records very successful financial year 2013/2014 Merger with TUI Travel PLC about to be closed Significant outperformance against earnings targets in full financial year 2013/2014; earnings growth driven by all segments Underlying EBITA rises by 14 per cent to 869 million euros / Reported EBITA +30 per cent / Net result +71 per cent Board proposes dividend of 0.33 euros Outlook 2014/2015: Group turnover +2-4 per cent / Break-even for Hapag-Lloyd cruises confirmed Successful merger with TUI Travel about to be completed / New TUI shares to be listed on the premium segment of the London Stock Exchange from 17 December Joussen: Thanks to full vertical integration we are excellently positioned for further accelerated growth. Hanover, 10 December 2014. recorded a very successful performance in the completed financial year 2013/14. The announced earnings targets were significantly exceeded in the reporting period, with all segments contributing to the growth achieved. While Group turnover grew by 1 per cent to 18.71 billion euros (previous year 18.48 billion euros), the operating result (underlying EBITA) rose by 14 per cent to 868.5 million euros (previous year 761.9 million euros). TUI had previously announced its guidance of an increase in underlying EBITA of at least 12 per cent. Reported EBITA grew even more strongly with an increase of 30 per cent to 773.8 million euros (previous year 594.8 million euros). The Group s guidance for this indicator had been a range of between 16 and 23 per cent growth. Due to the strong development of the Group s operating performance, lower interest costs and a decline in one-off expenses, the net result before minorities grew considerably. At 283.9 million euros, it was 71 per cent up year-on-year (166.4 million euros). Fritz Joussen, CEO of : We have delivered on our promises: We have significantly outperformed against our earnings targets. Our onetui efficiency programme has been implemented consistently and is truly paying off. We have now launched the growth phase, which will gain momentum through the successful merger with TUI Travel PLC. As a fully integrated tourism group, we are perfectly positioned for further, accelerated growth in the future. This will create value for our shareholders and secure jobs in the long term. Thanks to the excellent performance of the Group in the financial year 2013/14, the Executive Board can propose a dividend of 0.33 euros to the Annual General Meeting in February 2015, as already an-
nounced in the official document in the framework of the merger with TUI Travel PLC. sees itself on track to achieve the long-term targets it has set for itself. Thanks to the successful implementation of the measures of the onetui programme, the Group is expecting the operating result (underlying EBITA) to grow by 10 to 15 per cent in the current financial year 2014/2015. The guidance of about 1 billion euros for the underlying EBITA which the company aims at is coming into reach already within the current financial year. This set target is also valid after the merger with TUI Travel PLC. Besides, turnover of the new integrated Group is expected to grow between 2 and 4 per cent in the fiscal year 2014/2015. The break-even for Hapag-Lloyd Cruises has been confirmed for this reporting period. Successful merger with TUI Travel about to be closed / New TUI shares to be listed on the premium segment of the London Stock Exchange from 17 December The merger with TUI Travel PLC, initiated in the period under review, to form the world s number one integrated tourism group has been successfully implemented within a few months only and is about to be completed. The new TUI shares for the minority shareholders of TUI Travel PLC will be issued on 12 December. The TUI Travel PLC shares will then be suspended from trading for several days before the initial listing of the shares in the new TUI on the premium segment of the London Stock Exchange will be effected on 17 December. The new TUI shares will then replace the shares in TUI Travel PLC. In addition, the shares can be traded in euros in the regulated market of the Frankfurt Stock Exchange. Overview of individual segments TUI Travel In the period under review, TUI Travel increased its turnover by 0.9 per cent to 18.0 billion euros (previous year 17.8 billion euros). The operating result rose by 10.5 per cent to 707.6 million euros (previous year 640.5 million euros). The very good result was driven by the business performance in the UK, Germany and the Netherlands. The strategy of focusing on the Mainstream business, the package travel segment from retail to tour operators to flight operations, has proven to be a pillar for sustainable, profitable growth. The operating result also benefited from the cost savings achieved in the framework of an efficiency programme. Hotels & Resorts: RIU and Robinson drive growth Hotels & Resorts managed to increase both turnover and operating result due to the very good performance of Riu and Robinson. In financial year 2013/14, total turnover by the Sector climbed by 4.2 per cent year-on-year to 861.3 million euros
