1 PRELIMINARY RESULTS 2003

2 Results overview Financial review Divisions - performance, prospects and strategy Group strategy and prospects Holidaybreak plc PRELIMINARY RESULTS 2003

3 Robust performance - well placed for opportunities ahead Turnover : £259.5m Headline Profit Before Tax : £27.9m (+3.1%) Headline EPS : 44.5p (+4.4%) Dividend : 22p (+10%) Generated £9m net cash Preliminary Results 2003 CHAIRMAN’S STATEMENT (1)

in Retrospect TERRORIST ACTIVITY

in Retrospect IRAQ WAR

in Retrospect SARS

in Retrospect FINANCIAL MARKET WEAKNESSES

in Retrospect LONG HOT SUMMER

9 Divisional performance : - Camping recovered strongly from weak early markets - Another outstanding year for Hotel Breaks -Adventure again held back by geopolitical events Encouraging start to 2004 from Hotel Breaks and Adventure Well placed to meet challenges - longer term prospects excellent Preliminary Results 2003 CHAIRMAN’S STATEMENT (2)

10 Preliminary Results 2003 PROFIT & LOSS ACCOUNT All stated before goodwill and exceptional costs

11 Preliminary Results 2003 DIVISIONAL RESULTS All stated before goodwill and exceptional costs

12 Preliminary Results 2003 EXCEPTIONAL COSTS Reorganisation costs relating to Eurosites acquisition £2.7m -Assets written-off £0.7m -Rebranding and resiting mobile-homes £0.6m -Redundancies £0.6m Advisers fees relating to aborted acquisitions £0.4m Write-down of fixed asset investments£0.6m

13 Preliminary Results 2003 BALANCE SHEET (1)

14 Preliminary Results 2003 BALANCE SHEET (2) Fixed Asset Investments written down by £0.6m Prior year adjustment re goodwill previously written-off -reduces net assets at 1 October 2001 by £3.6m Net debt reduced to £23.4m -gearing 61.3% (2002 : 96.7%) Goodwill on Bridge acquisition impaired

15 Preliminary Results 2003 CAPITAL EXPENDITURE & DISPOSALS (1)

16 Total capex 40% higher than 2002 Net spend on mobile-homes £11.1m - increase capacity by 5.5% - replacement expenditure £10.5m Mobiles continue to achieve book value on disposal - disposal proceeds £4.3m Preliminary Results 2003 CAPITAL EXPENDITURE & DISPOSALS (2)

17 Preliminary Results 2003 MOVEMENT IN NET DEBT

18 Net debt reduced by £9.0m Capex largely financed through new HP (57%) Capex requirement 2004 & beyond Interest cover 6.5 times (2002 : 12.3) Currency and interest hedges in place Headroom in bank facilities Preliminary Results 2003 CASH FLOW

19 Holidaybreak plc BUSINESS STRENGTHS Market leaders Service and Product Quality Multi-channel distribution Healthy margins - well above travel industry norms Flexible cost structures and products Strong cash generation

20 All divisions will generate organic growth Exploit and adapt to key consumer and supply side trends Active product and distribution development programmes Small ‘bolt-on’ acquisitions to act as a catalyst and open up new opportunities Larger scale ‘fourth leg’ acquisition also a possibility -at right value -not mainstream package tour operating Holidaybreak plc GROUP STRATEGY

21 Weak early market, slow start - strong recovery after end of Iraq war Like for like sales (including Eurosites) 6% down year on year (capacity : -4%) Exceptional summer -may have deterred some late bookings -high customer satisfaction levels Eurosites integration went smoothly -£1.6m synergies exceeded expectations -year on year bookings performance weaker than Eurocamp and Keycamp Camping 2003 PERFORMANCE

22 Mainstream market summer 2004 bookings up to 30% down Eurosites now integrated into Eurocamp and Keycamp Capacity : -8% planned Sales to date : -20% like for like New Year bookings expected to be much stronger than equivalent ‘war build up’ period in 2003 Camping TRADING AND PROSPECTS

23 Current MD Jim Crew will retire in the New Year once successor appointed Recruitment process already well advanced Key appointment -Core business of the Group and biggest profits generator -Will also sit on plc Board Camping MANAGEMENT

