TUI AG
TUI AG (TUI)
TUI GROUP INTERIM REPORT 9M FY2021 1 OCTOBER 2020 - 30 JUNE 2021
12-Aug-2021 / 08:00 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
-----------------------------------------------------------------------------------------------------------------------
TUI GROUP
Interim report 9M FY2021
1 October 2020 - 30 June 2021
Interim Management Report
-- Restart of operations - 1.5m summer bookings added since H1 2021 update1
-- 876k customers departed in Q3 2021, vs. 159k in Q2
-- Rebound of customer deposits - positive cash flow from operating and investing activities in Q3
-- Improved liquidity position - current headroom as of 9 August 2021 increased to ?3.1bn2
-- Successful refinancing - Upsizing of April convertible bond through ?190m tap issue
-- Further progress with asset-right strategy - Disposal of RIU Hotels S.A. (real estate portfolio) to Riu family;
disposal proceeds of ?541m received end of July 2021. Management of 100 Riu hotels unchanged in our subsidiary
RIUSA II S.A.
-- Extension of maturity profile - RCF extension by 24 months to July 2024 and covenant waiver agreed for September
2021 and March 2022.
-- Global Realignment Programme - reaffirmed to deliver half of ?400m savings by end of current financial year
-- Acceleration of digital strategy - package holiday customer app usage up by 21% pts to 68% in Q3
1 Since last updated bookings position 2 May 2021
2 Available liquidity defined as unrestricted cash plus committed lines including financing packages, convertible bonds
and proceeds from RIU Hotels S.A disposal
TUI Group - financial highlights
? million Q3 Q3 2020 Var. % 9M 2021 9M 2020 Var. % Var. % at constant
2021 currency
Revenue 649.7 71.8 + 1,365.9 6,710.4 - 79.6 - 79.4
805.4
Underlying EBIT1
Hotels & Resorts - 70.3 - 364.1 + 80.7 - 268.6 - 308.0 + 12.8 + 9.8
Cruises - 81.3 - 224.3 + 63.8 - 234.6 - 197.3 - 18.9 - 19.4
TUI Musement - 34.7 - 37.6 + 7.7 - 96.7 - 66.5 - 45.3 - 47.2
Holiday Experiences - - 626.1 + 70.2 - 599.9 - 571.9 - 4.9 - 6.9
186.3
Northern Region - - 177.2 - 63.6 - 708.1 - 592.4 - 19.5 - 18.8
289.8
Central Region - - 219.2 + 51.9 - 377.4 - 398.7 + 5.4 + 5.4
105.4
Western Region - 87.6 - 96.3 + 9.1 - 247.3 - 285.9 + 13.5 + 14.3
Markets & Airlines - - 492.7 + 2.0 - - - 4.4 - 3.8
482.7 1,332.8 1,277.0
All other segments - 0.8 - 53.4 + 98.6 - 45.9 - 118.0 + 61.1 + 61.0
TUI Group - - + 42.9 - - - 0.6 - 0.8
669.8 1,172.2 1,978.6 1,966.9
EBIT1 - - + 48.6 - - + 7.1
748.0 1,456.1 2,046.6 2,202.0
Underlying EBITDA - - 622.4 + 27.9 - -888.4 - 46.9
448.7 1,304.8
EBITDA2 - - 794.2 + 38.1 - - 991.1 - 33.5
491.4 1,322.9
Group loss - - + 37.7 - - - 4.9
939.8 1,509.6 2,438.0 2,324.7
Earnings per share ? - 0.85 - 2.51 + 66.1 - 2.66 - 3.98 + 33.2
Net capex and investment - 14.4 - 222.8 + 93.5 - 122.8 64.4 n. a.
Equity ratio (30 June)3 % - 3.6 6.4 - 10.0
Net financial position (30 - - - 8.2
June) 6,348.7 5,866.2
Employees (30 June) 46,518 42,093 + 10.5 Differences may occur due to rounding.
This Quarterly Report of the TUI Group was prepared for the reporting period 9M FY2021 from 1 October 2020 to 30 June 2021.
1 We define the EBIT in underlying EBIT as earnings before interest, income taxes and result of the measurement of the Group's interest hedges. For further details please see pages 16 and 48.
