Tui Ag · XETR:TUI1
Tui — Investor Presentation (January 2022)
47 slides from Tui's investor presentation, January 2022
Slide 1: TUI Group Investor Presentation January 2022
TUI GROUP INVESTOR PRESENTATION January 2022
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: Business Overview
BUSINESS OVERVIEW TUI GROUP | Investor Presentation | January 2022
Slide 4: 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 €18.9bn Turnover €366m EBIT Leading German & UK cruise brands €893m EBIT / excl. MAX €1,1
Slide 5: 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 MARKETS & AIRLINES HOLIDAY EXPERIENCES 21m customers 414 Hotels1 • Integrated business model with differentiated product and service offering along the whole value chain 137 aircraft2 1
Slide 6: Recap – FY21 Highlights
RECAP – FY21 HIGHLIGHTS TUI GROUP | Investor Presentation | January 2022
Slide 7: FY21 has been a year with significant progress in operational recovery
FY21 has been a year with significant progress in terms of operational recovery… • Successful restart of operations – 5.4m guests departed in FY21 • Q4 Und. EBIT almost break-even, improving ~€570m vs. Q3 - Hotels & Resorts, Central & Western Regions delivering first positive EBITs since start of pa
Slide 8: Major progress in debt reduction towards gross leverage ratio of around 3x
… and major progress in debt reduction with important steps towards returning to a gross leverage ratio of around 3x • €2.2bn of refinancing achieved in less than 12 months after third support package (€1.8bn agreed in Dec 2020) • Prolongation of RCF tranches by a further 24 months – no major maturi
Slide 9: Solid progress in FY21 ramping up operations, restoring liquidity and strengthening balance sheet
Solid progress made in FY21 ramping up operations, restoring liquidity and strengthening balance sheet Q1 Q2 Q3 Q4 Hotel & Resorts 116 / 32% 331 / 92% (No. hotels open / % portfolio) Cruise 14 / 16 (Ships in operation / full fleet) 5 / 15 TUI Musement (Excursions sold) 109k 1,048k Markets & Airlines
Slide 10: Sector-leading load factors and high occupancy rates demonstrate business model strength
Sector-leading load factors & high occupancy rates demonstrate the strength of our business model to restart operations quickly in an uncertain travel environment AVE. BEDNIGHTS1 (k) OCCUPANCY % Hotels & Resorts Q4 Oct Q4 Oct Turkey 775 754 69 57 • 11m available bednights (331 Canaries 452 493 76 84
Slide 11: Digital enhancement driving further online participation and appeal
Digital enhancement driving further online participation and appeal % ONLINE BOOKINGS TUI MUSEMENT FY21 TUI GROUP APP 72% 33% +11% pts 226% increase of excursions, tours & +9% pts activities sold via the app (total no. of 71% 60% excursions sold down 59%) In line +9% pts (FY21 versus FY20) (FY21 ver
Slide 12: Customers appreciate flexible, safe and unique experiences
Customers appreciate flexible, safe and unique experiences, adapted to their needs TRUST FLEXIBILITY • Strong brand proposition • Free amendments for • Market leading positions bookings2 • Control whole value chain • Introduction of flex options • Holiday protection1 • Broad range of destinations SE
Slide 13: Encouraging pipeline of 4.1m bookings for Winter 21/22 and Summer 22
Encouraging pipeline of 4.1m bookings for Winter 21/22 and Summer 22 with 1.4m bookings added between 3 October and 28 November OVERALL BOOKING DEVELOPMENT W21/22 S22 Versus 2018/19 W21/22 S22 Bookings1 (38%) (3%) Total net 2,184 bookings1 1,908 ASP +15% +23% 1,649 (k) since 3 Oct 1,046 • Winter 21/
Slide 14: Increased C-19 media coverage has weakened booking momentum
8 weeks up to 28 November: Increased C-19 media coverage has weakened positive momentum particularly for Winter 21/22 programme WINTER 21/22 BOOKING TRENDS L8W (Net pax bookings by week as % of W18/19) WINTER 21/22 BOOKINGS1 % SOLD ASP NL – Light lockdown Q1 (31%) 93% +11% announced AUSTRIA – Enters
