Slides
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TUI Capital Markets Day 24/25 March 2025 in Madrid
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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 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. 2
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Strategic Update Sebastian Ebel, Chief Executive Officer
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Markets + Airline Transformation Holiday Experiences Growth Today's agenda David Schelp (CEO M+A) & Marco Ciomperlik (CEO TUI Airline) Mathias Kiep (Group CFO)Financial Roadmap Peter Krueger (CSO & CEO HEX) Strategic Update Sebastian Ebel (Group CEO) AllSummary and Q&A 1 2 3 4 5 4
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Travel & Tourism market growth continues to outpace GDP growth 1.5 0.4 0.5 0.9 1.3 1.5 1.6 1.7 1.8 1.9 2.0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Global International Arrivals1 # trips (billions) CAGR +5.1% 1 Euromonitor Travel August 2024 Covid crisis 5
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• Travel no. 1 discretionary spending priority1 • More consumers plan to go on holidays in 2025 vs 20242 • Longer, healthier lives, a growing middle class & a strong desire for experiences3,4 • Rising demand for packaged holidays driven by cost, convenience & unique experiences5 Demand for travel proving resilient 1 Barclays Consumer Spending Report – November 2024 | 2 HSBC – UK Anatomy of the Consumer 2025 | 3 World Health Organization (WHO): Ageing and health | 4 Skift Research: State of Travel 2024 | 5 Skift Research: European Travel Insights: Unveiling the Top Trends for 2025 Travel Trends 6
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TUI - The world’s leading integrated tourism business 13m customers2 - Holiday Experiences – (Und. EBIT) ~80% Cruises TUI Musement Hotels & Resorts ▪ 433 Hotels1 ▪ 12 Diversified brands 20m customers - Markets + Airline - (Und. EBIT) ~20% Numbers per FY24 | 1 Hotel count includes 68 Concept hotels | 2 12.6m HEX customers include 58% of H&R customers, 100% of Cruises customers and 53% of TUI Musement Experiences customers ▪ 17 Cruise ships ▪ 3 brands ▪ Marketplace - tours, activities & transfers ▪ >45k experiences Scalability through platforms Cross & up-selling Airline ▪ 125 aircraft ▪ Serving short to long-haul destinations Transforminginto the TUI of tomorrow – Global Curated Leisure Marketplace Marketplace ▪ 14 Source markets ▪ Multi-channel distribution 33m Customers 7
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Progress to date towards our ambitions Delivered growth quarter after quarter Consistently achieved our financial targets Achieved our ESG milestones Successfully progressed on our transformation strategy Strengthened our financial and cash position, improving our rating On track to deliver our guidance FY25 and mid-term targets 8
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Stepping up to the next level GROWING THE COMPANY WITHOUT GROWING OPERATIONAL RISK = CREATING SHAREHOLDER VALUE Holiday Experiences: profitable & sustainable asset-right growth serving strong global markets Markets + Airline transformation: generating dynamic growth, driving profitability & building a global curated leisure marketplace Integrated business model: yielding higher returns, with M+A distribution powerhouse driving superior performance in HEX 9
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TUI is transforming to a global curated leisure marketplace Global curated leisure marketplace More customers, more products, more market share Sourcing & selling platform with exclusive, differentiated and global products Hotels, Cruises and Experiences global production and selling platform Markets + Airline Transformational growth Holiday Experiences Sustainable growth Leadership & Employees Operational Excellence & Performance Central Customer Ecosystem Grow customer lifetime value 10
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Benefits of vertically integrated model … driving profitable & de-risked growth as we strengthen occupancies & yields in our assets As per FY24 | 1 Excludes 1 aircraft externally leased to Corsair | 2 Hotel count includes 68 Concept hotels Tours & Activities 125 aircraft1 Tour operator - 14 regions Distribution On- / Offline / App 433 hotels2 Customers 20.3m 17 cruise ships More differentiated products & experiences CROSS & UP-SELLING Increases occupancy & yield Increases flexibility, reduces risks More differentiated products & experiences • Integrated model with differentiated product & service offering across the value chain • Strong brand reputation & market diversification • Customer growth through dynamic packaging & digitalised product upselling • Strong yields and occupancies driven by a broad customer base New customers New customers 11
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Vertically integrated business model driving superior KPIs 1 Customer satisfaction | 2 Occupied rooms divided by available rooms (Group owned or leased hotel rooms multiplied by opening days) CRUISES MARKETS & AIRLINE HOTELS & RESORTS TUI MUSEMENT c.30% 1/3 of Markets & Airline customers purchase an experience Our unique & differentiated content drives higher customer satisfaction 8.2 8.5 3rd Party Hotels 64 86 Leisure Peer TUI Integration drives higher occupancy % Strong brand & bespoke product delivers superior returns FY24 Q4 – ROOM OCC. %2 TUI Hotels FY24 Q4 – CSAT1 FY24 Q4 - UPTAKE % - CROSS-SELL FY24 Q4 – EBITDA Margin % 44 45 Best Peer TUI Cruises 12
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Our strategic priorities shaping the TUI of tomorrow TUI well on track to deliver mid-term ambitions to grow Und. EBIT by c.7-10% CAGR OF TOMORROW 1 2 3 4 5 6 Markets transformation into global curated leisure marketplace HEX - differentiated products, serving global demand TUI – great place to work Sustainability – Tourism: A Force for Good Global platform roll-out targeted Central Customer Ecosystem LEVERAGING THE POWER OF OUR BRAND GLOBALLY Presented today 13
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Marella re-fleeting considerations - UK cruise market offers attractive growth opportunities Marella, with record profits, is well-positioned to capitalise on this market growth - building on its success with a modern fleet Peter to discuss attractive business case Mathias to discuss potential financing implications 14
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What to expect today… David & Marco with a deep-dive into Markets + Airline Transformation & value drivers – roadmap to achieving >3% EBIT margin Peter with an update on Holiday Experiences & the Marella growth opportunity Delivering de-risked growth & higher returns Mathias with the CFO view on the TUI segments & financial roadmap How we plan to deliver shareholder value 15
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M+A Transformation David Schelp, CEO Markets + Airline Marco Ciomperlik, CEO TUI Airline
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AGENDA TUI M+A Overview1 TUI M+A Strategy2 3 TUI M+A Value Creation
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Source markets Volume: >20 million customers Pax (m) FY24 UK & Ireland Germany & Austria Belgium Netherlands Poland & Czech Republic Nordics France Switzerland T otal >20m Spain, Portugal and Latin America are reported in TUI Musement18 Strong presence in 14 source markets – another six new and growing
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Destinations Greece Canaries Turkey Balearics Spain Mainland Egypt Morocco Cyprus Italy Cape Verde Other 3.1 2.9 2.5 2.0 1.2 1.0 0.7 0.6 0.6 0.5 5.1 Pax (m) FY24 19 Presence in more than 180 destinations worldwide
