The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 1 The UK’s Leading Operator of Specialist

The UK’s Leading Operator of Specialist Holiday BusinessesThe UK’s Leading Operator of Specialist Holiday Businesses1

The UK’s Leading Operator of The UK’s Leading Operator of Specialist Holiday BusinessesSpecialist Holiday Businesses


TODAY’S PRESENTATION


MARKET

• Tsunami disaster

• January trading period

HOLIDAYBREAK

• Acquisitions of Bookit (BRC) and Djoser

• AGM Statement – Trading update

• On-line sales growth

MAJOR DEVELOPMENTS SINCE 02/12/04 (PRELIM RESULTS)


TRAVEL INDUSTRY TRENDS

Vertically integrated model declining

Consumer holiday trends- shorter more frequent- later bookings- more independent/tailor made/flexible- holidays with purpose (activity/special interest)

Internet Low cost airlinesTRAVEL

Specialists prospering


• Specialist holiday businesses

• Market leadership

• Industry leading margins

• Cash generation and dividend payout

• Flexible cost structures

• Organic growth

• Supported by complementary acquisitions

GROUP STRATEGY


THREE OPERATING DIVISIONS

£63.0m*(19%)

£150.6m*(45%)

£123.2m(37%)

CAMPING

HOTEL BREAKS

ADVENTURE

*Pro-forma 2004 sales (TTV)including recent acquisitions

£63.0m*(19%)

£150.6m*(45%)

£123.2m(36%)


HOTEL BREAKS DIVISIONHOTEL BREAKS DIVISION

ACQUISITION OF BOOKIT

MARK WRAY


Hotel Breaks2005 TRADING AND OUTLOOK

• Sales: +7% (as at 10/02/05)(excludes impact of acquisition)

• Strong performances by:- London Theatre Breaks- European breaks (Cities and Beach)

• 2005/6 UK brochures launched- Hotel choice increased- Product developments

• New affiliate relationships


Hotel BreaksDIVISIONAL STRATEGY

• Increase distribution reach (NB. Bookit)

• Product development

• Increase range and value proposition of hotel relationships

• Maintain/reduce overhead cost ratios


Hotel Breaks2004 SALES (Pro-forma: TTV)

Overseas - 6%

Bookit - 20%

Other UK - 46%London - 28%


ACQUISITION OF BOOKIT

• The leading on-line intermediary for short stay leisure breaks in the Netherlands

• Completion - 21 December 2004

• Acquired for €33.5m (£23.1m)

• Paid in cash from existing bank facilities


Bookit MARKET BACKGROUND

• Favourable economic context for leisure break growth

• 50% of Dutch domestic holidays short stay (1-3 nights)

• Hotels : 7m leisure nights / €550m expenditure (2003)

• Bungalows/Summerhouses : 28m leisure nights / €1bn expenditure (2003)

• 76% (12.3m) of Dutch population on-line. - Broadband take up > 30%


BookitKEY INVESTMENT ATTRACTIONS

• Market leading internet sites for leisure breaks – advanced and scaleable web infrastructure

• High brand recognition and customer loyalty (50% repeats)

• E-mail database - 900,000 households• Strong - Supplier relationships

- Management team (staying with business) - Growth record (top and bottom line)

• Potential for - Product ‘stretch’ - Add Superbreak product - New market penetration


• 700 hotels / 150 bungalows in Netherlands (70%), Belgium and Germany

BookitPRODUCT

• - - Min 2 nights

• - - 1 night

• - - Chalets/ summerhouses/

mobile-homes


• Accommodation providers load rooms and prices online

• Good availability at excellent prices (average booking lead time - 18 days)

• Bookit commission income derived from: - Commission (8-12%)/fixed fee

- Customer booking fee

• Additional income from ‘sign on’ fees and overrides• Hotel collects full payment and Bookit invoices

monthly (ability to invoice earlier)

BookitBUSINESS MODEL


• 85% bookings on-line

• Brand awareness: 1st ranked internet leisure site (Jan 05)

• Search engine optimisation and online advertising

• E-database (900,000 households)

• Competitive prices

• Operational excellence

BookitMARKETING/DISTRIBUTION


BookitFINANCIAL RECORD

Year Ended 31 December

2001 2002 2003 2004

Total Rooms Booked (‘000) 73 138 262 335

TTV €11.5m €21.1m €31.3m €42.2m

€’000 €’000 €’000 €’000

Total Commission Income 2993 4810 6987 8784

Normalised Costs <2547> <3322> <4875> <5401>

EBIT 446 1488 2077 3383


• All three brands/sites performing strongly

• Bungalows growing fastest – av. commissions expected to increase

• Capacity availability good

• Integration going well

• Overhead costs under control

• 40 weeks of year to 30/09/05 to be included

Bookit2005 OUTLOOK


BookitSTRATEGY AND OPPORTUNITIES

• Stand Alone Business– More contracted product: Hotels; Bungalows– Product stretch: Luxury and family hotels; Campsites– German market

• With UK Parent:– London & provincial product– Access to theatre/concert tickets– European product range– Expand European accommodation portfolio– Resource for development:

