The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 1 The UK’s Leading Operator of Specialist Holiday Businesses

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 2 TODAY’S PRESENTATION

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 3 MARKET Tsunami disaster January trading period HOLIDAYBREAK Acquisitions of Bookit (BRC) and Djoser AGM Statement – Trading update On-line sales growth MAJOR DEVELOPMENTS SINCE 02/12/04 (PRELIM RESULTS)

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 4 TRAVEL INDUSTRY TRENDS Vertically integrated model declining Consumer holiday trends - shorter more frequent - later bookings - more independent/tailor made/flexible - holidays with purpose (activity/special interest) InternetLow cost airlines TRAVEL Specialists prospering

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 5 Specialist holiday businesses Market leadership Industry leading margins Cash generation and dividend payout Flexible cost structures Organic growth Supported by complementary acquisitions GROUP STRATEGY

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 6 THREE OPERATING DIVISIONS £63.0m* (19%) £150.6m* (45%) £123.2m (37%) CAMPING HOTEL BREAKS ADVENTURE *Pro-forma 2004 sales (TTV) including recent acquisitions £63.0m* (19%) £150.6m* (45%) £123.2m (36%)

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 7 HOTEL BREAKS DIVISION ACQUISITION OF BOOKIT MARK WRAY

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 8 Hotel Breaks 2005 TRADING AND OUTLOOK Sales:+7% (as at 10/02/05) (excludes impact of acquisition) Strong performances by: - London Theatre Breaks - European breaks (Cities and Beach) 2005/6 UK brochures launched - Hotel choice increased - Product developments New affiliate relationships

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 9 Hotel Breaks DIVISIONAL STRATEGY Increase distribution reach (NB. Bookit) Product development Increase range and value proposition of hotel relationships Maintain/reduce overhead cost ratios

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 10 Hotel Breaks 2004 SALES (Pro-forma: TTV) Overseas - 6% Bookit - 20% Other UK - 46% London - 28%

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 11 ACQUISITION OF BOOKIT The leading on-line intermediary for short stay leisure breaks in the Netherlands Completion - 21 December 2004 Acquired for €33.5m (£23.1m) Paid in cash from existing bank facilities

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 12 Bookit MARKET BACKGROUND Favourable economic context for leisure break growth 50% of Dutch domestic holidays short stay (1-3 nights) Hotels : 7m leisure nights / €550m expenditure (2003) Bungalows/Summerhouses : 28m leisure nights / €1bn expenditure (2003) 76% (12.3m) of Dutch population on-line. - Broadband take up > 30%

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 13 Bookit KEY INVESTMENT ATTRACTIONS Market leading internet sites for leisure breaks – advanced and scaleable web infrastructure High brand recognition and customer loyalty (50% repeats) database - 900,000 households Strong - Supplier relationships - Management team (staying with business) - Growth record (top and bottom line) Potential for - Product ‘stretch’ - Add Superbreak product - New market penetration

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses hotels / 150 bungalows in Netherlands (70%), Belgium and Germany Bookit PRODUCT - - Min 2 nights night -- Chalets/ summerhouses/ mobile-homes

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 15 Accommodation providers load rooms and prices online Good availability at excellent prices (average booking lead time - 18 days) Bookit commission income derived from: -Commission (8-12%)/fixed fee - Customer booking fee Additional income from ‘sign on’ fees and overrides Hotel collects full payment and Bookit invoices monthly (ability to invoice earlier) Bookit BUSINESS MODEL

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 16 85% bookings on-line Brand awareness: 1st ranked internet leisure site (Jan 05) Search engine optimisation and online advertising E-database (900,000 households) Competitive prices Operational excellence Bookit MARKETING/DISTRIBUTION

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 17 Bookit FINANCIAL RECORD Year Ended 31 December Total Rooms Booked (‘000) TTV€11.5m€21.1m€31.3m€42.2m €’000 Total Commission Income Normalised Costs EBIT

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 18 All three brands/sites performing strongly Bungalows growing fastest – av. commissions expected to increase Capacity availability good Integration going well Overhead costs under control 40 weeks of year to 30/09/05 to be included Bookit 2005 OUTLOOK

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 19 Bookit STRATEGY AND OPPORTUNITIES Stand Alone Business –More contracted product: Hotels; Bungalows –Product stretch: Luxury and family hotels; Campsites –German market With UK Parent: –London & provincial product –Access to theatre/concert tickets –European product range –Expand European accommodation portfolio –Resource for development: Capex Organic start-ups Acquisitions

