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PRELIMINARY RESULTS FOR THE 52 WEEKS

ENDED 24 JUNE 2017

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MILES TEMPLEMAN

CHAIRMAN

2017: A STRONG SET OF RESULTS AND A YEAR OF SIGNIFICANT

INVESTMENT

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Strong underlying performance in all operating divisions

Period of significant acquisition investment

Excellent progress made against strategic objectives

Development work to enhance own beer portfolio,

modernise brewing operation and streamline

management roles

A YEAR OF FURTHER GROWTH IN NET ASSETS AND DIVIDEND

PER SHARE

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Proposed final dividend of 22.73p taking total dividend to

28.35p

This represents underlying cover of 2.1 times.

Cover consistent with policy stated at share capital

reorganisation in 2014

Underlying cover at or above 2 times

Annual dividend increased from £3.2m to £4.2m since

share capital reorganisation

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MARK RIDER

FINANCE & IT DIRECTOR

PERFORMANCE HIGHLIGHTS

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Turnover 156.2 139.9

2017

£m

2016

£m %

Operating Profit 15.3 14.2 7.2

Net Finance Costs (4.1) (3.9)

Profit before Tax 11.2

Statutory Profit Before Tax

0.6 4.1

(5.0)

Tax Rate (%)

11.8 14.4

Earnings Per Share (pence)

21.8 21.8

Full Year Dividend per share (pence)

59.1 54.7

10.3

Total Items excluded from underlying results

27.50 28.35

8.0

3.1

Underlying results

Reconciliation to statutory profit

8.0

11.7

(18.0)

DIVISIONAL PERFORMANCE: MANAGED PUBS

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LFL sales growth +8.1% +4.4%

2017 2016* %

Turnover (£m) 60.7 48.1

Divisional operating profit (£m) 9.0 7.6 18.0

26.2

Underlying results

Fastest growing operating division following continued investment

Division has increased in size to 66 pubs (2016: 54 pubs)

6 pubs acquired including VGR purchase

8 pubs transferred from Tenanted including UES purchase

2 pubs transferred to Tenanted

*Segmental disclosure reflects how management monitor the performance of each division which has resulted in a

re-statement of the 2016 disclosure

MANAGED PUB OPERATING MARGIN REFLECTS INFLATION AND

INVESTMENT

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LFL sales of 3-4% required to cover future expected cost inflation

DIVISIONAL PERFORMANCE: TENANTED PUBS

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*Segmental disclosure reflects how management monitor the performance of each division which has resulted in a

re-statement of the 2016 disclosure

** LFL earnings before interest, tax, depreciation, amortisation and rent payable

LFL EBITDAR** growth +1.6% +2.7%

2017 2016* %

Turnover (£m) 34.4 33.5

Divisional operating profit (£m) 13.0 12.7 2.4

2.8

Underlying results

Good growth on 14 fewer pubs

Underlying operating profit reflects increased turnover offset by

higher repairs and decorations and depreciation

*Segmental disclosure reflects how management monitor the performance of each division which has resulted in a

re-statement of the 2016 disclosure

** Source: BBPA

DIVISIONAL PERFORMANCE: BREWING & BRANDS

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Own brewed volume ex contract growth +3.9% +0.3%

2017 2016* %

Underlying divisional EBITDA (£m)

59.8 57.3 Turnover (£m)

1.6 1.6

4.4

Underlying results

Divisional operating profit (£m)

3.9 4.0

Own beer output grew ahead of market** underpinned by a strong and

diverse brand portfolio

Underlying operating profit impacted by additional water recovery costs

(1.4)

(3.3)

CASH FLOW: INCREASE IN OPERATING CASH FLOW

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(4.3)

Underlying EBITDA* 23.4 21.7

Cash flow from operations 22.1 20.3

Interest and loan fees

(4.2)

Disposal proceeds 11.9

Internally Generated Free Cash 19.0 23.7

Core Capex (10.4)

Acquisitions (24.0) (4.7)

(4.7)

(13.2)

0.8 Net cash inflow/(outflow) (7.4)

5.9

(4.3)

Working Capital & other operating cash flows

Cash outflow from exceptional items

1.4

(0.1)

1.1

(0.2)

2017

£m

2016

£m

Dividends and purchase of own shares

Debt movements 19.0 (16.0)

*Underlying profit before tax pre net finance costs, depreciation, amortisation, profit and loss

on sale of fixed assets excluding property and free trade loan discounts

Tax (2.6) (2.3)

