TUI Travel PLC. FY09 Preliminary Results. 1 December 2009 Sensatori, Tenerife

Transcription

1 TUI Travel PLC FY09 Preliminary Results 1 December 2009 Sensatori, Tenerife

2 Highlights Peter Long Financial Performance Paul Bowtell Trading & Strategy Peter Long Q&A TUI Travel PLC Preliminary Results 1 December 2009 Page 2

3 Highlights Underlying operating profit improved by 45m (+11%) to 443m Underlying operating margin up 30bps to 3.2% and underlying EPS up 17% to 23.8p Delivered some key solutions to strategic issues, but more to go Trading continues to improve in all source markets TUI Travel PLC Preliminary Results 1 December 2009 Page 3

4 Financial Performance Paul Bowtell Chief Financial Officer Moorings charter yacht base, Tortola

5 Financial Highlights Revenue FX +9% Acquisition +1% Organic 10% (volume 14%, price +4%) 13,863m Flat Underlying operating profit 443m +11% Underlying profit before tax 366m +15% Underlying earnings per share 23.8p +17% Full year dividend per share 10.7p +10% TUI Travel PLC Preliminary Results 1 December 2009 Page 5

6 Group Profit & Loss m FY09 FY08 Underlying operating profit % Debt related interest (57) (71) Nondebt related charge (20) (8) Underlying profit before tax % Amortisation of IFRS 3 intangibles (56) (87) Impairment of goodwill (7) (112) Separately disclosed items (340) (380) Other charges (15) (7) Loss before tax (52) (267) Tax 42 Loss for the year (10) (267) TUI Travel PLC Preliminary Results 1 December 2009 Page 6

7 Separately Disclosed Items m FY09 FY08 Explanation Aircraft Impairment charge in respect of asset write downs of aircraft operated by Corsair ( 124m) and costs relating to the TUIflyAir Berlin transaction ( 32m) Restructuring Costs relating to the closure of Sunsail Clubs in Turkey and ongoing restructuring of Nouvelles Frontieres Integration Expenses incurred to deliver the merger synergies Total Cash cost TUI Travel PLC Preliminary Results 1 December 2009 Page 7

8 Integration Synergy Phasing m FY08 FY09 FY10 FY11 Total P&L benefit UK Mainstream Group & Global Total YoY incremental benefit Cash cost integration (124) (99) (40) 263 TUI Travel PLC Preliminary Results 1 December 2009 Page 8

9 Segmental Analysis Underlying operating profit m FY09 FY08 Change Northern Region Central Europe Western Europe Mainstream Specialist & EM Activity A&D JV & associates Corporate (27) (27) Underlying EBITA TUI Travel PLC Preliminary Results 1 December 2009 Page 9

10 Segmental Analysis Underlying operating profit bridge m Mainstream 1 Specialists 1 Total Underlying EBITA (pre Corporate) FY Scheduled flying / LCC Acquisitions Sale & lease back transaction Swine flu Nouvelles Frontieres/Corsair/Canada Trading Subtotal presynergies Synergies Underlying EBITA (precorporate) FY Corporate costs (27) Total Group 443 TUI Travel PLC Preliminary Results 1 December 2009 Page 10 1 See Appendix for detailed bridges

11 Segmental Analysis Underlying margin analysis Underlying operating margin % FY09 FY08 YoY Northern Region 4.9% 4.1% +0.8pp Central Europe 1.4% 1.3% +0.1pp Western Europe 1.2% 1.4% 0.2pp Mainstream 2.6% 2.3% +0.3pp Specialist & Emerging Markets 3.8% 3.2% +0.6pp Activity 7.2% 6.4% +0.8pp A&D 10.9% 11.4% 0.5pp Underlying operating margin % 3.2% 2.9% +0.3pp TUI Travel PLC Preliminary Results 1 December 2009 Page 11

