Tui Ag · XETR:TUI1
Tui — H1 2015 Earnings Presentation
42 slides from Tui's earnings presentation, May 13, 2015
Slide 1: H1 2014/15 Results
H1 2014/15 Results 13 May 2015 Riu Palace Cabo San Lucas
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 Introduction Peter Long 2 H1 Review Friedrich Joussen 3 Current Trading & Outlook Friedrich Joussen 4 Financial Performance Horst Baier 5 Summary Peter Long 3 TUI GROUP | H1 2014/15 Analyst & Investor Conference Call | 13 May 2015
Slide 4: The world's leading tourism business
The world's leading tourism business Strong H1 performance Pleased with overall summer trading We are well on track with the integration process We have defined a clear strategic agenda & established a new business structure Remain confident of delivering full year underlying operating profit growth
Slide 5: TUI Group Structure
TUI Group Structure Tourism Business Other Businesses Northern Region Hotels & Resorts Hotelbeds Group Specialist Group Central Region Cruises Held for sale Inbound Services Western Region (from 2015/16) LateRooms Group Hapag-Lloyd AG Platforms (aviation & customer/IT) 5 TUI GROUP | H1 2014/15 Analy
Slide 6: Group Executive Committee
TUI Group Senior Leadership Friedrich David Peter Long Horst Baier Sebastian Ebel Will Waggott Executive Joussen Burling Board • Specialist & • Central Region • Northern Activity Hotels & Resorts Region Group Executive Committee • • Hotelbeds Joint CEO Joint CEO CFO • Cruises Group • Hotel • Inbound
Slide 7: TUI Group Segmentation going forward
TUI Group Segmentation going forward Northern Region (UK, Nordics, Canada, Russia) Central Region (Germany, Austria, Switzerland, Poland) Western Region (Belgium, Netherlands, France) Tourism Includes Hotels & Resorts TT Hotels Cruises Pro Forma figures, Other Tourism please see Specialist Group App
Slide 8: H1 Review
H1 Review Friedrich Joussen 8 TUI GROUP | H1 2014/15 Analyst & Investor Conference Call | 13 May 2015
Slide 9: H1 2014/15 Strong H1 performance
H1 2014/15 Strong H1 performance • Underlying EBITA improved to a seasonal loss of €-273m (H1 2013/14: €-341m) 14% improvement in • Includes €16m profit on sale of Riu Waikiki; €14m underlying EBITA Easter impact, the favourable new financing for 1 Europa 2 and €2m adverse foreign exchange translati
Slide 10: Underlying EBITA bridge continuing operations
H1 2014/15 Underlying EBITA bridge continuing operations Underlying EBITA H1 2014/15 bridge (€m) Source Markets -11 Hotels & Resorts 5 Specialist Group 2 TUI Hotels 13 Hotelbeds 3 TT Hotels -11 Other -1 Northern Region 15 TUI Cruises 15 Hotel Sale 16 Central Region -17 HLKF 14 Europa 2 5 Western Reg
Slide 11: Underlying EBITA by Segment
H1 2014/15 Underlying EBITA by Segment Profit on sale of Change ex H1 13/14 Easter in €m H1 14/15 Change hotel / Financing FX FX & Restated impact Europa 2 other Northern Region -109 -124 15 - 10 -10 15 Central Region -94 -77 -17 - 1 -1 -17 Western Region -62 -70 8 - - - 8 Source Markets -265 -271 6
