enjoy!Whitbread Stewart Miller, managing director, David Lloyd
Leisure Deutsche Bank, July 2004
Slide 2
enjoy!Whitbread What is David Lloyd Leisure? UKs biggest health
& fitness club brand by market share 201m revenues in 2003/4*
Europes biggest tennis club operator 550+ tennis courts (50%
indoors) More than 9,000 children on junior tennis programme in UK
*UK and Eire clubs only
Slide 3
enjoy!Whitbread Profit growth (m PBIT) 2001-2004 *includes
operations in mainland Europe
Slide 4
enjoy!Whitbread Return on capital employed 2001-2004 *includes
operations in mainland Europe
Slide 5
enjoy!Whitbread Differentiation More than just a gym
Slide 6
enjoy!Whitbread Differentiation a family club
Slide 7
enjoy!Whitbread Turnover of UK private health & fitness
club market (bn at current prices) Source: Mintel
Slide 8
enjoy!Whitbread David Lloyd Leisure brand strategy Drive
returns from maturing UK estate Develop retail sales Organic growth
of UK operation Explore International opportunities Leverage the
brand Market consolidation?
Slide 9
enjoy!Whitbread Drive returns as clubs mature Grow membership
sales Improve pre-opening marketing on new clubs Drive off-peak
memberships in established clubs Productivity Better labour
scheduling
enjoy!Whitbread Organic growth Target: 100 clubs in UK and Eire
56 clubs today 5 clubs under development* c.75 additional sites
identified * local planning consent secured
Slide 12
enjoy!Whitbread Overseas markets Identify markets of
significant opportunity Spain Benelux Secure local operating
expertise Operate as stand-alone businesses
Slide 13
enjoy!Whitbread Overseas markets Netherlands Acquisition of
Cannons Health & Fitness BV in December 2003 for 22m 5 clubs
open at time of acquisition with 20,000 members 7 clubs open by
2005 Belgium First club opening in Brussels in November 2004 Spain
First club open in Barcelona in 2005 Additional sites sought in
Madrid and other major cities
Slide 14
enjoy!Whitbread Brand leverage Build on brand reputation Extend
awareness Adjacent markets personal training retail products
Slide 15
enjoy!Whitbread Consolidation? Opportunities will arise through
market consolidation Particular about assets; disciplined on
price
Slide 16
enjoy!Whitbread Appendix
Slide 17
enjoy!Whitbread a Whitbread perspective DLLs share of group
operating profit* *2003/4 PBITA, excluding associates 49.1m 72m 74m
84m 29m
Slide 18
enjoy!Whitbread a Whitbread perspective DLLs share of group net
assets* *2003/4 net assets 515m 113m 545m 734m 1,158m
Slide 19
enjoy!Whitbread Operating margin 2001-2004 *includes operations
in mainland Europe
Slide 20
enjoy!Whitbread Membership growth 2001-2004 *includes
operations in mainland Europe
Slide 21
enjoy!Whitbread David Lloyd Leisure
Slide 22
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 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
Slide 23
enjoy!Whitbread Stewart Miller, managing director, David Lloyd
Leisure managing director, David Lloyd Leisure since May 2001
executive director, Whitbread PLC since May 2000 Career high
lights: managing director, Pubs & Bars @ Whitbread managing
director, Whitbread Pub Partnerships chief executive, Pizza Hut
(UK) Ltd Non-executive directorships: Business in Sport &
Leisure Ltd Skills Active (sector skills council) Age: 51
Slide 24
enjoy!Whitbread management team David Lloyd Leisure Eric Dodd,
finance director Appointed: 2004 Career high-lights: director
financial planning & analysis, Whitbread PLC (corporate) Grant
Wright, sales & marketing director Appointed: 2003 Career high
lights: operations director, David Lloyd Leisure; area manager,
Holmes Place Zoe Flower, operations director Appointed: 2004 Career
high-lights: operations director, Caf Rouge
Slide 25
enjoy!Whitbread management team David Lloyd Leisure David
Penniston, property director Appointed: 2003 Career high-lights:
head of UK development Waitrose; head of property & development
Savacentre Louise Smalley, human resources director Appointed: 2003
Career high-lights: director compensation & benefits, Whitbread
Restaurants
Slide 26
enjoy!Whitbread Overseas management team David Lloyd Leisure
Julie Porter, country manager, David Lloyd Leisure, Spain
Appointed: 2003 Career high-lights: area manager, David Lloyd
Leisure Thijs Merks, country manager, David Lloyd Leisure,
Netherlands Appointed: 2004 Career high-lights: operations
director, Accor Hotels Netherlands
