TUI AG · XETR:TUI1
TUI — Q1 FY2022 Earnings Presentation
32 slides from TUI's earnings presentation, Feb 8, 2022
Slide 1: FY22 Q1 Results
FY22 Q1 RESULTS 8 FEBRUARY 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: Agenda
Agenda 1 Recap – FY22 Q1 Highlights 2 Operational Update 3 FY22 Q1 Results Fritz Joussen Fritz Joussen Sebastian Ebel 4 5 Strategic Summary Appendix Fritz Joussen 3 TUI GROUP | FY22 Q1 Results | 8 February 2022
Slide 4: FY22 Q1 delivering further operational and financial progress with encouraging early indications for Summer 22
FY22 Q1 delivering further operational and financial progress with encouraging early indications for Summer 22 • 67% capacity of FY19 Q1 operated in line with expectations • 2.3m customers departed in the quarter, +1.7m versus prior year Q1, achieving 79% load factor • Q1 Und. EBITDA almost break-ev
Slide 5: Agenda
Agenda 1 Recap – FY22 Q1 Highlights 2 Operational Update 3 FY22 Q1 Results Fritz Joussen Fritz Joussen Sebastian Ebel 4 5 Strategic Summary Appendix Fritz Joussen 5 TUI GROUP | FY22 Q1 Results | 8 February 2022
Slide 6: Significant ramp-up of operations vs. prior year
Significant ramp-up of operations vs. prior year Hotels & Resorts Cruise (No. of available bednights) (Ships in operation/full fleet) 8.6m1 5.2m 14 / 16 5 / 15 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 TUI Musement Markets & Airlines (Excursions sold) (Departed pax) 1,053k 109k 2.3m2 0.5m FY22 Q1 FY21 Q1 FY22
Slide 7: 6.0m bookings across both seasons – Omicron impact on Nov/Dec bookings
6.0m bookings across both seasons – November and December bookings impacted by Omicron, expect later booking trend to continue for both seasons, Summer on track OVERALL BOOKING DEVELOPMENT W21/22 Net weekly bookings as % of W18/19 Versus 2018/19 W21/22 S22 BOOKINGS1 (42%) (28%) 100 94 +15% +22% ASP
Slide 8: Latest development: Summer on track, capacity close to normalised S19 levels
Latest development: Summer on track - expect Summer 22 capacity to trend close to normalised S19 levels based on improving customer confidence and later booking profile S22 Net weekly bookings as % of S19 100 • L4W has seen an acceleration in bookings reflecting a 100 return of confidence in departu
Slide 9: Winter 21/22 & Summer 22: Diversified and integrated model a clear advantage
Winter 21/22 & Summer 22: Diversified and integrated model a clear advantage for Holiday Experiences segment CURRENT TRADING ENVIRONMENT • Diversified destinations and markets will continue to benefit the segment – expect the Canaries, Caribbean, HOTELS & RESORTS Cape Verde and Egypt to be key winte
Slide 10: Digital enhancement & collaboration driving further online distribution
Digital enhancement & collaboration driving further online distribution and operational benefits – Q1 package departure penetration of 68% TUI APP DIGITAL COLLABORATIONS Launched FY22 Q1 APP FEATURES /Updates Inflight brochures ✓ Map search: Excursions ✓ Implementation of machine learning to enhance
Slide 11: TUI leading sustainability
TUI leading sustainability No.1 + No.41 Rhodes first sustainable destination in public private partnership 80% certified2 Most modern fleet 1 Atmosfair Airline Index 2018 England and Germany | 2 Pre-crisis year 2019, Global Sustainable Tourism Criteria (GSTC) Certificate 11 TUI GROUP | FY22 Q1 Resul
