Tui Ag · XETR:TUI1
Tui — H1 2024 Earnings Presentation
41 slides from Tui's earnings presentation, May 15, 2024
Slide 1: FY24 Q2/H1 Results
FY24 Q2/H1 RESULTS 15 May 2024
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: Agenda
AGENDA 1 FY24 Q2 Highlights 2 FY24 Q2/H1 Results 3 Trading Update & Outlook 4 Update Strategic Initiatives & Mid-Term Ambitions 5 Appendix
Slide 4: Record FY24 Q2 performance, Und. EBIT guidance reconfirmed to increase by at least 25%
Record FY24 Q2 performance, Und. EBIT guidance reconfirmed to increase by at least 25% FY24 Q2 delivered record revenues of €3.6bn & strong improvement in Und. EBIT of +€54m across the business M&A: Strong close of W23/24 (bookings +9% & ASP +3%) with strong lates market and S24 continuing promising
Slide 5: HEX Q2 Und. EBIT up €91m vs. PY – Strong performance in Hotels and Cruises
HEX Q2 Und. EBIT up €91m vs. PY – Strong performance in Hotels and Cruises HOLIDAY EXPERIENCES Q2 Und. EBIT €171m (+€91m vs. PY) | FY24 H1 Und. EBIT €285m (+€147m vs. PY) FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 QoQ 208 150 Q2 YoY 117 HOTELS & 78 Avail. Bed Nights 7.6m +9% RESORTS Occupancy 81% -2%pts Ave. D
Slide 6: M&A Q2 Und. EBIT -€18m vs. PY
M&A Q2 Und. EBIT -€18m vs. PY – incl. non- repeat of positive Canada contribution in PY MARKETS & AIRLINES Q2 Und. EBIT -€326m (-€18m vs. PY) | FY24 H1 Und. EBIT -€422m (+€81m vs. PY) FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 QoQ Q2 YoY Departed Pax 2.8m +14% MARKETS & o/w Dynamic Package 0.4m +30% -30 -309 A
Slide 7: Strong H1 quality performance with both CSATs and NPS continuing to trend positively
Strong H1 quality performance with both CSATs and NPS continuing to trend positively Strong NPS Focus on quality • Striving to continuously improve quality across the entire customer journey 52 57 as integral part of our strategic priorities YTD Apr 24 • 24/7 handling of all on-holiday requests with
Slide 8: Q2 Sustainability Update
Q2 Sustainability Update 2030 targets approved by SBTi • 24% reduction airline1 • 27.5% reduction cruise2 • 46.2% reduction TUI Hotels & Resorts2 • New Group Policy on Diverse, Sustainable and Ethical Sourcing launched • Sets out targets & provides guidance for all procurement regarding emission red
Slide 9: Agenda
AGENDA 1 FY24 Q2 Highlights 2 FY24 Q2/H1 Results 3 Trading Update & Outlook 4 Update Strategic Initiatives & Mid-Term Ambitions 5 Appendix
Slide 10: Record performance in Q2 – well on track to deliver our FY24 Guidance
Record performance in Q2 – well on track to deliver our FY24 Guidance Q2 Strong Capital Market Operational & Progress Financial Improvement • Rating Upgrades by both S&P and Moody’s • Revenue €3.6bn (+16%) to B+/B1 with positive Outlook • Und. EBIT -€189m (+€54m) • €500m sustainability-linked senior
Slide 11: Q2 result driven by record Hotels & Resorts and Cruises performance
Q2 result driven by record Hotels & Resorts and Cruises performance FY24 Q2 vs. FY23 Q2 UNDERLYING EBIT in €m +54m Holiday Experiences: +€91m • Hotels & Resorts Higher bed nights & rates • Cruises Strong increase in occupancy & rates • TUI Musement Experiences sold & Transfers up, while investing in
Slide 12: Income Statement – FY24 Q2 delivering record revenues & strong improvement in Und. EBIT
Income Statement – FY24 Q2 delivering record revenues & strong improvement in Und. EBIT of +€54m In €m FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 REVENUE • Record revenues of €3.6bn in FY24 Q2, up €0.5bn/+16% vs. PY Revenue 3,650 3,153 7,953 6,903 Underlying EBITDA 16 -43 224 15 UNDERLYING EBIT • Strong improv
