Annual Report 2012/13 1 October 2012 – 30 September 2013 Aktiengesellschaft TUI GROUp – FINANCIAL HIGHLIGHTS € million 2012/13 2011/12 Var. % Turnover TUI Travel 17,796.0 17,681.5 + 0.6 TUI Hotels & Resorts 403.1 384.7 + 4.8 Cruises 261.0 231.0 + 13.0 Group 18,477.5 18,330.3 + 0.8 EBITDA TUI Travel 844.5 745.1 + 13.3 TUI Hotels & Resorts 254.8 245.1 + 4.0 Cruises - 19.1 11.0 n/a Group 1,010.6 924.1 + 9.4 Underlying EBITDA TUI Travel 888.3 833.9 + 6.5 TUI Hotels & Resorts 265.1 246.2 + 7.7 Cruises - 2.6 13.2 n/a Group 1,090.9 1,023.4 + 6.6 EBITA TUI Travel 532.8 441.0 + 20.8 TUI Hotels & Resorts 170.6 177.5 - 3.9 Cruises - 30.4 0.8 n/a Group 594.8 538.8 + 10.4 Underlying EBITA TUI Travel 640.5 637.4 + 0.5 TUI Hotels & Resorts 197.2 178.6 + 10.4 Cruises - 13.9 3.0 n/a Group 761.9 745.7 + 2.2 Group earnings Net profit for the year 186.5 141.9 + 31.4 Earnings per share € - 0.08 - 0.16 + 50.0 Assets Non-current assets 8,645.8 8,668.2 - 0.3 Current assets 4,808.5 4,544.4 + 5.8 Total assets 13,454.3 13,212.6 + 1.8 Equity and liabilities Equity 2,029.4 2,067.1 - 1.8 Non-current liabilities 3,824.8 3,772.7 + 1.4 Current liabilities 7,600.1 7,372.8 + 3.1 Total equity and liabilities 13,454.3 13,212.6 + 1.8 Key ratios EBITDA margin (underlying) % 5.9 5.6 + 0.3* EBITA margin (underlying) % 4.1 4.1 + 0.1* ROIC % 17.14 15.98 1.16* Equity ratio % 15.1 15.6 - 0.6* Cash flow from operating activities 875.3 841.5 + 4.0 Capital expenditure 820.8 643.2 + 27.6 Net debt 30.9. 67.9 178.2 - 61.9 Employees 30.9. 74,445 73,812 + 0.9 Differences may occur due to rounding * percentage points CONTENTS »I am aiming for a TUI which creates value and is in a position to pay divi- dends on a lasting basis. Discipline and a clear focus are critical success factors for re organising and restructuring the Group. We will deliver on our promises.« Friedrich Joussen, CEO of TUI AG, see Interview on page 04 04 147 CHANGING CONSOLidated COURSE FINANCIAL STATEMENTS 23 154 TO OUR NOTES SHAREHOLDERS 45 MANageMENT REPOrt* * Combined Management Report of TUI AG and of the TUI Group An online version (HTML) of this report is available at For further information, annualreport2012-13.tui-group.com. follow these pictograms: It offers PDF downloads of single chapters and all tables in Excel format. Web link Cross-reference within the report 2 TUI AG Annual Report 2012/13 TUI AG Annual Report 2012/13 3 E S UR CO G N GI CHANGING COURSE N CHA 04 Interview with Friedrich Joussen 06 TUI Management Board 08 Portrait Mathias Kiep 4 C hanging course Interview with Friedrich Joussen TUI AG Annual Report 2012/13 Friedrich Joussen CEO of TUI AG Chairman of TUI Travel PLC INTERVIEW FRIEDRICH JOUSSEN »oneTUI« – clear aims, a clear course. Increasing value and restoring the ability to pay dividends – those are the benchmarks by which we have set the TUI course. In 2012/13 financial year we are already a great deal closer to achieving the aims we set for 2014/15: with this Annual Report we want to inform you about the course we are pursuing and take you on a journey to the TUI of the future. The basis for all of this is the strategic programme »one TUI«. Under the umbrella of »one TUI« the Group has now moved significantly closer together in terms of its struc- ture. The benefits of vertical integration, the realignment within individual business areas and the cost-cutting measures are clearly working. My primary aim was to create greater transparency in order to show shareholders and employees where TUI is currently at, where our opportunities lie, and where we have to work together to eliminate risks. After just 100 days, I announced that this financial year would be a year of transition. It is also a year in which we will leave no stone unturned and then have special effects as a result of write-downs. This approach is necessary. We are now making a clean sweep and will then turn our focus to the future. As a result of the work that has been done in recent months, however, we are already in a position to propose to the Annual General Meeting a dividend of €0.15 per share – a result which we at TUI can look at with a certain amount of pleasure and also a little pride. Moreover, it is a result which could only have been achieved in a team with a large number of committed employees in all divisions of the TUI Group and its companies. My thanks also go to the representatives on the