Slide 1: Interim Results 2012
Interim Results 2012 23 October 2012 EAT SLEEP & DRINK WHITBREAD 7
Slide 2: Slide 2
Slide 3: Anthony Habgood, Chairman
Anthony Habgood Chairman EAT SLEEP & DRINK WHITBREAD 7
Slide 4: Andy Harrison, Chief Executive
Andy Harrison Chief Executive EAT SLEEP & DRINK WHITBREAD 7
Slide 5: Summary
Summary Wit BREAD * Good H1 performance - continued outperformance, winning share — Total sales up 14.2% - Costa up 25.0%, Premier Inn up 12.9% — Underlying PBT up 10.6%; ROCE 13.7% — Operating cashflow up to £285.3m up 11.0% — Interim dividend up 11.4% * Strong brands drive strong like for like per
Slide 6: Christopher Rogers, Group Finance Director
Christopher Rogers Group Finance Director EAT SLEEP & DRINK WHITBREAD 7
Slide 7: Highlights
Highlights H1 2012/13 £m Revenue Underlying profit before tax ROIC EPS underlying (diluted) Proposed interim dividend H1 2012/13 £1,018.1m £193.4m 13.7% 81.65p 19.50p EAT SLEEP & DRINK WHITBREAD H1 2011/12 Change £891.3m 14.2% £174.9m 10.6% 13.4% 72.20P 13.1% 17.50p 11.4%
Slide 8: Profit & loss
Profit & loss H1 2012/13 £m Revenue Profit from operations Central costs Interest Underlying profit before tax H1 2012/13 1,018.1 217.4 (11.4) (12.6) 193.4 H1 2011/12 891.3 194.9 (8.6) (11.4) 174.9 Change 14.2% 11.5% (32.6)% (10.5)% 10.6%
Slide 9: Profit & loss - continued
Profit & loss - continued H1 2012/13 £m H1 2012/13 H1 2011/12 Change Underlying profit before tax 193.4 174.9 10.6% Pension finance cost - IAS 19 (8.6) (7.8) (10.3)% Amortisation of acquired intangible 3} aay Prone percte ax, 183.5 165.8 10.7% pre exceptionals Taxation (46.6) (45.6) (2.2)% Net profi
Slide 10: Revenue by business segment
Revenue by business segment H1 2012/13 £m H1 2012/13 H1 2011/12 Change Hotels & Restaurants 705.9 641.9 10.0% Costa 313.4 250.8 25.0% Less: inter-segment * (122) (1.4) Revenue 1,018.1 891.3 14.2% 10 * Sales between segments
Slide 11: Hotels & Restaurants revenue
Hotels & Restaurants revenue H1 2012/13 £m H1 2012/13 H1 2011/12 Change Premier Inn revenue 443.5 392.8 12.9% Restaurants revenue * 262.4 249.1 5.3% Hotels & Restaurants 705.9 641.9 10.0% 11 * Revenue from joint site and stand alone restaurants, restated for the transfer of a site from the solus est
Slide 12: Like for like sales
Like for like sales Z01 2713 12 H1 2012/13 = 4.3% a -0.9% 2011/12 2012/13 2011/12 H1 2012/13 = 4.6% 2012/13 Premier Inn Restaurants ™Q3 "Q4 #Qi #Q2 5.2% 2011/12 H1 2012/13 = 2012/13 Costa
Slide 13: Unit growth
Unit growth 13 Premier Inn - UK & Ireland Premier Inn - International Total Premier Inn (rooms) Restaurants Costa - UK Costa - International Total Costa (stores) Costa Express/Nation March 2012 47,429 1,296 48,725 387 [sere 811 2,203 dau Net 1,30 August 2012 49,020 1,296 50,316 389 1,479 865 2,344 1
Slide 14: Profit by business segment
Profit by business segment H1 2012/13 £m H1 2012/13 H1 2011/12 Change a Restaurants - UK & 184.6 169.6 8.8% anaes es Total Hotels & Restaurants 181.3 167.1 8.5% Costa - UK 34.6 26.4 31.1% Costa - International’ 135 1.4 Total Costa 36.1 27.8 29.9% Profit from operations 217.4 194.9 11.5% 14 * Restate
Slide 15: Profit & loss
Profit & loss H1 2012/13 15 £m Revenue Profit from operations Central costs Interest Underlying profit before tax H1 2012/13 1,018.1 217.4 (11.4) (12.6) 193.4 H1 2011/12 891.3 194.9 (8.6) (11.4) 174.9 Change 14.2% 11.5% (32.6)% (10.5)% 10.6%
Slide 16: Interest charge
