TUI AG · XETR:TUI1
TUI — Q3 2016/17 Earnings Presentation
43 slides from TUI's earnings presentation, Aug 10, 2017
Slide 1: 2016/17 Q3 Results
2016/17 Q3 Results 10 AUGUST 2017 Robinson Club Maldives Huvadhu
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 2 3 Opening Remarks Performance Review & Financial Performance Fritz Joussen Current Trading & Outlook Fritz Joussen Horst Baier 4 5 Summary Appendix Fritz Joussen 3 TUI GROUP | Q3 2016/17 Results | 10 August 2017
Slide 4: Opening Remarks: Strong Q3 performance
Opening Remarks Strong Q3 performance • Strong revenue growth • Strong profit growth – underlying and reported UNDERLYING • Strong demand growth with customer volume TURNOVER €4.8bn EBITA €221.6m +7% YTD +12.6% /+16.4%1 +37.7% /+18.7%2 • Disposal of Travelopia and Hapag-Lloyd AG shares complete • On
Slide 5: Consistently delivering our content growth strategy
Consistently delivering our content growth strategy MARKETING & SALES HOTELS & RESORTS CRUISES IN SOURCE MARKETS • Strong growth • Continued success story • Germany and Nordic strong, partially offset by UK and Western • +16% in underlying EBITA on LFL • +54% in underlying EBITA on LFL basis1 basis1
Slide 6: Remark #1: TUI profitable on 9M underlying basis for the first time
Remark #1 TUI profitable on 9M underlying basis for the first time 9M UNDERLYING EBITA IN €M +€21m excluding • Strength of business model TUI fly sickness evident in delivery of TUI 15 3 Group‘s first profitable 9M -24 10 7 -3 result -45 48 • Growth strategy is delivering -101 margin enhancement, lo
Slide 7: Remark #2: Growth investments funded by disposal proceeds
Remark #2 Transformational growth investments funded entirely by disposal proceeds DISPOSAL PROCEEDS & REINVESTMENT • Post merger disposal programme Hapag-Lloyd AG Share holding concluded ~€0.4bn ~€230m • Divestments proceeds reinvested in ~€325m ~€0.4bn Travelopia higher yield businesses, leading t
Slide 8: Performance Review & Current Trading
PERFORMANCE REVIEW & CURRENT TRADING FRITZ JOUSSEN 8 TUI GROUP | Q3 2016/17 Results | 10 August 2017
Slide 9: Strong growth in Q3
Strong growth in Q3 Q3 UNDERLYING EBITA IN €M +18.7% -7 38 5 1 24 222 191 161 Q3 15/16 Underlying Trading Merger Aircraft Q3 16/17 LFL basis Easter timing FX Q3 16/17 Synergies Financing translation 18.7% GROWTH ACROSS THE BUSINESS ON LFL BASIS LFL basis at constant currency and excluding timing ben
Slide 10: Hotels & Resorts
Hotels & Resorts Good performances in Riu, Robinson & Blue Diamond TURNOVER AND EARNINGS (€M) Q3 16/17 Q3 15/16 % AVERAGE AVERAGE REVENUE Turnover 151.3 143.2 5.7 OCCUPANCY2 PER BED2 Underlying EBITA 77.7 57.2 35.8 74% €54.6 o/w Equity results 17.0 11.3 50.4 +3ppts +2% BRIDGE UNDERLYING EBITA (€M) 3
Slide 11: Cruises
Cruises Continues to deliver strong growth TURNOVER AND EARNINGS (€M) Q3 16/17 Q3 15/16 % NEW SHIPS AVERAGE Turnover 214.3 171.0 25.3 DAILY RATE Memo: TUI Cruises Turnover 260.7 181.1 43.9 Underlying EBITA 67.1 45.0 49.1 MEIN SCHIFF 6 +2% o/w EAT TUI Cruises* 39.6 25.8 53.6 Thomson Cruises Thomson C
Slide 12: Source Markets – Sales & Marketing
Source Markets – Sales & Marketing Improved performance in Germany and Nordic TURNOVER AND EARNINGS (€M) Q3 16/17 Q3 15/16 % Turnover 4,211.6 3,741.6 12.6 DIRECT Underlying EBITA 93.6 69.0 35.8 CUSTOMERS DISTRIBUTION 5.8M 73% +11% Flat BRIDGE UNDERLYING EBITA (€M) -9 29 17 -11 -1 ONLINE 94 69 74 DIS
Slide 13: Current Trading
Current Trading In line with expectations • Good demand for remainder of the season – 88% sold, bookings up GOOD DEMAND FOR S17 PROGRAMME SUMMER +4% and average selling price up +5% 2017 • Growth driven by Greece, Bulgaria, Croatia, Italy, Cape Verde and Source Markets S17 Top 5 Destinations Baleari
Slide 14: Financial Performance & Outlook
FINANCIAL PERFORMANCE & OUTLOOK HORST BAIER 14 TUI GROUP | Q3 2016/17 Results | 10 August 2017
Slide 15: Income Statement
Income Statement In €m 9M 16/17 9M 15/16 Turnover 11,129.2 10,389.3 Underlying EBITA 7.3 -45.5 Adjustments (SDI's and PPA) -59.0 -58.5 INTEREST Reduced by €24m, in line with reduced guidance interest for full-year EBITA -51.7 -104.0 Net interest expense -91.0 -114.7 HAPAG-LLOYD AG Hapag-Lloyd AG 35.
