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Annual General Meeting 28 January 2011

Annual General Meeting 28 January 2011. Marston’s today. Marston’s today. 1. National pub operator Marston’s Inns and Taverns – 485 managed pubs Marston’s Pub Company – 1,663 tenanted/leased pubs Situated across England and Wales 98% freehold estate (by value)*

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Annual General Meeting 28 January 2011

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  1. Annual General Meeting 28 January 2011

  2. Marston’s today Marston’s today • 1. National pub operator • Marston’s Inns and Taverns – 485 managed pubs • Marston’s Pub Company – 1,663 tenanted/leased pubs • Situated across England and Wales • 98% freehold estate (by value)* • National Brewer – Marston’s Beer Company • Ale brewer; market leading position in premium ales • Vertically integrated business • Cost efficient • More opportunities • Reduced risk *includes long leaseholds A leading pub operator and brewer with a flexible business model Presentation name > date 2

  3. Financial snapshot 1 Before exceptional items * Includes disposal proceedsFCF = Free cashflow Return to turnover andprofitgrowth, strong cash generation Presentation name > date 3

  4. Clear divisional strategies STRATEGY KEY COMPONENTS OBJECTIVES • ‘F-Plan’ • New-build investment Exploit and develop competitive advantage in pubs and brewing sectors • Sustainable growth • Lower gearing ratios • Increased ROC • Innovative agreements • Greater control of retail offer • ‘Localness’ • Premium ales A clear strategy focused on growth and return > date 4

  5. ‘F-Plan’ drives transformation ‘F-Plan’: Food, Families, Females, Forty/Fifty somethings A higher quality business adapting to today’s consumer Presentation name > date 5

  6. Managed - new build investment Illustrative pro-forma • Visibility and control of plans • 2011: 20 sites under contract, 2 open and 8 on site • 2012: 25 sites identified • 2013 – 2015: c.100 sites under constant review • ROC anticipates pressure on returns • 15% target below current run-rate – returning competition, build costs Importance of food retailing skills continues to increase Presentation name > date 6

  7. Tenanted - innovative agreements Heading (Arial Black 22pt) Heading (Arial Black 22pt) -4 +1 -24 STABILITY OPPORTUNITY REVIEW Majority of profit stable, significant Retail Agreement opportunity Presentation name > date 7

  8. Retail Agreement: target – 600 pubs Heading (Arial Black 22pt) Heading (Arial Black 22pt) • Target EBITDA uplift - £10k per pub (20% EBITDA ROC) p.a. • Key objectives • Increased consumer appeal • Increased market share • Response to market trends – ‘F-Plan’ • Reduced overheads • Reduction in % of income derived from traditional leased model Clear growth plan focused on delivery of high ROC Presentation name > date 8

  9. Brewing - ‘Localness’ adds value • ‘Localness’ • Provenance, tradition, heritage, authenticity • Signals of ‘Localness’ • Brewing, distribution, marketing • Competition • Regional brewers, micro brewers • Marston’s competitive advantage • Genuinely local • National distribution, cost-efficient • Industry-leading guest ale programme • Measuring success – Free Trade outperformance • Volume +10%, premium cask ale +18%, sales +13%, profit +10% • Account base +11% Unique: a local brewer with national distribution and high service level Presentation name > date 9

  10. Market leader in premium cask, bottled ale Premium Cask Ale 2005-2010 Marston’smarket share % Premium cask ale vs. total ale market Bottled Ale 2005-2010 Marston’smarket share % Total bottled ale market *source: BBPA market tracker Growth prospects, attractive consumer profile and margins Presentation name > date 10

  11. Summary • Clear strategy to exploit and develop competitive advantage • ‘F-Plan’, new-build investment • Innovative agreements, greater control of retail offer • ‘Localness’, Premium Ale • Clear financial objectives • 2010 results demonstrate strategy is being well-executed • 3. Current trading • Encouraging and robust performance despite weather • Profitability in line with our expectations • Good progress in each of our trading divisions Improving trends, clear agenda for growth Presentation name > date 11

  12. www.marstons.co.uk

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