TUI GROUP INVESTOR PRESENTATION German Investment Conference UniCredit / Kepler Munich, 26-27 September 2012
Future-related 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 assumptions involve risks and uncertainties which may give rise to situations in which the actual results differ substantially from the expected ones. The potential reasons for such differences include market fluctuations, the development of world market fluctuations, the development of world market commodity prices, the development of exchange rates or fundamental changes in the economic environment. TUI does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of these materials. TUI AG Investor Relations Page 2
TUI group Current structure Tourism Tour operator Hotels Cruises 22%-stake Container line Exit Core business TUI AG Investor Relations Page 3
Tourism Three key trends for TUI Key-Trend Trend: Content Differentiated & exclusive product Specialist & Activity products H Trend: Online Go online, search, compare, book & share Trend: Emerging Markets New markets growth shifting away from Europe TUI Position Increase of differentiated products in all markets Further development of brand positioning (e.g. Hotels & Cruises concepts) Development of best-inclass multi-channel distribution Online transformation of production and sales Focused expansion of activities with market-specific business models Incoming activities in Europe may also benefit from Emerging Markets boom TUI AG Investor Relations Page 4
Tourism TUI Travel
TUI Travel Overview Europe s leading tourism company About 30 million customers from above 30 source markets Bundling of sales (on- and offline), tour operator and flight activities Leading provider of accommodation and destination services TUI AG Investor Relations Page 6
TUI Travel Business model Modern package holidays Component Flights Hotel beds Car hire, transfers, excursions Exclusive / differentiated holidays Tailor-made holidays Self-selected individual components Customer Online Retail Call Centre Dynamic packaging Providing choice and flexibility for the customer TUI AG Investor Relations Page 7
Tourism TUI Travel Business units Mainstream Modern Mainstream: Differentiated and exclusive product 145 aircraft, 3,500 retail shops Market leadership Specialist & Activity World s largest provider of specialist and experiential travel Over 100 brands Emerging Markets Growing portfolio of travel businesses Specific source markets: Russia & CIS, India and China Accommodation & Destinations Only A&D service provider with global reach Accommodation online services Destination services Leading position in cruise handling Making travel experiences special TUI AG Investor Relations Page 8
Tourism TUI Hotels & Resorts
Tourism TUI Hotels & Resorts Overview No 1 leisure hotelier in Europe with 248 hotels and approx. 157,300 beds* Most hotel companies with local partners Focus on four star category High occupancy rates through access to TUI Travel customers and direct distribution Selective growth in existing and new destinations * per FY 2010/11 TUI AG Investor Relations Page 10
Tourism TUI Hotels & Resorts Hotel brands Hotels by categories (%) 61 29 10 3 stars 4 stars 5 stars Owned hotel beds by region (%) Financing structure (%) 12% 23% 10% Western Med. 6% 3% 31% North Africa Total 157,300 Caribbean 38% 53% Eastern Med. 24% Other Management Ownership Lease Franchise TUI AG Investor Relations Page 11
Club Hotel Riu Karamboa, Cape Verdes TUI AG Investor Relations Page 12
ROBINSON Club Maldives TUI AG Investor Relations Page 13
Tourism Cruises
