TUI Group Investor Presentation
April 2019
What is TUI Group?
Hotel & Resorts, Cruises and Destination Experiences holiday experiences "product"
provider with own distribution and fulfilment
%
%
KEY HIGHLIGHTS
27mcustomers (1)
€19.5bn revenues
€1.15bn EBITA(2)
23.0% ROIC
10.9%(3)earnings growth
HOLIDAY EXPERIENCES
€426mLeading leisure hotel and club brands around
EBITAthe world; investments, operations, ownership
€324m
EBITALeading German & UK cruise brands
€45mTours, activities and service provider in
EBITAdestination
MARKETS & AIRLINES
€453mMarket leaders in packaged distribution, fulfilment, EBITAstrong market and customer knowledge
1 21m Markets & Airlines plus further 2m from Cruise and from our strategic joint ventures in Canada and Russia totals 23m; in addition 4m from customers direct and via 3rdparty channels to our Hotels & Resorts and Cruise brands 2 Underlying; 3 According to company guidance earnings growth is at constant currency
2TUI GROUP | Investor Presentation | April 2019
Market environment: TUI has moved on and developed into an integrated provider of Holiday Experiences
OTAs
"Depth of offering"
•Agent model, trading margin
•No/ limited risk capacity
•Increasingly dynamic packaging
Airlines
"Ancillary packages"
•Airline as core business
•Packages asadd-on and to de-risk flight capacity
•Trading margin on hotels
•Increasingly direct hotel sourcing
1 Prepayments and volume guarantees
3TUI GROUP | Investor Presentation | April 2019
Tour operators
"Packaged holidays"
•Packaging of hotel & flight, fulfillment
•Trading margin leveraged by
̶Flight risk capacity
̶Hotel commitments1
Potential new entrants
•Global tech companies
"Best and unique product,
individualised offering"
•Dynamic packaging
•Own hotels, flights and cruises:
̶Yielding of risk capacities
̶Own distribution & fulfillment
̶Double diversification
Our business model: Product-focused holiday provider with almost 70% Holiday Experience earnings
Markets & Airlines - ~30% EBITA | |||||||||||||||||
HOLIDAY EXPERIENCES - ~70% EBITA | |||||||||||||||||
Rest | Own & Committed | ||||||||||||||||
Growth, diversification | |||||||||||||||||
Digitalisation, efficiency, diversification 23m customers1 | 4m customers2 | ||||||||||||||||
~150 TUI Aircraft, | Owned / managed / JV | 3803 | |||||||||||||||
3rd party flying | Integrated | Hotels | 3rd party | ||||||||||||||
ROIC FY18: | 14% | ||||||||||||||||
distribution | distribution | ||||||||||||||||
Own, 3rd party | 164 | ||||||||||||||||
committed & | Owned / JV | ||||||||||||||||
Ships | |||||||||||||||||
non-committed | Integrated | ||||||||||||||||
ROIC FY18: | 23% | 3rd party | |||||||||||||||
distribution | distribution | ||||||||||||||||
Customer, | 115 | ||||||||||||||||
knowledge, service | Owned / JV | ||||||||||||||||
Destinations | |||||||||||||||||
& fulfilment | Integrated | 3rd party | |||||||||||||||
ROIC FY18: | 26% | ||||||||||||||||
distribution | distribution | ||||||||||||||||
ROIC FY18: 80%5 | |||||||||||||||||
GROUP PLATFORMS
INTEGRATION BENEFITS
•Own customerend-to-end: personalised offerings
•Yielding our risk capacity: 27m customers to optimise own hotels/ cruises demand
•Unique TUI experiences and fulfillment differentiating TUI from competition, customer satisfaction
•Double diversification across Markets & Airlines and Holiday Experiences mitigates localised external shocks
More than 70% of profits from own and committed differentiated risk capacity
121m Markets & Airlines customers plus a further 2m for Cruise and from our strategic joint ventures in Canada and Russia totals 23m 2 4m customers direct and via 3rdparty channels to our Hotels & Resort and Cruise brands 3 This number includes group hotels and
3rdparty concept hotels as at end of FY18 4 As at end of FY18 5 This number relates to Markets & Airlines and All other segments
4 TUI GROUP | Investor Presentation | April 2019
What does it mean? Integrated model brings strong strategic benefits in the wider market context
INTEGRATION BENEFITS / TUI STRATEGY
Own customer end-to-end
Yielding our own risk capacity: 27m customers to optimise own hotels / cruises demand
Unique TUI holiday experiences and fulfilment differentiating TUI from competition
Double diversification across Markets & Airlines and Holiday Experiences
WIDER MARKET CONTEXT
Enables us to personalise our customers' holiday experiences, basis for targeted marketing
Reduces reliance on third party distribution and allows yielding of our products
Differentiates us from the OTAs, other pure-play distributors and the airlines, drives customer satisfaction and retention
Diversified across source markets and destinations - helps to mitigate the impact of cyclicality in individual markets and geopolitical shocks
5TUI GROUP | Investor Presentation | April 2019
Attachments
- Original document
- Permalink
Disclaimer
TUI AG published this content on 03 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 03 April 2019 22:01:06 UTC