BALANCE SHEET: STRONG BALANCE SHEET SUPPORTS RECORD

CAPITAL INVESTMENT

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191.1 183.9

3.3

(60.1)

Fixed Assets* 306.6

280.2

Other Assets and Liabilities (37.4) (36.2)

Net Debt

Shareholders Funds

Net Debt : Underlying EBITDA 2.8

Balance Sheet Gearing 41% 33%

2017

£m

2016

£m

Net assets per share £12.86 £12.38

(78.1)

Long term £60m loan remains unchanged to 2026

Further revolving credit facility of £45m in place to 2020

* Includes 87% freehold pub estate and £6.8m of investment property

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JONATHAN NEAME

CHIEF EXECUTIVE

MARKET CONTEXT

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We have outperformed the

market

LFL managed pub sales

+8.1% vs Peach Tracker

Index of +1.4%

Own beer ex contract

volume growth of +3.9%

vs market -0.2%

Whilst the weather

conditions have been

favourable, with a long hot

summer in 2016 and sunshine

in spring 2017, market

conditions have become

progressively harder

Customers seeking value

and quality experience

OUR STRATEGIC OBJECTIVES

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TO DRIVE

FOOTFALL TO

OUR PUBS

TO CREATE

DEMAND AND

BUILD

AWARENESS FOR

OUR BRANDS

TO ATTRACT,

RETAIN AND

DEVELOP THE

BEST PEOPLE

TO DEVELOP OUR

OFFER TO

ENHANCE THE

CUSTOMER

EXPERIENCE

TO DRIVE

FOOTFALL TO

OUR PUBS

TO DEVELOP OUR

OFFER TO

ENHANCE THE

CUSTOMER

EXPERIENCE

OUR STRATEGIC

OBJECTIVES

FIVE YEAR REPOSITIONING OF ESTATE: CONTINUED ACTIVE

PROPERTY MANAGEMENT

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Tenanted

Managed

Total

2012 Acquisitions Disposals 2017

2017 pub ownership profile: 87% freehold

Investment

properties

Transfers

Average

EBITDAR per

pub growth

310 9 (18) (48) 253 +25.4%

44 13 9 - 66 +30.5%

- - 9 (1) 8

354 22 - (49) 327

FIVE YEAR REPOSITIONING OF BRAND PORTFOLIO: CONTINUED

DEVELOPMENT

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BUILDING BRAND IDENTITY AND AWARENESS

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FIVE YEAR REPOSITIONING OF BUSINESS: BUILDING A

SUCCESSFUL MANAGED PUB BUSINESS

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Significant investment over

five years to build a

successful managed pub

business

Food sales now represent

33% of managed pub sales

Accommodation 10% of

managed turnover from a

total of 294 bedrooms in the

managed estate

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TO DRIVE FOOTFALL TO OUR OUR PUBS

TO DRIVE

FOOTFALL TO

OUR PUBS

We aim to drive footfall by designing

and developing unique pubs and hotels

with a ‘wow’ factor

DRIVING FOOTFALL TO OUR PUBS: STONG UNDERLYING PERFORMANCE

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DRIVING FOOTFALL TO OUR PUBS: ACQUISITION OF EIGHT NEW

PUBS FROM EI GROUP PLC

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The Farmhouse, West Malling Crown and Anchor, Shoreham

Sussex Oak, Warnham Kings Head, Guildford

DRIVING FOOTFALL TO OUR PUBS: ACQUISITION OF FIVE NEW PUB

RESTAURANTS FROM VGR

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Old Mill, Kennington

Swan and Dog, Great Chart

Oak on the Green, Bearsted

Chequers on the Green. High Halden

DRIVING FOOTFALL TO OUR PUBS: MAJOR INVESTMENT IN

MANOR FARM BARN, OSTRICH AND MINNIS BAY

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Minnis Bay Bar and Brasserie, Birchington

Manor Farm Barn, Southfleet

Ostrich, Colnbrook

DRIVING FOOTFALL TO OUR PUBS: TRANSFORMING THE

LOOK & FEEL OF OUR TENANTED ESTATE THROUGH

CONTINUED INVESTMENT

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Old House at Home, Dormansland

East Kent, Whitstable

Total spend on managed and

tenanted existing estate £10.7m

(2016: £9.5m)

Major tenanted investments at

East Kent, Whitstable, Plough,

Farnham and Old House at Home,

Dormansland

DRIVING FOOTFALL TO OUR PUBS: LOOKING AHEAD TO 2017/18

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Pier Five opened July 2017 at

