Investor presentation

September 2014

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Contents 1 Introduction to Thomas Cook Group

2 Transformation and delivering on our strategy for profitable growth 3 Key points of Q3 financial results and current trading 4 Outlook

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INTRODUCTION TO THOMAS COOK GROUP

The Thomas Cook Group is one of the world’s leading leisure travel companies, headquartered in the UK

Over 170 years

of innovation in travel

A high tech high touch tour operator, providing holiday components both on- and offline

c£9bn

17

annual sales

countries

Strong brands including Thomas Cook, Neckermann, Condor, Ving, Spies and Tjäreborg

c23mn

c27,000

customers

employees

Listed on the LSE with a market capitalisation of £1.8 billion (US$3 billion)

89 aircraft #1 or #2 (by revenue) in core markets UK, Germany and Northern Europe

11th largest airline in Europe by fleet size

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INTRODUCTION TO THOMAS COOK GROUP

Group snapshot1 Group UK Customers

Revenue EBIT

23.1m

£9,315m £263m

2

Continental Northern Europe Europe

6.7m

7.8m

1.5m

£2,977m £66m

£4,195m £78m

£1,239m £109m

Airlines Germany Customers

Revenue EBIT

7.1m £1,312m £48m 1 FY13 EBIT and Revenue; FY14E customers 2 After taking account of inter-segment sales of £409m

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INTRODUCTION TO THOMAS COOK GROUP

Our key strengths Strong brand with leading market positions in key source markets Operating in a large and growing international leisure travel market Track record of successful product development – Sunwing, Sunprime, Sentido, Smartline , SunConnect concept hotels Diversified operations and distributions channels Benefits of economies of scale Strength of management team

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Our strategy has five key elements Growing profitably through our trusted product portfolio Delivering Voyager Android and omni-channel vision

Optimising costs and cash through Thomas Cook Business System Owning and taking risk in the right assets and capacity

Repositioning our organisation, culture and capabilities 6

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INTRODUCTION TO THOMAS COOK GROUP

Customer booking path

We compete with other intermediaries, both online and offline Customer

Intermediaries Information providers

Purchase channels

Capacity packager

Metasearch Content

?

Capacity providers

Hotel finder

Airlines/ LCCs

Flight search

Travel agents Online

Hotels & Resorts

Ancillaries

Offline

Cruise lines Tour operators Mass market Niche 7

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INTRODUCTION TO THOMAS COOK GROUP

What differentiates us from other market players What differentiates vs. Tour Operators / LCCs

Thomas Cook

vs. Both

vs. OTAs

Customer • Larger array of exclusive concept & • Customer trust from consistent high partnership hotels quality experience • Relationships that extend to shorter • Deeper insight into who our customers trips, pre-booking, & post-travel are and how they are evolving

• True omni-channel approach enabling customers to research and book when and where it suits them

Cost & Capacity • Established culture of continuous cost-out & improvement and Thomas Cook Business system • More asset-light approach to hotel and airline capacity

• Lower cost of air travel

• Access to concept hotels and to exclusive partnership hotels

In addition, Thomas Cook has the opportunity and ability to modernise and to become a disruptive force in travel

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Contents 1 Introduction to Thomas Cook Group

2 Transformation and delivering on our strategy for profitable growth 3 Key points of Q3 financial results and current trading 4 Outlook

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

Business transformation The Transformation programme is focused on: • Building a more effective organisation • Reducing costs and improving the cash position through Improvement Initiatives

UK turnaround plan

Wave 1 Group profit improvement programme

Implementation of the Profitable Growth Strategy

Wave 2 Group profit improvement programme

Adopted in 2011

Announced in November 2012

Announced in March 2013

Announced November 2013

• Integrated air travel strategy

• Expansion of exclusive and international concept hotels

• Hotel and airline yield management

• Product and service innovation

• Channels and digitisation

• Improvements to organisation structure and footprint • Streamlining of product, infrastructure and technology

• Execution supported by brand and technology

• Enablers (IT and shared services) 10

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We have strategic targets and KPIs to 2015 Strategic targets

Q3 14

FY14

FY15

New Product Revenue1

£167m

>£300m

>£700m

37%

>40%

>50%

£328m

>£360m

>£460m

(1.2)%3

>2.5%

>3.5%

Underlying Gross Margin Improvement

1.5%

>1.2%

>1.5%

UK Underlying EBIT Margin

3.1%

>3.5%

>5%

Cash Conversion4

21%

>55%

>70%

Web Penetration Cost Out / Profit Improvement (Wave 1)