Slide 13: Cash Flow Statement – FY24 Q2 Free Cash flow mainly driven by Working Capital inflow
Cash Flow Statement – FY24 Q2 Free Cash flow mainly driven by Working Capital inflow In €m FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 WORKING CAPITAL • Strong inflow from customer payments for summer bookings in line with PY Underlying EBITDA 16 -43 224 15 Adjustments -1 0 -1 0 Reported EBITDA 15 -43 223 15 CA
Slide 14: Strong reduction in Net Debt of €1.1bn
Strong reduction in Net Debt of €1.1bn FY24 H1 vs FY23 H1 In €bn FY24 H1 FY23 H1 IFRS 16 IFRS 16 YoY ∆ Financial liabilities -4.8 -5.8 1.0 - Lease liabilities under IFRS16 -2.7 -2.8 0.1 - Senior Notes -0.5 0.0 -0.5 - Bond with warrant 0.0 -0.1 0.1 - Convertible Bond -0.5 -0.5 0.0 - Liabilities to ba
Slide 15: TUI share returns to Prime Standard of the FSE & inclusion in the MDAX expected
TUI share returns to Prime Standard of the FSE & inclusion in the MDAX expected for 24 June 2024 Expected Timetable 13 Feb AGM: vote by shareholders on UK-Delisting 2024 Go/No Go decision for following steps 5/8 Apr Admission & commencement of trading 2024 in Prime Standard in Frankfurt 5 Jun 2024 F
Slide 16: Agenda
AGENDA 1 FY24 Q2 Highlights 2 FY24 Q2/H1 Results 3 Trading Update & Outlook 4 Update Strategic Initiatives & Mid-Term Ambitions 5 Appendix
Slide 17: Markets & Airlines – Strong close to Winter season with both bookings & ASP well ahead
Markets & Airlines – Strong close to Winter season with both bookings & ASP well ahead TRADING UPDATE • 5.1m bookings for Winter 23/24 with 0.7m added since FY24 Q1 Update • Bookings well ahead +9% with ASP notably holding up at +3%, demonstrating resilience in customer demand & strong lates market
Slide 18: Markets & Airlines – Summer continues to be promising with increased bookings & ASP
Markets & Airlines – Summer 24 continues to be promising with increased bookings & ASP TRADING UPDATE S24 vs. S23 • Programme 60% sold, in line with PY BOOKINGS1 +5% • We continue to see customers prioritising holiday travel ASP +4% • UK +3% YoY; c. 65% sold / Germany +7% YoY; c. 60% sold HEDGED POS
Slide 19: Holiday Experiences – Trading remains well on track to deliver in line with expectations
Holiday Experiences – Trading remains well on track to deliver in line with expectations Trading Update 1 H2 2024 YoY HOTELS & RESORTS Avail. Bed Nights2 +1% Occupancy2 +1%pts Av. Daily Rate2 +9% CRUISES Avail. Pax Cruise Days +6% +7%pts Occupancy earlier bookings, exp. to normalise Av. Daily Rate +
Slide 20: FY24 Guidance
FY24 Guidance FY24e1 FY23 Revenue Expect Revenue to increase by at least 10% €20,666m Underlying EBIT Expect Und. EBIT to increase by at least 25% €977m 20 1 Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainties currently known, including development
Slide 21: FY24 Und. EBIT Guidance
FY24 Und. EBIT Guidance FY24e1 FY23 ➢ Strong growth Hotels & Resorts €549m based on strong occupancy levels & footprint ➢ Significant growth Cruises €236m based on recovered occupancies & new ship delivery TUI Musement ➢ While investing into further growth, continue to return towards 2019 levels of
Slide 22: FY24 Modelling Assumptions
FY24 Modelling Assumptions FY24e1 FY23 Adjustments -€25m to -€35m €22m (incl. PPA)2 -€410m to -€440m -€448m Net Interest Expect lower end Cash Interest -€330m to -€350m Cash -€381m Net Investments3 -€475m to -€525m -€494m Excluding -€75m impact from new additional RIU JV Leases & Broadly stable €3,3
Slide 23: Agenda
AGENDA 1 FY24 Q2 Highlights 2 FY24 Q2/H1 Results 3 Trading Update & Outlook 4 Update Strategic Initiatives & Mid-Term Ambitions 5 Appendix
