1 TODAY’S AGENDA

INTRODUCTION STEPHEN GOODYEAR

FINANCIAL REVIEW PETER WHITEHEAD

MANAGED HOUSES – YOUNG’S PATRICK DARDIS

MANAGED HOUSES – GERONIMO ED TURNER

TENANCIES STEPHEN GOODYEAR

OUTLOOK AND PROSPECTS STEPHEN GOODYEAR HIGHLIGHTS

• An eventful year – Diamond Jubilee and Olympics – Tempered by decidedly inclement weather • Driving superior performance, whatever the external forces – Revenue increased 8.2% to £193.7m with strong like-for-like managed house growth – Adjusted profit before tax up 13.1% at £24.1m • Proactive estate management – Invested £20.5m, opened five new managed pubs – Sold seven tenanted pubs, where return on capital inadequate • Strong balance sheet – Net debt at £112.6m, 2.8 times EBITDA – Gearing of 33.6% • Progressive dividend policy – 5.0% recommended increase in final dividend; 16 consecutive years of increase

1 PREMIUM STRATEGY DRIVING MANAGED HOUSE REVENUE GROWTH

First half Second half Full year First increase increase increase 7 weeks

Like-for-like +5.7% +3.4% +4.6% 10.6%

Total +12.9% +7.1% +10.0% 14.7%

2 STRATEGY

• Pure play, differentiated pub company – Well invested, premium end of the market, based in London and south east – Proactive estate management • Investment in high returning projects – Acquisition of managed houses, either as packages or individual sites – Investing to exceed customer expectations – Estate of fewer, but better quality, tenanted houses • Driving… – Superior like-for-like performance – Gross margin improvements – Operational efficiency and scale benefits

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STRONG RESULTS

+8.2% +10.6% +13.1% +13.0% +5.0%

Operating Revenue PBT* EPS* Dividend profit*

£193.7m £28.9m £24.1m 37.77p 14.63p

* adjusted to exclude exceptional items

4 STRONG TRACK RECORD

Revenue (£000) Adjusted operating profit (£000) £193,677 +8.2% £28,935 +10.6%

127,539 142,597 178,964 193,677 20,307 21,746 26,162 28,935

2010 2011 2012 2013 2010 2011 2012 2013

Adjusted profit before tax (£000) Total dividend per share (p) (recommended) £24,128 +13.1% 14.63p +5.0%

19,423 20,819 21,333 24,128 13.00 13.26 13.93 14.63

2010 2011 2012 2013 2010 2011 2012 2013

5 LIKE-FOR-LIKE REVENUE

Number Revenue Change of sites £m %

Managed 146 167.8 +4.6

Tenanted 78 11.3 –2.4

Total 224 179.1 +4.1

6 REVENUE BY DIVISION

2010 2013

Young’s Pubs 55.1% Young’s Pubs 71.5% Geronimo 25.4% Young’s Hotels 17.3% Tenancies 11.2% Young’s Hotels 13.5% Tenancies 6.0%

7 LIKE-FOR-LIKE OPERATING PERFORMANCE AT PUB LEVEL

2013 Change 2013 per pub £m % £k Revenue

Young’s Managed 128.8 +5.0 1,082

Geronimo 39.0 +3.1 1,446

Tenanted 11.3 –2.4 145

Total 179.1 +4.1

EBITDA*

Young’s Managed 38.4 +5.2 322

Geronimo 9.3 +6.1 345

Tenanted 5.3 -3.3 68

Total 53.0 +4.4

*Earnings before interest, tax and depreciation and amortisation

8 MARGIN EVOLUTION

2012 operating margin 14.62%

Managed margin +0.39%pts

Tenanted margin –0.15%pts

Change revenue mix –0.28%pts

Reduced corporate cost +0.36%pts

2013 operating margin +0.32%pts 14.94%

9 GROUP RESULTS

2013 2012 Change £m £m %

Managed houses 39.56 35.26 +12.2

Tenanted houses 4.25 5.29 –19.7

Corporate services (14.87) (14.39) -3.3

Operating profit 28.94 26.16 +10.6

Operating margin 14.9% 14.6% +0.3pts

Finance costs (net) (4.81) (4.83) +0.4

Adjusted profit before tax 24.13 21.33 +13.1

10 NEW ACCOUNTING STANDARD - IAS 19 EMPLOYEE BENEFITS (REVISED)

2013 2013 Restated £m £m

Finance costs 5.89 5.89

Finance revenue (0.54) (0.54)

Pension (income)/charge (0.54) 0.36

Finance costs (net) 4.81 5.71

PBET (as currently stated) 24.13 23.23

PBET (excluding pension charge) 23.59 23.59

11 STRONG CASH GENERATION AND INVESTMENT

2013 2012 £m £m

Cash generated from operations 35.1 34.6

Interest and tax (11.3) (10.1)

