TUI Group Capital Markets Update 13 May 2015

TUI GROUP | Capital Markets Update | 13 May 2015 Taking TUI to the next level: The World’s Leading Business Peter Long

2 TUI GROUP | Capital Markets Update | 13 May 2015 TUI Group – The World’s Leading Tourism Business Access to over 20m customers Modern & efficient leisure

Attractive global portfolio Growing fleet of cruise ships

3 TUI GROUP | Capital Markets Update | 13 May 2015 We are already delivering results

Further Outperformed our Integration improvement in Strong growth in financial targets in progressing well occupancy & Cruises 2013/14 yield

Significant Confident of Continued growth Simplified capital improvement in 10-15%* growth in unique holidays structure & strong H1 underlying in underlying & online sales operating cashflow EBITA EBITA in 2014/15

* At constant currency rates

4 TUI GROUP | Capital Markets Update | 13 May 2015 Taking TUI to the next level

• We are focussing on profitable top-line growth in our tourism business and maximising growth and value from our other businesses

• The merger is progressing smoothly, with a faster pace

• We are accelerating organisational change – implementing a flat structure to enable fast and agile decision-making

The World’s Leading Tourism Business

5 TUI GROUP | Capital Markets Update | 13 May 2015 A clear structure to deliver growth and value

Tourism Business Other Businesses

Northern Region Hotels & Hotelbeds Group Specialist Group

Central Region Cruises Held for sale Inbound Services Western Region (from 2015/16) LateRooms Group Hapag-Lloyd AG Platforms (aviation & customer/IT)

6 TUI GROUP | Capital Markets Update | 13 May 2015 A strong management team with experienced commercial leaders

Friedrich David

Peter Long Horst Baier Sebastian Ebel Will Waggott Joussen Burling

Board • Specialist • Northern

Executive Executive • Central Region Group • Hotels & Resorts Region • Hotelbeds Joint CEO Joint CEO CFO • Cruises • Hotel Group • Inbound Services • LateRooms concepts • IT & Central

Group • Aviation Member of the* the* of Member

Elie Thomas Erik Kenton Dr. Hilka Group Executive Committee Executive Group Bruyninckx Ellerbeck Friemuth Jarvis Schneider

Group Group Group Director Group Chief Director Director Western Corporate & Marketing Controlling Legal, Region External Officer and FD Compliance & Affairs Tourism Board Office

*Christian Clemens will be a member of the Group Executive Committee until his resignation as CEO TUI Deutschland at the end of this year 7 TUI GROUP | Capital Markets Update | 13 May 2015 What we want to achieve – our growth levers

Deliver Tourism Growth Integrated Marketing & Inbound platforms Unparalleled Flight Accommodation Sales Service Integrated management customer proposition Maximise Growth & Value of our other businesses Increased Deliver Merger Synergies shareholder Balance sheet strength, flexibility and returns strong free cash flow generation

8 TUI GROUP | Capital Markets Update | 13 May 2015 Deliver Tourism Growth Friedrich Joussen

9 TUI GROUP | Capital Markets Update | 13 May 2015 The World’s Leading Tourism Business

Accommodation Marketing • Strong positions in all parts >7m customers & Sales of the value chain Integrated >20m customers platforms • Business risk minimised through integrated decision Integrated making management Inbound Flight • From growing profits to Service 13m customers profitable growth 11m customers

Customer numbers based on 2013/14, including JVs. Marketing & Sales includes Northern Region, Central Region and Western Region; Flight includes Corsair and TUIfly passengers flown for Air ; Inbound Service relates to in-house customers only; Accommodation includes former TUI AG hotels and cruise customers, former TUI Travel hotels customers and Blue Diamond (Canadian JV) customers

10 TUI GROUP | Capital Markets Update | 13 May 2015 Marketing & Sales Marketing & Sales • One brand, local roots • Strengthen local P&Ls, build Accommodation Integrated on world-class global platforms platforms • More direct, more online • Broadening offering in existing source markets • New source markets Integrated Inbound management Flight Service

11 TUI GROUP | Capital Markets Update | 13 May 2015 One brand*, local roots

• If we set up our company today we would build it on one brand

• If we fast forward into the future one brand would be necessary to compete, particularly online

• We will ensure that we don’t lose the benefits of our local brand equity

* The implementation takes place with respect for all interests of third parties and existing contractual obligations

12 TUI GROUP | Capital Markets Update | 13 May 2015 One brand offers significant opportunities

Growth Potential Renaming offers opportunity to reposition

360° Experience End to end consistent customer experience including media power

Digital Opportunity for more impact through centralised URL

Efficiency Operational efficiency by optimising content production

Competitiveness Competitive strength against global platforms

Brand Equity One global brand, with local roots Brand migration will be funded from ongoing operational efficiency and additional revenues

13 TUI GROUP | Capital Markets Update | 13 May 2015 Our brand migration process* will make sure that we don’t lose local brand equity

