Slide 1: Full Year Results 2015/16
WHITBREAD 26 APRIL 2016 FULL YEAR RESULTS 2015/16
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation” js provided ona strethy priate and confidentiabasisforinfomation purposes onl. Byattendng orrescingthis Presentation, you wilbedearnedto haveagreadtotheoblgations and restrictions se outbeow. Wihouttheepress priorwnitten consent oftheCompanythe Presen
Slide 3: Richard Baker, Chairman
WHITBREAD Richard Baker Chairman me CsCs‘(C:sCisA
Slide 4: Alison Brittain, Chief Executive
WHITBREAD Alison Brittain Chief Executive —C“C;isSCSC(‘iY
Slide 5: Agenda
Agenda WHITBREAD 1. Welcome 2. Financial Highlights and Strategic Update 3. Group Full Year Results 4. Q&As eeeeeeeeeeeeeeeeeC‘(EeHstH
Slide 6: Group highlights — a good year
Group highlights — a good year WHITBREAD Total Like for Profit Earnings FullYear Return Leverage revenue like before tax” pershare dividend on capital t\(t)\/(t ¥ 11.9% 11.7% 10.0% 15.3% £2.9bn £546.3m 238.65p 90.35p * Underlying profit before tax for 53 weeks to 3 March 2016 5
Slide 7: Strategic update
Slide 8: Continuing to focus on strong fundamentals
Continuing to focus on strong fundamentals WHITBREAD Significant Unique Disciplined Clear strategy Focus on market brand capital for profitable shareholder opportunities strength management growth delivery Leading Great customer Strong balance Premier Inn Growing EPS and market propositions sheet c.
Slide 9: Continued focus on Whitbread customers, teams and communities
Continued focus on Whitbread customers, WHITBREAD teams and communities Investing in our people Customer 7 , wS UK Top Employer ) wining one \ Heartbeat / Pomate cow SO UK’s favourite coffee shop Vv Top quartile Employee a ©) Best Coffee Shop Chain, Engagement Southern Europe Allegra V ah apprentice
Slide 10: The external environment is evolving
The external environment is evolving WHITBREAD * Broader competitor dynamics and market disruptors * Rising customer demands and expectations Sustained growth through * Technological developments : investment and * Changing cost structures innovation * Competition for skills and people * Productivit
Slide 11: Whitbread
4 te WHITBREAD
Slide 12: Delivering long term shareholder value
Delivering long term shareholder value WHITBREAD Build capability to support long term growth Grow and innovate Focus on our strengths in core UK to grow internationally [—— 85,000 c.£2.5bn 2020 growth @®) Premier inn 3 COSTA rooms system sales Long term growth in earnings and dividends combined wit
Slide 13: Grow and innovate in our core UK businesses
Slide 14: Structural growth opportunities remain strong
Structural growth opportunities remain strong = @)Premierinn Total UK hotel market 684,000 676,000 688,000 700,000 721,000 += 740,000 New model assumptions rooms * Supply — Branded budget c.+6% p.a. including Premier Inn Budget branded 18% 22% 24% Other branded Independents | 2010 2012 2014 2016 201
Slide 15: Premier Inn — drivers of success
p remier Inn — drivers of success @) Premier inn Network Continue to grow strength UK rooms — offering 86% direct bookin : e greater choice of location through premierinn.com Digital Consistent direct quality distribution delivery Investing in our product Dynamic pricing — ; Value for money Good Nig
Slide 16: Offering customers consistency and the greatest choice of locations
: Offering customers consistency and the ® Premier inn greatest choice of locations Number of UK hotels Continue to invest to deliver consistency * Continuing 6 and 12 year refurbishment cycle ¢ Net Recommend scores higher post refurbishment * Benefits — Drives direct bookings loyalty — Revpar premi
Slide 17: Value for money for our customers
Value for money for our customers ®) Premier inn * Prioritise occupancy and value to build ne long term loyalty a OV YouGov value for money measure * Maintain pricing discipline - eee geo UK hotel market - ARR and occupancy £61.68 £2 Travelodge £57.01 £57.41 ‘Occupancy 5.1%pts i i.0 ine, Holiday Inn
Slide 18: Digital direct distribution — 86% share of bookings
