TUI AG · XETR:TUI1
TUI — Q2/H1 FY2023 Earnings Presentation
55 slides from TUI's earnings presentation, 2023
Slide 1: TUI Group Factbook FY23 Q2/H1
TUI GROUP FACTBOOK FY23 Q2/H1
Slide 2: Table of Content
TABLE OF CONTENT 1 Business Overview & Strategy ➤ 2 Group Financials ➤ 3 Hotels & Resorts ➤ 4 Cruises ➤ 5 TUI Musement ➤ 6 Markets & Airlines ➤ 2
Slide 3: Business Overview & Strategy
BUSINESS OVERVIEW & STRATEGY Back to Table of Content ➤
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 (Und. EBIT) 21m Customers1 Leading leisure hotel and club brands around €452m the world; investments, operations, ownership €18.9bn Revenue €366m Leading German & UK cruise brands €893m Und. EBIT €56m Tours, activities
Slide 5: Tourism remains a growth sector - fundamentals remain attractive
Tourism remains a growth sector - fundamentals remain attractive TRAVEL IS A MEGA TREND Favourable demographic Experiences Tourism growth above GDP – supported by high disposable The new lifestyle & global a multi-year growth industry income and longevity trend in travel 5
Slide 6: TUI's strategic priorities
TUI’s strategic priorities Grow New New market share products customers Strong focus on quality Sustainability as opportunity Winning team 6
Slide 7: 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 8: Grow market share – Growth opportunities in Markets & Airlines
Grow market share – Growth opportunities in Markets & Airlines Markets & Airlines Market Split Est.TUI Future Market Our opportunities By Product1 Share Today2 Growth ➢ Grow market share in our traditional Wholesale package market – be more agile & more competitive Acco-only ~35% 1-5% ➢ Leverage the
Slide 9: Grow market share – Growth opportunities in Holiday Experiences
Grow market share – Growth opportunities in Holiday Experiences Holiday Experiences Market Split by TUI Future Market Our opportunities Product1 Participation Growth2 ➢ Developing our strong hotels & cruise brands Strong differentiated ➢ Grow through new differentiated products leisure hotel brands
Slide 10: New products
New products TUI’s Heartland products & future growth to attract new customers SUN & BEACH… …DYNAMIC …WEEKEND TRIPS… Wholesale package PACKAGING… Accommodation- & Flight-only …EXPERIENCES & …HOTELS & CRUISES… … TOURS TICKETS… TUI Heartland products TUI Future growth 10
Slide 11: New customers – extending TUI's appeal
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 12: Bring more customers into TUI's central customer ecosystem
Bring more customers into TUI’s central customer ecosystem Leverage TUI brand Wholesale Package Hotels App-centric Holiday Experiences Markets & Airlines Dynamic Package TUI CRM Musement Customer Accomm. One customer account, Only/Tours loyalty programme Cruise (+ further initiatives) Flight Only 12
Slide 13: Strong focus on quality - Customer happiness is at our core
Strong focus on quality - Customer happiness is at our core Our ambition is to improve NPS 461 & CSAT 8.42 further TUI’s continuous improvement cycle Live Happy - Delivering on our customer promise Monitor implemented Measured through Measured NPSNPS through actions to deliver a seamless journey Mak
Slide 14: Sustainability as opportunity
Sustainability as opportunity New Sustainability Agenda • Commitment to achieve net-zero emissions well before 2050 • 2030 Science-based targets validated by the SBTi for our Airline, Cruise and Hotel & Resorts - 24% -27.5% - 46.2% Reduce airline CO2e per Reduce absolute CO2e from Reduce absolute CO
