 160.5
(a) Inter-segmental turnover is not material.
(b) Capital employed comprises net operating assets plus purchased goodwill.
(c) Share of investments’ proﬁt is deﬁned as share of proﬁt before tax. Share of investments’ capital employed is the carrying value in the Group’s
balance sheet plus purchased goodwill. Investments comprise joint ventures, associates and other investments.
Depreciation Investment Net cash flow Net assets
and amortisation expenditure before financing (as restated)
2002 2001 2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m £m £m
Analysis by division
Gaming 40.2 41.3 60.0 48.5 80.1 85.4 431.7 396.9
Hard Rock 16.4 10.1 26.2 20.0 17.9 24.7 170.8 175.3
Deluxe 23.1 28.6 30.3 33.5 (78.9) 137.7 453.2 308.8
US Holidays 0.8 0.8 1.3 1.3 13.0 13.3 39.9 46.8
Central costs and other 0.1 0.3 0.1 – (33.1) (25.2) – –
Continuing operations including acquisitions 80.6 81.1 117.9 103.3 (1.0) 235.9 1,095.6 927.8
Investments 22.2 14.4 (22.2) (14.5) 67.4 65.2
140.1 117.7 (23.2) 221.4 1,163.0 993.0
Interest paid (net) (23.1) (41.7)
Tax and dividends (123.8) (109.4) (1.6) 43.9
Other non-operating assets (net) (45.9) (52.3)
Acquired debt and other non-cash items – – (5.0) (2.2)
Goodwill 52.3 7.4
Net debt (399.1) (248.1)
140.1 117.7 (175.1) 68.1 768.7 743.9 51 The Rank Group Plc
1 SEGMENTAL INFORMATION CONTINUED
Operating profit by origin
Before After
Turnover by origin exceptional items exceptional items Net assets (a)
2002 2001 2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m £m £m
Geographical analysis
UK 576.9 529.4 100.3 95.0 100.3 85.9 527.8 453.4
North America 673.1 710.2 94.0 95.6 87.8 74.5 456.5 389.3
Rest of the World 152.9 127.3 19.3 19.1 19.3 11.8 111.3 85.1
Continuing operations 1,402.9 1,366.9 213.6 209.7 207.4 172.2 1,095.6 927.8
Turnover by destination is not materially different from turnover by origin.
(a) Net assets includes assets attributable to businesses acquired during the year.
2 TURNOVER AND OPERATING PROFIT
2002
Continuing
operations Acquisitions Total 2001
£m £m £m £m
Turnover 1,402.9 61.7 1,464.6 1,366.9
Cost of sales (996.5) (52.6) (1,049.1) (991.0)
Gross profit 406.4 9.1 415.5 375.9
Distribution costs (42.1) (0.3) (42.4) (42.2)
Administrative expenses (167.4) (2.8) (170.2) (170.3)
Other operating income 10.5 – 10.5 8.8
Operating profit 207.4 6.0 213.4 172.2
Exceptional items included above are:
In cost of sales (6.2) – (6.2) (26.2)
In administrative expenses ––– (11.3)
2002 2001
£m £m
Operating profit is stated after charging the following items:
In normal trading
Depreciation of tangible fixed assets 79.6 80.6
Amortisation of goodwill 1.0 0.5
Operating lease payments – land and buildings 51.5 47.4
Operating lease payments – plant and machinery 10.0 7.3
In exceptional items
Restructuring charges – 8.9
Impairment of fixed assets (including goodwill) 6.2 28.6
The exceptional charge in 2002 reflects an impairment to the value of Deluxe’s investment in the ex-Pioneer DVD facility which crystallised
as a result of the venture with Ritek Corporation. 52 The Rank Group Plc
NOTES TO THE ACCOUNTS continued
2 TURNOVER AND OPERATING PROFIT CONTINUED
During the year the Company’s auditors, PricewaterhouseCoopers, earned the following fees:
2002 2001
£m £m
Audit fees
UK 0.6 0.5
Overseas 0.6 0.5
1.2 1.0
Non-audit services
UK 1.1 1.7
Overseas 0.6 0.2
1.7 1.9
2.9 2.9
Non-audit services were as follows:
Transaction services, stock exchange and other audit related work 1.3 1.6
Taxation advice 0.4 0.2
Consultancy and advisory services – 0.1
1.7 1.9
The auditors’ remuneration for the Company was £50,000 (2001 – £50,000).
It is the Group’s policy to employ PricewaterhouseCoopers on assignments additional to their statutory audit duties where their expertise
and experience with the Group are important, principally in the areas of transaction services, stock exchange transactions and tax advice.
The Group’s policy is, where appropriate, that work is put out to competitive tender. The Audit committee monitors the relationship with
PricewaterhouseCoopers, including the level of non-audit fees.
3 NON-OPERATING ITEMS
2002 2001
£m £m
Net profit on disposal of fixed assets – 12.3
Net loss (including provision for loss) on disposal of continuing operations
(including goodwill written back from reserves of £2.6m) (0.8) (0.7)
Loss on disposal of discontinued operations – (1.1)
Net loss on disposal of fixed assets in joint ventures – discontinued (1.0) (0.6)
Profit on disposal of interest in discontinued joint venture 7.7 –
Non-operating items before interest and tax 5.9 9.9
The exceptional tax credit attributable to non-operating items is £0.6m (2001 – £Nil). The disposal of properties held by the joint venture
with British Land generated a net profit before interest of £6.7m.
4 NET INTEREST PAYABLE AND SIMILAR CHARGES
2002 2001
£m £m
Interest payable on bank loans and overdrafts 0.8 0.7
Interest payable on other loans 30.0 32.2
Finance charges on finance leases 0.9 0.4
Release of discount on provisions 1.3 1.3
Interest payable and other similar charges 33.0 34.6
Interest receivable from deposits and current asset investments (9.5) (7.5)
Net profit on redemption of fixed rate debt (0.9) (2.8)
22.6 24.3 53 The Rank Group Plc
5 TAXATION ON PROFIT ON ORDINARY ACTIVITIES
(a) Analysis of tax charge in year
2002 2001
Before
Before exceptional
exceptional Exceptional items Exceptional Total
items items Total (as restated) items (as restated)
£m £m £m £m £m £m
UK corporation tax
Current 21.3 – 21.3 11.4 – 11.4
Prior year (0.6) – (0.6) (0.3) – (0.3)
20.7 – 20.7 11.1 – 11.1
Overseas tax
Current 9.5 – 9.5 18.3 – 18.3
Prior year ––– 2.0 – 2.0
9.5 – 9.5 20.3 – 20.3
Taxation on share of profits of associated undertakings 
and joint ventures 1.4 (0.6) 0.8 0.9 – 0.9
Total current tax 31.6 (0.6) 31.0 32.3 – 32.3
UK deferred tax 
Timing differences 4.6 – 4.6 1.3 – 1.3
Overseas deferred tax 
Timing differences 23.6 – 23.6 33.9 – 33.9
Total deferred tax 28.2 – 28.2 35.2 – 35.2
Tax on proﬁt (loss) on ordinary activities 59.8 (0.6) 59.2 67.5 – 67.5
(b) Taxation reconciliation
The tax charge for the year is lower than the standard rate of UK corporation tax (30%). The differences are explained below:
2001
2002 (as restated)
£m £m
Profit on ordinary activities before tax 198.0 160.5
Profit on ordinary activities before tax at 30% (2001 – 30%) 59.4 48.2
Effects of:
Permanent differences (0.5) 12.9
Capital allowances in excess of depreciation (4.2) (5.6)
Differences in overseas tax rates (23.4) (22.8)
Adjustments relating to prior years (0.6) (0.8)
Other timing differences 0.3 0.4
Total current tax 31.0 32.3
The effective tax rate for the year has been reduced by a number of non-recurring permanent differences and, going forward, is likely 
to increase. NOTES TO THE ACCOUNTS continued
54 The Rank Group Plc
5 TAXATION ON PROFIT ON ORDINARY ACTIVITIES CONTINUED
(c) Implementation of FRS 19
The adoption of FRS 19 “Deferred Tax” has resulted in changes in the method of accounting for deferred tax. FRS 19 requires, subject to certain
exemptions, that deferred tax be recognised in respect of all timing differences that have originated but not reversed by the balance sheet date.
As a result of this change in accounting policy, comparatives have been restated as follows:
Tax charge Profit after tax Basic earnings
for the period before exceptionals per share
£m £m pence
Year to 31 December 2001 – as reported 32.3 155.8 22.5p
Implementation of FRS 19 35.2 (35.2) (6.0)p
Year to 31 December 2001 – as restated 67.5 120.6 16.5p
In the current year, the effect of this change in accounting policy has been to increase the total tax charge for the year by £28.2m.
