thomas cook group plc annual report  accounts 2010
 thomas cook group plc annual report  accounts 2010
our world of 
opportunity
thomas cook group plc
6th floor south
brettenham house
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london wc2e 7en
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th019cover sectionindd   1 th019cover sectionindd   1 21122010   2312 21122010   2312 visit us at
wwwthomascookgroupcom
the thomas cook group website provides news and 
details of the group’s activities plus links to our 
customer sites and uptodate information including
• corporate news
• presentations
• share price data
• historic annual  sustainability reports
• halfyear results and interim management statements
• news alerts
at a glance
04 our group overview
an overview of the group including 
what we do and our business 
segments
06 our group chief 
executive ofﬁ cer reviews 
the year
manny fontenlanovoa discusses 
our progress during the year
10 our market place
details on the travel market place 
and future trends
12 our strategy
a review of our group strategy and 
progress against it
15 our strategy in action
httpwwwthomascookgroupcom
th019cover sectionindd   2 th019cover sectionindd   2 23122010   1943 23122010   1943 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 1
directors’ report  corporate governance
the members of the board and the group executive 
board and details of the group’s governance and 
directors’ remuneration
directors’ report   business review
the group’s ﬁ nancial and operational performance 
our strategy kpis and key risks
02 our highlights for 2010
03 chairman’s statement
04 group overview
06 group chief executive 
ofﬁ cer’s statement
10 market review
12 strategic review
15 strategy in action
24 principal risks  
uncertainties
26 operating review
38 sustainability
42 financial review 
72 independent
auditors’ report 
73 group income 
statement
74 group statement 
of comprehensive 
income
75 group cash ﬂ ow 
statement
76
group balance sheet
78 group statement of 
changes in equity
79 notes to the ﬁ nancial 
statements
120 company balance 
sheet
121 company cash ﬂ ow 
statement
122 company statement 
of changes in equity
123 notes to the company 
ﬁ nancial statements
130 appendix 1 – key 
performance 
indicators deﬁ nitions
131 shareholder 
information
46 board of directors
48 group executive board
49 corporate governance 
report
59 remuneration report
70 other disclosures
financial statements
audited ﬁ nancial information for the group and key 
information for shareholders
today we are one of the world’s leading travel 
groups with a focused strategy a portfolio 
of marketleading brands a ﬂ exible business 
model and a team of around 31000 people 
who are all committed to our vision of ‘going 
further to make dreams come true’ for our 
customers and delivering sustainable value 
to our shareholders
strengthening 
our business 
and investing 
for growth
contents
th017p1indd 1 th017p1indd   1 21122010 2210 21122010   2210 2 thomas cook group plc annual report  accounts 2010
our highlights from 2010
our ﬁ nancial highlights
1
a robust 
performance
robust ﬁ nancial performance in a challenging year
– revenue down 4 to £8890m 5 decrease at constant currency due to planned winter capacity  
cuts and a softer summer trading environment
– adjusted underlying operating proﬁ t
2
 was £391m 2009 restated £415m only 6 down in a very 
tough year
– substantial increase in proﬁ ts from central europe and airlines germany not enough to offset 
uk decline
outlook
– well positioned to make progress in the current ﬁ nancial year
1  the group statutory ﬁ nancial statements for the year ended 30 september 2010 and prior year comparatives are set out on pages 73 to 119  
2  underlying proﬁ t from operations is deﬁ ned as earnings before interest and tax and has been adjusted to exclude all separately disclosed items it also excludes our share of the results of associates 
and joint ventures adjusted underlying proﬁ t from operations is stated before the margin impact of the volcanic ash cloud
3  the underlying operating proﬁ t margin is the underlying proﬁ t from operations as above divided by the external revenue
4  adjusted underlying basic earnings per share is calculated as net proﬁ t after tax but before all separately disclosed items and the margin impact of the volcanic ash cloud divided by the weighted 
average number of shares in issue during the period
0
2000
4000
6000
8000
10000
revenue
£88901m 41
2009 2010
0
100
200
300
400
500
adjusted underlying 
proﬁt from operations
2 
£3914m 57
2009 2010
0
1
2
3
4
5
underlying operating 
proﬁt margin 
3
41
2009 2010
0
5
10
15
dividend per share 
1075p
2009 2010
0
6
12
18
24
30
adjusted underlying 
basic eps
4
228p 88
2009 2010
0
100
200
300
operating cash ﬂow
£2994m 681
2009 2010
th017p0203indd 2 th017p0203indd   2 21122010 2212 21122010   2212 directors’ report 
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financial 
statements
thomas cook group plc annual report  accounts 2010 3
progress 
on strategic 
initiatives
the group results were impacted by 
the challenging economic and trading 
environment but despite this the group 
delivered a signiﬁ cant improvement in 
cash ﬂ ow performance and the adjusted 
underlying proﬁ t from operations was only 
down 6 on the prior year 
the progress made against a number of 
strategic initiatives such as destination 
management airline synergies and the 
setting up of an online travel agent coupled 
with our successful reﬁ nancing in may will 
serve us well in our drive to grow shareholder 
value the board believes that the decisive 
actions taken to reinforce our uk segment 
will place that business in a stronger position 
for the future
with a trusted brand portfolio and a proven 
ability to manage our business we will 
continue to meet the needs of our customers 
in the future
dividend
the board is recommending a ﬁ nal dividend 
of 70 pence per share which when combined 
with the interim dividend of 375 pence per 
share paid on 8 october 2010 makes a total 
dividend for the year of 1075 pence per 
share whilst we are committed to optimising 
value for our shareholders and understand 
the importance of dividends to them our 
recommendation to maintain the same level 
of dividend reﬂ ects last year’s performance 
in a challenging operating environment the 
total dividend for the year represents a payout 
of 47 of adjusted diluted earnings per 
share and is in line with our policy of paying 
between 40 and 50 of adjusted earnings 
by way of dividend
once approved the ﬁ nal dividend will be 
payable on 7 april 2011 to holders of relevant 
shares registered on 18 march 2011
the board
the board has made solid progress in its 
ﬁ rst year of leading a fully independent 
company we are committed to high standards 
of corporate governance and we are fully 
compliant with the combined code on 
corporate governance we recently conducted 
our annual board evaluation the output of 
which will help further develop board and 
committee effectiveness
during the year we strengthened our board 
with a number of nonexecutive and executive 
appointments peter middleton and dawn 
airey joined the board as independent non
executive directors on 30 november 2009 and 
12 april 2010 respectively on 6 november 
2009 sam weihagen chief executive ofﬁ cer 
northern europe took on the additional role 
of deputy to the group chief executive ofﬁ cer 
and joined the board as an executive director 
paul hollingworth joined the board on 1 
january 2010 as group chief financial ofﬁ cer 
peter marks the group chief executive 
of the cooperative group will join the 
board upon completion of the uk retail 
joint venture with the cooperative group 
and midlands cooperative each of our 
new directors brings a wealth of welcome 
experience to the board’s deliberations
jürgen büser stepped down from the board as 
group chief financial ofﬁ cer on 29 november 
2009 and having recovered well following a 
period of ill health returned to the business to 
take up the role of group strategy director on 
the group executive board nigel northridge 
one of our nonexecutive directors resigned 
from the board on 25 march 2010 to pursue 
broader responsibilities within his portfolio of 
nonexecutive directorships
on behalf of the board i would like to 
thank jürgen and nigel for their contribution 
to the group
at the forthcoming agm i will be standing for 
reelection for a further year the nominations 
committee under the leadership of the senior 
independent director is in the early stages 
of a process to identify my successor with the 
aim of making an announcement during the 
course of the year
executive team
manny fontenlanovoa and his executive 
team have together made robust and 
encouraging progress in a challenging 
marketplace the board would like to 
thank them and conﬁ rm our conﬁ dence 
in their ability to address the challenges 
that lie ahead
employees
our employees remain central to the future 
success of the group there can be no better 
example of dedication to customer service 
than their response to the closure of airspace 
due to the volcanic ash cloud with sound 
values and a range of skills and experience 
we believe they are our key differentiator in a 
highly competitive global industry on behalf 
of the board and shareholders i would like 
to thank them for their dedication and high 
standards which they continue to maintain
the future
based on our solid foundations the actions 
taken in the uk and the progress against a 
wide range of strategic initiatives the board 
is conﬁ dent that the group is well positioned 
to make progress in the current year 
michael beckett
chairman
30 november 2010
our management team has made robust 
and encouraging progress during the year 
despite a weak economic climate and other 
challenging conditions
directors’ report
chairman’s statement
total dividend
1075p
2009 1075p
th017p0203indd 3 th017p0203indd   3 21122010 2212 21122010   2212 4 thomas cook group plc annual report  accounts 2010
directors’ report
group overview
thomas cook group plc is one of the world’s leading leisure travel 
groups with sales of £89 billion and 225 million customers 
we operate under six geographic segments in 21 countries and 
are number one or number two in our core markets 
financial highlights
revenue
£31434m
2009 £30980m
percentage of group revenue
353
adjusted underlying proﬁ t from 
operations
£1239m
2009 £1620m
operating proﬁ t margin
34
2009 52
financial highlights
revenue
£19734m
2009 £21471m
percentage of group revenue
222
adjusted underlying proﬁ t from 
operations
£609m
2009 £504m
operating proﬁ t margin
30
2009 23
financial highlights
revenue
£16984m
2009 £18532m
percentage of group revenue
191
adjusted underlying proﬁ t from 
operations
£867m
2009 £857m
operating proﬁ t margin
48
2009 46
288
contribution to the group
1
202
contribution to the group
1
142
contribution to the group
1
uk including ireland 
india and middle east 
west  east europe central europe
 key facts
• 78 million
2
 passengers
• 1011 retail
3
 outlets 
• 41 aircraft
• controlled distribution 720
• internet distribution 326
 key facts
• 31 million passengers
• 1105 retail outlets 
• 7 aircraft
• controlled distribution 569
• internet distribution 214
 key facts
• 36 million passengers
• 1321 retail outlets 
• controlled distribution 237
• internet distribution 72
strong brand 
awareness and an 
improving retail 
position
we operate under the iconic 
thomas cook brand
brand strength in 
all markets
1 the contribution to the group has been based on the adjusted underlying proﬁ t from operations ﬁ gure of £4292m which excludes 
corporate costs of £378m
2 includes 11m passengers in india and egypt
see appendix 1 on page 130 for key
th017p0405indd 4 th017p0405indd   4 21122010 2213 21122010   2213 directors’ report 
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thomas cook group plc annual report  accounts 2010 5
financial highlights
revenue
£10140m
2009 £10593m
percentage of group revenue
114
adjusted underlying proﬁ t from 
operations
£939m
2009 £866m
operating proﬁ t margin
90
2009 82
financial highlights
revenue
£3525m
2009 £3704m
percentage of group revenue
40
adjusted underlying proﬁ t from 
operations
£97m
2009 £179m
operating proﬁ t margin
26
2009 48
financial highlights
revenue
£9962m
2009 £10612m
percentage of group revenue
4
80
adjusted underlying proﬁ t from 
operations
£541m
2009 £474m
operating proﬁ t margin
51
2009 45
219
contribution to the group
1
126
contribution to the group
1
23
contribution to the group
1
northern europe airlines germany north america
 key facts
• 14 million passengers
• 11 retail outlets
• 11 aircraft
• controlled distribution 844
• internet distribution 607
 key facts
• 57 million
5
 passengers
• 34 aircraft
• approximately onethird of seats
sold inhouse
 key facts
• 11 million passengers
• 48 retail outlets 
• controlled distribution 143
• internet distribution 367
mainstream travel
mainstream travel is primarily the sale 
of charter holiday packages where two or 
more components of travel such as ﬂ ights 
hotels transfers and inresort support 
are bundled together in advance and 
sold to customers
independent travel
independent travel is a key area of growth 
independent travel is where consumers 
build up the individual components of 
their own trip either by themselves or 
with the help of an agent we are building 
our position both in retail and wholesale 
independent travel 
travelrelated ﬁ nancial services
travelrelated ﬁ nancial services broadly 
fall into the categories of travel money 
travel assurance and travel ﬁ nance 
products they are typically high margin 
products and are sold alongside other 
holiday components
what we offer
 
leading market 
position and 
number 1 brands
strong proﬁ table 
stand alone airline
strong position in 
independent
travel
3 includes 224 retail outlets in india and egypt
4 the percentage of group revenue for airlines germany has been calculated using the external revenue ﬁ gure of £7084 million
5 includes inhouse passengers of 2m
th017p0405indd 5 th017p0405indd   5 21122010 2213 21122010   2213 6 thomas cook group plc annual report  accounts 2010
directors’ report
group chief executive ofﬁ cer’s statement 
responding 
to the 
challenge
we recognised at the outset that 
200910 would be demanding 
given the uncertain economic 
outlook and accordingly we 
took early action to deal with the 
challenges while we made good 
progress in many of our operating 
segments and delivered a strong 
improvement in operating cash 
ﬂ ow trading in the uk was even 
tougher than anticipated i am 
conﬁ dent that the actions we 
have now taken to reinforce 
the uk business together with 
continued progress on our 
strategic initiatives leave us well 
positioned to make progress in 
the current year
manny fontenlanovoa
group chief executive ofﬁ cer
th017p0615indd 6 th017p0615indd   6 21122010 2215 21122010   2215 directors’ report 
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statements
thomas cook group plc annual report  accounts 2010 7
 adjusted underlying proﬁ t
from operations
group results
group revenue for the 12 months ended 
30 september 2010 was £8890m 2009 
£9269m down 4 5 on a constant 
currency basis mainly reﬂ ecting planned 
capacity reductions in our winter 200910 
mainstream travel programme and lost sales 
as a result of the volcanic ash cloud incident 
adjusted underlying proﬁ t from operations 
was £391m 2009 £415m this was the 
result of reduced capacity and the impact of 
weaker sterling on ﬂ ying and accommodation 
costs which was partially mitigated by cost 
initiatives in accommodation purchasing 
airline operations and general overheads 
despite the challenging conditions our 
central europe and airlines germany 
businesses recorded much improved results 
of £61m 2009 restated £50m and £54m 
2009 £47m respectively these mainly 
resulted from product and efﬁ ciency 
improvements in both businesses and 
reduced depreciation charges in airlines 
germany the northern europe proﬁ t of 
£94m 2009 restated £87m was also up and 
west  east europe which reported a proﬁ t 
of £87m 2009 restated £86m did well 
considering the difﬁ cult economic conditions 
in some of their markets
the uk segment faced a challenging year 
in part due to signiﬁ cant foreign exchange 
headwinds and softer demand over the 
summer and as a result adjusted underlying 
operating proﬁ t was £124m down 24 on 
last year continued mainstream overcapacity 
in the canadian market impacted north 
america’s proﬁ ts which fell to £10m 
2009 restated £18m 
reducing exceptional costs is a key area of 
focus for the group excluding volcanic ash 
costs of £53m other exceptional charges fell 
from £217m to £132m as the integration 
costs associated with the mytravel merger 
fell away further detail can be found in the 
financial review on pages 42 to 45 and in 
note 6 to the group ﬁ nancial statements 
the net interest charge for the year remained 
broadly ﬂ at at £116m
overall the group delivered a statutory proﬁ t 
before tax of £42m compared with £45m last 
year and the reported proﬁ t after tax was 
£3m 2009 restated £9m 
the adjusted underlying earnings per share 
was 228p 2009 restated 250p the basic 
loss per share was 03p 2009 restated 
earnings per share 08p
strong cashflow performance
during the year there has been a concerted 
effort across the group to produce a 
sustainable improvement in cash ﬂ ow this 
has largely been delivered through improved 
working capital management by raising 
customer deposit levels accelerating holiday 
balance payments and harmonising supplier 
payment terms this has been partly offset by 
increased hotelier deposits required in some 
cases and a reduction in creditors
as a result of this and despite the difﬁ cult 
trading environment the group achieved a 
signiﬁ cant improvement in cash ﬂ ow with 
a £121m increase in operating cash ﬂ ow 
to £299m 
the group cash outﬂ ow before changes 
in debt was reduced to £117m compared 
with an outﬂ ow of £314m in the prior year 
group net debt at year end was £804m 
and headroom on banking facilities at 
30 september 2010 was £846m
successful refinancing 
during the year we successfully replaced 
our previous bank facility with new funding 
the new arrangements which amount 
to £1700m in total comprise a £1050m 
banking facility and £650m of bonds sterling 
equivalent taken together they provide the 
group with a simpler borrowing framework 
longer and varied maturities and greater 
ﬂ exibility and funding going forward
volcanic ash impact and 
our response
the volcanic ash cloud from iceland closed 
the majority of airspace above northern 
europe for almost six days in april and it 
then took up to ﬁ ve days before the vast 
majority of our customers had been returned 
home further isolated closures in april and 
may impacted individual markets 
i am extremely proud of the way in which 
all our people at thomas cook pulled 
together to respond to this crisis the scale 
of the event was vast involving c180000 
customers stranded in resort c190000 
customers unable to depart on holiday 
and over 1000 cancelled ﬂ ights our well
rehearsed emergency procedures sprung 
into action and the team led a professional 
operation to reassure and assist customers 
while simultaneously working with industry 
colleagues and the aviation authorities to 
coordinate a return to normal ﬂ ying
the letters of thanks and praise that we 
received from customers are testament to 
the dedication of our people and the event 
highlighted again the added security of 
booking a package holiday 
uk restructuring and high street 
travel merger
given the challenges experienced in the uk 
and the uncertain outlook we undertook a 
comprehensive review of the uk cost base 
and the structure of our uk operations 
towards the ﬁ nancial year end
this review has resulted in a reorganisation 
of the uk into three divisions mainstream 
independent and retail to reduce complexity 
and give greater accountability and visibility 
of operations 
 customer service
central europe
71
2009 72
northern europe
72
2009 72
airlines germany
73
2009 74
uk
76
2009 76
west  east europe
79
2009 79
north america
93
2009 91
source standardised customer satisfaction measure based on 
mainstream customer surveys in each of our source markets
the closure of european airspace in 
april 2010 had a signiﬁ cant impact 
on the operations of the thomas cook 
group as well as incurring £529m 
of direct exceptional costs to 
manage the welfare and repatriate 
our customers stranded in resort 
management estimates that the lost 
margin from not being able to operate 
our ﬂ ight programme during this time 
was £292m given the uniqueness 
of this incident and the distortion 
management believes the margin 
loss causes to our results we have 
excluded this margin impact from 
the underlying proﬁ t from operations 
that we discuss in both the group 
chief executive ofﬁ cer’s statement and 
the operating and financial reviews 
we refer to this proﬁ t measure as 
“adjusted underlying proﬁ t from 
operations” unadjusted numbers have 
been provided in the statutory income 
statement and related notes
th017p0615indd 7 th017p0615indd   7 21122010 2215 21122010   2215 8 thomas cook group plc annual report  accounts 2010
directors’ report
group chief executive ofﬁ cer’s
statement continued
this deal represents the last signiﬁ cant 
consolidation opportunity in uk travel 
combining two of the industry’s strongest 
and most complementary travel brands and 
distribution networks to reach out to a wider 
customer base than either company could 
achieve independently
it will unlock annualised synergies within 
the merged entity of £35m at a oneoff cost 
of £30m and further upstream synergies in 
thomas cook from additional mainstream 
and independent product sales of £10m 
thomas cook will own 665 of the merged 
entity the cooperative group will own 
30 and midlands cooperative will own 
35 whilst the merger is still subject to 
competition clearance we are working 
with the relevant authorities to achieve an 
expedited clearance
we believe that the restructuring combined 
with the merger with the cooperatives 
will greatly strengthen our uk business 
going forward 
confidence in our strategy
despite the challenging trading conditions 
this year we remain conﬁ dent that the global 
travel market will return to growth and that 
our strategy is the right one to capture that 
growth and deliver value to our shareholders
our strategy is focused on strengthening our 
mainstream package holiday and ﬁ nancial 
services businesses and investing in areas of 
future growth primarily independent travel 
and new markets 
during the year we began work on a number 
of strategic initiatives that we believe have 
the potential to raise the group operating 
proﬁ t margin by a further 100 to 150 basis 
points over the medium term
the progress on our key strategic initiatives is 
highlighted below and a full strategic review 
is set out on pages 12 to 14
mainstream travel
the strategy for our mainstream travel 
business is to improve product mix whilst 
reducing operating costs thus driving 
improvement in margin during the year we 
made good progress on a number of fronts
in relation to costs we established a new 
group destination management function 
with direct control over more than £1bn of 
accommodation spend and average group 
accommodation costs as a percentage of 
sales reduced yearonyear by 120 basis 
points to 325 on aviation by working 
together across our segments our airlines 
delivered £19m incremental airline synergies 
from fuel efﬁ ciency improvements and joint 
tendering in addition good cost reductions 
were achieved in all of our operating 
segments assisted by group procurement
in terms of product mix we improved 
our share of differentiated and exclusive 
products in all major markets and through 
the acquisition of öger tours we have 
strengthened our offering to turkey from 
germany we also increased controlled and 
online distribution to 52 2009 51 and 
23 2009 22 respectively
thomas cook group operates a ﬂ eet of 93 
aircraft with an average age of 12 years the 
group has identiﬁ ed signiﬁ cant operational 
savings particularly from maintenance 
and improved fuel efﬁ ciency that can be 
achieved by renewing and harmonising its 
71 narrow body aircraft within a common 
ﬂ eet following a comprehensive review the 
group has selected the airbus 320 family of 
aircraft accordingly the group will begin a 
ﬁ veyear narrow body aircraft replacement 
programme starting in december 2012 and 
phased in line with the planned retirement 
of the existing ﬂ eet the replacement 
programme will deliver optimum ﬂ exibility 
by sourcing new narrow body aircraft 
through a combination of ﬁ rm and ﬂ exible 
orders direct with the manufacturer and 
though accessing the aircraft leasing market 
a review of the wide body ﬂ eet replacement 
requirements will be undertaken during the 
current year
as part of the replacement programme 
the group has reached a memorandum 
of understanding with airbus for 12 new 
 see pages 46 to 48 for full biographies
from left to right 
back row jürgen büser pete constanti thomas döring paul hollingworth ralf teckentrup and paul wood 
front row ian derbyshire peter fankhauser michael friisdahl manny fontenlanovoa sam weihagen and derek woodward
“our strategy is focused on strengthening our 
mainstream package holiday and financial services 
businesses and investing in areas of future growth 
primarily independent travel and new markets”
our group executive board
as a result of the restructuring we expect 
to generate annualised overhead savings 
of £40m to £50m through the reduction of 
over 500 managerial and support roles the 
renegotiation of supplier costs and reduction 
in buying requirements and by consolidating 
and upgrading our it infrastructure these 
and other savings will be achieved in full 
in the ﬁ nancial year ending 30 september 
2012 helping to mitigate input cost pressures 
and any further deterioration in the trading 
environment we estimate that at least £30m 
of savings will be achieved in the current year 
and that the cost of approximately £20m to 
implement all of the planned savings will be 
incurred in the current year 
the uk business will also beneﬁ t from our 
plan to merge our uk high street travel 
and foreign exchange business with that 
of the cooperative group and midlands 
cooperative this will create the uk’s largest 
high street travel network with around 
1300 shops 
th017p0615indd 8 th017p0615indd   8 21122010 2215 21122010   2215 directors’ report 
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thomas cook group plc annual report  accounts 2010 9
back in 1896 thomas cook escorted 
uk customers to the ﬁ rst modern 
olympic games in athens as an 
ofﬁ cial supporter of the london 2012 
olympic and paralympic games 
thomas cook will be selling short 
breaks including ofﬁ cial event tickets 
and accommodation to the london 
2012 games 
airbus 321 aircraft scheduled to be delivered 
in 2014 with a list price of us96m each 
together with options to purchase further 
aircraft from 2015 these aircraft are subject 
to substantial price concessions from the list 
price the group will remain a heavy user 
of operating leases and it is anticipated that 
directly purchased aircraft will be ﬁ nanced 
through sale and leaseback agreements with 
thirdparty lessors 
for the ﬂ eet as a whole it is estimated 
that the reduced running costs of the new 
aircraft will more than ﬁ nance the increased 
ownership costs it is not anticipated that the 
overall ﬂ eet size will increase as a result the 
group expects to sign ﬁ nal contracts early in 
the new year
travelrelated ﬁ nancial services
travelrelated ﬁ nancial services contributed 
14 of group adjusted underlying operating 
proﬁ t in the uk we increased our share of 
the foreign exchange market from 13 to 
15 and became the number one global 
provider of cash passports supplied by 
travelex tapping into the rising popularity 
of prepaid currency cards additionally 
we boosted our online travel insurance 
capability by acquiring essential travel
independent travel and online
travel agent ota
our objective with independent travel is to 
grow both the top and bottom line largely 
through the development of our european 
online travel agent ota 
in the year we saw independent travel’s 
share of group sales grow from 25 to 27 
and passengers grow by 5
signiﬁ cantly we established the ota 
organisation under the leadership of thomas 
döring attracting high calibre people 
from well known internet companies and 
delivered sales with a gross booking value 
of £1bn an increase of 22 on the previous 
year this is a vital area for the group and our 
ﬁ rst priority is to optimise sales of our own 
package holidays through the ecommerce 
channel we are also developing plans to 
broaden our offering of city breaks and 
accommodation with beneﬁ ts expected to 
ﬂ ow over the next two to three years 
emerging markets
as a group we continue to see large potential 
opportunity in new particularly emerging 
markets where travel and gdp growth rates 
far outstrip our existing markets we already 
operate in india egypt and eastern europe 
and in 2010 13m customers travelled with 
us from these markets 
on 25 november 2010 thomas cook 
reached agreement to form a joint venture 
with vao intourist one of russia’s most 
renowned travel companies thomas cook 
will acquire a 501 stake in the joint venture 
for a consideration of us45m comprising 
us35m in new thomas cook shares and 
us10m in cash the joint venture will 
include intourist’s outbound domestic and 
inbound tour operating operations as well 
as its travel retail network the joint venture 
provides thomas cook with an entry into the 
fastgrowing russian market with a strong 
local partner subject to antitrust clearance 
in russia and certain other conditions the 
joint venture is expected to complete in or 
before february 2011
sustainable future
to secure our future success for the long term 
we need to address the longterm challenges 
facing the travel industry we have made 
progress during the year in all areas of our 
sustainability strategy including maintaining 
a committed and engaged workforce 
providing a great holiday experience for 
customers whilst ensuring their security 
and safety improving fuel efﬁ ciency and 
monitoring the carbon emissions from 
our aircraft and encouraging sustainable 
practices within our supply chain a full 
report on our progress is provided on pages 
38 to 41 
proud of our people
during the year we welcomed paul 
hollingworth as group chief financial ofﬁ cer 
paul’s appointment has strengthened the 
leadership team signiﬁ cantly and we have 
beneﬁ ted from his previous experience as 
chief financial ofﬁ cer of a number of major 
uk listed companies
the group executive board has continued 
to show strong leadership and we made a 
number of changes that enable us to manage 
more effectively going forward in november 
2009 jürgen büser having recovered well 
following a period of ill health returned to 
the business to take up the role of group 
strategy director pete constanti previously 
chief executive ofﬁ cer mainstream travel 
uk was appointed to the new group role of 
chief executive ofﬁ cer group destination 
management and ian derbyshire previously 
chief executive ofﬁ cer independent travel 
uk was appointed chief executive ofﬁ cer uk 
in may 2010 thomas döring chief executive 
ofﬁ cer west  east europe expanded his 
role taking on additional responsibility for 
spearheading our ota initiative
ludger heuberg  chief executive ofﬁ cer 
group operations who provided interim 
support as acting group chief financial 
ofﬁ cer and alexis colesbarrasso group 
director pr  communications stepped 
down to pursue other opportunities i would 
like to thank them both for their valued 
input over the years 
as part of the uk restructuring we had 
to part with a number of our colleagues 
following the year end the downsizing in no 
way reﬂ ects upon their ability or passion for 
the business and they go with our gratitude 
and best wishes for the future 
 next stop london 2012
i would also like to personally thank all our 
people for their hard work and commitment 
to the group over the last year it has been 
challenging at times and the effort and 
energy they have shown has been invaluable
current trading and outlook
our business has proved its resilience in 
challenging times 
as we enter the current year although the 
uk environment remains uncertain we are 
encouraged by a better market environment 
in our major continental and scandinavian 
markets winter bookings are off to a good 
start and although early in the cycle 
summer bookings are developing well 
we have taken further actions to simplify 
and streamline our uk business which 
will result in signiﬁ cant cost savings on an 
annualised basis helping to mitigate input 
cost pressures and any further deterioration 
in the trading environment
we are conﬁ dent that the actions we have 
now taken to reinforce the uk business 
together with continued progress on our 
strategic initiatives leave us well positioned 
to make progress in the current year
manny fontenlanovoa
group chief executive ofﬁ cer
30 november 2010
th017p0615indd 9 th017p0615indd   9 21122010 2215 21122010   2215 10 thomas cook group plc annual report  accounts 2010
an interview with 
manny fontenlanovoa 
group chief executive 
officer discussing some 
of the challenges and 
trends affecting the 
travel market
qa
directors’ report
market review
positioned
well for 
growth
macro environment and 
international tourism 
international tourism is closely correlated 
to economic growth and has enjoyed strong 
and sustained growth for most of the last 
three decades indeed the overwhelming 
trend has been for international leisure 
travel to outpace the general economy 
the global ﬁ nancial crisis in 2008 and 
the subsequent contraction in gdp and 
employment across many economies 
combined with fuel and currency volatility 
has restrained growth in recent years 
figure 1
over the last 12 months we have started to 
see the economic indicators stabilise and 
begin to show signs of recovery in many of 
our major source markets in continental 
and northern europe this gives us some 
conﬁ dence that volumes in these markets 
will return to growth in the current ﬁ nancial 
year the uk economy remains fragile and 
in this source market we have taken cost 
cutting and consolidation measures to 
prepare ourselves for another potentially 
difﬁ cult year
core market trends
thomas cook’s top ten current source 
markets comprise the uk germany france 
the netherlands belgium the four nordic 
countries and canada together these markets 
account for 33 or £274bn figure 2 of the 
total global leisure travel market our market 
segment the travel intermediary segment 
which is made up of travel agents and tour 
operators totalled some £96bn in 2009 and is 
expected to grow by an average of 28 each 
year in real terms to reach £110bn by 2014 
figures 3 and 4 
within the travel intermediary market 
expectations are that the package holiday 
will remain a mainstay of the market 
growth will be higher in independent travel 
and online bookings will grow faster than 
ofﬂ ine for both mainstream and independent 
products our strategy is designed to capture 
value from each of these key trends 
mainstream vs independent 
in 2009 mainstream package holidays 
comprised £29bn or 30 of the total 
intermediary market figure 4 customers 
continue to ﬁ nd the value convenience 
and protection offered via the package 
holiday attractive with modest but further 
real growth of around 21 per annum 
forecast to 2014 
independent travel where customers 
put together their own ﬂ ight transfer and 
accommodation arrangements is large 
and growing fast comprising £63bn of the 
intermediary market in 2009 independent 
travel is forecast to grow by 32 per 
annum to 2014 
online growth
in terms of distribution the shift towards 
online continues with internet estimated to 
increase its share of total market sales from 
25 to 31 figure 5 
although the dynamic nature of independent 
travel makes the online environment ideal 
for travel research and purchases package 
customers too are increasingly alive to the 
convenience of online
consumer preferences 
our research demonstrates that consumers 
continue to prioritise a main holiday abroad 
and that they are looking for both quality 
and value 
these preferences have fuelled demand 
for medium haul holidays to destinations 
outside of the eurozone especially to turkey 
and egypt all inclusive holidays which give 
customers greater budget certainty have also 
continued their rise 
emerging market growth 
while our top ten source markets comprise 
approximately 33 of the world leisure travel 
market today the bric economies currently 
account for only 9 figure 2 travel growth 
rates in these emerging economies however 
far outstrip growth in our established source 
markets supported by higher than average 
gdp growth rates and an increasingly 
afﬂ uent population for example between 
2008 and 2012 outbound travel in russia is 
expected to grow 15 to 20 on average each 
year with an equivalent growth rate of 10 to 
15 in china 
new markets and particularly the emerging 
economies offer a huge potential growth 
opportunity for thomas cook we have 
already established positions in india 
egypt and eastern europe and continue to 
look for entry opportunities where we can 
leverage our expertise and capture value for 
shareholders at the right price in november 
2010 we announced our plans to enter 
the russian market in a joint venture with 
vao intourist
as the economic climate improves forecasters 
expect the international tourism market 
to return to growth the rate of recovery is 
expected to vary across markets with some 
economies emerging more conﬁ dently from 
recession than others
th017p0615indd 10 th017p0615indd   10 21122010 2215 21122010   2215 directors’ report 
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directors’ report 
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statements
thomas cook group plc annual report  accounts 2010 11
q   what would happen if the 
icelandic volcano erupted 
again 
a – we can be reasonably 
conﬁ dent that there wouldn’t 
be the same level of disruption 
at the onset of the volcanic ash 
incident the aviation authorities 
had very limited experience of 
how to maintain safe ﬂ ying in 
such an environment working 
closely together the industry 
now has a much greater 
understanding of the challenge 
and the aviation authorities 
have agreed zoning procedures 
that enable safe ﬂ ying to 
continue in unaffected areas
q  if online distribution is growing 
so fast why increase your 
exposure to the high street in 
the uk through the merger with 
the cooperative group and 
midlands cooperative 
a – we’re participating in the 
online growth trend through 
the development of our 
online travel agent ota 
however ofﬂ ine distribution 
remains an important channel 
for both traditional package 
holiday sales and more ﬂ exible 
independent travel products 
industry data shows that ofﬂ ine 
distribution could continue to 
account for up to 70 of total 
sales in 2014 we therefore need 
to maintain a strong but 
highly efﬁ cient high street 
network the deal with the 
cooperatives enables us to 
do that by improving the 
reach of our network while 
reducing our costs
q  what impact do you think the 
new air passenger duties in 
germany and the uk will have 
on demand 
a – taxes increase the cost of 
ﬂ ying and this can obviously 
reduce demand we are 
particularly disappointed as the 
tax increases purport to support 
the green agenda when in fact 
they will do nothing to increase 
or incentivise more efﬁ cient 
ﬂ ying we continue to target 
high aircraft utilisation fuel 
and operating efﬁ ciency all 
of which help keep the cost 
of ﬂ ying as low as possible 
to support demand
the global travel market
the following graphs illustrate the global leisure travel market they highlight historic growth in leisure travel relative to gdp 
growth and the current size of the world leisure travel market
100
150
200
250
300
350
08 06 04 02 00 98 96 94 92 90 88 86 84 82 80
figure 1
world gdp growth and international tourist arrivals 19802009
intl tourist arrivals
real world gdp
note  numbers indexed to year 1980
source unwto world tourism barometer imf world economic outlook
figure 2
world leisure travel market 2009
1
2
3
4
5
6
7
8
1 uk belgium
 france germany
 the netherlands
2 nordics
3 canada
4 other europe
5 brics
6 us
7 japan
8 rest of world
thomas cook core markets
1
other markets
£820bn
258
48
28
244
87
84
30
221
source unwto euromonitor thomas cook management
 analysis and estimates 
travel intermediary market core market
1
 trends
thomas cook operates in the travel intermediary segment of the leisure travel market the following graphs illustrate the size 
of the intermediary market in our core markets
1
 and the relative growth of independent travel and online bookings
figure 3
overall travel market 2009
£4bn
independent
travel
£63bn
mainstream
travel
£29bn
2014 2009
£5bn 11
2
independent 
travel
£73bn 32
2
£110bn 28
2
£96bn
mainstream
travel
£32bn 21
2
£4bn
online
£24bn
ofﬂine
£68bn
2014 2009
£5bn 11
2
£110bn 28
2
£96bn
online
£34bn 73
2
ofﬂine
£72bn 11
2
figure 5
online growth
online growth is predicted to 
be faster than ofﬂ ine growth in 
mainstream and independent
figure 4
mainstream v independent
direct
suppliers
£178bn
independent
travel
£63bn
travel
intermediaries
£96bn
mainstream
travel
£29bn
total
£274bn
financial
services
£4bn
source euromonitor
1 top ten source markets today comprising uk germany france belgium the netherlands 
the four nordic countries and canada
2 real compound annual growth rate 2009 – 2014
the mainstream travel market will 
continue to grow in real terms 
however independent travel will 
drive the majority of growth
there are two distinct 
segments in the 
leisure travel market 
direct suppliers and 
travel intermediaries 
direct suppliers are 
the airlines hotels 
and cruise companies 
that sell directly to 
the customer thomas 
cook operates in the 
travel intermediary 
segment made up of 
travel agents and tour 
operators
th017p0615indd 11 th017p0615indd   11 21122010 2215 21122010   2215 12 thomas cook group plc annual report  accounts 2010
our strategy has continued to serve us well
and offers plenty of opportunity for growth
delivering against 
our strategy
directors’ report
strategic review
overview of strategy  
inspired by the vision “we go further to 
make dreams come true” our strategy has 
remained clear and constant focused around 
strengthening our existing businesses and 
investing for future growth
during the year we began work on a number 
of strategic initiatives that have the potential 
to deliver revenue growth and lift the group 
operating proﬁ t margin by 100 to 150 basis 
points over the medium term 
our strategic initiatives focus on delivering 
against our growth drivers maximising value 
in mainstream travel and ﬁ nancial services 
and investing in areas of future growth 
primarily independent travel and emerging 
markets in parallel we continue to look for 
opportunities that can accelerate our journey 
by capturing growth and value through 
mergers and acquisitions
1 mainstream travel
the strategy for our mainstream business 
is to improve product mix whilst reducing  
costs thus driving an improvement in 
margin during the year we made good 
progress in managing our accommodation 
and aviation costs we also continued 
to introduce new differentiated product 
concepts and drive distribution gains
cost efﬁ ciencies  
accommodation and nonfuel aviation 
costs are £29bn and £25bn respectively 
so a relatively modest saving can have a big 
impact on our performance our approach 
is to leverage our group buying scale in both 
these areas coordinating action across all 
segments to deliver beneﬁ t
group destination management
at the outset of this year we targeted a 
signiﬁ cant reduction in accommodation costs  
to support demand in the difﬁ cult economic 
climate and mitigate currencyrelated 
inﬂ ation resulting from sterling weakness 
a new group destination management 
function was set up to coordinate strategy 
and hotelier negotiations with our top 75 
hotel partners and in our fastestgrowing 
destinations of turkey and egypt with 
direct control of more than £1bn of 
accommodation spend the new function 
has been instrumental in reducing group 
accommodation costs as a percentage of 
sales by 120 basis points to 325 the new 
function will also support more exclusive 
access to hotel properties and consolidate 
inbound agency relationships and in
destination support staff across the group
airline synergies
on aviation we began implementation of 
an ambitious synergy plan to unlock savings 
of £35m per annum by working more 
closely together our airlines had delivered 
£19m of incremental savings during the year 
through a combination of fuel efﬁ ciency 
measures and improved purchasing of fuel 
crew accommodation ground handling and 
maintenance services plans are in place to 
purchase catering and rotables support more 
effectively which will deliver the balance of 
savings in this and the following ﬁ nancial 
years 
product mix and trading margin gains 
product mix is a key factor in driving 
margins and we have already made good 
progress by recalibrating our programmes 
towards medium haul destinations all 
inclusive resorts and more 4 and 5 star 
holidays as part of this we also work to 
increase the proportion of differentiated 
uniqueconcept holidays and exclusive 
hotels we offer
this year the french market had particular 
success with a new concept club jumbo 
club jumbo turns the perceived pricing 
model for package holidays on its head 
offering low prices to early bookers and 
increasing prices close to departure with 
its lively entertainment programme 
this new concept attracted a total of 
30000 customers 5 of the total french 
customer base taking more than 60 of 
bookings online
overall our west  east europe segment 
increased sales of differentiated and 
exclusive product from 41 to 45 the uk 
segment from 32 to 35 and central europe 
from 24 to 28
distribution gains
during the year the group increased in
house distribution of mainstream product to 
52 2009 51 and online distribution to 
23 2009 22
2 travelrelated financial services
our key objective in ﬁ nancial services is to 
drive sales through cross selling of foreign 
exchange and travel insurance products in 
the period ﬁ nancial services contributed 
around 14 of group adjusted underlying 
operating proﬁ t in the uk we increased our 
share of the retail foreign exchange market 
from 13 to 15 and established ourselves 
as the number one global provider of cash 
passports supplied by travelex with a 150 
increase in sales
3 independent travel
our objective with independent travel is to 
grow both the top and bottom line largely 
through the development of our european 
online travel agent ota during the year 
independent travel continued to grow 
strongly increasing to 27 of group revenue 
from 25 last year with passengers up by 5
online travel agent ota 
unlike the us the european ota market 
remains relatively fragmented and thomas 
cook has the opportunity to achieve a top 
three market position accordingly we 
are targeting gross bookings with a value 
of around £35bn over the medium term 
although sales will be accounted for on a net 
commission basis
we already have many of the capabilities 
to succeed as an ota a strong travel brand 
a large customer base an existing online 
platform inhouse expertise and market
leading sun inventory
th017p0615indd 12 th017p0615indd   12 21122010 2216 21122010   2216 directors’ report 
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statements
thomas cook group plc annual report  accounts 2010 13
during the year we brought those capabilities 
together in a central ota organisation 
headquartered in london and gave that 
organisation responsibility for driving forward 
our main ota and branded tour operator sites 
in the uk germany france the netherlands 
and belgium the new structure combines 
regional directors with responsibility for 
delivering the online plan for each of the ﬁ ve 
markets with a strong central organisation 
spanning key commercial infrastructure and 
business support functions comprising some 
180 employees in total the new organisation 
brings together specialists from within 
thomas cook with new talent from across 
the online industry
signiﬁ cant progress was made in enhancing 
the presentation and streamlining the 
booking path on our main websites and in 
the current year we will upgrade the invisible 
but crucial technology platform this will 
enable us to increase the inventory and 
improve the presentation we offer to our 
customers in parallel with the technology 
upgrade we are also focused on building up 
our city hotel inventory to complement our 
current strength in sun and beach hotels
taken together the sites within the scope of 
the ota delivered gross bookings with a value 
of £1bn in the ﬁ nancial year just ended an 
increase of 22 on the previous year 
in its initial stages the results of the ota will 
continue to be reported within our existing 
segments but we will give more visibility to 
its performance over time
4 mergers  acquisitions ma
through ma and partnerships our objective 
is to capitalise on consolidation opportunities 
in our current markets and leverage our 
expertise to capture growth opportunities 
in emerging markets
consolidation opportunities in 
current markets
during the year and following the year 
end we have announced three transactions 
in our existing markets
in the uk we announced the merger 
of our high street retail travel and foreign 
exchange network with that of the 
cooperative group and midlands 
cooperative on completion the merger 
will create the uk’s largest high street 
travel network with over 1300 stores 
by bringing together two complementary 
brands and geographic networks the 
merged entity will reach more customers 
than either company could achieve 
independently it is planned to unlock 
synergies of at least £35m in the merged 
entity and a further £10m upstream 
synergies within thomas cook from 
additional sales of our mainstream and 
product technology customer insight brands
enablers
financial rigour
growth drivers
strengthening our business and investing for growth
strategic objectives
vision
pioneering 
our future
results 
orientated
obsessed with 
customer service
united as 
one team
driving robust 
decisions
people and the proud values
pr o u d
strengthen our existing businesses invest in future growth
1 maximise value of 
mainstream travel
2 become the leading 
travelrelated ﬁ nancial 
services provider
3 become a leading 
independent travel 
provider
4 capture growth and 
value through mergers 
 acquisitions and 
partnerships
group revenue
71
2009 74
group revenue
17
2009 16 
group revenue
27
2009 25
contributor to all 
other growth drivers
key objectives
• drive average selling price 
and trading margin growth
• deliver accommodation 
aviation and operating 
cost savings
• improve share of inhouse 
distribution and increase 
online distribution
key objectives
• grow foreign exchange 
sales and market share
• launch new products
• improve crosssell rates
key objectives
• establish thomascookcom 
as a leading online 
travel brand
• build growth of wholesale 
independent travel products
• grow scheduled holidays
key objectives
• capitalise on consolidation 
opportunities in current 
markets
• leverage expertise to capture 
growth in emerging markets
th017p0615indd 13 th017p0615indd   13 21122010 2216 21122010   2216 14 thomas cook group plc annual report  accounts 2010
independent travel products thomas 
cook will hold 665 of the merged entity 
the cooperative group will hold 30 and 
midlands cooperative will hold 35 whilst 
the merger is still subject to competition 
clearance we are working with the relevant 
authorities to achieve an expedited clearance
in germany we acquired öger tours a tour 
operator specialising in package holidays to 
turkey this acquisition which completed 
in october 2010 strengthens our position as 
the second largest travel group in germany 
and further increases our presence in turkey 
a strategically important destination for the 
entire group today öger tours carries some 
400000 passengers by bringing öger into 
the thomas cook family we estimate we 
can generate synergies in excess of €8m per 
annum through operational savings more 
inhouse ﬂ ying with condor and combined 
accommodation purchasing
finally in ﬁ nancial services we boosted our 
capability by acquiring essential travel a 
leading provider of online travel insurance 
and ancillary products in the uk
growth in emerging markets
alongside these transactions in our 
established markets in november 2010 we 
reached agreement to enter the fastgrowing 
russian travel market in a joint venture with 
vao intourist one of russia’s oldest and 
most renowned travel companies the joint 
venture will include intourist’s outbound 
domestic and inbound tour operating 
operations as well as its retail travel network 
it will focus on expansion in russia and the 
other cis countries 
the russian market has strong demand for 
beach and family holidays particularly to 
turkey and egypt over six million russians 
went on overseas packaged holidays last year 
and the market is expected to grow strongly 
in the coming years given increasing wealth 
amongst russia’s population of 142 million 
and strong economic growth driven by the 
natural resources sector
thomas cook will initially acquire a 501 
stake in the new joint venture company 
for a maximum consideration of us45m 
the joint venture is conditional upon 
antitrust clearance in russia and certain 
other conditions and is expected 
to complete in or before february 2011
key performance indicators
in order to measure progress against our strategy the board and senior 
management team monitor a range of key performance indicators 
directors’ report
strategic review
continued
group operating proﬁ t margin underlying
aim increase group operating proﬁ t margin by 
100 to 150 basis points over the medium term
progress margin fell to 41 principally as a result 
of difﬁ cult trading in the uk segment
independent travel
aim increase independent travel sales as a 
proportion of group revenue
progress independent travel sales increased 
to 27 of group revenue
online travel agent ota
aim develop a top three position in the european 
ota market targeting gross bookings with a value 
of around £35bn
progress central ota established delivering gross 
bookings with a value of £1bn
group destination management
aim to leverage group buying power reducing 
accommodation costs as well as protecting and 
enhancing the product portfolio
progress accommodation costs reduced from 
337 to 325 of group revenue 
airline synergies
aim deliver £35m annualised savings in group 
aviation costs nonfuel and ongoing efﬁ ciency
progress £19m incremental annualised savings 
achieved in year ended 30 september 2010
controlled distribution
aim increase inhouse distribution of mainstream 
travel products
progress inhouse sales of mainstream travel 
products increased to 52
financial services
aim protect and grow ﬁ nancial services 
contribution to group proﬁ t
progress travelrelated ﬁ nancial services 
increased to around 14 of group adjusted 
underlying proﬁ t from operations
2010
2009
group revenue 
25
27
xx
0
0
2010
2009
gross bookings value £m
1046
857
0
2010
2009
group revenue 
325
337
0
2010
2009
annualised savings £m
21
2
0
2010
2009
share of inhouse distribution 
52
51
0
2010
2009
group proﬁt 
13
14
0
2010
2009
group operating proﬁt margin 
45
41
growth driver 1 – mainstream travel
growth driver 2  travelrelated ﬁ nancial services
growth driver 3  independent travel
group ﬁ nancial results
th017p0615indd 14 th017p0615indd   14 21122010 2216 21122010   2216 directors’ report 
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statements
thomas cook group plc annual report  accounts 2010 15
strategy in action
16 customer satisfaction
looking after our customers is essential in realising our strategy and we achieve
this by implementing our vision of going further to make dreams come true
18 online travel agency
ecommerce is an increasingly important channel for our
business and one of our key drivers for growth
20 destination management
we have established a new group destination management function to help
maximise the value of mainstream travel
22 airline synergies
we are strengthening our aviation services
by improving fuel efﬁ ciency and consolidating suppliers
p20
p18
p22
p16
th017p0615indd 15 th017p0615indd   15 21122010 2217 21122010   2217 16 thomas cook group plc annual report  accounts 2010
strategy in action
customer satisfaction
looking after our 
customers
we have continued to meet and exceed customer expectations 
in spite of the challenging year and the complications with the 
volcanic ash cloud
th017p1623indd 16 th017p1623indd   16 21122010 2218 21122010   2218 directors’ report 
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thomas cook group plc annual report  accounts 2010 17
the spring of 2010 saw unprecedented disruption and travel chaos 
resulting from the widespread closure of airspace over many 
european countries when the eyjafjallajökull volcano in iceland 
erupted clouds of ash reached heights of more than 30000 feet and 
understandably there was uncertainty on an international level as to 
how these exceptional conditions could affect aircraft 
the initial uninterrupted shutdown over much of northern europe 
lasted for almost six days from 15 april to 20 april and was followed 
by further intermittent isolated closures in april and may
the airspace closures meant 180000 thomas cook customers were 
stranded in resort and a further 190000 customers were unable to 
depart on holiday
thanks to the commitment of our international team and our 
strong supplier relationships all over the world thomas cook 
customers were well looked after during this difﬁ cult time 
moreover the group was back operating its full tour operating 
programme within 36 hours of the ban being lifted and we were 
able to repatriate all of our customers who were stranded overseas 
within ﬁ ve days of the airspace reopening
the volcanic ash cloud
our response to customers
• we immediately invoked our tried and tested emergency 
procedures and set up specialised incident rooms from 
which to organise our response to the crisis
• communication with our customers was paramount in 
this everchanging situation and we set up telephone 
hotlines as well as continuously updating our websites
• we employed a variety of alternative methods of 
transport to repatriate stranded customers chartering 
coaches and even a cruise ship to get people home
• all 180000 stranded customers arrived home within 
ﬁ ve days of the airspace being reopened
• feedback from customers was hugely positive with a  
large number taking the time to write to thank us 
th017p1623indd 17 th017p1623indd   17 21122010 2219 21122010   2219 18 thomas cook group plc annual report  accounts 2010
strategy in action
progress against our online travel agency initiative
• central ota organisation headquartered in london 
staffed and up and running
• ota organisation leads development of main ota and
branded tour operator sites in uk germany france 
the netherlands and belgium
• improvements made to existing sites to increase visitor
numbers and sales conversion rates
• technology upgrade path agreed to enhance sites for 
the future
• action taken to enhance city hotel inventory
• gross booking value of c£1bn growth of 22 on prior year
thomas cook can 
create a unique
market position
one
customer view
one
proposition
all
travel needs
th017p1623indd 18 th017p1623indd   18 21122010 2219 21122010   2219 directors’ report 
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statements
thomas cook group plc annual report  accounts 2010 19
online travel agency
creating a 
top three 
european 
online travel 
agent
alongside our more established 
sales channels ecommerce is an 
increasingly important channel for 
our business and one of our key 
drivers for growth
during the year we announced our ambitious plans to develop a full service 
online travel agent ota where our ultimate aim is to achieve a top three 
position in europe rivalling the likes of the current market leaders expedia 
and opodo
the ota is a major strategic objective for the group as we see potential for 
transactions with a gross booking value of c £35bn and signiﬁ cant proﬁ t 
unlike the american market which is already dominated by two main 
players the european ota landscape is relatively fragmented and 
growing fast
we already have many of the capabilities to succeed a strong brand 
a large customer base an existing online presence and market leading 
sun inventory our ota team is building our portfolio of city hotels and 
enhancing our technology platform both key to being successful in 
this market
as one of the world’s best known and most trusted travel brands we’re 
uniquely placed to become a truly leading site this is one of the most 
exciting and revolutionary developments in our recent history 
targeting transactions with 
c £35bn

