Tui Ag · XETR:TUI1
Tui — Q1 FY2024 Earnings Presentation
33 slides from Tui's earnings presentation, Feb 13, 2024
Slide 1: FY24 Q1 Results
FY24 Q1 RESULTS 13 February 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 Q1 Operational & Strategic Highlights 2 FY24 Q1 Results 3 FY24 Trading Update & Outlook 4 Summary 5 Appendix
Slide 4: Record FY24 Q1 performance, Group Und. EBIT with €6m positive for the first time
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 5: HEX Und. EBIT doubled – up €56m vs. PY
HEX Und. EBIT doubled – up €56m vs. PY HOLIDAY EXPERIENCES Und. EBIT €115m (+€56m vs. PY) FY24 Q1 FY23 Q1 91 72 Q1 YoY HOTELS & Avail. Bed Nights 8.8m +3% RESORTS Occupancy 78% +3%pts Ave. Daily Rate1 €90 +5% 34 Q1 YoY Avail. Pax Days 2.3m -2% CRUISES Occupancy 96% +8%pts 0 Av. Daily Rate 204€ +17%
Slide 6: M&A strong operational improvement & hedging benefits +€99m vs. PY
M&A strong operational improvement & hedging benefits +€99m vs. PY MARKETS & AIRLINES Und. EBIT -€96m (+€99m vs. PY) FY24 Q1 FY23 Q1 Q1 YoY +99 Departed Pax 3.5m +6% TOTAL M&A o/w Dynamic Package 0.6m +24% App Sales 6.6% +36.6% Load Factor 86% +1%pts -96 -195 NORTHERN REGION CENTRAL REGION WESTERN R
Slide 7: Latest progress on our strategic initiatives
Latest progress on our strategic initiatives TUI Musement Hotels & Resorts Further hotel portfolio growth TUI Musement partnering with easyJet The Mora – New Luxury hotel brand providing Tours & Activities • Expanding TUI’s brand appeal in the upper market segment • Offering laid-back luxury combine
Slide 8: Agenda
AGENDA 1 FY24 Q1 Operational & Strategic Highlights 2 FY24 Q1 Results 3 FY24 Trading Update & Outlook 4 Summary 5 Appendix
Slide 9: Strong performance in Q1 – well on track to deliver our FY24 Guidance
Strong performance in Q1 – well on track to deliver our FY24 Guidance • Revenue €4.3bn (+15%) Strong • Und. EBIT €6m (+€0.2bn) Operational & Financial Improvement • Net Debt €4.0bn (-€1.3bn) • Further Rating Upgrade to B+ (pos. Outlook) by S&P • Shareholders also to vote on • New Authorised and Cond
Slide 10: Q1 result – positive Und. EBIT with significant improvement vs. PY
Q1 result – positive Und. EBIT with significant improvement vs. PY FY24 Q1 vs. FY23 Q1 UNDERLYING EBIT in €m +159m 8 14 4 6 Holiday Experiences: +€56m • Hotels & Resorts +€19m (higher bed nights & occupancy rates) 99 • Cruises +€34m (strong increase in occupancy & rates) Markets & Airlines +€99m • T
Slide 11: 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 12: 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 13: 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 14: At today's AGM our shareholders will decide on the future listing structure of TUI
At today’s AGM our shareholders will decide on the future listing structure of TUI 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 24 Jun 24 Jun 2024in MDAX
Slide 15: 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 16: Agenda
AGENDA 1 FY24 Q1 Operational & Strategic Highlights 2 FY24 Q1 Results 3 FY24 Trading Update & Outlook 4 Summary 5 Appendix
Slide 17: 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 18: Markets & Airlines – Winter bookings continue to be well ahead +8%
Markets & Airlines – Winter bookings continue to be well ahead +8% on expanded Winter programme supported by higher prices +4% TRADING UPDATE Vs. W22/23 W23/24 BOOKINGS1 +8% • W23/24 c. 87% sold, in line with PY ASP +4% • ASP continues to be higher across our key markets • UK +10% YoY; c. 84% sold /
Slide 19: Markets & Airlines – Bookings for Summer 24 continue to be promising
Markets & Airlines – Bookings for Summer 24 continue to be promising Vs. S23 S24 BOOKINGS1 +8% ASP +4% • Programme 32% sold, in line with PY • UK +3% YoY; c. 41% sold / Germany +15% YoY; c. 32% sold • All other markets also with a promising early booking profile with strong ASP • Flexibility to shif
Slide 20: 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 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 21: 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 21 1 Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainti
Slide 22: 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 23: 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 24: Agenda
AGENDA 1 FY24 Q1 Operational & Strategic Highlights 2 FY24 Q1 Results 3 FY24 Trading Update & Outlook 4 Summary 5 Appendix
Slide 25: 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 26: Appendix
APPENDIX
Slide 27: 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 28: 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 29: 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 30: Financing facilities and support packages overview per 31 December 2023
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 31: Movement in Net Debt
Movement in Net Debt FY23 Q1 to FY24 Q1 In €m FY24 Q1 FY23 Q1 In €m FY24 Q1 FY23 Q1 IFRS 16 IFRS 16 YoY ∆ IFRS 16 IFRS 16 YoY ∆ Opening net debt as at 1 October -2,106 -3,436 1,330 Financial liabilities -5,778 -6,888 1,110 FCF after Dividends -1,835 -1,959 124 - Lease liabilities under IFRS16 -2,789
Slide 32: Movement in Net Debt
Movement in Net Debt FY23 YE to FY24 Q1 In €m FY24 Q1 FY23 YE In €m FY24 Q1 FY23 YE IFRS 16 IFRS 16 QoQ ∆ IFRS 16 IFRS 16 QoQ ∆ Opening net debt as at 1 October -2,106 -3,436 1,330 Financial liabilities -5,778 -4,215 -1,563 FCF after Dividends -1,835 571 -2,406 - Lease liabilities under IFRS16 -2,78
Slide 33: Analyst and Investor Enquiries / Financial Calendar
ANALYST AND INVESTOR ENQUIRIES FINANCIAL CALENDAR Nicola Gehrt, Group Director Investor Relations Tel: +49 (0)511 566 1435 13 February 2024 FY24 Q1 Results Adrian Bell, Senior Investor Relations Manager Tel: +49 (0)511 566 2332 13 February 2024 Annual General Meeting 2024 James Trimble, Investor Rel