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enjoy!Whitbread Successful brand management in leisure

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enjoy!Whitbread John Banham, chairman

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enjoy!Whitbread Marriott Highly rated 4-star hotel brand Travel Inn Leading budget hotel brand Brewers Fayre Highly successful family restaurant brand Beefeater Largest full service restaurant brand David Lloyd Leisure Largest active leisure brand All good organic growth potential and operating synergies future Whitbread As published May 2001

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enjoy!Whitbread Building on strengths As published May 2001 Key drivers of retail value: Leading brands/strong markets Organic growth potential Best in class management High entry barriers for competitors Success measured by: Like-for-like sales growth Double digit profit growth

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enjoy!Whitbread Double digit earnings growth * m * PAT as published

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enjoy!Whitbread Like-for-like sales growth - first 7 weeks % Marriott2.3 Travel Inn4.9 Pub restaurants2.4 High Street restaurants4.7 David Lloyd Leisure * 5.8 Total group 3.5 * 5 weeks

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enjoy!Whitbread David Richardson, finance director

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enjoy!Whitbread ROCE Cash flow Dividends Exceptionals Future

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enjoy!Whitbread YOY improvement in group ROCE (PBIT, pre-exceptionals and goodwill amortisation: year end assets) ROCE % Total group Marriott

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enjoy!Whitbread Focus on ROCE - Hotels (PBIT, pre-exceptionals and goodwill amortisation: year end assets) Marriott brands ROCE % Profits Assets Index

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enjoy!Whitbread Focus on ROCE - Hotels (PBIT, pre-exceptionals and goodwill amortisation: year end assets) Travel Inn ROCE % Profits Assets Index

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enjoy!Whitbread Focus on ROCE - Restaurants (PBIT, pre-exceptionals and goodwill amortisation: year end assets) Pub restaurants ROCE % Profits Assets Index

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enjoy!Whitbread Focus on ROCE - Restaurants (PBIT, pre-exceptionals and goodwill amortisation: year end assets) High Street restaurants ROCE % Profits Assets Index

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enjoy!Whitbread Focus on ROCE - DLL (PBIT, pre-exceptionals and goodwill amortisation: year end assets) David Lloyd Leisure ROCE % Profits Assets Index

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enjoy!Whitbread Cash flow - year on year m 2003/42002/3 Operating profit (pre exceptionals) 252242 Depreciation/amortisation128126 Dividends received2113 Maintenance capex (including systems) (133)(104) Divisional free cash268277 Investment in new sites/businesses(102)(115) Divestment of sites/businesses11256 Divisional cash278218 Interest(56)(63) Tax(28)(49) Dividends paid(60)(54) Working capital/non cash*3(13) Net cash inflow13739 * Not analysed by division

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enjoy!Whitbread m Marriott Travel Pub High St. DLL Central/ Inn rest. rest. other Operating profit 6372841149(27) Depreciation43192914211 Dividends ---10-12 Maintenance capex (34)(11)(39)(9)(23)(18) Divisional free cash7280742647(32) Investment (7)(26)(21)(7)(37)(3) Divestment45853-24 Divisional cash110621061912(31) (before int.tax.div. and w/c movement) Cash flow - divisional split 2003/4

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enjoy!Whitbread Dividends 2003/4 2002/3 Interim6.15p+10%5.57p Final16.15p+13%14.30p Total22.30p+12%19.87p Year-on-year growth PBT (pre exceptionals) +13% PAT (pre exceptionals) +11% EPS (adjusted) +10%

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enjoy!Whitbread Exceptionals m2003/42002/3 Impairment (15.5)(5.0) Property disposals(10.3)(6.2) Interest(3.3)- Tax30.216.4 PAT1.15.2

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enjoy!Whitbread Gross capital expenditure m2004/52003/4 estimate Marriott brands 4041 Travel Inn5037 Pub restaurants7061 High Street restaurants2015 David Lloyd Leisure7059 Other1017 Total 250-275230

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enjoy!Whitbread 2004/5 Marriott Beefeater 1st half/2nd half Britvic IAS 05/06

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enjoy!Whitbread David Thomas, chief executive

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enjoy!Whitbread Business operating profit 1999/00

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enjoy!Whitbread Business operating profit 2003/4

