TUI AG · XETR:TUI1
TUI — Barclays Leisure, Transport & Business Services Conference 2024
47 slides from TUI's conference presentation, Mar 12, 2024
Slide 1: TUI Group Investor Presentation
TUI GROUP INVESTOR PRESENTATION Barclays Leisure, Transport & Business Services Conference 2024 12 March 2024 1
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 TUI OVERVIEW 2 TUI STRATEGY 3 FY24 Q1 RESULTS 4 OUTLOOK, TRADING & MID-TERM AMBITIONS 3
Slide 4: 4
4
Slide 5: TUI Group at a glance - FY23
TUI Group at a glance - FY23 TUI GROUP HOLIDAY EXPERIENCES (Und. EBIT) ~80% 19m Customers 360 Leading leisure hotel and club brands around €549m the world; investments, operations, ownership Hotels1 16 €20.7bn Revenue Cruise €236m Leading German & UK cruise brands ships >45k Experiences Tours Tours,
Slide 6: TUI integrated business model will unlock significant value
TUI integrated business model will unlock significant value NEW PRODUCTS NEW CUSTOMERS GROW MARKET SHARE CENTRAL CUSTOMER ECOSYSTEM Märkte & Airlines Holiday Experiences Hotels, Cruises, Packages, Components, Experiences, Transfers Ancillaries & Tours BRAND E SELLING PL CRM LOYALTY N A CARE O TF APP
Slide 7: Agenda
AGENDA 1 TUI OVERVIEW 2 TUI STRATEGY 3 FY24 Q1 RESULTS 4 OUTLOOK, TRADING & MID-TERM AMBITIONS 7
Slide 8: TUI is becoming a growing, scalable and global tourism business
TUI is becoming a growing, scalable and global tourism business with ambitious profitability targets Global Travel & Tourism market set for growth above GDP1 TUI of tomorrow will unlock significant value by rollout of the global platform thus capturing the customer lifetime value Strong progress wit
Slide 9: Travel & Tourism market set for growth above GDP
Travel & Tourism market set for growth above GDP GLOBAL INBOUND ARRIVALS (# trips, billions) Growth 5% 1.8 1.5 1.5 1.3 Recovery Covid impact 2019 2023 2028 9 Source: Inbound arrivals per Euromonitor Travel, October 2023; Mid-term real GDP forecast per IMF
Slide 10: TUI well positioned to capture market growth opportunities
TUI well positioned to capture market growth opportunities with consumers continuing to prioritise holidays Market Growth1 Travel is a Mega Trend HOTELS >5% Favourable demographic supported by high disposable income and longevity CRUISE Experiences – the new lifestyle & global trend in >5% travel TO
Slide 11: The TUI of tomorrow will unlock significant value
The TUI of tomorrow will unlock significant value TUI of today Operational excellence & transformation TUI of tomorrow Large diversified customer 1 More market share, base & strong Wholesale pax Grow component products sales & new customers profitable growth position & more resilience Unique & diffe
Slide 12: Markets & Airlines – More market share with new products
Markets & Airlines – More market share with new products tapping new customer segments NEW PRODUCTS NEW CUSTOMERS • Dynamic Packaging • Tours • Smart Tanners • Travelistas Building • Accommodation-Only • Ancillaries • Home & Aways Blocks • Energised Adventurers • Flight-Only • Car Rentals • Senior S
Slide 13: Holiday Experiences – accelerating growth via asset-right strategy
Holiday Experiences – We are accelerating further growth via asset-right strategy HOTELS & RESORTS CRUISES TUI MUSEMENT • Value investments • JV growth • Drive customer growth • Asset-light growth, through • Expand source market • Growth through direct channels & Building • RIU JV distribution / bro
Slide 14: Strong Customer Satisfaction across the entire customer journey
