1. education, leisure and activity travel group education, leisure and activity travel group 1 Full Year Results 2008 27 November 2008

2. education, leisure and activity travel group education, leisure and activity travel group 2 INTRODUCTION Full year results - Revenue growth of 27% - Not immune to market conditions - Costs under control - Resilient Dividend to be cut to conserve cash and restore cover Will perform well through the downturn - Medium-term growth potential undiminished

3. education, leisure and activity travel group education, leisure and activity travel group 3 GROUP FINANCE DIRECTOR’S REVIEW BOB BADDELEY

4. education, leisure and activity travel group education, leisure and activity travel group 4 FINANCIAL SUMMARY PBT*£32.4m (2007: £40.0m) Tax rate23% (2007: 30%) Net debt £161.3m (2007: £146.5m) EPS*52.9pps (2007: 59.4pps) Total dividend 16.05pps (2007: 32.10pps) * Stated before amortisation of acquired intangible assets of £4.2m (2007: £2.5m), exceptional restructuring costs of £2.3m (2007: £nil) and impairment of goodwill of £2.5m (2007: £nil) and for EPS the tax effect thereof of £1.4m (2007: £0.1m).

5. education, leisure and activity travel group education, leisure and activity travel group 5 INCOME STATEMENT * Stated before amortisation of acquired intangible assets of £4.3m (2007: £2.5m), exceptional restructuring costs of £2.3m (2007: £nil) and impairment of goodwill of £2.5m (2007: £nil) and for EPS the tax effect thereof of £1.4m (2007: £0.1m).

6. education, leisure and activity travel group education, leisure and activity travel group 6 DIVISIONAL RESULTS * Stated before amortisation of acquired intangible assets of £4.3m (2007: £2.5m), exceptional restructuring costs of £2.3m (2007: £nil) and impairment of goodwill of £2.5m (2007: £nil).

7. education, leisure and activity travel group education, leisure and activity travel group 7 ONE-OFF CHARGES Exceptional restructuring costs Closure of Cambridge (NST) £1.4m and PGL French HQ (£0.4m) Closure of Camping Swiss office and Head Office redundancies (£0.5m) Impairment of Goodwill – Regal £2.5m

8. education, leisure and activity travel group education, leisure and activity travel group 8 NET DEBT

9. education, leisure and activity travel group education, leisure and activity travel group 9 BALANCE SHEET

10. education, leisure and activity travel group education, leisure and activity travel group 10 BANKING FACILITIES Continued high cost of debt and unexpectedly sharp downturn in Hotel Breaks after May Agreed with banks that the covenants be amended -Increase in the Group’s finance charges -Margin on borrowings increased from 1.3% above LIBOR to 3.25% -Bank fees £2.7m Headroom within amended covenants for possible weaker trading environment 5 year committed £265m facility Longstanding and healthy banking relationship

11. education, leisure and activity travel group education, leisure and activity travel group 11 INTEREST HEDGES 5 yr swaps are callable by Bank after six months and three years 25% of bank debt is floating Effective average interest rate is 7.7% at revised margin and bank base rate at Nov. 27 th

12. education, leisure and activity travel group education, leisure and activity travel group 12 CURRENCY HEDGES 23% of Group EBITA in € zone Other net exposure - c. €60m - c. $35m 80% of Group’s € and $ requirements for 2009 bought at average rates of €1.27 and $1.79

13. education, leisure and activity travel group education, leisure and activity travel group 13 FINANCES - SUMMARY Long-term credit facilities in place Headroom to counter possible weaker trading conditions Forex exposure substantially covered at favourable rates Interest costs fixed with some ability to take advantage of future reductions in rates

14. education, leisure and activity travel group education, leisure and activity travel group 14 GROUP CHIEF EXECUTIVE REVIEW CARL MICHEL

15. education, leisure and activity travel group education, leisure and activity travel group 15 TRADING UPDATE 2009 Sales Outlook* EDUCATION+8% PGL Adventure UK centres at 96% sold to target. Over 600 new beds being added for 2008/09 (of which 450 at Windmill Hill). HOTEL BREAKS-15% New offers in market place (e.g. £99 for a weekend in London plus return train fare). Tutankhamun/China Warriors comparatives will ease by spring 2009. New shows in Oliver, Priscilla and Sister Act ADVENTURE TRAVEL +1% Cost base (esp. fuel surcharges) now stable. 2007/08 issues with Antarctica, Kenya & Tibet CAMPING-2% Capacity -1% mobile-homes, -15% tents (=> -4% overall). Currency shifts make sales in NL, D, PL increasingly attractive. * Based on revenue intake/booking position as at Nov 24 th 2008

16. education, leisure and activity travel group education, leisure and activity travel group 16 TRADING UPDATE Divisional Margins* * Stated before amortisation of acquired intangible assets, exceptional restructuring costs and impairment of goodwill.

