Tui Ag · XETR:TUI1
Tui — Q1 2016/17 Earnings Presentation
37 slides from Tui's earnings presentation, Feb 14, 2017
Slide 1: 2016/17 Q1 Results
2016/17 Q1 Results Moraine Lake, Banff National Park, Canada
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains a number of statements related to the future development of TUI. These statements are based both on assumptions and estimates. Although we are convinced that these future-related statements are realistic, we cannot guarantee them, for our assumpt
Slide 3: Opening Remarks
Opening Remarks • Good operational performance in Q1 as we continue to deliver our growth strategy • Further significant strategic progress made with the agreement to sell Travelopia for an agreed enterprise value of £325m/€381m1 or 14.4x 2015/16 underlying EBITA • Current trading remains in line wi
Slide 4: Agenda
Agenda 1 Performance Review & Current Trading Fritz Joussen 2 Financial Performance & Outlook Horst Baier 3 Summary Fritz Joussen 4 Q&A 4 TUI GROUP | Q1 2016/17 Results | 14 February 2017
Slide 5: Good performance in Q1 2016/17
Good performance in Q1 2016/17 Turnover: €3.3bn • Good operational performance with 1 +2.3% / +8.5% continued growth in our hotel, cruise and concept brands Underlying EBITA: -€60.3m • Reduction in seasonal underlying EBITA 1 +25.0% / +17.0% loss • Further merger synergies of €5m achieved in the qua
Slide 6: TUI Group Underlying EBITA Bridge Q1 2016/17
TUI Group Underlying EBITA Bridge Q1 2016/17 in €m UK -€5m Nordic -€2m Germany -€2m Northern -€9m Benelux -€3m Hotels -€2m Specialist -€1m Other +€1m -60 -67 -80 5 1 -102 -22 Corporate streamlining €5m 7 29 improvements €4m Occupancy Ongoing benefit from consolidation of 22 overlapping functions. Se
Slide 7: Source Markets
Source Markets Turnover and Earnings (€m) Bridge Underlying EBITA (€m) Q1 16/17 Q1 15/16 % -90 -126 -120 Turnover 2,892.0 2,845.6 1.6 10 -26 -20 Underlying EBITA -120.3 -90.3 -33.2 6 Q1 15/16 Northern Central Western Q1 16/17 FX Q1 16/17 Continuing Region Region Region Continuing translation Continu
Slide 8: TUI Rebrand Belgium & Nordics – Update
TUI Rebrand Belgium & Nordics – Update Brand Awareness - Belgium Source: Futures 19 Oct 2016 TUI launch 100% 80% 52% Unaided TUI • Post the TUI rebrand 60% 48% 32% 44% 40% 37% 36% 42% both markets are 40% 14% 23% Unaided seeing higher unaided 20% 12% Jetair 6% TUI brand awareness 0% Week 33 35 37 39
Slide 9: Hotels & Resorts
Hotels & Resorts Turnover and Earnings (€m) Bridge Underlying EBITA (€m) 4 Flat Q1 16/17 Q1 15/16 % Flat 20 Turnover 141.2 132.4 6.6 49 49 Underlying EBITA 49.0 25.2 94.4 25 o/w Equity result 14.8 8.1 82.7 Q1 15/16 Riu Robinson Other Q1 16/17 FX Q1 16/17 Continuing Continuing Continuing Ops Ops Pre
Slide 10: Winter 2016/17 Group Hotel additions and repositionings
Winter 2016/17 Group Hotel additions and repositionings Hotels Riu Reggae TUI Blue Fleesensee TUI Blue Jardin Tropical TUI Blue Schladming • TUI Blue • TUI Blue • Riu Reggae • TUI Blue Fleesensee Jardin Tropical Jamaica Schladming Germany Tenerife Austria • 454 rooms • 156 rooms • 107 rooms • 390 ro
Slide 11: Cruises
Cruises Turnover and Earnings (€m) Bridge Underlying EBITA (€m) Q1 16/17 Q1 15/16 % 7 Turnover HL Cruises 62.2 53.9 15.4 4 19 Memo: TUI CruisesTurnover 217.7 175.8 23.8 Underlying EBITA 19.1 8.2 132.9 8 o/w EAT TUI Cruises* 16.9 13.2 28.0 Q1 15/16 TUI Cruises HL Cruises Q1 16/17 Continuing Ops Conti
Slide 12: Winter 2016/17 and Summer 2017 current trading
Winter 2016/17 and Summer 2017 • Winter 2016/17 • Source Markets programme 87% sold to date with revenues up 8% and bookings up 4% • Strong growth in UK long haul and cruise • Pleased with Germany booking performance since last update • Nordics and Belgium rebrand awareness continues to grow • Furth
