Whitbread PLC — AGM Information 2019

May 31, 2019

THIS CIRCULAR AND ANY ACCOMPANYING TENDER FORM AND FORM OF PROXY ARE IMPORTANT AND REQUIRE YOUR IMMEDIATE ATTENTION.

If you are in any doubt as to the action you should take, you are recommended to seek your own independent financial advice immediately from your stockbroker, bank manager, solicitor, accountant or other appropriate independent financial adviser duly authorised under the Financial Services and Markets Act 2000 if you are resident in the United Kingdom or, if not, from another appropriately authorised independent financial adviser.

If you sell or have sold or otherwise transferred all of your Ordinary Shares before 1.00 p.m. on 19 July 2019, please forward this Circular (but not any personalised Form of Proxy or Tender Form) as soon as possible to the purchaser or transferee or to the bank, stockbroker or other agent through whom the sale or transfer was effected, for delivery to the purchaser or transferee. However, no documents should be forwarded or sent in or into any Restricted Jurisdiction. If you sell or have sold or otherwise transferred part only of your holding of Ordinary Shares, you should retain this Circular and any Form of Proxy and Tender Form and consult the bank, stockbroker or other agent through whom the sale or transfer was effected.

VHIT BREAD

WHITBREAD PLC

(Incorporated and registered in England and Wales with registered number 04120344)

Proposed return of up to £2,000,000,000 to shareholders by way of tender offer for up to 43,466,603 ordinary shares

Potential share consolidation and additional share buyback authority

Notice of General Meeting

Your attention is drawn to the letter from the Chairman of the Company which is set out in Part I (Letter from the Chairman) of this Circular and which contains the recommendation from the Board that you vote in favour of the resolutions to be proposed at the General Meeting referred to below.

None of the Company, its Directors, officers, employees or advisers or their respective affiliates makes any recommendation to any Qualifying Shareholder whether to tender or refrain from tendering any or all of its, his or her Ordinary Shares in the Tender Offer and none of them has authorised any person to make any such recommendation. Shareholders are urged to evaluate carefully all information in this Circular and the Tender Form, consult their own investment and tax advisers and make their own decisions as to whether to tender Ordinary Shares, and, if so, the number of Ordinary Shares to tender.

The Tender Offer will open on 20 June 2019 and will close at 1.00 p.m. on 19 July 2019, unless such dates are altered by means of an announcement through a Regulatory Information Service, and will only be available to Qualifying Shareholders on the Record Date. The procedure for participating in the Tender Offer is set out in Part III (Details of the Tender Offer) of this Circular. If you hold your Ordinary Shares in certificated form and wish to tender any such Ordinary Shares for purchase by Morgan Stanley under the Tender Form must be completed, signed and returned, together with your share certificate(s) and/or other document(s) of title, in accordance with the instructions printed thereon, on or after 20 June 2019 and so as to be received by post or (during normal business hours only) by hand by the Receiving Agent at Link Asset Services, Corporate Actions, The Registry, 34 Beckenham, Kent BR3 4TU by not later than 1.00 p.m. on 19 July 2019. If you hold your Ordinary Shares in uncertificated form and wish to tender any such Ordinary Shares for purchase by Morgan Stanley under the Tender Offer, you must make your tender electronically through CREST on or after 20 June 2019 and so that the relevant TTE Instruction settles by not later than 1.00 p.m. on 19 July 2019.

7KH DYDLODELOLW\ RI WKH 7HQGHU 2IIHU WR 6KDUHKROGHUV ZKR DUH QRW UHVLGHQW LQ WKH 8QLWHG .LQJGRP PD\ EH DIIHFWHG E\ WKH ODZV RI WKH UHOHYDQW MXULVGLFWLRQ LQ ZKLFK WKH\ DUH ORFDWHG 6KDUHKROGHUV ZKR DUH QRW UHVLGHQW LQ WKH 8QLWHG .LQJGRP VKRXOG UHDG SDUDJUDSK RI 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU RI WKLV &LUFXODU DQG VKRXOG LQIRUP WKHPVHOYHV DERXW DQG REVHUYH DQ\ DSSOLFDEOH OHJDO RU UHJXODWRU\ UHTXLUHPHQWV ,Q DGGLWLRQ WKH DWWHQWLRQ RI 6KDUHKROGHUV ZKR DUH UHVLGHQW LQ WKH 8QLWHG 6WDWHV LV GUDZQ WR WKH 1RWLFH IRU 86 6KDUHKROGHUV RQ SDJH RI WKLV &LUFXODU

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

7KH 7HQGHU 2IIHU LV FRQGLWLRQDO RQ DSSURYDO IURP 6KDUHKROGHUV RI FHUWDLQ PDWWHUV ZKLFK LV EHLQJ VRXJKW DW WKH *HQHUDO 0HHWLQJ 1RWLFH RI WKH *HQHUDO 0HHWLQJ WR EH KHOG DW &KXUFK +RXVH &RQIHUHQFH &HQWUH 'HDQ¶V <DUG :HVWPLQVWHU /RQGRQ 6:3 1= DW SP RQ -XQH RU DV VRRQ WKHUHDIWHU DV WKH &RPSDQ\¶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

3OHDVH UHDG WKH ZKROH RI WKLV &LUFXODU \$ VXPPDU\ RI WKH DFWLRQ WR EH WDNHQ E\ 6KDUHKROGHUV LV VHW RXW LQ SDUDJUDSK RI 3DUW , /HWWHU IURP WKH &KDLUPDQ RI WKLV &LUFXODU DQG LQ WKH DFFRPSDQ\LQJ 1RWLFH RI *HQHUDO 0HHWLQJ

7KLV &LUFXODU LV D FLUFXODU UHODWLQJ WR WKH SURSRVHG 5HWXUQ RI 9DOXH ZKLFK KDV EHHQ SUHSDUHG LQ DFFRUGDQFH ZLWK WKH /LVWLQJ 5XOHV PDGH XQGHU VHFWLRQ \$ RI WKH )LQDQFLDO 6HUYLFHV DQG 0DUNHWV \$FW

-3 0RUJDQ 6HFXULWLHV SOF ZKLFK FRQGXFWV LWV 8. LQYHVWPHQW EDQNLQJ DFWLYLWLHV DV -3 0RUJDQ &D]HQRYH? ³-3 0RUJDQ &D]HQRYH´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

0RUJDQ 6WDQOH\ &R ,QWHUQDWLRQDO SOF ³*0RUJDQ 6WDQOH*´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

\$SDUW IURP WKH UHVSRQVLELOLWLHV DQG OLDELOLWLHV LI DQ\ ZKLFK PD\ EH LPSRVHG RQ -3 0RUJDQ &D]HQRYH DQG 0RUJDQ 6WDQOH\ WKH ³)LQDQFLDO \$GYLVHUV´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¶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

127,&( )25 86 6+\$5(+2/'(56

7KH 7HQGHU 2IIHU UHODWHV WR VHFXULWLHV LQ D QRQ86 FRPSDQ\ ZKLFK LV UHJLVWHUHG LQ WKH 8. DQG LV VXEMHFW WR WKH GLVFORVXUH UHTXLUHPHQWV UXOHV DQG SUDFWLFHV DSSOLFDEOH WR FRPSDQLHV OLVWHG LQ WKH 8. ZKLFK GLIIHU IURP WKRVH RI WKH 86 LQ FHUWDLQ PDWHULDO UHVSHFWV 7KLV &LUFXODU KDV EHHQ SUHSDUHG LQ DFFRUGDQFH ZLWK 8. VW\OH DQG SUDFWLFH IRU WKH SXUSRVH RI FRPSO\LQJ ZLWK (QJOLVK ODZ DQG WKH /LVWLQJ 5XOHV DQG 86 6KDUHKROGHUV VKRXOG UHDG WKLV HQWLUH &LUFXODU LQFOXGLQJ 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU DQG 3DUW ,9 7D[DWLRQ RI WKLV &LUFXODU 7KH ILQDQFLDO LQIRUPDWLRQ UHODWLQJ WR WKH &RPSDQ\ ZKLFK LV DYDLODEOH IRU UHYLHZ RQ WKH &RPSDQ\¶V ZHEVLWH KDV QRW EHHQ SUHSDUHG LQ DFFRUGDQFH ZLWK JHQHUDOO\ DFFHSWHG DFFRXQWLQJ SULQFLSOHV LQ WKH 86 DQG WKXV PD\ QRW EH FRPSDUDEOH WR ILQDQFLDO LQIRUPDWLRQ UHODWLQJ WR 86 FRPSDQLHV

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

,W PD\ EH GLIILFXOW IRU 86 6KDUHKROGHUV WR HQIRUFH FHUWDLQ ULJKWV DQG FODLPV DULVLQJ LQ FRQQHFWLRQ ZLWK WKH 7HQGHU 2IIHU XQGHU 86 IHGHUDO VHFXULWLHV ODZV VLQFH WKH &RPSDQ\ LV ORFDWHG RXWVLGH WKH 86 DQG PRVW RI LWV RIILFHUV DQG GLUHFWRUV PD\ UHVLGH RXWVLGH WKH 86 ,W PD\ QRW EH SRVVLEOH WR VXH D QRQ86 FRPSDQ\ RU LWV RIILFHUV RU GLUHFWRUV LQ D QRQ86 FRXUW IRU YLRODWLRQV RI 86 VHFXULWLHV ODZV ,W DOVR PD\ not be possible to compel a non-US company or its affiliates to subject themselves to a US court's judgment.

The receipt of cash pursuant to the Tender Offer by a Shareholder who is a US person may be a taxable transaction for US federal income tax purposes. Paragraph 2 of Part IV (Taxation) of this Circular sets out a guide to certain US tax consequences of the Tender Offer for Shareholders under current US law. However, each such Shareholder should consult and seek individual advice from an appropriate professional adviser.

To the extent permitted by applicable law and in accordance with normal UK practice, the Company, Morgan Stanley or any of their respective affiliates, may make certain purchases of, or arrangements to purchase, Ordinary Shares outside the United States during the period in which the Tender Offer remains open for participation, including sales and purchases of Ordinary Shares effected by Morgan Stanley acting as market maker in the Ordinary Shares. These purchases, or other arrangements, may occur either in the open market at prevailing prices or in private transactions at negotiated prices. In order to be excepted from the requirements of Rule 14e-5 under the US Exchange Act by virtue of Rule 14e-5(b)(12) thereunder, such purchases, or arrangements to purchase, must comply with applicable English law and regulation, including the Listing Rules, and the relevant provisions of the US Exchange Act. Any information about such purchases will be disclosed as required in the UK and the US and, if required, will be reported via a Regulatory Information Service and will be available on the London Stock Exchange website at www.londonstockexchange.com.

While the Tender Offer is being made available to Shareholders in the US, the right to tender Ordinary Shares is not being made available in any jurisdiction in the making of the Tender Offer or the right to tender such Ordinary Shares would not be in compliance with the laws of such jurisdiction.

This Circular has not been approved, disapproved or otherwise recommended by the US Securities and Exchange Commission or any US state securities commission and such authorities have not confirmed the accuracy or determined the adequacy of this Circular. Any representation to the contrary is a criminal offence in the US.

Dated 31 May 2019

Contents

	Page
EXPECTED TIMETABLE FOR TENDER OFFER
Part LETTER FROM THE CHAIRMAN
Part II QUESTIONS AND ANSWERS ON THE RETURN OF VALUE
Part III DETAILS OF THE TENDER OFFER
Part IV TAXATION
Part V POTENTIAL FURTHER STAGE OF THE RETURN OF VALUE
Part VI ADDITIONAL INFORMATION
Part VII DEFINITIONS
NOTICE OF GENERAL MEETING

WHERE TO FIND HELP

You will find answers to some of the questions most often asked by shareholders about tender offers and the procedure for participating in the Tender Offer in Part II (Questions and answers on the Return of Value) of this Circular. If you have further questions on the Return of Value more generally, there is a Shareholder Helpline available between the hours of 9.00 a.m. and 5.30 p.m. (London time) Monday to Friday (excluding UK public holidays).

The Shareholder Helpline number is 0344 855 2327. Calls are charged at the standard geographic rate and will vary by provider. Calls from outside the UK will be charged at the applicable international rate.

Please note that, for legal reasons, the Shareholder Helpline will only be able to provide information contained in this Circular and the Tender Form and will be unable to give advice on the merits of the Return of Value or to provide financial, investment or taxation advice.

EXPECTED TIMETABLE FOR TENDER OFFER

Each of the times and dates in the table below is indicative only and may be subject to change by Whitbread, in which event details of the new times and dates will be notified to Shareholders by announcement through a Regulatory Information Service.

Latest time and date for receipt of Forms of Proxy for the General Meeting	2.45 p.m. on 17 June 2019
General Meeting (See Note 2)	2.45 p.m. on 19 June 2019
Tender Offer opens (subject to the passing at the General Meeting of Resolution 1 set out in the Notice of General Meeting)	20 June 2019
Latest time and date for receipt of Tender Forms and share certificates or other documents of title for tendered certificated Ordinary Shares (i.e. close of the Tender Offer)	1.00 p.m. on 19 July 2019
Latest time and date for settlement of TTE Instructions for tendered uncertificated Ordinary Shares (i.e. close of the Tender Offer)	1.00 p.m. on 19 July 2019
Record Date for the Tender Offer	6.00 p.m. on 19 July 2019
Announcement of the Strike Price and the results of the Tender Offer	22 July 2019
Unconditional Date for the Tender Offer and purchase of Ordinary Shares under the Tender Offer	23 July 2019
CREST accounts credited with unsuccessfully tendered uncertificated Ordinary Shares	24 July 2019
CREST accounts credited in respect of Tender Offer proceeds for uncertificated Ordinary Shares	30 July 2019
Cheques despatched, and (where applicable) Bacs payments made, in respect of Tender Offer proceeds for certificated Ordinary Shares	30 July 2019
Return of share certificates in respect of unsuccessful tenders of certificated Ordinary Shares	30 July 2019
Despatch of balance share certificates in respect of unsold Ordinary Shares in certificated form	30 July 2019

Notes:

• 1. All references to times in the timetable above are to London times.
• 1. The General Meeting will commence at the stated time or as soon thereafter as the Company's AGM convened for that date has concluded or been adjourned.

Part I LETTER FROM THE CHAIRMAN

WHITBREAD PLC

(Incorporated and registered in England and Wales with No. 04120344)

Directors:

Adam Crozier (Chairman) Alison Brittain (Chief Executive Officer) Nicholas Cadbury (Group Finance Director) Louise Smalley (Group HR Director) Richard Gillingwater (Senior Independent Director) David Atkins (Non-executive Director) Frank Fiskers (Non-executive Director) Chris Kennedy (Non-executive Director) Deanna Oppenheimer (Non-executive Director) Susan Taylor Martin (Non-executive Director)

Registered Office: Whitbread Whitbread Court Houghton Hall Business Park Porz Avenue Dunstable Bedfordshire 115 5XF

31 May 2019

Dear Shareholder,

Tender Offer

1. BACKGROUND TO AND BENEFITS OF THE TENDER OFFER

1.1 Background to the Tender Offer

On 3 January 2019, the Group completed the disposal of Costa to Coca-Cola (the "Disposal") for an enterprise value of £3.9 billion. After adjustment for transaction costs, the net cash proceeds from the Disposal were £3.8 billion (the "Net Cash Proceeds"). On the same date, Whitbread announced its agreement to use up to £380 million of the Net Cash Proceeds to make a one-off contribution to the Group's defined benefit pension scheme.

At the Company's Capital Markets Day held on 13 February 2019, Whitbread announced that £300 million of the Net Cash Proceeds would be retained to fund a previously committed acquisition of hotels in Germany, which is expected to complete in February 2020, and that approximately £500 million of the Net Cash Proceeds would be retained to reduce Whitbread's net financial indebtedness. Whitbread further announced its intention to return a total of at least £2.5 billion of the Net Cash Proceeds to Shareholders, subject to any more value-creating alternative uses for the cash.

As a first phase, approximately £480 million has already been returned to Shareholders through the repurchase of Ordinary Shares pursuant to the Company's share buyback programme which completed on 10 May 2019 (the "Share Buyback Programme").

The Board has decided that the appropriate second phase is to conduct a Tender Offer to return up to a further £2 billion (the "Return of Value"). Shareholders are therefore being invited to tender some or all of their Ordinary Shares for purchase on the terms and subject to the conditions set out in this Circular.

Shareholders may decide not to participate fully or partially in the Tender Offer for a number of reasons, including their view of the potential for the Company to increase in the future. If the full £2 billion is not returned through the Tender Offer, the Board will consider a possible third phase to return any remaining surplus cash following completion of the Tender Offer.

Shareholders should read the whole of this Circular and not rely solely on the information in this letter.

1.2 Why is Whitbread pursuing the Tender Offer?

In line with the Company's announcement to return at least £2.5 billion of cash to Shareholders, we have considered the different ways of returning these funds, and have consulted with Shareholders on the different methods which are typically used, including a special dividend or a "B" share scheme. Following that consideration and consultation, the Board concluded that a Tender Offer is the best way to return a significant amount of capital in a short space of time, taking account of the relative costs,

FRPSOH[LW\ DQG WLPHIUDPHV RI WKH YDULRXV SRVVLEOH PHWKRGV DV ZHOO DV WKH OLNHO\ WD[ WUHDWPHQW IRU 6KDUHKROGHUV

%HQHILWV RI WKH 7HQGHU 2IIHU IRU 6KDUHKROGHUV

7KH EHQHILWV RI WKH 7HQGHU 2IIHU IRU 6KDUHKROGHUV DV D ZKROH DUH WKDW

• LW LV DYDLODEOH WR DOO 4XDOLI\LQJ 6KDUHKROGHUV UHJDUGOHVV RI WKH VL]H RI WKHLU KROGLQJV
• LW SURYLGHV 4XDOLI\LQJ 6KDUHKROGHUV ZKR ZLVK WR UHGXFH WKHLU KROGLQJV RI 2UGLQDU\ 6KDUHV ZLWK DQ RSSRUWXQLW\ WR GR VR DW D PDUNHWGULYHQ SULFH ZLWK WKH SRVVLELOLW\ RI D PRGHVW SUHPLXP DQG
• 6KDUHKROGHUV ZKR ZLVK WR UHWDLQ WKHLU FXUUHQW LQYHVWPHQW LQ 2UGLQDU\ 6KDUHV DUH QRW UHTXLUHG WR SDUWLFLSDWH LQ WKH 7HQGHU 2IIHU

7KH 7HQGHU 2IIHU ZLOO UHGXFH WKH QXPEHU RI 2UGLQDU\ 6KDUHV LQ LVVXH DQG VR VKRXOG DVVXPLQJ HDUQLQJV VWD\ WKH VDPH KDYH D SRVLWLYH LPSDFW RQ WKH *URXS¶V HDUQLQJV SHU VKDUH DV WKH &RPSDQ\ LQWHQGV WR FDQFHO DOO RI WKH 2UGLQDU\ 6KDUHV DFTXLUHG LQ FRQQHFWLRQ ZLWK WKH 7HQGHU 2IIHU

3ULFLQJ RI WKH 7HQGHU 2IIHU

\$V H[SODLQHG LQ SDUDJUDSK EHORZ 4XDOLI\LQJ 6KDUHKROGHUV ZLOO EH DEOH WR VHOHFW WKH SULFH DW ZKLFK WKH\ ZLVK WR WHQGHU WKHLU 2UGLQDU\ 6KDUHV IRU SXUFKDVH ZLWKLQ D UDQJH RI SULFHV ZKLFK DUH EDVHG RQ DQG H[SUHVVHG E\ UHIHUHQFH WR WKH DYHUDJH PDUNHW SULFH DW ZKLFK WKH 2UGLQDU\ 6KDUHV WUDGH NQRZQ DV WKH ³YROXPHZHLJKWHG DYHUDJH SULFH´ RU ³9:\$3´? LQ WKH ILYH 7UDGLQJ 'D\V XS WR DQG LQFOXGLQJ WKH &ORVLQJ 'DWH \$V H[SODLQHG LQ SDUDJUDSK EHORZ WKH 9:\$3EDVHG SULFHV LQ WKH 3ULFH 5DQJH H[WHQG LQ RQH SHU FHQW LQFUHPHQWV? IURP D IODW 9:\$3EDVHG SULFH ZLWK QR SUHPLXP RU GLVFRXQW? WR D SULFH WKDW LV D IRXU SHU FHQW SUHPLXP RYHU WKH 9:\$3EDVHG SULFH 7KH SULFH SDLG LQ WKH 7HQGHU 2IIHU ZLOO EH GHWHUPLQHG DV GHVFULEHG LQ SDUDJUDSK EHORZ DQG LV VXEMHFW WR WKH 3ULFH &DS GHVFULEHG LQ WKDW SDUDJUDSK

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

:KLOH ZH H[SHFW WKH 3ULFH 5DQJH WR WUDFN WKH PDUNHW SULFH RI DQ 2UGLQDU\ 6KDUH LW LV KRZHYHU DOVR D WHUP RI WKH 7HQGHU 2IIHU WKDW QR 2UGLQDU\ 6KDUHV ZLOO EH DFTXLUHG DW D SULFH WKDW H[FHHGV D 3ULFH &DS RI SHU 2UGLQDU\ 6KDUH D SULFH WKDW UHSUHVHQWV WKH DSSUR[LPDWH YROXPHZHLJKWHG DYHUDJH SULFH RI 2UGLQDU\ 6KDUHV IRU WKH ODVW GD\V EHLQJ WKH SHULRG IROORZLQJ WKH &RPSDQ\¶V DQQRXQFHPHQW RI LWV SUHOLPLQDU\ UHVXOWV IRU WKH ILQDQFLDO \HDU HQGHG )HEUXDU\ RQ \$SULO XS WR DQG LQFOXGLQJ WKH /DWHVW 3UDFWLFDEOH 'DWH? SOXV D SUHPLXP RI SHU FHQW? 7HQGHUV DW SULFHV WKDW H[FHHG WKH 3ULFH &DS ZLOO EH GLVUHJDUGHG IRU WKH SXUSRVH RI WKH 7HQGHU 2IIHU

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

Additional information about the pricing structure and terms of the is set out in paragraph 2 below and in Part III (Details of the Tender Offer) of this Circular.

1.5 General Meeting to approve the Tender Offer and the potential further stage of the Return of Value

The Tender Offer will require the approval of Shareholders at a general meeting of the Company, which will be held at Church House Conference Centre, Dean's Yard, Westminster, London SW1P 3NZ on 19 June 2019 at 2.45 p.m. or as soon thereafter as the Company's AGM convened for that date has concluded or been adjourned (the "General Meeting"). A notice convening the General Meeting is set out at the end of this Circular.

There is no guarantee that the Tender Offer will return the full sum of £2 billion to Qualifying Shareholders. If the full £2 billion is not returned through the Tender Offer, the Board will at that point consider whether and how best to return the remaining amount to Shareholders, subject to any more value-creating alternative uses for the cash. The potential further stage of the Return of Value could include a special dividend (the "Special Dividend") or an extension of the Share Buyback Programme. We are therefore also taking the opportunity at the General Meeting to consider certain other matters which would require shareholder approval if a Special Dividend were to be paid or if the Share Buyback Programme were to be extended, including:

• a resolution authorising the Board to effect a consolidation and sub-division of the Company's . share capital (the "Share Consolidation"), which may be appropriate if a Special Dividend is paid to ensure that the market price of a New Ordinary Share immediately after the payment of the Special Dividend would be approximately equal to the market price of an Ordinary Share immediately beforehand; and
• a resolution authorising the Company to purchase up to a maximum of 8,693,320 Ordinary . Shares, representing approximately 4.99 per cent. of the Issued Ordinary Share Capital as at the Latest Practicable Date, which would only be used to return to Shareholders any portion of the £2 billion of the Net Cash Proceeds not returned through the Tender Offer (the "Additional Buyback Authority"). This Additional Buyback Authority would be in addition to the General Buyback Authority, described in paragraph 3 below, for which approval will be sought at the Company's AGM convened for 19 June 2019.

By requesting these authorities now, the Board is seeking to ensure that the Company will be able to act quickly and without the delay and cost of convening a further general meeting, if the Board does subsequently decide to use either a Special Dividend or an extension of the Share Buyback Programme to return all or any portion of the £2 billion not returned by the Tender Offer. Further information about the Share Consolidation and the Additional Buyback Authority is set out in Part V (Potential further stage of the Return of Value) of this Circular.

The purpose of this letter is to provide details of the Tender Offer and the Return of Value and to explain why the Board considers these proposals to be in the best interests of the Company and the Shareholders as a whole. The Directors recommend that you vote in favour of the resolutions to be proposed at the General Meeting, as they intend to do in respect of their own beneficial holdings of Ordinary Shares, being in aggregate 100,646 Ordinary Shares, representing approximately 0.06 per cent. of the Issued Ordinary Share Capital as at the Latest Practicable Date.

2. THE TENDER OFFER

2.1 Overview of the Tender Offer

It is proposed that up to 43,466,603 Ordinary Shares (representing approximately 24.99 per cent. of the Issued Ordinary Share Capital as at the Latest Practicable Date) be purchased under the Tender Offer, for a maximum aggregate cash consideration of £2 billion.

All Qualifying Shareholders who are on the Register at 6.00 p.m. on 19 July 2019 are entitled, but not required, to tender some or all of their Ordinary Shares for purchase by Morgan Stanley, acting as principal, at a price (or prices) within the permitted range of VWAP-based prices set out in this Circular.

Subject to satisfaction of the conditions to the Tender Offer, Ordinary Shares which are successfully tendered under the Tender Offer will be purchased at a single price per Ordinary Share (referred to as WKH ³6WULNH 3ULFH´? ZKLFK ZLOO EH GHWHUPLQHG DW WKH HQG RI WKH 7HQGHU 2IIHU SHULRG LQ DFFRUGDQFH ZLWK WKH PHFKDQLVP VXPPDULVHG EHORZ DQG VHW RXW LQ PRUH GHWDLO LQ 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU RI WKLV &LUFXODU

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¶V LVVXHG VKDUH FDSLWDO

7KH 7HQGHU 2IIHU LV WR EH HIIHFWHG E\ 0RUJDQ 6WDQOH\ DFWLQJ DV SULQFLSDO DQG QRW DV DJHQW QRPLQHH RU WUXVWHH? SXUFKDVLQJ 2UGLQDU\ 6KDUHV IURP 6KDUHKROGHUV 0RUJDQ 6WDQOH\ LQ WXUQ KDV WKH ULJKW WR UHTXLUH WKH &RPSDQ\ WR SXUFKDVH IURP LW DQG FDQ EH UHTXLUHG E\ WKH &RPSDQ\ WR VHOO WR LW VXFK 2UGLQDU\ 6KDUHV DW WKH 6WULNH 3ULFH XQGHU DQ RSWLRQ DJUHHPHQW WKH ³2SWLRQ \$JUHHPHQW´? GHWDLOV RI ZKLFK DUH VHW RXW LQ SDUDJUDSK RI 3DUW 9, \$GGLWLRQDO ,QIRUPDWLRQ RI WKLV &LUFXODU \$OO 2UGLQDU\ 6KDUHV SXUFKDVHG E\ WKH &RPSDQ\ IURP 0RUJDQ 6WDQOH\ SXUVXDQW WR WKH 2SWLRQ \$JUHHPHQW ZLOO EH FDQFHOOHG

2SWLRQV DYDLODEOH WR 6KDUHKROGHUV LQ UHVSHFW RI WKH 7HQGHU 2IIHU

4XDOLI\LQJ 6KDUHKROGHUV DUH QRW REOLJHG WR WHQGHU DQ\ 2UGLQDU\ 6KDUHV LI WKH\ GR QRW ZLVK WR GR VR ,I QR DFWLRQ LV WDNHQ E\ 4XDOLI\LQJ 6KDUHKROGHUV WKHUH ZLOO EH QR FKDQJH WR WKH QXPEHU RI 2UGLQDU\ 6KDUHV WKDW WKH\ KROG DQG WKH\ ZLOO UHFHLYH QR FDVK DV D UHVXOW RI WKH 7HQGHU 2IIHU

4XDOLI\LQJ 6KDUHKROGHUV ZKR ZLVK WR SDUWLFLSDWH LQ WKH 7HQGHU 2IIHU FDQ WHQGHU WKHLU 2UGLQDU\ 6KDUHV LQ WKH IROORZLQJ ZD\V

• \$? VXEPLW D WHQGHU WR VHOO VRPH RU DOO RI WKHLU 2UGLQDU\ 6KDUHV DW ZKDWHYHU SULFH LV XOWLPDWHO\ GHWHUPLQHG XQGHU WKH WHUPV RI WKH 7HQGHU 2IIHU WR EH WKH 6WULNH 3ULFH UHIHUUHG WR DV D ³6WULNH 3ULFH 7HQGHU´? ZLWKRXW VHOHFWLQJ RQH RI WKH VSHFLILHG 9:\$3EDVHG SULFHV ZLWKLQ WKH 3ULFH 5DQJH RU
• %? VXEPLW D WHQGHU WR VHOO VRPH RU DOO RI WKHLU 2UGLQDU\ 6KDUHV DW RQH RI WKH IROORZLQJ VSHFLILHG 9:\$3EDVHG SULFHV ZLWKLQ WKH 3ULFH 5DQJH
  • L? DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\? WKH ³0LQLPXP 3ULFH´
  • LL? DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\
  • LLL? DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\
  • LY? DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\? DQG
  • Y? DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\? WKH ³0D[LPXP 3ULFH´

WKH SULFHV LQ L? WR Y? EHLQJ WKH ³3ULFH 5DQJH´? RU

&? VXEPLW D WHQGHU DW PRUH WKDQ RQH RI WKH 9:\$3EDVHG SULFHV ZLWKLQ WKH 3ULFH 5DQJH ZKLFK FRXOG LQFOXGH D 6WULNH 3ULFH 7HQGHU

7KH WRWDO QXPEHU RI 2UGLQDU\ 6KDUHV WHQGHUHG E\ DQ\ 4XDOLI\LQJ 6KDUHKROGHU PXVW QRW H[FHHG WKH WRWDO QXPEHU RI 2UGLQDU\ 6KDUHV UHJLVWHUHG LQ WKH QDPH RI WKDW 4XDOLI\LQJ 6KDUHKROGHU DW WKH 5HFRUG 'DWH )RU H[DPSOH D 4XDOLI\LQJ 6KDUHKROGHU PD\ GHFLGH WR WHQGHU SHU FHQW RI LWV KLV RU KHU 2UGLQDU\ 6KDUHV DW WKH 0D[LPXP 3ULFH DQG SHU FHQW DV D 6WULNH 3ULFH 7HQGHU EXW D WHQGHU SXUSRUWLQJ WR RIIHU IRU VDOH SHU FHQW RI D 4XDOLI\LQJ 6KDUHKROGHU¶V 2UGLQDU\ 6KDUHV DW WKH 0D[LPXP 3ULFH DQG SHU FHQW DV D 6WULNH 3ULFH 7HQGHU ZRXOG EH LQYDOLG

2QFH PDGH DQ\ WHQGHU RI 2UGLQDU\ 6KDUHV ZLOO EH LUUHYRFDEOH

Any tender other than a Strike Price Tender must be made at one of the specified VWAP-based prices within the Price Range, as indicated on the Tender Form (in the case of certificated Ordinary Shares) and as explained in paragraph 3.3 of Part III (Details of the Tender Offer) of this Circular (in the case of uncertificated Ordinary Shares).

