TUI AG

Good morning, ladies and gentlemen, and a warm welcome to the TUI-HE conference call regarding the financial year 24 Q3 results. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation for the ones dialed into the conference call. Let me now turn the floor over to your hosts, Sebastian Ebel and Matthias Kiel.

Thank you very much. Ladies and gentlemen, a warm welcome from our side to TUI's third quarter results presentation. My name is Nicla, Group Director Investor Relations, and I'm here with our CEO, Sebastian Ebel, and our CFO, Matthias Kieff. They will present a record quarterly performance and provide an update on trading and outlook. And as always, afterwards, we will be available for Q&A. And with that, I have the pleasure to hand over to Sebastian.

Thank you, Nicola. A very warm welcome also from my side. I'm very happy to present with Matthias our numbers. You find that in a good mood in Berlin, in our office, in a good mood not only because of the third quarter result and the good outlook for the full year result, but also because we're seeing very good progress on our transformation program. We have given the promise that we will unlock significant value by focus on operational excellence and by transformation. And we will give you more information with the full year result on our transformation. Today, I can say that we very much leverage on our unique quality experience products, and we have more and more positioning as a successful platform of business. And by knowing how the progress is on the transformation, we will stay committed to our mid-term ambitions to have an EBIT underlying growth of 7% to 10% per year and to further improve the net leverage. So the agenda is, like always, I will give you some highlights. Matthias will dig into the numbers. Together we will do a trading update and outlook and a summary, and then we're looking forward to the Q&A session. If we look at the highlights, we can report another record revenue quarter with 5.8 billion, which is almost 10% up. compared to last year, and a significant improvement in our underlying EBIT to 232 million, 62 million up, which is 37%, and all business contributing. Markets and airlines are doing very strongly with significant increase in bookings. Also, the ASP is up 3%. Booking has accelerated the growth. The ASP is slightly less than we had before. This is purely a mathematical issue. You may recall that FDI went into insolvency in Germany. They were at a very lower end of the market. And as we got our market share with the FDI customers, that had a mathematical impact on the ASP. The ASP on the products we have sold before is stable. Great result in holiday experiences. Hotels very strong. surprisingly strong. You may recall we had the Suez impact. We had to reroute cruise ships from the Suez Channel around the southern part of Africa. and we were able to offset even more of these additional costs. And also amusement has seen significant growth with our product. And by this, we can reconfirm the guidance we have given to increase the EBIT by at least 25%. I think this is a good promise we have given to you and the markets. If we look into the sectors, hotel, significant increase of profitability, 20 million. Now we stand at 339. And if you look at the average daily rate increase with 7%, this is a very good result for the seasons just before the peak season. Cruise, 30 million, almost 30 million, up now at almost 200 million. What is amazing here is not only the occupancy increase to almost 100%, technically it's difficult to overachieve that, and especially a daily rate increase of 7%. Musement has also seen an improvement of results. We have more focus, and this is important also for the future, for the next quarter, but also for the long-term future. We are not so much in buying new customers with a low low revenue, average revenue, a number where the margin is, in absolute terms, not high enough. We are focusing very much on selling the own products where we have a very good margin. Therefore, this 14% increase are important. Transfers are almost in line with the growth of the tour operator, which we have seen. If we come to markets and airlines, an increase of 10 million. Two markets are contributing positively, the northern region and the central region, whereas the western region is negative. This is mainly due to the introduction of the new IT systems we had and some delays in the max delivery. So these are one time effect which should not occur anymore next year. Some highlights, which is always good to be anecdotally, what are good examples for our strategy. One example from hotel and resorts, or two examples from hotel and resorts, and one example from amusement. Rio opens the 10th city hotel, a city hotel which is very much focused on leisure customers. This is pretty unique in major cities, and what we do see is very, very strong profitability. two hotels in New York. We have one in Dublin. We have one in London. We have one in Madrid. We have one in Panama. I think I've now forgotten two. We have one in San Francisco and now it's, and in Berlin. Thank you, Nicola. And the one in Chicago is the next one. And that's really great because we bring the TUI brand also in the source market to life and people when they go to a capital city or to a city can experience TUI. Another good example has been the opening of the Mora Hotel, a six-star product on Zanzibar. Very well received, 100% occupancy at the moment, very good prices. There is a market for that. It's a different product to other six-star hotels because it's very, very much focused on leisure customers, the big market of leisure customers. Musement, we are very happy. that we were able to gain a last minute as a B2B partner with all the brands. It clearly shows that the strategy, one, to focus on B2B strong partners, and second, on B2C with our own products works very well. And we always said, this is a source of new customers. That's what we see. And with all the activities, we will accelerate this growth. Sustainability is part of our DNA, it's in our heart, and it's not only altruistic, but also because we too see the commercial sense in it. And two good examples, one is the mine shift 7, which was delivered a couple of weeks ago, is the first ship which will be green methanol ready, which means that if we are in a harbor, we will source green electricity of, what is the name, of shore power. And this means we buy this wherever it's possible, green electricity. And this is valid then for 12, 13 hours. And the remaining part then will be done by e-LNG or e-methanol. And that will bring the cruise business in a very different territory when it comes to sustainability. And another thing we are very proud of, the one or the other may recall that we build a huge solar plant at our property in Hannover in Germany. We are now with all the activities in Germany, office activities, retail activities. We are 100% CO2 free. But again, this we want to achieve also in our hotel business. We have now 25% of our hotels have solar production, and a major step has been and will be that we just launched three significant big solar plants in Turkey. Another three, which brings us to six, will be opened within the next weeks, which means that our two hotels, owned two hotels in Turkey, will be will be carbon-free. And the good things, it's not a contradiction to profitability, it just supports the profitability as in the medium term, it's even getting more important to the customers. And I think these are good examples about our sustainability agenda. And with the nice words, we come to the heart, also nice numbers, which will be presented by Matthias.