Slide 1: 22 October 2013
22 October 2013
Slide 2: Interim Results 2013
Interim Results 2013 WHITBREAD “Making everyday experiences special” 22 October 2013
Slide 3: Anthony Habgood, Chairman
Anthony Habgood Chairman WHITBREAD
Slide 4: Andy Harrison, Chief Executive
Andy Harrison Chief Executive
Slide 5: Summary
WHITBREAD Summary WHITBREAD * Good H1 performance - double digit growth Total sales up 12.4% Underlying PBT up 12.6% to £216.1m EPS underlying (diluted) up 12.2% to 90.92p Operating cash flow of £307.7m, funding organic growth Interim dividend up 11.8% ROC up 0.7% pts to 14.4% * Growth engines conti
Slide 6: Nicholas Cadbury, Group Finance Director
Nicholas Cadbury Group Finance Director WHITBREAD
Slide 7: Underlying profit growth of 12.6%
Underlying profit growth of 12.6% WHITBREAD £m H1 2013/14 H1 2012/13* Change Revenue 1,144.7 1,018.1 12.4% Profit from operations 239.2 217.4 10.0% Central costs (13.5) (12.9) (4.7)% Underlying operating profit 225.7 204.5 10.4% Interest (9.6) (12.6) 23.8% Underlying profit before tax 216.1 191.9 12
Slide 8: Profit and loss - continued
oo and loss - continued WHITBREAD 3/14 Hi 2012/13 Change Underlying profit before tax 216.1 191.9 12.6% Pension finance cost - IAS 19 (12.3) (13.8) 10.9% Amortisation of acquired intangibles (1.4) (1.3) Profit before tax, pre exceptionals 202.4 176.8 14.5% Taxation (50.3) (45.0) (11.8)% Net profit,
Slide 9: Continuing strong revenue growth
Y euntiniuwa strong revenue growth WHITBREAD +12.2% +24.8% +20.3% +2.9%
Slide 10: Like for like sales growth of 2.8%
Feces like for like sales growth of 2.8% WHITBREAD Premier Inn Restaurants Costa — Like for like revpar growth — Performed in line with Coffer — Strong transaction growth with of 2.1% with occupancy Peach industry tracker outside performance biased towards +1.1% pts at 80.3% of M25 the first quarter
Slide 11: Growth targets being delivered
Growth targets being delivered WHITBREAD March 2013 Opened Transferred/Closed August 2013 Premier Inn - UK & Ireland 51,671 1,392 (24) 53,039 Premier Inn - International 1,296 109 - 1,405 Total Premier Inn (rooms) 52,967 1,501 (24) 54,444 Restaurants 397 (2) 398 Costa - UK 1,578 (10) 1,664 Costa - I
Slide 12: Profit by business segment
r profit by business segment WHITBREAD Hotels & Restaurants - UK & Ireland 199.1 184.6 7.9% Hotels & Restaurants - International (3.4) (3.3) Total Hotels & Restaurants 19537 181.3 7.9% Costa - UK 44.0 34.6 27.2% Costa - International (0.5) 1.5 Total Costa 43.5 36.1 20.5% Profit from operations 239.2
Slide 13: Exceptional items
Exceptional items WHITBREAD £m H1 2013/14 H1 2012/13 Settlement of tax claim 13:5 Interest on tax claim 10.6 Reduction in tax rate é ATA Other (including profit/loss on sale of property/investments) (1.7) Tax on exceptional items R (2.5) Interest on the unwinding of discount rate on provision (0.5)
Slide 14: Good operating cash flow to fund investment and dividend
Good operating cash flow £307.7m, to fund investment and dividend WHITBREAD H1 2013/14 (£m) Cashflow from Freehold Capital Dividends Interest Pension Other Decrease in net operations investment expenditure debt Net debt reduced by £41.0m to £430.1m Growth milestones being funded by cashflow from int
Slide 15: Capital expenditure driving organic growth
Y capitan expenditure driving organic growth WHITBREAD ston (£m) Maintenance 6 68 10 KYA H1 2012/13 13/14 5 H1 2012/13 H1 2013/14 H1 2012/13 H1 2013/14 Capital expenditure down year on year due to: - Acquisition of St Martins Lane, London last year (£23m) Premier Inn opening plan weighted to the sec
Slide 16: Property pipeline remains strong at over 10,500 rooms
Property pipeline remains strong at over 10,500 rooms WHITBREAD As at 29 August 2013 53,039 rooms* re over 10,500 43 13 68% Leasehold * <35 years Freehold & long leasehold Leasehold * <35 years Freehold & long leasehold * Post completion of the pipeline 61% of rooms will be freehold & long leasehold
Slide 17: Return on capital to 14.4%