KPIs Sales CAGR2

1 Net of cannibalisation from other product lines 2 Compound annual growth rate from FY13 3 LFL year on year growth; growth excluding Egypt +0.8% 4 Defined as free cash flow after exceptional items and before capital expenditure as a percentage of EBITDA

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

We're rolling out our powerful concept architecture across our markets Family

Adult

Premium www.ving.se/sunwing

www.sentidohotels.com

www.ving.se/sunprime

Budget http://www.thomascook.com/holidays-abroad/smartline 12

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

Our concept hotels offer a range of consistent experiences and appeal to a range of audiences (1/2)

Sunwing Family Resorts are our prime family hotels, with spacious, family-friendly apartments loaded with smart details. All hotels have excellent locations. With a kids’ club, spa and gym, there’s something for the whole family Example features • Children under 12 years eat free • Variety of restaurants and bars • Family orientated activities & experiences • Free WiFi throughout the hotel

SENTIDO Hotels & Resorts are aimed toward discerning travellers, who value health-conscious cuisine and wellness facilities, along with wide-ranging sports and entertainment programmes Example features

• • • •

Mascots at hotel Play & Chat with PS3 Large, kid-friendly pools Direct transfers

• • • •

Early Check-in/Late Check-out • Plus Room with more comfort Holiday Concierge and reserved sunbeds Extended Breakfast times • Holiday Plus Programme with Regional foods and show cooking range of special activities

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

Our concept hotels offer a range of consistent experiences and appeal to a range of audiences (2/2)

Sunprime Hotels are our adult-only resorts, for those that appreciate the “good things in life”, with prime locations, peaceful pools, and modern restaurants Example features • • • •

Age limit 16 years Bar with entertainment Spa Fitness & SATS classes

smartline hotels are a great value option for young travellers. The eye-catching, colourful interior design is chic and inviting

Example features • minimarket with fresh bread, wine and pastries • Direct transfers

• Swimming Pool • Buffet restaurant • Bar

• smartline trolley with fresh fruit and ice cream • Free Wi-Fi internet access in the lobby area

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

UK Product Progression

Concept & Other Core Product

Commodity Product

Revenue £m c.3,100 24%

c.(300)

c.100 c.(100)

c.(50)

c.350

c.2,750

c.3,200 3%

c.350 c.(170)

97% 76%

FY12

Divestitures Discontinued Trading New & Packages incl. Egypt/ Differentiated Canaries Product

Jun´14 Discontinued Concepts & Packages Partnerships LTM

Flexible Product

FY17 15

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

Exclusive product Flexible product

Group Product Progression > 1.200

Incremental New Product Revenue £m from FY12

300

Exclusive hotel product success in S14 – +43% concepts, +10% partnership

>700

Further growing exclusive products – 800 hotels by FY17

200

100

Launched NE Dynamic packaging in Jan 14 – 55% bookings increase, with no cannibalisation

De-risking our hotel portfolio – 30 - 50% reduction of “commodity risk” product

600 c.60

Target number exclusive hotels Revenue contribution from concept and other core product

FY13

FY15

FY17

309

640

800

c. 80%

On track to deliver

> 95% 16

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

The Group airlines integration is progressing well Delivering significant benefits Group Airlines segment

• Strong progress in airlines integration, system consolidation and realisation of synergies • >£110m profit improvement measures to be delivered by 2015

Commercial Finance, HR & Comms, IT & Fleet Operations

Maintenance

• Satisfying 9-month performance against challenging market conditions – Slight capacity reduction (ASK) 2% – Seat load factor of 88.3%1 – Overall yields down 2% due to structural shift (reduced long haul operations) and pressure in the short/medium hall sector – Ancillary revenue per seat +5% • 83% on-time performance (YTD); +5% improvement y-o-y

1 Including empty legs

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

Investing in a more efficient fleet 100%

5

Unchanged

67

Refurbished

23

28

New

S15

S16

10

90% 80%

57

70% 60% 50%

67 99

40% 30%

34

20% 10% 0%

1 S13

9 S14

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Our approach to cost-out and cash performance is underpinned by our unique Thomas Cook Business System Thomas Cook Business System Profitable growth through trusted, personalised products

