#1Thomas Cook Thom Foreign Exchang rency Notes paid Cards Tho Cook Travellers Cheques Travel Insurance Thomas Cook India Investor Presentation May 2012 Foreign Exchange. Thomas Cook Thomas Cook Bureau de Change fada yar⚫ fee#2Important Notice This presentation is published for general information purposes and the information contained herein does not constitute or form part of an offer or invitation, or a solicitation of any offer, or recommendation for the purchase or subscription of securities or any interest in the Company. The information contained in this presentation shall not form the basis of or be relied upon in connection with any contract, commitment or investment decision. This presentation may contain certain "forward looking statements", plans and strategies with respect to the anticipated growth and future performance of the Company, which are subject to change by the Company without notice. The Company and its directors, officers, agents, or employees and its affiliates make no representation, warranty or assurance of any kind, express or implied, on the accuracy, completeness or usefulness of the presentation or the information contained therein or that the strategies or forward-looking statements are reasonable or will be realised. This presentation is not intended under any circumstances to be a profit forecast or to guarantee future returns and the statements contained herein may or may not prove to be correct. The actual results could vary from the strategies and forward-looking statements contained in this presentation, and such variations could be material. The Company and its directors, officers, agents, or employees and its affiliates shall not be liable for any indirect, incidental or consequential damages sustained or incurred in connection with the use, operation, or inability to use this presentation and information contained therein. The Company disclaims any intention or obligation to revise any forward- looking statements, whether as a result of new information, a future event, or otherwise. Thomas Cook#3India's Leading Integrated Forex And Travel Operator ■Leading integrated foreign exchange and travel services company - - - 2011 revenue of Rs. 4,027m (up 18.3% from 2010) 2011 EBITDA of Rs. 1,177m (up 19.0% from 2010) Operations in India since 1881 ■Strong franchises - Forex Leisure Travel Inbound - Leisure Travel (Outbound & MICE/Domestic) - Corporate Travel Expansive retail distribution network 151 own stores, 117 franchises, 166 preferred sales agents and 29 extension counters across India 16 locations in Mauritius and 2 locations in Sri Lanka airport Segment Revenue (2011A) Travel & Related Services 88% Financial Services 12% Thomas Cook 2#4Company History 1881 First office is established in Mumbai February 1983 IPO on the Bombay stock exchange February 2007 Merger with LKP Forex March 2008 Thomas Cook UK Limited acquires 74.9% in the company December 2008 TCIL issues 50.7m shares by way of a rights issue July 2010 TCIL enters into seven-year agreement with New Delhi International Airport and launches nine foreign exchange and travel counters 1881 1983 2005 2006 2007 2008 2009 2010 2011 December 2006 Acquisition of 100% in Travel Corporation (India) Limited December 2005 Dubai Financial (LLC) acquires 100% of TCIM Limited October 2011 Signing of MasterCard agreement Appointment of State Bank of India as MoneyGram sub-agent Thomas Cook 3#5Benefits Of Operating A Fully Integrated Forex And Travel Platform Intra-Group Synergies Marketing & brand Distribution network Operating and infrastructure costs Customer access Travel • Outbound • Inbound • MICE/Domestic . Corporate Cross-Selling Leverage footfall Leverage online platform Financial Services • Wholesale Forex Travel-related Services Travel-related Forex • Insurance • Visas & Passport Services • Other Travel Related Services Forex Scale Benefits Note consolidation more economical Dealing room and ability to hedge Thomas Cook 4#6Attractive Market With Strong Growth Characteristics Supportive macro backdrop and dynamics... Strong Real GDP Growth (2011-2015E) Young Population China 8.3% India 8.2% Africa 5.2% Brazil 4.8% Increase in Discretionary Spending 53% 58% 65% 48.6% 39.1% 42.7% 2000A 2010A 2040E 25-59 0-14 15-24 60 or above 2005A 2010A 2015E Discretionary Non Discretionary ...stimulate growth in our areas of operation FX Earnings from Tourism Outbound Travel from India Inbound Travel in India (Rs. bn) (m trips) (m trips) 7.8 22.5 649 5.7 12.6 3.9 331 7.2 156 2000A 2005A 2010A 2005A 2010A 2015E 2005A 2010A 2015E Source: Global Insight, UN Population Statistics; Euromonitor, Ministry of Tourism annual report 2011 Note: Non discretionary spend only includes housing, food and non-alcoholic beverages Thomas Cook 5#7Our Broad Distribution Network Ensures We Are Well Positioned To Capture This Growth Own stores Franchises PSAs Extension counters Mauritius 16 own stores India - Key properties DN Road (Owned & Leased) Gurgaon (Owned) Chembur (Owned) Nariman