2 EBITDA is defined as earnings before interest, income taxes, goodwill impairment and amortisation and write-ups of other intangible assets, depreciation and write-ups of property, plant and equipment, investments and current assets.
3 Equity divided by balance sheet total in %, variance is given in percentage points.
Q3 2021 Summary
Trading position -- Strong pipeline of 4.2m customers booked for Summer 2021 season - a increase of 1.5m bookings since H1 update,
driven by good momentum from our continental European markets. -- Adjusting for the latest changes in travel restrictions imposed across our markets, we have flexed our capacity
plan assumption for our peak summer season (July to October) to 60% (of Summer 2019 volume).
Operational and financial update -- Q3 Group revenue of ?650m reflecting the restart of travel across our markets and reopening of destinations ahead
of the key Summer period. -- Within Hotels & Resorts, 283 hotels (79% of Group portfolio) were open at end of the third quarter, across
destinations such as Balearics, Canaries, North Africa, Greek Islands, Mexico, Turkey and Cuba, delivering average
occupancy rate of 48% and average revenue per bed of ?70. -- In Cruises, TUI Cruises and Hapag-Lloyd Cruises stepped up operations in the quarter, with seven out of eleven
ships offering itineraries across Europe during the third quarter. TUI Cruises has sailed continuously since July
2020. Our UK cruise brand, Marella Cruises resumed operations on the 25 June 2021, with Explorer being the first
ship to recommence sailings since March 2020. -- Markets & Airlines took away 876k customers during the third quarter, mostly from our Central and Western region
markets, who were able to travel to destinations such as Greece, the Balearics and Canaries. -- Q3 Group underlying EBIT loss of ?670m, reflecting partial operations, offset by ramp-up costs across our business
ahead of our peak summer period. -- Net debt improved to ?6,349m versus our net financial position of ?6,813m as of 31 March 2021 (Q2). The ?464m
improvement in net debt in the third quarter reflects particularly cash generation from customer bookings. -- Rebound of customer deposits - Q3 2021 is the first quarter to deliver positive cash flow from operating and
investing activities since the start of the pandemic, reflecting the strong pent-up demand, with government
regulation a clear limiting factor to our operations. -- We successfully placed convertible bonds with a total nominal amount of ?400m in April 2021 and a further tap issue
for nominal amount of ?190m post balance sheet date in early July, issued on the same terms. -- Further delivery of our asset-right strategy, decoupling of hotel growth and real estate investments, we agreed the
sale of our 49% minority stake in RIU Hotels S.A real-estate joint venture for an enterprise value of ?1.5bn to
Saranja S.L, an entity of the Riu-Group. The transaction will generate net cash consideration including earn-out of
up to ?670m. The transaction closed post balance sheet date on 31 July 2021 with initial cash proceeds received of
?541m (excluding earn out) and is expected to create a significant book gain of ?200m in Q4 FY 2021. -- Including both the new convertible bond and tap issue, and proceeds from the sale of RIU Hotels S.A. joint venture,
our pro-forma cash and available facilities as of 9 August 2021 improved to ?3.1bn1. -- RCF maturity date extension agreed from July 2022 to July 2024, with covenant waivers agreed for September 2021 and
March 2022. -- Reaffirm Global Realignment Programme is on track to achieve our cost savings target of ?400m p.a by FY 2023.
Reflecting our accelerated plans to transform into a more agile and leaner business, we expect to deliver 50% of
our targeted savings by end of the current financial year.
1 Available liquidity defined as unrestricted cash plus committed lines including financing packages, convertible bonds and proceeds from RIU Hotels S.A disposal
?400m placement of convertible bonds plus tap issue of ?190m
In April 2021, we successfully completed the placement of a senior unsecured convertible bonds for ?400m and post balance sheet date, a further tap issue for ?190m, both of which were oversubscribed. The new tap issue bonds for ?190m are convertible into new and/or existing no-par value ordinary registered shares of TUI and are fully fungible with the ?400m convertible bonds issued on 16 April 2021.
The new bonds are issued on the same terms (save for the issue price) as the existing bonds issued in April and will form a single series (Gesamtemission) with the existing bonds.
The bonds have been offered at a coupon rate of 5% and utilises 10% of conditional capital authorised at our recent AGM, representing 110m underlying shares.
(MORE TO FOLLOW) Dow Jones Newswires
August 12, 2021 02:00 ET (06:00 GMT)