gross booking value
  sales to be accounted for on a net commission basis
th017p1623indd 19 th017p1623indd   19 21122010 2219 21122010   2219 20 thomas cook group plc annual report  accounts 2010
strategy in action
destination management
historically operations in our destinations have been performed
by sourcemarket teams in each of the local markets we’ve now 
introduced a more centralised approach to unlock value
leveraging our group
buying power 
th017p1623indd 20 th017p1623indd   20 21122010 2219 21122010   2219 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 21
unlock value through greater 
group coordination
marketleading customer service will continue to be at the 
forefront of everything we do
our groupwide approach to destination management will
• create and embed a ‘united as one team’ overseas culture
• deliver consistently high standards of customer service 
in resort
• capitalise on market strengths and further share 
best practice
• increase inresort revenue
• remove duplication and drive greater efﬁ ciency
• minimise costs
average group accommodation costs
reduced 120 
basis points
to 325 of sales
as an international travel group transporting customers to more 
than 40 countries worldwide thomas cook has an unrivalled 
opportunity to make the most of the scale of its business by 
working together across its markets 
during the year we made real progress in the establishment of a 
group destination management function which aims to leverage 
our group buying power and standardise customer service in our 
resorts around the world 
most signiﬁ cantly the new function will take the lead in 
coordinating strategy and hotelier negotiations with the group’s 
key international hotel chains and in our fastest growing 
destinations of turkey and egypt not only is this approach 
designed to reduce accommodation costs but to support top 
line growth by negotiating exclusivity on properties that are 
in demand from our customers
in addition group destination management will streamline the 
number of incoming agents we work with in each of our key 
destinations and introduce a single management structure to 
coordinate inresort customer service and sales from across most
of the group the function will also build a central accommodation 
content database that our source markets can share
th017p1623indd 21 th017p1623indd   21 21122010 2219 21122010   2219 22 thomas cook group plc annual report  accounts 2010
strategy in action
airline synergies
realising 
benefits 
from our 
international 
airlines
working together our airlines 
are achieving signiﬁ cant savings 
by improving fuel efﬁ ciency and 
consolidating suppliers
thomas cook group operates a ﬂ eet of 93 aircraft carrying 17 million 
passengers each year and employing 6800 people the ﬂ eet is split into 
four airlines the uk airline the german airline ﬂ ying under the condor 
brand the scandinavian and belgian airlines
by joining forces to share best practice and leverage their combined 
buying power the airlines identiﬁ ed £35m of annual savings that 
could be made in aviation operating costs by the end of the year 
£19m of incremental savings within that target had been achieved 
these savings come on top of the £34m of synergies already 
achieved prior to 2009 
£35m
£34m £69m
additional annual synergies 
identiﬁed by project
total annual synergies already 
achieved prior to 2009
1
1 synergies realised in catering £5m handling £8m maintenance £6m
 aircraft and passenger insurance £5m and by seasonal optimisation of aircraft £10m  
total airline synergies
103
th017p1623indd 22 th017p1623indd   22 21122010 2219 21122010   2219 directors’ report 
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directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 23
airline synergy measures
of the many synergy measures identiﬁ ed several were 
implemented successfully during the year the top eight will 
on completion have delivered over 60 of the targeted savings 
these mainly comprise
• joint tender for inﬂ ight catering
• joint negotiations for ground handling contracts
• joint tender for rotables and rotables support
1
• fuel efﬁ ciency improvements
• joint tender for departure control system
1 spare parts which are not consumed but repaired and returned to stock
 for reuse
th017p1623indd 23 th017p1623indd   23 21122010 2219 21122010   2219 24 thomas cook group plc annual report  accounts 2010
directors’ report
principal risks and uncertainties
thomas cook group plc like all businesses faces risks and 
uncertainties as we conduct our operations and execute our 
strategy we place great importance on internal control and risk 
management and the system and framework that the board has 
put in place is described in the corporate governance report on 
pages 57 to 58 
the table below lists the principal risks and uncertainties that may affect the group and also highlights the mitigating actions that are 
being taken the content in the table however is not intended to be an exhaustive list of all the risks and uncertainties which may arise
operational and strategic risks
 risk impact mitig a tion
downturn in the economies of 
our source markets leading to 
a reduction in demand for our 
products and services
pressure on volumes 
and margins
•  signiﬁ cant capacity reductions through our actions to maintain margins
• flexible and assetlight business model
–  approximately 5 of our hotel capacity is committed at the beginning of the 
summer season
–  around 90 of our uk tour operator ﬂ ying requirements are undertaken by our own 
ﬂ eet allowing further ﬂ exibility to cut capacity without affecting our own airline 
–  changes in capacity can be accommodated late into the booking season
• utilising our buying power to manage accommodation costs across the group 
• tight cost discipline throughout the organisation with ability to cut costs further 
if necessary cost synergies identiﬁ ed between our various airlines
• efﬁ ciency improvements such as automated yield management systems
 further information can be found on pages 6 to 37
fall in demand for traditional 
package tours and competition 
from internet distributors and 
lowcost airlines
reduction of revenue 
and pressure on margins
•  strategy to establish thomas cook as a leading provider of independent travel and 
ﬁ nancial services
• continue to grow our position in the independent sector
• improvement of our online capabilities across the group and targeting signiﬁ cant long
term growth in the european online travel agency market
• shift to higher margin all inclusive resorts
• ensuring our own inhouse airlines remain cost competitive
• focus on medium haul destinations that are not as economically viable for lowcost airlines
• continued focus on expanding into new emerging markets 
further information can be found on pages 6 to 37
environmental concerns damage to the company’s 
brand and reputation
•  focus on environmental concerns development and approval of a sustainability strategy 
by the health safety  environmental committee
• full sustainability programme as detailed in the sustainability report
further information can be found on pages 38 to 41 and in the full online sustainability report
which can be found from february 2011 on wwwthomascookgroupcomsustainability
a major health and safety 
incident
 signiﬁ cant impact on 
reputation as a trusted 
brand would lead to 
reduction in bookings
•  health and safety management embedded in each business with central 
coordinating function complemented by destination audits
• group health and safety strategy in place developed and approved by the health safety  
environmental committee
further information can be found on pages 38 to 41 and in the full online sustainability report
which can be found from february 2011 on wwwthomascookgroupcomsustainability
loss of or difﬁ culty in replacing 
senior talent
unplanned loss of critical 
talent from key positions 
adversely impacting 
business performance 
both in the short and 
medium term
•  regular succession and talent reviews within each business segment
• identiﬁ cation of key roles in line with business continuity plans
• succession planning established for senior roles – periodic review by the board
• competitive package and career development opportunities
 further information can be found on pages 38 and 40
th017p2425indd 24 th017p2425indd   24 21122010 2221 21122010   2221 directors’ report 
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directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 25
operational and strategic risks continued
 risk impact mitig a tion
business interruption business disruption and 
loss of proﬁ ts
• established business continuity plan now in place with several tests carried out
during the year
performance failure by 
outsourced partners
business disruption and 
loss of proﬁ ts
• business continuity plan and service level agreements in place
natural catastrophe including 
closure of airspace 
loss of business and risk 
of loss of life or injury 
to customers andor 
employees as a result of  
natural disasters
• tried and tested emergency procedures in place to react quickly to the situation including 
evacuation if necessary
• ability to switch to other markets and change capacity at short notice
further information can be found on pages 7 16 and 17
financial risks
 risk impact mitig a tion
com modity risk fuel foreign 
currency and interest rate risks 
costs incurred may not be 
recovered from customers
brochure prices do not 
reﬂ ect actual cost of travel
interest cost uncertainties
•  actively managed boardapproved hedging and treasury policies 
further information can be found on pages 42 to 45 
and in note 23 to the financial statements
liquidity and counterparty
credit risks
group is unable to meet 
its ﬁ nancial commitments 
as they fall due
•  actively managed boardapproved treasury policy
• new £17bn reﬁ nancing agreed in may 2010 increased maturity proﬁ le and diversiﬁ ed 
funding sources
• focus on cash management throughout the organisation and regular review of counterparties
further information can be found on pages 42 to 45 
and in note 23 to the financial statements
tax risk inability to utilise losses 
resulting in higher 
taxation charges
•  compliance with boardapproved tax policy
• regular monitoring of forecasts and high risk areas
further information can be found in note 25 to the financial statements
pension liabilities size of deﬁ cit may restrict 
investments in the 
business
• broadly diversiﬁ ed pension fund with limited exposure to single asset classes
• pension scheme assets and liabilities are closely monitored
• agreed timescales for funding any deﬁ cit 
• our uk deﬁ ned beneﬁ t schemes are under review
further information can be found in note 35 to the financial statements
breakdown in internal controls  inability to operate loss 
of proﬁ t
• system of internal control in place which is continually monitored
• internal audit function
further information can be found in the corporate governance report on pages 49 to 58
other risks
 risk impact mitig a tion
political military terrorist 
security and health risks in 
source markets and key tourist 
destinations
reduction of revenue 
and loss of proﬁ t
•  ongoing monitoring by management
• flexible and assetlight business model provides ability to switch to other markets and 
change capacity at short notice
competition law and antitrust noncompliance with 
competition laws could 
result in substantial ﬁ nes 
and loss of reputation
• awareness of competition law raised across the group with speciﬁ c training programme for 
senior management
• internal audits monitor procedures and report ﬁ ndings
legal and regulatory risks 
especially in respect of airline 
operating licences insurance 
and ﬁ nancial services sectors 
and legislative impacts
inability to obtain 
operating andor 
route licences leading 
ultimately to cessation 
of operation increased 
regulation will add extra 
costs to holidays
•  active legal and regulatory management programme in place
• ongoing programme to review airline operations and safety processes 
th017p2425indd 25 th017p2425indd   25 21122010 2222 21122010   2222 uk at a glance
financial highlights
1
key performance indicators
fy10 fy09 change
mass market risk
passengers
†
54
capacity
††
49
average selling price

43
load factor
†††
04
brochure mix

116
controlled distribution
‡‡
720 696 34
internet distribution
‡‡
326 300 87
product mix
fy10 fy09 fy08
medium haul 75 72 65
4 and 5 star 47 44 41
all inclusive 50 41 31
exclusive and differentiated 35 32 –
brands 
mainstream distribution independent
“2010 was a challenging year for thomas 
cook uk through a combination of 
continuing improvements in product mix 
savings achieved by restructuring and the 
synergies that will be realised through our 
high street distribution merger with the 
travel business of the cooperatives we
are conﬁ dent we have taken the correct 
action to ensure the segment returns to 
proﬁ table growth”
ian derbyshire
chief executive ofﬁ cer
uk
directors’ report
operating review
uk 
0
1000
2000
3000
4000
revenue

£31434m 15
2009 2010
0
1
2
3
4
5
underlying operating
proﬁt margin

34 2009 52 
2009 2010
0
50
100
150
adjusted underlying proﬁt 
from operations

£1239m 235
2009 2010
1 the group statutory ﬁ nancial statements for the year ended 30 september 2010 and prior year comparatives are set out on pages 73 to 119
see appendix 1 on page 130 for key 
26
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directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 27
future drivers of margin improvement 
• mainstream product mix improvements 
• yield management improvements
• independent product volume growth
• uk restructuring and continued focus on cost reduction
• synergies resulting from the high street travel retail merger 
with the cooperatives
segment performance
the uk has experienced a tough year against 
a difﬁ cult market and economic backdrop 
with adjusted underlying operating proﬁ t 
falling to £1239m 2009 restated £1620m 
and underlying operating margin down to 
34 2009 52
in anticipation of the difﬁ cult trading 
conditions management reduced the overall 
capacity on sale by 49 with winter down 
13 and summer held reasonably ﬂ at in 
light of signiﬁ cant capacity reductions in the 
previous summer 
despite the reduced capacity and the 
impact of the volcanic ash cloud revenue 
was slightly up yearonyear as a result of 
higher selling prices in both the mainstream 
and independent businesses and the full 
year effect of acquisitions made this year 
and last year mainly essential travel and 
gold medal 
the volcanic ash cloud and resultant closure 
of airspace had a signiﬁ cant impact on the 
april ﬂ ying programme but also a knockon 
effect on demand throughout the summer 
season lost sales as a result of the volcanic 
ash cloud are estimated to be around £55m 
with margin adversely affected by £164m 
the direct costs of the volcanic ash cloud 
incident which have been included within 
exceptional operating items were £243m 
the volcanic ash cloud good early summer 
weather across much of the uk and the 
uncertain economic outlook meant that 
summer trading was softer than expected 
and the increases we achieved in selling 
prices were not sufﬁ cient to compensate for 
other trading challenges 
one such challenge was the weakness 
of sterling which management estimate 
led to an increase in our foreign currency 
denominated costs mainly fuel aircraft lease 
costs and accommodation costs of around 
£160m yearonyear just over half of this 
was compensated for by lower underlying 
dollar fuel prices and our successful supplier 
negotiations most notably with hoteliers 
in addition we realised £10m of airline 
synergies which helped to partly offset some 
of the trading downside 
the performance of our independent 
businesses during the year has been mixed 
gold medal and hotels4u have traded 
reasonably but other areas have found 
conditions difﬁ cult
our businesses in india and egypt which are 
included in the uk segment for reporting 
purposes ended the year well showing signs 
of recovery from the global recession that 
impacted in the prior year and the ﬁ rst half 
of this year 
our share of controlled distribution grew by 
34 in the year to 720 the main driver 
for this increase was our share of internet 
distribution which grew by 87 to 326
market dynamics
the uk economy began a slow 
recovery from recession and the 
market was characterised by 
demand softness euro and us dollar 
denominated accommodation and 
ﬂ ying costs were adversely affected by 
weak sterling 
over 42000 customers enjoyed one of our aquamania holidays a new 
product concept featuring 15 fabulous hotels each with its own integrated 
water park 
th017p2637indd 27 th017p2637indd   27 21122010 2225 21122010   2225 central europe at a glance
financial highlights
1
key performance indicators
fy10 fy09 change
mass market
passengers
†
10
 flight inclusive 22
 nonﬂ ight inclusive 73
average selling price

45
controlled distribution
‡‡
237 245 33
internet distribution
‡‡
72 74 27
“central europe delivered a strong 
performance improving both underlying 
operating proﬁ t and margin the result 
beneﬁ ted from last year’s restructuring”
peter fankhauser
chief executive ofﬁ cer
central europe
directors’ report
operating review
brands
central europe
0
500
1000
1500
2000
2500
revenue

£19734m 81
2009 2010
0
1
2
3
4
5
underlying operating
proﬁt margin

30 2009 23
2009 2010
0
20
40
60
80
100
adjusted underlying proﬁt 
from operations

£609m 208
2009 2010
1 the group statutory ﬁ nancial statements for the year ended 30 september 2010 and prior year comparatives are set out on pages 73 to 119
see appendix 1 on page 130 for key 
28
th017p2637indd 28 th017p2637indd   28 21122010 2225 21122010   2225 directors’ report 
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directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 29
future drivers of margin 
improvement 
• strong brand awareness
• continued ﬂ exibility in capacity and 
destination
• continued focus on differentiated 
product
• growth in dynamic packaging 
• integration of öger tours acquisition 
and further market consolidation
segment performance
our central european segment has delivered 
a good result this year and experienced strong 
trading in the late summer months the 
adjusted underlying proﬁ t from operations 
was £609m 2009 restated £504m up 21 
on the prior year the underlying margin also 
improved signiﬁ cantly from 23 to 30 
the overall margin we achieved in germany 
including airlines germany improved from 
34 to 41
currencyadjusted revenue was down 7 
yearonyear largely as a result of lower 
nonﬂ ight inclusive passengers and lower 
selling prices particularly in the ﬂ ight
inclusive mainstream business reﬂ ecting 
lower hotel and ﬂ ight costs our dynamic 
packaging business successfully grew volume 
at increased prices 
lost sales as a result of the volcanic ash 
cloud are estimated to be around £13m 
with margin adversely affected by £23m 
the direct costs of the volcanic ash cloud 
incident which have been included within 
exceptional operating items were £56m
despite lower revenue underlying gross 
proﬁ t excluding the impact of volcanic 
ash and changes in translation rates was 
broadly ﬂ at yearonyear as we successfully 
negotiated with suppliers to reduce hotel 
and ﬂ ying costs and improved our utilisation 
of purchased ﬂ ight capacity 
the overall improvement in adjusted 
underlying proﬁ t from operations of £105m 
which includes £12m adverse impact from 
exchange translation is therefore largely 
attributable to savings in overhead costs 
following the restructuring programmes we 
undertook last year and our continued focus 
on driving down costs 
controlled distribution fell slightly in the year 
to 237 as sales through inhouse shops 
were adversely impacted by the collapse of 
arcandor which resulted in the closure of the 
neckermann technik center shops and many 
of the karstadt shops with the remaining 
karstadt shops no longer being under our 
control our proportion of internet sales 
stayed broadly similar to last year at 72 
market dynamics
the german economic environment 
improved markedly through the year 
with gdp and consumer sentiment 
showing good growth and helping to 
lift demand in the second half 
turkey continues to grow in popularity as a holiday destination for customers of our central europe 
segment this year we strengthened our offering to turkey through the acquisition of the turkish 
specialist tour operator öger tours
th017p2637indd 29 th017p2637indd   29 21122010 2225 21122010   2225 west  east europe at a glance
financial highlights
1
key performance indicators
fy10 fy09 change
mass market
passengers
†
63
 flight inclusive 47
 nonﬂ ight inclusive 87
average selling price

08
controlled distribution
‡‡
569 511 114
internet distribution
‡‡
214 157 363
“despite the challenging economic backdrop 
the west  east markets delivered a strong 
ﬁ nancial performance improving underlying 
operating proﬁ t and margin this was 
achieved through a combination of product 
innovation careful capacity management 
and cost savings resulting from last 
year’s restructuring”
thomas döring 
chief executive ofﬁ cer 
ecommerce and west  east europe
directors’ report
operating review
brands
west  east europe
0
400
800
1200
1600
2000
revenue

£16984m 84
2009 2010
0
1
2
3
4
5
underlying operating
proﬁt margin

48 2009 46
2009 2010
0
20
40
60
80
100
adjusted underlying proﬁt 
from operations

£867m 12
2009 2010
1 the group statutory ﬁ nancial statements for the year ended 30 september 2010 and prior year comparatives are set out on pages 73 to 119
see appendix 1 on page 130 for key 
30
th017p2637indd 30 th017p2637indd   30 21122010 2225 21122010   2225 directors’ report 
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directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 31
future drivers of margin 
improvement 
• strong brand awareness
• continued ﬂ exibility in capacity and 
destination
• continued focus on differentiated and 
exclusive product
• consolidation of retail and tour 
operating share in france following 
jettours acquisition
•  focus on cost efﬁ ciency
segment performance
our west  east european segment has 
delivered a robust performance this year 
despite the difﬁ cult economic conditions 
that prevail in some of their markets the 
adjusted underlying proﬁ t from operations 
at £867m 2009 restated £857m increased 
by £10m and the underlying margin 
improved from 46 to 48
currencyadjusted revenue was down 7 
yearonyear as a result of lower volumes and 
selling prices in france we made a strong 
recovery from the slow ﬁ rst half trading 
performance with a volume increase in short 
haul in the second half we ended the year 
with volumes 5 down and selling prices ﬂ at 
volumes were down 13 in belgium where 
recovery from the global recession has been 
slower than in many european markets 
and selling prices were up slightly in the 
netherlands passenger numbers increased 
yearonyear by 4 but selling prices were 
down 3 in poland the largest of the 
eastern markets passengers were down 9 
but selling prices were strong up 7
lost sales as a result of the volcanic ash 
cloud are estimated to be around £21m 
with margin adversely affected by £47m 
the direct costs of the volcanic ash cloud 
incident which have been included within 
exceptional operating items were £140m
adjusted underlying proﬁ t from operations 
was £10m higher than the prior year 
however this includes an adverse exchange 
translation impact of £55m adjusting for 
this the proﬁ t increased by £65m largely as 
a result of savings in overhead costs following 
the extensive restructuring programmes 
we have undertaken across all the western 
markets these restructuring programmes 
and our continued focus on driving down 
costs resulted in approximately £24m of 
overhead savings yearonyear 
following a concerted effort the west  
east segment has experienced strong growth 
in the year in exclusive and differentiated 
products and controlled and internet 
distribution controlled distribution now 
stands at 569 whereas the proportion 
of sales through the internet grew by some 
363 to 214 
market dynamics
in the west european markets the 
economic environment in france and 
the netherlands improved towards 
the end of the year although belgium 
remains challenging the east 
european markets are now beginning 
to show signs of improvement
the earlier you book the less you pay that’s the central promise of our new concept club jumbo 
spanning ﬁ ve clubs across four countries with a streamlined online booking platform club jumbo 
attracted 30000 customers in its ﬁ rst year of operation
th017p2637indd 31 th017p2637indd   31 21122010 2225 21122010   2225 northern europe at a glance
financial highlights
1
key performance indicators
fy10 fy09 change
mass market risk
passengers
†
41
capacity
††
38
average selling price

29
load factor
†††
03
brochure mix

46
controlled distribution
‡‡
844 827 21
internet distribution
‡‡
607 541 122
“we operate in sweden denmark norway 
and finland this year the segment 
delivered a solid result with operating proﬁ t 
and margin improvement this was achieved 
by optimising our vertically integrated model 
and continuing to focus on our exclusive and 
differentiated product”
sam weihagen
chief executive ofﬁ cer northern europe  deputy 
to the group chief executive ofﬁ cer
directors’ report
operating review
brands
northern europe
0
200
400
600
800
1000
1200
revenue

£10140m 43
2009 2010
0
2
4
6
8
10
underlying operating
proﬁt margin

90 2009 82
2009 2010
0
20
40
60
80
100
adjusted underlying proﬁt 
from operations

£939m 84
2009 2010
1 the group statutory ﬁ nancial statements for the year ended 30 september 2010 and prior year comparatives are set out on pages 73 to 119
see appendix 1 on page 130 for key 
32
th017p2637indd 32 th017p2637indd   32 21122010 2226 21122010   2226 directors’ report 
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directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 33
drivers of margin 
improvement 
• leading market position 
• strong brand awareness
• vertically integrated model
• high proportion of unique 
concept hotels
• strong inhouse and internet 
distribution 
• on board tax free sales
• cost efﬁ cient aircraft
segment performance
our northern european segment has 
delivered another strong result this year 
despite a slow start to the year the adjusted 
underlying proﬁ t from operations was 
£939m 2009 restated £866m up 8 
on the prior year the underlying proﬁ t 
margin which remains industryleading 
also improved from 82 to 90 
currencyadjusted revenue was down 3 
yearonyear largely as a result of capacity 
reductions average selling prices in local 
currencies were up 3 yearonyear 
lost sales as a result of the volcanic ash cloud 
are estimated to be around £7m with margin 
adversely affected by £22m the direct costs 
of the volcanic ash cloud incident which 
have been included within exceptional 
operating items were £59m
underlying gross proﬁ t excluding the impact 
of volcanic ash and changes in translation 
rates was slightly down yearonyear as 
underlying rate reductions in hotel and 
ﬂ ying costs were not quite enough to offset 
the adverse impact of foreign currency 
on those hotel and ﬂ ying costs and the 
reduced volumes
however a continued cost focus together 
with a favourable exchange translation effect 
from sek to sterling of £66m ensured the 
adjusted underlying proﬁ t from operations 
improved by £73m 
northern europe continues to lead the 
group with regards controlled and internet 
distribution and has yet again experienced 
strong growth in this key area controlled 
distribution now accounts for some 844 of 
sales up from 827 and the proportion of 
internet sales grew 122 to 607
improvements to our ving website have been instrumental in 
increasing internet distribution by a further 122 to 607
market dynamics
demand for summer holidays was 
affected by unseasonably warm 
weather and the volcanic ash cloud 
in key booking months consumer 
sentiment has been resilient in most 
markets and continues to improve 
in sweden and norway recovery is 
slower in denmark
th017p2637indd 33 th017p2637indd   33 23122010 1932 23122010   1932 north america at a glance
financial highlights
1
key performance indicators
fy10 fy09 change
mass market risk
passengers
†
27
capacity
††
18
average selling price

85
load factor
†††
10
brochure mix

22
controlled distribution
‡‡
143 141 14
internet distribution
2‡‡
367 381 37
“proﬁ ts in our north america business 
which operates predominantly in 
canada were adversely affected by 
the impact of continued overcapacity 
in the mainstream package holiday 
market the independent businesses 
performed reasonably well”
michael friisdahl
chief executive ofﬁ cer 
north america
directors’ report
operating review
brands
mainstream distribution independent
north america
0
100
200
300
400
revenue

£3525m 48
2009 2010
0
1
2
3
4
5
underlying operating
proﬁt margin

26 2009 48
2009 2010
0
4
8
12
16
20
adjusted underlying proﬁt 
from operations

£97m 458
2009 2010
1 the group statutory ﬁ nancial statements for the year ended 30 september 2010 and prior year comparatives are set out on pages 73 to 119
see appendix 1 on page 130 for key 
2 internet distribution percentage includes independent travel bookings
34
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directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 35
future drivers of margin 
improvement 
• grow independent volumes and reduce 
reliance on mainstream
• increase inhouse distribution of 
holiday products
• reduce mainstream ﬂ ying costs by 
working together with new aircraft seat 
supplier
• continue to grow contribution from 
ﬁ nancial services
segment performance
our north american segment has endured 
a challenging year with continued over
capacity in the mainstream market severely 
impacting margins despite these challenges 
however we were able to achieve an 
adjusted underlying proﬁ t from operations 
of £97m 2009 £179m the underlying 
margin was 26 2009 48 
currencyadjusted revenue was down 14 
yearonyear this reduction largely reﬂ ects 
lower average selling prices achieved mainly 
in the mainstream business together with 
a reduction in tour operator capacity in 
addition the disposal of alumni holidays in 
the prior year accounted for 3 of the year
onyear revenue reduction lost sales as a 
result of the volcanic ash cloud are estimated 
to be around £1m with margin adversely 
affected by £06m 
the underlying gross proﬁ t decreased year
onyear in our mainstream business as rate 
reductions achieved on hotel and lower fuel 
costs were not sufﬁ cient to offset the impact 
of reduced capacity lower average selling 
prices and the adverse impact of foreign 
currency on hotel costs the collapse of our 
largest aircraft seat provider skyservice 
also had a detrimental impact on the 
mainstream business
the independent business which now 
accounts for more than 70 of passengers 
in the north america segment performed 
reasonably well in the year some price 
pressure was experienced as a result of 
the economic climate but greater product 
diversiﬁ cation and lower volatility meant that 
the impact was much less than that felt in 
the mainstream sector
overhead cost savings stemming from the 
restructuring and integration programmes we 
undertook in the previous years ensured that 
some of the margin deterioration was offset 
however as a result of the deterioration 
in trading performance management is 
conducting a further review of the cost base 
and organisation structure with the intention 
of substantially reducing overheads
controlled distribution in our mainstream 
business has remained broadly similar to the 
prior year at 143 whilst our share of total 
sales over the internet fell slightly to 367 
we anticipate a reversal of this trend when 
we launch our new website in january 
travelgenie our dynamic packaging engine continues to revolutionise the booking process 
offering travel agents and consumers more choice at the best possible price travelgenie has 
exceeded all expectations and now accounts for more than 20 of our independent tour sales
market dynamics
the canadian economy has been 
relatively resilient throughout the 
economic downturn and consumers 
continue to show strong interest 
in leisure travel however there 
is substantial overcapacity in the 
mainstream market which is why our 
focus is on the growing independent 
travel sector
th017p2637indd 35 th017p2637indd   35 21122010 2226 21122010   2226 airlines germany at a glance
financial highlights
1
key performance indicators
fy10 fy09 change
revenue
 revenue – external

£7084m £7408m 44
 revenue – internal

£2878m £3204m 102
 total revenue

£9962m £10612m 61
capacity
††
19
yield

58
seat load factor
†††
19
sold seats
‡‡‡
 thomas cook tour operators 17
 3rd party tour operators 28
 external seats only 28
 total sold seats 06
sold seats
‡‡‡
 europe exclcities 05
 long haul 07
 total sold seats 06
“condor is a strong standalone airline 
in a highly competitive market condor 
was proﬁ table for a sixth successive year 
through a combination of successful 
capacity management a wellmanaged 
long haul programme and further 
comprehensive cost savings”
ralf teckentrup
chief executive ofﬁ cer 
airlines germany
directors’ report
operating review
airlines germany
0
2009 2010
200
400
600
800
1000
1200
revenue

£9962m 61
0
2
4
6
8
underlying operating
proﬁt margin

51 2009 45
2009 2010
0
10
20
30
40
50
60
adjusted underlying proﬁt 
from operations

£541m 141
2009 2010
brands
1 the group statutory ﬁ nancial statements for the year ended 30 september 2010 and prior year comparatives are set out on pages 73 to 119
see appendix 1 on page 130 for key 
36
th017p2637indd 36 th017p2637indd   36 21122010 2226 21122010   2226 directors’ report 
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directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 37
drivers of margin 
improvement 
• signiﬁ cantly increased load factors
• high productivity in the summer season 
• strong long haul sales
• ongoing efﬁ ciency programmes
• elimination of unproﬁ table routes
segment performance
our airlines germany segment has delivered 
a good set of results this year and in 
line with our german tour operator has 
experienced strong trading in the late 
summer months the adjusted underlying 
proﬁ t from operations was £541m 2009 
£474m up 14 on the prior year the 
underlying margin also improved from 
45 to 51 
currencyadjusted total revenue was down 
5 yearonyear revenue was adverse due 
to lower seat prices achieved especially from 
internal and thirdparty tour operators due 
to reduced fuel surcharges and competitive 
pricing in the market in addition in 
anticipation of tough market conditions 
particularly in winter we reduced our share 
of more expensive long haul ﬂ ying in 
the mainstream business total seats sold 
increased slightly yearonyear with lower 
inhouse volume being more than offset by 
increased thirdparty tour operator sales 
as a consequence of the overall capacity 
reduction and the increased tour operator 
allotments volumes in the independent seat
only business were down 3 yearonyear 
utilisation of the aircraft ﬂ eet was improved 
signiﬁ cantly leading to an increase in the 
seat load factor of 2
lost sales as a result of the volcanic ash cloud 
are estimated to be around £7m with margin 
adversely affected by £30m the direct costs 
of the volcanic ash cloud incident which 
have been included within exceptional 
operating items were £31m
at the gross margin level we beneﬁ ted 
from lower dollardenominated fuel costs 
however this beneﬁ t was not sufﬁ cient to 
offset all of the adverse yield variance due to 
the nature of our hedging strategy compared 
to some of the competition in addition 
the underlying dollar fuel price beneﬁ t 
was reduced substantially by the adverse 
translation impact as the euro weakened 
against the dollar 
this gross margin downside was however 
more than offset by a £14m yearonyear 
beneﬁ t achieved as a result of a condor
speciﬁ c cost saving programme that 
commenced in 2009 £7m of beneﬁ t from 
the groupwide airline synergies programme 
and a net reduction of £12m in depreciation 
costs largely as a result of a group
wide review and realignment of aircraft 
depreciation estimates which was partly 
offset by a £5m decrease in deferred income 
related to aircraft as a result the adjusted 
underlying proﬁ t from operations in the year 
increased by £67m despite a £18m adverse 
impact from exchange translation 
condor achieved greater efﬁ ciency in its fuel costs by switching its fuel supply arrangements at all major 
german airports 
market dynamics
in the ﬁ rst half competitors who were 
not as extensively hedged beneﬁ ted 
from lower fuel costs resulting in 
lower market yields as the year 
progressed condor’s relative cost 
position and the german economic 
environment improved lifting 
demand and yields
th017p2637indd 37 th017p2637indd   37 21122010 2226 21122010   2226 38 thomas cook group plc annual report  accounts 2010
directors’ report
sustainability
continuing to 
invest in our future
w
hen thomas cook created 
the ﬁ rst package holiday 
nearly 170 years ago in 
1841 he did so with a sense of social 
responsibility his determination to 
improve the lives of working people 
by giving them opportunities to 
learn through travel was pioneering 
today the business of being a 
socially responsible travel company 
is more complex
longevity is one of our key business 
objectives and to be a successful business 
today we need to be economically 
environmentally and socially sustainable 
for the thomas cook group that means 
addressing a wide range of longterm 
challenges including maintaining a 
committed and engaged workforce 
providing a great holiday experience for 
customers whilst ensuring their security 
and safety improving fuel efﬁ ciency and 
monitoring the carbon emissions from 
our planes and encouraging sustainable 
practices within a global supply chain 
our achievements in 2010 include our 
uk airline becoming the country’s ﬁ rst 
to receive accreditation to the iso 14001 
international standard for environmental 
management this accomplishment 
is testimony to thomas cook airlines’ 
investment in improving environmental 
performance across every area of its 
operations from onboard recycling to 
saving energy in the hangar we also rolled 
out our employee sharesave scheme to 
the group giving everyone who works 
with us the opportunity to share in our 
success in addition we maintained our 
commitment to the travelife sustainability 
system for hotels and other tourism 
companies more hotels have been audited 
against the travelife criteria
particularly close to my heart is the support 
we can give to those less fortunate than 
ourselves i continue to chair the board 
of trustees of the thomas cook children’s 
charity and insist that our company pays 
all administration costs so that every penny 
donated goes directly to help children when 
the devastating earthquake hit haiti in 
january we donated space on our planes to 
the disasters emergency committee ﬂ ying 
out surgical teams medical kits and portable 
water supply equipment we also provided 
ﬁ nancial support from customer donations 
to just a drop a charity who developed a 
speciﬁ c project helping displaced families 
in haiti return to their homes
tourism today is very different from 
when thomas cook started out but his 
socially responsible spirit lives on in our 
company and i believe our commitment to 
sustainability makes us a stronger business 
helping us to ensure that the thomas cook 
group is still here in another 170 years’ time
manny fontenlanovoa
group chief executive ofﬁ cer
a single group culture
our people strive to deliver the highest 
standards of service as expected by our 
customers it is therefore our people 
which mark us out as different from our 
competitors by embedding our vision and 
values in our people strategy and people 
processes we have created a single culture 
across the group which supports our people 
to make a real difference to the success of 
our business
our vision and values
our vision “we go further to make dreams 
come true” is embedded amongst our people 
through promotion of the proud values a 
set of ﬁ ve values which are the cornerstone 
of the actions of our people we embed these 
values through the proud awards which 
reward individuals or teams who have really 
gone further to make dreams come true for 
our business and our customers our values 
are reinforced in all our people processes
in this way we have developed a single group 
culture which is shared by our 31000 people 
across the 21 countries in which we operate
for more information please see our sustainability 
report travel the world without costing the earth
which is published annually and sets out our 
policies focus areas activities and performance to 
conserve resources this will be available only online 
in february 2011 at wwwthomascookgroupcom
sustainability our annual sustainability report is 
aligned with the global reporting initiative’s gri 
g3 sustainability reporting guidelines and meets 
level b requirements
the proud values
p
pioneering our future
r
results orientated
o
obsessed with customer service
u
united as one team
d
driving robust decisions
th017p3845indd 38 th017p3845indd   38 21122010 2228 21122010   2228 directors’ report 
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directors’ report 
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financial 
statements
thomas cook group plc annual report  accounts 2010 39
performance
the following table shows performance to date against our 2010 targets further detail on progress together with targets for 2011 will be 
included in our online sustainability report to be published on our website in february 2011 at wwwthomascookgroupcomsustainability
target progress comments
 emplo y ees relaunch and increase uptake of groupwide all
employee sharesave scheme
sharesave offer launched 23 of uk employees and 10 
of nonuk employees are now participants in either the 
2008 or 2010 scheme or both
further increase employee engagement index score 
within each segment
engagement score has increased yearonyear
establish succession plans for the senior leadership 
population
an indepth review has been conducted and succession 
plans are in place with the next formal review in 
april 2011
 customer s redesign and update sustainable tourism microsite to 
involve our customers
achieved website was nominated for a sustainability 
award in early 2010
ensure 51 of retail employees complete the 
maketravelgreenercom training package
training package developed and ready  delivery planned 
for 2011
health  safety continue to share best practice in health and safety so as 
to create greater consistency across the group progress 
the group strategy for employee safety and introduce a 
groupwide health and safety system to enable consistent 
reporting across all divisions  
a set of preferred practices in health  safety have been 
rolled out across all markets and all properties are audited 
against these standards
environment uk group and retail premises to reduce electricity and gas 
consumption by 3 and to establish baseline ﬁ gures for 
waste and water so as to set targets for fy 201011
smart meters now being installed to ensure we have 
accurate and timely information moving forward 
engage at least two other segments of the group in our 
activities to promote un world environment day thomas 
cook world environment week
worked with thomas cook northern europe in 
sunwing properties
reduce co
2 emissions from group airlines by 07 by 
the end of fy 200910 excluding the impact of ﬂ eet 
replacement
on target
expand the onboard recycling programme in the uk 
to include all inbound long haul ﬂ ights
already achieved
conduct a mapping exercise to identify which scope 3
co 2 emissions indirect emissions other than those 
resulting from electricity consumption are relevant 
and measurable for thomas cook group
on target
establish a group environmental database for assessing 
our impacts across the group and setting reduction 
targets implement across all segments
have met with suppliers and prepared a business case 
for review
investigate options and establish external veriﬁ cation 
of environmental data and our sustainability report
options have been examined and a decision taken not 
to pursue this yet
suppliers  community
51 of uk mainstream customers to be staying in 
accommodation audited against travelife criteria
currently at 41 which represents over 1m customers
25 of uk mainstream ski customers to be staying in 
accommodation audited against travelife criteria
achieved 30 of ski customers staying in travelife
audited properties 
establish travelife as the supply chain management tool 
of choice for all group business segments
used by uk belgium northern europe and being 
considered by germany
at least 30 excursions showcasing animals to be audited achieved
incorporate sustainability criteria into uk and group 
purchasing process
achieved within uk planned for group in 2011
raise £250000 for the travel foundation achieved
publish a policy on sustainable tourism achieved published in february 2010
raise £900000 for the thomas cook children’s charity on target to achieve £1m over 12 months
support and engage with end child prostitution child 
pornography and the trafﬁ cking of children for sexual 
purposes ecpat in developing a training tool for the 
tourism industry and pilot within one business area in 
the uk
supported and piloted the training tool and are working 
towards creation of child protection sex tourism policy 
and appropriate training
 achieved     partly achieved     not achieved
th017p3845indd 39 th017p3845indd   39 21122010 2228 21122010   2228 40 thomas cook group plc annual report  accounts 2010
our people strategy 
– guiding principles
• we believe that engaging and motivating 
our 31000 people will give us a greater 
and more sustainable competitive 
advantage than anything else we do
• providing all our people with inspiring 
and visible leadership strategic 
direction and effective performance
based reward and recognition are 
amongst the top priorities of the senior 
management team 
• our vision and values provide clarity 
on our ambitions for the business and 
deﬁ ne the way we work together as 
one group to achieve our goals
• we believe our top 100 managers the 
key leadership group are critical to our 
success we focus particular attention 
on personal development succession 
planning and incentives for this group
• we track the success of our people 
strategy via a number of feedback 
mechanisms including an annual 
groupwide employee engagement 
survey and act on what we learn
our people processes
we embed the proud values through all our 
people processes
recruitment and retention we aim to recruit 
and retain exceptional people who subscribe 
to our values
learning and development we invest 
appropriately to ensure our people maximise 
their potential and contribution to our 
business for example in the uk our 
academy is a learning environment which 
provides access to a variety of development 
and learning activities both online and face
toface to assist our people to go further in 
their career with thomas cook
performance review we have robust 
performance review processes embedded 
across the group which are underpinned 
by our values and guide how we coach our 
people to get the best from themselves 
and others
reward our people share in our success 
we recognise and reward both the 
achievement of results and the manner 
in which they are accomplished certain 
parts of the business speciﬁ cally uk and 
india also reward individual performance 
which is in line with the proud values 
through participation in our international 
share plan sharesave all employees have 
the opportunity to share in potential 
longterm rewards linked to the growth 
in our share price
employee communication and 
engagement
thomas cook places a great deal of 
importance on internal communications to 
create universal understanding of the group’s 
agenda the group chief executive ofﬁ cer 
visits the business segments throughout the 
year and communicates regularly to update 
group employees on the company’s progress 
and performance
regular communications within the segments 
keep our people uptodate on the latest 
business and market developments in 
addition our key markets also host annual 
conferences to review the previous year’s 
performance and set out the priorities for 
the coming year
employee engagement survey 
we want to ensure that thomas cook 
remains a great place to work and there’s 
nobody better placed to tell us how we’re 
doing than our people for the third year 
we have conducted a groupwide employee 
engagement survey run by expert training 
systems ets an independent specialist 
thirdparty
the survey gives everyone across thomas cook 
and our family of brands the opportunity to 
share their open and honest views on how 
they feel about working for the company 
what we’re doing well and how they believe 
we could improve
the feedback from the survey shapes our 
action plans for change over the coming year
• annual survey – results and action plans 
shared with our people
• standard set of questions across all 
segments focusing on people engagement
• 24224 responses 76 of employees
• results benchmarked internationally
• group result for 2009 of 383 out of 
5 which ets class as excellent¹
• employee satisfaction has increased year
onyear since the group was created three 
years ago
• identiﬁ ed areas for action are business 
segment speciﬁ c
inspiring and visible leadership
in 2010 we conducted a comprehensive 
review of group talent and succession 
covering the top 100 executive positions in the 
group this gave the group executive board 
the opportunity to assess the strength of the 
talent pipeline across our key leadership 
positions and work together to identify our 
rising talent so we can give them development 
opportunities across our segments this 
process will be repeated early in 2011
the group has established a series of 
leadership behaviours which clearly 
articulate what it takes to be a great leader 
in thomas cook the behaviours which are 
designed for the ‘top 100’ are underpinned 
by the proud values and ensure that leaders 
are assessed and developed to a common 
standard no matter where they are in the 
group executive development is supported 
through a broad range of activities including 
secondments coaching mentoring and 
international business school programmes
our executive reward offering provides a 
direct link between performance and reward 
shortterm incentive plans are underpinned 
by stretching ﬁ nancial and personal objectives 
and longerterm sharebased plans are 
dependent on group ﬁ nancial performance 
and shareholder return these incentives are 
designed to attract retain and reward the 
strongest performers in the industry see the 
remuneration report on pages 59 to 69 for 
further information
employment policies
thomas cook group is committed to treating 
everyone fairly and reasonably according 
to their individual merits and abilities 
measured against our justiﬁ able business 
needs therefore any form of unlawful 
discrimination directly or indirectly on 
the grounds of sex gender reassignment 
pregnancy colour race nationality ethnic or 
national origins sexual orientation disability 
age religion or belief or because someone is 
married or is a civil partner is not tolerated
thomas cook group also aims to reﬂ ect 
the diversity of the community in which it 
operates because it values the individual 
contribution of all employees and recognises 
its legal and social responsibilities
thomas cook group is committed to 
promoting equality and all employees have a 
duty to contribute towards ensuring that the 
proud values are upheld and that the culture 
and working environment are free from 
harassment and discriminatory treatment
–
1  source ets echo employee engagment survey fy09
th017p3845indd 40 th017p3845indd   40 21122010 2228 21122010   2228 directors’ report 
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directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 41
customers
through our vision “we go further to 
make dreams come true” we demonstrate 
our commitment to the highest levels of 
customer service we measure our success 
through local customer satisfaction surveys 
for further information see page 7 the 
unique set of circumstances caused by the 
volcanic ash cloud enabled us to demonstrate 
the lengths we go to look after our customers 
as set out on pages 7 16 and 17 
health  safety
we made good progress against our group 
health and safety objectives during the year 
we implemented ‘thomas cook preferred 
practice’ a programme of continuous 
improvement in health  safety requiring 
the global coordination of information and 
reporting systems with some local policies and 
decisionmaking supplier hotels must sign 
up to these standards and all properties were 
audited against them in 2010 our reporting 
of incidents has improved which allows us to 
pick up trends anticipate issues and cascade 
that knowledge across our destinations
environment
we realise that the main impact of our 
business on the environment comes from 
aviation and therefore we continue to focus 
our efforts on increasing efﬁ ciency more 
effective environmental management and 
the reduction of emissions from our aircraft
as reported in our operating review on pages 
26 to 37 thomas cook airlines achieve some 
of the highest load factors in the industry 
meaning that each aircraft departs with a 
high occupancy on a per passenger basis 
thomas cook airlines are already relatively 
efﬁ cient however over the past year a 
number of environmental and fuel saving 
initiatives have been implemented across our 
group airlines 
the installation of extensions known as 
winglets to the wings of three of the uk’s 
b767300 aircraft and on nine of condor’s 
b767300 boeing ﬂ eet during 2010 has 
generated fuel savings of 5 through 
improved aerodynamics and reduced drag 
the uk airline has further demonstrated 
its commitment to the environment 
by achieving a certiﬁ ed environmental 
management system to the international 
standard iso14001 it is the ﬁ rst airline in the 
uk to achieve this standard and has enabled 
the airline to identify control and improve 
its environmental impact and performance 
through set objectives and targets thomas 
cook northern europe’s airline is also 
implementing iso14001 and is aiming to 
become certiﬁ ed before the end of 2010 
other environmental initiatives include 
ecolabels being placed on every uk aircraft 
by the boarding doors to show passengers 
the impact of their ﬂ ight in emissions and 
noise as well as onboard recycling
the group is continuing to collect and 
analyse data on emissions in preparation 
for the potential introduction of mandatory 
carbon reporting in 2012 the uk 
business is also affected by the carbon 
reduction commitment energy efﬁ ciency 
scheme crc and is developing a carbon 
management strategy to meet these further 
legislative requirements
for the second year thomas cook group 
responded to the carbon disclosure project 
this voluntary reporting scheme which is 
backed by 534 investors representing us64 
trillion of funds under management requires 
respondents to report on their climate 
change governance and strategy risks and 
opportunities and their greenhouse gas 
emission footprint
supply chain management
thomas cook uk adopted the travelife 
sustainability system in 2007 as a means 
of engaging in sustainable supply chain 
management with accommodation providers 
in destinations since then our team of 
trained travelife auditors has assessed 
our highest volume properties against the 
environmental and social criteria in 2010 
we now have over 41 of our uk mainstream 
customers staying in hotels audited against 
travelife of these 18 of passengers are 
staying in hotels which have achieved award 
level status of bronze silver or gold
we are now focusing on building a united 
approach to developing sustainable supply 
chain management in destinations as 
thomas cook belgium and northern europe 
are also members of the travelife system 
by rolling this out across the group we hope 
to create a consistent set of standards create 
better partnerships with our suppliers and 
raise awareness of sustainability enabling 
customers to make a more informed choice 
at the time of booking
thomas cook children’s charity
making dreams come true for sick and disadvantaged children 
funds for the thomas cook children’s charity are raised through customer donations 
when booking a holiday and by donating unwanted coins on return ﬂ ights together with 
employee fundraising the uk provides administration services for the charity free of charge 
meaning that all income directly beneﬁ ts sick and disadvantaged children funds raised 
amounted to £1015783 in 20092010
successful grants have included
• in cancun mexico funds were used to build a kindergarten for disadvantaged 
children with running water and toilets  facilities the children had not had before
• computers wide hd screens and ﬂ ight simulator software installed in 10 children’s 
hospices across the uk to provide children with the pleasure of ﬂ ying a virtual plane
• a project in kenya giving blind and visually impaired children the chance to lead 
a normal life and
• a cottage hospital in goa for abandoned street children
working with one of its charity partners happy days children’s charity funds enabled 
more than 2000 sick and disadvantaged children to experience a day trip or a holiday 
the charity also purchased two mini buses for its second charity partner chicks country 
holidays for innercity kids
th017p3845indd 41 th017p3845indd   41 23122010 1934 23122010   1934 42 thomas cook group plc annual report  accounts 2010
directors’ report
financial review
financial results and performance review
year ended       
30 september 
2010
£m
restated
year ended       
30 september 
2009
£m
yearonyear 
change