12 Margin Roadmap Development Central Europe Northern Region Western Europe M stream Total Specialists Total 1 FY07 Margin % 1.0% 2.2% 0.3% 1.3% 6.5% 2.0% Synergies FY bps +30 bps +10 bps +30 bps Underlying Margin Enhancement FY bps +120 bps +110 bps +70 bps 30 bps +60 bps FY08 Margin % 1.3% 4.1% 1.4% 2.3% 6.3% 2.9% Synergies FY bps +150 bps +10 bps +60 bps +60 bps +60 bps Nouvelles Frontieres/Corsair/ Canada 50 bps 170 bps 60 bps 40 bps Underlying Margin Enhancement FY09 20 bps +140 bps +30 bps 10 bps +10bps FY09 Margin % 1.4% 4.9% 1.2% 2.6% 6.8% 3.2% TUI Travel PLC Preliminary Results 1 December 2009 Page 12 1 Total includes JV and Group overheads

13 Group Cashflow m Underlying WC movement 167m Oneoff closure of FX hedges + 86m FY09 FY08 FY10 guidance Underlying EBITDA Working capital movement (81) 28 Similar net level to FY09 Pension funding (66) (44) c. 70m Underlying net operating cash flow Capital expenditure (net) (163) (195) Small reduction to FY09 Sale & leaseback None expected Tax (43) (33) c.15% of PBT Interest (62) (56) P&L interest less 32m Exceptional cash costs (189) (165) c. 100m Free cash flow Dividends (110) (70) Net acquisitions/disposals (102) (117) Similar level Movement in cash net of debt (67) 254 TUI Travel PLC Preliminary Results 1 December 2009 Page 13

14 Group Net Debt Movement m Net debt at 1 October Movement in cash net of debt Non cash movement in debt Net debt at 30 September 2009 (136) (67) (135) (338) 2008 (237) 254 (153) (136) m Cash (net of overdrafts) Debt Finance leases Net debt Impact of convertible bond Proforma net debt 30 Sep (936) (192) (338) 52 (286) 30 Sep 08 1,130 (1,079) (187) (136) (136) TUI Travel PLC Preliminary Results 1 December 2009 Page 14

15 m Interest FY09 Proforma Cash P&L FY09 Debt interest expense Cash interest income (6) (6) (6) Impact of the convertible bond: Coupon of 6% Equity amortisation 12 Debt related interest Non debt related charge Underlying interest TUI Travel PLC Preliminary Results 1 December 2009 Page 15

16 Group Balance Sheet m 30 Sep Sep 08 YoY Intangible assets 4,737 4, Property, plant & equipment Net assets held for sale Net fixed assets 5,768 5, Investments Net debt (338) (136) 202 Net employee benefits (500) (253) 247 Net current liabilities (2,778) (2,524) 254 Net noncurrent liabilities (55) (151) +96 Net assets 2,286 2, TUI Travel PLC Preliminary Results 1 December 2009 Page 16

17 Key Performance Indicators FY09 FY08 FY07 FY09 YoY Underlying operating margin % 3.2% 2.9% 2.0% +30bps Underlying EPS 23.8p 20.4p 14.4p +17% DPS 10.7p 9.7p 8.4p +10% ROIC 9.2% 8.4% 5.4% +80bps Dividend cover 2.2x 2.1x 1.7x +0.1x Fixed charges cover 2.0x 2.1x 2.1x 0.1x Net Debt to EBITDA 0.5x 0.2x 0.5x +0.3x TUI Travel PLC Preliminary Results 1 December 2009 Page 17

18 Trading & Strategy Update Peter Long Chief Executive Sensimar, Corfu

19 Business Performance Current Trading Building Blocks of Growth Summary TUI Travel PLC Preliminary Results 1 December 2009 Page 19

20 Business Performance

21 Business Performance Strong 2009 performance demonstrates business model resilience Deepest and longest postwar recession Economic backdrop Unemployment higher in all source markets Sharp declines in consumer confidence Cost Inflation TUI Travel PLC Preliminary Results 1 December 2009 Page 21 Jet fuel costs were $125m higher in S09 UK and Nordics source markets incurred higher costs due to Euro strength Required significant ASP increases to cover cost inflation of c.7% in the UK Flexible business model mitigated weak demand environment and significant cost inflation