NL Phased approach allows transfer of Introduce TUI FR best practice and Phase 1 Phase enables us to BE minimise risk

Nordics

UK Phase 2 Phase

Supporting Workstreams Airline rebranding, destination & airport rebranding, external & internal communication, IT migration * The implementation takes place with respect for all interests of third parties and existing contractual obligations 14 TUI GROUP | Capital Markets Update | 13 May 2015 Strengthen local P&Ls, build on world-class global platforms Northern Region Central Region Western Region

€398m EBITA, 6.4% margin €163m EBITA, 3.0% margin €82m EBITA, 2.8% margin 91% direct distribution 39% direct distribution 66% direct distribution 56% online distribution 12% online distribution 45% online distribution • Highly integrated operating model • More flexible business model with greater • Common operating model in and range of offering (operated under one MD) • High degree of market concentration • Lower level of integration with airline • Airline-focused model in Benelux • Higher proportion of earnings in Winter (Nordics and ) • Low degree of market concentration • Good margin performance in Benelux (>5%) • Optimal levels of direct and online • Lower than average levels of direct and distribution online distribution results in lower margins • Difficult trading conditions in France • Difficult trading conditions in

Build on global Inbound Brand Flight Accommodation IT platforms platforms Service

Figures based on 2013/14

15 TUI GROUP | Capital Markets Update | 13 May 2015 Key levers for profitable top-line growth Key Regional Growth Levers Common Levers

• Broader, more flexible customer offering (tailor-made, durations, third-party flying) • More direct, more online Northern • Long-haul expansion • Modernise UK cruise offering • One brand Region • Nordics margin improvement • Russia turnaround • Broader customer offering • More direct, more online • One Aviation Central Region • Continued improvements in operational efficiency • Common operating model across source markets where appropriate • Internationalise exclusive • More direct, more online hotel concepts Western Region • Common operating model across source markets where appropriate • Leverage IT platforms • France turnaround

Common goal to grow top-line faster than the market (>3%) and deliver at least 10% underlying EBITA CAGR over the next three years

16 TUI GROUP | Capital Markets Update | 13 May 2015 Broadening our offering in existing source markets can deliver top- line growth

Flexibility Third-party flying Long-haul

Wider choice of flight times and departure points enabled by IT, Leveraging our integrated A more flexible customer resulting in a broader model to expand our offering enabled by IT offering and higher long-haul offering accommodation occupancy

Broadening our offering further enables us to grow top-line ahead of the market

17 TUI GROUP | Capital Markets Update | 13 May 2015 New source markets will deliver additional growth

• Scalable technology platform, already launched in Spain

• Low cost / low risk

• Straightforward route to market entry

• Enhances occupancy management for Group hotels - not competing as an OTA

Opportunity to increase occupancy in Group hotels

18 TUI GROUP | Capital Markets Update | 13 May 2015 Flight - Building a Competitive Aviation Platform

Marketing Accommodation Integrated & Sales platforms

Integrated Flight Inbound management • High rates of asset utilisation • Central platform with local Service • 787 expansion

19 TUI GROUP | Capital Markets Update | 13 May 2015 ’s 7th largest airline fleet: Industry-leading rates of asset utilisation

8 aircraft 59 aircraft

10 aircraft 29 aircraft

22 aircraft

Aircraft numbers as at 31 September 2014; TUIfly excludes aircraft leased out to Air Berlin; Corsair excluded from above figures

20 TUI GROUP | Capital Markets Update | 13 May 2015 Central platform with local airlines

• One central organisation across 5 AOC’s Organisational structure • One engineering & maintenance function

• Full interoperability among fleet & crew Business model / • One IT landscape serving all AOCs ways of working • Fully joint long-haul planning to optimised utilisation • Common fleet deployment & capacity planning process

• One procurement organisation leveraging scale on all contracts Central Platform Central Scale • Common supply chain & process

• Crew rostering Local airlines • Flight planning

Targeting €50m operational efficiency improvement by 2018/19

21 TUI GROUP | Capital Markets Update | 13 May 2015 787 Expansion Growing 787 fleet Significant commercial benefits

787-8 787-9 • Opens up new destinations 20 • Enhanced customer experience 15 4 1 2 3 10 • Lower fuel consumption than similarly sized 13 13 13 13 13 5 8 aircraft 0 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 • Switch from -8 to -9 increases our long-haul Additional delivery in 2019 is at our option capacity from Summer 2016

The only leisure airline with the 787 – key differentiator on long-haul

22 TUI GROUP | Capital Markets Update | 13 May 2015 Our unique Inbound Service will bring our brand alive

Marketing Accommodation Integrated & Sales platforms

Integrated Inbound Service management • One service team • Seamless approach based on world Flight class customer platform