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enjoy!Whitbread ROCE performance * Pre goodwill amortisation %

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enjoy!Whitbread Whitbreads growth drivers Compelling brand propositions Operational excellence Performance management Organic expansion

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enjoy!Whitbread Marriott brand strength Yield premium 10.5% in London 16.3% in regions Occupancy sustained at 71% Increased awareness

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enjoy!Whitbread Marriott unaided awareness among UK business guests % Hilton Marriott Source: BDRC Hotel Study 2004

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enjoy!Whitbread % Marriott profit per room Source: tri Hospitality Consulting (sample size 264 hotels) Best in class competitors

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enjoy!Whitbread Marriott operational excellence Guest satisfaction up 4%pts to 84% Non room revenue growth Like-for-like food revenues + 4.0% Like-for-like beverage revenues + 7.4%

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enjoy!Whitbread Marriott - organic expansion Kensington successful opening Victoria & Albert, Manchester operating agreement secured St Pancras heads of terms agreed

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enjoy!Whitbread Whitbread group ROCE (PBIT, pre-exceptionals and goodwill amortisation: year end assets) %

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enjoy!Whitbread Travel Inn - brand strength Source: Travel Inn Advertising Tracking Study 2003/4 wave Travel Inn Travelodge Awareness among leisure users

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enjoy!Whitbread Travel Inn - operational excellence 89% guest satisfaction Cross-selling delivers 14m of sales Business card delivers 20m of sales Web bookings - 22%

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enjoy!Whitbread Travel Inn - performance management ARR+ 3.8% Rooms sold+ 8% PBIT+ 11% ROCE + 1.0% to 13.6%

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enjoy!Whitbread Travel Inn - organic growth *projected 5,000 10,000 15,000 20,000 25,000 1996/71997/81998/91999/20002000/12001/22002/32003/42004/52007/8 Rooms ** 18,173

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enjoy!Whitbread Brewers Fayre/Brewsters - brand strength Source: Industry estimates UK branded pub restaurant sector Spring 2004 (c.1,500 outlets)

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enjoy!Whitbread Beefeater - new format 24 units converted to date Average uplift in sales 30% 40 conversions planned for 2004/5

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enjoy!Whitbread Pub restaurants - operational excellence Guest satisfaction Brewers Fayre86% Brewsters83% Beefeater88%

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enjoy!Whitbread Pub restaurants - performance management 02/03 03/04 % % Operating margin 13.114.2 Brewers Fayre15.416.0 Beefeater9.711.2 ROCE 9.9 11.5 Brewers Fayre12.0 12.6 Beefeater 7.19.0

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enjoy!Whitbread High Street restaurants Brand strength Pizza Hut-UK system sales top 400m Costa-successful retail partnerships TGIF-world record weekly sales of 178k Performance management 02/0303/04 Operating margin5.1%6.3% Profit per outlet34k47k ROCE19.1%25.3% Organic growth 03/04 openings Pizza Hut75 Costa42

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enjoy!Whitbread DLL - brand strength Another year of 5%+ like-for-like sales growth Number of members - 321,000 * Brand awareness ahead of competition * UK and Eire

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enjoy!Whitbread Leisure/health/fitness clubs - total awareness Source: Whitbread Planning & Insight %

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enjoy!Whitbread DLL - operational excellence Member satisfaction75% Member retention73% Like-for-like gym income+55.3% Like-for-like tennis income+10.5%

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enjoy!Whitbread DLL * - performance management 02/0303/04% Operating margin23.725.2 Mature clubs ROCE14.514.9 (pre-overhead) Total ROCE9.110.3 * UK and Eire

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enjoy!Whitbread Total 13 Chelmsford Exeter Leeds Bristol NorwichKings Hill GloucesterAberdeen * Southend * Lisburn Glasgow *Farnham * Worthing** DLL organic growth - UK contracted site pipeline * Local consent granted ** On site

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enjoy!Whitbread Whitbread - the outlook Growth markets Strong and expanding brands High quality proven leadership Focus on increasing returns

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enjoy!Whitbread Alan Parker, chief executive designate

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enjoy!Whitbread The next steps More effective asset management More efficient ways of working Brand-by-brand review NO LIMITS management culture

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enjoy!Whitbread Successful brand management in leisure