FY Results 2015/16
TUI-Red
239.0.0 Functional • Always use TUITypeLight Forward-Looking Statements 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 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
New TUI-Blue the actual results differ substantially from the expected ones. The potential reasons for New TUI-Grey 25% Achromatic 112.203.244 220.220.220 such differences include market fluctuations, the development of world market fluctuations, New TUI-Blue 50% New TUI-Grey 194.230.250 the development of world market commodity prices, the development of exchange rates or 115.115.115 fundamental changes in the economic environment. TUI does not intend or assume any TUI-Dark Blue TUI-Black
9.42.94 obligation to update any forward-looking statement to reflect events or circumstances 0.0.0 Primary colours Primary TUI-White after the date of these materials. 255.255.255
2 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Agenda 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 Opening Remarks Fritz Joussen standard text in TUI-Dark Blue 2 Performance Review & Current Trading Fritz Joussen
3 Financial Performance Horst Baier
New TUI-Blue 4 Strategy Update & Outlook Fritz Joussen & Horst Baier New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% 5 Summary Fritz Joussen New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue 6 Appendix TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
3 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight1,0 Mrd. € = Ziel oneTUI Opening Remarks New TUI-Green 1 • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 CMD •Second year of strong performance post-merger with target?
Conventions • Bullet points & 1 standard text in TUI-Dark Blue 12.5% increase in underlying EBITA including Travelopia, or 14.5% for continuing operations1 •Strong performance driven by our strategy as the world’s
New TUI-Blue leading integrated tourism business New TUI-Grey 25% Achromatic 112.203.244 220.220.220 New TUI-Blue 50% •We believe our growth strategy creates value for our New TUI-Grey 194.230.250 115.115.115 1) customers, our people and our shareholders alike TUI-Dark Blue TUI-Black 9.42.94 0.0.0
Primary colours Primary •At least 10% underlying EBITA CAGR guidance TUI-White 255.255.255 1 1) … extended to 2018/19
1At constant currency
4 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Performance Review 255.225.0
Conventions • Bullet points & standard text in Fritz Joussen 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
5 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Strong performance in 2015/16 New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt Turnover: €17.2bn • titles in TUI-Dark 1 TUI-Yellow Blue -1.9% / +1.4% 255.225.0
Conventions • Bullet points & • Improved turnover at constant currency, standard text in Including Travelopia TUI-Dark Blue Underlying EBITA: €1,030m despite the impact of geopolitical events on +2.9% / +12.5%1 demand in some of our Source Markets
Excluding Travelopia, now reported as Discontinued • Strong earnings performance driven by our Underlying EBITA: €1,001m 1 growth strategy
New TUI-Blue +5.0% / +14.5% New TUI-Grey 25% Achromatic 112.203.244 • Normalised operating cash flow of €0.9bn 220.220.220 Normalised Operating Cash flow2: New TUI-Blue 50% €0.9bn • Continuing to deliver ROIC significantly in New TUI-Grey 194.230.250 excess of our cost of capital 115.115.115 3 TUI-Dark Blue ROIC : TUI-Black 9.42.94 • Dividend per share of 63 cents reflects 0.0.0
Primary colours Primary 21.9% TUI-White Dividend per Share: underlying growth in earnings 255.255.255 63 cents 1 At constant currency rates 2 Operating cash flow pre net capex and investments and dividend payments, assuming normalised working capital inflow and excluding additional UK pension top-up of €174m in 2015/16. 3 ROIC (return on invested capital) is calculated as the ratio of underlying EBITA to the average for invested interest bearing capital for the Group or relevant segment.
6 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight TUI Group New TUI-Green • Font size14pt Underlying EBITA Continuing Operations Bridge 2015/16 in €m 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & 15 standard text in 114 -50 60 -91 TUI-Dark Blue
YoY Impact in Achieved FY16/LTG FY17 Hotels & Corporate streamlining €30m/€10m Resorts Occupancy improvements €20m/Complete Destination Services €10/€10m
1,092 1,001
New TUI-Blue 953 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 14/15 Continuing Underlying trading Turkey and North Merger synergies Aircraft and Europa 15/16 Continuing FX translation 15/16 Continuing 0.0.0
Primary colours Primary Ops Africa Impact 2 Financing Ops pre FX Ops TUI-White 255.255.255 Second year of strong performance post-merger
7 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Source Markets New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt Turnover and Earnings (€m) Bridge Underlying EBITA (€m)
TUI-Yellow • titles in TUI-Dark 18 -15 17 Blue -96 255.225.0
15/16 14/15 %
Conventions • Bullet points & standard text in 711 TUI-Dark Blue Turnover 15,438.0 15,796.3 -2.3 731 635
Underlying EBITA 635.5 710.6 -10.6
14/15 Northern Central Western 15/16 pre FX 15/16 Region Region Region FX translation
1
New TUI-Blue Customer Volumes m Direct Distribution % Online Distribution % Underlying EBITA €m New TUI-Grey 25% Achromatic 112.203.244 220.220.220 731 19,4 19,2 43 19.0 711 New TUI-Blue 50% 72 New TUI-Grey 194.230.250 41 115.115.115
70 TUI-Dark Blue 38 651 TUI-Black 9.42.94 0.0.0
68 Primary colours Primary TUI-White 255.255.255 FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16
1 FY14, FY15 at reported and FY16 at constant currency
8 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt Turnover and Earnings (€m) Bridge Underlying EBITA (€m)
• titles in TUI-Dark TUI-Yellow Blue 1 -4 255.225.0 68 -50 37
Conventions • Bullet points & 15/16 14/15 % standard text in TUI-Dark Blue Turnover 618.6 574.8 7.6 291 287 Underlying EBITA 287.3 234.6 22.5 235
o/w Equity result 57.7 44.0 31.1
14/15 Riu Robinson Tky/NATurkey Other 15/16 pre FX 15/16 & North FX Africa
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 3 220.220.220 Occupancy Rates % Revenue Per Bed € H&R ROIC % Underlying EBITA €m New TUI-Blue 50% 291 New TUI-Grey 12,3 194.230.250 60,3 115.115.115 89,6 58,0 235 85,9 57,1 203 84,7 54,0 55,0 10,5 TUI-Dark Blue 80,6 50,5 9,3 TUI-Black 78,7
9.42.94 77,5 0.0.0 Primary colours Primary TUI-White 255.255.255 FY1411 FY15 FY16 FY1411 FY15 FY16 Hotels & Resorts22 RIU Hotels & Resorts22 RIU FY14 FY15 FY16 FY14 FY15 FY16
1 FY14 excludes TUI Travel Hotels 2 Includes Hotels in Turkey 3 FY14, FY15 at reported and FY16 at constant currency
9 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Turnover and Earnings (€m) Bridge Underlying EBITA (€m) Blue 255.225.0
Conventions • Bullet points & 15/16 14/15 % 17 standard text in TUI-Dark Blue Turnover HL Cruises 296.7 273.3 8.6 32 Memo: TUI CruisesTurnover 807.3 614.1 31.5 130 Underlying EBITA 129.6 80.5 61.0 81 o/w EAT TUI Cruises* 100.1 68.1 47.0 14/15 TUI Cruises HL Cruises 15/16
New TUI-Blue * TUI Cruises joint venture (50%) is consolidated at equity New TUI-Grey 25% Achromatic 112.203.244 220.220.220 TUI Cruises Hapag-Lloyd Cruises Cruises ROIC % New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 536 579 171 169 171 450 Turnaround
21,3 TUI-Dark Blue of Hapag- TUI-Black 102,3 102,7 102,6 17,3
9.42.94 68.2 76.2 76.8 Lloyd 0.0.0 Primary colours Primary TUI-White 3,3 255.255.255 FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 Av Daily Rate Occupancy % Av Daily Rate Occupancy %
10 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight1,0 Mrd. € = Integrated model enables us to deliver around 50% of earnings from New TUI-Green Ziel oneTUI 1 • Font size14pt content 170.215.0 • Line spacing 6 pt
1 • titles in TUI-Dark Our content businesses are less seasonal Content businesses mix TUI-Yellow Blue 255.225.0 CMD €504m target?
