TUI AG · XETR:TUI1
TUI — Investor Presentation (December 2019)
42 slides from TUI's investor presentation, December 2019
Slide 1: TUI Group Factbook December 2019
TUI Group Factbook December 2019
Slide 2: TUI Group - Reasons to Invest & Business Model
TUI GROUP - REASONS TO INVEST & BUSINESS MODEL TUI GROUP | Factbook | December 2019
Slide 3: Attractive TUI investment case – three reasons to invest
Attractive TUI investment case – three reasons to invest 1 • Market leader in growing tourism market • Own customer end to end: Markets & Airlines, Hotels, Cruises, Destination Experiences STRONG • Differentiated product offering and strong customer base STRATEGIC POSITION • Driving Holiday Experien
Slide 4: Our business model: Integrated & product-focused holiday provider
1 Our business model: Integrated & product-focused holiday provider with over 70% Holiday Experiences earnings Markets & Airlines – ~30% EBITA HOLIDAY EXPERIENCES – ~70% EBITA INTEGRATION BENEFITS Rest Own & Committed Digitalisation, efficiency, diversification 24m customers1 Growth, diversification
Slide 5: Successful delivery of merger synergies and reinvestment of disposal proceeds
2 Successful delivery of merger synergies and reinvestment of disposal proceeds; future earnings growth driven by efficiency and digitalisation benefits STRONG GROWTH TRACK RECORD: FOUR STRATEGIC INITIATIVES TO GROW OUR INTEGRATED GROWTH FROM MERGER SYNERGIES AND CONTENT INVESTMENT BUSINESS MODEL 3r
Slide 6: Business model protects strong ROIC even in a challenging market environment
3 Business model protects strong ROIC even in a challenging market environment HOTELS CRUISE 14% 14% 23% 23% 13% 12% 20% 11% TUI GROUP 17% 17% FY15 FY16 FY17 FY181 FY191 24% 23% FY152 FY16 FY17 FY181 FY191 22% 22% 21%3 15.5% DESTINATION MARKETS & AIRLINES EXPERIENCES AND ALL OTHER 28%5 FY15 FY16 FY1
Slide 7: New capital allocation framework
3 New capital allocation framework Organic Core Excess Acquisitions growth dividend cash Investment into own Reliable core dividend: Accretive Return assets, JV & asset-light 30-40% of EAT1 M&A & portfolio to shareholders growth as well as digital with a dividend floor of optimisation platforms to a
Slide 8: TUI's updated dividend policy as part of the new capital allocation framework
3 TUI’s updated dividend policy as part of the new capital allocation framework Dividend policy • Core dividend payout of 30-40% of underlying EAT1 as of FY20+ (first payment under the • Introduction of a dividend floor of €0.35 per share new policy in Feb 2021) Capital allocation model facilitates
Slide 9: Group Financials
GROUP FINANCIALS TUI GROUP | Factbook | December 2019
Slide 10: Income Statement – Key Figures
Income Statement – Key Figures In €m FY19 FY181 ∆ YOY % YOY Turnover 18,928.1 18,468.7 459.5 +3% Underlying EBITDA 1,359.5 1,554.8 -195.3 -13% Depreciation -466.2 -412.0 -54.2 Underlying EBITA2 €1,186m pre 893.3 1,142.8 -249.5 -22% Boeing MAX Adjustments (SDI's and PPA) impact -124.9 -88.3 -36.6 EBI
Slide 11: Adjustments & Net Interest Result
Adjustments & Net Interest Result In €m FY19 FY18 Gain/(Loss) on disposals -12.0 2.1 Restructuring expense -52.0 -34.9 Purchase Price Allocation -38.8 -33.3 Other one-off items -22.1 -22.2 Total Adjustments -124.9 -88.3 In €m FY19 FY18 Debt related interest -125 -110 Non-debt related charge -39 -49
