Preliminary Results Preliminary Results 20072007

29 November 200729 November 2007

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Holidaybreak plcAgenda

Bob Ayling (Chairman)Bob Ayling (Chairman)

Bob Baddeley (Group Finance Director)Bob Baddeley (Group Finance Director)

Carl Michel (Group Chief Executive) Carl Michel (Group Chief Executive)

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Holidaybreak plcHighlights

Good performance Dividend per share +10% Transformational year with new 4th trading division Sales mix of group is now:

Hotel Breaks (34%); Adventure Travel (21%); Camping (24%); and Education (21%)*

Mix will continue to evolve Focus on delivering long-term, sustainable value Current trading in line with expectations

* Based on last full year audited results at PGL and NST

Preliminary ResultsPreliminary Results

for the year for the year ended 30 September 2007ended 30 September 2007

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FINANCE DIRECTOR’S REVIEW

BOB BADDELEYBOB BADDELEY

Holidaybreak plcPreliminary Results 2007

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Preliminary Results 2007Financial Highlights

*Stated before amortisation of intangible assets acquired via business combinations of £2.5m (2006: £1.0m).

Profit before tax* +21% to £40.0m (2006: £33.1m)

Headline EPS* +21%

Dividend +10%

£138.6m net investment on acquisitions

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2007 2006£m £m

Revenue 357.9 304.5 +17.5%Operating Profit * 43.8 35.3 +24.1%Profit before Tax * 40.0 33.1 +20.8%Earnings per Share * 59.4p 49.0p +21.2%Dividend per Share 32.1p 29.2p +10.0%Dividend cover * 1.9x 1.7x -

Preliminary Results 2007Income Statement

*Stated before amortisation of intangible assets acquired via business combinations of £2.5m (2006: £1.0m).

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Preliminary Results 2007Divisional Results

Hotel Breaks Adventure Camping Education Group

Travel

£m £m £m £m £m

Revenue 2007 139.0 90.0 102.8 26.1 357.9

v 2006 +13.3% +18.0% -2.6% n/a +17.5%

EBIT* 2007 17.0 6.6 11.7 8.5 43.8

v 2006 +1.0% +11.9% -6.3% n/a +24.1%

*Stated before amortisation of intangible assets acquired via business combinations of £2.5m (2006: £1.0m).

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Preliminary Results 2007Operating Margins*

2007 2006% %

Hotel Breaks 12.2 13.8

Adventure Travel 7.3 7.7

Camping 11.4 11.8

Education 32.6 n/a

Group 12.2 11.6

*Stated before amortisation of intangible assets acquired via business combinations of £2.5m (2006: £1.0m).

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Preliminary Results 2007Impact of Acquisitions

£mRevenue: PGL 26.1

WETB 7.633.7

EBIT*: PGL 8.5WETB 0.4

8.9

• Period from date of acquisition to 30 September 2007• NST acquired on 30 September 2007

*Stated before amortisation of intangible assets acquired via business combinations of £0.8m.

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Preliminary Results 2007Cash Flow

Net debt increased by £143.4m, following acquisitions of:- PGL £ 97.6m- NST £ 38.9m- WETB £ 2.1m- Net of cash acquired

Interest cover (pre-amortisation) 11.5 X (2006: 16.0 X)

Average interest rate on loans 5.3% inclusive of margin- Currently 6.89% (£) and 5.04% (€)- Capped at 7.3% (£) and 5.3% (€), including margin

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Preliminary Results 2007Cash Flow

2007 2006£m £m

EBITDA 56.3 47.1Working capital movement (19.5) 1.7Operating cash flow 36.8 48.8Capital expenditure (net) (12.9) (4.6)Tax (9.0) (7.6)Interest (2.2) (1.5)Free cash flow 12.7 35.1Loans and share issues 50.5 (10.5)Acquisitions & intangibles (43.2) (4.3)Dividends (14.5) (13.1)Increase in cash 5.5 7.2

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2007 2006£m £m

Intangibles 172.7 73.0Property Plant & Equipment 168.6 53.4Net current liabilities (118.4) (58.5)Cash and cash equivalents 58.8 53.3Short-term borrowings (194.5) (49.8)Long-term borrowings (10.8) (6.6)Deferred tax (37.0) (5.7)Net Assets 73.7 59.1

Preliminary Results 2007Balance Sheet (1)

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Preliminary Results 2007Balance Sheet (2)

Acquired intangibles £23.9m (2006: £2.1m)

- Annual amortisation £2.5m

Bank facilities £255.0m

- Adequate headroom even at peak utilisation period

Deferred tax on acquisitions £31.6m- Corresponding increase in goodwill

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Preliminary Results 2007Capital Expenditure & Disposals

2007 capex (net of disposals) of £12.9m (2006: £4.6m)

2008 Camping capex to be at historic levels – c.1,000 mobile-homes to be replaced

- anticipated net spend £10.0m

2008 Group capex increase to c.£19.0m

- incl. £4.0m on IT

- incl. £3.0m on maintenance capex in Education Division

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Preliminary Results 2007Financial Summary

Margins well above travel industry norms

All divisions cash generative

- But capex to be higher in 2008

Healthy return on invested capital- ROACE 21%

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Holidaybreak plcPreliminary Results 2007