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Products Packages Flight Only OtherAccommodation Only TUI Airline 3rd Party Carriers Dynamic 14.4 Pax (m) 51%34% 15% 1.9 Pax (m) 3.8 Pax (m) 0.3 Pax (m) FY24 volumes and carrier split | Other: Tours, Groups & Incentives, Sports, BeNe Cruise, Nazar20 Package at our core with a growing share of dynamic production
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Distribution Distribution by channel Pax (%) FY24 7% 44% 24% 18% 8% App Web Own Retail, Franchise & Call Centre Third Party Retail Online Travel Agents 2,463 shops3 65 partners 9,060 3rd party shops 764m sessions2 22m apps installed1 1 Total TUI apps installed on devices in December 2024 | 2 Web traffic sessions for FY24 | 3 1,224 own retail shops, 1,239 franchise shops 21 Multi-channel distribution strategy with a focus on app growth
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Brand 92% 89% 92% 94% 95% 90% TUI Brand Awareness FY24 TUI Brand Pulse FY24; Question – Aided Awareness: “Before today, had you heard of any of the following travel companies?”22 One well-recognized global master brand in all our markets
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Customer Satisfaction CSAT: Customer Satisfaction score - Holiday Overall rated on a scale ranging from 0 to 10 (ideal result). Retention rate: two-year retention - percentage of customers booked each year who have gone onto book again within the following two years. FY23 excluded due to Covid incomparability impact. 8.5 CSAT FY24 Retention FY24 Multiple market segments with average customer age of 47 years Higher share of consumers in mid- to high income brackets High share of couples & families who continue to prioritise holidays TUI Customer 40% 23 Top quality & service at scale – customer satisfaction at an all-time high
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TUI Airline Caribbean Canary Islands/ Cape Verde Mediterranean Southeast Asia Florida 773 613 613 588 353 128 549 125 212 T op 10 fleets in Europe1) 1 2 2 4 5 6 7 10 9 1368 1 Cirium, fleets as of 31.12.2024; not including Aeroflot and DHL | 2 Split by ASK (Available Seat Kilometre) | 3 Narrowbody fleet includes 3 Embraer E195 Countries Destinations ~51 ~180 Share of package 70% 106 aircraft3) 19 aircraft Bases ~50 Share of seat-only 30% Short/Mid-haul share2) 75% Long-haul share2) 25% 24 The young and modern fleet is among the ten largest in Europe
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TUI Germany TUI DertourSchauinsland Alltours FTI* Others Indicative Market Share Product Mix Distribution Mix Brand Consideration 46% Booking.com TUI Check24 Trivago Expedia Lufthansa Airbnb Alltours Ab-in-den-urlaub HolidayCheck Dertour Schauinsland 1% 24% 23% 27% 24% App Web Own Retail, Franchise & Call Centre Third Party Retail Online Travel Agents Package Accommodation only Flight only Other 70% 23% 7% 0% Wholesale Dynamic Volume product mix – Germany, Austria & SwitzerlandFY24 TUI Estimates. *Insolvent June 2024, market share reflects FTI volumes prior to insolvency as part of FY24 market volumes Includes Germany, Austria & Switzerland As per FY24 “With which travel companies would you consider booking a holiday in the future? Select all that apply” 25 Market leader capitalising on market consolidation, shifting sales online
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TUI UK & Ireland Jet2 Holidays TUI Love HolidayseasyJet Holidays On the Beach BA holidays Others 12% 56% 26% 7% App Web Own Retail, Franchise & Call Centre Third Party Retail Online Travel Agents 0% 47% Booking.com TUI Jet2 Holidays BA Holidays Easyjet Holidays Airbnb Expedia Trivago Virgin Holidays On the Beach Lastminute.com Love Holidays Kuoni Indicative Market Share Product Mix Distribution Mix Brand Consideration Package Accommodation only Flight only Other 81% 1% 18% 0% Wholesale Dynamic Volume product mixFY24 TUI Estimates. UK market As per FY24 UK Market. “With which travel companies would you consider booking a holiday in the future? Select all that apply” 26 Driving risk-right growth in packages and components
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Competition Pan-European platform with ambition to go global Multi-channel strategy with App and AI focus Own products and service for differentiation HighLow OwnMe T oo Distribution reach: combined number of markets, channels & addressable customers | Offer Relevance: Curated offering including own differentiated products Multiple holiday and leisure product categories for choice Distribution ReachOffer Relevance Offer Relevance Distribution Reach TUI is well positioned for the future 27
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AGENDA TUI M+A Overview1 TUI M+A Strategy2 3 TUI M+A Value Creation
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Markets + Airline Transformation TWO PLATFORMS THAT MAXIMISE VERTICAL INTEGRATIONA COLLECTION OF MARKETS WITH INTEGRATED AIRLINES FROM: TO: Airline Northern Region Other Businesses Airline Western Region Other BusinessesAirline Central Region Other BusinessesAirline Regional targets Resource allocation Accountabilities Focus Scalability Growth Commercialising Airline Transforming Tour Operator to Global Curated Leisure Marketplace From market led strategies to one global strategy with two platforms 29
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Transforming Tour Operator The transformation benefits the customer by improved choice, flexibility, personalisation & value for money More product categories CLV Own products Differentiation Dynamic growth Risk-right growth App First personalisation Distribution Cost Lean organisation Overhead Cost AI-powered global platforms Global Scalability CLV = Customer Lifetime Value Creating a scalable Global Curated Leisure Marketplace 30
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Dynamic growth Overall growth driven by dynamic products Hipotels Gran Playa de Palma Direct Connects Channel Managers Aggregators Accommodation Sourcing Bed Banks Amadeus NDCx NDC Direct Connects Flight Sourcing Amadeus GDS Scaling dynamic sourcing FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Volume Dynamic Wholesale NDC = New Distribution Capability | GDS = Global Distribution System Dynamic sourcing enables risk-right growth for TUI 31
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Net Promoter Score2 Product Split1 82% 18% Sun & Beach City Ryanair TUI UK&I Cumulative Volume (Pax ‘000) Aug-Nov Dec Jan Feb Until Mar 20th 4 16 61 96 123 1 Seasons included: Winter 24/25 and Summer 25 YTD on February 28th 2025 for UK&I. | 2 NPS data for TUI UK&I YTD until March 24th for Winter 24/25 and Summer 25. New Customers1 40% Ryanair case study Ryanair packages attract new customers and open new destinations 32
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TUI Hotels & Resorts 3rd Party Hotel Portfolio3 +0.2 +€13pp Quality1Margin Per Pax2 Own products Curated products deliver superior quality, margins and differentiation 1 Quality score: FY24 Accommodation Overall rated on a scale ranging from 0 to 10 (ideal result) | 2 FY24 aligned GP2 margins per pax | 3 3rd party long-tail hotel portfolio, excluding TUI Hotels & Resorts, Tour Operator Concepts and Exclusivities33
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More product categories Past Future Customer year “I want to book our summer package holiday” “I want to go on a tour around South Africa” “I want to do an excursion in my hometown” “I want to fly to my girlfriend in London” “Let’s rent a car for a road trip this weekend” “I need a hotel to stay at when driving to Austria” “Let’s book a train ticket to the alps” “I want a ticket to go see my favourite band“ CLV = Customer Lifetime Value Transaction based model Ecosystem model to optimise CLV Offering a wide range of product categories to increase CLV 34