Slide 24: The TUI of tomorrow will unlock significant value
The TUI of tomorrow will unlock significant value – HEX transformation well advanced and M&A on track OF TOMORROW Grow component products Update ➤ sales & new customers More market share, profitable 1 growth & more resilience Further roll-out via Update ➤ asset-right growth 2 Drive margin & retentio
Slide 25: Grow component product sales & new customers
More market share, profitable Grow component product sales & new customers 1 growth & more resilience Flight Q2 24 GROWTH • Ryanair – via API1 Integration 0.4m +30% • British Airways – NDCx2 via Amadeus Dynamic Package Pax YoY • Finnair & SAS – NDCx2 via Amadeus • Vueling – via LowCost Aggregator AP
Slide 26: Further roll-out via asset-right growth
Further roll-out via asset-right growth 2 Drive margin & retention HOTELS & RESORTS CRUISES TUI MUSEMENT • First Robinson resort in Vietnam – • TUI Musement now powering Opening in December 2024 • New Mein Schiff 7 sets sails in loveholidays Tours & Activities Recent June 24 offering • First TUI Blu
Slide 27: Increase in App sales driving unpaid traffic
Increase in App sales driving unpaid traffic 4 Reduce distribution cost Q2 Highlights Q2 24 GROWTH • Improved native Share of App Sales capabilities such as Single 6.8% Sign On to support 4.4% +54.5% Q2 24 YoY increased traffic switching Q2 23 from Web to App Retail and Online App • 80% of our depar
Slide 28: Accommodation-Only sales steer more customers into the ecosystem & drive package sales
Capture Customer Lifetime Accommodation-Only sales steer more customers 5 Value into the ecosystem & drive package sales 68% 53% 21% of AO bookings in of AO bookings in of customers in Nordics were new UK&I were new Germany who booked customers to TUI, customers to TUI, 1st time with TUI in the comp
Slide 29: Let's unlock the value through transformation
Let’s unlock the value through transformation Accelerate profitable Improve profitability & Strengthen Balance growth by implementing Focus on Cash Flow margin Sheet global platforms OUR FY24 GUIDANCE1 OUR MID-TERM AMBITIONS1 ➢ Und. EBIT growth c. 7-10% CAGR ➢ Expect Und. EBIT to increase by at leas
Slide 30: Appendix
APPENDIX
Slide 31: FY24 Q2 Revenue by Segment
FY24 Q2 Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)1 In €m Change Change FY24 Q2 FY23 Q2 incl FX excl FX ∆ FX Hotels & Resorts 247.3 218.3 29.0 25.5 3.5 - Riu 208.6 185.0 23.6 19.6 4.0 - Robinson 21.4 18.8 2.6 2.6 0.0 - Blue Diamond2 0.0 0.0 0.0 0.0 0.0 - Other 17.4 14.6 2.8
Slide 32: FY24 Q2 Underlying EBITDA by Segment
FY24 Q2 Underlying EBITDA by Segment1 In €m Change Change FY24 Q2 FY23 Q2 incl FX excl FX ∆ FX Hotels & Resorts 161.7 123.6 38.1 43.7 -5.6 - Riu 130.4 112.9 17.5 16.3 1.2 - Robinson 4.3 -1.8 6.1 6.2 -0.1 - Blue Diamond2 35.2 27.1 8.0 8.4 -0.4 - Other -8.2 -14.7 6.5 12.7 -6.2 Cruises 92.8 33.0 59.8 5
Slide 33: FY24 Q2 Underlying EBIT by Segment
FY24 Q2 Underlying EBIT by Segment1 In €m Change Change FY24 Q2 FY23 Q2 incl FX excl FX ∆ FX Hotels & Resorts 117.4 78.0 39.4 45.0 -5.6 - Riu 103.8 86.9 16.9 16.0 0.9 - Robinson -4.2 -10.8 6.6 6.7 -0.1 - Blue Diamond2 35.2 27.1 8.0 8.4 -0.4 - Other -17.4 -25.2 7.8 13.9 -6.0 Cruises 70.1 14.8 55.3 54
Slide 34: FY24 H1 Revenue by Segment
FY24 H1 Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)1 In €m Change Change FY24 H1 FY23 H1 incl FX excl FX ∆ FX Hotels & Resorts 499.0 429.2 69.8 67.4 2.4 - Riu 420.3 359.0 61.2 57.4 3.9 - Robinson 45.8 41.6 4.2 4.3 -0.1 - Blue Diamond2 0.0 0.0 0.0 0.0 0.0 - Other 33.0 28.6 4.
