TUI AG · XETR:TUI1
TUI — FY2023 Earnings Presentation
69 slides from TUI's earnings presentation, January 2024
Slide 1: TUI Group Factbook FY23
TUI GROUP FACTBOOK FY23
Slide 2: Table of Content
TABLE OF CONTENT 1 Business Overview & Strategy ➤ 2 Group Financials ➤ 3 FY24 Guidance & Modelling ➤ 4 Hotels & Resorts ➤ 5 Cruises ➤ 6 TUI Musement ➤ 7 Markets & Airlines ➤ 2
Slide 3: Business Overview & Strategy
BUSINESS OVERVIEW & STRATEGY Back to Table of Content ➤
Slide 4: 4
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Slide 5: TUI Group at a glance - FY23
TUI Group at a glance - FY23 TUI GROUP HOLIDAY EXPERIENCES (Und. EBIT) ~80% 19m Customers €549m Leading leisure hotel and club brands around the world; investments, operations, ownership €20.7bn Revenue €236m Leading German & UK cruise brands €36m Tours, activities and service provider in €977m Und.
Slide 6: Our Strategic Priorities
Our Strategic Priorities Grow New New products market share customers Central Customer Ecosystem Strong focus on quality & differentiation Sustainability as opportunity Winning team 6
Slide 7: TUI integrated business model will unlock significant value
TUI integrated business model will unlock significant value MORE CUSTOMERS SHARE OF WALLET DISTRIBUTION COST CENTRAL CUSTOMER ECOSYSTEM BRAND CRM Hotels, Cruises, Packages, Experiences, € Components, Transfers & SELLING PLA LOYALTY NE Ancillaries Customer Lifetime Tours TF O Value ORM APP / 7
Slide 8: Grow market share – Broadening the TUI funnel
Grow market share – Broadening the TUI funnel Attracting existing & new customers with new products… • Integrated business model with differentiated product and service offering along the whole value chain • Strong brand reputation with double diversification across source markets and destinations •
Slide 9: TUI is becoming a growing, scalable and global tourism business
TUI is becoming a growing, scalable and global tourism business with ambitious profitability targets Global Travel & Tourism market set for growth above GDP1 TUI of tomorrow will unlock significant value by rollout of the global platform thus capturing the customer lifetime value Strong progress wit
Slide 10: Travel & Tourism market set for growth above GDP
Travel & Tourism market set for growth above GDP GLOBAL INBOUND ARRIVALS (# trips, billions) Growth 5% 1.8 1.5 1.5 Recovery 1.3 Covid impact 2019 2023 2028 10 Source: Inbound arrivals per Euromonitor Travel, October 2023; Mid-term real GDP forecast per IMF
Slide 11: TUI well positioned to capture market growth opportunities
TUI well positioned to capture market growth opportunities with consumers continuing to prioritise holidays Market Growth1 Travel is a Mega Trend HOTELS >5% Favourable demographic supported by high disposable income and longevity CRUISE Experiences – the new lifestyle & global trend in >5% travel TO
Slide 12: The TUI of tomorrow will unlock significant value
The TUI of tomorrow will unlock significant value TUI of today Operational excellence & transformation TUI of tomorrow Large diversified customer 1 More market share, base & strong Wholesale pax Grow component products sales & new customers profitable growth position & more resilience Unique & diffe
Slide 13: More market share with new products tapping new customer segments