Top-to-bottom leadership and relentless performance management

High tech, High touch: a digital business

Customer at the heart

Thomas Cook Business System has four pillars and with the customer at the heart

SOURCE: Nov 13 FY13 announcement

Efficient structures, systems and processes through lean & innovation

It builds on best practices in continuous improvement & delivery from other industries

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

Wave 2: cost out and profit improvement Margin upside, channel optimisation and further cost out Hotel and airline yield management

• Wave 2 is expected to deliver benefits at a similar magnitude to Wave 1 at >£400m by FY18

Yield management Pricing Touristic platform Airline platform Tour accommodation Tour transport Commissions

• Already identified risk-weighted benefits of £150m, using our rigorous system • The cost to achieve the identified benefits is £145m, all of which is cash • Wave 2 touches all areas of the organisation, backed by the Thomas Cook Business System and Lean methodology

Enablers IT transformation Finance transformation HR transformation Organisational effectiveness Lean and benchmarking

Wave 2 initiatives

Channels and digitisation Customer experience Channel optimisation Contact centres Digital transformation

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

We will update our Wave 2 targets in November Total expected benefits of the same magnitude as Wave 1 at >£400m • Already identified risk-weighted net benefits of £150m • Estimated incremental one-off cost of £145m for delivery of targeted >£400m annual benefit, all of which is cash

Benefits are focused on profit improvement • 60% of the end state benefits are expected to come from profit improvement and 40% from cost out

Identified risk weighted benefits and unweighted costs FY15

FY16

FY17

FY18

Target state FY18

Hotel and airline yield management

-

25

45

85

220

Channels and digitisation

-

15

35

50

140

Enablers (IT and shared services)

-

10

15

15

40

Total identified benefits1

-

50

95

150

>400

21

25

69

30

145

£m

Expected costs to achieve2 1 Cumulative run-rate 2 Unweighted one-off costs of delivery per year; income statement items, all cash

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

Leveraging customer focused culture to drive omni-channel vision Thomas Cook Business System Profitable growth through trusted, personalised products

High tech, High touch: a digital business

Top-to-bottom leadership and relentless performance management

Stores

Digital

Customer at the heart

Efficient structures, systems and processes through lean & innovation

In destination

Contact centres

… creating an industry-leading omni-channel experience 22

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

Our omni-channel approach supported by our concept store

The visuals are of our Lakeside store.

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

Good progress in digitising our business Positive impact from new UK website • Substantial improvement in performance since new UK site launched in May

2015 Target

>50%

• Mobile conversion doubled and desktop/tablet conversion up 10% • UK eCommerce bookings increased by 35% in August (compared to previous year)1 • 1,000 customers per week are signing up to My Account, enabling a more personalised experience • Roll out of new site to other markets over next 12 months

2014

40%

2013 2012

36% 34%

38% YTD 37% LTM Q3

• Across the Group, bookings are up 73% YTD on tablets and mobile devices1 • Web penetration for Northern Europe and Group Airlines remains > 70% • Cultural change programme underway: “Let’s Go Digital!” 1 Tour operator only

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

Our IT infrastructure has been simplified; further gains are to come From

Today

To

Websites

304

159

Per segment

Web platforms

17

Contractors/ offshore

90%

IT locations

8

3-5

1

7

20%

6

15% 4 25

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TRANSFORMATION AND DELIVERING ON OUR STRATEGY FOR PROFITABLE GROWTH

The transformation is progressing well; Thomas Cook is getting stronger Achieving sustainable profitable growth Ahead of plan in cost out and profit improvement

Strong demand for new products Continued progress in digitising the business On track to meet our expectations for FY14 26

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Contents 1 Introduction to Thomas Cook Group

2 Transformation and delivering on our strategy for profitable growth 3 Key points of Q3 financial results and current trading 4 Outlook

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KEY POINTS OF Q3 FINANCIAL RESULTS AND CURRENT TRADING

Financial overview – LTM to 30 June 2014 Like-for-like (LFL) underlying EBIT improves by £56m LTM LTM £m Jun 14 Jun 13

Change

LFL change

Revenue

8,966

9,218

(252)

(111)

Gross Margin

22.6%

21.9%

70 bps

110 bps

Underlying EBIT

306

252

54

56

EBIT Margin

3.4%

2.7%

70 bps

70 bps

Net Debt

(507)

(452)

(55)