works councils who remained constructive throughout the process. The first dividend since 2008 is a start. My aim is to pursue an ongoing dividend policy to prove that TUI is an outstanding investment for our shareholders. A fantastic brand and highly motivated employees, who work for TUI and our guests with a high degree of professionalism, passion and commitment, will also form the basis of our success in the future. I wish to thank our shareholders for their confidence and also their loyalty. The aim of the entire management team is to guide this change of course to success over the long term. I am confident that we will achieve the goals we have set ourselves. Friedrich Joussen T ARGET T ARGET 1 2 FOCUS ON customer ExPERIENCE INCREASE OF capital EFFICIENCy REALisation OF stratEGIC AND REstructuring OF UNDER- LEADERSHIP THROUGH stronger PERFORMNG hotel AND CRUISE VErticaL INTEgration PROJECTS T ARGET T ARGET 3 4 LEAN corporate CENTER INCREASE IN cash FLOW TO TUI AG, Friedrich JoussenAND L OWER INTEREst costs IMPLEMENTATION OF strict Vorstandsvorsitzenden der TUI AG FINANCIAL DISCIPLINE/performance MANAGEMENT IN THE group INTERVIEW FRIEDRICH JOUSSEN Mr Joussen, you have now been at TUI for over a year 100 million euros cash and one billion euros EBITA on and have been CEO since February 2013. Since March the balance sheet in 2015, thereby winning back the you have also been chairman of the subsidiary TUI Travel confidence of the investors. We deliver on our promises in London. How do you personally assess the situation at – that is what TUI should stand for under my leadership. present? To observers, the company appears to be considerably FJ: I am really pleased with the current position of TUI. more transparent these days. Is that an accurate and We have a fantastic brand and a leading position in all of desired impression? our markets. In recent years the Group has performed very solidly, largely driven by my finance colleague Horst FJ: yes, because when communicating with financial Baier. That is why our Company now posts a debt-free markets and the general public, we have to call a spade balance-sheet. In addition, everyone is beginning to see a spade. Only by doing so are we trustworthy and able that the »oneTUI« programme launched by us in the to attract new investors. Talking openly about things is in early summer is working: the Group head office has been my nature. It makes a good many things easier, not least streamlined, the sponsorship contracts have been can- for the employees and all forms of collaboration within celled, consultancy costs have dropped considerably and the company. the company jet has been sold. We have evaluated every hotel – parting company with some and repositioning Is it also in your nature to work well in a team? others – and established an efficient hotel portfolio management system. In terms of cruises, the picture is FJ: (laughs) I am certainly keen to ensure that there is still divided down the middle: TUI Cruises is currently no one-man show here at TUI. I see myself as a manager performing better than the previous year; at Hapag- in the role of a trainer – to draw a comparison with the Lloyd we are in the process of offsetting losses. Due to world of sport. We all know that it is the team that ulti- the advance booking times, that won’t happen overnight, mately has to secure the win on the field. With our newly but we are also on the right course here: the quality is appointed TUI Management Board we have put together excellent. The Europa 2 was immediately named best an expert team capable of implementing the necessary cruise ship in the world; the Europa is not far behind. changes in a forceful yet prudent manner. With Horst That is a resounding success. The turnaround at Hapag- Baier as CFO and Susanne Kohrs, who is responsible for Lloyd Cruises is being guided by new management. I personnel, we have leaders on the Management Board am very happy with developments and am able to say with a great deal of TUI experience. In addition, I have that current booking figures reveal a significant upward filled key positions in the company with new managers. trend. I am especially delighted that the essential aims These include Sebastian Ebel as Chief Operating Officer for TUI Travel which I agreed with Peter Long are being and Thomas Ellerbeck, who, as Head of Communication, achieved.