Conventions • Bullet points & 1 standard text in Source Markets, Hotels TUI-Dark Blue Destination Services & All Other Q1 Q2 Q3 Q4 FY16 Content Businesses Underlying EBITA FY16
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 €1,001m 220.220.220 New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 1) 2 TUI-Dark Blue Cruises (including Thomson) TUI-Black 9.42.94 0.0.0
Primary colours Primary Q1 Q2 Q3 Q4 FY16 TUI-White Group Underlying EBITA FY16 1 Hotels and Cruises (TUI Cruises, Thomson Cruises, & Hapag-Lloyd Cruises) 255.255.255 2Pro forma numbers for Thomson Cruises 1) …
Growth in content is de-risked through our direct customer relationships
11 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight New TUI-Green • Font size14pt Winter 2016/17 and Summer 2017 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue • Winter 2016/17 255.225.0
Conventions • Bullet points & • Source Markets programme 60% sold to date with revenues up 9% standard text in TUI-Dark Blue • Strong growth in UK long haul and cruise • Nordics and Belgium rebrand launched and progressing well • New hotel openings in Jamaica, Tenerife and further expansion of our tour operator concepts in third party hotels in Lanzarote, Thailand, Mauritius and Cape Verde • First winter of operations for Mein Schiff 5 and TUI Discovery
New TUI-Blue • Summer 2017 New TUI-Grey 25% Achromatic 112.203.244 • Trading for the Source Markets is at an early stage 220.220.220 • UK over 20% sold with revenues up 16% and bookings up 9% demonstrating continued resilience in demand for New TUI-Blue 50% New TUI-Grey 194.230.250 our holidays 115.115.115 • New hotel openings in Rhodes, Croatia and Italy and a new Robinson club in South East Asia plus further TUI-Dark Blue expansions of our tour operator concepts in third party hotels in Sardinia, Croatia, Spain, Greece and Bulgaria TUI-Black 9.42.94 0.0.0
• Bookings for Mein Schiff 6 and TUI Discovery 2 also going well Primary colours Primary TUI-White 255.255.255 Current trading is in line with our expectations
These statistics are up to 27 November 2016 and are shown on a constant currency basis
12 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight New TUI-Green • Font size14pt UK Current Trading 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue UK Weekly Booking Trends 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue
EU referendum 23 June 2016
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 22.05.2016 22.06.2016 22.07.2016 22.08.2016 22.09.2016 22.10.2016 22.11.2016 TUI-Black 9.42.94 0.0.0
Primary colours Primary Summer 2017 Summer 2016 TUI-White 255.255.255 UK bookings pattern has remained resilient post Brexit vote
Weekly booking volume data from 22 May 2016 to 27 November 2016
13 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Financial Performance 255.225.0
Conventions • Bullet points & standard text in Horst Baier 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
14 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Income Statement New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt Adjustments of €103m • titles in TUI-Dark In €m 2015/16 2014/15 A reduction of €56m due to lower merger related TUI-Yellow Blue costs, includes PPA of €42m 255.225.0 Turnover 17,184.6 17,515.5
Conventions • Bullet points & standard text in Underlying EBITA 1,000.5 953.3 Interest of €180m TUI-Dark Blue Includes €12m in respect of early redemption of high Adjustments (SDI's and PPA) -102.4 -158.7 yield bond following successful refinancing. EBITA 898.1 794.6 Hapag- Lloyd AG Net interest expense -179.5 -182.6 Share price decline during H1 resulted in an Hapag-Lloyd AG -100.3 -146.2 impairment of €100m. Share price during H2 has since increased from €16.10 to €18.29 resulting in a EBT 618.3 465.8 fair value adjustment of €32m which has been New TUI-Grey 25% New TUI-Blue carried to equity in line with IAS39 requirement.
Income taxes -153.4 -58.2 Achromatic 112.203.244 220.220.220 Group result continuing operations 464.9 407.6 Tax charge of €153m New TUI-Blue 50% New TUI-Grey Discontinued operations 687.3 -28.0 Prior year reflected the €114m tax credit benefit of 194.230.250 115.115.115
Minority interest -114.8 -39.2 post-merger tax restructuring.
TUI-Dark Blue Group result after minorities 1,037.4 340.4 Discontinued operations TUI-Black 9.42.94 0.0.0 Hybrid adjustment - -11.0 Includes Hotelbeds (including gain on disposal of Primary colours Primary €681m) and Travelopia TUI-White Basic EPS (€ ) 1.78 1.64 255.255.255 Basic EPS (€, continuing) 0.61 0.66 Minority Interest Prior year included TUI Travel (pre merger) of €51m Pro forma underlying EPS (€, continuing) 0.86 0.84
15 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cash Flow Bridge 2015/16 in €m New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt 64 -105 TUI-Yellow • titles in TUI-Dark 100 Blue 255.225.0 -258
Conventions • Bullet points & standard text in 407 TUI-Dark Blue -162 172 -174 -341
898 Series 868 -691 1,119
New TUI-Blue 944 942 New TUI-Grey 25% Achromatic 112.203.244 778 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black 15/16 Normalised Other Cash Equity Tax Paid Pension Normalised1 Other Pension - Operating Net Capex, Hotelbeds 15/16 Free Paid 15/16 Free 9.42.94 EBITDA Working Effects income & & Interest Contributions Operating Working Uk Top Up Cashflow Investments Proceeds Cashflow Dividends Cashflow 0.0.0
Primary colours Primary reported Capital Received Cash flow Capital & PDP’s Before after TUI-White dividends Dividends Dividends 255.255.255 1 Operating cash flow pre net capex and investments and dividend payments, assuming normalised working capital inflow and excluding additional UK pension top-up of €174m in 2015/16.
Strong operating cash flow generation
16 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cash Flow New TUI-Green • Font size14pt Net Capex & Financial Investments Analysis 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & standard text in In €m 15/16 14/15 TUI-Dark Blue Gross capex by Type Gross capex -605 -602 Other Capex divestments 72 105
Net capex -533 -497 Hotels & IT Platforms Resorts
New TUI-Blue Net investments -109 -174 New TUI-Grey 25% Achromatic 112.203.244 220.220.220 Net pre-delivery payments -49 12 Aircraft New TUI-Blue 50% Cruises New TUI-Grey 194.230.250 Net Capex, Investments & PDP's (excluding 115.115.115 -691 -659 Hotelbeds disposal proceeds) TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255 Net capex & investments reflects investment in transformational growth
* At constant currency rates
17 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Movement in Net Debt New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue €m 30 Sep 2016 30 Sep 2015 255.225.0
Conventions • Bullet points & standard text in Opening net (debt)/ cash as at 30 September -214 293 TUI-Dark Blue Movement in cash net of debt 778 -255
Foreign exchange movement 134 -135
Non cash movement in debt - Asset backed finance -350 -693
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 Non cash movement in debt - Other 2 576 220.220.220
New TUI-Blue 50% Closing net cash/(debt) including discontinued operations 350 -214 New TUI-Grey 194.230.250 115.115.115 Discontinued operations - Travelopia -318 TUI-Dark Blue TUI-Black 9.42.94 0.0.0
Closing net cash as per Balance Sheet 32 Primary colours Primary TUI-White 255.255.255
Comment: As at 30 Sep 2016, cash and cash equivalents worth €129m were subject to disposal restrictions
18 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Net Financial Position, Pensions and Operating Leases New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue €m 30 Sep 2016* 30 Sep 2015 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue Financial liabilities -2,041 -1,887
- Finance Leases -1,232 -982
- Other Asset Finance -392 -457
- High Yield Bond -306 -300
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 - Other liabilities -111 -147 220.220.220
New TUI-Blue 50% Cash 2,073 1,673 New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue Net cash/(debt) 32 -214 TUI-Black 9.42.94 0.0.0
Primary colours Primary - Net Pension Obligation 1,451 1,147 TUI-White 255.255.255 - FV of Operating Leases 3,144 3,541
* Based on continuing operations
19 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Strategy Update 255.225.0
Conventions • Bullet points & standard text in Fritz Joussen 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 | FY2015/16 Results & Strategy Update | 8 December 2016 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 Where we have come from What we are delivering 255.225.0
Conventions • Bullet points & • Strong heritage as trading companies • End to end customer experience across standard text in TUI-Dark Blue • Based on loose federation of tour the value chain operators • Integrated decision making and global • High level of seasonality scale based on six common platforms – Brand, IT, Airline, Hotels, Cruises, • Significant airline and hotel capacity Destination Services
New TUI-Blue commitment New TUI-Grey 25% Achromatic 112.203.244 • Disciplined investments in differentiation, 220.220.220 • Varying levels of efficiency across in pockets of growth and where there is New TUI-Blue 50% markets scarcity of supply New TUI-Grey 194.230.250 • Competition from online travel agents 115.115.115 • Integrated model enables us to deliver TUI-Dark Blue and low cost carriers TUI-Black 9.42.94 around 50% of earnings from content 0.0.0
Primary colours Primary businesses* TUI-White *Hotels and Cruises (TUI Cruises, Thomson Cruises, and Hapag-Lloyd Cruises) 255.255.255 The world’s leading integrated tourism business based on own hotel and cruise brands
21 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Hotel Growth Cruise Growth Conventions • Bullet points & standard text in TUI-Dark Blue Hotel Growth Cruise Growth The TUI
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 Transformation 220.220.220 Efficiencies Digital Transformation 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 One Brand
The world’s leading integrated tourism business based on own hotel and cruise brands
22 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 255.225.0
Conventions • Bullet points & Europe and in luxury/expedition cruising standard text in TUI-Dark Blue • TUI Cruises - three new additions since Turnover FY14 381 317 281
merger €m FY15 614 374 273 • Modernisation of Thomson Cruises FY16 807 360 297 underway
New TUI-Blue FY14 205 237 34 New TUI-Grey 25% Achromatic 112.203.244 • Turnaround of Hapag-Lloyd Cruises now Pax 220.220.220 complete k FY15 328 247 30 New TUI-Blue 50% FY16 405 242 29 New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black FY14 78 19 -22 9.42.94 Underlying 0.0.0
Primary colours Primary EBITA* FY15 156 41 13 TUI-White €m 255.255.255 FY16 227 61 30
*Based on 100% for TUI Cruises and pro forma figures for Thomson Cruises
23 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight1,0 Mrd. € = Cruise – Growth Roadmap Ziel oneTUI New TUI-Green 1 • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 CMD Growth target?
