enjoy!Whitbread Generating growth increased distribution
(projected) Travel Inn: 18,200 bedrooms to 25,000 Brewers Fayre/
Brewsters: 395 pub restaurants to 600 David Lloyd Leisure: 56
UK/Eire clubs to 100 Opportunities in Spain and Benelux High
Street: Pizza Hut Costa
Slide 9
enjoy!Whitbread New site investment demands strong returns and
good cash flow 03/04 Free cash 03/04 ROCE 04/05e growth capex David
Lloyd Leisure 47m9.5%*45m Travel Inn80m13.6%40m Pub restaurants
74m11.5%30m High Street26m25.3%10m Marriott72m6.2%N/a *Note: 2003/4
mature club ROCE 14.9%
Slide 10
enjoy!Whitbread Whitbread group ROCE (PBIT, pre-exceptionals
and goodwill amortization: year end assets)
Slide 11
enjoy!Whitbread Recovery in 4-star hotels? rate vs occupancy
(UK) Source: Hotelbenchmark.com
Slide 12
enjoy!Whitbread Recovery in 4-star hotels? rate vs occupancy
(London) Source: Hotelbenchmark.com
Slide 13
enjoy!Whitbread Recovery in 4-star hotels? business &
leisure mix (UK) Source: Whitbread analysis of TRI data
businessleisure
Slide 14
enjoy!Whitbread Capital allocation asset ownership & the
4-star cycle WACC Prop financing ROCE (%)
Slide 15
enjoy!Whitbread Capital allocation ROCE vs WACC Chart shows
impact of returns exceeding or falling below weighted average cost
of capital, relative to capital employed by business unit.Notional
WACC set at 10.1% pre-tax
Slide 16
enjoy!Whitbread Levers for growth Continued like-for-like sales
growth Increased distribution of high returning brands Recovery in
four-star hotels Capital reallocation
Slide 17
enjoy!Whitbread Appendix
Slide 18
enjoy!Whitbread David Richardson finance director External
appointments: Serco Group PLC (non-executive director and chairman
of audit committee) Britannia Soft Drinks Limited (director)
Previous experience: Qualified as an accountant with Touche Ross
before moving to ICL. David joined Whitbread in 1983 and was
appointed to the board as strategic planning director in 1996.
Finance director since March 2001.
Slide 19
enjoy!Whitbread Hotels
Slide 20
enjoy!Whitbread Travel Inn
Slide 21
enjoy!Whitbread Restaurants
Slide 22
enjoy!Whitbread David Lloyd Leisure
Slide 23
enjoy!Whitbread Glossary of terms General Like-for-like
salesPeriod over period change in total sales, less sales generated
by businesses acquired or disposed of and retail outlets opened or
closed during 2002/3 and 2003/4 Return on CapitalOperating profit
divided by period end net assets. (Where average ROCE is quoted it
is based on the average of opening and Employed (ROCE) closing net
assets.) Operating marginOperating profit expressed as a percentage
of sales Restaurants Turnover per outletTurnover in period divided
by the average of opening and closing outlets Profit per
outletOperating profit (after allocation of overheads but before
exceptional items) divided by the average of the opening and
closing number of outlets Hotels Achieved Room Rate (ARR)Hotel
accommodation income divided by the number of rooms occupied by
guests OccupancyNumber of hotel bedrooms occupied by guests
expressed as a percentage of the number of bedrooms available in
the period Yield (RevPar)Also known as "revenue per available room"
this hotel measure is achieved by multiplying the ARR by the
occupancy rate Income before fixed costsHotel operating profit
before directly attributable fixed costs (such as rent, rates,
margin (IBFC) insurance, etc ) and central costs divided by hotel
sales Profit per room Hotel operating profit ( after allocating
central costs) divided by the number of rooms available David Lloyd
Leisure Club EBITDA marginClub contribution before depreciation,
amortisation and central costs divided by club sales in the period
Revenue per memberClub sales divided by the average of the opening
and closing number of members EBTIDA per memberClub operating
profits before depreciation, amortisation and central costs divided
by the average of the opening and closing number of members
Retention rateThe percentage of members at the start of the period
who are still members at the end of the period expressed as a
percentage of members at the start of the period