17. education, leisure and activity travel group education, leisure and activity travel group 17 TRADING UPDATE Group Margins COMMENTS FOR 2008/09 EDUCATION: Timing of PGL acquisition and inclusion of lower margin NST business HOTEL BREAKS: Channel gains by retail trade and higher online search costs ADVENTURE TRAVEL: Fuel surcharges and impact of loss of high margin Antarctica/Tibet business CAMPING: Better mobile-home utilisation PGL margins expected to increase as a result of shift to larger centres/better off peak fill. Managing NST margins upwards. Superbreak margin expected to be stable due to cost cuts. Bookit raising hotel commission levels. Less cost pressure on fuel; currency costs largely hedged and priced in. Explore shift to pricing tours using all-in rates from ground handlers Further cost savings. Ability to sell in other markets at good yields. EVOLUTION OF GROUP MARGINS 2006/07 2006/07 12.2% -0.6 -1.7 -0.5 +0.5 2007/08 2007/08 9.9%

18. education, leisure and activity travel group education, leisure and activity travel group 18 STRATEGIC UPDATE (1) Business Resilience is good Education spending largely immune from consumer downturn. Very high visibility on bookings (78% sold for 2008/09). Hotel Breaks adept at creating and selling offers. Low operational gearing (no room commitments). Adventure Travel serves ‘niche’ markets. German business very strong. Low operational gearing. Camping seen as inexpensive family holiday. Multi-country distribution will help (good yields in NL, D even PL).

19. education, leisure and activity travel group education, leisure and activity travel group 19 Customers revert to strong, established brands in times of uncertainty – Holidaybreak is well placed in all its divisions Organic initiatives may take greater precedence - Tailormade Explore set-up - New Camping formats - Establish Education field sales force - New bungalowtrips.nl website Group is committed to prioritising investment in Education where growth continues -About half of total capital spend is in PGL -Further UK adventure centres -Niche school tour operators STRATEGIC UPDATE (2)

20. education, leisure and activity travel group education, leisure and activity travel group 20 Continued investment in IT -New reservation system in Superbreak and Education -Further web developments at Explore, West End and Easycamp Continue to develop our core competencies -Over £250k of business generated by West End Theatre Bookings to provide NST with school theatre bookings -Packaging in Superbreak now at 50% (vs. 30% two years ago) Diversify sales mix -Increase non-UK camping sales, including several new markets (Czech Republic, Hungary and Slovakia) -More third party sales at Explore STRATEGIC UPDATE (3)

21. education, leisure and activity travel group education, leisure and activity travel group 21 INITIATIVES TO MANAGE IN A DOWNTURN Reduction in FY dividend by 50% Clear cash KPIs for all senior directors Various working capital initiatives About 150 reduction in headcounts Acceleration of NST/PGL synergies Salary increases/bonuses for next year significantly curtailed Original camping plan reduced by 500 units (£7m) Education spend reduced by £4m. Spend focussed on adding bed stock Several revenue investment projects cancelled CASH MANAGEMENT COST CUTTING REDUCING CAPITAL INVESTMENT

22. education, leisure and activity travel group education, leisure and activity travel group 22 Leverage our multi-channel approach and turn currency changes to our advantage Focus on value for our customers Continue with organic initiatives and assess new opportunities as the competitive landscape shifts Manage financial resources carefully to increase cash generation Put Holidaybreak in the strongest possible position to capitalise on a recovery after 2009 PRIORITIES FOR 2008/09

23. education, leisure and activity travel group education, leisure and activity travel group 23 Resilient business model - Overall current trading at +1% for 2009 - Already 38% booked for next year Focus on cash generation - Ability to flex capital expenditure to market conditions Medium-term financing secure - Headroom sufficient to allow for adverse trading SUMMARY