1. 1 THE UK’s LEADING OPERATOR OF SPECIALIST HOLIDAY BUSINESSES August 2002 AUGUST 2002

2. 2  One of only three quoted UK tour operators  Three operating divisions - Camping, Hotel Breaks and Adventure Holidays  2001 turnover £192.5m - pre-tax profits £23.8m (£21.6m after goodwill amortisation and exceptional operating costs)  Consistent growth record - five years of growth in profits, eps and dividend  Aiming to grow organically and through further acquisitions  Further profits and dividend growth in 2002 Holidaybreak plc OVERVIEW

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4. 4 Holidaybreak plc OUR RECORD (1) Turnover Profit Before Tax* £m *12 months pro-forma * Before goodwill amortisation and exceptional operating costs COMPOUND GROWTH 17% COMPOUND GROWTH 15% **12 months pro-forma

5. 5 Holidaybreak plc OUR RECORD (2) Earnings per Share*Dividend Pence **12 months pro-forma * Before goodwill amortisation and exceptional operating costs COMPOUND GROWTH 12% COMPOUND GROWTH 12.5%

6. 6  UK travel industry overview  Our businesses  Common characteristics of Group companies  Financial information  Current trading and prospects Holidaybreak plc TOPICS COVERED

7. 7  Four major players in UK: Thomson (TUI/Preussag), My Travel (Airtours), Thomas Cook (C&N) and First Choice - 70% share of inclusive holidays sold and own 45% of high street agents. Further consolidation likely.  Vertical integration strategy exposed by recent industry trends  Many specialist operators and independent agents continue to thrive  Low cost airlines (Easyjet, Ryanair, Go etc) have challenged existing industry model and changed consumer behaviour  Distribution channels fragmenting - internet, teletext, TV channels, Off the page UK Holiday Sector INDUSTRY DEVELOPMENTS

8. 8  Consumers - more knowledgeable, more demanding, less brand loyal  Independent and tailor-made holidays increasingly favoured  Increase in multiple holiday taking and short breaks (domestic and overseas)  ‘Grey’ market increasing in importance  Other growth areas are long-haul and activity/ special interest  Late booking trends partly driven by bargain hunting and partly by lifestyle changes and more frequent travel UK Holiday Sector CONSUMER TRENDS

9. 9 UK HOLIDAY MARKET (Short breaks = 1-3 nights) Source: Mintel (2002) Holidaybreak plc GROWTH IN OVERSEAS Holidaybreak plc GROWTH IN OVERSEAS HOLIDAYS, 1991-2001

10. 10 Holidaybreak plc GROWTH IN DOMESTIC HOLIDAYS, 1991-2001 UK HOLIDAY MARKET Source: Mintel (2002) (Short breaks = 1-3 nights)

11. 11  Quality market leading businesses in sectors with good growth potential  Avoid volatile, low margin, short-haul package holiday market  Organic growth combined with ‘bolt-on’ acquisitions to existing divisions and acquisition of travel businesses in new sectors  Characteristics of Group businesses provide an excellent platform for growth and acquisition template Holidaybreak plc POSITIONING AND STRATEGY

12. 12  Original and largest part of the Group - 54% of 2001 sales  Two market leading brands - Eurocamp and Keycamp (60% share in UK)  Pre-sited mobile-homes and tents on quality, third party owned camp-sites in France, Italy and seven other countries - flexible contracts  c.50% of customers non-UK (mainly German and Dutch) Holidaybreak plc CAMPING DIVISION

13. 13  Courier and children’s activity service  Tailor made packages - any day to any day  Self-drive holidays - ferry inclusive from UK  Mainly direct sell but some retail agent sales. Internet increasingly important  Mid to upper income, family customer base Holidaybreak plc CAMPING DIVISION

14. 14  Acquired 1995 - 30% of 2001 sales  Superbreak and Hotel Breaks the main brands  Breaks in 1400 UK hotels (200 in London)  No commitment allocations  Price guarantee to customers  Rail inclusive and theatre breaks available Holidaybreak plc HOTEL BREAKS

15. 15  60% of sales through UK travel agents - sector share 65%  Direct and internet sales growing fast (nearly 40%)  Two on-line internet booking sites - Superbreak.com (UK and Eurobreaks) and Hotelnet.co.uk (worldwide)  Accommodation only European cities programme recently launched (450 hotels/40 cities) Holidaybreak plc HOTEL BREAKS

16. 16  Explore Worldwide and Regal Diving acquired in 2000 - 16% of 2001 sales  Explore is the UK market leader in worldwide adventure travel and largest European operator  Small groups with own tour leader - 100 countries  Scheduled flights  Sells direct and through overseas GSAs Holidaybreak plc ADVENTURE

17. 17  Regal is the leading UK operator of scuba diving holidays  All levels catered for - Red Sea (Egypt - 80% of sales). Maldives, Caribbean, Far East growing fast  Charter flights to Red Sea, scheduled flights to other destinations  Sells direct and through specialist dive shops/centres Holidaybreak plc ADVENTURE

18. 18  Market Leading businesses - Eurocamp, Keycamp, Superbreak, Explore Worldwide and Regal  Growth opportunities - in all divisions  Healthy margins - much higher than sector norm  Low fixed cost commitments - flexible business models  Strongly cash generative - especially Hotel Breaks and Adventure Holidaybreak plc COMMON CHARACTERISTICS

19. 19 Common Characteristics MARKET LEADERSHIP

20. 20 Common Characteristics GROWTH PROSPECTS

21. 21 Common Characteristics HEALTHY OPERATING MARGINS  Adventure margin in 2000 shows part year only, following acquisitions  Holidaybreak margins are well above industry norms and compare favourably with charter air package operators

22. 22 Common Characteristics LOW FIXED COSTS

23. 23 Common Characteristics CASH GENERATION

24. 24  2001 ROCE 21.7% (2000 : 20.4%)  Annual capex (mainly Camping) requirement (+ £15m net) - depreciation + £12m  2001 interest cover 8.6 times - will increase  Net currency exposure limited  Strong operational cash flow but seasonal  Headroom within banking facilities for further acquisitions Holidaybreak plc FINANCIALS

25. 25 Holidaybreak plc 2001 PROFIT & LOSS ACCOUNT All stated before exceptional operating costs and goodwill amortisation PRELIMINARY RESULTS

26. 26  £5.9m loss * entirely normal (2001 : £6.7m*) * Before tax and goodwill amortisation  Hotel breaks-substantial growth at the top line -margin improvement  Adventure-pleasing sales performance following post September 11th disruption - reduced margins due to load factor pressures  Camping -similar loss to 2001  Interest charge down  Substantial net debt reduction Holidaybreak plc HALF-YEAR RESULTS

27. 27  Camping performing ahead of mainstream AIT operators, sales 6% up on 2001  Hotel Breaks continuing to perform very strongly - sales 30% up on 2001  Adventure will achieve a creditable result in a difficult year - sales currently 2% up on last year  Overall prospects for the year are good - further earnings and dividend growth anticipated Holidaybreak plc INTERIMS - TRADING AND PROSPECTS (As at 7 th May 2002)

28. 28  Quality market leading businesses in attractive sectors with good prospects for growth and also good defensive qualities  Consistent record of earnings and dividend growth - strongly cash generative  Further profits growth in 2002 expected  Holidaybreak well placed to benefit from current holiday sector trends - very strong cash generation a key characteristic of the business  We view the future with confidence Holidaybreak plc SUMMARY