Tui Ag · XETR:TUI1
Tui — Q3 FY2023 Earnings Presentation
36 slides from Tui's earnings presentation, Aug 9, 2023
Slide 1: FY23 Q3/9M Results
FY23 Q3/9M RESULTS 9 August 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains a number of statements related to the future development of TUI. These statements are based both on assumptions and estimates. Although we are convinced that these future-related statements are realistic, we cannot guarantee them, for our assumpt
Slide 3: Agenda
AGENDA 1 FY23 Q3 Operational & Strategic Highlights 2 FY23 Q3/9M Results 3 FY23 Trading Update & Assumptions 4 Summary 5 Appendix
Slide 4: Q3 back to profitability, TUI on track to deliver on FY23 expectations
Q3 back to profitability, TUI on track to deliver on FY23 expectations Strong demand with 5.5m customers enjoying holidays in Q3, +0.4m vs. PY (95% of FY19 LFL levels), achieving airline load factors of 93% Q3 Revenue €5.3bn & Und. EBIT €169m, improving strongly by €0.9bn & €196m respectively vs. PY
Slide 5: HEX Und. EBIT up €69m vs. PY - Strong performance across all segments continues
HEX Und. EBIT up €69m vs. PY - Strong performance across all segments continues HOLIDAY EXPERIENCES Und. EBIT €190m (+€69m vs. PY) FY23 Q3 FY22 Q31 113 105 Q3 YoY Avail. Bed Nights: 10.9m +2% HOTELS & RESORTS Occupancy: 79% +5%pts Ave. Daily Rate2: €80 +9% 64 Q3 YoY Avail. Pax Days 2.3m -3% CRUISES
Slide 6: M&A +€149m vs. PY – Solid improvement supported by significant reduction in flight disruptions
M&A +€149m vs. PY – Solid improvement supported by significant reduction in flight disruptions MARKETS & AIRLINES Und. EBIT €6m (+€149m vs. PY) FY23 Q3 FY22 Q31 Q3 YoY +149 Departed Pax: 5.5m +9% 6 Load Factor: 93% +2%pts TOTAL M&A -75 PY flight disruption costs -€75m -143 NORTHERN REGION CENTRAL RE
Slide 7: Recap of strategic initiatives & progress
Recap of strategic initiatives & progress HOTELS & RESORTS MARKETS & AIRLINES • Leverage TUI hotel platform • Grow market share • Asset-right & JV growth – TUI Blue & RIU • Dynamic Packaging across markets • Growth through Hotel Fund Strategic priorities • Acco/Flight-only, Cars, Ancillaries & Tours
Slide 8: Update on Hotels & Resorts growth opportunities
Update on Hotels & Resorts growth opportunities Hotel Platform Asset-right & JV growth Update Hotel Fund • Platform for our strong international Hotel & • Post Covid-19, consolidating leisure hotels • Hotel Fund by HANSAINVEST focused on Club brands market offers ample attractive investments global
Slide 9: Strong focus on quality – Customer satisfaction strengthens across all touchpoints
Strong focus on quality – Customer satisfaction strengthens across all touchpoints High Customer Satisfaction (CSAT)1 TUI’s Healthy Customer Base Accomodation Service Flight TUI App Holiday Overall on Holiday Higher share of customers within upper middle/high income brackets, in particular within ag
Slide 10: New products into the TUI App further driving digital growth
New products into the TUI App further driving digital growth What we’ve done: FY23 Q3 App pax share of total pax sales Added more products – Dynamic pax, Acco/flight only +4%pts +3%pts Enhanced package bookflow – e.g. 9% personalised package recommendations 6% 5% 3% FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 I
Slide 11: Q3 Sustainability update
Q3 Sustainability update 2030 targets approved by SBTi • 24% reduction airline1 • 27.5% reduction cruise2 • 46.2% reduction TUI Hotels & Resorts3 • New agreement with Cape Verde: develop a more sustainable & diversified tourism sector, ambitious plans to expand solar, wind & hydrogen power • First u
Slide 12: Agenda
AGENDA 1 FY23 Q3 Operational & Strategic Highlights 2 FY23 Q3/9M Results 3 FY23 Trading Update & Assumptions 4 Summary 5 Appendix
Slide 13: Q3 achievements – Further operational & balance sheet recovery