Deferred tax asset Shareholders’ funds
£m £m
31 December 2001 – as reported – 584.2
Implementation of FRS 19 144.5 144.5
31 December 2001 – as restated 144.5 728.7
6 PROFIT ATTRIBUTABLE TO THE PARENT COMPANY
The profit for the financial year in the accounts of The Rank Group Plc was £0.2m (2001 – £0.1m). As allowed by S. 230 Companies Act 1985,
no profit and loss account is presented in respect of The Rank Group Plc.
7 DIVIDENDS AND OTHER APPROPRIATIONS
2002 2001
£m £m
Convertible preference shares – non-equity
Dividends payable for the period 18.8 18.8
Provision for redemption premium 2.2 2.2
21.0 21.0
Ordinary shares – equity
Interim declared of 4.4p per share (2001 – 4.2p) 26.1 24.8
Final proposed of 8.8p per share (2001 – 8.4p) 52.1 49.7
78.2 74.5 55 The Rank Group Plc
8 EARNINGS PER ORDINARY SHARE
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number
of ordinary shares in issue during the year, excluding those held in the employee benefit trust which are treated as cancelled.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential
ordinary shares comprising those share options granted to employees where the exercise price is less than the average price of the Company’s
ordinary shares during the year and the Company’s convertible preference shares.
2002 2001
Before Before
exceptional Exceptional exceptional Exceptional
items items Total items items Total
Basic earnings (£m) 117.4 (1.7) 115.7 97.7 (27.6) 70.1
Weighted average number of ordinary shares (m) – basic 589.2 590.7
Basic earnings (loss) per ordinary share 19.9p (0.3)p 19.6p 16.5p (4.6)p 11.9p
Diluted earnings (£m) 117.4 (1.7) 115.7 97.7 (27.6) 70.1
Weighted average number of ordinary shares (m) – diluted 592.4 590.7
Diluted earnings (loss) per ordinary share 19.8p (0.3)p 19.5p 16.5p (4.6)p 11.9p
Earnings per share before exceptional items has been calculated to show the impact of exceptional items as these can have a distorting
effect on earnings and therefore warrant separate consideration.
9 INTANGIBLE FIXED ASSETS
Goodwill
£m
Cost at 31 December 2001 8.5
Currency translation adjustment (2.8)
Additions 50.6
Transfer from joint venture 2.4
Cost at 31 December 2002 58.7
Amortisation at 31 December 2001 1.1
Currency translation adjustment (0.2)
Amortisation for the year 1.0
Provision for impairment (note 2) 4.5
Amortisation at 31 December 2002 6.4
Net book amount at 31 December 2002 52.3
Net book amount at 31 December 2001 7.4  NOTES TO THE ACCOUNTS continued
56 The Rank Group Plc
10 TANGIBLE FIXED ASSETS
Payments on account
Land and Fixtures, fittings, and assets in course
buildings plant and machinery of construction Total
£m £m £m £m
Group
Cost at 31 December 2001 569.7 579.9 34.5 1,184.1
Currency translation adjustment (15.5) (17.9) (1.4) (34.8)
Additions 36.0 72.9 9.7 118.6
Acquisition of subsidiary undertakings 0.2 50.3 – 50.5
Disposals (21.1) (43.7) (0.6) (65.4)
Transfers 7.3 22.9 (30.2) –
Cost at 31 December 2002 576.6 664.4 12.0 1,253.0
Depreciation at 31 December 2001 114.1 344.0 .– 458.1
Currency translation adjustment (6.6) (9.4) .– (16.0)
Provision for impairment (note 2) – 1.7 .– 1.7
Disposals (8.8) (42.3) .– (51.1)
Depreciation for the year 13.8 65.8 .– 79.6
Transfers (5.2)5.2 .––
Depreciation at 31 December 2002 107.3 365.0 – 472.3
Net book amount at 31 December 2002 469.3 299.4 12.0 780.7
Net book amount at 31 December 2001 455.6 235.9 34.5 726.0
(a) Land with a net book amount of £69.3m (2001 – £72.7m) is not depreciated. The net book amount of tangible assets for the Group includes
£3.1m (2001 – £3.2m) interest capitalised.
(b) The book amounts for fixtures, fittings, plant and machinery include the following amounts in respect of assets held under finance leases:
cost £12.3m (2001 – £6.0m), depreciation £3.4m (2001 – £2.8m), net book amount £8.9m (2001 – £3.2m). The depreciation charge in the
year in respect of these assets was £1.8m (2001 – £1.2m).
(c) The impairment charge during the year relates to the write down in carrying value of DVD assets to fair value at Deluxe Media.
2002 2001
£m £m
The net book amount of land and buildings comprises:
Freeholds 267.4 261.5
Long leases (over 50 years unexpired) 27.2 27.6
Short leases 174.7 166.5
469.3 455.6
11 INVESTMENTS IN SUBSIDIARY UNDERTAKINGS
Company
Shares Net book
at cost Provisions amount
£m £m £m
Balances at 31 December 2001 and 31 December 2002 2,780.0 (1,083.0) 1,697.0
Details of principal subsidiary undertakings are given on page 73. 57 The Rank Group Plc
12 INTERESTS IN JOINT VENTURES (UNLISTED)
Participating
interests
£m
Balances at 31 December 2001 16.1
Currency translation adjustment –
Additions 4.8
Disposals (10.6)
Transfers to subsidiary undertakings (4.8)
Share of profits after distributions (0.1)
Balances at 31 December 2002 5.4
The Group’s interests in joint ventures at 31 December 2001 comprised BL Rank Properties Limited (“BLRP”) and Entertainment Transportation
Specialists, Inc. (“ETS”). On 29 August 2002 the Group completed the sale of the properties held by BLRP and received cash proceeds of £16.6m.
At 31 December 2001, the Group owned 50% of the common stock of ETS, a Californian corporation whose principal activity is the management
of film studios’ inventory of film prints and the physical distribution of release prints and trailers. On 31 December 2002, the Group acquired
the remaining 50% of the common stock of ETS. Further details on the acquisition are provided in note 26.
On 10 September 2002, the Group acquired 50% of the ordinary share capital of Atlab Holdings Pty Limited (“Atlab”) for a cash consideration
of A$13.75m (£4.8m). The remaining share capital is owned by Amalgamated Holdings Limited. The principal activity of Atlab is as an investment
holding company. The company holds the investment in the Atlab Group of operating companies whose principal activities are ﬁlm processing
in Australasia.
2002 2001
£m £m
Share of retained loss for the period
Share of profits less losses after taxation (0.1) 1.2
Dividends and distributions receivable by the Group – (2.4)
Amounts retained attributable to the Group (0.1) (1.2)
13 INTERESTS IN ASSOCIATED UNDERTAKINGS (UNLISTED)
Group
£m
Balances at 31 December 2001 0.8
Currency translation adjustment (0.1)
Additions 3.7
Share of profits after distributions (0.4)
Balances at 31 December 2002 4.0
2002 2001
£m £m
Share of retained loss for the period
Share of operating loss (0.4) –
Provision for impairment – (0.6)
Amounts retained attributable to the Group (0.4) (0.6)
The Group’s interests in associated undertakings comprise 33
1
⁄ 3% of the common stock of The Lab in Toronto, Inc (“The Lab”) and 20% of the
equity of EFILM LLC (“EFILM”). The Lab is a film laboratory in Toronto that principally offers developing services to the feature film, television 
and commercial markets. The equity in EFILM was acquired on 2 July 2002 for a cash consideration of $5.2m (£3.7m). EFILM is a Delaware
limited liability corporation whose principal activity is the digital production of film elements necessary for bulk film processing.
14 OTHER INVESTMENTS
Group Company
£m £m
Balances at 31 December 2001 48.3 2.5
Currency translation adjustment (4.0) –
Additions 13.7 7.3
Balances at 31 December 2002 58.0 9.8 NOTES TO THE ACCOUNTS continued
58 The Rank Group Plc
14 OTHER INVESTMENTS CONTINUED
Other investments comprises £22.3m (2001 – £22.4m) in relation to the Group’s 10% equity investment in Universal Studios Japan, £23.3m
(2001 – £21.1m) in relation to the Group’s investment in the Universal Rank Hotel partnership in the US, £2.0m (2001 – £2.3m) in relation
to the Group’s investment in the Hard Rock hotel partnership in Chicago, £9.8m (2001 – £2.5m) in respect of 3,897,157 (2001 – 1,224,389)
ordinary shares in The Rank Group Plc held at cost by the Rank Group Employee Benefit Trust (“the Trust”) and £0.6m (2001 – £Nil) in
respect of the Group’s 10% equity investment in Medal Entertainment & Media plc.