22 Current Trading

23 Current Trading Consumer Sentiment Consumer outlook Sept 09 v June 09 Personal financial situation Job situation Inflation expectations Willingness to spend on major purchases Planned holiday spending Relevence of Quality Overall = + + = + = + + = = + = = = = Favourable change in consumer confidence in most source markets, particularly Nordics, Russia and Germany TUI Travel PLC Preliminary Results 1 December 2009 Page 23

24 Current Trading Trading since last update Bookings, yoy variation% As at 20 Sep Since last trading update As at 22 Nov UK Nordic Canada Germany Marmara France Flat Nouvelles Frontieres Corsair Belgium Netherlands Key markets trading ahead of cumulative position & capacity reductions TUI Travel PLC Preliminary Results 1 December 2009 Page 24 Based on trading statistics up to 22 November 2009

25 Current Trading Recent trading the specialist sectors yoy variation% Last 4 weeks trading Cumulative position Specialist Flat 11 Activity A&D Based on sales, other sectors based on booking volumes TUI Travel PLC Preliminary Results 1 December 2009 Page 25 Based on trading statistics up to 22 November 2009

26 Current Trading UK W09/10: Improving demand trend UK bookings in recent weeks YoY% 4wk 6wk 8wk 10wk Cum. Capacity Reduction 15% Improving booking trends over recent weeks Increased level of differentiated product Strong average selling prices recovering cost inflation TUI Travel PLC Preliminary Results 1 December 2009 Page 26 Based on trading statistics up to 22 November 2009

27 Current Trading Summer 2010 trading remains ontrack yoy variation% ASP Bookings Capacity UK +7 3 Flat Nordics +3 2 Flat Continue to be pleased with UK trading for Summer 2010 Load factor in line with the prior year at 20% Strong ASP progression, now up 7% Early trading in the Nordics has started well Load factor in line with the prior year at 15% TUI Travel PLC Preliminary Results 1 December 2009 Page 27 Based on trading statistics up to 22 November 2009

28 Building Blocks of Growth

29 Building Blocks of Growth Short to medium term improvement Sustainable longterm growth Cost Synergies Growing Mainstream Margins Delivering Growth Delivering 200m of synergies Improving margins on 7bn of under performing revenue Mainstream Differentiated content Long haul opportunity Specialist organic growth Emerging markets Acquisitions Clear strategy for growth TUI Travel PLC Preliminary Results 1 December 2009 Page 29

30 Growing Mainstream Margins Turnaround of underperforming businesses Revenue Intensive Care Critical Stage Recovery Stage Healthy Stage Thriving Stage Operating Margin Revenue Contribution Loss making < 1% 1% 3% 3% 5% > 5% Canada & Ireland 1.3bn 1.1bn 0.3bn Nouvelles Frontieres / Corsair & Poland 3.1bn 1.1bn 0.2bn 5.7bn 5.5bn 4.1bn Germany & N lands 2.6bn 4.9bn UK & Belgium Nordics 1.9bn 1.7bn 1.2bn 5.8bn FY07 FY08 FY09 FY07 FY08 FY09 FY07 FY08 FY09 FY07 FY08 FY09 FY07 FY08 FY09 Underperforming businesses 4.4bn 1.4bn 1.3bn Performing businesses 4.3bn 6.8bn 7.0bn FY07 FY08 FY09 FY07 FY08 FY09 Substantial progress delivered but still a big prize to go for TUI Travel PLC Preliminary Results 1 December 2009 Page 30

31 Growing Mainstream Margins Turnaround of underperforming businesses Operating profit Intensive Care Critical Stage Recovery Stage Healthy Stage Thriving Stage Operating Margin Loss making < 1% 1% 3% 3% 5% > 5% UK & Belgium 397m Germany & Netherlands 185m Nordics 155m 168m Underlying EBITA Contribution Canada & Ireland Nouvelles Frontieres / Corsair & Poland 23m 4m 0m 79m 76m 44m 93m 52m ( 11m) ( 53m) ( 72m) FY07 FY08 FY09 FY07 FY08 FY09 FY07 FY08 FY09 FY07 FY08 FY09 FY07 FY08 FY09 Loss making business generating operating losses of 72m TUI Travel PLC Preliminary Results 1 December 2009 Page 31

