Strong Strategic Position

  • Market leader in growing tourism market
  • Own customer end to end: Markets & Airlines, Hotels & Resorts, Cruises, Destination Experiences
  • Differentiated product offering and strong customer base
  • Driving Holiday Experiences premium returns through scale in Markets & Airlines
  • Customer ownership: digitalised product upselling
  • Risk mitigation by double diversification

Sustainable Earnings Growth

  • Tourism sector growing above GDP
  • Focus and deliver on our four strategic initiatives to enlarge TUI’s ecosystem:
  1. Protect and where possible extend leading positions in Markets & Airlines
  2. Grow Hotel & Cruise businesses through asset-right expansion
  3. Build scale in our new markets through our new GDN-OTA1 digital platform
  4. Build scale in Destination Experiences markets and target “One million things to do”

1 Global Distribution Network – Online Travel Agency

Disciplined capital allocation

  • Holiday Experiences ROIC >1/3 higher than peers2
  • Organic growth opportunities: Investments into own assets, JV & asset light growth as well as digital platform to achieve superior returns
  • Reliable core dividend: 30-40% of EAT3 with a dividend floor of €0.35 per share
  • Accretive M&A and portfolio optimization
  • Excess cash to be returned to shareholders
  • Solid balance sheet – with a gross leverage ratio comfortably within target range of 3.0x-2.25x4

2 H&R FY18 and FY19 ROIC of 14% pre IFRS 16 basis versus Melia FY18 ROIC. Cruise Segment: FY18 and FY19 ROIC pre IFRS 16 basis of 23% versus average of Royal Caribbean Cruises and Carnival Cruises FY18 ROIC
3 Underlying post minorities at constant currency

4 FY20 Guidance range of 3.0x – 2.25x based on current planning reg. MAX return to service end of April 2020 and pre IFRS 16