Slide 1: Annual Results 2012/13
AniitiamR¢sults 2012/8 30 April 2013 WHITBREAD
Slide 2: Annual Results 2012/13
Annual Results 2012/13 30 April 2013 WHITBREAD yee
Slide 3: Anthony Habgood, Chairman
Anthony Habgood Chairman WHITBREAD
Slide 4: Andy Harrison, Chief Executive
Andy Harrison Chief Executive WHITBREAD
Slide 5: Summary
Summary WHITBREAD ¢ Another year of double digit growth — Sales up 14.2% to £2.0bn — Underlying PBT up 11.4% to £356.5m — Underlying basic EPS up 12.0% to 150.45p — Proposed full year DPS up 12% to 57.40p * Strong like for like growth of 3.7% supported by record guest scores and employee engagement
Slide 6: Nicholas Cadbury, Group Finance Director
Nicholas Cadbury Group Finance Director WHITBREAD
Slide 7: Summary
Summary £m 2012/13 2011/12 Underlying profit before tax £356.5m £320.1m EPS underlying (basic) 150.45p 134.35p Proposed final dividend 37.90p 33./0p Interim dividend 19.50p 17.50p Total dividend for year 57.40p 51.25p Change 11.4% 12.0% 12.3% 11.4% 12.0% WHITBREAD
Slide 8: Summary - Underlying profit before tax
Summary - Underlying profit before tax £m 2012/13 2011/12 Revenue 2,030.0 1,778.0 Profit from operations 403.2 365.3 Central costs’ (23.1) (19.9) Interest (23.6) (25.3) Underlying profit before tax 356.5 320.1 * Increase in central costs principally due to increased share based payments resulting fr
Slide 9: Summary - Underlying Profit & Loss
Summary - Underlying Profit & Loss £m Underlying profit before tax Pension finance cost - IAS 19 Amortisation of acquired intangible Profit before tax, pre exceptionals Taxation Net profit, pre exceptionals Exceptionals Profit for the year 2012/13 356.5 (18.0) (2.8) 335.7 (86.5) 249.2 52.1 s0ies 201
Slide 10: Good revenue growth
Good revenue growth Hotels & Restaurants (£m) Costa (£m) —_® an +13.1% _Q +4.5% 2011/12 2012/13 2011/12 2012/13 MRestaurants ™! Premier Inn BUK @ International 10 WHITBREAD
Slide 11: Strong like for like sales
—————— SE a Strong like for like sales ¢ Premier Inn « Restaurants * Costa — Revpar growth of 1.7% with — Spend per head 0.4% and — Strong transaction growth led by occupancy up 1.3%pts at 77.3% number of covers up 3.0% innovation in food and beverage — Outperformed the market, — Q4 sales were const
Slide 12: On target for growth milestones
On target for growth milestones 12 Premier Inn - UK & Ireland Premier Inn - International Total Premier Inn (rooms) Restaurants Costa - UK Costa - International Total Costa (stores) Costa Express/Coffee Nation (units) 1 March 2012 47,429 1,296 48,725 387 1,392 811 2,203 suey Opened 4,272 4,272 10 19
Slide 13: Profit by business segment
Profit by business segment £m 2012/13 2011/12 Change Hotels & Restaurants - UK & Ireland 31932 300.2 6.3% Hotels & Restaurants - International (6.1) (4.6) (32.6)% Total Hotels & Restaurants Sek | 295.6 5.9% Costa - UK 87.7 65.1 34.7% Costa - International 2.4 4.6 (47.8)% Total Costa 90.1 69.7 29.3%
Slide 14: £52.1m profit from exceptional items
£52.1m profit from exceptional items £m 2012/13 2011/12 Net profit/loss on sale of property, investments and businesses Lica ia Tax refund relating to prior years 13<5 Interest on tax refund 10.8 Impairment of property, plant and equipment (5.4) (11.3) Tax on exceptional items (183) (2.5) Interest o
Slide 15: Good operational cash generation
Good operational cash generation £m 51.0 134.0 526.0 a | 209.6 | 77.8 | ee -—~~poy_ 46.7 m7 os = 2, 328 S32 : . ; ; : —— Cashflow from Proceeds on Freehold Capital Dividends Interest Tax Pensions Other Decrease in operations disposal of investment expenditure net debt property * Net debt reduced by
Slide 16: Capital expenditure driving organic growth and product improvement