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More product categories Accommodation only of strategic importance New selling platform is performing Revenue per user uplift YoY+36% Conversion rate uplift YoY+23% Accommodation only pax upsell to package FY24113% Accommodation only pax sold FY242 million 1 FY24 TUI Germany App Web Example Accommodation Only: One platform across App and Web 35
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More product categories TUI T ours USP’s TUI T ours Platform Markets Flexible platform allowing for mass customisation Vertically integrated model with strong brand 24/7 customer service & package protection Coming soon ... 36 Example TUI Tours: Digital platform for flexible multi-component trips
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More product categories First cross-sell index across all products has increased by +2.2 points in last 12 months1 Experiences near you On Holiday Experience up-sell 30% uptake At Home Holiday blues message when returning home In City Location based sales push At Home Local experiences at home At Home Next holiday based on experiences booked 1) First cross-sell index based on first purchase into a new product category in the last 24 months. Measured from February 2024 to February 2025 Musement case study: Driving Cross- and Up-sell with Musement 37
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App First personalisation App share of sales The app will be our main digital channel complementing retail App KPIs App First benefits 7.3% Mid double-digit CAGR FY24 FY27 Reduced distribution costs Up- and Cross- sell opportunity 22 million TUI apps installed Personalised merchandising The app will be our main digital channel complementing retail 38
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App First personalisation Navigation & Home Screen Free Text Search Splash Screen AI Inspiration Planner 39 Constantly launching new app features to improve customer experience
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AI-powered global platforms Growth Markets1 Strategy Target Countries Scalable platform Cost-efficient capacity Product synergies 1) Market sizing based on Statista includes Camping, Cruises, Hotels, Package Holidays and Vacation Rentals; data converted from local currencies using average exchange rates for the respective year PL CZ SK HU RO BG SL Entering into new growth markets (example Eastern Europe) 40 Growth CAGR 24 – 29 Market Size, 2024 €m 5% 3% 5% 5% 2% PL CZ SK RO HU 8 360 3 626 2 467 1 515 1 450 972SL 3%
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AI-powered global platforms Email Assist Customer Service Premium Seat Pilot Pricing & Yield Aircraft Maintenance Airline Engineering Examples +500 hours saved in first month +3% revenue uplift targeted, model in A/B testing € 2 million Annual saving from maintenance scheduling Improved Customer Experience Increased ASPs Reduced Costs Next-gen tech will deliver more business value at lowest cost 41
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Lean organisation Supports local agility Allows for global scalability Creates incubation business Reduces costs Functional-led operating model We are implementing a lean and scalable, global organisation 42
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Caribbean Canary Islands/ Cape Verde Mediterranean Southeast Asia Florida 773 613 613 588 353 128 549 125 212 T op 10 fleets in Europe1) 1 2 2 4 5 6 7 10 9 1368 1 Cirium, fleets as of 31.12.2024; not including Aeroflot and DHL | 2 Split by ASK (Available Seat Kilometre) | 3 Narrowbody fleet includes 3 Embraer E195 | AOC = Air Operator Certificate Countries Destinations Share of package 70% 106 aircraft3) 19 aircraft Bases Share of seat-only 30% Short/Mid-haul share2) 75% Long-haul share2) 25% ~51 ~180 ~50 Built functional platforms Operating 5 AOCs out of one hand – operationally and commercially Realising maximum synergies and commercial opportunities Recap: TUI Airline We leverage our modern fleet to compete amongst Europe’s top ten 43
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Commercialising Airline Strong base with c. 20m passengers TUI as anchor customer providing base load Forged one operational Airline consisting of 5 AOCs Known and loved brand in main European markets with strong customer satisfaction scores Our key strengths today... …will be augmented, enabling TUI Airline to be the European Champion in leisure travel with efficient operation TUI Airline Network & Fleet Increasing network efficiency and utilisation Commercialisation Expansion of seat-only and partnerships Efficient Operation Implementing lean structures A B C AOC = Air Operator Certificate Creating a European Champion from a solid base 44
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Commercialisation A Sales and Distribution Higher yielding seat-only Increasing reach via B2B partnerships T apping into reverse demand Product Standardization of product offerings and ancillaries to drive economies of scale and synergies Digital first customer experience IT Modern, legacy free IT landscape, incl. airline webpage Agile and fit for purpose systems Revenue Management Rebalancing integrated and seat only steering concepts to enable stronger external growth without sacrificing benefits of integration Focus Simplicity All components for creating a successful commercial position are addressed 45
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Network & Fleet B Balance year-round profitability – higher aircraft utilisation AOC agnostic planning1) Open profitable niches with new markets/routes – strong leisure-driven demand Review connectivity options Increase own reach through partnerships Single fleet strategy – latest technology driving sustainability and efficiency Updated delivery stream was agreed with Boeing – delays are covered with fleet extensions 1 As far as legal conditions allow | AOC = Air Operator Certificate Evolution of network and fleet are at the heart of our transformation 46
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Efficient Operation – Lean & Smart C Benefits Improvement of aircraft and crew productivity Exchanging of aircraft and crews among European AOCs Improvement of resource and capacity allocation Reduction of unit cost Multi-operator airline (in progress) EASA AOC certification One CAMO setup Streamlining of flight operations – one set of manuals Further digitalization Interoperability TUI Airways TUI fly Belgium TUI fly Netherlands TUI fly Germany TUI fly Nordic Created a functional steered airline group under single management EASA = European Union Aviation Safety Agency | AOC = Air Operator Certificate | CAMO = Continuing Airworthiness Management Organisation Commercial plans are underpinned by establishing interoperability 47
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Future key characteristics Creating profitable growth for Markets + Airline while continuing to deliver customers into Holiday Experiences Additional revenue stream & competitive advantage New revenue streams outside TUI Marketplace Network efficiency Maximised aircraft utilization Commercialising Airline Global Curated Leisure Marketplace Risk-right, profitable growth Scalability through global platforms From transaction-led to ecosystem Transforming T our Operator Creating one scalable business with two key objectives 48
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AGENDA TUI M+A Overview1 TUI M+A Strategy2 3 TUI M+A Value Creation
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Deliver transformation benefits for Markets + AirlineContinue to support vertical integration T ours & Activities 125 aircraft1 T our Operator - 14 Regions Distribution On- / Offline / App 433 hotels2 Customers >20mNew customers New customers 17 cruise ships As per FY24 | 1 Excludes 1 aircraft externally leased to Corsair | 1 Hotel count includes 68 Concept hotels Commercialising Airline Transforming Tour Operator to Global Curated Leisure Marketplace 50 Value levers for Markets + Airline Continue to support vertical integration & deliver M+A transformation benefits