Digital direct distribution — 86% share of bookings ® Premier inn Volume of reservations by channel ¢ Direct booking is better 8% 9% 7% 7% Premier Inn for our customers 15% 11% other - — Lowest price channel — Greater location content Relevant customer offers * Direct booking is better % Premier Inn
Slide 19: Premier Inn rooms open and pipeline
* Rooms open 53,363 * Pipeline c.8,500 rooms * Extensions — 39% of opportunity to 2020 Future rooms by type of opportunity, to 2020 Extensions New catchments Existing _ 335 catchments Source: Internal data, OC&C Analysis
Slide 20: London market opportunity still strong
London market opportunity still strong ® Premier inn Premier Inn hotel rooms and sales growth (£m) Sales CAGR' 16.7% * Low Premier Inn market share c.7% £260m £220m Peer 4 is ¢ 9, ree £192m High occupancy maintained at c.86% Rooriis “iia 11,236 * New hotels performing well open 8,066 8,729 : * Disci
Slide 21: hub — enables growth in high property cost locations
hub — enables growth in high property © © Premier inn cost locations = . 4 hub hotels now open (585 rooms) — London: Covent Garden, Brick Lane, Tower Bridge — Edinburgh: Royal Mile * TripAdvisor score 4.5 across all sites — 86% excellent or very good experience ¢ 2,270 rooms committed; 12 hotels — L
Slide 22: Ambitious growth with good returns
Ambitious growth with good returns ®) Premier inn c.7,700 c.85,000 c.12,700 c.77,300 eS 64,599 =| * Maintaining good returns — Whitbread Hotels and Restaurants (UK) deliver 13.7%! 41,470 return — UK pipeline expected to deliver similar returns by 2020 UK rooms” — Accretive thereafter at maturity 23,
Slide 23: Restaurants — critical to Premier Inn customers
Restaurants — critical to Premier Inn customers @)Premierinn Beefeater ¢ Restaurants providing a vital service to Premier Inn guests B f — Customers demand a good breakfast eater. EYE BLOCK | — Dinner very important to our B2B guests * Joint site restaurants increase Premier Inn revpar and returns —
Slide 24: Costa
COSTA
Slide 25: UK retail — structural growth opportunities remain strong
UK retail — structural growth opportunities COSTA remain strong UK coffee shop market, number of outlets” 2010 to 2020 Global coffee consumption 27,412 2015-2020 (kg/capita/year)t Finland 11.4 ee Sweden 10.4 ike 11,109 | 6.9% Norway 8.7 Germany 6.3 14,341 7,976 - Italy 5.8 SEE chon ON Czech Republic
Slide 26: UK's favourite coffee shop
UK’s favourite coffee shop — focusing on our COSTA customers’ needs in the greatest choice of locations Number of UK stores” Brand Preference: Costa is the UK’s favourite 2,034 * Quality of coffee remains 36% important 31% * Convenience remains essential * Customers demanding more 849 ‘ 22% — Faster
Slide 27: Investing in fresher, finer, faster products and digital capabilities
Investing in fresher, finer, faster products and COSTA digital capabilities for our customers Fresco Barista Chop’d and peas F Extension of concept Smoothie fresh food Ke) a ae Lv healthy z salt an t extension ranges = ee added sugar . costa OLD . “; Coffe: | PARADISE | Finer Old Paradise Single ori
Slide 28: Driving growth throughout the day
Driving growth throughout the day COSTA ONLY €1 WoT Baek Food capture Breakfast to go Healthy and fresh Hot, chilled, baked Transaction value Healthy and fresh Hot, chilled, baked Afternoon and early evening Extending hours Pairing and sharing
Slide 29: Good growth opportunities
Good growth opportunities COSTA Offering customers the greatest choice and convenience * Our new network plan shows gaps in our UK coverage Future growth opportunities showing strong performance — Drive Thru, Travel, Retail Parks — strong fundamentals ¢ New stores performing well and delivering good
Slide 30: Focus on our strengths to grow internationally
Slide 31: Focus on our strengths internationally
Focus on our strengths internationally * Middle East — Successful Joint Venture and profitable * India and South East Asia — Assessing the opportunity — Challenging operating environment * Germany — good market opportunity — Leveraging off the UK model and capabilities mn — Freehold equity strategy
Slide 32: Focus on our strengths internationally — Germany
Focus on our strengths internationally — @) Premier inn Germany Germany c.900,000 ¢ A great opportunity in a large hotel market rooms — Low branded budget penetration c.5% UK — Fragmented branded competitor set SAG, 000 rooms — Revpar + land cost + construction = good return on capital ‘ a Budget br