Conventions • Bullet points & 1 standard text in Roadmap TUI-Dark Blue 3 new builds 3 further ships 2 new builds 2017-2019 invested within JV ~€200m per ship ~€145m per ship
Contribution to ~€25m-€30m ~€25m per new ~€15m per new Und. EBITA per 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 1) TUI-Dark Blue TUI-Black 9.42.94 0.0.0
Primary colours Primary *Based on 50% share of EAT for TUI Cruises TUI-White **Includes MS1 and MS2 – these ships combined currently generate ~€25m share of EAT within TUI Cruises. 255.255.255 Strong ROIC of 21.3%1, significantly ahead of segmental WACC of 7.5%
1 Reflects TUI Cruises and Hapag-Lloyd ROIC
24 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 Non-risk (Managed) TUI-Red
239.0.0 Functional • Always use Risk (Owned/ Joint Venture/ Leased) TUITypeLight Hotel Growth New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt Croatia
TUI-Yellow • titles in TUI-Dark Greece Blue 255.225.0 Dublin Berlin Rhodes
Conventions • Bullet points & New York Portugal Cyprus standard text in Ibiza TUI-Dark Blue Dom Rep Bulgaria Djerba Turkey Aruba Sri Lanka
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 Mauritius 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 • 18 group hotels additions plus further third party concept openings since merger 255.255.255 • Focussed on scaling up proven destinations and where there are pockets of growth • Growth delivered through our core hotel, club and concept brands
25 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight1,0 Mrd. € = Hotels – Growth Roadmap Ziel oneTUI New TUI-Green 1 • Font size14pt 170.215.0 • Line spacing 6 pt • titles in TUI-Dark Growth Roadmap Contribution to TUI-Yellow Blue Structure 255.225.0 CMD 2017-2019 Und. EBITA target? Conventions • Bullet points & 1 standard text in TUI-Dark Blue Indicative split of future growth capex by destination + • Ownership/JV in + Owned
Range of earnings Year-Round high growth Owned regions, where Summer Only
New TUI-Blue there is scarcity Managed New TUI-Grey 25%
Season duration Season Achromatic 112.203.244 of supply Range of earnings 220.220.220 New TUI-Blue 50% • Management New TUI-Grey ++ 194.230.250 ~40-45 additional elsewhere when Earnings 115.115.115 1) TUI-Dark Blue hotel openings by possible On average ~€2m per new TUI-Black 9.42.94 end of 0.0.0 Primary colours Primary 2018/19 hotel* TUI-White 255.255.255 *Based on profitability of Riu and Robinson and current mix of ownership models. ROIC hurdle of 15% is significantly ahead of segmental WACC of 6.5%
26 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Key Projects Features Roadmap
• titles in TUI-Dark TUI-Yellow A rich, immersive • Holiday search & book Blue • Common platform live in all 255.225.0 experience at the • Holiday information & Source Markets except Conventions • Bullet points & “Tui App” heart of our mobile ancillary booking Germany, which will be rolled out standard text in • Contact your rep TUI-Dark Blue vision. in mid-December.
Customer • Single view of the customer • First Version live in Germany • Customer service app for • Roll out to come FY17/FY18 Platform Destination Services • (Destination services Q2, UK Q4, Belgium Q4, Nordics Q2 FY18)
New TUI-Blue • Capture & analyse customer New TUI-Grey 25%
Using customer • Netherlands, Belgium, Achromatic 112.203.244 Group interactions across all channels 220.220.220 insight to provide • Campaign management system Nordics live Marketing more personalised across all channels • Germany Feb 2017, UK Sep New TUI-Blue 50% 2017 (already working with New TUI-Grey Platform customer service and • Implementation of marketing 194.230.250 previous version) 115.115.115 marketing. programme across the customer experience TUI-Dark Blue TUI-Black 9.42.94 0.0.0 Bespoke IT solution to automate • Solution rolled out to Nordics • Targeting roll out to further Primary colours Primary Yield the management and pricing of in 2016 markets including Germany TUI-White Management over next 24 months. 255.255.255 holidays 24-7. Digital transformation focused on customer experiences and business efficiency
27 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Potential Renaming offers opportunity to reposition
Conventions • Bullet points & standard text in TUI-Dark Blue 360° Experience End to end consistent customer experience including media power
Digital Presence Opportunity for more impact through centralised URL
New TUI-Blue Operational Efficiency Operational efficiency by optimising content and marketing production New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% Competitiveness Competitive strength against global platforms New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 Brand Equity One global brand, with local roots 0.0.0 Primary colours Primary TUI-White 255.255.255 Brand migration will be funded from ongoing operational efficiency and increased revenues
28 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUI Rebrand Belgium & Nordics Underway TUITypeLight New TUI-Green • Font size14pt 170.215.0 Brand Awareness - Netherlands • Line spacing 6 pt Source: MediaXplain 1 Oct 2015 TUI launch Experience of Netherlands rebranding • titles in TUI-Dark TUI-Yellow 100% 86% 88% 88% 81% 82% 88% 255.225.0 Blue 76% 80% • Rebrand in Netherlands paid back within the year 80% 67% 70% Conventions • Bullet points & Unaided • Market share gain post rebrand standard text in 60% 50% 52% - TUI 46% 47% • FY16 saw +3ppts increase of online mix to 50% TUI-Dark Blue Unaided 35% 35% • We are seeing a similar pattern of higher unaided 40% 29% - Arke 23% 20% Aided - TUI brand awareness shortly after rebranding in 20% 12% TUI both Belgium and the Nordics Aided- 0% Arke • Confident in planned UK migration Week 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46
Brand Awareness - Belgium Brand Awareness - Sweden
New TUI-Blue Source: Futures 19 Oct 2016 TUI launch Source: Carat 1 Nov 2016 TUI launch New TUI-Grey 25% Achromatic 112.203.244 100% 100% 220.220.220 81% 79% 75% 80% 68% 80% Unaided 67% New TUI-Blue 50% 59% Unaided New TUI-Grey 56% TUI 60% 51% TUI 194.230.250 Unaided 60% 50% Unaided 115.115.115 44% 40% Jetair 34% 35% 38% Fritidsresor 40% 32% 40% 32% 29% 29% TUI-Dark Blue 23% Aided Aided TUI TUI-Black TUI 20% 9.42.94 12% 14% 20% 6% Aided 20% Aided 0.0.0 2% 3% 4% 6% Primary colours Primary Jetair 1% Frititsresor TUI-White 0% 0% Week 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Week 33 34 35 36 37 38 39 40 41 42 43 44 45 46 255.255.255 Brand migration is progressing well in both Belgium and Nordics
29 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 • One central organisation across five AOCs TUI-Yellow Blue • Purchasing & Finance - one procurement 255.225.0 Central platform organisation, leveraging scale on all contracts Conventions • Bullet points & standard text in One Aviation for local airlines • Maintenance - One engineering & maintenance TUI-Dark Blue function • Interoperability among fleet and crew
Unique Destination • > 100 destinations and > 11 million customers • Carve out complete – from Hotelbeds to Destination Services brings the Tourism • Seamless cloud based customer platform, the New TUI-Blue Services TUI brand alive New TUI-Grey 25%
same as we will use in the Source Markets Achromatic 112.203.244 220.220.220
New TUI-Blue 50% Opportunities for New TUI-Grey 194.230.250 115.115.115 Consolidation consolidation to • Completion of Transat acquisition, will deliver TUI-Dark Blue strengthen our market ~€25-30m of efficiencies TUI-Black
9.42.94 position 0.0.0 Primary colours Primary TUI-White 255.255.255 Operational efficiencies delivered through central control
30 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 255.225.0 1 Conventions • Bullet points & demographics, TUI voted Germany’s most trusted travel brand , with high average customer standard text in TUI-Dark Blue spend. • Significant overcapacity in German aviation market – we intend to address this with our 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.