Strong Customer Satisfaction across the entire customer journey FY24 YTD1 vs. PY • Strong NPS with CSAT improving across all consumer touchpoints driven by our continued focus on NPS 46 to 53 quality • Av. customer age 47 years for M&A segment & higher share of CSAT 8.4 to 8.5 customers in middle/hi
Slide 15: Bringing more customers into TUI's central ecosystem
Bringing more customers into TUI’s central ecosystem improves efficiency whilst enhancing the customer experience Roll-out centralised global platforms Central database enables cross- & upselling ONE global platform used by all markets Customer data sharing across segments Central One global platfor
Slide 16: Growth via the App drives unpaid traffic
Growth via the App drives unpaid traffic, delivering distribution cost savings in the mid-term Enhance direct app selling 2% 5% Share of App Sales Mid Mid-term 50% 2019 48% 50% 2023 45% term mid-double digit CAGR Retail Online App 16 Share of Online and App % on a booked basis
Slide 17: One Central Customer Ecosystem accelerates cross- & upselling
One Central Customer Ecosystem accelerates cross- & upselling to capture the Customer Lifetime Value + + + & Example: Example: Musement customer US + + Package customer UK TUI PRODUCT PORTFOLIO Example: Example: Acco-Only customer NL + CENTRAL DATABASE + Rental car customer DE Cross-/Upselling Examp
Slide 18: Building the TUI of tomorrow – Transformation Roadmap
Building the TUI of tomorrow – more agile, more cost-efficient with higher speed to market… Our Transformation Roadmap • Commercialisation of growth measures (new products, new • Global roll-out of common customers) platforms • Shaping common platform FY23 FY24 FY25 FY26+ • Business ramp-up • Defini
Slide 19: TUI Sustainability Agenda
TUI Sustainability Agenda: Reduce our environmental footprint significantly, maximise the socio-economic impact of tourism Emission Reduction Roadmap 24% reduction airline1 27.5% reduction cruise2 46.2% reduction TUI Hotels & Resorts2 2030 People Planet Progress • Buy local first • Emission reductio
Slide 20: Agenda
AGENDA 1 TUI OVERVIEW 2 TUI STRATEGY 3 FY24 Q1 RESULTS 4 OUTLOOK, TRADING & MID-TERM AMBITIONS 20
Slide 21: Record FY24 Q1 performance, Group Und. EBIT positive
Record FY24 Q1 performance, Group Und. EBIT with €6m positive for the first time FY24 Q1 delivered record revenues of €4.3bn & significant improvement in Und. EBIT of +€159m across the business Bookings continuing positive momentum vs. PY (W23/24 +8%; S24 +8%) with higher ASP (both seasons +4%), hig
Slide 22: Q1 performance puts TUI well on track to deliver FY24 Guidance
Q1 performance puts TUI well on track to deliver FY24 Guidance Revenue (€bn) Und. EBIT (€m) Group result (€m)1 +€159m +€133m +15% 6 4.3 3.8 -123 -153 -256 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 22 1 Group result after minorities
Slide 23: FY24 Q1 – HEX and M&A Und. EBIT improvement
FY24 Q1 – HEX Und. EBIT doubled plus M&A strong operational improvement & hedging benefits HOLIDAY EXPERIENCES MARKETS & AIRLINES Und. EBIT €115m (+€56m vs. PY) Und. EBIT -€96m (+€99m vs. PY) +€19m HOTELS & 91 FY24 RESORTS 72 YoY Q1 FY23 Q1 FY24 Q1 Avail. Bed Nights 8.8m +3% Occupancy 78% +3%pts FY2
Slide 24: FY24 Q1 Und. EBIT positive for the first time
FY24 Q1 Und. EBIT positive for the first time In €m FY24 Q1 FY23 Q1 Revenue 4,303 3,751 Underlying EBIT 6 -153 Adjustments -6 -6 EBIT 0 -159 Net interest expense -103 -114 EBT -103 -273 Income taxes 20 41 Group result cont. operations -84 -232 Minority interest -39 -24 Group result after minorities
