Corporate Presentation

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SEPTEMBER 2002
THE UKs LEADING OPERATOR OF SPECIALIST HOLIDAY
BUSINESSES
30 September 2002
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Holidaybreak plcOVERVIEW

• 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
• Recently acquired Eurosites from MyTravel plc
• Further profits and dividend growth in 2002

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Holidaybreak plcCOMPANY STRUCTURE
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Holidaybreak plcOUR RECORD (1)
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Holidaybreak plcOUR RECORD (2)
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Holidaybreak plcTOPICS COVERED

• UK travel industry overview
• Our businesses
• Common characteristics of Group companies
• Financial information
• Current trading and prospects

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UK Holiday SectorCONSUMER TRENDS

• 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

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UK Holiday SectorINDUSTRY DEVELOPMENTS

• Four major players in UK Thomson (TUI/Preussag),
  My Travel (Airtours), Thomas Cook (CN) 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

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Holidaybreak plcPOSITIONING AND STRATEGY

• 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

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Holidaybreak plc CAMPING DIVISION

• Original and largest part of the Group - 54 of
  2001 sales
• Three market leading brands
• - Eurocamp and Keycamp
• - Acquisition of Eurosites (Sept 2002)
• 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)

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Holidaybreak plc CAMPING DIVISION

• Courier and childrens 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

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Holidaybreak plc HOTEL BREAKS

• 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

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Holidaybreak plc HOTEL BREAKS

• 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)

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Holidaybreak plc ADVENTURE

• 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

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Holidaybreak plc ADVENTURE

• 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

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Holidaybreak plcCOMMON CHARACTERISTICS

• 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

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Common CharacteristicsMARKET LEADERSHIP
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Common CharacteristicsGROWTH PROSPECTS
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Common CharacteristicsHEALTHY 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

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Common CharacteristicsLOW FIXED COSTS
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Common CharacteristicsCASH GENERATION
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Holidaybreak plcFINANCIALS

• 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

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Holidaybreak plc2001 PROFIT LOSS ACCOUNT
PRELIMINARY RESULTS
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Holidaybreak plcHALF-YEAR RESULTS

• 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

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Holidaybreak Performance ProspectsSEPTEMBER
2002 TRADING UPDATE

• Camping sales 6 up
• Hotel Breaks over 30 up, margins improved
• Adventure sales 3 up, but margins have suffered
• Confident that upper end of market expectations
  will be met
• Preliminary Results announcement December 5th 2002

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Holidaybreak Performance ProspectsOUTLOOK FOR
2003

• Generally positive outlook although some caution
  due to political and economic uncertainties
• Holidaybreak businesses and sector in which they
  operate have generally proved resilient in the
  past
• Camping sales currently level with 2002 - early
  in booking cycle
• Hotel Breaks sales 35 ahead - UK consumer demand
  still healthy
• Adventure sales up 9 - Middle East situation
  causing some concern
• Strong first half anticipated

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Acquisition of EurositesTRANSACTION DETAILS

• Eurosites brand
• Dutch, German and Danish sales agencies
• 2,770 mobile-homes (av age 3.6 years) and 1,399
  tents plus equipment (H/break 7,372 mobiles and
  6,698 tents)
• Eurosites in 2002
• - Sales 27.1m and estimated operating profits
  of 3.7m
• - 35,000 bookings (c.150,000 pax)
• - Used 86 camp-sites in France, Italy, Spain,
  Germany, Holland and Luxembourg of which 54
  were also used by Eurocamp and/or Keycamp
• Distribution agreement with MyTravel UK retail
  (Going Places/Travelworld)
• Database of 150,000 customers and c. 1m enquirers

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Acquisition of EurositesBENEFITS (1)

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

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Acquisition of EurositesBENEFITS (2)

• Purchasing benefits - transport operators,
  camp-sites, manufacturers etc
• Enhanced UK retail distribution
• Eurosites the only substantial direct competitor
  in Germany and Denmark
• Office in Copenhagen will be retained and used
  for all Holidaybreak brands

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Acquisition of EurositesSTRATEGY AND INTEGRATION

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

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Holidaybreak plcSUMMARY

• 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
• Recent acquisition of Eurosites is significantly
  earnings enhancing
• We view the future with confidence