Slide 12: Source Markets KPIs H1 2014/15
Source Markets KPIs H1 2014/15 Customers Direct Distribution Online Underly. EBITA y-o-y (%) (`000) y-o-y (ppts) y-o-y (%)(ppts) (%) y-o-y (€m) (€m) 2,102 1 90 -109 Northern Region 1 2 8581 15 4 2,260 4 44 4 14 -17 -94 Central Region Western Region 2 1,658 4 69 6 51 8 -62 Source Markets 2 6,020 2 70
Slide 13: Hotels & Resorts KPIs for owned and leased hotels
Hotels & Resorts KPIs for owned and leased hotels H1 2014/15 1 Capacity Revenue/bed Occupancy Underly. EBITA /EAT y-o-y (%) (`000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) 8,225 12 59.87 2 292 114 2 Flat 8841 -5 1,102 Flat 90.51 -1 66 7 10 3 1,132 1 43.73 13 59 TT Hotels KPIs to be delivered g
Slide 14: Cruises KPIs H1 2014/15
Cruises KPIs H1 2014/15 Passenger days Average rate Occupancy Underly. EBITA/EAT y-o-y (%) (´000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) 67 1,164 3 148 -1 101 15 17 1 2 -25 168 25 524 7 74 19 1 1) at equity result 2) includes financing benefit Europa 2 TUI Cruises with ongoing strong perform
Slide 15: Current Trading & Outlook
Current Trading & Outlook Friedrich Joussen 15 TUI GROUP | H1 2014/15 Analyst & Investor Conference Call | 13 May 2015
Slide 16: Current Trading Summer 2015
Current Trading Summer 2015 • Pleased with trading overall • Bookings developing strongly, up 2% year-on-year • 59% sold • Increase in numbers of customers booked through our controlled channels at 67% of bookings to date, up 2%-points • Hotels & Resorts performing well with improved occupancy rates
Slide 17: Outlook FY 2014/15e
Outlook FY 2014/15e FY 13/14 1 €m FY 14/15e 2 Turnover 18,715 2-4% Underlying EBITA 869 10-15% SDIs 109 ~220 (incl. merger related items) 1 prior to restatement & treatment of LateRooms Group as discontinued operations 2 at constant currency 17 TUI GROUP | H1 2014/15 Analyst & Investor Conference Ca
Slide 18: Financial Performance
Financial Performance Horst Baier 18 TUI GROUP | H1 2014/15 Analyst & Investor Conference Call | 13 May 2015
Slide 19: Financial highlights – Optimisation of capital structure
H1 2014/15 Financial highlights – Optimisation of capital structure Simplification of financial structure Asset financing • Redemption notice given to holders of • Purchase of Europa 2 in January 2015 our two remaining convertible bonds, (net cash component €67m; €211m debt by end of March almost al
Slide 20: H1 2014/15 Income Statement – Key Figures
H1 2014/15 Income Statement – Key Figures H1 13/14 Adjustments comprise PPA (€35m), in €m H1 14/15 restated restructuring costs (€17m, including €12m Turnover 6,940.1 6,470.4 merger-related costs), value adjustment for a VAT receivable (€18m) and provision for a Underlying EBITA -272.6 -341.4 pendin
Slide 21: Interest