More market share with new products tapping new customer segments NEW PRODUCTS NEW CUSTOMERS • Dynamic Packaging • Tours • Smart Tanners • Travelistas Building • Ancillaries • Accommodation-Only • Home & Aways Blocks • Energised Adventurers • Flight-Only • Car Rentals • Senior Service ➢ Leveraging o
Slide 14: New customers – extending TUI's appeal in existing & untapped segments
New customers – extending TUI’s appeal in existing & untapped customer segments with new products • TUI has a strong market share in the TUI Heartland TUI Future traditional Heartland segments • The traditional Heartland products Smart tanners form a smaller proportion of the total Deal-driven, leis
Slide 15: Dynamic Packaging growing in popularity with our customers
Dynamic Packaging growing in popularity with our customers What is Dynamic Packaging? Dynamic package pax (in m) At least one product of the Mid-term package holiday dynamically low double-digit sourced: CAGR 1 Full Dynamic = Flight + Accommodation dynamically sourced 2.5 or 2 Dynamic Flight = 1.6 F
Slide 16: Our unique and differentiated product portfolio drives margin & retention
Our unique and differentiated product portfolio drives margin & customer retention… HOTELS & RESORTS CRUISES TUI MUSEMENT 360 Hotels1 16 Cruise Ships >45k Experiences Leading provider of experiences, Strong Brands: Strong Brands: transfers & tours 16% ROIC 20% ROIC 31% Uptake Rate (RIUSA II 19% ROIC
Slide 17: Accelerating further growth via asset-right strategy
… and we are accelerating further growth via asset-right strategy HOTELS & RESORTS CRUISES TUI MUSEMENT • Value investments • JV growth • Drive customer growth • Asset-light growth, through • Expand source market • Growth through direct channels & Building • RIU JV distribution / broader marketing c
Slide 18: Strong Customer Satisfaction across the entire customer journey
Strong Customer Satisfaction across the entire customer journey FY24 YTD1 vs. PY • Strong NPS with CSAT improving across all consumer touchpoints driven by our continued focus on NPS 46 to 53 quality • Av. customer age 47 years for M&A segment & higher share of CSAT 8.4 to 8.5 customers in middle/hi
Slide 19: From many market platforms to ONE Global Platform
From many market platforms to ONE Global Platform used by all markets From many market-specific To one platform used platforms by all markets Benefits: • Direct connection to hotel and flight providers – further improve availability & margin Production & Sourcing One Production & Sourcing • Enables
Slide 20: Central Customer Ecosystem to drive group synergies
Central Customer Ecosystem to drive group synergies Historically, customer data held New Central Customer Database optimises Customer Lifetime Value separately with no customer data sharing Hotel & Resorts Cross- and upsell campaigns Cruises ✓ Leverage synergies across segments ✓ Acquire customer on
Slide 21: Growth via the App drives unpaid traffic
Growth via the App drives unpaid traffic, delivering distribution cost savings in the mid-term Enhance direct app selling 2% 5% Share of App Sales Mid Mid-term 50% 2019 48% 50% 2023 45% term mid-double digit CAGR Retail Online App 21 Share of Online and App % on a booked basis
Slide 22: One Central Customer Ecosystem accelerates cross- & upselling
One Central Customer Ecosystem accelerates cross- & upselling to capture the Customer Lifetime Value + + + & Example: Example: Musement customer US + + Package customer UK TUI PRODUCT PORTFOLIO Example: Example: Acco-Only customer NL + CENTRAL DATABASE + Rental car customer DE Cross-/Upselling Examp
