John Banhamchairman

Annual Results 2002/3

Like-for-like sales - first 8 weeks 2003/4

• Marriott -4.1%• Travel Inn 4.0%• Brewers Fayre/Brewsters 5.2%• Beefeater 3.3%• David Lloyd Leisure* 6.8%

* 5 weeks

+10

+11 +11

+12

8

9

10

11

12

13

H1 H2 H1 H22001/2 2002/3

Year-on-year%

growth

Four consecutive periods of double-digit earnings growth*

* Profit after tax

Whitbread’s winning brands

David Richardsonfinance director

Annual Results 2002/3

Highlights• Strong profit growth• Positive cash flow• Improving returns

Profit – pre exceptionals£m Stats. Proforma* Growth

2002/3 2001/2 %Division sales 1,803 1,822 (1.0)Less Pelican (23) (100) -Sales continuing 1,780 1,722 +3.5Divisional profit 297 270 +10Central costs (22) (21) -PBIT 275 250 +10Interest (61) (63) -PBT 214 187 +14Tax (66) (56) -PAT and minorities 147 131 +12

* Proforma excludes Pubs and Bars which was demerged in May 2002

Positive cash flow£m Stats. Proforma Growth

2002/3 2001/2 %Cash flow from operations 370 336 +10.1Dividends/repayments JVs 17 11 +54.5Interest (63) (67) +6.0Taxation (49) (37) (32.4)Net capex (190) (220) +13.7Pensions (15) - -Acquisitions/Disposals 23 - -Dividends (54) (49) (10.2)Net Cash inflow/(outflow) 39 (26)

Improved returns Operating profit ROCE Growth

Growth % % % ptsMarriott (pre goodwill amortisation) +0.0 6.5 +0.0Travel Inn +10.8 12.6 +0.1Pub restaurants +10.1 9.9 +0.9High Street restaurants +25.1 19.1 +3.9Total restaurants +13.0 11.1 +1.3David Lloyd Leisure +25.9 9.1 +1.5

Group +10.0 9.4 +0.7

Marriott Actual GrowthReturns (post goodwill amortisation)5.8% +0.0% ptsReturns (pre goodwill amortisation)6.5% +0.0% ptsLike-for-like sales growth (0.5)% Occupancy 71.0%+2.0% ptsAverage room rate £72.75(1.9)%Operating margin 18.3%+0.6% ptsPBITA per room £7.5k +£0.1k

• Sales vs markets• Leapfrog cost savings• Kensington - opening Summer 2003

Actual GrowthROCE 12.6% +0.1% ptsLike-for-like sales growth 6.1% Occupancy 82.0% +1.0% ptsAverage room rate £39.98 +3.6%Operating margin 32.7% (1.3)% pts Number of rooms 16,669 +745

• Brand strength• CRS/internet/cross sell• Business card• Room growth/WIP• Refurbishment cost

Travel Inn

Restaurants Actual GrowthROCE 11.1 1.3%Like-for-like sales growth 2.0% Operating margin 9.8% 0.9%Year end Pub restaurants 625 (1)Year end High Street restaurants 897 +49

• Marketing• Food and menu development• Labour control• Margin control• Tail disposal• Expansion

David Lloyd Leisure Actual GrowthROCE 9.1% +1.5% ptsLike-for-like sales growth 6.1%Number of members 308,469 +10.6%Operating margin 23.7% +2.9% ptsNumber of clubs 55 +6

• Differentiated product• New member sales/retention• Cost management• Maturing clubs

Improved returns Operating profit ROCE Growth

Growth % % % ptsMarriott (pre goodwill amortisation) +0.0 6.5 +0.0Travel Inn +10.8 12.6 +0.1Pub restaurants +10.1 9.9 +0.9High Street restaurants +25.1 19.1 +3.9Total restaurants +13.0 11.1 +1.3David Lloyd Leisure +25.9 9.1 +1.5

Group +10.0 9.4 +0.7

Exceptionals £m

Pelican/Curzons (7.8)Site disposals +1.6Provision for lease (5.0)Tax credits +16.4

Net exceptional profit after tax +5.2

EPS/dividends 2002/3 2001/2 Growth %

EPSAdjusted 52.85p 47.85p 10.4Basic 51.77p (15.91)p -

DividendsFinal 14.30p 12.75p 12.2Total 19.87p 17.80p 11.6

Balance sheet strength 2002/3 2001/2

Interest cover (before exceptionals) 4.5 times 4.2 times

Gearing 47% 52%

Assets per share £6.70 £6.37

Capital expenditure£m 2002/3 2003/4

Actual GuidanceMarriott 27 25-35Travel Inn 65 65-75Restaurants 62 75-85David Lloyd Leisure 54 55-65Other 10 15-20Total 218 c275

