Presentation Media Call
13 May 2015
Taking TUI to the next level:
The World’s Leading Tourism Business
TUI GROUP | Media Call | 13 May 2015
H1 results
2
TUI GROUP | Media Call | 13 May 2015
TUI Group with strong H1 performance
•
14% improvement in underlying
EBITA
1
Source markets in line with
expectations
Strong performance in Hotels &
Resorts as well as Cruises
•
Underlying EBITA improved to a seasonal loss of €273m (H1 2013/14: €-341m)
Includes €16m profit on sale of Riu Waikiki; €14m Easter
impact, the favourable new financing for Europa 2 and €2m
adverse foreign exchange translation
•
Source Markets improved operating loss to
€-265m (H1 2013/14: €-271m) with good performance in
Northern and Western Region
•
Underlying EBITA of Hotels & Resorts improved to €35m (H1
2013/14: €33m) including former TUI Travel hotels; excluding €16m
profit on sale of Riu Waikiki & favourable foreign exchange translation
Cruises increased profitability to €13m, up €29m, excluding financing
for Europa 2
•
Remain confident of delivering full year underlying operating profit growth of 10%
to 15% at constant currency
1
3
excluding profit on sale of Riu Waikiki, Europa 2 refinancing benefit and foreign exchange translation
TUI GROUP | Media Call | 13 May 2015
We’ve strongly improved our Underlying EBITA
Underlying EBITA H1 2014/15 bridge (€m)
4
TUI GROUP | Media Call | 13 May 2015
Strategy update
5
TUI GROUP | Media Call | 13 May 2015
Member of the*
Group Executive Committee
Executive
Board
We are becoming more agile and competitive through flatter hierarchy
Friedrich
Joussen
Peter Long
Sebastian Ebel
Horst Baier
•
Joint CEO
Joint CEO
CFO
•
•
•
•
Central Region
Hotels & Resorts
Cruises
Inbound Services
IT & Central
•
•
•
Specialist &
Activity
Hotelbeds
Group
LateRooms
Group
•
•
•
Elie
Bruyninckx
Thomas
Ellerbeck
Erik
Friemuth
Kenton
Jarvis
Dr. Hilka
Schneider
Western
Region
Group
Director
Corporate &
External
Affairs
Group Chief
Marketing
Officer
Group
Director
Controlling
and FD
Tourism
Group
Director
Legal,
Compliance &
Board Office
*Christian Clemens will be a member of the Group Executive Committee until his resignation as CEO TUI Deutschland at the end of this year
6
David
Burling
Will Waggott
TUI GROUP | Media Call | 13 May 2015
Northern
Region
Hotel
concepts
Aviation
We create a clear structure to deliver growth and value
Tourism Business
Northern Region
Other Businesses
Hotels & Resorts
Hotelbeds Group
Central Region
Western Region
Cruises
Inbound Services
Held for sale
(from 2015/16)
LateRooms Group
Platforms (aviation & customer/IT)
7
TUI GROUP | Media Call | 13 May 2015
Specialist &
Activity
Hapag-Lloyd AG
The World’s Leading Tourism Business
Accommodation
>7m customers
Integrated
platforms
Inbound
Service
11m customers
Integrated
management
Marketing •
& Sales
>20m customers
Strong positions in all parts
of the value chain
• Business risk minimised
through integrated decision
making
Flight
13m customers
• From growing profits to
profitable growth
Customer numbers based on 2013/14, including JVs. Marketing & Sales includes Northern Region, Central Region and Western Region; Flight includes Corsair and TUIfly passengers
flown for Air Berlin; Inbound Service relates to in-house customers only; Accommodation includes former TUI AG hotels and cruise customers, former TUI Travel hotels customers and
Blue Diamond (Canadian JV) customers
8
TUI GROUP | Media Call | 13 May 2015
Marketing & Sales –
We will operate our business throughout Europe with one brand*
• If we set up our company today we
would build it on one brand
• If we fast forward into the future one
brand would be necessary to compete,
particularly online
• We will ensure that we don’t lose the
benefits of our local brand equity
* The implementation takes place with respect for all interests of third parties and existing contractual obligations
9
TUI GROUP | Media Call | 13 May 2015
Phase 1
Marketing & Sales –
