NOVEMBER 2002 THE UK s LEADING OPERATOR OF SPECIALIST

NOVEMBER 2002 THE UK’s LEADING OPERATOR OF SPECIALIST HOLIDAY BUSINESSES 1

Holidaybreak plc OVERVIEW Ø One of only three quoted UK tour operators Ø Three operating divisions - Camping, Hotel Breaks and Adventure Holidays Ø 2001 turnover £ 192. 5 m - pre-tax profits £ 23. 8 m (£ 21. 6 m after goodwill amortisation and exceptional operating costs) Ø Consistent growth record - five years of growth in profits, eps and dividend Ø Aiming to grow organically and through further acquisitions Ø Acquired Eurosites from My. Travel plc on 30 th September 2002 Ø Further profits and dividend growth in 2002 2

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

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

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

UK Holiday Sector CONSUMER TRENDS Ø Consumers - more knowledgeable, more demanding, less brand loyal Ø Independent and tailor-made holidays increasingly favoured Ø Increase in multiple holiday taking and short breaks (domestic and overseas) Ø ‘Grey’ market increasing in importance Ø Other growth areas are long-haul and activity/ special interest Ø Late booking trends partly driven by bargain hunting and partly by lifestyle changes and more frequent travel 7

UK Holiday Sector INDUSTRY DEVELOPMENTS Ø 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. Ø Vertical integration strategy exposed by recent industry trends Ø Many specialist operators and independent agents continue to thrive Ø Low cost airlines (Easyjet, Ryanair, Go etc) have challenged existing industry model and changed consumer behaviour Ø Distribution channels fragmenting - internet, teletext, TV channels, Off the page 8

Holidaybreak plc POSITIONING AND STRATEGY Ø Quality market leading businesses in sectors with good growth potential Ø Avoid volatile, low margin, short-haul package holiday market Ø Organic growth combined with ‘bolt-on’ acquisitions to existing divisions and acquisition of travel businesses in new sectors Ø Characteristics of Group businesses provide an excellent platform for growth and acquisition template 9

Holidaybreak plc CAMPING DIVISION Ø Original and largest part of the Group - 54% of 2001 sales Ø Three market leading brands - Eurocamp and Keycamp - Acquisition of Eurosites (Sept 2002) Ø Pre-sited mobile-homes and tents on quality, third party owned camp-sites in France, Italy and seven other countries - flexible contracts Ø c. 50% of customers non-UK (mainly German and Dutch) 10

Holidaybreak plc CAMPING DIVISION Ø Courier and children’s activity service Ø Tailor made packages any day to any day Ø Self-drive holidays ferry inclusive from UK Ø Mainly direct sell but some retail agent sales. Internet increasingly important Ø Mid to upper income, family customer base 11

Holidaybreak plc HOTEL BREAKS Ø Acquired 1995 - 30% of 2001 sales Ø Superbreak and Hotel Breaks the main brands Ø Breaks in 1400 UK hotels (200 in London) Ø No commitment allocations Ø Price guarantee to customers Ø Rail inclusive and theatre breaks available 12

Holidaybreak plc HOTEL BREAKS Ø 60% of sales through UK travel agents - sector share 65% Ø Direct and internet sales growing fast (nearly 40%) Ø Two on-line internet booking sites Superbreak. com (UK and Eurobreaks) and Hotelnet. co. uk (worldwide) Ø Accommodation only European cities programme recently launched (450 hotels/40 cities) 13

Holidaybreak plc ADVENTURE Ø Explore Worldwide and Regal Diving acquired in 2000 - 16% of 2001 sales Ø Explore is the UK market leader in worldwide adventure travel and largest European operator Ø Small groups with own tour leader - 100 countries Ø Scheduled flights Ø Sells direct and through overseas GSAs 14

Holidaybreak plc ADVENTURE Ø Regal is the leading UK operator of scuba diving holidays Ø All levels catered for - Red Sea (Egypt - 80% of sales). Maldives, Caribbean, Far East growing fast Ø Charter flights to Red Sea, scheduled flights to other destinations Ø Sells direct and through specialist dive shops/centres 15

Holidaybreak plc COMMON CHARACTERISTICS Ø Market Leading businesses - Eurocamp, Keycamp, Superbreak, Explore Worldwide and Regal Ø Growth opportunities - in all divisions Ø Healthy margins - much higher than sector norm Ø Low fixed cost commitments - flexible business models Ø Strongly cash generative - especially Hotel Breaks and Adventure 16