23 TUI GROUP | Capital Markets Update | 13 May 2015 One service team

Delivering our differentiation strategy One organisation in all destinations Over 6,500 11m 109 employees customers destinations Customer Sales Service experience Transport Excursions Increase NPS and CSQ Increase sales & margin

Transfers Handling People Cost engagement Being fully integrated within Tourism Reduce cost of sales & overheads Increase engagement scores

Bringing World of TUI to life

Figures shown relate to Inbound Services business which is being moved from Hotelbeds Group to Tourism

24 TUI GROUP | Capital Markets Update | 13 May 2015 Seamless approach based on world class customer platform

Key Initiatives Benefits

Joint operations Joint transfers, management and transport Cost

TUI Collection Differentiated, local experience excursions Customer experience & sales

Enabling customers to use mobile TUI Connect Customer experience & sales communications more effectively while on holiday Enabling customers to design personalised Design your day Customer experience & sales holiday experiences (trialled Summer 2014)

Digital welcome Digitally enabled direct contact between Customer experience, sales, customers and staff (trialled Summer 2014) people engagement Customer experience, sales, Customer platform Single strategic customer platform cost, people engagement

25 TUI GROUP | Capital Markets Update | 13 May 2015 Growth in Accommodation will be key in driving Tourism revenue and margin growth

Accommodation • Growth in our strong Marketing hotel and club brands Integrated • Growth in our powerful & & Sales exclusive international platforms hotel concepts • Profitable growth in cruises

Integrated Inbound management Flight Service

26 TUI GROUP | Capital Markets Update | 13 May 2015 Growth in Our Strong Hotel and Club Brands Hotels Clubs

Brand Continue to grow the Expand & internationalise Strategy highly profitable brand the club product Other Our new brand : Nth Africa Nth Africa New hotels plus Other Footprint Med Med (30/9/14) repositioning of Med some existing Nth Africa brands Distribution ~50% through TUI >75% through TUI 95% through TUI

Targeting ~60 new hotels by 2018/19

27 TUI GROUP | Capital Markets Update | 13 May 2015 Growth Roadmap – Hotel & Club Brands Hotels Clubs

Operational trial 4 new hotels 1 new club (Aruba, Mauritius, Europe) Summer 2015 (Tunisia) 2014/15 (Iberotel Sarigerme) Growth through 3 new hotels 1 new hotel 2 new clubs internationalisation of (Italy, Oct 16) (Maldives, Greece) 2015/16 (US & Mexico) concept through source 12 under negotiation 10 under negotiation markets and increased direct distribution • Expansion to new • New hotels focussed on • International expansion globally Growth destinations, particularly differentiation and quality • Increased source market long-haul • Repositioning of a distribution levers • Portfolio optimisation and further c.15 existing hotels • Increased direct distribution facility refurbishment (in addition to new hotels) globally

Targeting ~60 new hotels by 2018/19

28 TUI GROUP | Capital Markets Update | 13 May 2015 Growth in Hotels - Riu & TUI Blue

• Joint venture between TUI Group and Riu family

• TUI Group’s largest hotel brand

• Characterised by excellent service, location and quality 103 New hotels focussed

on differentiation Repositioning of hotels • ~60% all-inclusive and quality – some existing

premium all-inclusive underperforming • 4 new hotel openings in 2014/15 85% hotel brands to

Operational trial: deliver turnaround occupancy • Growth levers – expansion to new Summer 15 destinations, portfolio optimisation 17% ROIC and facility refurbishment (excl. goodwill)

Figures shown are based on 2013/14; ROIC is for hotels only i.e. excludes source markets’ margin

29 TUI GROUP | Capital Markets Update | 13 May 2015 Growth in Clubs - Robinson & Magic Life

• Professional offering of sport, entertainment and programmed events • Family friendly holiday villages, varied sport and international • Portfolio has already undergone entertainment programmes restructuring, resulting in 23 significant improvement in ROIC in 11 • Integration with source markets clubs 2013/14 clubs has led to significant increase in occupancy 74% • New club opened in 2014/15 • Growth levers – occupancy • Growth levers – increased source 85% internationalisation of concept market distribution, increased occupancy through source markets, increased >10% ROIC direct distribution globally, direct distribution globally international expansion

Figures shown are based on 2013/14; ROIC is for hotels only i.e. excludes source markets’ margin

30 TUI GROUP | Capital Markets Update | 13 May 2015 Growth in our Powerful & Exclusive International Hotel Concepts

• Differentiates our local market offering

Luxurious (5* only) family- Upscale modern family resorts Adult-only 4&5* seafront • Earlier bookings friendly hotels, exceptional (4* and above) first class hotels ; contemporary styling wellness facilities and world- wellness experience; activities class entertainment and spa facilities for different generations • Superior margins

11 hotels 56 hotels 40 hotels NPS >70 NPS ~60 NPS >50 • Superior NPS

International hotel concepts designed for specific customer segments - enhanced occupancy management and reduced risk

