TUI AG · XETR:TUI1
TUI — H1 FY2022 Earnings Presentation
44 slides from TUI's earnings presentation, 2022
Slide 1: TUI Group Factbook FY22 H1
TUI GROUP FACTBOOK FY22 H1
Slide 2: Reasons to Invest & Business Overview
REASONS TO INVEST & BUSINESS OVERVIEW
Slide 3: TUI Group at a glance – normalised levels pre C-19
TUI Group at a glance – normalised levels pre C-19 TUI GROUP HOLIDAY EXPERIENCES (~70% EBIT2) 21m Customers1 €452m Leading leisure hotel and club brands around EBIT the world; investments, operations, ownership €366m €18.9bn Revenue EBIT Leading German & UK cruise brands €56m Tours, activities and s
Slide 4: Reasons to invest (1/2)
Reasons to invest (1/2) 1 2 3 Trusted brand providing great TUI is strategically well Holidays remain a high customer experiences positioned within growing priority – throughout our integrated tourism market (>GDP) & will “Experience is the new business model distinguishing benefit from strong C-19
Slide 5: Reasons to invest (2/2)
Reasons to invest (2/2) 4 5 6 A leading tourism group Accelerated digital pioneering sustainable Strengthening balance sheet & transformation & efficiency tourism creating positive operational recovery programme well underway change for people and communities TUI will benefit from key market positio
Slide 6: TUI's unique and integrated business model continues to be the foundation of our success
TUI‘s unique and integrated business model continues to be the foundation of our success INTEGRATED BUSINESS MODEL • Integrated business model with differentiated MARKETS & AIRLINES HOLIDAY EXPERIENCES product and service offering along the whole value chain 21m customers1 413 Hotels2 • Strong brand
Slide 7: TUI is managing the C-19 pandemic actively and is well prepared to benefit from a strong rebound
TUI is managing the C-19 pandemic actively and is well prepared to benefit from a strong rebound in the leisure industry TRAVEL AS A TOURISM IS A FORCE MEGA TREND FOR GOOD Tourism is a growth industry Sustainable transformation is an opportunity Tourism creates jobs, provides education & "Experience
Slide 8: Our priorities to transform TUI into a digital platform company
Our priorities to transform TUI into a digital platform company enables the delivery of our mid-term ambitions POCKETS OF FUTURE GROWTH Growth through asset- Execute Global Expand tours & activity Drive digitalisation & right financing Realignment segment dynamic packaging structures Programme LEADI
Slide 9: Global Realignment Programme
GLOBAL REALIGNMENT PROGRAMME 9
Slide 10: Global Realignment Programme on track to meet ~€400m p.a. cost reduction target
Global Realignment Programme on track to meet ~€400m p.a. cost reduction target PILLARS RECENT PROGRESS PHASING • ~7k reduction in FTEs to date already agreed REDUCE driving the majority of the cost savings P&L view COSTS ~€400m p.a / 100% • A major part of the cost reduction measures have been impl
Slide 11: Group Financials
GROUP FINANCIALS 11
Slide 12: Income Statement – Key Figures
Income Statement – Key Figures FY21 FY19 In €m IFRS 16 IAS 17 adj. Revenue 4,732 18,928 Underlying EBITDA -1,145 1,360 Depreciation & Amortisation -930 -466 Underlying EBIT -2,075 893 Adjustments (SDI's and PPA) 63 -125 EBIT -2,013 768 Net interest expense -449 -77 EBT -2,462 692 • FY21 significantl
Slide 13: Cash Flow & Movement in Net Debt
Cash Flow & Movement in Net Debt FY21 FY19 In €m IFRS 16 IAS 17 Underlying EBITDA -1,145 1,360 Adjustments 145 -82 Reported EBITDA -1,000 1,277 Working capital 823 -26 Other cash effects -108 138 At equity income 233 -297 Dividends received (JV's, associates) 14 245 Tax paid -9 -117 Interest (cash)
Slide 14: Gross Leverage Ratio
Gross Leverage Ratio LEVERAGE RATIO PAST LEVERAGE LEVEL ACHIEVED FY21 FY19 €m IFRS 16 IAS 17 Gross debt 6,550 2,682 3.50x **2.7x if to Bonds 641 298 excluding 3.25x MAX2** to Liabilities to banks 2,612 870 2.75x 3.00x 3.00x to Lease liabilities (IFRS16) 3,229 - 3.3x 2.50x 2.7x 3.0x to Finance Lease
Slide 15: Financing facilities and support packages overview