Slide 23: Building the TUI of tomorrow – Transformation Roadmap
Building the TUI of tomorrow – more agile, more cost-efficient with higher speed to market… Our Transformation Roadmap • Commercialisation of growth measures (new products, new • Global roll-out of common customers) platforms • Shaping common platform FY23 FY24 FY25 FY26+ • Business ramp-up • Defini
Slide 24: TUI Sustainability Agenda
TUI Sustainability Agenda: Reduce our environmental footprint significantly, maximise the socio-economic impact of tourism Emission Reduction Roadmap 24% reduction airline1 27.5% reduction cruise2 46.2% reduction TUI Hotels & Resorts2 2030 People Planet Progress • Buy local first • Emission reductio
Slide 25: Sustainability progress highlights
-3.95% is the reduction in relative carbon emissions across our airlines in 2028. (kg/100 revenue passenger kilometer, base year 2022) 40 projects in 25 countries are currently run by the TUI Care Foundation. 7,000m? is the size of the photovoltaic plant of our headquarter TUI 25 Campus Hannover. 90
Slide 26: Let's unlock the value through transformation
Let’s unlock the value through transformation Improve profitability & Accelerate profitable Strengthen Balance Focus on Cash Flow margin growth Sheet OUR FY24 GUIDANCE1 OUR MID-TERM AMBITIONS1 ➢ Und. EBIT growth c. 7-10% CAGR ➢ Expect Und. EBIT to increase by at least 25% ➢ Target Net Leverage2 stro
Slide 27: Group Financials
GROUP FINANCIALS Back to Table of Content ➤ 27
Slide 28: Income Statement – Key Figures
Income Statement – Key Figures FY23 FY22 FY19 In €m (IFRS 16) IFRS 16 IFRS 16 IAS 17 Revenue 20,666 16,545 18,928 Underlying EBITDA 1,775 1,225 1,360 Depreciation & Amortisation -798 -816 -466 Underlying EBIT 977 409 893 Excl. Boeing Adjustments (SDI's and PPA) 22 -89 MAX cost -125 impact EBIT 999 3
Slide 29: Cash Flow
Cash Flow FY23 FY22 FY19 In €m (IFRS 16) IFRS 16 IFRS 16 IAS 17 Underlying EBITDA 1,775 1,225 1,360 Adjustments 83 -21 -82 Reported EBITDA 1,858 1,203 1,277 Working capital 308 1,270 -26 Other cash effects 39 5 138 At equity income -407 -101 -297 Dividends received (JV's, associates) 24 0 245 Tax pa
Slide 30: Balance Sheet
Balance Sheet In €bn 30 Sep 23 30 Sep 22 30 Sep 19 IFRS 16 IFRS 16 IAS 17 adj. Assets Goodwill 2,949 2,971 3,009 Other intangible assets / PPE 4,018 3,909 6,521 Right of use assets 2,763 2,971 - Other non-current assets 1,875 1,501 2,418 Non-current assets 11,606 11,352 11,948 Cash and cash equivale
Slide 31: Net Debt
Net Debt In €bn FY23 YE FY22 YE FY19 YE IFRS 16 IFRS 16 IAS 17 Financial liabilities -4.2 -5.3 -2.7 1 - Lease liabilities under IFRS16 -2.9 -3.2 - - Finance leases - - -1.5 - Senior Notes - - -0.3 - Bond with warrant 0.0 -0.1 - - Convertible Bond -0.5 -0.5 - - Liabilities to banks -0.7 -1.4 -0.9 - O
Slide 32: Gross & Net Leverage well below FY19 levels
Gross & Net Leverage well below FY19 levels Net Leverage Ratio Transitional targets In addition, SP I Excl. Boeing MAX cost impact 1.4x1 achieved repaid 2.8x 1.2x 1.6x FY232 FY22 FY193 • Net leverage below FY19 • Gross leverage well below 3.0x Gross Leverage Ratio • Rating upgraded to B2/B – clear I
Slide 33: Future capital allocation framework – our priorities
Future capital allocation framework – our priorities 1 Drive profitable growth • Grow profits & cash flow • Disciplined capital investments in asset right & JV growth 2 Balance sheet • Return / debt finance remaining KfW facility • Return to credit rating in line with pre-pandemic rating of BB/Ba le