revenue 88901 92688 41
adjusted underlying proﬁ t from operations
1
3914 4151 57
lost margin from volcanic ash cloud 292 –
underlying proﬁ t from operations
1
3622 4151 127
underlying operating proﬁ t margin 
2
41 45
adjusted underlying proﬁ t before tax
3
2770 2949 61
statutory proﬁ t before tax 417 451 75
adjusted underlying basic eps p
4
228 250 88
statutory basic leps p 03 08
dividend per share p 1075 1075
operating cash ﬂ ow 2994 1781 681
net debt 8036 6753 190
  figures restated for new accounting standards and resultant changes in accounting policies and restatements of prior period acquisitions 
see below for further information  
1  underlying proﬁ t from operations is deﬁ ned as earnings before interest and tax and has been adjusted to exclude all separately disclosed 
items it also excludes our share of the results of associates and joint venture adjusted underlying proﬁ t from operations is stated before 
the margin impact of the volcanic ash cloud vac
2  the underlying operating proﬁ t margin is the underlying proﬁ t from operations as above divided by the external revenue
3  the adjusted underlying proﬁ t before tax is stated before all separately disclosed items 2010 £2061m 2009 £2498m and the margin 
impact of vac of £292m further details of the separately disclosed items are given in the statutory income statement on page 73 and note 
6 to the ﬁ nancial statements on page 91 
4  adjusted underlying basic earnings per share is calculated as net proﬁ t after tax but before all separately disclosed items and the margin 
impact of the volcanic ash cloud divided by the weighted average number of shares in issue during the year
in a prior year adjustment increasing the 
2009 underlying operating proﬁ t by £02m
• during the year the group also adopted 
the amendments to ias 39 – eligible 
hedged items as a result of the 
implementation of this amendment the 
group policy with regards the time value 
element of option costs has changed 
to one of immediate recognition in the 
income statement this has resulted in 
the following pretax adjustments for the 
year 2010 credit of £20m 2009 charge 
of £81m this item has been separately 
disclosed in the income statement 
to improve consistency further in this area 
the forward points on our foreign exchange 
hedging which were previously shown in 
the underlying net ﬁ nance charges have 
also been separately disclosed this has 
resulted in the following amounts being 
reclassiﬁ ed from net ﬁ nance charges to 
ias 39 fair value remeasurement for the 
year 2010 credit of £73m 2009 credit 
of £100m 
• during the year the group also adopted 
ifrs 8 – segmental reporting as a result 
of this adoption the previously presented 
‘continental europe’ segment has been 
split into two separate segments being 
‘central europe’ and ‘west  east europe’ 
reﬂ ecting the revised management and 
reporting structure in these geographic 
regions the prior year segmental analysis 
has been restated accordingly 
• during the year the group also 
implemented ifrs 3 revised  business 
combinations as a result of this adoption 
£57m of acquisition costs related to the 
acquisitions concluded in the year or likely 
to be concluded in the foreseeable future 
were expensed to the income statement 
these costs have been separately disclosed 
as part of exceptional operating items
basis of preparation
the ﬁ nancial information included in the 
directors’ report reﬂ ects audited statutory 
information for thomas cook group plc and 
has been prepared in accordance with the 
accounting policies set out in note 2 to the 
ﬁ nancial statements on pages 79 to 87 the 
notable changes from the annual report  
accounts 2009 are 
• during the year the group implemented 
the amendments to ias 38 – intangible 
assets as a result of the implementation 
of this amendment the group policy 
with regards the recognition of brochure 
production costs has changed to one of 
immediate write off when the brochures 
are ready for distribution this has resulted 
robust financial 
performance in a
challenging year
during the year there has been a concerted 
effort across the group to produce a 
sustainable improvement in cash ﬂ ow 
as a result of this and despite the difﬁ cult 
trading environment the group achieved 
a £121m increase in operating cash ﬂ ow 
paul hollingworth
group chief financial ofﬁ cer

th017p3845indd 42 th017p3845indd   42 23122010 1934 23122010   1934 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 43
• during the year further new or 
amended standards and interpretations 
have been adopted by the group 
their adoption has not had a signiﬁ cant 
impact on the amounts reported in the 
ﬁ nancial statements
in addition to the above changes have 
also been made to the prior year ﬁ nancial 
information to reﬂ ect adjustments to 
the accounting for certain prior period 
acquisitions further details of these 
changes are given in notes 2 and 15 to 
the ﬁ nancial statements
income statement highlights
revenue and proﬁ t from operations
the group has reported a robust set of results 
given the uncertain economic environment 
and the signiﬁ cant adverse impact of weak 
sterling on our uk business
group revenue for the year decreased by 
4 to £88901m 5 reduction at constant 
currency the decrease yearonyear mainly 
reﬂ ects a planned reduction in winter capacity 
in anticipation of challenging market and 
economic conditions trading in april 2010 
the last month of the winter season was also 
severely disrupted by the closure of airspace 
over much of europe as a result of the 
volcanic ash cloud management estimates 
the lost revenue associated with the volcanic 
ash cloud to be around £100m summer 
capacity was broadly ﬂ at across our markets 
the group adjusted underlying proﬁ t from 
operations was £3914m a reduction of 
£237m on the prior year trading conditions 
remained extremely tough throughout 
the year in all our markets but the uk 
and north america were particularly badly 
affected the effect of the weaker sterling 
against euro and dollar on input costs 
in our uk segment as well as the impact 
of the weaker euro against dollar in our 
continental european airline businesses also 
meant that group input costs increased by 
£269m some of the increases were passed 
through to customers and a signiﬁ cant 
amount was mitigated by rate reductions 
achieved through negotiations with suppliers  
and lower underlying fuel costs however 
these were not enough to prevent some 
margin decline
as a mitigation measure we have continued 
to take actions to address our cost base 
as well as the savings in underlying 
accommodation costs realised following 
negotiations with hoteliers the airline 
synergies programme has delivered £19m 
of incremental beneﬁ ts in the current year 
and restructuring and other cost initiatives 
in all segments contributed a further £75m 
of yearonyear cost reductions 
separately disclosed items
separately disclosed items consist of 
exceptional operating and ﬁ nance items ias 
39 fair value remeasurement proﬁ tloss on 
disposal of associate and the amortisation 
of business combination intangibles these 
are costs or proﬁ ts that have arisen in the 
year which management believes are not the 
result of normal operating performance they 
are therefore disclosed separately to give a 
fairer view of the yearonyear comparison of 
underlying trading performance
the table above summarises the separately 
disclosed items which have been included in 
the full year accounts
exceptional operating items
net exceptional operating items in the 
year amounted to £1663m a reduction of 
£496m on the prior year despite the impact 
of the volcanic ash cloud cost of £529m
the direct costs associated with the volcanic 
ash cloud in april amounted to £529m and 
included additional accommodation and 
subsistence costs for customers stranded in 
resort and the costs of customer repatriation 
when the airspace was eventually reopened
of the remaining £1134m of exceptional 
operating items £260m relates to the 
impairment of assets and establishment 
of onerous lease provisions in hi hotels a 
spanish hotel chain operating 19 properties 
in the balearics on 31 march 2010 
skyservice a canadian airline that provided 
ﬂ ying capacity to our canadian tour operator 
was placed in courtappointed receivership 
as a result of the collapse of skyservice we 
suffered signiﬁ cant disruption to our ﬂ ying 
programme in april the last month of the 
high season for our canadian tour operator 
the direct costs of the disruption together 
with the write down of certain receivables 
from skyservice amounted to £153m 
of the remaining exceptional operating 
costs of £721m £354m relates to 
the continuation of the restructuring 
programmes we commenced and reported 
on in 2009 and a further £233m relates 
to the ﬁ nal element of the fuelrelated 
exceptional items which will not recur in 
future the remaining operating exceptional 
items amounting to £134m include 
acquisition costs relating to the purchase of 
öger tours in germany and the joint venture 
agreement with the cooperative group and 
midlands cooperative and the net impact 
of some aircraftrelated items 
ias 39 fair value remeasurement
the group has adopted the amendment to 
ias 39 for the ﬁ rst time in the 2010 ﬁ nancial 
accounts as part of the provisions of the 
amendment the time value element of 
options used for hedging the group’s fuel and 
foreign currency exposure must be written 
off to the income statement as incurred as 
this is purely a timing issue and can give rise 
to signiﬁ cant unpredictable gains and losses 
in the income statement management has 
decided to separately disclose the impact 
in the income statement to assist readers 
of the accounts in better understanding 
the underlying business development 
for consistency we have also reclassiﬁ ed 
the timing effect of marking to market the 
forward points on our foreign currency 
hedging to this category
as a result of the above changes we have 
separately disclosed a gain of £20m in 
the operating result and a gain of £73m 
in net ﬁ nance charges in the current year 
separately disclosed items
y ear ended       
30 september 
2010
£m
restated
y ear ended       
30 september 
2009
£m
yearonyear
reduction
increase
£m
affecting proﬁ t from operations
exceptional operating items 1663 2159 496
ias 39 fair value remeasurement 20 81 101
amortisation of business combination intangibles 309 344 35
1952 2584 632
affecting income from associates and jv
loss on disposal of associate – 22 22
affecting net ﬁ nance charges
exceptional ﬁ nance charges 182 08 190
ias 39 fair value remeasurement 73 100 27
109 108 217
total 2061 2498 437
th017p3845indd 43 th017p3845indd   43 23122010 1935 23122010   1935 44 thomas cook group plc annual report  accounts 2010
the prior year comparatives have also been 
restated to include a loss of £81m separately 
disclosed in the operating result in addition 
£100m of forward point gains which were 
included in the net ﬁ nance charges in 2009 
have been reclassiﬁ ed to ias 39 fair value 
remeasurement
amortisation of business combination 
intangibles
during the year we incurred noncash costs 
of £309m 2009 restated £344m in relation 
to the amortisation of business combination 
intangibles £217m of the amortisation 
relates to the merger of thomas cook and 
mytravel and represents the amortisation 
of brand names customer relationships 
and computer software the remaining 
£92m relates to other acquisitions made
postmerger
exceptional ﬁ nance charges
as noted in the group chief executive 
ofﬁ cer’s statement during the year we 
successfully replaced our previous bank 
facility £1300m with new funding as a 
result of the reﬁ nancing unamortised setup 
and related costs of the previous facilities 
which were due to expire in may 2011 had 
to be immediately expensed to the income 
statement due to the size and nature of 
this writeoff management has included 
this as a separately disclosed exceptional 
ﬁ nance charge
income from associates and joint 
venture
our share of the results of associates 
and joint venture was a proﬁ t of £32m 
2009 loss of £38m the improvement 
yearonyear largely reﬂ ects a signiﬁ cant 
reduction in our share of the losses in our 
barclaycard joint venture in addition 
following improvements in the underlying 
performance of our central europe hotel 
associates we also booked a net reversal 
on impairment of £20m 
net investment lossincome
the net investment loss in the year was 
£15m 2009 income of £14m the 
reduction yearonyear reﬂ ects a partial write 
down of the carrying value of one of our 
central europe hotel participations
net ﬁ nance costs
net ﬁ nance costs excluding separately 
disclosed items in the year amounted to 
£1161m 2009 restated £1178m the 
small reduction yearonyear reﬂ ects lower 
interest rates applicable to our cash and debt 
in the ﬁ rst half of the year which has been 
partly offset by higher net interest payable 
in relation to the group’s deﬁ ned beneﬁ t 
pension schemes 
tax
the tax charge for the year was £389m 
2009 restated £356m excluding the effect 
of adjustments to tax provisions made in 
respect of previous years separately disclosed 
items and the margin impact of the volcanic 
ash cloud this represents an effective tax rate 
of 276 on the adjusted underlying proﬁ t 
for the year
cash tax paid was £247m which is lower 
than the income statement tax charge as 
a result of being able to utilise the losses 
available in the uk and germany total 
losses available to carry forward in the 
group at 30 september 2010 were £18bn 
as at 30 september 2010 deferred tax assets 
were recognised in respect of £09bn 
of this amount 
earnings per share and dividends
the adjusted underlying basic earnings per 
share was 228 pence 2009 restated 250 
pence basic loss per share was 03 pence 
2009 restated earnings per share 08 pence
the board is recommending a ﬁ nal dividend 
of 70 pence per share which brings the total 
dividend per share for the full year to 1075 
pence unchanged from the previous year 
the ﬁ nal dividend if approved will be paid 
on 7 april 2011 to shareholders who are on 
the register as at 18 march 2011 
cash and liquidity
the group’s operating cash ﬂ ow performance 
has improved signiﬁ cantly this year following 
a coordinated effort across the group to 
improve working capital management 
by raising deposit levels and accelerating 
holiday balance payments this was partly 
offset by a reduction in creditors and an 
increase in hotelier deposits during the year 
as the group sought to secure more exclusive 
properties nevertheless operating cash 
ﬂ ow was improved by £1213m to £2994m 
and within this working capital improved 
by some £1243m such that we reported 
a working capital outﬂ ow of only £303m 
in the year
net expenditure on ﬁ xed assets and 
intangibles increased by £789m to £2661m 
however £662m relates to payments made 
to acquire two aircraft which were previously 
on operating leases the main reason for 
the remainder of the increase was the 
investments we have made and continue 
to make into the launch of the group’s 
ota proposition and our it programme
expenditure on business acquisitions was 
£272m 2009 £712m the outﬂ ow in the 
year includes the acquisition of essential 
travel and scheduled payments made under 
the gold medal and hotels4u acquisitions
the net cash outﬂ ow on interest was £591m 
2009 £871m the reduction yearonyear 
is a result of the timing of interest payments 
with respect to the bonds which results 
in only one annual payment being made 
the ﬁ rst interest payments on the bonds are 
due to be paid in april 2011 the outﬂ ow in 
respect of dividend payments was £597m 
2009 £874m the reduction yearonyear 
is a result of a change made to the interim 
dividend payment date to october 2010 
paid in september in the previous year
net debt being cash less borrowings 
overdrafts and ﬁ nance leases at 
30 september 2010 was £8036m 
30 september 2009 £6753m this 
comprised £3396m of cash £10627m 
of borrowings and overdrafts and £805m 
of ﬁ nance lease liabilities
as noted in the group chief executive 
ofﬁ cer’s statement during the year we 
successfully replaced our previous bank 
facility £1300m with new funding totalling 
£1700m headroom under the new banking 
facilities at 30 september 2010 was £846m
segmental performance review
segmental performance presented in the 
table on page 45 is based on underlying 
ﬁ nancial performance before separately 
disclosed items to assist readers the 
segmental underlying proﬁ t from operations 
has also been presented excluding the 
estimated margin impact of the volcanic 
ash cloud and the segmental narrative in 
the operating review on pages 26 to 37 is 
provided on this adjusted underlying basis
treasury activities
the group’s treasury department has primary 
responsibility for treasury activities and these 
are reported regularly to the board the 
group treasury function is subject to periodic 
independent reviews and audits which are 
then presented to the audit committee
treasury policies
the group is subject to ﬁ nancial risks in 
respect of changes in fuel prices foreign 
exchange rates and interest rates it is also 
exposed to counterparty credit risk and 
availability of credit facilities within its 
business operations to manage these risks 
the board has approved clearly deﬁ ned 
treasury policies covering hedging activities 
responsibilities and controls the policies 
are reviewed regularly to ensure that they 
remain appropriate for the underlying 
commercial risks the policies also deﬁ ne 
which ﬁ nancial instruments can be used 
by the group to hedge these risks the 
use of derivative ﬁ nancial instruments for 
speculative purposes is strictly prohibited
directors’ report
financial review
continued
th017p3845indd 44 th017p3845indd   44 23122010 1935 23122010   1935 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 45
management of liquidity risk 
and ﬁ nancing
group treasury’s primary objective is to 
ensure that the group is able to meet its 
ﬁ nancial commitments as they fall due this 
involves preparing a prudent mediumterm 
cashﬂ ow forecast using the annual budget 
and threeyear plan and ensuring that the 
group has sufﬁ cient cash and headroom 
under its committed facilities to provide 
against any unexpected cashﬂ ows in 
addition a rolling 13week cashﬂ ow forecast 
is used to manage the group’s shortterm 
cash and borrowing positions at the year 
end the group had undrawn committed 
debt facilities available to it of £846m 
2009 £667m
borrowing facilities
in april 2010 the group issued a €400m 
bond maturing in june 2015 and a £300m 
bond maturing in june 2017 proceeds of 
these issues were used to repay debt drawn 
under the existing bank facilities in may 
2010 the group entered into a £1050m 
committed bank facilities agreement with 
a number of banks maturing in may 2013 
the previous bank facilities were cancelled 
the new facilities comprise a £200m term 
loan repayable in annual instalments of 
£50m commencing october 2011 and a 
revolving credit facility of £850m to support 
the seasonal liquidity requirements and the 
general corporate purposes of the group at 
the year end the average remaining maturity 
of the bond and committed bank facilities 
was 37 years 2009 18 years
guarantee facilities
in addition to debt facilities the group has 
a requirement for guarantee and bonding 
facilities principally for consumer protection 
guarantees in may 2010 the group entered 
into a total of £200m of new committed 
guarantee facilities with seven banks and 
at the same date the previous committed 
guarantee facilities totalling €200m £174m 
were cancelled the new guarantee facilities 
mature in may 2012
counterparty credit risk
the group deposits surplus cash with 
approved banks and ﬁ nancial institutions 
with strong credit ratings each counterparty 
has a credit limit authorised by the board 
and the credit risk is reduced by spreading 
the deposits and derivative contracts across 
a number of counterparties at the year end 
the group reported total cash of £340m 
2009 £550m
segmental performance review
year ended 
30 september    
2010
£m
restated
year ended 
30 september    
2009
£m
year on year
change

external revenue
uk
1
31434 30980 15
central europe 19734 21471 81
west  east europe 16984 18532 84
northern europe 10140 10593 43
north america 3525 3704 48
airlines germany 7084 7408 44
corporate – – –
group 88901 92688 41
y ear ended       
30 september 
2010
£m
restated
year ended
30 september 
2009
£m
year on year
change

