tui ag investor presentation · 2021. 5. 15. · t e n t c u s t o m e r self selection individual...

TUI AG | Investor Relations | Seite 1

TUI AGInvestor Presentation

WestLBDeutschland Conference 2007Frankfurt, 14 - 15 November 2007


Agenda

I. Strategy

II. Tourism

III. Shipping

IV. Financials & Outlook


Two-pillar business portfolio

Tourism Shipping

€ ~18 bill turnover~60,000 employees

No. 1 in Europe

€ ~6 bill turnover~8,000 employees

Global Top 5 player


Two global growth industries

Trips in Europe (mill) Global Container Volume (TEU mill)

1996 1998 2000 2002 2004 2010e2008e2006

103119

148 143154

165175

186

Tourism Shipping

2010e1996 1998 2000 2008e200620042002

4147

5664

79

98

116131


Group strategy

Targets: Elements:

Expand tourism business

Capitalise on strong shipping market position

Take advantage of growth in container shipping market through organic and external growth opportunities

Target best-in-class operator generating consistent industry-leading margins

Actively shape the market through merger with First Choice

Further efficiency improvements in all source markets and delivery of synergies

Identify new niche market segments and growing the specialist portfolio

Selective expansion of hotel & resorts business

Enhance financial strength

Continue to enhance liquidity position

Reduction of tied up capital and net debt


Tourism


Listing: London Stock Exchange

Fiscal year: 1 October - 30 September

Major shareholder: TUI AG (51.0%)

Full consolidation in TUI AG accounts with effect

from 1 September 2007Tourism

TUI Travel PLC

51%

Shipping

Hotels

TUI Group structure

Merger of TUI Tourism and First Choice

Container Shipping

Cruises


TUI Travel PLC overview

Europe’s leading international leisure travel company

Revenue in 2006 of €18.0 bill

Over 30 million customers from over 20 source markets

Circa 160 aircraft

Circa 4,000 retail shops in Continental Europe, UK & Ireland

48,000 colleagues

Widest range of leisure travel experiences available


TUI Travel business model

Choice of Product Flexibility for the Customer

CONTENT

CUSTOMER

Self SelectionIndividual Components

Self SelectionDynamic Packaging

Traditional Packages

Exclusive / Differentiated Holidays

Tailor Made Holidays

Online

Retail

Call Centre

Providing choice and flexibility for the customer

Flights

Bed-bank

Car hire, transfers, excursions

Differentiated

Exclusive

Added Value

Expertise

Scarce Assets

Component

Specialist


TUI Travel strategy - delivering growth

Objective Value Driver

- increase aircraft utilisation- optimise yield - flight only and packages- operate flexible fleet profile - leverage market for leisure hotels- optimise specialist brand margins

Content

Enhanced margin opportunity with

combined management expertise

Distribution

- optimise specialist brand margins- increase controlled distribution - maximise web sales & content - build strong brand awareness & loyalty- reduce cost of acquisition

Specialist products distributed in new source

markets

Cost Competitiveness

- deliver synergies - increase procurement capability

approx. €150 mill synergies

Acquisitions

- consolidate fragmented markets - build leadership positions in niche segments at

higher margins- deliver First Choice Holidays track record

Acquisition-led value creation


TUI Hotels & Resorts

By channelling our customers to our hotels, we optimise capacity utilisation and increase profit margins

No 1 leisure hotelier in Europe

Most hotel companies with local

partners

Focus on four star category (approx.

60%)

High occupancy rates (~80%) through

access to TUI Travel customers

Selective organic growth:

26 new hotels with approx. 20.000

beds until 2008 (ownership/mgmt/

franchise)


Shipping


Global volume development container shipping(in TEU mill )

CAGR + 9%

2001 2002 2003 2004 2005 2006 2007e 2008e 2009e 2010e 2011e

Forecast

Actual

Ø∆: 12%

5864

7482

9098

107116

123131

138

Continuously strong market volume growth

Source: Global Insight, February 2007


Volume development of main trade lanes

World Container Trade 2006 (in million TEU)

15.6 (+10.9%)

Latin America

North America Europe

Africa

Far East

Middle East /Indian Ocean

Australia/New Zealand

4.2 (+4.8%)

5.4 (+7.3%)2.2 (+6.3%*)

4.6 (+6.8%)

2.2 (+7.6%)

1.0 (+9.8%)

Intra Far East

*Growth Rate in % is shown in brackets

10.3 (+15.7%)

22.1 (+10.4%)

Dominant legNon-dominant leg

Source: Global Insight, February 2007


Hapag-Lloyd at a glance

Top 5 global container shipping company

through acquisition of CP Ships

142 container vessels with a total capacity

of 490,000 TEU

Revenues in 2006: € 6.3 bn

Volume in 2006: 5.0 mill TEU

Share of volume in 2006 (mill TEU):

