1. The UK’s Leading Operator of Specialist Holiday Businesses
INTERIM RESULTS 2005

2. TODAY’S PRESENTATION Bob Ayling (Chairman) - Overview
Bob Baddeley (Finance Director)
- Finance Review
Richard Atkinson (Chief Executive)
- Divisional Review
- Strategy
Questions

3. Holidaybreak plc INTERIM RESULTS 2005
First ever interim operating profit
Acquisitions progressing well
More balanced composition of Group
Strong cash performance
Dividend up 10%
Satisfactory trading outcome expected

4. Holidaybreak plc INTERIM RESULTS 2005
FINANCE DIRECTOR’S REVIEW
BOB BADDELEY

5. Interim Results 2005 FINANCIAL HIGHLIGHTS
Turnover +19% to £85.3m (2004 : £71.5m)
Operating profit* £1.4m (2004 : loss £2.5m)
Net debt increased by just £4.2m to £65.1m (2004 : £60.9m) after acquisitions
Dividend up 10%
*Before goodwill amortisation

6. Interim Results 2005 PROFIT &LOSS ACCOUNT
*All stated before goodwill amortisation

7. Interims 2005 – Divisional Results
* All stated before goodwill amortisation

8. Interims 2005 – Divisional Results ACQUISITIONS
*All stated before goodwill amortisation

9. Interims 2005 – Divisional Results EXCLUDING ACQUISITIONS
* All stated before goodwill amortisation

10. Interim Results 2005 BALANCE SHEET
Goodwill on acquisitions £38.6m - Bookit £22.3m
- Djoser £16.3m
Total Goodwill £73.2m (2004: £42.9m) Net debt £65.1m (2004 : £60.9m)
Reduction in Capital Expenditure
- Net spend to date £3.3m (2004 : £10.9m)
- Expected for year £5.0m (2004 : £13.5m)

11. Interim Results 2005 CASH FLOW
Operating outflow in half year £7.9m (2004 : £20.7m) Expenditure on acquisitions £39.0m Increased bank facilities Operating cash inflow over last twelve months £59.0m including overseas VAT in May 2004 (£9.7m)

12. Interim Results 2005 FINANCIAL SUMMARY
Profits growth in Hotel Breaks and Adventure Continue to generate substantial operating cash flow
Low Capex Acquisitions financed through cash flow and new
bank facilities

13. Holidaybreak plc INTERIM RESULTS 2005
CHIEF EXECUTIVE’S REVIEW
RICHARD ATKINSON

14. Pressure on vertically integrated operators and traditional airlines
CHANGING LANDSCAPE OF
TRAVEL SECTOR
Pressure on vertically integrated operators and traditional airlines
The Consumer
- huge range of choice
- shorter more frequent holidays/long haul
- later bookings
- more independent/tailor made/flexible
- holidays with purpose (activity/special interest)
Internet
Low cost airlines
TRAVEL
Specialist holiday providers prospering

15. GROUP STRATEGY Specialist holiday businesses Market leadership
Industry leading margins
Cash generation and attractive dividend payout
Flexible cost structures
Organic growth
Supported by complementary acquisitions

16. THREE OPERATING DIVISIONS
£63.0m*
(19%)
£150.6m*
(45%)
£123.2m
(36%)
Camping
Hotel Breaks
Adventure
*Pro-forma 2004 sales (TTV) including recent acquisitions

17. Hotel Breaks OVERVIEW
Now Holidaybreak’s biggest profit and cash generator
Half-year profit up 28% to £7.6m (+15% like for like) margin improvement
Cumulative 2005 year to date sales intake +6%
(+3% like for like)
Consumer demand for UK leisure breaks subdued,
European breaks showing good growth
Growth opportunity in second half

18. ACQUISITION OF BOOKIT
Leading on-line intermediary for short stay leisure breaks in the Netherlands – acquired for €33.5m (£23.1m)
Weekend and overnight leisure hotel sales and rapidly growing chalet / summerhouse offer (85% on-line)
Similar (but not identical) business model to Superbreak – high variable costs
Income generated from commissions (8-12%) and customer booking fees
Integration going smoothly, initial
trading encouraging