24 Sector resilient with high levels of customer loyalty to both brands and holiday type Holidays must be attractive and good value - aim to deliver consistently high quality product and service standards Growth drivers : - Trends from lower priced, lower margin tents to higher priced, higher margin mobile-homes plus upgrades within mobile-home range -Increased penetration of ‘mainstream’ self-catering markets -Greater capacity and support for premium Eurocamp and Keycamp brands -Easycamp : 2003 launch of ‘no frills’ product in Holland/Germany Camping STRATEGY

25 Favourable market conditions - demand and supply sides Growth through all main distribution channels - high street agents (50%), internet (25%) and direct (20%) Acquisitions of Bridge Britain and London Travel Service from MyTravel in March 2003 European Cities 190% year on year - now 9% of total sales Hotel Breaks 2003 PERFORMANCE

26 Hotel Breaks TRADING AND PROSPECTS 2004 sales 37% up year on year Internet still growing strongly Continuing benefits of Bridge acquisition Official accommodation provider (web and telephone) for Visit London campaign (ex-LTB) European Beach Breaks programme

27 Favourable consumer trends Simple business model - resilient, cash generative and very flexible cost base Multi-channel distribution - internet a major growth driver but high street agents still a key element in distribution mix Constant search for new distribution opportunities and product extensions - further small bolt-on acquisitions possible Hotel Breaks STRATEGY

28 Good first quarter but trading deteriorated rapidly as Iraq war approached SARS, terrorist incidents (Bali, Morocco) and threats (East Africa) and regional conflicts (India/ Pakistan, Nepal) also had a negative impact Regions not directly affected performed well e.g. South America, Europe and South Africa Load factors and gross margins maintained Adventure 2003 PERFORMANCE

sales 8% up year on year Sales rebound in regions negatively affected in 2003 e.g. India, Thailand, Egypt (important for RegalDive) Progress in various areas -New products (Adventure Breaks, Family, Cycle, Rail) -Brand strategy refocused -Internal systems and organisation Cautiously optimistic Adventure TRADING AND PROSPECTS

30 Adventure STRATEGY

31 Strategy - Travel Industry Trends KEY STRUCTURAL INFLUENCES TRAVEL Rigid, vertically integrated tour operating model under threat Distribution Fragmenting Later Bookings Consumer holiday trends - shorter more frequent - more independent/tailor made/flexible - holidays with purpose Internet Low cost airlines

32 Environmental Changes IMPACT ON HOLIDAYBREAK impact on Adventure Complements existing distribution channels for specialist holiday businesses. Key growth driver for hotel breaks Low-cost Airlines Positive for Camping and Hotel Breaks. No Distribution Fragmenting All Holidaybreak businesses use multi- channel distribution - not over reliant on high street agents Internet Later Bookings Camping still an early booking business (40% pre-Christmas) - family market still has to plan Consumer Trends Holidaybreak businesses give consumers choice, flexibility and alternatives to standard packages Vertical Integration Holidaybreak businesses not vertically integrated

33 Prospects KEY CURRENT ISSUES AND EVENTS TRAVEL Strengthening Euro Weakening Dollar Exceptional UK summer weather Geopolitical Uncertainty Consumer Confidence

34 Prospects CURRENT ISSUES AND EVENTS Consumer Confidence Geopolitical Uncertainty Euro still ‘mid-range’ in historical terms. Natural hedge for Camping due to Euro revenues. Weak dollar positive for Adventure. Strengthening Euro Weakening Dollar Camping and Hotel Breaks relatively ‘safe’ holiday choices. Adventure has exposure but many alternative destinations. Exceptional UK Summer Weather Still strong in UK. Weaker in main European markets for Camping Should benefit Camping and Hotel Breaks in 2004.

35 Strong cash generative businesses -Resilient performance in Well placed to benefit from holiday sector brands Strategy of seeking steady organic growth supplemented by appropriate acquisitions at right value (debt capacity available) Record shows 10-15% EPS and dividend growth. This remains our aspiration Encouraging start to 2004 by Hotel Breaks and Adventure. Post New Year bookings a key indicator for Camping Preliminary Results 2003 OVERVIEW AND SUMMARY