Chatham Maritime

Earls at Maidstone, acquired

in 2017 year, will transfer from

tenanted to managed estate

Transformational investments

due to be carried out at the

Anchor, Yalding and the

Spitfire, West Malling

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TO DRIVE FOOTFALL TO OUR OUR PUBS

TO DEVELOP OUR

OFFER TO ENHANCE THE

CUSTOMER EXPERIENCE

We aim to enhance the customer

experience in our pubs by delivering

great fresh food, providing

accommodation of character and

offering an interesting range of products

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DEVELOPING OUR OFFER TO ENHANCE THE CUSTOMER EXPERIENCE: CONSISTENT STRONG TRADING

DEVELOPING OUR OFFER TO ENHANCE THE CUSTOMER

EXPERIENCE: GREAT FRESH FOOD

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UES transaction transfers five

pubs and management team

from tenanted to managed

Acquisition of UES and VGR

brings new skills and ideas

Successful new food offers at

Minnis Bay Bar and Brasserie,

and Ship and Trades, Chatham

Maritime

Pubs continue to be recognised

for their excellence: three pubs in UK’s top 50 gastropubs

DEVELOPING OUR OFFER TO ENHANCE THE CUSTOMER

EXPERIENCE: ACCOMMODATION OF CHARACTER

30 *Revenue Per Available Room

Ostrich, Colnbrook

Bell Hotel, Sandwich

Development at Ostrich,

Colnbrook added 11 new

bedrooms

Refurbishment of 37 bedrooms at Bell, Sandwich

and Botany Bay, Kingsgate

Occupancy grew to 79% (2016: 78%) and REVPAR*

continues to grow to £66

(2016: £63)

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TO ATTRACT,

RETAIN AND

DEVELOP THE

BEST PEOPLE

We aim to attract, retain and develop the

best people by understanding the potential

in everyone, inspiring them to achieve their

goals and building the loyalty and

engagement of our licensees, through the

professionalism of the support we provide

ATTRACTING, RETAINING AND DEVELOPING THE BEST PEOPLE

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Continued high performance in

independent survey of licensees

Recognition from BII* as one of

the top licensed trade training

providers

All managed pub staff have

personal development

programmes, 500 offline and

1700 online courses delivered

Increased investment in support

at Head Office

* British Institute of Innkeepers

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TO DRIVE FOOTFALL TO OUR OUR PUBS

TO CREATE

DEMAND AND BUILD

AWARENESS FOR

OUR BRANDS

We aim to create demand and

build awareness of our brands by

developing a range of distinctive

beers, instilling a passion for

quality and having great

engagement with our customers

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BREWING AND BRANDS: 2017 MARKET VOLUME OUTPERFORMANCE

Own beer volume ex

contract up 3.9%

Exciting brand launches

Investment of £0.7m in

restoring fabric and infrastructure of historic site

CREATING DEMAND AND BUILDING AWARENESS FOR OUR

BRANDS: EXTENSION OF SUCCESSFUL BRANDS

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Whitstable Bay collection grew 20.5%

(2016: 19.5%) and represents 10% of

own beer ex contract volumes

Spitfire range has returned to growth

of 2.2% (2016: -3.7%) and represents

22% of own beer ex contract

volumes

CREATING DEMAND AND BUILDING AWARENESS FOR OUR

BRANDS: DEVELOPMENT OF PREMIUM BRITISH BRANDS

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BREWING AND BRANDS: WE ARE BUILDING A SMALLER, HIGHER QUALITY BUSINESS FOLLOWING STRATEGIC REVIEW

Asahi licence to end in 2018

Modernise plant, drive cost

efficiency and productivity, and

allocate more of limited capacity

to own brands

Streamline management

structure. Director role no longer

required. Graeme Craig leaving

the business

Focus on parts of the market with

competitive advantage or strong

position

Volumes and turnover will fall,

targeting divisional underlying

EBITDA of £3.5m

SUMMARY AND CURRENT TRADING

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Good year for company

Underlying performance strong

High level of pub acquisition and

brand activity

Quality of operations continues to

improve

Steady progress since year end

against tough comparatives

LFL growth in managed pubs and

hotels +1.5% to 2 September 2017

LFL EBITDAR in tenanted pubs

+0.6% to 26 August 2017

Own brand volume ex contract

+4.4% to 2 September 2017

A high quality and sustainable

platform for the long term

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QUESTIONS