Slide 33: Costa
COSTA
Slide 34: Costa Express: growing from c.5,000 to 8,000+ machines by 2020
Growing from c.5,000 to 8,000+ machines by 2020 Strong market position and partnerships Telemetry management Strong returns Exciting international expansion — c.500 machines in 9 different markets including Poland, Ireland, Czech Republic, Middle East — Canada new market — year one c.150 installatio
Slide 35: Franchise, Poland and France
* Franchise — strong and profitable business — Total system sales growth 13.6% — c.700 stores * Poland — on track to achieve profitability in 2017 | — Re-brand to Costa completed — Good like for like growth * France — evaluating the opportunity for franchise and equity *At constant currency 34
Slide 36: China — disciplined and profitable growth
China — disciplined and profitable growth COSTA building brand awareness Costa China store openings * The opportunity remains strong — 383 stores in 30 cities — Medium term growth focussed on 15 cities * Confidence to succeed — Experienced new mar team with strong focu — New store format sition digi
Slide 37: Build capability and infrastructure
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Slide 38: Invest to build Whitbread's capability and infrastructure
Invest to build Whitbread’s capability and WHITBREAD infrastructure Phased investment to support future growth to 2020 and beyond: Selecting, training, developing >) ah Engaging teams through technology Winning teams ¢ : Developing new Group skills Labour management Supporting long term rowth for Up
Slide 39: Digital — develop capability and infrastructure
Digital — develop capability and infrastructure WHITBREAD to support long term growth * 1.7m members — Restaurants Customer * ¢.30% of sales - Restaurants Targeted Dartaa: Costa Cofted * 5m active users - Costa content & trials Clu loya Ity + >40% transactions - Costa offers retaunch i - +3 Internat
Slide 40: Grow Whitbread's capability to deliver growth, productivity and efficiency
Grow Whitbread’s capability to deliver WHITBREAD growth, productivity and efficiency New opportunities to explore: Finance and Procurement Supporting long term growth for Supply chain and logistics WH ITBREAD eee llllelllelt—C“C*t_=-H
Slide 41: Delivering long term shareholder value
Delivering long term shareholder value WHITBREAD Build capability to support long term growth Grow and innovate Focus on our strengths in core UK to grow internationally > ¢.85,000 c.£2.5bn 2020 growth @®) Premier inn rooms 4 CC OSTA Nears Long term growth in earnings and dividends combined with str
Slide 42: Nicholas Cadbury, Group Finance Director
WHITBREAD Nicholas Cadbury Group Finance Director TCC
Slide 43: Underlying profit before tax on expectations
Underlying profit before tax on expectations WHITBREAD £m 2014/15 2015/16 see westerbte Pi Revenue 2,608.1 2,921.8 12.0% Profit from operations 533.9 600.4 12.5% Central costs (29.5) (31.6) (7.1)% Underlying operating profit 504.4 568.8 12.8% Interest (16.3) (22.5) (38.0)% Underlying profit before t
Slide 44: Good performance in both Hotels and Restaurants and Costa
Good performance in both WHITBREAD Hotels and Restaurants and Costa Profit (£m) 2014/15 Hotels and Restaurants - UK and Ireland* 406.6 Hotels and Restaurants - International (5.2) Total Hotels and Restaurants 401.4 Costa - UK 131.4 Costa - International 141 Total Costa 1s225 Profit from operations 5
Slide 45: Continued good revenue growth
Continued good revenue growth WHITBREAD Revenue (£m) 2015/16 Growth UK like for like : Like for like revpar 2.6%: Premier Inn 1,260.1 12.9% 4.2% London -0.4% Regions 3.4% Restaurants 561.9 3.5% 0.8% Spend per head 1.4% Total Hotels and Restaurants 1,822.0 9.8% 3.1% Costa - UK 975.9 16.3% 2.9% Like f
Slide 46: Margin progression
Margin progression WHITBREAD Hotels and Restaurants (%) 11 14 s — 12 24.2 a 24.5 2014/15 Like for like Efficiency Inflation Investment Rent/Rates 2015/16 Costa (%) 0.3 0.7 15 =z ile Zs 2014/15 Like for like Efficiency Inflation Investment Rent/Rates 2015/16
Slide 47: Underlying profit after tax and exceptionals
