Tui Ag · XETR:TUI1
Tui — H1 2015/16 Earnings Presentation
43 slides from Tui's earnings presentation, May 11, 2016
Slide 1: H1 Results 2015/16
H1 Results 2015/16 11 May 2016 Holbox Island, Mexico
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 Opening Remarks Fritz Joussen 2 H1 Review Fritz Joussen 3 Financial Performance Horst Baier 4 Current Trading & Outlook Fritz Joussen 5 Appendix 3 TUI GROUP | H1 2015/16 Results | 11 May 2016
Slide 4: Opening Remarks
Opening Remarks • In our first year post merger, we delivered our best year of underlying EBITA, with constant currency growth of over 15%, ahead of guidance. • Our second year has started well, we are well positioned to deliver full year underlying EBITA growth of at least 10%*. • We are focussed o
Slide 5: TUI Group Strategy – Position of content centric, vertical integration
TUI Group Strategy – Position of content centric, vertical integration Essence Global Platforms • Based on our strong heritage as Global TUI Brand trading companies, we are Aviation: Configuration, Purchasing, increasingly becoming a vertically Financing, Maintenance, Ground integrated company throu
Slide 6: H1 Review
H1 Review Fritz Joussen 6 TUI GROUP | H1 2015/16 Results | 11 May 2016
Slide 7: Review of the Half
Review of the Half Brand turnover: €8.4bn +3.0% / +3.0%* • Brand turnover growth driven by Source Markets and Cruises Turnover: €6.8bn • 17.7%* improvement in underlying EBITA loss +2.7% / +1.9%* • UK, Riu and Cruises have performed particularly Underlying EBITA: €-237m well +16.3% /+17.7%* • Furthe
Slide 8: TUI Group Underlying EBITA Bridge H1 2015/16 in €m
TUI Group Underlying EBITA Bridge H1 2015/16 in €m -283 -245 -237 Corporate streamlining €10m Destination Services €5m 12 -4 5 7 15 11 H1 14/15 Underlying Merger synergies Europa 2 Debt/finance H1 15/16 Easter timing FX translation H1 15/16 Continuing Ops trading leased aircraft Continuing Ops Conti
Slide 9: Source Markets
Source Markets Turnover and Earnings (€m) Bridge Underlying EBITA (€m) H1 15/16 H1 14/15 % -264 -293 -296 Turnover 5,191.2 4,992.7 4.0 2 -16 -3 Underlying EBITA -296.4 -264.2 -12.2 -15 H1 14/15 Northern Central Western H1 15/16 FX H1 15/16 Region Region Region pre FX translation Northern Region +€2m
Slide 10: Strategic rationale for acquisition of Transat France
Strategic rationale for acquisition of Transat France Market shares */ France Acquisition opportunity in the French market Acquisition Valuation 21% • Enterprise value of €55m with completion anticipated by October 2016 Regain market leadership in France • Transat France is the #4 tour operator in F
Slide 11: Hotels & Resorts
Hotels & Resorts Turnover and Earnings (€m) Bridge Underlying EBITA (€m) H1 15/16 H1 14/15 % -14 Total Turnover 530.3 500.0 6.1 -2 1 43 o/w Turnover 3rd party 266.0 245.4 8.4 56 83 84 Underlying EBITA 83.7 55.6 50.5 o/w Equity result 18.5 3.1 496.8 H1 14/15 Riu Robinson Other H1 15/16 FX H1 15/16 pr
Slide 12: Cruises
Cruises Turnover and Earnings (€m) Bridge Underlying EBITA (€m) H1 15/16 H1 14/15 % 9 Turnover HL Cruises 143.1 136.2 5.1 13 Memo: TUI CruisesTurnover 364.2 263.7 38.1 40 Underlying EBITA 40.1 18.3 119.1 18 o/w EAT TUI Cruises* 29.8 17.1 74.3 H1 14/15 TUI Cruises HL Cruises H1 15/16 * TUI Cruises jo