(9) 28

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KEY POINTS OF Q3 FINANCIAL RESULTS AND CURRENT TRADING

Revenue & EBIT by quarter Share of revenue

Q4 42%

Q2 15%

Q1 18%

Q3 25%

LTM

9.4

Revenue £bn

3.9

3.6

3.7

1.8

1.7

1.7

1.5

1.6

1.4

2.2

2.4

9.2

9.0

2.2

448 448 460 178

EBIT

1

£m (90) (66) (56)

(23) (158) (131) (131)

252

306

33

Jun Jun 12 13

Jun 14 29

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KEY POINTS OF Q3 FINANCIAL RESULTS AND CURRENT TRADING

Revenue by business – LTM to 30 June 2014 Reported LTM Jun 14

Reported LTM Jun 13

Growth %

LFL Growth %

Excl. Egypt1

UK & Ireland

2,779

3,012

(7.9)%

(1.4)%

(0.5)%

Continental Europe

4,084

4,113

(0.7)%

(2.3)%

0.4%

Airlines Germany

1,316

1,268

3.7%

2.2%

3.8%

Northern Europe

1,194

1,217

(1.8)%

0.4%

2.8%

Continuing Operations2

8,964

9,210

(2.7)%

(1.2)%

0.8%

Egypt3

2

8

n/a

n/a

n/a

Total

8,966

9,218

(2.7)%

(1.2)%

0.8%

£m

1 Like-for-like growth adjusted for the impact of the political situation in Egypt 2 Continuing operations net of intercompany eliminations 3 Egyptian business sold in FY14

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KEY POINTS OF Q3 FINANCIAL RESULTS AND CURRENT TRADING

EBIT by business – LTM to 30 June 2014 All businesses contribute to EBIT growth UK +£43m EBIT %

(0.1)

Continental Europe -£3m 1.6

3.1

1.2

2.2

2.2

Airlines Germany +£16m 1.8

3.0

4.1

Northern Europe +£10m 6.6

9.0

9.9

Group1 +£56m 1.3

2.8

3.4 306

250

87 44 (4) LTM LTM LTM Jun 12 Jun 13 Jun 14 LFL LFL

92

89

51

LTM LTM LTM Jun 12 Jun 13 Jun 14 LFL LFL

21

38

54

LTM LTM LTM Jun 12 Jun 13 Jun 14 LFL LFL

78

108

118

LTM LTM LTM Jun 12 Jun 13 Jun 14 LFL LFL

1 Including Corporate costs of £(42)m in LTM Jun 14, £(32)m in LTM Jun 13 LFL, and £(28)m in LTM Jun 12 LFL

118

LTM LTM LTM Jun 12 Jun 13 Jun 14 LFL LFL 31

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KEY POINTS OF Q3 FINANCIAL RESULTS AND CURRENT TRADING

Net debt position at 30 June 2014 Underlying net debt increase of £9m £m

(452)

LTM net disposal proceeds £111m (19) 130

(420) (507) (32)

(28)

25

(23)

(13)

(9) (86)

Q3 13

Gross Compleproceeds tion adjs

Client Re-capicash dis- talization1 posed with businesses

FX

1 Payment of costs related to the recapitalisation completed in June 2013

Lease re-class

Other items

U/L change

Q3 14 pre Capex capex uplift

Q3 14

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KEY POINTS OF Q3 FINANCIAL RESULTS AND CURRENT TRADING

Net debt composition and maturity profile at 30 June 2014 Commercial paper £m

30-Jun-14 30-Jun-13 Movement

Maturity

2015 Euro Bond

(319)

(340)

21

June 2015

2017 GBP Bond

(297)

(296)

(1)

June 2017

2020 Euro Bond

(421)

(436)

16

June 2020

Commercial Paper

(68)

(111)

43

Jul/Aug 2014

-

-

-

n/a

Finance Leases

(181)

(219)

29

Various

Other external debt

(97)

(127)

30

Various

28

-

28

n/a

(1,355)

(1,530)

175

848

1,078

(230)

(507)

452

(55)

RCF

Arrangement fees Total Debt Cash Net Debt

Debt maturity profile £m

New facility A

770

Senior Notes

470 440 365 30

335

300

68

2014

2015

2016

2017

2018

2019

2020

Excludes finance leases and aircraft related bank loans; Additional facility of £191m available to part fund 2015 bonds not included above as it is envisaged that this facility will not be drawn and will be cancelled in 2015