underlying proﬁ t from operations
2
uk 1075 1620 336
central europe 586 504 163
west  east europe 820 857 43
northern europe 917 866 59
north america 91 179 492
airlines germany 511 474 78
corporate 378 349 83
group 3622 4151 127
adjusted underlying proﬁ t from operations
uk 1239 1620 235
central europe 609 504 208
west  east europe 867 857 12
northern europe 939 866 84
north america 97 179 458
airlines germany 541 474 141
corporate 378 349 83
group 3914 4151 57
1 the uk segment includes our operating businesses in the uk ireland india and egypt
2 underlying proﬁ t from operations is deﬁ ned as earnings before interest and tax and has been adjusted to exclude all separately disclosed 
items it also excludes our share of the results of associates and joint venture adjusted underlying proﬁ t from operations is stated before 
the margin impact of the volcanic ash cloud
 2009 includes the aircraft reﬁ nancing facility which became 
available on 1 october 2009
th017p3845indd 45 th017p3845indd   45 21122010 2228 21122010   2228 46 thomas cook group plc annual report  accounts 2010
directors’ report
board of directors
paul hollingworth 50
title group chief financial ofﬁ cer
appointment january 2010
skills  experience prior to joining thomas 
cook as group chief financial ofﬁ cer paul 
was chief financial ofﬁ cer of mondi group 
he was previously group finance director 
of bpb plc and prior to that group finance 
director of de la rue plc and ransomes plc
external appointments nonexecutive 
director of electrocomponents plc
david allvey 65
title independent nonexecutive director
appointment march 2007
skills  experience david was a non
executive director of mytravel group plc 
between 2003 and 2007 prior to this he was 
group finance director of barclays bank 
plc bat industries plc and chief operating 
ofﬁ cer of zurich financial services ag
external appointments chairman of costain 
group plc and arena coventry ltd senior 
independent director of intertek group plc 
william hill plc friends provident holdings 
uk ltd and friends provident group plc 
roger burnell 60
title senior independent director
appointment march 2007
skills  experience roger was appointed 
senior independent director on 4 august 
2010 after joining the company as non
executive director in march 2007 he was also 
a nonexecutive director of mytravel group 
plc from april 2003 before joining mytravel 
he was chief operating ofﬁ cer and a director 
of thomson travel group plc 
external appointments nonexecutive 
director of coventry building society
dawn airey 50
title independent nonexecutive director
appointment april 2010
skills  experience dawn has over 25 years’ 
experience within the media industry and 
has held senior positions at some of the uk’s 
leading media companies she is currently 
president of cltufa uk television ltd within 
the rtl group until august 2010 she was 
the chair and chief executive ofﬁ cer of five 
tv after joining the company from her role 
as md global content at itv plc between 
2004 and 2008 she was also an independent 
nonexecutive director of easyjet plc
external appointments nonexecutive 
director of loveﬁ lm international ltd and 
chair of the grierson trust dawn also sits on 
the board of the british library 
manny fontenlanovoa 56
title group chief executive ofﬁ cer
appointment march 2007
skills  experience manny joined the 
company in 1996 upon the acquisition of 
sunworld which was then the uk’s fourth 
largest tour operator he was a founding 
director of sunworld and has over 30 years’ 
experience in the travel industry
external appointments director of hispano 
alemana de management hotelero sa 
michael beckett 74
title nonexecutive chairman
appointment march 2007
skills  experience michael was appointed 
chairman in september 2009 prior to 
which he was deputy chairman and senior 
independent director previous roles include 
chairman of mytravel group plc 2004  
2007 chairman of coalcorp mining inc 
london clubs international plc ashanti 
goldﬁ elds company ltd clarkson plc and md 
of consolidated gold fields plc 
external appointments nonexecutive 
chairman of endeavour financial 
corporation nonexecutive director of crew 
gold corporation northam platinum ltd 
orica ltd the egypt trust mvelaphanda 
resources ltd petroamerica oil corp and 
international hotel investments plc 
th017p4647indd 46 th017p4647indd   46 21122010 2229 21122010   2229 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 47
bo lerenius 63
title independent nonexecutive director
appointment july 2007
skills  experience between 1985 and 1992 
bo was group president and chief executive 
of swedish listed building materials group 
ernstromgruppen from 1992 to 1999 he 
was chief executive and subsequently vice 
chairman of stena line following which 
he was group chief executive of associated 
british ports holdings plc until 2007 
external appointments chairman of mouchel 
plc nonexecutive director of g4s plc 
and land securities group plc honorary 
vice president of the swedish chamber of 
commerce for the uk he is also an adviser 
to the infrastructure fund of swedish venture 
capital group eqt
peter middleton 70
title independent nonexecutive director
appointment november 2009
skills  experience peter has extensive 
experience across the global travel and 
ﬁ nance industries having been ceo of 
thomas cook between 1987 and 1992 ceo 
of lloyds of london between 1992 and 1995 
and ceo of salomon brothers international 
ltd between 1995 and 1998 since 2000 
peter has been chairman of a number of 
small listed and private companies in a range 
of industries
external appointments none
 committee memberships
audit committee
david allvey chairman
roger burnell
bo lerenius
remuneration committee
peter middleton chairman
roger burnell
bo lerenius
health safety 
environmental committee
roger burnell chairman
dawn airey
david allvey
manny fontenlanovoa
nominations committee
michael beckett chairman
dawn airey
david allvey
roger burnell
bo lerenius
peter middleton
on 30 november 2010 it was agreed 
that peter marks group chief executive 
of the cooperative group will join the 
board as a nonexecutive director upon 
the completion of the uk retail joint 
venture with the cooperative group 
and midlands cooperative
sam weihagen 60
title chief executive ofﬁ cer northern 
europe  deputy to the group chief 
executive ofﬁ cer
appointment november 2009
skills  experience sam has 35 years’ 
experience in the travel industry he was 
appointed deputy to the group chief 
executive ofﬁ cer in november 2009 and has 
held the role of ceo northern europe since 
2001 he was the former mytravel northern 
europe chief executive and was an executive 
director of mytravel group plc for three 
years prior to the merger 
external appointments chairman of the 
tour operating federation in sweden
th017p4647indd 47 th017p4647indd   47 21122010 2229 21122010   2229 48 thomas cook group plc annual report  accounts 2010
directors’ report
group executive board
manny fontenlanovoa 56
title group chief executive ofﬁ cer
skills  experience please see directors’ 
biographies on pages 46 and 47
paul hollingworth 50
title group chief financial ofﬁ cer
skills  experience please see directors’ 
biographies on pages 46 and 47
sam weihagen 60
title chief executive ofﬁ cer northern europe 
 deputy to the group chief executive ofﬁ cer
skills  experience please see directors’ 
biographies on pages 46 and 47
dr jürgen büser 44
title group strategy director
skills  experience prior to being appointed 
to his current role in november 2009 
jürgen was group chief financial ofﬁ cer 
from july 2008 prior to which he was 
chief financial ofﬁ cer for the uk  ireland 
segment he spent three years prior to 
this as head of controlling  ma for 
thomas cook ag in germany before joining 
thomas cook he held senior positions within 
siemens financial services the international 
consulting ﬁ rm booz allen  hamilton and 
westdeutsche landesbank
pete constanti 44
title chief executive ofﬁ cer group 
destination management
skills  experience pete joined the 
company in 1996 until november 2009 
he was chief executive ofﬁ cer mainstream 
travel uk  ireland pete comes from a 
strong tour operating background and 
has 27 years of travel industry experience 
previously working for ilg and sunworld 
where he was hr director
ian derbyshire 42
title  chief executive ofﬁ cer uk
skills  experience ian joined the thomas 
cook group in 2000 as director of sales and 
has since held a variety of roles including 
executive director uk holidays in september 
2008 he became chief executive ofﬁ cer 
independent travel uk  ireland in 
november 2009 he was appointed to his 
current role he has held senior positions 
within the leisure and travel sector with 
companies including holiday autos the 
rank group and cooperative travel ian has 
26 years of experience in the travel industry
dr thomas döring 41
title chief executive ofﬁ cer ecommerce 
and west  east europe
skills  experience thomas joined the 
company in 2001 and has been responsible 
for the western and eastern european 
markets since 2006 in addition thomas was 
appointed ceo ecommerce in may 2010 to 
lead the development of the online travel 
agent ota he has held senior positions 
leading the international markets division 
corporate development and mergers  
acquisitions before joining the company 
he spent seven years with roland berger 
strategy consultants latterly as a partner
dr peter fankhauser 50
title chief executive ofﬁ cer central europe
skills  experience peter joined the 
company in 2001 and has held a number 
of senior roles within the group prior to 
joining the company he was executive board 
member of kuoni reisen holding ag in 
zürich where he managed the company’s 
european division and chief executive 
ofﬁ cer of ltu group in düsseldorf
michael friisdahl 48
title chief executive ofﬁ cer north america
skills  experience michael joined mytravel 
north america as president in 2000 and was 
appointed chief executive ofﬁ cer north 
america in 2005 he has 27 years’ experience 
in the travel industry prior to joining the 
group he was a partner and ceo of the 
holiday network which was acquired by 
airtours international mytravel group plc 
in 2000
ralf teckentrup 53
title chief executive ofﬁ cer airlines germany
skills  experience ralf joined the company 
in 2004 and has held a variety of senior 
roles within the group previously he held a 
number of senior positions with lufthansa ag
paul wood 40
title group director human resources
skills  experience paul joined mytravel 
group plc in 2006 as group head of reward 
a role he retained after the merger in 2007 
he was appointed group director human 
resources in april 2009 prior to 2006 he held 
senior reward and human resources roles 
at clifford chance atos origin geest plc 
vodafone plc and de la rue plc paul has 
over 20 years’ experience in human resources 
and employee reward
derek woodward 52
title group company secretary
skills  experience derek joined the company 
as group company secretary in april 2008 
before which he spent six years as head of 
secretariat at centrica plc from 1998 he 
was company secretary of allied zurich plc 
the uk listed holding company of the zurich 
financial services group and between 1990 
and 1998 he was assistant secretary of bat 
industries plc
th017p48indd 48 th017p48indd   48 21122010 2230 21122010   2230 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 49
directors’ report
corporate governance report
dear shareholder
the board of directors of thomas cook group plc recognises 
the importance of applying the highest standards of corporate 
governance this enables effective and efﬁ cient decision making 
and gives a structural aid for the directors to discharge their duty 
to promote the success of the company for the beneﬁ t of
its shareholders 
the board is committed to the principles of corporate 
governance in the combined code on corporate governance ‘the 
code’ and the uk corporate governance code the ‘new code’ 
in the ﬁ rst full year of leading a fully independent company the 
board has embraced the standards expected of a uk listed plc
during the year the board has made considerable progress 
against the targets that it set itself as a result of the 2009 board 
evaluation in the year ahead the board will track progress 
against the actions that it has set following the output from our 
recent evaluation all of this is fully described in the governance 
report but some areas are worthy of comment here
• the board has been strengthened during the year by 
the appointment of dawn airey and peter middleton 
as nonexecutive directors and sam weihagen and 
paul hollingworth as executive directors in the current year 
peter marks group chief executive of the cooperative group 
will join the board upon completion of the uk retail joint 
venture with the cooperative group and midlands 
cooperative
•  roger burnell has been appointed as the senior 
independent director
• during the course of the year ahead roger burnell will lead 
the nominations committee through a process to ﬁ nd my 
successor in time for an induction and orderly handover ahead 
of my intended retirement at the 2012 agm and
• the board has spent considerable time on executive succession 
and in addition to focused discussion on that subject has 
also orchestrated ongoing exposure to members of the group 
executive board and their senior management teams during 
debate on strategic and operational matters
each of the board’s committees has made progress in their areas 
of responsibility as described in the report below
in line with our usual practice i will engage with our major 
shareholders to discuss these developments and to address 
any questions ahead of and at the agm on 11 february 2011
michael beckett
chairman
30 november 2010
this report sets out how the company applied the principles of 
the code and the extent to which the company complied with the 
provisions of section 1 of the code in the year to 30 september 2010 
the only area of non compliance with the code’s provisions during 
the ﬁ nancial year was in respect of the period up to 4 august 2010 
when the board had not appointed a senior independent director 
this is explained in the relevant section on page 51 
the company will report against the new code in the annual report 
 accounts 2011
the board of directors
an effective board of directors leads and controls the group and has 
a schedule of matters reserved for its approval this schedule and the 
terms of reference for the audit remuneration nominations and 
health safety  environmental committees are available on request 
and on the company’s website at wwwthomascookgroupcom the 
powers of the directors are set out in the company’s articles of 
association these are also available on the company’s website
the board is speciﬁ cally responsible for
• development and approval of the group’s strategy and its 
budgetary and business plans
• approval of signiﬁ cant investments and capital expenditure
• approval of annual and halfyear results and interim 
management statements accounting policies and subject to 
shareholder approval the appointment and remuneration of 
the external auditors
• approval of interim and recommendation of ﬁ nal dividends
• changes to the group’s capital structure and the issue of 
any securities
• establishing and maintaining the group’s risk appetite system 
of internal control governance and approval authorities
• executive performance and succession planning and
• determining standards of ethics and policy in relation to health 
safety environment social and community responsibilities
at its meetings during the year the board discharged its 
responsibilities as listed above in particular the board reviewed
• the operational performance of each of the group’s segments 
performance and strategy is continually monitored and reviewed 
by the board and periodic updates are presented by the segment 
chief executive ofﬁ cers and their senior management teams
• the development of the strategy for the new online travel agent 
and periodic updates of performance against targets
• ﬁ nancial performance treasury metrics and the group’s 
annual budget
• cash ﬂ ow performance
• the group’s ﬁ nancing arrangements leading to the new banking 
facility and the launch of the sterling and euro denominated 
corporate bonds
• external ﬁ nancial and narrative reporting and investor feedback
• ma opportunities and proposals
• the group’s it strategy and transformation programme and other 
major it projects
• the group’s taxation strategy and policies including the 
management of related risk
• the group’s fuel hedging strategy and policy and other 
treasury policies
th017p4959indd 49 th017p4959indd   49 04012011 1120 04012011   1120 50 thomas cook group plc annual report  accounts 2010
• succession plans in respect of the executive directors and 
members of the group executive board
• board and committee evaluation and the formulation of 
changes to improve effectiveness
• the effectiveness of the group’s system of internal control
• the group’s emergency procedures and their effectiveness in 
response to the situation created by the airspace closure due 
to the volcanic ash cloud
• the group’s governance arrangements in response to developing 
legal and governance proposals and requirements including the 
additional requirements of the new code
• the group’s competition law policy and associated employee 
education and training programme and
• the directors’ conﬂ icts of interest register
board meetings and attendance
the board has regular scheduled meetings throughout the year and 
supplementary meetings are held as and when necessary the board 
held eight scheduled and ﬁ ve unscheduled supplementary meetings 
during the year a table detailing individual director attendance at 
scheduled board and committee meetings during the year is set out 
below the chairman and each nonexecutive director have provided 
assurance to the board that they remain fully committed to their 
respective roles and can dedicate sufﬁ cient time to meet what is 
expected of them
the table below shows the number of scheduled board and 
committee meetings attended by each director out of the number 
convened during the time served by each director on the board or 
relevant committee during the year
current directors
name board
nominations 
committee
audit        
committee
remuneration 
committee
health safety  
environmental 
committee 
michael beckett
1
88 57–––
manny fontenlanovoa 88 – – – 55
dawn airey
2
44 44 – – –
david allvey 78 66 66 – 55
roger burnell 78 66 66 77 55
paul hollingworth
3
66 ––––
bo lerenius 88 77 66 77 –
peter middleton
4
66 55 – 33 –
sam weihagen
5
77 – – – –
notes
1  two of the nominations committee meetings dealt with chairman succession and therefore michael beckett did not attend 
2 dawn airey joined the board on 12 april 2010 she was appointed to the health safety  environmental committee on 23 september 2010
3 paul hollingworth joined the board on 1 january 2010
4 peter middleton joined the board on 30 november 2009 he was appointed to the remuneration committee and replaced nigel northridge as chairman of that committee on 25 march 2010
5 sam weihagen joined the board on 6 november 2009
former directors who served during the year
 name board
nominations 
committee
audit
committee
remuneration 
committee
health safety  
environmental 
committee
jürgen büser
1
02––––
nigel northridge
2
44 33 – 55 –
notes
1 jürgen büser stepped down from the board on 29 november 2009 
2 nigel northridge resigned on 25 march 2010
directors’ report
corporate governance report
continued
th017p4959indd 50 th017p4959indd   50 21122010 2238 21122010   2238 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 51
board composition
as at 30 september 2010 the board comprised the chairman 
three executive directors and ﬁ ve independent nonexecutive 
directors biographical details of those directors can be found 
on pages 46 and 47
board composition
 chairman
 independent
nonexecutive directors
 executive directors
the chairman 
michael beckett was the chairman of the company throughout the year 
the roles of the chairman and group chief executive ofﬁ cer are 
separate and distinct and each has a written statement of his 
respective responsibilities a summary of which can be found on the 
company’s corporate website at wwwthomascookgroupcom
the senior independent director
roger burnell was appointed senior independent director on 4 
august 2010 and as such is available to shareholders should they 
have concerns that cannot be resolved through the normal channels 
involving the executive directors or the chairman as reported last 
year a number of governance changes were made in september 
2009 upon the termination of the relationship agreement with 
arcandor ag which had previously held a majority shareholding 
in the company the decision was taken at that time to defer the 
appointment of a senior independent director until such time as 
the board had been strengthened and had settled into leading 
a fully ﬂ oated independent company this decision to defer the 
appointment of a senior independent director resulted in the 
company not being in compliance with provision a33 of the 
code for the period 1 october 2009 until 4 august 2010
changes to the board
changes to the board during the year were as follows sam weihagen 
chief executive ofﬁ cer northern europe was appointed as a director 
and as deputy to the group chief executive ofﬁ cer on 6 november 
2009 paul hollingworth was appointed to the board as group chief 
financial ofﬁ cer on 1 january 2010 he replaced jürgen büser who 
stepped down from the board and the position of group chief 
financial ofﬁ cer on 29 november 2009 following a period of ill 
health nigel northridge resigned from the board as an independent 
nonexecutive director on 25 march 2010 
in order to strengthen the board a process commenced at the start 
of the year to appoint two additional independent nonexecutive 
directors this process resulted in peter middleton and dawn airey 
being appointed to the board on 30 november 2009 and 12 april 
2010 respectively peter marks group chief executive of the 
cooperative group will join the board upon completion of the 
uk retail joint venture with the cooperative group and midlands 
cooperative  
the search selection and appointment process in respect of both 
the new group chief financial ofﬁ cer and new independent 
nonexecutive directors is fully described in the section on the 
nominations committee on page 55 
ludger heuberg carried out the role of acting group chief financial 
ofﬁ cer in the period up to 31 december 2009 ludger heuberg had 
previously been the group’s chief financial ofﬁ cer between june 
2007 and june 2008 and was a member of the group executive board 
during the period he was acting group chief financial ofﬁ cer he was 
not a director of the company
board tenure
  1 year
 1 – 4 years
  4 years
director independence 
at its september 2010 board meeting as part of its annual review 
of corporate governance against the code the board considered the 
independence of the nonexecutive directors against the criteria 
speciﬁ ed in the code and determined that dawn airey david 
allvey roger burnell bo lerenius and peter middleton remained 
independent the board recognises that peter marks as group chief 
executive of the cooperative group which will be a partner in the uk 
retail joint venture announced in october 2010 is not independent 
the board reached its determination of independence in respect 
of peter middleton notwithstanding the receipt by him of a pension 
of £60500 per year from the  thomas cook pension plan a deﬁ ned 
beneﬁ t pension scheme this pension is fully funded and accrued 
in the period 1987 to 1992 when he was ceo of thomas cook 
the board recognises that being in receipt of a pension from the 
group’s pension scheme gives rise to a potential conﬂ ict which it 
has authorised as permitted by the company’s articles of association 
subject to the condition that he does not participate in any discussion 
or decision regarding any of the group’s pension schemes the board 
believes that peter middleton is independent in all other respects 
and also believes that this condition is sufﬁ cient to maintain 
his independence
reappointment of directors
in accordance with the code and the company’s articles of association 
all directors are subject to election by shareholders at the ﬁ rst annual 
general meeting ‘agm’ following their appointment to the board and 
thereafter are subject to reelection every third agm nonexecutive 
directors are initially appointed for a threeyear term and subject to 
rigorous review by the nominations committee and reelection by 
shareholders can serve up to a maximum of three such terms
upon the recommendation of the nominations committee michael 
beckett and bo lerenius will be proposed for reelection and dawn 
airey and peter marks will be proposed for election by shareholders 
at the 2011 agm 
tenure includes previous directorships of mytravel group plc and thomas cook ag
th017p4959indd 51 th017p4959indd   51 24122010 0854 24122010   0854 52 thomas cook group plc annual report  accounts 2010
michael beckett has signalled his intention to retire at the 2012 agm 
and the nominations committee under the leadership of the senior 
independent director has initiated a process to ﬁ nd his successor in 
time for an orderly handover and induction this is further explained 
in the nominations committee section on page 55
operation of the board
senior executives below board level attended relevant parts of 
board meetings in order to make presentations on their areas of 
responsibility this gives the board access to a broader group of 
executives and helps the directors make assessments of the group’s 
succession plans
in addition to the papers circulated prior to each meeting directors 
were provided between meetings with relevant information on 
matters affecting the business such updates were carried out by 
a variety of methods including conference calls amongst the full 
board or between the chairman and the nonexecutive directors 
and by way of the group company secretary circulating papers and 
updates on relevant issues the chairman has held meetings with 
the nonexecutive directors without the executive directors present
the group company secretary who was appointed by the board 
is responsible for advising and supporting the chairman and the 
board on company law and corporate governance matters as well as 
ensuring that there is a smooth ﬂ ow of information to enable effective 
decision making all directors have access to the advice and services 
of the group company secretary and through him have access to 
independent professional advice in respect of their duties at the 
company’s expense the group company secretary acts as secretary to 
the board the group executive board the finance  administration 
committee the disclosure committee the audit committee the 
nominations committee and the remuneration committee the 
deputy group secretary acts as secretary to the health safety  
environmental committee
in accordance with its articles the company has granted a deed of 
indemnity to the extent permitted by law to each director and the 
group company secretary the company also maintains directors’ 
and ofﬁ cers’ liability insurance
board evaluation
the board recognises the beneﬁ t of a thorough evaluation process 
as a useful tool to highlight issues track progress against targets and 
to determine and shape the focus of board attention in the future
a thorough evaluation of the board and its committees was 
conducted during the year this was facilitated by the group company 
secretary under the direction of the chairman the process involved 
each of the directors completing a comprehensive questionnaire 
which was structured to encourage both graded responses and 
narrative feedback in respect of a range of questions that focused 
on the following areas
• board and committee composition and dynamics
• knowledge and information
• agenda and time management
• board support
• strategic development and oversight
• delegation of authority
• risk management
• corporate responsibility
• human resource management
• executive remuneration
• performance of executive and nonexecutive directors
• committee structure and performance and
• priorities for change
board evaluation process
detailed questionnaire
effectiveness report
compiled by the group company secretary and agreed 
with the chairman
discussed at september board meeting
priorities and improvements agreed
upon receipt of the completed forms the group company secretary 
compiled a report drawing out the key themes and issues that were 
raised and formulated a number of recommendations to further 
enhance the overall effectiveness of the board and its committees 
the report also highlighted the achievements against the objectives 
that had been agreed by the board a year earlier following the 
conduct of the 2009 evaluation this report was developed and 
agreed with the chairman and circulated to the board for debate 
at the september 2010 board meeting
the results of the evaluation concluded that the operation of the 
board and its committees had improved during the year and 
considerable progress had been made against the previously set 
targets including board composition the ongoing programme of 
strategic presentations and debate the board’s exposure to members 
of the group executive board which helped build an understanding 
of succession plans and improvement of regular board reports 
including shareholder feedback and monthly ﬁ nancial reports 
following the appointment of the new group chief financial ofﬁ cer
the evaluation also recognised a small number of issues that arose 
and had been remedied during the year whilst recognising that 
progress had been made the evaluation highlighted a small number 
of areas that the board felt should be given additional focus in the 
year ahead including succession strategy and risk management
the board debated the output from the evaluation and agreed the 
recommended actions and a forward agenda of additional key issues 
for review the board and committee evaluation to be carried out 
in the current ﬁ nancial year will cover the same areas as listed above 
and will be designed to track progress against the agreed actions 
set in 2010
the nonexecutive directors under the leadership of the senior 
independent director conducted a performance evaluation 
of the chairman this was carried out in accordance with the 
code and involved a similar process to that described above 
the independent nonexecutive directors met separately to discuss 
the evaluation and feedback was given to the chairman by the 
senior independent director
the company’s performance management system applies 
to management at all levels across the group the individual 
performance of the executive directors is reviewed by the 
remuneration committee
directors’ report
corporate governance report
continued
th017p4959indd 52 th017p4959indd   52 21122010 2238 21122010   2238 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 53
board training and induction
an induction programme tailored to meet the needs of individual 
directors is provided for each new director overall the aim of the 
induction programme is to introduce new directors to the group’s 
business its operations and its governance arrangements such 
inductions typically include meetings with senior management visits 
to the company’s business segments and the receipt of presentations 
on key business areas and relevant documentation
directors also receive training throughout the year both at board and 
committee meetings and by way of attendance at external conferences 
and seminars at board meetings and where appropriate committee 
meetings the directors receive regular updates and presentations on 
changes and developments to the business and to the legislative and 
regulatory environments during the year the board was provided with
• updates on the economic and business environment in each of 
the segments
• a brieﬁ ng on competition law and the group’s competition 
compliance and employee education programme 
• brieﬁ ngs on the ﬁ nal implementation of the companies act 
2006 the financial reporting council’s review of the combined 
code on corporate governance and the impact on the company’s 
governance arrangements following the planned introduction of 
the new code and
• a brieﬁ ng on the development of carbon emissions legislation in 
each source market  
directors’ conflicts of interest
from 1 october 2008 the companies act codiﬁ ed the directors’ duty 
to avoid a situation in which they have or can have an interest that 
conﬂ icts or possibly may conﬂ ict with the interests of the company 
a director will not be in breach of that duty if the relevant matter has 
been authorised in accordance with the articles of association by the 
other directors 
the board has established a set of guiding principles on managing 
conﬂ icts and has agreed a process to identify and authorise conﬂ icts 
as part of that process it has also agreed that the nominations 
committee should review the authorised conﬂ icts every six months 
or more frequently if a new potential conﬂ ict situation materialises 
the nominations committee and board applied the above principles 
and process throughout the year to 30 september 2010 and conﬁ rm that 
these have operated effectively when authorising a potential conﬂ ict 
in respect of peter middleton the board speciﬁ ed a condition that he 
should not participate in any discussion or decision regarding any of the 
group’s pension schemes the potential conﬂ ict is more fully described in 
the section on director independence on page 51
the group governance structure
the board has delegated authority to its committees on speciﬁ c aspects of management and control of the group the papers in respect of 
the audit remuneration nominations health safety  environmental and disclosure committees are circulated to all the nonexecutive 
directors regardless of committee membership matters discussed and agreed at those committees the group executive board and the 
finance  administration committee are reported to the next board meeting
thomas cook group plc
board of directors
nominations
committee
group
executive board
audit
committee
remuneration 
committee
health safety 
 environmental 
committee
disclosure
committee
finance  
administration 
committee
group risk 
management 
committee
segment
boards
country
boards
function
boards
fuel hedging
committee
nonexecutive directors only
 executive directors and nonexecutive directors
 executive directors andor other senior executives only
group executive board
the group chief executive ofﬁ cer chairs the group executive board which 
meets at least eight times a year to oversee the strategic development 
and operational management of the group’s businesses the group 
chief financial ofﬁ cer and the deputy to the group chief executive 
ofﬁ cer are also members of the group executive board the other 
current members of the group executive board together with their 
biographies are set out on page 48
th017p4959indd 53 th017p4959indd   53 21122010 2238 21122010   2238 54 thomas cook group plc annual report  accounts 2010
committees of the board
audit committee
meetings six
members
david allvey chairman
roger burnell
bo lerenius
meetings also regularly attended by
michael beckett chairman
manny fontenlanovoa group chief executive ofﬁ cer
paul hollingworth group chief financial ofﬁ cer
derek woodward group company secretary
pricewaterhousecoopers llp ‘pwc’
ernst  young llp ‘ey’
  david allvey is considered by the board to have recent and relevant ﬁ nancial 
experience as required by the code
david allvey
chairman
composition of the committee
there have been no changes to the composition of the committee 
during the year
role of the committee
the board has delegated to the committee responsibility for 
overseeing the ﬁ nancial reporting internal risk management and 
control functions and for making recommendations to the board 
in relation to the appointment of the company’s internal and 
external auditors
in accordance with its terms of reference the committee which 
reports its ﬁ ndings to the board is authorised to
• monitor the integrity of the annual and halfyear results and 
interim management statements including a review of the 
signiﬁ cant ﬁ nancial reporting judgements contained in them
• review the company’s internal ﬁ nancial controls and internal 
control and risk management systems
• monitor and review the effectiveness of the company’s internal 
audit function
• establish and oversee the company’s relationship with the external 
auditors including the monitoring of their independence and
• monitor matters raised pursuant to the company’s 
whistleblowing arrangements
to enable it to carry out its duties and responsibilities effectively 
the committee relies on information and support from management 
across the business
the full terms of reference of the committee are available on 
wwwthomascookgroupcom or from the group company secretary 
at the registered ofﬁ ce
principal activities during the year
at its meetings during the year the committee discharged its 
responsibilities as listed above and in particular it reviewed
• the full and halfyear results including accounting issues
and judgements and the interim management statements 
issued during the year
• information in support of the statements in relation to going 
concern and disclosure of information to the auditors
• the group’s system of internal control receiving reports from 
management the external auditors and the internal auditors 
see section headed ‘risk management and internal control’ on page 57
• the reports from audits conducted by the internal auditors
• the annual work plan for each of the internal and external auditors
• the group’s main risks and mitigating actions
• the group’s business continuity plans and the work plan and 
timetable for further development
• the group’s taxation strategy and policies including the 
management of related risk
• the prevention detection and reporting of fraud
• security in relation to it and retail shops
• the performance of the internal auditors leading to the 
reappointment of ey as the group’s internal auditors
• proposals for engaging the external auditors to carry out 
nonaudit related work see below and
• the committee’s work plan for the year ahead and a review 
of historic activity against the committee’s terms of reference
external auditors
there is a policy in place which requires all material nonaudit 
work proposed to be carried out by the external auditors to be 
preauthorised by the committee in order to ensure that the 
provision of nonaudit services does not impair the external auditors’ 
independence or objectivity the policy which is appended as a 
schedule to the audit committee’s terms of reference is published 
on the company’s website at wwwthomascookgroupcom the 
committee is pleased to report that for a third successive year there 
has been a signiﬁ cant reduction to the amount of nonaudit fees paid 
to the external auditors an analysis of the fees earned by the group’s 
auditors for audit and nonaudit services is disclosed in note 8 to 
the ﬁ nancial statements pwc were reappointed by shareholders 
at the agm held on 25 march 2010 upon the recommendation 
of the audit committee pwc will be proposed for reelection by 
shareholders at the agm to be held on 11 february 2011 pwc have 
conﬁ rmed their independence as auditors of the company in a 
letter addressed to the directors
directors’ report
corporate governance report
continued
th017p4959indd 54 th017p4959indd   54 21122010 2238 21122010   2238 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 55
nominations committee
meetings seven
members
michael beckett chairman
dawn airey
david allvey
roger burnell
bo lerenius
peter middleton
meetings also attended by
manny fontenlanovoa group chief executive ofﬁ cer
derek woodward group company secretary
michael beckett
chairman
role of the committee
the board has delegated to the committee responsibility for reviewing 
and proposing appointments to the board and for recommending 
any other changes to the composition of the board or the board 
committees the principal responsibility of the committee is to make 
recommendations to the board on all new appointments to the board 
as well as board balance and composition the committee ensures 
that there is clarity in respect of the role description and capabilities 
required for such appointments the committee is also responsible for 
reviewing at least every six months or more frequently if required the 
directors’ potential conﬂ icts and for making recommendations to the 
board in respect of authorising such matters
the full terms of reference of the committee are available on 
wwwthomascookgroupcom or from the group company secretary 
at the registered ofﬁ ce
composition of the committee
the chairman and all of the independent nonexecutive directors 
are members of the committee peter middleton and dawn airey 
were appointed members of the committee on being appointed 
to the board on 30 november 2009 and 12 april 2010 respectively 
nigel northridge left the committee upon his resignation from the 
board on 25 march 2010
board appointments
appointments to the board are made on merit and against objective 
criteria this process is led by the committee which after evaluating 
the balance of skills knowledge and experience of each director 
makes recommendations to the board
principal activities during the year
at its meetings during the year the committee discharged its 
responsibilities as listed above and in particular
• recommended the appointment of sam weihagen to the board 
as deputy to the group chief executive ofﬁ cer
• monitored the process in respect of the search and selection of a 
new group chief financial ofﬁ cer leading to a recommendation 
for the appointment of paul hollingworth
• considered the reappointment of the directors subject to 
retirement by rotation before making a recommendation to 
the board regarding their reelection
• commenced and monitored the process to recruit additional 
nonexecutive directors leading to recommendations for the 
appointments of peter middleton and dawn airey
• recommended the appointment of roger burnell as the senior 
independent director
• considered the process and indicative timing in relation to 
the succession of michael beckett as chairman and
• considered directors’ potential conﬂ icts see page 53
chairman succession
michael beckett has indicated that he will retire from ofﬁ ce at 
the agm in 2012 the committee has considered the process 
to appoint his successor in line with the code which it will 
commence after the agm in 2011 with a view to ensure that 
there will be sufﬁ cient time for induction of the chairman 
elect and a smooth succession into the role
appointment process
in respect of the appointment of a new group chief financial 
ofﬁ cer the committee engaged spencer stuart an external search 
ﬁ rm and the chairman of the audit committee was also involved 
with the interviews of the shortlisted candidates in respect of the 
process to appoint two new nonexecutive directors to the board 
the committee formulated a set of criteria including the required 
skills and attributes for suitable candidates this took account of 
the comments from the board evaluation process and considered 
the current composition of the board and the skills and attributes 
required in the future the committee considered candidates brought 
to their attention from a wide range of professional ﬁ rms and other 
sources the conditional appointment of peter marks has been 
monitored and recommended by the committee but was brought 
about due to the proposed retail joint venture with the cooperative 
group and midlands cooperative and as such an external search 
agent was not used the process to identify and appoint a new 
chairman will be conducted by the committee under the leadership 
of the senior independent director an external search and selection 
ﬁ rm will be appointed to assist the committee with this appointment
th017p4959indd 55 th017p4959indd   55 23122010 1937 23122010   1937 56 thomas cook group plc annual report  accounts 2010
remuneration committee
meetings seven
members
peter middleton chairman
roger burnell
bo lerenius
meetings also attended by
david allvey chairman audit committee 
michael beckett chairman
manny fontenlanovoa group chief executive ofﬁ cer
paul wood group director human resources
derek woodward group company secretary
peter middleton
chairman
a report detailing the composition responsibilities and work carried 
out by the remuneration committee during the year including 
an explanation of how it applies the principles of the code in 
respect of executive directors’ remuneration is included within 
the remuneration report on pages 59 to 69
composition of the committee
all members of the committee are independent nonexecutive 
directors during the year nigel northridge was chairman of the 
committee until his resignation from the board on 25 march 2010 
on the same day peter middleton was appointed a member and 
succeeded nigel northridge as chairman 
health safety  environmental committee
meetings five
members
roger burnell chairman
dawn airey
david allvey
manny fontenlanovoa
meetings also attended by
michael beckett chairman
executives and senior managers with responsibility for health 
safety and environmental matters
derek woodward group company secretary
stephanie mackie deputy group company secretary
roger burnell
chairman
composition of the committee
dawn airey was appointed as a member of the committee on 
23 september 2010
role of the committee
the board has delegated to the committee responsibility to review 
develop and oversee consistent policy standards and procedures 
for managing health safety and environmental risks to the group’s 
business it is also responsible for the review and oversight of 
compliance with relevant legislation and regulation relating to 
health safety and the environment across the group
the full terms of reference of the committee are available on
wwwthomascookgroupcom or from the group company secretary 
at the registered ofﬁ ce
principal activities during the year
at its meetings during the year the committee discharged its 
responsibilities as listed above and in particular 
• reviewed and agreed the group’s sustainability report for 2009 
• monitored implementation of the groupwide strategy for health 
and safety including the introduction of approved group preferred 
practice across all markets 
• reviewed the groupwide approach to sustainability and agreed 
an implementation plan 
• reviewed current and future legislative requirements in relation 
to climate change and carbon reporting 
• considered the risks of waterborne illness in destination markets 
and actions to mitigate these 
• reviewed the group’s emergency procedures particularly in the 
light of the closure of airspace due to the volcanic ash cloud 
• considered the business risks of water scarcity in destination 
markets and
• monitored progress in relation to the group’s programme of 
government affairs
the group’s 2009 sustainability report is available on
wwwthomascookgroupcomsustainability and contains the
group’s health safety and environmental policies an explanation 
of how thomas cook manages sustainability and progress against 
targets the 2010 sustainability report will be available on
wwwthomascookgroupcom in february 2011 
a summary of the approach and group’s performance in relation
to sustainability is contained on pages 38 to 41 of the directors’ 
report – business review
directors’ report
corporate governance report
continued
th017p4959indd 56 th017p4959indd   56 23122010 1937 23122010   1937 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 57
board
• ultimate responsibility
responsibilities
• supervising a thorough and regular evaluation of the nature
and extent of the risks to which the company is exposed
• reviewing the corporate risk proﬁ le and recommending
risk management strategies and
• supervising and assessing the overall effectiveness
of the risk management process
1
uk risk management 
committee
2
central europe risk 
management committee
5
north america risk 
management committee
6
airlines germany risk 
management committee
3
west  east europe risk 
management committee
4
northern europe risk 
management committee
group executive board audit committee
group risk management committee 
report into and support
finance  administration committee 
to facilitate swift and efﬁ cient operational management decisions 
the board has established the finance  administration committee 
comprising any two directors one of whom must be an executive director 
which has delegated authority within clearly identiﬁ ed parameters 
in relation to daytoday ﬁ nancing and administrative matters
disclosure committee 
the board has established a disclosure committee which is 
responsible for implementing and monitoring systems and controls 
in respect of the management and disclosure of inside information 
in accordance with the company’s obligations under the uk listing 
authority’s disclosure and transparency rules the committee 
comprises the group chief executive ofﬁ cer who is the chairman 
the group chief financial ofﬁ cer and the group company secretary
shareholder communication
the board promotes open communication with shareholders this is 
formalised within a framework of an investor relations programme 
conducted by the group chief executive ofﬁ cer the group chief 
financial ofﬁ cer and the investor relations team the programme 
included the presentation of preliminary and halfyear results and 
a strategy day which can be accessed on the thomas cook group 
website at wwwthomascookgroupcom along with ﬁ nancial reports 
interim management statements investor presentations and trading 
updates the management team conducts regular meetings with 
institutional investors and welcomes the dialogue that this 
enables with shareholders the company makes every effort 
to ascertain investor perceptions of the company and regular 
reports of investor and analyst feedback are provided to the board 
additionally the board responds to ad hoc requests for information 
and all shareholders are entitled to attend the agm where they 
have an opportunity to ask questions of the board
the chairman and the chairman of the remuneration committee 
met a number of major institutional shareholders during the year 
to discuss the group’s remuneration policy and proposed changes 
to the performance targets for the group’s executive longterm 
incentive plans the chairman met separately with a number of 
major institutional shareholders to discuss governance arrangements 
and to gain a ﬁ rsthand understanding of any issues or concerns they 
may have had 
at its 2008 agm a resolution was passed allowing the company to use 
its website and email as the primary means of communication with 
its shareholders this arrangement provides signiﬁ cant beneﬁ ts for 
shareholders and the company in terms of timeliness of information 
reduced environmental impact and cost shareholders may still opt 
to receive their communications in a paper format the company’s 
corporate website was upgraded during the year and contains 
information for shareholders including share price information and 
news releases it can be found at wwwthomascookgroupcom
risk identiﬁ cation  reporting
each of the six segments has a risk management committee which 
meets regularly by implementing the risk management policy the 
segments are responsible for
• maintaining and updating risk reporting
• managing risk action implementation and measurement 
systems and
• maintaining and reviewing risk performance and 
measurement systems
risk registers are compiled and submitted by each segment for 
review quarterly in addition a central risk register is maintained and 
updated by risk owners the grmc prepares a halfyearly risk report 
for the attention of the audit committee based on the feedback from 
the segment risk management committees and also a top down 
review of the risk register
the report and the risk register identify the principal risks to the 
business and assess the adequacy of controls and procedures in place 
to mitigate the likelihood and the impact of these risks there are also 
risk management and internal control
the board recognises its ultimate accountability for maintaining an effective system of internal control and risk management that is appropriate 
in relation to both the scope and the nature of the group’s activities and complies with the turnbull committee guidance on the combined 
code the ‘turnbull guidance’ and has approved the framework and the standards implemented such a system is designed to manage rather 
than eliminate the risk of failure to achieve business objectives and can provide only reasonable but not absolute assurance against material 
misstatement or loss the board has delegated responsibility for the implementation of the group risk management policy to the group risk 
management committee ‘gmrc’ which is chaired by the group chief financial ofﬁ cer and comprises senior executives from across the group
th017p4959indd 57 th017p4959indd   57 21122010 2238 21122010   2238 58 thomas cook group plc annual report  accounts 2010
reports to the grmc by speciﬁ c risk owners on the effectiveness of 
actions taken to mitigate risks the regular risk reporting regime has 
created an environment for the development and improvement of 
risk management procedures across the group the audit committee 
reviews the reports of the gmrc and makes recommendations to 
improve risk management and internal control this process of risk 
identiﬁ cation measurement and reporting provides a comprehensive 
ongoing assessment of the signiﬁ cant risks facing the group and the 
mitigating actions taken in respect of those risks this process ensures 
that the group complies with relevant corporate governance best 
practice in relation to risk management including the guidance issued 
under the turnbull guidance the group’s internal audit function 
reports directly to the chairman of the audit committee internal 
audit makes recommendations to that committee in relation to the 
maintenance of a sound control environment throughout the group
a schedule of the group’s principal risks and uncertainties likely 
impacts on the group and mitigating actions being taken by 
management is set out on pages 24 to 25 of the directors’ report  
business review
whistleblowing
the group encourages employees to report any concerns which they 
feel need to be brought to the attention of management and has 
adopted a whistleblowing policy and theft and fraud reporting policy 
these are published on the group’s intranet sites allowing such 
matters to be raised in conﬁ dence through the appropriate channels
code of ethics
the group has a code of ethics which deals with
• prohibitions on employees using their position for personal gain 
• prohibitions on improper business practices
• a requirement for compliance with all internal approval and 
authorisation procedures and legal requirements and
• a requirement to disclose potential conﬂ icts of interest and 
potential related party contracts
this code of ethics is contained within the group’s internal policies 
guide which is available to all employees and in particular those 
with responsibility for procurement or other dealings with thirdparty 
suppliers in addition the group company secretary is available for 
advice on any matter which may give rise to cause for concern in 
relation to the code of ethics
the group code of ethics has been further reinforced during the year 
by the introduction of a disclosure of interests and beneﬁ ts policy 
which applies to senior executives in the group this supplements 
similar policies that are in place in each of the segments
review of group system of internal control
during the year the board through the work of the audit committee 
has conducted a review of the group’s system of internal control 
there is an ongoing process for the identiﬁ cation and evaluation of 
risk management and internal control processes which has been in 
place throughout the year and remains in place up to the date of the 
ﬁ nancial statements this includes the process by which management 
prepares consolidated accounts the work conducted by management 
and described on pages 57 to 58 is complemented supported and 
challenged by the controls assurance work carried out independently 
by the external auditors pwc and the internal auditors ey regular 
reports on control issues are presented to the audit committee by 
pwc and ey the board in reviewing the effectiveness of the system 
of internal control can conﬁ rm that necessary actions have been 
or are being taken to remedy any signiﬁ cant failings or weaknesses 
identiﬁ ed from that review
going concern
after making appropriate enquiries the directors have a reasonable 
expectation that the company and the group have adequate 
resources to continue in operational existence for the foreseeable 
future for this reason they continue to adopt the going concern 
basis in preparing the ﬁ nancial statements
statement of directors’ responsibilities in respect 
of the annual report the directors’ remuneration 
report and the financial statements
the directors are responsible for preparing the annual report 
the directors’ remuneration report and the ﬁ nancial statements 
in accordance with applicable law and regulations company law 
requires the directors to prepare ﬁ nancial statements for each 
ﬁ nancial year under that law the directors have prepared the 
group and the company ﬁ nancial statements in accordance with 
international financial reporting standards ifrss as adopted by the 
european union the ﬁ nancial statements are required by law to give 
a true and fair view of the state of affairs of the company and the 
group and of the proﬁ t or loss of the group for that period
in preparing those ﬁ nancial statements the directors are required to
• select suitable accounting policies and then apply them consistently
• make judgements and estimates that are reasonable and 
prudent and
• state that the ﬁ nancial statements comply with ifrss as adopted by 
the european union
the directors conﬁ rm that they have complied with the above 
requirements in preparing the ﬁ nancial statements
the directors are responsible for keeping proper accounting records 
that disclose with reasonable accuracy at any time the ﬁ nancial 
position of the company and the group and for ensuring that the 
ﬁ nancial statements and the directors’ remuneration report comply 
with the companies act 2006 and as regards the group ﬁ nancial 
statements article 4 of the ias regulation they are also responsible 
for safeguarding the assets of the company and the group and hence 
for taking reasonable steps for the prevention and detection of fraud 
and other irregularities
the directors are responsible for the maintenance and integrity of the 
company’s website and legislation in the united kingdom governing 
the preparation and dissemination of ﬁ nancial statements may differ 
from legislation in other jurisdictions
disclosure of information to auditors
each of the directors who held ofﬁ ce at the date of approval of 
this directors’ report conﬁ rms that so far as they are aware there 
is no relevant audit information of which the company’s auditors 
are unaware and that they have taken all steps that they ought to 
have taken as a director to make them aware of any relevant audit 
information and to establish that the company’s auditors are aware 
of that information
responsibility statement of the directors in respect 
of the annual financial statements
each of the directors who were in ofﬁ ce at the date of this report 
whose names and responsibilities are listed on pages 46 and 47 
conﬁ rm that to the best of their knowledge
• the group ﬁ nancial statements which have been prepared in 
accordance with ifrss as adopted by the eu give a true and fair 
view of the assets liabilities ﬁ nancial position and proﬁ t of the 
group and
• the directors’ report contained on pages 3 to 71 includes a fair 
review of the development and performance of the business 
and the position of the group together with a description of the 
principal risks and uncertainties that it faces
directors’ report
corporate governance report
continued
th017p4959indd 58 th017p4959indd   58 23122010 1937 23122010   1937 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 59
directors’ report
remuneration report
dear shareholder
on behalf of the board i am pleased to present the directors’ 
remuneration report for the year to 30 september 2010 this 
report explains the group’s remuneration policy and provides 
details of the remuneration of the executive and nonexecutive 
directors for services to the company during the year 
as the chairman and the group chief executive ofﬁ cer indicated 
in their statements the current economic climate and a number 
of other signiﬁ cant challenges during the year created a very 
difﬁ cult operating environment despite this many of our 
segments have delivered increased ﬁ nancial results and there 
has been a strong improvement in cash ﬂ ow also management 
have taken positive actions to reinforce our uk business and have 
continued to progress a number of strategic initiatives 
against this difﬁ cult backdrop we must still attract retain 
and motivate high calibre senior executives to manage the 
businesses and deliver against our strategy with this objective 
the committee made changes to the shortterm and longterm 
incentive targets within the structure of the remuneration policy 
which itself remains unchanged 
part of the annual bonus arrangement for the year was 
structured to drive improvements to cash generation in view 
of the success of this targeted approach we are incentivising a 
reduction in exceptional items as well as a further improvement 
to cash generation for the year just started 
in november 2009 the committee conducted a review of the 
longterm incentive performance targets to ensure that they 
were in line with the group’s strategic and ﬁ nancial plans and 
that they were sufﬁ ciently stretching following that review and 
a thorough consultation with shareholders new targets were 
adopted at the 2010 agm before being applied to awards made 
during the year
during the consultation referred to above shareholders were 
informed that the eps targets for the 2008 and 2009 awards 
under the performance share plan and coinvestment plan 
were misjudged and unachievable in line with shareholder 
feedback the committee has not exercised any discretion and 
unfortunately i have to conﬁ rm that despite a compound 
annual growth rate in eps over the three years to september 
2010 of 101 the company has not met the original eps target 
in respect of the 2008 awards therefore these elements of 
management’s compensation packages have lapsed
the committee is mindful of shareholders’ views in relation 
to executive base pay and has agreed for the second consecutive 
year that our executive directors will not receive 
an increase to their base salaries in the year ahead
i was appointed chairman of the committee in march 2010 
and since then i have met with major shareholders and their 
representative bodies to discuss remuneration issues the 
committee continues to be committed to the principles of good 
governance as set out in the combined code and will continue 
our programme of engagement in the future 
the board will be submitting this report for approval by 
shareholders at our annual general meeting on friday 
11 february 2011 
peter middleton
chairman remuneration committee
30 november 2010
information not subject to audit
composition of the committee
the following independent nonexecutive directors are members 
of the remuneration committee the ‘committee’
peter middleton chairman
roger burnell
bo lerenius
during the ﬁ nancial year to 30 september 2010 the ‘year’ 
nigel northridge was chairman of the committee until his resignation 
from the board on 25 march 2010 on the same day peter middleton 
was appointed as member of the committee and succeeded 
nigel northridge as chairman
committee responsibilities
the responsibilities of the committee include
• making recommendations to the board on the company’s 
framework of executive remuneration and its cost
• reviewing and determining on behalf of the board the 
remuneration and incentive packages of the executive directors 
to ensure that they are appropriately rewarded for their individual 
contributions to thomas cook’s overall performance and
• formulating remuneration policy with regard to the strategic 
objectives and operational performance of the company
the terms of reference of the committee are available on
wwwthomascookgroupcom or from the group company secretary 
at the registered ofﬁ ce
principal activities during the year
the committee held seven meetings during the year attendance at 
those meetings is disclosed on page 50 of the corporate governance 
report matters discussed by the committee during the year included
• the group’s remuneration policy
• key trends in executive remuneration
• the market competitiveness of the remuneration packages for 
executive directors and the appropriateness of comparative criteria 
used for the purpose of pay benchmarking
th017p5969indd 59 th017p5969indd   59 23122010 1939 23122010   1939 60 thomas cook group plc annual report  accounts 2010
• reward arrangements for the newly appointed group chief financial 
ofﬁ cer and the deputy to the group chief executive ofﬁ cer
• achievement of the annual bonus targets for executive directors 
in respect of the previous ﬁ nancial year
• the structure and targets of the annual bonus arrangements 
for the year 
• review of the performance targets attached to the longterm 
incentive schemes
• the granting of awards under the thomas cook group plc 2007 
performance share plan ‘psp’ and the thomas cook group plc 
2008 coinvestment plan ‘coip’
• vesting of awards made in 2007 under the psp 
• treatment of executive incentive arrangements following the 
volcanic ash cloud
• pension provision for the executive directors
• appointment of new remuneration advisers and
• institutional shareholder and governance body preagm voting 
recommendations
committee evaluation
the committee evaluated its own performance which took place at 
the time of the board evaluation details of which are on page 52
committee’s advisers
the committee invites individuals to attend meetings as it deems 
beneﬁ cial to assist it in reviewing matters for consideration during 
the year these individuals included the chairman of the company 
the group chief executive ofﬁ cer the group director human 
resources and the group company secretary the chairman of the 
audit committee also usually attends meetings to ensure that there is 
coordination on risk and accounting issues
no director or senior executive is present at meetings when his or her 
own remuneration arrangements are being discussed
in the performance of its duties the committee seeks assistance from 
external advisers where necessary to ensure it is suitably advised during 
the year kepler associates ‘kepler’ and hewitt new bridge street ‘hnbs’ 
provided advice to the committee in the following areas
• trends in executive remuneration
• achievement of longterm incentive performance targets in 
respect of the 2007 psp award
• review of current and introduction of new longterm incentive 
performance targets
• pension provision in respect of the executive directors and 
• the benchmarking of salaries and beneﬁ ts for executive directors
linklaters llp ‘linklaters’ provided advice speciﬁ cally relating to 
the vesting of the award made in 2007 under the psp and the agm 
resolution in respect of the change in longterm incentive performance 
targets linklaters are not appointed by the committee as advisers 
neither kepler nor hnbs advise the company in any other capacity 
linklaters act as legal advisers to the trustee and the company in 
respect of the thomas cook pension plan and to the company in 
respect of the group’s share plans
remuneration policy
the group’s remuneration policy is to ensure that executive directors 
and senior executives are rewarded in a way which attracts and 
retains management of the highest quality and motivates them to 
achieve the highest level of performance consistent with the best 
interests of the group in developing its remuneration policy the 
committee has had regard to the fact that the group has signiﬁ cant 
international operations and in order to compete in the global 
environment for the recruitment retention and incentivisation of 
high quality executive directors and senior executives it must offer 
signiﬁ cant rewards for excellent performance
the committee has therefore set its remuneration policy applying 
the following principles
• the group’s objective is to deliver ﬁ nancial results which 
consistently outperform the average of the industry sector
• the group will look to retain and attract executive directors 
and senior executives with aboveaverage skills and proven 
leadership qualities
• the remuneration of each executive director will be based on 
performance both of the group and the individual executive director 
potential ie the executive director’s potential to grow in responsibility 
and performance and scarcity ie the availability of candidates to 
replace the executive director should he leave the group and
• the proportion between ﬁ xed and variable remuneration will 
typically be targeted at 30 ﬁ xed and 70 variable – see the table 
opposite for the range between target and stretch performance
the committee has determined that its policy for the design of 
remuneration arrangements for executive directors is that the ﬁ xed 
elements of remuneration shall be set in line with the median of a 
speciﬁ ed comparator group of companies and that total earnings 
made up of base salary pension supplement bonus and any 
other performancerelated elements of reward such as longterm 
incentive arrangements shall be targeted at the upper quartile of 
the comparator group subject to the attainment of upperquartile 
performance as gauged by appropriate and challenging performance 
criteria an exception to this policy was agreed for the group chief 
executive ofﬁ cer in september 2008 details of which are given below
the remuneration of executive directors is highly geared towards 
performance with the proportion of ‘at risk’ pay increasing 
disproportionately according to
• the level of personal performance and
• the seniority of the executive director and hisher ability to 
inﬂ uence results
the performance related portion of remuneration rewards shortterm 
and longterm performance separately with the potential level of 
payment being heavily weighted in favour of the long term
in benchmarking the remuneration of executive directors the 
remuneration committee looks at pay levels at other travel and 
leisure sector companies and takes a broader view by considering pay 
at other companies of a similar size to thomas cook where specialist 
functions are concerned the committee may have reference to other 
comparator groups as it considers appropriate
the relative importance of the ﬁ xed and variable elements of the 
remuneration packages of executive directors in circumstances of 
target and stretch performance is shown in the chart opposite
the chart opposite assumes
a base salaries as at 30 september 2010
b value of beneﬁ ts provided in the year
c pension 25 of base salary
d annual bonus
• 60 of full bonus paid at target performance
• 100 of full bonus paid at maximum performance
e performance share plan 25 of the award vests at 
target performance with 100 of the award vesting at 
maximum performance
directors’ report
remuneration report
continued
th017p5969indd 60 th017p5969indd   60 23122010 1939 23122010   1939 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 61
f coinvestment plan an initial investment of
• at target performance 10 of net of tax base pay
• at maximum performance the excess of bonus paid above 100 
of net of tax base pay
at the end of the threeyear performance period initial investment 
will be matched further details are disclosed on page 62
• 051 at target performance
• 351 at maximum performance
remuneration arrangements
the remuneration of the executive directors in respect of the year 
is set out in the audited section of this report
2008 to the upper quartile of the comparator group this recognised 
his appointment as sole group chief executive ofﬁ cer from june to 
december 2007 he was joint chief executive ofﬁ cer and operational 
ﬁ nancial and strategic achievements at the time of awarding this 
increase the committee agreed that the group chief executive ofﬁ cer’s 
base salary should next be reviewed in december 2009 and thereafter 
at annual intervals and an increase would only be made if it was 
required to bring his base salary in line with the remuneration policy 
the committee reviewed the base salary of the group chief executive 
ofﬁ cer in november 2009 and agreed that it should remain at its 
current level a review of market rates of base salary was conducted in 
november 2009 prior to the appointment of sam weihagen as deputy 
to the group chief executive ofﬁ cer and agreeing to appoint paul 
hollingworth as group chief financial ofﬁ cer 
the committee reviewed the base salaries for all of the executive 
directors in november 2010 and agreed that they should remain 
at their current level they will be reviewed again in 2011
the annual rates of base salary as at 30 november 2010 for the 
executive directors are shown in the table below
name
2010
£000
2009
£000
manny fontenlanovoa 850 850
paul hollingworth
1
480 –
sek 000
sam weihagen
2
5600 –
1   paul hollingworth was appointed on 1 january 2010
2   sam weihagen was appointed on 6 november 2009 he receives a base salary of 56 million swedish 
krona per annum as at 30 september 2010 this equated to a base salary of £496000
annual bonus
the committee believes that it is important to incentivise executive 
directors on a shortterm basis with an annual cash bonus earned 
on the attainment of stretching performance targets these targets 
are set by the committee at the start of the ﬁ nancial year and are 
individually tailored for each executive director should all objectives 
be achieved in full the maximum annual bonus opportunity for all 
executive directors is 175 of base salary of the maximum bonus 
payable in respect of the year
i 50 was linked to the attainment of group ﬁ nancial targets and 
is earned on a pro rata basis by reference to the achievement of 
those targets 
ii 25 was linked to the attainment of quarterly group cumulative 
free cash ﬂ ow targets and
iii 25 was linked to the attainment of individual and other 
nonﬁ nancial criteria which included targets in the areas of 
strategy customer satisfaction employee engagement executive 
succession planning government affairs corporate reﬁ nancing 
and health and safety
the committee determines the extent to which it considers the objectives 
have been met and the annual bonus payable for the year the committee 
also took account of the signiﬁ cant progress against a number of strategic 
initiatives and awarded the following percentages of the maximum bonus 
achievable 
name percentage of maximum bonus awarded
manny fontenlanovoa 80
paul hollingworth 80
sam weihagen 80
relative importance of ﬁxed and variable remuneration
 of total remuneration
0
20
40
60
80
100
target 
performance
stretch
performance
target 
performance
stretch
performance
target 
performance
stretch
performance
deputy to 
the group ceo
variable
fixed
group chief 
financial ofﬁcer
group chief 
executive ofﬁcer
for the year the remuneration of the executive directors comprised 
base salary annual bonus participation in the psp and the coip  
other beneﬁ ts including the provision of pensions private health 
insurance disability cover personal accident cover death in service 
beneﬁ t and a car allowance the only component of executive 
remuneration which is pensionable is base salary
the remuneration arrangements for sam weihagen deputy to the 
group chief executive ofﬁ cer appointed 6 november 2009 and
paul hollingworth the new group chief financial ofﬁ cer appointed 
on 1 january 2010 were set by the committee in line with the 
remuneration policy having regard also for market rates of pay 
for these positions
during the year the committee considered whether the current 
remuneration structures were likely to drive unacceptable behaviours 
or attitudes to risk on the part of executives directors the committee 
concluded that it was satisﬁ ed with the current remuneration 
structure policy and performance targets in relation to risk 
base salary
in accordance with the group’s remuneration policy the base salary of 
executive directors reﬂ ects the size and scope of their responsibilities 
as an exception to the policy to set base salaries at median the base 
salary of the group chief executive ofﬁ cer was increased in september 
th017p5969indd 61 th017p5969indd   61 21122010 2239 21122010   2239 62 thomas cook group plc annual report  accounts 2010
it is intended that the annual bonus for the year ended 30 september 
2011 will be structured in the following way
i 50 to be linked to group ﬁ nancial targets including 125 
linked to the reduction in exceptional items
ii 25 to be linked to the attainment of quarterly group cumulative 
free cash ﬂ ow targets and
iii 25 to be linked to the attainment of individual and 
nonﬁ nancial objectives
pensions
the committee believes that the executive directors should be 
provided with competitive postretirement beneﬁ ts in respect 
of manny fontenlanovoa and paul hollingworth the company 
contributes each year into a pension scheme or other arrangement 
for each of them to an amount equivalent to 25 of base salary 
the company also contributes to a deﬁ ned beneﬁ t pension scheme 
in respect of sam weihagen under his pension arrangement sam 
weihagen is entitled to a bridging pension payable between the ages 
of 60 and 65 of 70 of his ﬁ nal salary and a lifetime pension payable 
from 65 of 30 of his ﬁ nal salary less the swedish state pension
from age 60 when the company’s contributions to the above pension 
ceased sam weihagen was paid a salary supplement of 25 of his 
base pay since reaching age 60 sam weihagen has not drawn any of 
his bridging pension which will be subject to actuarial adjustment 
once it is drawn the table on page 69 discloses these arrangements
longterm incentive plans
the committee believes that inﬂ uencing longterm performance and 
the close alignment of executive directors’ remuneration with the 
interests of shareholders is an important element of the company’s 
remuneration policy therefore the following two sharebased 
longterm incentive plans both of which have been approved by 
shareholders have been designed to reward and retain executive 
directors and key senior executives over the longer term whilst also 
aligning with the interests of the company’s shareholders
in line with market practice awards vest three years after the award 
date providing the participant is still employed by a company within 
the group and to the extent that the performance target has been 
met unless there are exceptional circumstances awards are made 
annually within 42 days of the company’s annual ﬁ nancial results 
being announced no award can be made under either plan later 
than ten years after the anniversary of the adoption date and options 
are not exercisable later than ten years after the date of the award 
neither plan has a performance target retest provision 
thomas cook group plc 2007 performance share plan ‘psp’
during the year psp awards equal to the following percentages of 
base salary were made to the executive directors
name percentage of base salary
manny fontenlanovoa 175
paul hollingworth
1
200
sam weihagen 150
1   as an exception to the remuneration policy the committee agreed that paul hollingworth would 
receive an award equal to 200 of base salary for the ﬁ rst two years following his appointment 
thereafter his awards will revert to 150 of base salary
awards with a value of 100 or less of base salary were also made 
to other senior executives the committee currently intends to make 
awards in january 2011 on the same basis as above 
thomas cook group plc 2008 coinvestment plan ‘coip’
under the coip  executive directors and key executives must purchase 
the company’s shares out of their bonus if the bonus paid is below 
100 of salary 10 of the participant’s net base salary or the whole 
of the net bonus if less must be invested if the bonus paid is above 
100 of base salary all of the bonus payable above 100 of base 
salary subject to the minimum investment of 10 of net base salary 
must be used to acquire shares participants can also choose to 
invest a further part of their bonus to purchase shares the shares 
purchased either on a voluntary or mandatory basis are referred 
to as lodged shares participants may receive up to three and a 
half matching shares for every one lodged share at the end of the 
performance period subject to the satisfaction of the performance 
target the requirement for compulsory investment under the coip 
will cease once the value of all shares held by a participant reaches 
a value equal to 200 of base salary this level of shareholding must 
be maintained the number of lodged shares held by each executive 
director and the percentage of base salary that represents based on 
a market value of 1718p as at 30 september 2010 is detailed below
name
number of lodged 
shares held
percentage
of base salary
manny fontenlanovoa 850802 172
paul hollingworth
1
83568 30
sam weihagen 89010 31
1   paul hollingworth invested £150000 and £40000 in february and may respectively of his own funds into 
the coip as he did not qualify for a bonus payment having only joined the company on 1 january 2010
review of performance conditions attached to longterm 
incentive plans
in november 2009 the committee conducted a detailed review 
of the performance targets attached to the psp and coip awards 
this was to ensure that they were in line with the group’s strategic 
and ﬁ nancial plans that they were sufﬁ ciently stretching and that 
they also provided realistic incentives for executives as a result of 
the review the committee concluded that the performance targets 
did not satisfy the above criteria and consulted with the company’s 
major shareholders and their representative bodies regarding the 
following proposals 
• to change the earnings per share ‘eps’ target for both the psp 
and the coip from an absolute target stated in pence for each cycle 
to a standard compound annual growth rate in eps of 6 to 14 
over the threeyear period the committee believed that changing 
the way the target is measured would improve the credibility with 
participants because a new rate would not have to be set for each 
cycle of awards 
• to introduce a total shareholder return ‘tsr’ component to the 
coip  this would mean that both plans would have a performance 
target which is 50 eps and 50 tsr
• to introduce a second tsr comparator group for both the psp 
and the coip  consisting of a tailored peer group of international 
travel operators this would be equally balanced with the 
previously used comparator group based on the 50 companies 
at the bottom of the ftse 100 and the 50 companies at the top 
of the ftse 250 the committee believed that the introduction of 
this second tsr comparator group would improve the relevance 
of the performance target to participants and
• the return on invested capital ‘roic’ measure would remain in 
respect of the coip 
following the consultation the board decided that it was appropriate 
in view of the new methodology being proposed to seek shareholder 
approval for the new performance targets even though it was not 
required a resolution put to the agm on 25 march 2010 to approve 
the new performance targets was passed with 998 of the vote 
directors’ report
remuneration report
continued
th017p5969indd 62 th017p5969indd   62 21122010 2239 21122010   2239 directors’ report 
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thomas cook group plc annual report  accounts 2010 63
year of award vesting criteria performance targets over threeyear period
performance share plan
2007 2008 and 2009 50 – total shareholder return
ranked against the comparator group
full vesting for upper quartile ranking zero vesting for 
submedian ranking vesting will increase on a straight line 
basis from 25 to 100 of the tsr linked part of the initial 
award for ranking between median and upper quartile
50 – earnings per share july 2007 award full vesting for adjusted eps of 28 pence or 
above zero vesting for eps below 23 pence vesting will increase 
on a straight line basis from 25 to 100 of the eps linked part 
of the initial award for eps between 23 pence and 28 pence
march 2008 award the same vesting schedule applies as for the 
july 2007 award but the eps target is 28 pence to 33 pence
january and june 2009 awards the same vesting schedule 
applies as for the july 2007 award but the eps target is 
35 pence to 40 pence
2010 50 – total shareholder return ranked equally 
against the following comparator groups
•   the 50 companies at the bottom of the
ftse 100 and the 50 companies at the top
of the ftse 250 and 
•   sector speciﬁ c comparator group
see page 64
full vesting for upper quartile ranking zero vesting for 
submedian ranking vesting will increase on a straight line 
basis from 25 to 100 of the tsr linked part of the initial 
award for ranking between median and upper quartile 
each comparator group determines 25 of the award
50 – earnings per share full vesting for eps growth of 14 or greater zero vesting for 
eps growth of less than 6 vesting will increase on a straight 
line basis from 25 to 100 of the eps linked part of the award 
for eps growth between 6 and 14
coinvestment plan
2008 and 2009 100 – earnings per share june 2008 award vesting of up to 25 matching shares for 
adjusted eps of 33 pence or above zero vesting for eps below 
28 pence vesting will increase on a straight line basis from 
05 matching shares to 25 matching shares for eps between 
28 pence and 33 pence subject to the roic ratchet see below 
january june and august 2009 awards the same vesting 
schedule applies as for the june 2008 awards but the eps target 
is 35 pence to 40 pence
2010 50 – earnings per share vesting of up to 25 matching shares for eps growth of 14 or 
greater zero vesting for eps growth of less than 6 vesting will 
increase on a straight line basis from 25 to 100 of the eps 
linked part of the award for eps growth between 6 and 14
50 – total shareholder return ranked equally 
against the following comparator groups
•  the 50 companies at the bottom of the ftse 
100 and the 50 companies at the top of the  
ftse 250 and
•  sector speciﬁ c comparator group
see page 64
vesting of up to 25 matching shares for upper quartile 
ranking zero vesting for submedian ranking vesting will 
increase on a straight line basis from 25 to 100 of the tsr 
linked part of the initial award for ranking between median 
and upper quartile each comparator group determines 25 
of the award
2008 2009 and 2010 return on invested capital achievement if roic is below 4 no matching shares will vest if roic is 
between 4 and 6 a reduction of up to 40 is applied on 
a straightline basis if roic is between 6 and 10 matching 
shares vest according to eps performance only eps and tsr 
performance for the 2010 award overall opportunity of up to 
25 times a participant’s investment if roic is between 10 and 
14 an uplift of up to 40 is applied on a straight line basis 
subject to a maximum uplift of 40 for roic in excess of 14 
this will increase the matching ratio to 35 matching shares for 
every one lodged share
th017p5969indd 63 th017p5969indd   63 23122010 1939 23122010   1939 64 thomas cook group plc annual report  accounts 2010
selection of longterm incentive performance conditions 
a further explanation of each performance target element is 
given below
• tsr in relation to the psp and coip tsr has been chosen by the 
committee as it is considered by the committee to be aligned 
with shareholder interests the tsr element is divided into two 
comparator groups
– psp 2007 2008 2009 and psp and coip 2010 the ﬁ rst 
comparator group consists of the 50 companies at the bottom 
of the ftse 100 and the 50 companies at the top of the ftse 
250 this was chosen as it is a broad group of companies of 
similar size and against which the performance of the company’s 
management should be judged this comparator group excludes 
investment companies and
– psp and coip 2010 the second comparator group consists of a 
tailored peer group of international travel operators see details 
opposite the committee believes that this second comparator 
group improves the relevance of the performance target to 
participants
the constituent members of both of the comparator groups are 
determined on the date the awards are made at the end of the 
performance period tsr calculations will be performed by the 
company’s external advisers using the 90 day average share price 
at the start and end of the performance period 
• eps in relation to the psp and coip eps was chosen as it is 
regarded as a good reﬂ ector of business performance 
– psp and coip 2007 2008 and 2009 the committee was advised 
that an absolute target was considered more appropriate than a 
percentage growth target as there was little historic data for the 
company having only been established in 2007 the eps target 
range was set by reference to early consensus forecasts
– psp and coip 2010 the eps target was set as a compound 
annual compound growth rate over a threeyear period 
eps will be derived from the income statement for the last 
ﬁ nancial year ending prior to the end of the performance period
• roic in relation to the coip roic was chosen to measure the 
efﬁ ciency of the use of the group’s capital in achieving the 
underlying earnings target the roic ranges were set by reference 
to the weighted average cost of capital used by the group for the 
purposes of impairment testing roic will be calculated over the 
threeyear performance period by taking the post tax operating 
proﬁ t over the performance period and dividing this by the sum 
of the opening capital for each year in the period
the committee will review the performance conditions attached to 
any future awards to ensure they are stretching and that the interests 
of the executive directors and senior management are aligned 
with shareholders 
it is currently intended that further awards will be made in 
january 2011 with the same performance targets used in 2010 
attached to them
details of the performance targets attached to each psp and coip 
award are detailed in the table on page 63
directors’ report
remuneration report
continued
the sector speciﬁ c comparator group applied to the 2010 psp and 
coip awards consists of the following companies
company name
country of
main listing
company name
country of
main listing
accor sa france air berlin plc germany
air franceklm sa france avis budget group inc us
avis europe plc uk british airways plc uk
carnival corp us deutsche lufthansa ag germany
easyjet plc uk expedia inc us
flight centre limited australia hogg robinson group plc uk
holidaybreak plc uk
intercontinental hotels 
group plc
uk
kuoni reisen holding ag switzerland
millennium  copthorne 
hotels plc
uk
pricelinecom inc us royal caribbean cruises ltdus
ryanair holdings plc ireland sas ab sweden
transat at inc canada trigano sa france
tui travel plc uk
committee action in respect of the 2007 psp award
the psp award made in july 2007 reached the end of its threeyear 
performance period during the year in relation to the eps element 
of the award the committee wanted to ensure that eps was 
calculated on a likeforlike basis at the beginning and at the end of 
the performance period accordingly the committee used its power 
allowed under the psp rules to adjust the eps ﬁ gure for the year 
ended 30 september 2009 in so far as it applied to the 2007 psp 
award vesting as the earnings had been adversely affected by 
• the decision approved by the board to fully draw the ﬁ nancing 
facility in october 2008 to avoid the risks from the market 
interruption caused by the lehman brothers insolvency and the 
subsequent banking crisis
• the decision approved by the board to only invest liquidity 
overnight to avoid bank insolvencies and
• a net interest charge arising from the mismatch of assumed interest 
received on pension asset and interest paid on pension liabilities 
this item is noncash and beyond management control in the 
shortterm
the committee also determined that the adjusted eps ﬁ gure would 
be the starting ﬁ gure for the eps element of the 2010 psp and coip 
performance targets 
the result was that the eps element of the performance target vested 
at 98 the participants were permitted to exercise the eps element in 
march 2010 as the level of performance had already been agreed by 
the committee to the extent that the eps element of the award was 
exercised prior to 12 july 2010 the participants were required to retain 
the resulting shares after the sale of sufﬁ cient shares to cover the 
income tax and social security contributions arising on the exercise 
until 12 july 2010 the third anniversary of the date of award
in relation to the tsr element of the award the committee agreed 
that the volcanic ash cloud further information on the vac can be 
found on page 7 was an exceptional event and had a distorting effect 
on the share price therefore having received advice from external 
advisers the committee agreed that it was appropriate to end the tsr 
measurement period on 15 april 2010 the ﬁ rst date when uk and 
european airspace was closed accordingly the tsr element of the 
2007 award vested at 37 this meant that the total level of vesting 
for the 2007 psp award was 675
participants were not allowed to exercise the tsr element of the 2007 
psp award prior to 12 july 2010 the third anniversary of the date of 
award from that date to the date of this report the company has been 
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thomas cook group plc annual report  accounts 2010 65
in a prohibited period then a close period therefore at the date of this 
report participants including executive directors have not been able 
to exercise the tsr element of their 2007 psp award nor have they been 
able to sell the net number of shares received from the early exercise of 
the eps element of the award
2008 psp and coip awards 
during the consultation referred to above shareholders were informed 
that the eps targets for the 2008 and 2009 awards under the psp 
and coip awards were misjudged and unachievable in line with 
shareholder feedback the committee has not exercised any discretion 
and unfortunately despite a compound annual growth rate in eps over 
the three years to september 2010 of 101 the company has not met 
the original eps target in respect of the 2008 awards therefore these 
elements of management’s compensation packages have lapsed
change of control and other circumstances
in the event of a change of control the awards under both the psp 
and coip shall vest at the committee’s discretion taking into account 
the period of time for which the award has been held by participants 
and the extent to which performance conditions have been achieved 
since the award date after an independent valuation of performance 
to date where options have been granted participants would have six 
months following the change of control to exercise their options to the 
extent permitted by the committee on the death of a participant or in 
the case of early termination of a participant’s employment where the 
committee has used its discretion participants or their representatives 
would have twelve and six months respectively to exercise their options 
to the extent permitted by the committee
funding of share plans
it is the company’s current intention to satisfy the requirements 
of its share plans in the method best suited to the interests of 
the company either by acquiring shares in the market or subject 
to institutional shareholder guidelines issuing new shares the 
committee has agreed that it is prudent and appropriate to hedge the 
shares awarded under the psp and the matching element awarded 
under the coip  as at 30 september 2010 4282801 shares were held 
in the thomas cook group plc 2007 employee beneﬁ t trust which 
represents 17 of share incentive awards held on that date and 
05 of the total issued share capital the level of hedging will be 
kept under review subject to the rules of the plans awards cannot 
be made if awards under any discretionary employee share plan 
operated by thomas cook group plc in the preceding tenyear period 
would exceed 5 of the company’s issued share capital at that time
the trustee would not normally vote at general meetings on the 
thomas cook group plc shares held in the employee beneﬁ t trust 
and did not vote at the agm held in march 2010
pay and conditions across the group
the group operates in a signiﬁ cant number of different countries and 
has many employees who do a diverse range of jobs therefore it is 
difﬁ cult to take into account pay and employment conditions across 
the group speciﬁ cally when setting the remuneration of the executive 
directors however 
• all employees including the directors are paid by reference to the 
market rate
• quality performance is rewarded through a number of performance 
related bonus schemes across the group
• the group offers internal promotion opportunities
• the group offers employment conditions which are commensurate 
with a large uk listed company including high standards of health 
and safety and equal opportunity policies
• the group offers a range of beneﬁ ts depending on employee 
location including pension ﬂ exible beneﬁ ts paid annual leave and 
healthcare insurance and 
• the company believes that share plans are important to align the 
interests of employees and shareholders therefore the company 
offers the following two employee share plans
– sharesave operates in 21 countries and offers employees including 
the executive directors the opportunity to purchase shares at a 
discount to the market value on the invitation date and
– the buy as you earn scheme is open to all ukbased employees 
who have been employed for at least six months including 
ukbased executive directors participants may contribute 
up to £125 per month which the trustee of the plan uses to 
purchase shares on their behalf for every 10 shares purchased 
participants are awarded one matching share
service contracts
each of the executive directors who served during the year has a 
service contract with the company or one of its subsidiary companies 
the date of the service contract and notice period for each executive 
director are set out below
name date of contract
current directors
manny fontenlanovoa 30 january 2008
paul hollingworth 12 november 2009
sam weihagen may 1994
former directors
jürgen büser 1 july 2008
the notice period for executive directors is 12 months the committee 
believes that this is appropriate given the need to retain the specialist 
skills that the executive directors bring to the business and to achieve 
continuity in the company’s senior management either the executive 
director or the company may terminate employment by giving one 
year’s written notice and the company may pay compensation in lieu of 
notice under its terms of reference it is the committee’s responsibility 
to determine the basis on which the employment of an executive 
director is terminated the committee aims to avoid rewarding poor 
performance and to take a robust line on reducing compensation to 
reﬂ ect any obligation to mitigate loss on the part of the departing 
executive director there is no clause in the executive directors’ 
contracts providing them with additional protection in the form 
of compensation for severance as a result of change of control
external appointments
the company recognises the beneﬁ ts to the individual and to the 
group of executive directors taking on external appointments as 
nonexecutive directors subject to the approval of the committee and 
to such conditions as the committee may in its discretion attach an 
executive director may accept such appointments at other companies 
or similar advisory or consultative roles the committee has set a 
limit of one external appointment for each executive director to a 
ftse 100 or ftse 250 company or an international company of a 
similar size unless there is justiﬁ cation for a further appointment 
paul hollingworth group chief financial ofﬁ cer is a nonexecutive 
director of electrocomponents plc for the period from his 
appointment as a director of the company to the end of the year he 
received a fee of £39375 from electrocomponents plc which he is 
allowed to retain
nonexecutive directors
the committee is responsible for determining the fees for the chairman 
of the company the fees for the other nonexecutive directors are set 
by the board no director votes on his or her own remuneration
th017p5969indd 65 th017p5969indd   65 23122010 1940 23122010   1940 66 thomas cook group plc annual report  accounts 2010
directors’ report
remuneration report
continued
the nonexecutive directors’ fees were reviewed during the year the fees 
were benchmarked against other companies in the ftse 350 and following 
the review it was agreed that no increase in the fees should be made 
but a further review will take place in 2011 nonexecutive directors do 
not participate in any bonus plans are not eligible to participate in any 
longterm incentive plans and no pension contributions are made on 
their behalf 
the annual rates of nonexecutive director fees are shown in the 
table below
position
annual fees
£000
chairman 250
nonexecutive director 60
additional fee for the chair of the audit committee 20
additional fee for the chair of the remuneration 
committee
20
additional fee for the chair of the health safety  
environmental committee
10
the fees paid to the chairman and the nonexecutive directors in 
respect of the year are set out in the audited section of this report
nonexecutive directors including the chairman do not hold service 
contracts each of the nonexecutive directors has been appointed 
pursuant to a letter of appointment the appointments under these 
letters continue until the expiry dates set out below unless terminated 
for cause or on the period of notice stated below
name
date of letter 
of appointment expiry date notice period
current directors
michael beckett 13 june 2007 na 6 months
dawn airey 1 april 2010 1 april 2013 6 months
david allvey 22 november 2010 10 april 2012 6 months
roger burnell 22 november 2010 10 april 2012 6 months
bo lerenius 22 november 2010 30 june 2013 6 months
peter middleton 30 november 2009 30 november 2012 6 months
former directors
nigel northridge
1
1 august 2008 see note na
1 nigel northridge resigned as an independent nonexecutive director on 25 march 2010
performance graph
the graph below shows the tsr for holders of thomas cook group plc €010 ordinary shares for the period since listing on 19 june 2007 
measured against the ftse all share travel  leisure index this index was chosen as a comparator because the company has been a constituent 
of it throughout the period since listing the calculation of tsr follows the provisions of the regulations and is broadly the change in market 
price together with reinvestment of dividend income this graph shows the spot value of £100 invested in thomas cook group plc on 19 june 
2007 compared with the value of £100 invested in the ftse all share travel  leisure index the intermediate points are the spot values on the 
company’s financial year ends
30
40
50
60
70
80
90
100
110
ftse all share travel  leisure index
thomas cook group plc 
30910 30909 30908 30907 19607
value £
information subject to audit
directors’ interests in shares
the following table shows the beneﬁ cial interests of the directors who held ofﬁ ce at the end of the year in the €010 ordinary shares of the company
ordinary shares at
30 september 2010
ordinary shares at
1 october 2009
or on appointment
directors as at 30 september 2010
executive directors
manny fontenlanovoa
1
932728 642353
paul hollingworth
1
83568 –
sam weihagen
1
89680 11064
nonexecutive directors
michael beckett 45000 24999
dawn airey 10000 –
david allvey – –
roger burnell 3692 3692
bo lerenius 20000 10000
peter middleton 1000 1000
1  the holdings of the executive directors include shares held as lodged shares under the coip 850802 held by manny fontenlanovoa 83568 held by paul hollingworth and 89010 held by sam weihagen
th017p5969indd 66 th017p5969indd   66 21122010 2240 21122010   2240 directors’ report 
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thomas cook group plc annual report  accounts 2010 67
share options and share awards under longterm incentive plans
the following tables show in respect of each person who served as a director at any time during the year the number of ordinary shares of 
€010 each that were the subject of a share option or a share award at the start of the year or on the date of appointment and at the end 
of the year or on the date of resignation holdings relate to the coip and psp  where a director is awarded an option it is awarded as ‘nil cost’
the following table gives details of psp awards held by executive directors who served during the year
name
date of
award
number of
shares subject
of a share
option or award
share price
used to
calculate award 
pence
number
of share
optionsawards 
exercised 
number
of share 
optionsawards 
lapsed 
date of
exercise
share price on 
date of exercise 
pence
total as at 30 
september 2010 
or on date of 
resignation
manny fontenlanovoa 12 july 2007 283784 333 139054 92230 17 march 2010 243 52500
11 march 2008 389576 283 – – – – 389576
9 january 2009 791223 188 – – – – 791223
12 february 2010 637044 234 – – – – 637044
paul hollingworth 12 february 2010 411134 234 – – – – 411134
sam weihagen 12 july 2007 90945 333 – 29558 – – 61387
11 march 2008 121588 283 – – – – 121588
9 january 2009 227394 188 – – – – 227394
12 february 2010 315979 234 – – – – 315979
jürgen büser 12 july 2007 56306 333 – – – – 56306
11 march 2008 88339 283 – – – – 88339
9 january 2009 339096 188 – – – – 339096
during the period jürgen büser was a director none of his awards were exercised or lapsed
manny fontenlanovoa exercised options over 139054 ordinary shares on 17 march 2010 on the same day he sold 57128 shares at a price 
of 2430642p to cover income tax liability and nics and commission costs the total gain on exercise was £337990 he retained the remaining 
81926 shares after exercise
date of award earliest exercisable date expiration date
12 july 2007 12 july 2010 12 july 2017
11 march 2008 11 march 2011 11 march 2018
9 january 2009 9 january 2012 9 january 2019
12 february 2010 12 february 2013 12 february 2020
for uk participants £30000 of awards can be made and held under a hmrc approved company share option subplan ‘csosp’ the following 
table gives details of awards made under the csosp in conjunction with the psp
date of award 9 january 2009 12 february 2010
total held at
30 september 2010
or on date of 
resignation
manny fontenlanovoa 15957 – 15957
paul hollingworth – 12847 12847
jürgen büser 15957 – 15957
option price pence 188 234
earliest exercisable date 9 january 2012 12 february 2013
expiration date 9 january 2019 12 february 2020
at the date of exercise to the extent that there is a gain on the hmrc approved options psp options will be forfeited to the same value
vesting of awards made under the psp in 2007 2008 and 2009 including the hmrc approved options is dependent on 50 total shareholder 
return ranked against the ftse 50 to 150 comparator group and 50 growth in earnings per share between the end of the year and the date of 
this report it became apparent that the eps target in respect of the 2008 psp award had not been achieved therefore the eps element of this 
award has lapsed vesting of awards made under the psp in 2010 including the hmrc approved options is dependent on 25 tsr ranked against 
the ftse 50 to 150 comparator group 25 tsr ranked against the sector speciﬁ c comparator group and 50 growth in earnings per share further 
information on the performance conditions is detailed on page 63
th017p5969indd 67 th017p5969indd   67 21122010 2240 21122010   2240 68 thomas cook group plc annual report  accounts 2010
the following table gives details of the maximum number of matching shares each executive director can receive under the coip if the performance 
conditions are met in full details of the lodged shares purchased under the coip are included in the directors’ interests in shares table on page 66
name
date of
award 
total number
of matching
shares awarded
number
lapsed during
the year
total held at
30 september 2010
or on date
 of resignation
end of
vesting period
expiration
date
manny fontenlanovoa 25 june 2008 591535 – 591535 25 june 2011 25 june 2018
12 january 2009 1091275 472500 618775 12 january 2012 12 january 2019
13 august 2009 318174 – 318174 13 august 2012 13 august 2019
12 february 2010 1099052 – 1099052 12 february 2013 12 february 2020
21 may 2010 350269 – 350269 21 may 2013 21 may 2020
paul hollingworth 12 february 2010 222435 – 222435 12 february 2013 12 february 2020
21 may 2010 70052 – 70052 21 may 2013 21 may 2020
sam weihagen 12 january 2009 36379 – 36379 12 january 2012 12 january 2019
12 february 2010 205156 – 205156 12 february 2013 12 february 2020
21 may 2010 70000 – 70000 21 may 2013 21 may 2020
jürgen büser 25 june 2008 73941 – 73941 25 june 2011 25 june 2018
12 january 2009 454699 – 454699 12 january 2012 12 january 2019
 during the period jürgen büser was director none of his awards lapsed
on 11 february 2010 manny fontenlanovoa reallocated 135000 lodged shares from his 2009 coip award to his 2010 award accordingly the 
corresponding award of 472500 options granted in 2009 to provide the matching share element for those lodged shares lapsed the reallocated 
lodged shares were those bought on a voluntary basis in 2009 the mandatory element 267700 lodged shares acquired with bonus paid in 
excess of 100 of base salary remains invested in the coip in respect of the 2009 award
vesting of matching shares awarded under the coip in 2008 and 2009 is dependent on growth in eps and return on invested capital
achievement between the end of the year and the date of this report it became apparent that the eps target in respect of the 2008 coip award 
had not been achieved therefore the matching shares in respect of the 2008 award have lapsed vesting of matching shares awarded under the 
coip in 2010 is dependant on growth in eps tsr ranked against the comparator groups and return on invested capital achievement further 
information on the performance conditions is detailed on page 63
the following table gives details of the awards held by the executive directors under the sharesave scheme
name
date of
award
option price
pence
number of
options awarded
date from which
the option may
be exercised
date on which the 
option expires
manny fontenlanovoa 22 june 2010 181 4972 1 august 2013 31 january 2014
none of the directors of the company held any interest in any other securities of thomas cook group plc during the year in the period between 
30 september 2010 and 30 november 2010 there were no changes in the directors’ interests referred to above
the midmarket price of the company’s ordinary shares at the close of business on 30 september 2010 was 1718p and the range during the 
year was 2720p to 1717p these midmarket prices are as quoted on the london stock exchange
directors’ report
remuneration report
continued