== return on capital to 14.4% WHITBREAD 34.7 35.4% 12.5 12.4% ahaa 12012/13 FY 2012/13 H1 2013/14 H1 2012/13 FY 2012/13 H1 2013/14 H1 2012/13 FY 2012/13 H1 2013/14
Slide 18: Other financial items
Other financial items WHITBREAD * IAS 19 pension gross deficit of £507.4m (£541.7m as at 28 February 2013) — Cash contribution of £61.2m — Re-measurement loss of £13.2m principally due to reduction in discount rate from 4.60% to 4.55% ° Effective tax rate of c.24.7% ¢ Full year pension administrativ
Slide 19: Summary - good first half results
Summary - good first half results WHITBREAD * 12.6% underlying profit growth * Good cash flow from operations — Underpinning balance sheet strength — Funding organic growth — Supporting 11.8% growth in dividend * Maintaining good return on capital up 0.7% pts to 14.4% WHITBREAD
Slide 20: Andy Harrison, Chief Executive
Andy Harrison Chief Executive
Slide 21: Agenda
Agenda € Good first half results — creating shareholder value ) € Premier Inn going from strength to strength } ( Restaurants in line with a challenging market > 1 Costa continuing good resu ) ¢ Delivering on Good Together targets > if Outlook and summary 2 be Q&As > = 3 un WHITBREAD
Slide 22: Whitbread Hotels & Restaurants
Whitbread Hotels & Restaurants Creating shareholder value Delivering organic growth Premier Inn sales up 12.2% Restaurant sales up 2.9% WHR sales up 8.7% Profits up 7.9% to £195.7m By winning market share Opened 12 UK hotels and 1,392 rooms in H1 Pipeline of over 10,500 rooms With good ROC* Premier
Slide 23: Premier Inn
PREMIER INN > = . £ oe) Premier Inn
Slide 24: Delivering value for customers
PREMIER INN Delivering value for customers Product Best Best Customer consistency location valuietor value and quality choice money . Customer Growing Premier satisfaction Growing occupancy Inn KPls and brand network and ARR strength optimisation WHITBREAD
Slide 25: Best location choice
PREMIER INN Premier Inn Best location choice - bringing the customer closer es ¢ Greater choice: — 2016 c.750 locations — 2018 c.830 locations S : Whitbread C titor Datab: AM:PM Hotel. 25 S Nehies Thott in Pelend or Database! eres Ibis [J Holiday Inn Express [[] Travelodge [_] Premier Inn [_] WHITBR
Slide 26: Best value for money
26 Best value for money Premier Inn YouGov value for money measure UK Regions ARR H1 2011/12 Premier £52.43 Inn rate 35 Premier Travelodge Inn rate premium* Holiday Inn iS _- Holiday Inn Express Ibis ee 2009/10 2010/11 2011/12 2012/13 H1 2013/14 Source: YouGov Brand Index as of 1 March 2013, 2,000 s
Slide 27: Top customer satisfaction
PREMIER INN Top customer satisfaction a) Premier inn * TripAdvisor score 4.3 out of 5.0 ¢ Leading the YouGov Hotel Brandindex 0 q LO 1s 20 25 Source: YouGov Brandindex as of September 2013. An aggregate of 6 measures — 27 impression, quality, value, satisfaction, recommend, corporate reputation Gues
Slide 28: Consistent growth in revpar and occupancy
Consistent growth in revpar and occupancy Greater London UK regions Revpar CAGR Revpar £79.46 Premier Inn 9.9 £39.60 £59.31 £61.49 Economy & £34.81 £42.20 s Premier Inn £35.42 Economy & —_ midscale* midscale* 0.6% H1 2010/11 1 2011/12 1 2012/13 -H1 2013/14 H1 2010/11 1 2011/12 Occupancy change Occup
Slide 29: Continuing to grow rooms and market share
Continuing to grow rooms and market share Premier Inn Total rooms 75,000 31,000 14,000 8,000 2010/11 2011/12 3 2016 2018 milestone milestone Premier Inn ° 5 5 UK market 84% 7.0% c.9.0% ¢.11.0% share 29 * Includes 1 hotel in Ireland Holiday Inn Express hi Travelodge oO Premier Inn eal WHITBREAD
Slide 30: 2016 room milestone in sight
PREMIER INN 2016 room milestone in sight * 2013/14 open ” 97 72.0 c.30 new hotels, c.4,000 rooms 2014/15 open c.50 new hotels, c.4,500 rooms London committed pipeline c.4,500 rooms H1 2013/14 Comm 30 Premier Inn | Hub by Premier Inn | WHITBREAD
Slide 31: Dynamic pricing - continuing refinements