33

1

2

3

4

Illustrative net debt bridge — FY12 to FY14 c. £425m

c. £1,000m

Financial Stability Balance sheet improved through equity issue and asset disposals

c. £(600)m

c. £(275)m

Operational Improvements

Investment in business

Debt Servicing

Re-investment in the business for capex and funding of restructuring

Improved operating efficiency achieved through Cost Out and working capital management

(300-350)

(788) FY12

Net disposal proceeds

Recap

EBITDA

Working capital

Capex & Aircraft

Exceptionals

Interest

Pension, Tax & Other

FY14 34

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KEY POINTS OF Q3 FINANCIAL RESULTS AND CURRENT TRADING

Update on current trading • Successful transformation of Thomas Cook continues • FY14 operational performance expected to show material improvement on last year despite the recent downturn in consumer confidence in Germany • FY14 underlying EBIT expected to be between £315 million and £335 million, equivalent to growth of between 39% and 48% • Excellent progress in web performance, particularly in the UK

• Improving revenue contribution from Concept and Partnership hotels • Strong late Summer 14 bookings in all of our major source markets, with increasing demand for our Concept hotels • Strong Winter 14/15 bookings in the UK with 29% sold; Summer 15 bookings encouraging

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KEY POINTS OF Q3 FINANCIAL RESULTS AND CURRENT TRADING

Update on current trading — Summer 14 UK

Continental Europe

Bookings: Flat

Bookings: Flat

ASP: -4%

ASP: Flat

Capacity sold: 92%

Capacity sold: 90%

Airlines Germany

Northern Europe

Bookings: +3%

Bookings: +3%

ASP: -3%

ASP: -1%

Capacity sold: 89%

Capacity sold: 97%

Data up to the week ending 6 September 2014

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Contents 1 Introduction to Thomas Cook Group

2 Transformation and delivering on our strategy for profitable growth 3 Key points of Q3 financial results and current trading 4 Outlook

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OUTLOOK

Outlook Thomas Cook is stronger and more resilient, with all of our businesses expected to deliver results ahead of last year FY14 EBIT growth of between 39% and 48% to £315m and £335m Continued focus on strategy of sustainable profitable growth, supported by cost out and profit improvement, digitising the business and new product development

We’re seeing strong booking trends for Summer 14 “lates” Winter 14/15, and Summer 15 38

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Appendix

39

APPENDIX 1 2 3

4

Wave 1 and Wave 2 risk-weighting methodology Methodology Purpose: The risk-weighting process discounts gross measures depending on their level of implementation Approach: The risk-weighted benefit is calculated by multiplying the gross benefit with the riskweighting factor for that implementation level

Overview of implementation levels

IL 0

IL 1

Unspecified target

Identified

IL 2

IL 3

Validated

Approved

IL 4

IL 5

Implemented

P&L realised

Definition A target that has not been substantiated by specific measures.

A concrete idea with specific savings quantified.

Management has validated measures and savings by market with supporting data.

Business case has been approved to implement the measure.

Implementation Benefits realised in progress. in the P&L.

Risk-weighting coefficient

0%

100% 40

APPENDIX 1 2 3

4

Financial overview – 9 months to 30 June 2014 Like-for-like (LFL) underlying EBIT improves by £48m

YTD Jun 14

YTD Jun 13

Change

LFL change

Revenue

5,230

5,578

(348)

(123)

Gross Margin

21.0%

20.4%

70 bps

90 bps

Underlying EBIT

(154)

(196)

42

48

EBIT Margin

(2.9)%

(3.5)%

60 bps

80 bps

Net Debt

(507)

(452)

(55)

(9)

£m

41

APPENDIX 1 2 3

4

Revenue by business – 9 months to 30 June 2014 Reported YTD Jun 14

Reported YTD Jun 13

Growth %

LFL Growth (%)

Excl. Egypt1

UK & Ireland

1,515

1,712

(11.5)%

(5.0)%

(3.5)%

Continental Europe

2,286

2,397

(4.6)%

(2.4)%

2.5%

Airlines Germany

879

875

0.4%

1.7%

4.0%

Northern Europe

819

864

(5.2)%

(0.1)%

3.4%

5,230

5,578

(6.2)%

(2.2)%

1.2%

£m

Continuing Operations

1 Like-for-like growth adjusted for the impact of the political situation in Egypt 2 Continuing operations net of intercompany eliminations

42

APPENDIX 1 2 3

4

EBIT by business – 9 months to 30 June 2014

£m

Reported Reported YTD Jun 14 YTD Jun 13

Growth

LFL Change

Excl. Egypt

EBIT Margin YTD Jun 14 YTD Jun 13

UK & Ireland

(115)