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Note: FY24. Figures are rounded | Hotels based on TUI % of bednights sold and reflects owned, leased, managed and franchised hotel units | Cruises segment including both TUI Cruises and Marella and is based on departed pax nights | Musement based on Musement experience pax. Transfer volume generated from Markets + Airline is 84% Vertical Integration Synergies 2 Occupancy 3 Flight connectivity 1 Distribution 2 Margins 3 Customer Satisfaction 1 Differentiation M+A ContributionM+A Benefits % share of volume generated from M+A TUI Musement 47% TUI Hotels & Resorts 42% TUI Cruise businesses 40% 51 Vertical Integration Synergies Continue to deliver TUI customers into Holiday Experiences businesses
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Transformation will deliver profitable growth 304 1.5% EBIT Margin T arget >3% EBIT Margin FY24 Transforming T our Operator to Global Curated Leisure Marketplace Commercialising Airline Operational Excellence Mid-term • Supplier re-negotiations • Marketing effectiveness • Conversion rate improvement • Overheads reduction Und. EBIT in €m • Dynamic, risk-right growth • Own products • More product categories • App First personalisation • AI-powered global platforms • Lean organisation • New revenue streams • Network & fleet optimisation • Efficient operations Markets + Airline will contribute to TUI Group’s guidance of c.+7-10% p.a. EBIT growth1 52 Markets + Airline Transformation Benefits Transformation will deliver profitable growth 1 Mid-term CAGR
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Holiday Experiences Growth Peter Krueger, Chief Strategy Officer & Chief Executive Officer Holiday Experiences
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UNDERL YING EBIT (€m) 213 329 531 647 790 874 505 822 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1,092 Covid crisis -832 -535 Holiday Experiences - Strong profitable growth (1,2) 1 Marella reported in Markets & Airline pre FY16; Note: Financials from FY20 onwards based on IFRS 16 | 2 TUI Musement not included | 3 reported number, FY 19 adjusted for disposals = €778 (3) (1) 54
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TUI Hotels & Resorts – Building a global Hotel platform
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Setting the scene: TUI Hotels & Resorts business profitable and strongly growing Und. EBIT TUI Hotels & Resorts (€m) 203 235 304 357 420 452 481 550 668 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Covid crisis -395 -153 (1) Record profits FY24 Very resilient to Covid crisis – 1 year earn-back Strong growth driven by digitalization and global distribution (1) 1 Blue Diamond not included | General note: FY19 and before financials based on IAS 1756
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2014 # hotels 2024 # destinations # pax ADR 433 101 11m €93 333 83 7m €54 1 Including Ownership, Leased as well as fees from Management & Franchise | 2 Including Ownership, Lease, Management, Franchise & Concept (3rd party hotels) | 3 Including Ownership & Lease hotels | 4 Calculation derived from room nights with averages for Hotel Days Open (265 days), Length Of Stay (7,8 nights), Guests per room (2,3 guests) | 5 Calculation derived from room nights with averages for Hotel Days Open (290 days), Length Of Stay (7,2 nights), Guests per room (2,3 guests) | 6 Customer Satisfaction Score, 2019 data Aver. Occupancy 82%81% EBIT €668m€203m Delta +30% +22% +57% +72% +1 pp. +229% TUI Hotels & Resorts business has become a truly global business (4) (5) CSAT 8.88.7 +1% (6) (2) (1) (2) (2) (3) (3) (2) 57
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2019 2020 2021 2022 2023 2024 2025e 2026e 2027e 686,1 297,7 402,6 543,4 633,4 677,3 716,2 749,9 781,1+5% Retail Value (Retail Selling Price) Global Hotel Market: CAGR (2024-2027): 5% Leisure Hotel Market: CAGR (2024-2027): 6.5% Global Hotel Market (in €bn) o/w ~30% Leisure hotels² Global hotel market continuing to grow above GDP, leisure market segment growing even stronger (1) (2) 1 Source: Euromonitor Travel August 2024, Global Hotel Market, Retail Value, constant prices and fixed fx rates | 2 Sun & Beach market only, source: Euromonitor58
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TUI Hotels & Resorts globally leading leisure hotel business 433 350 300 124 100 61 48 >70TUI Hotels & Resorts Melia Barcelo Hyatt* Iberostar >500 411 348 Nº of hotels Pipeline TUI Hotels & Resorts Competitive Set Number of hotels Source: Hotels Mag, Hosteltur & Corporate websites * Hyatt All-inclusive collection59
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Capacity growth • Continue to grow our diversified global hotel portfolio • Asset right growth (own/partnerships, management) • Vertically integrated destination clusters • Global distribution & marketing platform to efficiently tab global demand • IT stack harmonisation: App, Web, PMS, CM • Differentiated brands drive pricing power • Product & service innovation (incl. ESG) Distribution platforming Product differentiation 1 2 3 TUI Hotels & Resorts – our strategic growth agenda (1) 1 Property Management System | 2 Channel Manager (2) 60
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1 Capacity growth: Continuing to grow our strong global presence New strategic focus: Southeast Asia Mainly pipeline 61
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• # 500th hotel recently announced: • TUI MAGIC Life Agadir Capacity growth: Pipeline of >70 hotels built 23% 44% 15% -8% 24% 18% 2% Africa Asia Caribbean / S & CE America Eastern Mediterranean North Africa / Egypt /UAE Western Mediterranean Other 15% 54% -1%32% Ownership Lease Management Franchise 49% 8% 11% 30% 3% Confirmed TUI Hotels & Resorts Pipeline TUI Blue TUI Magic Life TUI Suneo RIU Other >70 >70 >70 1 62
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1 Capacity growth: Vertically integrated destination clusters – Cabo Verde SAL (SID) BOA VISTA (BVC) Service & DMC Operations 9 Hotels +1 pipeline 3k Annual Flights 53% of total flights to C.V . 7 Ships 15 Annual Port calls TUI HOTELS & RESORTS CRUISES TUI MUSEMENT MARKETS & AIRLINE 26 Buses 42 Jeeps 1 Catamaran Significant end-to- end profitability 63
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• Clear set of differentiated core brands • Mix of global and regional brands • From high-end to budget customer segments 12 Brands +40 Countries ~350 Leisure destinations +433 Hotels play video 2 THR Product differentiation: Our brand portfolio is adressing all customer segments 64
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Product differentiation: Wide range of differentiated experiences from 3-5 Stars Luxury Global Regional Economy • For culinary voyagers • For health seekers • For family prioritisers • Luxurious all-inclusive • Exceptional service • Caribbean and Mexico AKRA • Sport & healthy lifestyle • Entertainment driven, celebrities' brand of choice • High F&B standards • Stylish and modern • All inclusive options • Service ‘as you like it’ • City, Beach and Urban • Couples, singles, families • All-inclusive Club • Always beach front • >90 different activities • Mid/Premium hotels • Properties with a Greek influence • Mid/Premium hotels • Properties with an Egyptian influence • Premium hotels • Turkish influence & flair • Mid/Premium hotels • Properties with a Spanish flavour • Türkiye, Moroccan and Tunisian hotels • Focus on quality and sustainability • Budget conscious • 3 and 4* • Near or on the beach 2 65
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Product differentiation: Sustainability as USP 2 • Blue print “Türkiye green energy project“ • Own ~37MW photovoltaic plant in Türkiye • 14 TUI hotels in Türkiye live, connected via grid • €31m investment & 5-6 years pay-back Nobilis Sarigerme Pamfilya Camyuva Palm Garden Seno Grand Azur The Residence Sorgun Fethiye Kemer Belek Masmavi Sarigerme Park (1) 1 Of which 15MW already installed, further 22MW under construction66