Dividends on the shares held by the Trust have been waived by the trustee with the exception of one penny in total. The Trust may make such
investments in the shares of the Company or otherwise as the trustee may determine to provide beneﬁts to any eligible employee.The benefits
may be provided in the form of shares, cash or otherwise, although any share related beneﬁt will be provided in accordance with an appropriate
employee share scheme or bonus scheme of the Company.
15 STOCKS
Group
2002 2001
£m £m
Raw materials and consumables 36.8 29.0
Work in progress 2.0 3.3
Finished goods and goods for resale 27.1 28.7
Completed properties for resale 8.5 8.4
74.4 69.4
16 DEBTORS
Group
2001
2002 as restated
£m £m
Amounts falling due within one year
Trade debtors 209.5 150.6
Other debtors 57.3 33.9
Assets held for disposal 1.6 19.1
Deferred consideration receivable – 10.4
Instalment sale debtors and notes receivable 3.1 5.1
Advance contract payments 68.7 117.2
Deferred tax asset (note 22) 37.0 51.0
Prepayments and accrued income 34.6 43.1
411.8 430.4
Amounts falling due after more than one year
Other debtors 11.7 9.2
Instalment sale debtors and notes receivable 27.7 36.7
Advance contract payments 210.5 83.6
Deferred tax asset (note 22) 68.9 93.5
Prepayments and accrued income 0.9 1.3
319.7 224.3
Further details on the movement in advance contract payments are provided below:
Group
£m
Balance at 31 December 2001 200.8
Currency translation adjustment (19.2)
Amortisation charge for the year (75.2)
Additions 172.8
Balance at 31 December 2002 279.2 59 The Rank Group Plc
17 CASH, DEPOSITS AND CURRENT ASSET INVESTMENTS
Group
2002 2001
£m £m
Cash, current accounts and overnight deposits 81.7 69.1
Term deposits 1.5 48.5
83.2 117.6
Current asset investments 24.0 6.3
Cash, deposits and current asset investments (notes 27, 28) 107.2 123.9
Current asset investments comprise amounts invested in cash and fixed deposit funds operated by external fund managers and $25m fixed
rate bonds. The investments can be readily converted into cash. The funds are placed with counterparties with strong credit ratings. Cash,
deposits and current asset investments are receiving interest at ﬂoating rates in their currency of denomination, with 48% of the total being
held in sterling, 38% in US dollars, 8% in euros and the balance in a mix of other currencies.
18 LOAN CAPITAL AND BORROWINGS
Group
2002 2001
£m £m
Bank overdrafts 10.1 6.5
Other borrowings repayable:
Within one year or on demand 28.7 1.4
Between one and two years 140.3 1.0
Between two and five years 124.7 137.8
In five years or more 202.5 225.3
496.2 365.5
Total 506.3 372.0
Unsecured 500.0 369.4
Obligations under finance leases 6.3 2.6
Total 506.3 372.0
Amounts due within one year or on demand 38.8 7.9
Amounts due after more than one year 467.5 364.1
Loan capital and borrowings (notes 27, 28) 506.3 372.0
The Group had the following undrawn committed borrowing facilities available at 31 December 2002 and 2001:
2002 2001
£m £m
Expiring between one and two years 113.2 –
Expiring after more than two years – 250.0
Loan capital and borrowings 113.2 250.0
The analysis of other borrowings repayable above includes obligations under ﬁnance leases, of which £2.7m (2001 – £1.1m) expire within one
year, £3.4m (2001 – £1.0m) expire between one and two years and £0.2m (2001 – £0.5m) expire between two and five years.
Borrowings shown above include:
(a) £125m 7.25% Eurosterling bonds redeemable at par in 2008 (issued 1998);
(b) £124m US$200m 6.75% Yankee bonds redeemable at par in 2004 (issued 1997);
(c) £62m US$100m 6.375% Yankee bonds redeemable at par in 2008 (issued 1998); and
(d) £15m US$24.8m 7.125% Yankee bonds redeemable at par in 2018 (issued 1998).
The funding policy of the Group is to maintain a broad portfolio of debt, diversified by source and maturity, and to maintain committed
facilities sufficient to cover seasonal peak anticipated borrowing requirements.
The Company had no borrowings at 31 December 2002 (2001 – £Nil). NOTES TO THE ACCOUNTS continued
60 The Rank Group Plc
18 LOAN CAPITAL AND BORROWINGS CONTINUED
The ﬁnance costs of debt instruments are charged to the proﬁt and loss account over the term of the debt at a constant rate on the carrying
amount. Such costs include the costs of issue, any discount to face value arising on issue and any premium payable on maturity.
19 FINANCIAL INSTRUMENTS
A description of the policies relating to financial instruments is set out in the operating and financial review on page 31, and also in the
accounting policies on page 49. Short term debtors and creditors have been excluded from all the following disclosures other than within
the currency risk disclosures.
(a) Interest risk management
Financial liabilities
Some 39% of the Group’s loan capital and borrowings is at ﬁxed rates of interest with a weighted average interest rate of 7.0% (2001 – 7.1%) and a
weighted average term of 4.3 years (2001 – 5.9 years). At 31 December 2002, the Group’s net debt was predominantly denominated in US dollars.
Gross borrowings include loan capital and borrowings of £506.3m (note 18), and the effect of currency and interest rate swaps is to give a total 
of £767.3m. After taking account of interest rate and currency rate swaps, the currency and interest rate exposure of gross borrowings as at
31 December 2002 was:
Fixed rate borrowings
Weighted
Floating Weighted average time 
Gross rate Fixed rate average for which 
borrowings borrowings borrowings interest rate rate is ﬁxed
2002 £m £m £m % years
Sterling 213.9 86.3 127.6 7.3 5.2
US/Canadian dollar 441.7 372.9 68.8 6.8 5.6
Other currencies (net) 111.7 111.7 – – –
767.3 570.9 196.4 7.0 5.3
Fixed rate borrowings
Weighted
Floating Weighted average time 
Gross rate Fixed rate average for which 
borrowings borrowings borrowings interest rate rate is fixed
2001 £m £m £m % years
Sterling 134.4 6.8 127.6 7.3 6.2
US/Canadian dollar 383.1 296.7 86.4 6.9 5.6
Other currencies (net) 92.8 92.8 – – –
610.3 396.3 214.0 7.1 5.9
Floating rate borrowings incur interest based on relevant LIBOR equivalents.
In addition to the amounts disclosed in the above tables, the following meet the definition of financial liabilities:
– the Group’s sterling denominated convertible preference shares of £226.9m (2001 – £227.2m) are ﬁxed rate liabilities with a weighted average
interest rate of 8.3% (2001 – 8.3%) and a weighted average period over which the rate is fixed of 4.6 years (2001 – 5.6 years).
– the Group’s provisions of £24.8m (2001 – £27.9m) for vacant leasehold properties (note 21) are considered to be ﬂoating rate ﬁnancial
liabilities. This is because in establishing the provisions, the cash flows have been discounted using a discount rate which is re-appraised
at each half-yearly reporting date to ensure it reflects current market assessments of the time value of money and the risks specific to the
liability. £23.0m (2001 – £25.3m) of the balance is denominated in sterling and the remainder are US dollar denominated.
– £Nil (2001 – £17.5m) of the Group’s provisions on disposals (note 21).
– £22.3m (2001 – £32.4m) of the Group’s contract advances which are payable after more than one year. No interest is payable on these
US dollar denominated financial liabilities.
– £26.8m (2001 – £Nil) of deferred consideration payable after more than one year in respect of the acquisition of subsidiary undertakings.
£16.2m is US dollar denominated, £6.0m is in sterling with the balance denominated in euros. 61 The Rank Group Plc
19 FINANCIAL INSTRUMENTS CONTINUED
Financial assets
The financial assets shown below include cash, deposits and current asset investments of £107.2m (note 17) and the sterling element of
currency rate swaps.
2002 2001
£m £m
Sterling 302.1 333.3
US/Canadian dollar 51.6 5.9
Other currencies 14.5 23.0
Cash, investments and other financial assets 368.2 362.2
Floating rate cash earns interest based on relevant LIBID equivalents and investments earn interest according to the performance of the funds
in which they are invested.