th017p5969indd 68 th017p5969indd   68 23122010 1940 23122010   1940 directors’ report 
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financial 
statements
thomas cook group plc annual report  accounts 2010 69
directors’ remuneration
details of the remuneration of the directors for services to the company for the year are disclosed below
name
base
salaryfees
£000
annual
bonus
payments
£000
pay in
lieu of
pension
£000
beneﬁ ts
£000
total
emoluments
2010
£000
total
emoluments
2009
£000
executive directors
manny fontenlanovoa 850 1190 185 47 2272 2365
paul hollingworth
4
360 504 90 20 974 –
sam weihagen
5
454 636 17 10 1117 –
nonexecutive directors
michael beckett 250 – – – 250 250
dawn airey 28 – – – 28 –
david allvey 80 – – – 80 80
roger burnell 70 – – – 70 60
bo lerenius 60 – – – 60 60
peter middleton
6
60 – – – 60 –
past executive directors
7
jürgen büser 71 – 13 5 89 841
past nonexecutive directors
7
nigel northridge 40 – – – 40 60
total 2323 2330 305 82 5040 3716
1  annual bonus entitlement up to 175 of salary for each of the executive directors with 75 paid by reference to ﬁ nancial targets and 25 payable by reference to personal objectives part of the annual bonus 
paid to the executive directors must be invested in lodged shares under the coip – see page 62 for details
2   the pay in lieu of pension which is paid as a salary supplement to manny fontenlanovoa paul hollingworth sam weihagen and jürgen büser is treated as a separate nonsalary beneﬁ t and is excluded from the 
calculation of bonus entitlement and share plan award calculations
3   beneﬁ ts received by the executive directors include a car allowance petrol private medical insurance or cash payment in lieu of medical cover and life assurance
4  paul hollingworth joined the board on 1 january 2010
5 sam weihagen is paid in swedish krona his emoluments have been converted into sterling at the average exchange rate for the year of 113
6  peter middleton also receives a pension of £60500 per year from the thomas cook deﬁ ned beneﬁ t pension scheme this pension is fully funded and accrued in the period 1987 to 1992 when he was ceo of 
thomas cook for the period since his appointment on 30 november 2009 he received £50584 see page 51 of the corporate governance report for further information
7   the following directors left ofﬁ ce on the dates shown jürgen büser 29 november 2009 and nigel northridge 25 march 2010 no director received any payment for loss of ofﬁ ce
directors’ pensions
the company contributes each year into a pension scheme or other arrangement for each of the executive directors to an amount equivalent to 
25 of their annual base salary manny fontenlanovoa and jürgen büser are active members of the thomas cook pension plan a deﬁ ned beneﬁ t 
pension scheme for salary above that which is pensionable manny fontenlanovoa and jürgen büser were paid the balance as a salary supplement 
paul hollingworth is paid 25 of his base salary as a salary supplement the company also contributes to a deﬁ ned beneﬁ t pension scheme in respect 
of sam weihagen under his pension arrangement sam weihagen is entitled to a bridging pension payable between the ages of 60 and 64 of 70 
of his ﬁ nal salary and a lifetime pension payable from 65 of 30 of his ﬁ nal salary less the swedish state pension from age 60 when the company’s 
contributions to the above pension ceased sam weihagen was paid a salary supplement of 25 of his base pay since reaching age 60 sam weihagen 
has not drawn any of his bridging pension which will be subject to actuarial adjustment once it is drawn the table below discloses these arrangements
the pay in lieu of pension salary supplements paid to the executive directors are disclosed in the directors’ remuneration table above
accrued pension at 
30 sep 2010
£ pa
increase in accrued 
pension during 
2010
£ pa
increase in accrued 
pension during 
2010 net of 
inﬂ ation
£ pa
transfer value of 
accrued pension at 
30 sep 2010
£
transfer value of 
accrued pension at 
1 oct 2009
£
director’s 
contribution
during 2010
£
increase in transfer 
value during 2010      
net of director’s 
contribution
£
manny fontenlanovoa 25560 2810 2810 480138 400961 6656 72521
jürgen büser
1 
7000 175 175 80981 78005 547 2429
sam weihagen
2
 pension 
payable from 6064
370872 62604 61579 1807771 1640899 – 365162
sam weihagen
2
 pension 
payable from 65 onwards
142100 39527 38880 2354862 1399431 – 648120
1  the ﬁ gures detailed above in respect of jürgen büser’s membership of the thomas cook pension plan relate to the period 1 october to 29 november 2009 when he stepped down from the board
2  the ﬁ gures detailed above in respect of sam weihagen’s pension relate to the period from 6 november 2009 when he was appointed to the board to 30 september 2010 sam weihagen’s pension is accrued for 
in swedish krona amounts have been converted into sterling using the exchange rate on 6 november 2010 107 the exchange rate on 30 september 2010 106 or the average for the year 113
this report on remuneration has been approved by the board of directors and signed on its behalf by
peter middleton
chairman remuneration committee
30 november 2010
12 3
th017p5969indd 69 th017p5969indd   69 23122010 1940 23122010   1940 70 thomas cook group plc annual report  accounts 2010
directors’ report 
other disclosures 
share capital
the company has the following two classes of shares in issue 
class of share
number of 
shares in issue
ordinary shares of €010 each 858292947
deferred shares of £1 each 50000
the ordinary shares carry the right to the proﬁ ts of the company 
available for distribution and to the return of capital on a winding 
up of the company the ordinary shares carry the right to attend 
and speak at general meetings of the company each share holds the 
right to one vote the ordinary shares are admitted to trading on the 
ofﬁ cial list of the london stock exchange the deferred shares carry 
no right to the proﬁ ts of the company on a winding up the holders 
of the deferred shares would be entitled to receive an amount equal 
to the capital paid up on each deferred share the holders of the 
deferred shares are not entitled to receive notice attend speak or 
vote whether on a show of hands or on a poll at general meetings 
of the company
authority to purchase shares
the company currently does not have authority to purchase its own shares
share transfer restrictions
the articles of association the ‘articles’ are designed to ensure that 
the number of the company’s shares held by noneea nationals does 
not reach a level which could jeopardise the company’s entitlement 
to continue to hold or enjoy the beneﬁ t of any authority permission 
licence or privilege which it or any of its subsidiaries holds or enjoys 
and which enables an air service to be operated each an “operating 
right” in particular ec council regulation 10082008 on licensing of 
air carriers requires that an air carrier must be majorityowned and 
effectively controlled by eea nationals
the articles allow the directors from time to time to set a “permitted 
maximum” on the number of the company’s shares which may be owned 
by noneea nationals at such level as they believe is in compliance with 
the operating rights provided that the permitted maximum shall not be 
less than 40 of the total number of issued shares
the company maintains a separate register the “separate register” 
of shares in which noneea nationals whether individuals bodies 
corporate or other entities have an interest such shares are referred 
to as “relevant shares” in the articles an interest in this context 
is widely deﬁ ned see below the directors may require relevant 
members or other persons to provide them with information to 
enable them to determine whether shares are or are to be treated 
as relevant shares if such information is not provided then the 
directors will be able at their discretion to determine that shares to 
which their enquiries relate be treated as relevant shares registered 
shareholders will also be obliged to notify the company if they are 
aware either a that any share they hold ought to be treated as a 
relevant share for this purpose or b that any share they hold which 
is treated as a relevant share should no longer be so treated in this 
case the directors shall request such information and evidence as 
they require to satisfy themselves that the share should not be treated 
as a relevant share and on receipt of such evidence shall remove 
particulars of the share from the separate register if the directors 
determine that such action is necessary to protect any operating 
right due to the fact that an intervening act an “intervening act” 
being the refusal withholding suspension or revocation of any 
operating right or the imposition of materially inhibiting conditions 
or limitations on any operating right in either case by any state or 
regulatory authority has taken place or is contemplated threatened 
or intended or the aggregate number of relevant shares is such 
that an intervening act may occur or the ownership or control of 
the company is such that an intervening act may occur the directors 
may among other things
• identify those shares which give rise to the need to take action and 
treat such shares as affected shares “affected shares” see below or
• set a permitted maximum on the number of relevant shares which 
may subsist at any time which may not save in the circumstances 
referred to below be lower than 40 of the total number of issued 
shares and treat any relevant shares in excess of this permitted 
maximum as affected shares see below the directors may serve 
a notice an “affected share notice” in respect of any affected 
share an affected share notice can if it so speciﬁ es have the effect 
of depriving the registered holder of the right to attend vote and 
speak at general meetings which he would otherwise have had 
as a consequence of holding such shares such an affected share 
notice can if it so speciﬁ es also require the recipient to dispose 
of the affected shares so that the relevant shares will then cease 
to be affected shares within 21 days or such longer period as the 
directors may determine the directors are also given the power to 
sell such affected shares themselves where there is noncompliance 
with an affected share notice at the best price reasonably 
obtainable at the relevant time on behalf of the shareholder 
in deciding which shares are to be dealt with as affected shares 
the directors in their sole opinion will determine which relevant 
shares may give rise to the fact of risk of an intervening act occurring 
and subject to any such determination will have regard to the 
chronological order in which particulars of relevant shares have been 
or are to be entered in the separate register unless to do so would in 
the sole opinion of the directors be inequitable if there is a change 
in any applicable law or the company or any subsidiary receives 
any direction notice or requirement from any state or regulatory 
authority which in either case necessitates such action to overcome 
prevent or avoid an intervening act then the directors may either
• lower the permitted maximum to the minimum extent that they 
consider necessary to overcome prevent or avoid an intervening act or
• resolve that any relevant shares shall be treated as affected shares 
and the conversion permitted maximum the rights of the directors 
referred to above apply until such time as the directors resolve 
that grounds for the making of a determination have ceased to 
exist whereupon the directors must withdraw such determination 
the permitted maximum is set at 40 this permitted maximum 
may be varied by the directors if the directors resolve to vary 
the permitted maximum to deal with shares as affected shares 
or relax the ownership limitations they shall publish in at least 
one national newspaper in the united kingdom and in any other 
country in which the shares are listed notice of the determination 
and of any permitted maximum
the directors shall publish from time to time
• information as to the number of shares particulars of which have 
been entered on the separate register and
• any permitted maximum which has been speciﬁ ed
as at 30 september 2010 146755 ordinary shares 0017 were held 
on the separate register
th017p7071indd 70 th017p7071indd   70 23122010 1941 23122010   1941 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 71
the directors may not register any person as a holder of shares unless 
such person has furnished to the directors a declaration together with 
such evidence as the directors may require stating a the name and 
nationality of any person who has an interest in any such share and if 
the directors require the nature and extent of such interest or b such 
other information as the directors may from time to time determine
the directors may decline to register any person as a shareholder 
if satisfactory evidence of information is not forthcoming existing 
holders of shares will be recorded on the special register unless and 
until they have certiﬁ ed to the satisfaction of the company that they 
are eea nationals
a person shall be deemed to have an interest in relation to thomas 
cook group plc shares if
• such person has an interest which would subject as provided 
below be taken into account or which he would be taken 
as having in determining for the purposes of part 22 of the 
companies act 2006 whether a person has a notiﬁ able interest or
• he has any such interest as is referred to in part 22 of the 
companies act 2006 but shall not be deemed to have an interest 
in any shares in which his spouse or any infant child or stepchild 
or in scotland pupil or minor of his is interested by virtue of that 
relationship or which he holds as a bare or custodian trustee under 
the laws of england or as a simple trustee under the laws 
of scotland and interest shall be construed accordingly
provisions on change of control
the company has a £105bn group banking facility agreement 
the “agreement” in place which provides that on any change 
of control of the company the lenders under the agreement are 
entitled to negotiate for a period not exceeding 30 days terms for 
continuing the facilities but where agreement on new terms cannot 
be reached any such lender is entitled to i receive a repayment 
of amounts owing to such lender and ii cancel all commitments 
under the agreement 
the company has issued a €400m ﬁ veyear euro bond and a £300m 
sevenyear sterling bond under the terms of the bonds if a put event 
occurs each noteholder has the option to require the company to 
redeem the notes
contractual arrangements
the group has contractual arrangements with numerous third parties 
in support of its business activities the disclosure in this report 
of information about any of those third parties is not considered 
necessary for an understanding of the development performance 
or position of the group’s businesses
political donations
the company did not make any political donations during the 
ﬁ nancial year 2009 nil
charitable donations
the company did not give money for charitable purposes within the 
united kingdom during the ﬁ nancial year 2009 nil however the 
company’s charitable activities are described on pages 38 to 41 
supplier payment policy
it is the company’s policy to comply with the terms of payment 
agreed with its suppliers where payment terms are not negotiated 
the company endeavours to adhere to suppliers’ standard terms as at 
30 september 2010 the company had no trade creditors 2009 nil
major shareholdings
as at 26 november 2010 the company had been notiﬁ ed in 
accordance with rule 5 of the disclosure rules and transparency rules 
of the uk listing authority of the following major shareholdings in 
the ordinary share capital of the company
name
number of 
shares held
percentage of 
issued capital 
axa sa 85369991 995
lloyds banking group plc 77191766 899
blackrock inc 42919060 500
standard life investments ltd 42857459 499
legal  general group plc 26098414 304
auditors
pricewaterhousecoopers llp have expressed their willingness to be 
reappointed as auditors of the company upon the recommendation 
of the audit committee resolutions to reappoint them as the 
company’s auditors and to authorise the directors to determine their 
remuneration will be proposed to the 2011 annual general meeting
registered office
following approval by the board the company’s registered ofﬁ ce 
was changed from the thomas cook business park coningsby road 
peterborough pe3 8sd to 6th floor south brettenham house 
lancaster place london wc2e 7en on 29 october 2009
the directors’ report comprising pages 3 to 71 has been approved by 
the board and signed on its behalf by
derek woodward
group company secretary 
30 november 2010
registered office
6th floor south
brettenham house
lancaster place
london wc2e 7en
registered number
6091951
th017p7071indd 71 th017p7071indd   71 21122010 2243 21122010   2243 72 thomas cook group plc annual report  accounts 2010
we have audited the ﬁ nancial statements of thomas cook group 
plc for the year ended 30 september 2010 which comprise the 
group income statement the group statement of comprehensive 
income the group and company cash ﬂ ow statement the group 
and company balance sheet the group and company statement 
of changes in equity and the related notes the ﬁ nancial reporting 
framework that has been applied in their preparation is applicable 
law and international financial reporting standards ifrss as 
adopted by the european union and as regards the parent company 
ﬁ nancial statements as applied in accordance with the provisions 
of the companies act 2006
respective responsibilities of directors and auditors 
as explained more fully in the statement of directors’ responsibilities 
the directors are responsible for the preparation of the ﬁ nancial 
statements and for being satisﬁ ed that they give a true and fair view 
our responsibility is to audit the ﬁ nancial statements in accordance 
with applicable law and international standards on auditing uk 
and ireland those standards require us to comply with the auditing 
practices board’s ethical standards for auditors 
this report including the opinions has been prepared for and only 
for the company’s members as a body in accordance with chapter 3 
of part 16 of the companies act 2006 and for no other purpose we do 
not in giving these opinions accept or assume responsibility for any 
other purpose or to any other person to whom this report is shown 
or into whose hands it may come save where expressly agreed by our 
prior consent in writing
scope of the audit of the ﬁ nancial statements 
an audit involves obtaining evidence about the amounts and 
disclosures in the ﬁ nancial statements sufﬁ cient to give reasonable 
assurance that the ﬁ nancial statements are free from material 
misstatement whether caused by fraud or error this includes an 
assessment of whether the accounting policies are appropriate to 
the group’s and the parent company’s circumstances and have been 
consistently applied and adequately disclosed the reasonableness 
of signiﬁ cant accounting estimates made by the directors and the 
overall presentation of the ﬁ nancial statements
opinion on ﬁ nancial statements 
in our opinion 
• the ﬁ nancial statements give a true and fair view of the state of 
the group’s and of the parent company’s affairs as at 30 september 
2010 and of the group’s proﬁ t and group’s and parent company’s 
cash ﬂ ows for the year then ended
• the group ﬁ nancial statements have been properly prepared in 
accordance with ifrss as adopted by the european union 
• the parent company ﬁ nancial statements have been properly 
prepared in accordance with ifrss as adopted by the european 
union and as applied in accordance with the provisions of the 
companies act 2006 and
• the ﬁ nancial statements have been prepared in accordance with 
the requirements of the companies act 2006 and as regards the 
group ﬁ nancial statements article 4 of the las regulation 
opinion on other matters prescribed by the companies act 2006 
in our opinion 
• the part of the directors’ remuneration report to be audited has 
been properly prepared in accordance with the companies act 
2006 and
• the information given in the directors’ report for the ﬁ nancial year 
for which the ﬁ nancial statements are prepared is consistent with 
the ﬁ nancial statements 
matters on which we are required to report by exception 
we have nothing to report in respect of the following 
under the companies act 2006 we are required to report to you if 
in our opinion 
• adequate accounting records have not been kept by the parent 
company or returns adequate for our audit have not been received 
from branches not visited by us or 
• the parent company ﬁ nancial statements and the part of the 
directors’ remuneration report to be audited are not in agreement 
with the accounting records and returns or 
• certain disclosures of directors’ remuneration speciﬁ ed by law are 
not made or 
• we have not received all the information and explanations we 
require for our audit or
• a corporate governance statement has not been prepared by the 
parent company 
under the listing rules we are required to review 
• the directors’ statement in relation to going concern and
• the parts of the corporate governance statement relating to the 
company’s compliance with the nine provisions of the june 2008 
combined code speciﬁ ed for our review
john minards senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
london
30 november 2010
independent auditors’ report to the members of thomas cook group plc 
th017p72indd 72 th017p72indd   72 21122010 2245 21122010   2245 thomas cook group plc annual report  accounts 2010 73
directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
year ended 30 september 2010
restated 
year ended 30 september 2009
notes
underlying 
results
£m
separately
 disclosed items
note 6 
£m
total 
£m
underlying 
results
£m
separately
disclosed items
note 6
£m
total
£m
revenue 3 88901 – 88901 92688  – 92688 
cost of providing tourism services 67465 809 68274 70178 668 70846
gross proﬁ t 21436 809 20627 22510 668 21842 
personnel expenses 4 10528 128 10656 10271 597 10868
depreciation and amortisation 1213 1528 – 1528 1584 92 1676
net operating expenses 5 5758 688 6446 6504 844 7348
loss on disposal of assets 6 – 18 18 – 39 39
amortisation of business combination 
intangibles 12 – 309 309 – 344 344
proﬁ t from operations 3 3622 1952 1670 4151 2584 1567 
share of results of associates and joint 
venture 14 32  – 32 38 – 38
loss on disposal of associate 6 –  –  –  – 22 22
net investment lossincome 14 15 – 15 14  – 14 
finance income 7 448  73 521 512  214 726 
finance costs 7 1609 182 1791 1690 106 1796 
proﬁ t before tax 8 2478 2061 417 2949 2498 451 
tax 9 389 356
proﬁ t for the year 28 95 
attributable to
equity holders of the parent 26 70 
noncontrolling interests 54 25 
28 95 
lossproﬁ t per share pence
basic 11 03 08
diluted 11 03 08
all revenue and results arose from continuing operations
financial statements
group income statement
for the year ended 30 september 2010
th017accountsp73130indd 73 th017accountsp73130indd   73 21122010 2246 21122010   2246 74 thomas cook group plc annual report  accounts 2010
financial statements
group statement of comprehensive income
for the year ended 30 september 2010
notes
year ended
30 september 
2010
£m
restated
year ended
30 september 
2009
£m
proﬁ t for the year 28 95
other comprehensive income and expense
acquisition costs accounted for under ifrs 3 07 –
foreign exchange translation gains 29 641 862
actuarial losses on deﬁ ned beneﬁ t pension schemes 35 582 1701
tax on actuarial losses 9 164 505 
movement in asset cap on deﬁ ned beneﬁ t pension schemes 35 – 07
transfer of translation losses to proﬁ t or loss on disposal 29 – 45
fair value gains and losses
gainslosses deferred for the year 29 626 1886
tax on gainslosses deferred for the year 9 182 552 
lossesgains transferred to the income statement 29 694 426
tax on lossesgains transferred to the income statement 9 201 122
total comprehensive incomeexpense for the year 1181 1825
attributable to
equity holders of the parent 1127 1850
noncontrolling interests 54 25 
total comprehensive incomeexpense for the year 1181 1825
th017accountsp73130indd 74 th017accountsp73130indd   74 04012011 1412 04012011   1412 thomas cook group plc annual report  accounts 2010 75
directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
group cash ﬂ ow statement
for the year ended 30 september 2010
notes
year ended
30 september 
2010
£m
year ended
30 september 
2009
£m
cash ﬂ ows from operating activities
cash generated by operations 3241 2047 
income taxes paid 247 266
net cash from operating activities 30 2994 1781 
investing activities
proceeds on disposal of subsidiaries net of cash sold – 11 
proceeds on disposal of associated undertakings – 15 
proceeds on disposal of property plant and equipment 78 123 
proceeds of disposal of available for sale ﬁ nancial assets – 90 
purchase of subsidiaries net of cash acquired 15 272 712
purchase of tangible and ﬁ nancial assets 1961 1310
purchase of intangible assets 778 685
movement on noncurrent ﬁ nancial assets 37 48
additional loan investment 12 37
disposal of shortterm securities – 1253 
movement on shortterm securities 03 – 
net cash used in investing activities 2911 1300
financing activities
interest paid 651 1026
dividends paid 10 597 874
draw down of borrowings 11180 1819 
repayment of borrowings 9595 1289
payment of facility setup fees 205 – 
repayment of ﬁ nance lease obligations 1974 1744
purchase of own shares – 471
net cash used in ﬁ nancing activities 1842 3585
net decrease in cash and cash equivalents 1759 3104
cash and cash equivalents at beginning of year 5070 7475 
effect of foreign exchange rate changes 143 699 
cash and cash equivalents at end of year 3168 5070 
liquid assets 18 3396 5502 
bank overdrafts 20 228 432
cash and cash equivalents at end of year 3168 5070
th017accountsp73130indd 75 th017accountsp73130indd   75 21122010 2247 21122010   2247 76 thomas cook group plc annual report  accounts 2010
notes
30 september
2010
£m
restated 
30 september
2009
£m
restated 
1 october
2008
£m
noncurrent assets
intangible assets 12 38289 37697 34373 
property plant and equipment – aircraft and aircraft spares 13 6552 6283 5848 
 – investment property 13 170 180 157 
 – other 13 3361 3471 3123 
investments in associates and joint venture 14 386 360 427 
other investments 14 187 203 294 
deferred tax assets 25 3832 4335 3297
tax assets 55 56 99 
trade and other receivables 17 1366 1134 1260
pension assets –  – 04 
derivative ﬁ nancial instruments 22 66 49 556 
54264 53768 49438 
current assets
inventories 16 321 270 242 
tax assets 339 386 151 
trade and other receivables 17 9729 9259 10103
derivative ﬁ nancial instruments 22 852 1339 2616 
cash and cash equivalents 18 3396 5502 7613 
14637 16756 20725 
noncurrent assets held for sale 27 105 91  – 
total assets 69006 70615 70163 
current liabilities
retirement beneﬁ t obligations 35 67 48 90
trade and other payables 19 18212 19038 18551
borrowings 20 1063 6191 3560
obligations under ﬁ nance leases 21 160 2378 1826
tax liabilities 932 809 694
revenue received in advance 10564 8618 9175
shortterm provisions 26 2045 2289 1851
derivative ﬁ nancial instruments 22 807 2511 1743
33850 41882 37490
financial statements
group balance sheet
at 30 september 2010
th017accountsp73130indd 76 th017accountsp73130indd   76 21122010 2247 21122010   2247 thomas cook group plc annual report  accounts 2010 77
directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
notes
30 september
2010
£m
restated 
30 september
2009
£m
restated 
1 october
2008
£m
noncurrent liabilities
retirement beneﬁ t obligations 35 4078 3663 1816
trade and other payables 19 215 171 361
longterm borrowings 20 9564 3209 4161
obligations under ﬁ nance leases 21 645 477 2283
revenue received in advance 09 12 09
deferred tax liabilities 25 882 1100 996
longterm provisions 26 2128 2717 2338
derivative ﬁ nancial instruments 22 208 188 669
17729 11537 12633
total liabilities 51579 53419 50123
net assets 17427 17196 20040 
equity
calledup share capital 28 577 577 598 
share premium account 89 89 89 
merger reserve 19842 19842 19842 
hedging and translation reserves 29 2995 1417 2148 
capital redemption reserve 85 85 64 
retained earnings deﬁ cit 6269 4872 2698
investment in own shares 133 131 130
equity attributable to equity holders of the parent 17186 17007 19913 
noncontrolling interests 241 189 127 
total equity 17427 17196 20040 
these ﬁ nancial statements were approved by the board of directors on 30 november 2010
signed on behalf of the board
paul hollingworth
group chief financial ofﬁ cer
th017accountsp73130indd 77 th017accountsp73130indd   77 21122010 2247 21122010   2247 78 thomas cook group plc annual report  accounts 2010
financial statements
group statement of changes in equity
for the year ended 30 september 2010
share capital 
 share 
premium
£m
other 
reserves
£m
restated
translation 
 hedging 
reserve
£m
restated
retained 
earnings 
deﬁ cit
£m
restated
attributable 
to equity 
holders of 
the parent
£m
non
controlling 
interest
£m
restated
total
£m
opening balance at 1 october 2008 687  19776 2148 2654 19957 127 20084 
ias 38 brochure costs – – – 34 34 – 34 
acquisition accounting – – – 10 10 – 10 
as restated 687  19776  2148 2698  19913  127  20040 
proﬁ t for the year – – – 70 70 25 95 
other comprehensive incomeexpense
foreign exchange translation gains – – 862 – 862 – 862 
actuarial losses on deﬁ ned beneﬁ t pension schemes
net of tax – – – 1196 1196 – 1196 
movement in asset cap on deﬁ ned beneﬁ t pension schemes – – – 07  07 – 07 
transfer of translation losses to proﬁ t or loss on disposal – – 45 – 45 – 45 
fair value gains and losses
losses deferred for the year net of tax – – 1334 – 1334 – 1334 
gains transferred to the income statement net of tax – – 304 – 304 – 304 
total comprehensive expenseincome for the year –  – 731 1119 1850  25 1825 
equity credit in respect of sharebased payments – – – 83  83 – 83 
exchange difference on noncontrolling interest – – – – – 14 14 
acquisition of noncontrolling interest – – – – –  51  51 
share buy back 21  21 – 264 264 – 264 
purchase of own shares – 01 – – 01 – 01 
dividends – – – 874 874 – 874 
at 30 september 2009 666  19796  1417 4872  17007  189  17196 
lossproﬁ t for the year – – – 26 26 54 28 
other comprehensive incomeexpense
acquisition costs accounted for under ifrs 3 – – – 07 07 – 07
foreign exchange translation gains – – 641 – 641 – 641  
actuarial losses on deﬁ ned beneﬁ t pension schemes       
net of tax – – – 418 418 – 418
fair value gains and losses
gains deferred for the year net of tax – – 444 – 444 – 444
losses transferred to the income statement net of tax – – 493 – 493 – 493
total comprehensive incomeexpense for the year –  – 1578 451 1127 54 1181
equity credit in respect of sharebased payments – – – 81 81 – 81
recognition of put option to noncontrolling interest – – – 110 110 – 110
exchange difference on noncontrolling interests – – – – – 02 02
purchase of own shares – 02 – – 02 – 02
dividends – – – 917 917 – 917
at 30 september 2010 666  19794  2995 6269  17186  241  17427
other reserves consist of the merger reserve the capital redemption reserve and own shares held
the merger reserve arose on the reverse acquisition of thomas cook group plc and mytravel group plc by thomas cook ag in the case of 
thomas cook group plc the merger reserve represents the difference between the existing share capital and share premium of thomas cook ag 
and the share capital of thomas cook group plc issued in exchange and in the case of mytravel group plc the merger reserve represents the 
difference between the fair value and the nominal value of the share capital issued by thomas cook group plc
the capital redemption reserve was created as a consequence of the share buy back further details of the share buy back are included in note 28
details of changes in hedging and translation reserves are set out in note 29
the put option of £110m recognised during the year was issued to the noncontrolling interest of a subsidiary undertaking during the year 
ended 31 october 2007 this is not considered material for restatement of comparative information
th017accountsp73130indd 78 th017accountsp73130indd   78 21122010 2247 21122010   2247 thomas cook group plc annual report  accounts 2010 79
directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
1 general information
thomas cook group plc is a limited liability company incorporated and domiciled in england and wales under the companies act 2006 and 
listed on the london stock exchange the address of the registered ofﬁ ce is 6th floor south brettenham house lancaster place london     
wc2e 7en the principal activities of the group are discussed in the directors’ report – business review on pages 3 to 45
these consolidated ﬁ nancial statements were approved for issue by the board of directors on 30 november 2010
2 accounting policies
these ﬁ nancial statements have been prepared in accordance with ifrs and ifric interpretations and with those parts of the companies act 
2006 applicable to groups reporting under ifrs the ﬁ nancial statements have also been prepared in accordance with ifrs adopted for use in 
the european union and therefore comply with article 4 of the eu ias regulation
the ﬁ nancial statements have been prepared under the historical cost convention except for revaluation of certain ﬁ nancial instruments and 
investment property
the principal accounting policies applied in the preparation of the ﬁ nancial information presented in this document are set out below these 
policies have been applied consistently to the periods presented unless otherwise stated
basis of preparation
during the year a restatement of prior year comparatives was required due to adjustments to the accounting for certain prior year acquisitions  
the business combination intangibles deferred tax liability and deferred and contingent consideration related to the gold medal acquisition 
have been revised refer to note 15 for the restated balance sheet as at the date of acquisition of gold medal
in addition the prior year income statement and balance sheet have been restated to reﬂ ect the unwinding of the discount on contingent and 
deferred consideration for the acquisition of gold medal and hotels4u which was previously omitted in accordance with ias 8 “accounting 
policies changes in accounting estimates and errors” the year ended 30 september 2009 has been restated
the unwinding of the discount on contingent on deferred consideration has had the following impact on the prior year income statement and 
balance sheet
year ended 
30 september 2009
£m
loss for the year 35
loss attributable to equity holders of the parent 35
decrease in total equity 45
basic loss per share 04p
diluted loss per share 04p
the prior year operating lease disclosures have been restated to include arrangements previously omitted refer to note 8 and 32 for the 
restated disclosures 
adoption of new or amended standards and interpretations in the current year
in the current year the following new or amended standards have been adopted and have affected the amounts reported or the disclosure and 
presentation in these ﬁ nancial statements
ias 1 revised  “presentation of financial statements” is effective for annual reporting periods commencing on or after 1 january 
2009 the amendments require a number of presentational changes including the introduction of a statement of 
comprehensive income and the requirement to present a statement of changes in equity as a primary statement the 
statement of comprehensive income represents all items of recognised income and expense in either one statement or 
two linked statements management has elected to present two statements
ias 38 amendment  “intangible assets” is effective for annual reporting periods commencing on or after 1 january 2009 the amendment 
requires advertising or promotional expenditure to be expensed when the group has the right to access the goods or 
has received the service in particular brochure costs are to be expensed as and when the brochures are available to be 
sent to customers or retail outlets under the previous policy brochure costs were expensed when delivered to the retail 
outlets or customer the comparative ﬁ gures have been restated to reﬂ ect the change in accounting policy adoption of 
the standard has had the following impact
year ended 
30 september 2010
£m
year ended 
30 september 2009
£m
proﬁ t for the year 25 01
proﬁ t attributable to equity holders of the parent 25 01
decrease in total equity 09 34
basic earnings per share 03p nil p
diluted earnings per share 03p nil p
notes to the ﬁ nancial statements
th017accountsp73130indd 79 th017accountsp73130indd   79 21122010 2247 21122010   2247 80 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
2 accounting policies continued
ias 39 amendment  “eligible hedged items” is effective for annual reporting periods commencing on or after 1 july 2009 the amendment 
prohibits the time value component of derivative options being designated as an effective hedge the comparative 
ﬁ gures have been restated to reﬂ ect the change in accounting policy and the movement in time value recognised in 
the income statement in the current and prior year is included as a separately disclosed item under the description 
“ias 39 fair value remeasurement” adoption of the standard has had the following impact
year ended 
30 september 2010
£m
year ended 
30 september 2009
£m
proﬁ tloss for the year 14 58
proﬁ tloss attributable to equity holders of the parent 14 58
basic earningsloss per share 02p 07p
diluted earningsloss per share 02p 07p
ifrs 3 revised  “business combinations” is effective prospectively for business combinations with acquisition dates on or after the 
beginning of the ﬁ rst annual reporting period commencing on or after 1 july 2009 the amendment changes the 
way in which step acquisitions are to be accounted for and requires acquisition costs to be expensed in the income 
statement and adjustments to contingent consideration to be recognised in the income statement after a speciﬁ ed 
period furthermore in accordance with the transition requirements the recognition of deferred tax assets from past 
acquisitions is reﬂ ected in the income statement and not in goodwill the impact on the current year from adopting 
the amendment principally relates to the recognition of deferred tax assets from the thomas cookmytravel merger 
and expensing acquisition costs related to acquisitions concluded in the current year or likely to be concluded in the 
foreseeable future these acquisition costs are included as separately disclosed items in the income statement under 
the description “exceptional operating items” adoption of the standard has had the following impact 
year ended 
30 september 2010
£m
loss for the year 50
loss attributable to equity holders of the parent 50
decrease in total equity 57
basic loss per share 06p
diluted loss per share 06p
ifrs 8   “operating segments” is effective for annual reporting periods commencing on or after 1 january 2009 the standard 
requires reporting segments to be identiﬁ ed based on the information used by management to run the business 
as a result the group’s reportable segments have changed in particular the segment previously referred to as 
“continental europe” has been split into two segments “central europe” and “west  east europe” the reportable 
segments of the group now consist of six geographic operating divisions – uk central europe west  east europe 
northern europe north america and airlines germany we also report corporate which consists of certain residual 
businesses and corporate functions these reportable segments are consistent with how information is presented to 
the group chief executive chief operating decision maker for the purpose of resource allocation and assessment 
of performance
ifrs 7 amendment  “financial instruments disclosure” is effective for annual reporting periods commencing on or after 1 july 2009 the 
amendment requires enhanced disclosure for fair value and measurement risk the amendment has had an impact 
on the disclosures in note 22
in the current year the following new or amended standards and interpretations have also been adopted their adoption has not had a 
signiﬁ cant impact on the amounts reported or the disclosure and presentation in these ﬁ nancial statements but may impact the accounting 
or the disclosure and presentation for future transactions and arrangements
ias 23 revised  “borrowing costs” is effective for annual reporting periods commencing on or after 1 january 2009 the amendment 
requires the capitalisation of borrowing costs related to assets requiring a substantial amount of time to be ready for 
their intended purpose
ias 28 amendment  “investment in associates” and amendment to ias 31 “interest in joint ventures” with consequential amendments 
to ias 32 “financial instruments presentation” and ifrs 7 “financial instruments disclosure” are effective for annual 
reporting periods commencing on or after 1 january 2009 the amendments change the disclosure requirements 
for investments in associates or joint ventures accounted for under ias 39 “financial instruments recognition and 
measurement” and clariﬁ es the allocation of losses from impairing an investment in associate
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ias 27 revised   “consolidated and separate ﬁ nancial statements” is effective for annual reporting periods commencing on or after          
1 july 2009 the amendment gives entities the option to recognise on a transactionbytransaction basis noncontrolling 
interests previously known as minority interest at the value of their proportion of identiﬁ able assets and liabilities or 
at full fair value 
ifrs 2 amendment  “sharebased payments” is effective for annual reporting periods commencing on or after 1 january 2009 the 
amendment provides a deﬁ nition of vesting conditions and speciﬁ es the accounting treatment for nonvesting 
conditions 
ias 32 amendment  “financial instruments presentation” is effective for annual reporting periods commencing on or after 1 january 2009 
the amendment clariﬁ es the treatment of puttable ﬁ nancial instruments whereby puttable instruments meeting 
certain criteria are treated as equity as opposed to ﬁ nancial liabilities 
ifric 13  “customer loyalty programmes” is effective for annual reporting periods commencing on or after 1 january 2009 the 
interpretation explains how entities who grant loyalty award credits to customers should account for their obligations
ifric 14  “ias 19 – the limit on a deﬁ ned beneﬁ t asset minimum funding requirements and their interaction” is effective 
for annual reporting periods commencing on or after 1 january 2009 the interpretation provides guidance on the 
amount of pension scheme surpluses that can be recognised as a deﬁ ned beneﬁ t asset and when minimum funding 
requirements may give rise to additional liabilities
other changes – ias 39 fair value remeasurement
during the year it was decided to separately disclose the movement in forward points on foreign exchange cash ﬂ ow hedging contracts and time 
value of options both items are subject to market ﬂ uctuations and unwind when the options or forward contracts mature and therefore are not 
considered to be part of the group’s underlying performance
the prior year comparatives have been restated to reﬂ ect this change
change in accounting estimates
during the year the group conducted a review of the estimated useful economic lives of its aircraft this has resulted in a change in the 
expected useful lives of aircraft from 1220 years to 18 years
the change in estimate has been implemented as of 1 april 2010 and has resulted in a decrease in depreciation in the current year of £156m 
the beneﬁ t of which will be offset by increased depreciation in future periods
new or amended standards and interpretations in issue but not yet effective
the following new standards amendments to standards and interpretations that are expected to impact the group which have not been 
applied in these ﬁ nancial statements were in issue but are not yet effective
ias 24 amendment  “related parties” is effective for annual reporting periods commencing on or after 1 january 2011 the amendment 
clariﬁ es the deﬁ nition of related parties
ifrs 2 amendment  “sharebased payments” is effective for annual reporting periods commencing on or after 1 january 2010 
this amendment clariﬁ es the scope and accounting for group cashsettled sharebased payments
ias 32 amendment  “classiﬁ cation of rights” is effective for annual reporting periods commencing on or after 1 february 2010 
the amendment clariﬁ es the treatment of rights options or warrants issued to acquire a ﬁ xed number of 
an entity’s own equity instruments for a ﬁ xed amount of consideration
ifrs 9   “financial instruments” is effective for annual reporting periods commencing on or after 1 january 2013 
the standard will eventually replace ias 39 but currently only details the requirements for recognition and 
measurement of ﬁ nancial assets
ifric 14 amendment  “prepayments of a minimum funding requirement” is effective for annual reporting periods commencing on or 
after 1 january 2011 the amendment remedies one of the consequences of ifric 14 whereby an entity under 
certain circumstances is not allowed to recognise an asset for the prepayment of a minimum funding requirement
management is currently assessing the impact of adopting these new or amended standards and interpretations
th017accountsp73130indd 81 th017accountsp73130indd   81 21122010 2247 21122010   2247 82 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
2 accounting policies continued
basis of consolidation
the group’s ﬁ nancial statements consolidate those of the company and its subsidiary undertakings the results of subsidiaries acquired or 
disposed of are consolidated for the periods from or to the date on which control passed subsidiaries are entities controlled by the company 
control is achieved where the company has the power to govern the ﬁ nancial and operating policies of an investee entity so as to obtain 
beneﬁ ts from its activities
acquisitions are accounted for under the purchase method where a transaction is a business combination amongst entities under common 
control the requirements of ifrs 3r are applied the purchase method of accounting is used to account for the acquisition of subsidiaries 
by the group the cost of an acquisition is measured at fair value of the assets given equity instruments issued contingent consideration 
arrangements entered into and liabilities incurred or assumed at the date of exchange directly attributable transaction costs are expensed as 
incurred identiﬁ able assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their 
fair values at the acquisition date when the ownership of an acquired company is less than 100 the noncontrolling interest is measured as 
the proportion of the recognised net assets attributable to the noncontrolling interest the excess of the cost of acquisition over the fair value 
of the group’s share of identiﬁ able net assets acquired is recorded as goodwill
where audited ﬁ nancial accounts are not coterminous with those of the group the ﬁ nancial information is derived from the last audited 
accounts available and unaudited management accounts for the period up to the company’s balance sheet date
all intragroup transactions balances income and expenses are eliminated on consolidation
interpretation guidance included within sic interpretation 12 “consolidation – special purpose entities” indicates that certain special purpose 
entities spes which are involved in aircraft leasing arrangements with the group should be interpreted as being controlled by the group 
and therefore subject to consolidation even though the group has no direct or indirect equity interest in those entities as a consequence 
the group has consolidated three 2009 three spes that own four 2009 four aircraft operated by the group on operating leases in addition 
during the prior year the operations of the german airline were placed in a holding company in which the group owns a 500023 direct 
interest all risks and rewards continue to be held by the group and in accordance with accounting standards the entity has been treated 
as being 100 controlled and fully consolidated by the group
associates and joint ventures
entities other than subsidiaries over which the group exerts signiﬁ cant inﬂ uence but not control or joint control are associates entities 
which the group jointly controls with one or more other party under a contractual arrangement are joint ventures
the group’s share of the results of associates and joint ventures is included in the group income statement using the equity accounting 
method investments in associates and joint ventures are included in the group balance sheet at cost as adjusted for postacquisition changes 
in the group’s share of the net assets of the entity and including any goodwill identiﬁ ed on acquisition net of any accumulated impairment 
loss when the group’s shares of losses in an associate or joint venture equals or exceeds its interest in the associate or joint venture including 
any other unsecured receivables the group does not recognise further losses unless it has incurred obligations or made payments on behalf 
of the associate or joint venture unrealised gains on transactions between the group and its associates are eliminated to the extent of the 
group’s interest in the associates unrealised losses are also eliminated unless the transaction provided evidence of an impairment of the 
asset transferred
intangible assets – goodwill
goodwill arising on an acquisition represents any excess of the fair value of the consideration given over the fair value of the identiﬁ able assets 
and liabilities acquired goodwill is recognised as an asset and is reviewed for impairment at least annually any impairment is recognised 
immediately in the group’s income statement and is not subsequently reversed for the purposes of assessing impairment assets are grouped 
at the lowest levels for which there are separately identiﬁ able cash ﬂ ows cashgenerating units the allocation of goodwill is made to those 
cashgenerating units that are expected to beneﬁ t from the business combination in which the goodwill arose the group allocates goodwill 
to each segment in which it operates
on disposal of a subsidiary joint venture or associate the attributable amount of goodwill is included in the determination of the proﬁ t or loss 
on disposal
intangible assets – other
intangible assets other than goodwill are carried on the group’s balance sheet at cost less accumulated amortisation intangible assets with 
indeﬁ nite useful lives are not amortised for all other intangible assets amortisation is charged on a straightline basis over the asset’s useful 
life as follows
brands 10 years to indeﬁ nite life
customer relationships 1 to 15 years
computer software 3 to 10 years
other acquired intangible assets are assessed separately and useful lives established according to the particular circumstances
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statements
indeﬁ nitelived intangible assets principally comprise those trademarks for which there is no foreseeable limit to the period over which they are 
expected to generate net cash inﬂ ows these are considered to have an indeﬁ nite life given the strength and durability of our brands and the 
level of marketing support the nature of the industry we operate in is such that brand obsolescence is not common if appropriately supported 
by advertising and marketing spend
intangible assets with indeﬁ nite useful lives are tested for impairment at least annually by comparing their carrying amount to their recoverable 
amount all other intangible assets are assessed at each reporting date for indications of impairment if such indications exist the recoverable 
amount is estimated and compared to the carrying amount if the recoverable amount is less than the carrying amount the carrying amount is 
reduced to the recoverable amount and the impairment loss is recognised immediately in the income statement 
property plant and equipment
except for investment property property plant and equipment is stated at cost net of straightline depreciation and any provision for impairment 
where costs are incurred as part of the startup or commissioning of an item of property plant or equipment and that item is available for 
use but incapable of operating in the manner intended by management without such a startup or commissioning period then such costs are 
included within the cost of the item costs that are not directly attributable to bringing an asset to the location and condition necessary for it 
to be capable of operating in the manner intended by management are charged to the income statement as incurred 
depreciation on property plant and equipment other than freehold land upon which no depreciation is provided is calculated on a straight
line basis and aims to write down their cost to their estimated residual value over their expected useful lives as follows
freehold buildings 40 to 50 years 
leasehold properties shorter of remaining lease period and 40 years 
aircraft 18 years or remaining lease period if shorter 
aircraft spares 5 to 15 years or remaining lease period if shorter 
other ﬁ xed assets 3 to 15 years
estimated residual values and useful lives are reviewed annually
investment property comprises land and buildings which are held for longterm rental yields and capital growth it is carried at fair value with 
changes in fair value recognised in the income statement investment property is valued annually by external qualiﬁ ed professional valuers in 
the countries concerned in the event of a material change in market conditions between the valuation date and balance sheet date an internal 
valuation is performed and adjustments made to reﬂ ect any material changes in fair value
noncurrent assets held for sale
the group classiﬁ es noncurrent assets as held for sale if their carrying amount will be recovered principally through a sale transaction rather 
than through continuing use to be classiﬁ ed as held for sale the assets must be available for immediate sale in their present condition subject 
only to terms that are usual and customary for the sale of such assets and their sale must be highly probable sale is considered to be highly 
probable when management are committed to a plan to sell the assets and an active programme to locate a buyer and complete the plan has 
been initiated at a price that is reasonable in relation to their current fair value and there is an expectation that the sale will be completed 
within one year from the date of classiﬁ cation
noncurrent assets classiﬁ ed as held for sale are carried on the group’s balance sheet at the lower of their carrying amount and fair value less 
costs to sell 
aircraft overhaul and maintenance costs
the cost of major overhauls of owned and ﬁ nance leased engines auxiliary power units and airframes is capitalised and then amortised over 
between two and ten years until the next scheduled major overhaul except where the maintenance of engines and auxiliary power units is 
carried out under ﬁ xed rate contracts in which case the cost is spread over the period of the contract provision is made for the future costs 
of major overhauls of operating leased engines auxiliary power units and airframes by making appropriate charges to the income statement 
calculated by reference to hours ﬂ own andor the expired lease period as a consequence of obligations placed upon the group under the terms 
of certain operating leases 
inventories
inventories are stated at the lower of cost and net realisable value cost represents purchase price net realisable value represents the estimated 
selling price less all costs to be incurred in marketing selling and distribution
th017accountsp73130indd 83 th017accountsp73130indd   83 21122010 2247 21122010   2247 84 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
2 accounting policies continued
revenue recognition and associated costs
revenue represents the aggregate amount of gross revenue receivable from inclusive tours travel agency commissions receivable and other 
services supplied to customers in the ordinary course of business revenue and direct expenses relating to inclusive tours arranged by the group’s 
leisure travel providers including travel agency commission insurance and other incentives are taken to the income statement on holiday 
departure revenue relating to travel agency commission on thirdparty leisure travel products is also recognised on holiday departure the costs 
attributable to producing brochures are expensed when the brochures are available to be sent to customers or retail outlets other revenue and 
associated expenses are taken to the income statement as earned or incurred revenue and expenses exclude intragroup transactions
income statement presentation and separately disclosed items
proﬁ t or loss from operations includes the results from operating activities of the group before its share of the results of associates and 
joint ventures
the group separately discloses in the income statement exceptional items amortisation of business combination intangibles and ias 39 fair 
value remeasurement
exceptional items are items that are unusual because of their size nature or incidence and which the group’s management consider should be 
disclosed separately to enable a full understanding of the group’s results
material business combination intangible assets were acquired as a result of the merger between thomas cook ag and mytravel group plc and 
other business combinations made in subsequent years the amortisation of these intangible assets is signiﬁ cant and the group’s management 
consider that it should be disclosed separately to enable a full understanding of the group’s results
ias 39 fair value remeasurement includes movements in forward points related to foreign exchange forward contracts and time value of options 
in cash ﬂ ow hedging relationships both items are subject to market ﬂ uctuations and unwind when the options or forward contracts mature and 
therefore are not considered to be part of the group’s underlying performance
finance income and costs
finance income comprises interest income on funds invested expected return on pension plan assets changes in the fair value of held for 
trading interestrelated derivatives and the movement in forward points on outstanding foreign exchange forward contracts in cash ﬂ ow 
hedging relationships
finance costs comprise interest costs on borrowings and ﬁ nance leases unwind of the discount on provisions interest cost on pension plan 
liabilities changes in the fair value of held for trading interestrelated derivatives and the movement in forward points on outstanding foreign 
exchange forward contracts in cash ﬂ ow hedging relationships 
the movement in forward points on outstanding foreign exchange forward contracts in cash ﬂ ow hedging relationships is included as a separately 
disclosed item in the income statement under the description “ias 39 fair value remeasurement” 
tax
tax represents the sum of tax currently payable and deferred tax tax is recognised in the income statement unless it relates to an item 
recognised directly in equity in which case the associated tax is also recognised directly in equity
tax currently payable is provided on taxable proﬁ ts based on the tax rates and laws that have been enacted or substantively enacted at the 
balance sheet date provision is made for deferred tax so as to recognise all temporary differences which have originated but not reversed 
at the balance sheet date that result in an obligation to pay more tax or a right to pay less tax in the future except as set out below this is 
calculated on a nondiscounted basis by reference to the average tax rates that are expected to apply in the relevant jurisdictions and for the 
periods in which the temporary differences are expected to reverse the deferred tax is not accounted for if it arises from the initial recognition 
of an asset or liability in a transaction other than a business combination that at the time of the transaction does not affect either accounting 
or taxable proﬁ t or loss
deferred tax assets are assessed at each balance sheet date and are only recognised to the extent that their recovery against future taxable 
proﬁ ts is probable deferred tax liabilities are recognised for the temporary differences of overseas subsidiaries joint ventures and associates 
unless the group is able to control the timing of the distribution of those earnings and it is probable that they will not be distributed in the 
foreseeable future
th017accountsp73130indd 84 th017accountsp73130indd   84 21122010 2247 21122010   2247 thomas cook group plc annual report  accounts 2010 85
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pensions
pension costs charged against proﬁ ts in respect of the group’s deﬁ ned contribution schemes represent the amount of the contributions 
payable to the schemes in respect of the accounting period  
the group also operates a number of deﬁ ned beneﬁ t schemes the pension liabilities recognised on the balance sheet in respect of these 
schemes represent the difference between the present value of the group’s obligations under the schemes calculated using the projected 
unit credit method and the fair value of those schemes’ assets actuarial gains or losses are recognised in the period in which they arise within 
the statement of comprehensive income and expense the current service cost representing beneﬁ ts accruing over the year is included in the 
income statement as a personnel expense the unwinding of the discount rate on the scheme liabilities and the expected return on scheme 
assets are presented as ﬁ nance costs and ﬁ nance income respectively past service costs are recognised immediately in the income statement 
in personnel expenses
foreign currency
average exchange rates are used to translate the results of all subsidiaries associates and joint ventures that have a functional currency other 
than sterling the balance sheets of such entities are translated at period end exchange rates the resulting exchange differences are recorded 
through a separate component of equity
transactions in currencies other than the functional currency of an entity are translated at the exchange rate at the date of the transaction 
foreign currency monetary assets and liabilities held at the period end are translated at period end exchange rates the resulting exchange gain 
or loss is recorded in the income statement 
when a foreign entity is partially disposed of or sold exchange differences that were recorded in equity are recognised in the income statement 
as part of the gain or loss on sale
leases
leases under which substantially all of the risk and rewards of ownership are transferred to the group are ﬁ nance leases all other leases 
are operating leases
assets held under ﬁ nance leases are recognised at the lower of the fair value of the asset and the present value of the minimum lease payments 
within property plant and equipment on the balance sheet and depreciated over the shorter of the lease term or their expected useful lives 
the interest element of ﬁ nance lease payments represents a constant proportion of the capital balance outstanding and is charged to the 
income statement over the period of the lease
operating lease rentals are charged to the income statement on a straightline basis over the lease term
borrowing costs
the group capitalises borrowing costs directly attributable to the acquisition construction or production of qualifying assets requiring a 
substantial amount of time to be ready for the intended purpose
derivative ﬁ nancial instruments
derivatives are recognised at their fair value when a derivative does not qualify for hedge accounting as a cash ﬂ ow hedge changes in fair 
value are recognised immediately in the income statement when a derivative qualiﬁ es for hedge accounting as a cash ﬂ ow hedge changes 
in fair value that are determined to be an effective hedge are recognised directly in the hedging reserve except to the extent that it relates to 
movements in forward points on forward contracts and time value of options any ineffective portion of the change in fair value is recognised 
immediately in the income statement along with the forward points and time value 
if a hedged transaction subsequently results in the recognition of a nonﬁ nancial asset or a nonﬁ nancial liability the associated cumulative 
gain or loss is removed from the hedging reserve and is included in the initial cost or other carrying amount of the asset or liability for all other 
cash ﬂ ow hedges the associated cumulative gain or loss is removed from the hedging reserve and recognised in the income statement in the 
same period or periods during which the hedged forecast transaction affects the income statement
when a derivative qualiﬁ es for hedge accounting as a fair value hedge changes in fair value of the derivative are recognised in the income 
statement when the offsetting changes in the fair value of the hedged asset or liability attributable to the hedged risk occur
nonderivative ﬁ nancial instruments
financial assets and liabilities are recognised when the group becomes a party to the contractual provisions of the instrument financial assets 
are derecognised when the group transfers the ﬁ nancial asset or when the contractual rights expire financial liabilities are derecognised when 
the obligation is discharged cancelled or expires the measurement of particular ﬁ nancial assets and liabilities is set out below
trade and other receivables
trade and other receivables are recognised at their fair value and subsequently recorded at amortised cost using the effective interest method 
as reduced by allowances for estimated irrecoverable amounts an allowance for irrecoverable amounts is established when there is objective 
evidence that the group will not be able to collect all amounts due according to the original terms of the receivables the amount of allowance 
is the difference between the asset’s carrying amount and the present value of estimated future cash ﬂ ows
th017accountsp73130indd 85 th017accountsp73130indd   85 21122010 2247 21122010   2247 86 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
2 accounting policies continued
availableforsale ﬁ nancial assets
availableforsale ﬁ nancial assets are recognised and subsequently recorded at their fair value gains or losses except for impairment losses and
foreign exchange gains and losses are recognised directly in equity until the ﬁ nancial asset is derecognised at this point the cumulative gain or 
loss previously recognised in equity is recognised in the income statement any impairment losses foreign exchange gains or losses or dividends 
receivable are recognised in the income statement
held for trading investments
shortterm investments are classiﬁ ed as held for trading and are recognised and subsequently recorded at their fair value gains or losses are 
recognised in the income statement
other noncurrent asset investments 
the fair value of investments in equity instruments that do not have a quoted market price in an active market are measured using an 
appropriate valuation technique where a fair value cannot be reliably measured the investment is measured at cost loans and receivables 
are initially recognised at fair value plus any directly attributable transaction costs and are subsequently measured at amortised cost using 
the effective interest method any impairment losses are recognised in the income statement
trade and other payables
trade and other payables are initially recognised at their fair value and subsequently recorded at amortised cost using the effective 
interest method
borrowings
interest bearing borrowings are initially recognised at their fair value net of any directly attributable transaction costs they are subsequently 
recorded at amortised cost using the effective interest method
provisions
provisions are recognised when the group has a present obligation as a result of a past event if it is probable that an outﬂ ow of resources will 
be required to settle the obligation and a reliable estimate of the amount of the obligation can be made 
provisions are recognised at the directors’ best estimate of the expenditure required to settle the obligation at the balance sheet date where the 
effect of the time value of money is material the provision is discounted to its present value 
termination beneﬁ ts
termination beneﬁ ts are payable when employment is terminated by the group before the normal retirement date or whenever an employee 
accepts voluntary redundancy in exchange for these beneﬁ ts the group recognises termination beneﬁ ts when it is demonstrably committed 
to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing 
termination beneﬁ ts as a result of an offer made to encourage voluntary redundancy
sharebased payments
the group issues equitysettled share options to certain employees as part of their total remuneration the fair values of the share options are 
calculated at the date of grant using an appropriate option pricing model these fair values are charged to the income statement on a straight
line basis over the expected vesting period of the options with a corresponding increase in equity
insurance contracts and reinsurance contracts
premiums written relate to business incepted during the year together with any differences between the booked premiums for prior years and 
those previously accrued less cancellations premiums are recognised as revenue earned premiums proportionally over the period of coverage 
premiums are shown after the deduction of commission and premium taxes where relevant
claims and loss adjustment expenses are charged to the income statement as incurred based on the estimated liability for compensation owed 
to policyholders or third parties damaged by policyholders the group does not discount its liabilities for unpaid claims liabilities for unpaid 
claims are estimated using the input of assessments for individual cases reported to the group and statistical analysis for the claims incurred 
but not reported
contracts entered into by the group with reinsurers under which the group is compensated for losses on one or more contracts issued by the 
group and that meet the classiﬁ cation requirements for insurance contracts are classiﬁ ed as reinsurance contracts held the beneﬁ ts to which 
the group is entitled under its reinsurance contracts held are recognised as receivables from reinsurers the group assesses its reinsurance assets 
for impairment on an annual basis
receivables and payables are recognised when due these include amounts due to and from insurance policyholders
th017accountsp73130indd 86 th017accountsp73130indd   86 21122010 2247 21122010   2247 thomas cook group plc annual report  accounts 2010 87
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critical judgements in applying the group’s accounting policies
in the process of applying the group’s accounting policies described above management has made the following judgements that have 
the most signiﬁ cant effect on the amounts recognised in the ﬁ nancial statements
residual values of tangible ﬁ xed assets
judgements have been made in respect of the residual values and useful economic lives of aircraft included in property plant and equipment 
those judgements determine the amount of depreciation charged in the income statement
recoverable amounts of goodwill and intangible assets with an indeﬁ nite life
judgements have been made in respect of the amounts of future operating cash ﬂ ows to be generated by certain of the group’s businesses in 
order to assess whether there has been any impairment of the amounts included in the balance sheet for goodwill or intangible assets with an 
indeﬁ nite life in relation to those businesses
special purpose entities
the nature of the relationship with certain special purpose entities involved in leasing aircraft to the group shows that they should be interpreted 
as controlled by the group and therefore consolidated even though the group has no direct or indirect equity interest in those entities
key sources of estimation uncertainty
the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a signiﬁ cant 
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next ﬁ nancial year are discussed below
impairment of goodwill and intangible assets with an indeﬁ nite life
determining whether goodwill or intangible assets with an indeﬁ nite life are impaired requires an estimation of the value in use of the 
cashgenerating units to which goodwill has been allocated the value in use calculation requires the group to estimate the future cash ﬂ ows 
expected to arise from the cashgenerating unit at a suitable discount rate in order to calculate present value 
recoverable amounts of deposits and prepayments
estimates have been made in respect of the volumes of future trading with hoteliers and the creditworthiness of those hoteliers in order to 
assess the recoverable amounts of deposits and prepayments made to those hoteliers
aircraft maintenance provisions
provisions for the cost of maintaining leased aircraft and spares are based on forecast aircraft utilisation estimates of future maintenance 
costs and planned rollover and renewal of the aircraft ﬂ eet
tax
the group operates in many tax regimes and the tax implications of its operations are complex it can take several years for tax liabilities to be 
agreed with the relevant authorities tax assets and liabilities represent management’s estimates of tax that will be payable or recoverable in the 
future and may be dependent on estimates of future proﬁ tability
in addition estimates have been made in respect of the probable future utilisation of tax losses and deferred tax assets have been recognised 
as a result the recoverability of these assets is dependent on the agreement of the losses with the relevant authorities and the estimates of 
future proﬁ tability
retirement beneﬁ ts
the consolidated ﬁ nancial statements include costs in relation to and provision for retirement beneﬁ t obligations the costs and the present 
value of any related pension assets and liabilities depend on such factors as life expectancy of the members the salary progression of current 
employees the returns that plan assets generate and the discount rate used to calculate the present value of the liabilities the group uses 
previous experience and impartial actuarial advice to select the values of critical estimates the estimates and the effect of variances in key 
estimates are disclosed in note 35
th017accountsp73130indd 87 th017accountsp73130indd   87 21122010 2248 21122010   2248 88 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
3 segmental information
for management purposes the group is currently organised into six geographic operating divisions uk central europe west  east europe 
northern europe north america and airlines germany these divisions are the basis on which the group reports its primary segment 
information certain residual businesses and corporate functions are not allocated to these divisions and are shown separately as corporate 
the primary business of all of these operating divisions is the provision of leisure travel services and accordingly no separate secondary 
segmental information is provided
segmental information for these activities is presented below
year ended 30 september 2010
uk
£m
central 
europe
£m
west  east 
europe
£m
northern 
europe
£m
north 
america
£m
airlines
germany
£m
corporate
£m
total
£m
revenue
segment sales 31505 20240 17078 10166 3525 9962  – 92476 
intersegment sales 71 506 94 26 – 2878 – 3575
total revenue 31434 19734 16984 10140 3525 7084  – 88901 
result
underlying operating proﬁ tloss from operations 1075 586 820 917 91 511 378 3622 
exceptional operating items 937 88 294 32 175 139 62 1663
ias 39 fair value remeasurement 33 – 21 07 01 66  – 20 
amortisation of business combination intangibles 94 – 05 203 07 –  – 309
segment result 11 498 500 753 90 438 440 1670 
share of results of associates and joint venture 32 
net investment loss 15
finance income 521 
finance costs 1791 
proﬁ t before tax 417 
tax 389
proﬁ t for the year 28
other information
capital additions 799 227 223 729 44 680 155 2857
depreciation 416 61 38 100 15 623 01 1254 
amortisation of intangible assets 122 49 56 08 14 04 21 274
amortisation of business combination intangibles 94 – 05 203 07 – – 309
impairment of property plant  equipment 148 – – – – – – 148 
balance sheet
assets
segment assets 37521 14101 10364 17650 3706 7569 43326 134237 
intersegment eliminations 69843
 64394 
investments in associates and joint ventures 386
tax and deferred tax assets 4226
total assets 69006
liabilities
segment liabilities 26460 8359 7022 8920 3080 5712 41852 101405 
intersegment eliminations 63072
38333 
tax and deferred tax liabilities 1814
borrowings and obligations under ﬁ nance leases 11432
total liabilities 51579 
intersegment sales are charged at prevailing market prices segment assets consist primarily of goodwill other intangible assets property plant 
and equipment trade and other receivables and cash and cash equivalents
segment liabilities comprise trade and other payables revenue received in advance and provisions
capital additions comprise additions to other intangible assets note 12 and property plant and equipment note 13
th017accountsp73130indd 88 th017accountsp73130indd   88 21122010 2248 21122010   2248 thomas cook group plc annual report  accounts 2010 89
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statements
the entity is domiciled in the uk revenue from external customers in the uk was £29418m 2009 £28849m which is derived from the 
‘uk’ segmental revenue shown above but excluding external revenue in india egypt ireland and spaindomiciled companies which would 
