TUI Group Investor Presentation June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 FORWARD-LOOKING STATEMENTS Conventions • Bullet points & standard text in TUI-Dark Blue 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 assumptions involve risks and uncertainties which may give rise to situations in which the actual results differ substantially from the expected ones. The potential reasons for such differences include market
New TUI-Blue fluctuations, the development of world market fluctuations, New TUI-Grey 25% Achromatic 112.203.244 the development of world market commodity prices, the development 220.220.220 of exchange rates or fundamental changes in the economic environment. TUI New TUI-Blue 50% does not intend or assume any obligation to update any forward-looking New TUI-Grey 194.230.250 statement to reflect events or circumstances after the date 115.115.115 of these materials.
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
2 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & 1 2 3 standard text in Overview & Business Investing in Financing Growth & TUI-Dark Blue Model Transformational Outlook Growth 4 5 H1 2016/17 Results Appendix – 2015/16
New TUI-Blue & H1 206/17 Results New TUI-Grey 25% Achromatic 112.203.244 and Factbook 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
3 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Opening Remarks New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue Good overall performance Delivering our transformation, Successful migration to in H1 with significant growth in hotel one brand continues and cruise profits
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 More relevant to more Proven resilience of the Reiterate our guidance TUI-Dark Blue customers – growth in integrated model and of at least 10% growth TUI-Black 9.42.94 customers in H1 and for balanced portfolio of in underlying EBITA 0.0.0 Primary colours Primary Summer 2017 markets and destinations in 2016/171 TUI-White 255.255.255 1 At constant currency rates and based on current Group structure
4 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight The world’s leading integrated tourism business New TUI-Green • Font size14pt based on own hotels and cruise brands 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue
Control over content – Growth is de-risked through hotels and cruises – is key our strong distribution to achieving differentiation capability from the competition and to and our direct customer
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 delivering growth relationships 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255 FOCUSSED ON DELIVERING TRANSFORMATIONAL GROWTH WITH ROIC SIGNIFICANTLY IN EXCESS OF OUR COST OF CAPITAL
5 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight TUI Group – A clear structure to deliver growth and value New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue TOURISM
Conventions • Bullet points & standard text in MARKETING & SALES HOTELS & RESORTS CRUISES TUI-Dark Blue IN SOURCE MARKETS Tour operator Hotelportfolio Cruise ship fleet • Travel Agencies • 324 hotels • 14 cruise ships across 3 brands3 • Internet Portals • 215,600 beds • TUI Cruises, Hapag-Lloyd Cruises • Mobile Services • Well known brands & Thomson Cruises • Destination Services • Airlines
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 Revenue Revenue Revenue 220.220.220 €15.0bn €619m €703m New TUI-Blue 50% New TUI-Grey 194.230.250 EBITA EBITA EBITA 115.115.115 €554m €304m €191m TUI-Dark Blue TUI-Black 9.42.94 19.2 million 78% 103% 0.0.0 Primary colours Primary customers1 occupancy occupancy2 TUI-White 255.255.255 TUI GROUP – REVENUE: €17.2BN, UNDERLYING EBITA: €1,001M 1 Excludes strategic ventures in Canada and Russia/CIS 2 TUI Cruises 3 There are 16 ships in total as at June 2017, with the addition of TUI Discovery 2 in Thomson Cruises and MS6 in TUI Cruises
6 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight TUI Group – Our Transformation New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 WHERE • Strong heritage as WHAT • End to end customer experience
Conventions • Bullet points & trading companies across the value chain standard text in WE HAVE WE ARE TUI-Dark Blue • Based on loose federation • Integrated decision making and COME FROM of tour operators DELIVERING global scale based on six common • High level of seasonality platforms – Brand, IT, Airline, Hotels, Cruises, Destination Services • Significant airline and hotel capacity commitment • Disciplined investments in differentiation, in pockets of growth and where there is • Varying levels of efficiency scarcity of supply across markets Integrated model enables us to • Competition from online travel • New TUI-Blue agents and low cost carriers deliver around 50% of earnings New TUI-Grey 25%
from content businesses* Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 THE WORLD’S LEADING INTEGRATED TOURISM BUSINESS 115.115.115
TUI-Dark Blue BASED ON OWN HOTEL AND CRUISE BRANDS TUI-Black
9.42.94 *Hotels and Cruises (TUI Cruises, Thomson Cruises, and Hapag-Lloyd Cruises) 0.0.0 Primary colours Primary TUI-White 255.255.255
7 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue Investing in 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue Transformational Growth
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
8 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight What we are delivering New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & Hotel Cruise standard text in Growth Growth TUI-Dark Blue
THE TUI TRANSFORMATION
New TUI-Blue Efficiencies Digital New TUI-Grey 25% Achromatic 112.203.244 Transformation 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue One TUI-Black
9.42.94 Brand 0.0.0 Primary colours Primary TUI-White 255.255.255 THE WORLD’S LEADING INTEGRATED TOURISM BUSINESS BASED ON OWN HOTEL AND CRUISE BRANDS
9 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruise Growth New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue Focused on developing our position in Europe 255.225.0
Conventions • Bullet points & and in luxury/expedition cruising standard text in TUI-Dark Blue TURNOVER €M • TUI Cruises - three new additions FY14 381 317 281 since merger
FY15 614 374 273 • Modernisation of Thomson Cruises underway FY16 807 406 297 • Turnaround of Hapag-Lloyd Cruises PAX K now complete New TUI-Blue New TUI-Grey 25%
FY14 205 237 34 Achromatic 112.203.244 220.220.220 FY15 328 247 30 New TUI-Blue 50% FY16 405 245 29 New TUI-Grey 194.230.250 115.115.115 UNDERLYING EBITA* €M TUI-Dark Blue TUI-Black 9.42.94 FY14 78. 19 -22 0.0.0
Primary colours Primary FY15 156 41 13 TUI-White 255.255.255 FY16 227 61 30
*Based on 100% for TUI Cruises
10 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruise – Growth Roadmap New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 GROWTH ROADMAP
Conventions • Bullet points & standard text in 2017-2019 TUI-Dark Blue 3 new builds 2 further ships 2 new builds invested within JV ~€200m per ship ~€145m per ship
CONTRIBUTION TO ~€25m-€30m per ~€25m per new ~€15m per new UND. EBITA new ship* ship** expedition ship
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black 9.42.94 0.0.0
Primary colours Primary STRONG ROIC OF 21.3%*** TUI-White 255.255.255 SIGNIFICANTLY AHEAD OF SEGMENTAL WACC OF 7.5% * Based on 50% share of EAT for TUI Cruises ** Includes MS1 and MS2 - these ships combined currently generate ~€25m share of EAT within TUI Cruises *** Reflects TUI Cruises and Hapag-Lloyd Cruises ROIC
11 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruise Ships & Aircraft Finance New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue CRUISE SHIPS AIRCRAFT
