Tui Ag · XETR:TUI1
Tui — Q3 2015/16 Earnings Presentation
48 slides from Tui's earnings presentation, Aug 11, 2016
Slide 1: Q3 Results 2015/16
Q3 Results 2015/16 11 August 2016 Tulum, Mexico
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 Opening Remarks Fritz Joussen 2 Q3 Review Fritz Joussen 3 Financial Performance Horst Baier 4 Current Trading & Outlook Fritz Joussen 5 Appendix 3 TUI GROUP | Q3 2015/16 Results | 11 August 2016
Slide 4: Opening Remarks
Opening Remarks • Good performance in the quarter further demonstrating the resilience of our vertically integrated model. • Summer 2016 trading overall remains in line with our expectations with no apparent slowdown in UK bookings as a result of the EU referendum. • The disposal processes for Hotel
Slide 5: Strength of TUI Group strategic position
Strength of TUI Group strategic position • Differentiated product, based on exclusive content Resilience of demand • Importance of annual holiday • Trusted brand • Ability to remix capacity with own fleet and content Flexibility • Ability to adapt cruise itineraries • Strong long-term supplier relat
Slide 6: Q3 Review
Q3 Review Fritz Joussen 6 TUI GROUP | Q3 2015/16 Results | 11 August 2016
Slide 7: Review of Q3
Review of Q3 Brand turnover: €5.2bn • Turnover decline driven by earlier Easter timing and -4.9% /-1.2%* geopolitical events. Turnover: €4.6bn • 14.1%* improvement in underlying EBITA. -5.7% /-2.1%* • UK, Riu and Cruise continue to deliver a strong trading performance. Underlying EBITA: €180.0m +1.1
Slide 8: TUI Group Underlying EBITA Bridge Q3 2015/16
TUI Group Underlying EBITA Bridge Q3 2015/16 in €m 9 1 -12 15 -10 10 -11 Corporate streamlining €5m Occupancy improvements €4m 178 203 180 Q3 14/15 Underlying PY: Profit on PY: Merger Debt/finance Q3 15/16 Easter timing FX translation Q3 15/16 Continuing Ops trading disposal of Repatriation synergie
Slide 9: Source Markets
Source Markets Turnover and Earnings (€m) Bridge Underlying EBITA (€m) 4 -9 -6 7 Q3 15/16 Q3 14/15 % Turnover 3,843.3 4,071.3 -5.6 89 94 85 Underlying EBITA 84.9 88.9 -4.5 Q3 14/15 Northern Central Western Q3 15/16 FX Q3 15/16 Region Region Region pre FX translation Northern Region -€6m (+€1m exclud
Slide 10: Hotels & Resorts
Hotels & Resorts Turnover and Earnings (€m) Bridge Underlying EBITA (€m) 1 13 Q3 15/16 Q3 14/15 % -22 -2 Total Turnover 300.9 316.9 -5.0 Underlying EBITA 56.7 67.3 -15.8 67 59 57 o/w Equity result 10.9 10.0 9.0 Q3 14/15 Riu Robinson Other Q3 15/16 FX Q3 15/16 pre FX translation The prior year resu
Slide 11: Summer 2016 Hotel additions
Summer 2016 Hotel additions Hotels & Concept Hotels Robinson Masmavi Robinson Kyllini Beach Sensatori Dominican Republic • RIU Republica • Robinson • Robinson • Sensatori Dominican • RIU Sri Lanka Masmavi Kyllini Beach Dominican Republic Turkey Greece Republic • 501 rooms • 1,000 rooms • 570 rooms •
Slide 12: Cruises
Cruises Turnover and Earnings (€m) Bridge Underlying EBITA (€m) Q3 15/16 Q3 14/15 % 4 Turnover HL Cruises 71.3 63.8 11.8 6 Memo: TUI CruisesTurnover 181.4 147.7 22.8 29 Underlying EBITA 29.4 19.3 52.3 19 o/w EAT TUI Cruises* 25.8 19.5 32.3 Q3 14/15 TUI Cruises HL Cruises Q3 15/16 * TUI Cruises joint
Slide 13: Modernisation of UK Cruise fleet
Modernisation of UK Cruise fleet Acquisition of Legend of the Seas (LOTS) • Agreement to acquire LOTS from Royal Caribbean for delivery in fiscal Q3 2017. On sale since July 2016 as TUI Discovery 2. • The acquisition will further progress the modernisation and tonnage of the Thomson Cruises fleet. •
Slide 14: Growth of Cruise fleet