The Tender Offer will open on 20 June 2019 (unless such date is altered) and tenders must not be submitted before that date. The Tender Offer will close at 1.00 p.m. on 19 July 2019 and tenders received after that time will not be accepted (unless the Closing Date is extended).

Shareholders should note that the Tender Offer is conditional on, among other things, the passing at the General Meeting of Resolution 1 set out in the Notice of General Meeting.

2.3 Price which Shareholders will receive in respect of Ordinary Shares they successfully tender

A single price per Ordinary Share, known as the Strike Price, will be paid in respect of all Ordinary Shares purchased by Morgan Stanley pursuant to the Tender Offer. The Strike Price will be set after the Closing Date, once all of the tenders have been reviewed and the prices in pence per Ordinary Share to which the VWAP-based prices in the Price Range correspond have been calculated.

The Maximum Price at which Ordinary Shares may be tendered is a percentage above the average market value of Whitbread's Ordinary Shares in the five Trading Days up to and including the Closing Date. The Board has also, however, set a limit of £50.00 per Ordinary Share as the highest monetary amount at which any Ordinary Share will be purchased under the Tender Offer (referred to as the "Price Cap").

Once the tenders have been reviewed and the prices in pence per Ordinary Share to which the VWAP-based prices in the Price Range correspond have been calculated, any tenders at a price in excess of the Price Cap (any such price being an "Excluded Price") will be disregarded and excluded from the Tender Offer, even if such tenders were priced at a level below the VWAP-based Maximum Price within the Price Range.

The Strike Price will be:

• (A) the lowest price per Ordinary Share in the Price Range at which any valid tender is made (but excluding tenders at Excluded Prices) which would enable the greatest number of Ordinary Shares (whether or not such number equals, exceeds or is less than 43,466,603 Ordinary Shares) to be purchased for a total cost equal to at least £2 billion;
• (B) if the aggregate value at the highest price of any valid tender (excluding tenders at Excluded Prices) of all Ordinary Shares validly tendered by Shareholders is less than £2 billion, the highest price at which any valid tender (excluding tenders at Excluded Prices) is made; or
• (C) if no valid tenders are received other than Strike Price Tenders (being tenders to sell at whatever the Strike Price is determined to be), the Minimum Price (save where the Minimum Price is an Excluded Price, in which case no Ordinary Shares will be acquired under the Tender Offer),

and acceptance of tenders will then be subject, where applicable, to the scaling-down arrangements summarised in paragraph 2.4 of this letter and set out in paragraphs 2.16 to 2.19 of Part III (Details of the Tender Offer) of this Circular.

2.4 Number of Ordinary Shares that will be purchased pursuant to the Tender Offer

All Shareholders who tender Ordinary Shares at a price below or at the Strike Price or as Strike Price Tenders will receive the Strike Price for all successful tenders accepted subject, where applicable, to the scaling-down arrangements described in paragraphs 2.16 to 2.19 of Part III (Details of the Tender Offer) of this Circular. Accordingly, where scaling-down applies there is no guarantee that all of the Ordinary Shares which are tendered by Qualifying Shareholders below or at the Strike Price or as Strike Price Tenders will be accepted for purchase. Any tenders which are at a price that exceeds the Strike Price will be rejected.

If more than 43,466,603 Ordinary Shares are validly tendered by Shareholders at a price below or at the Strike Price (or as Strike Price Tenders) (the "Volume Limit"), or if the aggregate value of the Ordinary Shares validly tendered by Shareholders at a price below or at the Strike Price (or as Strike Price Tenders) is higher than £2 billion (the "Value Limit"), a detailed mechanism will be applied in

order to scale down acceptances of validly tendered Ordinary Shares and to determine whether and the extent to which individual tenders are accepted. The order of priority and the nature of the scalingdown arrangements vary depending on whether the Tender Offer is over-subscribed by volume, by value or by both volume and value.

These scaling-down arrangements are relatively complex and should be read in full. They are set out in full in paragraphs 2.16 to 2.19 of Part III (Details of the Tender Offer) of this Circular.

By way of summary:

• · where neither the Volume Limit is exceeded, all Ordinary Shares validly tendered at or below the Strike Price (including as Strike Price Tenders) will be accepted and tendered at the Strike Price;
• · where only the Value Limit is exceeded, tenders are scaled down so that their aggregate value is below the Value Limit and, in doing that, priority is given to Ordinary Shares tendered below the Strike Price or as a Strike Price Tender, with alternative arrangements applying where the Strike Price is at the Minimum Price. Further information on the scaling-down arrangements that apply in this situation is contained at paragraphs 2.16 and 2.19 of Part III (Details of the Tender Offer) of this Circular;
• · where only the Volume Limit is exceeded, tenders are scaled down so that the aggregate number of Ordinary Shares is below the Volume Limit and, in doing that, priority is given to Ordinary Shares tendered at or below the Strike Price (including as Strike Price Tenders) and to Ordinary Shares within the first 24.99 per cent. of a Shareholder's holding. Further information on the scaling-down arrangements that apply in this situation is contained at paragraphs 2.17 and 2.19 of Part III (Details of the Tender Offer) of this Circular; and
• . where both the Value Limit and the Volume Limit are exceeded, tenders are scaled down so that neither limit is exceeded. To do that, where the Strike Price is above the Minimum Price, priority is given to Ordinary Shares tendered below the Strike Price or as a Strike Price Tender to ensure that the Value Limit is respected. If further scaling-down is still needed to respect the Volume Limit, then, in achieving that, priority is given to Ordinary Shares within the first 24.99 per cent. of a Shareholder's holding. Alternative arrangements apply where the Strike Price is at the Minimum Price. Further information on the scaling-down arrangements that apply in this situation is contained at paragraphs 2.18 and 2.19 of Part III (Details of the Tender Offer) of this Circular.

2.5 Guaranteed Entitlement

If the Tender Offer is over-subscribed by volume, by volume and value, Qualifying Shareholders who tendered at the lower price points (by submitting Strike Price Tenders below the Strike Price) will be guaranteed a minimum level of participation in the Tender Offer (Known as their Guaranteed Entitlement). The precise level of this Guaranteed Entitlement will vary depending on the nature and extent of the over-subscription and whether the Strike Price is at or above the Minimum Price.

Like the scaling-down arrangements, these Guaranteed Entitlement arrangements are relatively complex and should be read in full. They are set out in full in paragraphs 2.16 to 2.19 of Part III (Details of the Tender Offer) of this Circular.

2.6 Circumstances in which the Tender Offer may not proceed

There is no guarantee that the Tender Offer will take place. The Tender Offer is conditional on the passing of Resolution 1 set out in the Notice of General Meeting. The Tender Offer is also conditional on the other matters specified in paragraph 2.1 of Part III (Details of the Tender Offer) of this Circular, including:

• (A) receipt of valid tenders in respect of at least 1,738,664 Ordinary Shares (representing approximately one per cent. of the Issued Ordinary Share Capital as at the Latest Practicable Date) by 1.00 p.m. on the Closing Date and there continuing to be valid tenders in respect of at least such number of Ordinary Shares following any exclusion of tenders at Excluded Prices as described in paragraph 2.3 above;
• (B) the Strike Price being at or above the nominal value of an Ordinary Share; and

&? WKH 7HQGHU 2IIHU QRW KDYLQJ EHHQ WHUPLQDWHG LQ DFFRUGDQFH ZLWK LWV WHUPV DQG WKH &RPSDQ\ KDYLQJ FRQILUPHG WR 0RUJDQ 6WDQOH\ WKDW LW ZLOO QRW H[HUFLVH LWV ULJKW WR UHTXLUH 0RUJDQ 6WDQOH\ QRW WR SURFHHG ZLWK WKH 7HQGHU 2IIHU

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¶V EDODQFH VKHHW

5HVXOWV DQQRXQFHPHQW DQG 8QFRQGLWLRQDO 'DWH

\$V VHW RXW LQ WKH H[SHFWHG WLPHWDEOH RQ SDJH RI WKLV &LUFXODU LW LV H[SHFWHG WKDW WKH 6WULNH 3ULFH DQG WKH UHVXOWV RI WKH 7HQGHU 2IIHU ZLOO EH DQQRXQFHG RQ -XO\ )ROORZLQJ WKDW DQQRXQFHPHQW WKH 7HQGHU 2IIHU ZLOO VWLOO EH VXEMHFW WR WKH UHPDLQLQJ &RQGLWLRQV GHVFULEHG LQ SDUDJUDSK RI 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU RI WKLV &LUFXODU \$W VXFK WLPH DV WKH 7HQGHU 2IIHU EHFRPHV XQFRQGLWLRQDO ZKLFK LV H[SHFWHG WR EH RQ -XO\ WKH &RPSDQ\ ZLOO PDNH DQ DQQRXQFHPHQW WR WKDW HIIHFW WKURXJK D 5HJXODWRU\ ,QIRUPDWLRQ 6HUYLFH 6HWWOHPHQW LV WKHQ H[SHFWHG WR WDNH SODFH DV VHW RXW LQ WKH WLPHWDEOH RQ SDJH RI WKLV &LUFXODU DQG DV SURYLGHG IRU LQ 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU RI WKLV &LUFXODU

)XOO WHUPV DQG FRQGLWLRQV RI WKH 7HQGHU 2IIHU

)XOO GHWDLOV RI WKH 7HQGHU 2IIHU LQFOXGLQJ WKH WHUPV DQG FRQGLWLRQV RQ ZKLFK LW LV PDGH DUH VHW RXW LQ 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU RI WKLV &LUFXODU

6RPH TXHVWLRQV DQG DQVZHUV UHODWHG WR WKH 5HWXUQ RI 9DOXH DUH VHW RXW LQ 3DUW ,, 4XHVWLRQV DQG DQVZHUV RQ WKH 5HWXUQ RI 9DOXH RI WKLV &LUFXODU

\$FWLRQ WR EH WDNHQ

4XDOLI\LQJ 6KDUHKROGHUV DUH QRW REOLJHG WR WHQGHU DQ\ RI WKHLU 2UGLQDU\ 6KDUHV LI WKH\ GR QRW ZLVK WR GR VR ,I QR DFWLRQ LV WDNHQ E\ 4XDOLI\LQJ 6KDUHKROGHUV WKHUH ZLOO EH QR FKDQJH WR WKH QXPEHU RI 2UGLQDU\ 6KDUHV WKH\ KROG DQG WKH\ ZLOO UHFHLYH QR FDVK DV D UHVXOW RI WKH 7HQGHU 2IIHU

<RX VKRXOG UHDG WKH ZKROH RI WKLV &LUFXODU DQG QRW UHO\ VROHO\ RQ WKH LQIRUPDWLRQ LQ WKLV OHWWHU 6KDUHKROGHUV VKRXOG UHIHU WR SDUDJUDSK EHORZ DQG WR WKH IXOO GHWDLOV RI WKH DSSOLFDEOH SURFHGXUHV DQG UHODWHG WLPLQJV VHW RXW LQ 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU RI WKLV &LUFXODU IRU WKH DFWLRQ WR EH WDNHQ LQ UHVSHFW RI WKH 7HQGHU 2IIHU

7KH %RDUG LV PDNLQJ QR UHFRPPHQGDWLRQ WR 6KDUHKROGHUV LQ UHODWLRQ WR WKHLU SDUWLFLSDWLRQ LQ WKH 7HQGHU 2IIHU LWVHOI :KHWKHU RU QRW 6KDUHKROGHUV GHFLGH WR WHQGHU DOO RU DQ\ RI WKHLU 2UGLQDU\ 6KDUHV ZLOO GHSHQG RQ DPRQJ RWKHU WKLQJV WKHLU YLHZ RI :KLWEUHDG¶V SURVSHFWV DQG WKHLU RZQ LQGLYLGXDO FLUFXPVWDQFHV LQFOXGLQJ WKHLU WD[ SRVLWLRQ 6KDUHKROGHUV QHHG WR PDNH WKHLU RZQ GHFLVLRQ DQG DUH UHFRPPHQGHG WR FRQVXOW D GXO\ DXWKRULVHG LQGHSHQGHQW DGYLVHU

\$87+25,7,(6 72 %8< %\$&. 25',1\$5< 6+\$5(6

\$ JHQHUDO DXWKRULW\ WR EX\ EDFN XS WR D PD[LPXP RI 2UGLQDU\ 6KDUHV UHSUHVHQWLQJ DSSUR[LPDWHO\ SHU FHQW RI WKH ,VVXHG 2UGLQDU\ 6KDUH &DSLWDO DW WKDW WLPH ZDV VRXJKW DQG DSSURYHG DW WKH &RPSDQ\¶V ODVW \$*0 KHOG RQ -XQH 7KH &RPSDQ\ KDV ERXJKW EDFN 2UGLQDU\ 6KDUHV XQGHU WKLV DXWKRULW\ SXUVXDQW WR WKH 6KDUH %X\EDFN 3URJUDPPH DV described in paragraph 1 of this letter. The Board does not intend to undertake any buybacks of Ordinary Shares between publication of this Circular and the announcement of the results of the Tender Offer, expected to be on 22 July 2019.

3.1 General Buyback Authority

Approval is being sought at the Company's AGM convened for 19 June 2019 for a general authority to buy back up to a maximum of 17,385,835 Ordinary Shares, representing approximately 10 per cent. of the Issued Ordinary Share Capital (the "General Buyback Authority").

If the Tender Offer is successfully implemented, the Issued Ordinary Share Capital will be reduced. Other than for market purchases of Ordinary Shares comprised in any further stage of the Return of Value (which the Board only intends to make under the General Buyback Authority once the Additional Buyback Authority, if granted to the Company at the General Meeting, has been utilised in full), the Board intends to restrict its use of the General Buyback Authority to market purchases of Ordinary Shares representing a maximum of 10 per cent. of the Issued Ordinary Share Capital as it is after completion of the Tender Offer and any utilisation of the Additional Buyback Authority.

3.2 Additional Buyback Authority

At the General Meeting, approval will be sought for a further authority to buy back up to a maximum of 8,693,320 Ordinary Shares, representing approximately 4.99 per cent. of the Issued Ordinary Share Capital as at the Latest Practicable Date (the "Additional Buyback Authority"). The Additional Buyback Authority will only be used:

• (A) for the purposes of any further stage of the Return of Value, that is, in the event, and then only to the extent, that the Tender Offer has returned less than the full sum of £2 billion to Shareholders; and
• (B) to the extent that Ordinary Shares acquired under the Additional Buyback Authority would not, when aggregated with the number of Ordinary Shares acquired under the Tender Offer, exceed 43,466,603 Ordinary Shares.

Further information on the Additional Buyback Authority is contained in paragraph 1 of Part V (Potential further stage of the Return of Value) of this Circular.

4. WHITBREAD'S STRATEGIC PLANS FOLLOWING THE DISPOSAL AND UPCOMING TRADING UPDATE

At Whitbread's Capital Markets Day on 13 February 2019, the Company outlined its plans to create long-term shareholder value as a focused and vertically-integrated international hotel business through growth in earnings, combined with a strong return on capital. The plan is summarised as:

• growing and innovating in Premier Inn's core UK market;
• · focusing on Whitbread's strengths to grow internationally; and
• · optimising Whitbread's capabilities to support long-term growth.

4.1 Growing and innovating in Premier Inn's core UK market

Whitbread created Premier Inn in 2004 through the combination of the Travel Inn and Premier Lodge businesses. Premier Inn has subsequently grown to be the clear market leader in the UK with over 74,000 rooms. The Premier Inn proposition targets the largest part of the market: the domestic business and leisure traveller. Across the UK and internationally, Whitbread now has clear long-term network potential of over 170,000 rooms.

The UK hotel market is large, with a total of over 700,000 rooms. Of these just under half are operated by smaller, non-branded, independent businesses. Premier Inn has consistently won market share from independents by adding new capacity, which delivers a consistently superior experience and excellent value-for-money. Given the size of the market and level of fragmentation, Whitbread sees potential for at least 110,000 rooms in the UK.

4.2 Focusing on Whitbread's strengths to grow internationally

Whitbread believes there is a long-term opportunity to replicate in the German hotel market the success Premier Inn has had in the UK. Whitbread has already committed to acquire a pipeline of more than 6,000 rooms in Germany. Whitbread is targeting acceleration of the international network through organic investment in freehold and leasehold properties, combined with further acquisitions, to at least 60,000 rooms over the longer-term.

Acquisition opportunities are assessed based on the attractiveness of the catchment, the specific location of hotels within a catchment, the size of the hotel and the potential for the hotel to be converted into the Premier Inn format. To support investment plans in Germany, Whitbread is deleveraging in the short-term, which, based on our FFO (funds from operations) for the 12 months to 30 August 2018, provides future leverage capacity of around £800 million at or around our current long-term target gearing ratio level.

There can be no certainty that Whitbread will complete further acquisitions in Germany nor as to the timing of any successful acquisitions. No material acquisition opportunity is currently the subject of advanced stage discussions.

4.3 Optimising Whitbread's capabilities to support long-term growth

Whitbread continues to leverage its scale to secure cost efficiencies, helping to offset the structural cost pressures in the hotel market which disproportionately impact the independent sector. This focus on cost, along with Whitbread's property expertise, underpins the consistent quality and competitive advantage enjoyed by Premier Inn.

Whitbread has a strong track record of earning a strong return on capital at a premium to its cost of capital. Given the compelling opportunities to invest capital through the UK and internationally, Whitbread's capital structure priority is to provide financial flexibility to invest. Whitbread's aim is to continue to operate with a strong balance sheet to provide access to lowcost incremental funding, underpinned by its balanced freehold approach to property.

This flexible approach to property is an integral part of Premier Inn's unique model. Through detailed network planning and disciplined investment in attractive freehold hotels, Premier Inn has become the largest hotel network in the UK.

4.4 Whitbread as a focused, vertically-integrated international hotel business

Following the Disposal, Whitbread's business is focused on Premier Inn. Whitbread has conducted a rigorous review of its unique, vertically-integrated model, which combines the ownership of property, hotel operations, the Premier Inn brand and inventory distribution. Over the last 15 years, this unique approach has enabled Premier Inn to grow at a significantly faster pace than competitors, deliver a consistently superior customer experience and generate a strong return on invested capital for shareholders.

Given the scale of the opportunity to invest in new hotel capacity in the UK and Germany, Whitbread believes its unique vertically-integrated model is the optimal approach to both access this growth opportunity and create sustainable value for shareholders over the long-term.

Since the Disposal, this focus as a vertically-integrational hotel business has given Whitbread a different profile with investors as well as within the hotel industry, and we have been contacted by and met with parties who are keen to increase their understanding of our business.

As a "pure play" international hotel business, it is possible that, as some commentators have suggested, Whitbread may now be of greater interest to other parties pursuing acquisition strategies or partnerships in the hotel sector. There can of course be no certainty as to whether any such party may at any point be interested in any transaction with or involving Whitbread.

4.5 Upcoming Q1 2019 trading update

The Group will provide a trading update for Q1 2019 on 19 June 2019, the same day as the AGM. Subject to the passing of the relevant Resolution at the General Meeting, the Tender Offer will then open on 20 June 2019.

Confirmation 4.6

The Company confirms that it is not in possession of inside information for the purposes of Article 7 of the Market Abuse Regulation, including in relation to the matters in this paragraph 4.

5. DIVIDENDS

It is not expected that the Tender Offer will have any impact on Whitbread's dividend policy.

ও TAX

A guide to certain UK tax consequences of the Tender Offer for Shareholders under current UK law and HM Revenue & Customs practice is set out in paragraph 1 of Part IV (Taxation) of this Circular and a guide to certain US tax consequences of the Tender Offer for Shareholders under current US law is set out in paragraph 2 of Part IV (Taxation) of this Circular.

Shareholders who are subject to tax in a jurisdiction other than the UK or the US, or who are in any doubt as to the potential tax consequences of tendering their Ordinary Shares under the Tender Offer, are strongly recommended to consult their own independent professional advisers before tendering their Ordinary Shares under the Tender Offer.

Any Shareholder who is intending to accept the Tender Offer from the US, who has provided a US address or whose sale proceeds would be paid to an account maintained in the US is referred to the guide to certain aspects of the US information reporting and backup withholding rules set out under the heading "US information reporting and backup withholding" in paragraph 2 of Part IV (Taxation) of this Circular.

OVERSEAS SHAREHOLDERS 7

The attention of Overseas Shareholders is drawn to paragraph 6 of Part III (Details of the Tender Offer) of this Circular. In addition, the attention of Shareholders who are resident in the United States is drawn to the Notice for US Shareholders on page 2 of this Circular.

8. GENERAL MEETING

Implementation of the Tender Offer requires the approval of certain matters by Shareholders at a general meeting of the Company. Accordingly a notice is set out at the end of this Circular convening the General Meeting to be held at Church House Conference Centre, Dean's Yard, Westminster, London SW1P 3NZ at 2.45 p.m. on 19 June 2019 or as soon thereafter as the Company's AGM convened for that date has concluded or been adjourned.

Four resolutions will be proposed at the General Meeting. Three of the Resolutions are special resolutions, the passing of which requires at least 75 per cent. of the votes cast (whether in person or by proxy) to be in favour. One of the Resolutions is an ordinary resolution, the passing of which requires more than 50 per cent. of the votes cast (whether in person or by proxy) to be in favour.

Resolution 1, which is a special resolution, seeks authority to make market purchases of Ordinary Shares in connection with the Tender Offer. The Resolution specifies the maximum number of Ordinary Shares which may be acquired, and the maximum and minimum prices at which Ordinary Shares may be acquired, pursuant to this authority. The authority sought will expire on 31 December 2019.

Resolution 2, which is an ordinary resolution, seeks shareholder approval of the Share Consolidation which may be implemented in the event that all or part of any further stage of the Return of Value is undertaken by payment of a Special Dividend, as described in paragraph 2 of Part V (Potential further stage of the Return of Value) of this Circular.

Resolution 3, which is a special resolution, proposes that, conditional on the Share Consolidation taking effect, the articles of association of the Company be amended by substituting the nominal value of the New Ordinary Shares.

Resolution 4, which is a special resolution, seeks authority to make market purchases of Ordinary Shares for the purposes of any further stage of the Return of Value, as described in paragraph 1 of Part V (Potential further stage of the Return of Value) of this Circular. The Resolution specifies the maximum number of Ordinary Shares that may be acquired, and the maximum and minimum prices at

which Ordinary Shares may be acquired, pursuant to this authority. The authority sought will expire at the conclusion of the AGM of the Company to be held in 2020 or, if earlier, 18 September 2020.

9. ACTION TO BE TAKEN

9.1 Action Shareholders should take in relation to the General Meeting

Unless you have opted to register proxy appointments electronically, you will find enclosed with this Circular a Form of Proxy for use in connection with the General Meeting or any adjournment thereof. It is important that Shareholders have the opportunity to vote, even if they are unable to come to the General Meeting. Whether or not you intend to attend the General Meeting in person, you are requested to complete and return the Form of Proxy in accordance with the instructions printed on it so as to be received by the Registrar, Link Asset Services, at Link Asset Services, PXS, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, as soon as possible and, in any event, by not later than 2.45 p.m. on 17 June 2019 (or, in the case of an adjournment, not later than 48 hours (excluding non-Business Days) before the time fixed for the adjourned meeting).

If you hold Ordinary Shares in CREST, you may appoint a proxy by completing and transmitting a CREST Proxy Instruction in accordance with the procedures set out in the CREST Manual so that it is received by the Registrar, Link Asset Services (CREST Participant ID RA10), by not later than 2.45 p.m. on 17 June 2019 (or, in the case of an adjournment, not later than 48 hours (excluding non-Business Days) before the time fixed for the holding of the adjourned meeting).

Proxy appointments may also be submitted via the internet at www.whitbread-shares.com so that the appointment is received by not later than 2.45 p.m. on 17 June 2019 (or, in the case of an adjournment, not later than 48 hours (excluding non-Business Days) before the time fixed for the holding of the adjourned meeting).

Unless the Form of Proxy, CREST Proxy Instruction or electronic registration of proxy appointment (as applicable) is received by the relevant date and time specified above, it will be invalid. Completion and return of the Form of Proxy, the submission of a CREST Proxy Instruction or the electronic registration of a proxy appointment will not preclude you from attending and voting in person at the General Meeting if you wish to do so and are so entitled.

9.2 Action Shareholders should take in relation to the Tender Offer

Those Shareholders who wish to tender Ordinary Shares should note that the procedure for doing so depends on whether your Ordinary Shares are held in certificated form. The relevant procedures are summarised below. Full details of applicable procedures and related timings are set out in Part III (Details of the Tender Offer) of this Circular.

Shareholders who do not wish to sell any Ordinary Shares under the Tender Offer should take no action in relation to the Tender Form and should not make any TTE Instruction.

If you are in doubt about completion of the Tender Form or sending a TTE Instruction, please contact the Shareholder Helpline on 0344 855 2327. Calls are charged at the standard geographic rate and will vary by provider. Calls from outside the UK will be charged at the applicable international rate.

Please note that, for legal reasons, the Shareholder Helpline will only be able to provide information contained in this Circular and the Tender Form and will be unable to give advice on the merits of the Return of Value or to provide financial, investment or taxation advice.

(a) Ordinary Shares held in certificated form

Qualifying Shareholders who hold Ordinary Shares in certificated form and who wish to tender all or any of their Ordinary Shares should complete a Tender Form, in accordance with the instructions printed thereon and set out in Part III (Details of the Tender Offer) of this Circular, and return it, together with their share certificate(s) and/or other document(s) of title or (where applicable) a satisfactory indemnity in lieu thereof in respect of the tendered Ordinary Shares, on or after 20 June 2019 and so as to be received by post or (during normal business hours only) by hand by the Receiving Agent at Link Asset Services, Corporate Actions, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU by not later than 1.00 p.m. on 19 July 2019. Tender Forms submitted before the Tender Offer opens on 20 June 2019 will be treated as invalid.

(b) Ordinary Shares held in uncertificated form

Qualifying Shareholders who hold their Ordinary Shares in uncertificated form and who wish to tender all or any of their Ordinary Shares should tender electronically through CREST on or after 20 June 2019 so that the TTE Instruction settles by not later than 1.00 p.m. on 19 July 2019.

The CREST Manual may also assist you in making a TTE Instruction.

FINANCIAL ADVICE 10.

The Board has received financial advice from J.P. Morgan Cazenove and Morgan Stanley in relation to the Return of Value. In providing their financial advice, J.P. Morgan Cazenove and Morgan Stanley have relied upon the Board's commercial assessments.