Fixed rate assets
Weighted
Weighted average time 
Total Floating Fixed rate average for which 
asset rate asset asset interest rate rate is ﬁxed
2002 – Instalment sale debtors and notes receivable after one year £m £m £m % years
US dollar 27.7 15.6 12.1 13.6 4.6
Fixed rate assets
Weighted
Weighted average time 
Total Floating Fixed rate average for which 
asset rate asset asset interest rate rate is fixed
2001 – Instalment sale debtors and notes receivable after one year £m £m £m % years
US dollar 36.7 22.8 13.9 13.8 4.9
Floating rate instalment sale debtors and notes receivable after one year earn interest based on three and five year US treasury bills.
(b) Maturity of ﬁnancial liabilities
The maturity of loan capital and borrowings is given in note 18 above. The Company’s convertible preference shares of 
£226.9m (2001 – £227.2m) have a final redemption date of 2007.
For other financial liabilities, note 21 gives an indication of the nature of the underlying liabilities in respect of provisions. The maturity profile
of these liabilities together with deferred consideration and contract advances is as follows:
Onerous Contract Deferred 2002 2001
contracts advances consideration £m £m
Within one year or on demand 9.0 – – 9.0 22.9
Between one and two years 0.5 9.1 17.6 27.2 13.5
Between two and five years 0.4 13.2 6.4 20.0 15.5
Over five years 14.9 – 2.8 17.7 25.9
24.8 22.3 26.8 73.9 77.8
(c) Exchange risk management
After taking into account the effect of forward exchange contracts, there are no material net monetary assets/liabilities of Group companies
denominated in currencies other than the relevant Group company’s own functional currency.
The Group operates a prudent hedging policy relating to its cross currency business trading cash flows. Currency exposures are netted by
currency and hedged forward for up to five years using forward foreign exchange contracts. At the year end at least 80% of anticipated core
currency transaction exposures for the following 12 months had been hedged. The fair value of these hedges is set out in section (d) below.
(d) Fair values
The estimated fair values of the Group’s ﬁnancial assets and ﬁnancial liabilities at 31 December 2002 and 2001 are set out below. The fair value 
of quoted borrowings is based on year end mid-market quoted prices. The fair values of other borrowings and the derivative financial
instruments are estimated by discounting the future cash ﬂows to net present values using appropriate market rates prevailing at the year end.
The fair value of the convertible preference shares is calculated by reference to the open market value at year end. NOTES TO THE ACCOUNTS continued
62 The Rank Group Plc
19 FINANCIAL INSTRUMENTS CONTINUED
Primary financial instruments held or issued to finance the Group’s operations:
Net carrying Fair Net carrying Fair 
amount value amount value
2002 2002 2001 2001
£m £m £m £m
Short term financial liabilities and current portion of long term borrowings (175.6) (175.6) (7.9) (7.9)
Long term borrowings (330.7) (338.1) (364.1) (359.6)
Cash at bank and liquid investments 107.2 107.6 123.9 123.9
Other financial assets 27.7 27.7 36.7 36.7
Convertible preference shares (226.9) (237.7) (227.2) (234.3)
Other financial liabilities (73.9) (73.9) (77.8) (77.8)
The difference between net carrying amount and estimated fair value reflects unrealised gains or losses inherent in the instruments based on
valuations at 31 December 2002. The volatile nature of the markets means that values at any subsequent date could be significantly different
from the values reported above.
Financial derivative instruments
The estimated current value of the foreign exchange forward contracts and interest rate swaps entered into to hedge future transaction ﬂows
and on-balance sheet exposures is set out below based on quoted market prices.
Book Current Book Current
value value value value
2002 2002 2001 2001
£m £m £m £m
Interest rate swaps – 10.5 – 4.1
Foreign exchange forward rate contracts –4.4 – (14.9)
Foreign currency swaps 3.0 3.0 8.1 8.1
(e) Hedges
As explained in the operating and financial review on page 31, the Group’s policy is to hedge the following exposures:
– Interest rate risk, using interest and currency swaps; and
– Currency risk, using forward foreign currency contracts for foreign currency receipts and payments. Forward foreign currency contracts are
also used for currency exposures on future years’ forecasted sales.
The table below shows the extent to which the Group has off-balance sheet (unrecognised) gains and losses in respect of ﬁnancial instruments
used as hedges at the beginning and end of the year. It also shows the amount of such gains and losses which have been included in the proﬁt
and loss account for the year and those gains and losses which are expected to be included in next year’s or later proﬁt and loss accounts.
All the gains and losses on the hedging instruments are expected to be matched by losses and gains on the hedged transactions or positions.
Unrecognised
Total net
gains
Gains Losses (losses)
£m £m £m
Gains and losses on hedges at 1 January 2002 4.5 (15.3) (10.8)
Arising in previous years included in 2002 income (4.5) 8.6 4.1
Gains and losses not included in 2002 income:
Arising before 1 January 2002 – (6.7) (6.7)
Arising in 2002 on pre 1 January 2002 contracts 15.7 6.7 22.4
Arising in 2002 on 2002 contracts 0.1 (0.9) (0.8)
Gains and losses on hedges at 31 December 2002 15.8 (0.9) 14.9
of which:
Gains and losses expected to be included in 2003 income 6.9 (0.9) 6.0
Gains and losses expected to be included in 2004 income or later 8.9 – 8.9
There are no significant deferred gains or losses on hedge transactions. 63 The Rank Group Plc
19 FINANCIAL INSTRUMENTS CONTINUED
(f) Financial instruments held for trading purposes
The Group does not trade in financial instruments.
(g) Credit risk
The counterparties to the forward exchange contracts and term deposits are major international ﬁnancial institutions with strong credit ratings.
The Group continually monitors its positions and the credit ratings of its counterparties.
20 OTHER CREDITORS
Group Company
2002 2001 2002 2001
£m £m £m £m
Amounts falling due within one year
Trade creditors 104.9 80.9 – –
Amounts owed to subsidiary undertakings – – 471.8 371.5
Other creditors 52.0 39.4 – –
Other tax and social security 10.1 10.8 – –
UK corporation tax and overseas taxation 25.6 16.6 – 2.4
Deferred consideration 19.2 – – –
Accrued dividends on preference shares 7.8 7.8 7.8 7.8
Proposed final dividend on ordinary shares 52.1 49.7 52.1 49.7
Contract advances payable 20.5 53.6 – –
Accruals and deferred income 111.3 104.9 3.4 4.2
403.5 363.7 535.1 435.6
Amounts falling due after more than one year
Other creditors 4.0 7.5 – –
UK corporation tax and overseas taxation 30.3 34.4 – –
Deferred consideration 26.8 – – –
Contract advances payable 22.3 32.4 – –
Accruals and deferred income 0.1 4.9 – –
83.5 79.2 – –
21 PROVISIONS FOR LIABILITIES AND CHARGES
Provisions
Onerous Restructuring on
contracts costs disposals Other Total
£m £m £m £m £m
Group
Balances at 31 December 2001 27.9 9.1 42.9 7.9 87.8
Currency translation adjustment (0.1) (0.1) (0.1) (0.1) (0.4)
Profit and loss account
– operating charge 0.7 (0.9) – 5.3 5.1
– non-operating items – – – (0.2) (0.2)
Net interest: release of discount 1.3 – – – 1.3
Utilised in the year (5.0) (5.1) (31.7) (0.3) (42.1)
Balances at 31 December 2002 24.8 3.0 11.1 12.6 51.5
Other
£m
Company
Balance at 31 December 2001 and 31 December 2002 2.2
Onerous contracts
The Group is party to a number of leasehold property contracts. Provision has been made against those leases where the property is now vacant
and the unavoidable costs under the lease exceed the economic benefit expected to be derived from potential sub-letting arrangements.
The provision made in the year includes costs relating to properties which have become surplus to requirements. Further details on the
maturity profile of this provision are provided in note 19.
Restructuring costs
The restructuring provisions held at 31 December 2002 relate to provisions established in 2000 and 2001 following the reorganisation of the
Deluxe Media businesses in the US and Europe. The remaining provision is expected to be utilised within the next year. NOTES TO THE ACCOUNTS continued
64 The Rank Group Plc
21 PROVISIONS FOR LIABILITIES AND CHARGES CONTINUED
Provisions on disposals
This provision was established in 2000 following the disposal of Nightscene, Odeon Cinemas, Pinewood Studios, Tom Cobleigh and UK Holidays.
The provision remaining at 31 December 2002 relates to outstanding insurance claims and potential warranty claims as described in the
sales contracts. Utilisation of these provisions is likely to vary over the next few years.
Other provisions
Provisions include amounts relating to the Rank Group 2000 Long Term Incentive Plan which provides for executive directors and selected
executives to be given restricted awards over existing ordinary shares with a market value of up to one times base salary. These awards will
vest in 2003 and 2004, subject to satisfaction of applicable performance conditions.