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 • Important step in our 3-5 year journey of improvement in Germany. 220.220.220
New TUI-Blue 50% Market Share* Distribution TUIfly Fleet New TUI-Grey 194.230.250 Air Berlin 115.115.115 W/Lease 1) TUI 14 x B737 TUI-Dark Blue TUI-Black All others 57% 55% Third party 9.42.94 0.0.0
Thomas Franchise Primary colours Primary Cook 16% 17% Own retail TUI-White FTI Gp 255.255.255 14% 14% Online DER 13% 14% Operated by TUI Fly * Company estimates, 2015 data - rebased based on GfK Tour Operator Market Share FY15 FY16 data 27 x B737-800 1 Source: Reader’s Digest Trusted Brand 2016
31 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Strategy Update 255.225.0
Conventions • Bullet points & standard text in Horst Baier 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
32 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight1,0 Mrd. € = Strong Operating Cash Flow Ziel oneTUI New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue Normalised Operating 255.225.0
Conventions • Bullet points & Cashflow* standard text in TUI-Dark Blue • Normalised operating cash flow €1.0bn €0.95bn generation of over €0.9bn in ~€0.9bn 2015/16 ~€0.8bn
New TUI-Blue • Further reduction in SDIs New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 • High level of operating cash 115.115.115 1) TUI-Dark Blue flow and proceeds from TUI-Black 9.42.94 disposals help to finance 0.0.0 Primary colours Primary FY15 FY15 FY16 Und. FY16 TUI-White Und.EBITA Normalised EBITA Normalised Op.Cash Flow Op.Cash Flow transformational growth 255.255.255
*Operating cash flow adjusted for ~€100m of normalised working capital
33 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight1,0 Mrd. € = Balanced Ownership Model with Clear Investment Hurdle Rates Ziel oneTUI New TUI-Green 1 • Font size14pt Group Hotels Owned Hotels 170.215.0
• Line spacing 6 pt Ownership structure as at 30/9/2016 Ownership structure as at 30/9/2016
• titles in TUI-Dark Lease Franchise Joint Venture TUI-Yellow Blue 255.225.0 CMD Balanced Ownership target?
Conventions • Bullet points & 1 standard text in Model TUI-Dark Blue Management Ownership Subsidiary
• Bring significant operational benefits for hotels and Strong Joint Venture cruises • Reduces level of invested capital on a consolidated
New TUI-Blue Relationships New TUI-Grey 25% Achromatic basis 112.203.244 220.220.220 New TUI-Blue 50% Source Market Accommodated Customers Core Branded Content Hotels New TUI-Grey 194.230.250 Group Hotels 115.115.115 Group Hotels 1) TUI-Dark Blue TUI-Black
9.42.94 Third Party Content 0.0.0 Primary colours Primary Third Party Hotels TUI-White Third Party Hotels 255.255.255 Target ROIC : at least 15% on average for new investments
34 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight1,0 Mrd. € = Cruise Ships & Aircraft Finance Ziel oneTUI New TUI-Green 1 • Font size14pt 170.215.0 • Line spacing 6 pt • titles in TUI-Dark Aircraft TUI-Yellow Blue Cruise Ships 255.225.0 CMD target?
Conventions • Bullet points & Cruise Fleet By Ownership Structure as at Aircraft Fleet By Ownership Structure as at 1 standard text in 30/9/2016 30/9/2016 TUI-Dark Blue Finance Operating Cruise Brand Owned Total Lease Lease Operating Finance Owned Lease Structure Lease Total TUI Cruises (JV) 5 - - 5 (FV) Thomson Cruises - 3 2 5 # of Aircraft 8 16 125 149 Hapag-Lloyd Financing ~€0.1bn* ~€1bn ~€2bn €3.0bn
New TUI-Blue Cruises 3 - 1 4 New TUI-Grey 25% Achromatic 112.203.244 220.220.220 • Order book for 787s and 737-MAXs. • New build ships typically 80% debt/20% New TUI-Blue 50% equity finance. • Net PDPs ~€200m/~€100m/~€100m in New TUI-Grey 194.230.250 next three years. 115.115.115 1) • TUI Cruises investments ring fenced within TUI-Dark Blue joint venture (3 more ships to come). • Financing method for new aircraft deliveries TUI-Black 9.42.94 typically by operating or finance lease 0.0.0 Primary colours Primary • Thomson Cruises - fleet modernisation, 3 structures providing 100% financing and will TUI-White more ships to come, 1 owned, 2 to be 255.255.255 be reviewed on a case by case basis. 1) … determined.
*Reflects debt finance for two aircraft only, remaining aircraft wholly owned
35 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 255.225.0 Blue Disposals Capex
Conventions • Bullet points & standard text in TUI-Dark Blue + Travelopia + Hapag-Lloyd AG ~€1.0bn
xx
~€0.8bn €0.6bn Normalised capex New TUI-Blue New TUI-Grey 25%
Hotelbeds Achromatic 112.203.244 ~3.5% of Revenue 220.220.220 €1.1bn Hotels ~40% New TUI-Blue 50% New TUI-Grey 194.230.250 Cruises ~20% 115.115.115 IT ~20% TUI-Dark Blue TUI-Black 9.42.94 Other ~20% 0.0.0 Primary colours Primary Consideration FY16 FY17 FY18 and FY19 TUI-White net of costs 255.255.255
* Guidance excludes aircraft order book finance (pre delivery payments and liquidations, owned and finance leased aircraft)
36 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Mechanics of Transformation New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt Proceeds & Reinvestment Earnings Transformation • titles in TUI-Dark TUI-Yellow Blue + Travelopia FY16 to FY20* 255.225.0 + Hapag-Lloyd AG ~40-45 hotels
Conventions • Bullet points & standard text in contributing ~€2m per new hotel TUI-Dark Blue
~€600m ~€90m
Additional top up payment September 2016 €11m
New TUI-Blue €1.1bn New TUI-Grey 25% Achromatic 112.203.244 220.220.220 ~€25-30m €174m New TUI-Blue 50% Discovery 2 New TUI-Grey Expedition ships €93m 194.230.250 €55m 115.115.115 ~€55m
TUI-Dark Blue TUI-Black 9.42.94 €290m 0.0.0
Primary colours Primary HotelbedsHotelbeds & Cruises Transat UK Hotels TUI-White Travelopia& pensions 255.255.255 ConsiderationHBG consideration Cruises TransatT UK pensions Hotels TravelopiaFY16 Und. net of costs (EV) FY16EBITA
* Based on underlying EBITA run rate; UK pensions based on notional interest impact
37 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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-” (S&P) and “Ba2” (Moody’s, upgraded from 255.225.0
Conventions • Bullet points & Ba3 in April 2016) standard text in TUI-Dark Blue • We are committed to improving our credit metrics, therefore we are setting 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
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 Interest cover 4.5 to 5.5 times 4.8 times 4.75 to 5.75 times 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 • Ratios are based on gross debt including pensions and leases 115.115.115
TUI-Dark Blue • Focus on rating to obtain advantageous financing conditions and ensure access to TUI-Black
9.42.94 debt capital markets.l markets 0.0.0 Primary colours Primary TUI-White 255.255.255 * See appendix for detailed calculation
38 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Dividend per share (in €c) Dividend payouts (in €m)* TUI-Yellow 255.225.0 Blue
Conventions • Bullet points & Merger standard text in ~370 TUI-Dark Blue 63 cents 329 6 56 cents 7
Based on 5 underlying 7 earnings growth 95 4
New TUI-Blue Additional 38 New TUI-Grey 25% Achromatic 112.203.244 10% 220.220.220 58 2012/13 2013/14 2014/15 2015/16 New TUI-Blue 50% 51 New TUI-Grey 194.230.250 45 115.115.115 Base
We are committed to delivering a TUI-Dark Blue TUI-Black 9.42.94 growth strategy which will enable 0.0.0
Primary colours Primary superior returns for our shareholders TUI-White 2014/15 2015/16 2016/17 255.255.255 indicative only *TUI AG dividend relating to financial years, paid out in the following calendar year
39 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Growth Roadmap - Summary New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt Drivers What Impact?* By When?
