TUI AG · XETR:TUI1
TUI — Investor Presentation (December 2020)
39 slides from TUI's investor presentation, December 2020
Slide 1: TUI Group Factbook December 2020
TUI Group Factbook December 2020
Slide 2: TUI Group - Reasons to Invest & Business Overview
TUI GROUP - REASONS TO INVEST & BUSINESS OVERVIEW TUI GROUP | Factbook | December 2020
Slide 3: Reasons to invest
Reasons to invest Fulfilment distinguishes TUI from 1 Holidays remain a high priority 4 competition - ability to take risks and shape markets Integrated business model with strong Leading, trusted brand with 2 5 customer base and distribution power differentiated products TUI is strategically well p
Slide 4: World arrivals expected to show strong increase in 2021 & return to 2019 levels
World arrivals expected to show strong increase in 2021 & return to 2019 levels in 2022 ACTUAL DEVELOPMENT FORECAST2 COMMENTS World arrivals both leisure and business travel (bn)1 Return to MINTEL Holiday Review Report FY19 levels (January 2021) findings: 1,5 1,5 1,4 o “Travel operators should pre
Slide 5: Industry fundamentals from TUI's perspective
Industry fundamentals from TUI’s perspective MARKETS & AIRLINES HOTELS • Leisure travel will return to previous levels with • Short-term overcapacities expected packages remaining important • Strong hotel brands will benefit • Later booking profile expected for duration of crisis • Best-in-class sal
Slide 6: TUI strongly positioned to be a key beneficiary beyond the crisis
TUI strongly positioned to be a key beneficiary beyond the crisis INTEGRATED BUSINESS MODEL WITH MARKETS & HOLIDAY TOURISM SECTOR FUNDAMENTALS DIVERSIFIED CUSTOMER BASE & AIRLINES EXPERIENCES REMAIN ATTRACTIVE & UNCHANGED DISTRIBUTION POWER 21m customers 433 Hotels1 ~140 aircraft2 17 Cruise ships2 O
Slide 7: Summary: Drive transformation and return to profitable growth
Summary: Drive transformation and return to profitable growth FY20: STRONG START & C-19 FY21: TRANSITION FY22+: PROFITABLE GROWTH • Exceptional start to S20 trading • Bookings uplift and revenue recovery to • Trusted, leading brand with differentiated • Swift and disciplined liquidity correlate with
Slide 8: Global Realignment Programme
GLOBAL REALIGNMENT PROGRAMME TUI GROUP | Factbook | December 2020
Slide 9: Global realignment programme drives TUI's strategic initiatives
Global realignment programme drives TUI’s strategic initiatives… REDUCE COSTS REDUCE CAPITAL INTENSITY DRIVE DIGITALISATION • Accelerate Transformation project • Asset-right strategy in Hotels & Cruises • Increase accommodation only, seat • Merge tasks and organizations across the • Reduction of inv
Slide 10: On track to meet ~€400m p.a. cost reduction target
…and is on track to meet ~€400m p.a. cost reduction target PILLARS RECENT PROGRESS PHASING • FY20 H1: Announced programme REDUCE COSTS with potential impact on 8k roles P&L view ~€400m p.a • ~5k reduction in FTEs to date • TUI Musement: ~2k FTE reduction €303m to date (~25% reduction) as part REDUCE
Slide 11: Group Financials
GROUP FINANCIALS TUI GROUP | Factbook | December 2020
Slide 12: Income Statement – Key Figures
Income Statement – Key Figures FY20 FY20 FY19 In €m IFRS 16 IAS 171 adjusted2 • FY20 results significantly affected by the COVID-19 Revenue 7,943.7 7,952.9 18,928.1 related travel suspension in Q3 and limited restart Underlying EBITDA -1,615.0 -2,242.6 1,359.5 potential in Q4 Depreciation -1,382.0 -
Slide 13: Cash Flow & Movement in Net Cash
Cash Flow & Movement in Net Cash FY20 FY20 FY19 In €m IFRS 16 IAS 17 adjusted1 EBITDA underlying -1,615.0 -2,242.6 1,359.5 Adjustments 260.0 242.1 -82.1 EBITDA reported -1,355.0 -2,000.5 1,277.4 Working capital -1,351.0 -1,260.5 -25.6 Other cash effects -234.6 -216.7 138.4 At equity income 193.3 193