CEO REVIEW

CARL MICHELCARL MICHEL

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Preliminary Results 2007Strategic Developments

PGL/NST fits with the strategic framework announced last year

Healthy pipeline of other deal opportunities in Europe and UK- Product extensions

- New sales areas

Organic growth opportunities in each division All areas looking to increase ‘value added’ – to add to

differentiation and defensibility

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Strategic FrameworkProgress this year

BUILD ON CORE COMPETENCES - West End Theatre Bookings leverages Superbreak’s London strength and

enhances our ability to ‘bundle’

DEVELOP A MULTIPATH APPROACH - Able to make two key acquisitions - Organic development – Own a Holiday Home

PURSUE SUSTAINABLE FASTER GROWTH- Both carpe diem/TravelWorks and PGL have grown at over 10% with margins above industry norms- New division has raised the average growth rate of the Group

DIVERSIFY SALES MIX- While sales remain focused on the UK, the Education Division is less influenced by consumer spending shifts. Parents view trips as non-discretionary spending

….Preliminary Results 2007Corporate Activity

Continuing to review a number of opportunities

In last 15 months, acquired 8 businesses for a total investment of c.£145m

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Preliminary Results 2007HOTEL BREAKSHOTEL BREAKS

EBITA of £17.0m (+1.0%) on sales of £139m (+13.3%). Margins were held back by investment in web/IT

Acquisition of West End Theatre Bookings at the end of January – increased scale allows us to buy out some entire West End theatre performances

Growth in ‘bundled’ sales from 30% to over 40% - substantially higher transaction values

Overseas hotels – have reached our target of 5,000 hotels and substantially increased our presence outside of Europe and in secondary destinations

Progress on all websites – with user-generated content, really simple syndication, Google Local, video-streaming

Target audience remains couples aged 40-70 Bookit has done well with hotelletje.nl – its small hotels website – now

accounting for over 15% of their turnover

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ADVENTURE TRAVEL

EBITA of £6.6m (+11.9%) on sales up 18.0% at £90.0m Launch of new specialist Explore brochures – Archaeology and

Eclipse/Astronomy – seeking to capitalize on trend to more niche ‘value added’ interests

Families product continues to grow strongly in both UK (12% of sales) and Holland (18% of sales)

New Explore website launched with more of a community feel – weblogs, podcasts, destination information

Americas and Asia performed well, Middle East/Egypt down around 20% but decline ended in late summer

carpe diem and TravelWorks (German businesses acquired in September 2006) performing ahead of expectations, with particularly good growth in work experience and high school exchange programmes

Preliminary Results 2007ADVENTURE TRAVEL

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CAMPING

EBITA of £11.7m (-6.3%) on sales of £102.8m (-2.6%) Capacity down 4% (mobile-homes –2%, tents –12%) Particularly strong growth in Irish market. Most markets performed well Mobile-home occupancy increased to 100 days this year (up 4 days on

last year) Late UK booking market good, thanks in part to bad summer weather but

also due to successfully holding back some high season capacity Cost savings next year through decision to close distribution depot in

Middlewich Successful start to ‘Own a Holiday Home’

Preliminary Results 2007CAMPING

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EDUCATION

EBITA of £8.5m on sales of £26.1m reflecting partial year ownership PGL performing ahead of the expectations we had at the time of the

acquisition On budgeted revenues for 2007/08, this is now the second largest

division ahead of Adventure and Camping New division reduces our reliance on more discretionary consumer travel

expenditure Division has unusually good visibility in terms of forward revenues – PGL

is 86% and NST is 70% booked for 2008. (UK school adventure centres are already 97% booked for 2008 and 24% for 2009)

Divisional management now driving through the synergies identified at the time of acquisition from PGL and NST

Considerable potential to deliver long-term value as we look at other opportunities in the sector

Preliminary Results 2007EDUCATION

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BUILD ON CORE COMPETENCES- Look for more synergies within and across divisions- PGL-run Activity Stations for Camping Division sites- More use of customer address lists- Safety management excellence

DEVELOP A MULTIPATH APPROACH- Continue to source sensible bolt-on acquisitions (e.g. Select Sites on

01.10.07)- Organic opportunity – Explore Independent – to launch in Spring 2008

PURSUE SUSTAINABLE FASTER GROWTH- Ongoing strategic review to identify areas with faster growth potential- Look to increase defensibility by focus on more value added

DIVERSIFY SALES MIX- Potential for acquisitions to speed up the change

Strategic FrameworkTargets for next year

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Overall outlook encouraging – overall group sales up 6%. Satisfactory trading outcome anticipated

- Sales intake for Hotel Breaks up 12%- Education Division revenues up 9%- Sales intake up 5% in Adventure - with recovery in Middle East- Camping down 1% on capacity down 5% (-0.4% in mobile-homes, -20% in tents)

Business is resilient – we remain confident despite forecast slowdown in economic growth

- Hotel Breaks has historically done well in times of tight spending as our value to hoteliers increases

- Adventure Travel average age is 50 – customers less exposed to credit issues- Camping – will be seen by families as less costly than a long haul trip- Education – less of a discretionary spend item

Opportunities likely to arise to make further acquisitions at sensible valuations

More to play for

Preliminary Results 2007OUTLOOK

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