The UK’s Leading Operator of Specialist Holiday Businesses INTERIM RESULTS 2005

TODAY’S PRESENTATION Bob Ayling (Chairman) - Overview Bob Baddeley (Finance Director) - Finance Review Richard Atkinson (Chief Executive) - Divisional Review - Strategy Questions

Holidaybreak plc INTERIM RESULTS 2005 First ever interim operating profit Acquisitions progressing well More balanced composition of Group Strong cash performance Dividend up 10% Satisfactory trading outcome expected

Holidaybreak plc INTERIM RESULTS 2005 FINANCE DIRECTOR’S REVIEW BOB BADDELEY

Interim Results 2005 FINANCIAL HIGHLIGHTS Turnover +19% to £85.3m (2004 : £71.5m) Operating profit* £1.4m (2004 : loss £2.5m) Net debt increased by just £4.2m to £65.1m (2004 : £60.9m) after acquisitions Dividend up 10% *Before goodwill amortisation

Interim Results 2005 PROFIT &LOSS ACCOUNT *All stated before goodwill amortisation

Interims 2005 – Divisional Results * All stated before goodwill amortisation

Interims 2005 – Divisional Results ACQUISITIONS *All stated before goodwill amortisation

Interims 2005 – Divisional Results EXCLUDING ACQUISITIONS * All stated before goodwill amortisation

Interim Results 2005 BALANCE SHEET Goodwill on acquisitions £38.6m - Bookit £22.3m - Djoser £16.3m Total Goodwill £73.2m (2004: £42.9m) Net debt £65.1m (2004 : £60.9m) Reduction in Capital Expenditure - Net spend to date £3.3m (2004 : £10.9m) - Expected for year £5.0m (2004 : £13.5m)

Interim Results 2005 CASH FLOW Operating outflow in half year £7.9m (2004 : £20.7m) Expenditure on acquisitions £39.0m Increased bank facilities Operating cash inflow over last twelve months £59.0m - including overseas VAT in May 2004 (£9.7m)

Interim Results 2005 FINANCIAL SUMMARY Profits growth in Hotel Breaks and Adventure Continue to generate substantial operating cash flow Low Capex Acquisitions financed through cash flow and new bank facilities

Holidaybreak plc INTERIM RESULTS 2005 CHIEF EXECUTIVE’S REVIEW RICHARD ATKINSON

Pressure on vertically integrated operators and traditional airlines CHANGING LANDSCAPE OF TRAVEL SECTOR Pressure on vertically integrated operators and traditional airlines The Consumer - huge range of choice - shorter more frequent holidays/long haul - later bookings - more independent/tailor made/flexible - holidays with purpose (activity/special interest) Internet Low cost airlines TRAVEL Specialist holiday providers prospering

GROUP STRATEGY Specialist holiday businesses Market leadership Industry leading margins Cash generation and attractive dividend payout Flexible cost structures Organic growth Supported by complementary acquisitions

THREE OPERATING DIVISIONS £63.0m* (19%) £150.6m* (45%) £123.2m (36%) Camping Hotel Breaks Adventure *Pro-forma 2004 sales (TTV) including recent acquisitions

Hotel Breaks OVERVIEW Now Holidaybreak’s biggest profit and cash generator Half-year profit up 28% to £7.6m (+15% like for like) - margin improvement Cumulative 2005 year to date sales intake +6% (+3% like for like) Consumer demand for UK leisure breaks subdued, European breaks showing good growth Growth opportunity in second half

ACQUISITION OF BOOKIT Leading on-line intermediary for short stay leisure breaks in the Netherlands – acquired for €33.5m (£23.1m) Weekend and overnight leisure hotel sales and rapidly growing chalet / summerhouse offer (85% on-line) Similar (but not identical) business model to Superbreak – high variable costs Income generated from commissions (8-12%) and customer booking fees Integration going smoothly, initial trading encouraging

Hotel Breaks 2004 SALES (Pro-forma: TTV) 28% Other UK Overseas London Bookit 46% 20% 6%

