On The Beach Regulatory News (OTB)

26 July 2019

On The Beach Group plc

("On The Beach", "the Group" or "the Company")

Update on response to 2019 AGM voting outcome

On the Beach, one of the UK's leading online retailers of beach holidays, is pleased to provide an update on the voting outcome at its AGM on 7 February 2019 ("AGM").

The resolution for the approval of the Directors' Remuneration Report for the year ended 30 September 2018 was passed at the AGM with 78.56% votes in favour. The Board understands that the significant minority vote against this resolution was primarily due to the salary increase which was awarded to the Chief Financial Officer for the new financial year. There was an active engagement process with shareholders to discuss all of the changes being made to the remuneration arrangements, including this salary increase, ahead of the publication of the Annual Report and the Company's major shareholders were supportive of the proposed changes. The Board believes that the salary increase awarded resulted in an appropriate market positioning as Paul Meehan has become more established in his role and taken on a wider range of responsibilities since his appointment in 2017.

Since the Company's major shareholders were supportive of the changes being made, as evidenced by the >80% vote in favour of the revised Directors' Remuneration Policy, there has been no action taken or further engagement with shareholders or concerns raised by them following the AGM in relation to this specific issue or remuneration more generally. The Remuneration Committee has however noted the concerns raised by some of its shareholders and the proxy organisations as part of the engagement process prior to the AGM. The Remuneration Committee will reflect on this feedback as it considers the remuneration of the Executive Directors for future years, whilst maintaining focus on alignment with the best interests of shareholders and also with the Company's overarching reward principles.

The Company also notes that, as previously announced on 6 February 2019, the resolution concerning the proposed re-election of Lee Ginsberg was withdrawn further to Lee Ginsberg's resignation and accordingly, such resolution was not put to a vote at the AGM.

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About On the Beach

With over 20% share of online sales in the short haul beach holiday market, On the Beach is one of the UK's largest online beach holiday retailers. The Company has significant opportunities for growth and a long-term mission to become Europe's leading online retailer of beach holidays. By using its innovative technology, low-cost base and strong customer-value proposition to provide a structural challenge to legacy tour operators and travel agents, it continues its journey to disrupt the online retail of beach holidays. The model is customer-centric, asset light, profitable and cash generative.

www.onthebeachgroupplc.com