1. Preliminary Results 2006 30 November 2006

2. 2 European specialist holiday group European specialist holiday group Carl Michel (Group Chief Executive) -Introduction Bob Baddeley (Group Finance Director) -Financial Review Carl Michel (Group Chief Executive) -Divisional Review - Strategy -Opportunities -Summary Q&A Holidaybreak plc Today’s presentation

3. 3 European specialist holiday group European specialist holiday group Holidaybreak plc Introduction  Good results demonstrating another robust performance  Market leaders with industry-leading margins  Continue to search out acquisitions that will add to our product and market positions  Current trading is in line with our expectations -confident of achieving another satisfactory performance  2007 a year of investment

4. 4 European specialist holiday group European specialist holiday group BOB BADDELEY GROUP FINANCE DIRECTOR Results for year ended 30 September 2006 Holidaybreak plc

5. 5 European specialist holiday group European specialist holiday group Preliminary Results 2006 FINANCIAL HIGHLIGHTS First audited accounts under IFRS Profit before tax* +7% to £32.1m (2005: £29.9m) Dividend + 10% Net debt reduced by £19.8m 21.3% ROIC (2005: 20.6%) * Stated before goodwill impairment in 2006 of £nil (2005: £9.3m)

6. 6 European specialist holiday group European specialist holiday group Preliminary Results 2006 PROFIT & LOSS ACCOUNT * All stated before goodwill impairment in 2006 of £nil (2005: £9.3m)

7. 7 European specialist holiday group European specialist holiday group Preliminary Results 2006 DIVISIONAL RESULTS 2. * Stated before goodwill impairment in 2006 of £nil (2005: £9.3m) Note: 1. * Includes £0.3m non-recurring costs in relation to the Camping disposal and two potential acquisitions

8. 8 European specialist holiday group European specialist holiday group Preliminary Results 2006 OPERATING MARGINS* * Stated before goodwill impairment in 2006 of £nil (2005: £9.3m)

9. 9 European specialist holiday group European specialist holiday group Preliminary Results 2006 IFRS (1) * PBT is before goodwill impairment in 2006 of £nil (2005: £9.3m)

10. 10 European specialist holiday group European specialist holiday group Preliminary Results 2006 IFRS (2) * PBT is before goodwill impairment of £9.3m Restatement of IFRS results for 2005 previously announced: £m PBT* as reported30.4 Adj. re Djoser 2005 marketing spend (0.5) Restated29.9 Note:under IFRS, Djoser 2005 results now include 9 months sales but 12 months marketing and brochure costs

11. 11 European specialist holiday group European specialist holiday group Net debt reduced by £19.8m, despite acquisition of carpe diem and TravelWorks Interest cover (pre-goodwill impairment) 15.7 times (2005 : 7.7 times) Average interest rate 5.5% inclusive of margin Preliminary Results 2006 CASH FLOW

12. 12 European specialist holiday group European specialist holiday group Preliminary Results 2006 FREE CASH FLOW – by Division Free cash flow = Operating cash flow after net capex, interest & tax

13. 13 European specialist holiday group European specialist holiday group Net debt reduced to £3.1m -£4.0m (net) spent on acquisitions -Gearing 5% (2005: 48%) -Average debt over year £25.3m (2005: £42.6m) Acquired intangibles £9.7m (2005 : £8.3m) -Annual amortisation under IAS 38: £1.0m Bank facilities £140m -Minimum headroom £56m Holidaybreak plc BALANCE SHEET

14. 14 European specialist holiday group European specialist holiday group 2006 capex (net of disposals) of £4.6m (2005: £2.4m) Mobile-homes capacity reduced in 2006 by 16% to 8,463 -further 2% reduction in 2007 2007 Camping capex to be at historic levels – c.900 mobile-homes to be replaced -anticipated spend £9.5m 2007 Group capex increase to c.£16.0m - incl. £4.0m on IT Preliminary Results 2006 CAPITAL EXPENDITURE & DISPOSALS

15. 15 European specialist holiday group European specialist holiday group Low fixed costs in Hotel Breaks and Adventure Travel Double digit margins – well above travel industry norms All divisions cash generative -But capex to be substantially higher in 2007 Healthy return on invested capital Holidaybreak plc FINANCIAL SUMMARY

16. 16 European specialist holiday group European specialist holiday group CARL MICHEL GROUP CHIEF EXECUTIVE Divisional Review Strategy Opportunities Summary Holidaybreak plc

17. 17 European specialist holiday group European specialist holiday group  Divisional operating profit down 4% at £16.2m - London bombings in July 2005 affected market until Spring - Bookings were further impacted by the FIFA World Cup in June and the unusually hot weather in July.  UK market now recovering well – led by resurgence of London and theatre market  Significant increase in range of hotels outside UK - 1,600 hotels (Sept 2005) - 2,400 (Sept 2006) - target of 3,200 (end year)  Outlook is good, with current sales growth of about +8% Holidaybreak plc Hotel Breaks

18. 18 European specialist holiday group European specialist holiday group  2006 divisional operating profit £5.6m (£3.8m)  Underlying demand still good - Middle East (16% of turnover) down as a result of Lebanon war, but not material  Emphasis on expanding range of tours (e.g. 70 new tours added in UK)  Current trading showing +5% sales growth Holidaybreak plc Adventure Travel

19. 19 European specialist holiday group European specialist holiday group  Divisional operating profit down 4% at £12.5m, on 16% lower capacity  2007 capacity –3%: mobile-homes –2%; tents –11%  2007 Capital expenditure (£9.5m net of disposal proceeds) now returning to more normal levels after two years of reduced spend  Strategy is to hold back capacity for higher yields, whereas in 2006 the focus was on early sales ahead of the World Cup  Current trading is –6% on sales intake Holidaybreak plc Camping