Slide 13: Specialist Group
Specialist Group Turnover and Earnings (€m) Bridge Underlying EBITA (€m) H1 15/16 H1 14/15 % -14 -18 -18 Turnover 850.1 885.2 -4.0 4 -4 Underlying EBITA -17.5 -17.7 1.1 H1 14/15 Specialist H1 15/16 Pre FX translation H1 15/16 Group FX Specialist Group +€4m: Business development H1 2015/16* Good pe
Slide 14: Specialist Business – Portfolio of profitable specialist travel brands
Specialist Business – Portfolio of profitable specialist travel brands Portfolio of adventure travel businesses in the UK, Mainland Europe, North Adventure America and Australia Tailormade High end, tailormade holidays to worldwide destinations Luxury Private jet holidays and luxury touring holidays
Slide 15: Financial Performance
Financial Performance Horst Baier 15 TUI GROUP | H1 2015/16 Results | 11 May 2016
Slide 16: Income Statement
Income Statement In €m H1 2015/16 H1 2014/15 Adjustments €51.4m • Includes PPA of €33.5m and merger related costs €7.1m. Turnover 6,792.3 6,612.1 • Full-year outlook improved to ~€160m Underlying EBITA -236.9 -283.1 Adjustments (SDI's and PPA) -51.4 -85.4 Interest decrease of €24.6m driven by • Lowe
Slide 17: Deliver Merger Synergies
Deliver Merger Synergies In €m Per Capital Markets Update Realised to FY15 Realised to Date May 2015 Synergies One-off Synergies One-off Synergies One-off costs to costs to costs to achieve achieve achieve Corporate 50 35 10 31 20 35 streamlining Occupancy 30 - 10 - 10 - improvement Destination 20 6
Slide 18: Cash Flow
Cash Flow In €m H1 2015/16 H1 2014/15* EBITA reported -288.3 -368.5 Depreciation 218.6 182.1 Working capital -373.4 -567.8 At equity income -65.0 -56.4 Dividends received from JVs and associates 18.3 8.6 Other cash effects 122.3 -133.1 Tax paid -117.1 -72.9 Interest (cash) -41.1 -49.1 Pension contri
Slide 19: Movement in Net Debt
Movement in Net Debt €m 31 Mar 2016 31 Mar 2015 Opening net (debt)/ cash -214 293 Movement in cash net of debt -1,241 -1,860 Disposal of shares in Money Market fund - 300 Foreign exchange movement 59 -167 Non cash movement in debt - Asset backed finance* -10 -547* Non cash movement in debt - Other -
Slide 20: Outlook 2015/16 - net debt continuing operations
Outlook 2015/16* - net debt continuing operations Net debt FY16 Net debt FY16 pre disposal of post disposal of Hotelbeds Hotelbeds €bn Disposal Hotelbeds post tax/costs +1.1 Broadly Working capital cash Hotelbeds -0.3 neutral (expected position; pre-emption of seasonal swing) Pension deficit c
Slide 21: Update on Hotelbeds, Specialist Group & Hapag-Lloyd
Update on Hotelbeds, Specialist Group & Hapag-Lloyd Hotelbeds Group Specialist Group Hapag-Lloyd AG • Fair value of stake at • Strategic Review 31.3.2016 €234m • Agreement reached to complete based on share price sell Hotelbeds of €16.10 – latest business for €1.2bn • Decision to dispose share price
Slide 22: Investing in transformational growth
Investing in transformational growth Hotels Cruises Strengthening the Core • Invest in local strength and global • Strongly differentiated • Strongly differentiated platforms Strategic view • Growth enabler • Growth enabler • Strengthen Balance Sheet ready • Priority for Capex allocation • Priority