11. RECOMMENDATION

The Board considers the Return of Value and the Resolutions to be in the best interests of Shareholders as a whole. Accordingly, the Board recommends that Shareholders vote in favour of the Resolutions to be proposed at the General Meeting, as the Directors intend to do for their respective individual beneficial holdings of, in aggregate, 100,646 Ordinary Shares, representing approximately 0.06 per cent. of the Issued Ordinary Share Capital as at the Latest Practicable Date.

The Board makes no recommendation to Shareholders in relation to participation in the Tender Offer itself. Whether or not Shareholders decide to tender all or any of their Ordinary Shares will depend on, among other things, their view of Whitbread's prospects and their own individual circumstances, including their tax position. Shareholders need to take their own decision and are recommended to consult their duly authorised independent advisers.

12. DIRECTORS' INTENTIONS

Each of the Directors has confirmed that he or she does not intend to tender through the Tender Offer any of his or her current individual beneficial holding of Ordinary Shares.

Yours faithfully

Adam Crozier Chairman

3DUW ,,

48(67,216 \$1' \$16:(56 21 7+( 5(7851 2) 9\$/8(

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

,6 7+(5( \$ 0((7,1* 72 \$33529( 7+( 7(1'(5 2))(5" +2: '2 , 927("

\$V WKH 7HQGHU 2IIHU UHTXLUHV WKH DSSURYDO RI 6KDUHKROGHUV D JHQHUDO PHHWLQJ RI WKH &RPSDQ\ KDV EHHQ FRQYHQHG IRU SP RQ -XQH DW &KXUFK +RXVH &RQIHUHQFH &HQWUH 'HDQ¶V <DUG :HVWPLQVWHU /RQGRQ 6:3 1= RU DV VRRQ WKHUHDIWHU DV WKH &RPSDQ\¶V \$*0 FRQYHQHG IRU WKDW GDWH KDV FRQFOXGHG RU EHHQ DGMRXUQHG 7KH 5HVROXWLRQ WR DSSURYH WKH 7HQGHU 2IIHU UHTXLUHV D PDMRULW\ RI SHU FHQW RU PRUH RI WKH YRWHV FDVW LQ RUGHU WR EH SDVVHG

\$OO 6KDUHKROGHUV DUH HQWLWOHG WR DWWHQG DQG YRWH DW WKH *HQHUDO 0HHWLQJ 6KDUHKROGHUV KDYH D FKRLFH ZKHWKHU WR DWWHQG WKH PHHWLQJ ,I \RX FKRRVH QRW WR DWWHQG ZH ZRXOG HQFRXUDJH \RX WR H[HUFLVH \RXU ULJKW WR YRWH DW WKH PHHWLQJ HLWKHU LI DSSOLFDEOH? E\ VLJQLQJ DQG UHWXUQLQJ WKH HQFORVHG )RUP RI 3UR[\ RU E\ VXEPLWWLQJ DQ HOHFWURQLF SUR[\ DSSRLQWPHQW YLD WKH LQWHUQHW DW ZZZZKLWEUHDGVKDUHVFRP RU LI \RX KROG \RXU 2UGLQDU\ 6KDUHV LQ XQFHUWLILFDWHG IRUP? E\ FRPSOHWLQJ DQG WUDQVPLWWLQJ D &5(67 3UR[\ ,QVWUXFWLRQ WR WKH 5HJLVWUDU /LQN \$VVHW 6HUYLFHV &5(67 3DUWLFLSDQW ,' 5\$? ,Q HDFK FDVH WKH SUR[\ DSSRLQWPHQW PXVW EH UHFHLYHG E\ QRW ODWHU WKDQ SP RQ -XQH

6+28/' , 7(1'(5 0< 25',1\$5< 6+\$5(6"

<RX VKRXOG PDNH \RXU RZQ GHFLVLRQ DV WR ZKHWKHU RU QRW \RX SDUWLFLSDWH LQ WKH 7HQGHU 2IIHU DQG DUH UHFRPPHQGHG WR FRQVXOW DQ DSSURSULDWH LQGHSHQGHQW DGYLVHU 7KH %RDUG PDNHV QR UHFRPPHQGDWLRQ WR 6KDUHKROGHUV LQ UHODWLRQ WR SDUWLFLSDWLRQ LQ WKH 7HQGHU 2IIHU LWVHOI :KHWKHU RU QRW \RX GHFLGH WR WHQGHU DOO RU DQ\ RI \RXU 2UGLQDU\ 6KDUHV ZLOO GHSHQG RQ DPRQJ RWKHU WKLQJV \RXU YLHZ RI :KLWEUHDG¶V SURVSHFWV DQG \RXU RZQ LQGLYLGXDO FLUFXPVWDQFHV LQFOXGLQJ \RXU WD[ SRVLWLRQ

:+\$7 '2 , 1((' 72 '2 1(;7"

)LUVW ZH ZRXOG HQFRXUDJH \RX HLWKHU LI DSSOLFDEOH? WR VLJQ DQG UHWXUQ WKH HQFORVHG )RUP RI 3UR[\ RU WR VXEPLW DQ HOHFWURQLF SUR[\ DSSRLQWPHQW RU LI \RX KROG \RXU 2UGLQDU\ 6KDUHV LQ XQFHUWLILFDWHG IRUP? WR WDNH WKH QHFHVVDU\ VWHSV ZLWKLQ &5(67 WR YRWH DW WKH *HQHUDO 0HHWLQJ

6HFRQGO\ \RX VKRXOG FRQVLGHU ZKHWKHU \RX ZDQW WR WHQGHU DOO RU DQ\ RI \RXU 2UGLQDU\ 6KDUHV

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 RI WKLV &LUFXODU

,I \RX GHFLGH WR WHQGHU 2UGLQDU\ 6KDUHV DQG \RX KROG WKRVH VKDUHV LQ XQFHUWLILFDWHG IRUP \RX VKRXOG UHDG SDUDJUDSK RI 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU RI WKLV &LUFXODU ZKLFK GHWDLOV VSHFLILF SURFHGXUHV DSSOLFDEOH WR WKH KROGHUV RI XQFHUWLILFDWHG 2UGLQDU\ 6KDUHV

\$0 , 2%/,*(' 72 7(1'(5 0< 25',1\$5< 6+\$5(6" :+\$7 +\$33(16 ,) , '21¶7 7(1'(5"

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

:,// , %( (17,7/(' 72 75\$'( 0< 25',1\$5< 6+\$5(6 '85,1* 7+( 7(1'(5 2))(5 3(5,2'"

• \$ ,I \RX GR QRW WHQGHU DQ\ RI \RXU 2UGLQDU\ 6KDUHV <RX ZLOO EH IUHH WR WUDGH \RXU 2UGLQDU\ 6KDUHV LQ WKH QRUPDO ZD\ GXULQJ WKH 7HQGHU 2IIHU SHULRG
• % ,I \RX WHQGHU DOO RI \RXU 2UGLQDU\ 6KDUHV ZKHWKHU LQ FHUWLILFDWHG RU XQFHUWLILFDWHG IRUP 2QFH \RX KDYH VXEPLWWHG \RXU WHQGHU \RX VKRXOG QRW WUDGH DQ\ RI \RXU 2UGLQDU\ 6KDUHV GXULQJ WKH 7HQGHU 2IIHU SHULRG
• & ,I \RX WHQGHU VRPH EXW QRW DOO RI \RXU 2UGLQDU\ 6KDUHV ZKHWKHU LQ FHUWLILFDWHG RU XQFHUWLILFDWHG IRUP 2QFH \RX KDYH VXEPLWWHG \RXU WHQGHU \RX VKRXOG RQO\ WUDGH LQ WKH QRUPDO ZD\ GXULQJ WKH 7HQGHU 2IIHU SHULRG WKRVH 2UGLQDU\ 6KDUHV ZKLFK KDYH QRW EHHQ WHQGHUHG SXUVXDQW WR WKH 7HQGHU 2IIHU

:+2 ,6 (/,*,%/( 72 3\$57,&,3\$7( ,1 7+( 7(1'(5 2))(5"

7KH 7HQGHU 2IIHU LV RSHQ WR ERWK SULYDWH DQG LQVWLWXWLRQDO 6KDUHKROGHUV DOLNH ZKR DUH RQ WKH 5HJLVWHU DW WKH 5HFRUG 'DWH )RU OHJDO DQG UHJXODWRU\ UHDVRQV ZH DUH XQDEOH WR PDNH WKH RSSRUWXQLW\ WR SDUWLFLSDWH LQ WKH 7HQGHU 2IIHU DYDLODEOH WR 6KDUHKROGHUV ZKR DUH UHVLGHQW LQ WKH 5HVWULFWHG -XULVGLFWLRQV

6KDUHKROGHUV UHVLGHQW RXWVLGH WKH 8. RU ZKR DUH QDWLRQDOV RU FLWL]HQV RI MXULVGLFWLRQV RWKHU WKDQ WKH 8. VKRXOG UHDG WKH LQIRUPDWLRQ VHW RXW LQ SDUDJUDSK RI 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU RI WKLV &LUFXODU

,Q DGGLWLRQ WKH DWWHQWLRQ RI 6KDUHKROGHUV ZKR DUH UHVLGHQW LQ WKH 8QLWHG 6WDWHV LV GUDZQ WR WKH 1RWLFH IRU 86 6KDUHKROGHUV RQ SDJH RI WKLV &LUFXODU

:+\$7 \$5( 0< 237,216 :+(1 , 7(1'(5"

<RX DUH QRW REOLJHG WR WHQGHU DQ\ RI \RXU 2UGLQDU\ 6KDUHV LI \RX GR QRW ZLVK WR GR VR 4XDOLI\LQJ 6KDUHKROGHUV ZKR GR ZLVK WR SDUWLFLSDWH LQ WKH 7HQGHU 2IIHU FDQ WHQGHU WKHLU 2UGLQDU\ 6KDUHV LQ WKH IROORZLQJ ZD\V

• \$? VXEPLW D WHQGHU DW ZKLFKHYHU RI WKH SULFHV ZLWKLQ WKH 3ULFH 5DQJH LV XOWLPDWHO\ GHWHUPLQHG WR EH WKH 6WULNH 3ULFH UHIHUUHG WR DV D ³6WULNH 3ULFH 7HQGHU´? WKDW LV D WHQGHU ZKLFK LV QRW PDGH DW RQH RI WKH VSHFLILHG SULFHV ZLWKLQ WKH 3ULFH 5DQJH
• %? VXEPLW D WHQGHU DW D VLQJOH VSHFLILHG SULFH ZLWKLQ WKH 3ULFH 5DQJH RU
• &? VXEPLW D WHQGHU DW PRUH WKDQ RQH RI WKH SULFHV ZLWKLQ WKH 3ULFH 5DQJH ZKLFK FRXOG LQFOXGH D 6WULNH 3ULFH 7HQGHU

7KH WRWDO QXPEHU RI 2UGLQDU\ 6KDUHV WKDW \RX WHQGHU PXVW QRW H[FHHG WKH WRWDO QXPEHU RI 2UGLQDU\ 6KDUHV UHJLVWHUHG LQ \RXU QDPH DW WKH 5HFRUG 'DWH \$V GHVFULEHG LQ 4XHVWLRQ EHORZ WKHUH FDQ EH QR FHUWDLQW\ WKDW DQ\ RU DOO RI WKH 2UGLQDU\ 6KDUHV WKDW \RX WHQGHU ZLOO EH DFFHSWHG IRU SXUFKDVH LQ WKH 7HQGHU 2IIHU

:+\$7 35,&,1* )2508/\$ :,// %( 86(' )25 7+( 7(1'(5 2))(5"

4XDOLI\LQJ 6KDUHKROGHUV ZLOO EH DEOH WR VHOHFW WKH SULFH DW ZKLFK WKH\ ZLVK WR WHQGHU WKHLU 2UGLQDU\ 6KDUHV IRU SXUFKDVH ZLWKLQ D UDQJH RI SULFHV ZKLFK DUH EDVHG RQ DQG H[SUHVVHG E\ UHIHUHQFH WR WKH DYHUDJH PDUNHW SULFH DW ZKLFK WKH 2UGLQDU\ 6KDUHV WUDGH NQRZQ DV WKH ³YROXPHZHLJKWHG DYHUDJH price" or "VWAP") in the five Trading Days up to and including the Closing Date. The VWAP-based prices in the Price Range extend (in one per cent. increments) from a flat VWAP-based price (with no premium or discount) to a price that is a four per cent. premium over the VWAP-based price.

The reason for using an average market price in the five Trading Days up to and including the Closing Date as the base for each price in the Price Range is to ensure that, as far as possible, the pricing of the Tender Offer remains connected to the then-market price of the Ordinary Shares. Setting a fixed price, or a fixed range, in pence per Ordinary Share at the Tender Offer would risk the tender price or range becoming disconnected from the prevailing market price, i.e. higher or lower than the market price at the time of the Tender Offer closing, which could mean that (where the market price is above the tender price or range) the offer would not be generally attractive to Shareholders and take-up would likely be low, or (where the market price is well below the tender price or range) the tendered shares would be purchased at a material premium to the prevailing market price, effectively at the expense of those Shareholders who choose not to tender. By contrast, this risk should be reduced by the dynamic pricing structure where the base for each price Range is set by taking an average of the actual VWAP trading prices over a five-day trading period up to and including the Closing Date. While we expect the Price Range to track the market price of an Ordinary Share, it is, however, also a term of the Tender Offer that no Ordinary Shares will be acquired at a price that exceeds a Price Cap of £50.00 per Ordinary Share (a price that represents the approximate volumeweighted average price of Ordinary Shares for the last 30 days (being the period following the Company's announcement of its preliminary results for the financial year ended 28 February 2019 on 30 April 2019 up to and including the Latest Practicable Date), plus a premium of 10 per cent.). Tenders at prices that exceed the Price Cap will be disregarded for the purpose of the Tender Offer.

The use of a dynamic VWAP-based pricing structure means that the absolute price in pounds and pence per Ordinary Share will not be known until after the Tender Offer has closed for acceptances. The Company will announce the absolute price to be paid to successfully participating Qualifying Shareholders as soon as this has been determined, which is expected to be on 22 July 2019, together with the results of the Tender Offer. During the calculation period for Average VWAP, the Company intends to publish on the investor microsite section of its website the Daily VWAP for each of the relevant Trading Days as soon as reasonably practicable on each day following trading closing.

Additional information about the pricing of the Tender Offer is set out in paragraph 2 of Part I (Letter from the Chairman) and in Part III (Details of the Tender Offer) of this Circular.

9. IF I TENDER MY ORDINARY SHARES, WHAT PRICE WILL I RECEIVE FOR EACH ORDINARY SHARE THAT I SELL?

A single price per Ordinary Share, known as the Strike Price, will be paid in respect of all Ordinary Shares purchased by Morgan Stanley pursuant to the Tender Offer.

The Strike Price will be set once the VWAP-based prices in the Price Range have been calculated and once tenders received have been reviewed.

No Ordinary Share will be acquired at any price that exceeds the Price Cap of £50.00. Accordingly, once the relevant calculations to determine the price Range in pence per Ordinary Share have been finalised following the Closing Date, all tenders made at any price in the Price Range that exceeds the Price Cap will be disregarded.

The Strike Price will be:

• (A) the lowest price per Ordinary Share in the Price Range at which any valid tender is made (but excluding tenders made at levels that are above the Price Cap, known as "Excluded Prices") which would enable the greatest number of Ordinary Shares (whether or not such number equals, exceeds or is less than 43,466,603 Ordinary Shares) to be purchased for a total cost equal to at least £2 billion;
• (B) if the aggregate value at the highest price of any valid tender (excluding tenders at Excluded Prices) of all Ordinary Shares validly tendered by Shareholders is less than £2 billion, the highest price of any valid tender (excluding tenders at Excluded Prices); or

(C) if no valid tenders are made other than Strike Price Tenders, the Minimum Price (save where the Minimum Price is an Excluded Price, in which case no Ordinary Shares will be acquired under the Tender Offer).

Once the Strike Price is set, the scaling-down arrangements set out in paragraphs 2.16 to 2.19 of Part III (Details of the Tender Offer) of this Circular will apply in circumstances where:

• (i) the aggregate value at the Strike Price of all Ordinary Shares validly tendered by Shareholders would exceed £2 billion (the "Value Limit"); and/or
• (ii) the aggregate number of all Ordinary Shares validly tendered by Shareholders at or below the Strike Price exceeds 43,466,603 Ordinary Shares (the "Volume Limit").

All Shareholders who tender Ordinary Shares at a price at or below the Strike Price (including as Strike Price Tenders) will receive the Strike Price for all successful tenders accepted subject, where applicable, to the scaling-down arrangements described in paragraphs 2.16 to 2.19 of Part III (Details of the Tender Offer) of this Circular.

Shares that you tender above the Strike Price will not be acquired.

10. HOW MANY ORDINARY SHARES CAN I TENDER?

There is no limit on how many Ordinary Shares you can tender, save that any Qualifying Shareholder should not seek to tender more than the total number of Ordinary Shares registered in the name of that Qualifying Shareholder at the Record Date.

There can, however, be no certainty that any or all of the Ordinary Shares that you tender will be accepted for purchase in the Tender Offer. First, your tender may be at a price that exceeds the Strike Price, meaning that it would be rejected. Secondly, even if your tender is at or below the Strike Price there are circumstances in which the terms of the Tender Offer will scale down your tender and, in those circumstances, not all of the Ordinary Shares that you tender will be acquired. This is principally where the Ordinary Shares tendered at or below the Strike Price would exceed the Value Limit and/or the Volume Limit described in the answer to Question 9 above. The scaling-down provisions of the Tender Offer are relatively complex and should be read in full. They are set out in detail in paragraphs 2.16 to 2.19 of Part III (Details of the Tender Offer) of this Circular.

11. WHAT IS MY GUARANTEED ENTITLEMENT?

The Guaranteed Entitlement is relevant in certain situations where the Tender Offer is over-subscribed by value and/or number of Ordinary Shares, that is where the Value Limit and/or the Volume Limit described in the answer to Question 9 above would be exceeded. In those situations, the Guaranteed Entitlement ensures that, depending on the price at which Ordinary Shares are tendered, each Qualifying Shareholder has some protected level of participation in the Tender Offer. The level of that guaranteed participation varies depending on the nature and/or extent of the over-subscription and whether the Strike Price is at or above the Minimum Price. Like the scaling-down provisions referred to in Question 10, these arrangements are relatively complex and should be read in full. They are set out in full in paragraphs 2.16 to 2.19 of Part III (Details of the Tender Offer) of this Circular.

12. WHEN WILL I RECEIVE PAYMENT?

Under the expected timetable of events set out in this Circular, it is anticipated that a cheque would be despatched to certificated Qualifying Shareholders or, where an appropriate instruction has been included in the Tender Form, a Bacs payment made, for the proceeds of any sale on 30 July 2019. CREST account holders would have their CREST accounts credited on 30 July 2019.

Certain payments made in connection with the Tender Offer may be subject to US backup withholding. All Qualifying Shareholders who choose to participate in the Tender Offer are referred to the guide to certain aspects of the US information reporting and backup withholding rules and the relevant forms required to be completed, if any, set out under the heading "US information reporting and backup withholding" in paragraph 2 of Part IV (Taxation) of this Circular.

13. WHAT DO I DO IF I HAVE SOLD OR TRANSFERRED ALL OF MY ORDINARY SHARES?

Please forward this Circular, together with the accompanying documents (but not any personalised Form of Proxy or Tender Form), at once to the purchaser or to the bank, stockbroker or other agent through whom the sale or transfer was effected, for delivery to the purchaser or transferee. Those documents should not, however, be forwarded to or sent in or into any Restricted Jurisdiction.

14. WHAT IS THE IMPACT ON EMPLOYEE SHARE OPTION SCHEMES AND SHARE PLANS?

Share options and awards which remain outstanding at the Record Date do not entitle the holders of such options and awards to participate in the Tender Offer. The Tender Offer will not affect the legal rights of the holders of such options and awards.

15. WHAT HAPPENS IF I HAVE LOST MY SHARE CERTIFICATE(S) AND/OR OTHER DOCUMENT(S) OF TITLE AND WISH TO PARTICIPATE IN THE TENDER OFFER?

If you hold 500 or more Ordinary Shares in certificated form in total as at the Record Date and you have lost the share certificate(s) in relation to any or all of your tendered Ordinary Shares, you will need to provide a letter of indemnity to the Company, a template for which can be obtained by writing to Link Asset Services. The Registry, 34 Beckenham Road. Beckenham, Kent BR3 4TU or by contacting the Shareholder Helpline, details of which are set out at the front of this Circular. You will then need to return the letter of indemnity, duly completed, to Link Asset Services with your Tender Form, on or after 20 June 2019 and so as to be received by Link Asset Services not later than 1.00 p.m. on 19 July 2019.

If you hold fewer than 500 Ordinary Shares in certificated form in total as at the Record Date and you have lost the share certificate(s) in relation to any or all of your tendered Ordinary Shares, there is no need to provide a letter of indemnity or any other documentation relating to the lost share certificate(s). Please be aware that, if, following submission of your Tender Form and prior to the Record Date, you acquire further Ordinary Shares which bring your total holding of Ordinary Shares in certificated form to 500 or more, but you have not provided a letter of indemnity relating to your lost share certificate(s), your tender may be rejected as an invalid tender.

16. WHAT IF I AM RESIDENT OUTSIDE THE UK?

Shareholders resident outside the UK, or who are nationals or citizens of jurisdictions other than the UK, should read the additional information set out in paragraph 6 of Part III (Details of the Tender Offer) of this Circular as there may be legal and regulatory restrictions on such Shareholders participating in the Tender Offer.

For legal and regulatory reasons we are unable to offer Shareholders who are resident in a Restricted Jurisdiction the ability to participate in the Tender Offer.

Shareholders in the United States should read the information in the Notice for US Shareholders on page 2 of this Circular and the information in paragraph 6 of Part III (Details of the Tender Offer) and paragraph 2 of Part IV (Taxation) of this Circular.

17. WHAT HAPPENS IF THE TENDER OFFER DOES NOT RETURN THE FULL AMOUNT OF CASH?

If the full £2 billion is not returned to Shareholders through the Tender Offer, the Board will consider whether and how best to return such balance to Shareholders in light of the circumstances prevailing following completion of the Tender Offer, including the level of take up of the extent of any amount not returned to Shareholders, the relative cost and convenience of available methods of returning the balance and any more value-creating alternative uses for the cash.

18. WHY ARE WE BEING ASKED TO APPROVE A SHARE CONSOLIDATION AND AN ADDITIONAL BUYBACK AUTHORITY?

If the full £2 billion is not returned through the Tender Offer, the Board will at that point consider whether and how best to return such balance to Shareholders, which could include a Special Dividend or an extension of the Share Buyback Programme. We are therefore also taking the opportunity at the General Meeting to consider certain other matters which would require shareholder approval if a Special Dividend were to be paid or if the Share Buyback Programme were to be extended, including:

· a resolution authorising the Board to effect a Share Consolidation, which may be appropriate if a Special Dividend is paid. The purpose of the Share Consolidation would be to seek to ensure WKDW WR WKH H[WHQW UHDVRQDEO\ SUDFWLFDEOH DQG VXEMHFW WR PDUNHW IOXFWXDWLRQV WKH PDUNHW SULFH RI RQH 1HZ 2UGLQDU\ 6KDUH LPPHGLDWHO\ DIWHU WKH SD\PHQW RI WKH 6SHFLDO 'LYLGHQG ZRXOG EH DSSUR[LPDWHO\ HTXDO WR WKH PDUNHW SULFH RI RQH 2UGLQDU\ 6KDUH LPPHGLDWHO\ EHIRUHKDQG 7KH WHUPV RI WKH UHOHYDQW UHVROXWLRQ RQO\ DOORZ WKH %RDUG WR XVH WKH DXWKRULW\ WR HIIHFW D 6KDUH &RQVROLGDWLRQ LQ FRQQHFWLRQ ZLWK DQ\ 6SHFLDO 'LYLGHQGV? SDLG IRU WKH SXUSRVHV RI DQ\ IXUWKHU VWDJH RI WKH 5HWXUQ RI 9DOXH DQG

D UHVROXWLRQ DXWKRULVLQJ WKH &RPSDQ\ WR SXUFKDVH XS WR D PD[LPXP RI 2UGLQDU\ 6KDUHV UHSUHVHQWLQJ DSSUR[LPDWHO\ SHU FHQW RI WKH ,VVXHG 2UGLQDU\ 6KDUH &DSLWDO DV DW WKH /DWHVW 3UDFWLFDEOH 'DWH ZKLFK ZRXOG RQO\ EH XVHG WR UHWXUQ WR 6KDUHKROGHUV DQ\ SRUWLRQ RI WKH ELOOLRQ QRW UHWXUQHG WKURXJK WKH 7HQGHU 2IIHU

%\ UHTXHVWLQJ WKHVH DXWKRULWLHV QRZ WKH %RDUG LV VHHNLQJ WR HQVXUH WKDW WKH &RPSDQ\ ZLOO EH DEOH WR DFW TXLFNO\ DQG ZLWKRXW WKH GHOD\ DQG FRVW RI FRQYHQLQJ D IXUWKHU JHQHUDO PHHWLQJ DW D ODWHU VWDJH LI WKH %RDUG GRHV VXEVHTXHQWO\ GHFLGH WR XVH HLWKHU D 6SHFLDO 'LYLGHQG RU DQ H[WHQVLRQ RI WKH 6KDUH %X\EDFN 3URJUDPPH WR UHWXUQ DOO RU DQ\ SRUWLRQ RI WKH ELOOLRQ QRW UHWXUQHG E\ WKH 7HQGHU 2IIHU

)XUWKHU LQIRUPDWLRQ DERXW WKH 6KDUH &RQVROLGDWLRQ DQG WKH \$GGLWLRQDO %X\EDFN \$XWKRULW\ LV VHW RXW LQ 3DUW 9 3RWHQWLDO IXUWKHU VWDJH RI WKH 5HWXUQ RI 9DOXH RI WKLV &LUFXODU

:+\$7 ,6 81,7(' 67\$7(6 ,1)250\$7,21 5(3257,1* \$1' %\$&.83 :,7++2/',1*" '2 , 1((' 72 ),// 287 \$1< )2506"

\$V VHW RXW XQGHU WKH KHDGLQJ ³86 LQIRUPDWLRQ UHSRUWLQJ DQG EDFNXS ZLWKKROGLQJ´ LQ SDUDJUDSK RI 3DUW ,9 7D[DWLRQ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¶V ZHEVLWH DW ZZZLUVJRYIRUPVLQVWUXFWLRQV

1RWZLWKVWDQGLQJ WKH IRUHJRLQJ FHUWDLQ 6KDUHKROGHUV PD\ EH H[HPSW IURP 86 LQIRUPDWLRQ UHSRUWLQJ DQG EDFNXS ZLWKKROGLQJ HYHQ WKRXJK WKH DSSURSULDWH WD[ IRUP KDV QRW EHHQ UHWXUQHG ,Q DGGLWLRQ FHUWDLQ 6KDUHKROGHUV WKDW RZQ WKHLU 2UGLQDU\ 6KDUHV WKURXJK D FXVWRGLDQ QRPLQHH RU WUXVWHH PD\ EH DEOH WR DYRLG WKH LPSRVLWLRQ RI EDFNXS ZLWKKROGLQJ E\ SURYLGLQJ DQ DSSURSULDWH ,56 )RUP : RU )RUP : WR WKH DSSOLFDEOH FXVWRGLDQ QRPLQHH RU WUXVWHH

6KDUHKROGHUV DUH VWURQJO\ DGYLVHG WR FRQVXOW ZLWK WKHLU WD[ DGYLVHUV DV WR WKH DSSOLFDWLRQ RI WKH LQIRUPDWLRQ UHSRUWLQJ DQG EDFNXS ZLWKKROGLQJ UXOHV WR WKHLU LQGLYLGXDO VLWXDWLRQV

:+\$7 ,) , +\$9( \$1< 025( 48(67,216"

,I \RX KDYH UHDG WKLV &LUFXODU DQG VWLOO KDYH TXHVWLRQV SOHDVH WHOHSKRQH WKH 6KDUHKROGHU +HOSOLQH GHWDLOV RI ZKLFK DUH VHW RXW DW WKH IURQW RI WKLV &LUFXODU