32 Growing Mainstream Margins Source market characteristics Canada Poland Ireland France Group NF Netherlands Germany Austria France Marmara UK Nordics Belgium Consolidated Market Intensive care / critical stage (<1% margins) Recovery stage (1 to 3% margins) TUI Travel PLC Preliminary Results 1 December 2009 Page 32 Performing stage (3%+ margins) Leading Brand Position Critical success factors High levels of Differentiation Controlled Distribution Business efficiency Leadership position in a consolidated market + appropriate product & distribution mix = superior margins EBIT Margin FY09 (14.3%) (11.3%) (7.0%) (3.4%) 1.0% 1.6% 2.0% 4.0% 5.7% 5.8% 6.2%

33 Growing Mainstream Margins Turnaround progress: Intensive Care stage Business area Issue Status Canadian tour operator Weak market position and excess market capacity 24m of losses in FY09 Strategic venture with Sunwing France distribution Marmara dependent on 3 rd party distribution NF only distributes through its own retail channel (subscale) Marmara now sold though NF & Havas CWT deal achieves scale France NF product Poor product differentiation Insufficient scale in many of its destinations leading to margin dilution Product refresh Joint flying with Marmara France airline Corsair has significant destination risk Operates as a scheduled airline 24m of losses in FY09 Working to restore profitability Ireland Fragmented market dominated by low cost airlines Severe impact of economic downturn Demise of Budget Product differentiation Cost base rationalisation Poland Devaluation of the Zloty caused sharp fall in holiday affordability Demand improving TUI Travel PLC Preliminary Results 1 December 2009 Page 33

34 Growing Mainstream Margins Turnaround progress: Recovery stage Business area Issue Status Germany scheduled flying Subscale to compete effectively Excess capacity diluted TO margins 35m of losses in FY08 Transaction with Air Berlin Germany product Insufficient differentiated product Improvement of product mix in progress Germany distribution Insufficient controlled distribution Plans in place to increase controlled distribution mix Netherlands Mix of low margin commodity product is too high Controlled distribution mix is too low Plans in place to improve product & distribution mix TUI Travel PLC Preliminary Results 1 December 2009 Page 34

35 Growing Mainstream Margins Significant opportunity to go Turnaround FY09 Actual Completed Target potential Corsair EBIT % EBIT (6.6%) ( 24m) +6.6ppts + 24m 0% 0m Nouvelles Frontieres EBIT % EBIT (3.4%) ( 13m) +5.9ppts + 23m 2.5% 10m Canada EBIT % EBIT ( 24m) + 30m 3.0% 6m Ireland EBIT % EBIT (5.5%) ( 4m) +8.0ppts + 6m 2.5% 2m Poland EBIT % EBIT (11.3%) ( 7m) +13.8ppts + 9m 2.5% 2m Germany EBIT % EBIT 1.6% 65m +0.5ppts + 20m +0.4ppts + 19m 2.5% 104m Netherlands EBIT % EBIT 1.0% 7m +1.5ppts + 11m 2.5% 18m TUI Travel PLC Preliminary Results 1 December 2009 Page 35

36 Building Blocks of Growth Short to medium term improvement Sustainable longterm growth Cost Synergies Growing Mainstream Margins Delivering Growth Delivering 200m of synergies Improving margins on 7bn of under performing revenue Mainstream Differentiated content Long haul opportunity Specialist organic growth Emerging markets Acquisitions Clear strategy for growth TUI Travel PLC Preliminary Results 1 December 2009 Page 36

37 Mainstream Growth Growth strategies Enabler Strategy Our Power Brands Shift mix towards differentiated products Exploit demand growth for longhaul destinations Invest in controlled distribution channels Sensatori, Sensimar & Blue Village concepts 787 Dreamliner order book Online investment, franchise / owned stores rollout Delivering sustainable longer term growth in Mainstream TUI Travel PLC Preliminary Results 1 December 2009 Page 37

38 The Specialist Sectors Substantial scale; superior growth & margin Revenue CAGR % EBITA mix % FY0709 EBITA margin % Mainstream 65% 11% 12% 10.7% Specialist Sectors 35% 6% 3.8% 7.2% JVs 9% Specialist 19% Activity 36% Specialist Activity A&D Specialist Activity A&D A&D 36% Revenue 2,193 million (+10% CAGR%) EBITA 165 million 1 (+12% YoY) Over onethird of our profits come from our high growth, high margin specialist businesses TUI Travel PLC Preliminary Results 1 December 2009 Page 38 1 Including 15m EBITA from JVs