Slide 23: Current Trading & Outlook
Current Trading & Outlook Fritz Joussen 23 TUI GROUP | H1 2015/16 Results | 11 May 2016
Slide 24: Winter 2015/16 and Summer 2016
Winter 2015/16 and Summer 2016 • Winter 2015/16 • Closed out as expected • Source Market Revenue up 3%, and bookings flat • Long-haul bookings up 9% • Good bookings growth in the UK and Benelux • Summer 2016 • Source Market revenue up 2% and bookings up 1% • Continued strong performance in UK – reve
Slide 25: Outlook 2015/16 Confirmed – Continuing operations basis
Outlook 2015/16* Confirmed – Continuing operations basis €m 2014/15 2015/16 e Brand Turnover €21,590m At least 5% growth Turnover €19,018m At least 3% growth Underlying EBITA €1,001m At least 10% growth Adjustments €176m ~€160m Net Interest €182m ~€170m Net capex & €655m ~€750m investments Net debt
Slide 26: Summary
Summary • Good first half performance • Maximising growth and value of our other businesses, with the sale of Hotelbeds agreed and confirmation of intention to dispose Specialist Group • Well-positioned and confident to deliver at least 10%* growth in underlying EBITA for financial year 2015/16 and
Slide 27: Appendix
Appendix 27 TUI GROUP | H1 2015/16 Results | 11 May 2016
Slide 28: 2015/16 H1 Turnover by Segment
2015/16 H1 Turnover by Segment (excludes intra-group turnover)* Change ex In €m H1 2015/16 H1 2014/15 Change FX FX Northern Region 2,287.6 2,158.8 128.8 41.2 87.6 Central Region 1,988.0 1,934.2 53.8 3.1 50.7 Western Region 915.6 899.7 15.9 -0.2 16.1 Source Markets 5,191.2 4,992.7 198.5 44.1 154.4 Ri
Slide 29: 2014/15 Turnover by Segment (restated for continuing operations)
2014/15 Turnover by Segment (restated for continuing operations) In €m Q1 2014/15 Q2 2014/15 Q3 2014/15 Q4 2014/15 FY 2014/15 Northern Region 1,124.9 1,033.9 1,866.3 2,989.8 7,014.9 Central Region 1,058.2 876.0 1,406.1 2,260.6 5,600.9 Western Region 487.3 412.4 760.4 1,186.9 2,847.0 Source Markets 2
Slide 30: 2015/16 H1 Underlying EBITA by Segment
2015/16 H1 Underlying EBITA by Segment* Change ex In €m H1 2015/16 H1 2014/15 Change FX FX Northern Region -110.9 -109.6 -1.3 -3.0 1.7 Central Region -109.8 -93.7 -16.1 0.3 -16.4 Western Region -75.7 -60.9 -14.8 - -14.8 Source Markets -296.4 -264.2 -32.2 -2.7 -29.5 Riu 153.6 113.8 39.8 -3.3 43.1 Rob
Slide 31: 2014/15 Underlying EBITA by segment (restated)
2014/15 Underlying EBITA by segment (restated for continuing operations) In €m Q1 2014/15 Q2 2014/15 Q3 2014/15 Q4 2014/15 FY 2014/15 Northern Region -45.4 -64.2 107.0 532.9 530.3 Central Region -20.2 -73.5 -4.2 201.4 103.5 Western Region -11.9 -49.0 -10.3 139.9 68.7 Source Markets -77.5 -186.7 92.5
Slide 32: Adjustments
Adjustments €m H1 2015/16 H1 2014/15 Restructuring expense -5 -14 Losses on disposals -1 -1 Other one-off items -11 -42 PPA -34 -28 Total Adjustments -51 -85 o/w merger-related -7 -12 * At constant currency rates and restated for discontinued operations 32 TUI GROUP | H1 2015/16 Results | 11 May 201
Slide 33: Net Interest Result