Conventions • Bullet points & standard text in Cruise Fleet By Ownership Structure Aircraft Fleet By Ownership Structure TUI-Dark Blue as at 30/9/2016 as at 30/9/2016
Owned Finance Operating Owned Finance Operating Cruise Brand Lease Lease Total Structure Lease Lease (FV) Total
TUI Cruises (JV) 5 - - 5 # of Aircraft 8 16 125 149
Thomson Cruises - 3 2 5 Financing ~€0.1bn* ~€1bn ~€2bn €3.0bn Hapag-Lloyd
New TUI-Blue • Order book for 787s and 737-MAXs New TUI-Grey 25% Achromatic 112.203.244 Cruises 3 - 1 4 220.220.220 • Net PDPs ~€200m/~€100m/~€100m in New TUI-Blue 50% next three years New TUI-Grey New build ships typically 80% debt/20% equity 194.230.250 • • Financing method for new aircraft deliveries 115.115.115 finance typically by operating or finance lease structures TUI-Dark Blue • TUI Cruises investments ring fenced within joint providing 100% financing and will be reviewed on TUI-Black
9.42.94 venture (3 more ships to come) a case by case basis 0.0.0 Primary colours Primary *Reflects debt finance for two aircraft only, remaining aircraft wholly owned TUI-White • Thomson Cruises - fleet modernisation, 3 more 255.255.255 ships to come, 1 owned, 2 to be determined
12 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use Non-risk (Managed) TUITypeLight Hotel Growth since Merger Risk (Owned/Joint Venture/Leased) New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 Croatia
Conventions • Bullet points & standard text in Greece TUI-Dark Blue Rhodes Dublin Berlin Cyprus New York Bulgaria Portugal Ibiza Italy Dom Rep Djerba Tenerife Turkey
Jamaica Maldives
New TUI-Blue Aruba St. Lucia New TUI-Grey 25% Achromatic 112.203.244 Sri Lanka 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 Mauritius
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255 • 27 group hotels additions plus further re-positioings and third party concept openings since merger • Focussed on scaling up proven destinations and where there are pockets of growth • Growth delivered through our core hotel, club and concept brands
13 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels – Growth Roadmap New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
GROWTH ROADMAP 2017-2019 STRUCTURE CONTRIBUTION TO UND. EBITA
Conventions • Bullet points &
standard text in ++ TUI-Dark Blue Indicative split of future growth • Ownership/JV in high Owned
capex by destination growth regions, where Range of earnings there is scarcity of supply Year-Round
duration Season Managed
New TUI-Blue • Management Range of earnings New TUI-Grey 25% Achromatic 112.203.244 elsewhere when 220.220.220 possible Earnings New TUI-Blue 50% Summer Only ++ New TUI-Grey 194.230.250 115.115.115 ~40-45 additional hotel openings On average ~€2m
TUI-Dark Blue by end of 2018/19 per new hotel* TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White ROIC HURDLE OF 15% IS SIGNIFICANTLY AHEAD 255.255.255 OF SEGMENTAL WACC OF 6.5% *Based on profitability of Riu and Robinson and current mix of ownership models
14 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Integrated model enables us to deliver around 50% of earnings from New TUI-Green • Font size14pt content 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 OUR CONTENT BUSINESSES CONTENT BUSINESSES1 MIX Conventions • Bullet points & €495m standard text in ARE LESS SEASONAL TUI-Dark Blue
Hotels Q1 Q2 Q3 Q4 FY16 Source Markets, Destination Content Businesses Underlying EBITA FY16 Services
New TUI-Blue Group Underlying EBITA FY16 €1,001m & All Other New TUI-Grey 25% Achromatic 112.203.244 Cruises 220.220.220 (including New TUI-Blue 50% Thomson) New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue Q1 Q2 Q3 Q4 FY16 TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White GROWTH IN CONTENT IS DE-RISKED 255.255.255 THROUGH OUR DIRECT CUSTOMER RELATIONSHIPS 1 Hotels and Cruises (TUI Cruises, Thomson Cruises, & Hapag-Lloyd Cruises)
15 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Investment in IT and Digital Transformation New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue KEY PROJECTS FEATURES ROADMAP 255.225.0
Conventions • Bullet points & A rich, immersive • Holiday search & book • Common platform live in all Source standard text in “TUI APP” experience at the heart • Holiday information & Markets except Germany, which will TUI-Dark Blue of our mobile vision ancillary booking be rolled out in mid-December • Contact your rep • Single view of the customer • First Version live in Germany CUSTOMER • Customer service app for • Roll out to come FY17/FY18 PLATFORM Destination Services • (Destination services Q2, UK Q4, Belgium Q4, Nordics Q2 FY18)
Using customer insight to provide • Capture & analyse customer • Netherlands, Belgium, Nordics
New TUI-Blue GROUP more personalised customer interactions across all channels live Germany Feb 2017, UK Sep 2017 New TUI-Grey 25% Achromatic 112.203.244 MARKETING service and marketing • Campaign management system (already working with previous 220.220.220 PLATFORM across all channels version) • Implementation of marketing New TUI-Blue 50% programme across the customer New TUI-Grey 194.230.250 experience 115.115.115
Bespoke IT solution to automate • Solution rolled out to • Targeting roll out to further TUI-Dark Blue YIELD TUI-Black 9.42.94 the management and pricing of Nordics in 2016 markets including Germany 0.0.0
MANAGEMENT holidays 24-7 over next 24 months Primary colours Primary TUI-White DIGITAL TRANSFORMATION FOCUSED ON CUSTOMER 255.255.255 EXPERIENCES AND BUSINESS EFFICIENCY
16 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight One Brand New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 GROWTH Renaming offers opportunity OPERATIONAL Operational efficiency Conventions • Bullet points & POTENTIAL to reposition EFFICIENCY by optimising content standard text in and marketing production TUI-Dark Blue 360° End to end consistent COMPETITIVE- Competitive strength against EXPERIENCE customer experience NESS global platforms including media power
DIGITAL Opportunity for BRAND One global brand, PRESENCE more impact through EQUITY with local roots
New TUI-Blue centralised URL New TUI-Grey 25% Achromatic 112.203.244 220.220.220 BRAND MIGRATION WILL BE FUNDED New TUI-Blue 50% New TUI-Grey 194.230.250 FROM ONGOING OPERATIONAL EFFICIENCY AND INCREASED REVENUES 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
17 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Efficiencies New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 ONE AVIATION Central platform • One central organisation across • Maintenance – One engineering Conventions • Bullet points & for local airlines five AOCs & maintenance function standard text in • Purchasing & Finance – one • Interoperability among fleet TUI-Dark Blue procurement organisation, and crew leveraging scale on all contracts
DESTINATION Unique Destination • > 100 destinations and • Seamless cloud based customer SERVICES Services brings the > 11 million customers platform, the same as we will use in the Source Markets TUI brand alive • Carve out complete – from Hotelbeds to Tourism
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220 CONSOLIDATION Opportunities for • Completion of Transat acquisition, will deliver ~€25-30m of efficiencies New TUI-Blue 50% consolidation to New TUI-Grey 194.230.250 strengthen our 115.115.115 market position
TUI-Dark Blue TUI-Black
9.42.94 OPERATIONAL EFFICIENCIES DELIVERED THROUGH CENTRAL CONTROL 0.0.0 Primary colours Primary TUI-White 255.255.255
