Annual Results Year ended 30 April 2011 29 June 2011

1. Annual ResultsYear ended 30 April 2011 29 June 2011 Preliminary Results 2011

2. Cautionary statement This document is solely for use in connection with a briefing on Stagecoach Group plc (“the Group”). This document contains forward-looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries, sectors and markets in which the Group operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. No assurances can be given that the forward-looking statements in this presentation will be realised. The forward-looking statements reflect the knowledge and information available at the date of preparation. This document is not a full record of the presentation because it does not include comments made verbally by Stagecoach Group management or by others.

3. Martin GriffithsFinance Director

4. Highlights • Continued strong management of business • Operational excellence and high customer satisfaction • Winning new customers(e.g. megabus.com, modal shift) • Acquisition (e.g. London Bus) and rail opportunities • Reduced costs in response to changing circumstances • Excellent returns for shareholders • Adjusted EPS 23.8p (2010: 18.7p) • 9.2% increase in full year dividend per share • Positive outlook for 2011/12

5. Summary income statement Year to 30 April 11 £m Year to 30 April 10 £m Change £m UK Bus (regional) operating profit UK Bus (London) operating loss North America operating profit North America joint ventures’ profit after tax UK Rail operating profit Virgin Rail Group profit after tax Restructuring costs, group overheads and other items Operating profit Finance charges (net) Tax Profit excluding intangibles and exceptionals Intangibles and exceptionals, net of tax Reported profit from continuing operations 153.1 (5.9) 19.3 9.3 48.4 28.4 (12.4) 240.2 (34.5) (35.1) 170.6 (12.7) 157.9 126.1 Nil 9.1 7.6 41.6 19.2 (11.6) 192.0 (30.7) (27.2) 134.1 (26.3) 107.8 27.0 (5.9) 10.2 1.7 6.8 9.2 (0.8) 48.2 (3.8) (7.9) 36.5 13.6 50.1

6. UK Bus (regional operations) Year to 30 April 11 Year to 30 April 10 Change 893.6 883.0 153.1 17.1% 661.5 319.2 875.4 864.7 126.1 14.4% 655.4 326.3 2.1% 2.1% 21.4% 270bp 0.9% (2.2)% Revenue (£m) Like-for-like revenue (£m) Operating profit (£m) Operating margin (%) Estimated like-for-like passenger journeys (m) Like-for-like vehicle miles operated (m)

7. UK Bus (London) October 2010 to April 2011 133.6 (5.9) (4.4)% Revenue (£m) Operating loss (£m) Operating margin (%)

8. North America Year to 30 April 11 Year to 30 April 10 Change 461.7 67.7 529.4 30.2 15.2 45.4 8.6% 426.3 64.1 490.4 14.6 12.8 27.4 5.6% 8.3% 5.6% 8.0% 106.8% 18.8% 65.7% 300bp Revenue – wholly owned (US$m) Revenue – joint ventures (US$m) Revenue – total (US$m) Operating profit – wholly owned (US$m) Operating profit – joint ventures (US$m) Operating profit – total (US$m) Operating margin (%)

9. megabus.com North America Financial Overview Year ended 30 April 2011 * Earnings before interest, taxation, depreciation, amortisation and operating lease rentals

10. UK Rail Year to 30 April 11 Year to 30 April 10 Change 1,070.0 1,026.9 48.4 4.5% 3,395.7 1,298.3 1,026.7 968.9 41.6 4.1% 3,262.0 1,214.9 4.2% 6.0% 16.3% 40bp 4.1% 6.9% Revenue (£m) Like-for-like revenue, excluding tram (£m) Operating profit (£m) Operating margin (%) Estimated passenger miles – S Western (m) Estimated passenger miles – E Midlands (m)

11. Virgin Rail Group Year to 30 April 11 Year to 30 April 10 Change 392.7 39.5 10.1% 17.1 3,530.7 355.3 25.5 7.2% 25.1 3,230.2 10.5% 54.9% 290bp (31.9)% 9.3% Revenue – 49% share (£m) Operating profit – 49% share (£m) Operating margin (%) Dividends received (£m) Estimated passenger miles (m)

12. Rail revenue risk sharing South Western East Midlands West Coast 862.7 747.4 (115.3) 68.1 68.1 343.9 272.0 (71.9) 47.9 Nil 825.0 746.3 (78.7) 39.8 39.8 Target revenue – year to 31 March 2011 (£m) Actual revenue – year to 31 March 2011 (£m) Revenue shortfall (£m) Theoretical revenue support (£m) Actual revenue support (£m)

