1. Whitbread - the leisure business October 2001

2. John Banham Chairman

3. Whitbread - the leisure business

4. David Richardson Finance Director

5. Whitbread Successful demerger of Pubs and Bars Significant progress in future Whitbread

6. Pubs and Bars Completed May 2001 Headline £1,625m Shareholder gain £487m Gain taken directly to reserves Share consolidation

7. Operating profit £m % Marriott/Swallow42.4+ 5.7 Travel Inn31.5+ 9.4 Pub restaurants44.2+ 10.0 High Street restaurants3.1+ 19.2 Sports, health & fitness16.0+ 24.0 future Whitbread divisions137.2+ 10.1 Pubs and Bars30.5 Beer and other drinks11.3 Central Services, etc.(7.0) Operating profit172.0(25.7) 6 months to 1 September 2001 vs 6 months to 2 September 2000

8. Segmental analysis future Whitbread £m £m 6 months to September 2001 6 months to September 2000 Sales EBITDA Profit Assets Sales EBITDA Profit Assets Hotels Marriott/Swallow 20463421,24320058401,165 Travel Inn 883932449803629398 Restaurants Pub restaurants 29958448032825440784 High St restaurants 237123168220103156 Sports, health & fitness802616442662213416 Total – future Whitbread9081971373,1058481801252,919

9. Proforma future Whitbread £m £m % 6 months 6 months Growth to 1 September to 1 September 2001/2 2000/1 Sales9088487.1 Operating profitHotels74697.3 Restaurants474310.5 David Lloyd Leisure161324.0 Central costs(7)(6)(20.6) future Whitbread operating profit1301199.4 Estimated interest(30)(28)(7.5) Estimated profit before tax1009110.0

10. Analysis of Whitbread cash flow £m £m £m Continuing Past Total Whitbread Whitbread Cash flow from operations180.2149.930.3 Dividends received0.20.2– Interest costs etc.(34.9)(33.0)(1.9) Taxation(36.7)(18.0)(18.7) Capital expenditure(162.0)(147.1)(14.9) Acquisitions & disposals462.1462.1 Dividends(113.3)(31.3)(82.0) Net cash inflow/outflow295.6(79.3)374.9 6 months to 1 September 2001

11. Exceptional costs £m Disposal of Pubs and Bars – transaction costs14.4 – restructuring costs5.9 Loss on sale of business3.7 Loss on sale of fixed assets0.1 24.1

12. Deferred tax £m Liability on FRS19 basis at 3 March 2001165.4 Transferred with Pubs and Bars(38.7) 126.7 Deferred taxes provided in half year11.0 Deferred taxes as at 1 September 2001137.7

13. Future capex £m May estimate 1st half 2nd half Full year 2002/3 Marriott75-9050207045-60 Travel Inn70-8025356065-80 Restaurants90-11045307545-65 David Lloyd Leisure50-6025305545-85 Other10-2555105-15 295-365150120270200-300 Continuing businesses estimates

14. Confirmation Standard information for half year – Hotels – Restaurants – Sports, health & fitness

15. Whitbread - the leisure business

16. David Thomas Chief Executive

17. Whitbread’s value agenda Strong first-half trading Potential of new business is clear Good progress on value levers Action now to enhance future value

18. Like-for-like sales growth Marriott+ 2.3% Travel Inn+ 3.0% Brewers Fayre+ 4.2% Beefeater+ 5.0% David Lloyd Leisure+ 20.0% By major brand

19. Like-for-like sales growth Marriott/Swallow+ 1.3% Travel Inn+ 3.0% Pub restaurants+ 4.5% High Street restaurants+ 2.7% Sports, health & fitness+ 18.2% By reporting segment

20. Hotels Business hotels Market outperformance by Revpar UK hotel market Marriott + 3.5 + 5.2 - 4.3 – 9.4 LondonProvinces % Marriott yield premium up from 17% to 20%

21. Hotels The London effect LondonProvincesTotal Occupancy77.4%74.6%75.4%- 1.7% Achieved room rate£118.50£69.87£83.34+ 3.3% Yield£91.74£52.15£62.83+ 1.0% Operating profit– 8.9%+ 36.6%+ 20.6% * Core Marriott *

22. Hotels Marriott Profit per room improvement £k August 2001 March 2001 +6.3%

23. Hotels Swallow proves its value 10 conversions (1,469 rooms) Occupancy + 1.3% Achieved room rate+ 8.4% Yield+ 10.4% First tranche

24. Travel Inn Like-for-like sales+ 3.0% Like-for-like occupancy86.0% Rooms growth14,186 to 15,106 100% guarantee Internet bookings Brand performance Hotels

25. Restaurants Pub restaurants By segment+ 4.5% Brewers Fayre+ 4.2% Beefeater+ 5.0% Like-for-like sales * * Excluding Travel Inn

26. Restaurants Brewers Fayre Total sales+ 6.8% Like-for-like sales+ 4.2% Operating margin growth16.8% to 18.5% Operating profit+ 17.6%

27. Restaurants Beefeater Comparable BeefeaterSales+6.0% Operating profit +7.4% Total Beefeater Sales+5.0% Operating profit – 8.5% Out and Out27 sites Average sales growth of 15%

28. Restaurants High Street restaurants growth Sales + 8.0% UK like-for-like sales –Pizza Hut+ 6.9% –Costa+ 6.2% –Café Rouge+ 5.3% –TGI Friday’s + 2.8% –Bella Pasta– 0.9% Total UK+ 4.4% –Germany – 7.3% Total like-for-like sales+ 2.7% Operating profit + 19.2%

29. Restaurants Improving asset quality Disposal of tail sites Finalise High Street brand review

30. High Street brand review Pelican brands to be sold (75 Café Rouge, 65 Bella Pasta, 8 Mamma Amalfi, 5 others – total 153) Flexible mechanism – manage outside Restaurants division Whitbread team to focus on major brands and value drivers Restaurants

31. Sports, health & fitness Sales+21% Like-for-like sales+18% Operating profit+24%

32. Sports, health & fitness UK health & fitness operators Like-for-like sales % 6 months to 30 June 6 months to 30 April 6 months to 30 June 3 months to 30 September 6 months to 30 June 6 months to 31 August

33. Sports, health & fitness David Lloyd brand Membership growth + 12% to 248,000 Non-fee income + 13% Membership retention 78% MAT Market outperformance

34. David Lloyd Leisure Developing clubs year-on-year profit growth +£4.5m (+250%) New clubs - reduced time to maturity Pre-opening members average 1,780 Improving club returns Sports, health & fitness

35. Like-for-like sales Marriott- 4.7% –London -24.6% –Provinces+3.9% Travel Inn+ 5.6% Brewers Fayre+ 7.9% Beefeater+ 5.2% David Lloyd Leisure * + 16.7% September/October * September only

36. Trading outlook Continue driving returns from existing assets Reduce discretionary and overhead costs Flexibility to defer £150m capex – primarily on new site expansion Management action

37. future Whitbread Strength of major brands Strong indications of market outperformance Good progress on value levers Prompt response to new circumstances Prospects

38. future Whitbread