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Distribution platforming: Hotel demand increasingly more global and direct – Zanzibar example 16% 10% 10% 8% 8% 7% 5% 5% 5% 4% 22% OtherTZUSSKFRPLCNZADEITGB Customer guest mix (nationality) The Mora Zanzibar - FY24 3 Zanzibar (ZNZ) 67
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App & Web (Global) Distribution platforming: Scalable platform to address global demand • Transforming B2B/OTAs (Global ex. Europe) into a standardized, digitalized and centralized hotel platform • Harmonised IT stack, brand portfolio and global distribution/marketing platform Channel Management / Revenue Management System Property Management System 3 TUI Markets + Airline (Europe) B2B / OTAs (Global ex. Europe) 68
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Strong results as basis for further growth FY24 100% Business RIU JVs Total # Hotels 147 99 187 433 EBIT (€m) 90 465 113 668 "TUI shareholder EBIT/ pro rata EAT” (€m) 90 233 113 436 ROIC ≈ 10% >20% >20% >18% 1 Including concept hotels • Mature and seasonal destinations • Mid-sized hotels • Year-round destinations • Large-scale hotels • Mix of: (i) Seasonal and year-round destinations and (ii) mid & large- scale hotels • Strategic growth building blocks: • +~15 hotels FY25 • +~25 hotels FY26 • €300k/hotel (1) 100% Business by Contract Type 18% 14% 11% 10% 46% Owned Leased Mgmt Franchise Concept 12% 19% 12% 10% 41% 6% 100% Business (Owned/ Leased) by Region Eastern Mediterranean Western Mediterranean Africa Austria Türkiye Other 69
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Cruises – Growing in a profitable market niche New picture
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Setting the scene: Cruises business back to pre-covid levels and strongly growing Und. EBIT Cruises (€m)1 191 256 324 366 1 236 141 233 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 374 Covid crisis -322 -278 Back to record profits in FY24 Continuing pre-covid growth Strong growth driven by fleet expansion 1 TUI Cruises pro rata EAT; including Hapag Lloyd from FY 2020 after disposal to TUI Cruises (JV) 71
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20161 # ships 20241 # pax ADR 17 1,041 €238 10 653k €168 Aver. Occupancy 98.3%101.6% EBIT €374m€191m Delta +7 +59% +42% -3 pp. +96% Successful strategic development of our Cruises business # berth 29.7k17.1k +73% 1 Scores for TUI Cruises and Hapag-Lloyd CSAT 7.9 – 9.1(1)6.8 – 8.0(1) +14 – 16% 72
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73.7 17.4 24.6 47.3 62.6 69.5 75.2 79.8 84.2 2019 2020 2021 2022 2023 2024 2025e 2026e 2027e +6.6% Retail Value (Retail Selling Price) Global Cruise Market: CAGR (2024-2027): 6.6% Global Cruise Market (in €bn) Global cruise market steadily growing, particular growth opportunity in Europe; limited supply (1) 1 Source: Euromonitor Travel August 2024, Global Cruises Market, Retail Value, constant prices and fixed fx rates | 2 Cruise Market penetration rates of total population / Cruise Lines International Association (2023) 5.0% 3.6% 3.0% 2.6% 2.0% 1.6% 1.3% 1.2% 1.1% (2) Penetration Rate 2023 73
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• Leader in UK flight cruises• German Luxury & Expedition cruises • Better luxury positioning vs. Hurtigruten • German modern mainstream cruises • On par with Aida and different product TUI Cruises, Hapag-Lloyd and Marella niche positionings in German & UK cruise markets 8 11 1TUI Cruises Aida 9 Nº of ships Pipeline 5 10 1 Hapag-Lloyd Cruises Hurtigruten 11 5 7 3 3 Marella Cruises P&O Fred Olsen Cruise Lines Ambassador 74
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Capacity growth • 3 new TUI Cruises ships • Marella refleeting • B2C digitalisation – App & web • Expand distribution to more source markets • Niche positioning • All-inclusive, source market tailored product experience • Differentiated brands Distribution platforming Product differentiation 1 2 3 Cruises – our strategic growth agenda 75
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2,506 BERTHS Built: 2014 2,894 BERTHS Built: 2018 2,894 BERTHS Built: 2019 Mein Schiff 3 Mein Schiff 1 Mein Schiff 2 2,506 BERTHS Built: 2015 2,534 BERTHS Built: 2016 2,534 BERTHS Built: 2017 Mein Schiff 4 Mein Schiff 5 Mein Schiff 6 2,894 BERTHS Built: 2024 3,984 BERTHS Built: 2025 4,010 BERTHS Built: 2026 Mein Schiff 7 Mein Schiff Relax Mein Schiff Flow Europa 408 BERTHS Built: 1999 / Ref. 2017 Europa 2 516 BERTHS Built: 2013 / Ref. 2017 230 BERTHS Built: 2019 Hanseatic nature Hanseatic spirit 230 BERTHS Built: 2021 230 BERTHS Built: 2019 Hanseatic inspiration 8+1 Ships 5 Ships Discovery 2,076 BERTHS Built: 1996 / Ref. 2016 Discovery 2 1,832 BERTHS Built: 1995 / Ref. 2017 1,814 BERTHS Built: 1995 / Ref. 2019 Explorer 2 Explorer 1,924 BERTHS Built: 1996 / Ref. 2018 1,886 BERTHS Built: 1997 / Ref. 2023 Voyager 5 Ships 3 new ships since 2024 Modern Luxury/Expedition fleet Well positioned concept, refleeting required Capacity growth: Modern & growing fleet1 76
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• 86% balcony cabin • Outdoor area of 14k sqm and indoor area of 32k sqm • Ship powered by dual fuel: MGO (no heavy fuel oil) & LNG readiness • Equipped with Shore Power Connection & Novel Waste Management • 4,010 Lower berth 21 decks, 2,016 pax cabins, 15 restaurants, 18 bars, 18 lifts • MS Flow to be delivered in 2026 1 Capacity growth: New Mein Schiff Relax 77
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CAGR '24-'30 1 Capacity growth: Marella re-fleeting considerations • Market potential supported by a global consulting firm analysis • UK cruise market 3rd largest globally • 9% growth predicted • Flight cruise demand expected to grow 11% • Based on current order books, supply gap from 2028 onwards 50% 50% 2024 45% 55% 2030 €5.3bn €9bn UK CRUISE MARKET +7% +11% Flight cruise Non-flight Cruise 9% CAGR Note: Global consulting firm assumptions78
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• Well established niche product • Flight cruises market leader • Record profit levels • Aging fleet 1 Capacity growth: Marella re-fleeting considerations 61 83 106 120 62 141 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Covid crisis Und. EBIT Marella (€m) -254 -131 -41 79
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More than double Marella profits 1 • In discussion with yards • Currently considering 2 vessel orders • New-build slots tentatively available from FY31 onwards • Based on design customised for UK market • Customary financing expected: ECA (80% debt / 20% equity) • Attractive business case Capacity ~3,200 LB Revenues ~€500m EBIT €130m-€150m ROIC 11~12% Indicative business case (1 new ship) 1 Lower berth (1) Capacity growth: Marella re-fleeting considerations 80
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2 • Product tailored to UK market • All-inclusive contemporary cruises • Leader in flight cruises • Retrofitting ESG measures to uplift technology • Net promoter score: 64 • High-end differentiation • #1 in German expedition and luxury cruise market • Outstanding customer service levels • Net promoter score: 94 • Inventor “All Inclusive“ cruises • #1 German premium cruises • Relaxation differentiation • Modern fleet with latest ESG technologies • Net promoter score (NPS): 80 1 TUI Cruises & Hapag-Lloyd Cruises Post Holiday CSQ on-board, Net Promoter Score = Share of Promoters deducted by Share of Detractors, data as of September 2024 (1) (1) (1) Product differentiation: UK & DACH niche positioning 81
