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 PRELIMINARY RESULTS 2004

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 2 Holidaybreak plc PRELIMINARY RESULTS 2004 Bob Ayling (Chairman) - Overview Bob Baddeley (Finance Director) - Finance review Richard Atkinson (Chief Executive) -Group strategy -Divisional performance review -Prospects Questions

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 3 Holidaybreak plc PRELIMINARY RESULTS 2004 Results in line with market expectations Rapid growth in Hotel Breaks and Adventure divisions Camping continues to trade profitably and deliver attractive margins Cash generated Dividend reflects Board’s confidence in future prospects 2005 sales currently 8% up on 2004

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 4 Holidaybreak plc PRELIMINARY RESULTS 2004 FINANCE DIRECTOR’S REVIEW BOB BADDELEY

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 5 Preliminary Results 2004 FINANCIAL HIGHLIGHTS Turnover up 8.5% to £281.6m (2003: £259.5m) Profit before tax £28.0m (2003: £27.9m) Dividend up 10% Net debt reduced by £10.8m 2005 capital expenditure c.£7.0m lower than % ROIC (2003: 24%)

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 6 Preliminary Results 2004 PROFIT &LOSS ACCOUNT All stated before goodwill and exceptional costs

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 7 Exceptional Costs -Relocation of Keycamp (£1.6m) -Internal reorganisation (£1.0m) Goodwill Impairment (£5.3m) -Relates to Eurosites acquisition (2002) Preliminary Results 2004 EXCEPTIONALS

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 8 Preliminary Results 2004 DIVISIONAL RESULTS All stated before goodwill and exceptional costs

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 9 Net assets increased to £36.5m (2003 : £35.2m) Net debt reduced to £12.5m -Gearing 33.8% (2003 : 66.3%) Eurosites acquisition - Goodwill impairment (£5.3m) -VAT recoverable (€3.5m) Holidaybreak plc BALANCE SHEET

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 10 Reduced capital expenditure (net) -21% lower in 2004 (£13.5m) -Will be £7.0m lower in 2005 Mobile-homes -Capacity reduced in 2005 by 11% c. 9,600 -Replacement expenditure of £5.3m (2004 : £11.4m) -Continue to achieve net book value on disposal: 1,400 units sold in 2004, generating £4.3m proceeds in Extending life Preliminary Results 2004 CAPITAL EXPENDITURE & DISPOSALS

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 11 Net debt reduced by £10.8m Mobile-home capex largely financed through new HP Interest cover 9.4 times (2003 : 8.2x) -Pre-goodwill and exceptionals Currency and interest rate hedging in place Headroom in bank facilities - seasonality Preliminary Results 2004 CASH FLOW

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 12 Preliminary Results 2004 CASH FLOW SEASONALITY

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 13 Low fixed costs in Hotel Breaks and Adventure Double digit margins – well above travel industry norms All divisions cash generative Healthy return on invested capital Low gearing Holidaybreak plc FINANCIAL SUMMARY

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 14 Holidaybreak plc PRELIMINARY RESULTS 2004 CHIEF EXECUTIVE’S REVIEW RICHARD ATKINSON

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 15 Holiday taking and expenditure increasing Consumer demand: -Holidays shorter and taken more often -Activity/special interest -Demographics -Control and flexibility Market change: -Internet -Inexpensive and accessible flights -Later booking Holidaybreak plc MARKET OVERVIEW

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 16 Balanced portfolio of specialist holiday businesses Market leadership Concentrate on margins and cash generation Organic growth Complementary acquisitions Holidaybreak plc GROUP STRATEGY

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 17 Group’s biggest profit earner in 2004 Strongly cash generative Short-break holiday demand increasing 250+ hotel suppliers, 3,000+ hotels (UK and overseas) -Gives hotels cost effective distribution at attractive yields whilst supporting price integrity -No commitment room allocations : fixed selling margin Multi-channel distribution - Supplies 80% of all leisure hotel bookings made in UK travel agents - Superbreak.com increasing share of internet - Direct and partnership marketing increasingly important Hotel Breaks OVERVIEW

