Deutsche Bank 10th German Corporate Conference

Transcription

1 Deutsche Bank 10th German Corporate Conference Rainer Feuerhake Frankfurt, June 2007 TUI AG Investor Relations Seite 1

2 Agenda 1. Strategy 2. Tourism 3. Shipping 4. Financials & Outlook Appendix TUI AG Investor Relations Seite 2

3 Two-pillar business portfolio Tourism Trips in Europe (mill) Shipping Global Container Volume (TEU mill) e 2010e e 2010e Two global growth businesses TUI AG Investor Relations Seite 3

4 Group strategy Targets: Expand tourism business Elements: Further efficiency improvements in all source markets Participate in the growth of internet & modular business Enter new source markets such as Eastern Europe and Asia Actively taking part in market consolidation through merger with First Choice Capitalise on strong shipping market position Take advantage of the expected growth in container shipping market Continue organic growth and take advantage of external growth opportunities Target best-in-class operator generating consistent industry-leading margins Enhance financial strength Reduction of tied up capital and net debt by sale of assets not required for core operating purposes Continue to enhance liquidity position TUI AG Investor Relations Seite 4

5 Merger of First Choice and TUI Travel Travel* Impact on Group structure Name of company Headquarter TUI Travel PLC United Kingdom First Choice Holidays Shareholders TUI AG TUI Shareholders Legal form Public limited company to be listed on the London Stock exchange Tourism Shipping Shareholder structure 51% TUI AG 49% First Choice Shareholders 49% 51% TUI Travel PLC Hotels *excluding hotel divison TUI AG Investor Relations Seite 5

6 TUI Travel PLC - Overview First Choice is one of the leading leisure travel companies comprising a differentiated UK mainstream tour operating business and a portfolio of niche specialist businesses across the world TUI is the European market leader in traditional beach holidays with a vast distribution network and a pan European airline fleet The combined businesses of First Choice and TUI Travel have a perfect strategic fit Based on FY06 Tourism* TUI Travel PLC Customers (mill pa) No of retail outlets 409 1,650 2,059 No of aircraft (**) 156 Employees 15,318 32,811 48,129 *excluding hotel divison ** As at year end 2006, includes 2 aircrafts leased to third parties TUI AG Investor Relations Seite 6

7 TUI Travel PLC - Key financials Based on FY06 mill Tourism* TUI Travel PLC Revenue 3,964 13,678 17,642 EBITDA EBITA Operating margin 5.5% 2.0% 2.8% *excluding hotel divison Note: First Choice Financial Year End 31 October 2006; First Choice EBITDA and EBITA figures before central costs of c. 15m; TUI Travel Financial Year End 31 December 2006 Approx. 150 mill of expected pre tax synergies p.a. to be realised within 3 years of completion TUI AG Investor Relations Seite 7

8 TUI Travel Set for growth and profitability A leading worldwide travel group operating in 20 source markets serving approximately 27 million customers per year in over 200 destinations Platform to leverage significant synergies and economies of scale to deliver cost advantage in a competitive market place Participate in many growth segments of the leisure travel space Creating a position of strength enabling us to actively shape the future of the sector TUI AG Investor Relations Seite 8

9 TUI Travel PLC Expected timetable to completion Transaction announcement 19 March 2007 EU competition approval Merger approval of European Commission on 4 June 2007 Posting of circular to First Choice Holidays shareholders and TUI Travel PLC prospectus Early July Court meeting and EGM Timing to be decided shortly Completion Start of October 2007 delisting of First Choice shares and listing of TUI Travel PLC TUI AG Investor Relations Seite 9

10 Tourism TUI AG Investor Relations Seite 10

11 Growth and structural change of the market Expected development of the travel market (in million trips) ~ 35% Package % Do it yourself organised % ~ 30% Modular % ~ 35% Nonorganised e Source: Own estimate based on ETM 2002 and WTO TUI AG Investor Relations Seite 11

12 Market leader in Europe Leading positions in major source markets 1 2 Germany UK France Netherlands Austria Ireland Belgium Sweden Denmark Norway Finland 3 Switzerland Emerging markets (Eastern Europe) TUI AG Investor Relations Seite 12