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3 • App channel in UK and Germany growing • API to broaden dynamic distribution channels • T arget further source markets API Product capacity TUI Markets + Airline (Europe) App & Web (B2C) B2B / OTAs (US) Distribution platforming: B2C growth and expanding geographical reach 82
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Strong Cruises results as basis for further growth FY24 Marella (100%) TUI Cruises (pro rata) Total # ships 5 12 17 EBIT (€m) 141 2331 374 "TUI shareholder EBIT/pro rata EAT” (€m) 141 2331 374 ROIC 17.5% ≈ 14%² / 38%³ ≈ 26% • Strong niche product demand • Mid-term refleeting required • Strong niche product demand • Capacity expansion 1 Pro rata EAT | 2 Based on 100% TUI Cruises EBIT | 3 ROE83
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TUI Musement – Building a global, growing & profitable Experiences business New picture
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Setting the scene: TUI Musement business back to pre-covid levels Und. EBIT TUI Musement (€m) • TUI Musement acquired in 2018 • Dynamic connection of own destination product and TUI markets • Strong city product growth • Return to pre-Covid profit levels General note: FY19 and before financials based on IAS 17 45 56 23 36 49 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Covid crisis -115 -105 85
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2018 2024 ASP €66.2€55.8 EBIT €49m€45m Delta +18.6% +8.9% Successful strategic development of our TUI Musement business % own product 54%47% +7 pp. CSAT 8.18.0 +1% Experiences sold 10.5m4.4m +138% Transfers sold 30m22m +36% Tours sold 165k157k1 +5% 1 2018 without TUI Musement & B2B OTA86
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217.3 91.9 105.8 137.9 180.8 209.6 229.2 246.7 265.8 2019 2020 2021 2022 2023 2024 2025e 2026e 2027e +8.2% Retail Value (Retail Selling Price) Global Experiences Market (in €bn) Global experiences market growing strongly (1) 1 Source: Euromonitor Travel August 2024, Global Experiences Market, Retail Value, constant prices and fixed fx rates Global Experiences Market: CAGR (2024-2027): 8.2% 87
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• TUI Musement with higher vertical integration vs competition • Own differentiated products • Strongly growing and profitable • TUI marketplace cross- and upselling TUI Musement well positioned for strong profitable growth Distribution Curation Production 88
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Capacity growth • Continued Sun & Beach growth, in particular own products • Further city growth • B2C and B2B growth • Platforming of Transfer and Multi-Day Tours verticals • Exclusive TUI collection offers • Things to do for tourists and for locals in cities • Extended product offering keeps customer in TUI ecosystem Distribution platforming Product differentiation 1 2 3 TUI Musement – our strategic growth agenda 89
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Capacity growth: Own differentiated experiences1 • Continued Sun & Beach growth, in particular with own products • Further city growth • Product catalogue: +45,000 Experiences >10m Experiences sold 90
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Product Differentiation: Fever partnerships boosts “things to do for locals” • Fever partnership for UK and Germany • Initially, 50 local experiences live – potential of up to 3,000 in the future • Immersive experiences, museum, local concert tickets… • “Things-to-do for locals” to power TUI marketplace frequency 2 91
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3 Distribution platforming: TUI Musement showcase for Central Customer Ecosystem monetization • White label distribution • Customer to TUI ecosystem B2C TUI Marketplace B2B / OTAS • Reach in additional source markets • Customer to TUI ecosystem • Data-driven cross/upsell – double digit growth • Empower TUI Marketplace • Frequency driver • Experience as package “ingrediant” Central Customer Ecosystem 1 Experiences sold in FY24 <1m (1) 4m (1) (1) <7m 92
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3 Distribution platforming: Digitalisation of Transfer and Tours vertical B2C App & web Central Production Platform Own products 3rd party products Experiences • Expand B2C App & Web and B2B OTA channels outside of TUI • Platforming of Transfer and Multi-Day T ours verticals Transfers Tours TUI TO B2B / OTAs 93
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Strong TUI Musement results as basis for further growth 2024 €66.2 €49m Delta YoY +1% +36% >50% +4 pp. ASP EBIT % own product • +36% EBIT growth YoY • Expansion of own product portfolio well on track • TUI Musement driving frequency and product innovation for TUI Marketplace 94
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TUI Financial Roadmap Mathias Kiep, Chief Financial Officer
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AGENDA Introduction1 Segment Deep Dives2 3 Group Financials 4 Summary
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TUI: The world‘s leading integrated tourism business – Financial perspectives Integrated business model – growth, returns and differentiated products Holiday Experiences: differentiated products with high margins & ROICs delivering derisked growth Markets + Airline: efficiencies through transformation, delivering growth through Dynamic Packaging & Platforming – driving superior HEX KPIs through sale of their unique products 1 2 3 97
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Tour Operator Airline Markets + Airline Integrated business model – Scale in M+A supporting HEX performance 98 11m customers / 42% from M+A / 15% Direct 0.3m customers / 81% from M+A 0.7m customers / 18% from M+A 30m Transfers / 84% from M+A 10m Experiences sold / 47% from M+A • 14.4m package customers, o/w 3.0m Dynamic • 25% in a TUI hotel • c. 30% buy a TUI Musement Experience 1 12.6m HEX customers include 58% of H&R customers, 100% of Cruises customers and 53% of TUI Musement Experiences customers 20.3m customers Dynamic 15% 3P 34% Holiday Experiences Hotels & Resorts TUI Cruises Marella TUI Musement 100% business 64% M+A / 15% Direct RIU 33% M+A / 17% Direct JVs 48% M+A / 9% Direct 12.6m direct/3rd party customers1 TUI 51% 32.9m Group Customers
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AGENDA Introduction1 Segment Deep Dives2 3 Group Financials 4 Summary
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GROUP MARKETS + AIRLINE TUI MUSEMENT CRUISES HOTELS & RESORTS TUI Group operational performance & Und. EBIT guidance FY24 FY25+1 €668m FY25 Guidance €374m Mid-term Modelling Considerations€49m Und. EBIT €304m General note: FY19 financials based on IAS 17 | 1 Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainties currently known | 2 FY19 includes impact of MAX grounding of -€293m €1,296m FY19 €452m €366m €56m €132m2 €893m €426m MAX adj. 100 Growth by c. 7-10%
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General note: FY19 financials based on IAS 17; ROICs incl. Goodwill | 1 Includes further brands, representing all Hotels & Resorts 100% business | 2 RIU FY24 excludes €1m equity result; FY19 excludes €46m RIU Hotels equity result (before sale of real estate portfolio to RIU family in July 2021) Hotels & Resorts – Financial profile considerations Hotels & Resorts FY24 Segment EBIT FY19 €90m €73m o/w Robinson / Magic Life / TUI Blue1 €113m €97mo/w EAT JVs €668m €452m 101 €47m €59m +48% ROIC 18% 14%+4%pts Occupancy 82% 82%Vertical integration Dividends to TUI €465m €281mo/w RIU2 Includes RIU Hotels JV, sold in FY21 +65% +24%
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Hotels & Resorts – Financing structure Hotels & Resorts 37% 51% 8% 4% Ownership Managed Leased Franchised T otal 365 €668m Und. EBIT €465m Und. EBIT €90m Und. EBIT €113m EAT (TUI Und. EBIT) RIU1 Robinson/ Magic Life/TUI Blue2 Joint Ventures 292k beds 31% 64%5% T otal 99 110k beds 34% 20% 28% 19% T otal 803 59k beds 37% 62% 1% T otal 186 122k beds FY24 numbers, excluding 68 third party concept hotels (365 Group hotels reflect the Hotels & Resorts segment in FY24) | 1 RIU FY24 excludes €1m equity result | 2 Includes further brands, representing all Hotels & Resorts 100% business | 3 32 TUI Blue hotels (4 mgmt., 11 franchise), o/w 9 in Asia (+6 in FY24)102
