Profit growth through Quality, Value & Consistency Retail Agreements trip – 24 th June, 2010

1. Profit growth through Quality, Value & Consistency Retail Agreements trip – 24th June, 2010

2. Introduction Ralph Findlay Chief Executive 2

3. KPI analysis Substantive: 85% of estate as at 14 May Presentation name > date Trend improvement on all metrics, focus on profit growth 3

4. Development of tenanted and leased pubs • MPC performance has benefited from relationships based on: • Openness, transparency • Fair rents, fair share of risks and rewards • Sustainability • Licensees have benefited from: • Flexibility on rents, discounts where required • Significant levels of business development support • Our view: regulatory and market pressures are here to stay • Competitive pressures on independent operators will continue • The ‘bar’ for successful operators is being raised: regulation, market trends, funding, quality • A different approach can provide an effective response Presentation name > date The ‘bar’ for long term success has been raised 4

5. Alistair Darby Managing Director 5

6. Quality, Value & Consistency Presentation name > date 6

7. Industry Beer pricing Brulines Repairs External Lending Legislation BEC/OFT Consumer Demanding Flight to value Beer sales  Competitor Skills Food Retailer power Good pubs adapting, average pubs under pressure Spring 2009: What were tenants up against? Tenants Presentation name > date 7

8. Sales drop, costs rise, cash drains Standards decline Consumers lose confidence Business failure Churn Pub users’ trust broken Impact – Spiral of decline Presentation name > date 8

9. Spring 2009: Why come here? No quality, no value, no consistency Presentation name > date 9

10. Dispose or retain? • Two key considerations • is there a sustainable turnover opportunity? • Marston’s current assertion £3.5k - £4k per week minimum • can an appropriate ROC be achieved? • Marston’s target 10% ROC • If the answers above are yes, then the pub has long term viability, otherwise disposal is inevitable • can foresee 8k-10k fewer pubs over the next 5 years. • mainly for alternative use • But a different approach is required • new approach must have longevity Turnover and ROC determines future of pub - but new models required Presentation name > date 10

11. More options to improve result Change absolutely necessary Two operating solutions CONTROL (600 pubs) Retail Agreement INCENTIVISATION (1,000 pubs) New Lease Advance Ultra-Advance: free of tie Presentation name > date 11

12. Opportunity to flex risk/reward mix Development of lease agreements • c.1,000 pubs will continue to be operated as leases • 5 – 30 years • Assignable • New lease: no RPI on rent • Widespread availability of Advance agreement • Free trade pricing model • Direct debit payment, online ordering • Extra discounts greater than additional charge • Free of Tie option to be made available from July 2010 • No machine tie • Limited take up anticipated 12

13. Retailer receives 20% (min) of net take Marston’s responsible for costs except staff Control via EPOS/stock-taking 33 pubs per BDM Retail offer from Marston’s eg Sky 5 year term, non L&T, assignable Very attractive franchise-style features Retail Agreement Presentation name > date 13

14. To fix unappealing pub Average £50k capex per pub £10k infrastructure £30k sparkle £10k F&F Target 20% ROIC Ongoing maintenance - equivalent to tenancy Re-establish reputation, then maintain Role of Capital Investment Presentation name > date 14

15. Significantly larger recruitment pool Who is attracted to run a Retail Agreement? • Managed operators from pubs and High Street • Tenanted pub model rejecters • Small business start ups • Franchisees Presentation name > date 15

16. Why people come to these pubs Quality, value, consistency 16

17. Why people come to these pubs Quality, value, consistency Presentation name > date 17

18. Quality, value, consistency Why people come to these pubs Presentation name > date 18

19. Why people come to these pubs Quality, value, consistency Presentation name > date 19

20. Profit growth through quality, value & consistency The results Albion Robin Hood Volume and profit exceeding historical highs Presentation name > date 20

21. Profit growth through quality, value & consistency The results Old Sal Priory Volume and profit exceeding historical highs Presentation name > date 21

22. On track to 100 by October ‘10 Number of pubs open 78 Profit uplifts on target Few teething problems with only 3 or 4 pubs needing work Low retailer churn Update on progress Strong foundations for roll-out Presentation name > date 22

23. Retail Agreement: target – 600 pubs • Target EBITDA uplift - £10k per pub (20% EBITDA ROC) • Key objectives • Increased consumer appeal • Increased market share • Response to market trends – ‘F-Plan’ • Reduced overheads • Reduction in % of income derived from tenanted and leased model * cumulative Clear growth plan focused on delivery of high ROC Presentation name > date 23

24. Substantive estate in profit growth New lease highly attractive to entrepreneurial licensees Retail agreements performing well Range of options to drive results Profit growth through quality, value & consistency Clear growth plans Presentation name > date 24

25. Any questions? Presentation name > date 25