Slide 34: Considerations for appropriate long-term listing arrangements
Considerations for appropriate long-term listing arrangements Current thoughts following shareholder discussions • TUI share: significant liquidity migration UK to GER Liquidity Centralisation • >75% of shares held1 & traded2 in Germany • TUI recently approached by shareholders: Simplification • Is
Slide 35: FY24 Guidance & Modelling Assumptions
FY24 Guidance & Modelling Assumptions Back to Table of Content ➤ 35
Slide 36: FY24 Guidance per 6 December 2023
FY24 Guidance per 6 December 2023 FY24e1 FY23 Revenue Expect Revenue to increase by at least 10% €20,666m Underlying EBIT Expect Und. EBIT to increase by at least 25% €977m ➢ Moderate growth Hotels & Resorts based on strong occupancy levels & footprint €549m ➢ Significant growth Cruise based on reco
Slide 37: FY24 Modelling Assumptions per December 2023
FY24 Modelling Assumptions per 6 December 2023 FY24e1 FY23 Adjustments (incl. PPA)2 -€25m to -€35m €22m Net Interest -€410m to -€440m -€448m Cash Interest -€330m to -€350m Cash -€381m Net Investments3 -€475m to -€525m -€494m Excluding -€75m impact from new additional RIU JV Leases & Asset Financing
Slide 38: Building Blocks of Growth
Building Blocks of Growth TUI GROUP HOTELS & RESORTS ➢ Balance growth opportunities and dividend potential ➢ Pipeline of 41 hotels ➢ Und. EBIT to grow by at ➢ C. 30% JV dividend pay-out least 25% FY24e2 CRUISES ➢ JV growth: ➢ Slight improvement of ➢+1 ship/2.9k berths in June 24 (c. €25-30m p.a.) Ne
Slide 39: Hotels & Resorts
HOTELS & RESORTS Back to Table of Content ➤ 39
Slide 40: Hotel & Resorts – Global, diversified leisure hotel portfolio
Hotel & Resorts – Global, diversified and market leading leisure hotel portfolio Strong footprint in Caribbean, Mediterranean and Africa 12 diversified brands offering a wide variety of 3*-5* products Multi-award winning 424 hotels1 ~350 leisure Multi-channel High occupancy of destinations distribut
Slide 41: Hotels & Resorts Summary
Hotels & Resorts Summary FY23 FY22 FY19 HOTEL BEDS BY REGION (%) Key figures IFRS 16 IFRS 16 IAS 17 (C-19) 5% Caribbean Western Med. Total Revenue (€m) 1,855 1,500 1,512 23% 31% Eastern Med. Total Africa & UAE o/w External Revenue (€m) 1,033 806 660 285,127 Other Underlying EBITDA (€m) 734 651 563 2
Slide 42: Hotels & Resorts Summary by brand FY22 & FY23
Hotels & Resorts Summary by brand FY22 & FY23 Key figures FY23 IFRS 16 Total External Revenue (€m)1 803.1 113.6 - 1,032.5 Underlying EBIT (€m) 378.9 53.2 30.9 549.5 Number of hotels 97 26 37 360 Number of beds 105,712 16,016 35,329 285,127 Capacity (k)2 13,751 3,749 6,036 38,521 Average occupancy3 %
Slide 43: Hotels & Resorts Summary by brand FY19
Hotels & Resorts Summary by brand FY19 Key figures FY19 IAS 17 Total External Revenue (€m) 1 415.1 103.1 - 660.0 Underlying EBIT (€m) 326.2 54.7 9.9 451.8 Number of hotels 99 23 32 354 Number of beds 90,460 13,927 30,080 262,644 Capacity (k)2 18,056 3,333 4,379 42,094 Average occupancy3 % 88 73 77 8
Slide 44: RIU – Key figures FY23 & FY22
Hotels & Resorts RIU – Key figures FY23 & FY22 o/w Riu Hotels Riu in FY23 RIU 100% view1 Total o/w RIUSA II FY23 HOTEL BEDS BY REGION (%) (consolidated at TUI accounts In €m IFRS 16 (fully consolidated) equity) 7% IFRS 16 Caribbean Total Revenue 1,183 1,183 - 1,183 19% Western Med. Underlying EBIT 3
Slide 45: RIU – Key figures FY19