3DUW ,,, '(7\$,/6 2) 7+( 7(1'(5 2))(5

,1752'8&7,21

6XEMHFW WR WKH SDVVLQJ DW WKH *HQHUDO 0HHWLQJ RI 5HVROXWLRQ VHW RXW LQ WKH 1RWLFH RI *HQHUDO 0HHWLQJ 4XDOLI\LQJ 6KDUHKROGHUV RQ WKH 5HJLVWHU DW WKH 5HFRUG 'DWH DUH KHUHE\ LQYLWHG WR WHQGHU 2UGLQDU\ 6KDUHV IRU SXUFKDVH E\ 0RUJDQ 6WDQOH\ RQ RU DIWHU -XQH RQ WKH WHUPV DQG VXEMHFW WR WKH FRQGLWLRQV VHW RXW LQ WKLV &LUFXODU DQG LQ WKH FDVH RI 4XDOLI\LQJ 6KDUHKROGHUV KROGLQJ FHUWLILFDWHG 2UGLQDU\ 6KDUHV WKH DFFRPSDQ\LQJ 7HQGHU )RUP

4XDOLI\LQJ 6KDUHKROGHUV DUH QRW REOLJHG WR WHQGHU DQ\ 2UGLQDU\ 6KDUHV LI WKH\ GR QRW ZLVK WR GR VR 7KH ULJKWV RI 4XDOLI\LQJ 6KDUHKROGHUV ZKR FKRRVH QRW WR WHQGHU WKHLU 2UGLQDU\ 6KDUHV ZLOO EH XQDIIHFWHG

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

8QGHU WKH 2SWLRQ \$JUHHPHQW DQG SXUVXDQW WR WKH 7HQGHU 2IIHU JHQHUDOO\ 0RUJDQ 6WDQOH\ ZLOO DFW DV SULQFLSDO DQG QRW DV DJHQW QRPLQHH RU WUXVWHH

7(506 \$1' &21',7,216 2) 7+( 7(1'(5 2))(5

• 7KH 7HQGHU 2IIHU LV FRQGLWLRQDO RQ WKH IROORZLQJ WKH ³&RQGLWLRQV´
  • \$? WKH SDVVLQJ DV D VSHFLDO UHVROXWLRQ DW WKH *HQHUDO 0HHWLQJ RI 5HVROXWLRQ VHW RXW LQ WKH 1RWLFH RI *HQHUDO 0HHWLQJ DW WKH HQG RI WKLV &LUFXODU
  • %? UHFHLSW RI YDOLG WHQGHUV LQ UHVSHFW RI DW OHDVW 2UGLQDU\ 6KDUHV UHSUHVHQWLQJ DSSUR[LPDWHO\ RQH SHU FHQW RI WKH ,VVXHG 2UGLQDU\ 6KDUH &DSLWDO DV DW WKH /DWHVW 3UDFWLFDEOH 'DWH? E\ SP RQ WKH &ORVLQJ 'DWH DQG WKHUH FRQWLQXLQJ WR EH YDOLG WHQGHUV LQ UHVSHFW RI DW OHDVW VXFK QXPEHU RI 2UGLQDU\ 6KDUHV IROORZLQJ DQ\ H[FOXVLRQ RI WHQGHUV DW ([FOXGHG 3ULFHV SXUVXDQW WR SDUDJUDSK EHORZ
  • &? WKH 6WULNH 3ULFH EHLQJ DW RU DERYH WKH QRPLQDO YDOXH RI DQ 2UGLQDU\ 6KDUH
  • '? WKH 7HQGHU 2IIHU QRW KDYLQJ EHHQ WHUPLQDWHG LQ DFFRUGDQFH ZLWK SDUDJUDSK RI WKLV 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU RI WKLV &LUFXODU DQG WKH &RPSDQ\ FRQILUPLQJ WR 0RUJDQ 6WDQOH\ WKDW LW ZLOO QRW H[HUFLVH LWV ULJKW XQGHU WKDW SDUDJUDSK WR UHTXLUH 0RUJDQ 6WDQOH\ QRW WR SURFHHG ZLWK WKH 7HQGHU 2IIHU DQG
  • (? 0RUJDQ 6WDQOH\ EHLQJ VDWLVILHG DW DOO WLPHV XS WR LPPHGLDWHO\ SULRU WR WKH 8QFRQGLWLRQDO 'DWH WKDW WKH &RPSDQ\ KDV FRPSOLHG ZLWK LWV REOLJDWLRQV DQG LV QRW LQ EUHDFK RI DQ\ RI WKH UHSUHVHQWDWLRQV DQG ZDUUDQWLHV JLYHQ E\ LW XQGHU WKH 2SWLRQ \$JUHHPHQW

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

• \$? 2UGLQDU\ 6KDUHV PD\ EH WHQGHUHG XQGHU WKH 7HQGHU 2IIHU LQ WKH IROORZLQJ ZD\V
  • L? DV D WHQGHU DW ZKLFKHYHU RI WKH SULFHV ZLWKLQ WKH 3ULFH 5DQJH XOWLPDWHO\ SURYHV WR EH WKH 6WULNH 3ULFH D ³6WULNH 3ULFH 7HQGHU´? WKDW LV D WHQGHU ZKLFK LV QRW PDGH DW RQH RI WKH VSHFLILHG SULFHV ZLWKLQ WKH 3ULFH 5DQJH RU
  • LL? DV D WHQGHU DW D VLQJOH VSHFLILHG SULFH ZLWKLQ WKH 3ULFH 5DQJH EHLQJ RQH RI WKH IROORZLQJ
    • D? DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\
• E? DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\
• F? DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\
• G? DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\? DQG
• H? DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\? RU
• LLL? VXEMHFW DOZD\V WR SDUDJUDSK &? EHORZ DV WHQGHUV DW PRUH WKDQ RQH RI WKH SULFHV ZLWKLQ WKH 3ULFH 5DQJH ZKLFK FRXOG LQFOXGH D 6WULNH 3ULFH 7HQGHU
• %? 7HQGHUV RWKHU WKDQ 6WULNH 3ULFH 7HQGHUV PXVW EH PDGH DW RQH RI WKH VSHFLILHG SULFHV ZLWKLQ WKH 3ULFH 5DQJH DV VHW RXW LQ SDUDJUDSK \$? DERYH DQG DV DOVR LQGLFDWHG RQ WKH 7HQGHU )RUP LQ WKH FDVH RI FHUWLILFDWHG 2UGLQDU\ 6KDUHV? DQG DV DOVR H[SODLQHG LQ SDUDJUDSK RI WKLV 3DUW ,,, LQ WKH FDVH RI XQFHUWLILFDWHG 2UGLQDU\ 6KDUHV? 2QO\ WHQGHUV PDGH DW RQH RI WKRVH VSHFLILHG SULFHV ZLWKLQ WKH 3ULFH 5DQJH RU DV D 6WULNH 3ULFH 7HQGHU? ZLOO EH YDOLG DQG FDSDEOH RI DFFHSWDQFH
• &? 7KH WRWDO QXPEHU RI 2UGLQDU\ 6KDUHV WHQGHUHG E\ DQ\ 4XDOLI\LQJ 6KDUHKROGHU DW WKH SULFHV? LQ WKH 3ULFH 5DQJH DQGRU DV 6WULNH 3ULFH 7HQGHUV PXVW QRW H[FHHG WKH WRWDO QXPEHU RI 2UGLQDU\ 6KDUHV UHJLVWHUHG LQ WKH QDPH RI WKDW 4XDOLI\LQJ 6KDUHKROGHU DW WKH 5HFRUG 'DWH
• 7KH 7HQGHU 2IIHU LV RQO\ DYDLODEOH WR 4XDOLI\LQJ 6KDUHKROGHUV RQ WKH 5HJLVWHU DW WKH 5HFRUG 'DWH DQG LQ UHVSHFW RI WKH QXPEHU RI 2UGLQDU\ 6KDUHV UHJLVWHUHG LQ WKHLU QDPHV DW WKH 5HFRUG 'DWH
• 6XEMHFW WR SDUDJUDSK EHORZ WKH 7HQGHU 2IIHU ZLOO FORVH DW SP RQ -XO\ DQG QR WHQGHUV UHFHLYHG DIWHU WKDW WLPH ZLOO EH DFFHSWHG
•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
• \$? 7HQGHUV LQ UHVSHFW RI 2UGLQDU\ 6KDUHV KHOG LQ FHUWLILFDWHG IRUP PXVW EH L? PDGH RQ WKH 7HQGHU )RUP GXO\ FRPSOHWHG LQ DFFRUGDQFH ZLWK WKH LQVWUXFWLRQV VHW RXW LQ WKLV 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU DQG WKH LQVWUXFWLRQV LQ WKH 7HQGHU )RUP LWVHOI ZKLFK WRJHWKHU FRQVWLWXWH SDUW RI WKH WHUPV RI WKH 7HQGHU 2IIHU DQG LL? DFFRPSDQLHG E\ WKH UHOHYDQW VKDUH FHUWLILFDWHV DQGRU RWKHU GRFXPHQWV? RI WLWOH RU ZKHUH DSSOLFDEOH? D VDWLVIDFWRU\ LQGHPQLW\ LQ OLHX WKHUHRI 6XFK WHQGHUV ZLOO RQO\ EH YDOLG LI WKH SURFHGXUHV FRQWDLQHG LQ WKLV &LUFXODU DQG LQ WKH 7HQGHU )RUP DUH IROORZHG LQ IXOO
  • %? 7HQGHUV LQ UHVSHFW RI 2UGLQDU\ 6KDUHV KHOG LQ XQFHUWLILFDWHG IRUP PXVW EH PDGH E\ WKH LQSXW DQG VHWWOHPHQW RI D 77( ,QVWUXFWLRQ LQ &5(67 LQ DFFRUGDQFH ZLWK WKH LQVWUXFWLRQV VHW RXW LQ WKLV 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU DQG WKH UHOHYDQW SURFHGXUHV LQ WKH &5(67 0DQXDO ZKLFK WRJHWKHU FRQVWLWXWH SDUW RI WKH WHUPV RI WKH 7HQGHU 2IIHU 6XFK WHQGHUV ZLOO RQO\ EH YDOLG LI WKH SURFHGXUHV FRQWDLQHG LQ WKLV &LUFXODU DQG LQ WKH UHOHYDQW SDUWV RI WKH &5(67 0DQXDO DUH IROORZHG LQ IXOO
  • &? 7KH 7HQGHU 2IIHU DQG DOO WHQGHUV ZLOO EH JRYHUQHG E\ DQG FRQVWUXHG LQ DFFRUGDQFH ZLWK (QJOLVK ODZ 'HOLYHU\ RI D 7HQGHU )RUP RU WKH LQSXW RI D 77( ,QVWUXFWLRQ LQ &5(67 DV DSSOLFDEOH ZLOO FRQVWLWXWH VXEPLVVLRQ WR WKH MXULVGLFWLRQ RI WKH FRXUWV RI (QJODQG DQG :DOHV LQ

respect of all matters arising out of or in connection with the Tender Offer (including the Tender Form).

• 2.7 Subject to paragraph 2.26 below, the Strike Price and the results of the Tender Offer and, if applicable, the extent to, and manner in, which tenders will be scaled down, will be announced on 22 July 2019. In addition, the Company intends to publish on its website the Daily VWAP for each of the five Trading Days during the Relevant Trading Period. Following the announcement of the Strike Price and the results of the Tender Offer (including, if applicable, details of any scalingdown), the Tender Offer will still be subject to the remaining Conditions described in paragraph 2.1. At such time as the Tender Offer becomes unconditional, which is expected to be on 23 July 2019, the Company will make an announcement to that effect through a Regulatory Information Service.
• 2.8 All documents and remittances sent by or to Qualifying Shareholders and all instructions made by or on behalf of a Qualifying Shareholder in CREST will be sent or made (as the case may be) at the risk of the Qualifying Shareholder concerned. If the Tender Offer does not become unconditional and lapses or is withdrawn:
  • (A) in respect of Ordinary Shares held in certificated form, Tender Forms, share certificates and other documents of title will be returned by post not later than ten Business Days after the date of such lapse or withdrawal; and
  • (B) in respect of Ordinary Shares held in uncertificated form, the Escrow Agent will provide instructions to Euroclear to transfer all Ordinary Shares held in escrow balances by TFE Instruction to the original available balances to which those Ordinary Shares relate as soon as practicable after the date of such lapse or withdrawal.
• 2.9 If only part of a holding of Ordinary Shares is successfully tendered pursuant to the Tender Offer, the relevant Qualifying Shareholder will be entitled to receive the following:
  • (A) for Ordinary Shares held in certificated form, a certificate in respect of the unsold Ordinary Shares, where the share certificate(s) submitted pursuant to the Tender Offer relate(s) to more Ordinary Shares than those successfully tendered by such Qualifying Shareholder under the Tender Offer; or
  • (B) for Ordinary Shares held in uncertificated form, the transfer by the Escrow Agent by TFE Instruction of the unsold Ordinary Shares to the original available balances.
• 2.10 Further copies of the Tender Form may be obtained on request from the Shareholder Helpline on 0344 855 2327 or from the Receiving Agent at Link Asset Services, Corporate Actions, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU. Please note that calls to the helpline number may be monitored or recorded. Calls are charged at the standard geographic rate and will vary by provider. Calls from outside the UK will be charged at the applicable international rate.
• 2.11 No Ordinary Share will be acquired under the Tender Offer at a price that exceeds the Price Cap. Once the Average VWAP and other relevant calculations to determine each of the prices in the Price Range in terms of pence per Ordinary Share have been made by Morgan Stanley (such determination to be final and binding on all of the parties), all tenders made at any price in the Price Range that exceeds the Price Cap (any such price being an "Excluded Price") shall, from that point, be regarded as invalid tenders and shall be excluded for all purposes from the Tender Offer, including (for the avoidance of doubt) being omitted from the assessment of whether the condition specified in paragraph 2.1(B) above is satisfied and from the determination of the Strike Price pursuant to paragraph 2.13 below. Where the Minimum Price exceeds the Price Cap, all tenders will be deemed invalid and no Ordinary Shares will be acquired under the Tender Offer. Subject to the foregoing and without prejudice to the condition specified in paragraph 2.1(C) above, the lowest price at which tenders will be accepted is the Minimum Price and the highest price at which tenders will be accepted is the Maximum Price.
• 2.12 A single price per Ordinary Share will be paid in respect of all Ordinary Shares purchased by Morgan Stanley pursuant to the Tender Offer, that price being the Strike Price as determined pursuant to paragraph 2.13 below.
• 2.13 The Strike Price will be:
  • (A) the lowest price per Ordinary Share in the Price Range at which any valid tender is made (but excluding tenders at Excluded Prices) that would allow Morgan Stanley to purchase the greatest number of Ordinary Shares (whether or not such number equals, exceeds or is less than 43,466,603 Ordinary Shares) for a total cost equal to at least £2,000,000,000; or
  • (B) if the aggregate value at the highest price of any valid tender (excluding tenders at Excluded Prices) of all Ordinary Shares validly tendered by Shareholders is less than £2,000,000,000, the highest price of any valid tender (excluding tenders at Excluded Prices); or
  • (C) if no valid tenders are made other than Strike Price Tenders, the Minimum Price (save where the Minimum Price is an Excluded Price, in which case no Ordinary Shares will be acquired under the Tender Offer),

provided that the scaling-down arrangements set out in paragraphs 2.16 to 2.19 below shall apply in circumstances where:

• (i) the aggregate value at the Strike Price of all Ordinary Shares validly tendered by Shareholders at or below the Strike Price (including as Strike Price Tenders) exceeds £2,000,000,000; and/or
• (ii) the aggregate number of all Ordinary Shares validly tendered by Shareholders at or below the Strike Price (including as Strike Price Tenders) exceeds 43,466,603 Ordinary Shares
• 2.14 All Shareholders who tender Ordinary Shares at a price at or below the Strike Price (including as Strike Price Tenders) will receive the Strike Price for all successful tenders accepted subject, where applicable, to the scaling-down arrangements set out in paragraphs 2.16 to 2.19 below. All Ordinary Shares tendered at a price higher than the Strike Price will be rejected and will not be purchased.

2.15 If:

• (A) the aggregate value at the Strike Price of all Ordinary Shares validly tendered by Shareholders at or below the Strike Price (including as Strike Price Tenders) is £2,000,000,000 or less; and
• (B) the aggregate number of all Ordinary Shares validly tendered by Shareholders at or below the Strike Price (including as Strike Price Tenders) is 43,466,603 Ordinary Shares or less,

then all Ordinary Shares validly tendered at or below the Strike Price (including as Strike Price Tenders) will be accepted and purchased at the Strike Price, regardless of the price within the Price Range at which individual Shareholders choose to tender their Ordinary Shares. All Ordinary Shares tendered at a price higher than the Strike Price will be rejected and will not be purchased, and the Guaranteed Entitlement arrangements will not apply to such Ordinary Shares.

2.16 If:

• (A) the aggregate value at the Strike Price of all Ordinary Shares validly tendered by Shareholders at or below the Strike Price (including as Strike Price Tenders) exceeds £2,000,000,000; and
• (B) the aggregate number of all Ordinary Shares validly tendered by Shareholders at or below the Strike Price (including as Strike Price Tenders) is 43,466,603 Ordinary Shares or less,

WKHQ QRW DOO RI WKH 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG DW RU EHORZ WKH 6WULNH 3ULFH LQFOXGLQJ DV 6WULNH 3ULFH 7HQGHUV? ZLOO EH DFFHSWHG DQG SXUFKDVHG DQG LQ WKHVH FLUFXPVWDQFHV WHQGHUV ZLOO EH DFFHSWHG RU DV WKH FDVH PD\ EH UHMHFWHG? DV IROORZV

• L? ZKHUH WKH 6WULNH 3ULFH LV DERYH WKH 0LQLPXP 3ULFH WHQGHUV ZLOO EH DFFHSWHG RU DV WKH FDVH PD\ EH UHMHFWHG? LQ WKH IROORZLQJ RUGHU
  • D? DOO 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG DW D SULFH EHORZ WKH 6WULNH 3ULFH RU WHQGHUHG DV D 6WULNH 3ULFH 7HQGHU ZLOO EH DFFHSWHG DQG SXUFKDVHG LQ IXOO
  • E? 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG DW WKH SULFH LQ WKH 3ULFH 5DQJH ZKLFK LV GHWHUPLQHG WR EH WKH 6WULNH 3ULFH ZLOO EH VFDOHG GRZQ SUR UDWD WR WKH WRWDO QXPEHU RI 2UGLQDU\ 6KDUHV WHQGHUHG LQ WKDW ZD\ DW WKDW SULFH VXFK WKDW WKH WRWDO FRVW RI 2UGLQDU\ 6KDUHV SXUFKDVHG SXUVXDQW WR WKH 7HQGHU 2IIHU GRHV QRW H[FHHG DQG WKH DPRXQW RI 2UGLQDU\ 6KDUHV UHPDLQLQJ DIWHU VXFK VFDOLQJ GRZQ ZLOO EH DFFHSWHG DQG SXUFKDVHG ZLWK WKH UHVW EHLQJ UHMHFWHG DQG QRW SXUFKDVHG? DQG
  • F? DOO 2UGLQDU\ 6KDUHV WHQGHUHG DW D SULFH ZKLFK HQGV XS EHLQJ KLJKHU WKDQ WKH 6WULNH 3ULFH ZLOO EH UHMHFWHG DQG ZLOO QRW EH SXUFKDVHG LQ WKH 7HQGHU 2IIHU DQG WKH *XDUDQWHHG (QWLWOHPHQW DUUDQJHPHQWV ZLOO QRW DSSO\ WR VXFK 2UGLQDU\ 6KDUHV DQG
• LL? ZKHUH WKH 6WULNH 3ULFH LV GHWHUPLQHG WR EH WKH 0LQLPXP 3ULFH WHQGHUV ZLOO EH DFFHSWHG RU DV WKH FDVH PD\ EH UHMHFWHG? LQ WKH IROORZLQJ RUGHU
  • D? ZKHUH WKH DJJUHJDWH YDOXH DW WKH 6WULNH 3ULFH RI DOO 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG DV D 6WULNH 3ULFH 7HQGHU RU DW WKH 0LQLPXP 3ULFH WKDW DUH ZLWKLQ WKH *XDUDQWHHG (QWLWOHPHQW IRU DQ\ KROGLQJ RI 2UGLQDU\ 6KDUHV GRHV QRW H[FHHG WKHQ
    • DOO 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG DV D 6WULNH 3ULFH 7HQGHU RU DW WKH 0LQLPXP 3ULFH XS WR WKH *XDUDQWHHG (QWLWOHPHQW IRU HDFK UHOHYDQW KROGLQJ RI 2UGLQDU\ 6KDUHV ZLOO EH DFFHSWHG DQG SXUFKDVHG LQ IXOO
    •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
    • DOO 2UGLQDU\ 6KDUHV WHQGHUHG DW D SULFH KLJKHU WKDQ WKH 0LQLPXP 3ULFH ZLOO EH UHMHFWHG DQG ZLOO QRW EH SXUFKDVHG LQ WKH 7HQGHU 2IIHU DQG WKH *XDUDQWHHG (QWLWOHPHQW DUUDQJHPHQWV ZLOO QRW DSSO\ WR VXFK 2UGLQDU\ 6KDUHV DQG
  • E? ZKHUH WKH DJJUHJDWH YDOXH DW WKH 6WULNH 3ULFH RI DOO 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG DV D 6WULNH 3ULFH 7HQGHU RU DW WKH 0LQLPXP 3ULFH WKDW DUH ZLWKLQ WKH *XDUDQWHHG (QWLWOHPHQW IRU DQ\ KROGLQJ RI 2UGLQDU\ 6KDUHV H[FHHGV WKHQ
    • DOO 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG DV D 6WULNH 3ULFH 7HQGHU RU DW WKH 0LQLPXP 3ULFH WKDW DUH LQ H[FHVV RI WKH *XDUDQWHHG (QWLWOHPHQW IRU D KROGLQJ RI 2UGLQDU\ 6KDUHV ZLOO EH UHMHFWHG DQG ZLOO QRW EH SXUFKDVHG LQ WKH 7HQGHU 2IIHU
    •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

DOO 2UGLQDU\ 6KDUHV WHQGHUHG DW D SULFH KLJKHU WKDQ WKH 0LQLPXP 3ULFH ZLOO EH UHMHFWHG DQG ZLOO QRW EH SXUFKDVHG LQ WKH 7HQGHU 2IIHU DQG WKH *XDUDQWHHG (QWLWOHPHQW DUUDQJHPHQWV ZLOO QRW DSSO\ WR VXFK 2UGLQDU\ 6KDUHV

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³*XDUDQWHHG (QWLWOHPHQW´ ,I WKH DSSOLFDWLRQ RI VXFK SHUFHQWDJH WR DQ\ KROGLQJ RI 2UGLQDU\ 6KDUHV SURGXFHV D IUDFWLRQ RI D VKDUH WKHQ WKH *XDUDQWHHG (QWLWOHPHQW IRU VXFK KROGLQJ VKDOO EH URXQGHG GRZQ WR WKH QHDUHVW ZKROH QXPEHU RI 2UGLQDU\ 6KDUHV RU WR QLO DV WKH FDVH PD\ EH? 6KDUHKROGHUV PD\ WHQGHU 2UGLQDU\ 6KDUHV LQ H[FHVV RI WKHLU *XDUDQWHHG (QWLWOHPHQW +RZHYHU ZKHUH WKLV SDUDJUDSK DSSOLHV DQG WKH 6WULNH 3ULFH LV GHWHUPLQHG WR EH WKH 0LQLPXP 3ULFH WKH\ ZLOO RQO\ VXFFHVVIXOO\ WHQGHU VXFK H[FHVV 2UGLQDU\ 6KDUHV ZKHUH SDUDJUDSK LL?D? DSSOLHV DQG WKHQ RQO\ WR WKH H[WHQW RWKHU 6KDUHKROGHUV KDYH WHQGHUHG OHVV WKDQ WKHLU *XDUDQWHHG (QWLWOHPHQW DW WKH 0LQLPXP 3ULFH RU DV D 6WULNH 3ULFH 7HQGHU )RU WKH DYRLGDQFH RI GRXEW ZKHUH WKLV SDUDJUDSK DSSOLHV DQG WKH 6WULNH 3ULFH LV DERYH WKH 0LQLPXP 3ULFH DOO 2UGLQDU\ 6KDUHV WKDW DUH YDOLGO\ WHQGHUHG DV 6WULNH 3ULFH 7HQGHUV RU DW WKH 0LQLPXP 3ULFH ZLOO EH DFFHSWHG LQ IXOO

,I

• \$? WKH DJJUHJDWH YDOXH DW WKH 6WULNH 3ULFH RI DOO 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG E\ 6KDUHKROGHUV DW RU EHORZ WKH 6WULNH 3ULFH LQFOXGLQJ DV 6WULNH 3ULFH 7HQGHUV? LV RU OHVV DQG
• %? WKH DJJUHJDWH QXPEHU RI DOO 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG E\ 6KDUHKROGHUV DW RU EHORZ WKH 6WULNH 3ULFH LQFOXGLQJ DV 6WULNH 3ULFH 7HQGHUV? H[FHHGV 2UGLQDU\ 6KDUHV

WKHQ QRW DOO RI WKH 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG DW RU EHORZ WKH 6WULNH 3ULFH LQFOXGLQJ DV 6WULNH 3ULFH 7HQGHUV? ZLOO EH DFFHSWHG DQG SXUFKDVHG DQG LQ WKHVH FLUFXPVWDQFHV WHQGHUV ZLOO EH DFFHSWHG RU DV WKH FDVH PD\ EH UHMHFWHG? LQ WKH IROORZLQJ RUGHU

• L? DOO 2UGLQDU\ 6KDUHV YDOLGO\ WHQGHUHG DW RU EHORZ WKH 6WULNH 3ULFH ZKHWKHU DV 6WULNH 3ULFH 7HQGHUV RU DW D SULFH DW RU EHORZ WKH 6WULNH 3ULFH? XS WR WKH *XDUDQWHHG (QWLWOHPHQW IRU HDFK UHOHYDQW KROGLQJ RI 2UGLQDU\ 6KDUHV ZLOO EH DFFHSWHG DQG SXUFKDVHG LQ IXOO
•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
• LLL? DOO 2UGLQDU\ 6KDUHV WHQGHUHG DW D SULFH ZKLFK HQGV XS EHLQJ KLJKHU WKDQ WKH 6WULNH 3ULFH ZLOO EH UHMHFWHG DQG ZLOO QRW EH SXUFKDVHG LQ WKH 7HQGHU 2IIHU DQG WKH *XDUDQWHHG (QWLWOHPHQW DUUDQJHPHQWV ZLOO QRW DSSO\ WR VXFK 2UGLQDU\ 6KDUHV

:KHUH WKLV SDUDJUDSK DSSOLHV WKH *XDUDQWHHG (QWLWOHPHQW DUUDQJHPHQWV VKDOO EH DV IROORZV 7HQGHUV LQ UHVSHFW RI 2UGLQDU\ 6KDUHV UHSUHVHQWLQJ XS WR SHU FHQW RI HDFK KROGLQJ RI 2UGLQDU\ 6KDUHV RI HDFK 6KDUHKROGHU RQ WKH 5HFRUG 'DWH ZLOO EH DFFHSWHG LQ IXOO DQG ZLOO QRW EH VFDOHG GRZQ SURYLGHG WKDW VXFK 2UGLQDU\ 6KDUHV DUH YDOLGO\ WHQGHUHG DW RU EHORZ WKH 6WULNH 3ULFH ZKHWKHU DV 6WULNH 3ULFH 7HQGHUV RU DW D SULFH DW RU EHORZ WKH 6WULNH 3ULFH? 7KLV SHUFHQWDJH LV NQRZQ DV WKH ³*XDUDQWHHG (QWLWOHPHQW´ ,I WKH DSSOLFDWLRQ RI VXFK SHUFHQWDJH WR DQ\ KROGLQJ RI 2UGLQDU\ 6KDUHV SURGXFHV D IUDFWLRQ RI D VKDUH WKHQ WKH *XDUDQWHHG (QWLWOHPHQW IRU VXFK KROGLQJ VKDOO EH URXQGHG GRZQ WR WKH QHDUHVW ZKROH QXPEHU RI 2UGLQDU\ 6KDUHV RU WR QLO DV WKH FDVH PD\ EH? 6KDUHKROGHUV PD\ WHQGHU 2UGLQDU\ 6KDUHV LQ H[FHVV RI WKHLU *XDUDQWHHG (QWLWOHPHQW +RZHYHU WKH\ ZLOO ZKHUH WKLV SDUDJUDSK DSSOLHV RQO\ VXFFHVVIXOO\ WHQGHU VXFK excess Ordinary Shares to the extent other Shareholders have tendered less than their Guaranteed Entitlement at or below the Strike Price.

