The European specialist holiday group The European specialist holiday group 1 The European specialist holiday group PRELIMINARY RESULTS 2005

The European specialist holiday group The European specialist holiday group 2 Holidaybreak plc PRELIMINARY RESULTS 2005 Bob Ayling (Chairman) - Overview Bob Baddeley (Finance Director) -Finance review Carl Michel (Chief Executive) - Divisional overview - Group strategy and opportunities Q & A

The European specialist holiday group The European specialist holiday group 3 Holidaybreak plc PRELIMINARY RESULTS Best ever performance in terms of headline PBT and free cashflow - Results in line with expectations -Hotel Breaks and Adventure Travel Divisions now 2/3rds of Group sales - Newly acquired Dutch businesses perform well - Camping continues to deliver strong cash on reduced capacity - Current trading in line with expectations

The European specialist holiday group The European specialist holiday group 4 Holidaybreak plc PRELIMINARY RESULTS 2005 FINANCE DIRECTOR’S REVIEW BOB BADDELEY

The European specialist holiday group The European specialist holiday group 5 Preliminary Results 2005 FINANCIAL HIGHLIGHTS Turnover + 7.6% to £303.0m (2004: £281.6m) Profit before tax +14.3% to £32.0m (2004: £28.0m) Dividend + 10% Net debt increased by £10.4m 23% ROIC (2004: 24%)

The European specialist holiday group The European specialist holiday group 6 Preliminary Results 2005 PROFIT &LOSS ACCOUNT * All stated before goodwill amortisation and impairment and (in 2004 only) exceptional costs

The European specialist holiday group The European specialist holiday group 7 Preliminary Results 2005 DIVISIONAL RESULTS

The European specialist holiday group The European specialist holiday group 8 Preliminary Results 2005 DIVISIONAL RESULTS -ACQUISITIONS Period from date of acquisition to 30 September 2005

The European specialist holiday group The European specialist holiday group 9 Net debt increased by £10.4m, after acquisitions of BRC & Djoser (£39.0m) Interest cover (pre-goodwill) 9.3 times (2004 : 9.4x) Currency and interest rate hedging in place Refinanced Bank Facilities to take advantage of market conditions Preliminary Results 2005 CASH FLOW

The European specialist holiday group The European specialist holiday group 10 Preliminary Results 2005 FREE CASH FLOW – by Division Free cash flow = Operating cash flow after net capex, interest & tax

The European specialist holiday group The European specialist holiday group 11 Net debt increased to £22.9m -£39.0m (net) spent on acquisitions -Gearing 60% (2004 :34%) Goodwill on acquisitions -Djoser £16.4m -Bookit £22.3m £8.7m impairment of Eurosites Goodwill Holidaybreak plc BALANCE SHEET

The European specialist holiday group The European specialist holiday group reduced capital expenditure (net of disposals) 2006 capex expected to be at similar levels Mobile-homes capacity reduced in 2005 by 11% to 9,708 Freehold properties – sales and purchase Preliminary Results 2005 CAPITAL EXPENDITURE & DISPOSALS

The European specialist holiday group The European specialist holiday group 13 Low fixed costs in Hotel Breaks and Adventure Travel Double digit margins – well above travel industry norms All divisions cash generative Healthy return on invested capital Holidaybreak plc FINANCIAL SUMMARY

The European specialist holiday group The European specialist holiday group 14 Holidaybreak plc PRELIMINARY RESULTS 2005 CHIEF EXECUTIVE’S REVIEW CARL MICHEL

The European specialist holiday group The European specialist holiday group 15 Holidaybreak plc PRELIMINARY RESULTS 2005 DIVISIONAL OVERVIEW

The European specialist holiday group The European specialist holiday group 16 Portfolio of specialist businesses, all market leaders in their sectors Increasingly European Increasingly online Well placed to grow Emphasis on cash, margins and profitability Holidaybreak plc OVERVIEW

The European specialist holiday group The European specialist holiday group 17 Holidaybreak plc HOTEL BREAKS 2.45m customers (2004: 1.70m) –Including 0.65m from Bookit, the #1 Dutch player London impacted by 7/7 Bookit developing differentiated content (bungalows and small hotels) Business increasingly moving online (Bookit already at 85%, Superbreak at 25%) Strongly cash generative – no capacity commitments

The European specialist holiday group The European specialist holiday group 18 60,000 customers (2004: 41,000) –including 15,000 from Djoser, the #1 Dutch player Business model remains flexible –skill is in raising tour load factors Broader portfolio reduces destination risk Brand being extended – family, walking, cycle –80 tours added (+20%) for current year Increasingly online –Explore now at 25% –Djoser 65% Holidaybreak plc ADVENTURE TRAVEL