Capital expenditure driving organic growth and product improvement Capex by business Maintenance vs expansionary (£m) t saa ) (£m) Maintenance Expansionary 16 MCosta.- MHotels & Restaurants ™ Group WHITBREAD
Slide 17: Hotels & Restaurants freehold/leasehold mix
Hotels & Restaurants freehold/ leasehold mix Leasehold Freehold & long Committed pipeline <35 years leasehold 9,965 rooms 749 74% 69% % i 2011/12 2012/13 2011/12 2012/13 5 years Fre g easehold Leasehold * <3 Post completion of the pipeline 62% of rooms will be freehold & long leasehold, 38% will be
Slide 18: Improved return on capital to 14.0%
Improved return on capital to 14.0% Hotels & Restaurants Costa Group 12.4% 12.4% 2011/12 2012/13 Return on capital (ROIC) is the return on invested capital which is calculated by dividing the underlying 18 profit before interest and tax for the year by net assets at the balance sheet date adding bac
Slide 19: Strong balance sheet and broad source of funds
Strong balance sheet and broad source of funds * Maintaining investment grade with net debt to EBITDA (pension and lease adjusted) < 3.5 times ¢ Well funded with diverse source of funding and spread of maturity dates — Funds from operations — Leasehold agreements, 6 to 25 years — Sale and lease back
Slide 20: Pension deficit reduced by £57m
Pension deficit reduced by £57m and triennial review maintained cash contributions * IAS 19 pension deficit reduced by £57m to £542m at year end, principally due to: — Increased investment performance — Company contribution of £45.7m — Only partially offset by higher liability inflation assumptions
Slide 21: Other financial items: 2013/14
a es a Other financial items: 2013/14 * Cash capital expenditure forecast of approximately £350m for 2013/14 (possible impact of large FH opportunities) * Taxation rate expected to be c.24.8%
Slide 22: Summary
——————————————————— Summary * Delivered 11.4% profit growth * Good cashflow of £526m — Funding growth from internal resources — Supporting a 12% dividend growth * Focussed on maintaining good return on capital ¢ Strong balance sheet — Ample facilities — Freehold estate retaining development value an
Slide 23: Andy Harrison, Chief Executive
Andy Harrison Chief Executive WHITBREAD
Slide 24: Agenda
Agenda WHITBREAD G («making everyday experiences special” (2 (Whitbread Hotels & Restaurants a (Costa (4 (Good Together (Ss (Current trading 6 (Summary 24
Slide 25: Making everyday experiences special
“Making everyday experiences special” (A (a Sch Customer ; Winning Teams Heartbeat Profitable Growth ¢ 22 million Whitbread customers every month ¢ Served by 40,000 employees ¢ Through 2,500 UK outlets * Every year we sell — 14 million Premier Inn rooms — 46 million Restaurant meals — 320 million cu
Slide 26: Stronger employee engagement
Stronger employee engagement f fA Winning T meer Profitable Growth inning Teams Heartbeat rofitable row a _ ry ¢ Record employee engagement ¢ £4.3m invested in training and development oe Engagement 73.2% 77.5% Sa = BRITAIN'S Response rate 87% 95% BEST BIG lop COMPANIES TO WORK FOR EMPLOYERS ¢ 3,000
Slide 27: Driving even better customer experience
Driving even better customer experience Customer Winning Teams Heartbeat Profitable Growth Premier Inn 5.3%pts Net Promoter Score Source: Guest Recommend Survey — ORC International Full Year — 2012/13 W H IT B R EA D ae Base size — Premier Inn 861,084, Restaurants 381,285 & Costa 433,444
Slide 28: Sustainable shareholder value creation
Sustainable shareholder value creation fA Winning T emer Profitable G th inning Teams Heartbeat rofitable Grow 1,599.6 150:5 1,334.6 1,435.0 ane 134.4 13% Sales (£m) : 90.8 97.0 Underlying basic EPS (p) 51.3 57.4 36.6 38.0 tad & DPS (p) 2008/09 2009/10 2010/11 2011/12 2012/13 Return on 9 capital 14.
