Investor Day 19 October 2010

Agenda Introduction Group strategic development Divisional strategic update Financial update Tour of Liddington site

Introduction No new financial information for the 2010 financial year will be disclosed Trading continues to be in line with management expectations Board confident of delivering a good financial performance for the year Remain encouraged by the resilience and financial performance of our business There has been no significant change to the Group’s financial position since the Interim Results in May 2010 Full year results to be announced on Tuesday 30 November

Group strategic development

Where we are now Group strengths Sector positioning Strength of business model Complementary skills in exploratory, active and life-enriching travel Common sense of purpose Strategic organisation

Group strengths Strong business models and brands in niche positions WHERE WE ARE NOW Strong business models and brands in niche positions First hand delivery of unique and valued products, with high customer loyalty Core competences in safety, yield management, school and adult groups, families and management of the lifelong educational travel journey Control of strategic assets Strong commonalities and shared beliefs across Camping, Education and Adventure Although there are synergies, Hotel Breaks is strategically distinct

Sector positioning Commodity Leisure Value-added Leisure WHERE WE ARE NOW Commodity Leisure Mainstream tour operators Disintermediation threat Low growth Superbreak Bookit Value-added Leisure Tour leaders, first hand delivery Increasing demand Richer experience Camping Adventure Out-of classroom Learning Value-added Non-leisure drivers Social and political drivers PGL NST Travelplus – High School Education & Personal Development Value-added Non-leisure drivers Language travel Travelworks

Strength of business model WHERE WE ARE NOW Weaker Brand strength Product control Defensibility Competitive advantage Bookit Superbreak Camping Sector position Djoser Explore Travelworks Language High School NST Strong PGL Strong Business Model Weaker Slide 7 Holidaybreak plc Investor Day

Complementary skills ü WHERE WE ARE NOW PGL NST / EST Camping Explore Djoser Travelplus Superbreak Bookit Seasonal fill / yield ü Personal development Families / young adults School children Health and safety management Tour operating Value added leisure Education content Europe School distribution Groups

Common sense of purpose Common business ethos: Belief and pride in the product Emotional attachment to the product and client experience First-hand delivery Common product ethos: Discovery and authenticity Sharing, contact and engagement Active and outdoors

Structured for growth Value-added distribution Some unique niches B2C web and direct sales Packaged products Medium-term assets High margin Strong customer database Resilient Loyal customer base Long-term assets High visibility High margin Resilient Loyal customer base Growth through roll-out Asset-light Strong cash flow cycle Flexible cost base Education and discovery Resilient Loyal customer base

Building shareholder value WHERE WE ARE GOING Strong cash flow Strong profit margins Resilient to recession Earnings growth Increased quality of earnings Sustainable, strong margins Progressive dividend policy Conservative but efficient approach to debt Organic growth – divisional strategy Corporate development – acquisition strategy

Acquisition strategy: Education WHERE WE ARE GOING Group development Take core skills into new markets and products, particularly in Europe Adjacency moves grounded in competitive advantage Sector positioning Less leisure-based and more developmental trips Positive social and political drivers Barriers to entry Business model Business adds and appropriates value Control of strategic product, capabilities and resources Gatekeeping and elements of exclusivity Defensibility, scale, leadership, brand Enhances shareholder value Earnings growth, strong margins, quality of earnings, high ROI

Clear priorities Grow Education Grow International Presence SUMMARY WHERE WE ARE NOW WHERE WE ARE GOING Strong business models in niche positions Strong complementary skills in exploratory and life-enriching travel How we look as a group Take core skills into new markets and products Common sense of purpose Grow International Presence Where we compete Leading, attractive and profitable travel niches More educational and personal development revenue; positive social and political trends More revenue from existing and new overseas markets Grow Education Distinctive, unique businesses Entrepreneurial management teams Ownership of unique and valuable PGL centres How we compete Control of and exclusive access to valuable products and resources Strengthened competitive advantage Grow Earnings How we build shareholder value Strong cash flow Strong profit margins Resilient to recession Earnings growth Increased quality of earnings Progressive dividends Sensible approach to debt

Divisional Strategic Update

Hotel Breaks

Core strengths HOTEL BREAKS Market leader in UK short breaks and leading online short break provider in the Netherlands Excellent supplier relationships with UK hotels, rail and theatre / event providers Unique ability to supply agents and consumers with flexible packaged products (c.56% of UK business) New, highly motivated and focused senior management team

Organic growth drivers HOTEL BREAKS Focus on strengthening customer relationship by growing B2C market with newly re-launched bookable website and product development (e.g. ancillary services) Grow packaged product mix by sourcing new, attractive add-ons (target c.75% of UK business) Improve overseas city breaks product proposition

Camping

Core strengths Market leading brands in the European camping sector Pan European distribution and natural hedging Flexible offering – annual capacity adjustments across markets; trading allocation of capacity to highest yielding sales markets Rigorous capacity planning and disciplined yield management

Organic growth drivers CAMPING Resilient in recession; and well-placed to grow when economy improves: Affordable, flexible family holidays Outdoor discovery Authenticity Focus on better customer segmentation to improve low season sales Mobile-home life extension programme will improve cash generation in medium term

Education and Adventure

Core strengths Loyal customers - high retention EDUCATION AND ADVENTURE Loyal customers - high retention PGL brand and product is an immense competitive advantage Safety management High earnings visibility – can grow capacity from known demand Contracting power Lobbying power - BAHA, STF No government funding Cross-over products in EST / NST and PGL / Explore Sales teams Travelplus is an entry point into German educational travel

Growth drivers PGL roll out NST market share gains EDUCATION AND ADVENTURE PGL roll out Premium product Careful fill and yield improvement (capacity increase at Liddington) Market share gains NST market share gains Capitalise on structural overhaul Focus on gross margin and profitable client acquisition Contracting power and supplier synergies Political and social macro-drivers Product development - innovation to improve off-peak yields Leverage range of capabilities – Explore delivers schools adventure product for PGL Medium term recovery in overseas adventure travel European expansion – acquisition and consolidation opportunities

Financial Update

Financial update Management are focused on cash generation and cost control Aim to reduce net debt / EBITDA at 30 Sept 2010 below 2x and benefit from reduced margin (250bps v 300bps) Medium term capital expenditure reduction from mobile-home extension programme Finance costs are 100% hedged Actual interest rate paid was 8.1% p.a. but underlying rate was c.3.75% p.a. Underlying finance charge is c.£8.0m p.a. Interest hedges current value is £10.2m 60% run-off by September 2012 Remainder by October 2013

A common sense of purpose Go Discover Share Enrichment Discovery Authenticity Travel enriches lives Discovery and authenticity Sharing, contact and engagement Active and outdoors Freedom Flexibility Discovery Atmosphere Emotion Active Safe Exciting Educational Inspire Educate Motivate Engagement Get involved Discover Experience