TUI AG · XETR:TUI1
TUI — Investor Presentation (May 2018)
35 slides from TUI's investor presentation, May 2018
Slide 1: TUI Group Factbook
TUI Group Factbook May 2018
Slide 2: TUI Group - Reasons to Invest & Business Model
TUI GROUP - REASONS TO INVEST & BUSINESS MODEL 2 TUI GROUP | May 2018 Factbook
Slide 3: Strong TUI investment case – 3 reasons to be invested
Strong TUI investment case – 3 reasons to be invested / to invest • Global leading tourism group 1 • Covering entire customer journey: Sales & Marketing, Hotels, Cruises, Destination Experiences STRONG • Integration and control of attractive hotel & cruise experiences STRATEGIC • drives customer sat
Slide 4: 3 years after the merger: TUI – one brand, superior strategic positioning
1 3 years after the merger: TUI – one brand, superior strategic positioning, diversified SALES & MARKETING - 41% EBITA HOLIDAY EXPERIENCES - 59% EBITA INTEGRATION BENEFITS/ Digitalisation, diversification Growth, diversification STRATEGY 20m customers Portfolio approach ~150 TUI 3831 • Own customer
Slide 5: Merger synergies delivered, strong earnings growth story continues
2 Merger synergies delivered, strong earnings growth story continues STRONG GROWTH TRACK RECORD: FUTURE GROWTH: MARKET DEMAND, MERGER SETS BASIS MERGER SYNERGIES DIGITALISATION, INVESTMENTS FOR FUTURE GROWTH • Target extended to >+10% CAGR 2020: at least 10% +12%1 underlying EBITA CAGR Earnings grow
Slide 6: Strong cash generation allowing to invest, pay dividends and strengthen balance sheet
3 Strong cash generation allowing to invest, pay dividends and strengthen balance sheet ILLUSTRATIVE CASH FLOW PROFILE FY17 - FY19 CAPITAL ALLOCATION FRAMEWORK Normalised Attractive dividend • In line with earnings Growth investments • Re-investing disposal 1/3 of €2bn disposal growth proceeds p
Slide 7: Update on re-investment programme FY16-FY19 – doubling EBITA under way
3 Update on re-investment programme FY16-FY19 – doubling EBITA under way GROWTH INVESTMENTS FY16 to FY18 H1 GROWTH INVESTMENTS FY18 & FY19 REINVESTMENTS 230 • Reinvestment of disposal ~€0.4bn proceeds by FY19 ~€0.4bn 400 40 • Own content growth • Basis for end-to-end 55 profitability 270 4 Ac
Slide 8: Transformational Growth Investments funded by Disposal Proceeds
3 Transformational Growth Investments funded by Disposal Proceeds NORMALISED NET INVESTMENTS (€BN) DISPOSALS (€BN) 1.2 0.4 1.1 1.1 Additional net Hapag-Lloyd investments for xx transformation 2 0.4 FY16-19 = €1.9bn1 Travelopia 0.6 ~€2.0bn Normalised net 2 investments 1.2 ~3.5% of Revenue Hotelbeds H
Slide 9: Business model strength continues to drive ROIC
3 Business model strength continues to drive ROIC TUI GROUP 1 HOTELS • Delivering strong ROIC for TUI shareholders 24% • Hotels: pre-dominantly low 13% capital intensity, JVs 12% 22% 22% 11% • Cruises: partially off balance sheet financing FY15 FY16 FY17 FY15 FY16 FY17 • Sales & Marketing: low capit
Slide 10: Group Financials
GROUP FINANCIALS 10 TUI GROUP | May 2018 Factbook
Slide 11: Income Statement – Key Figures FY17 and FY16
Income Statement – Key Figures FY17 and FY16 In €m FY17 FY16 Turnover 18,535.0 17,153.9 Underlying EBITDA 1,541.7 1,379.6 Underlying EBITA 1,102.1 1,000.5 Adjustments -75.6 -102.4 EBITA 1,026.5 898.1 Interest result -119.2 -179.5 Hapag-Lloyd AG 172.4 -100.3 EBT 1,079.7 618.3 Income Taxes -168.8 -153
Slide 12: Earnings per share (continuing operations)