Slide 12: Earnings per share (continuing operations)
Earnings per share (continuing operations) Pro Pro Reported Reported In €m forma forma FY19 FY181 FY19 interest adjusted for €35m provision release FY19 FY181 EBITA 768 1,055 893 1,143 FY18 interest adjusted for €31m provision release Net interest expense -77 -89 -112 -120 EBT 691 967 781 1,023 Unde
Slide 13: Cash Flow & Movement in Net Cash
Cash Flow & Movement in Net Cash In €m FY19 FY181 EBITDA underlying 1,359.5 1,554.8 Adjustments -82.1 -60.5 EBITDA reported 1,277.4 1,494.3 Working capital -25.6 64.5 Other cash effects 138.4 75.0 At equity income -297.5 -292.1 Dividends received from JVs and associates 244.6 222.7 Tax paid -117.5 -
Slide 14: Balance Sheet
Balance Sheet In €m 30 Sep 2019 30 Sep 20181 Non-current assets 11,957.4 10,650.8 Current assets 4,313.5 4,940.0 Assets 16,270.9 15,590.8 Subscribed capital 1,505.8 1,502.9 Capital and revenue reserves 1,948.1 2,137.9 Non-controlling interest 711.4 634.8 Equity 4,165.3 4,275.6 Non-current provisions
Slide 15: Gross Leverage Ratio FY19 and Target for FY20
Gross Leverage Ratio FY19 and Target for FY20 LEVERAGE RATIO FY19 DEVELOPMENT AND OUTLOOK • Current corporate credit ratings €m FY19 “Ba2/negative” from Gross debt 2,682 3.50x **2.7x if excluding Moody’s and to Bonds 298 MAX3** 3.25x “BB/negative” from S&P to Liabilities to banks 870 2.75x 3.00x 3.0
Slide 16: Key Sources of Funding 30 September 2019
Key Sources of Funding 30 September 2019 Instrument Issue Maturity Amount €m Interest % p.a. Revolving Credit Facility Sep 14 Jul 221 1,7502 E/L +1.403 Senior Notes Oct 16 Oct 21 300 2.125 Schuldschein Jun 18 Jul 23 - Jul 28 4254 1.755 Finance leases Various Various 1,495 Various 1 Last extension in
Slide 17: ROIC and Economic Value Added methodology
ROIC and Economic Value Added methodology In €m Notes to ARA FY19 FY181 Equity 4,165.3 4,275.6 Subscribed capital (25) 1,505.8 1,502.9 Capital reserves (26) 4,207.5 4,200.5 Revenue reserves (27) -2,259.4 -2,062.6 Non-controlling interest (29) 711.4 634.8 Plus interest bearing financial liability ite
Slide 18: Hotels & Resorts
HOTELS & RESORTS 18 TUI GROUP | Factbook | December 2019
Slide 19: Hotels & Resorts Summary FY19
Hotels & Resorts Summary FY19 HOTEL BEDS BY REGION (%) Key Facts FY19 21% Caribbean 29% Western Med. Total Turnover (€m) 1,512 Total Eastern Med. 262,644 North Africa o/w Turnover 3rd party (€m) 660 9% 23% Other Underlying EBITDA (€m) 563 18% Underlying EBITA (€m) 452 o/w Equity result (€m) 97 FINAN
Slide 20: Hotels & Resorts Summary by brand
Hotels & Resorts Summary by brand Key figures FY19 Total Turnover (€m) 415.1 103.1 - 660.0 Underlying EBITA (€m) 326.2 54.7 9.9 451.5 Capacity (k)1 18,056 3,333 4,379 42,094 Number of hotels2 992 23 32 354 Number of beds 90,460 13,927 30,080 262,644 AVERAGE OCCUPANCY3 % AVERAGE REVENUE PER BED4 € SE
Slide 21: Hotels & Resorts RIU – Key figures FY19
Hotels & Resorts RIU – Key figures FY19 RIU 100% view1 o/w RIUSA II o/w Riu Hotels Riu in Total In €m (fully consolidated) (consolidated at equity) TUI accounts Turnover 1,191 850 341 850 Underlying EBITA 401 283 118 326 EBITA Margin 34% 33% EAT 318 226 92 o/w EAT to TUI 156 113 43 156 ROIC (incl. G