otherwise be included in the uk segment revenue from external customers in germany was £25112m 2009 £26692m
the total of noncurrent assets other than ﬁ nancial instruments and deferred tax there are no employment beneﬁ ts assets or rights arising 
under insurance contracts located in the uk was £23467m 2009 £23662m
year ended 30 september 2009 restated
uk
£m
central 
europe
£m
west  east
europe
£m
northern
europe
£m
north 
america
£m
airlines 
germany
£m
corporate
£m
total
£m
revenue
segment sales 31172 21910 18600 10616 3704 10612  – 96614 
intersegment sales 192 439 68 23 – 3204 – 3926
total revenue 30980 21471 18532 10593 3704 7408  – 92688 
result
underlying proﬁ tloss from operations 1620 504 857 866 179 474 349 4151 
exceptional operating items 888 219 427 73 228 34 290 2159
ias 39 fair value remeasurement 06 – 03 07 01 64 – 81
amortisation of business combination intangibles 138 – 05 189 12 –  – 344
segment result 588 285 422 597 62 376 639 1567 
share of results of associates and joint venture 38
loss on disposal of associate 22
net investment income 14 
finance income 726 
finance costs 1796 
proﬁ t before tax 451 
tax 356
proﬁ t for the year 95
other information
capital additions 634 26 202 103 50 631 334 1980 
depreciation 477 69 42 92 10 748 14 1452 
amortisation of intangible assets 101 09 39 06 08 03 58 224 
amortisation of business combination intangibles 138 – 05 189 12  –  –  344 
impairment of intangible assets – – 08 –  –  – 172 180 
balance sheet
assets
segment assets 38249 8418 10318 16592 3188 8769 39316 124850 
intersegment eliminations 59372
65478 
investments in associates and joint ventures 360 
tax and deferred tax assets 4777
total assets 70615 
liabilities
segment liabilities 26416 6207 6741 9163 2699 6172 29381 86779 
intersegment eliminations 47524
39255 
tax and deferred tax liabilities 1909 
borrowings and obligations under ﬁ nance leases 12255 
total liabilities 53419
th017accountsp73130indd 89 th017accountsp73130indd   89 21122010 2248 21122010   2248 90 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
4 personnel expenses
2010
£m
2009
£m
wages and salaries 9020 9254 
social security costs 1129 1151 
sharebased payments – equity settled see note 34 81 83 
deﬁ ned beneﬁ t pension costs see note 35 223 179 
deﬁ ned contribution pension costs see note 35 203 201 
10656 10868 
the average number of employees of the group during the year was
2010
number
restated
2009
number
uk 17686 18116 
central europe 3608 3644 
west  east europe 3217 3271 
northern europe 2680 2723 
north america 1092 1220 
airlines germany 2363 2342 
corporate 101 167 
30747 31483 
disclosures of directors’ remuneration share options longterm incentive schemes pension contributions and pension entitlements required by 
the companies act 2006 and those speciﬁ ed for audit by the financial services authority are on pages 66 to 69 within the remuneration report 
and form part of these audited ﬁ nancial statements
disclosures in respect of remuneration of key management personnel are included in note 36
5 net operating expenses
2010
£m
restated 
2009
£m
advertising expenses 1648 1765 
rents and expenses for building maintenance 1438 1562 
information technology costs 841 908 
travel expenses and ancillary personnel expenses 639 680 
telecommunications costs 428 455 
legal and consultancy fees 469 517 
impairment of current and noncurrent assets 137 418 
insurance 148 143 
training expenses 106 119 
other taxes 25 57 
other operating expenses 567 724 
6446 7348 
th017accountsp73130indd 90 th017accountsp73130indd   90 21122010 2248 21122010   2248 thomas cook group plc annual report  accounts 2010 91
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6 separately disclosed items
2010
£m
restated
2009
£m
exceptional operating items
direct costs of volcanic ash cloud 529 – 
property costs redundancy and other costs incurred in business integrations and reorganisations 354 1128
asset impairment and onerous lease provisions in hi hotels 260 – 
costs and write downs associated with skyservice liquidation 153 –
aircraftrelated exceptional items 39 –
fuelrelated exceptional items 233 207
loss on disposal of assets 18 39
property costs redundancy and other costs incurred in integrating the thomas cook and mytravel businesses – 566
other exceptional operating items 77 219
total exceptional operating items 1663 2159
share of associates’ exceptional items
loss on disposal of associate – 22
 – 22
exceptional ﬁ nance costsincome
loss on revaluation of trading securities – 106
reversal of prior year impact of ﬁ nancial markets volatility – 114 
write off of unamortised bank facility setup and related costs 182 – 
182 08 
total exceptional items 1845 2173
ias 39 fair value remeasurement 
time value component of option contracts 20 81
included within cost of providing tourism services 20 81
forward points on foreign exchange cash ﬂ ow hedging contracts 73 100 
included within ﬁ nance income and costs 73 100 
amortisation of business combination intangibles 309 344
total separately disclosed items 2061 2498
the direct costs associated with the volcanic ash cloud in april 2010 amounted to £529m and included additional accommodation and 
subsistence costs for customers stranded in resort and the costs of customer repatriation when the airspace was eventually reopened
the £354m 2009 £1128m relates to the integration of acquisitions and other restructuring projects that have been undertaken across the 
thomas cook group the restructuring projects largely reﬂ ect changes made to underlying business processes and systems in the uk germany 
the western europe markets and canada to improve efﬁ ciency and cost leadership across the group
the £260m asset impairment and onerous lease provisions in hi hotels relates to the longterm hotel operating leases within hi hotels 
acquired as part of the mytravel group which were entered into at a time when market conditions in the spanish holiday destinations 
were very favourable the emergence of alternative holiday destinations the strong euro and the global recession have resulted in signiﬁ cant 
margin pressure in the spanish destinations such that many of the leases are now considered to be onerous we continue to pursue arbitration 
proceedings with the owner of the hotels which will potentially result in a reduction in the hotel rental costs however it remains too early to 
predict whether these proceedings will be successful of the £260m £148m relates to ﬁ xed assets impairment and is disclosed in note 13
on 31 march 2010 skyservice a canadian airline that provided ﬂ ying capacity to our canadian tour operator was placed in courtappointed 
receivership as a result of the collapse of skyservice we suffered signiﬁ cant disruption to our ﬂ ying programme in april the last month of 
the high season for our canadian tour operator the direct costs of the disruption together with the write down of certain receivables from 
skyservice amounted to £153m
the runoff of fuelrelated exceptional items amounted to £233m 2009 £207m these items were speciﬁ c to our fuel hedging for 2009 
and 2010 and as such are not expected to recur in future years
other exceptional operating items of £77m 2009 £219m include acquisition costs and losses resulting from other exceptional operating 
events that are not expected to recur in future years
th017accountsp73130indd 91 th017accountsp73130indd   91 21122010 2248 21122010   2248 92 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
6 separately disclosed items continued
exceptional operating items have been included in the income statement as follows
2010
£m
restated
2009
£m
cost of providing tourism services 829 587
personnel expenses 128 597
depreciation and amortisation – 92
net operating expenses 688 844
loss on disposal of assets 18 39
total exceptional operating items 1663 2159
7 finance income and costs
2010
£m
restated
2009
£m
underlying ﬁ nance income
income from loans included in ﬁ nancial assets 07 10 
other interest and similar income 53 111 
expected return on pension plan assets note 35 379 384 
fair value gains on derivative ﬁ nancial instruments 09 07 
448 512 
underlying ﬁ nance costs
interest payable 809 853
finance costs in respect of ﬁ nance leases 127 225
interest cost on pension plan liabilities note 35 548 501
discounting of provisions note 26 125 111
1609 1690
exceptional ﬁ nance costsincome
loss on revaluation of trading securities – 106
impact of ﬁ nancial markets volatility – 114 
write off of unamortised bank facility setup and related costs 182 – 
182 08 
ias 39 fair value remeasurement
forward points on foreign exchange cash ﬂ ow hedging contracts 73 100
8 proﬁ t before tax
proﬁ t before tax for the year has been arrived at after chargingcrediting
2010
£m
restated
2009
£m
exceptional operating items see note 6 1663 2159 
including impairment of property plant and equipment 148 –
 impairment of intangible assets – 180 
depreciation of property plant and equipment – owned assets 747 1116 
 – held under ﬁ nance leases 507 336 
amortisation of intangible assets 274 224 
amortisation of business combination intangibles 309 344 
cost of inventories recognised as expense 410 268 
loss on disposal of associate – 22 
operating lease rentals payable – hire of aircraft and aircraft spares 1340 1019 
 – other 1278 1180 
net foreign exchange gains 163 576
personnel expenses see note 4 10656 10868 
auditors’ remuneration see next page 29 36 
th017accountsp73130indd 92 th017accountsp73130indd   92 21122010 2248 21122010   2248 thomas cook group plc annual report  accounts 2010 93
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a more detailed analysis of auditors’ remuneration on a worldwide basis is provided below
2010
£m
2009
£m
pricewaterhousecoopers llp
fees payable to the company’s auditors for the audit of the company’s ﬁ nancial statements 02 02 
fees payable to the company’s auditors and their associates for the audit of the company’s subsidiaries 
pursuant to legislation 20 20 
total audit fees 22 22 
other services pursuant to legislation 03 03 
tax services 01 03 
valuation and actuarial services 01 02 
recruitment and remuneration services – 05 
all other services 02 01 
total nonaudit fees 07 14 
total fees 29 36 
in addition to the above £56000 2009 £56000 has been incurred in respect of the audits of the group pension schemes
a description of the work of the audit committee is set out in the corporate governance report on page 54 and includes an explanation of how 
auditor objectivity and independence is safeguarded when nonaudit services are provided by the auditors
9 tax
2010
£m
restated
2009
£m
analysis of tax charge
current tax
uk   corporation tax chargecredit for the year 16 25
  adjustments in respect of prior periods – 14
 16 39
overseas   corporation tax charge for the year 325 273
  adjustments in respect of prior periods 51 46
 376 227 
total current tax 392 188 
deferred tax 
  tax creditcharge for the year 11 70
  adjustments in respect of prior periods 08 98 
total deferred tax 03 168 
total tax charge 389 356 
tax reconciliation
proﬁ t before tax 417 451 
expected tax charge at the uk corporation tax rate of 28 2009 28 117 126
impact of changes in tax rates note 25 86 –
income not liable for tax 139 146
expenses not deductible for tax purposes 63 56 
losses and other timing differences for which tax relief is not available 509 315 
difference in rates of tax suffered on overseas earnings 02 18 
utilisation of tax losses not previously recognised 63 17
recognition of losses and other timing differences not previously recognised 249 29
income tax charge in respect of prior periods 59 38 
other 08 05
tax charge 389 356 
in addition to the amount charged to the income statement deferred tax relating to actuarial losses on pension schemes and the fair value 
of derivative ﬁ nancial instruments of £219m has been charged directly to equity 2009 credit of £1179m uk corporation tax is calculated 
at 28 2009 28 of the estimated assessable proﬁ t for the year taxation for other jurisdictions is calculated at the rates prevailing in the 
respective jurisdictions
surplus losses not recognised in deferred tax of £8882m 2009 £6799m are available in the uk and germany for offset against future proﬁ ts
th017accountsp73130indd 93 th017accountsp73130indd   93 21122010 2248 21122010   2248 94 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
10 dividends
the following dividends have been deducted from equity in the year
2010
£m
2009
£m
final dividend paid for 2009 of 7p per share 2008 65p 597 558 
interim dividend for 2010 of 375p per share 2009 375p 320 316 
917 874 
the interim dividend for 2010 was paid to shareholders in october 2010
subsequent to the balance sheet date the directors have proposed a ﬁ nal dividend in respect of the year ended 30 september 2010 of 7p per 
share which subject to approval by shareholders at the annual general meeting will be paid on 7 april 2011 to holders of relevant shares 
registered on 18 march 2011 the ﬁ nal proposed dividend amounts to £598m and will subject to shareholder approval be recognised in the 
consolidated ﬁ nancial statements for the year ending 30 september 2011 the ﬁ nal dividend of 7p per share together with the interim dividend 
of 375p per share makes a total dividend of 1075p per share relating to the year ended 30 september 2010
11 earnings per share
the calculations for earnings per share based on the weighted average number of shares are shown in the table below the weighted average 
number of shares shown excludes 45m shares held by the employee share ownership trusts 2009 51m
basic and diluted lossearnings per share
2010
£m
restated
2009
£m
net lossproﬁ t attributable to equity holders of the parent 26 70 
millions millions
weighted average number of shares for basic lossearnings per share 8538 8537
effect of dilutive potential ordinary shares – share options – 52 
weighted average number of shares for diluted lossearnings per share 8538 8589 
pence
restated
pence
basic lossearnings per share 03 08 
diluted lossearnings per share 03 08 
adjusted underlying basic and diluted earnings per share
2010
£m
restated
2009
£m
adjusted underlying net proﬁ t attributable to equity holders of the parent 1951 2131 
millions millions
weighted average number of shares for basic earnings per share 8538 8537 
effect of dilutive potential ordinary shares – share options 08 52 
weighted average number of shares for diluted earnings per share 8546 8589 
pence pence
adjusted underlying basic earnings per share 228 250
adjusted underlying diluted earnings per share 228 248 
  awards of shares under the thomas cook performance share plan buy as you earn scheme and the coinvestment plan will be satisﬁ ed by shares held in trust and therefore are 
potentially dilutive the remainder of the share schemes will be satisﬁ ed by the purchase of existing shares in the market and will therefore not result in any dilution of earnings 
per share 
 adjusted underlying net proﬁ t attributable to equity holders of the parent is derived from the underlying proﬁ t before tax for the year ended 30 september 2010 adjusted for 
management’s estimate of the impact of the volcanic ash cloud of £3914m 2009 £4151m and deducting a notional tax charge of £765m 2009 £793m
th017accountsp73130indd 94 th017accountsp73130indd   94 21122010 2249 21122010   2249 thomas cook group plc annual report  accounts 2010 95
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12 intangible assets
2010
£m
restated
2009
£m
goodwill 32163 31886 
business combination intangible assets 3843 4032 
other 2283 1779 
38289 37697
goodwill
cost £m
at 1 october 2008 30320 
additions restated 495 
exchange differences 2244 
at 30 september 2009 restated 33059 
additions 152
reassessment of goodwill note 15 15
exchange differences 76 
at 30 september 2010 33272 
accumulated impairment losses
at 1 october 2008 1013 
exchange differences 160 
at 30 september 2009 1173 
exchange differences 64 
at 30 september 2010 1109 
carrying amount
at 30 september 2010 32163 
at 30 september 2009 restated 31886 
the carrying value of goodwill is analysed by business segment as follows
2010
£m
restated
2009
£m
uk 20947 21056 
central europe 614 635
west  east europe 1326 1401
northern europe 7311 6909 
north america 1748 1656 
airlines germany 217 229 
32163 31886 
in accordance with accounting standards the group annually tests the carrying value of goodwill for impairment at 30 september 2010 the 
review was undertaken on a value in use basis assessing whether the carrying value of goodwill was supported by the net present value of 
future cash ﬂ ows derived from those assets using cash ﬂ ow projections discounted at pretax rate of 10 to 12  2009 9 to 13 and 10 
2009 9 to 10 for the uk and other segments respectively reﬂ ecting speciﬁ c risks relating to the relevant cashgenerating units the uk 
segment includes india and egypt which are discounted at a higher rate than the remainder of the uk segment
the key assumptions used in the value in use calculations are those regarding the discount rates revenue and cost growth rates and the level of 
capital expenditure required during the year the group prepares cash ﬂ ow forecasts derived from the most recently approved annual budgets 
and three year plans of the relevant businesses the cash ﬂ ow forecasts reﬂ ect the risk associated with each asset cash ﬂ ow forecasts for years 
beyond the three year plan period are extrapolated based on estimated growth rates which do not exceed the average longterm growth rates 
for the relevant markets
there were no impairment losses recognised on goodwill during the year 2009 £nil and no reasonable change to the assumptions would lead 
to a material impairment
th017accountsp73130indd 95 th017accountsp73130indd   95 21122010 2249 21122010   2249 96 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
12 intangible assets continued
business combination intangibles
brands and
customer
relationships
£m
order
backlog
£m
computer
software
£m
other
£m
total
£m
cost
at 1 october 2008 4014 405 134 31 4584 
additions restated 409 02  –  – 411 
disposal of subsidiaries 24 –  –  – 24
exchange differences 291 04 14  – 309 
at 30 september 2009 restated 4690 411 148 31 5280 
exchange differences 150 01  09 05 163
at 30 september 2010 4840 410 157 36 5443 
amortisation
at 1 october 2008 422 393 42  – 857 
charge for the year restated 296 14 34  – 344 
exchange differences 37 03 07  – 47 
at 30 september 2009 restated 755 410 83  – 1248 
charge for the year 271 01 36 01 309 
exchange differences 35 01 09  – 43
at 30 september 2010 1061 410 128 01 1600 
carrying amount
at 30 september 2010 3779 – 29 35 3843 
at 30 september 2009 3935 01 65 31 4032 
the initial valuation of business combination intangibles is based on applicable projected future cash ﬂ ows discounted at an appropriate 
discount rate customer relationships are being amortised over periods of 1 to 15 years and computer software over a period of 4 years order 
backlog has been amortised over the period from acquisition to departure other includes fair value attributed to a foreign exchange licence 
from the acquisition of thomas cook india which is being amortised over 25 years
indeﬁ nitelived intangible assets principally comprise those trademarks for which there is no foreseeable limit to the period over which they are  
expected to generate net cash inﬂ ows these are considered to have an indeﬁ nite life given the strength and durability of our brands and the 
level of marketing support the nature of the industry we operate in is such that brand obsolescence is not common if appropriately supported 
by advertising and marketing spend the group annually tests the carrying value of indeﬁ nitelived intangibles for impairment on a value in use 
basis consistent with that disclosed for goodwill earlier in this note
the carrying value of brands with an indeﬁ nite life is analysed by business segment as follows
2010
£m
2009
£m
uk 706 706 
west  east europe 234 236 
northern europe 1346 1272
north america 223 218 
2509 2432 
th017accountsp73130indd 96 th017accountsp73130indd   96 21122010 2249 21122010   2249 thomas cook group plc annual report  accounts 2010 97
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other intangible assets
computer software and concessions other
total
£m
purchased
£m
internally
generated
£m
purchased
£m
cost
at 1 october 2008 1756 1018 07 2781 
additions 361 302 22 685 
acquisitions – 05 38 43 
disposals 09 50 – 59 
exchange differences 276 66 03 345
at 30 september 2009 2384 1341 70 3795 
additions 282 435 131 848 
disposals 62 06 – 68
exchange differences 116 19 03 132 
at 30 september 2010 2488 1751 204 4443 
amortisation
at 1 october 2008 786 651 05 1442 
charge for the year 74 134 16 224 
impairment losses 180  –  – 180 
disposals 04 12  – 16 
exchange differences 149 37 – 186
at 30 september 2009 1185 810 21 2016 
charge for the year 104 164 06 274
disposals 55 03  – 58 
exchange differences 57 15 – 72
at 30 september 2010 1177 956 27 2160 
carrying amount
at 30 september 2010 1311 795 177 2283 
at 30 september 2009 1199 531 49 1779 
computer software is amortised on a straightline basis over its estimated useful life of between three and ten years concessions include the 
value of licences granted to the group as well as copyrights and trademarks and similar items licences are amortised over the period of the 
licence up to a maximum of ten years other items are amortised over their estimated useful lives of between three and ﬁ ve years
th017accountsp73130indd 97 th017accountsp73130indd   97 21122010 2249 21122010   2249 98 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
13 property  plant and equipment
aircraft and
aircraft spares
£m
investment
property
£m
other property plant and equipment
freehold land
and buildings
£m
short
leaseholds
£m
other
ﬁ xed assets
£m
other
total
£m
cost
at 1 october 2008 14417 157 2132 1721 2179 6032 
additions 865  – 09 148 273 430 
acquisitions –  –  – 05 14 19 
disposals 89 – 15 121 218 354 
exchange differences 1941 23 312 117 359 788
at 30 september 2009 17134 180 2438 1870 2607 6915 
additions 1542 – 105 107 255 467
acquisitions note 15 – – – – 01 01
disposals 517 – 27 47 93 167 
exchange differences 761 10 123 40 109 272
at 30 september 2010 17398 170 2393 1890 2661 6944 
accumulated depreciation and impairment
at 1 october 2008 8569  – 548 1078 1283 2909 
charge for the year 1051  – 72 111 218 401 
disposals 63  – 10 99 182 291
exchange differences 1294 – 100 76 249 425
at 30 september 2009 10851  – 710 1166 1568 3444 
charge for the year 983 – 63 103 105 271 
provision for impairment note 6 –––– 148 148 
disposals 457 – 25 31 84 140 
exchange differences 531 – 43 25 72 140 
at 30 september 2010 10846  – 705 1213 1665 3583 
carrying amount
at 30 september 2010 6552 170 1688 677 996 3361 
at 30 september 2009 6283 180 1728 704 1039 3471 
freehold land with a cost of £375m 2009 £387m has not been depreciated
the net book value of aircraft and aircraft spares includes £1118m 2009 £1705m in respect of assets held under ﬁ nance leases
the net book value of other property plant and equipment includes £141m 2009 £158m in respect of assets held under ﬁ nance lease
the valuation of investment property during the year resulted in no material change to the carrying value of the asset
capital commitments
2010
£m
2009
£m
capital expenditure contracted but not provided for in the accounts 389 1278
th017accountsp73130indd 98 th017accountsp73130indd   98 21122010 2249 21122010   2249 thomas cook group plc annual report  accounts 2010 99
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14 noncurrent asset investments
associates and 
joint venture
£m
other investments
availableforsale 
ﬁ nancial assets
£m
loans  
receivables
£m
total other 
investments
£m
cost
at 1 october 2009 678 95 132 227 
disposals – 01 – 01
group’s share of associates’ and joint venture’s proﬁ t for the year 12 –  –  – 
additional loan investment 12 – 07 07 
exchange differences 34 06 – 06
at 30 september 2010 668 88 139 227 
amounts written off or provided
at 1 october 2009 318 24  – 24 
impairment reversalslosses 20 17 – 17 
exchange differences 16 01 – 01 
at 30 september 2010 282 40  – 40 
carrying amount
at 30 september 2010 386 48 139 187 
at 30 september 2009 360 71 132 203 
associates
investments in associates at 30 september 2010 included a 40 interest in activos turisticos sa an incoming agency and hotel company 
and hispano alemana de management hotelero sa a hotel management company both companies are based in palma de mallorca spain 
investments also include a 251 interest in oasis company sae a hotel company in egypt
during the year the group reversed impairment losses of £29m in respect of its 25 interest in hotelera adeje sl and recognised impairment 
losses of £09m in respect of its 25 interest in coplay 95 sl both hotel companies the net impairment reversal of £20m has been included 
in “share of results of associates and joint venture” in the income statement
joint venture
the group’s joint venture entity is thomas cook personal finance limited this is a joint venture arrangement with barclays bank the group’s 
share being 50
summarised ﬁ nancial information in respect of the associates and joint venture is as follows
2010
joint venture
£m
2010
associates
£m
2009
joint venture
£m
2009
associates
£m
total assets 996 2486 1140 2489
total liabilities 1216 1178 1334 1165
net liabilitiesassets 220 1308 194 1324
group’s share of net liabilitiesassets 110 416 97 422
revenue 76 1425 42 1252
lossproﬁ t for the year 24 65 74 23
group’s share of associates’ and joint venture’s lossproﬁ t for the year 12 24 37 01
net impairment reversals recognised by the group – 20 ––
group’s share of result of associates and joint venture after tax 12 44 37 01
the ﬁ nancial statements of the associates are made up to 31 december each year being their ﬁ nancial reporting date for the purposes of 
applying the equity method of accounting for 2010 the ﬁ nancial statements of these undertakings for the year ended 31 december 2009 have 
been used together with management accounts for the period from 1 january 2010 to 30 september 2010
other investments
availableforsale ﬁ nancial assets include £37m in respect of a 249 interest in aldiana gmbh a german tour operator during the year the 
group recognised an impairment loss of £17m on its investment in aldiana this is shown in net investment income in the income statement 
aldiana is not accounted for under the equity method as the group does not have signiﬁ cant inﬂ uence over its activities 
during the year ended 30 september 2010 the group recognised interest on other ﬁ xed asset investments of £02m 2009 £14m there is no 
active market for the availableforsale ﬁ nancial assets consequently they are recorded at cost
loans and receivables of £139m are in respect of the group’s investment as a member of airline group in the uk national air trafﬁ c services 
nats the investment comprises ordinary shares accruing interest at 8 in the airline group
th017accountsp73130indd 99 th017accountsp73130indd   99 21122010 2249 21122010   2249 100 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
15 subsidiaries and acquisitions
a list of the signiﬁ cant investments in subsidiaries including the name country of incorporation and proportion of ownership interest is given 
in note 17 to the company’s separate ﬁ nancial statements all of the subsidiary undertakings have been consolidated in the group accounts
interpretation guidance included within sic interpretation 12 ‘consolidation – special purpose entities’ indicates that certain special purpose 
entities spes which are involved in aircraft leasing arrangements with the group should be interpreted as being controlled by the group 
and therefore subject to consolidation even though the group has no direct or indirect equity interest in those entities as a consequence 
the group has consolidated three 2009 three spes that own four 2009 four aircraft operated by the group on operating leases in addition 
during the prior year the operations of the german airline were placed in a holding company in which the group owns a 500023 direct 
interest all risks and rewards continue to be held by the group and in accordance with accounting standards the entity has been treated 
as being 100 controlled and fully consolidated by the group
acquisitions made during the year
during the year the group concluded two acquisitions as follows 
• 30 april 2010 100 of think w3 ltd trading as essential travel and 
• 5 july 2010 the remaining 51 of thomas cook services cyprus ltd a business formerly accounted for as an associate
details of the net assets acquired are set out in the table below
amount 
recognised at 
acquisition date
£m
net assets acquired
property plant and equipment 01
investments 11
trade and other receivables 07
cash and cash equivalents 10
trade and other payables 26
tax liability 03
–
goodwill 152
total consideration 152
satisﬁ ed by
cash 42
deferred consideration 11
contingent consideration 99
152
the purchase price of each asset component of the acquisition represents its provisional fair value based on management’s best estimates 
the amount indicated above for trade and other receivables represents the fair value of the acquired receivables and is equal to the gross 
contractual cash ﬂ ows all of which is expected to be recoverable
the acquired businesses contributed revenue of £15m and net proﬁ t of £06m to the group for the period from acquisition to 30 september 2010
if the acquisitions had occurred on 1 october 2009 they would have contributed £29m to consolidated revenue and £12m to consolidated 
net proﬁ t
the provisional goodwill of £152m reﬂ ects anticipated beneﬁ ts from gaining control of the thomas cook brand in cyprus and increased market 
share in the case of essential travel
changes to the prior period acquisitions 
triwest
during the year management reassessed the contingent consideration attributable to the triwest travel holdings limited acquisition based on 
the ﬁ nancial performance during the year this has resulted in a £15m reduction in contingent consideration and goodwill
gold medal
during the year the fair value adjustments related to the gold medal acquisition were ﬁ nalised and the contingent and deferred consideration 
was amended for changes in the expected timing and amount of cash ﬂ ows as these changes have been made within 12 months of the 
acquisition date in accordance with ifrs 3 issued 2004 ‘business combinations’ the fair value adjustments and the adjustments to the 
contingent and deferred consideration have been recognised from the date of acquisition and the comparative ﬁ gures have been restated
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the restatement has had the following impact as at the date of acquisition 7 april 2009 and as at 30 september 2009
at date of 
acquisition
£m
at 
30 september
2009
£m
balance sheet
increase in goodwill 15 15
decrease in other intangible assets 65 61
decrease in provisions 32 32
decrease in deferred tax liability 18 17
– 03
income statement
decrease in depreciation and amortisation 04
increase in tax 01
03
net cash outﬂ ow from acquisitions
current year 
acquisitions
£m
gold medal
£m
hotels4u
£m
total
£m
net cash outﬂ ow from acquisitions
cash consideration for shares 42 – – 42
payment of contingent and deferred consideration – 199 41 240
cash and cash equivalents acquired net of overdraft 10 – – 10
total consideration 32 199 41 272
16 inventories
2010
£m
2009
£m
goods held for resale 132 160 
raw materials and supplies 189 110 
321 270 
17 trade and other receivables
2010
£m
restated
2009 
£m
noncurrent assets
trade receivables 01 01 
other receivables 78 89 
deposits and prepayments 1240 891 
loans 20 112 
securities 27 41 
1366 1134 
current assets
trade receivables 3517 3943 
other receivables 882 795 
amounts owed by associates and joint ventures 28 64 
amounts owed by other related parties – 13 
deposits and prepayments 4618 4012 
loans 270 47 
other taxes 414 385 
9729 9259 
th017accountsp73130indd 101 th017accountsp73130indd   101 21122010 2249 21122010   2249 102 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
17 trade and other receivables continued 
the average credit period taken on invoicing of leisure travel services is 13 days 2009 14 days no interest is charged on the receivables the 
credit risk in respect of direct receivables from customers is limited as payment is required in full before the services are provided in the case 
of travel services sold by thirdparty agents the credit risk depends on the creditworthiness of those third parties but this risk is also limited 
because of the relatively short period of credit
deposits and prepayments include amounts paid in advance to suppliers of hotel and other services in order to guarantee the provision of those 
supplies the group’s current policy is that deposits and prepayments will normally be made for periods of up to two years in advance there 
is a credit risk in respect of the continued operation of those suppliers during those periods deposits and prepayments also include £475m 
2009 £650m of deposits on aircraft lease arrangements which are primarily attributable to the uk airline
securities include money market securities amounting to £27m 2009 £40m purchased as collateral against liabilities arising from parttime 
retirement contracts at thomas cook ag which are classiﬁ ed as availableforsale ﬁ nancial assets
the amounts presented in the balance sheet are net of allowances for doubtful receivables an allowance for impairment is made where there 
is an identiﬁ ed loss event which based on previous experience is evidence of a reduction in the recoverability of the cash ﬂ ows
allowances for doubtful debts in respect of trade receivable balances are managed in the business units where the debts arise and are based 
on local management experience factors that are considered include the age of the debt previous experience with the counterparty and local 
trading conditions trade receivables arise from individual customers as well as businesses in the travel sector the directors do not consider 
there to be signiﬁ cant concentration of credit risk relating to trade and other receivables
movement in allowances for doubtful receivables
2010
£m
2009
£m
at beginning of year 612 498 
additional provision 88 259 
exchange differences 25 62 
acquisitions 01 – 
receivables written off 17 131
unused amounts released 99 76
at end of year 558 612 
at the year end trade and other receivables of £1733m 2009 £2347m were past due but not impaired
the analysis of the age of these ﬁ nancial assets is set out below
2010
£m
2009
£m
less than one month overdue 914 1021 
between one and three months overdue 380 601 
between three and twelve months overdue 232 499 
more than twelve months overdue 207 226 
1733 2347 
trade and other receivables are not subject to restrictions on title and no collateral is held as security
the directors consider that the carrying amounts of trade and other receivables approximate to their fair values
18 cash and cash equivalents
2010
£m
2009
£m
cash at bank and in hand 2899 3032 
term deposits with a maturity of less than three months 497 2470 
3396 5502 
cash and cash equivalents largely comprise bank balances denominated in sterling euro and other currencies for the purpose of settling current 
liabilities as well as balances arising from agency collection on behalf of the group’s travel agencies
included within the above balance are the following amounts considered to be restricted 
• £463m 2009 £462m held within escrow accounts in canada switzerland and the uk in respect of local regulatory requirements
• £171m 2009 £136m of cash held by white horse insurance ireland limited the group’s captive insurance company and
• £111m 2009 £57m of cash held in countries where exchange control restrictions are in force india egypt tunisia and morocco 
net of cash available to repay local debt in those countries
the directors consider that the carrying amounts of these assets approximate to their fair value
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19 trade and other payables
2010
£m
restated
2009
£m
current liabilities
trade payables 10076 10513 
amounts owed to associated undertakings and participations 70 56 
amounts owed to other related parties – 28 
social security and other taxes 546 422 
accruals and deferred income 5692 6682 
other payables 1828 1337 
18212 19038 
noncurrent liabilities
accruals and deferred income 91 99 
other payables 124 72 
215 171 
the average credit period taken for trade purchases is 55 days 2009 57 days
the directors consider that the carrying amounts of trade and other payables approximate to their fair value
20 borrowings
2010
£m
2009
£m
shortterm borrowings
unsecured bank loans and other borrowings 442 4018
unsecured bank overdrafts 228 432
670 4450
current portion of longterm borrowings 393 1741
1063 6191
longterm borrowings
bank loans and bonds – repayable within one year 393 1741
 – repayable between one and ﬁ ve years 6504 3054
 – repayable after ﬁ ve years 3060 155
9957 4950
less amount due for settlement within one year shown under current liabilities 393 1741
amount due for settlement after one year 9564 3209
borrowings by class
2010 2009
current
£m
noncurrent
£m
current
£m
noncurrent
£m
group committed credit facility including transaction costs – 1859 4986 2279
aircraftrelated bank loans 320 935 553 378
other bank borrowings 743 419 652 552
issued bonds including transaction costs – 6351 ––
1063 9564 6191 3209
in april 2010 the group issued a €400m bond with an annual coupon of 675 maturing in june 2015 and a £300m bond with an annual 
coupon of 775 maturing in june 2017 proceeds of these issues were used to repay debt drawn under the existing bank facilities
in may 2010 the group entered into a new committed bank facilities agreement with a number of banks totalling £1050m maturing in 
may 2013 the previous bank facilities were cancelled the new facilities comprise a £200 million term loan repayable in annual instalments 
of £50m commencing october 2011 and a revolving credit facility of £850 million as at september 2010 the £200m term loan was drawn 
down and £42m was drawn under the revolving credit facility
the directors consider that the fair value of the group’s borrowings with a carrying value of £10627m is £10816m 2009 carrying value 
£9400m fair value £9439m the fair values quoted were determined on the basis of the interest rates for the corresponding terms to maturity 
or repayment as at the year end for items maturing in less than one year the directors feel that the fair value is equal to the carrying amount
borrowing facilities
as at 30 september 2010 the group had undrawn committed debt facilities of £846m 2009 £374m whilst these facilities have certain 
ﬁ nancial covenants they are not expected to prevent full utilisation of the facilities if required the group has complied with its covenants 
throughout the year
th017accountsp73130indd 103 th017accountsp73130indd   103 21122010 2249 21122010   2249 104 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
 21 obligations under ﬁ nance leases
minimum lease payments
present value of 
minimum lease payments
2010
£m
2009
£m
2010
£m
2009
£m
amounts payable under ﬁ nance leases
within one year 194 2467 160 2378
between one and ﬁ ve years 545 371 470 330
after ﬁ ve years 254 237 175 147
993 3075 805 2855
less future ﬁ nance charges 188 220 – –
present value of lease obligations 805 2855 805 2855
less amount due for settlement within 12 months 
shown under current liabilities 160 2378
amount due for settlement after 12 months 645 477
the currency analysis of amounts payable under ﬁ nance leases is
2010
£m
2010
£m
euro 166 1934
us dollar 635 920
indian rupee 04 01
805 2855
finance leases principally relate to aircraft and aircraft spares
no arrangements have been entered into for contingent rental payments
the directors consider that the fair value of the group’s ﬁ nance lease obligations with a carrying value of £805m was £820m at 30 september 2010 
2009 carrying value £2855m fair value £2945m the fair values quoted were determined on the basis of the interest rates for the corresponding 
terms to repayment as at the year end
the group’s obligations under ﬁ nance leases are secured by the lessors’ rights over the leased assets
sublease rentals receivable
during the year two aircraft 2009 two held under ﬁ nance leases were sublet on operating leases for the whole or part of the year
22 financial instruments
carrying values of ﬁ nancial assets and liabilities
the carrying values of the group’s ﬁ nancial assets and liabilities as at 30 september 2010 and 30 september 2009 are as set out below
at 30 september 2010
held
for trading
£m
derivative 
instruments 
in designated 
hedging 
relationships
£m
loans  
receivables
£m
available
forsale 
£m
financial 
liabilities at 
amortised cost 
£m
noncurrent asset investments – – 139 48 –
trade and other receivables – – 5718 27 –
cash and cash equivalents – – 3396 – –
trade and other payables –––– 16340
borrowings – – – – 10627
obligations under ﬁ nance leases – – – – 805
derivative ﬁ nancial instruments 27 124 – – –
27 124 9253 75 4908
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statements
at 30 september 2009
held
for trading
£m
derivative 
instruments 
in designated 
hedging 
relationships
£m
loans  
receivables
£m
available
forsale
£m
financial 
liabilities at 
amortised cost
£m
noncurrent asset investments –  – 132 71  – 
trade and other receivables –  – 5901 41  – 
cash and cash equivalents –  – 5502  –  – 
trade and other payables –  –  –  – 17390
borrowings –  –  –  – 9400
obligations under ﬁ nance leases –  –  –  – 2855
derivative ﬁ nancial instruments 09 1301 –  –  – 
09 1301 11535 112 29645
derivative ﬁ nancial instruments
the fair values of derivative ﬁ nancial instruments as at 30 september 2010 were
interest 
rate swaps
£m
currency 
contracts
£m
fuel 
contracts
£m
total
£m
at 1 october 2008 52 1202 390 760 
movement in fair value during the year 159 1254 658 2071
at 1 october 2009 211 52 1048 1311
movement in fair value during the year 120 274 1368 1214 
at 30 september 2010 91 326 320 97
2010
£m
2009
£m
noncurrent assets 66 49 
current assets 852 1339 
current liabilities 807 2511
noncurrent liabilities 208 188
97 1311
fair value hierarchy
the fair value of the group’s ﬁ nancial instruments are disclosed in hierarchy levels depending on the valuation method applied the different 
methods are deﬁ ned as follows
level 1 valued using unadjusted quoted prices in active markets for identical ﬁ nancial instruments
level 2 valued using techniques based on information that can be obtained from observable market data
level 3 valued using techniques incorporating information other than observable market data as at least one input to the valuation cannot be  
based on observable market data
the fair value of the group’s ﬁ nancial assets and liabilities at 30 september 2010 are set out below
level 1
£m
level 2
£m
level 3 
£m
total
£m
financial assets
currency contracts – 524 – 524
fuel contracts – 394 – 394
securities – 27 – 27
financial liabilities
currency contracts – 850 – 850
fuel contracts – 74 – 74
interest rate swaps – 91 – 91
at 30 september 2010 – 70 – 70
th017accountsp73130indd 105 th017accountsp73130indd   105 21122010 2250 21122010   2250 106 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
22 financial instruments continued 
the group uses derivative instruments to hedge against signiﬁ cant future transactions and cash ﬂ ows denominated in foreign currencies 
the group enters into a variety of foreign currency forward contracts and options in the management of its exchange rate exposures
currency hedges are entered into between 12 to 24 months in advance of a tourist season and denominated in the underlying exposure currencies 
the group undertakes hedging transactions to mitigate the risk of unfavourable changes in the prices as at 30 september 2010 the group 
had in place hedging transactions for fuel out to april 2012
the group is also subject to risks arising from interest rate movements in connection with the ﬁ nancing of aircraft and other assets interest rate 
swaps and cross currency interest rate swaps are designated as cash ﬂ ow hedges of the interest rate and the euro us dollar and sterling currency 
risk on such borrowings the group also holds a collar which is designated as held for trading cross currency interest rate swaps are reported 
within interest rate derivatives the maturities of interest rate derivatives extend out to february 2017
the fair values of the group’s derivative ﬁ nancial instruments set out above have been determined by reference to prices available from the 
markets in which the instruments are traded
during the year a loss of £694m 2009 restated £426m gain was transferred from the hedging reserve to the income statement following 
recognition of the hedged transactions the amount included in each line item in the income statement is shown below in addition a 
gain of £73m was recognised in the income statement in respect of the forward points on foreign exchange cash ﬂ ow hedging contracts 
2009 £214m gain and a gain of £20m in respect of the movement in the time value of options in cash ﬂ ow hedging relationships 
2009 £81m loss
2010
£m
restated
2009
£m
cost of providing tourism services
                                                   – release from hedge reserve 694 426
– time value on options 20 81
finance income forward points on foreign exchange cash ﬂ ow hedging contracts 73 214
601 559
23 financial risk
the group is subject to risks related to changes in interest rates exchange rates fuel prices counterparty credit and liquidity within the 
framework of its business operations 
interest rate risk
the group is subject to risks arising from interest rate movements in connection with its bank debt aircraft ﬁ nancing and cash investments 
interest rate swaps and interest rate collars are used to manage these risks and are usually designated as cash ﬂ ow hedges of the interest rate
currency risk
the group has activities in a large number of countries and is therefore subject to the risk of exchange rate ﬂ uctuations currency risks arise in 
connection with the sourcing of services from destinations outside the source market in addition us dollar exposure arises on the procurement 
of fuel and operating supplies for aircraft as well as investments in aircraft
the group requires subsidiaries to identify and appropriately hedge all trading exposures in line with established policies
the group uses currency forwards currency swaps and plain vanilla currency options to manage currency risks and these are usually designated 
as cash ﬂ ow hedges of forecast future transactions
fuel price risk
exposure to fuel price risk arises due to ﬂ ying costs for the group’s aircraft commodity derivatives are entered into to manage the risk of adverse 
changes in the price of fuel the group’s policy is to hedge a minimum of 80 of the fuel requirement for the ﬂ ight schedule concerned with a 
maximum hedge tenor of 24 months prior to consumption hedging is implemented with a combination of ﬁ xed price contracts swaps and net 
purchased options and are usually designated as cash ﬂ ow hedges
the market risks that the group is subject to have been identiﬁ ed as interest rate risk exchange rate risk and fuel price risk the impact 
of reasonably possible changes in these risk variables on the group based on the period end holdings of ﬁ nancial instruments have been 
calculated and are set out in the tables below in each case it has been assumed that all other variables remain constant as at 30 september 
2010 the sensitivity of these risks to the deﬁ ned scenario changes are set out below
interest rate risk
2010 2009
impact on 
proﬁ t before tax
£m
impact on 
equity
£m
impact on 
proﬁ t before tax
£m
impact on 
equity
£m
1 2009 1 increase in interest rates 46 – 22 – 
025 2009 025 decrease in interest rates 11 – 05  – 
th017accountsp73130indd 106 th017accountsp73130indd   106 21122010 2250 21122010   2250 thomas cook group plc annual report  accounts 2010 107
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exchange rate risk
2010 2009
impact on
proﬁ t before tax
£m
impact on
equity
£m
impact on
proﬁ t before tax
£m
impact on
equity
£m
5 strengthening of euro 212 266 88 305 
5 weakening of euro 238 265 107 302
5 strengthening of us dollar 26 643 100 636 
5 weakening of us dollar 25 581 92 573
fuel price risk
2010
restated
     2009
impact on
proﬁ t before tax
£m
impact on
equity
£m
impact on
proﬁ t before tax
£m
impact on
equity
£m
20 increase in fuel price 27 1053 75 585 
20 decrease in fuel price 122 834 102 563
liquidity risk
the liquidity position of the group is signiﬁ cantly inﬂ uenced by the booking and payment pattern of customers as a result liquidity is at its 
lowest in the winter months and at its highest in the summer months the group manages the seasonal nature of its liquidity by making use 
of its bank revolving credit facility
shortterm liquidity is primarily invested in bank deposits
financial liabilities are analysed below based on the time between the period end and their contractual maturity the amounts shown are 
estimates of the undiscounted future cash ﬂ ows and will differ from both carrying value and fair value
at 30 september 2010
amount due
total
£m
in less than 
3 months
£m
between 
3 and 12 months
£m
between 
1 and 5 years
£m
in more than 
5 years
£m
trade and other payables 15055 1180 82 23 16340
borrowings 228 890 7970 4685 13773 
obligations under ﬁ nance leases 44 150 546 254 994 
derivative ﬁ nancial instruments
– payable 15890 22230 5680 01 43801
– receivable 15891 21854 5506 – 43251 
15326 2596 8772 4963 31657
at 30 september 2009
amount due
total
£m
in less than
3 months
£m
between 
3 and 12 months
£m
between 
1 and 5 years
£m
in more than 
5 years
£m
trade and other payables 16285 1007 77 22 17391 
borrowings 4239 2003 3241 180 9663
obligations under ﬁ nance leases 656 1811 371 237 3075
derivative ﬁ nancial instruments
– payable 10154 15520 696 – 26370
– receivable 9641 13976 623 – 24240
21693 6365 3762 439 32259
estimated undiscounted future cash ﬂ ows are disclosed above in respect of derivatives with a negative fair value at the year end these cash 
ﬂ ows include amounts in respect of fuel derivatives which are based on the year end fair values estimated cash ﬂ ows relating to fuel option 
derivatives have all been reported in the “amount due in less than three months” category trade and other payables include nonﬁ nancial 
liabilities of £2082m 2009 £1868m which have not been analysed above
counterparty credit risk
the group is exposed to credit risk in relation to deposits derivatives with a positive fair value and trade and other receivables the maximum 
exposure in respect of each of these items at the balance sheet date is their carrying value the group assesses its counterparty exposure in 
relation to the investment of surplus cash fuel contracts foreign exchange and interest rate hedging contracts and undrawn credit facilities 
the group uses published credit ratings credit default swap prices and share price performance in the previous 30day period to assess 
counterparty strength and therefore to deﬁ ne the credit limit for each counterparty 
the group’s approach to credit risk in respect of trade and other receivables is explained in note 17
th017accountsp73130indd 107 th017accountsp73130indd   107 21122010 2250 21122010   2250 108 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
24 insurance
management of insurance risk
incidental to its main business the group through its subsidiary white horse insurance ireland limited issues contracts that transfer signiﬁ cant 
insurance risk and that are classiﬁ ed as insurance contracts as a general guideline the group deﬁ nes as signiﬁ cant insurance risk the possibility 
of having to compensate the policyholder if a speciﬁ ed uncertain future event adversely affects the policyholder
business written includes standard commercial risks for the group and travel insurance for both group and nongroup customers
the principal nature of travel insurance risks is one of shortterm low value and high volume underwriting performance is monitored on 
an ongoing basis and pricing reviewed annually for each individual contract exposure is capped by speciﬁ c limits within the insurance policy 
and by using reinsurance contracts for any claims in excess of these retention limits commercial policies with the group are subject to policy 
excesses and single event and aggregate limits
insurance risk is spread across several european countries where the group operates including the uk ireland and continental europe
when estimating the cost of claims outstanding at the year end the principal assumption underlying the estimates is the group’s past 
development pattern this includes assumptions in respect of historic claims costs average claims handling expenses and market developments 
the group also uses an independent actuary to review its liabilities to ensure that the carrying values are adequate any changes to these 
variables are not expected to have a material effect on the group ﬁ nancial statements
the group operates a reinsurance policy approved by the white horse insurance ireland ltd board of directors which ensures that reinsurers 
have a ﬁ nancial stability rating of b a m best or above the group has assessed these credit ratings as being satisfactory in diminishing the 
group’s exposure to the credit risk of its insurance receivables
income and expenses arising directly from insurance contracts
2010
£m
2009
£m
revenue
net earned premium income 93 79 
deposit interest 01 05 
other income – 04 
94 88 
expenses
claims incurred 161 114
other operating expenses 10 23
171 137
assets and liabilities arising directly from insurance contracts
2010
£m
2009
£m
assets 
receivables arising out of direct insurance operations 48 23
prepayments 01 02
 49  25 
liabilities
deferred income arising from unearned premiums 22 22
claims accruals 89 68
insurance premium tax payable 17 04
other creditors 04 01
accruals and deferred income 09 08
141 103
reconciliation of movement in insurance liabilities
deferred 
income arising 
from unearned 
premiums
£m
claims
accruals
£m
at 1 october 2009 22 68
net earned premium income 93 –
premiums written 93 –
claims incurred – 161
claims paid – 140
at 30 september 2010 22 89
th017accountsp73130indd 108 th017accountsp73130indd   108 21122010 2250 21122010   2250 thomas cook group plc annual report  accounts 2010 109
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directors’ report 
corporate governance
financial 
statements
25 deferred tax
the following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and prior 
reporting periods
aircraft
ﬁ nance
leases
£m
retirement
beneﬁ t
obligations
£m
fair value
of ﬁ nancial
instruments
£m
other
temporary
differences
£m
tax losses
£m
total
£m
at 1 october 2008 restated 375 309 229 281 2127 2301 
chargecredit to income restated 123 03 94 74 28 168
credit to equity restated – 505 674 –  – 1179
acquisitions restated –  –  – 95 – 95
exchange differences restated 06 05 05 43 55 18
at 30 september 2009 restated 258 812 356 345 2154 3235 
chargecredit to income 286 145 09 24 418 02
creditcharge to equity – 164 383 – – 219
reclassiﬁ cations – 75 14 50 11 – 
exchange differences 11 54 77 79 23 68
at 30 september 2010 17 702 55 350 2560 2950
certain deferred tax assets and liabilities have been offset the following is the analysis of the deferred tax balances for ﬁ nancial reporting purposes
2010
£m
restated
2009
£m
deferred tax liabilities 882 1100
deferred tax assets 3832 4335
2950 3233
at the balance sheet date the group had unused tax losses of £1820m 2009 £1441m available for offset against future proﬁ ts deferred tax 
assets have only been recognised where there is sufﬁ cient probability that there will be future taxable proﬁ ts against which the assets may be 
recovered the increase in recognised tax losses in the year relates to nonrecurring exceptional costs the uk and german businesses generated 
taxable proﬁ ts before exceptional items which support the recognition of losses in these territories no deferred tax asset has been recognised in 
respect of tax losses of £8882m 2009 £6799m due to the unpredictability of future proﬁ t streams
other temporary differences on which deferred tax has been provided primarily relate to the difference in book to tax value on qualifying 
tax assets provisions for which tax relief was not originally available and fair value accounting on properties acquired as part of the merger
in addition the group had unused other temporary differences in respect of which no deferred tax asset has been recognised amounting 
to £1861m 2009 £590m also due to the unpredictability of future proﬁ t streams 
deferred tax liabilities were offset against the corresponding deferred tax assets where both items fell within the responsibility of the same 
tax authority
the deferred tax assets and liabilities at the year end without taking into consideration the offsetting balances within the same jurisdiction 
are £4589m and £1639m respectively 
the finance act 2009 introduced new rules in relation to the uk taxation of dividend income under the new rules no uk tax liability is 
expected to arise on the dividend income from undistributed proﬁ ts of subsidiaries the new rules were effective from 1 july 2009 as a 
result no deferred tax liability is expected on the undistributed proﬁ ts of subsidiaries at the balance sheet date 2009 nil
a number of changes to the uk corporation tax system were announced in the june 2010 budget statement the finance no 2 act 2010 
included legislation to reduce the main rate of corporation tax from 28 to 27 from 1 april 2011 and the effect of this change has been 
to reduce the deferred tax assets by £86m as at 30 september 2010
the proposed reduction of the main rate of corporation tax in the uk by 1 per year to 24 by 1 april 2014 are expected to be enacted separately 
each year the overall effect of the further changes from 27 to 24 if these applied to the deferred tax balance at 30 september 2010 would be 
to reduce the deferred tax asset by approximately £252m 
th017accountsp73130indd 109 th017accountsp73130indd   109 21122010 2250 21122010   2250 110 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
26 provisions
aircraft
maintenance
provisions
£m
restated
other
provisions
£m
restated
total
£m
at 1 october 2009 2091 2915 5006 
additional provisions in the year 577 769 1346 
unused amounts released in the year 161 149 310
reclassiﬁ cation to borrowings – 221 221
unwinding of discount – 125 125 
utilisation of provisions 480 1250 1730
exchange differences 21 64 43
at 30 september 2010 2048 2125 4173 
included in current liabilities 871 1174 2045 
included in noncurrent liabilities 1177 951 2128 
at 30 september 2010 2048 2125 4173 
included in current liabilities 661 1628 2289 
included in noncurrent liabilities 1430 1287 2717 
at 30 september 2009 2091 2915 5006 
the aircraft maintenance provisions relate to maintenance on leased aircraft and spares used by the group’s airlines in respect of leases which 
include contractual return conditions this expenditure arises at different times over the life of the aircraft with major overhauls typically 
occurring between two and ten years see accounting policies for more details
other provisions relate to provisions for offmarket leases onerous contracts deferred and contingent consideration and future obligations 
including those arising as a result of reorganisation and restructuring plans that are irrevocably committed including severance payments 
and provisions for social security compensation plans
provisions included in noncurrent liabilities are principally offmarket lease provisions that are expected to be utilised over the term of 
those contracts which extend up to ten years from the balance sheet date and deferred and contingent consideration arising on acquisitions
during the year £221m of deferred and contingent consideration on the gold medal acquisition was converted to a loan note and has 
accordingly been reclassiﬁ ed to borrowings
the unused amounts released in the year of £310m includes £117m of maintenance reserves in northern europe following the acquisition 
of two aircraft which were previously accounted for as operating leases this release has been treated as an exceptional item in the 
income statement
27 noncurrent assets classiﬁ ed as held for sale
in the prior year the group gained legal title to a hotel property in mexico as settlement of an outstanding loan for cad 166m the carrying 
amount at 30 september 2010 is £105m 2009 £91m this property is being actively marketed for sale and is expected to be disposed of 
within the next ﬁ nancial year and has therefore been classiﬁ ed as held for sale
th017accountsp73130indd 110 th017accountsp73130indd   110 21122010 2250 21122010   2250 thomas cook group plc annual report  accounts 2010 111
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financial 
statements
28 calledup share capital
2010
£m
2009
£m
allotted calledup and fully paid
858292947 ordinary shares of €010 each 2009 858292947 577 577
allotted calledup and partly paid
50000 deferred shares of £1 each 25p paid 2009 50000 – –
contingent rights to the allotment of shares
as at 30 september 2010 options to subscribe for ordinary shares were outstanding with respect to the thomas cook group plc 2007 
performance share plan the thomas cook group plc 2008 coinvestment plan and the thomas cook group plc 2008 save as you earn scheme 
for further details refer to note 34 on exercise the awards of shares under the plan will be satisﬁ ed by either purchases in the market of 
existing shares or subject to institutional guidelines issuing new shares
own shares held in trust
shares of the company are held under trust by ees trustees international limited in respect of the thomas cook group plc 2007 performance 
share plan and the thomas cook group plc 2008 coinvestment plan and are held by equiniti share plan trustees limited in connection with 
the thomas cook group plc buy as you earn scheme in accordance with ifrs these are treated as treasury shares and are included in “other 
reserves” in the balance sheet 
the number of shares held at 30 september 2010 by ees trustees international limited and equiniti share plan trustees limited was 4282801 
2009 5090822 and 69602 2009 37963 respectively the cumulative cost of acquisition of these shares was £133m 2009 £131m and the 
market value at 30 september 2010 was £75m 2009 £119m shares held by the trust have been excluded from the weighted average number 
of shares used in the calculation of earnings per share
share buy back
in the prior year the group purchased 12934387 shares for cancellation no shares were acquired in the year ended 30 september 2010
capital management
the group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to provide returns 
for shareholders and beneﬁ ts for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital
in order to maintain or adjust the capital structure the group may adjust the amount of dividends paid to shareholders return capital to 
shareholders sell assets to reduce debt or issue new shares
the capital structure of the group consists of debt cash and cash equivalents as shown in note 31 and equity attributable to equity holders of 
the parent as shown in the group balance sheet at the balance sheet date the group had total capital of £25222m 2009 restated £23760m
29 hedging and translation reserves
restated
hedging
reserve
£m
available
for sale
investments
£m
restated
translation
reserve
£m
restated
total
£m
at 1 october 2008 536 11 1623 2148 
foreign exchange translation gains –  – 862 862 
transfer of translation losses to proﬁ t or loss on disposal – – 45 45
fair value losses deferred for the year 1875 11 – 1886
fair value gains transferred to the income statement 426 – – 426
tax on fair value gains and losses and transfers 674  –  – 674 
at 30 september 2009 restated 1091 22 2530 1417 
foreign exchange translation gains – – 641 641 
fair value gains deferred for the year 621 05 – 626 
fair value losses transferred to the income statement 694 – – 694
tax on fair value gains and losses and transfers 388 05 – 383
at 30 september 2010 164 12 3171 2995
th017accountsp73130indd 111 th017accountsp73130indd   111 21122010 2250 21122010   2250 112 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
30 note to the cash ﬂ ow statement
2010
£m
restated
2009
£m
proﬁ t before tax 417 451 
adjustments for
finance income 521 726
finance costs 1791 1796 
net investment lossincome 15 14
loss on disposal of associate – 22 
share of results of associates and joint venture 32 38 
depreciation of property plant and equipment 1254 1452 
amortisation of intangible assets 274 224 
amortisation of business combination intangibles 309 344 
impairment of assets 148 180 
loss on disposal of assets 18 39 
sharebased payments 81 83 
other noncash items 388 115
decrease in provisions 501 176
income received from other noncurrent investments 03 14 
additional pension contributions 160 174
interest received 60 155 
operating cash ﬂ ows before movements in working capital 3544 3593 
increase in inventories 94 11
increasedecrease in receivables 856 1095 
increasedecrease in payables 647 2630
cash generated by operations 3241 2047 
income taxes paid 247 266
net cash from operating activities 2994 1781 
cash and cash equivalents which are presented as a single class of assets on the face of the balance sheet comprise cash at bank and other 
shortterm highly liquid investments with a maturity of three months or less
31 net debt
at 1 october
2009
£m
cash ﬂ ow
£m
other noncash
 changes
£m
exchange 
movements
£m
at 30 september 
2010
£m
liquidity
cash and cash equivalents 5502 1944 – 162 3396 
5502 1944 – 162 3396 
current debt
bank overdrafts 432 185  – 19 228
shortterm borrowings 4018 7407 3925 94 442
loan note –  – 185 – 185
current portion of longterm borrowing 1741 – 1533  – 208 
obligations under ﬁ nance leases 2378 2294 137 61 160
8569 9886 2714 174 1223
noncurrent debt
longterm borrowings 3209 8787 2363 105 9528
loan note –  – 36 – 36
obligations under ﬁ nance leases 477 320 137 15 645
3686 9107 2464 120 10209
total debt 12255 779 250 294 11432
net debt 6753 1165 250 132 8036
th017accountsp73130indd 112 th017accountsp73130indd   112 21122010 2250 21122010   2250 thomas cook group plc annual report  accounts 2010 113
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financial 
statements
32 operating lease arrangements
the group as lessee 
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable operating 
leases which fall due as follows
the group as lessee
property 
and other 
2010
£m
aircraft and 
aircraft spares
2010
£m
total
2010
£m
restated
property 
and other
2009 
£m
aircraft and 
aircraft spares
2009
£m
total
2009
£m
within one year 1129 1094 2223 1225 1284 2509 
later than one and less than ﬁ ve years 2963 1778 4741 3111 2672 5783 
after ﬁ ve years 1109 – 1109 1598 107 1705
5201 2872 8073 5934 4063 9997
operating lease payments principally relate to rentals payable for the group’s retail shop and hotel properties and for aircraft and spares used by 
the group’s airlines shop leases are typically negotiated for an average term of 5 years and aircraft leases for an average term of 10 years 
the group as lessor
at the balance sheet date the group had contracted with tenants for future minimum lease payments under noncancellable operating leases 
which fall due as follows
the group as lessor
property
2010
£m
aircraft
2010
£m
total 
2010
£m
property
2009
£m
aircraft
2009
£m
total
2009
£m
within one year 25  – 25 18 17 35 
later than one and less than ﬁ ve years 69  – 69 64  – 64 
after ﬁ ve years 32  – 32 24  – 24 
126  – 126 106 17 123 
rental income earned during the year was 32 54 86 22 54 76 
certain of the group’s retail and other properties and aircraft that are not being used in the group’s businesses are sublet on the best terms 
available in the market for varying periods with an average future committed period of 59 years for property 2009 77 years and nil months 
for aircraft 2009 7 months
at 30 september 2010 no aircraft 2009 one were sublet by the group on ﬁ nance leases
33 contingent liabilities
2010
£m
2009
£m
contingent liabilities 1188 1361
contingent liabilities primarily comprise guarantees letters of credit and other contingent liabilities including contingent liabilities related 
to structured aircraft leases all of which arise in the ordinary course of business the amounts disclosed above represents the group’s 
contractual exposure
the group complies with all the standards relevant to consumer protection and formal requirements in respect of package tour contracts and 
has all the necessary licences for the various sales markets the customers’ right to reimbursement of the return travel costs and amounts paid 
in case of insolvency or bankruptcy on the part of the tour operator or travel agency is guaranteed in all thomas cook sales markets in line 
with local legislation and within the various guarantee systems applied in the united kingdom there is a fund mechanism whereby travel 
companies are required to collect and remit a small charge for each protected customer upon booking customer rights in relation to thomas 
cook group in germany belgium and austria are guaranteed via an insolvency insurance system in ireland scandinavia and france via 
guarantees provided by banks and insurance companies and in the netherlands via a guaranteed fund in north america customer payments 
are held in escrow accounts until the obligations of the tour operator or travel agent have been completed
th017accountsp73130indd 113 th017accountsp73130indd   113 21122010 2250 21122010   2250 114 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
34 sharebased payments
the company operates ﬁ ve equitysettled sharebased payment schemes as outlined below the total expense recognised during the year 
in respect of equitysettled sharebased payment transactions was £81m 2009 £83m
the thomas cook group plc 2007 performance share plan psp and the hm revenue  customs approved company share option
subplan csosp
executive directors and senior executives of the company and its subsidiaries are granted nilcost options to acquire or contingent share
awards over the ordinary shares of the company each award will vest three years after the date of award to the extent the performance 
targets have been met the performance targets for each award are based on adjusted earnings per share eps and total shareholder return 
tsr subject to the performance targets being met and the participant still being employed by the group the options are exercisable up 
to ten years after the date of grant
the thomas cook group plc 2008 coinvestment plan coip
executive directors and key executives purchase the company’s shares out of their net bonus lodged shares participants may at the end of 
the threeyear performance period receive 35 matching shares awarded as nilcost options or contingent share awards for each lodged share 
purchased subject to the achievement of the performance targets the performance targets for awards made in 2008 and 2009 are based on 
adjusted eps and return on invested capital roic the performance targets for the 2010 awards are based on adjusted eps tsr and roic 
subject to the performance targets being met and the participant still being employed by the group the options are exercisable up to ten 
years after the date of grant
the thomas cook group plc 2008 save as you earn scheme saye
eligible employees across the group were offered options to purchase shares in the company by entering into a three or fouryear savings 
contract the option exercise price was set at a 10 2010 grant or 20 2008 grant discount to the market price at the offer date options 
are exercisable during the six months after the end of the savings contract
the thomas cook group plc 2008 hm revenue  customs approved buy as you earn scheme baye
eligible uk taxpaying employees are offered the opportunity to purchase shares partnership shares in the company by deduction from their 
monthly gross pay for every ten partnership shares an employee purchases the company purchases one matching share on their behalf both 
partnership and matching shares are held by equiniti share plan trustees limited ‘as at 30 september 2010 69604 2009 37963 matching 
shares were held by the trustee
the movements in options and awards during the year and prior year were
2010
psp coip saye csosp
outstanding at beginning of year 15025776 4630851 3155112 879018 
granted 7017596 4934780 4544329 12847
exercised 846063 – 705 –
cancelled – 857500 344819 –
forfeited 2510582 108002 59365 95742
outstanding at end of year 18686727 8600129 7294552 796123
exercisable at end of year 587085  –  –  – 
exercise price £ nil nil 181215 188234
average remaining contractual life years 85 89 25 83
the weighted average share price at the date of exercise for the options exercised during the year ended 30 september 2010 was £243
2009
psp coip saye csosp
outstanding at beginning of year 6574186 985046 3327150  – 
granted 9810081 3944088 100562 926889 
exercised –  – 27 – 
cancelled –  – 218224 – 
forfeited 1358491 298283 54349 47871
outstanding at end of year 15025776 4630851 3155112 879018 
exercisable at end of year –  –  –  – 
exercise price £ nil nil 188215 188220
average remaining contractual life years 89 93 23 93
the weighted average share price at the date of exercise for the options exercised during the year ended 30 september 2009 was £231
th017accountsp73130indd 114 th017accountsp73130indd   114 21122010 2250 21122010   2250 thomas cook group plc annual report  accounts 2010 115
directors’ report 
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directors’ report 
corporate governance
financial 
statements
the fair value of options and awards subject to adjusted eps and roic performance targets was determined by the use of blackscholes models 
and the fair value of options subject to tsr performance targets was determined by the use of monte carlo simulations for options and awards 
granted during the year the key inputs to the models were
2010
psp coip saye csosp
weighted average share price at measurement date £233 £225 £201 £234
weighted average exercise price nil nil £181 £234
expected volatility 50 50 50 50
expected volatility of comparator group 26121 26121 na 26121
expected correlation with comparator group 32 32 na 32
weighted average option life years 3 3 33 3
weighted average riskfree rate 20 19 16 20
expected dividend yield 6 6 6 6
weighted average fair value at date of grant £162 £157 £046 £055
2009
psp coip saye csosp
weighted average share price at measurement date £195 £196 £212 £191
weighted average exercise price nil nil £188 £191
expected volatility 44 44 44 44
expected volatility of comparator group 24–83 na na 2484
expected correlation with comparator group 34 na na 34 
weighted average option life years 3 3 43 3
weighted average riskfree rate 20 20 41 20
expected dividend yield 7 7 7 7
weighted average fair value at date of grant £131 £160 £054 £037
expected volatility has been based on the historic volatility of the company’s shares and the shares of other companies in the same or 
related sectors
35 retirement beneﬁ t schemes
pension schemes for the employees of the thomas cook group consist of deﬁ ned contribution plans and deﬁ ned beneﬁ t plans with the deﬁ ned 
beneﬁ t plans being both funded and unfunded the obligations arising from deﬁ ned contribution plans are satisﬁ ed by contribution payments 
to both private and staterun insurance providers
unfunded deﬁ ned beneﬁ t pension obligations
unfunded deﬁ ned beneﬁ t pension obligations primarily relate to the group’s employees in the german businesses of thomas cook ag and the 
condor group provisions are established on the basis of commitments made to those employees for oldage and transitional pensions based 
on the legal tax and economic circumstances of the individual countries and on the period of employment and level of remuneration of the 
respective employees
provisions for pensions and similar obligations totalling £2056m 2009 £1790m were attributable to the pension commitments of the condor 
group condor flugdienst gmbh and condor berlin gmbh for employees who joined a condor group company prior to 1995 the total pension 
commitment of the pensions authority of the german federal government and regional states was adjusted and maintained in the form of a 
company pension scheme 
the ﬂ ight crews were additionally entitled to a transitional provision for the period between the termination of their inﬂ ight employment and 
the time they became eligible for a staterun or company pension in both cases the beneﬁ t commitment depended on the ﬁ nal salaries of the 
employees concerned prior to the termination of their inﬂ ight employment ﬁ nal salary plan employees who joined a condor group company 
from 1995 onwards participate in a company pension scheme under which the pension entitlements are based on the average salaries of those 
employees average salary plan the condor group also has retirement obligations arising from individual commitments and transitional 
provisions in accordance with ias 19 all these commitments are classiﬁ ed as unfunded deﬁ ned beneﬁ t obligations and classiﬁ ed as such 
in these ﬁ nancial statements
the condor group deﬁ ned beneﬁ t plans have been closed to new entrants with the exception of pilots since 2004
there are additional unfunded deﬁ ned beneﬁ t obligations comprising individual commitments to executive staff at thomas cook group 
and obligations in respect of past service for employees in sweden
the unfunded pension schemes are accounted for as part of liabilities for retirement beneﬁ t obligations in the balance sheet
th017accountsp73130indd 115 th017accountsp73130indd   115 21122010 2250 21122010   2250 116 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
35 retirement beneﬁ t schemes continued
the following weighted average actuarial assumptions were made for the purpose of determining the unfunded deﬁ ned beneﬁ t obligations
2010