22 DEFERRED TAX
The analysis of the deferred tax asset included in the financial statements at the end of the year is as follows:
Group
2001
2002 (as restated)
£m £m
Accelerated capital allowances 15.4 19.6
Other UK timing differences (1.2) (0.8)
Tax losses carried forward 72.1 99.5
Other overseas timing differences 19.6 26.2
105.9 144.5
The movement in the deferred tax asset is provided below:
Group
£m
Balance at 31 December 2001 (as restated – see note 5c) 144.5
Currency translation adjustment (10.4)
Charge to the profit and loss account (see note 5a) (28.2)
Balance at 31 December 2002 105.9
The Group has provided for a deferred tax asset in respect of tax losses carried forward because it believes that there will be future taxable
profits against which the underlying differences will reverse.
23 CAPITAL AND RESERVES
2002 2001
Authorised Issued and fully paid Authorised Issued and fully paid
Nominal Nominal Nominal Nominal
Number value Number value Number value Number value
m£m m £m m£m m £m
US$ cumulative preference shares – 3–– –3 – –
Convertible preference shares of 20p each 300 60 226.9 45.4 300 60 227.2 45.4
Ordinary shares of 10p each 1,200 120 594.1 59.4 1,200 120 591.9 59.2
183 104.8 183 104.6
Under the share savings schemes operated by the Company employees hold options to subscribe for up to 6,114,307 (2001 – 6,278,287)
ordinary shares at prices between 141p and 271.58p per share exercisable by 30 November 2007.
Under the executive share option schemes operated by the Company, directors and executives hold options to subscribe for up to
13,878,632 (2001 – 13,073,455) ordinary shares at prices ranging between 155.25p and 475.76p per share exercisable over the period up 
to 17 September 2012.
Options granted pursuant to share savings schemes are issued at a discount to the prevailing market price. Under the provisions of UITF 17
(Revised) no provision is required for the difference between market price and exercise price.
Options granted under the share savings schemes are exercisable normally within a period of six months after the third or fifth anniversary 
of the related savings contract. Options granted under the executive share option schemes are exercisable normally within a period
commencing on the third anniversary and ending on the tenth anniversary of the date of grant. 65 The Rank Group Plc
23 CAPITAL AND RESERVES CONTINUED
On 6 June 2002, 64,852 ordinary shares were issued by virtue of the conversion of 239,026 convertible preference shares (“Preference shares”);
a further 2,235,708 ordinary shares were issued during the year on the exercise of options.
Non-equity shareholders’ funds relate entirely to the Preference shares. These shares carry an entitlement to a dividend at the rate of 8.25p
(net) per share per annum. They are convertible in any of the years up to 2003 into ordinary shares of 10p each at a rate equivalent to 27.132
ordinary shares for every 100 Preference shares and may be redeemed at £1 per share at any time after 30 June 2003 at the option of the
Company and, in any event, will be redeemed at £1 per share on 31 July 2007. Holders of the Preference shares have one vote for every five
shares held but only on a resolution for the winding-up of the Company or on a resolution affecting the rights attached to the shares or if the
Preference dividend has remained unpaid for six months. Holders of Preference shares have the right on a winding-up to receive in priority
to any other class of shares the sum of £1 per share together with any arrears of dividend.
£m
Share premium account
Balance at 31 December 2001 8.5
Movement on issue of shares 5.1
Balance at 31 December 2002 13.6
£m
Capital redemption reserve
Balances at 31 December 2001 and 31 December 2002 24.8
Company and its subsidiaries
Preference Associated
redemption Other undertakings Group
Other reserves £m £m £m £m
Group
Balances at 31 December 2001 – as restated 11.4 581.1 (1.7) 590.8
Currency translation adjustment – (27.0) – (27.0)
Surplus on profit and loss account for the year – 37.5 – 37.5
Provision for redemption premium 2.2 – – 2.2
Movements on share options – (0.7) – (0.7)
Realisation of goodwill on disposals – 2.6 – 2.6
Balances at 31 December 2002 13.6 593.5 (1.7) 605.4
Of the £27.0m loss on other net currency translation adjustments, a gain of £28.8m arises from the translation of foreign currency borrowings
less deposits. The total cumulative goodwill eliminated against reserves at 31 December 2002 amounted to £957.0m (2001 – £1,024.1m).
Preference
redemption Other Total
Other reserves £m £m £m
Company
Balances at 31 December 2001 11.4 1,112.4 1,123.8
Deficit on profit and loss account for the year – (99.0) (99.0)
Provision for redemption premium 2.2 – 2.2
Movements on share options – (0.7) (0.7)
Balances at 31 December 2002 13.6 1,012.7 1,026.3
24 ANALYSIS OF MINORITY INTERESTS
Equity
total
£m
Balances at 31 December 2001 15.2
Currency translation adjustment (2.0)
Minority interest in the profit on ordinary activities after tax 2.1
Additions 6.9
Distributions to minority interests (2.1)
Balances at 31 December 2002 20.1
Additions during the year relate to the 20% interest in Deluxe Global Media Services LLC held by Ritek Corporation. NOTES TO THE ACCOUNTS continued
66 The Rank Group Plc
25 RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS
2002 2001
£m £m
Operating profit 213.4 172.2
Exceptional charges 6.2 37.5
Cash payments in respect of exceptional costs and provisions (15.8) (27.4)
Depreciation and amortisation 80.6 81.1
Increase in stocks (9.0) (3.1)
Increase in debtors (212.8) (15.3)
Increase in creditors 48.7 27.8
Other items (4.0) (6.4)
Net cash inflow from operating activities 107.3 266.4
26 ACQUISITION OF SUBSIDIARY UNDERTAKINGS
Ritek Other Total
venture acquisitions 2002
£m £m £m
Tangible fixed assets 29.0 21.5 50.5
Net current (liabilities) assets (excluding cash) (4.9) 2.9 (2.0)
Cash acquired –3.4 3.4
Borrowings acquired (3.6) (2.9) (6.5)
Lease obligations acquired (3.3) (1.1) (4.4)
17.2 23.8 41.0
Less minority interests (6.9) – (6.9)
Net assets acquired 10.3 23.8 34.1
Goodwill 23.5 27.1 50.6
Consideration 33.8 50.9 84.7
Satisfied by:
Cash paid 14.2 24.5 38.7
Deferred consideration 19.6 26.4 46.0
33.8 50.9 84.7
Significant acquisitions in 2002 are as follows:
Ritek venture
On 19 July 2002, the Group acquired 80% of the issued share capital of Deluxe Global Media Services LLC (“DGMS”). The remaining 20% is
owned by Ritek Corporation, a manufacturer of optical discs. Total consideration for the acquisition was £33.8m, of which £19.6m is deferred.
Of the unconditional deferred consideration of £19.6m, £9.8m was paid on 3 January 2003 with the final instalment of £9.8m due on
1 January 2004. No information is available in respect of the book values of assets and liabilities contributed by Ritek Corporation to DGMS
and accordingly book values have not been disclosed. Pre-acquisition results of the acquired business are not material.
Other acquisitions
During 2002, three new bingo clubs were acquired in Madrid, Barcelona and Seville in Spain for a total consideration of £16.7m of which
£5.8m is deferred. The deferred consideration is payable in instalments between 2003 and 2006.
On 21 February 2002 the Group acquired Vision Entertainment Inc for a cash consideration of £3.2m.
On 8 November 2002, the Group acquired 100% of the net assets of Capital FX Holdings Limited, a laser sub-titling and digital effects
company in the UK.Total consideration was £9.6m, of which £6.0m is deferred. £3.5m of the deferred consideration is contingent upon achieving
pre-defined earnings targets in the five calendar years from 2004 to 2008. The remainder is payable in instalments from 1 March 2004 to 
1 March 2008.
On 29 November 2002, the Group acquired 95% of the net assets of Image SA, a film laboratory in Barcelona, Spain. Total consideration was
£6.7m, of which £0.4m is deferred.
On 31 December 2002, the Group acquired the remaining 50% of the common stock of Entertainment Transportation Specialists, Inc (“ETS”).