(135)

20

22

26

(7.6)%

(7.9)%

Continental Europe

(45)

(57)

13

13

16

(2.0)%

(2.4)%

Airlines Germany

(12)

(17)

5

8

13

(1.4)%

(2.0)%

Northern Europe

42

34

8

10

18

5.1%

3.9%

Corporate

(24)

(20)

(4)

(4)

(4)

n/a

n/a

Continuing Operations

(154)

(196)

42

48

68

(2.9)%

(3.5)%

43

APPENDIX 1 2 3

FINANCIAL RESULTS

4

EBIT by business – 9 months to 30 June 2014 Like-for-like EBIT growth of £48m UK +£22m

Continental Europe +£12m

Airlines Germany +£8m

Northern Europe +£10m

20

(57) (136) (137)

(115)

(45)

(35)

(20)

32

Group1 +£48m

42

(12)

(88)

(154)

(190)

(202)

(304)

YTD YTD YTD Jun 12 Jun 13 Jun 14 LFL LFL

YTD YTD YTD Jun 12 Jun 13 Jun 14 LFL LFL

YTD YTD YTD Jun 12 Jun 13 Jun 14 LFL LFL

YTD YTD YTD Jun 12 Jun 13 Jun 14 LFL LFL

1 Including Corporate costs of £(24)m in Q314 YTD, £(20)m in Q3 13 LFL YTD and £(12)m in Q3 12 LFL YTD

YTD YTD YTD Jun 12 Jun 13 Jun 14 LFL LFL 44

APPENDIX 1 2 3

4

EBIT by business Like-for-like EBIT growth of £18m UK +£22m +£24m excl. Egypt

Continental Europe -£1m +£1m excl. Egypt

Airlines Germany +£3m +£4m excl. Egypt

Northern Europe -£1m Flat excl. Egypt

Group1 +£18m +£24m excl. Egypt

39

33

17 7

6

2

(5)

(20)

(9)

9

15

8

(6)

(24) (50)

Q3 12 Q3 13 Q3 14 LFL LFL

Q3 12 Q3 13 Q3 14 Q3 12 Q3 13 Q3 14 LFL LFL LFL LFL

1 Including Corporate costs of £(14)m in Q314, £(9)m in Q3 13 LFL and £(3)m in Q3 12 LFL

Q3 12 Q3 13 Q3 14 LFL LFL

Q3 12 Q3 13 Q3 14 LFL LFL 45

APPENDIX 1 2 3

4

Separately disclosed items – 9 months to 30 June 2014 £m, 9 months to 30 June 2014

Cash1

Non-cash

Total

Jun´13

(63)

(9)

(72)

(90)

Refinancing costs

-

-

-

(15)

Goodwill impairment and asset valuation reviews

-

(41)

(41)

(4)

(9)

(47)

(56)

(3)

Amortisation of business combination intangibles

-

(6)

(6)

(13)

Provision for tax dispute resolution

-

-

-

(13)

Other

-

4

4

(9)

(72)

(99)

(171)

(147)

-

(21)

(21)

(28)

(72)

(120)

(193)

(175)

Restructuring costs

Onerous contracts and legal disputes

Impacting EBIT Finance related charges

Total

1 The cash column above represents items that impacted cash in the current period or will impact cash in the future

46

APPENDIX 1 2 3

4

EBIT by business – LTM to 30 June 2014

£m

Reported Reported LTM Jun 14 LTM Jun 13

Growth

LFL Change

Excl. Egypt

EBIT Margin LTM Jun 14 LTM Jun 13

UK & Ireland

87

58

29

43

47

3.1%

1.9%

Continental Europe

89

83

6

(3)

-

2.2%

2.0%

Airlines Germany

54

37

17

16

21

4.1%

2.9%

Northern Europe

118

105

12

10

19

9.9%

8.6%

Corporate

(42)

(31)

(11)

(11)

(11)

n/a

n/a

Continuing Operations

306

252

54

56

76

3.4%

2.7% 47

APPENDIX 1 2 3

4

FINANCIAL RESULTS

Group cash flow — 3 months ended 30 June 2014 Q3 cash flow impacted by timing of working capital movements £m Revenue EBITDA Working capital Tax Pensions & other Operating cash flow Exceptional items Capital expenditure Aircraft capital costs Net interest paid Free cash flow Proceeds from disposals Cash impact of disposals New Equity Other Net cash flow