Slide 14: Balance Sheet
Balance Sheet 30 Sep 2019 In €m 30 Sep 2020 adjusted1 Non-current assets 12,647.8 11,947.9 Current assets 2,693.4 4,270.2 Assets 15,341.1 16,218.1 Subscribed capital 1,509.4 1,505.8 Capital and revenue reserves -1,957.8 1,948.3 Non-controlling interest 666.5 711.4 Equity 218.1 4,165.6 Non-current pr
Slide 15: Gross Leverage Ratio
Gross Leverage Ratio LEVERAGE RATIO PAST LEVERAGE LEVEL ACHIEVED FY20 FY19 €m IFRS 16 IAS 17 Gross debt 7,669 2,682 3.50x **2.7x if excluding to Bonds 299 298 MAX3** 3.25x to Liabilities to banks 3,954 870 2.75x 3.00x 3.00x to Finance lease - 1,495 3.3x 2.50x 3.0x 2.7x to Lease liabilities under IFR
Slide 16: Hotels & Resorts
HOTELS & RESORTS TUI GROUP | Factbook | December 2020
Slide 17: Hotels & Resorts Summary FY20
Hotels & Resorts Summary FY20 HOTEL BEDS BY REGION (%) FY20 FY20 FY19 Key Facts IFRS 16 IAS 17 IAS 17 7% (C-19) (C-19) Caribbean 20% 30% Western Med. Total Revenue (€m) 751 751 1,512 Total Eastern Med. 266,002 North Africa o/w External Revenue (€m) 402 402 660 Other 21% Underlying EBITDA (€m) -58 -1
Slide 18: Hotels & Resorts Summary by brand
Hotels & Resorts Summary by brand Key figures FY20 IAS 17 (C-19) Total External Revenue (€m) 272.9 57.2 - 402.4 Underlying EBIT (€m) 49.7 -102.7 -35.4 -400.0 Number of hotels2 99 25 33 355 Number of beds 101,528 15,321 30,610 266,002 Capacity (k)1 11,144 2,083 2,543 24,013 Average occupancy3 % 72 62
Slide 19: Hotels & Resorts RIU – Key figures FY20
Hotels & Resorts RIU – Key figures FY20 Riu in Riu in RIU 100% view1 Total o/w RIUSA II o/w Riu Hotels Total o/w RIUSA II o/w Riu Hotels TUI accounts TUI accounts In €m IFRS 16 (fully consolidated) (consolidated at equity) IAS 17 (fully consolidated) (consolidated at equity) IFRS 16 IAS 17 Total Rev
Slide 20: Hotels & Resorts RIU – Key figures FY19
Hotels & Resorts RIU – Key figures FY19 RIU 100% view1 Total o/w RIUSA II o/w Riu Hotels Riu in In €m IAS 17 (fully consolidated) (consolidated at equity) TUI accounts Turnover 1,169 850 319 850 Underlying EBITA 397 283 114 326 EBITA Margin 34% 33% EAT 315 226 89 o/w EAT to TUI 156 113 43 156 ROIC (
Slide 21: Hotels & Resorts Robinson – Key figures FY20
Hotels & Resorts Robinson – Key figures FY20 (€M) FY20 FY20 FY19 Robinson 1 1 1 IFRS 16 IAS 17 IAS 17 In TUI accounts (C-19) (C-19) Total Revenue 147 147 257 Underlying EBIT -99 -103 55 EBIT margin n.m n.m 21% ROIC n.m n.m 11% Robinson Club Sarigerme Park, Turkey HOTEL BEDS BY REGION (%) FINANCING S
Slide 22: Hotels & Resorts Blue Diamond – Key figures FY20
Hotels & Resorts Blue Diamond – Key figures FY20 (€M) FY20 FY20 FY19 Blue Diamond 1 1 1 IFRS 16 IAS 17 IAS 17 100% view (C-19) (C-19) Revenue 253 253 456 EBIT -29 -30 73 EBIT margin n.m n.m 16% EAT -73 -74 19 o/w EAT to TUI (49%) -36 -36 9 Royalton Punta Cana, Dom Rep HOTEL BEDS BY LOCATION (%) FINA
Slide 23: Cruise
CRUISE TUI GROUP | Factbook | December 2020
Slide 24: Cruises Summary by brand
Cruises Summary by brand Key figures FY20 IAS 17 (C-19) MARELLA CRUISES Revenue (€m)1 - 184.7 287.9 Underlying EBIT (€m) -74.22 5.7 -254.2 Passengers (k) 308 15 141 Fleet Size3 (Group Total 17) 7 5 5 Total Berths4 17,780 1,548 8,943 Occupancy % 88.1% 70.2% 95.6% Av Daily Rate (€ for TC/HP and £ for
Slide 25: TUI Cruises - Key figures – 100% View
Cruises TUI Cruises - Key figures – 100% View FY20 FY20 FY19 1 1 TUI Cruises 100% IFRS 16 IAS 17 IAS 17 (C-19) (C-19) Revenue 647 647 1,445 • As of July 2020 (FY20 Q4) TUI Cruises JV entity includes the result of Hapag-Lloyd Cruises Underlying EBIT -89 -89 465 EBIT Margin n.m n.m 32% EAT (100% TUI)