Slide 22: Hotels & Resorts Robinson – Key figures FY19
Hotels & Resorts Robinson – Key figures FY19 (€M) Robinson FY19 FY182 In TUI accounts1 Total Turnover 257 213 Underlying EBITA 55 42 EBITA margin 21% 20% ROIC 11% 10% Robinson Club Sarigerme Park, Turkey HOTEL BEDS BY REGION (%) FINANCING STRUCTURE (%) 13% 17% 24% 28% Western Med. Management North A
Slide 23: Hotels & Resorts Blue Diamond – Key figures FY19
Hotels & Resorts Blue Diamond – Key figures FY19 (€M) Blue Diamond FY19 FY182 100% view1 Turnover 455 388 EBITA 73 70 EBITA margin 16% 18% EAT 20 38 o/w EAT to TUI (49%) 10 18 Blue Diamond Royalton Antigua NUMBER OF BEDS BY LOCATION (%) FINANCING STRUCTURE (%) 5% Cuba 6% Jamaica 9% Management St Luc
Slide 24: Hotels & Resorts investments: 70 new hotels since merger, lower capital intensity
Hotels & Resorts investments: 70 new hotels since merger, lower capital intensity PORTFOLIO DIVERSIFICATION DERISKED GROWTH • Predominantly lower capital intensity GermanyCroatia Bulgaria • Ownership in 365 days Dublin destinations/ where scarcity of New York Greece Portugal Spain Italy Turkey asset
Slide 25: Cruise
CRUISE 25 TUI GROUP | Factbook | December 2019
Slide 26: Cruises Summary by brand
Cruises Summary by brand Key figures FY19 MARELLA CRUISES Turnover (€m) - 660.6 305.2 Memo: TUI Cruises Turnover (€m) 1,445.4 - - Underlying EBITA (€m) 202.6 1 120.4 43.0 Passengers (k) 663 338 25 Fleet Size2 (Group Total 18) 7 6 5 Total Berths3 17,780 10,195 1,318 TUI CRUISES MARELLA CRUISES HAPAG-
Slide 27: Cruises TUI Cruises - Key figures FY19 – 100% View
Cruises TUI Cruises - Key figures FY19 – 100% View TUI Cruises 100% FY19 FY181 Var % Turnover 1,445 1,250 +16% Underlying EBITA 465 406 +15% EBITA Margin 32% 33% EAT (100% TUI) 405 363 +12% o/w TUI EAT (50%) 203 181 +12% ROIC 18% 18% ROE 56% 53% 1 PY reported adjusted for retrospective application o
Slide 28: TUI's cruise capacity growth financed through reinvestment and JV
TUI’s cruise capacity growth financed through disposal proceeds re-investment programme and off-balance sheet (JV) OFF-BALANCE SHEET FINANCING AS BRAND / OWNERSHIP FLEET DEVELOPMENT PREFERRED OPTION Off-balance sheet: JV Current fleet: Exit FY22 • Funded by JV Deliveries: • No CAPEX requirements for
Slide 29: Cruises TUI Cruises Fleet
Cruises TUI Cruises Fleet Mein Schiff Herz Mein Mein Mein Mein Mein Mein Mein New Build 1 New Build 2 (Prev MS2) Schiff 1 Schiff 2 Schiff 3 Schiff 4 Schiff 5 Schiff 6 Schiff 7 1,912 2,894 2,894 2,506 2,506 2,534 2,534 2,894 TBC TBC BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTH
Slide 30: Cruises Marella Cruises Fleet
Cruises Marella Cruises Fleet Marella Marella Marella Marella Marella Marella Celebration Dream Discovery Discovery 2 Explorer Explorer 2 1,262 1,533 1,830 1,832 1,924 1,814 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Finance Lease exp. Finance Lease exp. Wholly owned Wholly owned Wholly
Slide 31: Cruises Hapag-Lloyd Cruises Fleet