18 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight1,0 Mrd. € = Delivering growth in Germany Ziel oneTUI New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue • Germany has the DNA to be a successful market; Large population with affluent demographics, 255.225.0 TUI voted Germany’s most trusted travel brand1, with high average customer spend Conventions • Bullet points & standard text in • Significant overcapacity in German aviation market – we intend to address this with our TUI-Dark Blue Joint Venture discussion with Etihad Aviation Group • With a new airline group established on a more beneficial commercial structure, we intend to gain from a broader market access, effecting change to our current level of distribution • Important step in our 3-5 year journey of improvement in Germany
MARKET SHARE* DISTRIBUTION TUIFLY FLEET
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey TUI 57% 55% Third party 194.230.250 Air Berlin 115.115.115 All others Franchise W/Lease Operated 1) 14 x B737 by TUI Fly Thomas Own retail 17% TUI-Dark Blue Cook 16% 27 x TUI-Black 9.42.94 FTI Gp 14% 14% Online B737-800 0.0.0 13% 14% Primary colours Primary DER TUI-White FY15 FY16 255.255.255 *Company estimates, 2015 data - rebased based on GfK Tour Operator Market Share data
1 Source: Reader’s Digest Trusted Brand 2016
19 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue Financing Growth & Outlook 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
20 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Financing Growth & Mechanics of Transformation New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark DISPOSAL PROCEEDS & REINVESTMENT EARNINGS TRANSFORMATION FY16 TO FY20* TUI-Yellow Blue 255.225.0
Conventions • Bullet points & + Travelopia ~40-45 hotels + Hapag-Lloyd AG standard text in contributing ~€2m TUI-Dark Blue per new hotel
~€600m ~€90m
Additional top up payment September 2016
New TUI-Blue €1.1bn €11m New TUI-Grey 25% Achromatic 112.203.244 220.220.220 Discovery 2 €174m ~€25- Expedition ships 30m New TUI-Blue 50% €55m New TUI-Grey 194.230.250 €93m 115.115.115 €290m ~€55m TUI-Dark Blue TUI-Black 9.42.94 0.0.0 Transat Hotelbeds & Primary colours Primary ConsiderationHotelbeds proceeds Cruises T UK pensions Hotels Hotelbeds Cruises Transat UK Hotels Travelopia net of costs (EV) & pensions TUI-White TravelopiaFY16 Und. 255.255.255 EBITAFY16
* Based on underlying EBITA run rate; UK pensions based on notional interest impact
21 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Investing in Transformational Growth New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 DISPOSALS CAPEX
Conventions • Bullet points & standard text in + Travelopia TUI-Dark Blue + Hapag-Lloyd AG ~€1.0bn
xx
~€0.8bn €0.6bn
New TUI-Blue Hotelbeds New TUI-Grey 25% Achromatic 112.203.244 €1.1bn Normalised capex 220.220.220 ~3.5% of Revenue New TUI-Blue 50% New TUI-Grey Hotels ~40% 115.115.115 194.230.250 Cruises ~20% IT ~20% TUI-Dark Blue Other ~20% TUI-Black 9.42.94 0.0.0
Primary colours Primary ConsiderationConsideration net of FY16 FY17 FY18 and FY19 TUI-White costs
255.255.255 * Guidance excludes aircraft order book finance (pre delivery payments and liquidations, owned and finance leased aircraft); Net PDPs ~€200m/~€100m/~€100m in next three years
22 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Financial Targets New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue • Current corporate credit ratings “BB” from S&P and “Ba2” from Moody’s 255.225.0 Upgraded by S&P from “BB-” in February 2017 and upgraded by Moody’s from “Ba3” in April 2016
Conventions • Bullet points & standard text in • We are committed to improving our credit metrics, therefore we are setting TUI-Dark Blue new financial targets for 2016/17 as follows:
Ratio* Target 2015/16 Actual 2015/16 Target 2016/17 Leverage ratio 3.5 to 2.75 times 3.3 times 3.25 to 2.5 times
Interest cover 4.5 to 5.5 times 4.8 times 4.75 to 5.75 times
New TUI-Blue New TUI-Grey 25%
• Ratios are based on gross debt including pensions and leases Achromatic 112.203.244 220.220.220 • Focus on rating to obtain advantageous financing conditions and ensure New TUI-Blue 50% access to debt capital markets New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
23 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Committed to an Attractive Dividend Payout New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 DIVIDEND PER SHARE (IN €C) DIVIDEND PAYOUTS (IN €M)**
Conventions • Bullet points & standard text in 63 cents 370 TUI-Dark Blue Merger 6 329 7 Based on 56 cents underlying earnings 5 growth 7
Additional 4 10%* 95 New TUI-Blue New TUI-Grey 25%
Base 38 Achromatic 112.203.244 58 220.220.220 51 2012/13 2013/14 2014/15 2015/16 New TUI-Grey New TUI-Blue 50% 45 194.230.250 115.115.115 We are committed to delivering a growth
TUI-Dark Blue strategy which will enable superior TUI-Black 9.42.94 returns for our shareholders 0.0.0
Primary colours Primary 2014/15 2015/16 2016/17 indicative TUI-White only 255.255.255 * for FY 2014/15 and 2015/16 as announced at the time of the merger **TUI AG dividend relating to financial years, paid out in the following calendar year
24 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Growth Roadmap - Summary New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue At least 10%* 255.225.0 DRIVERS WHAT IMPACT?* BY WHEN? underlying EBITA Conventions • Bullet points & standard text in CAGR to 2018/19 TUI-Dark Blue
GROWTH IN OUR • ~40-45 further openings in • ~€2m und. EBITA per hotel** • End of 2018/19 Group hotels HOTEL & CRUISE Earnings dilution from BRANDS • TUI Cruises - 3 new ships • ~€25-30m share EAT per ship • S17, S18, S19 disposals offset by • MS1 & MS2 move to UK Fleet • Currently generate ~€25m share • S18, S19 investment in of EAT in TUI Cruises • Thomson Cruises - 3 new ships • S17, S18, S19 transformational • ~€25m und. EBITA per ship growth • HL Cruises - 2 new • ~€15m und. EBITA per ship • Spr & Aut 2019 expedition ships
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220 • Profitable top line growth which • ~3% per annum • Ongoing BRAND, IT AND outperforms the market New TUI-Blue 50% EFFICIENCIES Integrated model New TUI-Grey • France – break even & deliver • ~2.5% und. EBITA margin • End of 2018/19 delivers sustainable 194.230.250 benefits of Transat acquisition 115.115.115 growth • Deliver remaining synergies • ~€20m und. EBITA benefit • End of 2017/18
TUI-Dark Blue TUI-Black 9.42.94 0.0.0 BALANCE SHEET • Investment in transformational growth in medium term, Primary colours Primary Balanced guidance STRENGTH & financed by strong operating cash flow and disposal proceeds TUI-White approach FLEXIBILITY • Attractive dividend policy 255.255.255 *At constant currency rates **Based on profitability of RIU and Robinson and current mix of ownership models
25 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use * TUITypeLight Outlook 2016/17 – Continuing Operations Basis New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue Metric 2015/16 2016/17e
Conventions • Bullet points & standard text in Turnover €17,185m ~3% growth TUI-Dark Blue Underlying EBITA €1,001m At least 10% growth
Adjustments €102m ~€100m (increased from ~€80m)
Net Interest €180m ~€140m (reduced from ~€160m) Net Capex & Investments** €642m ~€1bn
New TUI-Blue Net Cash/Debt €32m net cash ~€0.8bn net debt New TUI-Grey 25% Achromatic 112.203.244 see footnote 220.220.220 Underlying Effective Tax Rate 25% 20%
New TUI-Blue 50% * Assuming constant foreign exchange rates are applied to the result in the current and prior period New TUI-Grey 194.230.250 and based on the current group structure; guidance relates to continuing operations and excludes 115.115.115 the impact of the JV negotiations for TUI fly and any disposal proceeds for Travelopia and Hapag-Lloyd AG ** 2015/16 excludes Hotelbeds Group proceeds TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
