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PRELIMINARY RESULTS 2003

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• Results overview

• Financial review

• Divisions - performance, prospects and strategy

• Group strategy and prospects

Holidaybreak plcPRELIMINARY RESULTS 2003

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• Robust performance - well placed for

opportunities ahead

• Turnover : £259.5m

• Headline Profit Before Tax : £27.9m (+3.1%)

• Headline EPS : 44.5p (+4.4%)

• Dividend : 22p (+10%)

• Generated £9m net cash

Preliminary Results 2003CHAIRMAN’S STATEMENT (1)

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2003 in RetrospectTERRORIST ACTIVITY

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2003 in RetrospectIRAQ WAR

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2003 in RetrospectSARS

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2003 in Retrospect FINANCIAL MARKET WEAKNESSES

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2003 in Retrospect LONG HOT SUMMER

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• Divisional performance :

- Camping recovered strongly from weak early markets

- Another outstanding year for Hotel Breaks

- Adventure again held back by geopolitical events

• Encouraging start to 2004 from Hotel Breaks and

Adventure

• Well placed to meet challenges - longer term

prospects excellent

Preliminary Results 2003CHAIRMAN’S STATEMENT (2)

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Preliminary Results 2003PROFIT & LOSS ACCOUNT

2003 2002

Group Group

£m £mTurnover 259.5 218.7 +18.6%Gross Profit 69.7 62.6 +11.3%Operating Profit 31.8 29.2 +8.9%Profit before Tax 27.9 27.1 +3.1%Earnings per Share 44.4p 42.5p +4.5%Dividend per Share 22.0p 20.0p +10.0%

All stated before goodwill and exceptional costs

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Preliminary Results 2003 DIVISIONAL RESULTS

Camping Hotel-Breaks Adventure Group£m £m £m £m

Turnover 2003 128.4 97.8 33.3 259.5v 2002 +17.6% +27.1% +2.1% +18.6%

Gross Profit 2003 40.7 19.8 9.2 69.7v 2002 +5.2% +27.7% +9.5% +11.3%

PBIT 2003 18.9 11.0 1.9 31.8v 2002 (0.6%) +41.1% (20.8%) +8.9%

All stated before goodwill and exceptional costs

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Preliminary Results 2003 EXCEPTIONAL COSTS

• Reorganisation costs relating to Eurositesacquisition £2.7m

- Assets written-off £0.7m

- Rebranding and resiting mobile-homes £0.6m

- Redundancies £0.6m

• Advisers fees relating to aborted acquisitions £0.4m

• Write-down of fixed asset investments £0.6m

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Preliminary Results 2003 BALANCE SHEET (1)

2003 2002

£m £mFixed Assets/Investments 75.1 75.2Goodwill 44.2 45.4Net Current Liabilities (53.0) (48.7)Deferred Tax (4.6) (6.0)Net Debt (23.4) (32.4)Net Assets 38.3 33.5

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Preliminary Results 2003 BALANCE SHEET (2)

• Fixed Asset Investments written down by £0.6m

• Prior year adjustment re goodwill previously

written-off

- reduces net assets at 1 October 2001 by £3.6m

• Net debt reduced to £23.4m

- gearing 61.3% (2002 : 96.7%)

• Goodwill on Bridge acquisition impaired

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Preliminary Results 2003 CAPITAL EXPENDITURE & DISPOSALS (1)

£m Mobile- Camping Other Totalhomes Equipment Assets

Opening NBV 54.9 9.0 8.1 72.0Additions 16.1 3.8 1.6 21.5Disposals (5.0) (0.7) (0.2) (5.9)Depreciation (9.0) (5.1) (1.5) (15.6)Closing NBV 57.0 7.0 8.0 72.0

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• Total capex 40% higher than 2002

• Net spend on mobile-homes £11.1m

- increase capacity by 5.5%

- replacement expenditure £10.5m

• Mobiles continue to achieve

book value on disposal

- disposal proceeds £4.3m

Preliminary Results 2003 CAPITAL EXPENDITURE & DISPOSALS (2)

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Preliminary Results 2003 MOVEMENT IN NET DEBT

2003 2002£m £m

Operating Cash Flow 47.4 54.0Acquisitions (2.3) (31.0)Capital Expenditure (Net) (17.1) (13.3)Interest (3.7) (2.2)Tax (6.0) (7.0)Dividends (9.4) (8.5)Loans repaid/Shares issued 0.1 0.7Reduction (Increase) in net debt 9.0 (7.3)

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• Net debt reduced by £9.0m

• Capex largely financed through new HP (57%)

• Capex requirement 2004 & beyond

• Interest cover 6.5 times (2002 : 12.3)

• Currency and interest hedges in place

• Headroom in bank facilities

Preliminary Results 2003 CASH FLOW

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Holidaybreak plcBUSINESS STRENGTHS

• Market leaders

• Service and Product Quality

• Multi-channel distribution

• Healthy margins - well above travel industry norms

• Flexible cost structures and products

• Strong cash generation

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• All divisions will generate organic growth

• Exploit and adapt to key consumer and supply side trends

• Active product and distribution development programmes

• Small ‘bolt-on’ acquisitions to act as a catalyst and open up new opportunities

• Larger scale ‘fourth leg’ acquisition also a possibility

- at right value- not mainstream package tour operating

Holidaybreak plcGROUP STRATEGY

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• Weak early market, slow start - strong recovery after end of Iraq war