Slide 12: TUI initiates international hotel fund with HANSAINVEST as AIFM
TUI initiates international hotel fund with gross target volume of ~€500m with HANSAINVEST as AIFM, strengthening our asset-right growth TUI GLOBAL HOSPITALITY FUND S.C.S., SICAV-RAIF STRUCTURE STRATEGIC RATIONALE • First Hotel Fund by HansaInvest focused on global • High market demand for real-esta
Slide 13: Agenda
Agenda 1 Recap – FY22 Q1 Highlights 2 Operational Update 3 FY22 Q1 Results Fritz Joussen Fritz Joussen Sebastian Ebel 4 5 Strategic Summary Appendix Fritz Joussen 13 TUI GROUP | FY22 Q1 Results | 8 February 2022
Slide 14: Income Statement – Und. EBIT improved by €0.4bn
Income Statement – Und. EBIT improved by €0.4bn, Und. EBITDA almost at break-even continuing positive trend from Q4 REVENUE In €m (IFRS 16) FY22 Q1 FY21 Q1 ∆ YOY • ~€2.4bn of revenue generated in Q1, +€1.9bn YoY, driven by increased levels of operations Revenue 2,369 468 • Markets 1,901 & Airlines a
Slide 15: Q1 result – Improved Und. EBIT achieved across all segments
Q1 result – Improved Und. EBIT achieved across all segments due to increased activity, higher utilisation and stronger ASPs HOLIDAY EXPERIENCES MARKETS & AIRLINES FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 61 Q1 YoY Und. EBIT €m Und. EBIT €m Q1 YoY HOTELS & Av. Bednights: 8.6m +66% NORTHERN RESORTS Occupancy:
Slide 16: Q1 result – Significant improvement due to increased level of operations
Q1 result – Significant improvement due to increased level of operations FY21 Q1 vs. FY22 Q1 UNDERLYING EBIT IN €M YoY One-Offs -€34m -274 • -€34m Net hedge Holiday Experiences: +€241m YoY ineffectiveness • Improved contribution due to increase in levels of operations. -5 • Hotels & Resorts 8.6m bed
Slide 17: Q1 Cash Flow driven by lower seasonal WC outflow
Q1 Cash Flow driven by lower seasonal WC outflow & proceeds from capital increase In €m (IFRS 16) FY22 Q1 FY21 Q1 WORKING CAPITAL Underlying EBITDA -65 -458 • As expected Q1 working capital outflow of €937m significantly less than usual due to lower Adjustments 10 -17 Summer 21 business volume Repor
Slide 18: Strong liquidity position of €3.3bn
Strong liquidity position of €3.3bn1, reflecting strict cost discipline, lower working capital swing, and proceeds from recent capital increase SUMMARY – LIQUIDITY DEVELOPMENT €bn Cash & avail. fac. 6 December 2021 ~3.5 • ~€0.7bn will be first step in handing back Cash outflow December & January -0.
Slide 19: Movement in Net Debt
Movement in Net Debt FY21 YE to FY22 Q1 In €m FY22 Q1 FY21 YE In €m FY22 Q1 FY21 YE IFRS 16 IFRS 16 QoQ ∆ IFRS 16 IFRS 16 QoQ ∆ Opening net debt as at 1 October -4,954 -6,421 1,467 Financial liabilities -6,837 -6,550 -287 FCF after Dividends -1,112 143 -1,256 - Lease liabilities under IFRS16 -3,260
Slide 20: Reiterate capital structure development & ongoing priorities
Reiterate capital structure development & ongoing priorities GENERATE DRIVE OPERATING OPTIMISE FINANCING CASH FLOW EFFECTIVENESS • Continue with strict cash discipline • Lowered and continue to optimise • Maximise de-lever opportunities, • Manage working capital flow back (fixed) capacity including