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 20 ADVENTURE DIVISION ACQUISITION OF DJOSER SIMON TOBIN

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 21 Adventure 2005 TRADING AND OUTLOOK Divisional sales 10 Feb 2005 excluding acquisition) –Division+22% –Explore+25% –Regal+ 3% No evidence of post-Tsunami downturn Explore sales intake strong across all markets Regal seeing late demand to Red Sea and Caribbean On-line booking 20% +

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 22 Adventure DIVISIONAL STRATEGY Market leadership in European “Soft Adventure” sector New product development drives growth On-line business grows to 50% in 3 years Broaden awareness of sector to wider audience

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 23 Adventure Holidays Division 2004 SALES (Pro-forma) Explore UK 46% Djoser 41% Explore Overseas Agents 4% RegalDive 9%

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 24 Market leading Dutch ‘soft adventure’ holiday operator Announced – 23 December 2004 (Completion – 19 Jan 2005) Acquired for €22.75m (£15.7m) Paid in cash from existing bank facilities ACQUISITION OF DJOSER

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 25 Djoser MARKET BACKGROUND Dutch economic environment improving Great tradition of Dutch exploratory travel Activity sector grows as per UK 76% of Dutch population on-line Long-haul market growth Soft Adventure sector – circa 75k customers

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 26 Djoser KEY INVESTMENT ATTRACTIONS Djoser – market leader in Holland Familiar business model High brand awareness (4 th most recognised in NL) Synergistic benefits with Explore Pioneering on-line activity in sector Potential for development in other European countries Experienced management team (staying with business)

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 27 Tour Destinations (2005) Djoser PRODUCT

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 28 Djoser BUSINESS MODEL Small group package (air & land content) Overseas suppliers / Agents Trained & Experienced Tour Leaders Gross 25% Yield management controls margins Marketing led – outsourcing of IT / Technology

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 29 Djoser MARKETING/DISTRIBUTION 65% of bookings on-line High Brand awareness (1 st specialist) Direct to consumer – no Agency / Intermediary Database 350k Unique public “Brand” persona – shows, exhibitions

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 30 Year Ended 31 December 2001 € € € €000 Total Revenue31,06234,34736,50737,120 Gross Profit6,4387,6208,2598,715 Normalised Costs-4,620-4,750-5,400-5,825 EBIT1,8182,8702,8592,890 Djoser FINANCIAL RECORD

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 31 Djoser 2005 OUTLOOK Sales intake since acquisition on track No post-Tsunami downturn New “Junior” programme encouraging start Integration with Explore on track Financial controls in place

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 32 Djoser STRATEGY AND OPPORTUNITIES New product development drives growth Explore & Djoser develop synergistic plan –Marketing – share resources –Product Development – leverage Explore expertise –Web – leverage Djoser expertise –Overseas Suppliers – leverage buying power Expand to Germany

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 33 The UK’s Leading Operator of Specialist Holiday Businesses TRADING UPDATE & CAMPING

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 34 AS AT 10 FEBRUARY 2005 Hotel Breaks: +7% Camping: – 9% (overall capacity reduced by 12%) Adventure: +22% Recent acquisitions (Bookit and Djoser) trading in line with management expectations Year on year comparatives exclude recently acquired businesses TRADING UPDATE – 10 FEBRUARY 2005

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 35 Sales: -9% (as at 10/02/05) - UK travel agents and Germany below expectations - UK directs and Easycamp performing well - Low season challenges Capacity: Mobile-homes: –11% (9,700) Tents: –14% (4,200) 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 Camping 2005 TRADING AND OUTLOOK

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 36 Capacity requirements (overall and regional) reviewed in light of 2005 trading Continuing focus on stabilising occupancy rates, optimising yields and maintaining/improving margins Ongoing cost review E-commerce channel and affiliate relationship development to target new customer groups Strategic review ongoing prior to detailed 2006 planning Camping DIVISIONAL STRATEGY

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 37 Shares ex-dividend: 16 March 2005 Interim Results – 19 May 2005 Trading update – mid-September Preliminary Results – 1 December 2005 (provisional) Holidaybreak plc CORPORATE CALENDAR

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 38 The UK’s Leading Operator of Specialist Holiday Businesses QUESTIONS