• Capex• Organic start-ups• Acquisitions


ADVENTURE DIVISIONADVENTURE DIVISION

ACQUISITION OF DJOSER

SIMON TOBIN


Adventure2005 TRADING AND OUTLOOK

• Divisional sales (@ 10 Feb 2005 excluding acquisition)

– Division +22%

– Explore +25%

– Regal + 3%

• No evidence of post-Tsunami downturn

• Explore sales intake strong across all markets

• Regal seeing late demand to Red Sea and Caribbean

• On-line booking 20% +


AdventureDIVISIONAL STRATEGY

• Market leadership in European “Soft Adventure”

sector

• New product development drives growth

• On-line business grows to 50% in 3 years

• Broaden awareness of sector to wider audience


Adventure Holidays Division2004 SALES (Pro-forma)

Explore UK 46%

Djoser 41%

Explore Overseas Agents 4%

RegalDive 9%


• Market leading Dutch ‘soft adventure’ holiday operator

• Announced – 23 December 2004 (Completion – 19 Jan 2005)

• Acquired for €22.75m (£15.7m)

• Paid in cash from existing bank facilities

ACQUISITION OF DJOSER


Djoser MARKET BACKGROUND

• Dutch economic environment improving

• Great tradition of Dutch exploratory travel

• Activity sector grows as per UK

• 76% of Dutch population on-line

• Long-haul market growth

• Soft Adventure sector – circa 75k customers


Djoser KEY INVESTMENT ATTRACTIONS

• Djoser – market leader in Holland

• Familiar business model

• High brand awareness (4th most recognised in NL)

• Synergistic benefits with Explore

• Pioneering on-line activity in sector

• Potential for development in other European countries

• Experienced management team (staying with business)


Tour Destinations (2005)

Explore DjoserEurope 128 16Asia 65 22Africa 80 18Americas, Pacific & Australasia 68 27Egypt & Midle East 36 16Indian Subcontinent 25 13Arctic & Antarctica 8 0Total 410 112

DjoserPRODUCT


DjoserBUSINESS MODEL

• Small group package (air & land content)

• Overseas suppliers / Agents

• Trained & Experienced Tour Leaders

• Gross margins @ 25%

• Yield management controls margins

• Marketing led – outsourcing of IT / Technology


DjoserMARKETING/DISTRIBUTION

• 65% of bookings on-line

• High Brand awareness (1st specialist)

• Direct to consumer – no Agency / Intermediary

• Database 350k

• Unique public “Brand” persona – shows, exhibitions


Year Ended 31 December

2001€000

2002 €000

2003 €000

2004 €000

Total Revenue 31,062 34,347 36,507 37,120

Gross Profit 6,438 7,620 8,259 8,715

Normalised Costs -4,620 -4,750 -5,400 -5,825

EBIT 1,818 2,870 2,859 2,890

DjoserFINANCIAL RECORD


Djoser2005 OUTLOOK

• Sales intake since acquisition on track

• No post-Tsunami downturn

• New “Junior” programme encouraging start

• Integration with Explore on track

• Financial controls in place


DjoserSTRATEGY AND OPPORTUNITIES

• New product development drives growth

• Explore & Djoser develop synergistic plan

– Marketing – share resources

– Product Development – leverage Explore expertise

– Web – leverage Djoser expertise

– Overseas Suppliers – leverage buying power

• Expand to Germany


The UK’s Leading Operator of Specialist The UK’s Leading Operator of Specialist Holiday BusinessesHoliday Businesses

TRADING UPDATE & CAMPING


AS AT 10 FEBRUARY 2005

• Hotel Breaks: +7%

• Camping: – 9% (overall capacity reduced by 12%)

• Adventure: +22%

• Recent acquisitions (Bookit and Djoser) trading in line with management expectations

Year on year comparatives exclude recently acquired businesses

TRADING UPDATE – 10 FEBRUARY 2005


• Sales: -9% (as at 10/02/05)- UK travel agents and Germany below

expectations- UK directs and Easycamp performing well- Low season challenges

• Capacity: Mobile-homes: –11% (9,700) Tents: –14% (4,200)

• Operational / overhead cost reduction : £3m+

• Eventual outturn sensitive to sales intake over remainder of season as main camp-site costs (depreciation and site fees) now fixed

Camping2005 TRADING AND OUTLOOK


• Capacity requirements (overall and regional) reviewed in light of 2005 trading

• Continuing focus on stabilising occupancy rates, optimising yields and maintaining/improving margins

• Ongoing cost review

• E-commerce channel and affiliate relationship development to target new customer groups

• Strategic review ongoing prior to detailed 2006 planning

CampingDIVISIONAL STRATEGY


• Shares ex-dividend: 16 March 2005

• Interim Results – 19 May 2005

• Trading update – mid-September

• Preliminary Results – 1 December 2005 (provisional)

Holidaybreak plcCORPORATE CALENDAR


The UK’s Leading Operator of Specialist The UK’s Leading Operator of Specialist Holiday BusinessesHoliday Businesses

QUESTIONS

Documents

The UK’s Leading Operator of Specialist Holiday Businesses The UK’s Leading Operator of Specialist Holiday Businesses 1 The UK’s Leading Operator of Specialist