Tourism Cruises Overview Hapag-Lloyd Cruises operates 4 ships in the German luxury and expedition segment Strategic fleet expansion with Europa 2 in 2013, will strengthen the luxury segment Joint Venture (50/50) with Royal Caribbean Cruises Ltd. Operating 2 ships in the premium-volume segment Third ship to be delivered in 2014 TUI AG Investor Relations Page 15
Tourism Cruises Fleet expansion MS Europa 2 Hapag-Lloyd Cruises TUI Cruises New build TUI Cruises New build Luxury segment 516 passengers Spring 2013 New build Premium-volume segment 2,500 passengers 2014 Continue to participate in the on-going growth of the German cruise market Strengthening position in luxury and premium segment Fleet expansion with attractive 3 rd party financing and minimal cash requirements for TUI AG TUI AG Investor Relations Page 16
Financials & Outlook TUI AG Investor Relations Seite 17
Tourism Seasonality of earnings Oct - Dec Jan - Mar Apr - Jun Jul - Sep Q4 winter season Q3 Q1 Q2 summer season TUI AG Investor Relations Page 18
Outlook FY 2011/12 Key figures (in m) Outlook 9M 2011/12 FY 2010/11 FY 2011/12e Turnover 11,455 +7% 17,480 Underlying EBITA -269 +4% 600 Net result* -393-15% 118 positive * before minorities TUI AG Investor Relations Page 19
Outlook FY 2011/12 Expectations for underlying EBITA TUI Travel Positive effects of business improvement programme Improved margins through higher sales of differentiated products Opportunity: positive FX effect, if GBP remains strong vs. Risk: development of consumer sentiment in the key source markets Earnings expected to rise y-o-y TUI Hotels & Resorts Moderate increase in capacity and bednightssold Improvement in occupancy rates and average selling prices Earnings expected to rise significantly y-o-y Cruises Continued growth in the German cruise market Despite positive operating performance, earnings are expected to decrease due to start-up and financing costs for the fleet expansion TUI Group TUI AG Investor Relations Conference Call Q3 11/12 Group underlying earnings expected to rise Positive Group result expected for FY 2011/12 TUI AG Investor Relations Page 20
Group balance sheet Significant reduction in net financial debt m 3000 2500 2000 1500 1000 2,238 500 817 0 09/2010 09/2011 09/2012e TUI AG Investor Relations Page 21
Reduction in Hapag-Lloyd investment Cash inflow for TUI TUI stake in Hapag-Lloyd (39,5%) Feb Apr 2012 225m Redemption / sale of remaining financing granted to Hapag-Lloyd 29 June 2012 475m Sale of 17.4% stake to Albert Ballin consortium -17.4% 700m ~22% Exit options for remaining stake: IPO 3rd party investor TUI AG Investor Relations Page 22
Outlook Group strategy Exit remaining Hapag-Lloyd stake Increasing proportion of sales of differentiated and exclusive product Increasing controlled distribution, in particular strengthening online sales Deliver on new business improvement programme Further expanding in growth markets like Russia, China and India Focusing on a high-yield, differentiated hotel portfolio in TUI Hotels & Resorts Expanding the market share in the German-speaking premium and volume market for cruises The TUI Group is well prepared to cope with a challenging environment TUI AG Investor Relations Page 23
Appendix
Turnover and earnings 9M 11/12 Turnover ( m) Q3 11/12 Q3 10/11 % TUI Travel 4,563.5 4,247.3 +7.4 TUI Hotels & Resorts 90.6 78.9 +14.8 Cruises 59.3 48.8 +21.5 Central Operations 11.3 12.5-9.6 Group 4,724.7 4,387.5 +7.7 9M 11/12 9M 10/11 % 10,996.4 10,331.5 +6.4 262.6 236.6 +11.0 161.6 145.4 +11.1 34.6 38.3-9.7 11,455.2 10,751.8 +6.5 Underlying EBITA ( m) Q3 11/12 Q3 10/11 % TUI Travel 89.2 87.5 +1.9 TUI Hotels & Resorts 35.4 16.8 +110.7 Cruises -2.2 0.2 n.m. Central Operations -20.1-8.3-142.2 Group 102.3 96.2 +6.3 9M 11/12 9M 10/11 % -297.2-297.6 +0.1 90.5 53.6 +68.8-7.9-2.7-192.6-54.6-32.2-69.6-269.2-278.9 +3.5 TUI AG Investor Relations Page 25
