1 PRELIMINARY RESULTS 2002

2 Holidaybreak plc PRELIMINARY RESULTS 2002 Results Overview Financial Review Acquisition of Eurosites UK Travel Sector Divisions - performance, prospects and strategy Board changes Group strategy and prospects

3 Preliminary Results 2002 CHAIRMAN’S STATEMENT (1) Sixth successive year of growth in turnover, profits, EPS and dividend 2002 growth almost entirely organic Turnover : £218.7m (+13.6%) Profit before tax : £27.1m (+13.7%) EPS : 42.5p (+11.6%) Dividend : 20p (+11.1%) Net debt reduced by £21.8m (before cost of Eurosites acquisition)

4 Preliminary Results 2002 CHAIRMAN’S STATEMENT (2) Shareholder value increased in year that many holiday businesses have struggled -Camping outperformed mass market operators -Another outstanding year for Hotel Breaks -Increased revenues for Adventure despite September 11th Acquisition of Eurosites Further profitable progress in 2003 should be made Longer term prospects excellent

5 Preliminary Results 2002 PROFIT & LOSS ACCOUNT All stated before goodwill amortisation

6 Preliminary Results 2002 DIVISIONAL RESULTS All stated before exceptional operating costs and goodwill amortisation

7 Preliminary Results 2002 BALANCE SHEET

8 Preliminary Results 2002 CAPITAL EXPENDITURE & DISPOSALS (1)

9 Eurosites fixed assets at provisional fair value of £15.3m Total capex 15% down on 2001 Net spend on mobile-homes £6.2m - increase capacity by 7% Mobiles continue to achieve book value on disposal Non-camping division expenditure of £2.5m - Explore freehold £1.7m Preliminary Results 2002 CAPITAL EXPENDITURE & DISPOSALS (2)

10 Preliminary Results 2002 NET DEBT EXISTING BUSINESS

11 Preliminary Results 2002 NET DEBT - IMPACT OF ACQUISITIONS

12 Net debt in existing businesses reduced by £21.8m Acquisition funded entirely through debt Capex largely financed through new HP Capex requirement 2003 & beyond Interest cover 12.3 times (2001 : 8.6) Currency and interest hedges in place Headroom in bank facilities Preliminary Results 2002 CASH FLOW

13 Established 1 May 2002 Developments in Insurance market - Collapse of Independent Insurance plc - 100% increase in premiums not consistent with claims experience Offshore Captive established to underwrite risk for mobile-homes - property damage/business interruption only - all other insurance purchased in general insurance market Strategy to underwrite customer insurance policies Preliminary Results 2002 CAPTIVE INSURANCE

14 Business and assets of Eurosites (UK) plus Dutch, German and Danish subsidiaries £29.9m consideration financed entirely by debt 2,770 mobile-homes and 1,399 tents plus equipment (H/break 2002: 7,372 mobiles and 6,698 tents) Distribution agreement with MyTravel UK retail (Going Places/Travelworld) Database of 150,000 customers and c.1m enquirers Acquisition of Eurosites TRANSACTION DETAILS

Sales £27.1m and estimated operating profits of £3.7m Relatively new mobile-home fleet (av. age 3.6 years) Access to pitches Ability to manage sector capacity levels to ensure healthy occupancy at sensible prices Holidaybreak now the only serious player in tent holidays Acquisition of Eurosites BENEFITS (1)

16 Cost efficiencies - elimination of duplicated costs/ economies of scale Purchasing benefits - transport operators, camp- sites, manufacturers etc Enhanced UK retail distribution Eurosites the only substantial direct competitor in Germany and Denmark Office in Copenhagen will be used for all brands Acquisition of Eurosites BENEFITS (2)

17 Eurosites brand continuing in summer 2003 Cost savings in overseas operations, purchasing, distribution and management Integration process going to plan: - UK business operation transferred from Accrington to Northwich December Similar transfers in Germany and Holland (Denmark office retained) - Immediate integration of overseas operations and marketing Options for Continue with brand and current positioning - Reposition Eurosites brand - Consolidate into Eurocamp and Keycamp Acquisition of Eurosites STRATEGY AND INTEGRATION

18 UK Travel Sector CONSUMER TRENDS SIGNIFICANT TO TRAVEL PDI increasing - higher proportion spent on leisure Cash rich, time poor consumers - “too much to do not enough time” Leisure consumed more intensively Internet usage increasing (c.50% now have access) Ageing population, more affluent and more adventurous in leisure spend

19 UK Travel Sector KEY CONSUMER TRENDS IN TRAVEL (1) Overseas market forecast at 37.3m trips for growing at average c.4% per annum Domestic market forecast at 65.8m trips in marginal growth Increased frequency, shorter duration holiday trips - Over 60% of all domestic holiday trips were short breaks in 2001 (i.e. 3 nights or less) - Overseas short breaks also growing - c.15% of the market - Average holiday lengths declining - overseas : 9.5 nights domestic : 4.2 nights - Growth in multiple holiday taking - rapid increase in ‘3 holidays plus’