Earnings per share (continuing operations) Reported Reported Pro forma Pro forma* In €m FY17 FY16 FY17 FY16 EBITA 1,027 898 1,102 1,001 Net interest expense -119 -180 -119 -180 Underlying effective tax HLAG book value adjustment and equity result 172 -100 - - rate calculated based on underlying EBT
Slide 13: Cash Flow & Movement in Net Debt
Cash Flow & Movement in Net Debt In €m FY17 FY16 EBITA reported1 1,026.5 898.1 Depreciation1 464.4 407.0 Working capital 406.2 271.8 Other cash effects 89.9 63.7 At equity income1 -252.3 -187.2 Dividends received from JVs and associates 118.2 82.2 Tax paid -146.1 -186.4 Interest (cash) -57.1 -71.2 P
Slide 14: Balance Sheet
Balance Sheet In €m 30 Sep 2017 30 Sep 2016 Non-current assets 9,867.6 9,131.8 Current assets 4,317.9 5,326.1 Assets 14,185.5 14,457.9 Subscribed capital 1,501.6 1,500.7 Reserves including net profit available for 1,438.1 1,174.4 distribution Non-controlling interest 594.0 573.1 Equity 3,533.7 3,248
Slide 15: Financial Ratios FY17 and Targets for FY18
Financial Ratios FY17 and Targets for FY18 LEVERAGE RATIO FY17 DEVELOPMENT AND OUTLOOK €m FY17 Gross debt 1,933 to Bonds 296 3.50x to Liabilities to banks 381 3.25x 2.75x 3.00x to Finance lease 1,227 2.50x to Other financial liabilites 29 2.25x Pension 1,127 3.3 1 2.5 FY18 Leverage Target Discounted
Slide 16: Key Sources of Funding 31 March 2018
Key Sources of Funding 31 March 2018 Instrument Issue Maturity Amount €m Interest % p.a. Revolving Credit Facility Sep 14 Jul 22 1,7501 E/L +1.40 Senior Notes Oct 16 Oct 21 300 2.125 Finance leases Various Various 1,294 Various 1 Including a tranche of €215m for the issue of bank guarantees 16 16 TU
Slide 17: ROIC and Value added methodology
ROIC and Value added methodology In €m Notes to ARA FY17 FY16 Equity 3,533.7 3,248.2 Subscribed capital (24) 1,501.6 1,500.7 Capital reserves (25) 4,195.0 4,192.2 Revenue reserves (26) - 2,756.9 - 3,017.8 Non-controlling interest (28) 594.0 573.1 Plus interest bearing financial liability items 3,328
Slide 18: Hotels & Resorts
HOTELS & RESORTS 18 TUI GROUP | May 2018 Factbook
Slide 19: Hotels & Resorts Summary FY17
Hotels & Resorts Summary FY17 HOTEL BEDS BY REGION (%) 8% Caribbean Key Facts FY17 29% Western Med. Total Turnover (€m) 1,366 18% Total Eastern Med. o/w Turnover 3rd party (€m) 679 238,775 North Africa Underlying EBITDA (€m) 485 23% 22% Other Underlying EBITA (€m) 357 o/w Equity result (€m) 91 Numbe
Slide 20: Hotels & Resorts Summary by brand
Hotels & Resorts Summary by brand Key figures FY17 Total Turnover (€m) 493.1 82.6 - 679.0 Underlying EBITA (€m) 355.9 38.5 20.1 356.5 Capacity (‘000)1 17,942 3,115 2,859 39,163 Number of hotels2 942 23 24 327 Number of beds 86,834 14,770 24,648 238,775 AVERAGE OCCUPANCY3 % AVERAGE REVENUE PER BED4 €
Slide 21: Hotels & Resorts RIU – Key figures FY17
Hotels & Resorts RIU – Key figures FY17 RIU 100% view1 o/w RIUSA II o/w Riu Hotels Riu in Total In €m (fully consolidated) (consolidated at equity) TUI accounts Turnover 1,190 852 338 852 Underlying EBITA 446 304 142 356 EBITA Margin 37% 36% EAT 341 231 110 o/w EAT to TUI (50%) 167 116 52 167 ROIC (
Slide 22: Hotels & Resorts Robinson – Key figures FY17
Hotels & Resorts Robinson – Key figures FY17 (€M) Robinson FY17 FY16 In TUI accounts1 Turnover 204 194 Underlying EBITA 39 39 EBITA margin 19% 20% EAT (100% TUI) 13 15 ROIC 11% 13% 1Unaudited figures Robinson Club Maldives HOTEL BEDS BY REGION (%) FINANCING STRUCTURE (%) 19% 13% 26% Western Med. 26%
Slide 23: Hotels & Resorts Blue Diamond – Key figures FY17