Common Characteristics MARKET LEADERSHIP 17

Common Characteristics GROWTH PROSPECTS 18

Common Characteristics HEALTHY OPERATING MARGINS Ø Adventure margin in 2000 shows part year only, following acquisitions Ø Holidaybreak margins are well above industry norms and compare favourably with charter air package operators 19

Common Characteristics LOW FIXED COSTS 20

Common Characteristics CASH GENERATION 21

Holidaybreak plc FINANCIALS Ø 2001 ROCE 21. 7% (2000 : 20. 4%) Ø Pre-acquisition annual capex (mainly Camping) requirement (+ £ 15 m net) - depreciation + £ 12 m Ø 2001 interest cover 8. 6 times - will increase in 2002 Ø Net currency exposure limited Ø Strong operational cash flow but seasonal Ø Headroom within banking facilities for further acquisitions 22

Holidaybreak plc PRELIMINARY RESULTS 2001 PROFIT & LOSS ACCOUNT All stated before exceptional operating costs and goodwill amortisation 23

Holidaybreak plc HALF-YEAR RESULTS Ø £ 5. 9 m loss* entirely normal (2001 : £ 6. 7 m*) *Before tax and goodwill amortisation Ø Hotel breaks substantial growth at the top line margin improvement Ø Adventure pleasing sales performance following post September 11 th disruption - reduced margins due to load 24

Holidaybreak Performance & Prospects 2002 TRADING UPDATE - 04/09/02 Ø Camping sales 6% up Ø Hotel Breaks over 30% up, margins improved Ø Adventure sales 3% up, but margins have suffered Ø Confident that ‘upper end of market expectations’ will be met Ø Preliminary Results announcement December 5 th 2002 Ø Generally positive outlook for 2003 although some caution due to political and economic uncertainties 25

Holidaybreak Performance & Prospects OUTLOOK FOR 2003 - 30/09/02 Ø Holidaybreak businesses and sector in which they operate have generally proved resilient in the past Ø Camping sales currently level with 2002 - early in booking cycle Ø Hotel Breaks sales 35% ahead - UK consumer demand still healthy Ø Adventure sales up 9% - Middle East situation causing some concern Ø Strong first half anticipated 26

Acquisition of Eurosites TRANSACTION DETAILS Ø Eurosites brand plus Dutch, German and Danish sales agencies Ø 2, 770 mobile-homes (av age: 3. 6 years) and 1, 399 tents plus equipment (H/break: 7, 372 mobiles and 6, 698 tents) Ø Eurosites in 2002: - Sales £ 27. 1 m and estimated operating profits of £ 3. 7 m - 35, 000 bookings (c. 150, 000 pax) - Used 86 camp-sites in France, Italy, Spain, Germany, Holland Luxembourg of which 54 were also used by Eurocamp and/or Keycamp Ø Distribution agreement with My. Travel UK retail (Going Places/Travelworld) Ø Database of 150, 000 customers and c. 1 m enquirers 27

Acquisition of Eurosites BENEFITS (1) Ø Relatively new mobile-home fleet Ø Holidaybreak now the only serious player in tent holidays Ø Ability to manage sector capacity levels to ensure healthy occupancy at sensible prices Ø Access to pitches Ø Cost efficiencies - elimination of duplicated costs/ economies of scale 28

Acquisition of Eurosites BENEFITS (2) Ø Purchasing benefits - transport operators, campsites, manufacturers etc Ø Enhanced UK retail distribution Ø Eurosites the only substantial direct competitor in Germany and Denmark Ø Office in Copenhagen will be retained and used for all Holidaybreak brands 29

Acquisition of Eurosites STRATEGY AND INTEGRATION Ø Operate Eurosites as stand alone business for summer 2003 Ø Immediately combine overseas operation Ø Transfer UK business operation from Accrington to Northwich at end of 2002 Ø Similar transfers in Germany and Holland (but keep office in Denmark) Ø Various options for 2004 - continue with current positioning - reposition Eurosites brand - consolidate into Eurocamp and Keycamp - combination of the above 30

Holidaybreak plc SUMMARY Ø Quality market leading businesses in attractive sectors with good prospects for growth and also good defensive qualities Ø Consistent record of earnings and dividend growth strongly cash generative Ø Further profits growth in 2002 expected Ø Holidaybreak well placed to benefit from current holiday sector trends - very strong cash generation a key characteristic of the business Ø Recent acquisition of Eurosites is significantly earnings enhancing Ø We view the future with confidence 31