Slide 16: Cash Flow
Cash Flow In €m 9M 16/17 9M 15/16* EBITA reported** -51.7 -104.0 IMPROVEMENT IN WORKING CAPITAL +€0.2bn Depreciation** 301.3 271.1 Working capital 1,415.8 1,184.6 Other cash effects 4.4 17.2 OVERALL IMPROVEMENT IN 9M OPERATING CASH FLOW +€0.4bn At equity income** -159.9 -103.3 Dividends received fro
Slide 17: Outlook 2016/17
Outlook 2016/17* OUTLOOK GUIDANCE Metric 2015/16 2016/17e Turnover €17,154m In excess of 3% growth Restated Previous guidance ~3% growth Reiterated at least 10% growth Underlying EBITA €1,001m FX translation ~€10m negative Adjustments €102m ~€100m Net Interest €180m ~€140m Net Capex & Investments**
Slide 18: Summary
SUMMARY 18 TUI GROUP | Q3 2016/17 Results | 10 August 2017
Slide 19: Consistently delivering our growth strategy
Consistently delivering our growth strategy Consistent delivery against Reiterate 10% underlying EBITA guidance since merger CAGR to FY2018/191 Transforming business with Growth strategy update at full The world’s leading integrated disposal proceeds year results in December 2017 tourism business ba
Slide 20: Appendix
APPENDIX 20 TUI GROUP | Q3 2016/17 Results | 10 August 2017
Slide 21: Clear reinvestment strategy leading to strong profitability enhancement
Clear reinvestment strategy leading to strong profitability enhancement IN €M 230 325 55 Assumed MS1+2 purchase as cash transaction / final decision on transaction 600 1,900 structure/financing not yet taken 400 60 230 Discovery 2 Expedition Mein Schiff 1+2 Hotels Transat PDPs UK pension Total cruis
Slide 22: 2016/17 Q3 Turnover by Segment
2016/17 Q3 Turnover by Segment (excludes Intra-Group Turnover)* In €m Q3 16/17 Q3 15/16 Change FX Change ex FX Northern Region 1,727.8 1,660.7 67.1 -148.8 215.9 Central Region 1,557.5 1,346.3 211.2 3.8 207.4 Western Region 926.3 734.6 191.7 0.2 191.5 Source Markets 4,211.6 3,741.6 470.0 -144.8 614.8
Slide 23: 2016/17 9M Turnover by Segment
2016/17 9M Turnover by Segment (excludes Intra-Group Turnover)* In €m 9M 16/17 9M 15/16 Change FX Change ex FX Northern Region 3,932.1 3,989.9 -57.8 -415.0 357.2 Central Region 3,585.5 3,333.4 252.1 4.3 247.8 Western Region 2,040.3 1,650.2 390.1 0.4 389.7 Source Markets 9,557.9 8,973.5 584.4 -410.3
Slide 24: 2016/17 Quarterly Turnover by Segment
2016/17 Quarterly Turnover by Segment (excludes Intra-Group Turnover)* In €m Q1 16/17 Q2 16/17 Q3 16/17 9M 16/17 Northern Region 1,108.0 1,096.3 1,727.8 3,932.1 Central Region 1,140.9 887.1 1,557.5 3,585.5 Western Region 549.4 564.6 926.3 2,040.3 Source Markets 2,798.3 2,548.0 4,211.6 9,557.9 Riu 11
Slide 25: 2016/17 Q3 Underlying EBITA by Segment
2016/17 Q3 Underlying EBITA by Segment* In €m Q3 16/17 Q3 15/16 Change FX Change ex FX Northern Region 81.0 71.9 9.1 -9.5 18.6 Central Region 24.5 3.5 21.0 0.1 20.9 Western Region -11.9 -6.4 -5.5 0.2 -5.7 Source Markets 93.6 69.0 24.6 -9.2 33.8 Riu 74.7 64.6 10.1 0.3 9.8 Robinson 10.6 6.0 4.6 0.5 4.
