Whitbread the UK’s leading hospitality company

John Banham chairman

Today’s agenda Interim results Business review

Whitbread today the UK’s leading hospitality company Four years of good progress — Strong positions in growing markets — Scale c.10 million customers a month — Outperforming competitors — Good sales momentum

Interim results Good H1 results — Strong like-for-like sales, continuing — 10% growth in earnings — Acquisitions performing well Increased dividend

Whitbread - the UK’s leading hospitality company 1 1 No. in hotels in restaurants in health & fitness in hotels in restaurants in health & fitness

Good four-year performance Sales growth Earnings Returns

Compound sales growth H vs H Total Whitbread 4.2

Double digit earnings growth * £m * PAT as published

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

Group has made good progress Business is strong New CEO New top management team Major opportunities for growth in scale and returns We are poised for the next chapter… Good time for business review

David Richardson finance director

Summary of 6 months to 2 September /52003/4 Δ% £m Sales1, Operating profit PBTA PBT EPS (adjusted) * 35.31p31.99p10.4 Dividends6.90p6.15p12.2 * Pre-exceptionals, pre-goodwill

Premier Lodge * July 25 to September 2 £m Sales15.4 Operating profit4.5 Interest (3.1) PBT 1.4 Assets 553 * Includes 19 pub restaurants

Business results Sales growth Profit growth Total Like-for-like %%% Premier Travel Inn24.2 n/a28.2 excl.Premier Lodge Marriott Pub restaurants(0.6) 0.7(9.2) High street restaurants David Lloyd Leisure

Business results Margins MAT ROCE 2004/5 2003/4 2004/5 2003/4 % % % % Premier Travel Inn excl. Premier Lodge Marriott Pub restaurants High street restaurants David Lloyd Leisure

Premier Travel Inn Strong like-for-like sales — Occupancy growth — Rate growth Room expansion Premier Lodge Name change Integration going well

Marriott Sales and profit growth — Occupancy growth — Rate recovery 2003/4 includes £2.2m profit from Swallow Courtyard Hotels included in H1. Sale expected Returns below WACC Outlook better

Slower like-for-like sales growth — 1st half Beefeater conversions — Brewsters Brewers Fayre working well and expanding Numbers now strengthening Second half better Pub restaurants

High street restaurants Continued strong progress on profit Pizza Hut, Costa, TGIF going well 2nd half growing, but more slowly

David Lloyd Leisure Strong profit growth Membership net gain 4 UK clubs to open in 2005/6 Netherlands, Belgium and Spain

Cash flow 6 months to September 2004 * Not analysed by business £m 2004/5 2003/4 Operating profit (pre exceptionals) Depreciation/amortisation6862 Dividends received44 Maintenance capex (including systems) (71)(71) Business free cash Investment in new sites(52)(37) Premier acquisition(548)- Divestment of sites/businesses344 Business cash(444)140 Interest(23)(26) Tax(20)(15) Dividends paid(48)(42) Working capital/non cash * (40)(21) Net cash (outflow)/inflow(575)36

Cash flow business split 2004/5 £m PremierPubHigh st.Central MarriottTravel Innrest.rest.DLL /other Operating profit (9) Depreciation Dividends Maintenance capex (14)(6)(35)(4)(8)(4) Business free cash (6) Investment -(14)(11)(7)(20)- Acquisition -(548)---- Divestment Business cash * 40(507)2118(6) * Before int. tax dividends and working capital movement

Exceptionals 2004/5 2003/4 £m £m Profit/loss on site disposals(0.3) (8.9) Interest -(3.3) Tax Exceptional costs (0.3)11.3

Capital expenditure Full year H1estimate2003/4 £m£m £m Marriott Premier Travel Inn * Pub restaurants High street restaurants David Lloyd Leisure Central/other 2-17 Total Includes new site capital * Excluding Premier Lodge capital

Pointers for the full year Business review Courtyard by Marriott Beefeater 1st/2nd half Marriott Q1 2005/6 Britvic IPO IFRS

Alan Parker chief executive

building on success The next chapter

Whitbread - the UK’s leading hospitality company 10 million customer visits per month Half UK adult population claims to have used a Whitbread brand last year * *Source: NOP Omnibus 2004

Building on success Planned £800 million realisation of assets Return of surplus cash to shareholders Faster growth in dividends Strategic priority to grow return on capital New site investment in high returning businesses New Marriott management model Pub restaurants brand consolidation £30 million annualised cost savings programme New top management team

Commitment to improving shareholder returns Investment in businesses capable of generating significant growth and economic profit Release and return capital Grow dividends ahead of earnings

Investing for growth £ m new site capital expenditure p.a. Increased consumer focus to drive sales International development on solid UK base Continued focus on existing businesses

Growth sector with potential Clear sector leader post acquisition — Occupancy, market share and economic profit Continued organic growth — 35,000 rooms by 2008 Premier Travel Inn

Unacceptably low ROCE New management business model — Phased sale and manage back - up to 50% of Marriott assets Achieving economic profit — Driven by market recovery & continued efficiencies Marriott

Leading market position Good returns in mature sites Growth potential — UK: 75 clubs by 2008 — International: Netherlands, Belgium, Spain David Lloyd Leisure

Growth marketplace Brand consolidation Pub restaurants Brewers Fayre Integration of Brewsters (147 sites) Target growth to 500 units by 2008 Brewers Fayre Integration of Brewsters (147 sites) Target growth to 500 units by 2008 Beefeater Integration of Out & Out (31 sites) Remodelling to be confirmed next year Beefeater Integration of Out & Out (31 sites) Remodelling to be confirmed next year Sale of some tail sites

High return on capital Strong organic growth UK base for fast-paced international growth — UK: 50 sites per year to 500 by 2008 — Strong international interest: Middle and Far East Costa Coffee

Organic growth potential Pizza Hut — Grow to 800 units TGI Friday’s — Menu and décor rejuvenation — Trial new store format High street restaurants

Cost synergies £30 million annual Better Ways of Working savings over 2 years £m Management structures 5 Finance4 IT2 HR2 Marketing2 Supply chain4 Offices/other5 Premier Travel Inn integration * 6 30 * Already announced

People Property ProcessProcurement One Whitbread added value Hotels Health & Fitness Restaurants

Planned realisation of assets £800+ million over next two years — Marriott sale & manage back in 05/06 & 06/07 — Sale of Courtyard by Marriott hotels — Sale of London Chiswell Street site — Sale of German restaurants & hotel — Sale of tail end pub restaurants — Britvic IPO (23.75%)

Return over half to shareholders — Method and amount determined as disposals effected Reduce debt Reduce pension deficit Increase dividends progressively Use of proceeds

High performance New top team: — HR- Angie Risley — Development (growth/property) - Desmond Taljaard — IT - Ben Wishart — Pub Restaurants - Phil Urban — Marriott - Patrick Dempsey — TGI Friday’s - Tim Hammond — Commercial (marketing/supply chain) - Paula Vennells — Finance — Communications ‘No Limits’ culture change programme

Building on success Faster growth Higher ROCE Greater synergies Improve shareholder returns

Whitbread the UK’s leading hospitality company