Interest charge H1 2012/13 £m H1 2012/13 Underlying interest charge (12.6) Pension finance cost - IAS 19 (8.6) Interest charge, pre exceptionals (21.2) Exceptional interest 10.1 Total interest cost (11.1) Average net debt in first half £499.1m (2011/12 £454.9m) 16 H1 2011/12 (11.4) (7.8) (19.2) (0.8
Slide 17: Exceptional items
Exceptional items H1 2012/13 £m H1 2012/13 = H1 2011/12 Settlement of tax claim 13:5 Interest on tax claim 10.6 Reduction in tax rate AWE) 18.3 Other (including profit/loss on sale of (2.2) 28.4 property/investments) Tax on exceptional items (2.5) (7.7) Exceptional items 36.5 39.0 17
Slide 18: Cash flow
Cash flow Em teaioat cera 2010/11 (487.9) H1 2012/13 H1 2011/12 (32.2) (520.1) 2011/12 15.8 (504.3) 300 H1 2012/13 (21.5) (525.8) 270 240 210 180 & 150 120 90 : : i - Cashflow from Cash capital Dividends Interest and tax Pension* Other Increase in net operations expenditure debt 18 * Pension payment
Slide 19: Capex
Capex Capex by business (£m) Expansionary vs maintenance (£m) 77 143 111 36 H1 2011/12 H2 2011/12 H1 2012/13 H1 2011/12 H2 2011/12 H1 2012/13 9 M@Costa MHotels & Restaurants @Expansionary Maintenance
Slide 20: Property analysis - UK hotels
Property analysis - UK hotels 48,865 Rooms as at 11,000 Committed pipeline 30 August 2012 80% | 80% | * Post build out of the pipeline freehold falls to 65% 70% + 73% 70% 60% 7 60% 50% 4 50% 40% | 40% 30% + 30% 27% 20% + 20% 10% 4 10% 0% * 0% Leasehold <35 Freehold & long Leasehold <35 Freehold & lo
Slide 21: Property analysis
21 Property analysis Investment in freehold and long leasehold continues to rise £m 2010/11 2011/12 2012/13E Total Gross investment 80 128 115 323 Disposals (1) (32) (1) (34) Net 79 96 114 289
Slide 22: Returns
Returns % H1 2012/13 H1 2011/12 FY 2011/12 Hotels & Restaurants 125 12.5) 12.4 Costa 3122 28.5 32.4 Group 13:7, 13.4 13.6 * Underlying profit before interest and tax for the year divided by segmental net assets at the 22 balance sheet date, adding back debt, taxation liabilities and the pensions def
Slide 23: Other financial items
Other financial items * Triennial pensions review completed - no change in deficit funding payments agreed in 2008 ¢ 2012/13 payment £35m as £25m pre-paid in 2011/12 * IAS 19 pension deficit increases to £640m (£525m net of tax) - driven by reduction in discount rate which falls a further 0.55% * Ca
Slide 24: Summary
Summary * Revenue * Underlying profit before tax £193.4m * EPS, Underlying 81.65p * Proposed interim dividend 19.50p 24 +14.2% +10.6% +13.1% +11.4% EAT SLEEP & DRINK WHITBREAD
Slide 25: Andy Harrison, Chief Executive
Andy Harrison Chief Executive EAT SLEEP & DRINK WHITBREAD 7
Slide 26: Whitbread: Good first half result, Hotels & Restaurants
Whitbread Good first half result Hotels & Restaurants * Total sales up +10.0% * Profit up 8.5% to £181.3m, ROCE 12.5% ¢ Premier Inn continues to strengthen, outperform and win market share — New UK rooms: H1 1,591 - FY 4,500 — On track for 65,000 UK rooms by 2016 milestone — Like for like revpar* gr
Slide 27: Premier Inn
Slide 28: Key levers for outperformance
2 Key levers for outperformance Winning customer le propositions XN Network strength Driving outperformance Premierinn.com ; Dynamic pricing 28
Slide 29: Continued outperformance Premier Inn - UK regions
