TUI Group Investor Presentation...TUI AG | Investor Relations | Seite 4 Turnover and earnings 2007...

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TUI GroupInvestor Presentation

Deutsche BankGerman Corporate ConferenceFrankfurt, 04 - 05 June 2008


Agenda

I. Financials 2007

II. Tourism

III. Shipping

IV. Outlook 2008 & Strategy


P&L highlights 2007

21.920.5

0

4

8

12

16

20

24

Turnover ReportedEBITA

175

-890-400

-200

0

200

Group profit after minorities

in € m in € m

2006 2007

in € bn

548

419

616

201

0

100

200

300

400

500

600

700

+ 173.0%

+ 47.2%

2006 2007 2006 2007 2006 2007

Goodwill impairment

-1,000

+ 6.6%

UnderlyingEBITA


Turnover and earnings 2007

€ m 2007 2006 % 2007 2006 %

Tourism 15,638.5 14,085.1 + 11.0 448.9 394.7 + 13.7

TUI Travel 15,258.7 13,676.0 + 11.6 304.4 258.6 + 17.7

TUI Hotels & Resorts 379.8 346.7 + 9.5 146.1 123.2 + 18.6

Other - 62.4 - - 1.6 12.9 n.m.

Shipping 6,201.6 6,254.0 - 0.8 196.7 89.2 + 120.5

Container shipping 6,018.4 6,093.7 - 1.2 182.5 81.3 + 124.5

Cruises 183.2 160.3 + 14.3 14.2 7.9 + 79.7

Central operations 25.5 175.5 - 85.5 - 29.5 - 65.4 + 54.9

Continuing operations 21,865.6 20,514.6 + 6.6 616.1 418.5 + 47.2

Discontinuing operations - 401.0 - - 29.8 -

Group 21,865.6 20,915.6 + 4.5 616.1 448.3 + 37.4

Turnover Underlying EBITA


Good start into the new financial year - Q1 2008

Significant increase in Group Turnover to €5.1 bn (Q1 07: €4.1 bn, +24.3%) especially due to consolidation of First Choice Holidays

Underlying Group EBITA improved by 21% to €-196 m (Q1 07: €-248 m)

Underlying EBITA of Tourism* (TUI Travel, TUI Hotels & Resorts, Cruises) almost unchanged at €-221 m (Q1 07: €-227 m) despite the first time consolidation of First Choice with €-83 m. The former TUI Tourism business strongly improved to

€-138 m.

Underlying EBITA of container shipping** with substantial performance improvement at €18 m (Q1 07: €-36 m)

* Cruises in tourism business with effect from Q1 2008 ** Container shipping classified as discontinued operation with effect from Q1 2008


Tourism


TourismTUI Travel - Overview

Merger of TUI Tourism activities with First Choice Holidays businesses

Europe’s leading international leisure travel company

Over 30 million customers from over 20 source markets

Circa 160 aircraft

Circa 4,000 retail shops in Continental Europe, UK & Ireland

48,000 colleagues

Widest range of leisure travel experiences available


TourismTUI Travel - New structure

MainstreamSector

Classic TO business /market leadership

Online Destination

Services Sector

Online accommodation / Destination services

SpecialistsSector

Exclusive products / strong local brands

ActivitySector

Lifestyle travel products / market-leading brands

Pro forma FY 2007*: Turnover: ~€18.9 bn

Ebita (underlying): ~€500 m

Turnover:~€16,100 m

Ebita: ~60%

Turnover:~€1.500 m

Ebita: ~10%

Turnover:~€650 m

Ebita: ~10%

Turnover:~€700 m

Ebita: ~15%

* unaudited

http://www.tuitravelplc.com/tuitravel/


TourismTUI Travel - Business model

Choice of Product Flexibility for the Customer

CONTENT

CUSTOMER

Self SelectionIndividual Components

Self SelectionDynamic Packaging

Traditional Packages

Exclusive / Differentiated Holidays

Tailor Made Holidays

Online

Retail

Call Centre

Providing choice and flexibility for the customer

Flights

Bed-bank

Car hire, transfers, excursions

Differentiated

Exclusive

Added Value

Expertise

Scarce Assets

Component

Specialist


Tourism TUI Travel - Value Creation Opportunities

Intensive Care

RecoveryStage

CriticalStage

Healthy Stage

ThrivingStage

Loss making < 1%Operating

Margin1% – 3% 3% – 5% > 5%

RevenueContribution1,2

UnderlyingOperating Profit1,2

-€66m(-£48m)

