TUI AG · XETR:TUI1
TUI — FY2018 Earnings Presentation
38 slides from TUI's earnings presentation, December 2018
Slide 1: TUI Group Factbook December 2018
TUI Group Factbook December 2018
Slide 2: TUI Group - Reasons to Invest & Business Model
TUI GROUP - REASONS TO INVEST & BUSINESS MODEL 2 TUI GROUP | December 2018 Factbook
Slide 3: What do we offer to our investors – 3 reasons to invest
What do we offer to our investors – 3 reasons to be invested / to invest • Global leading tourism group 1 • Holiday product provider with own distribution STRONG • Own customer end to end: Markets & Airlines, Hotels, Cruises, Destination Experiences STRATEGIC • Individualisation and targeted marketi
Slide 4: 4 years after the merger: TUI – one brand, superior strategic positioning
1 4 years after the merger: TUI – one brand, superior strategic positioning, diversified product-focused holiday provider with almost 70% Holiday Experience earnings Markets & Airlines – ~30% EBITA HOLIDAY EXPERIENCES – ~70% EBITA INTEGRATION BENEFITS Rest Own & Committed Digitalisation, efficiency,
Slide 5: Three waves driving earnings
2 Three waves driving earnings: Future earnings growth driven by reinvestment of disposal proceeds, digitalisation and efficiency benefits STRONG GROWTH TRACK RECORD: FUTURE GROWTH: MERGER SYNERGIES INVESTMENTS, DIGITALISATION & EFFICIENCY HIGHLIGHTS • 3 earnings waves, heading towards ≥10%2 third w
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 FY19: LAST YEAR OF DISPOSAL PROCEEDS REINVESTMENT CAPITAL ALLOCATION FRAMEWORK ~€0.4bn FY19 net capex & investments expected to Growth investments JV growth be in the range of • Reinvesting disposal proceeds
Slide 7: Hotels & Resorts investments: new hotels since merger, lower capital intensity
3 Hotels & Resorts investments: 44 new hotels since merger, lower capital intensity PORTFOLIO DIVERSIFICATION DERISKED GROWTH • Predominantly lower capital intensity Berlin Croatia Bulgaria • Ownership in 365 days Dublin destinations/ where scarcity of New York Greece Portugal Ibiza Italy Turkey ass
Slide 8: TUI's cruise capacity growth financed through disposal proceeds and off-balance sheet
3 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 • No CAPEX requirements for TUI Deliv
Slide 9: Business model strength continues to drive ROIC
Business model strength continues to drive ROIC1 HOTELS CRUISE • Delivering strong ROIC for TUI 14% 23% shareholders 13% 12% 20% • Hotels: predominantly lower 11% TUI GROUP 17% 17% capital intensity, JVs FY16 FY17 FY18 24% FY152 FY16 FY17 FY18 • Cruises: partially off balance FY15 23% 22% 22% sheet
Slide 10: Group Financials
GROUP FINANCIALS 10 TUI GROUP | December 2018 Factbook
Slide 11: Income Statement – Key Figures FY18 and FY17
Income Statement – Key Figures FY18 and FY17 In €m FY18 FY17 Turnover 19,523.9 18,535.0 Underlying EBITDA 1,563.9 1,541.7 Underlying EBITA 1,147.0 1,102.1 Adjustments -86.8 -75.6 EBITA 1,060.2 1,026.5 Interest result -88.7 -119.2 Hapag-Lloyd AG 0.0 172.4 EBT 971.5 1,079.7 Income Taxes -191.3 -168.8
Slide 12: Adjustments & Net Interest Result
