1 Results Presentation for the 52 weeks ended 31 March 2007

2 Agenda 1. Results review 2. Retail operations 3. Wells & Young's Brewing Company 4. Strategy & outlook

3 Significant events and highlights Period of enormous change –Formation of Wells & Young’s Brewing Co. –Sale of Ram Brewery site –Death of John Young and other Board changes –Move to new head office in Wandsworth Strong retail performance (particularly H2) –H2 turnover up 17.9% and operating profit up by 28.8% within retail operations Underlying EPS up 28.3% Final dividend increased 50.0% to 19.35p

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6 Retail Highlights Strong sales and profit growth in managed houses Over 50% of the managed estate redeveloped in past 2 years -generating strong returns Strong period of investment continues 14 pubs acquired Retail success from delighting customers with high service standards, quality food, market leading drinks and stylish pubs

7 Estate development £45.3M invested in the estate Acquired 8 managed pubs £4.5M invested in major refurbishments on existing sites targeting broader customer base –Many sites have re-opened as non-smoking venues Opened 3 riverside pubs –Riverside (Vauxhall), Waterside (Fulham) and Waterfront (Battersea) Strong returns from prior year investment –Sales up 80% –ROIC of 25% Acquired 6 tenanted pubs

8 1. Results Review

9 Strong underlying results TurnoverOp Profit*PBET*EPS*Dividend £126.6m£15.4m£12.0m75.36p37.35p +2.2% * - before exceptional items +28.3% +50.0% +13.9% +18.5% +28.3% +50.0%

10 Adjusted profits

11 Exceptional items

12 Restructuring and head office move Final phase of Group restructuring Accelerated from original plan Headcount reduced by 23 to 66 New offices –April 2007 –20 year lease with 5 year tenant’s break –Rent of £254K p.a –Soft operating benefits Exceptional cost of £0.8M Annualised savings in salaries of £0.8M

13 Period of significant investment

14 Investment in the pub estate Total spend: £45.3M (2005/06: £11.9M) By division By nature of spend

15 Estate profile *The Brewery Tap, closed during the year and has been excluded from these numbers **A new tenanted outlet has been created out of an existing pub *** In addition to the 177 freeholds the Company has 10 leases with in excess of 45 years to run, with rents that in total amount to £10K

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17 Geographical split of Young's pubs

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19 Property Revaluation Revaluation by Fleurets in November 2006 Valuation of £399.0m vs book value of £225.0m at time of valuation in November 2006 This is not a portfolio valuation; the Board believes that the value of the estate as a single entity would be significantly higher Valuation not recognised in the financial statements Net assets, including uplift to properties, of £373.3m (£31.96 per share)

20 Capital structure Net debt £101.2m£54.4m Gearing 50.7%38.1% % of debt fixed 38.7%72.2% Debt/EBITDA 4.2 x2.5 x Interest cover 3.0 x3.5 x Composite rate 6.7%7.1%

21 Financial summary Restructuring completed Investment in estate of £45m Strong balance sheet –Proceeds from Wandsworth Sites of £69m by January 2008 –Debenture redemption –Improved flexibility of financing structure In addition to like for like growth, further profit uplift –Full year of improved supply terms –Full year benefits of recent investments –Interest savings –Headcount reductions –Improving W&Y performance following transitional period

22 2. Retail Operations

23 Strong Managed house performance Sales up 18.1% LFL sales up 10.5% on same outlet basis, up 6.9% un-invested Food sales up 33.0% and now represent 23.6% of managed turnover Operating profit up 17.6%, despite increased wages, utility costs and rates across the business RevPAR up 10.3% at £40.14

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25 Like-for-like sales Number of sites FY 07 Sales £Mchange % Same Outlet Managed Tenanted Uninvested Managed Tenanted

26 KPI’s of same outlet pub estate 2007% increase Managed Average turnover per pub£894K Food Mix22.3%+1.1 % points Average EBITDAR per pub£273K Tenanted Average EBITDAR per pub £70K+5.7

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28 Operating performance at outlet level 28,58724, ,0896, ,67630, % change £000’s 98,64883, ,69814, ,34698, Turnover Managed Tenanted EBITDAR* Managed Tenanted * At outlet level, before interest, depreciation, rents payable

29 Managed houses – Key initiatives Websites in over 50 pubs –120K hits last month alone –80K live database –Customer targeted marketing activity –Privilege Card benefits to members Imagine – customer service surveys Re-structured retail team – new recruits Improved ale/lager portfolio in all pubs High quality staff recruited at pub level Step change in training at all levels, but mainly in pubs

