44
Sir John Banham Chairman
Sir John BanhamChairman
David RichardsonFinance Director
Year of transformation
£m £m %
2001/2 2000/1 Growth
Sales including joint ventures 1,822 1,7096.6
Operating profit before exceptionals* 249.5 235.6 5.9
Estimated interest (62.5) (61.8)
PBT before exceptionals* 187.0 173.8 7.6
Estimated taxation (55.6) (55.3)
PAT before exceptionals 131.4 118.5 10.9Net assets employed (2000/1 estimated) 2,864 2,702
ROCE 8.7% 8.7%
Whitbread (continuing businesses)
* After amortisation of goodwill
Segmental analysis £m £m
2001/2 2000/1 Sales EBITDA Profit Assets Sales EBITDA Profit Assets
HotelsMarriott/Swallow 405 112 72 1,234 403 116 79 1,200
Travel Inn 177 75 60 482 158 70 56 424
RestaurantsPub restaurants 576 100 71 769 543 96 68 779
High St restaurants 498 34 17 131 467 27 10 162
Sports, health & fitnessDavid Lloyd Leisure 166 54 34 453 139 46 28 426
Total divisions 1,822 375 254 3,070 1,709 354 241 2,991
Britvic 16 16 56 13 13 48
Central costs (17) (21) (262) (13) (18) (336)
Whitbread (continuing businesses) 374 249 2,864 354 236 2,702
Segmental analysis
•Travel Inn•Restaurants (excluding Travel Inn)
– Pub restaurants– High Street restaurants
•Pelican within High Street
Year-on-year growth % % % % Total Like-for-like Profit Half
Year sales growth sales growth growth profit
growth
HotelsMarriott 0.4 (0.1) (8.9) 5.7Travel Inn 12.1 3.6 6.7 9.4
RestaurantsPub restaurants 6.1 5.6 5.5 10.0High Street restaurants 6.7 3.3 64.1 19.2
Sports, health & fitnessDavid Lloyd Leisure 19.4 14.6 22.4 24.0
Whitbread (continuing businesses) 5.9
9.4
Operating margins/returns % Margins % ROCE
2001/2 2000/1 2001/2 2000/1
HotelsMarriott 17.7 19.5 5.8 6.6Travel Inn 34.0 35.7 12.5 13.3
RestaurantsPub restaurants 12.4 12.5 9.3 8.7High Street restaurants 3.4 2.2 12.9 6.4
Sports, health & fitness David Lloyd Leisure 20.9 20.4 7.6 6.6
Whitbread (continuing businesses) - - 8.7 8.7
Transformation of the group £m £m Surplus over Exceptional book value p&l accountPubs and Bars
Surplus over book value 477 0Costs (25) (25)
Net impact Pubs and Bars 452 (25)Pelican
Write down (26) (26)Goodwill – (147)previously written off to reserves
Reorganisation (2) (2)Net impact Pelican (28) (175)Other including taxation (2) (2)
Surplus over book value/exceptional items £422m
£(202)m
Analysis of Whitbread cashflow £m £m £m Total Whitbread
Former/post (continuing
businesses) Whitbread
Cashflow from operations 352 336 16
Dividends received 3 3 -
Interest costs etc (72) (67) (5)
Taxation (84) (37) (47)
Capital expenditure (net) (224) (212) (12)
Acquisitions and disposals 462 - 462
Dividends (128) (49) (79)
Net cash inflow/outflow 309 (26) 335
Strength of balance sheet
Net assets £2,865m of which freehold property pluslong leasehold £2,236m
Net borrowings £976m
Capital and reserves £1,889m
Gearing 52%
Interest cover based on proforma4 times
Dividend
Whitbread (continuing businesses) PAT£131.4m
Less minorities £(0.2)m
Profit attributable £131.2m
To give a 2.5x cover x 40%
Dividend payable £52.5
No. of shares in issue at year end 295.4m
Total dividend per share 17.8p
Interim dividend per share 5.05p
Final dividend per share 12.75p
Things to watch for in 2001/2
•Accounting treatment of Pubs and Bars disposal
– 10 weeks of Pubs and Bars profit– As a demerger (no profit on disposal)– £25m of transaction/seperation costs as non-
operating exceptional
•New capital structure– Share consolidation– c.£445m of Pubs and Bars cash for Whitbread
•Deferred tax (FRS19) from interims•Future capital expenditure
Capital expenditure £m £m
2002/3 2001/2 future estimates actuals
Marriott 40 - 50 71Travel Inn 65 - 75 71Restaurants 50 - 60 71David Lloyd Leisure 65 - 75 57Other 10 3Whitbread (continuing businesses) 230 - 270
273Pubs and Bars - 14
Total group 230 - 270 287
New accounting issues for 2002/3FRS17
•Board plans to adopt for 2002/3•Full notes in published accounts
– Fund shortfall of £84m 7% of fund
– Pension obligation in company books of £59m after deferred tax
– Profit and loss charge in 2002/3, on FRS17 similar to 2001/2
on a SSAP 24 basis
– Fund shortfall expected to eliminate itself in the mid-term as equity returns revert to long-term trend
Summary
•Year of transformation
•Whitbread – performing well
•Still plenty of opportunity!