2 Continued outperformance Premier inn 20.0% Revpar growth - UK regions 15.0% 10.0% 5.0% 0.0% 5.0% Royal holiday comparative 10.0% Pd& Pd9 Pd10 Pdi1 Pdi2 Pdi Pd2 Pd3 Pd4 PdS Pd6 Pd7 ———STR Total Market STR Economy / Midscale Market @==ePremier inn (LFL) 29 Source: STR Global
Slide 30: Continued outperformance Premier Inn - Greater London
2 Continued outperformance Premier Inn Revpar growth - Greater London 45.0% 35.0% 25.0% 15.0% 5.0% 5.0% 15.0% Royal holiday Olympics effect comparative 25.0% Pd& Pd9 Pdi0 Pdi1 Pdi2 Pdl Pd2 Pd3 Pd4 PdS Pdé Pd7 30 Source: STR Global STR Total Market STR Economy / Midscale Market ==—ePremier Inn (LFL)
Slide 31: Continued outperformance
2) Continued outperformance Revpar outperformance vs Midscale & Economy* (%pts) 2011/12 2012/13 H1 H2 H1 @Greater London ™ UK Regions 31 * Based on STR Global
Slide 32: Structural growth opportunity
> Structural growth opportunity (dada UK hotel market share 678,000 679,000 705,000 rooms rooms rooms 13% 18% 64% 58% 2007 2010 2016 32 ® Branded Budget Other Branded ® Independent
Slide 33: Dynamic pricing
2 Dynamic pricing Met aes * Flexible offer rolled out to two-thirds of the estate * Estimated revpar uplift of a couple of % pts” * Expectation Saver will reach c.30-40% of rooms sold at maturity * Benefit primarily delivered via three related factors — Premium on Flex rate — Volume growth via Saver
Slide 34: Investing in strong brands
2) Investing in strong brands Premier Inn Share of voice* * Maintained marketing investment - share of voice up to 59% H1 2011/12 H1 2012/13 Website visits * Strong brand - 22% increase in web traffic * 82% of bookings aanaae jersaneaies through automated Automated 76% 82% channels channels 34 * Sou
Slide 35: Investing in our brand
2 Investing in our brand Premier Inn Net recommend’ refurbished sites (%) * 2011/12 and 2012/13 - £45m investment in 6,000 older rooms 73 | * Drives improved guest scores 9-10 20 oo. 0-6 7-8 @ Pre conversion @ Post conversion 35 Source: NPS total estate ORC Customer Satisfaction Survey ; NPS for the
Slide 36: Premier Inn
-) Premier inn Net recommend* H1 2012/13 . total estate (%) Annual investment of c.£75m to maintain consistent brand standard 24 0-6 7-8 9-10 New reception @ Last year This year * Guest recommend total of 436,070 responses first half 2012/13
Slide 37: Network continues to strengthen
Network continues to 2 strengthen Premier Inn’ Premier inn 5,126 65,000 s100 | * 31 new hotels will + ops (J open this year _ 24 * Greater customer antes choice relative to our competitors . * Network plan built perbot +12 +19 +72 from 300 local market decisions Full year H1 2012/13 H22012/13E Commi
Slide 38: Focus on London
2 Focus on London Bzomer in Growing in London hae Total hotels 4,008 * Room growth 26%; increased market _ share from 5% to 6% — 9 new hotels, 1,576 rooms ss 2,216 * Maintained strong occupancy of 86% ¢ 33% of committed pipeline H1 2012 H1 2013 Inc. committed pipeline @M25 belt ™ Greater London excl
Slide 39: Premier Inn International
2 Premier inn * Solid H1 performance: — Total occupancy up 6.1% pts to 56.2% New Dethi — Like for like revpar up 34.8% — Total number of rooms 1,296 * Moving to ‘Capital Light’ model * Signed 11 MOUs for 18 hotels * Focus on three territories: — India — Middle East — Asia Pacific
Slide 40: Restaurants
Restaurants
Slide 41: Improving performance
41 ly e able Improving performance Ss @ Cie Joint sites key Menu management XN Stronger Improved guest performance experience : Managing margins