13. Miscellaneous income statement items Year to 30 April 11 Year to 30 April 10 Change Citylink joint venture (£m) Group overheads (£m) Restructuring costs (non-exceptional) (£m) Intangible asset expenses (£m) Post-tax exceptional items (£m) 1.8 (11.3) (2.9) (12.4) (15.2) 17.9 1.2 (11.6) (1.2) (11.6) (11.1) (13.0) 50.0% (2.6)% 141.7% 6.9% • Exceptional items include £18.5m of gains from the resolution of liabilities relating to past business disposals

14. Finance charges and credit ratios Year to 30 April 11 Year to 30 April 10 Change Net Group finance charges* (£m) EBITDA from continuing operations and joint ventures* (£m) Year-end net debt (£m) Net Debt/EBITDA* EBITDA*/Net finance charges* (34.5) 330.5 (280.9) 0.8x 9.6x (30.7) 283.9 (296.7) 1.0x 9.2x 12.4% 16.4% (5.3)% (0.2)x 0.4x • Successful re-financing of bank facilities, now committed through to 2016 • Capital structure under review – will report conclusion by AGM in late August 2011 * excluding exceptional items

15. Taxation Year to 30 April 2011 Pre-tax Profit £m Tax £m Rate % Excluding intangible asset expenses and exceptional items Intangible asset expenses Exceptional items Reclassify joint venture taxation for reporting purposes Reported in income statement Cash tax paid (net) 218.1 (15.2) 0.7 203.6 (12.4) 191.2 (47.5) 3.1 (1.3) (45.7) 12.4 (33.3) (20.4) 21.8% 20.4% 185.7% 22.4% n/a 17.4%

16. Movement in net debt Year to 30 April 2011 £m EBITDA from Group companies before exceptional items Loss on disposal of plant and equipment Equity-settled share based payment Dividends from joint ventures Movement in retirement benefit obligations Working capital movements Net interest paid Tax paid Net cash from operating activities Net capital expenditure including new hire purchase and finance leases Acquisitions /disposals of businesses, intangibles and investments Token sales and redemptions Cash generation Foreign exchange/income statement movements Equity dividends Share capital movements Decrease in net debt Opening net debt Closing net debt 291.0 0.9 4.7 28.8 (20.4) (22.7) (30.1) (20.4) 231.8 (149.7) (56.6) (2.7) 22.8 10.1 (15.8) (1.3) 15.8 (296.7) (280.9)

17. Capital expenditure New hire purchase and finance leases £m Impact of capex on net debt £m Disposal proceeds** £m Net 2010/11 Actual £m Cash spent on capex* £m UK Bus (regional operations) UK Bus (London) North America UK Rail Central (8.1) - - - - (8.1) (100.4) (1.4) (27.3) (35.2) (0.1) (164.4) 1.7 0.3 3.2 9.5 - 14.7 (98.7) (1.1) (24.1) (25.7) (0.1) (149.7) (92.3) (1.4) (27.3) (35.2) (0.1) (156.3) * Excludes capitalised intangible assets and assets acquired through business combinations ** Excludes proceeds from selling businesses

18. Pensions 2011 Cash contributions £m 2010 Cash contributions £m 2011 Pension expense £m 2010 Pension expense £m 33.2 1.0 28.4 62.6 33.8 1.0 27.2 62.0 UK Bus/Central North America UK Rail 16.2 1.1 24.9 42.2 22.0 1.7 21.1 44.8 • Post-tax deficit of £71.9m (2010: £145.5m) • Deficit reduction from asset outperformance and CPI switch • Accounting value of pension assets, liabilities and costs will continue to vary with market fluctuations and assumptions • Rail – risks mitigated with obligations limited to contributions payable over duration of franchises • Bus – schemes closed to new entrants and contributions have stabilised

19. Summary • Results ahead of original expectations • Positive management action underpins profitability • Operational excellence • Organic growth • Acquisition turnaround opportunities • Rail franchise opportunities • Cost control • Financial discipline • Positive outlook for 2011/12 • Encouraging start to the new financial year