39 The Specialist Sectors A unique portfolio that is impossible to replicate Specialist Leading portfolio of UK specialist brands #1 / 2 in US student leisure & educational tours #1 in private jet tours Revenue 825 million EBITA 31 million Activity #1 in Marine holidays #1 in UK Adventure #1 in Polar Cruising #1 in Sports tours #1 in UK Ski #1 in UK Student Revenue 816 million EBITA 59 million Accommodation & Destinations Only accommodation & destinations services provider with a global reach Distribution operations in over 40 source markets #1 in Global cruise handling Two leading B2C brands Revenue 552 million EBITA 60 million We have the market leading portfolio of specialist brands TUI Travel PLC Preliminary Results 1 December 2009 Page 39

40 The Specialist Sectors Growth strategies Strategy Organically grow existing businesses Extract cost synergies Exploit revenue synergies Enter & consolidate fragmented market niches Expand into new source markets Examples UK Specialist B2C accommodation services Student Ski Destination services UK Specialist Adventure in Germany / Russia Marine in Germany / N lands / Belgium Polar in Nordics Adventure UK Student Cruise handling B2C accommodation services Destination services TUI Travel PLC Preliminary Results 1 December 2009 Page 40 Delivering sustainable longer term growth

41 The Specialist Sectors B2C Accommodation Market Our Positioning 10bn Asia 2bn +29% CAGR Europe UK 5bn 3bn +17% CAGR +18% CAGR Source Market 95% UK, 5% Europe 50% Asia, 30% Europe Merchant Accommodation only OTA Model Commissionable Market Share Unique site visitors 10% UK, <1% Europe 3.1m per month c.3% in Asia 1.4m per month Net price +markup Net price Customer OTA Hotel Comm. Customer Final price OTA Final price Hotel Destination Market TTV Model 90% UK, 10% Europe 250m (+45%) Commissionable 80% Asia 43m (27%) Historically merchant We TUI Travel have PLC Preliminary two Results leading 1 December 2009 consumer Page 41 brands in the online accommodation only market

42 The Specialist Sectors UK Student Market Our Positioning Student Language 600m 3bn Characteristics Fragmented market place Growth fuelled by Learning outside the classroom initiative Private sector opportunity following school / local authority health & safety risk assessments and funding cuts Good trading visibility High margins Activity & Educational School Sports Tours School Ski Language & Summer Camps Gap & Experiential University Ski Accompanying Students through the education life cycle Exploiting revenue synergies through cross selling (education / sport) Utilising assets across different product groups Driving cost synergies Our market leading brands represent c.20% of the Student market TUI Travel PLC Preliminary Results 1 December 2009 Page 42

43 Emerging Markets Russia & CIS Russia Ukraine Market 6m pax 1m pax Our Positioning Our current presence: JV partnership with S Group 75% of Mostravel 2, VKO and Voyage Kiev Characteristics Highest GDP/capita of BRIC 1 economies Expanding middle class with high propensity for overseas travel Immature & fragmented market, historically growing at c.10% pa Market is predominantly sun & beach with c.7m pax complements our core strength Real estate of >150 agencies c.8% market share Our participation strategy: Leverage our tour operator expertise to build a strong tour operator / retail presence Leverage the strength of the TUI brand Potential to be the leading tour operator in a fragmented and growing market Russia & CIS currently offers the most significant outbound opportunity in terms of scale, customer behaviour and disposable income TUI Travel PLC Preliminary Results 1 December 2009 Page 43 1 BRIC Brazil, Russia, India & China 2 Transaction expected to close shortly

44 Acquisitions Three areas of focus Mainstream Consolidation Consolidate where we have a weaker position Specialist Boltons Emerging Markets New markets with consolidation opportunities Product infill in existing markets Expansion into new source markets Entry point made in Russia and Ukraine Further opportunities to consolidate Evaluating Brazil, China and India opportunities Significant acquisition opportunities to build on successful track record TUI Travel PLC Preliminary Results 1 December 2009 Page 44