All £14.2m consideration for ETS is deferred. Of the deferred consideration £1.6m is contingent upon achieving pre-defined earnings targets 
in the three calendar years from 2004 to 2006. The remainder is payable in instalments between 2003 and 2007. £7.4m was paid in January 2003. 67 The Rank Group Plc
26 ACQUISITION OF SUBSIDIARY UNDERTAKINGS CONTINUED
Prior to becoming a subsidiary, ETS was accounted for as a joint venture. In accordance with FRS 2 and in order to give a true and fair 
view, purchased goodwill has been calculated as the sum of the goodwill arising on each purchase of the identifiable assets and liabilities
attributable to the interest purchased. This represents a departure from the statutory method, under which goodwill is calculated as the
difference between cost and fair value on the date that ETS became a subsidiary. The statutory method would not give a true and fair view
because it would result in the Group’s share of ETS’s retained reserves, during the period that it was an associate, being characterised as
goodwill. The effect of this departure is to increase retained proﬁt by £2.4m and to increase purchased goodwill charged to intangible assets 
by £2.4m.
There is no material difference between the book value and fair value of other acquisitions.
27 RECONCILIATION TO NET DEBT
2002 2001
£m £m
Decrease in cash in the year (29.0) (43.8)
(Increase) decrease in debt and lease financing (159.7) 117.3
Movement in liquid resources (a) 18.8 (5.4)
Decrease in net debt from cash flows (169.9) 68.1
New finance leases – (1.4)
Borrowings and leases acquired with subsidiaries (10.9) –
Gain on repayment of fixed rate debt 1.0 7.7
Currency translation adjustment 28.8 (2.6)
(Increase) decrease in net debt in year (151.0) 71.8
Net debt at 1 January (248.1) (319.9)
Net debt at 31 December (399.1) (248.1)
Cash, deposits and current asset investments (note 17) 107.2 123.9
Loan capital and borrowings (note 18) (506.3) (372.0)
Net debt at 31 December (399.1) (248.1)
(a) The movement in liquid resources consisted of purchases of deposits and investments of £25.1m (2001 – £6.3m) and sales of £6.3m
(2001 – £11.7m).
28 ANALYSIS OF NET DEBT
Acquisitions Other Currency
31 December Cash (excluding non-cash translation 31 December
2001 flow cash) changes adjustment 2002
£m £m £m £m £m £m
Cash in hand and at bank 117.6 (25.4) – – (9.0) 83.2
Overdrafts (6.5) (3.6) – – – (10.1)
(29.0) 73.1
Debt due after one year (362.7) (134.4) (6.5) 1.0 38.7 (463.9)
Debt due within one year (0.2) (25.8) – – (26.0)
Finance leases (2.6) 0.5 (4.4) – 0.2 (6.3)
(159.7) (496.2)
Liquid resources 6.3 18.8 – – (1.1) 24.0
Total (248.1) (169.9) (10.9) 1.0 28.8 (399.1)
Liquid resources comprise current asset investments which, as described in note 17, represent amounts readily convertible into cash.
Other non-cash changes comprise the gain on repayment of fixed rate debt. NOTES TO THE ACCOUNTS continued
68 The Rank Group Plc
29 DIRECTORS
(a) Directors’ interests
The directors’ interests in shares or stocks of the Company, including options to purchase ordinary shares under the terms of the Group’s
executive share option scheme and share savings scheme, and conditional awards under the long term incentive plan, are detailed in the
remuneration report. Details of options to subscribe for ordinary shares of the Company granted to or exercised by directors, or which lapsed,
in the year ended 31 December 2002 are also detailed in the remuneration report.
(b) Total emoluments of the directors of The Rank Group Plc
2002 2001
£000 £000
Fees 95 110
Base salaries, allowances and taxable benefits 1,043 1,087
Bonuses 407 541
Salary supplements 60 54
Aggregate emoluments 1,605 1,792
Pension contributions – defined contributions 238 238
Compensation for loss of office – Jerry Fowden (including contribution 
to unapproved retirement benefit scheme – £166,000) – 751
Total emoluments 1,843 2,781
(c) Emoluments of Chairman 160 107
(d) Emoluments of highest paid director* 1,058 1,103
(e) Company policy on the remuneration of directors and details of the remuneration of each director are set out in the remuneration report
on pages 34 to 39.
*Including Company contributions to defined contribution pension arrangements.
30 EMPLOYEES
2002 2001
Employee costs £m £m
Wages and salaries 322.5 303.3
Social security costs 28.7 25.7
Other pension costs 6.3 7.9
357.5 336.9
Average number of employees by geographical area 2002 2001
UK 10,628 10,560
North America 8,772 8,190
Rest of the World 2,462 2,205
21,862 20,955
The Group has continued to account for pensions in accordance with SSAP 24 and the disclosures given in (a) below are those required by
that standard. FRS 17 “Retirement Beneﬁts” was issued in November 2000 but will not require full implementation for the Group and Company
until the year ended 31 December 2005. Prior to this, phased transitional disclosures are required from 31 December 2001. The disclosures
required are presented in (b) below.
(a) Provision for pension and similar obligations
UK The Group has two pension schemes for UK employees, both of which are contracted out of the State Second Pension arrangements.
The schemes are externally funded under separate trusts and the funds’ assets are held separately from Group assets. The accounts of both
schemes for the year ended 5 April 2002 have been reported upon by their auditors without qualification.
The Rank Pension Plan (“the Plan”) is a deﬁned beneﬁt scheme with pensions ﬁxed by reference to ﬁnal pay and length of service.The market
value of the Plan’s assets at 5 April 2002 was £575.2m (2001 – £589.9m).
Formal actuarial valuations of the Plan are carried out at least triennially by an independent actuary, Mercer Human Resource Consulting Limited.The
most recent valuation has an effective date of 5 April 2001 and has been used to determine the pension charge for the year to 31 December 2002. 69 The Rank Group Plc
30 EMPLOYEES CONTINUED
The main actuarial assumptions adopted were:
Valuation method attained age
Rate of return on investments 
– pre retirement 6.25% p.a
– post retirement 5.25% p.a
Rate of increase of pensionable remuneration 3.75% p.a
Rate of discretionary pension increases 1.50% p.a
Rate of pensions in payment increases* 2.50% p.a
*Pensions in payment are entitled to increases in line with price inflation subject to a maximum of 5% per annum.
In prior years, the Plan has been valued under the projected unit method. Following the closure of the Plan to new entrants, the attained age
valuation method has been adopted since 2001.
Assets were taken at their market value. As at the actuarial valuation date the value of the assets was sufficient to cover 109% of the accrued
benefits allowing for expected future increases in earnings.
The pension charge for the year to 31 December 2002 was £0.6m (2001 – £1.9m). The charge was determined after recognising a credit of
£4.9m resulting from spreading the expensing surplus of £36.5m as at 1 January 2001 over the average remaining service lives of the active
members of the Plan.
The decline in stock market values since the actuarial valuation of the Plan on 5 April 2001 and the increase in accrued liabilities as a result 
of changes in financial conditions have resulted in a deficit in the fund at 31 December 2002, calculated in accordance with the requirements
of FRS 17. Under current accounting policies these matters are not required to be reﬂected in the pension charge until the next formal actuarial
valuation, which will take place no later than 5 April 2004.
At 31 December 2002 there was a prepayment in debtors of £15.1m (2001 – £11.0m) resulting from the difference between pension costs
charged in the accounts and the amounts funded to date.
The Rank Money Purchase Pension Scheme is a defined contribution scheme with benefits which depend on the contribution levels and
the emerging investment performance. The market value of its assets at 5 April 2002 was £35.4m (2001 – £37.8m). Group contributions to this
scheme in the year to 31 December 2002 totalled £1.3m (2001 – £0.9m).
US The Group operates defined contribution schemes in the US. Group contributions to these schemes totalled £3.9m (2001 – £3.3m).
(b) FRS 17 “Retirement Beneﬁts”
The Group has continued to adopt FRS 17 “Retirement Benefits” under the phased transitional arrangements allowed by the standard.
The disclosures below relate to all retirement benefit plans in the UK.
A full actuarial valuation was carried out at 5 April 2001 and updated by an independent actuary to 31 December 2002.
The main actuarial assumptions used to calculate the Plan’s liabilities under FRS 17 are:
2002 2001
Valuation method projected unit projected unit
Discount rate 5.50% 6.00%
Inflation assumption 2.25% 2.50%
Rate of increase in salaries 3.50% 3.75%
Rate of increase of deferred pensions 2.25% 2.50%
Rate of increase of pensions in payment increases (5% LPI increases) 2.25% 2.50%
The assets in the Plan and the expected rate of return were:
Long term Long term
rate of return Value at rate of return Value at
expected at 31 December expected at 31 December
31 December 2002 31 December 2001
2002 £m 2001 £m
Equities 7.0% 280.0 7.5% 361.5
Government bonds 4.5% 90.0 5.0% 106.0
Non-government bonds 5.5% 66.4 6.0% 71.6
Insurance policies 5.5% 13.3 6.0% 15.4
Cash 4.0% 16.0 4.0% 11.0
Total market value of assets 465.7 565.5 NOTES TO THE ACCOUNTS continued
70 The Rank Group Plc
30 EMPLOYEES CONTINUED
The following amounts at 31 December 2002 and 31 December 2001 were measured in accordance with the requirements of FRS 17.
