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THE UK’s LEADING OPERATOR OF SPECIALIST HOLIDAY

BUSINESSES

August 2002

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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 plcOVERVIEW

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Holidaybreak plcOUR RECORD (1)

Turnover Profit Before Tax*£m £m

106.4 113.5

142.4164.5

192.5

80.0

100.0

120.0

140.0

160.0

180.0

200.0

1997* 1998 1999 2000 2001

11.214.0

17.3

20.723.8

5.0

10.0

15.0

20.0

25.0

1997** 1998 1999 2000 2001

*12 months pro-forma* Before goodwill amortisation

and exceptional operating costs

COMPOUND GROWTH17%

COMPOUND GROWTH15%

**12 months pro-forma

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Holidaybreak plcOUR RECORD (2)

Earnings per Share* DividendPence Pence

21.626.8 29.3

34.038.1

10.0

15.0

20.0

25.0

30.0

35.0

40.0

1997** 1998 1999 2000 2001

11.5 12.514.0

16.018.0

5.0

10.0

15.0

20.0

1997 1998 1999 2000 2001

**12 months pro-forma* Before goodwill amortisation and exceptional operating costs

COMPOUND GROWTH12% COMPOUND GROWTH

12.5%

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UK travel industry overview

Our businesses

Common characteristics of Group companies

Financial information

Current trading and prospects

Holidaybreak plcTOPICS COVERED

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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 SectorINDUSTRY DEVELOPMENTS

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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 SectorCONSUMER TRENDS

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UK

HO

LID

AY

MA

RK

ET

100

120

140

160

180

200

220

240

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001(est)

Gro

wth

Ind

ex

Overseas Short Breaks All Overseas Holidays

(Short breaks = 1-3 nights) Source: Mintel (2002)

Overseas Holidays 2001Short Breaks (m) 5.0Long Holidays (m) 32.8Total (m) 37.8Value (£bn) 16.9

Holidaybreak plcGROWTH IN OVERSEAS

Holidaybreak plcGROWTH IN OVERSEAS HOLIDAYS, 1991-2001

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Holidaybreak plcGROWTH IN DOMESTIC HOLIDAYS, 1991-2001

UK

HO

LID

AY

MA

RK

ET

80

90

100

110

120

130

140

150

160

170

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001(est)

Gro

wth

In

dex

Short Breaks Long Holidays Total Holidays

Source: Mintel (2002)(Short breaks = 1-3 nights)

Domestic Holidays 2001Short Breaks (m) 36.5Long Holidays (m) 26.5Total (m) 63.0Value (£bn) 9.5

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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 plcPOSITIONING AND STRATEGY

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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

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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

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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

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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 (UKand Eurobreaks) and Hotelnet.co.uk (worldwide)

Accommodation only European cities programme recently launched (450 hotels/40 cities)

Holidaybreak plc HOTEL BREAKS

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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

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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

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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 plcCOMMON CHARACTERISTICS

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CAMPING Eurocamp and Keycamp combinedshare c. 60% in the serviced, pre-sitedsector in all the main markets and arerecognised as the leading brands in pre-sited camping and mobile-homeholidays

HOTEL BREAKS Superbreak and its subsidiary brandscurrently account for over 65% of hotelbreaks booked through UK travelagents

ADVENTURE Explore Worldwide has an estimatedUK market share of 40% and is also thelargest European operator ofAdventure holidays.Regal Holidays has an estimated 25%of the UK scuba diving market

Common CharacteristicsMARKET LEADERSHIP

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CAMPING Profitable mobile-homes growing andreplacing lower margin tentsWider UK self-catering marketVolume potential in overseas markets,especially Germany

HOTEL BREAKS Short breaks a growth sectorDirect sales/internet/HotelnetNew European breaks programmeInbound

ADVENTURE Sector growing stronglyProduct development opportunitiesConsolidation in fragmented sectorOverseas markets

Common CharacteristicsGROWTH PROSPECTS

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2001 2000

CAMPING 17.2% 16.6%

HOTEL BREAKS 9.5% 9.5%

ADVENTURE 10.9% 14.1%

GROUP 12.7% 13.4%

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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CAMPING No commitments to travel costsNo site ownershipFlexible camp-site contracts allow flexing of capacityto match demand and ensure healthy load factors

HOTEL BREAKS No commitments to hotel rooms (sale or returnallocations)Consistent gross margin (30%)No commitments to travel costsTravel agency commissions (av. 14.5%) linked to sales

ADVENTURE Scheduled air seats – no commitments (except Regal)Overseas operational costs almost all variableTours only run if target load factors achievedTours added if demand warrants

Common CharacteristicsLOW FIXED COSTS

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CAMPING Substantial but flexible capexrewarded by rapid payback

HOTEL BREAKSAND

ADVENTURE

IT and office capex onlyNegative working capitalYear round positive cash flowStrong cash generation

Common CharacteristicsCASH GENERATION

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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 plcFINANCIALS

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Holidaybreak plc2001 PROFIT & LOSS ACCOUNT

Camping Hotel-Breaks Adventure Group£'000 £'000 £'000 £'000

Turnover 2001 103,691 57,768 31,030 192,4892000 102,357 46,054 16,107 164,518

Gross Profit 2001 35,773 10,966 9,265 56,0042000 34,703 8,742 4,863 48,308

PBIT 2001 17,833 5,466 3,375 26,6742000 17,001 4,390 2,276 23,667

All stated before exceptional operating costs and goodwill amortisationPR

ELIM

INA

RY

RES

ULTS

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£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 plcHALF-YEAR RESULTS

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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 plcINTERIMS - TRADING AND PROSPECTS

(As at 7th May 2002)

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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 plcSUMMARY