Pub Restaurants •! Trading Results of the Disposed Estate, for 21 Weeks Through to July 28Th 2006, Are Treated As Continuing Operations

Anthony Habgood Chairman Christopher Rogers Finance Director 4

2007/08 2006/07 % change PBT from continuing £210.3m £166.5m 26.3% operations, pre exceptionals

EPS pre exceptionals 85.9p 65.8p 30.5%

Proposed final dividend 26.90p 22.15p 21.4%

Interim dividend 9.10p 8.10p 12.3%

Total dividend for year 36.00p 30.25p 19.0%

4 5

£m 2007/08 2006/07 % change Revenue from 1,216.7 1,173.5 3.7% continuing operations

Profit from operations 254.3 226.3 12.4%

Central costs (24.4) (21.6) (13.0)%

Interest (19.6) (38.2) 48.7%

PBT from continuing 210.3 166.5 26.3% operations, pre exceptionals

5 6

£m 2007/08 2006/07 % change PBT from continuing 210.3 166.5 26.3% operations, pre exceptionals Taxation (67.2) (55.8) Net profit from continuing 143.1 110.7 29.3% operations Discontinued operations 19.6 40.4 Total profit, pre exceptionals 162.7 151.1 7.7% Exceptionals 382.1 130.4 Profit for the year 544.8 281.5 93.5%

6 7

•! David Lloyd Leisure •! Profit disclosed within discontinued operations for both 2007/08 and 2006/07

•! T.G.I.Friday’s •! Profit from 2006/07 reclassified within discontinued operations

•! Pub Restaurants •! Trading results of the disposed estate, for 21 weeks through to July 28th 2006, are treated as continuing operations

7 8

£m 2007/08 2006/07 % change Premier Inn 527.8 458.5 15.1% Pub Restaurants: retained 446.1 436.4 2.2% Costa 216.3 175.1 23.5%

Less: inter-segment (2.4) (2.8) Sales from continuing Whitbread 1,187.8 1,067.2 11.3% Pub Restaurants: disposed* - 82.5 Other 28.9 23.8 21.4%

Revenue from continuing 1,216.7 1,173.5 3.7% operations

* Part year impact in 2006/07 8 9

% 2007/08 2006/07 Premier Inn 10.4 8.2 Pub Restaurants 0.8 0.9 Costa 6.5 6.6

Total 5.7 4.7

9 10

£m 2007/08 2006/07 % change Premier Inn – UK 179.4 156.3 14.8% Premier Inn – overseas (1.4) (0.1) Total Premier Inn 178.0 156.2 14.0% Pub Restaurants 55.5 52.3 6.1% Costa - UK 22.4 18.5 21.1% Costa – overseas (1.6) (0.7) Total Costa 20.8 17.8 16.9%

Profits from operations 254.3 226.3 12.4%

10 11

£m 2007/08 2006/07 % change Revenue from continuing 1,216.7 1,173.5 3.7% operations Profit from operations 254.3 226.3 12.4%

Central costs (24.4) (21.6) (13.0)%

Interest (19.6) (38.2) 48.7%

PBT from continuing 210.3 166.5 26.3% operations, pre exceptionals

11 12

£m 2007/08 2006/07 Interest on borrowings (31.9) (40.9) Interest on deposits 4.1 1.3 Pension interest credit/charge 7.0 (0.5) Other 1.2 1.9 Net interest charge (19.6) (38.2)

12 13

£m 2007/08 Exceptional credits Business disposals 440.8 Pension credit 10.0 Exceptional costs Reorganisation costs (21.2) Premier Inn rebranding (7.0) Debenture redemption (14.2) Bond costs (9.4) Loss on property disposals and reversions (27.2) Tax and interest 10.3 Total net exceptional profit 382.1

13 14

£m 2007/08 2006/07 EBITDA 322 332 Working capital movements (46) 66 Cashflow from operations 276 398 Cash capital expenditure (285) (243) Cashflow after investment (9) 155 Interest, tax and ordinary dividends (116) (118) Disposals/buybacks/other 598 35 Decrease in net debt 473 72

14 15

£m 2007/08 2006/07 Premier Inn 147 120 Pub Restaurants 79 58 Costa 34 23 Corporate 10 5 Discontinued 15 37 Total 285 243

15 16

•! Cost savings communicated in February 2008

•! £25m annual savings; majority falling in 2009/10

•! £35m cost of achievement; £21.2m taken in 2007/08 •! Future segmental disclosure: •! Hotels and Restaurants •! Costa •! Pub Restaurants sales will be separately disclosed

16 17

•! Year end debt down from £898m to £425m

•! A new £455m 5-year revolving credit facility has been agreed to replace the £280m facility which expired in March. Total facilities now stand at £1,155m