20. Sir Brian SouterChief Executive

21. Winning new customers • Positive environment for public transport • Rising fuel prices driving modal shift • High growth on all Mega products • New rail franchise opportunities • Clarity on bus and rail regulatory framework • Commercial model at heart of future delivery

22. Budget travel • UK: c.60 towns and cities, c.3 million passengers a year • North America: five US hubs, c.60 towns and cities, c.10 million passengers since 2006

23. megabus.com North America network

24. Market Demographics megabus.com North America Customer Profile Previous Modes Key Market Student/Young Professional Key Market Car Travel Source: Online tracking survey by Stagecoach Group plc, December 2010 – March 2011 versus June 2009 – September 2009, new Megabus users only

25. megabus.com expansion strategy • Targeting megabus.com revenue of over US$110m in North America in 2011/12 • Considering accelerating roll-out • Short-term reduction in profitability • But prospect of good margin once established • Roll-out model options: • Direct Operation • Contract • Franchise

26. UK regulatory environment • UK Bus • Changes now largely known • Reduced BSOG, concessionary revenue and tendered revenue unwelcome - but lowers dependency on Government • Competition Commission findings manageable - will closely monitor developments • UK Rail • McNulty recommendations welcome • Potential for more commercial, customer-focused model • Excited by vertical integration opportunities • Work closely with Government and Network Rail to implement structural change

27. UK Bus • Winning new customers through: • Value fares strategy • Leading position in smartcard technology and products • Continued investment (e.g. hybrid buses) • Innovation: biomethane powered buses megabus.com: [x] locations megabus.com: [x] locations

28. UK Rail/Virgin Rail Group • Strengths • Stagecoach low-cost model good fit with McNulty recommendations • Continued high performance and customer satisfaction, above industry average • Passengers benefitting from fleet renewals and station investment • Opportunities • Discussions with DfT on extension to current WC franchise • VRG shortlisted for new WC franchise • Stagecoach shortlisted for Greater Anglia franchise • Potential for greater commercial freedom from franchise reform • Vertical integration megabus.com: [x] locations megabus.com: [x] locations

29. Current trading and outlook • Current trading in line with expectations • Outlook positive • Build on track record of winning new customers • Continue to focus on opportunities to deliver value to shareholders megabus.com: [x] locations megabus.com: [x] locations

30. Annual ResultsYear ended 30 April 2011 29 June 2011

31. Appendices

32. Divisional income statements Year ended 30 April 2011 UK Bus (Regional) £m UK Bus (London) £m North America £m UK Rail £m Virgin Rail Group (100%) £m Revenue Rail franchise premia Rail revenue support Other operating income Staff costs Fuel costs (i.e. diesel) Insurance and claims costs Depreciation Rolling stock costs – lease & maintenance Other operating leases Network Rail Electricity for trains Commissions payable Materials & consumables Other costs Operating profit 893.6 - - 14.7 (436.8) (107.9) (31.6) (60.8) - (8.6) - - - (36.2) (73.3) 153.1 133.6 - - 1.2 (99.6) (15.5) (5.0) (2.7) - (5.0) - - - (6.3) (6.6) (5.9) 295.1 - - 3.1 (126.0) (31.5) (24.8) (21.1) - (7.5) - - - (22.6) (45.4) 19.3 1,070.0 (284.8) 68.1 74.9 (271.3) (35.0) (5.4) (5.6) (185.7) (2.9) (196.0) (29.3) (25.5) (34.7) (88.4) 48.4 801.5 (159.2) 43.6 52.3 (130.3) (20.8) (3.9) (2.7) (214.9) - (134.1) (23.0) (37.9) (0.8) (89.2) 80.6

33. UK Bus (regional) revenue Year to 30 April 2011 £m Year to 30 April 2010 £m Change % Like-for-like Acquisitions: Islwyn (acquired January 2010) Disposals: Preston Bus (disposed January 2011) Start-ups: Rail replacement South (started May 2009) Total reported 883.0 2.0 6.9 1.7 893.6 864.7 0.7 7.7 2.3 875.4 2.1% 2.1%

34. North America revenue breakdown Year to 30 April 2011 US$m Year to 30 April 2010 US$m % Growth Scheduled service/line run/commuter School bus & contract Charter Megabus Sightseeing & tour Like-for-like revenue “Disposed” & closed operations and Canada fx Total North America 193.0 87.0 81.9 75.4 19.7 457.0 4.7 461.7 184.5 87.1 85.3 45.1 19.1 421.1 5.2 426.3 4.6% (0.1)% (4.0)% 67.2% 3.1% 8.5% (9.6)% 8.3%