Slide 15: Winning team: Let's TUI it
Winning team: Let’s TUI it – let’s do it the TUI way! Talent acquisition & talent Upskilling programmes & attraction irresistible employer brand Diversity, equity, inclusion Global all-inclusive culture strategy & wellbeing initiatives Strong focus on execution, Leadership entrepreneurship & employe
Slide 16: CEO Priorities - Summary
CEO Priorities - Summary “We’re playing to win.” Sebastian Ebel ➢ Grow Market Share: We will drive profitable growth by doing things better and by building on our strengths. ➢ New Products: By growing our product range – Acco-Only, Flight-Only, Tours, Dynamic Packaging, Cars, Ancillaries – and incre
Slide 17: Clear mid-term strategy to capture future market growth potential
Clear mid-term strategy to capture future market growth potential - Grow market share, New products & New customers Accelerate profitable growth OUR FY23 ASSUMPTIONS With new customer segments & more product sales ➢ Revenue1 expected to further increase strongly ➢ Und. EBIT1 expected to increase sig
Slide 18: Group Financials
GROUP FINANCIALS Back to Table of Content ➤ 18
Slide 19: Income Statement – Key Figures
Income Statement – Key Figures FY22 FY21 FY19 In €m (IFRS 16) IFRS 16 IFRS 16 IAS 17 Revenue 16,545 4,732 18,928 Underlying EBITDA 1,225 -1,145 1,360 Depreciation & Amortisation -816 -930 -466 Underlying EBIT 409 -2,075 893 Excl. Boeing Excl. Adjustments (SDI's and PPA) disruption -89 63 MAX cost -1
Slide 20: Balance Sheet
Balance Sheet 30 Sep 22 30 Sep 21 30 Sep 19 In €m IFRS 16 IFRS 16 IAS 17 adj. Non-current assets 11,352 11,222 11,948 Current assets 3,904 2,933 4,270 Assets 15,256 14,156 16,218 Subscribed capital 1,785 1,099 1,506 Capital and revenue reserves -2,347 -3,276 1,948 Silent Participation 420 1,091 - No
Slide 21: Cash Flow & Movement in Net Debt
Cash Flow & Movement in Net Debt FY22 FY21 FY19 In €m (IFRS 16) IFRS 16 IFRS 16 IAS 17 Underlying EBITDA 1,225 -1,145 1,360 Adjustments -21 145 -82 Reported EBITDA 1,203 -1,000 1,277 Working capital 1,073 823 -26 Other cash effects 202 -108 138 At equity income -101 233 -297 Dividends received (JV's
Slide 22: WSF agreement successfully executed
WSF agreement successfully executed to emerge stronger in an attractive long-term growth sector On 24 April 2023, TUI successfully completed the capital increase of ~€1.8bn & repaid state aid, strengthening the balance sheet 1 2 WSF SP I & Warrant bond repayment KfW RCF reduction • Repay nominal €47
Slide 23: Capital increase impact on balance sheet
Capital increase impact on balance sheet Capital increase assumed to deliver a pro-forma Net Overall structure & implications Leverage Ratio below FY19 level in €bn Sources & Uses Net Debt Net Debt Proceeds +1.8 3.4 FY22 Q4 Excl. Boeing MAX In addition, SP I cost impact 1.4x2 repaid 2.8x Warrant Bon
Slide 24: Capital increase to support sustainable leverage ratio
Capital increase to support sustainable leverage ratio Capital increase to accelerate Gross Leverage Ratio1 down to ~3.0x Mid-term ambitions In addition, SP I • Leverage ratio of well below repaid 3x in line with 2025/26 mid- Excl. Boeing MAX cost impact 2.7x2 4.7x term ambitions 4.1x 3.0x ~3.0x 3.0
Slide 25: Financing facilities and support packages overview per 31 March 2023
Financing facilities and support packages overview per 31 March 2023 Support Facility Instrument Utilisation €m Debt/equity Maturity date package # €m - 1,454 1,439m drawn Debt RCF Bank - 190 guarantee line - July 2026 (unsecured) facilities 1&2 2,1001 undrawn Debt Schuldschein - 425 - Debt July 202