Slide 26: TUI's cruise fleet development - capacity growth financed off-balance sheet
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: JV Current fleet: Exit FY23 Deliveries: • Funded by JV FY23 FY24 FY26 • No CAPEX requirements for TUI Current fleet:
Slide 27: Cruises TUI Cruises Fleet
Cruises TUI Cruises Fleet Mein Schiff Herz Mein Mein Mein Mein Mein Mein Mein New Build 1 New Build 2 (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 TBC TBC BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTH
Slide 28: 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 29: Cruises Marella Cruises Fleet
Cruises Marella Cruises Fleet Marella Marella Marella Marella Discovery Discovery 2 Explorer Explorer 2 1,836 1,836 1,924 1,814 BERTHS BERTHS BERTHS BERTHS Finance Lease exp. Wholly owned Wholly owned Wholly owned 2026 OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL 1994 1996 1995 19
Slide 30: TUI Musement
TUI MUSEMENT TUI GROUP | Factbook | December 2020
Slide 31: TUI Musement: Tours & activities segment positioned to drive future growth
TUI Musement: Tours & activities segment positioned to drive future growth > 170k excursions, activities, tickets and transfers available in more than 140 countries • Pioneer in digitalisation of currently fragmented, largely offline Tours & Activities market Delivery/Updates APP FEATURES since Marc
Slide 32: TUI Musement Key figures FY20
TUI Musement (previously Destination Experiences) Key figures FY20 More than 4,700 3.4 million excursions Colleagues Sold (FY19: 9,500) (FY19: 9.7m) >11 >5.5 million transfers million guests operated (FY19: >16m) (FY19: >31m) Number of Operating in vehicles 135 >1,600 Destinations (FY19: 122) (FY19:
Slide 33: Markets & Airlines
MARKETS & AIRLINES TUI GROUP | Factbook | December 2020
Slide 34: Markets & Airlines Key figures by Markets
Markets & Airlines Key figures by Markets Key figures FY20 (IAS 17) Northern Region Central Region Western Region Total Markets & Airlines Customers (k)1 2,438 3,230 2,388 8,057 External Revenue (€m) 2,467 2,862 1,348 6,677 Underlying EBIT2 (€m) -975 -620 -441 -2,036 EBIT margin (%) n.m n.m n.m n.m
Slide 35: Aircraft Commitments by Financing Type
Aircraft Commitments by Financing Type Operating Lease Finance Lease Owned Held for Sale Total As at 30 September 2019 120 25 5 - 150 Order book financing - 2 - - 2 External Lessor deliveries 2 - - - 2 External Lessor returns (14) - - - (14) Disposals - - (1) - (1) Reclassified - -1 - 1 - As at 30 S
Slide 36: Aircraft Commitments by Financing Type
Aircraft Commitments by Financing Type Operating Lease Finance Lease Owned Held for Sale Total As at 30 September 2020 108 26 4 1 139 Order book financing - - - - - External Lessor deliveries 1 - - - 1 External Lessor returns (5) - - - (5) Disposals - - - (1) (1) Corsair - - (1) - (1) Reclassified -
Slide 37: Aircraft order book deliveries – FY21 to FY25
Aircraft order book deliveries – FY21 to FY25 FY21 FY22 FY23 FY24 FY25 B737-MAX 9 10* 16* 13 13 B787-9 - 1 - - - Firm order book deliveries 2020-2025 9 11 16 13 13 Financial Years (FY) ending 30 September; figures correct as at 31 December 2020 FY21 FY22 FY23 FY24 FY25 Supplementary to the above fir
Slide 38: Sustainability
SUSTAINABILITY TUI GROUP | Factbook | December 2020
Slide 39: Sustainability is at the heart of TUI
Sustainability is at the heart of TUI - focus on further driving our sustainable business transformation TUI GROUP SUSTAINABILITY STRATEGY TUI CREDENTIALS (FY 20) • TUI Group is represented in the sustainability indices FTSE4Good, We are mindful of the importance of travel and tourism for Ethibel Su