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31 Customer focused locals Managed estate targeted at 3 key customer segments (same outlet) Key financials Outlets 51 Sales:£763K EBITDAR:£236K Conversion30.9% Food sales:17.7% Growth 8.4% Favourite Key financials Outlets 35 Sales: £1,055K EBITDAR:£327K Conversion31.0% Food sales:21.3% Growth11.0% Prestige Key financials Outlets 12 Sales:£985K EBITDAR:£276K Conversion28.0% Food sales:40.5% Growth16.7% Gourmet Customer profile Age 21+ Aspirational/affluent Equal male/female split More premium products/wine Larger food mix Customer profile Age 30+ Traditional Predominantly male Beer drinkers Wet led 80 to 85% Customer profile Family groups and couples 60% female Wine sales predominate Food sales 35 to 50%

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33 Tenanted houses – Key initiatives New training programme –Licensing –Food development / presentation –Beer quality –Marketing – Web Site support Introduction of new promotional support packages Expanding the portfolio of cask ale and lagers Learning from managed house investment programme “Imagine” launched New streamlined management structure

34 Tenanted houses Significant opportunity for growth Commenced five year refurbishment –To raise the standard of the tenanted estate –£0.8 million invested on 8 tenanted pubs in 06/07 Seeking to move more tenancies to long leases to drive profit performance –Reduction in repair liability –Increase in rent –Reduction in reliance on income for beer (market in decline) –Recruitment of more entrepreneurial operators “Gastro Pub of the Year”

35 Smoking Ban – England and Wales Short term issue - longer term opportunity Managed estate is ready for the ban: Action plan completed for every pub 25% are already non-smoking – positive response to date 95% have usable outside space All have developed quality food offer £2.3M CAPEX specifically aimed at smoking solutions Tenanted estate: Smoking solution identified for 90% of pubs 90% have useable outside space Investing £1.2m alongside tenants in preparation for the ban

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37 3. Wells & Young’s Brewing Company

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39 Integration complete Successful integration: –Transfer of sales & marketing teams –Successful beer matching –Relocation and installation of specialist brewing equipment –Portfolio review & customer presentations Acquisition of Courage brands from S&N Commenced decommissioning of Ram Brewery site Agreement to outsource Wandsworth distribution to KNDL

40 Financial contribution from Wells & Young’s (“associate”) Treated as an associate in Young’s financial statements £0.1m contribution to adjusted profit before tax –Young’s share of associate turnover £30.9m (from 1 October 2006) –£0.3m share of operating profit (before exceptional items) –£0.2m share of interest charge –Share of exceptional items of £0.2m relating to integration costs and costs of Courage deal

41 Ongoing relationship A highly focused drinks business run at arm’s length from its two shareholders Board representation and shareholder protection rights Dividend policy – 80% of profits, post pension contributions Early days, but encouraged by progress

42 4. Strategy & outlook

43 Active operational management Focused quality retail pub business –216 pubs in London and Southern England Premium strategy to provide clear point of differentiation… –Premium end of the market - style, quality and individuality of a Young’s pub –Measure against best individual pub and restaurant operators –Strong emphasis on service and training –Food growth from skilled chefs and fresh produce –Attractive environment from well invested estate –Strong locations …Designed to drive performance –More customers and better gross margins –Like for like sales from innovation and differentiation –Operational efficiencies to offset inflationary pressures

44 Active estate management Organic growth augmented by: Benefits from recent investments and developments Ongoing investment in existing estate on high returning projects Transfers from tenancies to leased Acquisitions:  Individual pubs or packages that maintain the quality of Young’s estate –Leverage existing management and operational infrastructure  Retain focus on Southern England, principally London  Measured against returning capital to shareholders Disposals

45 Strategy is Delivering Widening differentiation of Young’s pubs Strong like for like sales growth High returns from recent redevelopments Improved beer supply terms Other productivity and purchasing gains Strong growth in food driving outlet EBITDA growth

46 Outlook Near term risks from smoking ban and pressure on consumer spending Offset by full year effects of restructuring, acquisitions and developments Improving contribution from Wells & Youngs Strong current trading –Sales up 25.1% in 8 weeks to 26 May 2007 –LFL sales up 9.6% on an uninvested basis basis Foundations in place for a step change in financial performance The 50% increase in final dividend demonstrates the Board’s confidence in the future