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses m bookings (pax) in 2004 (2003: 1.4m) - Turnover up 24% (impact of Bridge Britain acquisition c.3%) European breaks growth increased as year progressed (+21%) - Successful launch of Beach Breaks - Continuing into 2005 New promotional partnerships – Visit London, Legoland, P&O, W H Smith, Ticketmaster 2005 sales at +10% year on year Hotel capacity readily available -Portfolio increasing -Terms of trade unchanged -Building long term relationships Hotel Breaks PERFORMANCE & OUTLOOK

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 19 Increasing demand for active and special interest holidays - Diminished geopolitical concerns UK market leader in ‘soft’ adventure and scuba diving holidays - Difficult or impossible to replicate: adding unique value to the customer experience Tight control of tour load factors underpins margin and profitability - No flight commitments (except RegalDive) New product development an important growth driver - Family, Adventure Breaks, Cycle, Rail, Walking & Trekking Distribution range extending - Internet: on-line bookings now available Adventure OVERVIEW

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 20 41,800 bookings (pax) in 2004 (2003 : 37,400) - Turnover up 12% - momentum built as year progressed - Higher tour load factors, improved margin (5.7% to 8.4%) - Out of favour destinations (India, Egypt, China) ‘bounce back ‘ Strong recovery by RegalDive - 15% of sales, 11% of operating profit 2005 sales at +34% year on year - First quarter very strong – volumes and load factors Product development continues tours to 107 countries - New product launch - Explore ‘On Foot’ Adventure PERFORMANCE & OUTLOOK

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 21 Self-catering holidays in good quality accommodation - Desirable locations with excellent leisure amenities - Flexibility, independence, informality, added value services Market leading brands (Eurocamp and Keycamp) - High levels of customer satisfaction and repeats Profitable, high margin, cash generative business Focused on profit turnround in 2005 Restructure - more focused organisation - New appointments - Keycamp relocation Medium term strategy - Keycamp/Eurocamp differentiation - Distribution brands: Easycamp, Ugogo.com - Stronger, more diverse communication of product benefits - Cost control and yield management Camping OVERVIEW

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses ,600 bookings/570,000 pax (2003: 144,400 bkgs/ 580,000 pax) - Turnover 4% below Late booking trend continued Camp-site occupancy down 4% compared to Shift in demand away from Mediterranean destinations Yield improvement and unit cost reduction capacity reduced by 11% (tents and mobiles), lower capex sales at –5% year on year -Keycamp relocation (£1m annualised saving) -General/marketing overhead savings (£1m) Increased resource for IT/e-commerce development -Rollout of on-line bookings to all brands/territories -Launch of Ugogo.com Camping PERFORMANCE & OUTLOOK

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 23 Holidaybreak plc GROUP PROSPECTS 2005 trading currently in line with expectations Hotel Breaks and Adventure continue to grow Camping – tightly controlled to meet financial requirements Opportunities for both organic and acquisition based growth Holidaybreak will continue to trade at very good margins, generate cash and provide an attractive dividend for its shareholders

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 24 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 25 Holidaybreak plc PRELIMINARY RESULTS 2004 BACKGROUND INFORMATION

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 26 Preliminary Results 2004 BALANCE SHEET

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 27 Preliminary Results 2004 CAPITAL EXPENDITURE & DISPOSALS

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 28 Preliminary Results 2004 MOVEMENT IN NET DEBT

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 29 Preliminary Results 2004 FACILITY UTILISATION £m

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 30 Hotel Breaks BUSINESS MODEL Accommodation Ancillaries Agents Customer SUPERBREAK - Efficient cost distribution at reasonable yields for suppliers - High service levels, convenience and value for customers and agents VALUE ADDED DISTRIBUTION

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 31 CLASSIC TOUR OPERATING MODEL Adventure BUSINESS MODEL Accommodation Tour Content Customers EXPLORE - Tour origination and operation - High value added - Very difficult for DIY customer to replicate Transport

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 32 HYBRID MODEL – PART TOUR OPERATOR, PART PRINCIPAL Camping BUSINESS MODEL Transport Operators Customers Camp-sites EUROCAMP/KEYCAMP - On site service - Accommodation - Access to best sites - Strongly branded - Effective distribution Equipment Suppliers

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 33 Ugogo.com LAUNCHING 6/12/04