Sir John Banham Chairman

David Richardson Finance Director

Year of transformation

£m £m % 2001/2 2000/1 Growth Sales including joint ventures 1,822 1, Operating profit before exceptionals * Estimated interest(62.5)(61.8) PBT before exceptionals * Estimated taxation(55.6)(55.3) PAT before exceptionals Net assets employed (2000/1 estimated) 2,864 2,702 ROCE 8.7% 8.7% Whitbread (continuing businesses) * After amortisation of goodwill

Segmental analysis £m £m 2001/2 2000/1 Sales EBITDA Profit Assets Sales EBITDA Profit Assets Hotels Marriott/Swallow , ,200 Travel Inn Restaurants Pub restaurants High St restaurants Sports, health & fitness David Lloyd Leisure Total divisions 1, ,0701, ,991 Britvic Central costs (17)(21)(262)(13)(18)(336) Whitbread (continuing businesses) , ,702

Segmental analysis Travel Inn Restaurants (excluding Travel Inn) –Pub restaurants –High Street restaurants Pelican within High Street

Year-on-year growth % % % % Total Like-for-like Profit Half Year sales growth sales growth growth profit growth Hotels Marriott0.4(0.1)(8.9)5.7 Travel Inn Restaurants Pub restaurants High Street restaurants Sports, health & fitness David Lloyd Leisure Whitbread (continuing businesses)

Operating margins/returns % Margins % ROCE 2001/2 2000/1 2001/2 2000/1 Hotels Marriott Travel Inn Restaurants Pub restaurants High Street restaurants Sports, health & fitness David Lloyd Leisure Whitbread (continuing businesses)

Transformation of the group £m £m Surplus over Exceptional book value p&l account Pubs and Bars Surplus over book value 4770 Costs(25)(25) Net impact Pubs and Bars452(25) Pelican Write down(26)(26) Goodwill–(147) previously written off to reserves Reorganisation(2)(2) Net impact Pelican(28)(175) Other including taxation(2)(2) Surplus over book value/exceptional items £422m £(202)m

Analysis of Whitbread cashflow £m £m £m Total Whitbread Former/post (continuing businesses) Whitbread Cashflow from operations Dividends received33- Interest costs etc(72)(67)(5) Taxation(84)(37)(47) Capital expenditure (net)(224)(212)(12) Acquisitions and disposals Dividends(128)(49)(79) Net cash inflow/outflow 309(26) 335

Strength of balance sheet Net assets £2,865m of which freehold property plus long leasehold £2,236m Net borrowings £976m Capital and reserves £1,889m Gearing 52% Interest cover based on proforma4 times

Dividend Whitbread (continuing businesses) PAT£131.4m Less minorities£(0.2)m Profit attributable£131.2m To give a 2.5x coverx 40% Dividend payable£52.5 No. of shares in issue at year end295.4m Total dividend per share17.8p Interim dividend per share5.05p Final dividend per share12.75p

Things to watch for in 2001/2 Accounting treatment of Pubs and Bars disposal –10 weeks of Pubs and Bars profit –As a demerger (no profit on disposal) –£25m of transaction/seperation costs as non-operating exceptional New capital structure –Share consolidation –c.£445m of Pubs and Bars cash for Whitbread Deferred tax (FRS19) from interims Future capital expenditure

Capital expenditure £m £m 2002/3 2001/2 future estimates actuals Marriott Travel Inn Restaurants David Lloyd Leisure Other103 Whitbread (continuing businesses) Pubs and Bars-14 Total group

New accounting issues for 2002/3 FRS17 Board plans to adopt for 2002/3 Full notes in published accounts –Fund shortfall of £84m 7% of fund –Pension obligation in company books of £59m after deferred tax –Profit and loss charge in 2002/3, on FRS17 similar to 2001/2 on a SSAP 24 basis –Fund shortfall expected to eliminate itself in the mid-term as equity returns revert to long-term trend

Summary Year of transformation Whitbread – performing well Still plenty of opportunity!

