1 THE UK’s LEADING OPERATOR OF SPECIALIST HOLIDAY BUSINESSES 1 February 2002

2  One of only three UK quoted tour operating businesses  Three operating divisions - Camping, Hotel Breaks and Adventure Holidays  2001 turnover £192.5m  Pre-tax profits £23.8m  Consistent growth record - five years of growth in profits, eps and dividend  Aiming to grow organically and through further acquisitions Holidaybreak plc OVERVIEW

3 Holidaybreak plc CONSUMER BRANDS

4 Holidaybreak plc OUR RECORD (1) Turnover Profit Before Tax £m *12 months pro-forma

5 Holidaybreak plc OUR RECORD (2) Earnings per ShareDividend Pence *12 months pro-forma

6  UK travel industry overview  Our businesses  Common characteristics of Group companies  Financial information  Current trading and prospects Holidaybreak plc TOPICS COVERED

7 UK HOLIDAY MARKET (Short breaks = 1-3 nights) Source: Mintel (2002) Holidaybreak plc GROWTH IN OVERSEAS Holidaybreak plc GROWTH IN OVERSEAS HOLIDAYS,

8 Holidaybreak plc GROWTH IN DOMESTIC HOLIDAYS, UK HOLIDAY MARKET Source: Mintel (2002) (Short breaks = 1-3 nights)

9  Four major players -Thomson (Preussag), Airtours, Thomas Cook (C&N) and First Choice (c.70% of inclusive holidays market - 45% of high street agents)  Vertical integration in 1990’s and more recently Pan- European consolidation  Growth of seat only sales and more recently low cost airlines (Easyjet, Ryanair, Go etc)  Many specialist operators and independent agents thriving  Distribution channels fragmenting: Smaller chains and independents Direct marketing Internet Teletext DRTV Off the page Holidaybreak plc UK OVERSEAS HOLIDAY MARKET - THE INDUSTRY

10  Traditional short-haul packages losing share to long- haul, activity/special interest, city breaks, tailor made  ‘Grey’ market increasing in importance  Packages unbundling - more tailor made and independent travel (45% of overseas holidays)  Consumers more knowledgeable and more demanding - little brand loyalty in mainstream sector  Later booking trends-expectation of discounts -lifestyle pressures Holidaybreak plc UK HOLIDAY MARKET - CONSUMER TRENDS

11  Quality market leading businesses in sectors with good growth potential  Avoid volatile, low margin, short-haul package holiday market  Organic growth combined with ‘bolt-on’ acquisitions to existing divisions and acquisition of travel businesses in new sectors  Characteristics of Group businesses provide an excellent platform for growth and acquisition template Holidaybreak plc POSITIONING AND STRATEGY

12  Original and largest part of the Group - 54% of 2001 sales  Two market leading brands - Eurocamp and Keycamp (60% share in UK)  Pre-sited mobile-homes and tents on quality, third party owned camp-sites in France, Italy and seven other European countries - flexible contracts Holidaybreak plc CAMPING DIVISION

13  Courier and children’s activity service  Tailor made packages - any day to any day  Self-drive holidays - ferry inclusive from UK  Mainly direct sell but some retail agent sales. Internet increasingly important  c.50% of customers non-UK (mainly German and Dutch)  Mid to upper income, family customer base Holidaybreak plc CAMPING DIVISION

14  Acquired % of 2001 sales  Superbreak and Hotel Breaks the main brands  Breaks in 1400 UK hotels (200 in London)  No commitment allocations  Price guarantee to customers  Rail inclusive and theatre breaks available Holidaybreak plc HOTEL BREAKS

15  60% of sales through UK travel agents - sector share 65%  Direct and internet sales growing fast (nearly 40%)  Two on-line internet booking sites - Superbreak.com (UK and Eurobreaks) and Hotelnet.co.uk (worldwide)  Accommodation only overseas break programme recently launched (350 hotels/40 cities) Holidaybreak plc HOTEL BREAKS

16  Explore Worldwide and Regal Diving acquired in % of 2001 sales  Explore is the UK market leader in worldwide adventure travel and largest European operator  Small groups with own tour leader countries  Scheduled flights  Sells direct and through overseas GSAs Holidaybreak plc ADVENTURE

17  Regal is the leading UK operator of scuba diving holidays  All levels catered for - Red Sea (Egypt - 80% of sales). Maldives, Caribbean, Far East growing fast  Charter flights to Red Sea, scheduled flights to other destinations  Sells direct and through specialist dive shops/centres Holidaybreak plc ADVENTURE

18  Market leading businesses in specialist sectors  Growth opportunities  Healthy margins  Low fixed cost commitments  Highly cash generative Holidaybreak plc COMMON CHARACTERISTICS

19 Common Characteristics MARKET LEADERSHIP

20 Common Characteristics GROWTH PROSPECTS

21 Common Characteristics HEALTHY OPERATING MARGINS  Adventure margin in 2000 shows part year only, following acquisitions  Holidaybreak margins are well above industry norms and compare favourably with charter air package operators

22 Common Characteristics LOW FIXED COSTS

23 Common Characteristics CASH GENERATION

24  2001 ROCE 46.2% (2000 : 43.7%)  Annual capex (mainly Camping) requirement (+ £15m net) - depreciation + £12m  2001 interest cover 8.6 times - will increase  Net currency exposure limited  Strong operational cash flow but seasonal  Headroom within banking facilities for further acquisitions Holidaybreak plc FINANCIALS

25 Holidaybreak plc 2001 BALANCE SHEET PRELIMINARY RESULTS

26  All divisions performed well - outstanding year for Hotel Breaks  Profit before tax up 15% to £23.8m* - impact of September 11th c.£160,000 (mainly Adventure)  EPS up 12% to 38.1p*  Dividend up 12.5% to 18.0p Holidaybreak plc 2001 RESULTS *EPS and profit figures before goodwill amortisation and exceptional costs

27 Holidaybreak plc 2001 RESULTS All stated before exceptional operating costs and goodwill amortisation

28  Impact of September 11th now receding but some destinations still affected and some customers may be reluctant to fly  Mainstream package market well down year on year - summer AIT market will end up 5-10% down -  Many specialists and seat only sales outperforming market  Booking lead times have shortened - ski, city breaks, coach all booking strongly  Economic concerns may be a factor but UK consumer spending still buoyant Holidaybreak plc OUTLOOK AND PROSPECTS

29  Camping level with nearly 50% of summer 2002 bookings taken pre-Christmas  Hotel Breaks strongly ahead - very encouraging start for new European programme  Adventure affected badly by September 11th (bookings down, cancellations, load factors affected) but recovering well  Camping and Hotel Breaks accounted for 84% of 2001 turnover and 87% of profits  We expect to make further profitable progress in 2002 and once again increase shareholder value Holidaybreak plc 2002 TRADING AND PROSPECTS (at 10 Dec01)

30  Quality market leading businesses in attractive sectors with good prospects for growth - good defensive qualities  Consistent record of earnings and dividend growth - strongly cash generative  Bolt-on and larger ‘stand alone’ acquisitions sought  Another successful year in 2001  Prospects for 2002 favourable - further trading update on February 26th (AGM) Holidaybreak plc SUMMARY