20 UK Travel Sector KEY CONSUMER TRENDS IN TRAVEL (2) Increasing importance of ‘grey’ (50+) market - have time, money and desire to travel Independent travel and “tailor-made” holidays gaining share from fixed packages More “holidays with a purpose” Increasing use of internet for booking travel particularly ‘commodity’ items - flights, hotels, car hire etc. Internet used extensively for information gathering for all types of travel but most holiday bookings still made over the telephone or through travel agents Bookings coming in later ‘life style’ as well as ‘deals’ driven

21 UK Travel Sector THE INDUSTRY Mainstream package sector under pressure Low cost airlines changing consumer behaviour and challenging established business model Distribution channels fragmenting Globalisation and consolidation likely to continue Specialist operators and good independent agents continue to thrive

22 UK Travel Sector OUTLOOK FOR 2003 Consumers still spending but ‘nervous’ - holding back on longer term commitments i.e. Bookings coming in but coming in late Security concerns reducing demand for some long-haul destinations but not a general deterrent to overseas travel Mainstream market likely to take a conservative approach on capacity No early summer distractions - Jubilee and World Cup appeared to hold back summer market in 2002 Market will book late

23 Camping Division 2002 PERFORMANCE Financials - Sales: £109.2m (+5.3% on 2001) Operating Profit: £19.0m (+ 6.3%) Mobile-homes sales up 12% - 58% of total bookings (72% in the UK) Early bookings strong post September 11th but excess capacity in package sector slowed later demand German market weak, Dutch demand held up well Customer service measures improved but overall satisfaction affected by weather

24 Camping Division 2003 TRADING AND PROSPECTS Year on year sales for enlarged division 3% behind year on year comparison may be distorted by post September 11th bookings size in autumn 2001 Eurosites 8% down Capacity held back until trends become clearer Mobile-homes share of capacity again increasing Overall prospects clearer after January booking period

25 Camping Division STRATEGY Aim to achieve top and bottom line growth Increase range and number of mobile-homes - aim at longer life through higher spec build and refurbishment Target ‘self-catering’ rather than ‘camping’ customers Concentrate tents on popular high demand camp-sites Range of strategies to secure quality camp-site capacity in key locations Launch of new product in Holland/Germany using camp-site owned mobile-homes Improve service standards concentrating on areas that “make a difference” to repeats and recommends

26 Hotel Breaks Division 2002 PERFORMANCE Financials - Sales: £76.9m (+ 33.2% on 2001) Operating Profit: £7.8m (+ 42.8%) Consistently strong consumer demand Plentiful capacity - new builds, lack of overseas demand Growth through all distribution channels but internet outstanding (+170% on 2002, 21% of total sales) Improved margins due to increased share of non-high street agent sales and operational economies of scale Acquisition of Crystal Britain Successful launch of European ‘accommodation only’ programme (3% of 2002 sales)

27 Hotel Breaks Division 2003 TRADING AND PROSPECTS Year on year sales 33% up on 2002 Consumer demand remains strong and capacity availability good European programme more than doubled destinations, 800 hotels (UK: 1500 hotels) Rate of growth will slow but another good year in prospect

28 Holidaybreak plc HOTEL BREAKS DIVISION - STRATEGY Support high street agencies (57% of 2002 sales ) whilst developing alternative sales channels Partnership marketing through affinity groups and via internet portals Continue to stretch product offer whilst maintaining simple business model Build European programme - product and distribution Develop overseas markets Further bolt-on acquisitions a possibility

29 Adventure Division 2002 PERFORMANCE Financials - Sales: £32.6m (+ 5.1% on 2002) Operating Profit: £2.4m (- 28.5%) September 11th- sales plummeted - cancellations and postponements - operational disruption (nb. airlines) - Regal hit harder than Explore Sales recovered well in New Year - Europe, Africa, South America all strong Margins affected by reduced load factors and higher overhead ratios Late bookings (within 8 weeks) double 2001 levels

30 Adventure Division 2003 TRADING AND PROSPECTS Sales up 40% on 2002 Year on year comparison flattering - increase will reduce as year progresses ‘Security risk’ destinations (Middle East, Nepal) underperforming Late demand strong Margin improvement anticipated

31 Adventure Division STRATEGY Develop product range to extend market reach - Short Tours and Family (both already launched), Walking and Trekking Distribution initiatives - e-marketing, UK agents, broader range of sales promotion activity Develop systems to support evolving product and more complex consumer demands Acquisitions must broaden product range or enhance marketing reach

32 Holidaybreak plc BOARD CHANGES Angus Crichton-Miller will step down from Chairmanship and Board, as planned, in June 2003 Bob Ayling will join the Board as a non-executive director and Chairman Designate in February James Wallace (also non-executive Chairman of Bodycote plc) joined the Board as a non-executive director in May, replacing Peter Folkman

33 The Future BACKGROUND Realistic Ambitions - 10/15% annual EPS growth - Selective acquirers Selected niches - Market leadership - Growth potential - High margin - Low commitments Strong cash generation - £21.8m in 2002 Management experienced and stable Consistent approach

34 The Future PROSPECTS 2003 Performance derived from - Organic growth - Benefits of Eurosites Debt capacity available for further acquisition(s) Resilience and cash generating qualities not in doubt Consistent approach will produce consistent progress in 2003 and beyond