26 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Summary New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 1 At constant currency rates and based on current Group structure 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue The Group has delivered Summer 2017 continues Continuing to deliver our a good H1 overall to trade in line with our expectations transformation, focussed on growth of own hotel and cruise brands and driving further value from our source markets
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 Our strategy, operational experience Based on our first half performance
and integrated model mean that we and current trading, we reiterate our TUI-Dark Blue TUI-Black 9.42.94 are well placed to deal with macro- guidance of at least 10% growth in 0.0.0
economic and geopolitical challenges underlying EBITA in 2016/171 Primary colours Primary TUI-White 255.255.255 1At constant currency and based on current group structure
27 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue H1 2016/17 Results 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
28 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight H1 Review New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue • Good overall performance in H1 255.225.0 driven by growth in Hotels & Resorts Conventions • Bullet points & standard text in and Cruises TUI-Dark Blue UNDERLYING • Further merger synergies of TURNOVER €6.4bn EBITA €-214.3m €10m achieved in the half • Current trading for Summer 2017 in +3.3% / -3.8% / line with our expectations 1 2 • Improved working capital seasonality +8.2% +6.3% as we deliver our transformation
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 • Clearer segmental reporting 220.220.220 to better demonstrate the New TUI-Blue 50% performance of hotel and New TUI-Grey REPORTED cruise businesses 194.230.250 OPERATING 115.115.115 EBITA €-251.9m • Travelopia disposal on track TUI-Dark Blue CASHFLOW to complete during H2 TUI-Black
9.42.94 -4.6%/ IMPROVEMENT 0.0.0 Primary colours Primary TUI-White 2 255.255.255 +3.7% +€0.3bn 1 At constant currency rates 2 On LFL basis excluding Easter timing and at constant currency
29 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight TUI Group New TUI-Green • Font size14pt Underlying EBITA Bridge H1 2016/17 in €m 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue
-193 -206 €37m -214 -237
2
New TUI-Blue 10 -24 New TUI-Grey 25% Achromatic 112.203.244 25 220.220.220 -38 31 17 New TUI-Blue 50% New TUI-Grey 194.230.250 H1 15/16 Restatement H1 15/16 Underlying Merger Aircraft TUI fly H1 16/17 Easter timing FX H1 16/17 115.115.115 for Continuing Trading Synergies Financing sickness Continuing translation Continuing
TUI-Dark Blue Discontinued Ops Ops LFL basis Ops TUI-Black Ops
9.42.94 0.0.0 Primary colours Primary TUI-White REDUCTION IN THE SEASONAL UNDERLYING EBITA LOSS 255.255.255
30 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 TURNOVER AND EARNINGS (€M) BRIDGE UNDERLYING EBITA (€M)
Conventions • Bullet points & 3 -3 standard text in H1 H1 5 -9 -3 % TUI-Dark Blue 16/17 15/16 34 12 Turnover 300.0 266.0 12.8 135 Underlying 123 122.8 96.0 27.9 96 EBITA 84 o/w Equity 42.8 30.8 39.0 results H1 15/16 Reclassificati H1 15/16 RIU Robinson Blue Other H1 16/17 Easter FX H1 16/17
New TUI-Blue Continuing on of Blue Restated Diamond Continuing timing Continuing New TUI-Grey 25% Achromatic 112.203.244 Ops Diamond Continuing Ops LFL Ops 220.220.220 Ops Basis Segment now includes Blue Diamond hotels New TUI-Blue 50% New TUI-Grey 194.230.250 BUSINESS • Our popular brands, integrated model and strong presence • Robinson also delivered a good performance with 115.115.115 in year round destinations continue to drive high levels of 3% growth in average revenue per bed overall DEVELOPMENT occupancy rates - Riu 88%, overall Hotels & Resorts 75% • As expected result were partly offset by adverse impact TUI-Dark Blue * whilst still delivering 5% growth in average revenue per bed TUI-Black H1 2016/17 from subdued demand for Turkey and North Africa 9.42.94 • Riu delivered another strong performance, particularly in 0.0.0
Primary colours Primary Spain and Mexico with 7% growth in average revenue per TUI-White bed. The result was partly offset by the gain on disposal of 255.255.255 Riu Tropicana in the prior year
*At constant currency rates and excluding Easter timing
31 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotel Openings & Pipeline New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue OCT 2016 MAY 2017 DEC 2017 255.225.0 Opened Nov 2016 2 Hotels, 1 Resort, Opened March 2017 Opened Nov 2016 Openings calendar H2 Openings calendar H2
Conventions • Bullet points & Blue Diamond Blue Diamond RIU Reggae TUI Blue Jadran Royalton Blue Royalton & Riu Dunamar standard text in Jamaica Croatia Waters Jamaica Hideaway Negril Mexico TUI-Dark Blue O O O F O
Repositioned Nov 2016 Repositioned Dec 2016 Opened Apr 2017 Openings calendar H2 Openings calendar H2 TUI Blue Pulse TUI Blue Fleesensee TUI Blue Selection Robinson Club Robinson Club Khao Schladming, Austria Germany II Castelfalfi, Italy Noonu, Maldives Lak, Thailand O M O O O
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
2 Hotels, 1 Resort, Opened Feb 2017 New TUI-Blue 50% Opened Nov 2016 Blue Diamond New TUI-Grey 194.230.250 TUI Blue Jardin Royalton & Hideaway 115.115.115 Tropical, Tenerife St Lucia F O
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255 DELIVERING GROWTH AND SUPERIOR RETURNS WITH A BALANCED OWNERSHIP MODEL Key- O = Ownership; L = Lease; M = Management; F = Franchise
32 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruises New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 TURNOVER AND EARNINGS (€M) BRIDGE UNDERLYING EBITA (€M)
Conventions • Bullet points & H1 H1 5 -3 standard text in % TUI-Dark Blue 16/17 15/16 16 8 Turnover 345.9 308.9 12.0 9 78 75 Memo: 49 TUI Cruises Turnover 458.8 364.2 26.0 40 Underlying EBITA 75.0 49.3 52.1
H1 15/16 Reclassification H1 15/16 TUI Thomson HL Cruises H1 16/17 FX H1 16/17 New TUI-Blue o/w EAT TUI Cruises* 38.3 29.8 28.5 Continuing of Thomson Restated Cruises Cruises Continuing Continuing New TUI-Grey 25%
Ops Cruises Continuing Ops Ops LFL Ops Achromatic 112.203.244 Basis 220.220.220 *TUI Cruises joint venture (50%) is consolidated at equity Segment now includes Thomson Cruises New TUI-Blue 50% New TUI-Grey BUSINESS • TUI Cruises continues to deliver significant growth whilst • Hapag-Lloyd Cruises has delivered an increase 194.230.250 maintaining a strong occupancy and rate performance, in earnings, benefitting from improvements to itineraries 115.115.115 DEVELOPMENT with an additional ship (Mein Schiff 5) this Winter. This and fewer dry docks than prior year
TUI-Dark Blue H1 2016/17* was offset partly by a planned increase in dry dock days TUI-Black 9.42.94 • Thomson Cruises’ result has also increased 0.0.0 significantly, with the first Winter of operations of TUI Primary colours Primary Discovery and a good occupancy and rate performance TUI-White across the fleet 255.255.255
*At constant currency rates
33 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruise additions and pipeline New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & standard text in Mein Schiff 6 New New TUI Discovery 2 Currently MS1 Currently MS2 Hanseatic Hanseatic Mein Schiff 1 Mein Schiff 2 (TUI Explorer) (Name TBC) Nature Inspiration TUI-Dark Blue