Slide 13: UK Current Trading
UK Current Trading UK Weekly Booking Trends EU referendum 23 June 2016 June July August September October November December January Summer 2017 Summer 2016 UK bookings pattern has remained resilient post Brexit vote Weekly booking volume data from 22 May 2016 to 5 February 2017 13 TUI GROUP | Q1 201
Slide 14: Financial Performance
Financial Performance Horst Baier 14 TUI GROUP | Q1 2016/17 Results | 14 February 2017
Slide 15: Sale of Travelopia
Sale of Travelopia • Agreement to sell to Travelopia to KKR for an agreed enterprise value of £325m/€381m1 or 14.4x 2015/16 underlying EBITA • Proceeds will be reinvested in the transformation of TUI and to further strengthen the balance sheet, as outlined in the December 2016 full year presentation
Slide 16: Income Statement
Income Statement Adjustments €9m In €m Q1 2016/17 Q1 2015/16 Mainly relates to PPA of €8m Turnover 3,285.9 3,212.3 Hapag-Lloyd AG Underlying EBITA -60.3 -80.4 Share price decline in prior year reflected here, Adjustments (SDI's and PPA) -9.2 -22.4 subsequent increase to €22 per share at 31.12.16 has
Slide 17: Cash Flow
Cash Flow In €m Q1 2016/17 Q1 2015/16* EBITA reported** -69.5 -102.8 Depreciation** 99.3 95.3 Working capital -1,097.8 -1,314.8 Other cash effects 52.9 16.7 At equity income** -35.3 -22.6 Dividends received from JVs and associates 1.4 3.4 Tax paid -58.4 -56.1 Interest (cash) -19.4 -21.0 Pension cont
Slide 18: Movement in Net Debt
Movement in Net Debt €m 31 Dec 2016 31 Dec 2015 Opening net (debt)/ cash as at 30 September 350 -214 Movement in cash net of debt -1,494 -1,569 Other cash movement - employee benefit trust -20 -49 Foreign exchange movement -57 -23 Non cash movement in debt - Asset backed finance -1 -5 Non cash movem
Slide 19: Net Financial Position, Pensions and Operating Leases
Net Financial Position, Pensions and Operating Leases €m 31 Dec 2016* 31 Dec 2015 Financial liabilities -2,177 -2,918 - Finance Leases -1,266 -996 - High Yield Bond - -294 - Senior Notes -295 - - Other liabilities (incl RCF) -616 -1,628 Cash 659 1,042 Net debt -1,518 -1,876 - Net Pension Obligation
Slide 20: Outlook 2016/17 – Continuing operations basis
Outlook 2016/17* – Continuing operations basis Metric 2015/16 2016/17e Turnover €17,185m ~3% growth Underlying EBITA €1,001m At least 10% growth Adjustments €102m ~€80m Net Interest €180m ~€160m Net Capex & Investments** €642m ~€1.0bn Net Cash/Debt €32m net cash ~€0.8bn net debt (see footnote) Under
Slide 21: Summary
Summary Fritz Joussen 21 TUI GROUP | Q1 2016/17 Results | 14 February 2017
Slide 22: Summary
Summary •Good start to the year and current trading remains in line with our expectations •Significant strategic progress made with agreement to sell Travelopia •Progressing our negotiations with Etihad regarding the German airline JV •Our scale and vertically integrated business model mean that we
Slide 23: Appendix
Appendix 23 TUI GROUP | Q1 2016/17 Results | 14 February 2017
Slide 24: 2016/17 Turnover by Segment
2016/17 Turnover by Segment (excludes intra-group turnover)* Change ex In €m Q1 2016/17 Q1 2015/16 Change FX FX Northern Region 1,201.7 1,269.3 -67.6 -193.2 125.6 Central Region 1,140.9 1,089.4 51.5 -0.8 52.3 Western Region 549.4 486.9 62.5 - 62.5 Source Markets 2,892.0 2,845.6 46.4 -194.0 240.4 Riu
Slide 25: 2016/17 Underlying EBITA by Segment
2016/17 Underlying EBITA by Segment* Change ex In €m Q1 2016/17 Q1 2015/16 Change FX FX Northern Region -20.2 -35.6 15.4 5.5 9.9 Central Region -52.4 -27.0 -25.4 0.1 -25.5 Western Region -47.7 -27.7 -20.0 - -20.0 Source Markets -120.3 -90.3 -30.0 5.6 -35.6 Riu 76.3 59.2 17.1 -3.0 20.1 Robinson 1.7 0
Slide 26: 2015/16 Restated Turnover by Quarter