Slide 15: Winter 2021: Diversified and integrated model a clear advantage for Holiday Experiences
Winter 2021: Diversified and integrated model a clear advantage for Holiday Experiences segment CURRENT TRADING ENVIRONMENT • HOTELS & RESORTS o 256 hotels in operation (~72% of total group owed portfolio) as of end of October, reflecting the winter seasonality (vs. 331 hotels /~92% of total group o
Slide 16: FY21 Results
FY21 RESULTS TUI GROUP | Investor Presentation | January 2022
Slide 17: FY21 – Significant steps towards gross leverage ratio of around 3x
FY21 – Significant steps towards returning to gross leverage ratio of around 3x MEASURE TIMING VOLUME IMPACT • €500m equity contribution 3rd support package Jan 21 €1.8bn • €1.1bn IFRS equity through WSF Silent Participations • €200m add. RCF credit line FINANCIAL YEAR 21 & BEYOND • Start of refinan
Slide 18: Q4 first almost break-even quarter with strong positive FCF
Q4 first almost break-even quarter with strong positive FCF for second consecutive quarter since start of pandemic • Q4 Revenue of €3.4bn – up +173% Q4 REVENUE Q4 UND. EBIT • Q4 Underlying EBIT almost break-even – -€0.1bn €3.4bn1 -€0.1bn1 o Almost break-even (excl. one-off impacts of impairments and
Slide 19: Income Statement – First positive quarterly EBITDA since start of pandemic
Income Statement – First positive quarterly EBITDA delivered in Q4 since start of pandemic REVENUE In €m (IFRS 16) FY21 Q4 FY20 Q4 FY21 12M FY20 12M • ~€3.4bn of revenue generated in Q4, +€2.1bn YoY, driven by increased levels of operations. In Q4, Markets & Airlines achieved +2m additional passenge
Slide 20: Q4 result – positive results in Hotels & Resorts, Central and Western Regions
Q4 result – positive results achieved in Hotels & Resorts, Central and Western Regions, demonstrating the advantage of our integrated model and diversification HOLIDAY EXPERIENCES MARKETS & AIRLINES Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 116 Q4 YoY Und. EBIT €m Und. EBIT €m Q4 YoY HOTELS & Bednights: 7.2m
Slide 21: Q4 result – almost break-even, swift return of operations
Q4 result – almost break-even, demonstrating the swift return of operations when restrictions are removed, even on reduced volumes FY20 Q4 vs. FY21 Q4 UNDERLYING EBIT IN €M -97 104 Holiday Experiences: +€289m YoY 10 • Improved contribution due to increase in Q4 FY20 One-Offs +€164m; levels of operat
Slide 22: Positive Q4 Cash Flow driven by EBITDA, working capital inflow and RIU disposal
Positive Q4 Cash Flow driven by EBITDA, Working Capital inflow & RIU disposal proceeds In €m (IFRS 16) FY21 Q4 FY20 Q4 FY21 12M FY20 12M1 ADJUSTMENTS • Q4 includes RIU real estate book gain of €197m, partly offset by costs relating to Group Underlying EBITDA 160 -727 -1,145 -1,615 Realignment Progra
Slide 23: Strong liquidity position of €3.5bn
Strong liquidity position of €3.5bn, reflecting the lower working capital swing due to reduced S21 volumes as anticipated SUMMARY – LIQUIDITY DEVELOPMENT €bn Cash & avail. fac. 10th August 2021 ~3.1 Cash inflow Aug/Sep/Oct +0.3 Cash & avail. fac. 4th October 2021 ~3.4 Cash outflow Oct/Nov/Dec -1.0 P
Slide 24: Movement in Net Debt
Movement in Net Debt FY21 9M to FY21 YE In €m FY21 9M FY21 12M In €m FY21 9M FY21 12M IFRS 16 IFRS 16 QoQ ∆ IFRS 16 IFRS 16 QoQ ∆ Opening net debt as at 1 October -6,421 -6,421 - Financial liabilities -7,887 -6,550 1,337 FCF after Dividends -1,266 143 1,409 - Lease liabilities under IFRS16 -3,308 -3
Slide 25: Capital increase improves FY21 Q4 balance sheet by €1.1bn pro-forma