Growth of Cruise fleet Mein Mein Mein Mein Mein Mein Mein Mein Schiff 1 Schiff 2 Schiff 3 Schiff 4 Schiff 5 Schiff 6 Schiff 7 Schiff 8 Berths 1,924 1,924 2,500 2,500 2,500 2,500 2,860 2,860 Year of construction 1996 1997 2014 2015 2016 2017 2018 2019 MS1 and MS2 to replace 2 ships in UK fleet follow
Slide 15: Financial Performance
Financial Performance Horst Baier 15 TUI GROUP | Q3 2015/16 Results | 11 August 2016
Slide 16: Income Statement
Income Statement • Adjustments of €82m A reduction of €61m due to the lower merger related costs, includes PPA of €45m. In €m 9M 2015/16 9M 2014/15 Interest reduced to €115m • A reduction of €26m mainly due to the lower Turnover 11,390.0 11,488.1 convertible bond interest. Underlying EBITA -56.9 -10
Slide 17: TUI Group Underlying EBITA Bridge 9M 2015/16
TUI Group Underlying EBITA Bridge 9M 2015/16 in €m Corporate streamlining €15m Occupancy improvements €4m -42 Destination Services €5m -57 8 -105 5 -15 24 -10 10 26 9M 2014/15 Underlying PY: Profit on PY: Merger New financing Debt/finance 9M 2015/16 FX translation 9M 2015/16 Continuing trading dispo
Slide 18: Cash Flow
Cash Flow In €m 9M 2015/16 9M 2014/15* EBITA reported** -138.8 -248.1 Depreciation** 312.0 294.2 Working capital 1,143.6 881.5 Other cash effects 50.8 -123.8 At equity income** -101.7 -84.9 Dividends received from JVs and associates 39.6 9.1 Tax paid -160.4 -102.3 Interest (cash) -58.8 -67.4 Pension
Slide 19: Movement in Net Debt
Movement in Net Debt €m 30 Jun 2016 30 Jun 2015 Opening net (debt)/ cash as at 30 September -214 293 Movement in cash net of debt 193 -323 Disposal of shares in Money Market fund - 300 Foreign exchange movement 75 -174 Non cash movement in debt - Asset backed finance -337 -689 Non cash movement in d
Slide 20: FX and Fuel
FX and Fuel Summer Winter Summer Hedging 2016 2016/17 2017 Euro 95% 81% 50% US Dollars 95% 84% 59% Jet Fuel 95% 91% 77% Anticipate ~€100m adverse impact from FX translation on the full-year underlying EBITA result Hedging as at 5 August 2016 20 TUI GROUP | Q3 2015/16 Results | 11 August 2016
Slide 21: Current Trading & Outlook
Current Trading & Outlook Fritz Joussen 21 TUI GROUP | Q3 2015/16 Results | 11 August 2016
Slide 22: Summer 2016 and Winter 2016/17
Summer 2016 and Winter 2016/17 • Summer 2016 • Source Market programme 87% sold to date, revenue up 1%. • Continued strong performance in UK – revenue and bookings up 6%. • No apparent slow down in bookings as a result of the EU referendum. • Source Markets bookings excluding Turkey up 8% proving th
Slide 23: Outlook 2015/16 – Continuing operations basis
Outlook 2015/16* – Continuing operations basis €m 2014/15 2015/16 e Brand Turnover €21,590m Around 3% growth Turnover €19,018m Around 2% growth Underlying EBITA €1,001m At least 10% growth Adjustments €176m ~€160m Net Interest €182m ~€170m Net capex & €655m ~€750m investments Net debt €214m Broadly
Slide 24: Summary
Summary • We have delivered a good Q3 performance. • Summer 2016 trading overall remains in line with our expectations with no apparent slowdown as a result of the EU referendum. • Resilience of demand for our holidays, hotels and cruises. • Well positioned to deal with the changing geopolitical and
Slide 25: Appendix
Appendix 25 TUI GROUP | Q3 2015/16 Results | 11 August 2016
Slide 26: 2015/16 Q3 Turnover by Segment
2015/16 Q3 Turnover by Segment (excludes intra-group turnover)* Change ex In €m Q3 2015/16 Q3 2014/15 Change FX FX Northern Region 1,761.5 1,904.8 -143.3 -141.4 -1.9 Central Region 1,347.2 1,406.1 -58.9 -5.8 -53.1 Western Region 734.6 760.4 -25.8 -0.1 -25.7 Source Markets 3,843.3 4,071.3 -228.0 -147
Slide 27: 2015/16 9M Turnover by Segment