•! On market buyback reached £338m by 28 February 2008; 175.7m shares remain in issue*

•! Leverage guidance for current year c.3.5x on a pension and lease adjusted basis

* 193.8m issued and 18.1m in treasury 17 18

•! Pension deficit decreases from £196m (£137m net of tax) to £33m (£24m net of tax) benefiting from £50m cash injections during the year

•! £90m of further payments due to pension fund •! £50m 2008/09 and £20m in 2009/10 and 2010/11, •! Subject to triennial valuation to be completed 2008

•! Effective tax rate on profit from continuing operations of 32.0% and anticipated to fall to 30.0%-31.0% in 2008/09

18 19

•! International start up costs of £3m in 2007/08 and expected to increase to c.£5m in 2008/09

•! Pension interest credit in 2008/09 to fall from £7.0m to £5.5m

•! Rent to increase from £60m to over £70m

19 20

•! Sales from Continuing Whitbread up 11.3%

•! Like-for-like sales up by 5.7%

•! PBT from continuing operations, pre-exceptionals up 26.3% to £210.3m

•! Diluted total pre-exceptional EPS up 30.5% to 85.9p

•! Final dividend up 21.4% to 26.90p giving a full year dividend of 36.00p – up 19.0%

20 Alan Parker Chief Executive 22

•! Premier Inn leads the hotel market

•! Pub Restaurants delivered significant improvements in profit per unit

•! Costa expansion accelerated in UK and overseas

22 23

•! Simplified business and management structure

•! Sold David Lloyd Leisure & T.G.I. Friday’s – £995m proceeds

•! Combined divisional management of Hotels and Pub Restaurants

•! Programme of internal re-organisation to improve operating efficiency

•! Outsourced Whitbread Food Logistics

•! Total combined savings – £25m per annum

23 24

•! Premier Inn – excellent position in the marketplace as hotel guests look for better value

•! Pub Restaurants – remodelled estate with distinct brand segmentation

•! Costa - strong consumer brand in an established and growing sector

•! Well maintained Whitbread properties – c.£300m maintenance capex over last three years

24 25

Costa to double to Premier Inn 2,000 stores up 50% to 55,000 rooms

25 26

26 27

£m 2007/08 2006/07 % change Revenue 527.8 458.5 15.1% Profit 178.0 156.2 14.0%

Like-for-like sales 10.4% 8.2%

•! Selling more rooms than ever before: •! Total occupancy maintained at 78.3% with 10% more rooms •! Like-for-like occupancy steady at 79.2%

•! Yield up 6.6% to £40.17

•! Profit per room increase of 5.9% to £5,416

27 28

Year-on-year Number of rooms, top three hotel brands growth

Premier Inn Premier+3,400 Inn 36,006

Holiday Inn Holiday+1,036 Inn 29,119 Holiday Inn Express

Travelodge Travelodge+2,626 21,445

Source: BDRC British Hotel Guest Survey Feb 2008 28 29

•! 34 hotels added with 3,437 rooms – up 10%

•! 1,786 rooms in new hotels

•! 1,651 rooms added to existing properties

29 30

Operating profit Profit CAGR of 18% ROCE £m 200 Acquisition of Premier Lodge 15%

175

150 10% 125

100

75 5% 50

0 0% 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

ROCE Operating profit

30 31

Rooms Rooms CAGR 14.2% RevPar £ 40,000 Hotel recession 40

30,000 30

20,000 20

10,000 10

0 0 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Rooms RevPar

31 32

•! Changed customer perception of Premier Inn over a five year period

32 33

2002 2007 Travel Inn Premier Travel Inn variance from Travelodge variance from Travelodge Positive attributes % % Helpful, friendly staff -4 +5 Quality F&B +1 +8 Comfortable bedrooms +1 +7 Bedrooms are good for working in -2 +7

Negative attributes

Provide rather basic accommodation +10 -25 Tired and dated 0 -8

Source: BDRC Hotel Guest Surveys 33 34

•! Successful re-brand launched in October

•! Cost £13m of which £7m was expensed in 2007/08

•! Supported by multi-media TV and outdoor marketing campaign

•! Website searches up 173%

34 35

Guest survey responses

•! 85% will recommend Premier Inn •! 91% intend to revisit

Key drivers ofFirst performance stay Very satisfied Value for money 2-5 79% Hotel cleanliness 93% 6-10 Friendliness and 91% helpfulness of staff 11+

Source: Guests Recommend Survey 2007/08 with 425,588 participants 35 36

Total hotel market Branded budget sector by Existing Supply as a Proportion of Total numberBudget Hotel of rooms Stock UK64% 13% 87% France 23% 36% USA 25% T 13%

