enjoy!Whitbread Stewart Miller, managing director, David Lloyd Leisure Deutsche Bank, July 2004

enjoy!Whitbread What is David Lloyd Leisure? UK’s biggest health & fitness club brand by market share — £201m revenues in 2003/4* Europe’s 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

enjoy!Whitbread Profit growth (£m PBIT) *includes operations in mainland Europe

enjoy!Whitbread Return on capital employed *includes operations in mainland Europe

enjoy!Whitbread Differentiation More than ‘just a gym’

enjoy!Whitbread Differentiation a family club

enjoy!Whitbread Turnover of UK private health & fitness club market (£bn at current prices) Source: Mintel

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?

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 Grow retail sales Tuition — PT — Tennis — Swimming Hospitality (F&B) — Broaden occasions — Operational excellence (standards/margin) Partner leverage

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

enjoy!Whitbread Overseas markets Identify markets of significant opportunity — Spain — Benelux Secure local operating expertise Operate as stand-alone businesses

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

enjoy!Whitbread Brand leverage Build on brand reputation — Extend awareness Adjacent markets — personal training — retail products

enjoy!Whitbread Consolidation? Opportunities will arise through market consolidation Particular about assets; disciplined on price

enjoy!Whitbread Appendix

enjoy!Whitbread a Whitbread perspective DLL’s share of group operating profit* *2003/4 PBITA, excluding associates £49.1m £72m £74m £84m £29m

enjoy!Whitbread a Whitbread perspective DLL’s share of group net assets* *2003/4 net assets £515m £113m £545m £734m £1,158m

enjoy!Whitbread Operating margin *includes operations in mainland Europe

enjoy!Whitbread Membership growth *includes operations in mainland Europe

enjoy!Whitbread David Lloyd Leisure

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

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 & 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

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, Café Rouge

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

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