2.18 If:

• (A) the aggregate value at the Strike Price of all Ordinary Shares validly tendered by Shareholders at or below the Strike Price (including as Strike Price Tenders) exceeds £2,000,000,000; and
• (B) the aggregate number of all Ordinary Shares validly tendered by Shareholders at or below the Strike Price (including as Strike Price Tenders) exceeds 43,466,603 Ordinary Shares,

then not all of the Ordinary Shares validly tendered at or below the Strike Price (including as Strike Price Tenders) will be accepted and purchased and, in these circumstances, tenders will be accepted (or, as the case may be, rejected) as follows:

• (i) where the Strike Price is above the Minimum Price, tenders will be accepted (or, as the case may be, rejected) in the following order:
  • (a) Ordinary Shares validly tendered at the price in the Price Range which is determined to be the Strike Price will be scaled down pro rata to the total number of Ordinary Shares tendered in that way at that price such that the total cost of Ordinary Shares purchased pursuant to the Tender Offer does not exceed £2,000,000,000 (and the Ordinary Shares removed through such scaling-down will be rejected and not purchased, with the remaining Ordinary Shares then being subject to paragraph (b) below);
  • (b) if, following the scaling-down pursuant to paragraph (a):
    • (1) the aggregate number of all remaining Ordinary Shares validly tendered at or below the Strike Price (whether as Strike Price Tenders or at a price at or below the Strike Price) does not exceed 43,466,603 Ordinary Shares, then all such remaining Ordinary Shares will be accepted and purchased in full; and
    • (2) the aggregate number of all remaining Ordinary Shares validly tendered at or below the Strike Price (whether as Strike Price Tenders or at a price at or below the Strike Price) exceeds 43,466,603 Ordinary Shares, then such remaining Ordinary Shares will be accepted (or, as the case may be, rejected) in the following order:
      • (I) all such remaining Ordinary Shares validly tendered at or below the Strike Price (whether as Strike Price Tenders or at a price at or below the Strike Price) up to the Guaranteed Entitlement for each relevant holding of Ordinary Shares will be accepted and purchased in full; and
      • (II) such remaining Ordinary Shares validly tendered at or below the Strike Price (whether as Strike Price Tenders or at a price at or below the Strike Price) that are in excess of the Guaranteed Entitlement for a relevant holding of Ordinary Shares will be scaled down pro rata to the total number of remaining Ordinary Shares tendered in those ways that are in excess of the applicable Guaranteed Entitlements for the relevant holdings such that the total number of Ordinary Shares acquired does not exceed 43,466,603 Ordinary Shares (and the amount of Ordinary Shares remaining after such scaling-down will be accepted and purchased, with the rest being rejected and not purchased);
  • (c) all Ordinary Shares tendered at a price which ends up being higher than the Strike Price will be rejected and will not be purchased in the Tender Offer, and the Guaranteed Entitlement arrangements will not apply to such Ordinary Shares; and
  • (d) where this paragraph 2.18(i) applies, the Guaranteed Entitlement arrangements are only relevant where paragraph 2.18(i)(b)(2) applies. In that situation, tenders in respect of Ordinary Shares representing up to 24.99 per cent. of each holding of Ordinary Shares of each Shareholder on the Record Date (excluding any Ordinary Shares which have already been subject to scaling-down under paragraph 2.18(i)(a) above) will be accepted in full and will not be scaled down,

provided that such Ordinary Shares are validly tendered at or below the Strike Price (whether as Strike Price Tenders or at a price at or below the Strike Price). This percentage is known as the "Guaranteed Entitlement". If the application of such percentage to any holding of Ordinary Shares produces a fraction of a share, then the Guaranteed Entitlement shall be rounded down to the nearest whole number of Ordinary Shares (or to nil as the case may be). Shareholders may tender Ordinary Shares in excess of their Guaranteed Entitlement. However, as provided above, they will, where paragraph 2.18(i)(b)(2) applies, only successfully tender such excess Ordinary Shares to the extent other Shareholders have tendered less than their Guaranteed Entitlement at or below the Strike Price; and

• (ii) where the Strike Price is determined to be the Minimum Price, tenders will be accepted (or, as the case may be, rejected) in the following order:
  • (a) where the aggregate value at the Strike Price of all Ordinary Shares validly tendered as a Strike Price Tender or at the Minimum Price that are within the Guaranteed Entitlement for any holding of Ordinary Shares does not exceed £2,000,000,000, then:
    • (1) all Ordinary Shares validly tendered as a Strike Price Tender or at the Minimum Price up to the Guaranteed Entitlement for each relevant holding of Ordinary Shares will be accepted and purchased in full; and
    • (2) Ordinary Shares validly tendered as a Strike Price Tender or at the Minimum Price that are in excess of the Guaranteed Entitlement for a relevant holding of Ordinary Shares will be scaled down pro rata to the total number of Ordinary Shares validly tendered in those ways that are in excess of the applicable Guaranteed Entitlements for the relevant holdings such that both (1) the total number of Ordinary Shares acquired does not exceed 43,466,603, and (2) the total cost of Ordinary Shares purchased pursuant to the Tender Offer does not exceed £2,000,000,000 (and the amount of Ordinary Shares remaining after such scaling-down will be accepted and purchased, with the rest being rejected and not purchased);
  • (b) where the aggregate value at the Strike Price of all Ordinary Shares validly tendered as a Strike Price Tender or at the Minimum Price that are within the Guaranteed Entitlement for any holding of Ordinary Shares exceeds £2,000,000,000, then:
    • (1) all Ordinary Shares validly tendered as a Strike Price Tender or at the Minimum Price that are in excess of the Guaranteed Entitlement for a holding of Ordinary Shares will be rejected and will not be purchased in the Tender Offer; and
    • (2) Ordinary Shares validly tendered as a Strike Price Tender or at the Minimum Price that are within the Guaranteed Entitlement for a holding of Ordinary Shares will be scaled down pro rata to the total number of Ordinary Shares validly tendered in those ways that are within the applicable Guaranteed Entitlements for the relevant holdings such that both (1) the total number of Ordinary Shares acquired does not exceed 43,466,603, and (2) the total cost of Ordinary Shares purchased pursuant to the Tender Offer does not exceed £2,000,000,000 (and the amount of Ordinary Shares remaining after such scaling-down will be accepted and purchased, with the rest being rejected and not purchased);
  • (c) all Ordinary Shares tendered at a price higher than the Minimum Price will be rejected and will not be purchased in the Tender Offer, and the Guaranteed Entitlement arrangements will not apply to such Ordinary Shares; and
  • (d) where this paragraph 2.18(ii) applies, the Guaranteed Entitlement arrangements shall be as follows. Tenders in respect of Ordinary Shares representing up to 24.99 per cent. of each holding of Ordinary Shares of each Shareholder on the Record Date will be accepted in full (subject, if applicable, to scaling-down in accordance with paragraph 2.18(ii)(b)(2) above), provided that such Ordinary Shares are validly tendered at the Minimum Price or as a Strike Price Tender. This percentage is known as the "Guaranteed Entitlement". If the application of such

percentage to any holding of Ordinary Shares produces a fraction of a share, then the Guaranteed Entitlement for such holding shall be rounded down to the nearest whole number of Ordinary Shares (or to nil as the case may be). Shareholders may tender Ordinary Shares in excess of their Guaranteed Entitlement. However, where this paragraph 2.18(ii) applies, they will only successfully tender such excess Ordinary Shares where paragraph 2.18(ii)(a) above applies and then only to the extent other Shareholders have tendered less than their Guaranteed Entitlement at the Minimum Price or as a Strike Price Tender.

• 2.19 (A) Further, in the event that, notwithstanding the application of the provisions of paragraphs 2.16 to 2.18, the aggregate value at the Strike Price of all Ordinary Shares validly tendered by Shareholders at or below the Strike Price (including as Strike Price Tenders) that would, following the application of such provisions, fall to be accepted and purchased still exceeds £2,000,000,000 and/or the aggregate number of such Ordinary Shares still exceeds 43,466,603 Ordinary Shares, then, notwithstanding any provision within paragraphs 2.16 to 2.18, Morgan Stanley will apply additional or alternative scaling-down and/or guaranteed entitlement arrangements in order to ensure such limits are not exceeded. Morgan Stanley will apply such additional or alternative scaling-down and/or guaranteed entitlement arrangements as, in its absolute discretion, it considers to be appropriate (taking account, to the extent it considers appropriate and possible, of the purpose of paragraphs 2.16 to 2.18). Any such additional or alternative scaling-down and/or guaranteed entitlement arrangements shall only be applied to the extent necessary to ensure that the two limits described above are not exceeded and, once applied, the results of such additional or alternative arrangements shall be final and binding on all of the parties.
  • (B) Should any fractions arise from any scaling-down or Guaranteed Entitlement arrangements under paragraphs 2.16 to 2.18 or the application of any additional or alternative arrangements under paragraph 2.19(A), the number of Ordinary Shares accepted shall be rounded down to the nearest whole Ordinary Share (or to nil, as the case may be).
• 2.20 All Ordinary Shares successfully tendered and accepted will be purchased by Morgan Stanley pursuant to the Tender Offer, as principal and not as agent, nominee or trustee, at the Strike Price.
• 2.21 The decisions of Morgan Stanley and/or the Company as to the results of the Tender Offer shall be final and binding on all Shareholders (except as otherwise required under applicable law). All questions as to the number of Ordinary Shares tendered and/or accepted (including the application of the scaling-down and Guaranteed Entitlement arrangements under paragraphs 2.16 to 2.18 and/or any additional or alternative arrangements under paragraph 2.19(A)), the price to be paid therefor and the validity, form, eligibility (including the time of receipt) and acceptance of payment of any tender of Ordinary Shares will be determined by Morgan Stanley in its sole discretion, which determination shall be final and binding on all of the parties (except as otherwise required under applicable law). Morgan Stanley reserves the absolute right to reject any or all tenders it determines not to be in proper form or the acceptance of payment which may, in the opinion of Morgan Stanley, be unlawful. Morgan Stanley also reserves the absolute right to waive any defect or irregularity in the tender of any particular Ordinary Share or by any particular holder thereof. No tender of Ordinary Shares will be deemed to be validly made until all defects or irregularities have been cured or waived. In the event of a waiver, the consideration under the Tender Offer will not be paid to the Qualifying Shareholder until after (in the case of certificated Ordinary Shares) the Tender Form is complete in all respects and the share certificates and/or other document(s) of title satisfactory to Morgan Stanley have been received or (in the case of uncertificated Ordinary Shares) the relevant TTE Instruction has settled. None of Whitbread, Morgan Stanley, the Receiving Agent, or any other person is or will be obliged to give notice of any defects or irregularities in any tender, and none of them will incur any liability for failure to give any such notice.
• 2.22 Shareholders will not be obliged to pay any fees, commission or dealing charges to the Company or Morgan Stanley in connection with the Tender Offer. Certain payments made in connection with the Tender Offer may be subject to US backup withholding. All Qualifying Shareholders who choose to participate in the Tender Offer are referred to the guide to certain aspects of the US information reporting and backup withholding rules and the relevant forms required to be

completed, if any, set out under the heading "US information reporting and backup withholding" in paragraph 2 of Part IV (Taxation) of this Circular.

• 2.23 The failure of any person to receive a copy of this Circular or the Tender Form shall not invalidate any aspect of the Tender Offer. None of Whitbread, Morgan Stanley, the Receiving Agent or any other person will incur any liability in respect of any Qualifying Shareholder failing to receive this Circular and/or, in respect of a Qualifying Shareholder who holds Ordinary Shares in certificated form, the Tender Form. Qualifying Shareholders may obtain additional copies of this Circular and the Tender Form from the Receiving Agent by calling the Shareholder Helpline, details of which are set out at the front of this Circular.
• 2.24 The Company reserves the right to require that Morgan Stanley does not proceed with the Tender Offer if the Directors conclude, at any time prior to the Unconditional Date, that its implementation is no longer in the best interests of the Company and/or the Shareholders as a whole.
• 2.25 The Company reserves the right, at any time prior to the announcement of the results of the Tender Offer, subject to compliance with applicable legal and requlatory requirements and with the prior consent of Morgan Stanley, to revise the aggregate value of the Tender Offer, based on market conditions and/or other factors. The Company shall notify Shareholders of any such revision without delay by announcement through a Regulatory Information Service.
• 2.26 The Company reserves the right, at any time prior to the announcement of the results of the Tender Offer, with the prior consent of Morgan Stanley, to extend the period during which the Tender Offer is open, in which event the term "Closing Date" shall mean the latest time and date at which the Tender Offer, as so extended, shall close. The Company shall promptly notify Shareholders of any extension by announcement through a Regulatory Information Service.
• 2.27 Morgan Stanley reserves the right to treat any Tender Forms and/or TTE Instructions not strictly complying with the terms and conditions of the Tender Offer as nevertheless valid.
• 2.28 The terms of the Tender Offer shall have effect subject to such non-material modifications as Whitbread and Morgan Stanley may from time to time approve in writing. The times and dates referred to in this Circular may (subject to any applicable requirements of the Listing Rules or applicable law or regulation) be changed by Whitbread, in which event details of the new times and dates will be notified to Shareholders by announcement through a Regulatory Information Service.
• 2.29 No acknowledgment of receipt of any Tender Form, share certificate(s), other document(s) of title and/or TTE Instructions (as appropriate) will be given.

3. PROCEDURE FOR TENDERING

3.1 Different procedures for Ordinary Shares in certificated and uncertificated form

If you hold Ordinary Shares in certificated form, you may only tender such Ordinary Shares by completing and returning the Tender Form in accordance with the instructions set out in paragraph 3.2 below and the instructions printed on the form itself.

If you hold Ordinary Shares in certificated form, but under different designations, you should complete a separate Tender Form in respect of each designation. Additional Tender Forms are available from Link Asset Services by calling the Shareholder Helpline, details of which are set out at the front of this Circular.

If you hold Ordinary Shares in uncertificated form (that is, in CREST), you may only tender such Ordinary Shares by TTE Instruction in accordance with the procedures set out in paragraph 3.3 below and, if those Ordinary Shares are held under different Member Account IDs, you should send a separate TTE Instruction for each Member Account ID.

If you hold Ordinary Shares in both certificated and uncertificated forms, and you wish to tender Ordinary Shares in both forms, you should complete a Tender Form for the certificated holding(s) in accordance with paragraph 3.2 below and tender your Ordinary Shares held in uncertificated form by TTE Instruction in accordance with the procedure set out in paragraph 3.3 below.

All Qualifying Shareholders who choose to participate in the Tender Offer are referred to the quide to certain aspects of the US information reporting and backup withholding rules set out in paragraph 2 of Part IV (Taxation) of this Circular.

3.2 Ordinary Shares held in certificated form

To tender your Ordinary Shares held in certificated form you must complete, sign and have witnessed the Tender Form as appropriate.

The completed, signed and witnessed Tender Form should be sent either by post in the accompanying pre-paid envelope (for use in the UK only) or by hand (during normal business hours only) to the Receiving Agent, Link Asset Services, Corporate Actions, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU on or after 20 June 2019 and so as to be received not later than 1.00 p.m. on 19 July 2019. No tenders received after that time will be accepted (unless the Closing Date is extended). No acknowledgement of receipt of documents will be given. Any Tender Form received in an envelope postmarked in any Restricted Jurisdiction or otherwise appearing to Morgan Stanley or its agents to have been sent from any Restricted Jurisdiction may be rejected as an invalid tender. For further information on Overseas Shareholders, see paragraph 6 below of this Part III. In addition, the attention of Qualifying Shareholders who are resident in the United States is drawn to the Notice for US Shareholders on page 2 of this Circular.

A Tender Form, once received by the Receiving Agent, will be irrevocable.

The completed and signed Tender Form should be accompanied, where possible, by the relevant share certificate(s) and/or other document(s) of title in respect of the tendered Ordinary Shares.

Where your share certificate(s) and/or other document(s) of title is/are with your bank, stockbroker or other agent:

• if the share certificate(s) and/or other document(s) of title is/are readily available, arrange for the Tender Form to be lodged by such agent at Link Asset Services, Corporate Actions, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU on or after 20 June 2019 and so as to be received by Link Asset Services by not later than 1.00 p.m. on 19 July 2019; and
• · if the share certificate(s) and/or other document(s) of title is/are not readily available. Iodge the duly completed Tender Form with Link Asset Services at the address above on or after 20 June 2019, together with a note saying "share certificate(s) and/or other document(s) of title to follow" and arrange for the share certificate(s) and/or other document(s) of title to be forwarded to Link Asset Services as soon as possible thereafter and, in any event, so as to be received by Link Asset Services by not later than 1.00 p.m. on 19 July 2019.

If you hold 500 or more Ordinary Shares in certificated form in total as at the Record Date and you have lost the share certificate(s) in relation to any or all of your tendered Ordinary Shares, you will need to provide a letter of indemnity to the Company, a template for which can be obtained by writing to Link Asset Services, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU or by contacting the Shareholder Helpline, details of which are set out at the front of this Circular. You will then need to return the letter of indemnity, duly completed, to Link Asset Services with your Tender Form, on or after 20 June 2019 and so as to be received by Link Asset Services not later than 1.00 p.m. on 19 July 2019.

If you hold fewer than 500 Ordinary Shares in certificated form in total as at the Record Date and you have lost the share certificate(s) in relation to any or all of your tendered Ordinary Shares, there is no need to provide a letter of indemnity or any other documentation relating to the lost share certificate(s). Please be aware that, if, following submission of a Tender Form and prior to the Record Date, you acquire further Ordinary Shares which bring your total holding of Ordinary Shares in certificated form to 500 or more, but you have not provided a letter of indemnity relating to your lost share certificate(s), your tender may be rejected as an invalid tender.

Where you have completed and returned a letter of indemnity in respect of unavailable share certificate(s) and/or other document(s) of title and you subsequently find or obtain the relevant share certificate(s) and/or other document(s) of title, you should immediately send it/them by post or (during normal business hours only) by hand to the Receiving Agent at Link Asset Services, Corporate Actions, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU.

2UGLQDU\ 6KDUHV KHOG LQ XQFHUWLILFDWHG IRUP

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

7KH LQSXW DQG VHWWOHPHQW RI D 77( ,QVWUXFWLRQ LQ DFFRUGDQFH ZLWK WKLV SDUDJUDSK VKDOO FRQVWLWXWH DQ RIIHU WR VHOO WKH QXPEHU RI 2UGLQDU\ 6KDUHV DW WKH SULFHV? LQGLFDWHG RQ WKH WHUPV RI WKH 7HQGHU 2IIHU E\ WUDQVIHUULQJ VXFK 2UGLQDU\ 6KDUHV WR WKH UHOHYDQW HVFURZ DFFRXQW DV GHWDLOHG LQ SDUDJUDSK YL? EHORZ DQ ³(OHFWURQLF 7HQGHU´

,I \RX DUH D &5(67 6SRQVRUHG 0HPEHU \RX VKRXOG UHIHU WR \RXU &5(67 6SRQVRU EHIRUH WDNLQJ DQ\ DFWLRQ <RXU &5(67 6SRQVRU ZLOO EH DEOH WR FRQILUP GHWDLOV RI \RXU 3DUWLFLSDQW ,' DQG WKH 0HPEHU \$FFRXQW ,' XQGHU ZKLFK \RXU 2UGLQDU\ 6KDUHV DUH KHOG ,Q DGGLWLRQ RQO\ \RXU &5(67 6SRQVRU ZLOO EH DEOH WR VHQG WKH 77( ,QVWUXFWLRQ WR (XURFOHDU LQ UHODWLRQ WR WKH 2UGLQDU\ 6KDUHV WKDW \RX ZLVK WR WHQGHU

7R WHQGHU 2UGLQDU\ 6KDUHV LQ XQFHUWLILFDWHG IRUP \RX VKRXOG VHQG RU LI \RX DUH D &5(67 6SRQVRUHG 0HPEHU SURFXUH \RXU &5(67 6SRQVRU VHQGV? WR (XURFOHDU D 77( ,QVWUXFWLRQ LQ UHODWLRQ WR VXFK 2UGLQDU\ 6KDUHV RQ RU DIWHU -XQH DQG VR WKDW WKH 77( ,QVWUXFWLRQ VHWWOHV E\ QRW ODWHU WKDQ SP RQ -XO\

\$ 77( ,QVWUXFWLRQ WR (XURFOHDU PXVW EH SURSHUO\ DXWKHQWLFDWHG LQ DFFRUGDQFH ZLWK (XURFOHDU¶V VSHFLILFDWLRQV IRU WUDQVIHUV WR HVFURZ DQG PXVW FRQWDLQ LQ DGGLWLRQ WR WKH RWKHU LQIRUPDWLRQ WKDW LV UHTXLUHG IRU WKH 77( ,QVWUXFWLRQ WR VHWWOH LQ &5(67 WKH IROORZLQJ GHWDLOV

• L? WKH ,6,1 IRU WKH 2UGLQDU\ 6KDUHV ZKLFK LV *%%.--
• LL? WKH QXPEHU RI 2UGLQDU\ 6KDUHV ZKLFK \RX ZLVK WR WHQGHU DQG WUDQVIHU WR DQ HVFURZ DFFRXQW
• LLL? \RXU 0HPEHU \$FFRXQW ,'
• LY? \RXU 3DUWLFLSDQW ,'
• Y? WKH 3DUWLFLSDQW ,' RI /LQN \$VVHW 6HUYLFHV LQ LWV FDSDFLW\ DV D &5(67 UHFHLYLQJ DJHQW ZKLFK LV 5\$
• YL? WKH 0HPEHU \$FFRXQW ,' RI /LQN \$VVHW 6HUYLFHV LQ LWV FDSDFLW\ DV WKH HVFURZ DJHQW )RU WKH SXUSRVHV RI WKH 7HQGHU 2IIHU WKLV ZLOO EH GHSHQGHQW RQ WKH SULFH \RX ZLVK WR WHQGHU DW DV VHW RXW EHORZ LQ WKLV SDUDJUDSK YL

7KH IROORZLQJ WDEOH VHWV RXW WKH GLIIHUHQW HVFURZ DFFRXQWV E\ SULFH ZLWKLQ WKH 3ULFH 5DQJH RU IRU 6WULNH 3ULFH 7HQGHUV? DQG WKH UHOHYDQW 0HPEHU \$FFRXQW ,' IRU HDFK SULFH

7HQGHU DW SULFH	0HPEHU \$FFRXQW ,'
6WULNH 3ULFH 7HQGHU LH D WHQGHU DW ZKDWHYHU SULFH LV XOWLPDWHO\ GHWHUPLQHG XQGHU WKH WHUPV RI WKH 7HQGHU 2IIHU WR EH WKH 6WULNH 3ULFH	:%675,.(
DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\	:+,79:\$3
DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\	:%93/86
DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\	:%93/86

7HQGHU DW SULFH	0HPEHU \$FFRXQW ,'
DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ	:%93/86
DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH
QHDUHVW ZKROH SHQQ\

DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH? HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\? :%93/86

• YLL? WKH FRUSRUDWH DFWLRQ QXPEHU IRU WKH 7HQGHU 2IIHU ZKLFK LV DOORFDWHG E\ (XURFOHDU DQG FDQ EH IRXQG E\ YLHZLQJ WKH FRUSRUDWH DFWLRQ GHWDLOV RQ VFUHHQ LQ &5(67
• YLLL? WKH LQWHQGHG VHWWOHPHQW GDWH IRU WKH WUDQVIHU WR HVFURZ 7KLV VKRXOG EH RQ RU DIWHU -XQH DQG QRW ODWHU WKDQ SP RQ -XO\
• L[? WKH VWDQGDUG GHOLYHU\ LQVWUXFWLRQ ZLWK SULRULW\ DQG
• [? WKH FRQWDFW QDPH DQG WHOHSKRQH QXPEHU LQVHUWHG LQ WKH VKDUHG QRWH ILHOG

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

<RX DUH UHFRPPHQGHG WR UHIHU WR WKH &5(67 0DQXDO IRU IXUWKHU LQIRUPDWLRQ RQ WKH &5(67 SURFHGXUHV RXWOLQHG DERYH

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

:LWKGUDZDOV RI WHQGHUV VXEPLWWHG YLD &5(67 DUH QRW SHUPLWWHG RQFH VXEPLWWHG

'HSRVLWV RI 2UGLQDU\ 6KDUHV LQWR DQG ZLWKGUDZDOV RI 2UGLQDU\ 6KDUHV IURP &5(67

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¶V SDUWLFLSDWLRQ LQ WKH 7HQGHU 2IIHU LQ SDUWLFXODU DV UHJDUGV GHOLYHU\ RI VKDUH FHUWLILFDWHV DQGRU RWKHU GRFXPHQWV RI WLWOH RU WUDQVIHUV WR DQ HVFURZ EDODQFH DV GHVFULEHG DERYH? SULRU WR SP RQ -XO\

9DOLGLW\ RI WHQGHUV

\$? 9DOLGLW\ RI 7HQGHU )RUPV

1RWZLWKVWDQGLQJ WKH SRZHUV LQ SDUDJUDSK RI WKLV 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU 0RUJDQ 6WDQOH\ UHVHUYHV WKH ULJKW WR WUHDW DV YDOLG RQO\ 7HQGHU )RUPV ZKLFK DUH UHFHLYHG HQWLUHO\ LQ RUGHU RQ RU DIWHU -XQH DQG QRW ODWHU WKDQ SP RQ -XO\ DQG ZKLFK DUH DFFRPSDQLHG E\ WKH UHOHYDQW VKDUH FHUWLILFDWHV? DQGRU RWKHU GRFXPHQWV? RI WLWOH RU ZKHUH DSSOLFDEOH? D VDWLVIDFWRU\ LQGHPQLW\ LQ OLHX WKHUHRI LQ UHVSHFW RI DOO WKH 2UGLQDU\ 6KDUHV WHQGHUHG

\$Q DSSURSULDWH DQQRXQFHPHQW ZLOO EH PDGH LI DQ\ RI WKH GHWDLOV FRQWDLQHG LQ WKLV SDUDJUDSK \$? DUH DOWHUHG

%? 9DOLGLW\ RI (OHFWURQLF 7HQGHUV

\$ 7HQGHU )RUP ZKLFK LV UHFHLYHG LQ UHVSHFW RI 2UGLQDU\ 6KDUHV KHOG LQ XQFHUWLILFDWHG IRUP ZLOO QRW FRQVWLWXWH D YDOLG WHQGHU DQG ZLOO EH GLVUHJDUGHG 4XDOLI\LQJ 6KDUHKROGHUV ZKR KROG 2UGLQDU\ 6KDUHV LQ XQFHUWLILFDWHG IRUP DQG ZKR ZLVK WR WHQGHU VXFK 2UGLQDU\ 6KDUHV VKRXOG QRWH WKDW D 77( ,QVWUXFWLRQ ZLOO RQO\ EH D YDOLG WHQGHU DV DW -XO\ LI LW KDV VHWWOHG RQ RU EHIRUH SP RQ WKDW GDWH

\$Q DSSURSULDWH DQQRXQFHPHQW ZLOO EH PDGH LI DQ\ RI WKH GHWDLOV FRQWDLQHG LQ WKLV SDUDJUDSK %? DUH DOWHUHG

&? *HQHUDO

1RWZLWKVWDQGLQJ WKH FRPSOHWLRQ RI D YDOLG 7HQGHU )RUP RU VHWWOHPHQW RI D 77( ,QVWUXFWLRQ DV DSSOLFDEOH WKH 7HQGHU 2IIHU PD\ ODSVH LQ DFFRUGDQFH ZLWK WKH &RQGLWLRQV VHW RXW LQ WKLV 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU RU EH ZLWKGUDZQ

0RUJDQ 6WDQOH\ UHVHUYHV WKH DEVROXWH ULJKW WR LQVSHFW HLWKHU LWVHOI RU WKURXJK LWV DJHQWV? DOO 7HQGHU )RUPV 7KH GHFLVLRQ RI 0RUJDQ 6WDQOH\ DV WR ZKLFK 2UGLQDU\ 6KDUHV KDYH EHHQ YDOLGO\ WHQGHUHG VKDOO EH FRQFOXVLYH DQG ELQGLQJ RQ DOO 6KDUHKROGHUV

,I \RX DUH LQ DQ\ GRXEW DV WR KRZ WR FRPSOHWH WKH 7HQGHU )RUP RU DV WR WKH SURFHGXUH IRU PDNLQJ DQ (OHFWURQLF 7HQGHU SOHDVH WHOHSKRQH WKH 6KDUHKROGHU +HOSOLQH GHWDLOV RI ZKLFK DUH VHW RXW DW WKH IURQW RI WKLV &LUFXODU <RX DUH UHPLQGHG WKDW LI \RX DUH D &5(67 6SRQVRUHG 0HPEHU \RX VKRXOG FRQWDFW \RXU &5(67 6SRQVRU EHIRUH WDNLQJ DQ\ DFWLRQ

6KDUHKROGHUV VKRXOG QRWH WKDW RQFH WKHLU 2UGLQDU\ 6KDUHV DUH WHQGHUHG WKH\ PD\ QRW EH VROG WUDQVIHUUHG FKDUJHG RU RWKHUZLVH GLVSRVHG RI