45 Summary

46 Summary Delivering our roadmap Delivered in 2009 against a tough economic environment as a result of our flexible business model Strong recent trading performance, supported by improving consumer confidence On track to deliver our synergy target Good progress on margin enhancement and significant opportunities to go Focusing on sustainable long term growth in the Mainstream and specialist sectors Confident of delivering against our original margin roadmap TUI Travel PLC Preliminary Results 1 December 2009 Page 46

47 Appendix

48 Segmental Definition Mainstream Specialist & EM Activity A&D Central Europe Germany Switzerland Austria Poland Northern Region UK & Ireland Nordics Canada Western Europe France Belgium Netherlands Europe, e.g. Turchese Citalia Hayes & Jarvis Sovereign US Student Escorted Tours Europe Express Emerging Markets Marine Sunsail Moorings Le Boat Adventure, e.g. AAD Expedition Cruising Ski, Student & Sport, e.g. Crystal Real Gap Gullivers Sport Travel B2B Online Hotelbeds and Bedsonline B2B Incoming Agencies B2C Hotelopia, Laterooms.com and Asiarooms TUI Travel PLC Preliminary Results 1 December 2009 Page 48

49 Segmental Analysis Mainstream Bridge m Northern Region Central Europe Western Europe Total Mainstream Underlying operating profit FY Scheduled flying / LCC Acquisitions Sale & lease back transaction Swine flu 9 9 Nouvelles Frontieres/ Corsair/Canada Trading Subtotal presynergies Synergies Underlying operating profit FY YoY TUI Travel PLC Preliminary Results 1 December 2009 Page

50 Segmental Analysis Specialists Bridge m Specialist & Emg Mkts Activity A&D JV Total Underlying operating profit FY Acquisitions/Disposals Swine flu 1 1 Trading Subtotal presynergies Synergies Underlying operating profit FY YoY TUI Travel PLC Preliminary Results 1 December 2009 Page 50

51 Segmental Analysis Specialist and Activity EBITA % % EBITA Margin % FY09 EBITA Margin % FY08 YoY Specialist US 6.2% 5.7% +0.5pp Specialist Europe 2.7% 2.3% +0.4pp Total Specialist 3.8% 3.2% +0.6pp Adventure 5.4% 5.9% 0.5pp Marine 14.5% 13.4% 1.1pp Ski 4.3% 2.4% 1.9pp Sports 4.1% 5.7% 1.6pp Student 11.0% 10.3% 0.7pp Total Activity 7.2% 6.4% 0.8pp TUI Travel PLC Preliminary Results 1 December 2009 Page 51

52 Segmental Analysis Quarterly FY08 Results Revenue m Q108 Q208 Q308 Q408 H108 H208 FY08 UK 1,102 2,331 3,433 Nordics Canada Northern Region ,179 1,563 1,635 2,742 4,377 Central Europe ,229 1,789 1,684 3,018 4,702 France ,307 Netherlands Belgium Western Europe , ,836 2,752 Mainstream Holidays 2,144 2,091 3,134 4,462 4,235 7,596 11,831 Specialist Holidays Activity Holidays A&D Group 2,524 2,631 3,616 5,161 5,155 8,777 13,932 TUI Travel PLC Preliminary Results 1 December 2009 Page 52

53 Segmental Analysis Quarterly FY08 Results EBITA m Q108 Q208 Q308 Q408 H108 H208 FY08 UK (144) Nordics Canada 2 (7) (5) Northern Region (19) (95) (114) Central Europe (24) (69) (93) France (18) 23 5 Netherlands (14) 22 8 Belgium (12) Western Europe (16) (29) (21) 103 (44) Mainstream Holidays (59) (193) (252) Specialist Holidays Activity Holidays (6) A&D 4 (4) Corporate & JV (6) (5) (4) 3 (11) (1) (12) Group (63) (187) (251) TUI Travel PLC Preliminary Results 1 December 2009 Page 53

