Interim Results May

Interim results Strong first half results - turnover and profit growth in each of our trading divisions 2. Successful integration of recent acquisitions - Wizard, Burtonwood integrated ahead of schedule - expected synergies from both acquisitions exceeded 3. Earnings per share* up 10.2% - strong growth in profit before tax 4. Dividend +10.0% to 13.2 pence per share - average increase over 30 years of over 10% We are confident that our performance and out-turn for the year will be satisfactory *Before goodwill and exceptional items

Turnover£m Operating profit*£m Operating margin* % Profit before tax*£m Earnings per share* p Dividend per share p Interim results 2005 : profit and loss account * Before goodwill and exceptional items % change 3

Interim results 2005: like-for-like sales growth* community +3.7% (85% of estate) town centre +0.8% (15% of estate) includes Wizard c year leases agreed *24 weeks to 19 March 2005, excludes Burtonwood 4

White Lion, Thornbury, Bristol Crown, Heathfield, East Sussex 5 Dwyeyfylchi Hotel, Penmaenmawr Hoghton Arms, Newton Le Willows Childwell Abbey Hotel, Liverpool Interim results 2005: integration of Wizard, Burtonwood

Interim results 2005 : successful acquisitions 6 1. Higher pub profits (before admin savings) - Wizard like-for-like profit +4.3% 2. Greater cost savings - Burtonwood*¹ : at least £3.5m pa vs estimate £3.0m pa - Wizard*² : at least £2.8m pa vs estimate £2.5m pa 3. Fast and efficient integration - Burtonwood, Wizard both integrated ahead of schedule - aided by use of consistent, experienced integration teams - SAP platform across the Group provides robust systems framework Trading from acquisitions has been strong and cost savings delivered. *¹ 460 pubs acquired January 2005 for consideration of £167.6m *² 63 pubs acquired June 2004 for consideration of £91.3m

Interim results 2005 : successful acquisitions 7 4. Disposals at above book value - three Wizard sites sold for £4.7m, book profit £1.8m - several potential AUV disposals within the Burtonwood estate 5. Potential for increased value from acquired freeholds - Red Lion, Wendover and Café Mango, Sutton: £3.1m 6.Further development potential to exploit - Wizard: 6 major and 6 minor refurbishments planned in H2 - Burtonwood: 9 transfers to tenancy in H2 considerable scope for profitable investment in remainder of estate up to 50% of estate suitable for long lease Our acquisitions offer considerable potential for value enhancement

Interim results 2005 : integration of Wizard, Burtonwood 8 1.Acquisitions principally debt funded £m £m Wizard (100% cash) 91 Burtonwood (c.75% cash) Acquisitions achieved at attractive multiples - Wizard : 7.8x EBITDA (historic post overhead, post synergies) - Burtonwood : 8.4x EBITDA (historic post overhead, post synergies) 3.Total acquisition goodwill estimated at £3m - Burtonwood element is provisional Acquisitions have been earnings enhancing, with returns > WACC debt216 83% equity 43 17% consideration259100%

Interim results 2005 : financing 1. Financing remains conservative, with strong asset backing - debt : EBITDA4.1x - interest cover3.2x - freehold/long leaseholds 97% (by value) 2. Estate revaluation demonstrates further increase in value : 75% of estate revalued, £170m valuation uplift - 25% of estate currently being revalued in accordance with policy - expected net uplift c£50m - will be accounted for in full year results Despite impact of acquisitions, gearing has reduced vs

Interim results 2005 : objectives of refinancing 1.Increasing maturity profile of debt 2.Increasing flexibility and acquisition ‘headroom’ 3.Reduced borrowing costs 4.Maintaining operational flexibility 5.Continued flexibility over capex and dividends Debt re-financing offers scope for greater flexibility and lower costs whilst reducing risk 10

Interim results 2005 : background to results 1. Investment is generating good returns - pub refurbishment and site development, Pathfinder Pubs - pub acquisitions, The Union Pub Company 2. Margins and costs have been well managed - operating margin of 20.7% unchanged 3.Acquisitions have been effectively and quickly integrated - focussed, experienced integration teams - robust systems platform capable of expansion 4. Significant future opportunity clearly identified - from the core Pathfinder Pubs, UPC estates - from the further development of the Wizard, Burtonwood estates - through refinancing 11

Interim results 2005: Pathfinder Pubs investment, margins (1.1) (1.0) (0.4) Sales growth Gross margin NMWUtilitiesSky2005 EBIT £m  £2.5m of cost increases > inflation = 1.9% of operating margin.  Investment, management of margins and cost have more than offset impact of cost increases.  higher margins through - pricing - purchasing terms - estate repositioning  wet, food margin % ahead of last year.  labour costs as percentage of sales unchanged. A good combination of sales growth and strong margins 12

Interim results 2005: investment in Pathfinder Pubs 13 Pitcher & Piano, Nottingham Plas Coch, Wrexham The Old College, Barry, S Glamorgan Cronkinsons Farm, Nantwich College Farm, Swindon