6HWWOHPHQW

6XEMHFW WR DQG IROORZLQJ WKH 7HQGHU 2IIHU EHFRPLQJ XQFRQGLWLRQDO VHWWOHPHQW RI WKH FRQVLGHUDWLRQ WR ZKLFK DQ\ 4XDOLI\LQJ 6KDUHKROGHU LV HQWLWOHG SXUVXDQW WR YDOLG WHQGHUV DFFHSWHG E\ 0RUJDQ 6WDQOH\ ZLOO EH PDGH DV IROORZV

\$? 2UGLQDU\ 6KDUHV KHOG LQ FHUWLILFDWHG IRUP

:KHUH DQ DFFHSWHG WHQGHU UHODWHV WR 2UGLQDU\ 6KDUHV KHOG LQ FHUWLILFDWHG IRUP HLWKHU

• FKHTXHV IRU WKH FRQVLGHUDWLRQ GXH ZLOO EH GHVSDWFKHG RQ -XO\ E\ WKH 5HFHLYLQJ \$JHQW E\ ILUVW FODVV SRVW WR WKH 4XDOLI\LQJ 6KDUHKROGHU DW WKH DGGUHVV VHW RXW LQ %R[ RU LI DSSOLFDEOH %R[ RI WKH 7HQGHU )RUP \$OO SD\PHQWV ZLOO EH PDGH LQ 6WHUOLQJ E\ FKHTXH GUDZQ RQ D EUDQFK RI D 8. FOHDULQJ EDQN PDGH SD\DEOH WR WKH VROH RU ILUVWQDPHG UHJLVWHUHG KROGHU LQ %R[ RI WKH 7HQGHU )RUP RU
• LI DQ DSSURSULDWH DXWKRULW\ KDV EHHQ LQFOXGHG LQ WKH 7HQGHU )RUP D %DFV SD\PHQW IRU WKH FRQVLGHUDWLRQ GXH ZLOO EH PDGH RQ -XO\ E\ WKH 5HFHLYLQJ \$JHQW LQ DFFRUGDQFH ZLWK WKH LQVWUXFWLRQV JLYHQ E\ WKH 4XDOLI\LQJ 6KDUHKROGHU LQ LWV KLV RU KHU 7HQGHU )RUP

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

%? 2UGLQDU\ 6KDUHV KHOG LQ XQFHUWLILFDWHG IRUP

:KHUH DQ DFFHSWHG WHQGHU UHODWHV WR 2UGLQDU\ 6KDUHV KHOG LQ XQFHUWLILFDWHG IRUP WKH FRQVLGHUDWLRQ GXH ZLOO EH SDLG RQ -XO\ E\ PHDQV RI &5(67 E\ WKH 5HFHLYLQJ \$JHQW DFWLQJ RQ EHKDOI RI 0RUJDQ 6WDQOH\? SURFXULQJ WKDW D &5(67 SD\PHQW LV PDGH LQ IDYRXU RI WKH WHQGHULQJ 4XDOLI\LQJ 6KDUHKROGHU¶V SD\PHQW EDQN LQ DFFRUGDQFH ZLWK WKH &5(67 SD\PHQW DUUDQJHPHQWV

0RUJDQ 6WDQOH\ UHVHUYHV WKH ULJKW WR VHWWOH DOO RU DQ\ SDUW RI WKH FRQVLGHUDWLRQ UHIHUUHG WR LQ WKLV SDUDJUDSK %? IRU DOO RU DQ\ DFFHSWHG WHQGHUV LQ WKH PDQQHU UHIHUUHG WR LQ SDUDJUDSK \$ 2UGLQDU\ 6KDUHV LQ FHUWLILFDWHG IRUP DERYH LI IRU DQ\ UHDVRQ LW ZLVKHV WR GR VR

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

&? 86 EDFNXS ZLWKKROGLQJ

&HUWDLQ SD\PHQWV PDGH LQ FRQQHFWLRQ ZLWK WKH 7HQGHU 2IIHU PD\ EH VXEMHFW WR 86 EDFNXS ZLWKKROGLQJ \$OO 4XDOLI\LQJ 6KDUHKROGHUV ZKR FKRRVH WR SDUWLFLSDWH LQ WKH 7HQGHU 2IIHU DUH UHIHUUHG WR WKH JXLGH WR FHUWDLQ DVSHFWV RI WKH 86 LQIRUPDWLRQ UHSRUWLQJ DQG EDFNXS ZLWKKROGLQJ UXOHV DQG WKH UHOHYDQW IRUPV UHTXLUHG WR EH FRPSOHWHG LI DQ\ VHW RXW XQGHU WKH KHDGLQJ ³86 LQIRUPDWLRQ UHSRUWLQJ DQG EDFNXS ZLWKKROGLQJ´ LQ SDUDJUDSK RI 3DUW ,9 7D[DWLRQ RI WKLV &LUFXODU

7(1'(5 )2506

(DFK 6KDUHKROGHU E\ ZKRP RU RQ ZKRVH EHKDOI D 7HQGHU )RUP LV H[HFXWHG LUUHYRFDEO\ XQGHUWDNHV UHSUHVHQWV ZDUUDQWV DQG DJUHHV WR DQG ZLWK 0RUJDQ 6WDQOH\ IRU LWVHOI DQG RQ EHKDOI RI :KLWEUHDG? VR DV WR ELQG VXFK 6KDUHKROGHU DQG LWV KLV RU KHU SHUVRQDO UHSUHVHQWDWLYHV KHLUV VXFFHVVRUV DQG DVVLJQV WKDW

• \$? WKH H[HFXWLRQ RI WKH 7HQGHU )RUP ZLOO FRQVWLWXWH DQ RIIHU WR VHOO WR 0RUJDQ 6WDQOH\ VXFK QXPEHU RI 2UGLQDU\ 6KDUHV DV DUH LQVHUWHG LQ %R[ RI WKH 7HQGHU )RUP RQ DQG VXEMHFW WR WKH WHUPV DQG FRQGLWLRQV VHW RXW RU UHIHUUHG WR LQ WKLV &LUFXODU DQG WKH 7HQGHU )RUP DV DSSOLFDEOH DQG WKDW RQFH ORGJHG VXFK WHQGHU VKDOO EH LUUHYRFDEOH
•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
• &? WKH H[HFXWLRQ RI WKH 7HQGHU )RUP ZLOO VXEMHFW WR WKH 7HQGHU 2IIHU EHFRPLQJ XQFRQGLWLRQDO FRQVWLWXWH WKH LUUHYRFDEOH DSSRLQWPHQW RI DQ\ GLUHFWRU RU RIILFHU RI 0RUJDQ 6WDQOH\ DV VXFK 6KDUHKROGHU¶V DWWRUQH\ DQGRU DJHQW ³*\$WWRUQH*´? DQG DQ LUUHYRFDEOH LQVWUXFWLRQ WR WKH \$WWRUQH\ WR FRPSOHWH DQG H[HFXWH DOO RU DQ\ LQVWUXPHQWV RI WUDQVIHU DQGRU RWKHU GRFXPHQWV DW WKH \$WWRUQH\¶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
• '? VXFK 6KDUHKROGHU DJUHHV WR UDWLI\ DQG FRQILUP HDFK DQG HYHU\ DFW RU WKLQJ ZKLFK PD\ EH GRQH RU HIIHFWHG E\ 0RUJDQ 6WDQOH\ RU DQ\ RI LWV GLUHFWRUV RU RIILFHUV RU DQ\ SHUVRQ QRPLQDWHG E\ 0RUJDQ 6WDQOH\ LQ WKH SURSHU H[HUFLVH RI LWV RU KLV RU KHU SRZHUV DQGRU DXWKRULWLHV KHUHXQGHU
• (? LQ UHVSHFW RI WHQGHUHG 2UGLQDU\ 6KDUHV KHOG LQ FHUWLILFDWHG IRUP VXFK 6KDUHKROGHU ZLOO GHOLYHU WR WKH 5HFHLYLQJ \$JHQW LWV KLV RU KHU VKDUH FHUWLILFDWHV? DQGRU RWKHU GRFXPHQWV? RI WLWOH RU ZKHUH DSSOLFDEOH? DQ LQGHPQLW\ DFFHSWDEOH WR 0RUJDQ 6WDQOH\ LQ OLHX WKHUHRI RU ZLOO SURFXUH WKH GHOLYHU\ RI VXFK GRFXPHQWV? WR WKH 5HFHLYLQJ \$JHQW DV VRRQ DV SRVVLEOH WKHUHDIWHU DQG LQ DQ\ HYHQW QRW ODWHU WKDQ WKH &ORVLQJ 'DWH
• )? WKH WHUPV RI WKLV 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU VKDOO EH GHHPHG WR EH LQFRUSRUDWHG LQ DQG IRUP SDUW RI WKH 7HQGHU )RUP ZKLFK VKDOO EH UHDG DQG FRQVWUXHG DFFRUGLQJO\
• *? LI VR UHTXLUHG E\ 0RUJDQ 6WDQOH\ VXFK 6KDUHKROGHU VKDOO GR DOO VXFK DFWV DQG WKLQJV DV VKDOO EH QHFHVVDU\ RU H[SHGLHQW DQG H[HFXWH DQ\ DGGLWLRQDO GRFXPHQWV GHHPHG E\ 0RUJDQ 6WDQOH\ WR EH

GHVLUDEOH LQ HDFK FDVH WR FRPSOHWH WKH SXUFKDVH RI WKH 2UGLQDU\ 6KDUHV DQGRU WR SHUIHFW DQ\ RI WKH DXWKRULWLHV H[SUHVVHG WR EH JLYHQ KHUHXQGHU

• +? VXFK 6KDUHKROGHU LI DQ 2YHUVHDV 6KDUHKROGHU LV D 4XDOLI\LQJ 6KDUHKROGHU DQG KDV IXOO\ REVHUYHG DQ\ DSSOLFDEOH OHJDO UHTXLUHPHQWV REWDLQHG DQ\ UHTXLVLWH FRQVHQWV DQG FRPSOLHG ZLWK DOO DSSOLFDEOH IRUPDOLWLHV DQG WKDW WKH LQYLWDWLRQ XQGHU WKH 7HQGHU 2IIHU PD\ EH PDGH WR VXFK 6KDUHKROGHU XQGHU WKH ODZV RI WKH UHOHYDQW MXULVGLFWLRQ DQG KDV QRW WDNHQ RU RPLWWHG WR WDNH DQ\ DFWLRQ ZKLFK ZRXOG UHVXOW LQ 0RUJDQ 6WDQOH\ RU :KLWEUHDG DFWLQJ LQ EUHDFK RI DQ\ DSSOLFDEOH OHJDO RU UHJXODWRU\ UHTXLUHPHQW LQ UHVSHFW RI WKH SXUFKDVH E\ 0RUJDQ 6WDQOH\ RI WKH 2UGLQDU\ 6KDUHV WHQGHUHG E\ VXFK 6KDUHKROGHU XQGHU WKH 7HQGHU 2IIHU
• ,? VXFK 6KDUHKROGHU¶V RIIHU WR VHOO 2UGLQDU\ 6KDUHV WR 0RUJDQ 6WDQOH\ DQG DQ\ DFFHSWDQFH WKHUHRI VKDOO QRW EH XQODZIXO XQGHU WKH ODZV RI DQ\ MXULVGLFWLRQ
•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
•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
• /? ZKHUH WKH %DFV SD\PHQW LQVWUXFWLRQ RQ WKH 7HQGHU )RUP LV FRPSOHWHG WKH EDQN RU EXLOGLQJ VRFLHW\ DFFRXQW GHWDLOV SURYLGHG WKHUHLQ UHODWH WR D EDQN RU EXLOGLQJ VRFLHW\ DFFRXQW LQ WKH QDPH RI WKH 6KDUHKROGHU RQO\ DQG QR RWKHU SHUVRQ RU LQ WKH FDVH RI MRLQW KROGHUV WKH QDPH RI DQ\ RQH VXFK MRLQW KROGHU RQO\
• 0? RQ H[HFXWLRQ WKH 7HQGHU )RUP WDNHV HIIHFW DV D GHHG
• 1? WKH H[HFXWLRQ RI WKH 7HQGHU )RUP ZLOO FRQVWLWXWH VXFK 6KDUHKROGHU¶V VXEPLVVLRQ WR WKH MXULVGLFWLRQ RI WKH FRXUWV RI (QJODQG DQG :DOHV LQ UHODWLRQ WR DOO PDWWHUV DULVLQJ RXW RI RU LQ FRQQHFWLRQ ZLWK WKH 7HQGHU 2IIHU RU WKH 7HQGHU )RUP DQG
• 2? LI WKH DSSRLQWPHQW RI \$WWRUQH\ SURYLVLRQ XQGHU SDUDJUDSK &? DERYH VKDOO EH XQHQIRUFHDEOH RU LQYDOLG RU VKDOO QRW RSHUDWH VR DV WR DIIRUG DQ\ GLUHFWRU RU RIILFHU RI 0RUJDQ 6WDQOH\ WKH EHQHILW RU DXWKRULW\ H[SUHVVHG WR EH JLYHQ WKHUHLQ WKH 6KDUHKROGHU VKDOO ZLWK DOO SUDFWLFDEOH VSHHG GR DOO VXFK DFWV DQG WKLQJV DQG H[HFXWH DOO VXFK GRFXPHQWV WKDW PD\ EH UHTXLUHG WR HQDEOH 0RUJDQ 6WDQOH\ WR VHFXUH WKH IXOO EHQHILWV RI SDUDJUDSK &? DERYH

(DFK 6KDUHKROGHU WR ZKLFK WKLV SDUDJUDSK DSSOLHV KHUHE\ FRQVHQWV WR WKH DVVLJQPHQW E\ 0RUJDQ 6WDQOH\ RI DOO VXFK EHQHILW DV 0RUJDQ 6WDQOH\ PD\ KDYH LQ DQ\ FRYHQDQWV UHSUHVHQWDWLRQV DQG ZDUUDQWLHV LQ UHVSHFW RI WKH 2UGLQDU\ 6KDUHV ZKLFK DUH VXFFHVVIXOO\ WHQGHUHG XQGHU WKH 7HQGHU 2IIHU

\$ UHIHUHQFH LQ WKLV SDUDJUDSK WR D 6KDUHKROGHU LQFOXGHV D UHIHUHQFH WR WKH SHUVRQ RU SHUVRQV H[HFXWLQJ WKH 7HQGHU )RUP DQG LQ WKH HYHQW RI PRUH WKDQ RQH SHUVRQ H[HFXWLQJ D 7HQGHU )RUP WKH SURYLVLRQV RI WKLV SDUDJUDSK ZLOO DSSO\ WR WKHP MRLQWO\ DQG VHYHUDOO\

(/(&7521,& 7(1'(56

(DFK 6KDUHKROGHU E\ ZKRP RU RQ ZKRVH EHKDOI DQ (OHFWURQLF 7HQGHU LV PDGH LUUHYRFDEO\ XQGHUWDNHV UHSUHVHQWV ZDUUDQWV DQG DJUHHV WR DQG ZLWK 0RUJDQ 6WDQOH\ IRU LWVHOI DQG RQ EHKDOI RI :KLWEUHDG? VR DV WR ELQG VXFK 6KDUHKROGHU DQG LWV KLV RU KHU SHUVRQDO UHSUHVHQWDWLYHV KHLUV VXFFHVVRUV DQG DVVLJQV WKDW

\$? WKH LQSXW RI WKH 77( ,QVWUXFWLRQ ZLOO FRQVWLWXWH DQ RIIHU WR VHOO WR 0RUJDQ 6WDQOH\ VXFK QXPEHU RI 2UGLQDU\ 6KDUHV DV DUH VSHFLILHG LQ WKH 77( ,QVWUXFWLRQ RQ DQG VXEMHFW WR WKH WHUPV DQG conditions set out or referred to in this Circular and that, once the TTE Instruction has settled, such tender shall be irrevocable;

• (B) such Shareholder is the legal and beneficial owner and has full power and authority to tender, sell, assign or transfer any or all of the Ordinary Shares in respect of which such offer is accepted (together with all rights attaching thereto) and, when the same are purchased by Morgan Stanley, Morgan Stanley will acquire such Ordinary Shares with full title guarantee and free from all liens, charges, encumbrances, equitable interests, rights of pre-emption or other third party rights of any nature and together with all rights attaching thereto on or after the Closing the right to receive all dividends and other distributions declared, paid or made after that date;
• (C) the input of the TTE instruction will, subject to the Tender Offer becoming unconditional, constitute the irrevocable appointment of any director or officer of Morgan Stanley as such Shareholder's attorney and/or agent ("Agent"), and an irrevocable instruction to the Agent to complete and execute all or any documents or input any instruction into CREST at the Agent's discretion in relation to the Ordinary Shares referred to in paragraph (A) above in favour of Morgan Stanley or such other person or persons as Morgan Stanley may direct, and to deliver any documents or input any instruction into CREST at the discretion of the Agent relating to such Ordinary Shares, and to do all such other acts and things as may in the opinion of such Agent be necessary or expedient for the purpose of, or in connection with, the Tender Offer and to vest in Morgan Stanley or its nominee(s) or such other person(s) as Morgan Stanley may direct such Ordinary Shares;
• (D) the input of the TTE Instruction will, subject to the Tender Offer becoming unconditional, constitute the irrevocable appointment of Link Asset Services as such Shareholder's escrow agent and an irrevocable instruction and authority to the Escrow Agent: (i) subject to the Tender Offer becoming unconditional, to transfer to Morgan Stanley by means of CREST (or to such person or persons as Morgan Stanley may direct) all of the Ordinary Shares referred to in paragraph (A) above; and (ii) if the Tender Offer does not become unconditional and lapses or is terminated, or such Ordinary Shares include Ordinary Shares which have not been successfully tendered under the Tender Offer, as promptly as practicable after the lapsing or termination of the Tender Offer, or after the unsuccessful tender, to transfer the said Ordinary Shares back to the original available balances from which those Ordinary Shares came;
• (E) such Shareholder agrees to ratify and confirm each and every act or thing which may be done or effected by Morgan Stanley or any of its directors or officers or any person nominated by Morgan Stanley in the proper exercise of its or his or her powers and/or authorities hereunder;
• (F) if so required by Morgan Stanley, such Shareholder shall do all such acts and things as shall be necessary or expedient and execute any additional documents deemed by Morgan Stanley to be desirable, in each case to complete the purchase of the Ordinary Shares referred to in paragraph (A) and/or to perfect any of the authorities expressed to be given hereunder;
• (G) such Shareholder, if an Overseas Shareholder, is a Qualifying Shareholder and has fully observed any applicable legal requirements, obtained any requisite consents and complied with all applicable formalities and that the invitation under the Tender Offer may be made to such Shareholder under the laws of the relevant jurisdiction;
• (H) such Shareholder's offer to sell Ordinary Shares to Morgan Stanley, including the input of the TTE Instruction, and any acceptance thereof, shall not be unlawful under the laws of any jurisdiction;
• (I) such Shareholder has not received or sent copies or originals of this Circular, the Tender Form or any related documents in, into or from a Restricted Jurisdiction and has not otherwise utilised in connection with the Tender Offer, directly or indirectly, the mails of, or any means or instrumentality (including, without limitation, facsimile transmission, telex, telephone and e-mail) of interstate or foreign commerce of, or any facilities of a national securities exchange of, any Restricted Jurisdiction at the input of and settlement of the relevant TTE Instruction and that the TTE Instruction has not been sent from a Restricted Jurisdiction and such Shareholder is accepting the Tender Offer from outside any Restricted Jurisdiction;
• (J) the input of the TTE Instruction constitutes the irrevocable appointment of the Receiving Agent as the paying agent for the purposes of receipt of the consideration payable to such Shareholder pursuant to the Tender Offer and the receiving Agent of such consideration will

discharge fully any obligation of Morgan Stanley to pay such Shareholder the consideration to which it, he or she is entitled under the Tender Offer;

• (K) the input of the TTE Instruction will constitute such Shareholder's submission to the jurisdiction of the courts of England and Wales in relation to all matters arising out of or in connection with the Tender Offer;
• (L) if, for any reason, any Ordinary Shares in respect of which a TTE Instruction has been made are, prior to the Closing Date, converted into certificated form, the Electronic Tender in respect of such Ordinary Shares shall cease to be valid and the Shareholder will need to comply with the procedures for tendering Ordinary Shares in certificated form as set out in this Part III (Details of the Tender Offer) in respect of the Ordinary Shares so converted, if it, he or she wishes to make a valid tender of such Ordinary Shares pursuant to the Tender Offer; and
• (M) if the appointment of Agent provision under paragraph (C) above shall be unenforceable or invalid or shall not operate so as to afford any director or officer of Morgan Stanley the benefit or authority expressed to be given therein, the Shareholder shall with all practicable speed do all such acts and things and execute all such documents that may be required to enable Morgan Stanley to secure the full benefits of paragraph (C) above.

Each Shareholder to which this paragraph 5 applies hereby consents to the assignment by Morgan Stanley of all such benefit as Morgan Stanley may have in any covenants, representations and warranties in respect of the Ordinary Shares which are successfully tendered under the Tender Offer.

6. OVERSEAS SHAREHOLDERS

• 6.1 Overseas Shareholders should inform themselves about and observe any applicable legal regulatory requirements. In addition, the attention of Shareholders who are resident in the United States is drawn to the Notice for US Shareholders on page 2 of this Circular. If you are in any doubt about your position, you should consult your professional adviser in the relevant jurisdiction.
• 6.2 The making of the Tender Offer in, or to persons who are citizens or nationals of, or resident in, jurisdictions outside the United Kingdom or to custodians, nominees or trustees for citizens, nationals or residents of jurisdictions outside the United Kingdom may be prohibited or affected by the laws of the relevant overseas jurisdiction. Shareholders who are Overseas Shareholders should inform themselves about and observe any applicable legal requirements. It is the responsibility of any such Shareholder wishing to tender Ordinary Shares to satisfy itself, himself or herself as to the full observance of the relevant jurisdiction in connection therewith, including the obtaining of any governmental, exchange control or other consents which may be required, the compliance with other necessary formalities and the payment of any transfer or other taxes or other requisite payments due in such jurisdiction. Any such Shareholder will be responsible for payment of any such transfer or other requisite payments due by whomsoever payable and Morgan Stanley and Whitbread and any person acting on their behalf shall be fully indemnified and held harmless by such Shareholder for any such transfer or other taxes or other requisite payments such person may be required to pay. No steps have been taken to qualify the Tender Offer or to authorise the extending of the Tender Offer or the distribution of this Circular or any Tender Form in any territory outside the United Kingdom.
• 6.3 In particular, the Tender Offer is not being made, directly, in or into, or by use of the mails of, or by any means or instrumentality (including, without limitation, facsimile transmission, telex, telephone and e-mail) of interstate or foreign commerce of, or any facilities of a national securities exchange of, any Restricted Jurisdiction and the Tender Offer cannot be accepted by any such use, means, instrumentality or facility or from within any Restricted Jurisdiction. Accordingly, copies of this Circular, the Tender Forms and any related documents must not be mailed or otherwise distributed or sent in, into or from any Restricted Jurisdiction, including to Shareholders with registered addresses in any Restricted Jurisdiction other than the mailing by the Company of this Circular for the purposes of giving notice of the General Meeting. Persons receiving such documents (including, without limitation, custodians, nominees and trustees) should not distribute, send or mail them in, into or from any Restricted Jurisdiction or use such mails or any such means, instrumentality or facility in connection with the Tender Offer, and so doing will render invalid any related purported acceptance of the Tender Offer. Persons wishing to tender pursuant to the Tender Offer must not use such mails or any such means, instrumentality or facility for any purpose directly or indirectly relating to any tender pursuant to the Tender Offer.

Envelopes containing Tender Forms should not be postmarked in any Restricted Jurisdiction or otherwise despatched from any Restricted Jurisdiction and all Shareholders who wish to participate in the Tender Offer must provide addresses outside any Restricted Jurisdiction for the remittance of cash or for the return of Tender Forms, share certificates and/or other documents of title.

• 6.4 If, in connection with making the Tender Offer, notwithstanding the restrictions described above, any person (including, without limitation, custodians, nominees and trustees), whether pursuant to a contractual or legal obligation or otherwise, forwards this Circular, any personalised Tender Form or any related documents in, into or from any Restricted Jurisdiction or uses the mails of, or any means or instrumentality (including, without limitation, facsimile transmission, telex, telephone and e-mail) of interstate or foreign commerce of, or any facilities of a national securities exchange of, any Restricted Jurisdiction in connection with such forwarding, such persons should (a) inform the recipient of such fact; (b) explain to the recipient that such action may invalidate any purported acceptance by the recipient; and (c) draw the attention of the recipient to this paragraph 6 (headed "Overseas Shareholders").
• 6.5 The provisions of this paragraph 6 (headed "Overseas Shareholders") and any other terms of the Tender Offer relating to Overseas Shareholders may be waived, varied or modified as regards specific Shareholders or on a general basis by Morgan Stanley in its absolute discretion, but only if Morgan Stanley is satisfied that such waiver, variation or modification will not constitute or give rise to a breach of applicable securities or other laws. Subject to this, the provisions of this paragraph 6 (headed "Overseas Shareholders") supersede any terms of the Tender Offer inconsistent herewith.

Part IV TAXATION

1. UNITED KINGDOM

THE FOLLOWING COMMENTS DO NOT CONSTITUTE TAX ADVICE AND ARE INTENDED ONLY AS A GUIDE TO CURRENT UNITED KINGDOM LAW AND H.M. REVENUE & CUSTOMS' PUBLISHED PRACTICE (WHICH ARE BOTH SUBJECT TO CHANGE AT ANY TIME, POSSIBLY WITH RETROSPECTIVE EFFECT). THEY RELATE ONLY TO CERTAIN LIMITED ASPECTS OF THE UNITED KINGDOM TAXATION TREATMENT OF SHAREHOLDERS WHO ARE RESIDENT IN THE UNITED KINGDOM FOR UNITED KINGDOM TAX PURPOSES (AND, IF INDIVIDUALS, DOMICILED IN AND ONLY IN THE UNITED KINGDOM FOR UNITED KINGDOM TAX PURPOSES), WHO HOLD, AND WILL HOLD, THEIR ORDINARY SHARES AS INVESTMENTS (AND NOT AS ASSETS TO BE REALISED IN THE COURSE OF A TRADE, PROFESSION OR VOCATION). THEY MAY NOT RELATE TO CERTAIN SHAREHOLDERS, SUCH AS DEALERS IN SECURITIES OR SHAREHOLDERS WHO HAVE (OR ARE DEEMED TO HAVE) ACQUIRED THEIR ORDINARY SHARES BY VIRTUE OF AN OFFICE OR EMPLOYMENT OR SHAREHOLDERS WHO ARE TREATED AS HOLDING THEIR ORDINARY SHARES AS CARRIED INTEREST. SHAREHOLDERS ARE ADVISED TO TAKE INDEPENDENT ADVICE IN RELATION TO THE TAX IMPLICATIONS FOR THEM OF SELLING ORDINARY SHARES PURSUANT TO THE TENDER OFFER.

Taxation of chargeable gains

The sale of Ordinary Shares by a Shareholder to Morgan Stanley pursuant to the Tender Offer should be treated as a disposal of those shares for United Kingdom tax purposes. This may, subject to the Shareholder's individual circumstances and any available exemption or relief, give rise to a chargeable gain (or allowable loss) for the purposes of United Kingdom taxation of chargeable gains ("CGT").

The amount of CGT payable by a Shareholder who is an individual as a consequence of the sale of Ordinary Shares, if any, will depend on his or her own personal tax position. Broadly, a Shareholder whose total taxable gains and income in a given year, including any gains made on the sale of the Ordinary Shares ("Total Taxable Gains and Income"), are less than or equal to the upper limit of the income tax basic rate band applicable in respect of that tax year (the "Band Limit") (£37,500 for 2019/ 2020) will normally be subject to CGT at a rate of 10 per cent. in respect of any gain arising on the sale of his or her Ordinary Shares. A Shareholder whose Total Taxable Gains and Income are more than the Band Limit will normally be subject to CGT at a rate of 10 per cent. in respect of any gain arising on the sale of his or her Ordinary Shares (to the extent that, when added to the Shareholder's other taxable gains and income, the gain is less than or equal to the Band Limit) and at a rate of 20 per cent. in respect of the remainder of the gain arising on the sale of his or her Ordinary Shares. However, no tax will be payable on any gain arising on the sale of Ordinary Shares if the amount of the chargeable gain realised by a Shareholder in respect of the sale, when aggregated with other chargeable gains realised by that Shareholder in the year of assessment (and after taking into account aggregate losses), does not exceed the annual exemption (£12,000 for 2019/2020).

A corporate Shareholder is normally subject to corporation tax on all of its chargeable gains, subject to any relief and exemptions. Corporate Shareholders should be entitled to indexation allowance, calculated only up to and including December 2017.

Transactions in securities

Under the provisions of Part 15 of the Corporation Tax Act 2010, H.M. Revenue & Customs can in certain circumstances counteract corporation tax advantages arising in relation to a transaction or transactions in securities. If these provisions were to be applied by H.M. Revenue & Customs to the Tender Offer, Shareholders who are subject to corporation tax might be liable to corporation tax as if they had received an income amount rather than a capital amount.

