Overview Holidaybreak is the UK’s leading operator of specialist holiday businesses, all with high standards of service and product quality and market leading positions in the UK and other major European markets. In 2004 the Group provided 2.3m holidays in over 100 countries worldwide.

The business generates substantial cash, delivers double-digit margins and has proven resilient in the face of changing market conditions. The Group has the financial strength to respond to changing market trends and exploit opportunities for both organic and acquisition based growth whilst paying an attractive dividend.

Key Management

Carl Michel, Chief Executive (42)Was Appointed Chief Executive in September 2005. He previously held senior positions at companies including McKinsey, British Airways, Energis and Opodo.

Bob Baddeley, FCA Finance Director (51)Joined the Company in March 1995. He has held senior financial positions at Albert Fisher, Swan Steel and Unigate (now Uniq).

Bob Ayling, Chairman (58)Was appointed a Non-executive Director in February 2003 and became Chairman in June 2003. Previously CEO of British Airways.

Strategy

Stock Data as at 26/07/05

Listing LSETicker HBR.LSector Leisure, FTSE Small capMarket Cap £291.04m Share price 608pShares in issue 47.87m52 Week High / Low 693p / 465 p

History1973: Eurocamp Travel founded1988: Management Buy Out1991: Eurocamp floated on the LSE 1995: Acquisition of Superbreak1998: Acquisition of Keycamp1998: Holding company renamed Holidaybreak2000: Acquisition of Explore2004: Acquisition of Dutch on-line leisure business BRC 2005: Acquisition of Dutch adventure business Djoser

Holidaybreak’s businesses are actively managed to maximise yields, generate cash and to optimise distribution, increasingly through the internet which accounts for approximately 30% of sales and is continuing to grow strongly.

We intend to grow our portfolio of brands organically, by investment in growing areas of the current business and by acquisition, particularly in the Hotel Breaks and Adventure divisions which operate in growth sectors. The Camping division is a profitable business with well respected brands and loyal customers. It will be managed carefully going forward with a strong focus on capacity utilisation and margin.

Major Shareholders

Holidaybreak plcHartford Manor, Greenbank LaneNorthwich Cheshire, CW8 1HWTel: +44 (0) 1606 787100Email: group@holidaybreak.co.ukWebsite: www.holidaybreak.co.uk

Craig Breheny / Ash SpiegelbergBrunswick Group

16 Lincoln’s Inn FieldsLondon WC2A 3ED

Tel: +44 (0) 20 7404 5959holidaybreak@brunswickgroup.com

CORPORATE OVERVIEW SEPTEMBER 2005

Contacts

  

Financial Summary 

* Before goodwill and exceptional costs ** Before acquisition borrowings

 

c.10.9%Fidelity International

c.16.3%c. 15.9

Aberforth Partners

Aberforth Smaller Companies

Sales, £m 

281.6 259.5 218.7

PBT, £m* 

28.0 27.9 27.1

Net Debt reduction, £m** 

10.8 9.0 21.8

EPS, p 

44.0 44.4 42.5

DPS, p 

24.2  22.0 20.0

2004 2003 2002

30 September 2005Financial year end

September 2005Trading Update

1 December 2005Prelims

February 2006AGM

DateFinancial Calendar

Hotel BreaksThe Hotel Breaks division’s core business specialises in UK and overseas leisure breaks. It is the principal provider of domestic short breaks to UK travel agents and has also been rapidly developing direct and internet distribution. The division continues to introduce new products and distribution channels to build on an outstanding record of success in recent years.

• 2004 Turnover: £120.9m

• 1.7m holidays sold in year to 30/9/04

• Strong relationship with 3000+ hotels, 250+ hotel suppliers

• Flexible cost base – no commitment to hotel room allocations

• Fixed selling margin

• Strongly cash generative – negative working capital

• Operates in a growth sector• Acquired Dutch market leader in on-line leisure breaks Bookit (BRC) for £23.1m on 22 December, 2004

Adventure HolidaysThree businesses, Explore (UK), Djoser (Netherlands) and Regal Dive; market leaders in ‘soft’ adventure and scuba diving holidays. Explore, offers a range of cycling, walking and trekking, adventure short breaks and family adventures as well as the core worldwide, escorted tours programme. Explore adds genuine value to the customer experience, creating holidays which would be difficult or impossible for the DIY customer to replicate.

• 2004 Turnover: £37.4m

• 41,800 holidays sold in year to 30/9/04

• Increasing demand for active, special interest and unusual holidays

• Over 400 different tours to 107 countries

• Tight control of tour load factors underpins profitability

• Flexible cost base – Low commitment to flight seats

• Acquired Dutch market leader Djoser for £15.7m on 19 January, 2005

 

CORPORATE OVERVIEW September 2005

CampingThe original part of the Holidaybreak group. Provides pre-sited mobile-home and canvas holidays on high grade, third party owned campsites throughout Europe. Customers are mainly families who book direct, attracted by good quality self- catering accommodation in desirable locations, with excellent leisure amenities. Flexibility, informality, independence and added value services all add to the appeal.

• 2004 Turnover: £123.2m

• 570,000 holidays sold in year to 30/09/04

• Market leading brands – Eurocamp and Keycamp

• Customers from nine different countries, mainly UK, Holland and Germany

• 9,700 mobile-homes and 4,500 tents on 212 campsites in France, Italy and seven other countries• High levels of customer satisfaction and repeats