Point (Owned) & CCO India 151 Own stores 117 Franchises 166 PSAs 29 Extension counters Sri Lanka 2 Own stores Thomas Cook CO#8Presence In Wholesale, Retail And Corporate Forex Segments Wholesale Institutions (Banks, Full Fledged Money Changers, Restricted Money Changers) Characteristics Purpose: bulk note consolidation and bulk sale ■High volume and low margin business Extremely sensitive to market movements and pricing Retail Individuals (Walk-ins at Shops & Airports, Agents) ■Purpose: leisure, education, remittances, migration ■Relatively price inelastic at airports (1); some degree of elasticity at non- airport outlets Corporate Corporate Houses (Travelling Employees) Purpose: business travel ■Typically corporates are from IT, manufacturing and fast moving consumer goods sectors Sensitive to global economic conditions Note: (1) Company has presence in Mumbai, Bangalore, Chennai, Cochin and Delhi Airports Thomas Cook 7#9Broad Product And Service Offering For Retail And Corporate Forex Customers Thomas Cook 055 Angus Cabelos fegre 5141- 67-751-001 Bank Notes Traveller Cheques ■Buying/selling ■ Export Services provided in 26 currencies ■ American Express traveller cheques ■■Provided in six currencies: USD, GBP, Euro, AUD, JPY, CAD GlobalMoney Pre-paid VISA Cards MoneyGram International Money Transfer Re-loadable and accepted at 1 million ATMs Denominated in USD, GBP, Euro, AUD, CAD, JPY, CHF and SGD Pay Orders Foreign currency pay orders, available in 8 currencies Wire Transfers Available in 10 currencies Money Gram Transfer Person-to-person money transfer service Thomas Cook 8#10Forex Operational Overview Customers Day 0 Point of Sale / Purchase of Foreign Exchange Retail Customers (Tourists, NRIs, Students, Business Travellers, etc.) Retail Outlets (Own Stores, GCPs) Corporate Employees Wholesale Customers (Banks, FFMCs, RMCs, Non-Bank Retailers, etc.) Agent Outlets Implants, Corporate Hubs Wholesale Hubs Currency Movement Within Branches Surplus Currency Day 1 Day 2 INR Funds Settle Interbank Contracts Monitor Banks (Interbank Parties) Dealing Room Holdings Consolidation Export Centers On average, the complete cash conversion cycle is ~ 3 days N We have been granted Authorized Dealer (AD Category II) license by the RBI Overseas Banks (for Export / Import) Credit to Nostro Accounts Currencies Shipped Nostro Accounts Thomas Cook 9#11Leisure Outbound Overview ■Leading outbound tour operator by sales and passengers - Offers outbound tour packages consisting of numerous components to c. 50 countries Also act as a sales agent for other travel operators ■Distribution through multiple channels ■Focus on long-haul routes enables higher margins Product innovation List of Products & Services Air tickets Cruises Rail tickets ■Airport transfers Hotel accommodation ■ Sightseeing ■ Tour guides ■ Packages Fully independent Tours Group inclusive tours - New destinations - Products at various price points Thomas Cook turns back the clock for Travel to USA in 2012 at 2009 pri AMERICAN ROYALE 19 DANS AT 2.69,900 01 10 UNBEATABLE REASONS TO TRAVEL WITH THOMA - Fusion holidays - flexible tour packages - Luxury products Toll Free: 1-800-2099-100 kis merizing beauty of Ireland beckons. over Ireland with Thomas Cook. 5 Nights & 6 Days Starting at 34,990/- per person Syle ng of Kerry ON GOD'S EARTH, EVEN A TRIP TO PARADISE ISN'T POSSIBLE WITHOUT PAPERWORK FROM HELL ease as oracion have so so rich the fo your al masters in planty are plassen Bo 8 was ever hook, we to Thomas We can everyone, at at ts and thembe your Cook immunity નાન Toll Free: 1-800-2099-900 TRAVEL SMOOTH LEISURE TRAVEL BUSINESS TRAVEL FOREX TRAVEL MANAGEMENT TRAVEL INSURANCE Thomas Cook 10 10#12MICE & Domestic Travel Overview MICE Leading MICE player by sales ■Comprehensive MICE solutions provided Domestic Travel Domestic offers tour packages and individual tour components to domestic travellers ■Usual sales process involves pitches, followed by competitive bidding ■Distribution through multiple channels (own stores, GCPS, travel agents, website) Key customer sectors include pharmaceuticals, consumer durables, automotives and financial services ■Special air inclusive fixed departure tours for small and large groups; innovative weekend packages; travel partner for unique events ■ Corporate arrangements with a number of event management companies ■Tie-ups with local agents, hotels, guides to provide destination management services Thomas Cook 11#13Inbound Travel Overview List of Products & Services ■Top three inbound player in India by sales¹ Individual tours ■Emergency medical assistance Two brands: TCI Thomas Cook Group escorted tours ■Airport transfers ■ Key markets: Europe, Japan and the US Broad network of travel agents and tour operators worldwide ■ MICE Excursions (1) Ministry of Tourism, Government of India. Strategy ■Development of Comprehensive Product Portfolio ■Improved Customer Reach & Service Delivery ■Margin Improvement - Leveraging scale - Increased operating efficiency ■Increased