Hotels & Resorts Blue Diamond – Key figures FY17 (€M) Blue Diamond FY17 FY16 100% view1 Turnover 360 312 EBITA 61 51 EBITA margin 17% 16% EAT 40 34 o/w EAT to TUI (49%) 20 17 1Unaudited figures Blue Diamond Royalton Punta Cana, Dominican Republic NUMBER OF HOTELS BY LOCATION FINANCING STRUCTURE (%)
Slide 24: Cruise
CRUISE 24 TUI GROUP | May 2018 Factbook
Slide 25: Cruises Summary by brand
Cruises Summary by brand Key figures FY17 MARELLA CRUISES Turnover - 502.4 312.6 Memo: TUI Cruises Turnover 1,052.5 - - Underlying EBITA 135.91 86.5 33.2 Passengers (k) 467 308 26 Fleet Size (Group Total 16) 6 6 4 Total Berths 2 13,916 9,173 1,254 4 TUI CRUISES 4.5 MARELLA CRUISES HAPAG-LLOYD CRUISE
Slide 26: TUI Cruises - Key figures FY17 – 100% View
Cruises TUI Cruises - Key figures FY17 – 100% View TUI Cruises 100%1 FY17 FY16 % Turnover 1,053 807 30 % Underlying EBITA 304 227 34 % EBITA-Margin 29% 28% EAT (100% TUI) 272 200 36 % o/w TUI EAT (50%) 136 100 36 % ROIC 16% 14%2 ROE 43% 36% 1 unaudited figures 2 restated 26 TUI GROUP | May 2018 Fact
Slide 27: TUI Cruises Fleet
Cruises TUI Cruises Fleet New Mein Mein Schiff Mein Mein Mein Mein New Mein Mein Schiff 1 Herz (Prev MS2) Schiff 3 Schiff 4 Schiff 5 Schiff 6 Schiff 2 Schiff 7 2,894 1,912 2,506 2,506 2,534 2,534 2,894 2,894 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Wholly Wholly Wholly Wholly Wholly W
Slide 28: Marella Cruises fleet
Cruises Marella Cruises fleet Marella Marella Marella Marella Marella Marella Marella Explorer 2 Celebration Dream Spirit Discovery Discovery 2 Explorer (Currently SGE)1 1,262 1,533 1,254 1,830 1,832 1,924 1,814 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Finance Lease exp. Finance Lease exp. O
Slide 29: Hapag-Lloyd Cruises Fleet
Cruises Hapag-Lloyd Cruises Fleet Europa Europa 2 Bremen Hanseatic Hanseatic Hanseatic Hanseatic Nature Inspiration New build 4081 5161 155 175 230 230 230 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Wholly owned Wholly owned Bare- Wholly owned Wholly owned Wholly owned OPERATING M
Slide 30: Destination Experiences
DESTINATION EXPERIENCES 30 TUI GROUP | May 2018 Factbook
Slide 31: Destination Experiences Key figures FY17
Destination Experiences (formerly Destination Services) Key figures FY17 More than 6,500 4.6 million colleagues excursions sold Handled >12 >24 7.8m million transfers million guests operated 24/7 contacts Operating in Number of vehicles 115 >1,000 destinations 31 31 TUI TUIGROUP GROUP | |May May2018
Slide 32: Sales & Marketing
SALES & MARKETING 32 TUI GROUP | May 2018 Factbook
Slide 33: Sales & Marketing Key figures by Source Markets
Sales & Marketing Key figures by Source Markets Key figures FY17 Northern Region Central Region Western Region Total Source Markets Customers (000)1 7,391 7,151 5,642 20,184 External Turnover (€m) 6,602 6,039 3,502 16,143 Underlying EBITA (€m) 346 712 109 526 EBITA margin (%) 5.2% 1.2%2 3.1% 3.3% Di
Slide 34: Aircraft Commitments by Financing Type
Aircraft Commitments by Financing Type Operating Lease Finance Lease Owned Held for Sale Total As at 30 September 2017 126 17 8 1 152 Order book financing 2 2 - - 4 External Lessor deliveries - - - - - External Lessor returns (4) - - - (4) Purchase of Leased Aircraft (2) - 2 - - Disposal of Owned Ai
Slide 35: Aircraft order book deliveries – FY18 to FY23
Aircraft order book deliveries – FY18 to FY23 H2 FY18 FY19 FY20 FY21 FY22 FY23 B737-MAX 2 18 17 13 12 7 B787-9 1 - 2 - - - Firm order book deliveries 2018-2023 3 18 19 13 12 7 Financial Years (FY) ending 30 September; figures correct as at 31 March 2018 Supplementary to the above firm orders, TUI Gr