1

Thomas Cook

Our Past & Present

2

The UK & Ireland travel business has a history of over 160 years, and has recently been shaped through a series of mergers & acquisitions

1996

1997

1998

2000

199919951841 2001

2002

Acquired Sunworld,

Neilson and Airworld

Acquired Sunworld,

Neilson and Airworld

Acquired Sunset,

Club 18-30 and

Flying Colours

Acquired Sunset,

Club 18-30 and

Flying Colours

Created JMC brand

for tour operations and airline

Created JMC brand

for tour operations and airline

Developed three-brand strategy for

mass market tour

operations

Developed three-brand strategy for

mass market tour

operations

Sold Global & Financial

Services

(a £47m-profit

business)

Sold Global & Financial

Services

(a £47m-profit

business)

Founded Thomas

Cook

Founded Thomas

Cook

Achieved financial

turnaround

Achieved financial

turnaround

Thomas Cook Travel acquired by

C&N Touristic AG

Thomas Cook Travel acquired by

C&N Touristic AG

Merged with Carlson’s UK

Leisure Group travel

interests

Merged with Carlson’s UK

Leisure Group travel

interests

Thomas Cook in 1995

travel retailer

&niche tour operator

Thomas Cook in 1995

travel retailer

&niche tour operator

2003

3

Ownership Structure

C&N Touristic AG renamed as Thomas Cook AG

Sales within Thomas Cook group1:- Germany 47%

- UK 33%

- West Europe 19%

- International 1%

12.5m passengers carried 28,000 employees

Lufthansa KarstadtQuelle

50% 50%

Thomas Cook AG

100%

Thomas Cook UK & Ireland

Source: Thomas Cook AG Annual Report & Accounts for year-ended 31 October 2003

4

Business: Thomas Cook UK & Ireland

Thomas Cook UK & Ireland

615 high street shops

736 foreign exchange bureaux

7 travel warehouses

3 call centres

Thomascook.com

Thomas Cook TV

Large ‘Affinity’ business

No.1 or 2 in each, except .com

3.0m pax in FY 2003/04

Dedicated Yield Management team

Featuring all major destinations world-wide

Focussed flight-only business

Mass-market (80% of pax) & specialist businesses (20% of pax)

Rebranded as Thomas Cook Airlines UK in April 2003

24 aircraft

No.1 ‘on-time’ charter airline (AUC)

Sales~6,600 FTE

Tour Operations~2,600 FTE

Airline~1,800 FTE

5

Cheaper Holidays

Better quality holidays

More control over what is sold

Less dependency on other suppliers

Guaranteed line of supply

Discounted products

Increased profit for the company

Career opportunities/job swaps

Increased incentive payments

Less dependency on other suppliers

VERTICAL INTEGRATION

Benefits to the Customer

Benefits to us

6

“To Perfect The Personal Leisure Experience”

Our Mission Statement

7

Sales: Recent Developments

648

857

20

Channel Channel

Thomascook.com Video clips of hotels and apartments on selected properties Main website further enhanced in Dec ‘04 for greater speed & usability

Direct-only businesses launched in Jan and Sep ’04 respectively “Weddings” is growing market

Thomas Cook TV Now available on Freeview and at selected times on and

8

Spec. Business: Recent Development

Launched December 2004 Targeting independent leisure

travel market Direct booking channel

Thomas Cook Airlines carry ~700,000 seat-only passengers per annum, most of whom are booking through 3rd party travel agents

Additional trade website to be launched shortly

9

Launched 30 November 2004 The first true dynamic “one

search” from “one place” fully bonded package supplier to enter the market

Focused on allowing agents to tailor-make value-driven packages in front of customers

Spec. Business: Recent Development

10

Launched 1 June 2004 Targeting independent leisure

travel market via the trade

10,000 hotels & apts. to choose from in ~700 destinations

From Croydon to Niagara Falls, basic properties to luxury 5 star resorts

Sourced from Thomas Cook contracts plus stock from consolidators

Spec. Business: Recent Development

11

No.1 ‘on-time’ charter airline (Air Users Council)

Voted best ‘on-time’ airline by Holiday Which? readers

Operated 86% of departures ‘on-time’ (S03)

Average delay time of only 10.7 minutes (S03)

Thomas Cook Airlines UK

Officially the UK’s best performing charter airline!

12

Meet the family - including our Specialist Brands

13

Quality holidays for those who expect more

Fun holidays at great value, hassle free  

The best family holidays

Tour Operations: Three-Brand Strategy for Mass Market

From fourth to second and closing the gap with market leader

14

Defined as being clearly differentiated by its customer base - that difference being clearly valued by that customer base

Tour Operations: Specialist Businesses

Specialist holiday businesses catering for prestige, active, skiing, party and many other market segments

Volume is lower than mass market

Average sales value and margin can be significantly higher

Opportunities for growth (e.g. Neilson BeachPlus)

15

Spec. Business: Recent Development

Launched 20 December 2004 Ultra-quality market

- Personal travel advisor assigned with first-hand experience

- Uncompromising quality & exceptional service

- Distinctive holidays, entirely personalised to cater for individual requirements

16

P

R

O

U

D

Pioneering Our Future

Results Orientated

Obsessed With Customer Service

United As One Team

Driving Robust Decisions