Bookit KEY INVESTMENT ATTRACTIONS Market leading internet sites for leisure breaks – advanced and scaleable web infrastructure High brand recognition and customer loyalty (50% repeats) E-mail database - 900,000 households Strengths - Supplier relationships - Operations/processes - Management team (staying with business) - Growth record (top and bottom line) Potential for - Product ‘stretch’ - Add Superbreak product - New market penetration

Hotel Breaks DIVISIONAL STRATEGY Increase distribution reach within core UK market and overseas Marketing partnerships and brand awareness Product development (NB. Bookit) Consolidate and add value to hotel relationships Maintain/reduce overhead cost ratios

Adventure OVERVIEW UK market leader in ‘soft’ adventure and scuba diving holidays - Increasing demand for active and special interest holidays Half-year profit up 67% to £2.5m (+54% like for like) - Tsunami impact not material - Load factors and margins strong Cumulative 2005 sales intake +77% (+20% like for like) - Another excellent year in prospect Strong demand trends continuing – favourable initial indications for 2006

ACQUISITION OF DJOSER Market leading Dutch ‘soft adventure’ holiday operator - acquired for €22.8m (£15.7m) Business model very similar to Explore – gross margins lower @ c.25% Marketing led Small team – outsourcing Integration going smoothly - initial trading encouraging Significant increase in size of Adventure Division

Adventure Holidays Division 2004 SALES (Pro-forma) Explore UK Djoser Explore Overseas Agents RegalDive 4% 9% 41% 46%

Djoser KEY INVESTMENT ATTRACTIONS Djoser - market leader in Holland - very high brand awareness - high on-line penetration (65% of bookings) Synergistic benefits with Explore Product development opportunities Potential for development in other European countries Experienced management team (staying with business)

Adventure DIVISIONAL STRATEGY Market leadership in European “soft adventure” sector (NB. Germany) Broaden awareness of sector to wider audience New product development to drive growth On-line business at 50% in 3 years Effective yield management key to profitability

Camping OVERVIEW (1) Changing market landscape but growing signs of new demand/supply equilibrium in mainstream sector Interim loss reduced – Easter sales included in first half and overheads reduced Sales: - Year on year –9% - Market still tough but more resilient recent trends - UK travel agency sales below expectations - Dutch sales strong (Eurocamp and Easycamp) - Internet and air based holidays increasing share - Strong late bookings ‘four weeks out’

Camping OVERVIEW (2) Capacity: - Mobile-homes: -11% - Tents: -14% Operational / overhead cost reduction : £3m+ Eventual outturn sensitive to sales intake over remainder of season as main camp-site costs (depreciation and site fees) now fixed

DIVISIONAL STRATEGY (1) Camping DIVISIONAL STRATEGY (1) Capacity for 2006 under review - will be lower again with relatively low capital expenditure envisaged Ongoing overhead / operational costs review Mobile-homes: - Longer life / refurbishment programme - Accommodation upgrades IT investment to facilitate: - E-commerce development (“country.coms”) - White label ( third party) distribution - Yield management efficiency - Customer service delivery

DIVISIONAL STRATEGY (2) Camping DIVISIONAL STRATEGY (2) Brand differentiation (Eurocamp, Keycamp, Budget brand / Easycamp) More intensive, regionalised marketing communications programme to increase awareness of and overcome consumer perceptions of mobile-home, camp-site based holidays Continuing focus on stabilising occupancy rates, optimising yields and maintaining / improving margins

OUTLOOK Strong cash performance, good margins and satisfactory trading outcome anticipated Recent acquisitions integrating and performing well - add to strength of Group going forward More balanced composition of Group – greater weighting in growth areas Longer term - rapid cash generation, healthy margins Holidaybreak is well placed to exploit prevailing trends in the travel sector

Holidaybreak plc CORPORATE CALENDAR Shares ex-dividend: 22 July 2005 Trading update – mid-September Preliminary Results – 1 December 2005 (provisional) AGM – March 2006

The UK’s Leading Operator of Specialist Holiday Businesses QUESTIONS