At least 10%* • titles in TUI-Dark TUI-Yellow Blue underlying EBITA 255.225.0 • ~40-45 further openings in • ~€2m und. EBITA per hotel** • End of 2018/19 CAGR to 2018/19 Conventions • Bullet points & Group hotels standard text in
TUI-Dark Blue Growth in • TUI Cruises - 3 new ships • ~€25-30m share EAT per ship • S17, S18, S19 Earnings dilution Our Hotel • MS1 & MS2 move to UK Fleet • Currently generate ~€25m • S18, S19 & Cruise share of EAT in TUI Cruises from disposals Brands offset by • Thomson Cruises – 3 new ships • ~€25m und. EBITA per ship • S17, S18, S19 investment in • HL Cruises – 2 new expedition • ~€15m und. EBITA per ship • Spr & Aut 2019 ships transformational
New TUI-Blue growth New TUI-Grey 25% Achromatic 112.203.244 • Profitable top line growth • ~3% per annum • Ongoing 220.220.220 Brand, IT which outperforms the market Integrated model • France – break even & deliver • ~2.5% und. EBITA margin • End of 2018/19 New TUI-Blue 50% and delivers New TUI-Grey 194.230.250 benefits of Transat acquisition 115.115.115 efficiencies • Deliver remaining synergies • ~€20m und. EBITA benefit • End of 2017/18 sustainable
TUI-Dark Blue growth TUI-Black
9.42.94 Balance 0.0.0 Primary colours Primary Sheet • Investment in transformational growth in medium term, financed by Balanced TUI-White strong operating cash flow and disposal proceeds guidance 255.255.255 Strength & • Attractive dividend policy approach Flexibility * At constant currency rates **Based on profitability of RIU and Robinson and current mix of ownership models.
40 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Blue 255.225.0
Conventions • Bullet points & standard text in Metric 2015/16 2016/17e TUI-Dark Blue Turnover €17,185m ~3% growth Underlying EBITA €1,001m At least 10% growth Adjustments €102m ~€80m
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 Net Interest €180m ~€160m 220.220.220 New TUI-Blue 50% New TUI-Grey 194.230.250 Net Capex & Investments** €642m ~€1.0bn 115.115.115
TUI-Dark Blue Net Cash/Debt €32m net cash ~€0.8bn net debt TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White Underlying Effective Tax Rate 25% 25% 255.255.255 * Assuming constant foreign exchange rates are applied to the result in the current and prior period and based on the current group structure; guidance relates to continuing operations and excludes any disposal proceeds for Travelopia and Hapag-Lloyd AG ** Excludes Hotelbeds Group proceeds
41 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Summary 255.225.0
Conventions • Bullet points & standard text in Fritz Joussen 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 | FY2015/16 Results & Strategy Update | 8 December 2016 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 255.225.0 • Disposal of Hotelbeds Group complete and disposal process for
Conventions • Bullet points & standard text in TUI-Dark Blue Travelopia underway
• Focussed on delivering transformational growth in our own hotel and cruise brands, supported by a strong and flexible balance sheet
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 • Medium term cash flow will reflect reinvestment of proceeds from 220.220.220
New TUI-Blue 50% Hotelbeds Group disposal New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue • We expect to deliver at least 10% growth in underlying EBITA in TUI-Black 9.42.94 1 0.0.0 Primary colours Primary 2016/17 , and reiterate our previous guidance of at least 10% TUI-White 1 255.255.255 underlying EBITA CAGR to 2018/19
1At constant currency
43 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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
44 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight 2015/16 Turnover by Segment (excludes intra-group turnover)* New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
TUI-Yellow • titles in TUI-Dark Change ex Blue In €m 2015/16 2014/15 Change FX 255.225.0 FX
Conventions • Bullet points & standard text in Northern Region 7,001.5 7,348.4 -346.9 -539.1 192.2 TUI-Dark Blue Central Region 5,566.6 5,600.9 -34.3 -8.8 -25.5 Western Region 2,869.9 2,847.0 22.9 - 22.9 Source Markets 15,438.0 15,796.3 -358.3 -547.9 189.6 Riu 461.5 423.2 38.3 -19.7 58.0 Robinson 72.2 71.8 0.4 -0.1 0.5 Other (incl former TUI Travel hotels) 84.9 79.8 5.1 -4.2 9.3 Hotels & Resorts 618.6 574.8 43.8 -24.0 67.8 New TUI-Blue New TUI-Grey 25%
TUI Cruises - - - - - Achromatic 112.203.244 220.220.220 Hapag-Lloyd Cruises 296.7 273.3 23.4 - 23.4 New TUI-Blue 50% Cruises 296.7 273.3 23.4 - 23.4 New TUI-Grey 194.230.250 Other Tourism 665.5 704.8 -39.3 -2.4 -36.9 115.115.115 Tourism 17,018.8 17,349.2 -330.4 -574.3 243.9
TUI-Dark Blue All Other Segments 165.8 166.3 -0.5 -1.1 0.6 TUI-Black
9.42.94 TUI Group continuing operations 17,184.6 17,515.5 -330.9 -575.4 244.5 0.0.0 Primary colours Primary TUI-White 255.255.255 *Table contains unaudited figures and rounding effects
45 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight 2015/16 Underlying EBITA by Segment* New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt • titles in TUI-Dark Change ex TUI-Yellow Blue In €m 2015/16 2014/15 Change FX 255.225.0 FX
Conventions • Bullet points & Northern Region 460.9 538.4 -77.5 -95.0 17.5 standard text in TUI-Dark Blue Central Region 88.5 103.5 -15.0 -0.5 -14.5 Western Region 86.1 68.7 17.4 - 17.4 Source Markets 635.5 710.6 -75.1 -95.5 20.4 Riu 318.3 261.0 57.3 -11.3 68.6 Robinson 38.6 41.6 -3.0 0.5 -3.5 Other (incl former TUI Travel hotels) -69.6 -68.0 -1.6 6.4 -8.0 Hotels & Resorts 287.3 234.6 52.7 -4.4 57.1
New TUI-Blue TUI Cruises 100.1 68.1 32.0 - 32.0 New TUI-Grey 25% Achromatic 112.203.244 Hapag-Lloyd Cruises 29.5 12.4 17.1 - 17.1 220.220.220 Cruises 129.6 80.5 49.1 - 49.1 New TUI-Blue 50% Other Tourism 4.6 8.4 -3.8 3.3 -7.1 New TUI-Grey 194.230.250 115.115.115 Tourism 1,057.0 1,034.1 22.9 -96.6 119.5 All Other Segments -56.5 -80.8 24.3 5.9 18.4 TUI-Dark Blue TUI-Black
9.42.94 TUI Group continuing operations 1,000.5 953.3 47.2 -90.7 137.9 0.0.0 Primary colours Primary TUI-White 255.255.255 *Table contains unaudited figures and rounding effects
46 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Deliver Merger Synergies New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 In €m Per Capital Markets Update Realised to FY15 Realised to FY16
Conventions • Bullet points & standard text in May 2015 TUI-Dark Blue Synergies One-off Synergies One-off Synergies One-off costs to costs to costs to achieve achieve achieve Corporate 50 35 10 31 40 35 streamlining Occupancy New TUI-Blue 30 - 10 - 30 - New TUI-Grey 25%
improvement Achromatic 112.203.244 220.220.220 Destination 20 42 - 17 10 31 New TUI-Blue 50% Services* New TUI-Grey 194.230.250 115.115.115 TOTAL 100 77 20 48 80 66
TUI-Dark Blue TUI-Black
9.42.94 Underlying effective tax rate for 2015/16 at 25% 0.0.0 Primary colours Primary TUI-White 255.255.255 On track to deliver synergies in full by end of 2016/17
* Excludes Hotelbeds Group. One-off costs include SDI’s and Capex.