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Hotels & Resorts – Growth considerations FY25+ Segment EBIT Slight growth in FY25 (FY24 €668m) • Annualised earnings increase from growth CAPEX (first returns after 3Y) • T arget ROIC on growth investments significantly above FY24 WACC of 11%2 Modelling • JV Dividend Policy: C. 30% pay-out • Each add. mgmt./franchise hotel c. €300k EBIT contribution p.a. (2Y profitability ramp up) FY22 1 incl. Concepts | 2 WACC before tax Portfolio Growth1 o/w Management/ Franchise Ownership Net Investments FY23 FY24 FY25e FY26e 38% 62% 61% 39% 61% 39% ~60% ~40% €176m €194m €277m c.€320m Growth Maintenance Slight increase in growth investments in FY26/27 +4 +6 +9 Earnings Drivers +1 +5 +7 +11 +23 FY27+ +15 c.+25c.+15 c.+20 FY25 Q1 contribution: €150m (+€60m) • Portfolio growth, increased rates & high occupancies 103
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Cruises – Financial profile considerations Cruises FY24 Segment EBIT FY19 €233m €203m1o/w EAT TUI Cruises €141m €121mo/w Marella €374m €366m General note: FY19 financials based on IAS 17; ROICs incl. Goodwill | 1 Prior to sale of Hapag-Lloyd Cruises to the TUI Cruises JV104 Dividends to TUI €20m €170m First normalised year post pandemic Symbolic return to dividends in FY24 +17% ROIC 26% 23%+3%pts Occupancy 99% 100%Stable despite Suez FY25+: Expect dividends to return to pre-pandemic levels of at least €170m
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~6 months / – 12 months / 3-4 months €50m - €60mEAT p.a. Months operational FY24 ~4 months Cruises – Growth considerations FY25+ Segment EBIT Slight growth in FY25 (FY24 €374) 2,894# berths Modelling MS 7 (June 24) o/w TUI 50% p.a. MS Relax / MS Flow (March 25 / FY26 Q3) TC New Builds 100% annualised €25m - €30m €70m - €80m – 3,984 €35m - €40m • TUI Cruises Dividend Policy: Expect TUI Cruises dividend FY25+ to return to pre-pandemic levels of at least €170m • The Cruise sector is impacted by increasing ESG costs in FY25+ and FY25 still faces changes in route mix due to Middle East conflict FY25 Q1 contribution: €48m (+€14m) 105 FY25 12 months % Capacity addition +18% +21% FY26 12 months
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• TUI Group capital allocation strategy prevails • T arget delivery dates from FY31 onwards Marella re-fleeting consideration with 2 new build cruise ships, earliest FY31 Marella New Build Strong market demand & growth industry Re-fleeting existing capacity Well established business & platform Design customised for UK market • Slot availabilities to be confirmed with yards • Partnership structures for Marella remain an option • 2 ships, ~3.2k berths each 106 Differentiated product / derisked growth Path to refleeting
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Marella re-fleeting consideration – Promising growth opportunity, derisked through proven business model & vertical integration 1 Excluding impact of potential delivery Financial Strategy • Increase of TUI Cruises dividends beyond historical levels • Depending on slot availabilities, limited FY25 investments of mid-double digit €m Source Equity Contribution 80% Export Credit Agency (ECA) financed 20% Equity TUI remains committed to capital allocation framework • Disciplined capital investment • Strong balance sheet metrics with Net Leverage target of strongly below 1.0x1 • Net Leverage still expected below 1.0x based on an annualised pro-forma re-fleeting case • Driving profitable growth • Improving cash flow • T arget to define shareholder return strategy by end of 2025 Customary Market Financing Expected 107 • 20% down payments are usually phased over a 5-year period
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TUI Musement – Financial profile considerations 108 TUI’s integrated model drives profitability – target to expand experiences sold by low double-digit CAGR TUI Musement FY24 Revenue FY19 €49m €56mUnd. EBIT €931m €856m+9% Return towards FY19 levels # Experiences sold 10.0m €9.7m # Transfers 30.5m €31.0mReturn towards FY19 levels General note: FY19 financials based on IAS 17 o/w Own Experiences 5.3m c. 30% Uptake rate FY24: Own Experiences on offer increased to 20k (~+10% YoY) Own product sales as future profitability driver
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Markets + Airline – Financial profile considerations Our transformation strategy drives first successes – same pax with less operational gearing & risk FY24 FY19 PAX Revenue EBIT Margin A/C Fleet A/C Financing 20.3m o/w 3.0m dyn. package 20.6m o/w 1.6m dyn. package €20.2bn €16.0bn 1.5% 0.8% 125 o/w 42 B737 MAX 148 o/w 16 B737 MAX €2.2bn €2.7bn Broadly stable +26% -23 -€0.5bn +0.2%pts vs. PY On track to further improve 2.7% MAX adj. 109 Markets + Airline General note: FY19 financials based on IAS 17
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FY19 €426m MAX adj. Markets + Airline – Cost structure deep dive & segment recovery FY24 Ext. Revenue €20.2bn €2.9bn Cost of Sales (%Rev.) -10%Distr. Cost (%Rev.) Gross Profit 2 €0.9bn (+15%) (+17%) (+11%) P&L Snapshot Gross Profit 1 -86% Overhead Cost (%Rev.) -3% Und. EBIT €304m (+28%) o/w Accommodation -48% o/w Airline/3P Flying -32% o/w Other -6% Fuel -6% 110 FY24 €304m Northern Region Central Region Western Region % Margin 1.5% (+0.2%pts) Und. EBIT by region(vs. PY)
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Markets + Airline – Growth considerations FY25 Segment EBIT €304m FY24 -€30m Q1 Q2 Q3 Q4 FY25e Moderate growth • Q1: -€125m Und. EBIT (-€30m) • H2 performance will be driven by 1. C. €30m Easter shift into Q3 2. General improvements in Nordics & Western Region 3. 3P/Dynamic & Wholesale growth leads to improved fix-cost cover 4. Improved hedging YoY (better fuel/fx rates) 5. Overhead cost savings €30m Easter Shift 111 Modelling Moderate growth in FY25 (FY24 €304m) Q1 EBIT : -€125m (-€30m)
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Markets + Airline – Transformation value creation: Und. EBIT building blocks FY25+ Transformation will deliver profitable growth for M+A, with our initiatives improving margin to above pre-pandemic levels in the mid-term Und. EBIT in €m 304 FY24 Transforming Tour Operator to Global Curated Leisure Marketplace Commercialising Airline Operational Excellence Mid-term 1.5% EBIT Margin T arget >3% EBIT Margin • Supplier re-negotiations • Marketing effectiveness • Conversion rate improvement • Overheads reduction • Dynamic, risk-right growth • Own products • More product categories • App First personalisation • AI-powered global platforms • Lean organisation • New revenue streams • Network & fleet optimisation • Efficient operations 112
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AGENDA Introduction1 Segment Deep Dives2 3 Group Financials 4 Summary
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Financial comments Expect FY25 Revenue to increase by 5-10% Expect FY25 Und. EBIT to increase by 7-10%, driven by Summer Slight growth Slight growth Strong growth Moderate growth FY25 assumption: -€40m to -€60m – mainly for M+A transformation FY25 assumption: -€385m to -€415m FY25 assumption: und. effective tax rate of ~18% Development with RIU performance Income Statement – FY24 and financial comments In €m FY24 12M Revenue 23,167 Underlying EBITDA 2,120 Depreciation & Amortisation -823 Underlying EBIT 1,296 o/w Hotels & Resorts 668 o/w Cruises 374 o/w TUI Musement 49 o/w Markets + Airline 304 Adjustments (SDIs and PPA) -21 EBIT 1,275 Net interest expense -414 EBT 861 Income taxes -154 Group result cont. operations 707 Minority interest -200 Group result after minorities 507 Basic EPS (€) 1.00 Underlying EPS (€) 1.03 RCF CB, SSD, HYB Leases Asset fin. & other Split interest expenses1 1 Excludes interest income114