The European specialist holiday group The European specialist holiday group ,000 customers (2004: 570,000) European business – one third of sales non-UK Strong repeat business –high call conversions –customer satisfaction high Developing online capability Capital expenditure tightly controlled Highly cash generative For 2006, right-size the business –taking out further 16% capacity to reflect weaker low season demand and shifts in consumer preferences Holidaybreak plc CAMPING

The European specialist holiday group The European specialist holiday group 20 Holidaybreak plc CURRENT TRADING Hotel Breaks –Down 4% reflecting weakness in London market Adventure Travel –Up 9% Camping –Down 12% on capacity reduced by 16%

The European specialist holiday group The European specialist holiday group 21 Holidaybreak plc PRELIMINARY RESULTS 2005 THE CHANGING MARKET PLACE

The European specialist holiday group The European specialist holiday group 22 Consumers increasingly aspirational –willing to travel further Greater confidence in buying –consumers able to unbundle and buy own components –e.g. more low cost flights plus camping Fragmentation of holiday time –more short breaks Continuing channel shift to online Holidaybreak plc CHANGES IN THE CUSTOMER ENVIRONMENT

The European specialist holiday group The European specialist holiday group 23 Hotels –Main online leisure competitors are Octopus (Cendant) and Hotelconnect –Growth in hotel groups own sites, with trend to further concentration –Other intermediaries (Opodo, Hotels.com, Lastminute) not as leisure focused Adventure Travel –Little direct competition due to strong sector growth and fragmented nature of market Camping –Main competitor is Cendant –Huge self catering market Holidaybreak plc CHANGES IN THE COMPETITIVE ENVIRONMENT

The European specialist holiday group The European specialist holiday group 24 Fewer school age families –need to extend camping to other consumer groups esp. in low season Later booking –important to have good availability and the systems to support such flexibility Online travel agents marketing spend –focus for us is on search engine spend and white labels, not on trying to outspend on advertising Holidaybreak plc INDUSTRY TRENDS

The European specialist holiday group The European specialist holiday group 25 Holidaybreak plc PRELIMINARY RESULTS 2005 WHERE WE GO NOW

The European specialist holiday group The European specialist holiday group 26 Attractive market positions Strong reasons why customers choose to buy from us Some unique & distinctive competencies Numerous distinct and exciting opportunities to grow our businesses Holidaybreak plc FIRST IMPRESSIONS

The European specialist holiday group The European specialist holiday group 27 Market leader in all UK/Dutch businesses Superbreak leader in retail trade sold short breaks Good packaging –reduces prospect of ‘disintermediation’ Strong trade relationships = entry barriers Holidaybreak plc ATTRACTIVE MARKET POSITIONS

The European specialist holiday group The European specialist holiday group 28 Hotel Breaks – well established relationships with UK hoteliers, best rates and availability Adventure Travel – tremendous breadth of product and complex itineraries that are hard to replicate. Significant brand awareness Camping – best sites, best emplacements on site, range of accommodation, operational back up in depth. Trusted brands Holidaybreak plc STRONG REASONS WHY CUSTOMERS CHOOSE TO BUY FROM US

The European specialist holiday group The European specialist holiday group 29 Unique competencies –Hotel Division: low cost efficient distribution, high service to trade –Adventure Travel: constructing complicated itineraries, developing new products, raising tour load factors –Camping: efficiency in operations Other competencies –Reputation with customers (Camping, Explore, Djoser, Bookit) and trade (Superbreak) –Innovation (Explore, Superbreak) –Pan-European Marketing (Camping) Holidaybreak plc SOME UNIQUE & DISTINCTIVE COMPETENCIES

The European specialist holiday group The European specialist holiday group 30 Online –all businesses are adding functionality and improved design to raise look-to-book ratio Product extensions –e.g Walking tours (Explore), chalets (Camping), small hotels (Bookit) European acquisitions –‘national’ model has better customer appeal and higher margins Holidaybreak plc NUMEROUS DISTINCT AND EXCITING OPPORTUNITIES TO GROW

The European specialist holiday group The European specialist holiday group 31 Business Development –identifying, prioritising and resourcing of emerging customer requirements Emphasis on IT –new appointments in Camping and Explore. Now looking at better ways to share best practice/develop synergies Europe –look at extending our footprint into other national markets, if sensible opportunities arise Holidaybreak plc FIRST STEPS………

The European specialist holiday group The European specialist holiday group 32 Holidaybreak plc PRELIMINARY RESULTS 2005 BACKGROUND INFORMATION

The European specialist holiday group The European specialist holiday group 33 Preliminary Results 2005 DIVISIONAL RESULTS – excl. ACQUISITIONS * All stated before goodwill amortisation

The European specialist holiday group The European specialist holiday group 34 Preliminary Results 2005 BALANCE SHEET

The European specialist holiday group The European specialist holiday group 35 Preliminary Results 2005 MOVEMENT IN NET DEBT

The European specialist holiday group The European specialist holiday group 36 Preliminary Results 2005 CAPITAL EXPENDITURE & DISPOSALS