Slide 29: Milestones - on track for 2016
Milestones - on track for 2016 aaa ~— UK rooms* 43,374 51,671 65,000 System sales** £0.65bn £1.0bn £1.3bn
Slide 30: New growth milestones for 2018
New growth milestones for 2018 _ — UK rooms* 51,671 65,000 c.75,000 System sales** £1.0bn £1.3bn c.£2.0bn
Slide 31: Good full year results - Hotels & Restaurants
Good full year results Whitbread Hotels & Restaurants ¢ Premier Inn continues to outperform and win market share — Total sales up 13.1% — New UK rooms: 4,242 — Like for like sales’ up 3.1% — Like for like revpar’ up 1.7% + ARR’ up 0.1% * Occupancy’ up 1.3%pts ¢ Restaurants improved performance — Lik
Slide 32: Premier Inn
2 Premier Inn
Slide 33: Key levers for outperformance
Key levers for outperformance Winning customer le propositions XN Driving outperformance Network strength 33 Premier Inn Dynamic pricing WHITBREAD
Slide 34: Record guest scores
Record guest scores * 69% of guests scored 9 or 10 out of 10 * TripAdvisor score 4.3 out of 5.0 Po Sp pl ol ¢ Investment of £75m to maintain : : y | 69% consistent product quality aes YouGov value for money index 309 — wa ree 23% | 91% — ————— 0% 2011 2012 2013 = Premier inn “="Travelodge ~—~Holiday
Slide 35: Driving revpar growth
Driving revpar growth CAGR ° a * Dynamic pricing to Sm grow revpar and (1.0%) occupancy * Current revpar gap delivers good return Occupancy on capital * Grow market share . 2010/11 ia 2011/12 2012/13 and shareholder Revpar &> value through o> GD SD delivery of 2018 Revpar: Ml UK midscale & economy h
Slide 36: Dynamic pricing continuing opportunity
Dynamic pricing continuing opportunity Hotels” by occupancy band 36 * Like for like hotels WH ITBREAD * Growing revpar through continuing occupancy growth towards 80%+ 186 * Better systems and ee i accumulated learning 116 122 F116 * Flex/saver price 88 optimisation * Long lead/short lead price opti
Slide 37: Digital now 83% of transactions
Digital now 83% of transactions Email TV PPC SEO ca) rk © © 29% of visits from mobile devices up from 14% in 2011/12 Top 50° UK online retailer 61 million visits +21% Optimisation programme to continually improve the experience £670m online sales (up 18% YoY) 37 * Hitwise UK data Feb 2013 WH ITBR EA
Slide 38: Structural growth opportunity - 65,000 rooms by 2016
Structural growth opportunity - 65,000 rooms by 2016 Total 678,000 679,000 682,000 690,000 UK hotel market rooms rooms rooms rooms 2007 2010 2012 2016 Rooms 36,000 43,000 51,000 65,000 | share % | 5% 6% 7% 9% Premier Inn 38 M\ndependents ™Otherbranded Budget branded WH ITBREAD
Slide 39: On track for 2016 milestone
On track for 2016 milestone >) Premier Inn Premier Inn pipeline (rooms) 65,000 rooms 4.000 c.10,000 Kings Cross Blackfriars 51,671 Existing estate | Committed Uncommitted 2016 milestones a pipeline 9 WHITBREAD
Slide 40: Structural growth opportunity - c.75,000 rooms by 2018
Structural growth opportunity - c.75,000 rooms by 2018 Total gy 978,000 679,000 682,000 690,000 700,000 ne rooms rooms rooms rooms rooms 2007 2010 "3012 Rooms 36,000 43,000 51,000 | share % | 5% 6% 7% 40 independents ™Otherbranded Budget branded WH ITBREAD
Slide 41: Source of growth 2013-2018
Source of growth 2013-2018 ore on (c.23,000 rooms)
Slide 42: Continuing importance of joint sites
Continuing importance of joint sites 51,671 rooms Solus City Centre c.140 ie: 37% Joint site c.60 () 55% 63% 42 HB Solus [Joint sites (including extensions)
Slide 43: London opportunity
London opportunity =. 2) Premier Inn 8,250 c.13,500 12,038 5,250 3,948 Rooms 8,066 3,500 2012/13 Total including 2016 milestone* 2018 milestone* committed pipeline Premier Inn share Central London * Central London includes the City, West End, Chelsea & W H IT B R EA D 43 ™ Greater London excl. Centr
Slide 44: Success in London
Success in London ¢ EBITDA Leasehold Central London is nearly 2x regions =| “ WHITBREAD
Slide 45: Exciting growth opportunity
Exciting growth opportunity ¢ Structural growth of value brands and decline of independents * Premier Inn is leading’ UK brand — Trusted, guaranteed product — Largest network, best customer choice — Strongest brand, website and national selling ¢ Location opportunity — New catchment areas — Especial