Financing facilities and support packages overview per 6 May 2022 Support Facility Instrument Utilisation €m Debt/equity Maturity date package # €m - 1,535 691m drawn Debt RCF Bank - 215 guarantee line - July 2024 (unsecured) facilities 1&2 2,4361 Fully undrawn Debt Schuldschein - 425 - Debt July 20
Slide 16: Balance Sheet
Balance Sheet 31 Mar 22 30 Sep 21 30 Sep 19 In €m IFRS 16 IFRS 16 IAS 17 adj. Non-current assets 11,189 11,222 11,948 Current assets 3,550 2,933 4,270 Assets 14,739 14,156 16,218 Subscribed capital 1,623 1,099 1,506 Capital and revenue reserves -3,191 -3,276 1,948 Silent Participation 1,091 1,091 -
Slide 17: Hotels & Resorts
HOTELS & RESORTS 17
Slide 18: Hotels & Resorts
Hotels & Resorts Summary FY21 FY19 HOTEL BEDS BY REGION (%) Key figures IFRS 16 IAS 17 7% (C-19) Caribbean 22% 30% Western Med. Total Revenue (€m) 667 1,512 Total Eastern Med. o/w External Revenue (€m) 440 660 275,773 Africa & UAE Other Underlying EBITDA (€m) 63 563 21% 20% Underlying EBIT (€m) -153
Slide 19: Hotels & Resorts – Summary by brand
Hotels & Resorts Summary by brand Key figures FY21 IFRS 16 (C-19)) Total External Revenue (€m) 286.3 67.4 - 440.5 Underlying EBIT (€m) -42.5 -6.2 -32.6 -152.7 Number of hotels 101 26 34 359 Number of beds 105,435 16,015 32,270 275,773 Capacity (k)1 10,604 2,289 4,671 27,070 Average occupancy2 % 55 5
Slide 20: Hotels & Resorts – RIU key figures FY21
Hotels & Resorts RIU – Key figures FY21 Total Riu in HOTEL BEDS BY REGION (%) RIU 100% view1 o/w RIUSA II o/w Riu Hotels IFRS 16 TUI accounts 11% In €m (fully consolidated) (consolidated at equity) (C-19) IFRS 16 25% Western Med. Total Revenue 344 99 344 17% Total 443 Caribbean 105,435 Underlying EB
Slide 21: Hotels & Resorts – RIU key figures FY19
Hotels & Resorts RIU – Key figures FY19 Riu in HOTEL BEDS BY REGION (%) RIU 100% view1 Total o/w RIUSA II o/w Riu Hotels TUI accounts In €m IAS 17 (fully consolidated) (consolidated at equity) IAS 17 19% Western Med. 27% Total Revenue 1,169 850 319 850 Caribbean 5% Total Underlying EBIT 397 283 114
Slide 22: Hotels & Resorts – Robinson key figures
Hotels & Resorts Robinson – Key figures Robinson FY21 HOTEL BEDS BY REGION (%) FY19 In TUI accounts1 IFRS 16 IAS 17 21% In €m (C-19) 24% Western Med. Total Revenue 168 257 Total Eastern Med. 18% 16,015 Underlying EBIT -6 55 North Africa 37% Other EBIT Margin n.m 21% ROIC n.m 11% FINANCING STRUCTURE
Slide 23: Hotels & Resorts – Blue Diamond key figures
Hotels & Resorts Blue Diamond – Key figures Blue Diamond FY21 HOTEL BEDS BY LOCATION (%) FY19 Cuba 100% view1 IFRS 16 5% IAS 17 Jamaica In €m (C-19) 14% 3% St Lucia Total Revenue 274 456 Total Dom Rep EBIT -30 73 14% 32,270 54% Mexico EBIT Margin n.m 16% 3% Antigua 7% EAT -67 19 Other o/w EAT to TUI
Slide 24: Cruise
CRUISE 24
Slide 25: Cruises – Summary by brand
Cruises Summary by brand Key figures FY21 IFRS 16 (C-19) MARELLA CRUISES Revenue (€m)1 - - 27.0 Underlying EBIT (€m) -146.7 - -130.8 Passengers (k) 177 14 23 Fleet Size2 (Group Total 16) 7 5 4 Total Berths3 17,780 1,614 7,410 Occupancy % 41 45 39 Av Daily Rate (€ for TC/HLC and £ for Marella) 132 51
Slide 26: TUI Cruises – Key figures – 100% View
Cruises TUI Cruises – Key figures – 100% View FY21 TUI Cruises FY19 IFRS 16 100%1 IAS 17 • As of July 2020 (FY20 Q4) TUI Cruises JV entity (C-19) includes the result of Hapag-Lloyd Cruises Revenue 319 1,445 Underlying EBIT -187 465 EBIT Margin n.m 32% EAT (100% TUI) -294 405 o/w TUI EAT (50%) -147 2
Slide 27: 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 Current fleet: Off-balance sheet: Mein Schiff Herz TUI Cruises JV Exit FY23 Deliveries: • Funded by JV FY24 FY24 FY26 • No CAPEX requirem
Slide 28: Cruises – Mein Schiff Fleet
Cruises Mein Schiff Fleet Mein Schiff Mein Mein Mein Mein Mein Mein Mein New Build 2 New Build 3 Herz (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 ~4,000 ~4,000 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS
Slide 29: Cruises – 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 30: Cruises – Marella Cruises Fleet