2,534 2,894 2,894 1,832 1,924 1,912 230 230 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Wholly owned Wholly owned Wholly owned TBC TBC Wholly owned Wholly owned
New TUI-Blue OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL New TUI-Grey 25% Achromatic 112.203.244 220.220.220 June 2017 Spring 2018 Spring 2019 May 2017 Summer 2018 Summer 2019 Spring 2019 Autum 2019 LAUNCH DATE LAUNCH DATE LAUNCH DATE LAUNCH DATE LAUNCH DATE LAUNCH DATE LAUNCH DATE LAUNCH DATE New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 DELIVERING GROWTH AND SUPERIOR RETURNS IN OUR THREE CRUISE BRANDS 0.0.0 Primary colours Primary TUI-White 255.255.255
34 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Source Markets – Sales & Marketing New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 TURNOVER AND EARNINGS (€M) BRIDGE UNDERLYING EBITA (€M)
Conventions • Bullet points & standard text in H1 H1 % TUI-Dark Blue 16/17 15/16 -287 -307 Turnover 5,374.9 5,261.0 2.2 -379 -384 Underlying EBITA -383.9 -307.2 -25.0 -20 -21 -5 -22 -24 -29 24 H1 15/16 Carve out H1 15/16 Northern Central Western TUIfly H1 16/17 Easter FX H1 16/17 Published Thomson Cr Restated Region Region Region sickness Continuing timing translation Continuing Thomson Cruises and Blue Diamond now reported in Cruise and H&R & Blue Dia. Continuing Ops LFL Ops
New TUI-Blue respectively Ops Basis New TUI-Grey 25% Achromatic 112.203.244 220.220.220 BUSINESS NORTHERN REGION -€21M CENTRAL REGION -€5M WESTERN REGION -€22M New TUI-Blue 50% DEVELOPMENT • UK customer volumes increased by 8% in H1 2016/17 with (UNDERLYING) • Reflects the first time inclusion New TUI-Grey a good end to Summer and growth in long haul in Winter. of Transat’s seasonal EBITA loss and 194.230.250 * • Germany continues to build 115.115.115 H1 2016/17 This was offset by an increase in the valuation of US$ based on its market share gains rebrand marketing costs in Belgium maintenance reserves (weaker GBP sterling) and increase in delivering an improvement • Netherlands negatively impacted pension service costs driven by lower interest rates. Result in trading performance by night slot restrictions at Schiphol TUI-Dark Blue also impacted to some extent by currency cost inflation, due Airport and increased claims for DBC TUI-Black to weakening of GBP sterling • Result includes additional aircraft repair costs • Further growth in both direct 9.42.94 • Nordic performance impacted by rebrand marketing costs 0.0.0 and online distribution - 73% and lower demand for Turkey and Egypt • Further improvement in direct Primary colours Primary and online distribution - 47% (up (up 3ppts) and 56% (up 3ppts) TUI-White • Northern Region continues to deliver high levels of direct 2ppts) and 17% (up 3ppts) respectively, aided by the and online distribution - 90% and 63% respectively respectively rebrand in Belgium 255.255.255
*At constant currency rates and excluding Easter timing
35 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Source Markets – Sales & Marketing New TUI-Green • Font size14pt Strength in direct Distribution and Customer Relationships 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue • Balanced portfolio of source markets BALANCED PORTFOLIO MORE DIRECT, MORE ONLINE de-risks our business Conventions • Bullet points & FY16 Customer Numbers (m) standard text in 73% • Strong direct and online UK TUI-Dark Blue 68% FY14 distribution channels Germany 47% 1,2 FY15 • TUI rebrand completed in three 1,4 38% source markets, with higher unaided Benelux 6,0 FY16 TUI brand awareness shortly after 4,3 Nordic rebranding. UK to follow in FY18 6,3 FY17 H1 France, Poland & • Progressing with digital Switzerland Direct Online New TUI-Blue Distribution Mix % New TUI-Grey 25%
transformation and development Achromatic 112.203.244 220.220.220 of common platforms UNAIDED BRAND AWARENESS % New TUI-Blue 50% • Acquisition of Transat builds on 75% New TUI-Grey 66% 65% Source Market LY 60% 58% 194.230.250 our market leadership in France 53% 115.115.115 49% Source Market CY • German airline JV negotiations 41% TUI-Dark Blue Best Comparator TUI-Black ongoing 9.42.94 0.0.0
5% 1% Primary colours Primary TUI-White UK Germany Netherlands Belgium Sweden Data as at February 2017 255.255.255 STRENGTH IN DISTRIBUTION ENABLES AND DE-RISKS CONTENT GROWTH
36 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Current Trading – Summer 2017 New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 HOTELS & • Two new TUI Blue hotel openings (Italy and Croatia)
Conventions • Bullet points & RESORTS • Subdued demand for Turkey and North Africa continue to be offset standard text in by the popularity of Spain, Canaries, Greece and Caribbean TUI-Dark Blue
CRUISES • Newly built Mein Schiff 6 was launched in June; demand for cruise remains buoyant in Germany • Thomson Cruises continues its programme of modernisation with the launch of TUI Discovery 2
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% SOURCE • Source Markets programme 62% sold to date with revenues up 8% New TUI-Grey 194.230.250 MARKETS – and bookings up 4% 115.115.115 Sales & • Growth in demand for Greece, Bulgaria, Croatia, Cyprus, Cape Verde TUI-Dark Blue Marketing and long haul TUI-Black
9.42.94 • Bookings ahead of prior year in all markets 0.0.0 Primary colours Primary TUI-White 255.255.255 POPULARITY OF HOTEL AND CRUISE BRANDS AND RESILIENCE OF INTEGRATED MODEL These statistics are up to 7 May 2017 and are shown on a constant currency basis
37 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Delivering the TUI Transformation New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & Merger complete + synergies delivered standard text in (end FY17) TUI-Dark Blue Integrated decision making + global scale based on common platforms (Brand, IT, Airline, Hotels, Cruises & Destination The world’s leading integrated Services) tourism business based on own hotel and cruise brands Disposals of non-core businesses free
New TUI-Blue up capital for reinvestment in Hotels, New TUI-Grey 25% Achromatic 112.203.244 Cruises and strengthening the core 220.220.220
New TUI-Blue 50% Growth driven by higher New TUI-Grey 194.230.250 margin, less seasonal hotels 115.115.115 and cruise brands TUI-Dark Blue TUI-Black 9.42.94 Focused on meaningful investments 0.0.0
Primary colours Primary aligned to our strategy TUI-White 255.255.255
38 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Income Statement New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue In €m H1 16/17 H1 15/16
Conventions • Bullet points & standard text in Turnover 6,382.4 6,178.7 ADJUSTMENTS €38M TUI-Dark Blue Consisting of €22m SDIs and €15m PPAs Underlying EBITA -214.3 -206.4 Full year expected to be ~€100m due to earlier recognition of Transat integration costs Adjustments (SDI's and PPA) -37.6 -34.5 EBITA -251.9 -240.9 -81.7 INTEREST €61M Net interest expense -61.2 Reduced by €21m due to lower RCF interest, lower interest on Hapag-Lloyd AG 2.3 -100.3 provisions and refinancing of High-Yield Bond to senior notes with lower coupon rate partly offset by additional finance lease
New TUI-Blue EBT -310.8 -422.9 interest for new aircraft and cruise ships New TUI-Grey 25% Achromatic 112.203.244 Full year outlook reduced by €20m to ~€140m as we 220.220.220 76.0 Income taxes 65.3 continue to benefit from lower financing costs Group result continuing New TUI-Blue 50% -245.5 -346.9 New TUI-Grey operations 194.230.250 TAX CREDIT €65M 115.115.115 Discontinued operations -63.1 -48.0 Underlying effective tax rate reduced to 20% TUI-Dark Blue TUI-Black -54.0 9.42.94 Minority interest -54.3 0.0.0