No application has been made to H.M. Revenue & Customs for the clearance in respect of the application of Part 15 of the Corporation Tax Act 2010 to the Tender Offer.

Shareholders who are within the charge to corporation tax are advised to take independent advice as to the potential application of the above provisions in light of their own particular motives and circumstances.

Stamp duty and stamp duty reserve tax ("SDRT")

The sale of Ordinary Shares pursuant to the Tender Offer will not give rise to any liability to stamp duty or SDRT for the selling Shareholder.

Stamp duty at a rate of 0.5 per cent. on the Ordinary Shares repurchased, rounded up to the nearest £5.00 if necessary, will be payable by the Company on its purchase of Ordinary Shares from Morgan Stanley.

UNITED STATES 2.

THE FOLLOWING IS A DESCRIPTION OF THE MATERIAL US FEDERAL INCOME TAX CONSEQUENCES OF DISPOSING OF THE ORDINARY SHARES PURSUANT TO THE TENDER OFFER. EXCEPT FOR THE DISCUSSION THAT APPEARS UNDER THE HEADING "US INFORMATION REPORTING AND BACKUP WITHHOLDING". IT APPLIES ONLY TO US SHAREHOLDERS, AS DEFINED BELOW, AND DOES NOT DESCRIBE ALL TAX CONSIDERATIONS THAT MAY BE RELEVANT TO A PARTICULAR SHAREHOLDER'S DECISION TO DISPOSE OF THE ORDINARY SHARES.

Except as described under the heading "US information reporting and backup withholding", this discussion applies only to a US Shareholder that holds Ordinary Shares as a capital asset for US federal income tax purposes. In addition, it does not describe all of the US federal income tax consequences that may be relevant in light of each Shareholder's particular circumstances, including alternative minimum tax consequences, the potential application of the provisions of the Code known as the "Medicare contribution tax" and tax consequences applicable to US Shareholders subject to special rules, such as (i) certain financial institutions, (ii) dealers or traders in securities who use a mark-to-market method of tax accounting, (iii) persons holding Ordinary Shares as part of a hedging transaction, straddle, wash sale, conversion transaction or other integrated transaction or persons entering into a constructive sale with respect to the Ordinary Shares, (iv) persons whose functional currency for US federal income tax purposes is not the US dollar, (v) entities classified as partnerships for US federal income tax purposes, (vi) tax-exempt entities, including an "individual retirement account" or "Roth IRA", (vii) persons that own or are deemed to own ten per cent. or more of the Company's shares, by vote or value, or (viii) persons holding Ordinary Shares in connection with a trade or business conducted outside of the United States.

If an entity that is classified as a partnership for US federal income tax purposes holds Ordinary Shares, the US federal income tax treatment of a partner will generally depend on the status of the partner and the activities of the partnerships holding Ordinary Shares and partners in such partnerships should consult their tax advisers as to the particular US federal income tax consequences of disposing of the Ordinary Shares.

This discussion is based on the United States Internal Revenue Code of 1986, as amended (the "Code"), administrative pronouncements, judicial decisions, final, temporary and proposed Treasury regulations, all as of the date hereof, any of which is subject to change or differing interpretations, possibly with retroactive effect.

A "US Shareholder" is a Shareholder who, for US federal income tax purposes, is a beneficial owner of Ordinary Shares and who is: (i) an individual that is a citizen or resident of the United States, (ii) a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia, or (iii) an estate or trust the income of which is subject to US federal income taxation regardless of its source.

All US Shareholders should consult with their tax advisers concerning the US federal, state, local and non-US tax consequences of disposing of Ordinary Shares in their particular circumstances.

The tax treatment of the Tender Offer will depend in part on whether or not the Company is classified as a passive foreign investment company, or "PFIC", for US federal income tax

purposes. Except as discussed below under "Passive foreign investment company rules", this discussion assumes that the Company is not classified as a PFIC for US federal income tax purposes.

Passive foreign investment company rules

Under the Code, the Company will be a PFIC for any taxable year in which, after the application of certain "look-through" rules with respect to subsidiaries, either (i) 75 per cent. or more of its gross income consists of "passive income," or (ii) 50 per cent. or more of the average quarterly value of its assets consist of assets that produce, or are held for the production of, "passive income."

Based on the Company's current operations, income, assets and certain estimates and projections, including as to the relative values of the Company's assets, the Company believes that historically it has not been a PFIC for US federal income tax purposes and does not expect to become a PFIC in the foreseeable future. If the Company were a PFIC for any year during which a US Shareholder held Ordinary Shares, the Company generally would continue to be treated as a PFIC with respect to that US Shareholder for all succeeding years during which the US Shareholder holds the Ordinary Shares, even if it ceased to meet the threshold requirements for PFIC status.

If the Company were a PFIC for any taxable year during which a US Shareholder held Ordinary Shares (assuming such US Shareholder has not made a timely election described below), gain recognised by a US Shareholder on the disposition of Ordinary Shares pursuant to the Tender Offer would be allocated rateably over the US Shareholder's holding period for those Ordinary Shares. The amounts allocated to the taxable year of the sale or other disposition and to any year before the Company became a PFIC would be taxed as ordinary income. The amount allocated to each other taxable year would be subject to tax at the highest rate in effect for individuals or corporations, as appropriate, for that taxable year, and an interest charge would be imposed on the tax on such amount. Further, to the extent that any distribution received by a US Shareholder on its Ordinary Shares exceeds 125 per cent. of the average of the annual distributions on the Ordinary Shares received during the preceding three years or the US Shareholder's holding period, whichever is shorter, that distribution would be subject to taxation in the same manner as gain, described immediately above.

If the Company were a PFIC, certain elections may be available that would result in alternative tax consequences (such as mark-to-market treatment) of owning and disposing of the Ordinary Shares. US Shareholders should consult their tax advisers to determine whether any of these elections would be available and, if so, what the consequences of the alternative treatments would be in their particular circumstances.

In addition, if the Company were a PFIC or, with respect to a particular US Shareholder, were treated as a PFIC for the taxable year in which the Company paid a dividend or for the prior taxable year, the preferential dividend rates discussed below with respect to dividends paid to certain non-corporate US Shareholders would not apply.

If a US Shareholder owns Ordinary Shares during any year in which the Company is a PFIC, the Shareholder generally must file annual reports containing such information as the US Treasury may require on IRS Form 8621 (or any successor form) with respect to the Company, generally with the Shareholder's federal income tax return for that year. US Shareholders should consult their tax advisers concerning the Company's potential PFIC status and the potential application of the PFIC rules.

Tax consequences of Tender Offer-distribution vs. sale treatment

The Company's purchase of Ordinary Shares from a US Shareholder pursuant to the Tender Offer will be treated either as a sale of the Ordinary Shares or as a distribution by the Company. The purchase will be treated as a sale if the US Shareholder meets any of the three tests discussed below. It will be treated as a distribution if the US Shareholder satisfies none of those tests.

If the purchase of Ordinary Shares from a US Shareholder is treated as a sale, the US Shareholder will recognise gain or loss equal to the difference between the amount of cash received by the US Shareholder and the US Shareholder's tax basis in the Ordinary Shares sold. The gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Ordinary Shares were held for more than one year. A US Shareholder must calculate gain or loss separately for each block of Ordinary Shares that he or she owns, and the gains and losses for each block may not be netted in determining overall gain or loss. A US Shareholder may be able to designate which blocks and the order of such blocks of Ordinary Shares to be tendered pursuant to the Tender Offer. The gain or loss will be US source for foreign tax credit purposes.

If the purchase of Ordinary Shares from a US Shareholder is treated as a distribution by the Company, the full amount of cash received by the US Shareholder for the Ordinary Shares (without any offset for the US Shareholder's tax basis in the purchased Ordinary Shares) will be treated as a dividend to the extent of the Company's current and accumulated earnings and profits allocable to the distribution. The tax basis of the US Shareholder's sold Ordinary Shares will be added to the tax basis of his or her remaining shares of the Company. Because the Company does not currently maintain calculations of earnings and profits for US federal income tax purposes, it is expected that the distributions with respect to the Ordinary Shares will generally be reported as dividends. For noncorporate US Shareholders, such dividends may be "qualified dividend income" that is taxed at the lower applicable capital gains rate provided that certain conditions are satisfied, including certain holding period requirements. Assuming that the Company is not a "United-States-Owned Foreign Corporation" for US federal income tax purposes, the dividend will generally be income from sources outside the United States and will generally be "passive" in each case for purposes of computing the foreign tax credit allowable to a US Shareholders should consult their own tax advisers concerning the rules discussed in this particular circumstances.

To the extent, if any, that payments made by the Company exceed a US Shareholder's allocable share of the Company's current and accumulated earnings and profits, the distribution will first be treated as a non-taxable return of capital, causing a reduction in the US Shareholder's adjusted basis in his or her Ordinary Shares, and any amounts in excess of the US Shareholder's adjusted basis will be treated as capital gain.

Determination of sale or distribution treatment

The Company's purchase of Ordinary Shares pursuant to the Tender Offer will be treated as a sale of the Ordinary Shares by a US Shareholder if: (i) the purchase completely terminates the US Shareholder's equity interest in the Company, (ii) the receipt of cash by the US Shareholder is "not essentially equivalent to a dividend", or (iii) as a result of the purchase there is a "substantially disproportionate" reduction in the US Shareholder's equity interest in the Company.

If none of these tests are met with respect to a particular US Shareholder, then the Company's purchase of Ordinary Shares from that US Shareholder pursuant to the Tender Offer will be treated as a distribution.

In applying these tests, the constructive ownership rules of Section 318 of the Code apply. A US Shareholder is treated as owning not only shares of the Company actually owned by the US Shareholder but also such shares actually (and in some cases constructively) owned by others. Under the constructive ownership rules, a US Shareholder will be considered to own shares of the Company owned, directly or indirectly, by certain members of the US Shareholder's family and certain entities (such as corporations, partnerships, trusts and estates) in which the US Shareholder has an equity interest, as well as shares of the Company that the US Shareholder has an option to purchase.

It may be possible for a tendering US Shareholder to satisfy one of these three tests by contemporaneously selling or otherwise disposing of all or some of the shares that such US Shareholder actually or constructively owns that are not purchased pursuant to the Offer.

Correspondingly, a tendering US Shareholder may not be able to satisfy one of these three tests because of contemporaneous acquisitions of shares of the Company by such US Shareholder or a related party whose shares are attributed to such US Shareholders should consult their own tax advisers regarding the tax consequences of such sales or acquisitions in their particular circumstances.

Complete termination. A purchase of Shares pursuant to the will result in a "complete termination" of the US Shareholder's interest in the Company if, immediately after the sale, either: (a) the US Shareholder owns, actually and constructively, no shares of the Company; or (b) the US Shareholder actually owns no shares of the Company and effectively waives constructive ownership of any constructively owned shares of the Company under the procedures described in Section 302(c)(2) of the Code. If a US Shareholder desires to file such a waiver, the US Shareholder should consult his or her own tax adviser.

Not essentially equivalent to a dividend. A purchase of Ordinary Shares pursuant to the Tender Offer will be treated as "not essentially equivalent to a dividend" if it results in a "meaningful reduction" in the selling US Shareholder's proportionate interest in the Company. Whether a US Shareholder meets this test will depend on relevant facts and circumstances. In measuring the change, if any, in a US Shareholder's proportionate interest in the Company, the meaningful reduction test is applied by taking into account all Ordinary Shares that the Company purchases pursuant to the Tender Offer, including Ordinary Shares purchased from other US Shareholders.

The Internal Revenue Service (the "IRS") has held in a published ruling that, under the particular facts of that ruling, a small reduction in the percentage share ownership of a small minority shareholder in a publicly and widely held corporation who did not exercise any control over corporate affairs constituted a "meaningful reduction". If, taking into account the constructive ownership rules of Section 318 of the Code, a US Shareholder owns Ordinary Shares that constitute only a minimal interest in the Company and does not exercise any control over the affairs of the Company, any reduction in the US Shareholder's percentage ownership interest in the Company should be a "meaningful reduction". Such selling US Shareholder should, under these circumstances, be entitled to treat his or her sale of Ordinary Shares pursuant to the Tender Offer as a sale for US federal income tax purposes. US Shareholders should consult their own tax advisers with respect to the application of the "not essentially equivalent to a dividend" test in their particular circumstances.

In the case of a corporate US Shareholder, if cash received pursuant to the Tender Offer is treated as a dividend, the resulting dividend income will not qualify for the dividends-received deduction otherwise generally available to corporate US Shareholders.

Substantially disproportionate. A purchase of Ordinary Shares pursuant to the Tender Offer will be "substantially disproportionate" as to a US Shareholder if (i) the percentage of the then outstanding Ordinary Shares actually and constructively owned by such US Shareholder immediately after the purchase is less than 80 per cent. of the percentage of the outstanding Ordinary Shares actually and constructively owned by such US Shareholder immediately before the purchase, and (ii) the percentage of the outstanding voting stock of the Company actually and constructively owned by such US Shareholder immediately after the purchase is less than 80 per cent. of the percentage of the outstanding voting stock of the Company actually and constructively owned by such US Shareholder immediately before the purchase. Shareholders should consult their own tax advisers with respect to the application of the "substantially disproportionate" test in their particular circumstances.

The Company cannot predict whether there will be sale or distribution treatment. The Company cannot predict whether or the extent to which the Tender Offer will be undersubscribed or oversubscribed. If the Tender Offer is oversubscribed, proration of tenders pursuant to the Tender Offer will cause the Company to accept fewer Ordinary Shares than are tendered. Consequently, the Company can give no assurance that a sufficient number of any US Shareholder's Ordinary Shares will be purchased pursuant to the Tender Offer to ensure that such purchase will be treated as a sale, rather than as a distribution, for US federal income tax purposes under the rules discussed above.

Consequences to US Shareholders who do not sell Ordinary Shares pursuant to the Tender Offer

US Shareholders who do not sell Ordinary Shares pursuant to the Tender Offer will not incur any US federal income tax liability as a result of the consummation of the Tender Offer.

US information reporting and backup withholding

Payments made in respect of sales of Ordinary Shares pursuant to the Tender Offer which are not considered to be effected at an office outside the US under US Treasury Regulations may be reported to the IRS and the relevant Shareholder as may be required under applicable regulations. A backup withholding tax at the rate of 24 per cent. may be deducted from payments described in the preceding sentence if the relevant Shareholder fails to certify under penalties of perjury: (i) in the case of a Shareholder that is a US Shareholder is a US Shareholder is a US Shareholder, that the taxpayer identification number provided is correct (or that such Shareholder is awaiting a taxpayer identification number) and that such Shareholder is not subject to backup withholding, or (ii) in the case of a Shareholder that is not a US Shareholder, that such Shareholder is an exempt foreign person.

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¶V ZHEVLWH DW ZZZLUVJRYIRUPV LQVWUXFWLRQV

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

&RSLHV RI WKH LQIRUPDWLRQ UHWXUQV ILOHG ZLWK WKH ,56 PD\ EH PDGH DYDLODEOH WR WKH WD[ DXWKRULWLHV LQ WKH FRXQWU\ LQ ZKLFK WKH UHOHYDQW 6KDUHKROGHU UHVLGHV

7KH EDFNXS ZLWKKROGLQJ WD[ LV QRW DQ DGGLWLRQDO WD[ \$ 6KDUHKROGHU PD\ JHQHUDOO\ REWDLQ D UHIXQG RU FUHGLW RI DQ\ DPRXQWV ZLWKKHOG XQGHU WKH EDFNXS ZLWKKROGLQJ UXOHV WKDW H[FHHG LWV 86 IHGHUDO LQFRPH WD[ OLDELOLW\ LI DQ\ SURYLGHG DQ\ FODLP IRU UHIXQG RU FUHGLW LV ILOHG ZLWK WKH ,56 LQ D WLPHO\ PDQQHU

Part V POTENTIAL FURTHER STAGE OF THE RETURN OF VALUE

If the full £2 billion is not returned to Shareholders through the Tender Offer, the Board will consider whether and how best to return the remaining amount to Shareholders in light of the circumstances prevailing following completion of the Tender Offer, including the level of take up of the Tender Offer, the extent of any amount not returned to Shareholders, the relative cost and convenience of available methods of returning the balance, and whether there are any more value-creating alternative uses for the cash.

1. ON-MARKET BUYBACK OF ORDINARY SHARES

One means by which all or part of the £2 billion could be returned to Shareholders in any further stage is through an extension of the Share Buyback Programme.

As explained in paragraph 3 of Part I (Letter from the Chairman) of this Circular, in addition to the General Buyback Authority which is being sought at the Company's AGM convened for 19 June 2019, the Company is seeking a further authority at the General Meeting to buy back up to a maximum of 8,693,320 Ordinary Shares, representing approximately 4.99 per cent. of the Issued Ordinary Share Capital as at the Latest Practicable Date (the "Additional Buyback Authority"). Ordinary Shares purchased by the Company pursuant to the Additional Buyback Authority will be cancelled. The maximum and minimum prices to be paid under the Additional Buyback Authority are set out in Resolution 4 in the Notice of General Meeting.

The Board intends to limit the use of the Additional Buyback Authority in the following ways. The Additional Buyback Authority will only be used:

• (A) for the purposes of any further stage of the Return of Value, that is, in the event, and then only to the extent, that the Tender Offer has returned less than the full sum of £2 billion to Shareholders; and
• (B) to the extent that Ordinary Shares acquired under the Additional Buyback Authority would not, when aggregated with the number of Ordinary Shares acquired under the Tender Offer, exceed 43,466,603 Ordinary Shares.

2. SPECIAL DIVIDEND

Another means by which all or part of the £2 billion could be returned to Shareholders in any further stage is a Special Dividend. Any Special Dividend would return cash to all Shareholders pro rata to the size of their shareholdings.

2.1 Share Consolidation

In the event that all or part of any further stage of the Return of Value were to be undertaken by payment of the Special Dividend, it may be appropriate for such Special Dividend to be accompanied by a Share Consolidation. As any Share Consolidation requires shareholder approval, that authority is being sought now so that, if the Board does subsequently decide to pay a Special Dividend to return all or part of any amount not returned by the Tender Offer, the Company would be in a position to do so quickly and without the delay and cost of convening a separate general meeting at that time. The terms of the relevant resolution only allow the Board to use the authority to effect a Share Consolidation in connection with the payment of the Special Dividend(s).

The purpose of any Share Consolidation would be to seek to ensure that, to the extent reasonably practicable and subject to market fluctuations, the market price of one New Ordinary Share immediately after the payment of a Special Dividend would be approximately equal to the market price of one Ordinary Share immediately beforehand. The Share Consolidation should also assist the comparability of financial information in relation to the Company that is expressed on a per-share basis before and after any Special Dividend.

Accordingly, under any Share Consolidation, the number of Ordinary Shares in issue would be reduced by a percentage broadly equivalent to the quantum of the Special Dividend as a proportion of the Company's market capitalisation at that time.

Following any Share Consolidation, Shareholders would own the same proportion of the Company as they did immediately prior to the Share Consolidation taking effect (subject to the treatment of fractional entitlements) but would hold a smaller number of New Ordinary Shares than the number of Ordinary Shares held immediately prior to the Share Consolidation.

Application would be made for the New Ordinary Shares resulting from the Share Consolidation to be admitted to the Official List and to trading on the Main Market. Subject to their admission, New Ordinary Shares would be traded on the Main Market in the same way as Ordinary Shares and would be equivalent in all respects to Ordinary Shares (including as to dividend, voting and other rights), with the exception of the difference in nominal value. General market transactions would continue to be settled within the CREST system.

2.2 Consolidation ratio

The consolidation ratio cannot be set at this time as it will depend on various matters, including the level of take-up under the Tender Offer, the quantum of any proposed Special Dividend and the future price of an Ordinary Share at the time of any proposed Special Dividend. As provided in Resolution 2 to be passed at the General Meeting, the consolidation ratio would be set by the Directors. The ratio, once set, would be notified to Shareholders via a Requlatory Information Service. The consolidation ratio would be expected to be calculated by dividing (i) the Company's market capitalisation at the Distribution Record Date less the quantum of the Special Dividend by (ii) the Company's market capitalisation at the Distribution Record Date, subject to such amendments as the Directors may determine to deal with fractions, rounding or other practical problems or matters which may result from such division and/or to achieve a ratio which in their judgment is the most appropriate to seek to maintain comparability of the Company's share price and/or earnings per share before and after the Special Dividend.

In order to ensure that a whole number of New Ordinary Shares is created following the implementation of the Share Consolidation, it is proposed that the Company may issue a small number of Ordinary Shares to one of the Company's employee benefit trusts or may repurchase a small number of Ordinary Shares under an existing authority, immediately prior to the Distribution Record Date. The number of Ordinary Shares to be issued or repurchased would be such as will result in the total number of Ordinary Shares (including any held in treasury) being exactly divisible in accordance with the consolidation ratio.

2.3 Fractional entitlements to New Ordinary Shares following the Share Consolidation

A Shareholder may have a fractional entitlement to a New Ordinary Share following the Share Consolidation. For example, if the consolidation ratio were 3:4 (New Ordinary Shares: existing Ordinary Shares), a Shareholder holding 11 Ordinary Shares would, after such a Share Consolidation, be entitled to 8 New Ordinary Shares and a fractional entitlement of one-quarter of a New Ordinary Share. By contrast, a Shareholder holding 12 Ordinary Shares would, after such a Share Consolidation, be entitled to 9 New Ordinary Shares and no fractional entitlement.

Under a Share Consolidation, no fractions of New Ordinary Shares would be received by any Shareholder. The number of New Ordinary Shares to which a Shareholder is entitled will be rounded down to the nearest whole New Ordinary Share. Fractional entitlements to New Ordinary Shares would be aggregated and sold as soon as practicable by instructing a broker to sell them in the open market at the then-available prices. The net proceeds of the sale (after deduction of all expenses and commissions incurred) will be distributed to the Shareholders entitled to them, save that, where the net proceeds from the sale of any such fractional entitlement are less than £5.00, Shareholders would have no entitlement or right to the proceeds of sale but instead any such proceeds would be retained by the Company (or, at the discretion of the Directors, donated to Great Ormond Street Hospital Children's Charity (registered charity number 1160024)).

3. IMPORTANT NOTE ON THE POTENTIAL FURTHER STAGE OF THE RETURN OF VALUE

In order to return the balance of the £2 billion to Shareholders, the Board may combine its use of the Additional Buyback Authority with use of the General Buyback Authority, if granted to the Company at its 2019 AGM, and/or a Special Dividend. As mentioned at paragraph 3.1 of Part I (Letter from the Chairman) of this Circular, the Board only intends to use the General Buyback Authority for the purposes of any further stage of the Return of Value after the Additional Buyback Authority, if granted to the Company at the General Meeting, has been used in full.

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

7KH %RDUG LQWHQGV WR DQQRXQFH WKH PRVW DSSURSULDWH PHWKRG IRU LPSOHPHQWLQJ DQ\ IXUWKHU VWDJH RI WKH 5HWXUQ RI 9DOXH DV VRRQ DV SUDFWLFDEOH DQG DSSURSULDWH IROORZLQJ FRPSOHWLRQ RI WKH 7HQGHU 2IIHU

7KHUH PD\ EH FLUFXPVWDQFHV LQ ZKLFK WKHUH ZRXOG EH QR IXUWKHU VWDJH RI WKH 5HWXUQ RI 9DOXH LQFOXGLQJ ZKHUH WKH 7HQGHU 2IIHU LV IXOO\ VXEVFULEHG ,Q WKHVH FLUFXPVWDQFHV 6KDUHKROGHUV ZKR GR QRW WHQGHU DQ\ RI WKHLU 2UGLQDU\ 6KDUHV XQGHU WKH 7HQGHU 2IIHU ZLOO QRW SDUWLFLSDWH LQ WKH 5HWXUQ RI 9DOXH

7KH %RDUG UHVHUYHV WKH ULJKW QRW WR SURFHHG ZLWK RU WR PRGLI\ DQ\ IXUWKHU VWDJH RI WKH 5HWXUQ RI 9DOXH LI LW GHWHUPLQHV DW DQ\ WLPH WKDW LW ZRXOG EH LQ WKH EHVW LQWHUHVWV RI 6KDUHKROGHUV DV D ZKROH WR GR VR

Part VI ADDITIONAL INFORMATION

1. DIRECTORS AND REGISTERED OFFICE

The names and principal functions of the Directors are as follows:

Adam Crozier	Chairman
Alison Brittain	Chief Executive Officer
Nicholas Cadbury	Group Finance Director
Louise Smalley	Group HR Director
Richard Gillingwater	Senior Independent Director
David Atkins	Non-executive Director
Frank Fiskers	Non-executive Director
Chris Kennedy	Non-executive Director
Deanna Oppenheimer	Non-executive Director
Susan Tavlor Martin	Non-executive Director

The Company is a public limited company and was incorporated and registered in England and Wales on 1 December 2000 as a public company limited by shares. The Company's registered office and corporate headquarters is at Whitbread Court, Houghton Hall Business Park, Porz Avenue, Dunstable, Bedfordshire LU5 5XE.

The principal laws and legislation under which the Company operates, and under which the Ordinary Shares have been issued, is the Companies Act 2006 and regulations made thereunder.

2. WARRANTS AND OPTIONS

As at the Latest Practicable Date, the total number of outstanding options to subscribe for Ordinary Shares, and the proportions of the Issued Ordinary Share Capital that they currently represent and that they will represent if the full authority to buy back shares is used pursuant to the Tender Offer, the Additional Buyback Authority and the General Buyback Authority, are set out in the table below:

	Percentage of Issued Ordinary Share Capital as at the Latest	Percentage of Issued Ordinary Share Capital if the maximum permitted number of Ordinary Shares is purchased pursuant to	Percentage of Issued Ordinary Share Capital if both the maximum permitted number of Ordinary Shares is purchased pursuant to the General Buyback Authority and the maximum permitted number of Ordinary Shares is purchased pursuant to
Number of options	Practicable Date	the Tender Offer (see note)	the Tender Offer
987,754	0.57	0.76	0.87

Note: No Ordinary Shares can be acquired under the Additional Buyback Authority in circumstances where the maximum permitted number of Ordinary Shares has been purchased pursuant to the Tender Offer.

As at the Latest Practicable Date, there are no outstanding warrants to subscribe for Ordinary Shares.

OPTION AGREEMENT 3.

On 31 May 2019, the Company entered into the Option Agreement with Morgan Stanley. Pursuant to the terms of the Option Agreement, and conditional on the Tender Offer becoming unconditional in all respects and not lapsing or terminating in accordance with its terms and on Morgan Stanley being registered as the holder of the Ordinary Shares purchased by Morgan Stanley pursuant to the Tender Offer, the Company has granted a put option to Morgan Stanley which, on exercise, obliges the Company to purchase from Morgan Stanley at a price equal to the Strike Price the Ordinary Shares purchased by Morgan Stanley pursuant to the Tender Offer. Also under the Option Agreement, Morgan Stanley has granted the Company a call option which, on exercise, obliges Morgan Stanley to sell to the Company, at a price equal to the Strike Price, the Ordinary Shares purchased by Morgan Stanley pursuant to the Tender Offer.