€1.8bn(£1.3bn)

€4.3bn(£3.1bn)

€5.6bn(£4.1bn)

€3.6bn(£2.6bn) €2.3bn

(£1.7bn)

€32m(£23m)

€85m(£62m)

€130m(£95m)

€212m(£155m)

€11bn1 (£8bn) of Under-Performing Revenue

1 based on year end 2007 GBP / € exchange rate of: 0.73 2 Proforma 12 months to 30 September 2007


TourismTUI Travel - Pillars of profitable growth

Product & Content Differentiated and specialist product

Levers

Business Model & People

Synergy deliveryEfficiency improvementsCapacity managementLeadership & structure

Distribution & BrandsDirect distributionBrand positioning

Growth & Capital Allocation

Acquisition programmeOrganic growthROI focusCash management

Delivering sustainable

margin growth

Strategic Imperatives


TourismTUI Travel – Merger related synergies

32%

9%

9%

33%

17%

Airline Restructuring & IT Distribution Tour Operations Group & Global

Synergy mix

Synergies upgraded by 50%: Full synergy benefit of approximately €200 m* (₤150 m) expected until 2010Cost of expected synergies at around €250 m* (₤180 m)

* based on year end 2007 GBP / € exchange rate of: 0.73


TourismTUI Hotels & Resorts - At a glance

No 1 leisure hotelier in Europe with

237 hotels and 145,000 beds

Most hotel companies with local

partners

Focus on four star category (approx.

60%)

High occupancy rates (~80%) through

access to TUI Travel customers and

direct distribution


TourismTUI Hotels & Resorts - Overview

Group-controlled hotel beds by regions

Eastern Mediterranean

19%

Western Mediterranean

36%

North Africa / Egypt18%

Caribbean18%

Other9%

3 Stars16%

5 Stars21%

4 Stars63%

Hotel categories

Selective organic growth through

new hotel projects with 16

scheduled openings in 2008


TourismTUI Cruises

Hapag-Lloyd Cruises operates 4 ships in the German premium and luxury segment

Utilisation of all ships was 78.6% in 2007, up by +5.1p.p. y-o-y

Joint Venture (50/50) with Royal Caribbean Cruises Ltd.

Permission received from European antitrust regulators in March 2008

Plan on track to start business in Summer 2009


Shipping


Global volume development container shipping(in TEU mill )

ShippingContinuously strong market volume growth

Source: Global Insight, March 2008

CAGR 10% CAGR 7%

74

86

96

105

114121

130

140

149

158

167

2003 2004 2005 2006 2007 2008e 2009e 2010e 2011e 2012e 2013e


ShippingVolume development of main trade lanes

World Container Trade 2008e (TEU m)

13.6 (+8.0%)

Latin America

North America Europe

Africa

Far East

Middle East /Indian Ocean

Australia/New Zealand

3.7 (+5.1%)

5.6 (+6.8%)2.9 (+4.2%*)

6.6 (+6.4%)

1.3 (+5.1%)

2.9 (+5.6%)

Intra Far East

Source: Global Insight, March 08

16.2 (+7.7%)

25.4 (+7.5%)

*Compound Annual Growth Rate

(CAGR) 2008-2011 forecast in%

is shown in brackets

Dominant legNon-dominant leg


ShippingHapag-Lloyd at a glance

Top 5 global container shipping company

through acquisition of CP Ships

141 container vessels with a total capacity

of 493,000 TEU

Revenues in 2007: € 6.0 bn

Volume in 2007: 5.5 mill TEU

Share of volume for 2007 (mill TEU):

Far East26%

Australasia13%

Latin America

16%

Atlantic27%

Trans-Pacific19%


Shipping transport chain Highly efficient integrated IT systems

Empty Container (Return)

Factory/ Distribution

Centre

Inland Transport to Consignee

InboundPort

Ocean LegInland Transport

to PortOutbound PortFactory

Empty Container (Delivery)

Source: Company information

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

an industry-leading IT system...