54 Segmental Analysis Quarterly FY08 Results EBITA margin% m Q108 Q208 Q308 Q408 H108 H208 FY08 UK 13.1% 11.9% 3.9% Nordics 7.0% 5.9% 6.4% Canada 1.5% 18.8% 2.8% Northern Region 2.4% 11.5% 1.6% 17.5% 7.0% 10.6% 4.1% Central Europe 2.7% 8.8% 3.2% 6.5% 5.6% 5.2% 1.3% France 3.6% 2.9% 0.4% Netherlands 6.3% 4.9% 1.2% Belgium 6.4% 6.3% 3.2% Western Europe 3.5% 6.1% 2.9% 9.2% 4.8% 4.4% 1.4% Mainstream Holidays 2.7% 9.2% 1.2% 11.0% 5.9% 7.0% 2.3% Specialist Holidays 2.2% 0.7% 3.1% 5.8% 1.4% 4.6% 3.2% Activity Holidays 5.2% 5.0% 6.2% 14.0% 1.9% 11.1% 6.4% A&D 4.9% 6.3% 12.5% 19.4% 0.1% 16.6% 11.4% Group 2.5% 7.1% 1.8% 11.3% 4.9% 7.4% 2.9% TUI Travel PLC Preliminary Results 1 December 2009 Page 54

55 Segmental Analysis Quarterly FY09 Results Revenue m Q109 Q209 Q309 Q409 H109 H209 FY09 UK 1,097 2,160 3,257 Nordics Canada Northern Region ,032 1,535 1,655 2,567 4,222 Central Europe ,277 1,743 1,776 3,020 4,796 France ,228 Netherlands Belgium Western Europe ,699 2,652 Mainstream Holidays 2,309 2,076 3,027 4,259 4,384 7,286 11,670 Specialist Holidays Activity Holidays A&D Group 2,747 2,633 3,575 4,909 5,379 8,484 13,863 TUI Travel PLC Preliminary Results 1 December 2009 Page 55

56 Segmental Analysis Quarterly FY09 Results EBITA m Q109 Q209 Q309 Q409 H109 H209 FY09 UK (120) Nordics Canada (11) (13) (24) Northern Region (4) (109) (113) Central Europe (14) (106) (120) France (38) 19 (19) Netherlands (11) 18 7 Belgium (15) Western Europe (13) (51) (16) 114 (64) Mainstream Holidays (31) (267) (297) Specialist Holidays Activity Holidays (5) A&D 1 (4) (3) Corporate & JV (4) (4) (3) (2) (7) (5) (12) Group (35) (254) (289) TUI Travel PLC Preliminary Results 1 December 2009 Page 56

57 Segmental Analysis Quarterly FY09 Results EBITA margin% m Q109 Q209 Q309 Q409 H109 H209 FY09 UK 10.9% 14.1% 5.6% Nordics 4.4% 7.2% 5.8% Canada 7.3% 72.2% 14.3% Northern Region 0.4% 13.6% 3.6% 18.4% 6.8% 12.4% 4.9% Central Europe 1.4% 13.0% 3.2% 8.3% 6.8% 6.2% 1.4% France 7.6% 2.6% 1.5% Netherlands 4.8% 3.8% 1.0% Belgium 6.5% 12.2% 6.2% Western Europe 2.6% 11.2% 2.3% 11.6% 6.7% 5.7% 1.2% Mainstream Holidays 1.3% 12.9% 2.0% 12.7% 6.8% 8.3% 2.6% Specialist Holidays 1.8% 4.0% 4.1% 5.0% 2.9% 4.6% 3.8% Activity Holidays 3.9% 4.5% 11.6% 13.7% 1.6% 12.8% 7.2% A&D 1.1% 4.5% 9.0% 23.6% 1.5% 17.2% 10.9% Group 1.3% 9.7% 2.9% 12.8% 5.4% 8.6% 3.2% TUI Travel PLC Preliminary Results 1 December 2009 Page 57

58 Mainstream KPIs Distribution UK Germany France 1 36% 11% 30% 3% 5% 22% 78% 43% 57% 47% 53% 32% 31% 24% 16% Nordics Belgium Netherlands 52% 29% 6% 30% 7% 15% 85% 30% 3% 49% 51% 16% 44% 57% 19% TO controlled distribution % Web % Call centre % Retail % Note 1 Tour operator only TUI Travel PLC Preliminary Results 1 December 2009 Page 58