Slide 25: FY24 Q1 – Improved FCF & strong reduction in Net Debt
FY24 Q1 – Improved FCF & strong reduction in Net Debt of €1.3bn YoY Cash Flow Net Debt In €m FY24 Q1 FY23 Q1 In €bn FY24 Q1 FY23 Q1 YoY ∆ IFRS 16 IFRS 16 Underlying EBITDA 209 58 Financial liabilities -5.8 -6.9 1.0 Operating Cash flow -1,715 -1,793 - Lease liabilities under IFRS16 -2.8 -2.9 0.1 Free
Slide 26: Recap capital allocation framework
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 27: TUI places €500m sustainability-linked senior notes
TUI successfully places €500m sustainability-linked senior notes in March 24 Transaction Overview Total Volume • €500m Maturity date • March 2029 Coupon • 5.875%, payable semi-annually Issue Price • 98.93% Sustainability KPI • Airline CO2e-Emissions Intensity1 Issue Rating • B+/B1 (S&P/Moody’s) • Re
Slide 28: Agenda
AGENDA 1 TUI OVERVIEW 2 TUI STRATEGY 3 FY24 Q1 RESULTS 4 OUTLOOK, TRADING & MID-TERM AMBITIONS 28
Slide 29: Consumers continue to prioritise spending on Travel & Holidays
Consumers continue to prioritise spending on Travel & Holidays December ‘23 YoY spend growth1 Travel outperformed all other categories as 1 in 71 consumers book more getaways Consumers say they plan to take more holidays in 2024 than they have in recent years 14.1% Growth in spend in overall Travel
Slide 30: Bookings well ahead +8% vs. PY supported by +4% higher prices
Bookings well ahead +8% vs. PY supported by +4% higher prices Winter Bookings • W23/24 87% sold, in line with PY W23/24 vs. W22/23 • ASP continues to be higher across our key markets • UK +10% YoY; 84% sold BOOKINGS1 +8% • Germany +8% YoY; 87% sold ASP +4% • Bookings also up in all other markets Sum
Slide 31: Holiday Experiences – Trading remains well on track
Holiday Experiences – Trading remains well on track to deliver in line with expectations Trading Update 1 Q2 2024 H2 2024 YoY HOTELS & RESORTS Avail. Bed Nights +7% +1% Occupancy -1%pts +1%pts Av. Daily Rate +13% +12% CRUISES Avail. Pax Cruise Days 0% +9% +5%pts +13%pts Occupancy earlier bookings, e
Slide 32: FY24 Guidance
FY24 Guidance Q1 24 @CC YoY FY24e1 FY23 Revenue €4,304m +€553m Expect Revenue to increase by at least 10% €20,666m Underlying EBIT €14m +€167m Expect Und. EBIT to increase by at least 25% €977m 32 1 Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainti
Slide 33: FY24 Und. EBIT Guidance
FY24 Und. EBIT Guidance Q1 24 @CC YoY FY24e1 FY23 ➢ Moderate growth Hotels & Resorts €94m +€23m €549m based on strong occupancy levels & footprint ➢ Significant growth Cruise €34m +€34m €236m based on recovered occupancies & new ship delivery ➢ While investing into further growth, continue to TUI Mu
Slide 34: FY24 Modelling Assumptions
FY24 Modelling Assumptions FY24e1 FY23 Adjustments (incl. PPA)2 -€25m to -€35m €22m Net Interest -€410m to -€440m -€448m Cash Interest -€330m to -€350m Cash -€381m Net Investments3 -€475m to -€525m -€494m Excluding -€75m impact from new additional RIU JV Leases & Asset Financing Broadly stable €3,39
Slide 35: Let's unlock the value through transformation
Let’s unlock the value through transformation Improve profitability & Accelerate profitable Strengthen Balance Focus on Cash Flow margin growth Sheet OUR FY24 GUIDANCE1 OUR MID-TERM AMBITIONS1 ➢ Und. EBIT growth c. 7-10% CAGR ➢ Expect Und. EBIT to increase by at least 25% ➢ Target Net Leverage2 stro
Slide 36: Appendix
Appendix 36
Slide 37: Income Statement – FY24 Q1 EBIT positive for the first time