Slide 42: Improving performance
Improving performance S&S 5% > Like for like sales growth 4% > 3% 4 2% 4 1% -1% 7 42 | [=] Fl Q3 2011/12 -1.4% -1.7% a4 2012/13 Brewers Fayre Table
Slide 43: Menu management
Menu management ee on 43 Brewers Table Fayre rey * Delivering a more competitive product with great value deals — Breakfast sales (+20% year on year) — Buffet place sales (+7% on conversion) ¢ Value meals 40% of sales * New menus — Menu engineering — Localised pricing
Slide 44: Improving guest experience
Improving guest experience Net recommend H1 2012/13 (%) 18 18 13 10 6 7-8 9-10 Guest 0- scores 44 @Lastyear M™This year * Guest recommend total of 170,073 responses first half 2012/13 72 * Sharper focus - dedicated restaurant teams * Improving consistency of service delivery through training academi
Slide 45: Managing margins
Brewers Fayre Table Managing margins Ss * Food and labour inflation offset by: 3 — Selective price increases Inflation : — Cost efficiencies of £4-5m pressures: this year * Investing in stronger, dedicated restaurant management team Labour +2.5% Food +5.0% 45
Slide 46: Restaurants reinforce Premier Inn
Restaurants > e e 4 able reinforce Premier Inn 16 Ca * Joint site model key Room stock (%) — Optimal format for sub 80 room — WTB joint ROCE’ 17.7%; Solus 15.3% Co-located 15% — c.20% of growth pipeline * WTB joint site superior to Co-Lo — F&B (breakfast) critical to Premier Inn “Joint sites” — High
Slide 47: Costa Coffee
Costa Coffee | - me “co. Ih] ‘EE = 1 VERS
Slide 48: Outstanding first half results
Outstanding first half results COETA * System sales up 23.3% to £472.8m° « System stores grew by 6.4% to 2,344 * Strong UK like for like growth of 6.8% with a positive impact from the weather * Added 794 Express Machines to total 1,986 * Underlying profit up 29.9% to £36.1m * ROCE of 31.2% 48 * Pre
Slide 49: Strong performance across the board
Strong performance across across the board COSTA Costa EME! Costa Asia Europe, China and UK Retail Equity stores Individual franchise Costa Enterprises Costa Express Corporate Partnerships Middle East South East Asia and India i ‘y f fr ‘4 System Sales £255.4m System Sales £111.7m System Sales £84.2
Slide 50: UK strong - with good momentum
UK strong - with good momentum COSTA UK equity like for like growth (%) ouilllg Q3 2011/12 Q4 2011/12 Qi 2012/13 Q2 2012/13 * Another strong performance — Strong LFL sales growth of 6.8% — Consistent across all channels — Positive weather impact * Continued rapid expansion UK store expansion ° — 87
Slide 51: UK Retail - key drivers
UK Retail - key drivers COSTA Preference: Costa is still the UK’s favourite And the gap is widening ¢ The UK’s favourite coffee shop 32% COSTA ¢ Innovation — New Ice cold Costa drinks up 29% year on year — New food range Starbucks — New hot drinks: Caffe Caramella, Cortado, Chai Latte ¢ Refurbishmen
Slide 52: Costa Express machines
COSTA Costa Express machines 794 new machines added in H1 with c.400 from Shell Coffee Nation ™ Costa Express machines +20% Costa Express sales up 86.8% year on year 970 2011 2012 H1 2013 ® Costa Express
Slide 53: Costa EMEI
Costa EMEI COSTA * Continuous store growth : 16 net stores added in H1; total of 663 * System sales up 13.8%, underpinned by like for like sales growth across the regions of 6.8% — Middle East sales rebounding after the Arab Spring — Central & Southern Europe more difficult ~ -We are now trading in