47 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Earnings Per Share (continuing operations) New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
TUI-Yellow • titles in TUI-Dark In €m Reported Pro forma* Blue 255.225.0
Conventions • Bullet points & 2015/16 2014/15 2015/16 2014/15 standard text in TUI-Dark Blue EBITA 898 795 1,001 953 Excludes convertible Net interest expense -180 -183 -180 -163 bond interest
H-L AG book value adjustment and equity result -100 -146 - - Underlying effective tax rate calculated EBT 618 466 821 790 based on underlying EBT, adjusted for
New TUI-Blue Tax rate 25% 12% 25% 25% convertible bond New TUI-Grey 25% Achromatic 112.203.244 interest 220.220.220 Tax charge -153 -58 -205 -197 New TUI-Blue 50% Pro forma minority New TUI-Grey 194.230.250 Minority interest -111 -56 -111 -90 interest excludes TUI 115.115.115 Travel for full year
TUI-Dark Blue Hybrid dividend - -11 - -11 TUI-Black 9.42.94 0.0.0
Net income 354 341 504 492 Primary colours Primary TUI-White Pro forma NOSH Basic number of shares 584 513 587 587 based on issued share 255.255.255 capital as at 30.9.16 Basic Earnings per Share (€) 0.61 0.66 0.86 0.84
* Pro forma number of shares excludes 6.5m shares relating to employee stock options and Employee Benefits Trust; figures are rounded
48 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 In €m 2015/16 2014/15* TUI-Yellow Blue 255.225.0 EBITA reported** 898.1 794.6
Conventions • Bullet points & standard text in Depreciation** 407.0 420.2 TUI-Dark Blue Working capital 271.8 -82.8 Other cash effects 63.7 17.5
At equity income** -187.2 -114.0 Dividends received from JVs and associates 82.2 81.3 Tax paid -186.4 -148.4
New TUI-Blue Interest (cash) -71.2 -73.3 New TUI-Grey 25% Achromatic 112.203.244 Pension contribution -335.6 -184.3 220.220.220
New TUI-Blue 50% Operating Cashflow 942.4 710.8 New TUI-Grey 194.230.250 Net capex -533.4 -496.8 115.115.115 Net investments 758.9 -174.1 TUI-Dark Blue TUI-Black 9.42.94 Net pre-delivery payments -48.7 11.9 0.0.0
Primary colours Primary Free Cashflow 1,119.2 51.8 TUI-White Dividends & Hybrid Interest -341.1 -306.3 255.255.255 Movement in Cash Net of Debt 778.1 -254.5
*Prior year restated due to exclusion of Hotelbeds & Travelopia in reported EBITDA **Continuing ops basis – non-continuing adjustment in Other cash effects
49 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Adjustments 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 €m 2015/16 2014/15 TUI-Dark Blue Restructuring expense -12 -59
Losses/gains on disposals -1 3
New TUI-Blue Other one-off items -47 -61 New TUI-Grey 25% Achromatic 112.203.244 220.220.220 PPA -42 -42 New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 Total Adjustments -102 -159
TUI-Dark Blue TUI-Black 9.42.94 0.0.0
Primary colours Primary o/w merger-related -11 -39 TUI-White 255.255.255
50 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Net Interest Result 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 €m 2015/16 2014/15 TUI-Dark Blue Debt related interest -126 -127
Non-debt related charge -75 -76
New TUI-Blue Interest income 21 20 New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% Net interest result -180 -183 New TUI-Grey 194.230.250 115.115.115 o/w cash interest -71 -73 TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
51 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 255.225.0 Operating Lease* Finance Lease Owned Total
Conventions • Bullet points & standard text in TUI-Dark Blue As at 30 September 2015 124 15 8 147
Order book financing - 1 - 1
External Lessor deliveries 7 - - 7
External Lessor Returns (6) - - (6)
New TUI-Blue New TUI-Grey 25% Achromatic 220.220.220 112.203.244 As at 30 September 2016 125 16 8 149
New TUI-Blue 50% New TUI-Grey * Includes aircraft leased from and operated on behalf of 3rd party airlines 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
52 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 16/17 17/18 18/19 19/20 20/21 • titles in TUI-Dark TUI-Yellow Blue B737 NG - - - - - 255.225.0
Conventions • Bullet points & standard text in B737-MAX - 5 18 18 12 TUI-Dark Blue B787-8 - - - - -
B787-9 1 2 - - -
Firm order book deliveries 2017-2021 1 7 18 18 12 New TUI-Blue New TUI-Grey 25%
Financial Years (FY) ending 30 September; figures correct as at 30 September 2016 Achromatic 220.220.220 112.203.244 TUI has flexibility to defer the delivery dates of B737MAX aircraft subject to appropriate notice and certain other conditions
New TUI-Blue 50% In addition to the above firm orders, TUI Group has further aircraft options : New TUI-Grey 194.230.250 115.115.115 16/17 17/18 18/19 19/20 20/21
TUI-Dark Blue TUI-Black
9.42.94 B737-MAX - - - 2 9 0.0.0 Primary colours Primary TUI-White B787-9 - - 1 - - 255.255.255 Option order book deliveries 2017-2021 - - 1 2 9
Financial Years (FY) ending 30 September; figures correct as at 30 September 2016
53 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Financial Target Ratios 2015/16 New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt In €m 15/16
• titles in TUI-Dark TUI-Yellow Blue Gross debt 2,041 255.225.0
Conventions • Bullet points & standard text in Pensions 1,451 TUI-Dark Blue NPV operating leases 3,320 Debt 6,812 Reported EBITDAR 2,050 Leverage Ratio 3.3x
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% Reported EBITDAR 2,050 New TUI-Grey 194.230.250 115.115.115 Rentals - interest component* 248
TUI-Dark Blue TUI-Black
9.42.94 Net interest expense 180 0.0.0 Primary colours Primary TUI-White Interest charges 428 255.255.255 Coverage Ratio 4.8x
* Simplified approach - one third of long-term rental expense
54 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Pension – update on defined benefit obligation 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 & Net unfunded standard text in • Generally adopted in Continental Europe. TUI-Dark Blue obligation • Full obligation sits within the balance sheet. €0.9bn
• Generally adopted in the UK.
New TUI-Blue • Provision covers shortfall between plan assets and PV of New TUI-Grey 25% Achromatic 112.203.244 220.220.220 Net externally benefit obligations only (IFRS methodology). New TUI-Blue 50% • Must comply with UK Pension Regulator requirements. New TUI-Grey 194.230.250 funded • Continuous dialogue with Pension Trustees - defined 115.115.115 contribution plan in place. TUI-Dark Blue obligation TUI-Black 9.42.94 €0.5bn • €0.2bn additional top-up payment made to UK pension 0.0.0 Primary colours Primary post receipt of Hotelbeds disposal proceeds. TUI-White • 255.255.255 Triennial Valuation underway – based on 30 September 2016.
Note: Balance sheet net obligation as at 30 September 2016
55 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Key Sources of Funding 30 September 2016 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 Interest % Instrument Issue Maturity Amount €m p.a.*
Revolving Credit Facility Sep 14 Dec 20 1,750** E/L +1.55
New TUI-Blue High Yield Bond Sep 14 Oct 19 300 4.5 New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% Finance leases Various Various 1,232 Various New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black *Upgrade of our rating by Moody’s has reduced our RCF interest margin from 1.7% to 1.55% p.a as of 27/04/2016. 9.42.94 **Including a tranche of €215.0m for the issue of bank guarantees 0.0.0
Note: €300m Senior Notes with a coupon of 2.125% p.a was issued post Balance Sheet date on 26 October 2016. The notes will mature on 26 October 2021. Primary colours Primary The High Yield Bond was repaid in full post Balance Sheet date on 18 November 2016. TUI-White 255.255.255
56 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Source Markets New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt Turnover and Earnings (€m) Bridge Underlying EBITA (€m)
TUI-Yellow • titles in TUI-Dark 18 -15 17 Blue -96 255.225.0
15/16 14/15 %
Conventions • Bullet points & standard text in TUI-Dark Blue 711 Turnover 15,438.0 15,796.3 -2.3 731 635 Underlying EBITA 635.5 710.6 -10.6 14/15 Northern Central Western 15/16 pre FX 15/16 Region Region Region FX translation
Northern Region New TUI-Blue New TUI-Grey 25%
• Strong performance overall despite some challenges in Nordics and Canada. Achromatic 112.203.244 220.220.220 • Significant growth in UK across short, medium and long haul and driven by the modernisation of our cruise offering with the launch of TUI Discovery. New TUI-Blue 50% • Continued high levels of direct and online distribution – 92% and 62% respectively. New TUI-Grey 194.230.250 Central Region 115.115.115 • Despite challenging market conditions, we continued to grow market share.