PREMIER INN Dynamic pricing - continuing refinements 2 Premier Inn Occupancy H1 2013/14 100% 5 79 oes a 7 0% + I} : 4 —— + I { Like for like revpar H1 2013/14 vs H1 2012/13 5.5% 4.5% 3.5% Revpar % == 2.5% 1.5% 0.5% . — a -0.5% “1.5% -2.5% -3.5% Tuesday Wednesday Thursday Saturday 31 Like for like oc
Slide 32: Strength of Premierinn.com
PREMIER INN Strength of Premierinn.com Premier Inn rect to Premi Telephone Web indirect Premier Inn digital direct WHITBREAD
Slide 33: International - continuing progress
International - continuing progress * Solid H1 performance — Total occupancy up 14.7% pts to 70.9% — Like for like revpar up 26.4% — Total number of rooms 1,405 i > ¢ Middle East profitability up Premier in year on year = — 2, i i mierinn. * India making progress pre inn.com
Slide 34: Growing pipeline - moving to asset light
Growing pipeline - moving to asset light Hotels Rooms Spend Open Signed Agreements MOUs Open 7 1,405 £59m Heavy Light Heavy Light Middle East UAE Future growth c.6,000 £100m Saudi Arabia Signed agreements 1,800 £44m 2018 milestones c.10,000 c.£200m Qatar Bahrain Oman India S.E. Asia Singapore Indone
Slide 35: Whitbread Restaurants
WHITBREAD RESTAURANTS | Table Table 35 WHITBREAD
Slide 36: Restaurants in line with a challenging market
P satan in line with a challenging market Pp (ek: * Total sales £269.9m, up +2.9% — Flat like for like sales In line with Coffer Peach* I — Like for like covers, incl. breakfast (2.4)% year on year - impacted by weather — Like for like SPH +3.4% year on year Like for like breakfast sales (+9.9% year
Slide 37: Improving our menus and driving guest scores higher
Fimproving our menus and driving SEN >> te guest scores higher ps Gy Cin Guest Recommend with 74% of customers scoring 9 or 10 out of 10 17
Slide 38: Protecting margins
. La =a margins GSS Mitigating inflation Menu management Labour savings aa * Half year impact on like for ¢ Full year profit protection: like site contribution margins + Food sourcing and menu management c.(0.8)% pts + Loyalty schemes improve promotional spend + Systems improvements, including labou
Slide 39: Costa Coffee
COSTA COFFEE 3 The UK’s most loved coffee brand WHITBREAD
Slide 40: Continuing excellent results
Continuing excellent results System sales up 19.5% to £569.3m* New stores 189 gross, taking the total to 2,680 worldwide Strong UK like for like growth of 5.5% Added 672 gross Costa Express machines in H1; total 3,142 — Achieved acquisition milestone two years ahead of schedule Underlying profit up
Slide 41: Strength and breadth
Strength and breadth UK Retail Equity stores Individual franchise Costa Enterprises Costa Express Corporate Partnerships Costa EMEI Europe, Middle East and India Costa Asia China and South East Asia System sales £303.8m 17.3% growth System sales £139.8m 25.1% growth 1,320 stores +6.1% —_ 344 stores
Slide 42: UK retail - winning brand
A COFFEE UK retail - winning brand COSTA a hs hn >» _™@® 4° “p Source: YouGov Annual Study 2013. “If these three brands were 5 oH next to each other, which one would you choose?” Costa Gy Starbucks O Nero LJ tSource: Allegra WHITBREAD
Slide 43: Great people, great product
Great people, great product edo} { TA Team Customers Stores Product/innovation + Engagement 82% + Improved * Metros: 36 + Indulgent Coolers * Customer focused brand preference * 70% of estate is * Mocha Latte incentive scheme + Net Promoter new or refurbished + New food range * Core Skills training
Slide 44: Costa Coffee
COSTA COFFEE Delicious treats
Slide 45: UK retail - strength and breadth
45 COSTA COFFEE UK retail - strength and breadth * Growth driven by transactions * Consistent growth by region, by channel and by age of store Like for like growth driven by transactions 5.5% 5.1% H1 2013/14 Like for like growth (%) Transactions (%) [_] et WHITBREAD
Slide 46: 3,142 Costa Express machines - 2016 target achieved
3,142 Costa Express machines - 2016 target already achieved Costa Express customer score continues to strengthen International growth early stages — 126 machines in Poland — 2machines in UAE Good corporate wholesale and franchise performance v eeeeoe COSTA SEXPRESS WHITBREAD
Slide 47: Costa EMEI