Slide 21: Agenda
Agenda 1 Recap – FY22 Q1 Highlights 2 Operational Update 3 FY22 Q1 Results Fritz Joussen Fritz Joussen Sebastian Ebel 4 5 Strategic Summary Appendix Fritz Joussen 21 TUI GROUP | FY22 Q1 Results | 8 February 2022
Slide 22: Our 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 TUI GROUP | FY22 Q1 Results | 8 February 2022 Expand tours & activity Drive digitalisation & Growth through asset- Execute Global segment dynamic packaging right fi
Slide 23: Agenda
Agenda 1 Recap – FY22 Q1 Highlights 2 Operational Update 3 FY22 Q1 Results Fritz Joussen Fritz Joussen Sebastian Ebel 4 5 Strategic Summary Appendix Fritz Joussen 23 TUI GROUP | FY22 Q1 Results | 8 February 2022
Slide 24: Appendix
APPENDIX
Slide 25: Global Realignment Programme on track to meet ~€400m p.a. 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 already agreed REDUCE COSTS P&L view • TUI Musement: significant progress made to transform
Slide 26: FY22 Modelling Assumptions remain per 8 December 2021
FY22 Modelling Assumptions remain per 8 December 2021 FY22e1 FY21A Revenue Expect significant increase year-on-year €4,732m Underlying EBIT Expect significant improvement year-on-year -€2,075m Adjustments2 -€90m to -€110m +€63m Net interest3 -€380m to -€425m -€449m Capex & Finex: -€300m to -€350m Di
Slide 27: Movement in Net Debt
Movement in Net Debt FY21 Q1 to FY22 Q1 In €m FY22 Q1 FY21 Q1 In €m FY22 Q1 FY21 Q1 YoY ∆ IFRS 16 IFRS 16 YoY ∆ IFRS 16 IFRS 16 Financial liabilities -6,837 -8,442 1,606 Opening net debt as at 1 October -4,954 -6,421 1,467 - Lease liabilities under IFRS16 -3,260 -3,275 15 FCF after Dividends -1,112
Slide 28: Financing facilities and support packages overview
Financing facilities and support packages overview (per 3 February 2022) Support Instrument Facility €m Utilisation €m Debt/equity Maturity date package # - 1,535 1,488m drawn Debt RCF - 215 guarantee line - July 2024 (unsecured) Bank 1&2 2,850 450m drawn Debt facilities RCF 3 1701 undrawn Debt July
Slide 29: FY22 Q1 Revenue by Segment
FY22 Q1 Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)1 FY22 Q1 FY21 Q1 In €m Change incl FX FX Change ex FX IFRS 16 IFRS 16 Hotels & Resorts 198.3 56.5 141.9 1.3 140.5 - Riu 162.4 41.9 120.5 1.2 119.4 - Robinson 20.6 6.6 14.0 0.2 13.8 - Blue Diamond - - - - - - Other 15.3 8.0
Slide 30: FY22 Q1 Underlying EBITDA by Segment
FY22 Q1 Underlying EBITDA by Segment1 FY22 Q1 FY21 Q1 In €m Change incl FX FX Change ex FX IFRS 16 IFRS 16 (adj.)4 Hotels & Resorts 107.0 -41.5 148.6 1.4 147.2 - Riu 86.3 -11.1 97.4 0.7 96.7 - Robinson 10.8 -6.8 17.5 0.1 17.4 - Blue Diamond 4.8 -13.6 18.4 0.4 18.0 - Other 5.2 -10.1 15.3 0.1 15.1 Cru
Slide 31: FY22 Q1 Underlying EBIT by Segment
FY22 Q1 Underlying EBIT by Segment1 FY22 Q1 FY21 Q1 In €m Change incl FX FX Change ex FX IFRS 16 IFRS 16 (adj.)4 Hotels & Resorts 61.1 -95.6 156.8 1.1 155.7 - Riu 62.1 -36.9 98.9 0.6 98.4 - Robinson 1.4 -16.8 18.2 0.1 18.1 - Blue Diamond 4.8 -13.6 18.4 0.4 18.0 - Other -7.2 -28.4 21.2 0.1 21.2 Cruis
Slide 32: Contact
ANALYST AND INVESTOR ENQUIRIES Contact 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: +