Hotels & Resorts RIU – Key figures FY19 HOTEL BEDS BY REGION (%) 19% Western Med. Riu in 27% FY19 RIU 100% view1 Total o/w RIUSA II o/w Riu Hotels (consolidated at TUI accounts 5% Total Caribbean In €m IAS 17 (fully consolidated) equity) 90,460 IAS 17 North Africa Total Revenue 1,169 850 319 850 Oth
Slide 46: Robinson – Key figures
Hotels & Resorts Robinson – Key figures Robinson FY22 FY19 HOTEL BEDS BY REGION (%) FY23 In TUI accounts1 IFRS 16 IAS 17 Western Med. IFRS 16 In €m (C-19) 20% 25% Eastern Med. Total Revenue 328 293 257 Total North Africa 16,016 18% Other Underlying EBIT 53 54 55 37% EBIT Margin 16% 18% 21% ROIC 9% 9
Slide 47: Blue Diamond – Key figures
Hotels & Resorts Blue Diamond – Key figures Blue Diamond FY22 FY19 HOTEL BEDS BY LOCATION (%) 100% view1 FY23 IFRS 16 IAS 17 5% Cuba In €m IFRS 16 (C-19) 22% Jamaica Total Revenue 820 644 456 Total St Lucia 49% EBIT 152 128 73 35,329 Dom Rep 13% Mexico EBIT Margin 18% 20% 16% 4% 7% Other EAT 63 101
Slide 48: Cruises
CRUISES Back to Table of Content ➤ 48
Slide 49: Cruises – Market leading & award winning cruise brands
Cruises – Market leading & awarding winning cruise brands comprising the TUI Cruises JV & Marella • The feel-good fleet offers every • Hapag-Lloyd Cruises is the leading • Marella Cruises is the third largest cruise passenger the premium all-inclusive provider of 5-star expedition and luxury line in
Slide 50: Cruises Summary by brand FY23 & FY22
Cruises Summary by brand FY23 & FY22 Key figures FY23 IFRS 16 Mein Schiff Hapag-Lloyd Marella Cruises Revenue (€m)1 - - 656.0 Underlying EBIT (€m) 174.2 - 61.9 Passengers (k) 603 32 295 Fleet Size2 (Group Total 16) 6 5 5 Total Berths3 15,868 1,614 9,322 Occupancy % 95 72 96 Av Daily Rate (€ for TC/H
Slide 51: Cruises Summary by brand FY19
Cruises Summary by brand FY19 Key figures FY19 IAS 17 Mein Schiff Hapag-Lloyd Marella Cruises Revenue (€m)1 - 305.2 660.6 Underlying EBIT (€m) 202.6 43.0 120.5 Passengers (k) 663 25 338 Fleet Size2 (Group Total 18) 7 5 6 Total Berths3 17,780 1,318 10,195 Occupancy % 101 79 100 Av Daily Rate (€ for T
Slide 52: TUI Cruises – Key figures – 100% View
Cruises TUI Cruises – Key figures – 100% View FY22 FY19 TUI Cruises FY23 IFRS 16 IAS 17 100%1 IFRS 16 (C-19) Revenue 1,824 1,238 1,445 Underlying EBIT 459 193 465 EBIT Margin 25% 16% 32% EAT (100% TUI) 348 83 405 o/w TUI EAT (50%) 174 41 203 ROIC 12% 5% 18% ROE 40% 13% 56% • As of July 2020 (FY20 Q4
Slide 53: TUI's cruise fleet development
TUI's cruise fleet development Capacity growth financed off-balance sheet (JV) OFF-BALANCE SHEET FINANCING AS BRAND / OWNERSHIP FLEET DEVELOPMENT PREFERRED OPTION Off-balance sheet: Current fleet: TUI Cruises JV Deliveries: • Funded by JV FY24 Q3 FY25 Q1 FY26 • No CAPEX requirements for TUI Current
Slide 54: Mein Schiff Fleet
Cruises Mein Schiff Fleet Mein Mein Mein Mein Mein Mein Mein Mein Schiff New Build 3 Schiff 1 Schiff 2 Schiff 3 Schiff 4 Schiff 5 Schiff 6 Schiff 7 Relax 2,894 2,894 2,506 2,506 2,534 2,534 2,894 ~4,000 ~4,000 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Wholly owned W
Slide 55: Hapag-Lloyd Cruises Fleet
Cruises Hapag-Lloyd Cruises Fleet Europa Europa 2 Hanseatic Hanseatic Hanseatic nature inspiration spirit 4081 5161 230 230 230 BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATIN
Slide 56: Marella Cruises Fleet