2009

discount rate for scheme liabilities 470 568
expected rate of salary increases 193 193
future pension increases 169 166
the mortality tables 2005 g drawn up by prof dr klaus heubeck were used as the basis for the mortality assumptions used in arriving at the 
present value of the pension obligations at 30 september 2010 these assume a life expectancy for members currently aged 60 of 229 years 
for men and 274 years for women
amounts recognised in the income statement in respect of these deﬁ ned beneﬁ t schemes are as follows
2010
£m
2009
£m
current service cost 81 71 
curtailment gain 20 09
interest cost on scheme liabilities 114 112 
total included in income statement 175 174 
service costs and curtailment gains have been included in personnel expenses in the income statement and the unwinding of the discount 
rate of the expected retirement beneﬁ t obligations has been included in ﬁ nance costs actuarial gains and losses have been reported in the 
statement of comprehensive incomeexpense
changes in the present value of unfunded pension obligations were as follows
2010
£m
2009
£m
at beginning of year 2089 1638
current service cost 81 71
interest cost 114 112
beneﬁ ts paid 62 51
settlements 72 52
curtailments 20 09
actuarial losses 365 130
transfers – 03
exchange difference 104 247
at end of year 2391 2089
funded deﬁ ned beneﬁ t pension obligations
the pension entitlements of employees of thomas cook uk and employees in norway are provided through funded deﬁ ned beneﬁ t schemes 
where pension contributions are paid over to the schemes and the assets of the schemes are held separately from those of the group in funds 
under the control of trustees pension costs are assessed in accordance with the advice of qualiﬁ ed actuaries in each country the fair value 
of the pension assets in each scheme at the year end is compared with the present value of the retirement beneﬁ t obligations and the net 
difference reported as a pension asset or retirement beneﬁ t obligation as appropriate pension assets are only recognised to the extent that 
they will result in reimbursements being made or future payments being reduced
funded deﬁ ned beneﬁ t pension obligations have been determined on the basis of assumptions relevant to each country the weighted averages 
of these were
2010

2009

discount rate for scheme liabilities 497 549
inﬂ ation rate 320 348
expected return on scheme assets 607 653
expected rate of salary increases 468 472
future pension increases 320 348
the thomas cook uk pension plan accounts for approximately 97 2009 98 of the total funded deﬁ ned beneﬁ t obligations the mortality 
assumptions used in arriving at the present value of those obligations at 30 september 2010 are based on pxa92 year of birth tables with 
medium cohort improvements and a minimum future longevity improvement per year of 1 adjusted for recent mortality experience the 
mortality assumptions adopted for the plan liabilities indicate a further life expectancy for members currently aged 60 of 275 years for men 
and 288 years for women 
the thomas cook uk pension plan has been closed to new entrants since april 2003 employees who have joined since that date participate in 
a new deﬁ ned contribution scheme
th017accountsp73130indd 116 th017accountsp73130indd   116 21122010 2251 21122010   2251 thomas cook group plc annual report  accounts 2010 117
directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
amounts recognised in the income statement in respect of these deﬁ ned beneﬁ t schemes are as follows
2010
£m
2009
£m
current service cost 162 141 
gain on settlements – 04
curtailment gain – 20
expected return on scheme assets 379 384
interest cost on scheme liabilities 434 389 
total included in the income statement 217 122 
service costs gains on settlement and curtailment gains have been included in personnel expenses in the income statement and the unwinding 
of the discount rate of the expected retirement beneﬁ t obligations has been included in ﬁ nance costs the expected return on scheme assets has 
been included in ﬁ nance income
the actual return on scheme assets was £662m 2009 £248m
actuarial gains and losses have been reported in the statement of comprehensive income
changes in the present value of funded deﬁ ned beneﬁ t obligations were as follows
2010
£m
2009
£m
at beginning of year 7841 6074 
current service cost 162 141 
settlements – 59
interest cost 434 389 
beneﬁ ts paid 187 178
transfers 24  – 
curtailments – 20
expenses paid 15 20
contributions paid by plan participants 34 38 
actuarial losses 499 1435 
exchange difference 04 41 
at end of year 8788 7841 
changes in the fair value of scheme assets were as follows
2010
£m
2009
£m
at beginning of year 6219 5817 
expected return on scheme assets 379 384 
contributions from the sponsoring companies 313 334 
contributions paid by plan participants 34 38 
actuarial gainslosses 282 136
beneﬁ ts paid 187 178
transfers 14  – 
settlements – 55
expenses paid 15 20
exchange difference 05 35 
at end of year 7034 6219 
following the 2008 actuarial valuation of the thomas cook uk pension plan a 6 year recovery plan was agreed with the pension trustees to 
fund the actuarial deﬁ cit in line with that agreement thomas cook uk made payments totalling £160m during the year ended 30 september 
2010 2009 £174m and will make quarterly payments during the 3 years thereafter totalling £685m with the last payment from the company 
being made in june 2014 the group is expected to make aggregate contributions to its funded deﬁ ned beneﬁ t schemes of £402m during the 
year commencing 1 october 2010
th017accountsp73130indd 117 th017accountsp73130indd   117 21122010 2251 21122010   2251 118 thomas cook group plc annual report  accounts 2010
financial statements
notes to the ﬁ nancial statements continued
35 retirement beneﬁ t schemes continued
the fair value of scheme assets at the balance sheet date is analysed as follows
2010
longterm
rate of return