59 Mainstream KPIs Differentiated Content UK Germany France 62% 65% 54% 38% 35% 46% Nordics Belgium Netherlands 76% 48% 35% 24% 52% 65% Differentiated / exclusive content % Other % TUI Travel PLC Preliminary Results 1 December 2009 Page 59

60 Mainstream KPIs Inherent flexibility within the model Guaranteed accommodation mix % Aircraft leases expiring in next 3 years % Third party flying % 29% Business model retains significant operational flexibility through 48% 28% low bed stock commitments aircraft leasing strategy third party flying arrangements capacity redeployments source markets & seasonal Flexible business model which can react to demand changes TUI Travel PLC Preliminary Results 1 December 2009 Page 60 KPIs are for Mainstream

61 Aircraft Fleet profile and movements Fleet profile at 30 September TUI Travel PLC Preliminary Results 1 December 2009 Page Sep Sep 09 Op lease Fin lease Owned Held for sale

62 Aircraft Fleet plan FY09 to FY12 Aircraft order book & runoff FY10 FY11 FY12 FY13 Total B737 NG B787 NG Total Deliveries Aircraft lease expiry (11) (21) (24) (14) (70) Net (11) (6) (9) (12) (38) TUI Travel PLC Preliminary Results 1 December 2009 Page 62

63 Financing Update Available facilities m 30 Sept Low Point Rate Shareholder Loan EURIBOR + 150bps 1 Revolving Credit Facility LIBOR + 75bps Revolving Credit Facility LIBOR + 325bps Convertible Bond % Asset financing Total Facilities 2,284 2,284 1,594 1,444 Net debt at 2009 low point = c. 1,250 million TUI Travel PLC Preliminary Results 1 December 2009 Page 63 1 Margin over EURIBOR is subject to a timebased ratchet and increases by 20bps every sixmonths

64 Invested Capital / ROIC Net assets Add: Net debt Net cash average adjustment Impairment of goodwill NonOperating Provisions Group invested capital Average invested capital EBITA NOPAT 1 ROIC % FY09 m 2, ,543 3, % FY08 m 2, ,397 3, % TUI Travel PLC Preliminary Results 1 December 2009 Page 64 1 ETR 28%

65 Leverage Ratios EBITDA 1 Operating rentals 1 Adjusted operating profit FY09 m ,204 FY08 m ,111 Debt related interest costs Operating rentals Fixed charges Net debt Fixed charges cover Net debt to EBITDA 2.0x 0.5x 2.1x 0.2x TUI Travel PLC Preliminary Results 1 December 2009 Page 65 1 Excludes amortisation on acquisition related intangibles and depreciation included in SDIs

66 Current Trading Winter 2009/10 yoy variation% ASP Sales Customers Shorthaul Mediumhaul Longhaul UK Nordic Northern Region Germany Flat Austria Switzerland Poland Central Europe Flat France Belgium Netherlands Western Europe Specialist Activity NA 19 NA A&D TUI Travel PLC Preliminary Results 1 December 2009 Page 66 Based on trading statistics up to 22 November 2009

67 Acquisitions Company Description Date Country Activity Sector Sport Abroad Sports tours October 2008 United Kingdom Teamlink Travel Student sports tours October 2008 United Kingdom Edwin Doran Student sports tours November 2008 United Kingdom Master Yachting Yacht charters November 2008 Germany Off The Piste Student ski December 2008 United Kingdom Adventure Tours Australia Adventure tours April 2009 Australia Williment World Travel Sports tours May 2009 New Zealand Zegrahm Expeditions Adventure cruising June 2009 USA EAC Language Centres Language teaching July 2009 United Kingdom Specialist Sector Travel Adventures Student travel October 2008 USA Accommodation & Destinations Aragon Tours Cruise handling May 2009 United Kingdom Mainstream Sector Northern Region Island Cruises Cruise Operator November 2008 United Kingdom TOTAL CONSIDERATION 89m TUI Travel PLC Preliminary Results 1 December 2009 Page 67