2002 2001
£m £m
Total market value of assets 465.7 565.5
Actuarial value of defined benefit liabilities (556.6) (528.6)
(Deﬁcit) surplus in the Plan (90.9) 36.9
Related deferred tax asset (liability) 27.3 (11.1)
Net pension (liability) asset (63.6) 25.8
If FRS 17 had been adopted in the accounts, the Group’s net assets and profit and loss reserve at 31 December 2002 and 31 December 2001
would have been as follows:
2001
2002 (as restated)
£m £m
Net assets
Net assets excluding pension asset 753.6 732.9
Pension (liability) asset (63.6) 25.8
Net assets including pension (liability) asset 690.0 758.7
2001
2002 (as restated)
£m £m
Reserves
Profit and loss reserve excluding pension assets 578.4 570.1
Pension reserve (63.6) 25.8
Profit and loss reserve 514.8 595.9
The Plan is closed to new entrants. Under the projected unit method, the current service cost will increase as the members of the Plan
approach retirement.
The following amounts would have been recognised in the performance statements in the year to 31 December 2002 under the requirements
of FRS 17:
2002
£m
Operating proﬁt
Current service cost 5.0
Past service cost –
Total operating charge 5.0
Other ﬁnance income
Expected return on Plan assets 37.5
Interest on Plan liabilities (31.3)
Net return 6.2
Statement of total recognised gains and losses
Actual return less expected return on Plan assets (122.4)
Experience gains and losses arising on Plan liabilities 17.5
Changes in assumptions underlying the present value of Plan liabilities (28.6)
Actuarial loss recognised (133.5) 71 The Rank Group Plc
30 EMPLOYEES CONTINUED
2002
£m
Movement in (deﬁcit) surplus during the year
Surplus in Plan at beginning of the year 36.9
Movement in year:
Current service cost (5.0)
Contributions 4.5
Past service costs –
Other finance income 6.2
Actuarial loss (133.5)
Deficit in Plan at end of the year (90.9)
2002
Details of experience gains and losses for the year to 31 December 2002
Difference between the expected and actual return on Plan assets:
Amount (£m) (122.4)
Percentage of Plan assets 26%
Experience gains and losses on Plan liabilities:
Amount (£m) 17.5
Percentage of the present value of Plan liabilities 3%
Total amount recognised in statement of total recognised gains and losses:
Amount (£m) (133.5)
Percentage of the present value of Plan liabilities 24%
31 CONTINGENT LIABILITIES
2002 2001
£m £m
Group
Guarantees by the Company and by subsidiary undertakings 38.9 50.6
The Group is involved in a dispute with Serena Holdings Limited over the purchase consideration of an acquisition which has been referred
to an expert for determination. The dispute centres upon the parties’ contentions in relation to the accounts and the profits of the businesses
based upon which an additional purchase consideration may be payable. The directors are strongly resisting the payment of any further sum.
At the present time the outcome to the Group cannot be determined and the potential liability cannot be quantiﬁed. However, it is the opinion
of the directors that it is unlikely that the outcome of this dispute will have a material effect on the Group’s financial position.
Subsidiary undertakings are involved in actions, including class action suits, in the US. These actions are being vigorously contested and the
directors believe that none of these actions will result in a material adverse effect on the ﬁnancial condition of the Group. Additional information
required to be disclosed by FRS 12 “Provisions, Contingent Liabilities and Contingent Assets” is not disclosed on the grounds that it can be
expected to prejudice the outcome of these matters.
2002 2001
£m £m
Company
Guarantees of advances to subsidiary undertakings 901.4 807.6
No security has been given in respect of any contingent liability. NOTES TO THE ACCOUNTS continued
72 The Rank Group Plc
32 COMMITMENTS 
Future capital expenditure 
At 31 December 2002 commitments for capital expenditure amounted to £24.1m (2001 – £18.3m) for the Group.
Group operating lease commitments
At 31 December 2002 commitments to make payments under operating leases in the following 12 months were:
Land and buildings Plant and machinery
2002 2001 2002 2001
£m £m £m £m
Leases expiring in one year 3.3 3.3 0.2 0.1
Leases expiring in two to five years 5.7 15.3 14.3 8.8
Leases expiring in more than five years 47.4 32.2 – –
56.4 50.8 14.5 8.9
33 RELATED PARTY TRANSACTIONS
On 19 July 2002 the Group purchased a controlling interest in Deluxe Global Media Services LLC (“DGMS”), further details are provided
in note 26. Group sales to DGMS were £4.0m and at 31 December 2002, DGMS owed the Group £6.2m.
On 10 September 2002 the Group purchased a 50% interest in Atlab Holdings Pty Limited (“Atlab”), further details are provided in note 12.
Group sales to Atlab were £1.7m, purchases were £16.6m in the period after acquisition. At 31 December 2002 the joint venture owed the
Group £1.2m.
On 31 December 2002 the Group purchased the remaining 50% of the common stock of Entertainment Transportation Specialists, Inc (“ETS”),
further details are provided in note 12. During the year the Group charged ETS a marketing fee of £0.3m.
During the year the Group traded with its associate undertakings, The Lab and EFILM. Group sales to these associate undertakings totalled
£0.9m, purchases totalled £0.1m, marketing fees totalled £0.2m and at 31 December 2002 these associates owed the Group £0.3m.
During the year the Group traded with its joint venture investment BL Rank Properties Limited (“BLRP”). £4.4m of rental payments to BLRP
were made in the year.
The British Land joint venture ended with the disposal of all its remaining properties on 29 August 2002 for cash proceeds of £109m and 
net cash proceeds, after financing, for the Group of £16.6m.
The Group recharges the Rank Group UK Pension schemes with the costs of administration and independent pension advisers borne by
the Group. The total amount recharged in the year ended 31 December 2002 was £1.6m (2001 – £1.5m).
34 POST BALANCE SHEET EVENT
On 27 January 2003 the Group completed its acquisition of Blue Square Limited, one of the UK’s leading internet and telephone betting
businesses, for a consideration of £65m in unlisted, unsecured convertible loan stock, convertible into Rank ordinary shares at the rate 
of 282p for every £1 of loan stock held. Full conversion of the loan stock would result in the issue of 23 million new Rank ordinary shares.
In the 12 months to December 2002 Blue Square received total stakes of £202.0m and generated gross win of £13.4m. The Group intends
to combine its current internet operations with those of Blue Square – any costs or adjustments to asset carrying values associated with
this integration which may arise as a result of this integration will be included in the accounts for the year ending 31 December 2003. The
transaction is not considered material to the Group and accordingly no pro forma statement of net assets of the enlarged Group has been
included in this note. PRINCIPAL SUBSIDIARY UNDERTAKINGS
73 The Rank Group Plc
Except where otherwise stated, The Rank Group Plc (“Rank”) owns directly or indirectly 100% of the ordinary share capital and voting rights of
the following companies. The companies are incorporated in Great Britain unless otherwise indicated after the company name. The principal
operations are carried out in the country of registration.
Gaming Principal activities
Grosvenor Casinos Limited London and provincial casinos
Mecca Bingo Limited Social and bingo clubs
Rank Leisure Machine Services Limited Amusement machine hire and sales
Rank Group Gaming Division Limited Owns the Group’s investments in Gaming division companies
Hard Rock
Hard Rock Cafe International (USA) Inc. (US) Operates and franchises Hard Rock Cafes 
Hard Rock International Limited Operates and franchises Hard Rock Cafes
Hard Rock Canada Inc. (Canada) Operates and franchises Hard Rock Cafes
Deluxe 
Deluxe Laboratories Limited Film processing laboratory
Deluxe Laboratories Inc. (US) Film processing laboratory
Deluxe Toronto Limited (Canada) Film processing laboratory
Deluxe Media Services Inc. (US) Video duplication and distribution
Deluxe Global Media Services LLC (US) DVD replication
– (Rank owns 80% of the issued shares)
Holding & other companies
Rank America Inc. (US) Owns the Group’s investments in the US
Rank Group Finance Plc* Funding operations for the Group
Rank Leisure Holdings Plc* Owns the Group’s investments in the UK operating 
subsidiary undertakings, Rank Overseas Holdings Limited 
and BL Rank Properties Ltd
Rank Overseas Holdings Limited Owns the Group’s investment in Rank Holdings 
(Netherlands) BV and Rank America Inc.