Austral-asia 13%

Latin America

16%

North Atlantic

28%

Far East 24%

Trans-Pacific 19%


Overview global Hapag-Lloyd liner services

Total number of services: 80

24 Far East18 Trans-Pacific18 Atlantic

10 Latin America

10 Australasiaas of: 31.03.2007


Transport chain shippingHighly efficient integrated IT systems

Empty Container (Return)

Factory/ Distribution

Centre

Inland Transport to Consignee

InboundPort

Ocean LegInland Transport

to PortOutbound PortFactory

Empty Container (Delivery)

Source: Company information

Fully integrated throughout the global organisation of more than 260 locations

Covers the entire transport chain (“only one transport file per shipment”)

Infrastructure supports all services throughout the value chain to offer customers efficient and reliable solutions

Developed in-house over past years with significant investment

an industry-leading IT system...

Only one Transport File per Shipment

Provides network to facilitate decentralised, global blueprint organisation

Real-time availability of information worldwide

Provides and combines operational and financial data

Contribution-driven, cost-effective business steering model

Improves accuracy and control of transport and documentation

...with significant efficiency benefits

Hapag-Lloyd operates


Productivity development

Productivity (TEU/Employee)

693

754

856

916

751

471

200

300

400

500

600

700

800

900

1.000

2002 2003 2004 2005 2006

HL land personell CP Ships

(100%)

(82%)

Integration synergies of € 220 mill are expected to be delivered by the end of 2008


Agenda

I. Strategy

II. Tourism

III. Shipping

IV. Financials & Outlook


3rd Quarter 2007 – both divisions on track

594

681

0

100

200

300

400

500

600

700

Q3 2006 Q3 2007

in € mill

+14.6%

Tourism

9

115

0

20

40

60

80

100

120

Q3 2006 Q3 2007

Underlying EBITA of continuing operations at €830 mill, showing enhanced performance in tourism and shipping

Tourism earnings with €681 mill significantly above previous year

Strong peak season in shipping with earnings of €115 mill improved by €106 mill y-o-y

Central operations at €34 mill, positively influenced by mark-to-market evaluations of hedging instruments

The good overall performance of 3rd quarter fully meets management expectations

Shipping


P&L highlights 9M 2007

378

208

0

50

100

150

200

250

300

350

400in € mill

9M 2006 9M 2007

16.716.2

0

2

4

6

8

10

12

14

16

18

Turnover9M 2006 9M 2007

in € bill

ReportedEBITA

9M 2006 9M 2007

in € mill

622

523502

571

0

100

200

300

400

500

600

700

9M 2006 9M 2007

UnderlyingEBITA

-4.0% +8.9%+2.8%

+81.7%

Group profit after minorities


Turnover by divisions

€ mill 9M 2007 9M 2006 in %Tourism 12,028.3 11,312.9 + 6.3Central Europe 4,797.5 4,597.2 + 4.4Northern Europe 3766,0 3,893.3 - 3.3Western Europe 2,439.3 2,306.3 + 5.8Incoming agencies 223.7 197.1 + 13.5Other tourism - 70.9 -First Choice Holidays* 500.1 - -TUI Hotels & Resorts 301.7 248.1 + 21.6Shipping 4,644.7 4,756.4 - 2.3Central operations 20.4 172.5 - 88.2Continuing operations 16,693.4 16,241.8 + 2.8

Discontinuing operations - 401.0 -

Turnover by divisions 16,693.4 16,642.8 + 0.3

€ mill 9M 2007 9M 2006 in %Tourism 12,028.3 11,312.9 + 6.3Central Europe 4,797.5 4,597.2 + 4.4Northern Europe 3766,0 3,893.3 - 3.3Western Europe 2,439.3 2,306.3 + 5.8Incoming agencies 223.7 197.1 + 13.5Other tourism - 70.9 -First Choice Holidays* 500.1 - -TUI Hotels & Resorts 301.7 248.1 + 21.6Shipping 4,644.7 4,756.4 - 2.3Central operations 20.4 172.5 - 88.2Continuing operations 16,693.4 16,241.8 + 2.8

Discontinuing operations - 401.0 -

Turnover by divisions 16,693.4 16,642.8 + 0.3

* September only


Earnings by divisions (EBITA)