Cruises Marella Cruises Fleet Marella Marella Marella Marella Marella Discovery Discovery 2 Explorer Explorer 2 Voyager (Formerly MS Herz) 1,836 1,836 1,924 1,814 1,912 BERTHS BERTHS BERTHS BERTHS BERTHS Finance Lease exp. Wholly owned Wholly owned Wholly owned Finance lease 2026 OPERATING MODEL OPE
Slide 57: TUI Musement
TUI MUSEMENT Back to Table of Content ➤
Slide 58: TUI Musement is a leading provider of experiences, transfers, and tours
TUI Musement is a leading provider of experiences, transfers, and tours across the world Cross-selling between 3 product categories Experiences Transfers Tours1 Excursions Shorex2 Activities Tickets Extensive portfolio of the most relevant Pre-defined & custom-made multi-day Shared and private trans
Slide 59: TUI Musement Key figure Summary
TUI Musement Key figure Summary FY23, FY22 & FY19 FY23 FY22 FY19 IFRS 16 IFRS 16 IAS 17 (C-19) Revenue (€m) 770 578 856 Underlying EBIT (€m) 36 24 56 No of guest transfers >28m >24m >31m No of experiences sold 9.4m 7.0m 9.7m No of operated destinations 111 124 122 No of experiences >45k 44 n.m. Onli
Slide 60: Markets & Airlines
MARKETS & AIRLINES Back to Table of Content ➤ 60
Slide 61: Markets & Airlines – Strongest brand in travel
Markets & Airlines – Strongest brand in travel & market leader in package distribution with extensive customer knowledge Customers per region (k) 19m customers NPS1 of 53 o/w 13% dynamic Premium quality products & service 13 Markets Leader in European tourism 7,360 Omni-channel 126 Aircraft 5% App,
Slide 62: Key figures by Markets FY23 & FY22
Markets & Airlines Key figures by Markets FY23 & FY22 Key figures FY23 (IFRS 16) Northern Total Markets & Central Region Western Region Region Airlines Customers (k)1 7,360 7,036 4,614 19,010 External Revenue (€m) 7,723 7,330 3,143 18,195 Underlying EBIT (€m) 71 88 81 241 EBIT margin (%) 0.9 1.2 2.6
Slide 63: Key figures by Markets FY19
Markets & Airlines Key figures by Markets FY19 Northern Total Markets & Key figures FY19 (IAS 17) Central Region Western Region Region Airlines Customers (k)1 7,428 7,830 5,816 21,075 FY19 includes impact of External Revenue (€m) 6,355 6,417 3,237 16,009 MAX grounding of -€293m Underlying EBIT (€m)2
Slide 64: Aircraft Commitments by Financing Type
Aircraft Commitments by Financing Type Operating Finance Owned Held for Sale Total Lease Lease As at 30 September 2022 103 27 4 - 134 Order book financing 2 - - - 2 External Lessor deliveries 5 - - - 5 External Lessor returns (13) - - - (13) Disposals - - (1) - (1) Reclassified 1 1 (2) - - As at 30
Slide 65: Aircraft order book deliveries – FY24 to FY28
Aircraft order book deliveries – FY24 to FY28 FY24 FY25 FY26 FY27 FY28 B737-MAX 8 24 14* - - Supplementary to the above firm orders, TUI Group has further aircraft options: FY24 FY25 FY26 FY27 FY28 B737-MAX - - 10 17 5 65 *TUI has the flexibility to defer delivery dates subject to appropriate notice
Slide 66: Appendix
APPENDIX Back to Table of Content ➤
Slide 67: TUI's business has undergone a transformation in recent years
TUI’s business has undergone a transformation in recent years… 2020- 2014 2015+ 2022 2023 2024+ Building 2021 First "normalised" Drive TUI Travel COVID-19 Recovery Holiday year post further Integration crisis Experiences pandemic growth 67
Slide 68: Financing facilities and support packages overview
Financing facilities and support packages overview per 30 September 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 2422 - Debt July 2025/
Slide 69: 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