Adjustments & Net Interest Result In €m FY18 FY17 Gain/(Loss) on disposals 2.1 2.2 Restructuring expense -34.9 -23.1 Purchase Price Allocation -31.8 -29.2 Other one-off items -22.2 -25.5 Total Adjustments -86.8 -75.6 In €m FY18 FY17 Debt related interest -110 -102 Non-debt related charge -49 -38 Int
Slide 13: Earnings per share (continuing operations)
Earnings per share (continuing operations) Pro Pro Reported Reported In €m forma forma* FY18 FY17 Adjusted for interest provision FY18 FY17 release of ~€31m attributable to EBITA 1,060 1,027 1,147 1,102 prior period Net interest expense -89 -119 -120 -119 HL AG book value adjustment and equity - - -
Slide 14: Cash Flow & Movement in Net Cash
Cash Flow & Movement in Net Cash In €m FY18 FY17 EBITA reported1 1,060.2 1,026.5 Depreciation1 438.3 464.4 Working capital 66.4 406.2 Other cash effects1 74.6 89.9 At equity income -297.7 -252.3 In €m 30 Sep 2018 30 Sep 2017 Dividends received from JVs and associates 222.7 118.2 Opening net cash as
Slide 15: Balance Sheet
Balance Sheet In €m 30 Sep 2018 30 Sep 2017 Non-current assets 10,682.1 9,867.6 Current assets 4,929.7 4,317.9 Assets 15,611.8 14,185.5 Subscribed capital 1,502.9 1,501.6 Capital and revenue reserves 2,195.2 1,438.1 Non-controlling interest 635.5 594.0 Equity 4,333.6 3,533.7 Non-current financial pr
Slide 16: Financial Ratios FY18 and Targets for FY19
Financial Ratios FY18 and Targets for FY19 LEVERAGE RATIO FY18 DEVELOPMENT AND OUTLOOK • Current corporate €m FY18 credit ratings Gross debt 2,443 FY19 Leverage Target 3.50x “Ba2/positive” from to Bonds 297 range 3.00x – 2.25x to Liabilities to banks 780 3.25x Moody’s and to Finance lease 1,343 2.75
Slide 17: Key Sources of Funding 30 September 2018
Key Sources of Funding 30 September 2018 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 1,343 Various Post balance sheet
Slide 18: ROIC and Value added methodology
ROIC and Value added methodology In €m Notes to ARA FY18 FY17 Equity 4,333.6 3,533.7 Subscribed capital (23) 1,502.9 1,501.6 Capital reserves (24) 4,200.5 4,195.0 Revenue reserves (25) - 2,005.3 - 2,756.9 Non-controlling interest (27) 635.5 594.0 Plus interest bearing financial liability items 3,516
Slide 19: Hotels & Resorts
HOTELS & RESORTS 19 TUI GROUP | December 2018 Factbook
Slide 20: Hotels & Resorts Summary FY18
Hotels & Resorts Summary FY18 HOTEL BEDS BY REGION (%) Key Facts FY18 8% Caribbean 29% Western Med. Total Turnover (€m) 1,390 19% Total Eastern Med. o/w Turnover 3rd party (€m) 607 241,207 North Africa Underlying EBITDA (€m) 524 22% Other 22% Underlying EBITA (€m) 426 o/w Equity result (€m) 92 FINAN
Slide 21: Hotels & Resorts Summary by brand
Hotels & Resorts Summary by brand Key figures FY18 Total Turnover (€m) 407.0 89.3 - 606.8 Underlying EBITA (€m) 390.3 41.8 23.9 425.7 Capacity (‘000)1 17,503 3,095 3,638 39,428 Number of hotels2 902 24 26 330 Number of beds 82,638 14,403 27,016 241,207 AVERAGE OCCUPANCY3 % AVERAGE REVENUE PER BED4 €
Slide 22: Hotels & Resorts RIU – Key figures FY18
Hotels & Resorts RIU – Key figures FY18 RIU 100% view1 o/w RIUSA II o/w Riu Hotels Riu in Total In €m (fully consolidated) (consolidated at equity) TUI accounts Turnover 1,159 844 316 844 Underlying EBITA 470 340 130 390 EBITA Margin 41% 40% EAT 268 161 107 o/w EAT to TUI2 126 76 50 126 ROIC (incl.