19. Hotel Breaks 2004 SALES (Pro-forma: TTV)
28%
Other UK
Overseas
London
Bookit
46%
20% 6%

20. 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
Strengths - Supplier relationships Operations/processes Management team (staying with business) Growth record (top and bottom line)
Potential for - Product ‘stretch’ Add Superbreak product New market penetration

21. Hotel Breaks DIVISIONAL STRATEGY
Increase distribution reach within core UK market and overseas
Marketing partnerships and brand awareness
Product development (NB. Bookit)
Consolidate and add value to hotel relationships
Maintain/reduce overhead cost ratios

22. Adventure OVERVIEW
UK market leader in ‘soft’ adventure and scuba diving holidays
- Increasing demand for active and special interest holidays
Half-year profit up 67% to £2.5m (+54% like for like)
- Tsunami impact not material
- Load factors and margins strong
Cumulative 2005 sales intake +77% (+20% like for like)
- Another excellent year in prospect
Strong demand trends continuing – favourable initial indications
for 2006

23. ACQUISITION OF DJOSER
Market leading Dutch ‘soft adventure’ holiday operator acquired for €22.8m (£15.7m)
Business model very similar to Explore – gross margins c.25%
Marketing led
Small team – outsourcing Integration going smoothly initial trading encouraging Significant increase in size of Adventure Division

24. Adventure Holidays Division 2004 SALES (Pro-forma)
Explore UK
Djoser
Explore Overseas Agents
RegalDive 4% 9%
41%
46%

25. Djoser KEY INVESTMENT ATTRACTIONS Djoser - market leader in Holland
- very high brand awareness
- high on-line penetration (65% of bookings)
Synergistic benefits with Explore
Product development opportunities
Potential for development in other European countries
Experienced management team (staying with business)

26. Adventure DIVISIONAL STRATEGY
Market leadership in European “soft adventure” sector (NB. Germany)
Broaden awareness of sector to wider audience
New product development to drive growth
On-line business at 50% in 3 years
Effective yield management key to profitability

27. Camping
OVERVIEW (1)
Changing market landscape but growing signs of new
demand/supply equilibrium in mainstream sector
Interim loss reduced – Easter sales included in first half
and overheads reduced
Sales: - Year on year –9% Market still tough but more resilient recent trends UK travel agency sales below expectations
- Dutch sales strong (Eurocamp and Easycamp)
- Internet and air based holidays increasing share
- Strong late bookings ‘four weeks out’

28. Camping OVERVIEW (2) Capacity: - Mobile-homes: -11% - Tents: -14%
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

29. DIVISIONAL STRATEGY (1)
Camping
DIVISIONAL STRATEGY (1)
Capacity for 2006 under review - will be lower again with relatively low capital expenditure envisaged
Ongoing overhead / operational costs review
Mobile-homes: - Longer life / refurbishment programme
- Accommodation upgrades
IT investment to facilitate: - E-commerce development (“country.coms”)
- White label ( third party) distribution
- Yield management efficiency
- Customer service delivery

30. DIVISIONAL STRATEGY (2)
Camping
DIVISIONAL STRATEGY (2)
Brand differentiation (Eurocamp, Keycamp, Budget brand / Easycamp)
More intensive, regionalised marketing communications programme to increase awareness of and overcome consumer perceptions of mobile-home, camp-site based holidays
Continuing focus on stabilising occupancy rates, optimising yields and maintaining / improving margins

31. OUTLOOK
Strong cash performance, good margins and satisfactory trading outcome anticipated
Recent acquisitions integrating and performing well - add to strength of Group going forward
More balanced composition of Group – greater weighting in growth areas
Longer term - rapid cash generation, healthy margins
Holidaybreak is well placed to exploit prevailing trends in the travel sector

32. Holidaybreak plc CORPORATE CALENDAR
Shares ex-dividend: 22 July 2005
Trading update – mid-September
Preliminary Results – 1 December 2005 (provisional)
AGM – March 2006

33. The UK’s Leading Operator of Specialist Holiday Businesses
QUESTIONS