Slide 26: 2016/17 9M Underlying EBITA by Segment
2016/17 9M Underlying EBITA by Segment* In €m 9M 16/17 9M 15/16 Change FX Change ex FX Northern Region -57.0 -49.0 -8.0 14.6 -22.6 Central Region -119.2 -107.1 -12.1 - -12.1 Western Region -114.2 -82.1 -32.1 - -32.1 Source Markets -290.4 -238.2 -52.2 14.6 -66.8 Riu 249.9 218.2 31.7 -4.6 36.3 Robinso
Slide 27: 2016/17 Quarterly Underlying EBITA by Segment
2016/17 Quarterly Underlying EBITA by Segment* In €m Q1 16/17 Q2 16/17 Q3 16/17 9M 16/17 Northern Region -29.4 -108.6 81.0 -57.0 Central Region -52.4 -91.3 24.5 -119.2 Western Region -47.7 -54.6 -11.9 -114.2 Source Markets -129.5 -254.5 93.6 -290.4 Riu 76.3 98.9 74.7 249.9 Robinson 1.7 -0.4 10.6 11.
Slide 28: 2015/16 Restated Turnover by Quarter
2015/16 Restated Turnover by Quarter (excludes Intra-Group Turnover)* In €m Q1 2015/16 Q2 2015/16 Q3 2015/16 Q4 2015/16 FY 2015/16 Northern Region 1,184.6 1,144.6 1,660.7 2,574.5 6,564.4 Central Region 1,089.4 897.7 1,346.3 2,229.5 5,562.9 Western Region 486.9 428.7 734.6 1,219.7 2,869.9 Source Mark
Slide 29: 2015/16 Restated Underlying EBITA by Quarter
2015/16 Restated Underlying EBITA by Quarter* In €m Q1 2015/16 Q2 2015/16 Q3 2015/16 Q4 2015/16 FY 2015/16 Northern Region -42.9 -78.0 71.9 432.1 383.1 Central Region -27.0 -83.6 3.5 192.2 85.1 Western Region -27.7 -48.0 -6.4 168.2 86.1 Source Markets -97.6 -209.6 69.0 792.5 554.3 Riu 59.2 94.4 64.6
Slide 30: Adjustments
Adjustments In €m 9M 16/17 9M 15/16 Restructuring expense -17.1 -7.5 Gain/(Loss) on disposals 1.4 -0.9 Other one-off items -21.1 -24.8 Purchase Price Allocation -22.2 -25.3 Total Adjustments -59.0 -58.5 30 TUI GROUP | Q3 2016/17 Results | 10 August 2017
Slide 31: Net Interest Result
Net Interest Result In €m 9M 16/17 9M 15/16 Debt related interest -81 -87 Non-debt related charge -22 -44 Interest income 12 16 Net interest result -91 -115 o/w cash interest -46 -59 31 TUI GROUP | Q3 2016/17 Results | 10 August 2017
Slide 32: Movement in Net Debt
Movement in Net Debt In €m 30 Jun 2017 30 Jun 2016 Opening net (debt)/ cash as at 30 32 -214 September (continuing ops basis) Movement in cash net of debt 25 245 Employee Benefit Trust -22 -51 Foreign exchange movement 1 74 Non cash movement in debt - Asset backed -145 -337 finance Other movement in
Slide 33: Net Financial Position, Pensions and Operating Leases
Net Financial Position, Pensions and Operating Leases In €m 30 Jun 2017 30 Jun 2016 Financial liabilities -1,992 -2,122 - Finance Leases -1,277 -1,258 - High Yield Bond - -294 - Senior Notes -296 - - Other liabilities -419 -570 Cash 2,226 1,663 Net cash (debt) 234 -459 - Net Pension Obligation -1,33
Slide 34: Hotels & Resorts KPIs Q3 2016/17
Hotels & Resorts KPIs Q3 2016/17 CAPACITY1 REVENUE/BED2 OCCUPANCY3 UNDERLY. EBITA4 y-o-y (%) (`000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) 5 4,777 7 58.7 2 88 10 75 7 960 Flat 82.5 -2 58 5 11 OTHER 6 -8 TUI H&R 7 10,519 2 54.6 3 74 21 78 1 Group owned or leased hotel beds multiplied by openi
Slide 35: Cruises KPIs Q3 2016/17