# hotels currently planned for Summer 2016; NPS scores are for Summer 2014

31 TUI GROUP | Capital Markets Update | 13 May 2015 Profitable Growth in Cruise

Brand Fleet Structure Customer Proposition

4 JV with Royal Premium all-inclusive, (+4 on order) Caribbean German-speaking

5 Part of Northern Region Wide range of great value cruises

4 Subsidiary Luxury & expedition cruising

Cruise company management to become more integrated over time

Fleet includes Mein Schiff 4 (delivers June 2015)

32 TUI GROUP | Capital Markets Update | 13 May 2015 TUI Cruises – Fleet expansion

100% View 13/14 12/13 % • German-speaking cruise market has been growing by over 10% per annum Turnover 382 315 +21 • Strong competitive advantage in having secured additional Underlying EBITA 77 49 +57 capacity EBITA-Margin 20% 16% • New ships financed 80% debt / 20% equity EAT 63 35 +80 • Favourable financing rates available from local governments o/w TUI EAT (50%) 31 17 and shipyards • Growth is de-risked through opportunities to redeploy MS1 ROIC 10% 8% and 2 to Thomson ROE 14% 10% • Each new ship delivers c€50m EAT (100%)

Fleet development 8 6 7 4 5 Ships* 2 3

Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 2 firm options for new-builds 3,836 berth 6,342 berth 8,848 berth 11,354 berth 13,860 berth

33 TUI GROUP | Capital Markets Update | 13 May 2015 Thomson Cruises – Fleet modernisation

Fleet development • Small, but significant market share in the Lease expiry UK with access to Thomson’s distribution Celebration 2018 network

Dream 2020 • Fleet modernisation is required to maintain market share: Island Escape Being replaced by Splendour • Acquisition of Splendour announced Majesty 2017 for Q2 calendar 2016 Spirit 2017 • Opportunity to re-fleet two further # berth ships with MS1 and 2 0 500 1000 1500 2000 • Intend to move closer to the TUI Finance lease Owned Operating lease Cruises model

34 TUI GROUP | Capital Markets Update | 13 May 2015 Hapag-Lloyd Kreuzfahrten – Repositioning & turnaround

• Successful repositioning of the brand completed

• Top ratings for customer satisfaction and recommendations for all ships

• Europa and Europa 2 have 5* plus ratings in Berlitz Cruise Guide

• Hanseatic is the only 5* expedition on the market

• Journey to turnaround on track – underlying business to break-even this year

• Acquisition of Europa 2 adds c. €20m to underlying EBITA on an annualised basis (c. €14m in 2014/15)

35 TUI GROUP | Capital Markets Update | 13 May 2015 The World’s Leading Tourism Business

Accommodation Marketing >7m customers Integrated & Sales platforms >20m customers

Integrated Inbound management Flight Service 13m customers 11m customers

36 TUI GROUP | Capital Markets Update | 13 May 2015 Integrated Platforms - Focus on Customer Experience

Central Mobility Platform Central Customer Platform

• Increasingly mobile first • SAP solution: • Key driver of customer engagement at every stage • Single view of the customer of the journey • Contact management • Over 1 million downloads to date • Customer service support • Top-line and margin improvement

Central Online Platform Central eCRM

• Enhancing the online customer experience • IBM strategic marketing platform: • Driving higher conversion rates in source markets • Multi-channel, personalised marketing • Include hotel platforms in scope • In depth view of marketing effectiveness • Data warehouse / analytics

37 TUI GROUP | Capital Markets Update | 13 May 2015

A strong management team with experienced commercial leaders

Friedrich David Peter Long Horst Baier Sebastian Ebel Will Waggott

Joussen Burling Board

Executive Executive • Central Region • Northern • Specialist Group • Hotels & Resorts Region • Hotelbeds Group Joint CEO Joint CEO CFO • Cruise • Hotel • LateRooms • Inbound Services concepts Group • IT & Central • Aviation

Elie Thomas Erik Kenton Dr. Hilka Bruyninckx Ellerbeck Friemuth Jarvis Schneider

Group Director Group Director Group Director Group Chief Western Region Corporate & Controlling and Legal, Compliance Marketing Officer External Affairs FD Tourism & Board Office A shared commitment to achieve top-line growth >3% and at least 10% underlying EBITA CAGR over the next three years*

* Growth over three years from 2014/15, at constant currency rates Structure effective 1 June 2015 38 TUI GROUP | Capital Markets Update | 13 May 2015 Deliver Tourism Growth: Conquering Destinations - Long-haul case study Peter Long

39 TUI GROUP | Capital Markets Update | 13 May 2015 Conquering Destinations

Our business model enables us to Growing our presence conquer destinations in relevant destinations

Customers

Flights

New hotels & ships

Inbound service

40 TUI GROUP | Capital Markets Update | 13 May 2015

Conquering Destinations - Our long-haul presence Over 1m customers Over 40 group hotels Range of cruise routes 13 x 787s (S15) (source markets, accommodated)

USA Caribbean

Mexico & Middle East Asia & C.America

Indian Ocean Australia

Significant and growing long-haul presence

Figures correct for 2013/14 unless otherwise noted 41 TUI GROUP | Capital Markets Update | 13 May 2015 Why long-haul growth?