35. Rail premium profiles South Western £m East Midlands £m West Coast £m Year to 31 March: 2011 2012 2013 2014 2015 2016 2017 (227.1) (316.6) (410.9) (468.5) (550.2) (636.9) (616.9) (31.7) (80.9) (118.3) (126.2) (189.2) - - (145.6) (203.2) - - - - - The above amounts are subject to adjustment for: (1) various inflation measures (2) risks borne by the Department for Transport (3) called options and (4) changes in Regulated Network Rail charges. The amounts shown above are based on estimated inflation and options called to date, and exclude revenue support.

36. Fuel Hedging UK Bus (Regional) UK Bus (London) North America UK Rail 2010/11 - average effective price (per litre) 2011/12 - % of forecast consumption hedged - average hedge price (per litre) 2012/13 - % of forecast consumption hedged - average hedge price (per litre) 2013/14 - % of forecast consumption hedged - average hedge price (per litre) 2014/15 - % of forecast consumption hedged - average hedge price (per litre) Market price (per litre) 36.9p 96% 42.0p 51% 42.5p - - - - 48.0p 46.7p 50% 44.3p 38% 46.1p 25% 48.3p 13% 53.0p 48.0p 53.3 cents 77% 60.3 cents 28% 77.4 cents - - - - 72.9 cents 34.2p 76% 40.6p 61% 46.1p 5% 54.6p - - 46.8p Market prices are as at 24 June 2011 Prices exclude premia payable on fuel caps, delivery margins, duty, taxes and Bus Services Operators Grant

37. Fuel costsLatest forecasts Fuel costs Volumes 2009/10 Actual £m 2010/11 Actual £m 2011/12 Forecast £m 2012/13 Forecast £m 2013/14 Forecast £m 2011/12 Forecast Litres m UK Bus (regional), excluding BSOG* UK Bus (regional), BSOG* UK Bus (regional), including BSOG* UK Bus (London), excluding BSOG* UK Bus (London), BSOG* UK Bus (London), including BSOG* North America South Western Trains East Midlands Trains Total (201.2) 80.0 (121.2) - - - (38.7) (5.0) (21.3) (186.2) (185.1) 78.7 (106.4) (25.7) 10.2 (15.5) (31.5) (6.4) (22.4) (182.2) (194.1) 78.7 (115.4) (45.6) 18.2 (27.4) (37.8) (7.2) (27.4) (215.2) (204.6) 68.7 (135.9) (47.0) 14.5 (32.5) (42.7) (7.2) (30.1) (248.4) (209.9) 68.7 (141.2) (47.3) 14.5 (32.8) (42.0) (7.2) (30.6) (253.8) 189.0 42.4 75.6 12.0 50.6 369.6 Market prices are as at 24 June 2011, when Brent Crude was US$105 per barrel Forecast costs for the unhedged element of fuel are based on 24 June 2011 spot prices Above costs include delivery margins, duty and taxes and exclude 3rd party fuel costs The forecasts are based on the latest announced duty rates and BSOG rates and in the absence of any announcements, rates are assumed to remain constant. * Bus Services Operators Grant (“BSOG”) represents a rebate of an element of fuel duty costs in respect of certain UK Bus Services.

38. Definitions • Like-for-like amounts are derived, on a constant currency basis, by comparing the relevant year-to-date amount with the equivalent prior year period for those businesses and individual operating units that have been part of the Group throughout both periods. • Operating profit or loss for a particular business unit or division within the Group refers to profit or loss before net finance income/charges, taxation, intangible asset expenses, exceptional items and restructuring costs. • Operating margin for a particular business unit or division within the Group means operating profit or loss as a percentage of revenue. • Exceptional items means items which individually or, if of a similar type, in aggregate need to be disclosed by virtue of their nature, size or incidence in order to allow a proper understanding of the underlying financial performance of the Group. • Gross debt is borrowings as reported on the consolidated balance sheet, adjusted to exclude accrued interest and the effect of fair value hedges on the carrying value of borrowings, and to include the effect of foreign exchange derivatives that synthetically convert an element of borrowings from one currency to another.  • Net debt (or net funds) is the net of cash and gross debt.

39. Annual ResultsYear ended 30 April 2011 29 June 2011