promotion Online presence Thomas Cook 12#14Corporate Travel Overview Amongst top 3 corporate travel players in India. ■Provides both travel products and travel budget management services Distribution through stores, Service Excellence Centre and "implants" List of Products & Services Air tickets Car rental ■Passport and visa services Hotel accommodation ■Foreign exchange services Transfers Insurance Meet and assist Over 700 clients ■Predominantly Indian multi-nationals Strategy Increased focus on non-air revenue streams ■Improved Service Delivery - Consolidation of service delivery Improved online ticketing platform Assessing customer satisfaction Portfolio Diversification Thomas Cook 13#15Business Drivers Product Offering Travel Distribution Travel-related Services Outbound Destinations Introduce new destinations for GIT and FIT Pre-paid Cards Increase penetration, in particular retail pre-paid cards Outbound Packages Packages for niche holidays (e.g. cultural tours, religious tours, etc.) Remittances Increase retail product penetration MICE Destinations Develop offerings in new destinations to differentiate Money Transfer Introduce products and services of additional providers Source Markets Geographic expansion to cover all regions of India for MICE sales ATM Services Potential to tie-up with local bank and setup ATM network Retail Online Expand into second and third tier cities; Increase footprint in strategic locations Continue to develop website functionality and content; Leverage online platform for B2C and B2B distribution Thomas Cook 14#16Track Record Of Growth And Profitability Net revenues (2009A-2011A) (Rs. m) EBITDA (2009A-2011A) (Rs. m) 4,027 2009A-2011A CAGR 27% Net income (2009A-2011A) (Rs. m) 2009A-2011A CAGR 21% 3,406 2,746 731 989 1,177 2009A-2011A CAGR 50% 250 472 562 2009A 2010A 2011A 2009A 2010A 2011A 2009A 2010A 2011A Note: Net Revenues and EBITDA includes other income Thomas Cook 15#17Key Financials (Rs m) Sources of Funds 2009 2010 2011 (Rs m) 2009 2010 2011 Cash Flow Shareholders' Funds Common Equity 211 212 212 (1) Preference Capital 6 6 6 Cash Flow from Operations Cash Flow from Investing Cash Flow from Financing 810 (513) (615) 82 1,460 8 (300) 18 (50) Reserves & Surplus 2,803 3,190 3,705 Loan Funds 1,700 2,016 2,286 Deferred Taxation (Net) 29 76 50 Total 4,750 5,499 6,259 Application of Funds Fixed Assets (including WIP) 2,192 2,475 2,491 Investments 356 156 383 Current Assets, Loans and Advances Sundry Debtors 2,071 2,225 2,264 Cash & Bank Balance 1,501 1,601 2,735 Loans & Advances 1,087 1,440 1,358 Less: Current Liabilities & Provisions Liabilities 2,306 2,279 2,848 Provisions 151 118 123 Net Current Assets 2,202 2,869 3,386 Total 4,750 5,499 6,259 (1) Include 319,765 Class 'B' and 271,800 Class 'C' 0.001% Cumulative Convertible / Redeemable Preference Shares of INR10/- each, convertible into an equivalent number of Equity Shares, if the EPS of the Company exceeds 3.03 and 3.64 per share, respectively. These would be redeemed within a period of six months if the said EPS of the Company is not achieved based on the audited accounts of the Company as at the end of 31st December, 2013. Thomas Cook 16#18Segmental Performance Travel & Related Services Financial Services (Rs. m) 2009 2010 2011 CAGR (Rs. m) 2009 2010 2011 CAGR Net Revenues 2,235 2,720 Growth (16.8%) 21.7% 3,303 21.6% 21.4% Net Revenues 417 384 435 2.1% Growth 0.6% (8.0%) 13.2% Segment result Margin 767 1,129 1,286 29.5% 34.3% 41.5% 38.9% Segment result Margin 257 196 61.7% 51.1% 239 55.0% (3.6%) Segment Capital employed 1,995 2,275 2,570 13.5% Segment Capital employed 983 1,080 1,296 14.8% - In the travel business, 2009A saw a significant decrease in both leisure and business travellers given the overall difficult macro- economic backdrop Resurgence in economic activity spurred a recovery in the corporate travel and leisure outbound segments in 2010A Underlying factors such as increased appetite of Indians to travel abroad remained supportive in 2011A and led to a strong result in the leisure outbound segment TCIL's foreign exchange operations were negatively impacted by rupee appreciation in 2009A Challenging environment in 2010A, due to a continued appreciation of the rupee, compensated by increased demand for foreign currency from corporate and leisure travellers, - TCIL's ongoing expansion of the branch network and - higher remittances Strong growth in a more favorable market environment supported by a depreciation of the rupee in 2011A Thomas Cook 17#19Potential For Growth Net revenues (2012E-2014E) (Rs. m) 2012E-2014E CAGR 14% 5,648 4,340 4,927 2012E 2013E 2014E EBITDA (2012E-2014E) (Rs. m) 2012E-2014E CAGR 16% 1,732 Net income (2012E-2014E) (Rs. m) 2012E-2014E CAGR 26% 1,435 1,295 2012E 2013E 2014E 547 666 869 2012E 2013E 2014E Leisure Travel (1) and MICE account for 33% of total revenues (2011A) and are expected to be the key growth drivers for the company going forward (1): Includes Outbound, Inbound and Domestic Travel Thomas Cook 18