Slide 54: China - a growing opportunity
China - a growing opportunity COSTA China stores * Opened 37 new stores, total of 201 stores in 25 cities * Like for like sales growth of 19.2% in H1 264 Target Population iting ines 164 cities (m) today today Tier 1 4 70 4 138 95 Tier2 35 270 16 72 Tier 3 109 480 x] 4 al [| Tier4 512 518 2 2 Total
Slide 55: Costa: Another outstanding performance
COSTA Another outstanding performance Brand network continues to strengthen On track to deliver growth milestones: After 18 months - System sales up 38% from £659m, stores up 25% from 1,871 China exciting opportunity
Slide 56: Targets 2016/17
Targets 2016/17 Coo x6CETHER... =—r Job Creation + Accreditation and sustainable + 25% carbon reduction™ + 10,000 new UK jobs supply of: + 15% reduction Charitable Activity = TEMG in water* consumption + £5m charitable fund raising by - Timber WHR 7 + Zero waste + Costa Foundation to educate > Falm.
Slide 57: Activity in the first half of year
Activity in the first half of year Teams and community Customer wellbeing + 1,500 jobs created + Calorific labeling in Costa and : . Thyme restaurants. Trials in + 1,000 nationally recognised place for other Restaurant qualifications businesses + 100 apprenticeships Responsible Sourcing Policy updat
Slide 58: Outlook
EAT SLEEP & DRINK Outlook WHITBREAD * Good performance in H1 driven by competitive outperformance in broadly flat markets — Helped by Olympics, some comparatives and weather ¢ Markets remain challenging — London settling post Olympics * Expect to continue to outperform competitors; like for like sal
Slide 59: Summary
EAT SLEEP & DRINK Summary WHITBREAD * Another good performance, combining — Good like for like sales growth — Rapid organic growth — Good returns — Strong cashflows * Driven by our leading brands, which are getting stronger — Winning share — International growth progressing * Creating substantial va
Slide 60: Q&As
Slide 61: Appendix
Appendix EAT SLEEP & DRINK WHITBREAD 7
Slide 62: Standard Information: definitions
Standard Information General Achieved Room Rate Hotel accommoda0on income divided by the (ARR) number of rooms occupied by guests Income before fixed costs Hotel opera0ng profit before directly a?ributable (IBFC) fixed costs (such as rent, rates, insurance, etc.), head office and central costs Income aFe
Slide 63: Standard Information Hotels & Restaurants
Standard Information Hotels & Restaurants Hotels & Restaurants Half Year Half Year Full Year 2012/13 2011/12 8 2011/12 8 Solus Including International 1 Sales £m 263.6 226.1 440.9 IBFC £m 155.1 132.0 252.4 IAFC 2 £m 93.6 80.6 147.3 Net Assets £m 1,048.6 977.5 1,007.4 3 Joint Sales £m 442.3 415.8 798
Slide 64: Standard Information Hotels & Restaurants cont.
Standard Information Hotels & Restaurants cont. Hotels & Restaurants cont. Half Year Half Year Full Year 2012/13 2011/12 3 2011/12 3 Number of Rooms Solus : - Managed 26,165 22,918 24,824 - Associate 282 282 282 - Franchise & Management Contract 449 449 449 Total Solus 26,896 23,649 25,555 Joint Sit
Slide 65: Standard Information Costa
Standard Information Costa Costa Half Year Half Year Full Year 2012/13 2011/12 2011/12 System Sales - Total 1 £m 472.8 383.6 819.3 Sales - Total £m 313.4 250.8 541.9 EBITDA from Operations £m 54.8 40.5 97.3 Underlying EBIT from Operations 2 £m 36.1 27.8 69.7 Total Net Assets £m 249.8 205.8 215.3 Cas