Slide 35: FY24 H1 Underlying EBITDA by Segment
FY24 H1 Underlying EBITDA by Segment1 In €m Change Change FY24 H1 FY23 H1 incl FX excl FX ∆ FX Hotels & Resorts 297.9 245.3 52.6 62.4 -9.8 - Riu 254.5 203.0 51.5 50.6 0.9 - Robinson 18.0 15.0 3.1 3.4 -0.3 - Blue Diamond2 35.9 31.6 4.3 4.5 -0.2 - Other -10.6 -4.3 -6.3 4.0 -10.3 Cruises 149.5 50.9 98.
Slide 36: FY24 H1 Underlying EBIT by Segment
FY24 H1 Underlying EBIT by Segment1 In €m Change Change FY24 H1 FY23 H1 incl FX excl FX ∆ FX Hotels & Resorts 208.1 149.7 58.4 67.7 -9.3 - Riu 201.2 150.4 50.8 50.1 0.8 - Robinson 0.9 -3.2 4.1 4.2 -0.2 - Blue Diamond2 35.9 31.6 4.3 4.5 -0.2 - Other -29.9 -29.1 -0.8 8.9 -9.7 Cruises 104.5 15.0 89.6 8
Slide 37: Financing facilities and support packages overview per 31 March 2024
Financing facilities and support packages overview per 31 March 2024 Instrument Facility €m Utilisation €m Debt/equity Maturity date 1,454 Undrawn Debt Banks RCF (unsecured) Bank 190 Guarantee line - July 2026 facilities KfW RCF (unsecured) 550 Undrawn Debt Schuldschein 242 - Debt July 2025/28 Senio
Slide 38: Movement in Net Debt FY23 H1 to FY24 H1
Movement in Net Debt FY23 H1 to FY24 H1 In €m FY24 H1 FY23 H1 In €m FY24 H1 FY23 H1 IFRS 16 IFRS 16 YoY ∆ IFRS 16 IFRS 16 YoY ∆ Financial liabilities -4,792 -5,829 1,037 Opening net debt as at 1 October -2,106 -3,436 1,330 - Lease liabilities under IFRS16 -2,718 -2,835 116 FCF after Dividends -862 -
Slide 39: Movement in Net Debt FY24 Q1 to FY24 H1
Movement in Net Debt FY24 Q1 to FY24 H1 In €m FY24 H1 FY24 Q1 In €m FY24 H1 FY24 Q1 IFRS 16 IFRS 16 QoQ ∆ IFRS 16 IFRS 16 QoQ ∆ Financial liabilities -4,792 -5,778 986 Opening net debt as at 1 October -2,106 -2,106 0 - Lease liabilities under IFRS16 -2,718 -2,789 71 FCF after Dividends -862 -1,835 9
Slide 40: Recap capital allocation framework – our priorities
Recap capital allocation framework – our priorities 1 Drive profitable growth • Grow profits & cash flow • Disciplined capital investments in asset right & JV growth 2 Balance sheet • Return / debt finance remaining KfW facility • Return to credit rating in line with pre-pandemic rating of BB/Ba lev
Slide 41: Analyst and Investor Enquiries, Financial Calendar
ANALYST AND INVESTOR ENQUIRIES FINANCIAL CALENDAR Nicola Gehrt, Group Director Investor Relations Tel: +49 (0)511 566 1435 15 May 2024 FY24 Half-Year Results Adrian Bell, Senior Investor Relations Manager Tel: +49 (0)511 566 2332 14 August 2024 FY24 Q3 Results James Trimble, Investor Relations Manag