Future years• ERP System• Year end date• Financing

Summary • Good growth• Strong cash• Better returns• More to come

David Thomaschief executive

Annual Results 2002/3

Year-on-year performance

Sales (%) (3.1) 15.2 1.2 5.3 10.5Like-for-like sales (%) (0.5) 6.1 2.7 1.6 6.1Operating margin (% pts) 0.6 (1.3) 1.0 0.8 2.9Operating profit (%) 0.0 10.8 10.3 25.1 25.9ROCE (% pts) 0.0 0.1 0.9 3.9 1.5

Marriott Travel Pub High Street David LloydInn restaurantsrestaurantsLeisure

Whitbread’s winning brands

Whitbread’s winning brand approach

• Understanding consumers’ needs• Developing compelling brand proposition• Operational excellence • Performance management

Travel Inn

• Everything you need for a good night’s sleep

• Breaking the mould• Industry success story• Continuous innovation

Travel Inn - probably the fastest rooms growth of any hotel company

6,613

8,659

10,494

12,415

14,28015,924

16,669

18,475*

25,000*

20,000*

5,000

10,000

15,000

20,000

25,000

1996/7 1997/8 1998/9 1999/2000 2000/1 2001/2 2002/3 2003/4 2004/5 2007/8

Rooms

* projected

1st Capitalunit opened

1st City Metroopened

1st Touchbaseopened

Travel Inn’s performance• Like-for-like sales +6.1%• Occupancy of 82.4% +1.3% points• ARR £39.98 +3.6%• Operating profit +10.8%

Brewsters – the family-friendly restaurant

• Unique positioning• Heaven for kids

– Brewsters Club – 560,000• Haven for parents

– Like-for-like food sales +6.0%

• Non-competing brands• Synergistic benefits realised• Strong growth potential

– 200 new units

Brewers Fayre/Brewsters - a great combination

Brewers Fayre/Brewsters performance

• Like-for-like sales+4.0%• Operating margin 15.4% +0.5% points• ROCE of 12.0% +0.5% points

David Lloyd Leisure

David Lloyd Leisure - brand differentiation

Suburban rather than Urban Families/couples rather than Singles Lifestyle rather than Fitness Big rather than Small Club rather than Gym

David Lloyd Leisure’s performance• Like-for-like sales+6.1%• Operating margin 23.7% +2.9% pts• Operating profit +25.9%• ROCE +1.5% pts

Beefeater - progress report• Estate review complete

– Tail identified– 51 sites being sold– 7 sites transferred

• Brand review under way– Customer research completed– Pilot sites on track– Roll out decision by Sept 2003

• Improving performance– Operating profit +18%– ROCE +1.2% pts

High Street restaurants - a winning trio

• Costa - the profitable coffee shop model• Pizza Hut - record sales and profits• TGI Friday’s - successful turnaround

strategy

Marriott

Marriott brand delivers yield premium%

19.0 20.2

0

5

10

15

20

25

Provinces London

Marriott – operating margin change 2002 vs 2001

Source: Internal analysis of published accounts

-12

-10

-8

-6

-4

-2

0

2

MarriottDe Vere Hilton M&C Thistle Six Continents

%

Marriott - profit per room

£k Marriott brandAverage top 3(Hilton, De Vere, M&C)

7.67.9

10.8

8.8

6

8

10

12

2000/1 2002/3

Whitbread positioned to deliver sustainable growth

• Focussing on growth markets• Improving returns from existing asset base• Implementing organic expansion• New brand development in core markets

Key strategies in place to achieve future growth• Marriott

– improving profit per room to £11k• Travel Inn

– grow distribution by 50%• Brewers Fayre/Brewsters

– grow distribution by 50%• Beefeater

– improving returns to 12%• High St restaurants

– improving returns to 20%+

High Street restaurants - returns on track to exceed 20%

ROCE %Target

0

5

10

15

20

2000/1 2001/2 2002/3 2003/4

Key strategies in place to achieve future growth• Marriott

– improving profit per room to £11k• Travel Inn

– grow distribution by 50%• Brewers Fayre/Brewsters

– grow distribution by 50%• Beefeater

– improving returns to 12%• High St restaurants

– improving returns to 20%+• David Lloyd Leisure

– improving mature club returns– 21 maturing clubs– 55 to 100 club growth

David Lloyd Leisure - value adding expansion programmeClubs

0102030405060708090

100

1995 1996 1997 1998 1999 2000 2001 2002 2003 2010

Whitbread’s winning brands