Primary colours Primary Group result after minorities -362.9 -448.9 DISCONTINUED OPERATIONS TUI-White Includes Travelopia held for sale this year and Hotelbeds in the prior year 255.255.255 Basic EPS (€, continuing) -0.51 -0.69
39 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cash Flow New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue In €m H1 16/17 H1 15/16*
Conventions • Bullet points & EBITA reported** -251.9 -240.9 standard text in TUI-Dark Blue Depreciation** 199.6 187.7 Working capital -73.3 -373.4 IMPROVEMENT IN WORKING CAPITAL +€0.3bn Other cash effects 48.6 105.6 Improved seasonality in working capital following the disposal of Hotelbeds as we continue to deliver on our transformation At equity income** -105.6 -64.7 plan and focus on the growth of our less seasonal content Dividends received from JVs 49.6 18.3 business and associates Tax paid -84.6 -117.1
New TUI-Blue Interest (cash) -30.0 -41.1 New TUI-Grey 25% Achromatic 112.203.244 Pension contribution -69.2 -91.3 220.220.220 Operating Cashflow -316.8 -616.9 OVERALL IMPROVEMENT IN HALF YEAR New TUI-Blue 50% Net capex -466.4 -228.9 OPERATING CASH FLOW New TUI-Grey 194.230.250 115.115.115 Net financial investments -111.3 6.3 Net pre-delivery payments -117.5 -21.3 TUI-Dark Blue TUI-Black 9.42.94 Free Cashflow -1,012.0 -860.8 0.0.0
Primary colours Primary Dividends -370.0 -329.2 Movement in Cash Net of TUI-White -1,382.0 -1,190.0 Debt 255.255.255 *Prior year restated due to exclusion of Hotelbeds & Travelopia in reported EBITA **Continuing ops basis – non-continuing adjustment in Other cash effects
40 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Delivering the TUI Transformation – Financial Discipline New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 Business balanced through markets
Conventions • Bullet points & standard text in and destinations TUI-Dark Blue Further de-risked through portfolio ownership structure JV partners provide expertise; require less invested capital on a Creating value and consolidated basis; delivering cash delivering superior returns through dividend for our shareholders
New TUI-Blue Significant reduction in interest and effective New TUI-Grey 25% Achromatic 112.203.244 tax rate – enhances EPS 220.220.220
New TUI-Blue 50% Attractive dividend policy supported by strong New TUI-Grey 194.230.250 operational cashflow 115.115.115 Divestment proceeds financing transformational TUI-Dark Blue growth TUI-Black 9.42.94 0.0.0
Primary colours Primary Committed to improving corporate rating to ensure TUI-White advantaged access to debt capital markets 255.255.255 Delivering a growth strategy which is value accretive for our shareholders
41 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue Appendix 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
42 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight 2015/16 Restated Turnover by Quarter * New TUI-Green • Font size14pt (excludes Intra-Group Turnover) 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue In €m Q1 2015/16 Q2 2015/16 Q3 2015/16 Q4 2015/16 FY 2015/16 255.225.0
Conventions • Bullet points & Northern Region 1,188.2 1,170.1 1,661.7 2,575.0 6,595.0 standard text in Central Region 1,089.4 897.7 1,346.4 2,229.4 5,562.9 TUI-Dark Blue Western Region 486.9 428.7 734.6 1,219.7 2,869.9 Source Markets 2,764.5 2,496.5 3,742.7 6,024.1 15,027.8 Riu 106.9 113.1 106.5 135.1 461.6 Robinson 14.7 10.0 18.6 29.0 72.3 Blue Diamond - - - - - Other 10.8 10.5 18.1 45.3 84.7
New TUI-Blue Hotels & Resorts 132.4 133.6 143.2 209.4 618.6 New TUI-Grey 25% Achromatic 112.203.244 TUI Cruises - - - - - 220.220.220 Thomson Cruises 81.1 84.7 99.8 140.8 406.4 New TUI-Blue 50% Hapag-Lloyd Cruises 53.9 89.2 71.3 82.3 296.7 New TUI-Grey 194.230.250 115.115.115 Cruises 135.0 173.9 171.1 223.1 703.1 Other Tourism 148.0 142.0 143.6 235.7 669.3 TUI-Dark Blue TUI-Black 9.42.94 Tourism 3,179.9 2,946.0 4,200.6 6,692.3 17,018.8 0.0.0
Primary colours Primary All Other Segments 32.4 20.4 40.1 72.9 165.8 TUI Group continuing TUI-White 3,212.3 2,966.4 4,240.7 6,765.2 17,184.6 255.255.255 operations *Table contains unaudited figures and rounding effects; restated to treat Hotelbeds Group and Travelopia as discontinued operations, plus the reclassification of a Destination Services company from Central Region to Other Tourism and Thomson Cruises from Northern Region to Cruise segment
43 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use * TUITypeLight 2015/16 Restated Underlying EBITA by Quarter New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue In €m Q1 2015/16 Q2 2015/16 Q3 2015/16 Q4 2015/16 FY 2015/16 255.225.0
Conventions • Bullet points & Northern Region -42.8 -78.1 71.9 432.1 383.1 standard text in Central Region -27.0 -83.6 3.5 192.2 85.1 TUI-Dark Blue Western Region -27.7 -48.0 -6.4 168.2 86.1 Source Markets -97.5 -209.7 69.0 792.5 554.3 Riu 59.2 94.4 64.6 100.1 318.3 Robinson 0.9 -4.7 6.0 36.5 38.7 Blue Diamond** 3.1 9.1 0.5 3.7 16.5 Other -34.8 -31.2 -13.9 10.3 -69.7
New TUI-Blue Hotels & Resorts 28.4 67.6 57.2 150.6 303.8 New TUI-Grey 25% Achromatic 112.203.244 TUI Cruises** 13.2 16.7 25.8 44.5 100.1 220.220.220 Thomson Cruises 4.1 5.0 15.6 36.5 61.3 New TUI-Blue 50% Hapag-Lloyd Cruises -5.0 15.3 3.6 15.6 29.5 New TUI-Grey 194.230.250 115.115.115 Cruises 12.3 37.0 45.0 96.6 190.9 Other Tourism -10.3 -6.4 -5.3 29.9 7.9 TUI-Dark Blue TUI-Black 9.42.94 Tourism -67.1 -111.5 165.9 1,069.6 1,056.9 0.0.0
Primary colours Primary All Other Segments -13.3 -14.5 -5.0 -23.7 -56.4 TUI Group continuing TUI-White -80.4 -126.0 160.9 1,045.9 1,000.5 255.255.255 operations *Table contains unaudited figures and rounding effects; restated to treat Hotelbeds Group and Travelopia as discontinued operations, plus the reclassification of a Destination Services company from Central Region to Other Tourism, Blue Diamond to Hotels & Resorts and Thomson Cruises to Cruise segment both from Northern Region **Equity result
44 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight 2016/17 H1 Turnover by Segment * New TUI-Green • Font size14pt (excludes Intra-Group Turnover) 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue In €m H1 16/17 H1 15/16 Change FX Change ex FX 255.225.0
Conventions • Bullet points & Northern Region 2,232.9 2,358.3 -125.3 -266.2 140.9 standard text in Central Region 2,028.0 1,987.1 40.9 0.5 40.4 TUI-Dark Blue Western Region 1,114.0 915.6 198.3 0.2 198.1 Source Markets 5,374.9 5,261.0 113.9 -265.5 379.4 Riu 244.2 220.0 24.1 -8.2 32.3 Robinson 32.4 24.6 7.8 0.1 7.7 Blue Diamond - - - - - Other 23.4 21.4 2.1 -1.0 3.1
New TUI-Blue Hotels & Resorts 300.0 266.0 34.0 -9.1 43.1 New TUI-Grey 25% Achromatic 112.203.244 TUI Cruises - - - - - 220.220.220 Thomson Cruises 195.5 165.8 29.7 -30.5 60.2 New TUI-Blue 50% Hapag-Lloyd Cruises 150.4 143.1 7.4 - 7.4 New TUI-Grey 194.230.250 115.115.115 Cruises 345.9 308.9 37.1 -30.5 67.6 Other Tourism 290.4 290.0 0.4 -0.8 1.2 TUI-Dark Blue TUI-Black 9.42.94 Tourism 6,311.2 6,125.9 185.4 -305.9 491.3 0.0.0
Primary colours Primary All Other Segments 71.2 52.8 18.3 -0.1 18.4 TUI Group continuing TUI-White 6,382.4 6,178.7 203.7 -306.0 509.7 255.255.255 operations *Table contains unaudited figures and rounding effects; restated to treat Hotelbeds Group and Travelopia as discontinued operations, plus the reclassification of a Destination Services company from Central Region to Other Tourism, and Thomson Cruises from Northern Region to Cruise segment
