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Shepherd Neame

Since 1698 Britain’s Oldest Brewer

Faversham, Kent

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Capital Structure

•  Shepherd Neame is a private limited family controlled business •  We have two classes of shares

–  11,458,000 £1 ‘A’ shares – PLUS listed –  68,000,000 2p ‘B’ shares – Restricted transfer rights

•  Each share carries one vote

•  Each share ranks pari passu for dividend

•  We adopt a best practice Corporate Governance Structure

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Board : Non Executives

Miles Templeman Chairman Aged 64

Chairman : Nominations Committee Ex. Director General IoD

Ex Managing Director : Whitbread Beer Company

James Leigh-Pemberton Aged 55

Senior Independent Non-Executive Chairman: Audit Committee

Chief Executive : Credit Suisse UK

Oliver Barnes Aged 61

Chairman : Remuneration Committee Corporate Law Partner : Travers Smith

Randall Nicol Aged 65

Pension Trustee Ex Scottish Solicitor

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Board : Executive

Jonathan Neame Chief Executive

Aged 48 Chairman : British Beer and Pub Association

Non Executive : St. Austell Brewery

George Barnes Nigel Bunting Graeme Craig Tom Falcon Mark Rider Aged 58 Aged 45 Aged 41 Aged 43 Aged 36 Property and Retail Director Sales and Production and Finance and Tenanted Director Non-Executive Director : Marketing Director Distribution Director IT Director Chartered Surveyor Davy & Co Ltd Previously : Previously : Previously :

Previously : Convenience Director Director of Strategy and Head of Finance, Various management PepsiCo Process Excellence Food positions in SN Maersk Company Ltd J Sainsbury plc

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SN is a family controlled integrated beer and pub business, operating 355 pubs, inns and hotels in London

and the South East 311 are owned freehold

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We invest continuously in our pubs to maximise the opportunity to drive food and accommodation sales

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We continue to develop the food offer in our pubs

•  New development chef within Tenancies

Food LFL

10.9%

2012

Ave spend / head £11.23 Spend / head growth

23.1%

Managed Houses

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We continue to refurbish our letting rooms to drive occupancy and RevPAR

Accommodation LFL

7.0%

2012

RevPAR £43 RevPAR growth

13.2%

Managed Houses

•  476 letting rooms at year end: –  Managed Houses 246 –  Tenanted 230

•  we operate individual inns and hotels with character. We are not –  A branded hotel chain –  An operator of identical

rooms –  A ‘budget’ operator

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This has led to continued strong delivery across Managed Houses and the Tenanted Estate

Managed Houses

0.7%

7.4% 7.6%

2.7%

12.6%

10.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2010 2011 2012

LFL sales Ave. EBITDAR / Pub growth

Tenanted Estate

(3.8)%(3.0)%

0.3%

4.1%

0.8%

2.7%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2010 2011 2012

LFL EBITDAR Ave. EBITDAR / Pub growth

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We brew, market and sell a portfolio of premium ales, craft and world lagers beers. This portfolio is aligned to growth

segments within the beer market

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Consistent performance of core brands now complemented by smaller brands

Volume Growth 5.7%

2012

2.3%

2011

(0.9)%

2010 Volume Growth

20.4%

2012

16.8%

2011

8.4%

2010

Volume Growth (9.1)%

2012

3.9%

2011

18.8%

2010 Good performance from smaller brands

2011/12 was a 53 week year 2010/11 and 2009/10 were 52 week years

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We have supported our Brands with sponsorship activities around arts, music, entertainment and sporting events

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We continue to outperform the national beer market through growth in premium bottled ale and world lager

•  Growth of premium bottled ale –  Spitfire

•  World Lagers –  Asahi

•  Craft –  Samuel Adams replacing

Holsten Export

Total Beer Volume Growth

4.8% 4.0%5.6%

(1.2)%

6.3%

-2.7%

5.2%

2.6%

3.9%

(3.1)%

4.6%

(0.9)%

(6.7)%(6.9)%

(2.4)%

2008 2009 2010 2011 2012

SN Total Own beer Total Market

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We are Britain’s Oldest Brewery but we operate a modern, highly

efficient, high quality brewing and logistics operation

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…To optimise efficiency and maintain product quality to highest standard

•  41 awards won for quality since 2008

•  12 awards won in 2012 including: –  BBI Gold medal: 1698 –  International Beer

Challenge Gold medal: Late Red

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We continue to invest in people and process to mitigate cost inflation…

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In 2012 we reported record turnover, record EBITDA and record beer sales

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Performance - Highlights

Turnover 133.0

121.3

2012 £m

2011 £m

9.6

%

Operating Profit before exceptional items

12.7

12.3

3.7 Net Finance Costs

(4.3)

(4.3)

Net Exceptional Items

0.6 (1.5) Profit Before Tax

9.1 6.5

39.7

Tax Rate

23.3

32.2 Basic EPS before exceptional items

49.8

46.2

7.8

Full Year Dividend per share 24.5

23.8

2.9

2011/12 was a 53 week year 2010/11 was a 52 week year

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123.2

119.5

9.61

3.8

(64.9) (75.8)

Strong asset base supports higher short-term leverage. In 2011 we revalued our estate and advised of a £68m surplus to book value

Fixed Assets (Book Value) 198.6

185.7

2012 £m

2011 £m

Other assets and Liabilities

0.4 (1.3)

Net debt Shareholders Funds

Net Debt : EBITDA

3.4

Gearing

62%

54%

Net asset per £1 share 9.33

•  Full year pro-forma: –  Net debt : EBITDA 3.1 times –  Net debt £60m

•  Loan to book value of fixed assets 38% Full year pro-forma: removes the impact of acquisitions in 2012

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Our strategy is to develop an asset backed, cash generative business model to deliver sustainable earnings, to drive growth

in net assets and dividends for shareholders

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This strategy continues to drive growth in net assets and dividends for shareholders

10p

15p

20p

25p

30p

35p

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Div

iden

d pe

r sha

re

£4

£6

£8

£10

£12

£14

Net

ass

ets

per s

hare

Dividend per shareNet Assets per shareNet Assets per share adjusted for 2004 & 2011 pub valuations

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Why ICAP?

•  Shepherd Neame ‘A’ shares have been traded on secondary or over the counter markets for over 30 years –  including Rule 535, 165, 4.2 of old LSE

•  We migrated to J.P. Jenkins … then Ofex … now ICAP •  We believe the exchange offers

–  a clear and transparent regulatory framework –  a cost effective trading platform