Dividends (6.9) (6.5)

Disposals (including Wells & Young’s) 9.1 12.1

Capital expenditure (20.5) (25.6)

Decrease in net debt 5.5 4.5

12 CAPITAL INVESTMENT IN PUB ESTATE

Total: £20.4m (2012: £25.3m)

By division By nature of spend

Young’s Managed £12.2m Young’s Hotels £4.3m Investment on existing estate £14.6m

Tenanted £1.0m Geronimo £2.9m Acquisition and development of recent acquisitions £5.8m

13 DEBT STRUCTURE

Longer dated committed facilities £30m long term (March 2023) £50.0m £20m medium term (March 2018)

Medium dated committed facilities £50m RCF (Dec 2015) £100.0m £50m term loan (Dec 2013 to 2015)

Net debt £112.6m

% of debt fixed 88.8%

Interest cover 4.9 times

Net debt/EBITDA 2.8 times

Loan to value 21.6%

14 PUB PORTFOLIO

April April + – Transfers 2012 2013

Young’s Managed 121 4 – – 125

Geronimo 33 – – 1 34

Tenanted 88 – (9) (1) 78

Total 242 4 (9) – 237

Out of the total of 237 pubs, there are 184 freeholds and 13 long leases with peppercorn rents (leases with > 40 years to run, with rents that are < £10K per annum)

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YOUNG’S MANAGED ESTATE

• 125 prime sited pubs and hotels – Revenue up 7.0% underpinned by 5.0% LFL growth – Operating profit up 6.6% (LFL: 5.4%) – Hotels’ RevPAR up 0.5% at £49.26 • Revenue growth supported by – Full year benefit from the Plough (Clapham Junction) and Shaftesbury (Richmond) – Recent additions of the King’s Head (Roehampton), Cutty Sark (Greenwich), Narrow Boat (Islington) and Wheatsheaf (Borough Market) • Central London 11 Thames-side 12 Target excellence City 6 West London 11 – Location, product portfolio, service, Greater London 15 Home Counties 16 ambience and design South London 4 West Country 11 SW London 39

16 WELL INVESTED ESTATE

Pub Development New Pubs/Transfers Hotel Development

Ship (Wandsworth) Narrow Boat (Islington) Foley (Claygate)

Clock House (Peckham Rye) King’s Head (Roehampton) Coach & Horses (Kew)

Albert (Kingston) Cutty Sark (Greenwich) Dukes Head (Wallington)

Grove (Balham) Wheatsheaf (Borough Mkt.) Windmill (Clapham Common)

Marquess of Anglesey (Covent Garden) Shaftesbury (Richmond) Bear Inn (Esher)

Mulberry Bush (Southwark) Bridge Hotel (Greenford)

Morpeth Arms (Westminster)

Thatched House (Hammersmith)

Waterside (Fulham)

Other

£5.8m £6.4m £4.3m

17 REVENUE HIGHLIGHTS

• Drink – Customers continue to trade up – LFL growth across all key wet categories LFL Total Mix • Food – Industry leading LFL growth Drink +3.4% +5.2% 65.6% – Menu content, presentation and service – High quality seasonal British food – Locally sourced and prepared in-house Food +8.9% +11.5% 28.5% – 28.5% (2012: 27.3%) of total revenue • Accommodation Accommodation +5.5% +5.5% 5.2% – Important part of our growth strategy – 397 rooms in total, added 27 in the year Other –1.4% +9.1% 0.7% – Online marketing and booking simplicity – RevPAR – £49.26, up 0.5% on last year Total +5.0% +7.0% 100.0%

18 MARKET LEADING

• Marketing remains creative, targeted and highly effective • Cutting edge of the social media revolution • Innovative events – Butchery, fish and game master classes – Beer and food matching dinners – Private hire and events – Movie nights – Pub quizzes enjoying a strong revival • New identity being introduced, a confident, contemporary brand, which reinforces our premium positioning whilst retaining the famous ram

19 DRINK MIX

Product mix • Absolute LFL growth across categories 10.9% • Beer and cider 57.1% of drink mix – Draught Ale 8.9% growth 10.2% – London craft ales key to growth – Cider grows despite poor summer • Wine 21.8% of drink mix – Sales up 7.0% 21.8% 57.1% – Sparkling up 24.6% – Red wine up 15.7% • Spirits 10.2% of product mix and growing Beer Other Spirits Wine – Sales up 6.5% – “Speakeasy” cocktail bar concepts Beer Wine Spirits Other