Turnover and earnings FY 2010/11 Turnover ( m) FY 10/11 FY 09/10 % TUI Travel 16,867.0 15,754.8 +7.1 TUI Hotels & Resorts 362.6 353.2 +2.7 Cruises 200.8 178.7 +12.4 Central operations 49.9 63.4-21.3 Group 17,480.3 16,350.1 +6.9 Underlying EBITA ( m) FY 10/11 FY 09/10 % TUI Travel 500.1 484.6 +3.2 TUI Hotels & Resorts 145.3 148.0-1.8 Cruises 11.2 7.6 +47.4 Central operations -56.5-51.0-10.8 Group 600.1 589.2 +1.8 TUI AG Investor Relations Page 26
Tourism TUI Travel Trading update Summer 2012 Current trading 1 y-o-y variation (%) ASP² Sales² Customers² Capacity³ MAINSTREAM UK +9 +4-5 -6 Nordic Region +3 +8 + 6 + 4 Northern Region +8 +5-3 Germany +3 +5 +2-7 Austria +2-2 -3 Switzerland -6 +5 + 12 Poland +5 +39 + 32 Central Europe +3 +5 +2 France tour operators +2-4 -6 Belgium -3 + 2 +5 Netherlands +4 + 7 +3 Western Europe Flat +2 +1 SPECIALIST & ACTIVITY N/A + 3 N/A A&D 4 +7 +17 +9 1) These statistics are up to 29 July 2012 and are shown on a constant currency basis 2) These statistics relate to all customers whether risk or non-risk Risk only 3) These statistics include all risk capacity programmes 4) These statistics refer to online accommodation businesses only; Sales refer to total transaction value (TTV) and customers refers to roomnights
Tourism TUI Hotels & Resorts Operating data (9M) Hotel Capacity ('000) 1 Occupancy (%)² Average revenue per bed ( )³ 9M 11/12 9M 10/11 % 9M 11/12 9M 10/11 % p. 9M 11/12 9M 10/11 % Riu 12,646 12,196 +3.7 80.0 79.0 +1.0 47.93 45.85 +4.5 Robinson 1,975 1,931 +2.3 66.5 62.3 +4.2 85.68 85.82-0.2 Iberotel 1,819 1,867-2.6 64.0 56.8 +7.2 39.23 38.34 +2.3 Grupotel 501 504-0.6 69.1 68.6 +0.5 38.60 37.54 +2.8 Grecotel 271 278-2.5 60.0 62.1-2.1 57.03 56.97 +0.1 Other 87 261-66.7 49.4 37.2 +12.2 62.16 46.77 +32.9 Total 17,299 17,037 +1.5 76.0 73.5 +2.5 50.84 49.04 +3.7 1) Group owned or leased hotel beds multiplied by number of open days per quarter 2) Occupied beds divided by capacity 3) Arrangement turnover divided by occupied beds TUI AG Investor Relations Page 28
Tourism Cruises Operating data Q3 11/12 Q3 10/11 9M 11/12 9M 10/11 Occupancy (%) 76.4 75.7 75.5 73.6 Passenger days ('000) 100.9 80.2 256.6 223.5 Average rate ( )* 358 390 377 406 Q3 11/12 Q3 10/11 9M 11/12 9M 10/11 Occupancy (%) 99.1 97.0 99.1 97.1 Passenger days ('000) 328.6 257.1 1,024.6 597.2 Average rate ( )* 169 167 142 141 *per day and passenger TUI AG Investor Relations Page 29
Sustainable Development at TUI Satisfying our guests is our foremost priority. Our values set our course for achieving this goal. Quality, variety, innovation, sustainability and growth are firmly anchored in our entrepreneurial thinking and activity at TUI. They point the way in our quest to develop unmistakeable products and to delight our customers. Our Priorities Our Listings Environment Climate protection Preserving biodiversity Efficiency of resources Certification of environmental management systems Employees Staff development Diversity in our corporate culture Work-life balance TUI AG is the sector leader in the Dow Jones Sustainability Index 2012/13. Society Social commitment in the holiday destinations Supporting human and children s rights Fair working conditions Product Sustainable product development Consumer information and safety DAXglobal Sarasin Sustainability Germany For further information please visit our website: www.tui-group.com/en/sustainability
Financial calendar 14 August 2012 Third Quarter 2011/12 19 December 2012 Financial Year 2011/12 13 February 2013 Annual General Meeting TUI AG Investor Relations Page 31
Contact TUI Investor Relations investor.relations@tui.com +49-511-566-1425