Costa EMEI System sales up 10.2% Good progress in the international franchise business Poland weak consumer economy, VAT rise impacting like for like sales growth Trialling equity stores in Paris — First equity store opened 16 October 2013 WHITBREAD
Slide 48: China - investing in growth
COSTA COFFEE China - investing in growth COSTA * Like for like sales growth 5.5% benefiting from good store margins * Good profit progression in like for like stores * Investing in new store openings (c.80 in 2013/14), infrastructure and people WHITBREAD
Slide 49: Costa Investor Day
49 COSTA COFFEE Investor Day We will be holding an investor day for Costa on 12 December 2013 y= December COSTA WHITBREAD
Slide 50: Delivering on targets 2017/18
Delivering on targets 2017/18 Coed {OCETHER... 800 team members enrolled on apprenticeship programme Committed to raise £7.5m for new Premier Inn Clinical building at Great Ormond Street Hospital (over £1.5m raised to date) The child first and always Over £0.9m raised for Costa Foundation Whitbread
Slide 51: Outlook
Outlook WHITBREAD * Good performance in H1 - on track to deliver our full year business plan ¢ Right trajectory to deliver 2016 and 2018 growth milestones * Strong organic growth, good return on capital and cash flow should continue to create substantial shareholder value WHITBREAD
Slide 52: Summary
WHITBREAD Summary WHITBREAD * Good H1 performance - double digit growth Total sales up 12.4% Underlying PBT up 12.6% to £216.1m EPS underlying (diluted) up 12.2% to 90.92p Operating cash flow of £307.7m, funding organic growth Interim dividend up 11.8% ROC up 0.7% pts to 14.4% * Growth engines conti
Slide 53: Whitbread
WHITBREAD 53
Slide 54: Appendix
ment Mas Th aN] )
Slide 55: Interest charge
_ charge WHITBREAD Underlying interest charge (9.6) (12.6) Pension finance cost - IAS 19 (12.3) (13.8) Interest charge (21.9) (26.4) Exceptional interest (0.5) 10.1 Total interest cost (22.4) (16.3) ¢ Underlying interest cost is impacted by a reduction in the average net debt to £411m (2012/13 £499.
Slide 56: Driving revpar performance
PREMIER INN Driving revpar performance — -* © Py © “eee -@ © d @ Premier Inn Total Estate. Economy Midscale Total Estate (includes % A 56 Premier Inn). STR Data as reported at the quarter end dates UK Midscale and economy market [fj Premier Inn [_] WHITBREAD
Slide 57: Structural growth opportunity - c.75,000 rooms by 2018
PREMIER INN Structural growth opportunity - c.75,000 rooms by 2018 2 Premier inn c.75,000 11% 57. Budget branded oO Other branded oO Independents B WHITBREAD
Slide 58: Standard Information
Standard Information General Achieved Room Rate (ARR) Income before fixed costs (IBEC) Income after fixed costs (IAFC) Joint Sites Like for like sales Occupancy Return on Capital (ROC) Solus Sites Revpar/yield WHITBREAD Hotel accommodation income divided by the number of rooms occupied by guests Hot
Slide 59: Standard Information
Standard Information WHITBREAD Hotels & Restaurants fm £m £m 104.2 93.6 m9 Net Assets * £m 1,075.2 1,048.6 1,050.8 Return on Capital * % 17.0% 15.3% 16.4% Joint * Sales £m 463.3 442.3 844.2 IBFC £m 206.4 198.2 360.1 AFC fm 149.8 145.9 252.4 Net Assets * £m 1,459.8 1,438.2 1,428.0 Return on Capital *
Slide 60: Standard Information
Standard Information WHITBREAD Hotels & Restaurants cont. Half Year Half Ye Full Year 2013/14 2012/13 2012/13 Number of Rooms Solus : - Managed 28,992 26,165 27,936 - Associate 282 282 282 : Franchise & Management Contract 449 449 449. Total Solus 29,723 26,896 28,667 Joint Sites 23,316 22,124 23,00
Slide 61: Standard Information - Costa
Standard Information WHITBREAD Costa Hi Half Year 2013/14 2012/13 System Sales - Total £m 569.2 476.5 1,004.7 Sales - Total £m 378.8 313.4 672.4 EBITDA from Operations £m 66.2 54.8 129.2 Underlying EBIT from Operations ' £m 43.5 36.1 90.1 Total Net Assets * £m 275.3 249.8 259.9 Cash Capital Expendit
Slide 62: Interim Results 2013
Interim Results 2013 WHITBREAD “Making everyday experiences special” 22 October 2013