3 months to Jun 14 2,219 75 423 (5) (14) 479 (46) (33) (27) (84) 290 8 (9) (5) 283

3 months to Jun 13 2,354 40 540 (7) (1) 572 (37) (40) (72) 422 4 (54) 431 (34) 769

Change (135) 35 (117) 2 (13) (93) (9) 7 (27) (12) (132) 4 45 (431) 29 (486) 48

APPENDIX 1 2 3

4

FINANCIAL RESULTS

Working Capital Movements Working Capital Balance at 30 June 2014

Working Capital

Change from Q3 13

c.£2bn

Customer receipts in advance

(c. £70m)

c.£1bn

Hotel and trade creditors

(c. £40m)

Cost Out Programme

(c. £10m)

c.£200m

Other

£3m

Total

(£117m)

49

APPENDIX 1 2 3

4

FINANCIAL RESULTS

Group cash flow — 9 months ended 30 June 2014 £m EBITDA Working capital Tax Pensions & other Operating cash flow Exceptional items Capital expenditure Aircraft capital costs Net interest paid Free cash flow Proceeds from disposals Cash impact of disposals New Equity Other Net cash flow

9 months to Jun 14 (32) 294 (26) (23) 213 (82) (116)

9 months to Jun 13 (81) 460 (27) (11) 341 (109) (103)

Change 49 (165) 1 (12) (128) 27 (13)

(61) (124) (170) 114 (52) (108)

(114) 15 (56) 431 (32) 358

(61) (10) (185) 114 4 (431) 32 (466) 50

APPENDIX 1 2 3

4

FINANCIAL RESULTS

Cash conversion LTM Jun 14 cash conversion 21% £m

LTM Jun 14

LTM Jun 13

Free cash flow

(128)

95

Cash conversion ratio %

> 70 >55

Capital expenditure

223

137

21

FCF before Capex

95

232

EBITDA

457

398

Cash conversion

21%

58%

LTM Jun 14

FY14

Note: Cash conversion ratio is defined as free cash flow after exceptional items and before capital expenditure as a percentage of EBITDA

FY15

51

APPENDIX 1 2 3

4

Reconciliation of ‘like for like’ to underlying numbers “Underlying” refers to trading results after adjusting for separately disclosed items that are significant in understanding the on-going results. “Like for like” reflects the comparison in the underlying results after removing identifiable non-recurring items in the prior year. A reconciliation of “like for like” to “underlying” numbers for EBIT and gross margin is as follows:

EBIT £m

Q3 14

Q3 13

Change

EBIT £m Q3 14 YTD

Underlying

33

1

32

(154)

(196)

42

306

252

54

Easter Timing

...

15

(15)

...

-

-

…

-

-

Disposals/Store Closures

…

(1)

1

…

(1)

1

…

(16)

16

Accounting Changes

…

-

-

…

(4)

4

…

(4)

4

Impact of Currency Movements

…

(1)

1

…

(1)

1

…

19

(19)

Like for like

33

15

18

(154)

(202)

48

306

250

56

Q3 13 YTD Change

EBIT £m LTM Jun 14

LTM Jun 13

Change

52

APPENDIX 1 2 3

4

FX and fuel hedging (30 June 2014) Winter 2013/14

Price

Summer 2014

Price

FY14

Price

Winder 2014/15

Price

Summer 2015

Price

FY15

USD

97%

93%

95%

71%

41%

55%

EUR

99%

87%

90%

72%

50%

55%

Jet Fuel

100%

$1,000

97%

$983

98%

$990

73%

$976

42%

$980

56%

Price

$978

• A 1% change in Kerosene prices would result in a £0.1m variance in Fuel cost for FY14 and £3.2m change of Fuel cost for FY15.

EUR and SEK profits are not hedged and, at current rates, create a negative variance of c.£25m due to the strengthening GBP against EUR and SEK

• Transactional USD exposures against EUR, GBP and SEK have been hedged in line with Fuel hedges. A 1% variance in FY14 would have a £0.7m impact, for FY15 this would be £5.6m.