• Like for like sales (including Eurosites) 6% down year on year (capacity : -4%)

• Exceptional summer

- may have deterred some late bookings

- high customer satisfaction levels

• Eurosites integration went smoothly

- £1.6m synergies exceeded expectations

- year on year bookings performance weaker than Eurocamp and Keycamp

Camping2003 PERFORMANCE

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• Mainstream market summer 2004 bookings up to 30% down

• Eurosites now integrated into Eurocamp and Keycamp

• Capacity : -8% planned

• Sales to date : -20% like for like

• New Year bookings expected to be much stronger than equivalent ‘war build up’ period in 2003

CampingTRADING AND PROSPECTS

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• Current MD Jim Crew will retire in the New Year once successor appointed

• Recruitment process already well advanced

• Key appointment

- Core business of the Group and biggest profits generator

- Will also sit on plc Board

CampingMANAGEMENT

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• Sector resilient with high levels of customer loyalty to both brands and holiday type

• Holidays must be attractive and good value - aim to deliver consistently high quality product and service standards

• Growth drivers :

- Trends from lower priced, lower margin tents to higher priced, higher margin mobile-homes plus upgrades within mobile-home range

- Increased penetration of ‘mainstream’ self-catering markets

- Greater capacity and support for premium Eurocamp and Keycamp brands

- Easycamp : 2003 launch of ‘no frills’ product in Holland/Germany

CampingSTRATEGY

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• Favourable market conditions - demand and supply sides

• Growth through all main distribution channels - high street agents (50%), internet (25%) and direct (20%)

• Acquisitions of Bridge Britain and London Travel Service from MyTravel in March 2003

• European Cities 190% year on year - now 9% of total sales

Hotel Breaks2003 PERFORMANCE

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Hotel BreaksTRADING AND PROSPECTS

• 2004 sales 37% up year on year

• Internet still growing strongly

• Continuing benefits of Bridge acquisition

• Official accommodation provider

(web and telephone) for Visit London

campaign (ex-LTB)

• European Beach Breaks programme

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• Favourable consumer trends

• Simple business model - resilient, cash generative and very flexible cost base

• Multi-channel distribution - internet a major growth driver but high street agents still a key element in distribution mix

• Constant search for new distribution opportunities and product extensions - further small bolt-on acquisitions possible

Hotel BreaksSTRATEGY

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• Good first quarter but trading deteriorated rapidly as Iraq war approached

• SARS, terrorist incidents (Bali, Morocco) and threats (East Africa) and regional conflicts (India/Pakistan, Nepal) also had a negative impact

• Regions not directly affected performed well e.g. South America, Europe and South Africa

• Load factors and gross margins maintained

Adventure2003 PERFORMANCE

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• 2004 sales 8% up year on year

• Sales rebound in regions negatively affected in 2003 e.g. India, Thailand, Egypt (important forRegalDive)

• Progress in various areas

- New products (Adventure Breaks, Family, Cycle, Rail)- Brand strategy refocused

- Internal systems and organisation

• Cautiously optimistic

AdventureTRADING AND PROSPECTS

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AdventureSTRATEGY

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Strategy - Travel Industry TrendsKEY STRUCTURAL INFLUENCES

TRAVELRigid,

vertically integrated

tour operating

model under threat

Distribution Fragmenting

Later

Bookings

Consumer holiday trends- shorter more frequent- more independent/tailor made/flexible- holidays with purpose

InternetLow cost airlines

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Environmental ChangesIMPACT ON HOLIDAYBREAK

impact on Adventure

Complements existing distribution channels for specialist holiday businesses. Key growth driver for hotel breaks

Low-costAirlines

Positive for Camping and Hotel Breaks. No

DistributionFragmenting

All Holidaybreak businesses use multi-channel distribution - not over reliant on high street agents

Internet

Later Bookings Camping still an early booking business (40%pre-Christmas) - family market still has to plan

Consumer TrendsHolidaybreak businesses give consumerschoice, flexibility and alternatives to standardpackages

VerticalIntegration

Holidaybreak businesses not verticallyintegrated

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ProspectsKEY CURRENT ISSUES AND EVENTS

TRAVEL

Strengthening Euro

Weakening Dollar

Exceptional UKsummer weather

Geopolitical

Uncertainty

ConsumerConfidence

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ProspectsCURRENT ISSUES AND EVENTS

Consumer Confidence

Geopolitical Uncertainty

Euro still ‘mid-range’ in historical terms.Natural hedge for Camping due to Eurorevenues. Weak dollar positive forAdventure.

Strengthening Euro Weakening Dollar

Camping and Hotel Breaks relatively ‘safe’holiday choices. Adventure has exposurebut many alternative destinations.

Exceptional UKSummer Weather

Still strong in UK. Weaker in main Europeanmarkets for Camping

Should benefit Camping and Hotel Breaksin 2004.

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• Strong cash generative businesses

- Resilient performance in 2003

- Well placed to benefit from holiday sector brands

• Strategy of seeking steady organic growth supplemented by appropriate acquisitions at right value (debt capacity available)

• Record shows 10-15% EPS and dividend growth. This remains our aspiration

• Encouraging start to 2004 by Hotel Breaks and Adventure. Post New Year bookings a key indicator for Camping

Preliminary Results 2003 OVERVIEW AND SUMMARY