€ mill 9M 2007 9M 2006 in % 9M 2007 9M 2006 in %Tourism 407 653 - 37.7 502 523 - 4.0Central Europe 84 137 - 38.7 100 145 - 31.0Northern Europe 84 186 - 54.8 130 186 - 30.1Western Europe 51 28 + 82.1 59 33 + 78.8Incoming agencies 46 46 0.0 46 46 0,0Other tourism - 146 - - - 3 -First Choice Holidays* 10 - - 35 - -TUI Hotels & Resorts 132 110 + 20.0 132 116 + 13.8

Shipping 257 - 91 n.m. 88 77 + 14.3Central operations 26 - 14 n.m. 32 - 29 n.m.Continuing operations 690 548 + 25.9 622 571 + 8.9

Discontinuing operations - 29 - - 30 -

Earnings by divisons 690 577 + 19.6 622 601 + 3.5

Reported EBITA Underlying EBITA

€ mill 9M 2007 9M 2006 in % 9M 2007 9M 2006 in %Tourism 407 653 - 37.7 502 523 - 4.0Central Europe 84 137 - 38.7 100 145 - 31.0Northern Europe 84 186 - 54.8 130 186 - 30.1Western Europe 51 28 + 82.1 59 33 + 78.8Incoming agencies 46 46 0.0 46 46 0,0Other tourism - 146 - - - 3 -First Choice Holidays* 10 - - 35 - -TUI Hotels & Resorts 132 110 + 20.0 132 116 + 13.8

Shipping 257 - 91 n.m. 88 77 + 14.3Central operations 26 - 14 n.m. 32 - 29 n.m.Continuing operations 690 548 + 25.9 622 571 + 8.9

Discontinuing operations - 29 - - 30 -

Earnings by divisons 690 577 + 19.6 622 601 + 3.5

Reported EBITA Underlying EBITA

* September only


TourismBooking update

y-o-y variation in % Sales Customers Capacity Sales Customers Capacity

UK Mainstream flat flat - 1 + 7 - 3 - 11Nordic + 6 + 3 + 2 + 19 + 16 + 12

Northern Europe + 1 + 1 flat + 8 flat - 6

Central Europe + 6 + 9 + 10 + 9 + 12 + 1

Western Europe + 8 + 6 + 7 + 6 + 4 + 3

y-o-y variation in % Sales Customers Sales Customers

Specialist1 + 14 + 13 + 4 + 6

Activity1 + 3 n/a + 11 n/a

y-o-y variation in % Sales Bednights Sales BednightsOnline Destination

Services2 + 33 + 21 + 62 + 40

Winter 07/08

Mai

nstr

eam

Summer 07

These statistics are up to 28 October 2007


Increase in customers and turnover

Underlying EBITA (excl. effects from merger) expected to be on last years level:

Central Europe expected below last year caused by difficult market environment in German airline sector Northern Europe estimated to match overall performance of last year due to positive effects from the performed restructuring programme

Western Europe expected to rise considerably mainly driven by the successful restructuring in France and a very pleasing performance in Belgium

Incoming agencies are forecast to deliver stable results

TUI Hotels & Resorts are expected to deliver an increase in earnings due to a better performance of the RIU Group and a better profit contribution of the club business

Tourism full year results will be affected by merger with First Choice

Outlook Tourism 2007


Shipping Freight rate trends by trade lanes

1.381

1.416

1.4921.5131.522

1.494

1.422

1.2341.211

1.2421.231

1.205

1.459

1.266

1.345

1.3921.434

1.437

1.495

1.4151.432

1.451

1.593

1.466

1.6891.6851.669

1.556

1.1741.1791.1791.203

1.223

1.195

1.282

Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07

Freight rate in US$/TEU

Atlantic

Trans-Pacific

Latin America

Far Eeast

Australasia

*2006 incl. CP Ships proforma


Outlook Shipping 2007

Market growth of at least 9% expected

Good volumes combined with rising freight rates in second half 2007 will lead to

an increase in turnover (growth depending on US$ exchange rate)

Freight rates for the third quarter 2007 have significantly increased compared to

first half 2007 and a further upward trend is expected

Enhance cost efficiencies through optimisation of inland transport, capacity

reduction on Atlantic and speed reduction to save bunker expenses, etc.

Positive operating profit contribution is also expected in the fourth quarter

leading to a significantly improved underlying EBITA in 2007


13 Dec 2007 TUI Travel PLC: Proforma financials

29 Jan 2008 TUI Travel PLC: Strategic update

18 Mar 2008 Financial Year 2007

07 May 2008 Annual General Meeting

15 May 2008* First Quarter 2008

14 Aug 2008* Second Quarter 2008

14 Nov 2008* Third Quarter 2008

Financial calendar 2007 / 2008

TUI AG Investor Relations - E-Mail: [email protected] - Phone: +49-511-566-1425

* scheduled


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 presentation · 2021. 5. 15. · t e n t c u s t o m e r self selection individual...

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