Slide 26: Recap state aid and financing measures
Recap state aid and financing measures Chronological overview from April 2020 to May 2023 1st Stabilisation Package Capital Increase €550m Capital Increase Capital Reduction 10 : 1 RCF extension until July €1.8bn €1.1bn • 1.785m → 178.5m shares 2026 3rd Stabilisation Package €1.3bn • KfW RCF credit
Slide 27: Hotels & Resorts
HOTELS & RESORTS Back to Table of Content ➤ 27
Slide 28: Hotels & Resorts Summary
Hotels & Resorts Summary FY22 FY21 FY19 HOTEL BEDS BY REGION (%) Key figures IFRS 16 IFRS 16 IAS 17 (C-19) (C-19) 7% Caribbean Total Revenue (€m) 1,500 667 1,512 22% 30% Western Med. Total Eastern Med. o/w External Revenue (€m) 806 440 660 275,144 Africa & UAE Other Underlying EBITDA (€m) 651 63 563
Slide 29: Hotels & Resorts Summary by brand FY21 & FY22
Hotels & Resorts Summary by brand FY21 & FY22 Key figures FY22 IFRS 16 (C-19) Total External Revenue (€m)1 587.0 111.8 - 806.2 Underlying EBIT (€m) 304.1 54.0 49.8 480.6 Number of hotels 98 26 34 353 Number of beds 106,059 16,016 32,270 275,144 Capacity (k)2 13,490 3,582 5,432 37,761 Average occupan
Slide 30: 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 31: RIU – Key figures FY22 & FY21
Hotels & Resorts RIU – Key figures FY22 & FY21 Total o/w Riu Hotels Riu in FY22 HOTEL BEDS BY REGION (%) FY22 RIU 100% view1 o/w RIUSA II IFRS 16 (consolidated at TUI accounts In €m (C-19) (fully consolidated) equity) IFRS 16 10% Caribbean Total Revenue 916 - 916 Western Med. 916 18% Underlying EBIT
Slide 32: 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 Caribbean (consolidated at TUI accounts 5% Total In €m IAS 17 (fully consolidated) equity) 90,460 North Africa IAS 17 Total Revenue 1,169 850 319 850 Oth
Slide 33: Robinson – Key figures
Hotels & Resorts Robinson – Key figures Robinson FY22 FY21 FY19 HOTEL BEDS BY REGION (%) In TUI accounts1 IFRS 16 IFRS 16 IAS 17 In €m (C-19) (C-19) 20% 25% Western Med. Total Revenue 293 168 257 Total Eastern Med. 18% 16,016 Underlying EBIT 54 -6 55 North Africa 37% Other EBIT Margin 18% n.m 21% RO
Slide 34: Blue Diamond – Key figures
Hotels & Resorts Blue Diamond – Key figures Blue Diamond FY22 FY21 FY19 HOTEL BEDS BY LOCATION (%) Cuba 100% view1 IFRS 16 IFRS 16 IAS 17 5% In €m (C-19) (C-19) Jamaica 14% 3% St Lucia Total Revenue 644 274 456 Total Dom Rep EBIT 128 -30 73 14% 32,270 54% Mexico EBIT Margin 20% n.m 16% 3% Antigua 7%
Slide 35: Cruises
CRUISES Back to Table of Content ➤ 35
Slide 36: Cruises Summary by brand FY21 & FY22
Cruises Summary by brand FY21 & FY22 Key figures FY22 IFRS 16 (C-19) MARELLA CRUISES Revenue (€m)1 - - 331.5 Underlying EBIT (€m) 41.4 - -40.7 Passengers (k) 444 27 175 Fleet Size2 (Group Total 16) 7 5 4 Total Berths3 17,780 1,614 7,410 Occupancy % 69 58 70 Av Daily Rate (€ for TC/HLC and £ for Mare
Slide 37: Cruises Summary by brand FY19
Cruises Summary by brand FY19 Key figures FY19 IAS 17 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 TC/HP and £ for Marella)
Slide 38: TUI Cruises – Key figures – 100% View
Cruises TUI Cruises – Key figures – 100% View FY22 FY21 FY19 TUI Cruises IFRS 16 IFRS 16 IAS 17 100%1 (C-19) (C-19) Revenue 1,238 319 1,445 Underlying EBIT 193 -187 465 EBIT Margin 16% n.m 32% EAT (100% TUI) 83 -294 405 o/w TUI EAT (50%) 41 -147 203 ROIC 5% n.m 18% ROE 13% n.m 56% • As of July 2020