2013 57.1% 21.8% 10.2% 10.9%

2012 58.4% 20.8% 9.9% 11.0%

20 ACCOMMODATION – REVPAR

2010 2011 2012 2013

Hotels 16 17 17 18

Rooms 348 370 370 397

Room rate £61.09 £65.82 £71.17 £71.78

Occupancy 63.2% 67.0% 68.6% 68.6%

RevPAR £38.62 £44.11 £48.85 £49.26

21 YOUNG’S - FOLEY

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GERONIMO’S POST ACQUISITION DEVELOPMENT

• 34 well located and invested pubs – 30 London pubs – Three Heathrow concessions Sites acquired in Dec 2010 26 – One in Surrey • Acquisitions – Surprise (Chelsea) Acquisitions 4 – Lion & Unicorn (Kentish Town) – Oyster Shed, (Cannon St. riverside) Transfers from Young’s Managed 1 – Cow (Westfield Stratford City) with Olympic trading beating all the group’s personal bests • Transfers Transfers from tenancy 3 – King’s Arms (Chelsea) from Young’s Managed – Half Moon (the iconic Putney music pub), Total 34* the Chelsea Ram and the Princess of Wales (Clapton) from tenanted operations • Acquired freehold interest of four * of which 19 are freehold of original sites

23 GERONIMO, DEVELOPING THE BRAND

• Imaginative thinking • Personality driven dialogue – Geronimo social media – Central database of loyal “warriors” – Dynamic video messaging • Continually fresh and creative design – Still in-house • Food – The start of every conversation • Strong private events • Retaining individuality – Residing comfortably in the Young’s stable

24 EXPANDING ESTATE

Pub Development New Pubs/Transfers

Phoenix (Westminster) Princess of Wales (Clapton)

Betjeman Arms (St Pancras) Chelsea Ram

Five Tuns (Heathrow) Cow (Stratford)

Coat & Badge (Putney) Calf (Stratford)

Red Barn (Blindley Heath) Oyster Shed (City)

Lord Palmerston (Tufnell Park)

Other

£1.9m £1.0m

25 FINANCIAL HIGHLIGHTS

• Revenues up 19.2% – Driven by six extra sites and LFL growth of 3.1% – Olympic performance at Stratford • Drink LFL Total Mix – Strong absolute growth up 20.9% – LFL sales up 2.4%, more stable after a period of recent rapid growth Drink +2.4% +20.9% 65.8% – Wine critical to brand strength • Food – Absolute growth up 15.3% Food +4.3% +15.3% 33.5% – Solid LFL performance up 4.3% – Restaurant quality at pub prices integral to brand success Other +13.2% +78.8% 0.7% – Great delivery, service and people • Other – Club room hire up 200.0%, driving Total +3.1% +19.2% 100.0% ancillary spend – Life drawing, theatre workshops, floristry, fish filleting and butchering

26 GERONIMO – INNOVATIVE STYLE AT ITS HEART

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TENANTED ESTATE

• Strategy to focus on fewer, better 2012 2013 Total quality pubs capable of growth Beginning of period 97 88 97 – Sold seven sites for £4.3m making an exceptional profit of £0.9m Sold (6) (7) (13) – Transferred the Princess of Wales (Clapton) to Geronimo Transfer to Managed (1) - (1) – Lease expired on two further sites Transfer to Geronimo (2) (1) (3) – Reduced the estate from 97 to 78 over the past two years Lease expiry - (2) (2) – Smaller estate generated 6.0% (2012: 7.6%) of group revenue End of period 88 78 78 • As a result of this restructuring Sales proceeds £4.5m £4.3m £8.8m – Revenue was down 2.4% on a LFL basis and 14.3% to £11.6m in total Profit on disposal £1.3m £0.9m £2.2m – Operating profit down 2.6% on a LFL basis and 19.7% to £4.2m in total

28 TENANTED OPERATING HIGHLIGHTS

• Remain committed to tenanted operation – Emphasis on traditional tenancy model with strong partnership principle – Appointed Andrew Cox to drive attractive and sustainable returns for both our tenants and ourselves – Invested £1.0m last year with a further £1.4m scheduled for this year • Recent transfers of – Marquess Tavern (Islington) – Three Lords (City of London) – Bull’s Head (Barnes) scheduled for July Central London 8 Thames-side 1 City 2 West London 2 • Government’s latest consultation Greater London 14 Home Counties 15 unlikely to have a material impact South London 7 West Country 12 SW London 17

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OUTLOOK AND PROSPECTS

• Managed House sales in the new financial year have been strong – First seven weeks sales were up 14.7% (10.6% on a LFL basis) – For the last 13 weeks, sales were up 3.7% on a LFL basis • Current year will benefit from a full year’s trade from last year’s activity – Cutty Sark and Narrow Boat acquisitions – Foley, King’s Head and Wheatsheaf • Actively looking for other sensibly priced assets – Acquired Bull & Gate (Kentish Town) • Premium offer continues to prove attractive • In a strong position to continue to grow and deliver value to our shareholders

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