Slide 23: Hotels & Resorts Robinson – Key figures FY18
Hotels & Resorts Robinson – Key figures FY18 (€M) Robinson FY18 FY17 In TUI accounts1 Total Turnover 213 204 Underlying EBITA 42 39 EBITA margin 20% 19% ROIC 10% 11% Robinson Club Noonu, Maldives HOTEL BEDS BY REGION (%) FINANCING STRUCTURE (%) 27% 12% 27% Western Med. 21% Management Total North Afr
Slide 24: Hotels & Resorts Blue Diamond – Key figures FY18
Hotels & Resorts Blue Diamond – Key figures FY18 (€M) Blue Diamond FY18 FY17 100% view1 Turnover 410 360 EBITA 81 62 EBITA margin 20% 17% EAT 49 41 o/w EAT to TUI (49%) 24 20 Blue Diamond Royalton Riviera Cancun, Mexico NUMBER OF BEDS BY LOCATION (%) FINANCING STRUCTURE (%) 9% Cuba 17% Jamaica Manag
Slide 25: Cruise
CRUISE 25 TUI GROUP | December 2018 Factbook
Slide 26: Cruises Summary by brand
Cruises Summary by brand Key figures FY18 MARELLA CRUISES Turnover - 579.4 322.5 Memo: TUI Cruises Turnover 1,246.5 - - Underlying EBITA 181.31 106.5 36.2 Passengers (k) 532 327 28 Fleet Size (Group Total 16) 6 6 4 Total Berths 2 14,886 9,635 1,254 4 TUI CRUISES 5.2 MARELLA CRUISES HAPAG-LLOYD CRUIS
Slide 27: Cruises TUI Cruises - Key figures FY18 – 100% View
Cruises TUI Cruises - Key figures FY18 – 100% View TUI Cruises 100%1 FY18 FY17 % Turnover 1,247 1,053 18% Underlying EBITA 406 304 34% EBITA-Margin 33% 29% EAT (100% TUI) 363 272 33% o/w TUI EAT (50%) 181 136 33% ROIC 18% 16% ROE 53% 43% 1 Unaudited figures 27 TUI GROUP | December 2018 Factbook
Slide 28: Cruises TUI Cruises Fleet
Cruises TUI Cruises Fleet Mein Mein Schiff Herz Mein Mein Mein Mein New Mein Mein New Build 1 New Build 2 Schiff 1 (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 TBC TBC BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS B
Slide 29: Cruises Marella Cruises Fleet
Cruises Marella Cruises Fleet Marella Marella Marella Marella Marella Marella Explorer 2 Celebration Dream Discovery Discovery 2 Explorer (Currently SGE)1 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 Who
Slide 30: Cruises Hapag-Lloyd Cruises Fleet
Cruises Hapag-Lloyd Cruises Fleet Europa Europa 2 Bremen Hanseatic Hanseatic Hanseatic nature inspiration spirit 4081 5161 155 230 230 230 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned OPERATING MODEL OPERATING MODEL OPERATING
Slide 31: Destination Experiences
DESTINATION EXPERIENCES 31 TUI GROUP | December 2018 Factbook
Slide 32: Destination Experiences Key figures FY18
Destination Experiences (formerly Destination Services) Key figures FY181 More than 9,000 5.4 million excursions colleagues sold Handled >14 >28 7.8m million guests million transfers operated 24/7 contacts Number of Operating in vehicles 115 destinations 1 Contains unaudited figures and includes Des
Slide 33: Strategic expansion of Destination Experiences: Musement acquisition
Strategic expansion of our Destination Experiences business – Ticking all boxes: Musement acquisition complementary to recent HBG Destination Management acquisition DIGITALISATION MORE PRODUCTS MORE GUESTS MORE DESTINATIONS TUI DX STRATEGY • End-to-end digital process: • Differentiation of excursion
Slide 34: One CRM initiative as accelerator for Destination Experiences
TUI’s One CRM initiative as accelerator for our Destination Experiences business – now in even more destinations CUSTOMER BOOKING 4-6 MONTHS “EXCLUSIVE“ MARKETING PERIOD ARRIVAL IN DESTINATION First cross-selling One CRM to drive Destination Experiences cross-selling Range of Destination Experiences
Slide 35: Markets & Airlines
MARKETS & AIRLINES 35 TUI GROUP | December 2018 Factbook
Slide 36: Markets & Airlines Key figures by Markets
Markets & Airlines Key figures by Markets Total Markets & Key figures FY18 Northern Region Central Region Western Region Airlines Customers (000)1 7,566 7,707 5,854 21,127 External Turnover (€m) 6,855 6,564 3,577 16,996 Underlying EBITA (€m) 254 89 109 452 EBITA margin (%) 3.7 1.4 3.1 2.7 Direct Dis
Slide 37: 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 4 3 - - 7 External Lessor deliveries - - - - - External Lessor returns (4) - - - (4) Purchase of Leased Aircraft (2) - 2 - - Disposal of Owned Ai
Slide 38: Aircraft order book deliveries – FY18 to FY23
Aircraft order book deliveries – FY18 to FY23 FY19 FY20 FY21 FY22 FY23 B737-MAX 18 17 14 12 7 B787-9 - 2 - - - Firm order book deliveries 2019-2023 18 19 14 12 7 Financial Years (FY) ending 30 September; figures correct as at 30 September 2018 Supplementary to the above firm orders, TUI Group has fu