We are starting our brand migration process right now*
NL
Introduce TUI
FR
Phase 2
BE
Nordics
UK
Supporting
Workstreams
Airline rebranding, destination & airport rebranding, external & internal communication, IT migration
* The implementation takes place with respect for all interests of third parties and existing contractual obligations
10
Phased approach
allows transfer of
best practice and
enables us to
minimise risk
TUI GROUP | Media Call | 13 May 2015
Flight –
We operate Europe’s 7th largest airline fleet
8 aircraft
59 aircraft
10 aircraft
22 aircraft
Aircraft numbers as at 31 September 2014; TUIfly excludes aircraft leased out to Air Berlin; Corsair excluded from above figures
11
TUI GROUP | Media Call | 13 May 2015
29 aircraft
Central Platform
Flight –
We will implement a central platform with local airlines
Organisational structure
•
•
One central organisation across 5 AOC’s
One engineering & maintenance function
Business model /
ways of working
•
•
•
•
Full interoperability among fleet & crew
One IT landscape serving all AOCs
Fully joint long-haul planning to optimised utilisation
Common fleet deployment & capacity planning process
Scale
•
•
One procurement organisation leveraging scale on all contracts
Common supply chain & process
•
•
Crew rostering
Flight planning
Local airlines
Delivering operational efficiency improvement
12
TUI GROUP | Media Call | 13 May 2015
Inbound Service –
We will integrate all our reps into one organisation
Delivering our differentiation strategy
in all destinations
One organisation
Over 6,500
employees
11m
customers
109
destinations
Service
Transport
Transfers
Excursions
Handling
Being fully integrated within Tourism
Customer
experience
Sales
Increase NPS and CSQ
Increase sales & margin
Cost
People
engagement
Reduce cost of sales & overheads
Increase engagement scores
Bringing World of TUI to life
Figures shown relate to Inbound Services business which is being moved from Hotelbeds Group to Tourism
13
TUI GROUP | Media Call | 13 May 2015
Accommodation –
We grow with our strong Hotel and Club Brands
Hotels
Brand
Strategy
(30/9/14)
Distribution
Expand & internationalise
the club product
Continue to grow the
highly profitable brand
Other
Footprint
Clubs
Nth Africa
Med
Caribbean
~50% through TUI
Our new brand :
New hotels plus
repositioning of
some existing
brands
Nth Africa
Other
Med
Nth Africa
>75% through TUI
Targeting ~60 new hotels by 2018/19
14
TUI GROUP | Media Call | 13 May 2015
Med
95% through TUI
Accommodation –
We will achieve profitable growth in our Cruise business
Brand
Fleet
4*
(+2 on order)
5
4
Structure
JV with Royal
Caribbean
Customer Proposition
Premium all-inclusive,
German-speaking
Part of Northern Region Wide range of great value cruises
Subsidiary
Luxury & expedition cruising
Cruise company management to become more integrated over time
*Fleet includes Mein Schiff 4 (delivers June 2015)
15
TUI GROUP | Media Call | 13 May 2015
Other businesses –
We run this businesses independently to maximise growth and value
Hotelbeds
Group
16
•
•
•
•
Optimise strategic future through standalone operation
Run as independent business
Inbound Services being integrated into Tourism
Evaluating our options
Specialist &
Activity
• Portfolio of businesses
• Run independently and managed for value
LateRooms
Group
• Held for sale
Hapag-Lloyd AG
• Held for sale
TUI GROUP | Media Call | 13 May 2015
We are taking TUI to the next level –
The World’s Leading Tourism Business
• Merger integration ahead of our original plan - we are working well together
• New organisation structure in place - a flatter, more agile structure
• Strong and sustainable business model with exciting growth prospects
• 10-15% EBITA growth this year
• At least 10% CAGR over the next three years
• Committed to progressive dividend growth
Well positioned to deliver underlying EBITA CAGR of at least 10%
over the next three years
17
TUI GROUP | Media Call | 13 May 2015
Q&A
TUI GROUP | Media Call | 13 May 2015