Commercial Advantages Leveraging our Scale & Platforms

• Broadens our customer offering • Strong, international brands mean we can grow in underpenetrated/new destinations • Broadens our customer base outside Europe • Growing 787 fleet gives improved customer experience & greater operational efficiency

• Longer seasons = enhanced occupancy • Group hotel and cruise strength mean we can build a leadership position

Our content and 787 fleet enable us to build a leadership position

42 TUI GROUP | Capital Markets Update | 13 May 2015 Conquering Destinations - UK : Caribbean case study

UK has grown customer volumes Growth is driven by Group hotels, JV significantly in recent years partners & expansion of hotel concepts UK customers (000) % flown on own 787 520 • Strong presence throughout the Caribbean 428 466 • Access to exclusive product 88% 41% • Sunwing (Canada JV) partner Strong presence throughout the Caribbean 0% • with plans to expand (new Jamaica opening 2011/12 2012/13 2013/14 W16)

• Currently in Jamaica and Mexico Strong competitive Thomson Thomas Airways Cook • Opening planned in Dominican Republic (S16, position in the Karisma JV) Caribbean thanks to our hotel content & further S15 UK-Caribbean flight capacity • Strong presence throughout the Caribbean strengthened by our Virgin • Opening planned for Dominican Republic recent 787-9 order (S16, Riu) 43 TUI GROUP | Capital Markets Update | 13 May 2015 Conquering Destinations - Long-haul growth opportunities

>50% growth in source market customers over the next 5 years New concept openings Caribbean More flights – from 13 x 787s to 17* Indian Ocean New hotels Cruise growth Thailand Expanding our inbound services

Our integrated business model is enabling further long-haul growth

* Includes 1 option on 787-9

44 TUI GROUP | Capital Markets Update | 13 May 2015 Maximise Growth and Value of our other businesses Peter Long

45 TUI GROUP | Capital Markets Update | 13 May 2015 Maximise Growth and Value of our other businesses

• Optimise strategic future through standalone operation Hotelbeds • Run as independent business Group • Inbound Services being integrated into Tourism • Evaluating our options

Specialist • Portfolio of businesses Group • Run independently and managed for value LateRooms • Held for sale Group • Held for sale • CSAV merger complete, expect to deliver significant synergies and business expected to Hapag Lloyd AG return to profitability in 2015 • Our shareholding is now <15% and we continue to hold the business for sale • Agreed upon IPO with other shareholders

46 TUI GROUP | Capital Markets Update | 13 May 2015 Hotelbeds Group - Market Leader

Products Availability and price Platform Book online Customers

c.70k hotels >31k B2B customers

Source markets Travel Agencies OTAs Airlines Other

• #1 global market position – business grown organically • Continuing to outperform the market – delivering >20% TTV/CAGR growth • 2013/14: Over €2 billion TTV, 22.5 million roomnights • Non-committed, scalable business model

47 TUI GROUP | Capital Markets Update | 13 May 2015 Growth continues to be driven by geographic expansion

Asia Pacific Americas Europe Africa 3% Data shown on source market basis 1%

7% 13%

1%

24% 62%

89%

2008 TTV split 2014 TTV split

48 TUI GROUP | Capital Markets Update | 13 May 2015 Hotelbeds Group - Growth Strategy

Deepen our global • Continue expansion in Asia and Africa footprint • Bedsonline expansion plan (focussing on travel agents)

Invest in innovative & • Enhance existing technology to deliver business growth scalable technology • Implement cutting-edge innovative technology

• Scalability & efficiency programme focusing on shared service centres Lean business model • Scalable & lean processes through “end-to-end” reengineering & demand management

• Increase sales in origin (e.g. through bedbank) and destination Transfer & Activity growth • Expand product offering

New ventures • E.g. Roiback, Easyjet Holidays

Targeting 15-20% CAGR in underlying EBITA

49 TUI GROUP | Capital Markets Update | 13 May 2015 Deliver Merger Synergies Horst Baier

50 TUI GROUP | Capital Markets Update | 13 May 2015 Merger Synergies

1 2 Corporate Cash tax streamlining benefits

Uplifted by €5m to €50m* Significant 7% point reduction in ETR** synergy 3 potential 4 Increased occupancy from Inbound Services vertical integration cost savings

Each 1% point increase equivalent to €6m EBITA* At least €20m*

* Synergy amounts relate to underlying EBITA ** Underlying effective tax rate

51 TUI GROUP | Capital Markets Update | 13 May 2015 1) Corporate Streamlining

• New organisational structure established In €m Incremental One-off (Group Exco plus direct reports) underlying EBITA P&L cost impact • Synergy targets agreed with new Group 2014/15 - c.20 functional heads 2015/16 c.20 c.15