2010 
£m
2009
longterm
rate of return

2009
£m
equities 75 2876 76 2779
property 59 651 61 625
fixed interest gilts 42 2021 43 1824
hedge funds 75 934 76 495
other 67 552 73 496
at end of year 7034 6219
the scheme assets do not include any of the group’s own ﬁ nancial instruments nor any property occupied by or other assets used by the group
the expected rates of return on scheme assets have been calculated as the weighted average rate of return on each asset class the return on 
each asset class is taken as the market rate of return
the amount included in the balance sheet arising from the group’s obligations in respect of its deﬁ ned beneﬁ t pension schemes is as follows
2010
£m
2009
£m
present value of funded deﬁ ned beneﬁ t obligations 8788 7841 
fair value of scheme assets 7034 6219 
deﬁ cit on funded retirement beneﬁ t obligations 1754 1622 
present value of unfunded deﬁ ned beneﬁ t obligations 2391 2089 
scheme deﬁ cits recognised in the balance sheet 4145 3711 
this amount is presented as follows
current liabilities 67 48
noncurrent liabilities 4078 3663
4145 3711
the cumulative net actuarial losses recognised in the statement of comprehensive income at 30 september 2010 were £3639m 2009 £3057m
the history of the experience gains and losses of the schemes is as follows
2010
£m
2009
£m
2008
£m
2007
£m
2006
£m
present value of deﬁ ned beneﬁ t obligations 11179 9930 7712 8104 7910 
fair value of scheme assets 7034 6219 5817 6352 5130
scheme deﬁ cits 4145 3711 1895 1752 2780 
experience adjustments on scheme liabilities 101 77 27 20 340
experience adjustments on scheme assets 276 137 1166 112 218 
deﬁ ned contribution schemes
there are a number of deﬁ ned contribution schemes in the group the principal scheme being the thomas cook uk dc pension scheme 
which is open to all uk employees the total charge for the year in respect of this and other deﬁ ned contribution schemes including liabilities 
in respect of insured beneﬁ ts relating to workers’ compensation arrangements amounted to £203m 2009 £201m
the assets of these schemes are held separately from those of the group in funds under the control of trustees
36 related party transactions 
transactions between the company and its subsidiaries which are related parties have been eliminated on consolidation and are not disclosed 
in this note transactions between the group and its associates and joint venture undertakings are disclosed below transactions between the 
company and its subsidiaries and associates are disclosed in the company’s separate ﬁ nancial statements
following the full disposal of its 528 shareholding in thomas cook group plc in the prior year the group no longer regards arcandor to be a 
related party there are no material transactions or balances with arcandor for the year ended 30 september 2010
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statements
trading transactions
during the year group companies entered into the following transactions with related parties who are not members of the group
associates joint venture 
and participations
2010
£m
2009
£m
sale of goods and services 316 128 
purchases of goods and services 350 354
interest receivable – 02 
other income 06 77 
management fees and other expenses 13 13
amounts owed by related parties 181 207 
provisions against amounts owed 42 44
amounts owed to related parties 70 56
  participations are equity investments where the group has a signiﬁ cant equity participation but which are not considered to be associates or joint ventures
 amounts owed by related parties include £111m 2009 £99m which for statutory purposes is reported as part of the associate investment
all transactions are considered to have been made at market prices outstanding amounts will normally be settled by cash payment
remuneration of key management personnel
the remuneration of the directors who are the key management personnel of the group is set out below in aggregate for each of the categories 
speciﬁ ed in ias 24 related party disclosures further information about the remuneration of individual directors is provided in the audited part 
of the remuneration report on pages 66 to 69
2010
£m
2009
£m
shortterm employee beneﬁ ts 50 56 
postemployment beneﬁ ts – 02 
sharebased payments 02 22 
 52 80 
37 subsequent events
öger tours
on 1 october 2010 the acquisition of öger tours gmbh was concluded after receiving antitrust clearance from the european commission öger tours 
specialises in the sale of package holidays to turkey from germany and was acquired for approximately €20m consisting of cash consideration and 
liabilities assumed as the acquisition was concluded recently it is not practical to provide a breakdown of net assets to be acquired
the cooperative travel
on 8 october 2010 the group announced that it will merge its uk high street travel agency and foreign exchange business with that of the 
cooperative group on 29 october 2010 the group signed an agreement under which midlands cooperative society will also contribute its 
travel agency business the group will hold 665 of the new company the cooperative group will hold 30 and midlands cooperative 
society will hold 35 both transactions are subject to antitrust clearance and certain other conditions given that the transactions have not 
yet completed it is not practical to provide a breakdown of the net assets to be acquired
joint venture in russia
on 25 november 2010 thomas cook announced that it had reached agreement to form a joint venture with vao intourist one of russia’s most 
renowned travel companies thomas cook will initially acquire a 501 stake in the new joint venture company for a maximum consideration 
of us45m subject to an adjustment for net debt and working capital the initial consideration will be satisﬁ ed by a cash payment of us10m 
and by the issue of us35m of thomas cook shares the joint venture will include intourist’s outbound domestic and inbound tour operating 
operations as well as its travel retail network the joint venture provides thomas cook with an entry into the fastgrowing russian market which 
has strong demand for beach and family holidays particularly to turkey and egypt the joint venture is conditional upon antitrust clearance in 
russia and certain other conditions and is expected to complete in or before february 2011 given the timing of the completion of this deal it 
is not practical to provide a breakdown of the net assets to be acquired
aircraft ﬂ eet replacement
thomas cook group operates a ﬂ eet of 93 aircraft with an average age of 12 years the group has identiﬁ ed signiﬁ cant operational savings 
particularly from maintenance and improved fuel efﬁ ciency that can be achieved by renewing and harmonising its 71 narrow body aircraft 
into a common ﬂ eet following a comprehensive review the group has selected the airbus 320 family of aircraft accordingly the group will 
begin a ﬁ ve year narrow body aircraft replacement programme starting in december 2012 and phased in line with the planned retirement of 
the existing ﬂ eet the replacement programme will deliver optimum ﬂ exibility by sourcing new narrow body aircraft through a combination 
of ﬁ rm and ﬂ exible orders direct with the manufacturer and through accessing the aircraft leasing market a review of the wide body ﬂ eet 
replacement requirements will be undertaken during the 201011 ﬁ nancial year
as part of the replacement programme the group has reached a memorandum of understanding with airbus for 12 new airbus 321 aircraft 
scheduled to be delivered in 2014 with a list price of 96 million each together with options to purchase further aircraft from 2015 these 
aircraft are subject to substantial price concessions from the list price the group will remain a heavy user of operating leases and it is 
anticipated that directly purchased aircraft will be ﬁ nanced through sale and leaseback agreements with thirdparty lessors
th017accountsp73130indd 119 th017accountsp73130indd   119 21122010 2251 21122010   2251 120 thomas cook group plc annual report  accounts 2010
financial statements
company balance sheet
at 30 september 2010
notes
30 september
2010
£m
30 september
2009
£m
noncurrent assets
property plant and equipment 5 14 10
investments in subsidiaries 6 40733 42935
deferred tax assets 11 16 11
trade and other receivables 7 46 –
40809 42956
current assets
trade and other receivables 7 8594 5755
8594 5755
total assets 49403 48711
current liabilities
trade and other payables 8 1101 2843
noncurrent liabilities
borrowings 9 6351 –
total liabilities 7452 2843
net assets 41951 45868
equity
calledup share capital 12 577 577 
share premium account 89 89 
merger reserve 30513 30513 
capital redemption reserve 85 85 
translation reserve 8828 11263 
retained earnings surplus 1992 3472
investment in own shares 133 131
total equity 41951 45868
these ﬁ nancial statements were approved by the board of directors on 30 november 2010
signed on behalf of the board
paul hollingworth
group chief financial ofﬁ cer
notes 1 to 17 form part of these ﬁ nancial statements
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statements
company cash ﬂ ow statement
for the year ended 30 september 2010
year ended 
30 september 
2010
£m
year ended 
30 september 
2009
£m
cash ﬂ ows from operating activities
lossproﬁ t before tax 642 4089
dividend received – 4355
finance income 07 18
finance expense 249 61
depreciation of property plant and equipment 01 01
sharebased payments 27 29
decrease in receivables 590 89
decreaseincrease in payables 212 98
net cash fromused in operating activities 06 06
investing activities
dividends received – 471 
purchase of intangible assets 06 11
net cash used infrom investing activities 06 460 
financing activities
issue of bonds 6384 –
funding advanced to subsidiaries 6384 –
purchase of own shares – 471
net cash used in ﬁ nancing activities – 471
net decrease in cash and cash equivalents – 17 
cash and cash equivalents at beginning of year – 17 
effect of foreign exchange rate changes – – 
cash and cash equivalents at end of year – – 
liquid assets – – 
cash and cash equivalents at end of year – – 
th017accountsp73130indd 121 th017accountsp73130indd   121 21122010 2251 21122010   2251 122 thomas cook group plc annual report  accounts 2010
financial statements
company statement of changes in equity
for the year ended 30 september 2010
share
capital
£m
share
premium
£m
merger
reserve
£m
capital 
redemption
reserve
£m
translation
reserve
£m
retained
earnings
£m
own
shares
£m
total
£m
at 1 october 2008 598  89  30513 64 5648  424 130 37206
proﬁ t for the year – –  –  – –  4103  – 4103
other comprehensive income – – – – 5615 – – 5615
total comprehensive income for the year 5615 4103 – 9718
equity credit in respect of sharebased 
payments –  –  –  –  –  83  – 83
share buyback 21 –  –  21  –  264 – 264
purchase of own shares –  –  –  – –  –  01 01
dividends paid –  –  –  –  –  874 – 874
at 30 september 2009 577 89  30513 85 11263  3472 131 45868
loss for the year ––––– 637 – 637
other comprehensive expense – – – – 2435 07 – 2442
total comprehensive expense for the year – – – – 2435 644 – 3079
equity credit in respect of sharebased 
payments ––––– 81 – 81
purchase of own shares –––––– 02 02
dividends paid ––––– 917 – 917
at 30 september 2010 577 89 30513 85 8828 1992 133 41951
the merger reserve arose on the issue of shares of the company in connection with the acquisition of the entire share capital of 
thomas cook ag and mytravel group plc on 19 june 2007
the share premium arose in connection with the issue of ordinary shares of the company following the exercise of mytravel executive 
share options
at 30 september 2010 the company had distributable reserves of £1992m 2009 £3472m
details of the own shares held are set out in note 28 to the group ﬁ nancial statements
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statements
1 accounting policies
the accounting policies applied in the preparation of these company ﬁ nancial statements are the same as those set out in note 2 to the 
group ﬁ nancial statements with the addition of the following
investments
investments in subsidiaries are stated at cost less provision for impairment
these policies have been applied consistently to the periods presented
the functional currency of the company is euro however the directors have decided to adopt sterling as the presentational currency to 
be in line with the consolidated accounts
2 loss for the year
as permitted by section 4083 of the companies act 2006 the company has elected not to present its own income statement for the year       
the loss after tax of the company amounted to £637m 2009 £4103m proﬁ t after tax
the auditors’ remuneration for audit services to the company was £02m 2009 £02m
3 personnel expenses
2010
£m
2009
£m
wages and salaries 215 201 
social security costs 25 20 
sharebased payments – equity settled 27 29 
267 250 
2010
number
2009
number
average number of employees of the company during the year 95 98
employees are based in the united kingdom and germany
disclosures of individual directors’ remuneration share options longterm incentive schemes pension contributions and pension entitlements 
required by the companies act 2006 and speciﬁ ed for audit by the financial services authority are on pages 66 to 69 within the remuneration 
report and form part of these audited accounts
the employees of the company are members of the group pension schemes as detailed in note 35 of the group ﬁ nancial statements
4 dividends
the details of the company’s dividend are disclosed in note 10 to the group ﬁ nancial statements
5 property  plant and equipment
other ﬁ xed assets £m
cost
at 1 october 2008 –
additions 11
at 30 september 2009 11
additions 06
exchange differences 01
at 30 september 2010 16
accumulated depreciation and impairment
at 1 october 2008 –
charge for the year 01
at 30 september 2009 01
charge for the year 01
at 30 september 2010 02
carrying amount at 30 september 2010 14
carrying amount at 30 september 2009 10
notes to the company ﬁ nancial statements
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financial statements
notes to the company ﬁ nancial statements continued
6 investments in subsidiaries
£m
cost and net book value
at 1 october 2008 37308
additions 51
exchange difference 5576
at 30 september 2009 42935
additions 89
exchange difference 2291
at 30 september 2010 40733
a list of the company’s principal subsidiary undertakings is shown in note 17 to the ﬁ nancial statements
the additions in the current year relate to sharebased payment charges related to subsidiaries’ employees
7 trade and other receivables
current
2010
£m
2009
£m
amounts owed by subsidiary undertakings 8581 5738
other receivables 09 14
deposits and prepayments 04 03
8594 5755
noncurrent 
deposits and prepayments 46 –
46 –
amounts owed by subsidiary undertakings are repayable on demand the average interest on overdue amounts owed by subsidiary 
undertakings is 06 200918 the directors consider the fair value to be equal to the book value 
refer to note 9 for an explanation of the year on year movement in amounts owed by subsidiary undertakings
8 trade and other payables
2010
£m
2009
£m
amounts owed to subsidiary undertakings 409 2684
social security and other taxes 47 19
other payables 524 –
accruals 121 140
1101 2843
the average interest on overdue amounts owed to subsidiary undertakings is 0 2009 11
amounts owing to subsidiary undertakings are repayable on demand the directors consider the fair value to be equal to the book value
refer to note 9 for an explanation of the year on year movement in amounts owed to subsidiary undertakings
9 borrowings
during the year the company issued a euro denominated bond and a sterling denominated bond refer to note 20 of the group ﬁ nancial 
statements for further information
most of the bond proceeds were passed on to subsidiary undertakings as a result the amounts owed by and owed to subsidiary undertakings 
have increased and decreased respectively during the current year
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10 financial risk
the company’s ﬁ nancial instruments comprise amounts due tofrom subsidiary undertakings cash and cash equivalents and other payables 
and receivables the company’s approach to the management of ﬁ nancial risks is discussed on pages 24 to 25 the company believes the value 
of its ﬁ nancial assets to be fully recoverable
the carrying value of the company’s ﬁ nancial instruments is exposed to movements in foreign currency exchange rates primarily sterling    
the company estimates that a 5 strengthening in sterling would increase loss before tax by £149m 2009 increase proﬁ t before tax by £11m 
while a 5 weakening in sterling would decrease loss before tax by £149m 2009 decrease proﬁ t before tax by £11m 
the carrying value of the company’s ﬁ nancial instruments is exposed to movements in interest rates the company estimates that a 05 
increase in interest rates would decrease loss before tax by £17m 2009 1 increase in interest rates decrease proﬁ t before tax by £20m while 
a 05 decrease in interest rates would increase loss before tax by £17m 2009 1 decrease in interest rates increase proﬁ t before tax by £20m
the maturity of contracted cash ﬂ ows on the company’s ﬁ nancial liabilities is as follows
at 30 september 2010
less than 
1 year
£m
between
1 and 5 years
£m
in more
than 5 years
£m
total
£m
trade and other payables 1101 – – 1101
borrowings – 4553 4547 9100
1101 4553 4547 7999
at 30 september 2009
less than 
1 year
£m
between
1 and 5 years
£m
in more 
than 5 years
£m
total
£m
trade and other payables 2857 – – 2857
all cash ﬂ ow projections shown above are on an undiscounted basis any cash ﬂ ows based on a ﬂ oating rate are calculated using interest rates 
as set at the date of the last rate reset 
11 deferred tax assets
2010 
£m
at 1 october 2008 –
credit to income statement 11
at 30 september 2009 11
credit to income statement 05
at 30 september 2010 16
the deferred tax asset relates to a sharebased payments temporary difference
at the balance sheet date the company had unused tax losses of £287m 2009 nil and other deductible shortterm timing differences of 
£65m 2009 £41m available for offset against future proﬁ ts no deferred tax asset has been recognised in respect of unused tax losses of 
£287m 2009 nil and other deductible shortterm timing differences of £05m 2009 nil
12 calledup share capital
the details of the company’s share capital are the same as those of the group and are disclosed in note 28 to the group ﬁ nancial statements 
in this report
13 operating lease arrangements
at the balance sheet date the company had outstanding commitments for future minimum lease payments related to property under 
noncancellable operating leases which fall due as follows
2010
£m
2009
£m
within one year 06 06
later than one year and less than ﬁ ve years 24 24
after ﬁ ve years 19 25
49 55
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financial statements
notes to the company ﬁ nancial statements continued
14 contingent liabilities
at 30 september 2010 the company had contingent liabilities in respect of counterguarantees for bank funding letters of credit and 
guarantees of amounts owed by subsidiaries amounting to £4648m 2009 £11621m this predominantly relates to a guarantee on
the drawndown portion of the group banking facility detailed in note 20 of the group ﬁ nancial statements 
also included are guarantees related to aircraft ﬁ nance lease commitments estimated based on the current book value of the ﬁ nance 
lease liabilities £796m 2009 £968m
the contingent liabilities have decreased since the prior year predominantly due to the bonds issued by the company during the year 
the bonds have replaced borrowings previously held elsewhere in the group which in the prior year had been guaranteed by the company 
and included with contingent liabilities
the company complies with all the standards relevant to consumer protection and formal requirements in respect of package tour 
contracts and has all the necessary licences in the uk the customer’s right to reimbursement of the return travel costs and amounts paid 
in case of insolvency or bankruptcy on the part of the tour operator or travel agency is guaranteed in line with legislation in the uk via a 
fund mechanism whereby travel companies are required to collect and remit a small charge for each protected customer upon booking
15 related party transactions
subsidiaries
the company transacts and has outstanding balances with its subsidiaries the company enters into loans with its subsidiaries at both ﬁ xed and 
ﬂ oating rates of interest on a commercial basis hence the company incurs interest expense and earns interest income on these loans 
the company also received dividend income from its subsidiaries during the prior year
2010
£m
2009
£m
transactions with subsidiaries
interest receivable 07 16 
interest payable 37 61
management fees and other expenses 81 108 
dividend income received – 4355 
yearend balances arising on transactions with subsidiaries
loans receivable 8249 5497 
interest receivable 01 03 
other receivables 331 238 
loans payable – 2412
interest payable – 02
other payables 409 270
remuneration of key management personnel
the remuneration of the directors who are the key management personnel of the company is set out in note 36 of the group ﬁ nancial statements
16 sharebased payments
the employees of the company include the directors collectively participate in all of the group’s equitysettled sharebased payment schemes 
the details relating to these schemes in respect of the company are identical to those disclosed in note 34 to the group ﬁ nancial statements and 
have therefore not been represented here
the sharebased payment charge of £27m 2009 £29m is stated net of amounts recharged to subsidiary undertakings
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17 principal subsidiaries associates and joint ventures undertakings
country of
incorporation
and operation
proportion
held by
company 
proportion
held by
group 
direct subsidiaries
thomas cook investments 2 limited england 100 100
thomas cook ag germany 100 100
indirect subsidiaries 
uk
airline network plc england 966
airtours holidays transport limited england 100
capitol holdings limited ireland 100
elegant resorts limited england 100
gold medal international limited england 966
gold medal travel group plc england 966
hotels4ucom limited england 100
mytravel 330 leasing limited cayman islands 100
mytravel uk limited england 100
neilsen turizm danismanlik ve ticaret ltd sti turkey 100
neilson active holidays limited england 100
neilson hellas ae greece 100
oa yacht charter sa greece 95
praznik doo za turizam croatia 100
resorts mallorca hotels international sl spain 100
think w3 limited england 100
thomas cook india limited india 7763
thomas cook aircraft engineering limited england 100
thomas cook airlines limited england 100
thomas cook broking limited england 100
thomas cook overseas limited england 100
thomas cook retail limited england 100
thomas cook scheduled tour operations limited england 100
thomas cook services limited england 100
thomas cook tour operations limited england 100
thomas cook tv limited england 100
thomas cook usa travel services limited england 100
thomas cook wholesale limited england 100
thomascookcom limited england 100
white horse administration services ltd ireland 100
white horse insurance ireland limited ireland 100
country of
incorporation
and operation
proportion
held by
company 
proportion
held by
group 
central europe
bucher reisen gmbh germany 100
gesellschaft fur reisevetriebssysteme mbh germany 100
hoteles y clubs de vacaciones sa spain 51
neckermann urlaubswelt gmbh  co kg germany 100
tc touristik gmbh germany 500023
thomas cook austria ag austria 100
thomas cook destinations gmbh germany 100
thomas cook service ag switzerland 100
thomas cook vertriebs gmbh germany 100
urlaubshop gmbh germany 100
viajes iberoservice españa sl spain 65
th017accountsp73130indd 127 th017accountsp73130indd   127 21122010 2251 21122010   2251 128 thomas cook group plc annual report  accounts 2010
financial statements
notes to the company ﬁ nancial statements continued
17 principal subsidiaries associates and joint ventures undertakings continued
country of
incorporation
and operation
proportion
held by
company 
proportion
held by
group 
indirect subsidiaries
west  east europe
neckermann polska bp sp zoo poland 100
neckermann slovakia sro slovakia 60
nur neckermann utazas szolgas szolgaltato kft hungary 100
thomas cook airlines belgium nv belgium 100
thomas cook belgium nv belgium 100
thomas cook nederland bv netherlands 100
thomas cook reisburo groep bv netherlands 100
thomas cook retail belgium nv belgium 100
thomas cook sas france 100
thomas cook sro czech republic 100
northern europe
hoteles sunwing sa spain 100
mytravel denmark as denmark 100
oy tjareborg ab finland 100
sunwing ekerum ab sweden 100
thomas cook airlines scandinavia as denmark 100
thomas cook northern europe ab sweden 100
ving norge as norway 100
ving sverige ab sweden 100
north america
thomas cook canada inc canada 100
thomas cook usa holdings inc usa 100
airlines germany
condor berlin gmbh germany 500023
condor flugdienst gmbh germany 500023
condor technik gmbh germany 500023
 all risks and rewards continue to be held by the group and in accordance with accounting standards the entity has been treated as being 100 controlled and fully consolidated 
by the group
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country of
incorporation
and operation
proportion
held by
company 
proportion
held by
group 
corporate
“eurocenter” beteiligungsund reisevermittlung gmbh germany 100
airtours channel islands limited jersey 100
airtours finance limited guernsey 100
blue sea overseas investments limited england 100
gut reisen gmbh germany 100
mytravel group plc england 100
parkway limited partnership no 1 lp  guernsey 100
sandbrook overseas investments limited england 100
sandbrook uk investments limited england 100
thomas cook continental holdings limited england 100
thomas cook group treasury limited england 100
thomas cook group uk limited england 100
thomas cook investments 1 limited england 100
thomas cook investments 3 limited jersey 966
thomas cook treasury limited england 100
associates
activos turisticos sa spain 40
coplay 95 sl spain 25
hispano alemana de management hotelero sa spain 40
hotelera adeje sl spain 25
oasis company sae egypt 251
joint venture
thomas cook personal finance limited england 50
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 revenue for the group and segmental analysis represents 
external revenue only except in the case of the airlines 
germany segmental key performance analysis where revenue 
of £2878m 2009 £3204m largely to the central europe 
division has been included
 underlying proﬁ t from operations is deﬁ ned as earnings 
before interest and tax and has been adjusted to exclude all 
separately disclosed items it also excludes our share of the 
results of associates and joint ventures adjusted underlying 
proﬁ t from operations is stated before the margin impact of 
the volcanic ash cloud vac
 underlying operating proﬁ t margin is the proﬁ t from operations 
as deﬁ ned above divided by the external revenue except in 
the case of the airlines germany segmental key performance 
analysis where total revenue has been used as the denominator 
to more accurately reﬂ ect the trading performance  
† passengers in the case of uk northern europe and 
north america represents the total number of passengers 
in thousands that departed on a thomas cook group plc 
holiday in the period it excludes customers who booked 
thirdparty tour operator products through thomas cook 
retail channels and transfers only for central and west  east 
europe passengers represents all tour operator passengers 
departed in the period excluding those on which only 
commission is earned
 mass market risk passengers in uk northern europe and 
north america represent those holidays sold where the 
business has ﬁ nancial commitment to the product ﬂ ights 
and accommodation before the customer books the 
analysis excludes accommodation only passengers
†† capacity for uk northern europe and north america 
represents the total number of holidays available to sell this 
is calculated by reference to committed airline seats both in
house and third party
 in the case of airlines germany capacity represents the total 
number of available seat kilometres ask ask is a measure 
of an airline’s passenger carrying capacity and is calculated 
as available seats multiplied by distance ﬂ own
††† for uk northern europe and north america load factor is 
a measure of how successful the tour operator was at selling 
the committed capacity this is calculated by dividing the 
departed mass market passengers in the period excluding 
accommodation only by the capacity in the period
 for airlines germany seat load factor is a measure of how 
successful the airline was at selling the available capacity 
this is calculated by dividing the revenue passenger kilometres 
rpk by the available seat kilometres ask – see capacity 
deﬁ nition above and is the recognised iata deﬁ nition of load 
factor used for airlines rpk is a measure of the volume of 
passengers carried by an airline one rpk is ﬂ own when 
a passenger is carried one kilometre
 average selling price for uk northern europe and north 
america represents the average selling price after discounts 
achieved per mass market passenger departed in the period 
excluding accommodation only passengers for central 
and west  east europe average selling price represents the 
average selling price after discounts achieved per passenger 
departed in the period
 brochure mix is deﬁ ned as the number of mass market holidays 
excluding accommodation only sold at brochure prices divided 
by the total number of holidays sold excluding seat only and is 
a measure of how successful a business was at selling holidays 
early holidays are generally discounted closer to departure
‡‡ controlled distribution is deﬁ ned as the proportion of 
passengers booking through our inhouse retail shops call 
centres and websites internet distribution is a subset of 
controlled distribution and is deﬁ ned as the proportion 
of passengers booking through inhouse websites both 
performance indicators are calculated on departed passengers 
in the period
‡‡‡ sold seats in airlines germany represents the total number of 
oneway seats sold on aircraft in thousands that departed in 
the period
 yield in airlines germany represents the average price per seat 
departed in the period
financial statements
appendix 1 – key performance indicators deﬁ nitions
th017accountsp73130indd 130 th017accountsp73130indd   130 21122010 2252 21122010   2252 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 131
shareholder information
key dates
last date for agm proxy votes to be received 
by the registrar 9 february 2011
agm 11 february 2011
exdividend date for 200910 ﬁ nal dividend 16 march 2011
final dividend record date 18 march 2011
final dividend payment date 7 april 2011
exdividend date for 201011 interim dividend 7 september 2011
interim dividend record date 9 september 2011
year end 30 september 2011
interim dividend payment date 7 october 2011
dividends
as an alternative to having dividends paid by cheque shareholders 
can if they wish have them credited directly into their bank or 
building society account on the dividend payment date the beneﬁ ts are
• funds are placed directly into the shareholder’s account on the 
payment date so there is no waiting for the cheque to clear
• it saves time as there is no need to pay in each dividend cheque and
• it avoids the inconvenience and cost of lost stolen spoiled or out 
of date cheques
shareholders wishing to set up a dividend mandate can do so by 
completing the dividend mandate form attached to the dividend 
cheque or by downloading a dividend mandate form from            
wwwshareviewcouk alternatively the appropriate form can be 
requested from the registrar contact details below
an interim dividend payment of 375 pence per share was paid on 
8 october 2010 to all ordinary shareholders on the register at 500pm 
on 10 september 2010 the directors recommend the payment of a 
ﬁ nal dividend of 70 pence per share to be paid on 7 april 2011 to 
all shareholders on the register at 500pm on 18 march 2011
share register and shareholder enquiries
the company’s share register is maintained by equiniti queries 
relating to thomas cook group plc shares should be addressed to
the registrar
equiniti
aspect house
spencer road
lancing
west sussex bn99 6da
tel 0871 384 2154 international telephone number 44 0121 415 7047
 calls to this number cost 8p per minute from a bt landline other providers’ costs 
may vary lines are open 830am to 530pm monday to friday
shareholders should quote the company reference number 3174 and 
their shareholder reference number which can be found on their share 
certiﬁ cate and dividend documentation when contacting the registrar
shareview
to be able to access information about their shares and other 
investments online shareholders can register with shareview        
wwwshareviewcouk  registration is free shareholders will 
need their shareholder reference number which is shown on 
their form of proxy and share certiﬁ cate by registering for this 
service shareholders will
• help reduce paper print and postage costs
• help the environment and
• be able to manage their shareholding quickly and securely online
once registered whenever shareholder documents are available 
shareholders will be sent a link to the appropriate website where 
the documents will be available to view or download receiving 
documents online does not affect shareholders’ rights in any way
multiple accounts on the share register
if a shareholder receives two or more sets of the documents 
concerning the annual general meeting “agm” this means that 
there is more than one account in their name on the shareholder 
register perhaps because either the name or the address appear on 
each account in a slightly different way for security reasons equiniti 
will not amalgamate the accounts without the shareholder’s written 
consent therefore if a shareholder would like their multiple accounts 
to be combined they should write to equiniti at the address above 
detailing the different shareholder reference numbers and request 
that they be combined into one account
website
the company’s corporate website wwwthomascookgroupcom 
provides information including
• news updates press releases and regulatory announcements
• investor information including the annual report investor 
presentations and share price information
• biographies of the board of directors and the senior executive team
• the company’s articles of association and the terms of reference for 
the committees of the board and
• sustainability reporting
electronic communications
at the agm on 10 april 2008 the company passed a resolution allowing 
the thomas cook group plc website to be used as the primary means of 
communication with its shareholders a consultation card was sent to 
shareholders enabling them to choose either to
• receive notiﬁ cation by email when shareholder documentation is 
available on the website or
• continue to receive shareholder documentation in hard copy
shareholders who did not respond were deemed in accordance 
with the companies act 2006 to have agreed to receive shareholder 
documentation via the thomas cook group plc website these 
arrangements for electronic shareholder communications provide 
shareholders with the opportunity to access information in a timely 
manner and help thomas cook group plc to reduce both its costs and 
environmental impact
voting electronically
all shareholders can submit their proxy vote for the agm electronically 
at wwwsharevotecouk to register their vote shareholders will need 
the numbers detailed on their form of proxy
alternatively shareholders who have already registered 
with shareview can submit their proxy vote by logging on to                  
wwwshareviewcouk and clicking on company meetings
holiday booking discount
shareholders subject to the restrictions set out below are entitled 
to receive a discount of 10 off the latest retail high street price of 
any holiday booked under the following brands airtours club 18
30 cresta manos neilson sunset sunworld holidays swiss travel 
service thomas cook thomas cook style collection thomas cook 
signature and thomas cook tours 
in order to beneﬁ t from this service shareholders should call the 
telephone number detailed below
shareholder booking line 0844 800 7003
opening times 900am to 530pm monday – saturday
th017p131132indd 131 th017p131132indd   131 04012011 1116 04012011   1116 132 thomas cook group plc annual report  accounts 2010
please note it is not possible to claim the discount through thomas 
cook stores other travel agents thomas cook websites or other 
telephone numbers
to qualify shareholders must hold a minimum of 500 shares held 
for a period of six months prior to making the booking and will need 
to quote their shareholder number shown on their share certiﬁ cate 
when booking their holiday shareholders who hold shares through 
a nominee can claim this discount but will be required to show proof 
of ownership from that nominee and that those shares continue to 
be held at the date of booking
it is not possible to use this discount against “ﬂ ightonly” bookings 
and it does not apply to air passenger duty fuel charges or any other 
supplements this discount may not be used in conjunction with any 
other offer
preferential foreign exchange rates
in addition to these travel beneﬁ ts when buying foreign currency 
or travellers cheques in any thomas cook or going places store 
shareholders are entitled to a commission free transaction and a 
preferential exchange rate subject to the conﬁ rmation that they 
meet the shareholding criteria set out above
thomas cook ag  mytravel group plc merger
thomas cook group plc was formed in june 2007 upon the merger of 
thomas cook ag and mytravel group plc
mytravel group plc shareholders received one thomas cook group 
plc ordinary share for every one mytravel group plc share previously 
held mytravel group plc share certiﬁ cates are no longer valid and can 
be destroyed replacement thomas cook group plc share certiﬁ cates 
were sent to shareholders who held shares in certiﬁ cated form on 
or around 19 june 2007 if a replacement certiﬁ cates has not been 
received please contact the registrar
unsolicited telephone calls and correspondence
shareholders are advised to be wary of any unsolicited advice 
offers to buy shares at a discount or offers of free reports about the 
company these are typically from overseas based ‘brokers’ who target 
us or uk shareholders offering to sell them what often turns out 
to be worthless or high risk shares these operations are commonly 
known as ‘boiler rooms’ and the ‘brokers’ can be very persistent 
and extremely persuasive if shareholders receive any unsolicited 
investment advice they can check if the person or organisation is 
properly authorised by the financial services authority “fsa” at   
wwwfsagovukregister and the matter can be reported to the fsa 
by visiting wwwmoneymadeclearfsagovuk details of any share 
dealing facilities that the company endorses will be included in 
company mailings or on our website
sharegift
shareholders with a small number of shares the value of which 
make it uneconomical to sell may wish to consider donating them 
to the charity sharegift registered charity number 1052686 
which specialises in using such holdings for charitable beneﬁ t 
find out more about sharegift at wwwsharegiftorg or by telephoning 
44 020 7930 3737
shareview dealing
a telephone and internet dealing service has been arranged 
through the registrar to provide a simple way of buying and 
selling thomas cook group plc shares for existing and prospective 
uk based shareholders for telephone dealing call 08456 037 037 
international telephone number 44 0121 415 7560 between 
800am and 430pm monday to friday or visit the website 
wwwshareviewcoukdealing shareholders will need the 
shareholder reference number shown on their share certiﬁ cates
analysis of shareholders as at 30 september 2010
distribution of shares by the type of shareholder
number 
of holdings
number 
of shares
nominees and institutional investors 1287 853789801
individuals 15344 4503146
total 16631 858292947
size of shareholding
number 
of holdings
number 
of shares
1100 11034 347061
101500 3413 787187
5011000 722 534731
100110000 718 2387419
10001100000 310 11873255
100001500000 220 52138567
5000011000000 85 61014984
1000001 and above 129 729209743
total 16631 858292947
registered office
6th floor south brettenham house lancaster place london wc2e 7en
registered number 6091951
shareholder contacts
shareholder helpline 0871 384 2154
international telephone number 44 0121 415 7047
website wwwthomascookgroupcom
registrar’s website wwwshareviewcouk
 calls to this number cost 8p per minute from a bt landline other providers’ costs may 
vary lines are open 830am to 530pm monday to friday
shareholder information continued
th017p131132indd 132 th017p131132indd   132 21122010 2309 21122010   2309 visit us at
wwwthomascookgroupcom
the thomas cook group website provides news and 
details of the group’s activities plus links to our 
customer sites and uptodate information including
• corporate news
• presentations
• share price data
• historic annual  sustainability reports
• halfyear results and interim management statements
• news alerts
at a glance
04 our group overview
an overview of the group including 
what we do and our business 
segments
06 our group chief 
executive ofﬁ cer reviews 
the year
manny fontenlanovoa discusses 
our progress during the year
10 our market place
details on the travel market place 
and future trends
12 our strategy
a review of our group strategy and 
progress against it
15 our strategy in action
httpwwwthomascookgroupcom
th019cover sectionindd   2 th019cover sectionindd   2 23122010   1943 23122010   1943  thomas cook group plc annual report  accounts 2010
 thomas cook group plc annual report  accounts 2010
our world of 
opportunity
thomas cook group plc
6th floor south
brettenham house
lancaster place
london wc2e 7en
wwwthomascookgroupcom
 design and production
black sun plc london
44 0 20 7736 0011
photos thomas cook
printed by st ives westerham press on 
tauro offset and hello silk manufactured 
by paper mills certiﬁ ed to the iso14001 
environmental standard using pulps 
bleached without the use of chlorine
th019cover sectionindd   1 th019cover sectionindd   1 21122010   2312 21122010   2312


Summary:
 6 thomas cook group plc annual report  accounts 2010
directors’ report
group chief executive ofﬁ cer’s statement 
responding 
to the 
challenge
we recognised at the outset that 
200910 would be demanding 
given the uncertain economic 
outlook and accordingly we 
took early action to deal with the 
challenges while we made good 
progress in many of our operating 
segments and delivered a strong 
improvement in operating cash 
ﬂ ow trading in the uk was even 
tougher than anticipated i am 
conﬁ dent that the actions we 
have now taken to reinforce 
the uk business together with 
continued progress on our 
strategic initiatives leave us well 
positioned to make progress in 
the current year
manny fontenlanovoa
group chief executive ofﬁ cer
th017p0615indd 6 th017p0615indd   6 21122010 2215 21122010   2215 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 7
 adjusted underlying proﬁ t
from operations
group results
group revenue for the 12 months ended 
30 september 2010 was £8890m 2009 
£9269m down 4 5 on a constant 
currency basis mainly reﬂ ecting planned 
capacity reductions in our winter 200910 
mainstream travel programme and lost sales 
as a result of the volcanic ash cloud incident 
adjusted underlying proﬁ t from operations 
was £391m 2009 £415m this was the 
result of reduced capacity and the impact of 
weaker sterling on ﬂ ying and accommodation 
costs which was partially mitigated by cost 
initiatives in accommodation purchasing 
airline operations and general overheads 
despite the challenging conditions our 
central europe and airlines germany 
businesses recorded much improved results 
of £61m 2009 restated £50m and £54m 
2009 £47m respectively these mainly 
resulted from product and efﬁ ciency 
improvements in both businesses and 
reduced depreciation charges in airlines 
germany the northern europe proﬁ t of 
£94m 2009 restated £87m was also up and 
west  east europe which reported a proﬁ t 
of £87m 2009 restated £86m did well 
considering the difﬁ cult economic conditions 
in some of their markets
the uk segment faced a challenging year 
in part due to signiﬁ cant foreign exchange 
headwinds and softer demand over the 
summer and as a result adjusted underlying 
operating proﬁ t was £124m down 24 on 
last year continued mainstream overcapacity 
in the canadian market impacted north 
america’s proﬁ ts which fell to £10m 
2009 restated £18m 
reducing exceptional costs is a key area of 
focus for the group excluding volcanic ash 
costs of £53m other exceptional charges fell 
from £217m to £132m as the integration 
costs associated with the mytravel merger 
fell away further detail can be found in the 
financial review on pages 42 to 45 and in 
note 6 to the group ﬁ nancial statements 
the net interest charge for the year remained 
broadly ﬂ at at £116m
overall the group delivered a statutory proﬁ t 
before tax of £42m compared with £45m last 
year and the reported proﬁ t after tax was 
£3m 2009 restated £9m 
the adjusted underlying earnings per share 
was 228p 2009 restated 250p the basic 
loss per share was 03p 2009 restated 
earnings per share 08p
strong cashflow performance
during the year there has been a concerted 
effort across the group to produce a 
sustainable improvement in cash ﬂ ow this 
has largely been delivered through improved 
working capital management by raising 
customer deposit levels accelerating holiday 
balance payments and harmonising supplier 
payment terms this has been partly offset by 
increased hotelier deposits required in some 
cases and a reduction in creditors
as a result of this and despite the difﬁ cult 
trading environment the group achieved a 
signiﬁ cant improvement in cash ﬂ ow with 
a £121m increase in operating cash ﬂ ow 
to £299m 
the group cash outﬂ ow before changes 
in debt was reduced to £117m compared 
with an outﬂ ow of £314m in the prior year 
group net debt at year end was £804m 
and headroom on banking facilities at 
30 september 2010 was £846m
successful refinancing 
during the year we successfully replaced 
our previous bank facility with new funding 
the new arrangements which amount 
to £1700m in total comprise a £1050m 
banking facility and £650m of bonds sterling 
equivalent taken together they provide the 
group with a simpler borrowing framework 
longer and varied maturities and greater 
ﬂ exibility and funding going forward
volcanic ash impact and 
our response
the volcanic ash cloud from iceland closed 
the majority of airspace above northern 
europe for almost six days in april and it 
then took up to ﬁ ve days before the vast 
majority of our customers had been returned 
home further isolated closures in april and 
may impacted individual markets 
i am extremely proud of the way in which 
all our people at thomas cook pulled 
together to respond to this crisis the scale 
of the event was vast involving c180000 
customers stranded in resort c190000 
customers unable to depart on holiday 
and over 1000 cancelled ﬂ ights our well
rehearsed emergency procedures sprung 
into action and the team led a professional 
operation to reassure and assist customers 
while simultaneously working with industry 
colleagues and the aviation authorities to 
coordinate a return to normal ﬂ ying
the letters of thanks and praise that we 
received from customers are testament to 
the dedication of our people and the event 
highlighted again the added security of 
booking a package holiday 
uk restructuring and high street 
travel merger
given the challenges experienced in the uk 
and the uncertain outlook we undertook a 
comprehensive review of the uk cost base 
and the structure of our uk operations 
towards the ﬁ nancial year end
this review has resulted in a reorganisation 
of the uk into three divisions mainstream 
independent and retail to reduce complexity 
and give greater accountability and visibility 
of operations 
 customer service
central europe
71
2009 72
northern europe
72
2009 72
airlines germany
73
2009 74
uk
76
2009 76
west  east europe
79
2009 79
north america
93
2009 91
source standardised customer satisfaction measure based on 
mainstream customer surveys in each of our source markets
the closure of european airspace in 
april 2010 had a signiﬁ cant impact 
on the operations of the thomas cook 
group as well as incurring £529m 
of direct exceptional costs to 
manage the welfare and repatriate 
our customers stranded in resort 
management estimates that the lost 
margin from not being able to operate 
our ﬂ ight programme during this time 
was £292m given the uniqueness 
of this incident and the distortion 
management believes the margin 
loss causes to our results we have 
excluded this margin impact from 
the underlying proﬁ t from operations 
that we discuss in both the group 
chief executive ofﬁ cer’s statement and 
the operating and financial reviews 
we refer to this proﬁ t measure as 
“adjusted underlying proﬁ t from 
operations” unadjusted numbers have 
been provided in the statutory income 
statement and related notes
th017p0615indd 7 th017p0615indd   7 21122010 2215 21122010   2215 8 thomas cook group plc annual report  accounts 2010
directors’ report
group chief executive ofﬁ cer’s
statement continued
this deal represents the last signiﬁ cant 
consolidation opportunity in uk travel 
combining two of the industry’s strongest 
and most complementary travel brands and 
distribution networks to reach out to a wider 
customer base than either company could 
achieve independently
it will unlock annualised synergies within 
the merged entity of £35m at a oneoff cost 
of £30m and further upstream synergies in 
thomas cook from additional mainstream 
and independent product sales of £10m 
thomas cook will own 665 of the merged 
entity the cooperative group will own 
30 and midlands cooperative will own 
35 whilst the merger is still subject to 
competition clearance we are working 
with the relevant authorities to achieve an 
expedited clearance
we believe that the restructuring combined 
with the merger with the cooperatives 
will greatly strengthen our uk business 
going forward 
confidence in our strategy
despite the challenging trading conditions 
this year we remain conﬁ dent that the global 
travel market will return to growth and that 
our strategy is the right one to capture that 
growth and deliver value to our shareholders
our strategy is focused on strengthening our 
mainstream package holiday and ﬁ nancial 
services businesses and investing in areas of 
future growth primarily independent travel 
and new markets 
during the year we began work on a number 
of strategic initiatives that we believe have 
the potential to raise the group operating 
proﬁ t margin by a further 100 to 150 basis 
points over the medium term
the progress on our key strategic initiatives is 
highlighted below and a full strategic review 
is set out on pages 12 to 14
mainstream travel
the strategy for our mainstream travel 
business is to improve product mix whilst 
reducing operating costs thus driving 
improvement in margin during the year we 
made good progress on a number of fronts
in relation to costs we established a new 
group destination management function 
with direct control over more than £1bn of 
accommodation spend and average group 
accommodation costs as a percentage of 
sales reduced yearonyear by 120 basis 
points to 325 on aviation by working 
together across our segments our airlines 
delivered £19m incremental airline synergies 
from fuel efﬁ ciency improvements and joint 
tendering in addition good cost reductions 
were achieved in all of our operating 
segments assisted by group procurement
in terms of product mix we improved 
our share of differentiated and exclusive 
products in all major markets and through 
the acquisition of öger tours we have 
strengthened our offering to turkey from 
germany we also increased controlled and 
online distribution to 52 2009 51 and 
23 2009 22 respectively
thomas cook group operates a ﬂ eet of 93 
aircraft with an average age of 12 years the 
group has identiﬁ ed signiﬁ cant operational 
savings particularly from maintenance 
and improved fuel efﬁ ciency that can be 
achieved by renewing and harmonising its 
71 narrow body aircraft within a common 
ﬂ eet following a comprehensive review the 
group has selected the airbus 320 family of 
aircraft accordingly the group will begin a 
ﬁ veyear narrow body aircraft replacement 
programme starting in december 2012 and 
phased in line with the planned retirement 
of the existing ﬂ eet the replacement 
programme will deliver optimum ﬂ exibility 
by sourcing new narrow body aircraft 
through a combination of ﬁ rm and ﬂ exible 
orders direct with the manufacturer and 
though accessing the aircraft leasing market 
a review of the wide body ﬂ eet replacement 
requirements will be undertaken during the 
current year
as part of the replacement programme 
the group has reached a memorandum 
of understanding with airbus for 12 new 
 see pages 46 to 48 for full biographies
from left to right 
back row jürgen büser pete constanti thomas döring paul hollingworth ralf teckentrup and paul wood 
front row ian derbyshire peter fankhauser michael friisdahl manny fontenlanovoa sam weihagen and derek woodward
“our strategy is focused on strengthening our 
mainstream package holiday and financial services 
businesses and investing in areas of future growth 
primarily independent travel and new markets”
our group executive board
as a result of the restructuring we expect 
to generate annualised overhead savings 
of £40m to £50m through the reduction of 
over 500 managerial and support roles the 
renegotiation of supplier costs and reduction 
in buying requirements and by consolidating 
and upgrading our it infrastructure these 
and other savings will be achieved in full 
in the ﬁ nancial year ending 30 september 
2012 helping to mitigate input cost pressures 
and any further deterioration in the trading 
environment we estimate that at least £30m 
of savings will be achieved in the current year 
and that the cost of approximately £20m to 
implement all of the planned savings will be 
incurred in the current year 
the uk business will also beneﬁ t from our 
plan to merge our uk high street travel 
and foreign exchange business with that 
of the cooperative group and midlands 
cooperative this will create the uk’s largest 
high street travel network with around 
1300 shops 
th017p0615indd 8 th017p0615indd   8 21122010 2215 21122010   2215 directors’ report 
business review
directors’ report 
corporate governance
financial 
statements
thomas cook group plc annual report  accounts 2010 9
back in 1896 thomas cook escorted 
uk customers to the ﬁ rst modern 
olympic games in athens as an 
ofﬁ cial supporter of the london 2012 
olympic and paralympic games 
thomas cook will be selling short 
breaks including ofﬁ cial event tickets 
and accommodation to the london 
2012 games 
airbus 321 aircraft scheduled to be delivered 
in 2014 with a list price of us96m each 
together with options to purchase further 
aircraft from 2015 these aircraft are subject 
to substantial price concessions from the list 
price the group will remain a heavy user 
of operating leases and it is anticipated that 
directly purchased aircraft will be ﬁ nanced 
through sale and leaseback agreements with 
thirdparty lessors 
for the ﬂ eet as a whole it is estimated 
that the reduced running costs of the new 
aircraft will more than ﬁ nance the increased 
ownership costs it is not anticipated that the 
overall ﬂ eet size will increase as a result the 
group expects to sign ﬁ nal contracts early in 
the new year
travelrelated ﬁ nancial services
travelrelated ﬁ nancial services contributed 
14 of group adjusted underlying operating 
proﬁ t in the uk we increased our share of 
the foreign exchange market from 13 to 
15 and became the number one global 
provider of cash passports supplied by 
travelex tapping into the rising popularity 
of prepaid currency cards additionally 
we boosted our online travel insurance 
capability by acquiring essential travel
independent travel and online
travel agent ota
our objective with independent travel is to 
grow both the top and bottom line largely 
through the development of our european 
online travel agent ota 
in the year we saw independent travel’s 
share of group sales grow from 25 to 27 
and passengers grow by 5
signiﬁ cantly we established the ota 
organisation under the leadership of thomas 
döring attracting high calibre people 
from well known internet companies and 
delivered sales with a gross booking value 
of £1bn an increase of 22 on the previous 
year this is a vital area for the group and our 
ﬁ rst priority is to optimise sales of our own 
package holidays through the ecommerce 
channel we are also developing plans to 
broaden our offering of city breaks and 
accommodation with beneﬁ ts expected to 
ﬂ ow over the next two to three years 
emerging markets
as a group we continue to see large potential 
opportunity in new particularly emerging 
markets where travel and gdp growth rates 
far outstrip our existing markets we already 
operate in india egypt and eastern europe 
and in 2010 13m customers travelled with 
us from these markets 
on 25 november 2010 thomas cook 
reached agreement to form a joint venture 
with vao intourist one of russia’s most 
renowned travel companies thomas cook 
will acquire a 501 stake in the joint venture 
for a consideration of us45m comprising 
us35m in new thomas cook shares and 
us10m in cash the joint venture will 
include intourist’s outbound domestic and 
inbound tour operating operations as well 
as its travel retail network the joint venture 
provides thomas cook with an entry into the 
fastgrowing russian market with a strong 
local partner subject to antitrust clearance 
in russia and certain other conditions the 
joint venture is expected to complete in or 
before february 2011
sustainable future
to secure our future success for the long term 
we need to address the longterm challenges 
facing the travel industry we have made 
progress during the year in all areas of our 
sustainability strategy including maintaining 
a committed and engaged workforce 
providing a great holiday experience for 
customers whilst ensuring their security 
and safety improving fuel efﬁ ciency and 
monitoring the carbon emissions from 
our aircraft and encouraging sustainable 
practices within our supply chain a full 
report on our progress is provided on pages 
38 to 41 
proud of our people
during the year we welcomed paul 
hollingworth as group chief financial ofﬁ cer 
paul’s appointment has strengthened the 
leadership team signiﬁ cantly and we have 
beneﬁ ted from his previous experience as 
chief financial ofﬁ cer of a number of major 
uk listed companies
the group executive board has continued 
to show strong leadership and we made a 
number of changes that enable us to manage 
more effectively going forward in november 
2009 jürgen büser having recovered well 
following a period of ill health returned to 
the business to take up the role of group 
strategy director pete constanti previously 
chief executive ofﬁ cer mainstream travel 
uk was appointed to the new group role of 
chief executive ofﬁ cer group destination 
management and ian derbyshire previously 
chief executive ofﬁ cer independent travel 
uk was appointed chief executive ofﬁ cer uk 
in may 2010 thomas döring chief executive 
ofﬁ cer west  east europe expanded his 
role taking on additional responsibility for 
spearheading our ota initiative
ludger heuberg  chief executive ofﬁ cer 
group operations who provided interim 
support as acting group chief financial 
ofﬁ cer and alexis colesbarrasso group 
director pr  communications stepped 
down to pursue other opportunities i would 
like to thank them both for their valued 
input over the years 
as part of the uk restructuring we had 
to part with a number of our colleagues 
following the year end the downsizing in no 
way reﬂ ects upon their ability or passion for 
the business and they go with our gratitude 
and best wishes for the future 
 next stop london 2012
i would also like to personally thank all our 
people for their hard work and commitment 
to the group over the last year it has been 
challenging at times and the effort and 
energy they have shown has been invaluable
current trading and outlook
our business has proved its resilience in 
challenging times 
as we enter the current year although the 
uk environment remains uncertain we are 
encouraged by a better market environment 
in our major continental and scandinavian 
markets winter bookings are off to a good 
start and although early in the cycle 
summer bookings are developing well 
we have taken further actions to simplify 
and streamline our uk business which 
will result in signiﬁ cant cost savings on an 
annualised basis helping to mitigate input 
cost pressures and any further deterioration 
in the trading environment
we are conﬁ dent that the actions we have 
now taken to reinforce the uk business 
together with continued progress on our 
strategic initiatives leave us well positioned 
to make progress in the current year
manny fontenlanovoa
group chief executive ofﬁ cer
30 november 2010
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