13 Value chain and TUI s integrated model Value chain Distribution Tour operator Highlights Multi-channel distribution via More than 3,000 travel agencies Nationally tailored internet presences and new European internet platform to be introduced Call centres and travel TV 21.9 million customers in 2006 Leading brands: Airline Destination service Hotel Pan-European airline fleet consisting of more than 120 aircraft TUIfly.com will be introduced as the European Airline Brand Average airline load factor of 86% in 2006 industry leading 36 incoming agencies offering comprehensive services at destinations for more than 10.5 million customers in 2006 Services include transfers, car rentals and organisation of excursions No. 1 leisure hotelier in Europe with 279 hotels and 165,000 beds 11 th largest hotel group in the world High average occupancy rate of 80% in 2006 TUI AG Investor Relations Seite 13

14 Large multi-channel distribution network Customers Travel Agencies Internet Call Center Strong distribution network in source markets network of 3,000 associated travel agencies, numerous websites and local call centres Approx. 16% of turnover generated over the Internet in 2006 TUI AG Investor Relations Seite 14

15 Strong growth of internet sales Development of Online Sales -in mill - +42% 1, % 2,200 Target: Increase of internet sales to approx. 25% of tourism sales +73% 1, % % % TUI AG Investor Relations Seite 15

16 Pan European fleet of 122 aircraft 46 aircraft 6 aircraft 3 aircraft 9 aircraft 50 aircraft 8 aircraft TUI AG Investor Relations Seite 16 Introduction of new European airline platform TUIfly.com in 2007

17 TUI hotels & resorts Competitive hotel segment of strategic importance Growing market for leisure hotels Market leading position with 165,000 beds worldwide Strong organic growth: 26 new hotels with approx beds until 2008 (ownership/mgmt/ franchise) By channelling our customers to our hotels, we optimise capacity utilisation and increase profit margins TUI AG Investor Relations Seite 17

18 Shipping TUI AG Investor Relations Seite 18

19 Continuously strong market volume growth Global volume development container shipping (in TEU mill ) CAGR + 9% Forecast Actual Ø : 12% e 2008e 2009e 2010e 2011e TUI AG Investor Relations Seite 19 Source: Global Insight, February 2007

20 Volume development of main trade lanes World Container Trade 2006 (in million TEU) 2.2 (+6.3%*) 10.3 (+15.7%) 5.4 (+7.3%) Intra Far East North America 4.2 (+4.8%) Europe 22.1 (+10.4%) 1.0 (+9.8%) Far East 2.2 (+7.6%) Africa Middle East / Indian Ocean Latin America Australia/ New Zealand *Growth Rate in % is shown in brackets 15.6 (+10.9%) 4.6 (+6.8%) Source: Global Insight, February 2007 TUI AG Investor Relations Seite 20

21 Hapag-Lloyd a top 5 global container shipping company Capacity (`000 TEU) Top 20 container shipping companies Capacity in `000 TEU Grand Alliance New World Alliance CKYH Alliance Not a member of an Alliance : : 05: Maersk Line MSC CMA-CGM Evergreen COSCO CSCL Hanjin NYK APL (NOL) OOCL MOL K-Line Yang Ming CSAV ZIM Hamburg Süd Hyundai PIL Wan Hai New Hapag-Lloyd Old Hapag-Lloyd CP Ships TUI AG Investor Relations Seite 21 Source: MDS Transmodal February 2007 (vessels > 399TEU by nominal capacity)

22 Hapag-Lloyd in container vessels with a total capacity of 467,000 TEU Revenues of 6.3 bn Volume in 2006: 5.0 mill TEU Share of volume in 2006 (mill TEU): Trans- Pacific 19% North Atlantic 28% Far East 24% Latin America 16% Australasia 13% TUI AG Investor Relations Seite 22

23 138 modern container ships No. of vessels* Average age in years (1) Capacity ( 000 TEU) (in %) <2, ~ % 2,300 4, ~ % 4,000 6, ~ % >6, ~ % 138 ~ % Source: Company information * Figures as of 31 December 2006 (1) Average age weighted by capacity. TUI AG Investor Relations Seite 23

24 Overview global liner services Total number of services: Far East 18 Trans-Pacific 18 Atlantic 10 Latin America 10 Australasia as of: TUI AG Investor Relations Seite 24

