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THE UK’s LEADING OPERATOR OF SPECIALIST HOLIDAY

BUSINESSES

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VEM

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02

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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

Acquired Eurosites from MyTravel plc on 30th September 2002

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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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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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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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

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)

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, Keycamp and Eurositescombined share c. 75% in the fullfacility, pre-sited sector in all the mainmarkets and are recognised as theleading brands in pre-sited campingand mobile-home holidays

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%)

Pre-acquisition annual capex (mainly Camping)

requirement (+ £15m net) - depreciation + £12m

2001 interest cover 8.6 times - will increase in 2002

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 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

Generally positive outlook for 2003 although some

caution due to political and economic uncertainties

Holidaybreak Performance & Prospects2002 TRADING UPDATE - 04/09/02

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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

Holidaybreak Performance & ProspectsOUTLOOK FOR 2003 - 30/09/02

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Eurosites brand plus 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

Acquisition of EurositesTRANSACTION DETAILS

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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

Acquisition of EurositesBENEFITS (1)

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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

Acquisition of EurositesBENEFITS (2)

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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

Acquisition of EurositesSTRATEGY AND INTEGRATION

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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

Recent acquisition of Eurosites is significantly earnings

enhancing

We view the future with confidence

Holidaybreak plcSUMMARY