H1 2014/15 Interest H1 13/14 €m H1 14/15 % restated Debt related interest 1 -77 -100 23 Non-debt related charge -38 -33 -15 Interest income 8 14 -43 Net interest result -107 -119 10 1 thereof cash interest €49m 21 TUI GROUP | H1 2014/15 Analyst & Investor Conference Call | 13 May 2015
Slide 22: Group Cash Flow
H1 2014/15 Group Cash Flow H1 13/14 in €m H1 14/15 restated EBITA reported -368.9 -334.1 Depreciation 213.4 185.6 Working Capital -547.2 -224.1 Other cash effects -241.1 -189.9 Received dividends 8.6 13.1 Tax paid -72.9 -101.3 Interest (Cash) -49.0 -69.1 Pension Contribution UK -93.9 -98.7 Operating
Slide 23: Group balance sheet: Movement in Net Debt
Group balance sheet 31 March 2015 Movement in Net Debt 30 Sep 2014 31 Mar 2014 €m 31 Mar 2015 restated restated Opening net cash / (debt) 293 -97 -97 Movement in cash net of debt -1,570 101 -1,038 Foreign exchange movement -167 -136 -38 Non cash movement in debt - -547* -167 -81 Asset backed finance
Slide 24: Group balance sheet: Net financial debt
Group balance sheet 31 March 2015 Net financial debt 30 Sep 2014 31 Mar 2014 €m 31 Mar 2015 restated restated Financial liabilities 2,739 1,965 3,425 o/w non-current 2,221 1,748 1,794 o/w current 518 217 1,631 Cash 1,045 2,258 2,078 Net debt/(cash) 1,694 -293 1,347 • Increase in net debt since 30 Se
Slide 25: Group balance sheet: Maturity profile
Group balance sheet 31 March 2015 Maturity profile As of 30 September 2014 (€m) Today (€m) 515 Redeemed on 30 Apr 2015 339 300 300 300 300 29 2014 2015 2016 2017 2018 2019 ∞ 2015 2016 2017 2018 2019 ∞ +RCF of GBP1.4bn +RCF of €1.75bn (June 2018) Convertible Bonds High Yield Bond Hybrid Successful op
Slide 26: Summary
Summary Peter Long 26 TUI GROUP | H1 2014/15 Analyst & Investor Conference Call | 13 May 2015
Slide 27: Summary
Summary • Excellent performance in the first half of the year – 1 14% improvement in underlying EBITA • Source Markets improved result • Strong result in Hotels & Resorts and Cruises • Pleased with overall summer trading • Post-merger integration underway with a faster pace • Group has the right bal
Slide 28: Q&A
Q&A 28 TUI GROUP | H1 2014/15 Analyst & Investor Conference Call | 13 May 2015
Slide 29: Appendix
Appendix 29 TUI GROUP | H1 2014/15 Analyst & Investor Conference Call | 13 May 2015
Slide 30: Turnover H1 2014/15
Turnover H1 2014/15 H1 13/14 €m H1 14/15 % restated Northern Region 2,158.8 1,969.6 9.6 Central Region 1,935.0 1,828.9 5.8 Western Region 915.0 928.3 -1.4 Source Markets 5,008.8 4,726.8 6.0 Hotels & Resorts 245.4 211.6 16.0 Cruises 136.2 149.2 -8.7 Other Tourism 240.0 226.8 5.8 Tourism 5,630.4 5,314
Slide 31: Underlying EBITA H1 2014/15
Underlying EBITA H1 2014/15 H1 13/14 €m H1 14/15 % restated Northern Region -109.6 -124.2 11.8 Central Region -93.7 -76.7 -22.2 Western Region -61.7 -69.8 11.6 Source Markets -265.0 -270.7 2.1 Hotels & Resorts 55.6 32.7 70.0 Cruises 18.3 -16.2 n.m. Other Tourism -21.2 -20.9 -1.4 Tourism -212.3 -275.