Premier Inn 5% of total hotel market

Full service Branded budget

Source: TRI Hospitality 2007 36 37

•! Planning assumption •! Total market set to grow 11% over 10 years •! Branded budget hotel sector set to grow 63%

2007 2017

58% 50% 29% 31% 13% 19%

708,000 rooms 787,000 rooms

Branded budget Branded full service Unbranded

Source: TRI Hospitality 2007 37 38

Profile of future demand sources for Premier Inn

Hotel displacement 55% Market growth 25%

Non hotel Created substitution * demand 9% 11%

Source: TRI Hospitality 2007; * Bed and Breakfast, visiting friends and relatives, etc. 38 39

•! Completed region-by-region analysis to pinpoint specific growth locations - city/town/seaside resort

•! 4,000+ rooms to open 2008/09

•! Our competitive edge is: •! Choice of joint or solus model •! Flexible deal structuring •! Strength of Whitbread covenant •! High-performance model drives high value

39 40

•! JV with Emirates in the Middle East •! First hotel opened in April •! Four hotels in committed pipeline •! 50 hotels with 8,000 rooms planned by 2012

•! JV signed with Emaar-MGF in India •! Four hotels in committed pipeline •! 1st hotel to open in 2009 •! 80 hotels with 12,000 rooms planned by 2017

•! Evaluating opportunities in other countries

40 41

41 42

£m 2007/08 2006/07* % change Revenue 446.1 518.9 (14.0%)* Profit 55.5 52.3 6.1% Like-for-like sales 0.8% 0.9%

•! Two years of like-for-like sales growth

•! Retained estate sales up 2.2%

•! Significant improvement in profit per pub restaurant – around 40%

*Figures include 235 disposed sites 42 43

•! Provide the right restaurant experience for the right demographic in the local market

•! Work is underway in two main areas •! Developing the brand propositions •! Driving further operating efficiencies

43 44

Pub Restaurants 144 102 157 Average spend per £13.95 £11.57 £10.21 head * Customer Full table service Choice of service Counter service Proposition: The chargrill Modern pub food in Family friendly – restaurant specialist stylish surroundings great value ‘Two for £9.00’ Developments: All restaurants All restaurants One of the largest UK re-modelled to new re-modelled to brands – to be brand standards brand standards refreshed this year

First new Beefeater Theme of Selected trial and in 6yrs opened in ‘choose your own development of Birmingham space’ “Taybarns” buffet concept * Food and drink excluding VAT 44 45

45 46

2007/08 focus

•! Discounts

•! Controllable expenses

2008/09 focus •! Labour

•! Overheads

46 47

•! Deliver superior results •! Sales and cost synergies on 300 joint sites •! Pub restaurant joint sites operating profit +35% vs standalone •! Sleep, Eat and Drink – a joined-up guest experience •! c.50% of guests had breakfast •! c.47% of guests had dinner •! Consistent quality throughout •! Target to create 33 joint sites next year •! 18 Premier Inn bolt-ons to existing pub restaurants •! 15 new build joint sites

47 48

48 49

£m 2007/08 2006/07 % change Revenue 216.3 175.1 23.5% Profit 20.8 17.8 16.9% Like-for-like sales 6.5% 6.6%

•! Seven years of like-for-like sales growth

•! Profit growth despite continued investment overseas

•! 1,000th store opened in March – estate doubled in 3 years

•! 285 net new stores opened in 2007/08 – up 40%

49 50

250.0 1000 Profits CAGR of 50% 900 Excellent ROCE at 28.7% 200.0 800

700

150.0 600

500

100.0 400

Sales £'m 300

50.0 200 Number of stores 100

0.0 0 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

Sales Number of stores

50 51

Year-on-year Number of stores February 2008 growth

Costa +163Costa 695

Starbucks Starbucks+101 635

Caffé Nero Caffé+44 Nero 336

Source: Costa – Actual year ending February 2008; Starbucks & Nero: websites March 2008 51 52

Brand strength demonstrated by:

•! Good like-for-like sales for all parts of the day

•! Average transaction value £3.65 - up 3.7% •! Food capture is 42.9%

Only 30% of the population have visited Costa

52 53

•! UK opportunities •! Under-representation in major cities and towns •! London •! Retail Parks •! Retail concessions e.g. Tesco •! Roadside locations

•! 300+ stores to open in 2008/09

53 54

•! 122 net new stores opened last year (up 70%) across 20 countries

Store numbers 2007/08 2006/07 Increase Middle East 181 130 39% Central Europe 58 22 164% India 37 18 105% China 21 5 320% Total 297 175 70%

•! International represents 30% of total system store base

54 55

•! Now a focused hotel and restaurant business in resilient value-for-money sectors •! Five-year ambitions for disciplined growth •! Premier Inn to increase by 50% •! Costa to double

•! Strong momentum set to continue