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No further UK cash-out expected from FY26 onwards (c.€80m) Financial comments Positive Working Capital expected with growth in revenue Can be driven e.g. by reversal of non-cash FX, maintenance valuation effects FY25 assumption: und. effective tax rate of c. 18%, in line with P&L FY25 assumption: -€290m to -€310m Full funding in UK expected in FY25 Q4 FY25 assumption: -€620m to -€680m FY25 assumption: Broadly stable vs. PY at -€0.5bn to -€0.6bn Cash Flow Statement – FY24 and financial comments In €m FY24 12M Underlying EBITDA 2,120 Adjustments 2 Reported EBITDA 2,122 Working capital 183 Other cash effects 114 At equity income -372 o/w Hotels & Resorts -113 o/w TUI Cruises -233 o/w Markets + Airline -13 Dividends received (JV's, associates) 67 T axpaid -152 Interest (cash) -296 Pension contribution & payments -140 Operating Cash Flow 1,526 Net Investments -602 Lease & asset financing repayments -542 Adj. Free Cash Flow before Div. 382 WSF SP I/II coupon payment 0 Dividends from subs. to minorities -146 Adj. Free Cash Flow after Div. 236 JV equity income is non-cash; cash is generated by dividend inflow from JVs – Expect TUI Cruises dividends to return to pre-pandemic levels of at least €170m, Hotel JVs pay-out c. 30% 115
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FY25e and beyond Net Investments growth driven by Boeing deliveries & Hotels • Between FY24-FY29, we expect TUI fleet size to be at c.125-137 • Option to flex capacity through using wet-lease aircraft equivalents • TUI evaluates different options for aircraft financing beyond current lease structures Order Book per 12/2024 FY24 FY25 FY26 FY27 FY28 FY29 5 10 11 14 11 2 FY25e Hotels IT Airline Cruises (Marella) €620m to €680m Further 22 MAX options • More projects in RIU & Robinson • Expect c.€320m net investments, o/w c.60% growth Hotels & Resorts Airline FY25e Expect broadly on FY25e levels but subject to Boeing deliveries and financing FY26+ 116
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Net Leverage – well below FY19 levels, on track to achieve target of strongly below 1.0x Net Debt 3.5 1.6 Slight improvement Financial Debt 5.3 4.5 o/w Convertible Bonds 0.0 0.5 o/w Senior notes 0.3 0.5 o/w SSD 0.4 0.2 o/w Leases & Asset financing1 4.1 3.3 Broadly stable o/w Other 0.4 0.0 Cash & Bank Deposits (1.8) (2.9) FY19 FY24 FY25ein €bn Excl. Boeing MAX cost impact 1.4x1 0.8x 1.6x <FY24 • Rating: Fitch initiation at BB; Moody‘s/S&P upgraded to Ba3/BB- • Hand back of remaining €214m KfW RCF end of January 25 • Extended maturity profile – Sustainability- linked RCF refinanced to FY30 & upsized from €1.7bn to €1.9bn2 1 FY19 on IAS17 basis plus fair value of operating leases -€2.6bn (at simplified discount rate of 0.9% at 30/09/2018) | 2 Cash facility upsized from €1.5bn to €1.7bn | Net Leverage defined as net debt (Financial liabilities plus lease liabilities less cash & cash equivalents less other current financial assets) divided by Underlying EBITDA117 Increase in FY25 Q1 vs. PY by €0.1bn reflects scheduled higher Net Investments in the quarter & non- cash impact from aircraft financing
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AGENDA Introduction1 Segment Deep Dives2 3 Group Financials 4 Summary
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GROUP MARKETS + AIRLINE TUI MUSEMENT CRUISES HOTELS & RESORTS TUI Group operational performance & Und. EBIT guidance FY24 FY25 Guidance1 €668m Slight growth based on portfolio growth, increased rates & high occupancies €374m Slight growth based on MS7 in full operations & delivery of new MS Relax against ESG costs & route mix €49m Strong growth while investing into business expansion Und. EBIT €304m Moderate growth Volume growth with higher ASP helping to mitigate the higher cost environment General note: FY19 financials based on IAS 17 | 1 Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainties currently known | 2 FY19 includes impact of MAX grounding of -€293m €1,296m Increase by 7-10% driven by Summer 25 FY19 €452m €366m €56m €132m2 €893m €426m MAX adj. 119
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Mid-term ➢ Und. EBIT c. 7-10% CAGR2 ➢ Target Net Leverage3 strongly below 1.0x Building blocks of growth TUI GROUP TUI MUSEMENT HOTELS & RESORTS CRUISES 1 WACC before tax | 2 Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainties currently known | 3 Defined as net debt (Financial debt plus lease liabilities less cash & cash equivalents & less short-term interest-bearing investments) divided by Underlying EBITDA Portfolio growth c.+15 FY25e, c.+25 FY26e, c.+20 FY27+ Management/franchise: c. €300k EBIT contribution Ownership: Target ROIC significantly above FY24 WACC of 11%1 from growth investments New build growth TUI Cruises Fleet Expansion FY24-FY26 MS 7/MS Relax/MS Flow Marella Refleeting in FY31+ Digital growth Grow the business by leveraging cross-/upselling opportunities Expand Experiences sold by low-double digit CAGR Mid-term target >3% EBIT margin Transformational growth MARKETS + AIRLINE 120
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FY24 Net Leverage of 0.8x Hand-back of state financing finalised Rating: BB (Fitch) and Ba3/BB- upgrades Moody‘s/S&P UK Pensions – 3rd remaining scheme fully funded in FY25e Progress with our financial priorities: positioning for future opportunities 1 Defined as net debt (Financial liabilities plus lease liabilities less cash & cash equivalents less other current financial assets) divided by Underlying EBITDA121 Well on track to define shareholder return strategy by end of FY25 FY24 €1.3bn record profit FY25 Und. EBIT guidance to increase by 7–10% JV dividend strategy in execution Define shareholder return strategy by end of FY25 3 • Return to credit rating in line with pre-pandemic rating of BB/Ba levels • Mid-term Net Leverage strongly below 1.0x1 Balance sheet 2 • Grow profits & cash flow • Grow JV dividends – hotels 30% pay-out & TUI Cruises to return to historical levels of at least €170m • Disciplined capital investments in asset right & JV growth 1 Drive profitable growth
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Summary Sebastian Ebel, Chief Executive Officer
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TUI’s global curated leisure marketplace – benefits of vertical integration propelling growth Markets + Airline Marketplace ▪ European market leader ▪ Global reach through scalable platforms ▪ Curated leisure products ▪ Dynamic growth ▪ App first and AI focus TUI's Unique Synergy Fly Wheel TUI WELL ON TRACK TO DELIVER: MID-TERM AMBITIONS TO GROW UND. EBIT BY C.7-10% CAGR TO GROW THE COMPANY WITHOUT INCREASING OPERATIONAL RISK Key KPI: Revenue + Margins Holiday Experiences: Hotels, Cruises, TUI Musement ▪ Lighthouse products ▪ Differentiated + unique ▪ Experiences marketplace ▪ Asset right growth ▪ Expansion into new destinations Key KPI: ROIC 123
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FINANCIAL CALENDAR 24/25 March 2025 Capital Markets Day 14 May 2025 FY25 Half-Year Results 13 August 2025 FY25 Q3 Report 23 September 2025 Pre-Close Trading Update 10 December 2025 FY25 Annual Report ANALYST AND INVESTOR ENQUIRIES Nicola Gehrt, Group Director Investor Relations Tel: +49 (0)511 566 1435 Adrian Bell, Senior Investor Relations Manager Tel: +49 (0)511 566 2332 Stefan Keese, Senior Investor Relations Manager Tel: +49 (0)511 566 1387 Zara Wajahat, Investor Relations Manager Tel: +44 (0)158 264 4710 Anika Heske, Investor Relations Manager, Retail Investors & AGM Tel: +49 (0)511 566 1425 Brenda Bedaam, Junior Investor Relations Manager Tel: +49 (0)511 566 1442 Celina Kiesling, Team Assistant Investor Relations Tel: +49 (0)511 566 1426