Interim results 2005 : Pathfinder Pubs* 1. Average per pub - turnover per pub (mat) £608k +11.4% - EBITDA per pub (mat) £184k + 9.5% 2. Operating margin 19.0% (0.5)% 3. Total Pathfinder Pubs - turnover£143.5m +19.2% - operating profit£ 27.2m +15.7% 14 Pathfinder Pubs has developed strong momentum * Excluding 40 acquired Burtonwood managed pubs

Interim results 2005 : The Union Pub Company 1. Reduced costs from pubs transferred from Pathfinder Pubs - 41 transferred in 2004, 20 planned in H2 2. Continued strong sales performance by lessees - like-for-like sales +3.2%, ahead of the market year leases now agreed - Over 200 suitable pubs for conversion to lease within the Burtonwood estate 3.Growth being achieved through single site acquisition, refurbishment - 11 pubs acquired in H1 - £7.8m invested in pub refurbishment - returns achieved on acquisitions and refurbishments are on target UPC continues to offer significant further development potential 15

Interim results 2005 : The Union Pub Company* 1.Average per pub - profit per pub (mat EBITDA) £59.2k +5.0% - average rent roll per pub £24.5k +4.3% 2.Operating margin 43.1%+ 0.2% 3.Total UPC - turnover£62.4m+10.1% - operating profit£26.9m+10.7% Change 16 UPC has achieved growth in sales, margin and profits * Excluding 420 acquired Burtonwood tenanted pubs

WDB Brands vs Market (%) Interim results 2005 : WDB Brands – brand performance* 17 WDB BrandsAle Market % Change % Change Premium ale+13.9(3.4)+17.3 Standard ale +0.2(6.0)+ 6.2 Total ale +4.3 (5.5)+ 9.8 On-trade vs market = +11.0%; off-trade vs market = +5.2% Marston’s Pedigree market share increased +1.9% to 11.0% (on-trade) WDB Brands share of premium cask ale market now 14% Our brands have significantly outperformed the market * sources: BBPA statistics, own data. Owned brands only. UK market shares, 6 months to March 2005

Interim results 2005 : WDB Brands performance - independent free trade+ 6.9% - pub companies+ 9.3% - off trade+ 0.1% 2. Operating margin of 15.4% (2004: 16.0%) - growth in distribution to pub companies at lower margin - continuing pricing pressure in the off-trade - some cost increases eg. utilities New business won has offset rising costs. increased distribution new account gains growth in core brands - total WDB Brands + 5.5% 1. Turnover growth is being achieved across the division 3. Operating profit +1.1% to £9.2 million 18

Interim results 2005 : acquisition of Jennings 1. Pub estate of 128 high quality pubs - freehold tenanted estate - average EBITDA per pub £54k - situated in North of England, mainly Cumbria and the North West 2. Small profitable brewing operation - annual turnover £6.0m, profit c£1m - main brand Cumberland Ale – strong local franchise - opportunities for wider distribution within W&DB pub estates 3. Combined W&DB estate of 2,275 pubs - 1,738 tenanted, 537 managed 19

Interim results 2005 : acquisition of Jennings 1. The offer has been declared wholly unconditional - acceptances received and shares held in respect of 82.5% of shares 2. Benefits of the acquisition - synergies of at least £2m per annum - development opportunities pub estate beer brands - excellent geographical fit - earnings enhancing in first full financial year of ownership - expected to generate return in excess of WACC in first full financial year 3. Total acquisition cost of £67m financed from debt 20

Jennings: acquisition multiples (historic) 21 * * Assumed enterprise value of £67 million

Jennings: an estate of high quality 22 The Bush, Whitehaven The Oddfellows Arms, Wigton The Sun Inn, Ullswater The Hermitage Inn, WarkworthThe Bank Tavern, Keswick

Interim results 2005 : summary 1. Strong, record results reflecting - high quality pub estate, strong beer brand performance - organic development, including investment - effective integration of acquisitions 2. Significant development potential - Wizard - Burtonwood - Jennings - refinancing 3. Strong current trading* - Pathfinder Pubs like-for-like sales +3.2% - The Union Pub Company like-for-like sales +3.0% - Own brewed beer brands +4.3% * 32 weeks to 14 May

Interim results 2005 Appendices 24

Interim results 2005 : free cashflow 25 Appendix 1

Pathfinder Pubs : key financials Turnover £m EBITDA £m Operating profit £m Operating margin % (0.5) 2005* 2004 % change Appendix 2 26 * excluding the acquisition of Burtonwood

Union Pub Company : key financials 2005*2004 % change Turnover£m EBITDA£m Operating profit£m Operating margin % Appendix 3 27 * excluding the acquisition of Burtonwood

WDB Brands : key financials % change Turnover£m EBITDA£m (0.8) Operating profit£m Operating margin % (0.6) Appendix 4 28

Interim results 2005 : additional information and guidance -Average number of shares in H m -Number of shares in issue as at 20 May m -Additional dilutive number of shares 0.9m -Forecast tax rates % – 30.8%30.0% % -Capex forecast : Existing business £50m£45m : New builds/sites £34m£35m : Pub acquisitions £11m£15m £95m£95m - Forecast disposal proceeds £15m+£15m+ Appendix 5 29

Interim Results 20 May