2015/16 9M Turnover by Segment (excludes intra-group turnover)* Change ex In €m 9M 2015/16 9M 2014/15 Change FX FX Northern Region 4,285.6 4,305.9 -20.3 -103.4 83.1 Central Region 3,335.2 3,340.3 -5.1 -2.6 -2.5 Western Region 1,650.2 1,660.1 -9.9 0.1 -10.0 Source Markets 9,271.0 9,306.3 -35.3 -105.9
Slide 28: 2015/16 Turnover by Segment (restated)
2015/16 Turnover by Segment (restated for continuing operations)* In €m Q1 2015/6 Q2 2015/16 Q3 2015/16 9M 2015/16 Northern Region 1,269.3 1,254.8 1,761.5 4,285.6 Central Region 1,089.8 898.2 1,347.2 3,335.2 Western Region 486.9 428.7 734.6 1,650.2 Source Markets 2,846.0 2,581.7 3,843.3 9,271.0 Riu
Slide 29: 2014/15 Turnover by Segment (restated)
2014/15 Turnover by Segment (restated for continuing operations)* In €m Q1 2014/15 Q2 2014/15 Q3 2014/15 Q4 2014/15 FY 2014/15 Northern Region 1,167.0 1,234.1 1,904.8 3,042.5 7,348.4 Central Region 1,058.1 876.0 1,406.1 2,260.6 5,600.8 Western Region 487.3 412.4 760.4 1,186.9 2,847.0 Source Markets
Slide 30: 2015/16 Q3 Underlying EBITA by Segment
2015/16 Q3 Underlying EBITA by Segment* Change ex In €m Q3 2015/16 Q3 2014/15 Change FX FX Northern Region 88.1 103.3 -15.2 -9.0 -6.2 Central Region 3.3 -4.2 7.5 - 7.5 Western Region -6.5 -10.2 3.7 - 3.7 Source Markets 84.9 88.9 -4.0 -9.0 5.0 Riu 64.6 56.6 8.0 -4.8 12.8 Robinson 6.0 4.7 1.3 0.1 1.2
Slide 31: 2015/16 9M Underlying EBITA by Segment
2015/16 9M Underlying EBITA by Segment* Change ex In €m 9M 2015/16 9M 2014/15 Change FX FX Northern Region -11.3 8.1 -19.4 -13.4 -6.0 Central Region -106.5 -97.9 -8.6 0.2 -8.8 Western Region -82.2 -71.1 -11.1 - -11.1 Source Markets -200.0 -160.9 -39.1 -13.2 -25.9 Riu 218.2 170.4 47.8 -8.0 55.8 Robin
Slide 32: 2015/16 Underlying EBITA by segment (restated)
2015/16 Underlying EBITA by segment (restated for continuing operations)* In €m Q1 2015/16 Q2 2015/16 Q3 2015/16 9M 2015/16 Northern Region -35.6 -63.8 88.1 -11.3 Central Region -26.2 -83.6 3.3 -106.5 Western Region -27.6 -48.1 -6.5 -82.2 Source Markets -89.4 -195.5 84.9 -200.0 Riu 59.2 94.4 64.6 21
Slide 33: 2014/15 Underlying EBITA by segment (restated)
2014/15 Underlying EBITA by segment (restated for continuing operations)* In €m Q1 2014/15 Q2 2014/15 Q3 2014/15 Q4 2014/15 FY 2014/15 Northern Region -47.6 -47.6 103.3 530.2 538.3 Central Region -20.3 -73.4 -4.2 201.4 103.5 Western Region -11.9 -49.0 -10.2 139.9 68.8 Source Markets -79.8 -170.0 88.
Slide 34: Adjustments
Adjustments €m 9M 2015/16 9M 2014/15 Restructuring expense -8 -42 Losses/gains on disposals -2 1 Other one-off items -27 -56 PPA -45 -46 Total Adjustments -82 -143 o/w merger-related -8 -35 34 TUI GROUP | Q3 2015/16 Results | 11 August 2016
Slide 35: Net Interest Result
Net Interest Result €m 9M 2015/16 9M 2014/15 Debt related interest -86 -103 Non-debt related charge -44 -49 Interest income 15 11 Net interest result -115 -141 o/w cash interest -59 -67 35 TUI GROUP | Q3 2015/16 Results | 11 August 2016
Slide 36: Net Financial Position
Net Financial Position €m 30 Jun 2016* 31 Mar 2016* 31 Dec 2015 30 Sep 2015 Financial liabilities 2,122 2,505 2,918 1,887 o/w non-current 1,838 2,282 2,693 1,654 o/w current 284 223 225 233 Cash 1,663 926 1,042 1,673 Net debt 459 1,579 1,876 214 * On Continuing operations basis. 36 TUI GROUP | Q3 20
Slide 37: Source Market KPIs Q3
Source Market KPIs* Q3 Direct Distribution Online Distribution Customers (000) 15/16 14/15 15/16 14/15 15/16 14/15 UK 93% 92% 59% 54% 1,745 1,664 Nordics 91% 91% 77% 73% 314 351 Germany** 46% 42% 14% 14% 1,672 1,853 Benelux 73% 68% 56% 50% 1,125 1,173 Total Source Markets *** 73% 69% 44% 40% 5,260 5
Slide 38: Source Market KPIs 9M