45 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use * TUITypeLight 2016/17 H1 Underlying EBITA by Segment New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue In €m H1 16/17 H1 15/16 Change FX Change ex FX 255.225.0 Northern Region -138.0 -120.9 -17.1 23.9 -41.0 Conventions • Bullet points & standard text in Central Region -143.7 -110.6 -33.1 -0.1 -33.0 TUI-Dark Blue Western Region -102.2 -75.7 -26.5 - -26.5 Source Markets -383.9 -307.2 -76.7 23.8 -100.5 Riu 175.2 153.6 21.6 -4.9 26.5 Robinson 1.3 -3.8 5.1 1.1 4.0 Blue Diamond** 15.1 12.3 2.8 0.5 2.3 Other -68.8 -66.1 -2.7 0.4 -3.1
New TUI-Blue Hotels & Resorts 122.8 96.0 26.8 -2.9 29.7 New TUI-Grey 25% Achromatic 112.203.244 TUI Cruises** 38.3 29.8 8.5 - 8.5 220.220.220 Thomson Cruises 21.5 9.2 12.3 -3.1 15.4 New TUI-Blue 50% Hapag-Lloyd Cruises 15.2 10.3 4.9 - 4.9 New TUI-Grey 194.230.250 115.115.115 Cruises 75.0 49.3 25.7 -3.1 28.8 Other Tourism -13.4 -16.7 3.3 -4.9 8.2 TUI-Dark Blue TUI-Black 9.42.94 Tourism -199.5 -178.6 -20.9 12.9 -33.8 0.0.0
All Other Segments -14.8 -27.8 13.0 4.0 9.0 Primary colours Primary TUI Group continuing TUI-White -214.3 -206.4 -7.9 16.9 -24.8 255.255.255 operations *Table contains unaudited figures and rounding effects; restated to treat Hotelbeds Group and Travelopia as discontinued operations, plus the reclassification of a Destination Services company from Central Region to Other Tourism, Blue Diamond to Hotels & Resorts and Thomson Cruises to Cruise segment both from Northern Region **Equity result
46 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt KPIs H1 2016/17 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 CAPACITY1 REVENUE/BED2 OCCUPANCY3 UNDERLY. EBITA4
Conventions • Bullet points & standard text in y-o-y (%) (`00 y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) TUI-Dark Blue 0)
Flat 8,383 7 69.3 1 88 22 175
2 1,167 3 93.2 -1 62 5 1
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220 OTHER New TUI-Blue 50% Flat -53 New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI H&R 2 14,288 5 64.7 -1 75 27 123 TUI-Black
9.42.94 0.0.0 Primary colours Primary 1 Group owned or leased hotel beds multiplied by opening days in the period TUI-White 2 Arrangement revenue divided by occupied beds 3 Occupied beds divided by capacity 255.255.255 4 Segment figures
47 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruises New TUI-Green • Font size14pt KPIs H1 2016/17 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 PASSENGER CRUISE DAYS AVERAGE DAILY RATE OCCUPANCY UNDERLY. EBITA
Conventions • Bullet points & standard text in y-o-y (%) (`00 y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) TUI-Dark Blue 0)
24 2,032 Flat 147 -1 100 8 38*
28 1,090 9 161** 2 100 12 22
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220 -2 164 6 595 5 15 New TUI-Blue 50% -1 74 New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue * Equity result TUI-Black **Inclusive of transfers, flights and hotel costs due to the integrated nature of
9.42.94 Thomson Cruises 0.0.0 Primary colours Primary TUI-White 255.255.255
48 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Source Markets New TUI-Green • Font size14pt KPIs H1 2016/17 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 CUSTOMERS DIRECT DISTRIBUTION ONLINE UNDERLY. EBITA
Conventions • Bullet points & standard text in y-o-y (%) (`000) y-o-y (ppts) (%) y-o-y (ppts) (%) y-o-y (€m) (€m) TUI-Dark Blue
4 63 Northern Region* 5 2,363 Flat 90 -17 -138
Central Region -3 2,146 2 47 3 17 -33 -144
New TUI-Blue -€24m relates New TUI-Grey 25% Achromatic to TUI fly 220.220.220 112.203.244 sickness Western Region* 10 1,835 3 73 3 56 -27 -102 New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 Source Markets 3 6,344 73 4 47
2 TUI-Dark Blue -77 -384 TUI-Black
9.42.94 0.0.0 Primary colours Primary * Western now excludes Italy (reported in All Other Segments) TUI-White and Northern now excludes Thomson Cruise (reported in Cruise segment) and 255.255.255 includes Crystal Ski, Thomson Lakes & Mountains (prev. in Specialist Group)
49 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt RIU – Key figures 2015/16 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue Riu 100%-view* Total o/w RIUSA II o/w Riu Hotels Riu in TUI accounts (fully consolidated) (consolidated at equity) Conventions • Bullet points & standard text in Turnover 1,112 796 316 796 TUI-Dark Blue Underlying EBITA 405 273.5 131 318.3 EBITA-Margin 36% EAT 314 221 93 o/w EAT to TUI (50%) 156 111 44.8 156 ROIC (incl. Goodwill) 20%
New TUI-Blue ROIC (excl. Goodwill) 26% New TUI-Grey 25% Achromatic 112.203.244 220.220.220 HOTEL BEDS BY REGION (%) FINANCING STRUCTURE (%) New TUI-Blue 50% New TUI-Grey 5% 194.230.250 7% 115.115.115 15% Western Med. 28% Management
3% North Africa 35% TUI-Dark Blue Ownership TUI-Black Total 9.42.94 Caribbean 94 0.0.0 Lease
Primary colours Primary 86,184 Hotels 5% Eastern Med. TUI-White Franchise 255.255.255 49% Other 53% In €m
*unaudited figures
50 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt RIU Portfolio 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 64% WESTERN MED.: Germany EASTERN MED.: 100% 255.225.0 33 HOTELS 2 HOTELS
Conventions • Bullet points & 18% standard text in 9% 9% TUI-Dark Blue Ireland M O L F Bulgaria M O L F Portugal Turkey USA Spain Bahamas
Mexico St. Martin
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 Jamaica Dom. Rep. 220.220.220 Sri Lanka Costa Rica New TUI-Blue 50% Cape Verde New TUI-Grey 194.230.250 Panama Morocco Mauritius 115.115.115
CARIBBEAN: Aruba TUI-Dark Blue NORTH AFRICA: TUI-Black 38 HOTELS OTHER: 14 HOTELS 9.42.94 7 HOTELS 0.0.0 53% 47% 71% 57%
Primary colours Primary 43% TUI-White 29% 255.255.255 M O L F M O L F M O L F
M = Management; O = Ownership; L = Lease; F = Franchise; figures at 30 September 2016
51 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt Robinson – Key figures 2015/16 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 ROBINSON IN TUI ACCOUNTS*
Conventions • Bullet points & standard text in 15/16 14/15 TUI-Dark Blue Turnover 194 192 Underlying EBITA 39 42 EBITA-Margin 20% 22% EAT (100% TUI) 15 12 ROIC 13% 14%
New TUI-Blue Robinson Club Maldives New TUI-Grey 25% Achromatic 112.203.244 220.220.220 HOTEL BEDS BY REGION (%) FINANCING STRUCTURE (%) New TUI-Blue 50% New TUI-Grey 194.230.250 18% 17% 115.115.115 29% Western Med. 25% Management TUI-Dark Blue TUI-Black 9.42.94 Total North Africa 24 0.0.0 15,342 Clubs Ownership Primary colours Primary Eastern Med. TUI-White 39% 14% Lease 255.255.255 Other In €m 58%
*unaudited figures
52 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt Robinson Portfolio 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue Austria 255.225.0
Conventions • Bullet points & Germany standard text in Greece TUI-Dark Blue Switzerland WESTERN MED.: Turkey Portugal 6 CLUBS 100%
Spain Italy 72% EASTERN MED.: 7 CLUBS
New TUI-Blue M O L F 14% 14% New TUI-Grey 25% Achromatic 112.203.244 Morocco 220.220.220 M O L F Tunisia New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
Egypt Maldives
TUI-Dark Blue OTHER: 8 CLUBS TUI-Black NORTH AFRICA: 3 CLUBS 9.42.94 50% 0.0.0
Primary colours Primary 33% 33% 33% TUI-White 25% 25% 255.255.255 M O L F M O L F
M = Management; O = Ownership; L = Lease; F = Franchise; figures at 30 September 2016
53 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt Blue Diamond – Key Figures 2015/16 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 (€M) HOTEL LOCATIONS
Conventions • Bullet points & standard text in Blue Diamond Total 2 Cuba TUI-Dark Blue 100% view Turnover 312 3 Jamaica 21 EBITA 51 1 Hotels Bahamas EBITA margin 16% 1 14 Dom Rep EAT 34 Mexico o/w EAT to TUI (49%) 17