David Thomas Chief Executive

Highlights Like-for-like sales Market out-performance Brand strength Progress on value drivers £1.1bn returned to shareholders

Hotels Total sales+3.7% PBIT-2.4% ROCE-0.6%

Marriott Key results Total sales+0.4% Like-for-like sales-0.1% PBIT-8.9% ROCE-0.8%

Core Marriott * September 11 effect First halfSecond half This yearLast yearThis yearLast year Occupancy75.4%77.0%69.0%73.0% ARR£83.34£80.72£80.20£85.43 Yield£62.83£62.24£55.32£62.33 * Branded for 2+ years

Core Marriott Room yield premium maintained Rooms yield and premium, March 01 - February 02 £ Core Marriott 20% 28% 21% Average top 3 Source: PKF

Core Marriott Profit per room – closing the gap £k Core Marriott Average top Target Source: Whitbread estimates

Marriott Value drivers – non room revenue Leisure+10% Golf+8% F&B+2% Rooms -2%

Marriott Value drivers – operational effectiveness Core Marriott operating margin up 1.3% to 18.5% Central overhead down 12% year-over-year £10m cost reduction programme implemented

Swallow Significant revenue progress Yield premium Pre acquisitionPost conversion Tranche 1-1%10% Tranche 2-7%4%(6 months) Like-for-like sales 2.4% (5.7% second half) Full benefits for year 2003/4

Travel Inn Key results Total sales+12.1% Like-for-like sales+3.6% PBIT+6.7% ROCE-0.8%

Travel Inn Like-for-like ROCE grows year-on- year % 2000/1 2001/2

Travel Inn Market leadership Like-for-like occupancy82.6% (core occupancy flat year-on-year) Rooms growth14,186  15,924

Travel Inn Brand strength Unprompted awarenessup to 29% (from 18%) Internet bookingsup to 15% 100% guaranteeincreased guest loyalty improved staff retention

Restaurants Key results Total sales+6.4% Like-for-like sales+4.6% PBIT+13.2% ROCE+1.5%

Restaurants Profit per sector Beefeater Brewers Fayre/ Brewsters High Street

Brewers Fayre/Brewsters Strong all round performance Like-for-like sales+5.6% Operating margin growth14.8%  15.0% Operating profit+9.6% ROCE+0.9%

Beefeater Positive like-for-like performance Comparable Beefeater Sales+5.4% Operating profit+12.6% Total Beefeater Sales+5.2% Operating profit-3.4% Segmentation programme impacts profit

High Street Key results Total sales+6.7% Like-for-like sales+3.3% (excluding Pelican 5.1%) PBIT+64.1% ROCE6.4%  12.9%

High Street Improving returns Like-for-like sales Pizza Hut+6.0% Costa+5.7% T.G.I. Friday’s+4.4%

High Street Improving returns Operating marginsup from 2.2% to 3.4% Estate churn94 sites acquired 69 sites sold

Sports, health and fitness Key results Total sales+19.4% Like-for-like sales +14.6% (mature clubs 9.3%) PBIT +22.4% ROCE+1.0%

David Lloyd clubs Market outperformance Average annual sales per member £ Source: Whitbread estimates

David Lloyd clubs Member KPIs Growth in members18.0% Member retention73% Member satisfaction74.7%

David Lloyd clubs Improving returns Developing clubs –Contribution up £7.7m year-on-year Reducing time to maturity –Average pre opening memberships – 1,397 Improving mature club ROCE –15.4%  16.2% (pre divisional overhead)

David Lloyd clubs Improving returns Utilisation Yield management Build costs

David Lloyd clubs Pipeline secures future growth EpsomBrussels BromsgroveOxford FulhamLisburn KingstonSouthend SwindonFarnham

Current trading Like-for-like sales – 7 weeks Marriott-2% Travel Inn+6.4% Brewers Fayre+5.8% Beefeater+5.2% David Lloyd Leisure * +7.2% * 5 weeks only