Slide 32: Pro Forma Underlying EPS
Pro Forma Underlying EPS H1 2014/15 Restated; LateRooms In €m Pro Forma treated as discontinued Underlying EBITA -273 Net interest expense -107 Convertible bond expense 20 Adjusted interest expense -87 Underlying PBT -360 Underlying ETR 25% Minority interest excluding TUI Travel Tax charge 90 Minori
Slide 33: Trading Update Summer 2015
Trading Update Summer 2015 Current trading1 Programme Customers2 ASP2 Sales2 y-o-y variation (%) sold UK 6 Flat 6 62% Germany 3 3 6 59% -10 3 -7 Nordics 62% 3 Flat 2 Benelux 57% Total Source Markets 2 1 3 59% 1. These statistics are up to 3 May 2015 and are shown on a constant currency basis 2. Thes
Slide 34: Source Markets Distribution Mix by Key Source Market
Source Markets Distribution Mix by Key Source Market H1 2015 H1 2014 Third Third Direct/Online Direct/Online Party Party UK 90% / 54% 10% 90% / 51% 10% Nordics 89% / 69% 11% 88% / 67% 12% Germany 43% / 13% 57% 38% / 10% 62% Total Source Markets 70% / 41% 30% 68% / 38% 32% 34 TUI GROUP | H1 2014/15 A
Slide 35: Underlying vs Reported EBITA - Adjustments
H1 2014/15 Underlying vs Reported EBITA - Adjustments H1 13/14 in €m H1 14/15 restated Underlying EBITA -272.6 -341.4 Restructuring expense -16.5 -15.7 Loss on disposals -1.0 -0.5 Other one-off items -43.6 +56.6 PPA -35.2 -33.1 Total Adjustments -96.3 +7.3 EBITA -368.9 -334.1 35 TUI GROUP | H1 2014/
Slide 36: Bond financing & maturity profile
TUI Group Bond financing & maturity profile 31 Mar 2015 Issued Bonds Outstanding Interest % Bond (in €m) Issue Maturity Initial volume volume p.a. Redeemed by Convertible Bond Mar 11 Apr 15 339 2 2.75 7 Apr 15 Redeemed Convertible Bond TUI Travel Apr 10 Apr 15 GBP 200* 8 4.9 by 17 Apr 15 Redeemed Hy
Slide 37: Aircraft Planned order book deliveries – 2015 to 2019
Aircraft Planned order book deliveries – 2015 to 2019 2015 2016 2017 2018 2019 B737 NG 5 - - - B737-MAX - - - 5 14 B787-8 5 1 1 - Planned order book deliveries 2015-2019 10 1 1 5 14 37 TUI GROUP | H1 2014/15 Analyst & Investor Conference Call | 13 May 2015
Slide 38: Aircraft commitments by finance type
Aircraft Aircraft commitments by finance type Operating Lease Finance Lease Owned Held for Sale Total As at 30 September 2014 119 11 6 0 136 1 x B737-800 3 x B787-8 Order book financing 2 x B737-800 2 4 0 0 6 1 x B757-200 & 1 x A321-200 & Other net movements (11) (2) 1 x A330-200 1 Owned to Held 1 (
Slide 39: Pro Forma Turnover
Pro Forma Turnover 2012/13 & 2013/14 €m FY 12/13 Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 FY 13/14 Northern Region 6,037.2 1,047.6 922.0 1,660.0 2,571.2 6,200.8 Central Region 5,524.8 1,022.7 806.2 1,393.4 2,203.7 5,426.0 Western Region 3,019.4 494.2 434.1 782.8 1,259.1 2,970.2 Source Markets 14,581.4 2,
Slide 40: Pro Forma Underlying EBITA
Pro Forma Underlying EBITA 2012/13 & 2013/14 €m FY 12/13 Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 FY 13/14 Northern Region 402.7 -43.8 -80.4 99.1 423.4 398.3 Central Region 152.7 -10.2 -66.5 29.9 209.8 163.0 Western Region 23.2 -27.1 -42.7 2.0 149.5 81.7 Source Markets 578.6 -81.1 -189.6 131.0 782.7 643.
Slide 41: Pro Forma Income Statement – Key Figures
Pro Forma Income Statement – Key Figures 2012/13 & 2013/14 €m FY 12/13 Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 FY 13/14 Turnover 18,296.8 3,343.5 3,126.9 4,777.0 7,289.4 18,536.8 Underlying EBITDA 1,090.4 -64.3 -124.7 248.6 1,140.3 1,199.9 Depreciation -325.9 -75.7 -76.6 -85.1 -92.5 -329.9 Underlying EB
Slide 42: Financial calendar
Financial calendar 13 May 2015 Capital Markets Day & Half Year 2014/15 13 August 2015 Nine Months 2014/15 September 2015 Pre-close trading update December 2015 Financial Year 2014/15 42 TUI GROUP | H1 2014/15 Analyst & Investor Conference Call | 13 May 2015