Q3 achievements – Further operational & balance sheet recovery • Revenue €5.3bn (+€0.9bn) Strong Operational • Und. EBIT €169m (+€0.2bn) Improvement on PY • Net Debt €2.2bn (-€1.1bn) Further Balance Sheet • Successful extension of €2.7bn RCF to July 26 Progress • Rating upgrades to B2/B (Moody’s/S&P
Slide 14: Q3 result – Strong improvement vs. prior year
Q3 result – Strong improvement vs. prior year FY23 Q3 vs. FY22 Q3 UNDERLYING EBIT IN €M +196m 149 Holiday Experiences: +€69m -21 • Hotels & Resorts 10.9m Avail. bed nights, +0.2m YoY (+2%), occupancy 79%, +5%pts • Cruises 2.3m avail. passenger days, occupancy 98% to 73% 74 • TUI Musement 2.7m Experi
Slide 15: Income Statement
Income Statement Und. EBIT Q3 back to profitability In €m FY23 Q3 FY22 Q3 FY23 9M FY22 9M REVENUE • Q3: €5.3bn, +19% YoY; 5.5m Markets & Airlines pax, +9% YoY Revenue 5,286 4,433 12,189 8,931 Underlying EBITDA 367 181 382 -8 UNDERLYING EBIT(DA) • Q3 EBIT at €169m, +€196m with strong operational impr
Slide 16: Cash Flow Statement
Cash Flow Statement FY23 Q3: improved EBITDA & strong Working Capital performance In €m FY23 Q3 FY22 Q3 FY23 9M FY22 9M WORKING CAPITAL • Strong inflow from customer prepayments Underlying EBITDA 367 181 382 -8 Adjustments 79 -10 79 -7 • PY Q3 inflow: lower H1 business volume and catch-up effect Rep
Slide 17: Strong reduction in Net Debt by €1.1bn to €2.2bn
Strong reduction in Net Debt by €1.1bn to €2.2bn FY23 9M vs FY22 9M In €m FY23 9M FY22 9M IFRS 16 IFRS 16 YoY ∆ Financial Liabilities -4,390 -5,013 623 - Lease liabilities under IFRS16 -2,920 -3,231 312 - Bond with warrant - -52 52 - Convertible Bond -533 -522 -10 - Liabilities to banks -902 -1,116
Slide 18: Agenda
AGENDA 1 FY23 Q3 Operational & Strategic Highlights 2 FY23 Q3/9M Results 3 FY23 Trading Update & Assumptions 4 Summary 5 Appendix
Slide 19: Rhodes wildfires – 24/7 care to support TUI's affected guests
Rhodes wildfires – 24/7 care to support TUI’s affected guests Situation • ~8,000 guests evacuated from southern Rhodes - 80% of customers on the island unaffected • Rhodes accounts for ~5% of the S23 programme – ~34k customers affected (incl. cancellations) TUI’s response • Stopped all arrivals & bo
Slide 20: Markets & Airlines – S23 Bookings +6% vs. PY with 14% of the season to go
Markets & Airlines – S23 Bookings +6% vs. PY with 14% of the season to go, capacity expected to be close to normalised levels S23 Cumulative Net Bookings as % of S22 Vs S22 Vs S19 S23 LW S23 12.5m bookings, +4.3m since FY23 Q2 BOOKINGS1 +6% XX% LFL* +5% -5% 140% ASP +7% X% LFL* +9% +26% Summer heatw
Slide 21: Holiday Experiences – FY23 Q4 trading well on track
Holiday Experiences – FY23 Q4 trading well on track to deliver FY23 expectations Q1 Q2 Q3 Current Trading Q41 YoY YoY YoY HOTELS & RESORTS Avail. Bed Nights 8.5m -0.5% 7.0m +1% 10.9m +2% +2% Occupancy 75% +11%pts 83% +18%pts 79% +5%pts +1%pts Av. Daily Rate €86 +20% €100 +16% €80 +9% +5% CRUISES Ava
Slide 22: FY23 Modelling Assumptions per 9 August 2023
FY23 Modelling Assumptions per 9 August 2023 FY22 FY23e1 Revenue €16,545m Expect further strong increase in Revenue Underlying EBIT €409m Expect Und. EBIT to increase significantly Q1 Q2 Q3 9M Q4e1 HOTELS & RESORTS 72 78 113 262 Close to prior year (FY22 Q4 €291m) CRUISES 0 15 64 79 Significant incr
Slide 23: FY23 Modelling Assumptions per 9 August 2023
FY23 Modelling Assumptions per 9 August 2023 FY22 FY23e1 Adjustments -€10m to -€25m -€89m (incl. PPA)2 (Prior: -€40m to -€60m) -€450m to -€460m Net Interest3 -€466m (prior -€410m to -€430m) Net Investments4 -€316m -€450m to -€500m Excluding -€80m impact from new additional RIU JV Leases & €3,610m Br
Slide 24: Agenda
AGENDA 1 FY23 Q3 Operational & Strategic Highlights 2 FY23 Q3/9M Results 3 FY23 Trading Update & Assumptions 4 Summary 5 Appendix