Capital increase completed in early November improves FY21 Q4 balance sheet by €1.1bn on a pro-forma basis FY21 Q4 & PRO-FORMA NET DEBT FY21 Q4 & PRO-FORMA GROSS DEBT Pensions ~€1.4bn Other financial liabilities Other financial liabilities Lease liabilities 8.7 Lease liabilities 0.8 0.2 -0.2 -0.5 ~€
Slide 26: Capital structure development & ongoing priorities
Capital structure development & ongoing priorities GENERATE DRIVE OPERATING OPTIMISE FINANCING CASH FLOW EFFECTIVENESS • Continue with strict cash discipline • Optimise (fixed) capacity • Maximise de-lever opportunities, • Manage working capital flow back • Deliver cost efficiency programme, includi
Slide 27: Mid-Term Ambitions & Summary
MID-TERM AMBITIONS & SUMMARY TUI GROUP | Investor Presentation | January 2022
Slide 28: TUI is managing the C-19 pandemic and is prepared for a leisure 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 & improves so
Slide 29: World arrivals expected to increase strongly in 2022 and normalise by 2024
World arrivals are expected to show strong increase in 2022 & return to normalisation in 2023 & 2024 ACTUAL DEVELOPMENT FORECAST2 Return to World arrivals both leisure and business travel (bn)1 FY19 levels 1.5 1.5 1.4 COVID-19 1.4 1.3 1.2 1.2 crisis 1.0 0.6 0.4 2015 2016 2017 2018 2019 2020 2021e 20
Slide 30: 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 Expand tours & activity Drive digitalisation & Growth through asset- Execute Global segment dynamic packaging right financing structures Realignment Programme LEADI
Slide 31: ESG Initiatives
ESG INITIATIVES TUI GROUP | Investor Presentation | January 2022
Slide 32: 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 33: 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. 33 TUI G
Slide 34: 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 35: TUI Airlines
TUI Airlines Reduction of Carbon Emissions: TUI has equipped the wingtips of the Boeing 737s with new types of winglets called "Split Scimitar Winglets“. The resulting reduction in fuel consumption enables a 737-800 to carry up to 1,100 kilogrammes more or fly up to 140 kilometres further. For examp
Slide 36: TUI Musement
TUI Musement TUI Collection: Through TUI Musement, our customers can discover new places and contribute to the local economy. TUI Collection excursions promote unique, authentic and responsible activities. Each TUI Collection excursion must meet specific criteria for sustainability, demonstrating th
Slide 37: Appendix
APPENDIX TUI GROUP | Investor Presentation | January 2022
Slide 38: Global Realignment Programme on track to meet ~€400m cost reduction target
Global Realignment Programme on track to meet ~€400m p.a. cost reduction target PILLARS RECENT PROGRESS PHASING • FY20 H1: Announced programme with potential impact on 8k roles, ~7k reduction in FTEs to date REDUCE COSTS already agreed P&L view ~€400m p.a • TUI Musement: significant progress made to
Slide 39: Movement in Net Debt
Movement in Net Debt FY20 to FY21 In €m FY20 12M FY21 12M In €m FY20 12M FY21 12M YoY ∆ YoY ∆ IFRS 16 IFRS 16 IFRS 16 IFRS 16 Opening net debt as at 1 October -3,276 -6,421 -3,145 Financial liabilities -7,669 -6,550 1,119 FCF after Dividends -3,193 143 3,336 - Lease liabilities under IFRS16 -3,400 -
Slide 40: Financing facilities and support packages overview
Financing facilities and support packages overview (per 6 December 2021) Support Instrument Facility €m Utilisation €m Debt/equity Maturity date package # - 1,535 1,489m drawn Debt RCF - 215 guarantee line - July 2024 (unsecured) Bank 1&2 2,850 274m drawn Debt facilities RCF 3 1701 undrawn Debt July
Slide 41: FY21 Revenue by Segment
FY21 Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)* In €m FY21 IFRS 16 FY20 IFRS 16 Change incl FX IFRS 16 FX Change ex FX Hotels & Resorts 440.5 402.4 38.1 -5.8 43.9 - Riu 286.3 272.9 13.4 -5.1 18.5 - Robinson 67.4 57.2 10.2 -0.6 10.8 - Blue Diamond - - - - - - Other 86.9 72.