• Focus on removal of duplication (FTEs) and 2016/17 c.30 - reduction in professional & consultancy fees Total 50 35

• Minimal risk to achievement 2.7 45 45 Uplift +5 +10 • Cost savings increased by €5m

• One-off costs reduced by €10m

52 TUI GROUP | Capital Markets Update | 13 May 2015 2) Cash Tax Benefits • Profit & loss transfer agreement between TUI AG and Leibniz-Service GmbH approved by TUI AG shareholders in February 2015

• This enabled immediate corporate restructuring for tax purposes

• No restructuring or one-off costs in relation to achieving this synergy

• Underlying effective tax rate expected to reduce by around 7% points

• Pro forma cash tax impact €35m (based on 2013/14 earnings)

53 TUI GROUP | Capital Markets Update | 13 May 2015 3) Occupancy Improvement

• Joint management of occupancy by source In €m Incremental underlying markets and Group hotels EBITA impact 2014/15 c.6 • Source market targets set 2015/16 c.12 • Occupancy expected to improve by 5% 2016/17 c.12 points by 2016/17 as a result of integration Total 30

Implied occupancy +5% points • No restructuring or one-off costs to achieve improvement this synergy

• Minimal risk to achievement (cf Magic Life acquisition by TUI Travel)

54 TUI GROUP | Capital Markets Update | 13 May 2015 4) Inbound Services

• Detailed organisation work undertaken and In €m Incremental One-off plans agreed for key areas affected underlying EBITA cost • IT; Finance, Tax & Legal; People & impact (SDI, tax, capex) organisation; Commercial & Operations 2014/15 - c.35

• Legal entity/IT separation from Hotelbeds 2015/16 c.5 c.30 Group to commence start of financial year 2016/17 c.15 c.4 2015/16 Total 20 69 • Minimal risk to achievement – cost savings target already de-risked 2.7 20 76 Uplift - +7 • Cost savings of €20m confirmed

• One-off costs to achieve cost savings reduced by €7m

55 TUI GROUP | Capital Markets Update | 13 May 2015 Merger synergies – Targets

Synergy Segment Incremental underlying EBITA benefit One-off costs to achieve Affected Approximate phasing in €m in €m 14/15 15/16 16/17 Total Restr. Tax Capex Total Corporate Central - 20 30 50 35 - - 35 streamlining Occupancy Hotels 6 12 12 30 - - - - improvement Tourism / Inbound Services - 5 15 20 43 11 15 69 Hotelbeds TOTAL 6 37 57 100 78 11 15 104

Plus – underlying effective tax rate to reduce to 24%

56 TUI GROUP | Capital Markets Update | 13 May 2015 Growth Roadmap Horst Baier

57 TUI GROUP | Capital Markets Update | 13 May 2015 2013/14 - A strong set of results (Underlying EBITA)

Pro forma figures €m FY2012/13 FY 2013/14 Main drivers Northern Region 402.7 398.3 • Growth from online and direct distribution Central Region 152.7 163.0 • Growth of unique & differentiated products Western Region 23.2 81.7 • Continued improvement in operational efficiency Hotels & Resorts 198.1 202.8 • oneTUI programme - business excellence and Cruises -14.0 9.7 growth strategy / focus on core brands • Optimising occupancy and alignment Other Tourism -8.8 -22.3 Tourism 753.9 833.2 • Growth of TUI Cruises to three ships • Turnaround of Hapag-Lloyd Kreuzfahrten initiated Hotelbeds Group 94.8 101.8 Specialist & Activity 44.3 45.5 • Scale business model All Other Segments -128.6 -110.5 TUI Group continuing 764.4 870.0 +14% - We outperformed against our The LateRooms Group is classed as discontinued operations profit guidance

58 TUI GROUP | Capital Markets Update | 13 May 2015 Growth Roadmap - Growth Levers What we want to achieve Profitable top-line growth & further efficiency enhancements in source markets Continue strategy of capacity growth in hotels & cruises We expect to deliver at least 10% underlying EBITA CAGR over the next Maximise growth & value of three years* other businesses

Deliver merger synergies Focus on balance sheet simplicity, flexibility and strong free cash flow generation

59 TUI GROUP | Capital Markets Update | 13 May 2015 * Growth over three years from 2014/15, at constant currency rates Growth Roadmap - Growth Levers What we want to achieve Growth Roadmap Profitable top-line growth & Profitable top-line growth which further efficiency enhancements Source Markets outperforms the market (>3%) in source markets One Aviation (€50m) Continue strategy of >60 new hotels @ €1.4m EBITA* capacity growth in Hotels & Cruises 4 new ships @ €25m EAT per hotels & cruises ship (50% share)

