Interim Results 2006

1. Interim Results 2006

2. Preliminary results 2005 David Thompson Chairman 2

3. Interim results 2006 • Strong first half results • turnover and profit growth in each of our trading divisions 2. Increased operating margin • despite significant cost pressures • Earnings per share* up 10.0% • strong growth in profit before tax • Dividend +10.0% to 14.52 pence per share • consistent with earnings growth, strong underlying cashflow We remain confident in achieving a satisfactory out-turn for the year * before exceptional items and adjusted for the impact of IFRS 3

4. Preliminary results 2005 Paul Inglett Finance Director 4

5. Profit and loss account* • 20062005% change • Turnover £m 281.4 257.6 + 9.2 • Operating profit £m 66.4 58.3 +13.9 • Operating margin % 23.6 22.6 + 1.0 • Profit before tax £m 40.2 35.6 +12.9 • Earnings per share p 36.2 32.9 +10.0 • Dividend per share p 14.52 13.20 +10.0 * before exceptional items and adjusted for the impact of IFRS 5

6. Increased operating margin* 2006vs 2005Key drivers % % Pathfinder Pubs 16.9 (0.6) Union Pub Company 43.9 +1.6 WDB Brands 19.3 (0.8) Central Costs (2.0) +0.1Group 23.6 +1.0 +ve flat buying in prices – food and drink - ve utilities +£2.5m- ve NMW +£1.0m- ve Sky +£0.4m +ve higher proportion longer leases+ve synergies from acquisitions - ve utilities +£0.5m - ve pricing pressure from further consolidation+ve benefits from acquisitions+ve higher proportion of tenanted profits * before exceptional items and adjusted for the impact of IFRS 6

7. Strong cashflow 20062005 £m£m% change Cashflow from operating activities 99.2 57.6 + 72.2 Interest (21.0) (22.5) Maintenance capex (14.0)(12.0) Investment capex (36.8) (42.7) Disposals/FT loans/other 14.1 11.1 Acquisitions (45.3) (129.1) Dividends, shares bought/issued (22.3) (16.7)Net increase in debt (26.1) (154.3) Free cashflow 64.2 23.1 +177.9 7

8. Efficient financing structure 1. Net debt £m Bank facility 153 • headroom of £112m Securitisation 788• c70% of estate securitised Loan notes 10 Cash in bank/securitisation (53) 898 2. Key financing ratios Average interest rate <6.0% % at fixed rate 88% Interest cover* 3.0x Net debt: EBITDA* 4.7x Average debt maturity 15 yrs * Proforma 12 months to March ‘06 8

9. Financing capacity • 1. Interest • aim to maintain interest cover in range of 2.5x – 3.0x • 2. Impact on financing capacity • ability to finance pub acquisitions of up to £500m without recourse to equity • 3. Acquisition criteria • return above WACC • earnings enhancement • strategic fit Flexibility to make acquisitions or further capital returns 9

10. Preliminary results 2005 Ralph Findlay Chief Executive 10

11. W&DB today • 1. Pub operator – 2,358 pubs • Pathfinder Pubs – 543* managed pubs • The Union Pub Company – 1,815* tenanted/leased pubs • situated across England and Wales • 95% community/neighbourhood estate, 95% freehold • 2. Brewer • leading ale brands • largest brewer of cask ale in the UK • 3. Vertically integrated business • clearly differentiated market position • consistent record of strong financial performance * 93 pubs transferring to UPC in H2 11

12. W&DB strategy • 1. Development of national, high quality pub estate • new build pubs/acquisition of existing pubs • pub refurbishment • predominantly community pubs • continued investment in people and skills • 2. Increase market share of WDB Brands’ beers • exploit benefits of integrated model • 3. Maintain a strong, efficient balance sheet • predominantly freehold ownership • long-term, low cost debt financing • gearing to reflect stable income, risks 12

13. UPC in strong growth 86.4 • 1. Growth through acquisition • 2005 - Burtonwood: 420 pubs • 2005 - Jennings: 128 pubs • 2006 - Celtic Inns: 63 pubs • 2. Organic growth • average profit per pub +4.4% • operating margin +1.6% • 3. Transfers from Pathfinder Pubs • 93 pubs transferring in H2 70.4 37.9 £m 29.8 Stable business, predictable cashflow 13