Slide 46: Premier Inn International - continuing progress
Premier Inn International - continuing progress ¢ Building in selected international markets, using ‘asset light’ model * Hotels profitable in the Middle East and making good progress in India Like for like occupancy 65% 77% = - Up 12%pts Like for like revpar £27 £33 oF Up 20% * Growing development
Slide 47: Premier Inn International 2018 - a step on the way
Premier Inn International 2018 - a step on the way * Open and committed pipeline rr ee ee Hotels 18 c.50 Rooms 3,056 c.10,000 Committed capital c.£100m c.£200m * Double digit ROCE’ - for mature hotels Dubai Silicon Oasis WHITBREAD 47 “Before International central overhead
Slide 48: Slide 48
Slide 49: Team engagement
Team engagement up 4%pts to 77% Guest Net Recommend Up 3.7% 6,000 people trained through Academies Customer focus incentive scheme Like for like sales 49 Up 2.3%
Slide 50: Driving sales
Driving sales ¢ Like for like growth of 2.3%: — Driven by growth in covers and SPH — Breakfast sales (+16.6% year on year) — Coffee sales (+16.1% year on year) — Buffet Place rollout * Covers growth: — H2 impacted by adverse weather ¢ Customer offers — Over 1.2 million unique email addresses ak ea)
Slide 51: Managing margins
Managing margins Inflation 2-3% eos * Improved operating margins «Investment in restaurant leadership team 51 Mitigating inflation WHITBREAD
Slide 52: WHITBREAD
WHITBREAD
Slide 53: Another strong year - Costa
Another strong year COSTA Strong underlying profit growth « System sales up 22.6% to (£m) £1.0bn’ Qa ¢ Strong UK like for like growth of 6.8% ¢ Underlying profit up 29.3% to £90.1m ¢ Return on capital up 2.3%pts to 34.7% 53° Pre IFRIC WHITBREAD
Slide 54: Strong performance across the board
Strong performance across COSTA the board UK Retail Costa Enterprises Costa EME! Costa Asia Equity stores Costa Express Europe, China and Individual franchise Corporate Middle East South East Asia Partnerships and India és ‘ a (- - ~ System sales System sales £235.5m System sales System sales £548.9
Slide 55: Growing strong brands
Growing strong brands COSTA 40% 35% 30% 25% 20% 15% 10% Preference: Costa is the UK’s favourite and the gap is widening 34% 31% 22% 0% Ly 11% 12% 2008 2009 2010 2011 2012 = Costa —— Starbucks == Nero 55 Source: You Gov Annual Study, 2000 Nat Rep respondents: “If these three brands were next to each
Slide 56: Great people, great product
Great people, great product COSTA Team Product/innovation Engagement up 5.2% to 83.3% Ice Cold Costa Customer focused incentive scheme Cortado Core Skills Training Academies Loyalty Card Drive-thrus: 8 > _— q’.. yr rs Heartbeat Stores Metros: 25 Making great events Christmas 67% of estate is Summer
Slide 57: Customer convenience creates growth opportunity
Customer convenience COSTA creates growth opportunity Like for like growth (all + e.g. Chelmsford 7 Express £11k/week to £45k... to £62.4k machines 2nd Tesco store Like for like growth — (Full ~ 2012) un ae (all stores) Retail Park (Full year 2011) New Rail store (Full year 2009) *y || Tesco (Full y
Slide 58: Costa Enterprises - great progress
Costa Enterprises - great COSTA progress ° Costa Express: Net Promoter score * (%) — Total of 2,560 machines - ahead of plan — 1,368 new machines (c.700 from Shell) ¢ Strong growth in corporate partnerships * Costa at home - encouraging start Costa retail 58 Source: YouGov WHITBREAD
Slide 59: Costa EMEI
Costa EMEI « System sales up 13.2% underpinned by like for like sales of 4.8% across the regions * Middle East continues to perform well with total system sales growth of 17.5% ¢ Poland weak consumer economy, VAT rise in April 2013 * Paris - 6 pilot stores 59 WHITBREAD
Slide 60: China - a growing opportunity and rapid expansion
China - a growing opportunity COETA and rapid expansion Haerbin @ Lt Shenyang @ seiiing® ~@ Datian ©@ Tianjin Shijiazhuang @ "2 Yancheng Suqian ~ T@juaiAn Nanjing Changzhou Hefei @ @® Shanghai Wuhu @Wuxi KS “Se 7 Ningbo Wuhan @ ere © iw s Wenzhou Xian @ Chengdu @ Chonggin: 7 > gains @ Changsha @ , a
Slide 61: On track to achieve 2016 growth milestone
On track to achieve COSTA 2016 growth milestone System sales (£m) /* | read International system sales share 6 WHITBREAD