20. 20 European specialist holiday group European specialist holiday group  Approaches from private equity players fell short of Board’s valuation – resulting in decision to retain business  Fundamentals remain solid - Margins/ROIC -Cash generation -Repeat customers  Assumption of ongoing 2% p.a. market decline  Offsetting factors - development of new markets (both origin and destination) -new formats (e.g. chalets) Holidaybreak plc Camping – Business Review

21. 21 European specialist holiday group European specialist holiday group 1.Build on core competences: leverage synergies 2.Develop a multi-path approach: avoid being ‘boxed in’ 3.Pursue sustainable faster growth - Secure strong positions in higher margin businesses 4.Diversify sales mix Holidaybreak plc Strategy

22. 22 European specialist holiday group European specialist holiday group  Camping embarking on plan to sell and site mobile- homes (‘Own a Holiday Home’)  Hotel Breaks acquire Embassy Leisure Breaks to integrate into their low cost call centre  Eurocamp Sweden site starts early December  Transfer of Explore’s walking product to Djoser  Sharing search engine capabilities (all divisions) Holidaybreak plc 1. Building on core competencies

23. 23 European specialist holiday group European specialist holiday group  Organic plans in each business, e.g.: - Explore’s special interest and school adventure products -Superbreak developing European and overseas product via an expanded contracting team and deepening product through more ‘bundling’ -Bookit has now got global content (Citytripper.nl) -Camping expanding into new markets (S. Spain, Portugal and Slovenia) and extending chalet offer  Acquisition of German specialist educational tour operating businesses in September  Looking at other acquisitions to enhance market or product positions Holidaybreak plc 2. ‘Multi-path approach’

24. 24 European specialist holiday group European specialist holiday group  carpe diem and TravelWorks are leading players in specialist educational travel in Germany - Net margins of 10% with a clearly differentiated offer -Historical sales growth of 10-15% p.a.  Look to acquire other businesses with strong positions and good margins Holidaybreak plc 3. Sustainable faster growth

25. 25 European specialist holiday group European specialist holiday group  Non-UK was 27% of business in 2005/06 (compared to 18% in 2003/04) and is forecast to grow further  Some sectors (on-line hotels) expected to experience much faster growth in continental Europe than in the UK -Growth both organically and through selective acquisitions  Adventure Travel has potential to develop global customer base -We look to grow this division by acquisition Holidaybreak plc 4. Diversify sales mix

26. 26 European specialist holiday group European specialist holiday group  UK: consolidate pre-eminent position in London and focus on more ‘packaged breaks’  More resource added to improve online functionality and web content  Increased hotel contracting team to develop international offering  Extra investment of up to £2m p.a. Holidaybreak plc Opportunities – Hotel Breaks

27. 27 European specialist holiday group European specialist holiday group  Sector remains fragmented  Socio-economic trends indicate robust growth  Development focus: - new customer markets (Europe and English-speaking world) -new customer groups (e.g. schools, individuals) -new products (e.g. special interest, more extreme adventure) Holidaybreak plc Opportunities – Adventure Travel

28. 28 European specialist holiday group European specialist holiday group  Offering mobile-homes for residential use in France - exploit buying power -leverage customer contacts in a fragmented market  Continue to use marketing and online to appeal to couples and pre-school families  New locations in Southern Spain, Portugal and Slovenia Holidaybreak plc Opportunities - Camping

29. 29 European specialist holiday group European specialist holiday group  Strict criteria  Pipeline of potential targets – mostly in the Adventure/Activity sector  Resourced to investigate opportunities at an earlier stage (before a competitive auction)  Resources to fund large deal  Developing additional specialist tour operating businesses as ‘fourth division’ a possibility Holidaybreak plc Opportunities – Acquisitions

30. 30 European specialist holiday group European specialist holiday group Holidaybreak plc Opportunities – IT / web investment  Camping investing £1m in new reservation system  New websites for Keycamp trade (with XML links), Eurocamp Independent, Easycamp and Eurocamp Sweden  Bookit outsourcing development work to India -Launched Citytripper.nl  Superbreak: new web resource and content management system -New website with ‘mash ups’ (e.g. Google maps, customer feedback) due mid 2007  Explore redesigning website and also developing Web 2.0 (social content)

31. 31 European specialist holiday group European specialist holiday group  Focus on specialization -Reduces risk of disintermediation and thus margin pressure -We will continue to look to increase the ‘value added’ in what we do for our customers (consumer and trade)  Driving customer/trade loyalty -High repeat business (30%) -Our web strategy and loyalty rewards support these behaviours, but excellent customer service has to be the driving force  Creating common platforms -we are now looking at how we can create the necessary shared systems/capabilities to enable potential acquisitions to prosper  Seeking mutually beneficial commercial relationships -we encourage both sales synergies (e.g. Bookit selling camping) and cost benefits (e.g. single suppliers) between and within the divisions, as well as transfer of knowledge Holidaybreak plc Opportunities - Group

32. 32 European specialist holiday group European specialist holiday group Holidaybreak plc SUMMARY  Strategy is well on track – with a mix of organic and acquisition led growth  Vital that we retain the flexibility to exploit opportunities as they arise  Aim to achieve above average margins and a superior return on capital employed  Group’s balance sheet strength can help strengthen the portfolio of businesses. Board retains the option of considering a return of value to shareholders if sensible opportunities to acquire are not realised  Current trading in line with expectations. Confident of achieving another satisfactory performance in 2007