TUI : Presentation (PDF)

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