Underlying profit after tax and exceptionals £m Underlying profit before tax Pension finance cost - IAS 19(R) Amortisation of acquired intangibles Profit before tax, pre exceptionals Taxation’ ETR 21.3% (2014/15 21.5%) Net profit, before exceptionals Exceptionals Profit for the year WHITBREAD 2014/1
Slide 48: Strong funds from operations support capital investment
Strong funds from operations support capital WHITBREAD investment £m 2014/15 2015/16 EBITDA* 666 748 Working capital and share based payments 48 34 Cash generated from operations 714 782 Product improvement and maintenance capital (176) (215) Operating cash flow after maintenance capital 538 567 Int
Slide 49: A strong balance sheet
A WHITBREAD strong balance sheet 3,116 £m 2,775 Net Debt Pension® Lease commitments 878 Bee) (Rent x 8) Adj Debt EBITDAR Adj Debt EBITDAR 2014/15 2015/16 Leverage ratios Adjusted net debt: EBITDAR 3.2x 3.1x Target <3.5x <3.5x Net debt : EBITDA 0.9x 1.2x Total funding facilities £0.9bn £1.7bn
Slide 50: Diverse and flexible funding
Diverse and flexible funding WHITBREAD Sources of funding (£m) * Funds from operations (EBITDA £748m‘) ® Committed bank facility * Uncommitted money markets lines: £120m ® Bond @ USS PP * Committed bank facility: £950m, 2020 — Option to extend +1yr +1yr ™ Uncommitted MM * US private placements (USSP
Slide 51: Capital expenditure driving future EBITDA growth
Capital expenditure driving future EBITDA growth Cash capital (£m) Hotels and Restaurants Expansion capital - growing pipeline and room openings * Acquisition of UK freehold properties — £165m * Opened 1,467 extension rooms — £117m * Freehold and leasehold construction — £97m * Germany — £62m and Pr
Slide 52: Delivered strong returns
Delivered strong returns WHITBREAD Hotels and Restaurants Costa Group Adjusted ean (2x) 14.4% (sm) (ss 16.9% Investment in future -- are 9, Openings 0.4% pts 0.7% pts 1.5% pts 49.9% UK and 46.3% A Germany 15.3% 15.7% 15.3% Reported 13.3% 13.5% 47 9% 40.5% returns is 2013/14 2014/15 2015/16 2013/14 2
Slide 53: Financials — considerations for 2016/17: Hotels and Restaurants
Financials — considerations for 2016/17: WHITBREAD Hotels and Restaurants £m 2015/16 2016/17 estimate Market* revpar 3.2% 2.6% \ ceoteitenal 1.0% pt 1.5% pt Greater impact in quieter impact of extensions on revpar -1.0% pts c.-1.5% pts demand Q1 and Q4 Impact of extension on like for like sales +2.0
Slide 54: Financials — considerations for 2016/17: Costa
Financials — considerations for 2016/17: WHITBREAD Costa £m 2015/16 2016/17 estimate UK like for like assumption 2.9% c.2% - 3% New stores (net) 197 ¢.230 —250 7 52% 55% * International 48% 45% New Express machines (net) 924 c.1,000 - UK 83% c.60% * International 17% c.40% Incremental P&L investment
Slide 55: Financials — considerations for 2016/17: Capital
Financials — considerations for 2016/17: Capital WHITBREAD Cash capital (£m) 2015/16 2016/17 estimate Hotels and Restaurants 622 c.560 Expansion capital 393 ¢.315 Germany 62 c.60 Product improvement and maintenance capital 192 c.185 * Refurbishment/Product 91 c.90 + Maintenance 58 c.45 + IT/Systems
Slide 56: Current trading
Current trading WHITBREAD * Early days in the new financial year (week 6) with year on year trading comparison impacted by the timing of Easter * Whitbread’s early indications are: — Costa good start to the year — Premier Inn growing market share in a flat hotel market * Q1 trading update 21 June *
Slide 57: Other consideration for 2016/17
Other consideration for 2016/17 WHITBREAD * Trading updates changing to 4 per annum — Q1,13 weeks to be announced 21 Jun 2016 — Interims, 26 weeks to be announced 25 October 2016 — Q3,44 weeks to be announced January 2017 — Full year, 52 weeks to be announced April 2017 * Capital markets update — No
Slide 58: Delivering long term shareholder value
Delivering long term shareholder value WHITBREAD Build capability to support long term growth Grow and innovate Focus on our strengths in core UK to grow internationally > ¢.85,000 c.£2.5bn 2020 growth @®) Premier inn rooms 4 CC OSTA Nears Long term growth in earnings and dividends combined with str
Slide 59: Appendix
WHITBREAD