Slide 62: Doubling system sales by 2018
Doubling system sales by 2018 COGTA DOUBLE International t 22%) f.33%) system sales share @ WHITBREAD
Slide 63: Shape of growth
a ee Shape of growth COSTA * May 2011 Investor Day guidance holds * Milestones 2016 — System sales £1.3bn — Stores 3,500 (UK: 1,900; International: 1,600) —PBIT +£100 million * Next update - Investor Day 12 December 2013
Slide 64: Targets 2016/17
Targets 2016/17 Teams and community Customer wellbeing 64 Job Creation * 10,000 new UK jobs Charitable Activity + £5m charitable fund raising by WHR * Costa Foundation to educate 50,000 children and build 50+ schools in coffee growing communities Qualifications and Training + WHR - 6,000 qualificati
Slide 65: Activity in the year
Activity in the year Teams and community Coed 16CE1HER... 3,000 net new UK jobs created 415 new apprenticeships ‘000s of training, development and skills programmes £1.5m raised for Costa Foundation (11 new schools) c.£800k raised for GOSH Customer wellbeing Sustainable sourcing policy re-launched t
Slide 66: Current Trading
Current Trading WHITBREAD ¢ Early trading in new financial year — Group on plan — Premier Inn continuing its positive momentum — Cold weather benefits Costa, impacts Restaurants — Market remains challenging ¢ Continuing strong organic expansion in 2013/14 — 4,000 new Premier Inn UK rooms — 330 Costa
Slide 67: Summary
Summary WHITBREAD ¢ Another year of double digit growth — Sales up 14%, EPS up 12%, full year DPS up 12% — Record guest scores and employee engagement — Strong cashflow generation and balance sheet ¢ Strong organic growth, with new 2018 milestones — Structural UK Premier Inn opportunity — Costa goes
Slide 68: Q&As
Slide 69: Investor Days
Investor Days WHITBREAD * We will be holding an investor day for Hotels & Restaurants on 3 July 2013 * We will be holding an investor day for Costa on 12 December 2013
Slide 70: Appendix
Appendix WHITBREAD
Slide 71: Standard Information
Standard Information General Achieved Room Rate (ARR) Income before fixed costs (IBFC) Income after fixed costs (IAFC) Joint Sites Like for like sales Occupancy ROCE Solus Sites Revpar/yield EAT SLEEP & DRINK WHITBREAD Hotel accommodation income divided by the number of rooms occupied by guests Hote
Slide 72: Standard Information
Standard Information Hotels & Restaurants Solus * Sales IBFC IAFC? Net Assets * Roic * Joint * Sales IBFC IAFC Net Assets * Roic * TOTAL - Hotels & Restaurants Sales - Premier Inn Sales - Restaurants Sales - Total IBF IAF EBITDA from Operations Underlying EBIT from Operations Total Net Assets ? Roic
Slide 73: Standard Information
Standard Information EAT SLEEP & DRINK Hotels & Restaurants cont. © WHITBREAD Full Year Full Year 2012/13 2011/12 Number of Rooms Solus : - Managed 27,936 24,981 - Associate 282 282 - Franchise & Management Contract 449 449 Total Solus 28,667 25,712 Joint Sites 23,004 21,717 Total UK & Ireland 51,67
Slide 74: Standard Information
Standard Information Costa System Sales - Total Sales - Total EBITDA from Operations Underlying EBIT from Operations * Total Net Assets 7 Cash Capital Expenditure - Total * Key operating Measures Like for Like Sales Growth* Underlying Operating Margin ROIC * Outlet details - Equity - UK Franchise To
Slide 75: Revpar outperformance
Revpar outperformance 2 Premier Inn Revpar: [i Midscale & economy vs Ml Premier Inn Greater London hotel market UK regions hotel market 2010/11 2011/12 2012/13 2010/11 2011/12 2012/13 Revpar gap £11.05 £9.63 £15.51 £4.71 £5.04 £6.52 71
Slide 76: Continuing to outperform
Continuing to outperform 2 Premier Inn Revpar premium (ratio) is a better basis for quarterly performance 130.0% 120.0% 110.0% 100.0% 90.0% 80.0% 70.0% 60.0% 111.1% 1 rl 110.0% UK market 110.9% i T T 116.9% 117.1% 117.3% 118.0% eaecee T T T T r 1 Qi 2011/12 Q2 2011/12 Q3 2011/12 Q4 2011/12 Q1 2012/1
Slide 77: Interest charge
Interest charge 73 £m Underlying interest charge Pension finance cost - IAS 19 Interest charge, pre exceptional Exceptional interest Total interest cost Average debt in 2012/13 £490.7m 2012/13 ( 23.6) (18.0) (41.6) 9.7 (31.9) 2011/12 £441.3m 2011/12 (25.3) (14.0) (39.3) (0.8) (40.1) WHITBREAD