Tui Ag · XETR:TUI1
Tui — Q3 2022 Earnings Presentation
35 slides from Tui's earnings presentation, Aug 10, 2022
Slide 1: FY22 Q3/9M Results
FY22 Q3/9M RESULTS 10 Aug 2022
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 FY22 Q3 Highlights & Bookings Update 2 FY22 Q3/9M Results 3 Summary 4 Appendix 3
Slide 4: Q3 first broadly break-even quarter post pandemic
Q3 first broadly break-even quarter post pandemic - clearly profitable excluding flight disruption costs FY22 Q3 delivering further operational and financial progress • In Q3 we operated 82% of capacity with customers at 84% of 2019 levels, Summer 22 remains well on track to deliver close to 19 leve
Slide 5: Summer 22 momentum remains encouraging
Q3 first broadly break-even quarter post pandemic - clearly profitable excluding flight disruption costs SUMMER 22 – momentum remains encouraging, we are confident the season will be close to 2019 levels • S22 cumulative booked position improved by 5%pts, now being 90% of S19 levels with strong ASPs
Slide 6: Strong operational performance in Q3, first positive Und. EBIT in Holiday Experiences
Strong operational performance in Q3, with a first positive Und. EBIT post pandemic of €122m in Holiday Experiences Hotel & Resorts Cruises TUI Musement (Available bednights & Occupancy %) (Available passenger days & Occupancy %) (Excursions sold) Benefits of integration and strong Significant ramp
Slide 7: Markets & Airlines ramp up continued in Q3
Markets & Airlines ramp up continued in Q3, achieving high load factors, overall performance impacted by flight disruptions Markets & Airlines (Departed Pax & Load Factor %) Total Northern Central Western Departed pax close to 2019 Clear pent up demand with First break-even quarter levels, however,
Slide 8: Q3 Und. EBIT broadly break-even at -€27m
Q3 Und. EBIT broadly break-even at -€27m, excluding the impact from additional flight disruptions costs of (€75m) clearly profitable at +€48m HOLIDAY EXPERIENCES MARKETS & AIRLINES FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 105 Q3 YoY Q3 YoY Und. EBIT €m Und. EBIT €m HOTELS & Avail. Bednights: 10.7m +62% NORTH
Slide 9: May & June disruption costs predominately incurred in the UK
May & June disruption costs predominately incurred in the UK – Q4 levels still remain elevated, however, expected to normalise for future seasons Impact mainly due to delays, not cancellations experienced by other airlines Reasons Mitigation Financial Impact • Main impact in UK • Aircraft resilience
Slide 10: TUI customers impacted by industry wide challenges
TUI customers regrettably impacted by industry wide challenges, but TUI remains committed to operate the Summer with minimum cancellations TUI Airline has carried 4.8m1 passengers in May & June with 96%2 of customers arriving without any major impact. Customers which regrettably experienced more sig
Slide 11: Solid pipeline of 11.5m bookings for Summer 22
Solid pipeline of 11.5m bookings for Summer 22, with 3.9m bookings added since H1 – cumulative position 90% of S19 levels with strong ASP S22 Cumulative Net bookings as % of S19 Versus 2019 S22 S22 (Jul-Aug) BOOKINGS1 -10% -7% +5%pts +18% ASP +20% Encouraging booking momentum post Holding up strongl
Slide 12: Summer 22: diversified and integrated model a clear advantage
Summer 22: Our diversified and integrated model continues to be a clear advantage for the Holiday Experiences segment CURRENT TRADING ENVIRONMENT HOTELS & • Expect the Canaries, Balearics, Greece and Turkey to be key summer destinations for both Markets & Airlines RESORTS and third-party customers •