&216(17

-3 0RUJDQ &D]HQRYH KDV JLYHQ DQG KDV QRW ZLWKGUDZQ LWV ZULWWHQ FRQVHQW WR WKH LVVXH RI WKLV &LUFXODU ZLWK WKH LQFOXVLRQ RI LWV QDPH DQG UHIHUHQFHV WR LW LQ WKH IRUP DQG FRQWH[W LQ ZKLFK WKH\ DSSHDU

0RUJDQ 6WDQOH\ KDV JLYHQ DQG KDV QRW ZLWKGUDZQ LWV ZULWWHQ FRQVHQW WR WKH LVVXH RI WKLV &LUFXODU ZLWK WKH LQFOXVLRQ RI LWV QDPH DQG UHIHUHQFHV WR LW LQ WKH IRUP DQG FRQWH[W LQ ZKLFK WKH\ DSSHDU

7\$.(29(5 &2'(

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

:KHQ D FRPSDQ\ SXUFKDVHV LWV RZQ YRWLQJ VKDUHV DQ\ UHVXOWLQJ LQFUHDVH LQ WKH SHUFHQWDJH RI YRWLQJ ULJKWV KHOG E\ D VKDUHKROGHU RU JURXS RI VKDUHKROGHUV DFWLQJ LQ FRQFHUW ZLOO EH WUHDWHG DV DQ DFTXLVLWLRQ IRU WKH SXUSRVH RI 5XOH

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

Part VII DEFINITIONS

The following definitions apply throughout this Circular unless the context requires otherwise:

Additional Buyback Authority	has the meaning given to that term in paragraph 1 of Part V (Potential further stage of the Return of Value) of this Circular;
AGM	annual general meeting;
Attorney	has the meaning given to that term in paragraph 4(C) of Part III (Details of the Tender Offer) of this Circular;
Average VWAP	the arithmetic average of the Daily VWAPs for the Trading Days comprising the Relevant Trading Period, as determined by Morgan Stanley (acting reasonably and on the basis of industry standard metrics and information);
Bacs payment	payment by means of the electronic payment system operated by Bacs Payment Schemes Limited;
Board or Directors	the board of directors of Whitbread;
Business Day	a day other than a Saturday or Sunday or public holiday in England and Wales on which banks are open in London for general commercial business;
certificated or in certificated form	recorded on the Register as being held in certificated form (that is, not in CREST);
Circular	this document;
Closing Date	19 July 2019 or such other date as may be determined in accordance with paragraph 2.26 of Part III (Details of the Tender Offer) of this Circular;
Coca-Cola	The Coca-Cola Company, a company incorporated in the State of Delaware and whose registered office is at 1 Coca-Cola Plaza, NW Atlanta, Georgia 30313;
Company or Whitbread	Whitbread PLC, a public limited company incorporated in England and Wales with registered number 04120344, whose registered office is at Whitbread Court, Houghton Hall Business Park, Porz Avenue, Dunstable, Bedfordshire LU5 5XE;
Conditions	has the meaning given to that term in paragraph 2.1 of Part III (Details of the Tender Offer) of this Circular;
Costa	Costa Limited, a private limited company incorporated in England and Wales with registered number 01270695;
CREST	the paperless settlement procedure operated by Euroclear enabling system securities to be evidenced otherwise than by certificates and transferred otherwise than by written instrument;
CREST Manual	the rules governing the operation of CREST as published by Euroclear and as amended from time to time;
CREST Member	a person who has been admitted by Euroclear as a system- member (as defined in the CREST Regulations);
CREST Participant	a person who is, in relation to CREST, a system participant (as defined in the CREST Regulations);
CREST Proxy Instruction	a proxy appointment or instruction made via CREST authenticated in accordance with Euroclear's specifications and containing the information set out in the CREST Manual;

CREST Regulations	the Uncertificated Securities Regulations 2001 (SI 2001/ 3755), as amended from time to time;
CREST Sponsor	a CREST Participant admitted to CREST as a CREST sponsor, being a sponsoring system participant (as defined in the CREST Regulations);
CREST Sponsored Member	a CREST Member admitted to CREST as a sponsored member;
Daily VWAP	the daily volume-weighted average price per Ordinary Share for a particular Trading Day as derived from the trading in the Ordinary Shares on the Main Market on the relevant Trading Day and taken from Bloomberg page VWAP (or such other Bloomberg page that may replace it from time to time) with Custom Condition Codes referencing all electronically matched trades automatically executed on the Main Market, including all trades executed during the opening and closing auctions on the Main Market but excluding any off-order book transactions (and where any such matters require the exercise of discretion, such discretion shall be exercised by Morgan Stanley (acting reasonably and on the basis of industry standard metrics and available information));
Disclosure Guidance and Transparency Rules	the disclosure guidance and transparency rules made under Part VI of FSMA (and contained in the FCA's publication of the same name), as amended from time to time;
Disposal	has the meaning given to that term in paragraph 1.1 of Part I (Letter from the Chairman) of this Circular;
Distribution Record Date	means the record date for a Special Dividend;
Electronic Tender	has the meaning given to that term in paragraph 3.3 of Part III (Details of the Tender Offer) of this Circular;
Escrow Agent	Link Asset Services;
Euroclear	Euroclear UK & Ireland Limited, the operator of CREST;
Excluded Price	has the meaning given to that term in paragraph 2.11 of Part III (Details of the Tender Offer) of this Circular;
FCA or Financial Conduct Authority	the Financial Conduct Authority of the United Kingdom;
Financial Advisers	J.P. Morgan Cazenove and Morgan Stanley together;
Form of Proxy	the form of proxy enclosed with this Circular (where applicable) for use by Shareholders in connection with the General Meeting;
FSMA	Financial Services and Markets Act 2000, as amended from time to time;
General Buyback Authority	has the meaning given to that term in paragraph 3 of Part I (Letter from the Chairman) of this Circular;
General Meeting	the general meeting of Whitbread, to be held at Church House Conference Centre, Dean's Yard, Westminster, London SW1P 3NZ at 2.45 p.m. on 19 June 2019 or as soon thereafter as the Company's AGM convened for that date has concluded or been adjourned, or any adjournment thereof, notice of which is set out at the end of this Circular;
Group	Whitbread together with its subsidiaries and subsidiary undertakings;

Guaranteed Entitlement	has the meaning given to that term in, as applicable, paragraph 2.16, 2.17 or 2.18 of Part III (Details of the Tender Offer) of this Circular;
Issued Ordinary Share Capital	the Company's issued ordinary share capital, excluding any treasury shares and excluding, for the avoidance of doubt, the B Shares (as defined in the articles of association of the Company) and C Shares (as defined in the articles of association of the Company);
J.P. Morgan Cazenove	J.P. Morgan Securities plc (which conducts its UK investment banking activities as J.P. Morgan Cazenove);
Latest Practicable Date	29 May 2019, being the latest practicable date prior to the publication of this Circular;
Link Asset Services	the trading name of Link Market Services Limited;
Listing Rules	the listing rules made under Part VI of FSMA (and contained in the FCA's publication of the same name), as amended from time to time;
London Stock Exchange	London Stock Exchange plc;
Main Market	the main market for listed securities maintained by the London Stock Exchange;
Market Abuse Regulation	Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse;
Maximum Price	an amount (in pence per Ordinary Share) equal to Average VWAP plus an amount equal to four per cent. of Average VWAP (rounded down to the nearest whole penny);
Member Account ID	the identification code or number attached to any member account in CREST;
Minimum Price	an amount (in pence per Ordinary Share) equal to Average VWAP (rounded down to the nearest whole penny);
Morgan Stanley	Morgan Stanley & Co. International plc;
Net Cash Proceeds	has the meaning given to that term in paragraph 1.1 of Part I (Letter from the Chairman) of this Circular;
New Ordinary Shares	the ordinary shares in the capital of the Company following any Share Consolidation;
Notice of General Meeting	the notice of the General Meeting which is set out at the end of this Circular;
Official List	the list maintained by the FCA in accordance with section 74(1) of FSMA for the purposes of Part VI of FSMA;
Option Agreement	the option agreement described in paragraph 3 of Part VI (Additional Information) of this Circular;
Ordinary Shares	ordinary shares with a nominal value of 76 125 pence each in the capital of Whitbread (or, where the context requires, with such other nominal value as an ordinary share in the Company may have following any Share Consolidation);
Overseas Shareholder	a Shareholder who is resident in, or a citizen of, a jurisdiction outside the United Kingdom;
Participant ID	the identification code or membership number used in CREST to identify a particular CREST Member or other CREST Participant;
Price Cap	£50.00 per Ordinary Share;

3ULFH 5DQJH	WKH UDQJH RI VSHFLILHG SULFHV SHU 2UGLQDU\ 6KDUH EHWZHHQ WKH 0LQLPXP 3ULFH DQG WKH 0D[LPXP 3ULFH LQFOXVLYH? DW ZKLFK 2UGLQDU\ 6KDUHV PD\ EH WHQGHUHG SXUVXDQW WR WKH WHUPV RI WKH 7HQGHU 2IIHU EHLQJ \$ DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH HTXDO WR \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\ % DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI
	\$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\ & DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH
	SHQQ\ ' DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH SHQQ\? DQG ( DQ DPRXQW LQ SHQFH SHU 2UGLQDU\ 6KDUH HTXDO WR \$YHUDJH 9:\$3 SOXV DQ DPRXQW HTXDO WR SHU FHQW RI \$YHUDJH 9:\$3 URXQGHG GRZQ WR WKH QHDUHVW ZKROH
4	SHQQ\ WKH ZHHN SHULRG HQGHG 0D\
4XDOLI\LQJ 6KDUHKROGHUV	6KDUHKROGHUV RWKHU WKDQ WKRVH ZLWK D UHJLVWHUHG DGGUHVV LQ DQ\ RI WKH 5HVWULFWHG -XULVGLFWLRQV
5HFHLYLQJ \$JHQW	/LQN \$VVHW 6HUYLFHV
5HFRUG 'DWH	SP RQ -XO\ RU VXFK RWKHU WLPH DQG GDWH DV PD\ EH GHWHUPLQHG E\ WKH &RPSDQ\ LQ LWV VROH GLVFUHWLRQ LQ WKH HYHQW WKDW WKH &ORVLQJ 'DWH LV DOWHUHG LQ DFFRUGDQFH ZLWK SDUDJUDSK RI 3DUW ,,, 'HWDLOV RI WKH 7HQGHU 2IIHU? RI WKLV &LUFXODU
5HJLVWHU	WKH UHJLVWHU RI PHPEHUV RI :KLWEUHDG
5HJLVWUDU	/LQN \$VVHW 6HUYLFHV
5HJXODWRU\ ,QIRUPDWLRQ 6HUYLFH	RQH RI WKH UHJXODWRU\ LQIRUPDWLRQ VHUYLFHV DXWKRULVHG E\ WKH )&\$ WR UHFHLYH SURFHVV DQG GLVVHPLQDWH UHJXODWRU\ LQIRUPDWLRQ IURP OLVWHG FRPSDQLHV
5HOHYDQW 7UDGLQJ 3HULRG	WKH SHULRG RI ILYH 7UDGLQJ 'D\V XS WR DQG LQFOXGLQJ WKH &ORVLQJ 'DWH
5HVROXWLRQV	WKH UHVROXWLRQV WR EH SURSRVHG DW WKH HQHUDO 0HHWLQJ DV VHW RXW LQ WKH 1RWLFH RI HQHUDO 0HHWLQJ
5HVWULFWHG -XULVGLFWLRQV	\$XVWUDOLD DQG 1HZ =HDODQG
5HWXUQ RI 9DOXH	KDV WKH PHDQLQJ JLYHQ WR WKDW WHUP LQ SDUDJUDSK RI 3DUW , /HWWHU IURP WKH &KDLUPDQ? RI WKLV &LUFXODU
6KDUH %X\EDFN 3URJUDPPH	KDV WKH PHDQLQJ JLYHQ WR WKDW WHUP LQ SDUDJUDSK RI 3DUW , /HWWHU IURP WKH &KDLUPDQ? RI WKLV &LUFXODU
6KDUH &RQVROLGDWLRQ	KDV WKH PHDQLQJ JLYHQ WR WKDW WHUP LQ SDUDJUDSK RI 3DUW , /HWWHU IURP WKH &KDLUPDQ? RI WKLV &LUFXODU
6KDUHKROGHU +HOSOLQH	WKH VKDUHKROGHU WHOHSKRQH KHOSOLQH EHLQJ PDGH DYDLODEOH LQ UHODWLRQ WR WKH 7HQGHU 2IIHU GHWDLOV RI ZKLFK DUH VHW RXW RQ SDJH RI WKLV &LUFXODU
6KDUHKROGHUV	KROGHUV RI 2UGLQDU\ 6KDUHV IURP WLPH WR WLPH

Special Dividend	has the meaning given to that term in paragraph 1.5 of Part I (Letter from the Chairman) of this Circular, and such term shall, if a series of such dividends are to be paid, mean each such dividend;
Strike Price	the per share price at which Morgan Stanley will purchase Ordinary Shares pursuant to the Tender Offer, which will be determined in accordance with the provisions set out in Part III (Details of the Tender Offer) of this Circular and which in any event shall not exceed the Price Cap;
Strike Price Tender	a tender of Ordinary Shares at the Strike Price rather than at a specific price within the Price Range;
subsidiary	has the meaning given to that term in section 1159 of the Companies Act 2006;
subsidiary undertaking	has the meaning given to that term in section 1162 of the Companies Act 2006;
Takeover Code	the City Code on Takeovers and Mergers;
Tender Form	the tender form issued with this Circular to Qualifying Shareholders who hold their Ordinary Shares in certificated form;
Tender Offer	the invitation by Morgan Stanley to Shareholders to tender Ordinary Shares for purchase by Morgan Stanley on the terms and subject to the conditions set out in this Circular and also, in the case of certificated Ordinary Shares only, the Tender Form;
TFE Instruction	a transfer from escrow instruction (as defined by the CREST Manual);
Trading Day	any day on which the Main Market is ordinarily scheduled to open for trading during normal market hours;
Instruction	a transfer to escrow instruction (as defined by the CREST Manual);
UK or United Kingdom	the United Kingdom of Great Britain and Northern Ireland;
uncertificated or in uncertificated form	recorded on the Register as being held in uncertificated form in CREST and title to which, by virtue of the CREST Regulations, may be transferred by means of CREST;
Unconditional Date	the date on and time at which the Tender Offer becomes unconditional, which is expected to be on 23 July 2019;
US or United States	the United States of America, its territories and possessions, any state of the United States of America, the District of Columbia and all other areas subject to its jurisdiction;
US Exchange Act	the US Securities Exchange Act of 1934;
US Shareholder	has the meaning given to that term in paragraph 2 of Part IV (Taxation) of this Circular;
Value Limit	£2 billion;
Volume Limit	43,466,603 Ordinary Shares; and
VWAP	volume-weighted average price.

WHITBREAD PLC

(registered in England and Wales with registered number 04120344)

NOTICE OF GENERAL MEETING

NOTICE IS HEREBY GIVEN that a GENERAL MEETING of Whitbread PLC (the "Company") will be held at Church House Conference Centre, Dean's Yard, Westminster, London SW1P 3NZ at 2.45 p.m. on 19 June 2019 (or as soon thereafter as the Company's annual general meeting convened for that date has concluded or been adjourned) for the purposes of considering and, if thought fit, passing the following resolutions, the first of which will be proposed as a special resolution, the second of which will be proposed as an ordinary resolution, the third of which will be proposed as a special resolution and the fourth of which will be proposed as a special resolution.

Unless otherwise defined herein, capitalised terms used in the following resolutions shall have the meaning ascribed to them in the Company's circular to shareholders dated 31 May 2019 of which this notice forms part.

Special Resolution

1. THAT, in addition to (i) the authority for the purpose of section 701 of the Companies Act 2006 (the "Act") which was approved by special resolution passed at the annual general meeting of the Company held on 27 June 2018, (ii) any authority pursuant to section 701 of the Act as may be approved at the annual general meeting of the Company in 2019 and (iii) any authority pursuant to section 701 of the Act as may be approved under Resolution 4 below, the Company be and is hereby generally and unconditionally authorised for the purposes of section 701 of the Act to make one or more market purchases (within the meaning of section 693(4) of the Act) of its own ordinary shares of 76 22 pence each in the capital of the Company ("ordinary shares") pursuant to, for the purposes of, or in connection with a tender offer for ordinary shares on the terms and in accordance with the arrangements set out or referred to in the circular to the Company's shareholders dated 31 May 2019 (the "Circular") (a copy of which is produced to the meeting and signed for identification purposes by the chairman of the meeting) or otherwise as contemplated by arrangements set out or referred to in the Circular, provided that:

2. (A) the maximum number of ordinary shares hereby authorised to be purchased is 43,466,603;

3. (B) the minimum price, exclusive of all expenses, which may be paid for an ordinary share is the nominal value of an ordinary share;
4. (C) the maximum price, exclusive of all expenses, which may be paid for an ordinary share is £50.00; and
5. (D) the authority conferred by this resolution shall expire on 31 December 2019, save that the Company may before the expiry of such authority make a contract to purchase ordinary shares which will or may be executed wholly or partly after such expiry and the Company may make a purchase of such ordinary shares after such expiry pursuant to such contract.

Ordinary Resolution

1. THAT, in connection with any Special Dividend paid or paid by the Company, the Company and its directors be authorised to, on one or more than one occasion:

2. (A) (i) consolidate each of the ordinary shares from time to time in the Company into one or more (such number being at the discretion of the directors) ordinary shares in the capital of the Company (such shares being "intermediate share(s)"), and (ii) immediately after such consolidation, divide or sub-divide the intermediate share(s) into new ordinary shares in the capital of the Company of such nominal value as the directors may determine; or

3. (B) (i) sub-divide each of the ordinary shares from time to time in the Company into such number of ordinary shares in the capital of the Company as the directors may determine (such shares being "intermediate shares"), and (ii) immediately after such sub-division, consolidate the intermediate shares into new ordinary shares in the Company of such nominal value as the directors may determine,

RQ WKH EDVLV WKDW

• WKH GLUHFWRUV VKDOO KDYH GLVFUHWLRQ WR GHWHUPLQH WKH UHFRUG GDWH DQG WLPH E\ UHIHUHQFH WR ZKLFK DQ\ VXFK FRQVROLGDWLRQ DQGRU GLYLVLRQ RU VXEGLYLVLRQ VKDOO WDNH SODFH
• WKH GLUHFWRUV VKDOO KDYH GLVFUHWLRQ WR PDNH DQ\ DUUDQJHPHQWV ZKLFK WKH\ FRQVLGHU QHFHVVDU\ DSSURSULDWH RU H[SHGLHQW L? WR GHDO ZLWK IUDFWLRQV URXQGLQJ RU RWKHU SUDFWLFDO SUREOHPV RU PDWWHUV ZKLFK PD\ UHVXOW IURP DQ\ VXFK FRQVROLGDWLRQ DQGRU GLYLVLRQ RU VXEGLYLVLRQ RU LL? IRU WKH SXUSRVH RI JLYLQJ HIIHFW WR DQ\ VXFK FRQVROLGDWLRQ DQGRU GLYLVLRQ RU VXEGLYLVLRQ DQG
•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¶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

6SHFLDO 5HVROXWLRQ

7+\$7 VXEMHFW WR WKH 6KDUH &RQVROLGDWLRQ WDNLQJ HIIHFW WKH GHILQLWLRQ RI µµQRPLQDO DPRXQW RU QRPLQDO YDOXH´ LQ WKH DUWLFOHV RI DVVRFLDWLRQ RI WKH &RPSDQ\ EH DPHQGHG E\ VXEVWLWXWLQJ WKH QRPLQDO YDOXH RI WKH 1HZ 2UGLQDU\ 6KDUHV

6SHFLDO 5HVROXWLRQ

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

• \$? QR RUGLQDU\ VKDUHV PD\ EH DFTXLUHG E\ WKH &RPSDQ\ SXUVXDQW WR WKLV DXWKRULW\ LI VXFK DFTXLVLWLRQ ZRXOG FDXVH WKH QXPEHU RI RUGLQDU\ VKDUHV DFTXLUHG LQ DJJUHJDWH SXUVXDQW WR WKH DXWKRULW\ JUDQWHG XQGHU 5HVROXWLRQ DQG WKH DXWKRULW\ JUDQWHG XQGHU WKLV 5HVROXWLRQ WR H[FHHG RUGLQDU\ VKDUHV
• %? WKH PLQLPXP SULFH H[FOXVLYH RI H[SHQVHV? ZKLFK PD\ EH SDLG IRU HDFK RUGLQDU\ VKDUH LV WKH QRPLQDO YDOXH RI WKDW VKDUH
• &? WKH PD[LPXP SULFH H[FOXVLYH RI H[SHQVHV? ZKLFK PD\ EH SDLG IRU HDFK RUGLQDU\ VKDUH LV WKH KLJKHVW RI L? DQ DPRXQW HTXDO WR SHU FHQW DERYH WKH DYHUDJH PDUNHW YDOXH RI DQ RUGLQDU\ VKDUH IRU WKH ILYH EXVLQHVV GD\V LPPHGLDWHO\ SUHFHGLQJ WKH GD\ RQ ZKLFK WKDW RUGLQDU\ VKDUH LV FRQWUDFWHG WR EH SXUFKDVHG DQG LL? WKH KLJKHU RI WKH SULFH RI WKH ODVW LQGHSHQGHQW WUDGH DQG WKH KLJKHVW FXUUHQW LQGHSHQGHQW ELG RQ WKH WUDGLQJ YHQXHV ZKHUH WKH SXUFKDVH LV FDUULHG RXW DW WKH UHOHYDQW WLPH DQG

'? WKLV DXWKRULW\ ZLOO DSSO\ XQWLO WKH FRQFOXVLRQ RI WKH DQQXDO JHQHUDO PHHWLQJ RI WKH &RPSDQ\ WR EH KHOG LQ RU LI HDUOLHU 6HSWHPEHU ? VDYH WKDW WKH &RPSDQ\ PD\ EHIRUH WKH H[SLU\ RI VXFK DXWKRULW\ PDNH D FRQWUDFW WR SXUFKDVH RUGLQDU\ VKDUHV ZKLFK ZLOO RU PD\ EH H[HFXWHG ZKROO\ RU SDUWO\ DIWHU VXFK H[SLU\ DQG WKH &RPSDQ\ PD\ PDNH D SXUFKDVH RI VXFK RUGLQDU\ VKDUHV DIWHU VXFK H[SLU\ SXUVXDQW WR VXFK FRQWUDFW

%\ RUGHU RI WKH %RDUG

&KULV 9DXJKDQ *HQHUDO &RXQVHO DQG &RPSDQ\ 6HFUHWDU\ 0D\

5HJLVWHUHG RIILFH

:KLWEUHDG 3/& :KLWEUHDG &RXUW +RXJKWRQ +DOO %XVLQHVV 3DUN 3RU] \$YHQXH 'XQVWDEOH %HGIRUGVKLUH /8 ;(

5HJLVWHUHG LQ (QJODQG DQG :DOHV 1R

1RWHV WR WKH 1RWLFH RI *HQHUDO 0HHWLQJ

•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
• 7KH UHWXUQ RI D FRPSOHWHG SUR[\ IRUP RU DQ\ HOHFWURQLF RU &5(67 SUR[\ LQVWUXFWLRQ DV GHVFULEHG LQ SDUDJUDSK EHORZ? ZLOO QRW SUHYHQW D VKDUHKROGHU DWWHQGLQJ WKH *HQHUDO 0HHWLQJ DQG YRWLQJ LQ SHUVRQ LI KH ZLVKHV WR GR VR DQG LV VR HQWLWOHG
• 7R EH HIIHFWLYH WKH LQVWUXPHQW DSSRLQWLQJ D SUR[\ WRJHWKHU ZLWK DQ\ SRZHU RI DWWRUQH\ RU RWKHU DXWKRULW\ XQGHU ZKLFK LW LV VLJQHG RU D GXO\ FHUWLILHG FRS\ WKHUHRI PXVW EH UHFHLYHG E\ WKH 5HJLVWUDU DW /LQN \$VVHW 6HUYLFHV 3;6 7KH 5HJLVWU\ %HFNHQKDP 5RDG %HFNHQKDP .HQW %5 78 QRW ODWHU WKDQ SP RQ -XQH RU LQ WKH FDVH RI DQ DGMRXUQPHQW QRW ODWHU WKDQ KRXUV H[FOXGLQJ QRQEXVLQHVV GD\V? EHIRUH WKH WLPH IL[HG IRU WKH KROGLQJ RI WKH DGMRXUQHG PHHWLQJ

3UR[\ DSSRLQWPHQWV VXEPLWWHG YLD WKH LQWHUQHW DW ZZZZKLWEUHDGVKDUHVFRP PXVW EH UHFHLYHG QRW ODWHU WKDQ SP RQ -XQH RU LQ WKH FDVH RI DQ DGMRXUQPHQW QRW ODWHU WKDQ KRXUV H[FOXGLQJ QRQEXVLQHVV GD\V? EHIRUH WKH WLPH IL[HG IRU WKH KROGLQJ RI WKH DGMRXUQHG PHHWLQJ

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

&5(67 SHUVRQDO PHPEHUV RU RWKHU &5(67 VSRQVRUHG PHPEHUV VKRXOG FRQWDFW WKHLU &5(67 VSRQVRU IRU DVVLVWDQFH ZLWK DSSRLQWLQJ SUR[LHV YLD &5(67 )RU IXUWKHU LQIRUPDWLRQ RQ &5(67 SURFHGXUHV OLPLWDWLRQV DQG V\VWHPV WLPLQJV SOHDVH UHIHU WR WKH &5(67 0DQXDO DYDLODEOH YLD ZZZHXURFOHDUFRP? 7KH &RPSDQ\ PD\ WUHDW DV LQYDOLG D SUR[\ DSSRLQWPHQW VHQW E\ &5(67 LQ WKH FLUFXPVWDQFHV VHW RXW LQ 5HJXODWLRQ ?D? RI WKH 8QFHUWLILFDWHG 6HFXULWLHV 5HJXODWLRQV

(QWLWOHPHQW WR DWWHQG DQG YRWH DW WKH PHHWLQJ DQG WKH QXPEHU RI YRWHV ZKLFK PD\ EH FDVW DW WKH PHHWLQJ ZLOO EH GHWHUPLQHG E\ UHIHUHQFH WR WKH UHJLVWHU RI PHPEHUV RI WKH &RPSDQ\ DV DW FORVH RI EXVLQHVV RQ -XQH

,I WKH PHHWLQJ LV DGMRXUQHG HQWLWOHPHQW WR DWWHQG DQG YRWH ZLOO EH GHWHUPLQHG E\ UHIHUHQFH WR WKH UHJLVWHU RI PHPEHUV RI WKH &RPSDQ\ DV DW FORVH RI EXVLQHVV WZR GD\V SULRU WR WKH DGMRXUQHG PHHWLQJ H[FOXGLQJ QRQZRUNLQJ GD\V? &KDQJHV WR WKH UHJLVWHU RI PHPEHUV RI WKH &RPSDQ\ DIWHU WKH UHOHYDQW GHDGOLQH VKDOO EH GLVUHJDUGHG LQ GHWHUPLQLQJ WKH ULJKWV RI DQ\ SHUVRQ WR DWWHQG DQG YRWH DW WKH PHHWLQJ

• \$Q\ FRUSRUDWLRQ ZKLFK LV D PHPEHU FDQ DSSRLQW RQH RU PRUH FRUSRUDWH UHSUHVHQWDWLYHV ZKR PD\ H[HUFLVH RQ LWV EHKDOI DOO RI LWV SRZHUV DV D PHPEHU SURYLGHG WKDW WKH\ GR QRW GR VR LQ UHODWLRQ WR WKH VDPH VKDUHV
• 7KH ULJKW WR DSSRLQW SUR[LHV GRHV QRW DSSO\ WR SHUVRQV QRPLQDWHG WR UHFHLYH LQIRUPDWLRQ ULJKWV XQGHU VHFWLRQ RI WKH &RPSDQLHV \$FW 3HUVRQV QRPLQDWHG WR UHFHLYH LQIRUPDWLRQ ULJKWV XQGHU VHFWLRQ RI WKH &RPSDQLHV \$FW ZKR KDYH EHHQ VHQW D FRS\ RI WKLV 1RWLFH RI *HQHUDO 0HHWLQJ DUH KHUHE\ LQIRUPHG WKDW WKH\ PD\ KDYH D ULJKW XQGHU DQ DJUHHPHQW ZLWK WKH UHJLVWHUHG PHPEHU E\ ZKRP WKH\ ZHUH QRPLQDWHG WR EH DSSRLQWHG RU WR KDYH VRPHRQH HOVH DSSRLQWHG DV D SUR[\ IRU WKLV PHHWLQJ

If they have no such right, or do not wish to exercise it, they may have a right under such an agreement to give instructions to the exercise of voting rights. Nominated persons should contact the registered member by whom they were nominated in respect of these arrangements.

• 1. In the case of joint holders, where more than one of the joint holders purports to vote (including voting by proxy), the only vote which will count is the vote of the person whose name is listed before the other joint holder(s) on the register of the Company for the share.
• 1. Any shareholder attending the meeting has the right to ask questions. The Company must cause to be answered any such question relating to the business being dealt with at the meeting, but no such answer need be given if: (i) to do so would interfere unduly with the preparation for the meeting or involve the disclosure of confidential information; (ii) the answer has already been given on a website in the form of an answer to a question; or (iii) it is undesirable in the interests of the Company or the good order of the meeting that the question be answered. If you attend the meeting in person, you may be included in the recording of the meeting. Please note that this recording is solely for the purpose of creating a transcript of the meeting and will not be made publicly available.
• 1. A copy of this Notice of General Meeting, and other information required by section 311A of the Companies Act 2006, can be found at www.whitbread.co.uk. Neither the content of the Company's website nor any website accessible by hyperlinks to the Company's website is incorporated in, or forms part of, these notes.
• 1. Shareholders should only use any electronic address provided in either this Notice of General Meeting or any related documents (including the Chairman's letter and the proxy form) to communicate with the Company for the purposes expressly stated.
• 1. At the close of business on 29 May 2019 (being the latest practicable date prior to the publication of this Notice of General Meeting), the Company had 190,986,131 ordinary shares in issue, of which 17,119,718 ordinary shares were held in treasury. The total number of voting rights in the Company was 173,866,413. The ordinary shares have a nominal value of 76 % pence each. On a poll, each holder of ordinary shares has one vote per share.

(This page has been left blank intentionally.)