Income Statement – FY24 Q1 EBIT positive for the first time REVENUE In €m FY24 Q1 FY23 Q1 • Record Q1 revenue at €4.3bn, up 15% with all segments contributing Revenue 4,303 3,751 Underlying EBITDA 209 58 UNDERLYING EBIT • Record Q1 EBIT at €6m, a significant improvement of +€159m across the business
Slide 38: Cash Flow Statement – Improved Free Cash Flow YoY
Cash Flow Statement – Improved Free Cash Flow YoY In €m FY24 Q1 FY23 Q1 WORKING CAPITAL • Outflow in line with seasonal working capital swing and prior year Underlying EBITDA 209 58 Adjustments -1 0 CASH INTEREST Reported EBITDA 208 58 • YoY decrease mainly due to lower RCF drawings and non-repeat o
Slide 39: Strong reduction in Net Debt of €1.3bn
Strong reduction in Net Debt of €1.3bn FY24 Q1 vs FY23 Q1 In €bn FY24 Q1 FY23 Q1 IFRS 16 IFRS 16 YoY ∆ Financial liabilities -5.8 -6.9 1.0 - Lease liabilities under IFRS16 -2.8 -2.9 0.1 - Bond with warrant 0.0 -0.1 0.1 - Convertible Bond -0.5 -0.5 0.0 - Liabilities to banks -2.4 -3.3 0.9 - Other lia
Slide 40: FY24 Q1 Revenue by Segment
FY24 Q1 Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)1 In €m Change Change FY24 Q1 FY23 Q1 incl FX excl FX ∆ FX Hotels & Resorts 251.7 210.9 40.8 41.8 -1.1 - Riu 211.7 174.1 37.6 37.8 -0.1 - Robinson 24.4 22.8 1.6 1.7 -0.1 - Blue Diamond2 0.0 0.0 0.0 0.0 0.0 - Other 15.6 14.0
Slide 41: FY24 Q1 Underlying EBITDA by Segment
FY24 Q1 Underlying EBITDA by Segment1 In €m Change Change FY24 Q1 FY23 Q1 incl FX excl FX ∆ FX Hotels & Resorts 136.2 121.7 14.5 18.7 -4.2 - Riu 124.1 90.1 34.0 34.3 -0.3 - Robinson 13.7 16.7 -3.0 -2.9 -0.1 - Blue Diamond2 0.8 4.5 -3.7 -3.9 0.2 - Other -2.3 10.4 -12.7 -8.7 -4.0 Cruises 56.7 17.9 38.
Slide 42: FY24 Q1 Underlying EBIT by Segment
FY24 Q1 Underlying EBIT by Segment1 In €m Change Change FY24 Q1 FY23 Q1 incl FX excl FX ∆ FX Hotels & Resorts 90.7 71.6 19.0 22.7 -3.7 - Riu 97.4 63.5 33.9 34.1 -0.2 - Robinson 5.1 7.6 -2.5 -2.4 -0.1 - Blue Diamond2 0.8 4.5 -3.7 -3.9 0.2 - Other -12.6 -3.9 -8.6 -5.0 -3.7 Cruises 34.5 0.2 34.3 34.2 0
Slide 43: FY23 12M Revenue by Segment
FY23 12M Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)1 In €m Change Change FY23 12M FY22 12M incl FX excl FX ∆ FX Hotels & Resorts 1,032.5 806.2 226.3 196.9 29.4 - Riu 803.1 587.0 216.1 183.7 32.4 - Robinson 113.6 111.8 1.7 1.9 -0.1 - Blue Diamond2 0.0 0.0 0.0 0.0 0.0 - Other
Slide 44: FY23 12M Underlying EBITDA by Segment
FY23 12M Underlying EBITDA by Segment1 In €m Change Change FY23 12M FY22 12M incl FX excl FX ∆ FX Hotels & Resorts 734.4 651.1 83.3 89.8 -6.5 - Riu 482.4 395.2 87.2 73.4 13.7 - Robinson 83.4 84.5 -1.0 -1.5 0.5 - Blue Diamond2 30.9 49.8 -18.8 -20.5 1.6 - Other 137.7 121.6 16.0 38.4 -22.3 Cruises 301.
Slide 45: FY23 12M Underlying EBIT by Segment
FY23 12M Underlying EBIT by Segment1 In €m Change Change FY23 12M FY22 12M incl FX excl FX ∆ FX Hotels & Resorts 549.5 480.3 69.2 76.5 -7.3 - Riu 378.9 304.1 74.8 63.9 10.9 - Robinson 53.2 54.0 -0.7 -0.8 0.0 - Blue Diamond2 30.9 49.8 -18.8 -20.5 1.6 - Other 86.5 72.5 14.0 33.8 -19.8 Cruises 236.0 0.
Slide 46: Financing facilities and support packages overview
Financing facilities and support packages overview per 31 December 2023 Instrument Facility €m Utilisation €m Debt/equity Maturity date 1,454 1,442 Debt Banks RCF (unsecured) Bank 190 Guarantee line - July 2026 facilities KfW RCF (unsecured) 1,050 Undrawn Debt Schuldschein 242 - Debt July 2025/28 Co
Slide 47: 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
TUI Group — Barclays Leisure, Transport & Business Services Conference 2024 on 6ix