Slide 13: Agenda
AGENDA 1 FY22 Q3 Highlights & Bookings Update 2 FY22 Q3/9M Results 3 Summary 4 Appendix 13
Slide 14: CFO priorities
CFO priorities Support & Structure growth Cash & Balance Sheet People transformation 14
Slide 15: Successful €0.4bn Capital Increase to accelerate repayment of Corona state aid
Further progress with successful €0.4bn Capital Increase to accelerate repayment of Corona state aid ABB Transaction Overview Transaction 162.3m shares issued via non-preemptive capital increase of 10% utilising TUI AG’s existing Structure capital authorisations Proceeds €425m gross proceeds raised
Slide 16: Income Statement – Q3 Und. EBIT broadly break-even
Income Statement – Q3 Und. EBIT broadly break-even, significant improvement YoY upon return to more normalised operating environment REVENUE • Q3 Revenue up €3.8bn YoY, reflecting a more normalised pre-pandemic travel environment and ramp-up of operations versus prior year In €m (IFRS 16) FY22 Q3 FY
Slide 17: Q3 result – Und. EBIT bridge
Q3 result – Und. EBIT broadly break-even at €27m loss, excluding the impact from flight disruptions costs Q3 Und. EBIT clearly profitable at +€48m FY21 Q3 vs. FY22 Q3 UNDERLYING EBIT IN €M -9 48 -75 -27 Holiday Experiences: +€308m • Hotels & Resorts 10.7m avail. bednights, up 4.1m YoY and 418 occupa
Slide 18: Q3 Cash flow driven by positive EBITDA and working capital inflow
Q3 Cash flow driven by positive EBITDA and significant WC inflow from customer bookings WORKING CAPITAL In €m (IFRS 16) FY22 Q3 FY21 Q3 FY22 9M FY21 9M • Inflow driven by increase in customer deposits as a result of strong bookings and pricing development Underlying EBITDA 181 -449 -8 -1,305 Adjustm
Slide 19: Strong liquidity position of €3.9bn
Strong liquidity position of €3.9bn1 post €1.7bn2 repayment of total Corona state aid SUMMARY – LIQUIDITY DEVELOPMENT ~ €bn 1st Hand back of government funding - April -0.7 Cash & avail. fac. 6 May 2022 3.7 2nd Hand back – WSF SP2 repayment -0.7 2nd Hand back – KfW cancellation -0.3 Net proceeds ABB
Slide 20: Strong reduction in net debt by €0.6bn to €3.3bn
Strong reduction in net debt by €0.6bn to €3.3bn FY22 H1 to FY22 9M In €m FY22 9M FY22 H1 In €m FY22 9M FY22 H1 IFRS 16 IFRS 16 QoQ ∆ IFRS 16 IFRS 16 QoQ ∆ Opening net debt as at 1 October -4,954 -4,954 - Financial liabilities -5,013 -5,572 560 FCF after Dividends 1,332 129 1,203 - Lease liabilities
Slide 21: Agenda
AGENDA 1 FY22 Q3 Highlights & Bookings Update 2 FY22 Q3/9M Results 3 Summary 4 Appendix 21
Slide 22: Priorities to transform TUI into a digital platform company
Our priorities to transform TUI into a digital platform company enables the delivery of our mid-term ambitions POCKETS OF FUTURE GROWTH Drive digitalisation, Growth through asset- Execute Global Expand tours & activity dynamic packaging & right financing Realignment segment component sales structure
Slide 23: Appendix
APPENDIX
Slide 24: Global Realignment Programme on track for ~€400m cost reduction
Global Realignment Programme on track to meet ~€400m p.a. cost reduction target PILLARS RECENT PROGRESS PHASING REDUCE P&L view COSTS • ~7k reduction in FTEs to date already agreed ~€400m p.a / 100% driving the majority of the cost savings • A major part of the cost reduction measures have €303m bee
Slide 25: Movement in Net Debt
Movement in Net Debt FY21 YE to FY22 9M In €m FY22 9M FY21 YE In €m FY22 9M FY21 FY21 9M YE IFRS 16 IFRS 16 9M ∆ IFRS 16 IFRS 16 YoY 9M ∆ Opening net debt as at 1 October -4,954 -6,421 1,467 Financial liabilities -5,013 -6,550 -7,887 1,537 2,874 FCF after Dividends 1,332 143 1,189 - Lease liabilitie