Cruises Marella Cruises Fleet Marella Marella Marella Marella Marella Discovery Discovery 2 Explorer Explorer 2 Voyager (Currently 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 or 2026 OPERATING MODEL
Slide 31: TUI Musement
TUI MUSEMENT
Slide 32: TUI Musement – Tours & activities segment positioned to drive growth
TUI Musement Tours & activities segment positioned to drive growth in 2022 > 215k excursions, activities, tickets and transfers available in >120 countries ATTRACTIVE GROWTH MARKET1 T&A Market (€bn) Back to +8% p.a. +8% p.a. 242 261 211 227 184 52 120 2018 2019 2020 2021e 2022e 2023e 2024e FY21 FY19
Slide 33: TUI Musement – Diverse portfolio of Things to do
TUI Musement Diverse portfolio of “Things to do“ in all relevant sun & beach and city destinations, whilst on holiday, during a city break, and at home HOLIDAYS >215k EXPERIENCES OFFERED EXPERIENCES FOR EVERYONE focused on high-margin products On holiday, on city breaks and at home Excursions & Day
Slide 34: Markets & Airlines
MARKETS & AIRLINES 34
Slide 35: Markets & Airlines – Key figures by Markets
Markets & Airlines Key figures by Markets Key figures FY21 (IFRS 16) (C-19) Northern Region Central Region Western Region Total Markets & Airlines Customers (k) 826 2,673 1,862 5,361 External Revenue (€m) 808 2,323 976 4,107 Underlying EBIT (€m) -966 -329 -177 -1,471 EBIT margin (%) n.m n.m n.m n.m
Slide 36: Aircraft Commitments by Financing Type
Aircraft Commitments by Financing Type Operating Finance Lease Lease Owned Held for Sale Total As at 30 September 2021 111 24 2 - 137 Order book financing 6 3 1 - 10 External Lessor deliveries - - - - - External Lessor returns (13) - - - (13) Disposals - - - - - Reclassified -1 -1 2 - - As at 30 Jun
Slide 37: Aircraft order book deliveries – FY22 to FY26
Aircraft order book deliveries – FY22 to FY26 FY22 FY23 FY24 FY25 FY26 B737-MAX 1 5 161 191 - B787-9 - 12 - - - Firm order book deliveries 2022-2026 1 6 16 19 - Figures correct as at 30 June 2022 1 TUI has the flexibility to defer delivery dates subject to appropriate notice and certain other condit
Slide 38: Sustainability
SUSTAINABILITY 38
Slide 39: TUI Group – ESG as a solid foundation for creating value
TUI Group – ESG as a solid foundation for creating value … 2015 … 2020 AGENDA 2050 ESG ACHIEVEMENTS We will innovate for a more sustainable future CARBON EFFICIENCY IMPROVEMENTS* GOVERNANCE for the tourism industry Integrity Passport and partner with others Supplier Code of Conduct to accelerate pro
Slide 40: Rhodes first sustainable destination in public private partnership
TUI leading sustainability Ranked No.1 + No.41 for carbon-efficiency Rhodes first sustainable destination in public private partnership 83% of Hotels & Resorts GSTC certified2 Most modern fleet 40 1 atmosfair Airline Index 2018 England and Germany | 2 Pre-crisis year 2019, % of TUI Hotels & Resorts
Slide 41: TUI Cruises
TUI Cruises Reduction of Food Waste: As part of a pilot project, TUI Cruises carried out a waste analysis on board Mein Schiff 4 and subsequently tested measures to reduce food waste. The measures saved 17% of food waste. Proven measures were subsequently rolled out across the entire fleet. 41
Slide 42: ROBINSON Club Apulia
ROBINSON Club Apulia Solar Power Plant: The ROBINSON Club Apulia installed 3,280 solar modules on a total area of 5,500 square metres. This makes the system one of the largest in Europe and generates 1,438 megawatt hours of electricity per year. Around 70% of the electricity generated is used for th
Slide 43: TUI Airlines
TUI Airlines Reduction of Carbon Emissions: TUI Group has invested in cutting edge aviation technology, such as the Boeing 737 MAX aircraft. On average the planes are 16% more fuel-efficient than the 737 NG aircraft they replace in the TUI Airline fleet. The aircraft’s engine and aerodynamic design
Slide 44: TUI Musement
TUI Musement TUI Collection: Through TUI Musement, our customers can discover new places and contribute to the local economy. The TUI Collection excursion portfolio offers high quality, great value, more sustainable tours and activities. All experiences meet TUI’s high standards for sustainability b