Slide 42: FY21 Underlying EBITDA by Segment
FY21 Underlying EBITDA by Segment* FY20 IFRS 16 In €m FY21 IFRS 16 Change incl FX IFRS 16 FX Change ex FX adjusted Hotels & Resorts 63.1 -58.0 121.1 6.4 114.7 - Riu 52.4 118.9 -66.4 1.4 -67.8 - Robinson 29.0 -21.1 50.2 0.7 49.5 - Blue Diamond** -32.6 -35.4 2.8 2.9 -0.1 - Other 14.2 -120.3 134.6 1.4
Slide 43: FY21 Underlying EBIT by Segment
FY21 Underlying EBIT by Segment* FY20 IFRS 16 In €m FY21 IFRS 16 Change incl FX IFRS 16 FX Change ex FX adjusted Hotels & Resorts -152.7 -395.2 242.6 10.0 232.5 - Riu -42.5 50.1 -92.6 3.7 -96.3 - Robinson -6.2 -99.1 92.9 1.2 91.7 - Blue Diamond** -32.6 -35.4 2.8 2.9 -0.1 - Other -71.4 -310.9 239.5 2
Slide 44: FY21 Q4 Revenue by Segment
FY21 Q4 Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)* In €m FY21 Q4 IFRS 16 FY20 Q4 IFRS 16 Change incl FX IFRS 16 FX Change ex FX Hotels & Resorts 282.5 97.7 184.8 2.0 182.8 - Riu 178.0 41.6 136.4 2.1 134.3 - Robinson 38.8 20.5 18.3 -0.1 18.4 - Blue Diamond - - - - - - Other
Slide 45: FY21 Q4 Underlying EBITDA by Segment
FY21 Q4 Underlying EBITDA by Segment* FY20 Q4 IFRS 16 In €m FY21 Q4 IFRS 16 Change incl FX IFRS 16 FX Change ex FX adjusted Hotels & Resorts 169.0 -51.9 220.9 0.9 220.0 - Riu 64.1 -4.4 68.5 1.3 67.3 - Robinson 42.6 -14.8 57.5 -0.2 57.7 - Blue Diamond** 1.2 -19.1 20.3 -0.1 20.4 - Other 61.1 -13.5 74.
Slide 46: FY21 Q4 Underlying EBIT by Segment
FY21 Q4 Underlying EBIT by Segment* FY20 Q4 IFRS 16 In €m FY21 Q4 IFRS 16 Change incl FX IFRS 16 FX Change ex FX adjusted Hotels & Resorts 115.9 -87.2 203.1 0.7 202.4 - Riu 39.2 -16.8 55.9 1.1 54.8 - Robinson 36.0 -64.3 100.3 -0.3 100.6 - Blue Diamond** 1.2 -19.1 20.3 -0.1 20.4 - Other 39.6 13.0 26.
Slide 47: Contact
Contact ANALYST AND INVESTOR ENQUIRIES Mathias Kiep, Group Director Controlling, Corporate Finance & Investor Tel: +44 (0)1293 645 925 Relations +49 (0)511 566 1425 Nicola Gehrt, Director, Head of Group Investor Relations Tel: +49 (0)511 566 1435 Hazel Chung, Senior Investor Relations Manager Tel: +