Slide 26: FY22 Modelling Assumptions per 10 August 2022
FY22 Modelling Assumptions per 10 August 2022 FY22e1 FY21A Revenue Expect significant increase year-on-year €4,732m Underlying EBIT After two years of turbulence, expect return to significantly positive Und. EBIT2 -€2,075m Adjustments3 -€90m to -€110m +€63m -€450m to -€475m (prior -€380m to -€425m)
Slide 27: Successful €0.4bn Capital Increase to accelerate repayment of Corona state aid
Further progress with successful €0.4bn Capital Increase to accelerate repayment of Corona state aid Transaction Overview Summary - German government facilities €bn 4.3 162.3m shares issued via non-preemptive capital Transaction -0.2 increase of 10% utilising TUI AG’s existing capital KfW RCF (secur
Slide 28: Financing facilities and support packages overview
Financing facilities and support packages overview per 5 Aug 2022 Support Facility Instrument Utilisation €m Debt/equity Maturity date package # €m - 1,4541 216m drawn Debt RCF Bank - 1901 guarantee line - July 2024 (unsecured) facilities 1&2 2,1002 Fully undrawn Debt Schuldschein - 425 - Debt July
Slide 29: FY22 Q3 Revenue by Segment
FY22 Q3 Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)1 FY22 Q3 FY21 Q3 In €m Change incl FX FX Change ex FX IFRS 16 IFRS 16 Hotels & Resorts 259.5 74.0 185.5 11.3 174.2 - Riu 199.6 49.1 150.5 9.5 141.0 - Robinson 37.5 15.2 22.3 1.6 20.7 - Blue Diamond2 - - - - - - Other 22.5 9
Slide 30: FY22 Q3 Underlying EBITDA by Segment
FY22 Q3 Underlying EBITDA by Segment1 FY22 Q3 FY21 Q3 In €m Change incl FX FX Change ex FX IFRS 16 IFRS 16 Hotels & Resorts 147.9 -18.8 166.6 5.1 161.5 - Riu 99.8 14.4 85.4 3.8 81.6 - Robinson 14.3 -3.3 17.6 -0.0 17.6 - Blue Diamond 12.6 -6.6 19.2 1.4 17.8 - Other 21.2 -23.3 44.5 - 44.5 Cruises 20.7
Slide 31: FY22 Q3 Underlying EBIT by Segment
FY22 Q3 Underlying EBIT by Segment1 FY22 Q3 FY21 Q3 In €m Change incl FX FX Change ex FX IFRS 16 IFRS 16 Hotels & Resorts 104.9 -70.3 175.2 4.1 171.1 - Riu 77.5 -8.4 85.9 2.9 82.9 - Robinson 5.4 -12.8 18.2 -0.2 18.3 - Blue Diamond 12.6 -6.6 19.2 1.4 17.8 - Other 9.4 -42.6 52.0 -0.0 52.0 Cruises 3.0
Slide 32: FY22 9M Revenue by Segment
FY22 9M Revenue by Segment (excludes Intra-Group Revenue and JVs/associates)1 FY22 9M FY21 9M In €m Change incl FX FX Change ex FX IFRS 16 IFRS 16 Hotels & Resorts 638.8 157.9 480.9 16.9 464.0 - Riu 514.0 108.3 405.7 14.4 391.3 - Robinson 76.2 28.5 47.6 2.1 45.5 - Blue Diamond2 - - - - - - Other 48.
Slide 33: FY22 9M Underlying EBITDA by Segment
FY22 9M Underlying EBITDA by Segment1 FY22 9M FY21 9M In €m Change incl FX FX Change ex FX IFRS 16 IFRS 16 Hotels & Resorts 322.8 -105.9 428.7 9.7 419.0 - Riu 252.5 -11.7 264.2 5.9 258.2 - Robinson 23.6 -13.6 37.2 0.4 36.8 - Blue Diamond 38.3 -33.8 72.1 3.2 68.8 - Other 8.4 -46.8 55.3 0.1 55.1 Cruis
Slide 34: FY22 9M Underlying EBIT by Segment
FY22 9M Underlying EBIT by Segment1 FY22 9M FY21 9M In €m Change incl FX FX Change ex FX IFRS 16 IFRS 16 Hotels & Resorts 189.7 -268.6 458.3 8.0 450.3 - Riu 183.6 -81.7 265.3 4.6 260.6 - Robinson -3.5 -42.1 38.6 0.1 38.5 - Blue Diamond 38.3 -33.8 72.1 3.2 68.8 - Other -28.6 -111.0 82.3 -0.0 82.4 Cru
Slide 35: Analyst and Investor Enquiries
ANALYST AND INVESTOR ENQUIRIES Nicola Gehrt, Director, Head of Group Investor Relations Tel: +49 (0)511 566 1435 Adrian Bell, Senior Investor Relations Manager Tel: +49 (0)511 566 2332 James Trimble, Investor Relations Manager Tel: +44 (0)1582 315 293 Stefan Keese, Investor Relations Manager Tel: +4