(previous year 826.6 million euros). The operating result of TUI Hotels & Resorts grew by 2.7 per cent to 202.5 million euros (previous year 197.2 million euros). Adjusted for the income from the sale of a RIU hotel generated last year, the operating result even rose by 11.1 per cent year-on-year. Despite an increase in capacity, the Riu brand increased the occupancy rates of its hotels and achieved higher average revenues per bed. The Riu Group also improved the return on invested capital (ROIC) from 12 per cent to 13 per cent, exceeding the capital cost target of 11 per cent. Robinson Clubs also delivered a strong operating performance, increasing average revenues per bed and improving their profitability. TUI s premium clubs increased ROIC from 6 per cent to 10 per cent, further consolidating the basis for future expansion and internationalisation. Following the announcement of the expansion of Riu hotels in Mauritius in the summer, the Robinson Club portfolio will be further expanded in 2015 with the opening of the Robinson Club Djerba Bahiya in Tunisia. Cruises turnaround target outperformed /Break-even for Hapag-Lloyd Cruises in the fiscal year 2014/2015 confirmed The Cruises Sector of outperformed against the internal expectations in the period under review. The Sector with the two companies Hapag-Lloyd Kreuzfahrten and TUI Cruises posted an operating result of +9.7 million euros, almost 24 million euros up on the prior year (-13.9 million euros). TUI Cruises, the joint venture with Royal Caribbean Cruises, showed a very positive development in financial year 2013/14 and successfully launched the company s first newbuild, Mein Schiff 3, in the market. Occupancy of the fleet, currently comprising three cruise ships, was improved by 1 percentage point to 102 per cent; the average rate per day per passenger also rose to 171 euros, up by 9 per cent year-on-year. With Mein Schiff 4, to be commissioned in June 2015, and the two newbuilds ordered, Mein Schiff 5 (2016) and Mein Schiff 6 (2017), TUI Cruises will consistently continue its growth path in the premium cruises market segment. Occupancy of the luxury and expedition cruise ships at Hapag-Lloyd Kreuzfahrten fell slightly by 2 percentage points year-on-year to 68 per cent. However, overall the Sector recorded a positive development in the second half of the financial year, in particular in relation to the two expedition cruise ships and thanks to the amortisation of the start-up costs for the Europa 2 luxury cruise ship. The average rate per day per passenger in the period
under review climbed by 7 per cent to 450 euros. For the fiscal year 2014/2015 the Group has confirmed that Hapag-Lloyd will break-even. About is Europe s leading travel group. Alongside the strategic control of the three business sectors TUI Travel, TUI Hotels & Resorts and Cruises, also performs classical holding functions. As an integrated tourism group, TUI operates along the entire tourism value chain. Around 74,000 employees worldwide create unique travel experiences for our customers and contribute to our mission Discover your smile. Global responsibility for sustainable economic, ecological and social action is an indispensable element of our corporate culture and is reflected in our commitment to more sustainable tourism, which has been in place for more than 20 years. In financial year 2013/14, recorded turnover of 18.7 billion euros and an operating result in tourism of 869 million euros. More detailed information is available at. Contact : Nicola Gehrt, phone +49 (0) 511 566 1435 Ina Klose, phone +49 (0) 511 566 1318
Key Figures 2013/14 Sector turnover million 2013/14 2012/13 Var. % Tourism 18,700.2 18,460.1 + 1.3 TUI Travel 17,954.6 17,796.0 + 0.9 TUI Hotels & Resorts 464.5 403.1 + 15.3 Cruises 281.0 261.0 + 7.7 Central Operations 14.5 17.4 16.7 Group 18,714.7 18,477.5 + 1.3 Underlying sector EBITA million 2013/14 2012/13 Var. % Tourism 919.8 823.8 + 11.7 TUI Travel 707.6 640.5 + 10.5 TUI Hotels & Resorts 202.5 197.2 + 2.7 Cruises 9.7 13.9 n / a Central Operations 51.3 61.9 + 17.1 Group 868.5 761.9 + 14.0 Sector EBITA million 2013/14 2012/13 Var. % Tourism 825.1 673.0 + 22.6 TUI Travel 597.9 532.8 + 12.2 TUI Hotels & Resorts 203.0 170.6 + 19.0 Cruises 24.2 30.4 n / a Central Operations 51.3 78.2 + 34.4 Group 773.8 594.8 + 30.1
Income Statement million 2013/14 2012/13 restated Turnover 18,714.7 18,477.5 Cost of sales 16,436.6 16,436.3 Gross profit 2,278.1 2,041.2 Administrative expenses 1,577.3 1,557.3 Other income 35.9 37.1 Other expenses 2.1 10.8 Imperment of goodwill 8.3 Financial income 36.2 42.7 Financial expenses 305.2 292.5 Share of result of joint ventures and associates + 40.0 + 59.3 Earnings before income taxes 505.6 311.4 Reconciliation to underlying earnings: Earnings before income taxes 505.6 311.4 plus: Loss on Container Shipping measured at equity 38.9 22.3 plus: Net Interest expense and expense from the measurement of interest hedges 229.3 252.8 plus: Impairment of goodwill 8.3 EBITA 773.8 594.8 Adjustments: less: Gain on disposals (prior year loss) 3.6 1.4 plus: Restructuring expense 43.6 62.3 plus: Expense from purchase price allocation 73.7 75.0 less: Income (prior year expense) from other one-off items 19.0 28.4 Underlying EBITA 868.5 761.9 Earnings before income taxes 505.6 311.4 Income taxes 221.7 145.0 Group profit for the year 283.9 166.4 Group profit for the year attributable to shareholders of 104.7 11.1 Group profit for the year attributable to non-controlling interest 179.2 177.5 Basic and diluted earnings per share 0.31 0.14