25 Transport chain shipping Highly efficient integrated IT systems Empty Container (Delivery) Factory Inland Transport to Port Outbound Port Ocean Leg Inbound Port Inland Transport to Consignee Factory/ Distribution Centre Empty Container (Return) Only one Transport File per Shipment Source: Company information Hapag-Lloyd operates an industry-leading IT system... Fully integrated throughout the global organisation of more than 260 locations Covers the entire transport chain ( only one transport file per shipment ) Infrastructure supports all services throughout the value chain to offer customers efficient and reliable solutions Developed in-house over past years with significant investment...with significant efficiency benefits Provides network to facilitate decentralised, global blueprint organisation Real-time availability of information worldwide Provides and combines operational and financial data Contribution-driven, cost-effective business steering model Improves accuracy and control of transport and documentation TUI AG Investor Relations Seite 25

26 Productivity development Productivity (TEU/Employee) (100%) (82%) HL land personell CP Ships TUI AG Investor Relations Seite 26

27 Realisation of synergies from CP ships acquisition Planned synergy development Gross synergies One-off costs Net synergies e 2008e Integration faster than scheduled and almost completed Majority of integration cost already incurred in 2006 Synergies improvements of around 220 mill expected by 2008 TUI AG Investor Relations Seite 27

28 Agenda 1. Strategy 2. Tourism 3. Shipping 4. Financials & Outlook Appendix TUI AG Investor Relations Seite 28

29 Highlights of 1 st Quarter 2007 Slight decline in turnover due to shipping division and divestments in tourism (TQ3) and central operations (Wolf) EBITA of continuing operations declined by 18.6% to -83 mill; positively impacted by gains on disposals Underlying EBITA of continuing operations with -267 mill mainly impacted by lower result in shipping Tourism earnings with -227 mill 11 mill below last year Shipping result of -53 mill affected by strong decline in freight rates and higher operational costs Central operations with 13 mill positively influenced by increased profit contributions from the measurement of derivatives Disposal of Montreal Gateway Terminal (Closing on 9 March 2007) TUI AG Investor Relations Seite 29

30 P&L highlights Q in bill 5 in mill 0 in mill Q Q Turnover TUI AG Investor Relations Seite Q Q EBITA -200 Q Q Group profit after minorities

31 Net debt development bill Divestments 3 ~2.5* / / / / / / / /2008e * before impact from merger of TUI Travel with First Choice Holidays PLC TUI AG Investor Relations Seite 31

32 Tourism Booking update Winter Winter 2006/ /2007 Summer Summer (Year-on-year variation variation in in %) %) Sales Sales Customers Customers Sales Sales Customers Customers Germany Germany Switzerland Switzerland Austria Austria Eastern Eastern Europe Europe Central Central Europe Europe United United Kingdom Kingdom Ireland Ireland Nordic Nordic countries countries Northern Northern Europe Europe France France Netherlands Netherlands Belgium Belgium Western Western Europe Europe Total Total (as of 27 April 2007) TUI AG Investor Relations Seite 32

33 Outlook 2007 Tourism European market growth of around 3% expected driven by individual components Substantial increase in customers Turnover growth of up to 15 bill targeted Shipping Market growth of almost 9% expected Freight rates are forecast to stabilise in 2007 and pick up in 2008 An increase in turnover of up to 7.0 bill will be possible TUI AG Investor Relations Seite 33

34 Agenda 1. Strategy 2. Tourism 3. Shipping 4. Financials & Outlook Appendix TUI AG Investor Relations Seite 34

35 Turnover by divisions 2006 mill mill in in % Tourism 14, , Central Central Europe Europe 5, , , , Northern Northern Europe Europe 4, , , , Western Western Europe Europe , , Destinations Destinations Other Other tourism tourism Shipping 6, , Central operations Continuing operations 20, , Discontinuing operations , Turnover by by divisions 20, , TUI AG Investor Relations Seite 35

36 Earnings by divisions (EBITA) 2006 Reported Reported EBITA EBITA Underlying EBITA EBITA mill mill in in % in in % Tourism Tourism Central Central Europe Europe Northern Northern Europe Europe Western Western Europe Europe n.m. n.m n.m. n.m. Destinations Destinations Other Other tourism tourism n.m. n.m Shipping Shipping n.m. n.m Central Central operations Continuing operations Discontinuing Discontinuing operations operations Earnings Earnings by by divisons divisons TUI AG Investor Relations Seite 36

37 Financial calendar 11 May 2007 First Quarter Report August 2007 Second Quarter Report November 2007 Third Quarter Report 2007 TUI AG Investor Relations Seite 37 TUI AG, Investor Relations Phone: investor.relations@tui.com

38 Future-related 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. TUI AG Investor Relations Seite 38