Source Market KPIs* 9M Direct Distribution Online Distribution Customers (000) 15/16 14/15 15/16 14/15 15/16 14/15 UK 92% 91% 58% 54% 3,284 3,168 Nordics 90% 90% 73% 70% 910 948 Germany** 45% 43% 14% 13% 3,751 3,974 Benelux 72% 69% 56% 52% 2,645 2,635 Total Source Markets *** 72% 70% 44% 41% 11,494
Slide 39: Source Markets KPIs Q3 2015/16
Source Markets KPIs Q3 2015/16 Customers Direct Distribution Online Underly. EBITA y-o-y (%) (`000) y-o-y (ppts) (%) y-o-y (ppts) (%) y-o-y (€m) (€m) Northern Region* 2 2,090 0 92 5 8621 -15 88 Central Region -9 1,810 5 52 1 17 7 3 Western Region* -4 1,360 4 70 4 51 4 -6 Source Markets -4 5,260 4 73
Slide 40: Hotels & Resorts KPIs Q3 2015/16
Hotels & Resorts KPIs Q3 2015/16 Capacity1 Revenue/bed2 Occupancy3 Underly. EBITA4 y-o-y (%) (`000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) 1 4,566 3 54.7 5 86 8 65 8 895 -3 82.3 -11 60 1 6 Other (incl former TUI -20 -14 Travel Hotels) TUI H&R (incl former -4 9,796 5 53.5 57 TUI Travel Hotels
Slide 41: Cruises KPIs Q3 2015/16
Cruises KPIs Q3 2015/16 Passenger cruise Average daily rate Occupancy Underly. EBITA days y-o-y (%) (´000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) 20 776 3 179 Flat 101 6 26* 3 88 7 546 -3 73 4 4 * Equity result 41 TUI GROUP | Q3 2015/16 Results | 11 August 2016
Slide 42: Source Markets Current Trading - Summer 2016
Source Markets Current Trading - Summer 2016 Current trading1 Programme Revenue2 Customers2 ASP2 y-o-y variation (%) sold UK 6 6 Flat -1 89% Nordics -9 -12 3 87% Germany -3 -3 1 86% Benelux -1 22 -3 85% Source Markets 1 0 0 Flat Flat 87% 1. These statistics are up to 31 July 2016 and are shown on a
Slide 43: Key Sources of Funding June 2016
Key Sources of Funding 30 June 2016 Interest % Instrument Issue Maturity Amount €m p.a.* Revolving Credit Facility Sep 14 Dec 20 1,750** 1.55 High Yield Bond Sep 14 Oct 19 300 4.5 Finance leases Various Various 1,258 Various *Upgrade of our rating by Moody’s has reduced our RCF interest margin from
Slide 44: Destination Update
Destination Update • Adverse travel advice in UK, Belgium and Netherlands still in place Tunisia • TUI has 11 leased hotels – most have been temporarily closed • Tour operator charter capacity remixed for Summer 2016 • Adverse travel advice to Sharm el Sheik airport from all major source markets Egy
Slide 45: Aircraft order book deliveries – FY 2016 to FY 2021
Aircraft order book deliveries – FY 2016 to FY 2021 15/16 16/17 17/18 18/19 19/20 20/21 B737 NG - - - - - - B737-MAX - - 5 18 18 12 B787-8 - - - - - - B787-9 1 1 2 - - - Firm order book deliveries 2016-2021 1 1 7 18 18 12 Financial Years (FY) ending 30 September; figures correct as at 31 July 2016,
Slide 46: Aircraft Commitments by Financing Type
Aircraft Commitments by Financing Type Operating Lease* Finance Lease Owned Total As at 30 September 2015 124 15 8 147 Order book financing - 1 - 1 External Lessor deliveries 6 - - 6 External Lessor Returns (5) - - (5) As at 30 June 2016 125 16 8 149 * Includes aircraft leased from and operated on b
Slide 47: Financial Calendar
Financial Calendar 2016 & 2017 28 September 2016 Pre-close trading update 8 December 2016 Annual Report for financial year 2015/16 14 February 2017 Q1 Report and Annual General Meeting 29 March 2017 Pre-close trading update 47 TUI GROUP | Q3 2015/16 Results | 11 August 2016
Slide 48: Contact
Contact: ANALYST & INVESTOR ENQUIRIES Andy Long, Director of Investor Relations Tel: +44 1293 645831 Contacts for Analysts and Investors in UK, Ireland and Americas Sarah Coomes, Head of Investor Relations Tel: +44 1293 645827 Hazel Newell, Investor Relations Manager Tel: +44 1293 645823 Jacqui Smit