• Every 1% move in Euro has a £1.6m impact on EBIT • Every 1% SEK movement has a £1.0m impact on EBIT

• Transactional EUR exposures against GBP and SEK hedged in line with policies. A 1% variance in FY14 would have a £0.7m impact, for FY15 £2.3m. 53

APPENDIX 1 2 3

4

Biographies

Harriet Green

Michael Healy

joined the Group as Group CEO on 30 July 2012. Harriet is a global executive with extensive, multi-channel business leadership experience of the worldwide technology and industrial markets. She has driven innovation and strategic transformation through profitable global growth strategies and delivered industry leading results. In addition to being recognises at the National Business Awards 2013 as Leader of the Year, Harriet has just been recognised as the Veuve Clicquot Business Woman of the Year.

joined the Group on 14 May 2012 and became Group CFO on 1 July 2012. Prior to this, he was Group Finance Director of Kwik-Fit Group. Michael has considerable international experience across a broad range of industries and was previously Chief Operating Officer and Finance Director of the Hong Kong listed First Pacific Company Limited and subsequently Chief Financial Officer of ebookers plc.

54

APPENDIX 1 2 3

4

Glossary (1/2) Thomas Cook & corporate

Industry & market

CE

Ancillaries

Continental Europe UK, Continental Europe, Northern Europe

Additional travel services such as in-flight A hotel that can only be found from one meals , in-flight duty free, travel insurance, operator either because it has exclusive care hire insurance, airport parking, airport access or because it has unique features lounges, and airport hotels

The traditional industry way of describing a holiday based on its location or activity (e.g., Sun & Beach, City)

Headroom

Attachment rate

Label

Core markets

Liquidity buffer after anticipated operations and investments

IMS Interim Management Statement

Segments Internal Thomas Cook businesses: UK, France, Continental Europe, Northern Europe, North America, Airlines Germany

Thomas Cook India Indian arm divested in May 2012

Differentiated product

DIY travellers

The percentage of customers adding ancillaries to their booking

Do It Yourself travellers more likely to opt for component travel instead of package holidays

Codeshare

Exclusive distribution

Aviation business agreement where Thomas Cook channels are the only place a flight sold by one airline can be operated where customers can access a given by another airline product

Component booking

Exclusive property

The ability to put together a holiday from one or more stand-alone (and individually priced) beds, seats or other units of inventory

Thomas Cook has access to all the bed nights in the property (either at a Group or country level)

Concept

Ground handling

Holiday type

A customer searchable description for a holiday that carries a consistent set of features that match customer expectations (e.g., City Romance, Family Comfort)

Lean A continuous improvement methodology pioneered by Toyota

Limited range The number of non-exclusive, non-risk hotels that meet our quality control standard that we will contract

Servicing of an aircraft (e.g. refueling) while Load factor An exclusive, customer-facing proposition it is on the ground (usually parked at a Measure of airline utilisation: number of made up a defined set terminal gate) passenger-kilometres travelled as a of features that creates loyalty via percentage of the total seat-kilometres consistent delivery of a holiday experience available

55

APPENDIX 1 2 3

4

Glossary (2/2) Industry & market (continued)

Web & IT

Long-tail

Tailoring

Non-contracted product sourced from third party bed banks

The actions we take to select the channel, A measure of how postings on social media information and product a customer sees so websites are shared e.g. number of likes, retweets and +1s that it meets their needs

More flexible products

Amplification rate

Omni-channel Seamless end consumer experience across multiple retail channels e.g. single pricing on-and off-line

Content management All products that are not traditional packages, Third-party product including non-traditional packages, components Any property or package where Thomas Enables business to manage, track and ancillaries Cook is not exclusive and has not taken risk and source hi-quality, channel-specific content (e.g., faster-loading pictures through pre-commitments Non-traditional package for mobiles, richer pictures/videos for Hotel (either contracted or non-contracted) Tour Operator (TO) tablets) sold with a non-contracted flight Company combining travel, accommoConversion Rate dation and/or entertainment to create a OTA The proportion of users visiting a site who holiday Online Travel Agency go on to make a purchase

PPC

Partnership properties

Social engagement

Hotels owned and operated by a third party, which are exclusive to Thomas Cook

Traditional packaging A pre-defined bundle of seat and bed that is fixed based on largely committed inventory and which can be offered at a given price to a broad range of customers well in advance of the season

Yield Management

Data Warehouse Maximising revenue and profitability on each sale through setting the right price for A central repository for all data, accessible across the business every product in every channel

Pay per click

Product extension Enables the business to sell nontraditional products (e.g., cruises) alongside hotels and flights

SEO Search engine optimisation The proportion of users who have “liked”, commented, or shared our content in just the past 7 days

Virtual contact centre Technology which enables representatives to work from geographically disperse sites

56