14. Acquisition of Celtic Inns • 70 pubs • £43.1m acquisition cost • acquired 17 March 2006 Rose & Crown, Nether Stowey, Somerset White Lion, Tenterden, Kent • EBITDA £4.5m • effective multiple 9.6x • predominantly freehold, community estate • situated South Wales and Southern England The Cayo Arms Hotel, Cardiff 14

15. Response to rising costs, competition • Rising costs – impact c£5k per pub p.a. • energy • labour • Sky TV • 2. Competitive pricing environment • value for money offers more prevalent in the on-trade • continued challenge from cut-price deals in supermarkets • Response of good tenants/lessees • manage price, mix and margin • actively manage other costs • develop the pub offer Estate quality and tenant/operator relationships matter 15

16. More business support (1) • 1. More tenants/lessees attending ‘The Skills Pool’ • RAPPID (5 days) • NCPLH (1 day) • Drinks, Drunks, Rocks and Your Role • 2. Launch of UniOn - intranet • online ordering • marketing and promotional tools • training courses • supplier offers • 3. Preparation for the smoking ban • significant investment planned 2006/07 16

17. Recognition Social responsibility Development More business support (2) 17 2

18. Estate composition: year-end 2006 No. of pubs • 1. Community locals 226 • Bostin’ Locals • Taverner’s Carveries • Traditional Locals • 2. Great food pubs 140 • Service That Suits • Two for One • Quality Food Pubs • Pitcher & Piano 27 • Town Centre Traders 50 • Acquisitions/new builds 20 • 463 18

19. High quality segmented pub estate (1) Bostin’ Locals ● Something for everyone ● They know me, I know them ● Easier than eating at home ● A great place to watch sport Taverner’s Carvery ● A pub, not a restaurant ● Fresh food● A real deal ● Mum’s cooking on demand Llangewydd Arms, Bridgend Loom & Shuttle, Kidderminster Two For One ● A budget deal ● No compromises, irresistible prices ● Well appointed pubs ● Great food, huge choice • Service That Suits • ● Restaurant meal at pub prices ● Everyday special treat • ● Menu choice and quality ● Personal service College Farm, Watchfield Ye Olde Saracen’s Head, Balsall Common 19

20. High quality segmented pub estate (2) Town Centre ●The gathering place ●A clean & safe venue ● Great food & service Pitcher & Piano ●Cool, contemporary, city & party● To be conspicuous ● Premium food, drink & service ●True retail brand Bell at Mill Hill Richmond 20

21. 20 new openings in 2006/07 21

22. Acquisitions: delivering in 2006/07 No. of sites Planning granted - 7 Planning submitted - 10 Allowance for refusals -(3) Deals in legals - 3 Trading pubs - 3 Expected openings - 20 22

23. Trading pub acquisitions • Bure Farm, Bicester • £1.8m investment • £21k AWT • 18% ROC • Boundary, South Normanton • £1.9m investment • £20k AWT • 15% ROC 23

24. 7.9 6.8 6.6 6.4 6.2 5.9 % Increasing market share* • 1. All trade channels • WDB Brands has 7.6%of the UK ale market and growing • The UK beer market declined by c2% (last 12 months) • 2.Premium and standard ale • Premium ale performing strongerthan standard ale • Premium ale stronger in off-tradethan standard ale 15.5 12.6 11.1 6.5 % 5.8 5.6 24 *Source: industry estimates 12 months MAT data to March ‘06

25. Significant brand support 25

26. Smoking ban: industry impact • Timing of ban- England June ‘07, Wales Dec ‘06? • 2. Winners and losers • - winners: well invested, well located pubs • - losers: pubs with little amenity, limited capacity for investment • 3. Positive action will mitigate impact-positive retailing vs defensive approach • - adapt to changing consumer profile Avoid complacency: act early 26

27. W&DB action • Ahead of the game • - c900 pubs sold over 5 years • - significant investment already completed • - all plans will be completed by June 2007 • Positive retailing • - outdoor investment: gardens, patios, decor • - continued development of food offers, both managed and tenanted pubs • Co-ordinated activity • - cross-divisional smoking group • - deriving value from integrated model Working fast, working smart, working together 27