TUI-Dark Blue • Further improvement in direct distribution for the region to 47%. Online distribution at 15%. TUI-Black 9.42.94 • The result includes the impact of a court ruling in November regarding airport services and marketing agreements with an Austrian 0.0.0
Primary colours Primary airport, and the partial impact on holidays commenced in September of unexpectedly high levels of sickness among TUIfly flight TUI-White crew. 255.255.255 Western Region • Good performance overall despite Brussels airport attack, with significant improvement in French result and successful rebrand in Netherlands. • Further growth in direct and online distribution to 70% and 52% respectively.
57 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Source Markets New TUI-Green • Font size14pt KPIs 2015/16 170.215.0 • 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 TUI-Dark Blue y-o-y (%) (`000) y-o-y (ppts) (%) y-o-y (ppts) (%) y-o-y (€m) (€m)
Northern Region* 2 7,388 1 92 4 862 1 -77 461
Central Region -5 6,828 3 47 0 15 -15 88
New TUI-Grey 25%
New TUI-Blue Western Region* 1 5,016 2 70 4 52 17 86 Achromatic 112.203.244 220.220.220
New TUI-Blue 50% Source Markets -1 19,231 2 72 2 43 -75 635 New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue * Western now excludes Italy (reported in All Other Segments) and Northern now includes Crystal Ski, Thomson Lakes & Mountains (prev .in Specialist Group) TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
58 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight 1 New TUI-Green • Font size14pt Source Market KPIs 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 Direct Distribution Online Distribution Customers (000) 15/16 14/15 15/16 14/15 15/16 14/15 UK 92% 92% 58% 54% 6,004 5,773 Nordics 90% 90% 75% 72% 1,384 1,468 Germany2 45% 43% 14% 13% 6,289 6,628 New TUI-Blue New TUI-Grey 25%
Benelux 73% 70% 56% 52% 4,312 4,245 Achromatic 112.203.244 220.220.220 Total Source Markets3 72% 70% 43% 41% 19,231 19,361 New TUI-Blue 50% 1 able contains unaudited figures New TUI-Grey 194.230.250 2 Germany includes Austria 115.115.115 3Source Markets restated as Western now excludes Italy (reported in All Other Segments) and Northern now includes Crystal Ski, Thomson Lakes & Mountains (prev .in Specialist Group).
TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255
59 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt Turnover and Earnings (€m) Bridge Underlying EBITA (€m)
• titles in TUI-Dark TUI-Yellow 1 255.225.0 Blue -50 -4 68 37
Conventions • Bullet points & 15/16 14/15 % standard text in TUI-Dark Blue Turnover 618.6 574.8 7.6 291 287 Underlying EBITA 287.3 234.6 22.5 235
o/w Equity result 57.7 44.0 31.1
14/15 Riu Robinson Tky/NA Other 15/16 pre FX 15/16 FX
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220 • Growth in earnings despite impact of Turkey and North Africa. New TUI-Blue 50% • Seven additional hotels opened in our core brands in the year, with 18 opened in total since the New TUI-Grey 115.115.115 194.230.250 end of 2013/14.
TUI-Dark Blue • Riu delivered a strong performance, with further increase in capacity, occupancy and rate. Spain, TUI-Black
9.42.94 Cape Verde and Caribbean performed particularly well. 0.0.0 Primary colours Primary TUI-White • Targeted occupancy improvement delivered in full, realising the benefits of the integrated 255.255.255 model. • ROIC increased from 10.5% to 12.3% in the year, compared with segmental WACC of 6.5%.
60 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt KPIs 2015/16 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow 255.225.0 Blue Capacity1 Revenue/bed2 Occupancy3 Underly. EBITA4
Conventions • Bullet points & standard text in y-o-y (%) (`000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) TUI-Dark Blue
1 17,396 6 60.3 4 90 57 318
6 3,081 -1 90.1 -6 67 -3 39
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 Other 220.220.220 (incl former TUI -2 -70 Travel Hotels) New TUI-Blue 50% New TUI-Grey 194.230.250 TUI H&R 115.115.115 (incl former -2 35,031 6 58.0 -1 78 52 287 TUI Travel Hotels) TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 255.255.255 1 Group owned or leased hotel beds multiplied by opening days per quarter 2 Arrangement revenue divided by occupied beds 3 Occupied beds divided by capacity 4 Segment figures Note: capacity, revenue/bed and occupancy have been restated to exclude Grecotel which was disposed during 2014/15
61 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight 2016 Hotel Summary by concept New TUI-Green • Font size14pt FY15 FY16 3rd Party FY16 Group 170.215.0 FY16 FY16 FY16 • Line spacing 6 pt Hotel brand Group Group Concept & All
Openings Closures Repositionings TUI-Yellow • titles in TUI-Dark Hotels Hotels Hotels Concepts Blue 255.225.0
Conventions • Bullet points & 104 4 (14) - 94 - 94 standard text in TUI-Dark Blue - - - 2 2 - 2
24 2 (2) - 24 - 24
13 - - - 13 - 13
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 4 1 - - 5 5 10 220.220.220
New TUI-Blue 50% New TUI-Grey 194.230.250 9 - - 11 20 28 48 115.115.115
TUI-Dark Blue - - - 17 17 12 29 TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White Other 156 2 - (30) 128 - 128 255.255.255 Total 310 9 (16) - 303 45 348
Note RIU Calypso in Fuerteventura operates as a Sensimar hotel but is counted within RIU in the table above
62 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt Summary 2015/16 170.215.0 • Line spacing 6 pt Key facts
Hotel beds by region • titles in TUI-Dark TUI-Yellow Blue Total Turnover (€m) 1,278 255.225.0 Other countries Western Mediterranean
Conventions • Bullet points & Eastern standard text in 9% o/w rd (€m) Mediterranean Turnover 3 party 619 TUI-Dark Blue 26% 25% Underlying EBITDA (€m) 378
20% Underlying EBITA (€m) 287 20% Caribbean North Africa/ o/w Equity result (€m) 58 Egypt
New TUI-Blue New TUI-Grey 25% Achromatic Number of hotels 303 112.203.244 Hotels financing structure 220.220.220
New TUI-Blue 50% Franchise Number of beds 213,503 New TUI-Grey Management 194.230.250 Lease 115.115.115 Capacity (‘000) 1 35,031
15% TUI-Dark Blue 3% TUI-Black 9.42.94 0.0.0
44% Revenue/bed (€) 2 58.0 Primary colours Primary
TUI-White 3 255.255.255 38% Occupancy (%) 77.5 Ownership
1 Group owned or leased hotel beds multiplied by opening days per annum; 2 Arrangement revenue divided by occupied beds; 3 Occupied beds divided by capacity; Note: capacity, revenue/bed and occupancy include former TUI Travel Hotels
63 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Hotels & Resorts New TUI-Green • Font size14pt Profit analysis 2015/16 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & standard text in Owned & leased hotels* Capacity Occupancy Rate Bed revenue TUI-Dark Blue 160 35,031 x 77.5% x 58.00€ = €1,574m
o/w fully o/w €m Bed revenue Other Total consolidated associated
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 Turnover owned & leased 1,574 324 1,898 1,278 620 220.220.220
New TUI-Blue 50% o/w turnover internal 659 New TUI-Grey 194.230.250 115.115.115 o/w turnover 3rd party 619
TUI-Dark Blue TUI-Black Underlying EBITDA (incl. associated EAT) 378 320 58 9.42.94 0.0.0
Primary colours Primary Underlying EBITA (incl. associated EAT) 287 229 58 TUI-White 255.255.255 Tables contain unaudited figures and includes former TUI Travel Hotels
* As at 30/9/2016 - financing structure : Management 44%, Ownership 38%, Lease 15%, Franchise 3%
64 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 In €m • titles in TUI-Dark TUI-Yellow o/w RIUSA II o/w Riu Hotels Riu in Blue Riu 100%-view* Total 255.225.0 (fully consolidated) (consolidated at equity) TUI accounts
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 194.230.250 5% 115.115.115 7% 15% Western Med.