2015/16 Restated Turnover by Quarter (excludes intra-group turnover)* In €m Q1 2015/16 Q2 2015/16 Q3 2015/16 Q4 2015/16 FY 2015/16 Northern Region 1,269.3 1,254.8 1,761.5 2,715.9 7,001.5 Central Region 1,089.3 897.7 1,346.3 2,229.3 5,562.6 Western Region 486.9 428.7 734.6 1,219.7 2,869.9 Source Mark
Slide 27: 2015/16 Restated Underlying EBITA by Quarter
2015/16 Restated Underlying EBITA by Quarter* In €m Q1 2015/16 Q2 2015/16 Q3 2015/16 Q4 2015/16 FY 2015/16 Northern Region -35.6 -63.8 88.1 472.2 460.9 Central Region -27.4 -84.1 3.2 193.6 85.3 Western Region -27.6 -48.1 -6.5 168.3 86.1 Source Markets -90.6 -196.0 84.8 834.1 632.3 Riu 59.2 94.4 64.6
Slide 28: Adjustments
Adjustments €m Q1 2016/17 Q1 2015/16 Restructuring expense -0.2 -1.7 Loss on disposals -0.7 -1.5 Other one-off items -0.6 -7.6 PPA -7.7 -11.6 Total Adjustments -9.2 -22.4 28 TUI GROUP | Q1 2016/17 Results | 14 February 2017
Slide 29: Net Interest Result
Net Interest Result €m Q1 2016/17 Q1 2015/16 Debt related interest -28 -29 Non-debt related charge -11 -17 Interest income 5 5 Net interest result -34 -41 o/w cash interest -19 -21 29 TUI GROUP | Q1 2016/17 Results | 14 February 2017
Slide 30: Source Markets KPIs Q1 2016/17
Source Markets KPIs Q1 2016/17 Customers Direct Distribution Online Underly. EBITA y-o-y (%) (`000) y-o-y (ppts) (%) y-o-y (ppts) (%) y-o-y (€m) (€m) Northern Region* 7 1,304 2 91 3 8621 15 -20 Central Region Flat 1,261 2 46 2 16 -25 -52 -€22m relates to TUI fly sickness Western Region* 6 926 2 72 3
Slide 31: Source Market KPIs
Source Market KPIs1 Direct Distribution Online Distribution Customers (000) Q1 16/17 Q1 15/16 Q1 16/17 Q1 15/16 Q1 16/17 Q1 15/16 UK 91% 89% 59% 56% 1,033 939 Nordics 89% 89% 75% 71% 272 282 Germany2 45% 43% 16% 14% 1,167 1,183 Benelux 74% 71% 59% 56% 825 792 Total Source Markets3 72% 70% 45% 42% 3,
Slide 32: Hotels & Resorts KPIs Q1 2016/17
Hotels & Resorts KPIs Q1 2016/17 Capacity1 Revenue/bed2 Occupancy3 Underly. EBITA4 y-o-y (%) (`000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) -1 4,202 6 63.3 2 86 17 76 1 654 3 87.3 Flat 64 1 2 Other (incl former TUI 6 -29 Travel Hotels) TUI H&R (incl former 1 7,791 3 59.5 24 49 TUI Travel Hote
Slide 33: Cruises KPIs Q1 2016/17
Cruises KPIs Q1 2016/17 Passenger cruise Average daily rate Occupancy Underly. EBITA days y-o-y (%) (´000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) 23 1,007 -2 143 -1 100 4 17* 4 74 15 549 2 71 7 2 * Equity result 33 TUI GROUP | Q1 2016/17 Results | 14 February 2017
Slide 34: Source Markets Current Trading – Winter 2016/17
Source Markets Current Trading – Winter 2016/17 Current trading1 Programme Revenue2 Customers2 ASP2 y-o-y variation (%) sold UK 12 8 81% 21 Nordics -6 -4 -2 93% Germany 5 85% 5 Flat Benelux 3 1 2 93% Source Markets 8 4 4 87% 1These statistics are up to 5 February 2017 and are shown on a constant cur
Slide 35: Destination Update
Destination Update • Adverse travel advice in UK, Belgium and Netherlands still in place Tunisia • TUI has 11 leased hotels – most have been temporarily closed • Not included in Summer 2017 programme • Adverse travel advice to Sharm el Sheikh airport in UK and Nordics and all travel to Egypt for Rus
Slide 36: Financial Calendar 2017
Financial Calendar 2017 14 February 2017 Q1 2016/17 Report and Annual General Meeting 29 March 2017 Pre-close trading update 15 May 2017 Q2 2016/17 Report 10 August 2017 9M 2016/17 Report 28 September 2017 Pre-close trading update 13 December 2017 Annual Report for financial year 2016/17 36 TUI GROU
Slide 37: Contact
Contact Andy Long, Director of Investor Relations Tel: +44 (0)1293 645 925 Contacts for Analysts and Investors in UK, Ireland and Americas Sarah Coomes, Head of Investor Relations Tel: +44 (0)1293 645 827 Hazel Newell, Investor Relations Manager Tel: +44 (0)1293 645 823 Jacqui Smith, PA to Andy Long