TUI AG

Hello, everyone, and thank you for joining the TUI Group FY25 nine-month results call. My name is Claire, and I will be coordinating your call today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two on your telephone keypad. I will now hand over to TUI to begin. Please go ahead.

Thank you, Claire. Good morning, ladies and gentlemen. A very warm welcome to our third quarter results presentation from the TUI campus in a very hot and sunny Hanover. My name is Nicola and I'm group director in West Relations. I'm joined today by our CEO, Sebastian Ebel, and our CFO, Matthias Kiepp. We are pleased to present a good set of numbers, with Q3 delivering the best-ever result. No doubt you will have seen our ad hoc statement yesterday evening, which highlighted that on this basis we are raising our full year 25 underlying EBIT guidance. Following the presentation in a moment, we will be available for Q&A. And with that, I have the pleasure to hand over to Sebastian and Matthias. Here, Sebastian, to you first.

Thank you, Nicola, for the nice introduction. you see us not you see us you hear us in a good good mood there are not many good news today around in the world i think what we can show and deliver our good news and that keeps us very positive you are familiar with our agenda it's the same like before i will talk about operational and strategic highlights matthias will go into the numbers in detail we also will give you a trading and an outlook and a short summary. We have seen a very strong nine month revenue up by 8%, EBIT up 115 million, 150 million, 150 million at current currency, driven by record hotels and cruise results. How do we do that? We have had an even intensified look into the integration benefits. The streaming into our own hotels, our own cruises into the amusement products have even been optimized, and that drives superior results and growth, and we are really proud of that. Market and airline transformation is accelerating. very important because we still have significant room for profit improvements. And we are, and we have presented that before, more customers, more products to deliver growth. And by rolling out now our standardized global platforms, IT platforms, we are able to significantly reduce costs. We will go into the details in December. this year, so in three months to give you more guidance on what we do there. And on this basis of the great nine month, we are not only well on track for the full year, but we were also able to increase the guidance for the full year to 9 to 11% at current currency. If you look into the third quarter, into the details, significant improvement, 90 million, almost 100 million at current currencies, driven by highly experienced record and market airlines benefit of the Easter shift, which we had expected when we presented the Q2 numbers. Revenue up by 7%. and EBIT up to 321 million, the highest Q3 result ever, I can remember, and the team looked into it to verify it for the whole two weeks. When we look into Holiday Experience, the Q4 trading momentum is there. It stays. So by the vertical integration benefits, by the strong demand, we are able to have higher rates for our unique and differentiated products. The focus on unique and differentiated products makes it different also for the market and airline, and the market and airlines helps a lot through the integration effects to get the outstanding occupancy and rates. We look into the market and airlines. Summer bookings are minus 2% ASP, holding up 3% in a very competitive market. market with a later booking trend, heat waves and especially the Middle East conflict had some impact. If we look into the winter season, we have seen a very positive start. It's still early, but a good start is a good start. And by having said that, as said, we were able to increase the guidance. If we go into the details, Q3 Hotels and resorts were on the same level as Q3 of 24. This is taking into effect a negative effect. We had a one-time effect on the re-evaluation effect. We also had the effect of the Turkish Lira. Operational result has been significantly better. But, again, this is a strong comparative we had last year, and we keep that. On the cruise side, a significant improvement. The good thing is it's not only because it increases capacity increase. We haven't had the negative effect of the Suez Channel rerouting last year, and we do see that we have a very good – development also when it comes to rate. You could argue on hotel side the occupancy has further increased daily rate 3%. You could argue why is the occupancy and also when we look into the fourth quarter is stable because the cruise ships are fully booked. So the future task will be to optimize further the rate. Also good development with amusement. um especially we put a lot of effort to direct our 2e customers into our own produced experience through the built data base we have with all customers that is doing very well and that has led also to a significant increase in the ninth month of the two amusement results so holiday experience doing extremely well benefiting from global distribution that's i should have mentioned as well We now get more and more hotels also from other source to resource markets. We went into Portugal. We went into Spain, by the way. We will go in the autumn into Italy as a new source market. We went into Eastern Europe, but also into the Americas, South America, Middle America, and that helped us to keep the high demand. load factor or even improve the load factor. So it's an important effect of the vertical integration. If we look into market and airlines, we have seen the expected increase due to the easter shift in Q3, but we are still behind the nine-month number. Departed tax 2% up. What is really important for us is the increase in the dynamic package share. This is a very important source of growth in the future, and we have now built a dynamic connection to airline content, to hotel content, And that's why we also expect not only here a significant, we see not only here a significant increase, but we hopefully can accelerate that in the future. App sales also very important for us. 40% increase now to 10.5 percentage points. That's a great development. And clearly what is even better is that when we want to go to the 50%, there's a lot of what we can achieve by improving our app. and load factor on the same good level as we had before. If we look into the regions, UK having seen the biggest improvement, Germany a small improvement, and Western region a negative. Western region consists of three countries, France, Belgium, Holland. France is doing well, but we have this for two years. Before that, it was our main concern. Problem child, Holland and Belgium needs a lot of focus and we are turning around the business. We're changing the business model to a more dynamic model, a more direct sales model. We actually had the same situation in Scandinavia, Finland a year ago. We changed, turned around the Nordic countries, and this is what we will achieve. Also invest on region next year. So it gives us a solid base of further improvement as well. Some highlights like we always do. We said for market and airlines, more products, more customers. More products there is a very important product which we are now rolling out. in Europe, starting with all the TUI markets, starting with Germany, this is our Tuis products. The tourist market is a big, big market in Europe, but everywhere in the world. And the new tool consists, which is available for online, but also for retail, consists of pre-produced round trips, at the moment 200, but that will increase to several thousands closely. But what we have seen, there is a big demand of personalized products, agendas from the customer. So where he books two days Los Angeles, one day San Francisco, one day in Yosemite Park, and the tool makes sure that the flight fits to the hotel, the time schedule fits of the excursions, fits to the location where you are. So it's a great tool. The first signs are very promising. It's a huge untapped market. I talked about the app, a lot of small and big improvements there. We bring AI into the search, not only search algorithm, but also the customer can do full-text search. We did start that in the UK, and every month there is new functionality in the app, location-based service and so on. On the hotel, on the experience side, last time we presented what we are doing in Asia. We are now also expanding in Africa, which is, by the way, a very attractive market, and the TUI brand is very well received there. Now new hotels in Gambia, quote, unquote. Thank you. I was never so good in French. And also in South Africa, there are more hotels coming. As you know, we successfully launched in March the Mein Schiff Relax, which was now in full operation in the third quarter. In the third quarter, two-third quarter of 26, the mineshaft flows will come into the market, and that will also be a significant base of improvement. Sustainability, this is not a fashion for us. It's a sound bill case for us. It's of course good for the climate, it's important for the customer, but it's also a commercial business case in itself. Here we have some examples for what we do, turnarounds on airports. We had the first UK airport, was it Birmingham, where we use hydrogen powered ground support equipment. What is really not on the list here, what makes us proud, we had the first trip, a travel with Mineshaft Relax completely with ELNG, so carbon-free LNG, which was made out of, which is made out of biogas coming price-wise closer to the carbon LNG. And this is something where we always dreamt of, and we have brought this into reality. Matthias, the hot numbers.