Slide 60: Standard information
Standard information WHITBREAD General Average Room Rate (ARR) Income before fixed costs (IBFC) Income after fixed costs (IAFC) Joint Sites Like for like sales Occupancy Return on Capital Solus Sites Revpar/yield Hotel accommodation income divided by the number of rooms occupied by guests Whitbread
Slide 61: Standard information: Hotels and Restaurants
WHITBREAD Standard information Hotels and Restaurants Solus ' Sales IBFC WFC? Net Assets Return on Capital ‘ Joint * Sales IBFC AFC Net Assets * Return on Capital * TOTAL - Hotels & Restaurants’ Sales - Premter inn Sales - Restaurants Sales - Total Revenue (BFC iia EBITDA from Operations Underlying
Slide 62: Standard information: Hotels and Restaurants continued
WHITBREAD Standard information Hotels and Restaurants continued Number of Rooms Solus : ~ Managed 37,100 33,559 + Associate 282 282 - Franchise & Management Contract 194 194 Total Solus 37,576 34,035 Joint Sites 27,023 25,103 Total UK & Ireland 64,599 59,138 WHR International 2,164 1,703 Germany 201
Slide 63: Standard information: Costa
WHITBREAD Standard information Costa System Sales - Total Sales - Total EBITDA from Operations Underlying operating profit Segmental Net Assets Cash - Capital Expenditure - Total ' Cash - Business Acquisitions Cash - Capital Expenditure & Investments Key operating Measures Like for Like Sales Growth
Slide 64: Strength and breadth — 2015/16
Strength and breadth — 2015/16 COSTA UK Retail Costa Enterprises Costa EMEI Costa Asia Equity stores Costa Express Europe, China and Individual Corporate Middle East South East Asia franchise Partnerships and India System sales System sales System sales System sales £886.8m £396.5m £230.4m £99.0m 16
Slide 65: Exceptional items
Exceptional items WHITBREAD £m 2014/15 2015/16 i eer ephee (3.3) (20.9) pirek saltise is boareny ire asmlaN eli ; (10.1) Impairment 2.3 (5.4) Tax on exceptional items 0.4 (1.5) Interest on exceptional tax & the unwinding of discount rate on provisions 0.8 (0.7) Exceptional tax items 2.0 (0.1) Deferr
Slide 66: Extensions provide low risk and good returns
Extensions provide low risk and good returns WHITBREAD Hotel example 2015/16: 50 room hotel 20 room extension 2016/17 budget: 70 rooms t (% &£) 4 82.1 814k 53.79 4aaz7 z 292k Za 65.5 63.12 41.33 Occupancy Rate Revpar Room sales ppts Occupancy Rate Revpar Room sales Occupancy Rate Revpar Room sales p
Slide 67: Lease commitments and depreciation
Lease commitments and depreciation WHITBREAD Annual rent £m 2014/15 2015/16 Hotels & Restaurants 107.5 123.4 * Hotel and Restaurants rent bits (Aa as expected to increase by . : c.£15-20m in 2016/17 Total property rent” 208.7 234.7 Plant & Machinery operating lease payments 7.8 3.4] Annual depreciat
Slide 68: Interest and taxation
Interest and taxation WHITBREAD * Underlying interest charge of £22.5m (2014/15 £16.3m) £m 2014/15 2015/16 Loans and overdraft charge (21.1) (32.7) Interest capitalised 43 10.0 Other 0.5 0.2 Underlying interest charge (16.3) (22.5) Effective interest rate 4.3% 4.7% * Effective tax rate — 2014/15 21.
Slide 69: Underlying profit before tax on expectations (52 week comparison)
WHITBREAD Underlying profit before tax on expectations (including 52 week comparison) ém 2014/15 2015/16 Change roe Revenue 2,608.1 2,921.8 12.0% 10.1% Profit from operations 533.9 600.4 12.5% 9.8% Central costs (29.5) (31.6) (7.1)% (6.4)% Underlying operating profit 504.4 568.8 12.8% 10.0% Interest
Slide 70: Good performance in both (52 week comparison)
Good performance in both WHITBREAD Hotels and Restaurants and Costa (including 52 week comparison) Profit (£m) 2014/15 2015/16 Change oon Hotels and Restaurants - UK & Ireland* 406.6 451.5 11.0% 8.3% Hotels and Restaurants - International (5.2) (4.6) 11.5% 11.5% Total Hotels and Restaurants 401.4 44
Slide 71: Continued good revenue growth (52 week comparison)
WHITBREAD Continued good revenue growth (52 week comparison) Growth Revenue (£m) Total sales Growth 52 wks UK like for like Premier Inn 1,260.1 12.9% 10.8% dae \_ Teeny oak Restaurants 561.9 3.5% 1.7% 0.7% Spend per head 1.4% Total Hotels and RGStAUrantS 1,822.0 9.8% 7.8% 3.2% Costa - UK 975.9 16.3%
Slide 72: Whitbread
WHITBREAD