Maximise growth & value of Hotelbeds Group 15%-20% EBITA CAGR other businesses Specialist Group EBITA CAGR in line with Tourism Corporate streamlining Deliver merger synergies Occupancy improvement €100m by 2016/17 Inbound Services Focus on balance sheet P&L, Balance Sheet, Rigorous focus on SDIs , interest and simplicity, flexibility and strong capex management free cash flow generation Cash flow 60 TUI GROUP | Capital Markets Update | 13 May 2015 * Hotel margin only Growth Roadmap - KPIs

Source Markets Hotels Cruises

Details for operational KPIs will be provided per major market and brand including a 100% view on the major Joint Ventures

61 TUI GROUP | Capital Markets Update | 13 May 2015 Pro forma underlying EPS 2013/14 867 -232 In €m Pro forma 635 Underlying EBITA 870 Restated; LateRooms treated as discontinued Net interest expense -225 31% Convertible bond expense 108 -197 Adjusted interest expense -117 - Underlying PBT 753 Pre-merger effective tax rate Underlying ETR 29.4% Tax charge -221 Minority interest excluding Minority interest -72 TUI Travel Hybrid dividend -24 Net income 436 Number of shares following bond Number of shares 587 conversions Pro forma EPS 0.74

Pro forma calculation only – calculation for Annual Report will reflect actual figures 62 TUI GROUP | Capital Markets Update | 13 May 2015 Focus on balance sheet strength and free cash flow generation

• Strict focus on SDI management • Optimised financing structure leads to lower interest level on a like-for-like basis • Asset-right strategy gives a balance of risk and returns • Capex reflects our growth plans • Focus on strong balance sheet and rating improvement • Continue our progressive dividend policy

We are committed to delivering material value to our shareholders

63 TUI GROUP | Capital Markets Update | 13 May 2015 Separately Disclosed Items Guidance

~€220m • Strict focus on SDI management

• Purchase price allocation stable at ~€75m per annum €95m ~€100m 21 • SDI guidance does not include M&A transactions or 74 significant new restructuring projects

2013/14 2014/15e 2015/16e long-term

Merger related Non-merger Non-cash PPA Constant currency basis 64 TUI GROUP | Capital Markets Update | 13 May 2015 Interest Guidance • Lower 2015/16e P&L interest €229m ~€200m driven by removal of four convertible bonds, partially offset ~€180m by expected increase in asset €115m financing costs (aircraft, hotels, cruise ships)

• Hybrid finance charge reduced to nil from 2015/16 (not included €114m in interest)

• Long-term financing charge likely to reflect financing requirements 2013/14 2014/15e 2015/16e for aircraft and growth in hotels

Cash Non-cash Constant currency basis 65 TUI GROUP | Capital Markets Update | 13 May 2015 Strong balance sheet for future growth

Balance sheet needs to Asset financing consists Focus on rating to cover cash flow of on/off balance sheet obtain optimal financing seasonality of the liabilities (aircraft, conditions Tourism Business hotels, cruise ships)

TUI Group has the right balance sheet structure for growth

66 TUI GROUP | Capital Markets Update | 13 May 2015 Balance sheet reflects seasonality requirements of Tourism business

June 14 Sep 14 €m Dec 14 Mar 15 Restated Restated Cash and cash equivalents 1,915 2,258 1,094 1,045 Other current assets 2,908 2,757 3,110 3,713 Non-current assets 8,922 8,992 8,921 10,187 Total assets 13,745 14,007 13,125 14,945

Equity 1,396 2,530 1,838 1,836 Financial liabilities 2,240 1,966 2,726 2,739 Pension provisions 1,274 1,275 1,338 1,430 Other liabilities 8,835 8,236 7,223 8,940 Total equity & liabilities 13,745 14,007 13,125 14,945

Net financial position (325) 293 (1,632) (1,694) • Net financial position at end of September does not reflect our seasonal Winter financing requirement of ~€1.5bn-€2bn (i.e. the swing from September to December net financial position) • Seasonal swing mainly reflects requirements of the Tourism business: • Large volume of cash in from customers during Summer months • Significant cash outflow to hotel suppliers post September • September 2014 financial position included €180m restricted cash

67 TUI GROUP | Capital Markets Update | 13 May 2015 Asset financing consists of on and off balance sheet liabilities

June 14 Sep 14 €m Dec 14 Mar 15 Restated Restated Cash and cash equivalents 1,915 2,258 1,094 1,045

Convertible bonds 1,270 822 789 12 High yield bond - 292 293 293 Bank liabilities 387 261 953 1,139 Finance leases 476 501 598 898 Other financial liabilities 107 89 93 397

Net financial position (325) 293 (1,632) (1,694)

