THE GROUP AT A GLANCE N O RTH SEA IRELAND GROUP TOUR OPER ATOR UNITED KINGDOM Revenue* Gross margin %** Underlying EBIT** Underlying EBIT %** 11M >7;+& 57*** 2017 2016 7,122m 15.4% 250m 3.5% 6,646m 16.9% 255m 3.8% 190 +D(ǡ 5ã) ž,: "8 GROUP AIRLINE FR ANCE Revenue* EBITDAR margin %** Underlying EBIT** Underlying EBIT %** 18.5M >7;+& 57*** * 2017 2016 3,185m 13.3% 115m 3.6% 2,825m 12.7% 83m 2.9% 93 ã 4 4 ; Segmental revenue of 10,307m does not include (1,300)m of internal revenue, which results in Group revenue of 9,007m. ** The term underlying refers to trading results that are adjusted for separately disclosed items that are significant in understanding the ongoing results of the Group. Separately disclosed items are included on the face of the income statement and are detailed in Note 7 to the Group financial statements. This applies to all references of underlying in this report. Underlying segmental EBIT of 365m does not include corporate costs of (35)m, which results in Group underlying EBIT of 330m. *** Segmental customers of 29.5m does not include 9.3m of internal customers, resulting in Group customers of 20.2m. BAY O F BISCAY
NORWAY SWEDEN FINLAND RUSSIA DENMARK NETHERLANDS GERMANY POLAND BELGIUM CZECH REPUBLIC AUSTRIA SWITZERLAND HUNGARY CHINA MEDITERRANEAN SEA
CUSTOMER AT OUR HEART MAKES US WHO WE ARE OVERVIEW In 2015, we launched a pledge to put our customer back at the heart of everything we do. Our aim is to ensure we do all that we can to give our customers great holidays which inspire them to come back to Thomas Cook. NET PROMOTER SCORE Net Promoter Score is our primary KPI and is explicitly linked to measuring Group and Director performance. +9pts * Overall Group NPS measure 2017: 45.2 (2015: 36.7) * Increase from 2015. +7pts * Own-Brand Hotels and Resorts NPS measure 2017: 38.7 (2015: 31.5) +3pts * Group Airline NPS measure 2017: 26.6 (2015: 23.8) THOMAS COOK GROUP PLC Annual Report and Accounts 2017 1
OVERVIEW OUR CULTURE HELPS TO MAKE US DIFFERENT In 2016, we launched our three Customer Promises: Quality, Service, Reliability. These promises shape everything we do as a business and determine the values against which the performance of all of our 22,000 colleagues is measured. We believe our promises are what set us apart from the competition. QUALITY We are passionate travel experts & have been creating great holiday memories since 1841. SERVICE We ll be there whenever you need us. Our teams are available around the world, 24/7. RELIABILITY We care. You can trust us to always be open and honest with you. We share customer reviews before you book to help you choose the perfect trip for you. We are happy to make you happy & we promise to put you at the heart of everything we do. We always give you all the information you need to make your time away stress-free. We listen & act on your feedback. Your holiday means the world to us. Your money s safe when booking with us. Our teams & the partners we work with are always looking to improve to make your next holiday even better. We d love to welcome you again & are committed to sending you home with great memories of your holiday. We re ATOL protected for peace of mind. 2 THOMAS COOK GROUP PLC Annual Report and Accounts 2017
THOMAS COOK GROUP PLC Annual Report and Accounts 2017 3 OVERVIEW
STRATEGIC REPORT AND OUR STRATEGY IS DRIVING PROFITABLE GROWTH The mantra of Customer at our Heart sits firmly at the centre of our strategy for sustainable growth and our vision to be the most loved holiday company. O U R C O R E S T R A T E G Y CARE Page 18 CONTACT Page 20 HOLIDAYS OPER ATIONAL EFFICIENCIES AND STREAMLINED ORGANISATIONAL STRUCTURE O U R Page 22 F O C U S SERVICES Page 28 PARTNERSHIPS Page 29 4 THOMAS COOK GROUP PLC Annual Report and Accounts 2017
STRATEGIC REPORT > 24-hour quality promise > In-resort resolution for carefree holidays > Expert crisis management > High health & safety standards > Direct personal engagement > Web penetration >Seamless CRM >Rich content OUR PROGRESS IN 2017 > Group Net Promoter Score up by nine points since 2015 > 24-Hour Hotel Satisfaction Promise extended to reach 80% of sun & beach customers in core hotels > Annual health and safety audits on all core hotels > Controlled distribution now 68% > Webshare up 3 percentage points to 46% > UK web sales up 27% and Germany up 22% > 1.7 million companion app downloads > Richer online content for greater inspiration with 112,000 new images, 1,200 new room plans and 520 new hotel videos THE RESULT Increasing customer loyalty and attracting new customers > Thomas Cook Hotels & Resorts for unique experience > Selected high-quality partner hotels >Own Airline > Own-brand hotels sales up 10% for the summer > Moving towards fewer, better quality differentiated hotels a further 310 removed for summer 2018 > Airline seat-only sales up by 16% > Personalised added-extras & ancillaries > Thomas Cook Money > Thomas Cook China with Fosun >Strategic partnerships > Leveraging our brand See more on page 30 > Ancillary sales up a further 10%, reflecting more personalised offers > Launch of Thomas Cook Money to expand financial services offering > Strong first year for Thomas Cook China, growth targets on track > Completed complementary hotel strategy with Expedia alliance and Webjet partnership OUR VISION To be the most loved holiday company THOMAS COOK GROUP PLC Annual Report and Accounts 2017 5