Net Interest Result €m H1 2015/16 H1 2014/15 Debt related interest -58 -77 Non-debt related charge -34 -38 Interest income 10 8 Net interest result -82 -107 o/w cash interest 41 49 33 TUI GROUP | H1 2015/16 Results | 11 May 2016
Slide 34: Source Market KPIs H1
Source Market KPIs* H1 Direct Distribution Online Distribution Customers (000) 15/16 14/15 15/16 14/15 15/16 14/15 UK 91% 90% 57% 54% 1,539 1,504 Nordics 89% 89% 71% 69% 596 598 Germany 43% 43% 14% 14% 2,065 2,062 Benelux 72% 70% 56% 54% 1,520 1,462 Total Source Markets 71% 70% 43% 41% 6,022 5,999 *
Slide 35: Source Markets KPIs H1 2015/16
Source Markets KPIs H1 2015/16 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 2 2,135 0 90 3 8611 -1 -111 Central Region -2 2,215 1 45 0 14 -16 -110 Western Region* 2 1,671 1 70 2 53 -15 -75 -3 operational Source
Slide 36: Hotels & Resorts KPIs H1 2015/16
Hotels & Resorts KPIs H1 2015/16 Capacity1 Revenue/bed2 Occupancy3 Underly. EBITA4 y-o-y (%) (`000) y-o-y (%) (€) y-o-y (ppts) (%) y-o-y (€m) (€m) 64.7 81 154 2 8,370 8 4 88 40 4 1,143 0 90.4 -2 64 -14 -4 Other (incl former TUI 2 -66 Travel Hotels) TUI H&R (incl former -1 13,970 1 28 9 61.6 76 84 TU
Slide 37: Cruises KPIs H1 2015/16
Cruises KPIs H1 2015/16 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) 40 1,633 Flat 147 Flat 101 13 30* -1 166 7 561 1 75 9 10 * Equity result 37 TUI GROUP | H1 2015/16 Results | 11 May 2016
Slide 38: Source Markets Current Trading - Summer 2016
Source Markets Current Trading - Summer 2016 Current trading1 Programme Revenue2 Customers2 ASP2 y-o-y variation (%) sold UK 7 7 0 65% Nordics -4 -9 6 54% Germany -2 -3 1 60% Benelux -1 Flat 0 -1 55% Source Markets 59% 2 1 1 1. These statistics are up to 1 May 2016 and are shown on a constant curren
Slide 39: Key Sources of Funding 31 March 2016
Key Sources of Funding 31 March 2016 Interest % Instrument Issue Maturity Amount €m p.a.* Revolving Credit Facility Sep 14 Dec 20 1,750 1.55 High Yield Bond Sep 14 Oct 19 300 4.5 Finance leases Various Various 940 Various *Upgrade of our rating by Moody’s has reduced our RCF interest margin from 1.7
Slide 40: 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 • Tour operator charter capacity remixed for Summer 2016 • Adverse travel advice to Sharm el Sheik airport from all major source markets Egy
Slide 41: Aircraft Order Book Deliveries
Aircraft Order Book Deliveries 15/16 16/17 17/18 18/19 19/20 20/21 B737 NG - - - - - - B737-MAX - - 5 14 14 10 B787-8 - - - - - - B787-9 1 1 1 - - - Firm order book deliveries 2016-2021 1 1 6 14 14 10 Financial Years (FY) ending 30 September; figures correct as at 31 March 2016 In addition to the ab
Slide 42: Aircraft Commitments by Financing Type
Aircraft Commitments by Financing Type Operating Lease* Finance Lease Owned Held for Sale Total As at 31 March 2015 119 13 7 1 140 Order book financing 1 2 1 - 4 External Lessor deliveries 11 - - - 11 External Lessor returns (7) - - - (7) Disposal - - - (1) (1) As at 31 March 2016 124 15 8 - 147 * I
Slide 43: Financial Calendar
Financial Calendar 2016 11 August 2016 Q3 Report 2015/16 28 September 2016 Pre-close trading update 8 December 2016 Annual Report for financial year 2015/16 February 2017 Annual General Meeting 43 TUI GROUP | H1 2015/16 Results | 11 May 2016