Slide 39: 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: Mein Schiff Herz TUI Cruises JV Exit Q3 FY23 Deliveries: • Funded by JV • No CAPEX requirements for TUI
Slide 40: 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 41: 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 42: 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 43: TUI Musement
TUI MUSEMENT Back to Table of Content ➤
Slide 44: 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 FY22 FY21 FY19 IFRS 16 IFRS 16 IAS 17 Tours & Activities market is growing KEY FIGURES & still unconsolidated, representing (C-19) (C-19) the next big opportunity in travel Revenue (€m) 517 117 856 Underlying EB
Slide 45: Tours & Activities market
Tours & Activities market Fastest growing market in travel fueled by digitalisation Large & growing market1 Next big opportunity in travel Experiences - Unique characteristics $ bn Booked online % CAGR 2 Fragmented supply Unstandardized sector where 329 intermediation plays a critical role 306 288 2
Slide 46: A unique business model
A unique business model End-2-end model enabled by state-of-the-art digital platforms Experiences Transfers Tours1 Products Excursions Activities Tickets Shorex2 Sourcing Production Digital Platforms Distribution TUI B2C B2B Demand Service delivery by local teams Delivery 46 1 Multi-Day Tours | 2 Sh
Slide 47: TUI Musement product categories
TUI Musement product categories Driving digitalisation in our 3 complementary product categories Cross-selling between 3 categories Experiences Transfers Tours Extensive portfolio of the most relevant Pre-defined & custom-made multi-day Shared and private transfers between airports, excursions, acti
Slide 48: TUI Musement Summary & Highlights
TUI Musement Summary & Highlights TUI Musement has a unique position in a high growth market, developing at c.7%1 p.a. within the travel industry Profitable player positioned for growth combining a digital platform model with in-destination delivery Differentiated value propositions within 3 distinc
Slide 49: Markets & Airlines
MARKETS & AIRLINES Back to Table of Content ➤ 49
Slide 50: Markets & Airlines – Market leader in package distribution
Markets & Airlines – Market leader in package distribution, fulfilment, strong market and customer knowledge Customers per region (k)1 Leading brand NPS1 of 54 21m customers1 Premium quality products & service 13 Markets Leader in European tourism 7,428 Omni-channel One of the first 7,830 App, web,
Slide 51: Markets & Airlines Key figures by Markets FY22 & FY21
Markets & Airlines Key figures by Markets FY22 & FY21 Key figures FY22 (IFRS 16) Northern Total Markets & Central Region Western Region (C-19) Region Airlines Customers (k)1 6,475 5,873 4,383 16,730 External Revenue (€m) 6,320 5,774 2,713 14,806 Underlying EBIT (€m) -102 88 -32 -45 EBIT margin (%) n
Slide 52: Markets & Airlines 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 53: 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 - - - - - External Lessor returns (4) - - - (4) Disposals - - (1) - (1) Reclassified - 1 (1) - - As at 31 Ma
Slide 54: Aircraft order book deliveries – FY23 to FY27
Aircraft order book deliveries – FY23 to FY27 FY23 FY24 FY25 FY26 FY27 B737-MAX 2 7* 24* 9* - Supplementary to the above firm orders, TUI Group has further aircraft options: FY23 FY24 FY25 FY26 FY27 B737-MAX - - - 15 17 54 *TUI has the flexibility to defer delivery dates subject to appropriate notic
Slide 55: 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