Cruises Hapag-Lloyd Cruises Fleet Europa Europa 2 Bremen Hanseatic Hanseatic Hanseatic nature inspiration spirit 4081 5161 164 230 230 230 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned OPERATING MODEL OPERATING MODEL OPERATING
Slide 32: Destination Experiences
DESTINATION EXPERIENCES 32 TUI GROUP | Factbook | December 2019
Slide 33: Destination Experiences Key figures FY19
Destination Experiences Key figures FY19 More than 9.7 9,500 million excursions sold colleagues >31 >16 million transfers million guests operated Number of Operating in vehicles 122 >2,000 destinations 33 TUI GROUP | Factbook | December 2019
Slide 34: Strategic expansion of our Destination Experiences business
Strategic expansion of our Destination Experiences business – Ticking all boxes: Musement acquisition complementary to Destination Management acquisition DIGITALISATION MORE PRODUCTS MORE GUESTS MORE DESTINATIONS TUI DX STRATEGY • End-to-end digital process: • Differentiation of excursion • TUI pack
Slide 35: Destination Experiences: Building scale – target 1m things to do
Destination Experiences: Building scale – target 1m “things to do” and attracting customers to extend TUI’s ecosystem • Strong strategic position 3RD PARTY CUSTOMER EXISTING CUSTOMER BASE – €150bn market, 7% growth, highly fragmented POTENTIAL (~350k suppliers), mostly offline – TUI existing custome
Slide 36: GDN-OTA
GDN-OTA TUI GROUP | Factbook | December 2019
Slide 37: GDN-OTA: Building scale based on competitive pricing
GDN-OTA: Building scale based on competitive pricing to enlarge TUI’s ecosystem NEW MARKETS MODEL GDN-OTA 250k run-rate Building scale 6 complementary markets1 today, more to come • Lean and efficient platform • New market segments: • Enlarge ecosystem Accommodation Initially run as customer acqui
Slide 38: GDN-OTA: opportunity to become the Amadeus for independent hotels
GDN-OTA: opportunity to become the “Amadeus” for independent hotels GDN-OTA STRONG VALUE PROPOSITION FOR INDEPENDENT HOTELS + Global metasearchers • 21m • High Strong distribution customers2 occupancy Full IT stack: Competition to global OTAs “Amadeus” for hotel sector + GDN-OTA • New Markets • Reac
Slide 39: Markets & Airlines
MARKETS & AIRLINES TUI GROUP | Factbook | December 2019
Slide 40: Markets & Airlines Key figures by Markets
Markets & Airlines Key figures by Markets Total Markets & Key figures FY19 Northern Region Central Region Western Region Airlines Customers (k)1 7,428 7,830 5,816 21,075 External Turnover (€m) 6,345 6,413 3,232 15,990 Underlying EBITA2 (€m) 57 102 -27 132 EBITA margin (%) 0.9 1.6 n/a 0.8 Direct Dist
Slide 41: Aircraft Commitments by Financing Type
Aircraft Commitments by Financing Type Operating Lease Finance Lease Owned Held for Sale Total As at 30 September 2018 124 20 10 - 154 Order book financing 5 5 1 - 11 External Lessor deliveries1 2 - - - 2 External Lessor returns (10) - - - (10) Disposals - - (2) - (2) Corsair Disposal (1) - (4) - (5
Slide 42: Aircraft order book deliveries – FY20 to FY24
Aircraft order book deliveries – FY20 to FY24 FY20 FY21 FY22 FY23 FY24 B737-MAX 18* 19* 16* 8 - B787-9 2 - - - - Firm order book deliveries 2019-2024 20 19 16 8 - Financial Years (FY) ending 30 September; figures correct as at 30 September 2019 Supplementary to the above firm orders, TUI Group has f