Management TUI-Dark Blue 28% TUI-Black 3% North Africa 35% 9.42.94 Ownership 0.0.0 Total 94
Primary colours Primary Caribbean 86,184 Hotels Lease TUI-White 5% Eastern Med. 255.255.255 Franchise 49% Other 53%
* unaudited figures
65 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt RIU Portfolio
Eastern Med.: 2 hotels • titles in TUI-Dark TUI-Yellow Western Med.: 33 hotels Blue 100% 255.225.0 64%
Conventions • Bullet points & Germany standard text in 18% 9% 9% TUI-Dark Blue M O L F M O L F Ireland Bulgaria Portugal Turkey
USA Spain Bahamas New TUI-Blue New TUI-Grey 25%
Mexico Achromatic 112.203.244 St. Martin 220.220.220 Dom. Rep. Jamaica New TUI-Blue 50% New TUI-Grey 194.230.250 Costa Rica Cape Verde Sri Lanka 115.115.115
Panama Morocco TUI-Dark Blue Mauritius TUI-Black 9.42.94 Aruba 0.0.0 Primary colours Primary Caribbean: 38 hotels North Africa: 7 hotels Other: 14 hotels TUI-White 53% 47% 71% 57% 255.255.255 43% 29%
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
66 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 €m • titles in TUI-Dark TUI-Yellow 255.225.0 Blue Robinson in TUI accounts* 15/16 14/15
Conventions • Bullet points & standard text in Turnover 194 192 TUI-Dark Blue Underlying EBITA 39 42
EBITA-Margin 20% 22% EAT (100% TUI) 15 12 ROIC 13% 14% New TUI-Grey 25%
New TUI-Blue Robinson Club Maldives Achromatic 112.203.244 220.220.220 Hotel beds by region (%) Financing structure (%) New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 18% 17% 29% 25% TUI-Dark Blue Western Med. Management TUI-Black 9.42.94 Total North Africa 24 0.0.0 Primary colours Primary 15,342 Clubs Ownership TUI-White Eastern Med. 255.255.255 39% 14% Other Lease 58%
* unaudited figures
67 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight 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.: 6 clubs Turkey Portugal 100% Eastern Med.: 7 clubs Spain Italy 72%
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
9.42.94 50% 0.0.0
Primary colours Primary North Africa: 3 clubs TUI-White 25% 25% 255.255.255 33% 33% 33%
M O L F
M O L F M = Management; O = Ownership; L = Lease; F = Franchise; figures at 30 September 2016
68 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Turnover and Earnings (€m) Bridge Underlying EBITA (€m) Blue 255.225.0
Conventions • Bullet points & 15/16 14/15 % 17 standard text in TUI-Dark Blue Turnover HL Cruises 296.7 273.3 8.6 32 Memo: TUI CruisesTurnover 807.3 614.1 31.5 130 Underlying EBITA 129.6 80.5 61.0 81 o/w EAT TUI Cruises* 100.1 68.1 47.0 14/15 TUI Cruises HL Cruises 15/16
New TUI-Blue * TUI Cruises joint venture (50%) is consolidated at equity New TUI-Grey 25% Achromatic 112.203.244 220.220.220
New TUI-Blue 50% • Strong growth in earnings from TUI Cruises with the full year impact of Mein Schiff 4 and New TUI-Grey 115.115.115 194.230.250 the launch of Mein Schiff 5 in July 2016.
TUI-Dark Blue • Average daily rate and occupancy across the fleet remain strong. TUI-Black 9.42.94 0.0.0
• Significant growth in Hapag-Lloyd Cruises, following completion of their turnaround last Primary colours Primary TUI-White year. 255.255.255 • ROIC increased from 17.2% to 21.3% in the year, compared with a segmental WACC of 7.5%.
69 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Cruises New TUI-Green • Font size14pt KPIs 2015/16 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 Passenger cruise Conventions • Bullet points & Average daily rate Occupancy Underly. EBITA standard text in days TUI-Dark Blue y-o-y (%) (´000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m)
30 3,482 1 171 Flat 102.6 32 100*
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 220.220.220 2 355 8 579 1 76.8 17 30 New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115
TUI-Dark Blue TUI-Black
9.42.94 * Equity result 0.0.0 Primary colours Primary TUI-White 255.255.255
70 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight TUI Cruises New TUI-Green • Font size14pt Key Figures - 100% View 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0
Conventions • Bullet points & standard text in TUI Cruises 100%* 15/16 14/15 % TUI-Dark Blue Turnover 807 614 31% Underlying EBITA 227 156 46% EBITA-Margin 28% 25%
New TUI-Blue New TUI-Grey 25% Achromatic 220.220.220 112.203.244 EAT 200 136 47% New TUI-Blue 50% New TUI-Grey 194.230.250 o/w TUI EAT (50%) 100 68 47% 115.115.115
TUI-Dark Blue ROIC 9% 10% TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White ROE 36% 26% 255.255.255
* unaudited figures
71 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Source Markets New TUI-Green • Font size14pt Current Trading – Winter 2016/17 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue 255.225.0 1 Programme Current trading 2 2 2 Conventions • Bullet points & Revenue Customers ASP standard text in y-o-y variation (%) sold TUI-Dark Blue UK 26 19 6 57%
Nordics -5 -2 -3 72%
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 Germany 220.220.220 3 -4 6 54% New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 Benelux 5 2 3 63%
TUI-Dark Blue TUI-Black 9.42.94 0.0.0
Primary colours Primary Source Markets TUI-White 9 5 4 60% 255.255.255
1These statistics are up to 27 November 2016 and are shown on a constant currency basis 2These statistics relate to all customers whether risk or non-risk
72 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 TUI-Red
239.0.0 Functional • Always use TUITypeLight Destination Update New TUI-Green • Font size14pt 170.215.0 • Line spacing 6 pt
• titles in TUI-Dark TUI-Yellow Blue • Adverse travel advice in UK, Belgium and Netherlands still in place 255.225.0
Conventions • Bullet points & Tunisia • TUI has 11 leased hotels – most have been temporarily closed standard text in TUI-Dark Blue • Not included in Summer 2017 programme
• Adverse travel advice to Sharm el Sheikh airport in UK, Nordics and Russia Egypt • Several hotels temporarily closed
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 • 44 hotels operating end September 2016 – 12 owned, 1 leased, 29 220.220.220 managed, 2 franchised New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 • Programmes operating from source markets but with subdued TUI-Dark Blue TUI-Black 9.42.94 demand 0.0.0 Primary colours Primary Turkey • Programme remixed to Western Mediterranean and other alternative TUI-White destinations 255.255.255 • 26 hotels operating end September 2016 – 9 owned, 13 leased, 2 managed, 2 franchised
73 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 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 Blue 14 February 2017 Q1 2016/17 Report and Annual General Meeting 255.225.0
Conventions • Bullet points & standard text in TUI-Dark Blue 29 March 2017 Pre-close trading update
15 May 2017 Q2 2016/17 Report
New TUI-Blue New TUI-Grey 25% Achromatic 112.203.244 10 August 2017 9M 2016/17 Report 220.220.220 New TUI-Blue 50% New TUI-Grey 194.230.250 115.115.115 28 September 2017 Pre-close trading update TUI-Dark Blue TUI-Black
9.42.94 0.0.0 Primary colours Primary TUI-White 13 December 2017 Annual Report for financial year 2016/17 255.255.255
74 TUI GROUP | FY2015/16 Results & Strategy Update | 8 December 2016 Contact
ANALYST & INVESTOR ENQUIRIES
Andy Long, Director of Investor Relations Tel: +44 1293 645831
Contacts for Analysts and Investors in UK, Ireland and Americas Sarah Coomes, Head of Investor Relations Tel: +44 1293 645827 Hazel Newell, Investor Relations Manager Tel: +44 1293 645823 Jacqui Smith, PA to Andy Long Tel: +44 1293 645831
Contacts for Analysts and Investors in Continental Europe, Middle East and Asia Nicola Gehrt, Head of Investor Relations Tel: +49 511 566 1435 Ina Klose, Investor Relations Manager Tel: +49 511 566 1318 Jessica Blinne, Team Assistant Tel: +49 511 566 1425