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220 CAPACITY & OCCUPANCY FINANCING STRUCTURE (%) Var % ppts Abs. New TUI-Grey New TUI-Blue 50% 5% 194.230.250 115.115.115 Bed Nights 13 2,092k 28% TUI-Dark Blue 21 Management TUI-Black Rate 7 €93 9.42.94 Hotels 0.0.0 Ownership Primary colours Primary Occupancy 5 86% 67% TUI-White Lease 255.255.255
Above analysis includes owned hotels only If this included managed hotels, total bed nights would increase by 6,163k
54 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruises New TUI-Green • Font size14pt TUI Cruises - Key Figures 2015/16 – 100% View 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue TUI Cruises 100%* 15/16 14/15 %
Conventions • Bullet points & Turnover 807 614 31 % standard text in TUI-Dark Blue Underlying EBITA 227 156 4 % EBITA-Margin 28% 25% EAT (100% TUI) 200 136 47 % o/w TUI EAT (50%) 100 68 47 % ROIC 9% 10% ROE 36% 26%
New TUI-Blue *unaudited figures New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
55 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruises New TUI-Green • Font size14pt Thomson Cruises - Key Figures 2015/16 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & Turnover and Earnings (€m) FY16 standard text in TUI-Dark Blue Turnover 406 OWNERSHIP 100% Underlying EBITA 61
INTEGRATION • Within Thomson (UK Source Market) Passenger cruise days (‘000) 2,081 Occupancy (%) 100.6 • ~100% Thomson Airways New TUI-Grey 25%
New TUI-Blue Average rate (€) 161 Achromatic 112.203.244 PRODUCT • UK leader in fly-cruising 220.220.220
New TUI-Blue 50% Passengers (k) 245 • Cruise & Stay New TUI-Grey 194.230.250 Fleet Size 5 115.115.115 * LANGUAGE English speaking
Total Berths 7,341 TUI-Dark Blue FOCUS TUI-Black 9.42.94 0.0.0
Primary colours Primary *Static count as at year-end TUI-White 255.255.255
56 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruises New TUI-Green • Font size14pt TUI Cruises Fleet 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue Mein Mein Mein Mein Mein Mein New Mein Schiff New Mein Schiff 255.225.0 Schiff 1* Schiff 2* Schiff 3 Schiff 4 Schiff 5 Schiff 6 1 2
Conventions • Bullet points & standard text in TUI-Dark Blue 1,924 1,912 2,506 2,506 2,534 2,534 2,894 2,894 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL 1996 1997 2014 June 2015 July 2016 June 2017 New build New build CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION 2018 2019
New TUI-Blue CONSTRUCTION CONSTRUCTION New TUI-Grey 25% Achromatic 112.203.244 220.220.220
* MS1 and MS2 to replace 2 ships in UK fleet following delivery of new MS1 and new MS2 New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
57 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruises New TUI-Green • Font size14pt Hapag-Lloyd Cruises Fleet 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue Europa Europa 2 Bremen Hanseatic Hanseatic Hanseatic 255.225.0 Nature Inspiration
Conventions • Bullet points & standard text in TUI-Dark Blue 4081 5161 155 175 230 230 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Wholly owned Wholly owned Bare- Wholly owned Wholly owned OPERATING MODEL OPERATING MODEL OPERATING MODEL boatcharter OPERATING MODEL OPERATING MODEL exp. 2018 1999 2013 1990 OPERATING MODEL New build New build CONSTRUCTION CONSTRUCTION CONSTRUCTION 1993 2019 2019 CONSTRUCTION CONSTRUCTION
New TUI-Blue CONSTRUCTION New TUI-Grey 25% Achromatic 112.203.244 220.220.220
1 Additional sofa-bed in most of the suites (usable for persons up to the age of 6, 10, 12 or 15 years) New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
58 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruises New TUI-Green • Font size14pt Thomson Cruises fleet 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue Thomson Thomson Dream Thomson Thomson TUI Discovery TUI Discovery 2 Currently Mein Currently Mein 255.225.0
Celebration Majesty Spirit Schiff 1 (TUI Explorer- 2018) Schiff 2 (TBC- 2019)
Conventions • Bullet points & standard text in TUI-Dark Blue 1,262 1,533 1,462 1,254 1,830 1,832 1,924 1,912 BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Finance Lease Finance Lease Operating Operating Finance Lease Wholly owned TBC TBC exp. 2021 exp. 2021 Lease Lease exp. 2026 OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL exp. Nov 2017 exp. Nov 2017 OPERATING MODEL OPERATING MODEL OPERATING MODEL 1994 1996 1997 1984 1986 1995 CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION 1992 1983 CONSTRUCTION
New TUI-Blue CONSTRUCTION CONSTRUCTION New TUI-Grey 25% Achromatic 112.203.244 220.220.220
* MS1 and MS2 from TUI Cruises to replace 2 ships in UK fleet following delivery of new MS1 and new MS2 New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
59 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Aircraft Commitments by Financing Type New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue Operating 255.225.0 Lease* Finance Lease Owned Total Conventions • Bullet points & standard text in TUI-Dark Blue As at 30 September 2016 125 16 8 149
Order book financing - - - -
External Lessor deliveries 1 - - 1
External Lessor Returns (1) - - (1)
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220 As at 31 March 2017 125 16 8 149 * Includes aircraft leased from and operated on behalf of 3rd party airlines New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
60 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Aircraft order book deliveries – FY 2017 to FY 2021 New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 16/17 17/18 18/19 19/20 20/21 255.225.0
Conventions • Bullet points & B737 NG - - - - - standard text in TUI-Dark Blue B737-MAX - 5 18 18 12 B787-8 - - - - - B787-9 1 2 - 2 - Firm order book deliveries 2017-2021 1 7 18 20 12 Financial Years (FY) ending 30 September; figures correct as at 31 March 2017
In addition to the above firm orders, TUI Group has further aircraft options : 16/17 17/18 18/19 19/20 20/21
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 B737-MAX - - - 2 9 220.220.220 B787-9 - - - - 1 New TUI-Blue 50% Option order book deliveries 2017-2021 - - - 2 10 New TUI-Grey 194.230.250 115.115.115 Financial Years (FY) ending 30 September; figures correct as at 31 March 2017
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
61 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Key Sources of Funding 31 March 2017 New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue Interest % Instrument Issue Maturity Amount €m
Conventions • Bullet points & p.a.* standard text in TUI-Dark Blue Revolving Credit Facility Sep 14 Dec 20 1,750** E/L +1.40 Senior Notes Oct 16 Oct 21 300 2.125 Finance leases Various Various 1,230 Various
*Upgrade of our rating by S&P has reduced our RCF interest margin from 1.55% to 1.40% p.a as of 14/02/2017 **Including a tranche of €215.0m for the issue of bank guarantees
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
62 TUI GROUP | Investor Presentation | June 2017 TUI-Red
239.0.0 Functional • Always use TUITypeLight Financial Calendar 2017 New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue 10 August 2017 28 September 2017 13 December 2017
Conventions • Bullet points & standard text in 9M 2016/17 PRE-CLOSE TRADING ANNUAL REPORT TUI-Dark Blue REPORT UPDATE FOR FINANCIAL YEAR 2016/17
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
63 TUI GROUP | Investor Presentation | June 2017 Contact
Contacts for Analysts and Investors in UK, Ireland and Americas Sarah Coomes, Head of Investor Relations Tel: +44 (0)1293 645 827 Hazel Chung, Investor Relations Manager Tel: +44 (0)1293 645 823
Contacts for Analysts and Investors in Continental Europe, Middle East and Asia Nicola Gehrt, Head of Investor Relations Tel: +49 (0)511 566 1435 Ina Klose, Investor Relations Manager Tel: +49 (0)511 566 1318 Jessica Blinne, Team Assistant Tel: +49 (0)511 566 1425