NPV operating leases 3,627 3,821 3,920 4,041

• All convertible bonds have almost fully converted to equity • High yield bond introduced as part of the merger • Repayment of hybrid bond (treated as debt at Mar 15, equity prior to that in accordance with IFRS) in April 2015 will result in ~€300m cash out (H2) • Increase in finance leases mainly aircraft related • Increase in operating lease commitments mainly due to commissioning of aircraft and extension of contracts for hotels and cruise ships • We will continue to finance our aircraft, hotels and cruise ships through a mixture of on and off balance sheet instruments

68 TUI GROUP | Capital Markets Update | 13 May 2015 Focus on rating to obtain optimal financing conditions

• TUI‘s rating has increased, especially during the course of the merger in Autumn 2014:

2009/10 2010/11 2011/12 2012/13 2013/14 Mar 2015 Outlook Standard & Poor's B- B- B- B B+ BB- stable Moody's Caa1 Caa1 B3 B3 B2 Ba3 stable • Although the outlook is stable, there is upside potential:

69 TUI GROUP | Capital Markets Update | 13 May 2015 Financial policy

TUI is committed to improve its credit metrics following the delivery of merger We will set financial targets in the region of synergies and the implementation of its an Intermediate Financial Risk Profile growth roadmap

Financial policy of the combined Group

70 TUI GROUP | Capital Markets Update | 13 May 2015 We operate an asset-right strategy 310 hotels 13 cruise ships 136 aircraft

Owned Finance Franchised lease Leased 6% Large proportion Advantageous 10% Opg. 38% of hotels are financing available Owned lease Owned managed, which is for new build ships Operating Managed 46% lower risk Fin. lease lease

• We manage a portfolio of 100% • TUI Cruises JV provides ring-fence • Having our own fleet gives us owned and JV companies for financing arrangementsJV guaranteed capacity and flexibility in • JVs enable us to develop with the Sub where we fly to right partner and share investment • Leasing aircraft allows flexibility in fleet planning Growth in properties expected to follow Data correct as at 30 September 2014similar ownership model to existing portfolio Figures correct as at 30 September 2014, plus MS4 (launched June 2015) 71 TUI GROUP | Capital Markets Update | 13 May 2015 Flexible Asset Ownership Model Highest level of investment Level of control required Owned 38% Leased 10%

Managed 46%

Franchised 6% Minimal investment required EBITA returns EBITA returns illustrative only Hotels figures correct as at 30 September 2014, 72 TUI GROUP | Capital Markets Update | 13 May 2015 Capex strategy reflects growth plans

• Higher 2014/15e capex driven by growth ~€800m capex for hotels and Europa 2 ~€750m • Capex strategy reflects growth plans: €636m • Source Markets Customer platform (SAP solution), All other strategic marketing platform / eCRM (IBM) • Hotels Growth of core brands (asset right model, assumes Hotels current mix of ~50% managed, targeting 15% ROIC Cruises for new hotels) PDPs • Pre delivery payments for new aircraft with corresponding disposal proceeds when financed

2013/14 2014/15e 2015/16e Long term gross capex guidance equivalent to ~3% of turnover (excluding aircraft pre delivery payments) Constant currency basis 73 TUI GROUP | Capital Markets Update | 13 May 2015 Progressive dividend policy Indicative Dividend Growth

70 Based on growth in underlying EBITA • 2014/15 dividend will be 65 based off 44.5 cents 60 Additional 10% 55 • Dividend in respect of 50 44.5 cents 2014/15 and 2015/16 will 45 40 33 cents grow in line with growth in 35 underlying EBITA at 30 constant currency 25 20 2013/14 TUI AG 2013/14 TUI Travel 2014/15 indicative 2015/16 indicative • Additional 10% in 2014/15 and 2015/16 TUI Travel dividend 2013/14 (excl additional 10p) 14.55p Converted at €0.82 17.76c

At exchange ratio 0.399 44.5c

74 TUI GROUP | Capital Markets Update | 13 May 2015 Closing Remarks Peter Long

75 TUI GROUP | Capital Markets Update | 13 May 2015 TUI Group – A Compelling Investment Case

Deliver Tourism Growth Integrated Marketing & Inbound platforms Unparalleled Flight Accommodation Sales Service Integrated management customer proposition Maximise Growth & Value of our other businesses Increased Deliver Merger Synergies shareholder Balance sheet strength, flexibility and returns strong free cash flow generation

76 TUI GROUP | Capital Markets Update | 13 May 2015 Taking TUI to the Next Level – the World’s Leading Tourism Business

• Merger integration ahead of our original plan - we are working well together • New organisation structure in place - a flatter, more agile structure • Strong and sustainable business model with exciting growth prospects • Profitable top-line growth >3% • 10-15% EBITA growth this year • At least 10% CAGR over the next three years • Committed to progressive dividend growth Well positioned to deliver underlying EBITA CAGR of at least 10% over the next three years

77 TUI GROUP | Capital Markets Update | 13 May 2015 Q&A

TUI GROUP | Capital Markets Update | 13 May 2015