*directly held by the Company. FIVE YEAR REVIEW
74 The Rank Group Plc
YEAR ENDED 31 DECEMBER
2001 2000 1999 1998
2002 (as restated) (as restated) (as restated) (as restated)
£m £m £m £m £m
Turnover
Current operations (including acquisitions) 1,465 1,367 1,404 1,330 1,334
Former operations – – 389 711 723
1,465 1,367 1,793 2,041 2,057
Operating proﬁt before exceptional items
Current operations (including acquisitions) 220 210 203 196 178
Former operations – – 60 111 96
220 210 263 307 274
Exceptional items charged against operating profit (6) (38) (44) (98) (99)
Non-operating items (including share of associates) 4 9 (450) 32 (207)
Universal Studios Escape before exceptional items – – (11) (2) 22
Universal Studios Escape exceptional items – – (1) (46) (24)
Other associates and joint ventures 3 3(11) 2 1
Interest (net) (23) (24) (87) (87) (50)
Proﬁt (loss) before tax 198 160 (341) 108 (83)
Tax (59) (67) 173 (43) (71)
Minority interests (2) (2) (3) (2) (3)
Preference dividends (21) (21) (21) (21) (21)
Earnings (loss) 116 70 (192) 42 (178)
Basic earnings (loss) per ordinary share 19.6p 11.9p (27.6)p 5.4p (23.3)p
Basic earnings per ordinary share before exceptional items 19.9p 16.5p 38.7p 19.3p 19.9p
Total dividend per ordinary share 13.2p 12.6p 12.0p 12.0p 18.5p
YEAR ENDED 31 DECEMBER
2001 2000 1999 1998
2002 (as restated) (as restated) (as restated) (as restated)
£m £m £m £m £m
Group funds employed
Fixed assets 833 733 780 1,938 1,872
Investments 67 65 56 390 348
Other assets (net) 268 194 231 59 110
Total funds employed at year end 1,168 992 1,067 2,387 2,330
Financed by 
Ordinary share capital and reserves 522 505 509 991 1,043
Preference share capital including premium 227 224 222 220 218
Minority interests 20 15 16 14 12
769 744 747 1,225 1,273
Net debt 399 248 320 1,162 1,057
1,168 992 1,067 2,387 2,330
Average number of employees (000’s) 20.9 21.0 37.1 43.1 45.6 75 The Rank Group Plc
SHAREHOLDER INFORMATION
Registrar
All enquiries relating to ordinary and convertible preference
shareholders, dividends and changes of address should be
addressed to the Company’s registrar (quoting reference number
1235), Lloyds TSB Registrars, The Causeway, Worthing, West Sussex 
BN99 6DA (Tel: 0870 600 3953). There is a text phone available on 
0870 600 3950 for shareholders with hearing difficulties.
www.shareview.co.uk
The Shareview Portfolio service from the Company’s registrar 
gives shareholders more control of their Rank shares and other
investments including:
• direct access to data held for them on the share register including
recent share movements and dividend details;
• a recent valuation of their portfolio;
• a range of information and practical help for shareholders.
It is easy and free to set up a portfolio – shareholders will just need
the shareholder reference printed on their proxy form or dividend
stationery. Visit the website for more details: www.shareview.co.uk.
Payment of dividends
Shareholders whose dividends are not currently paid to mandated
accounts may wish to consider this method of payment, which 
has a number of advantages: dividends are paid direct into the
shareholder’s nominated account, cleared funds are provided 
on the payment date, and the relevant tax voucher is sent to the
shareholder’s registered address.
If shareholders would like future dividends paid in this way, they
should contact the registrar for a dividend mandate form. A mandate
form will also be attached to the next dividend cheque.
ShareGift
Shareholders with a small number of shares, the value of which
makes it uneconomical to sell, may wish to consider donating them
to charity through ShareGift, a registered charity administered by 
The Orr Mackintosh Foundation. Share transfer forms are available
from the registrars.
Further information about ShareGift is available at 
www.sharegift.org or by writing to:
ShareGift
The Orr Mackintosh Foundation
24 Grosvenor Gardens
London SW1W 0DH
Tel: 020 7337 0501
For further information please contact:
Charles Cormick, Company Secretary
Peter Reynolds, Director of Investor Relations
The Rank Group Plc
6 Connaught Place
London W2 2EZ
www.rank.com
Tel: 020 7706 1111
A wide range of shareholder information is available in the 
Investor Relations area of the Rank Group website: www.rank.com.
Ordinary shares
The total number of ordinary shares in issue as at 31 December 
2002 was 594,129,683 shares which were held by a total of 
31,854 shareholders.
Convertible preference shares
The total number of convertible preference shares in issue as 
at 31 December 2002 was 226,933,685 shares which were held 
by a total of 13,543 shareholders.
American Depositary Receipts (ADRs)
The Company’s ordinary shares are traded on NASDAQ in the 
form of american depositary shares, evidenced by ADRs and 
traded under the symbol “RANKY” . Each american depositary share
represents two ordinary shares. The total number of american
depositary shares in issue as at 31 December 2002 was 2,357,856
(representing 4,715,712 ordinary shares) which were held by a total 
of 2,617 ADR holders.
J P Morgan Chase Bank is the depositary bank. All enquiries
regarding ADR holder accounts and payment of dividends should 
be directed to J P Morgan ADR Service Center, PO Box 43013,
Providence, RI 02940-3013 (Tel: 1-800-428-4237 (toll-free in the US) 
or +1-781-575-4328 (from outside the US)). Information can also 
be obtained online by visiting www.adr.com.
Share price information
The latest information on the Rank ordinary share price is available 
in the Investor Relations area of www.rank.com. Information is also
available on Ceefax and on the Financial Times Cityline Service:
tel: 0906 003 3771 (calls charged at 60p per minute).
Capital gains tax
For the purpose of calculating UK capital gains tax on a disposal of
ordinary shares in the Company held since 31 March 1982 (including
shares held in the predecessor company, The Rank Organisation Plc),
the price of the Company’s ordinary shares at that date was 190p per
share. This price should be adjusted for the effects of the rights issue
in January 1990, the enhanced share alternative in November 1993,
the sub-division and consolidation of shares in March 1994 and 
the enhanced scrip dividend in March 1998.
Share dealing service
Hoare Govett Limited has established a low-cost share dealing service
which enables investors to buy or sell certificated shareholdings in
the Company in a simple, economic manner. Basic commission is 1%,
with a minimum charge of £10. Transactions are executed and settled
by Pershing Securities Limited. Forms can be obtained from Hoare
Govett, 250 Bishopsgate, London EC2M 4AA (Tel: 020 7678 8300).
Form 20-F
The Company is subject to the regulations of the Securities and
Exchange Commission (“SEC”) in the US as they apply to foreign
companies. The Company will file its annual report on Form 20-F
with the SEC. Copies of the directors’ report and accounts and 
Form 20-F can be obtained in the US by contacting J P Morgan 
Chase Bank at the address quoted above. SUMMARY NOTICE OF ANNUAL GENERAL MEETING
76 The Rank Group Plc
2003 FINANCIAL CALENDAR
Summary of business to be transacted at the 2003 
annual general meeting
The full text of the notice of the meeting, together with explanatory
notes, is set out in a separate document which is enclosed with this
report and accounts.
The annual general meeting of the Company will be held at the
Merchant Taylors’ Hall, 30 Threadneedle Street, London EC2R 8JB
at 11.30am on Tuesday 6 May 2003.
Business to be transacted at the annual general meeting
1 To receive the report and accounts for the year ended
31 December 2002.
2 To approve the remuneration report for the year ended 
31 December 2002.
3 To declare a final dividend.
4 To re-appoint John Sunderland as director.
5 To re-appoint Ian Dyson as director.
6 To re-appoint PricewaterhouseCoopers LLP as auditors and 
to authorise the directors to agree their fee.
7 To amend the articles of association to increase the Company’s
borrowing powers.
8 To authorise the directors to allot ordinary shares.
9 To disapply pre-emption rights.
10 To authorise the Company to make market purchases 
of its ordinary shares.
11 To authorise the Company to make market purchases 
of its convertible preference shares.
12 To authorise the directors to declare scrip dividends.
Proxy forms for use in connection with the business to be 
transacted at the annual general meeting are enclosed with 
this report and accounts.
31 January
Dividend payment
on convertible
preference shares
6 May
Annual general
meeting
9 May
Final dividend
payment on
ordinary shares
31 July
Dividend payment
on convertible
preference shares
5 September
Interim results
announcement
17 October
Interim dividend
payment on
ordinary shares