Only one Transport File per Shipment

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

...with significant efficiency benefits

Hapag-Lloyd operates


ShippingProductivity development

693

754

856

873

751

916

471

0

100

200

300

400

500

600

700

800

900

1.000

2002 2003 2004 2005 2006 2007

HL Land personnel CP Ships

(82%)

(95%)(100%)

- TEU/employees -

Figures as of year end


ShippingCost reduction measures

Reduction of bunker consumption:

Speed reduction of vessels in selected services

Silicone-based underwater paint

Optimization of service schedules

Cargo selection according to weight

Hedging strategies for bunker and currency exposure

Optimization of imbalance steering

Continue productivity enhancements

Continue process optimization


Agenda

I. Financials 2007

II. Tourism

III. Shipping

IV. Outlook 2008 & Strategy


TourismBooking update

y-o-y variation% SalesSummer 2008

Customers Capacity SalesWinter 2008/09

Customers Capacity Short-haul +1 -13 -23 -5 -9 -25

Medium-haul +21 +9 -4 +15 +9 -13

Long-haul +8 +8 +2 +6 +2 -4

UK +8 -2 -13 +15 +6 -16

TUI Nordic +3 +1 flat +1 -4 +2

Northern Europe +7 -2 -11 +9 +2 -12

TUI Germany +4 +1

TUI Austria -22 -20

TUI Switzerland +12 +11

Central Europe +3 flat -14

TUI France -6 -10

TUI Belgium +7 +3

TUI Netherlands +6 +2

Western Europe +1 -2 flat

Specialist +9 +2

Activity +4 n/a

ODS +32 +24

Not on sa

le

Based on trading statistics up to 4 May 2008


Outlook Tourism 2008

European travel market expected to grow 3-4%*

Turnover forecast to reach up to €19 bn

For the Tourism division underlying EBITA is expected to rise significantly

Drivers for underlying EBITA improvement of TUI Travel: - Full year consolidation of First Choice businesses- Synergy benefits in first full year - Capacity management and growth of controlled distribution & differentiated

content in the Mainstream sector - Combination of organic & acquisition led growth in specialist sectors

Drivers for Underlying EBITA improvement of TUI Hotels & Resorts:- Increase in number of bednights- Slight rise in the average revenues per bed

* WTTC Report 2007


Container Shipping Freight rate trends by trade lanes

1,511

1,508

1,494

1,422

1,381

1,645

1,266

1,459

1,562

1,234

1,506

1,415

1,345

1,392 1,443

1,626

1,653

1,556

1,4661,451

1,2031,179 1,2211,1741,179

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08

Freight rate in US$/TEU Atlantic

Trans-PacificLatin America

Far East

Australasia


Outlook Container Shipping 2008

Market growth of approx. 7%* expected

Hapag-Lloyd transport volumes in-line with market growth

Average freight rates are forecast to rise against last year

Depending on the development of the US Dollar versus the Euro an increase in

turnover to up to €7 bn should be possible

Underlying EBITA expected to increase significantly based on:

- Growth in average freight rates and rise in volumes

- Full synergies from the integration of CP Ships being available

- Further cost savings in operative business

* Global Insight December 2007


Strategy - Separation of container shipping

All options are being examined like: spin off, merger or divestment as a single entity

taking into account the interests of our shareholders, bondholders and employees

Separation process progressing according to plan

- Internal project team has been installed

- External advisors have been mandated

- Information memorandum in preparation

- Approach of interested parties can be expected for late May / early June

Targeted impact on TUI Group financials

- Significant reduction of net debt

- Enhanced financial flexibility for further investments in the tourism division

- Appropriate consideration of shareholders


TUI - current group structure

Tourism Shipping


Financial calendar

15 May 2008 First Quarter 2008

14 August 2008 Second Quarter 2008

TUI Travel PLC: Third Quarter 2008

14 November 2008 Third Quarter 2008

TUI Travel PLC: Prelim. Financial Year 2008

25 March 2009 TUI Financial Year 2008

13 May 2009 TUI Annual General Meeting

TUI AG Investor Relations - E-Mail: [email protected] - Phone: +49-511-566-1425


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 Group Investor Presentation...TUI AG | Investor Relations | Seite 4 Turnover and earnings 2007...

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