Cruises KPIs Q3 2016/17 PASSENGER CRUISE DAYS AVERAGE DAILY RATE OCCUPANCY UNDERLY. EBITA y-o-y (%) (`000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) 41 1,095 2 183 Flat 101 14 40* 42 753 6 163** 1 100 6 22 86 562 2 6 -1 3 Flat 73 * Equity result **Inclusive of transfers, flights and hotel costs
Slide 36: Source Markets KPIs Q3 2016/17
Source Markets KPIs Q3 2016/17 CUSTOMERS DIRECT DISTRIBUTION ONLINE UNDERLY. EBITA y-o-y (%) (`000) y-o-y (ppts) (%) y-o-y (ppts) (%) y-o-y (€m) (€m) 4 2,113 1 93 1 63 9 81 Northern Region* Central Region 14 2,054 1 49 4 19 21 25 Western Region 17 1,589 2 72 2 53 -6 -12 Source Markets 11 5,756 Flat
Slide 37: Source Market Q3 & 9M KPIs by country
Source Market Q3 & 9M KPIs by country1 Direct Distribution Online Distribution Customers (000) Q3 16/17 Q3 15/16 Q3 16/17 Q3 15/16 Q3 16/17 Q3 15/16 UK 93% 93% 60% 59% 1,790 1,712 Nordics 91% 91% 80% 77% 323 314 Germany2 47% 46% 19% 14% 1,861 1,672 Benelux 75% 73% 59% 56% 1,226 1,125 Total Source Ma
Slide 38: Source Markets Current Trading – Summer 2017
Source Markets Current Trading – Summer 2017 CURRENT TRADING1 REVENUE CUSTOMERS ASP PROGRAMME SOLD Y-O-Y VARIATION (%) 7 88% UK (excl. Thomson Cruises) 7 Flat Nordics 13 5 8 89% Germany 7 4 3 86% Benelux 3 7 3 90% Source Markets 8 4 5 88% 1These statistics are up to 30 July 2017 and shown on a const
Slide 39: Key Sources of Funding June 2017
Key Sources of Funding 30 June 2017 Instrument Issue Maturity Amount €m Interest % p.a. Revolving Credit Facility Sep 14 Jul 22 1,750** E/L +1.40* Senior Notes Oct 16 Oct 21 300 2.125 Finance leases Various Various 1,277 Various *Upgrade of our rating by S&P has reduced our RCF interest margin from
Slide 40: Aircraft Commitments by Financing Type
Aircraft Commitments by Financing Type Operating Lease* Finance Lease Owned Total As at 30 September 2016 125 16 8 149 Order book financing - 1 - 1 External Lessor deliveries 2 - - 2 External Lessor Returns (1) - - (1) As at 30 June 2017 126 17 8 151 * Includes aircraft leased from and operated on b
Slide 41: Aircraft order book deliveries – FY 2017 to FY 2021
Aircraft order book deliveries – FY 2017 to FY 2021 16/17 17/18 18/19 19/20 20/21 B737-MAX - 5 18 15 13 B787-9 1 2 - 2 - Firm order book deliveries 2017-2021 1 7 18 17 13 Financial Years (FY) ending 30 September; figures correct as at 30 June 2017 In addition to the above firm orders, TUI Group has
Slide 42: Financial Calendar 2017 & 2018
Financial Calendar 2017 & 2018 10 AUGUST 2017 28 SEPTEMBER 2017 13 DECEMBER 2017 13 FEBRUARY 2018 9M 2016/17 PRE-CLOSE ANNUAL REPORT Q1 2017/18 REPORT TRADING UPDATE FOR FINANCIAL REPORT & ANNUAL YEAR 2016/17 GENERAL MEETING 42 TUI GROUP | Q3 2016/17 Results | 10 August 2017
Slide 43: Contact
Contact ANALYST AND INVESTOR ENQUIRIES Peter Krüger, Director of Investor Relations and Special Projects Tel: +49 (0)511 566 1440 Contacts for Analysts and Investors in UK, Ireland and Americas Sarah Coomes, Head of Investor Relations Tel: +44 (0)1293 645 827 Hazel Chung, Investor Relations Manager