David ThomasChief Executive
Highlights
•Like-for-like sales
•Market out-performance
•Brand strength
•Progress on value drivers
•£1.1bn returned to shareholders
Hotels
Total sales +3.7%
PBIT -2.4%
ROCE -0.6%
MarriottKey results
Total sales +0.4%
Like-for-like sales -0.1%
PBIT -8.9%
ROCE -0.8%
Core Marriott*
September 11 effect
First half Second halfThis year Last year This year Last year
Occupancy 75.4% 77.0% 69.0% 73.0%
ARR £83.34 £80.72 £80.20 £85.43
Yield £62.83 £62.24 £55.32 £62.33
* Branded for 2+ years
Core MarriottRoom yield premium maintainedRooms yield and premium, March 01 - February 02
£Core Marriott
0
20
40
60
80
100
Provincial London Total UK
20%
28%
21%
Average top 3
Source: PKF
Core MarriottProfit per room – closing the gap
7.97.6
10.8
9.2
5
6
7
8
9
10
11
2000/1 2001/2
£k
Core Marriott
Average top 3
10.6 Target
Source: Whitbread estimates
MarriottValue drivers – non room revenue
•Leisure +10%
•Golf +8%
•F&B +2%
•Rooms -2%
Marriott Value drivers – operational effectiveness
•Core Marriott operating margin up 1.3% to 18.5%
•Central overhead down 12% year-over-
year
•£10m cost reduction programme
implemented
Swallow Significant revenue progress
Yield premiumPre acquisition Post conversion
Tranche 1 -1% 10%
Tranche 2 -7% 4% (6 months)
•Like-for-like sales 2.4% (5.7% second half)
•Full benefits for year 2003/4
Travel Inn Key results
Total sales +12.1%
Like-for-like sales +3.6%
PBIT +6.7%
ROCE -0.8%
Travel Inn Like-for-like ROCE grows year-on-year
13.3
14.5
12.5
15.0
11
12
13
14
15
16
Total Like-for-like
%
2000/1
2001/2
Travel Inn Market leadership
•Like-for-like occupancy 82.6%(core occupancy flat year-on-year)
•Rooms growth 14,186 15,924
Travel Inn Brand strength
•Unprompted awareness up to 29% (from 18%)
•Internet bookings up to 15%
•100% guarantee increased guest loyalty improved staff retention
Restaurants Key results
•Total sales +6.4%
•Like-for-like sales+4.6%
•PBIT +13.2%
•ROCE +1.5%
23%
58%
19%
RestaurantsProfit per sector
Beefeater
Brewers Fayre/Brewsters
High Street
Brewers Fayre/Brewsters Strong all round performance
•Like-for-like sales +5.6%
•Operating margin growth14.8% 15.0%
•Operating profit +9.6%
•ROCE +0.9%
BeefeaterPositive like-for-like performance
Comparable Beefeater•Sales +5.4%•Operating profit +12.6%
Total Beefeater•Sales +5.2%•Operating profit -3.4%
Segmentation programme impacts profit
High Street Key results
•Total sales +6.7%
•Like-for-like sales +3.3% (excluding Pelican
5.1%)
•PBIT +64.1%
•ROCE 6.4% 12.9%
High Street Improving returns
Like-for-like sales
Pizza Hut +6.0%
Costa +5.7%
T.G.I. Friday’s +4.4%
High Street Improving returns
•Operating margins up from 2.2% to 3.4%
•Estate churn 94 sites acquired69 sites sold
Sports, health and fitness Key results
•Total sales +19.4%
•Like-for-like sales +14.6% (mature clubs
9.3%)
•PBIT +22.4%
•ROCE +1.0%
David Lloyd clubs Market outperformanceAverage annual sales per member
200 300 400 500 600
Fitness First
LA Fitness
Total Fitness
Holmes Place
Esporta
David Lloyd
£
Source: Whitbread estimates
David Lloyd clubs Member KPIs
•Growth in members 18.0%
•Member retention 73%
•Member satisfaction 74.7%
David Lloyd clubs Improving returns
•Developing clubs– Contribution up £7.7m year-on-year
•Reducing time to maturity– Average pre opening memberships – 1,397
•Improving mature club ROCE– 15.4% 16.2% (pre divisional overhead)
David Lloyd clubs Improving returns
•Utilisation
•Yield management
•Build costs
David Lloyd clubs Pipeline secures future growth
Epsom BrusselsBromsgrove OxfordFulham LisburnKingston SouthendSwindon Farnham
Current tradingLike-for-like sales – 7 weeks
Marriott -2%
Travel Inn +6.4%
Brewers Fayre +5.8%
Beefeater +5.2%
David Lloyd Leisure*+7.2%
* 5 weeks only