28. Defensive spend • Defensive spend is better than doing nothing ……… • …….. but new customers will not be attracted 28

29. ‘Inside Out’: patios and gardens 29

30. ‘Inside Out’: patios and gardens 30

31. Smoking ban: key points Our pubs are well positioned - >85% have gardens/outside trading areas - food is 30% of retail turnover and growing - we have already disposed of the ‘vulnerable’ pubs 2. We started investment plans early - £5m invested in 250 Pathfinder schemes 2003-2005 - 20 smoke-free sites trading positively - £3m invested in 400 UPC schemes by September 2006 3. We have clear investment plans in place for 2006/07 - £5m on 300 Pathfinder Pubs outlets - £7m on 1,050 Union Pub Company outlets 4. Group benefits from our business model Our aim: neutralise the risks, maximise the opportunities 31

32. Summary of interim results • 1. Strong interim results • effective implementation of organic development strategies • successful integration of acquisitions • 2. Strong balance sheet • prudently financed, with debt capacity • more flexible financing post securitisation • 3. Current trading • in line with expectations, recent LFL sales +2.5% in Pathfinder • pressure on discretionary spend, set to continue • we remain confident in achieving a satisfactory out-turn for the year 32

33. Appendices 33

34. Appendix 1Key financials 2006 2005*% change Turnover £m 153.1 147.3 + 3.9 EBITDA £m 36.3 35.3 + 2.8 Operating profit £m 25.9 25.8 + 0.4 Operating margin % 16.9 17.5 (0.6) * restated for reallocation of central overheads, changes to transfer pricing and impact of IFRS 34

35. Appendix 2Key financials 20062005*% change Turnover £m 86.4 70.4 +22.7EBITDA £m 42.8 34.2 +25.1 Operating profit £m 37.9 29.8 +27.2 Operating margin % 43.9 42.3 +1.6 * restated for reallocation of central overheads, changes to transfer pricing and impact of IFRS 35

36. Appendix 3 Key financials 20062005*% change Turnover £m 41.9 39.9 +5.0 EBITDA £m 11.6 11.1 +4.5 Operating profit £m 8.1 8.0 +1.3 Operating margin % 19.3 20.1 (0.8) * restated for reallocation of central overheads, changes to transfer pricing and impact of IFRS 36

37. Appendix 4 Impact of IFRS restatement (1) Profit and loss account Interim Mar 05 Year to Sept 05 Profit Profit PBT Tax after tax PBT Tax after tax£m £m £m £m £m £m UK GAAP 36.0 (11.1) 24.9 90.1 (26.5) 63.6 Pensions (0.5) 0.2 (0.3) (0.6) 0.2 (0.4) Share based payments 0.1 (0.3) (0.2) 0.2 (1.8) (1.6)Pre-exceptional IFRS profit 35.6 (11.2) 24.4 89.7 (28.1) 61.6 Exceptionals under UK GAAP (3.4) 1.0 (2.4) (42.2) 12.0 (30.2) Revaluation/other (1.7) - (1.7) (0.4) - (0.4) Goodwill 3.6 - 3.6 7.1 - 7.1 Deferred tax - 0.4 0.4 - 1.0 1.0Exceptionals under IFRS (1.5) 1.4 (0.1) (35.5) 13.0 (22.5) Post exceptional IFRS profit 34.1 (9.8) 24.3 54.2 (15.1) 39.1 37

38. Appendix 5 Impact of IFRS restatement (2) Balance sheet: net assets As at Mar ’05 As at Sept ’05 £m £m £m £m UK GAAP 704.3 758.5 Deferred tax (90.7) (89.9) Pensions (45.8) (45.9) Dividends 10.1 19.8 Revaluation 52.0 - Goodwill 3.6 7.1 Share based payments 3.2 2.5 (67.6)(106.4) IFRS636.7 652.1 38

39. Appendix 6 Additional information and guidance • Average number of shares in H1 2006 77.3m • Number of shares in issue as at 26 May 2006 77.2m • Additional dilutive number of shares 0.6m • Full year2006 • Forecast tax rate 30.0% - 30.5% • Capex forecast : Existing business £60m • : New builds/sites £25m • : Pub acquisitions £10m • £95m • Forecast disposal proceeds £20m+ 39

40. Appendix 7 Website addresses Website addresses:www.pathfinderpubs.co.uk www.wdbbrands.co.uk www.theunionpubcompany.co.uk For a pdf version of this presentation please visit our Group website on: www.wdb.co.uk 40

41. Interim Results 2006