Slide 25: Key focus on operational excellence & execution
Key focus on operational excellence & execution Clear mid-term strategy to capture future market growth potential Accelerate profitable Improve profitability & growth Strengthen Balance With new products & Focus on Cash Flow margin Sheet addressing more customer segments OUR 2025/26 MID-TERM AMBITIO
Slide 26: Appendix
APPENDIX
Slide 27: FY23 Q3 Revenue by Segment
FY23 Q3 Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)1 FY23 Q3 FY22 Q3 Change Change In €m FX IFRS 16 IFRS 16 incl FX ex FX Hotels & Resorts 258.2 259.5 -1.3 5.0 -6.3 - Riu 202.1 199.6 2.6 6.0 -3.4 - Robinson 28.4 37.5 -9.1 -0.1 -8.9 - Blue Diamond2 0.0 0.0 0.0 0.0 - - Other 2
Slide 28: FY23 Q3 Underlying EBITDA by Segment
FY23 Q3 Underlying EBITDA by Segment1 FY23 Q3 FY22 Q3 Change Change In €m FX IFRS 16 IFRS 16 incl FX ex FX Hotels & Resorts 158.1 147.9 10.3 -2.2 12.4 - Riu 107.0 99.8 7.2 2.6 4.6 - Robinson 18.4 14.3 4.1 -0.0 4.2 - Blue Diamond2 6.2 12.6 -6.4 -0.1 -6.3 - Other 26.5 21.2 5.3 -4.6 9.9 Cruises 82.8 20
Slide 29: FY23 Q3 Underlying EBIT by Segment
FY23 Q3 Underlying EBIT by Segment1 FY23 Q3 FY22 Q3 Change Change In €m FX IFRS 16 IFRS 16 incl FX ex FX Hotels & Resorts 112.5 104.9 7.7 -2.1 9.7 - Riu 81.3 77.5 3.8 2.2 1.6 - Robinson 9.3 5.4 3.9 0.0 3.9 - Blue Diamond2 6.2 12.6 -6.4 -0.1 -6.3 - Other 15.7 9.4 6.3 -4.1 10.5 Cruises 64.0 3.0 61.1 -
Slide 30: FY23 9M Revenue by Segment
FY23 9M Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)1 FY23 9M FY22 9M Change Change In €m FX IFRS 16 IFRS 16 incl FX ex FX Hotels & Resorts 687.4 638.8 48.6 30.3 18.3 - Riu 561.2 514.0 47.2 31.6 15.6 - Robinson 70.0 76.2 -6.1 0.1 -6.3 - Blue Diamond2 0.0 0.0 0.0 0.0 - - Other
Slide 31: FY23 9M Underlying EBITDA by Segment
FY23 9M Underlying EBITDA by Segment1 FY23 9M FY22 9M Change Change In €m FX IFRS 16 IFRS 16 incl FX ex FX Hotels & Resorts 403.4 322.8 80.6 -3.7 84.3 - Riu 310.0 252.5 57.6 13.0 44.5 - Robinson 33.4 23.6 9.8 0.5 9.3 - Blue Diamond2 37.9 38.3 -0.4 1.1 -1.5 - Other 22.2 8.4 13.7 -18.3 32.0 Cruises 13
Slide 32: FY23 9M Underlying EBIT by Segment
FY23 9M Underlying EBIT by Segment1 FY23 9M FY22 9M Change Change In €m FX IFRS 16 IFRS 16 incl FX ex FX Hotels & Resorts 262.2 189.7 72.5 -5.3 77.8 - Riu 231.7 183.6 48.1 10.2 37.9 - Robinson 6.1 -3.5 9.6 0.4 9.2 - Blue Diamond2 37.9 38.3 -0.4 1.1 -1.5 - Other -13.4 -28.6 15.3 -17.0 32.3 Cruises 79
Slide 33: Financing facilities and support packages overview per 30 June 2023
Financing facilities and support packages overview per 30 June 2023 Instrument Facility €m Utilisation €m Debt/equity Maturity date 1,454 Undrawn Debt Banks RCF (unsecured) Bank 190 Guarantee line - July 2026 facilities KfW RCF (unsecured) 1,0501 Undrawn Debt Schuldschein 4252 - Debt July 2023/25/28
Slide 34: Movement in Net Debt
Movement in Net Debt FY22 9M to FY23 9M In €m FY23 9M FY22 9M In €m FY23 9M FY22 9M IFRS 16 IFRS 16 YoY ∆ IFRS 16 IFRS 16 YoY ∆ Opening Net Debt as at 1 October -3,436 -4,954 1,518 Financial Liabilities -4,390 -5,013 623 FCF after Dividends 386 1,332 -947 - Lease liabilities under IFRS16 -2,920 -3,2
Slide 35: Movement in Net Debt
Movement in Net Debt FY23 H1 to FY23 9M In €m FY23 9M FY23 H1 In €m FY23 9M FY23 H1 IFRS 16 IFRS 16 QoQ ∆ IFRS 16 IFRS 16 QoQ ∆ Opening Net Debt as at 1 October -3,436 -3,436 - Financial Liabilities -4,390 -5,829 1,439 FCF after Dividends 386 -747 1,133 - Lease liabilities under IFRS16 -2,920 -2,835
Slide 36: Analyst and Investor Enquiries
ANALYST AND INVESTOR ENQUIRIES Nicola Gehrt, Group Director Investor Relations Tel: +49 (0)511 566 1435 Adrian Bell, Senior Investor Relations Manager Tel: +49 (0)511 566 2332 James Trimble, Investor Relations Manager Tel: +44 (0)1582 315 293 Stefan Keese, Investor Relations Manager Tel: +49 (0)511