TUI AG

Thank you so much, and good morning, ladies and gentlemen. It's my pleasure to welcome you to our first quarter 2026 results presentation here at the Congress Center in Hanover, where we will be holding our AGM later this morning. My name is Nicola, and I'm Group Director in Western Relations at TUI, and I'm delighted to be joined for the presentation by our CEO, Sebastian Ebel, and our CFO, Matthias Kieb. We look forward to sharing with you the details of a very positive start to the new financial year, along with an update on current trading and the reconfirmation of our outlook. In the interest of time, we will keep the presentation brief before we open the floor for your questions. We kindly ask you for your understanding that due to the AGM, we will need to limit the session for one hour. And with that, I have the pleasure of handing over to Sebastian.

Thank you, Nicola. A very warm welcome from all of us here in Hanover. The sun is shining, the first time since a couple of weeks, but the snow is still outside, but we hope now for warmer weather. You know the agenda. It's very similar as you know it. I will do a short introduction about the last quarter. We are very happy about the result. Last year's first quarter was good. This year it's even better. We have seen an increase in EBIT of 26 million despite the cost of the Melissa hurricane of Jamaica. I will talk about this later on. And this improvement is based on a positive HECS trading momentum, but also an improvement in market and airlines. And we have seen strong demand in holiday experiences business, and we have seen the right demand for our risk capacity, which we wanted to fill as much as possible with the right margin. And you remember... that the main target for the retail is also for the sales activities to fill our assets. And by having this positive momentum, we can reaffirm the guidance, the EBIT guidance for 26 of 7 to 10% growth. And we also see this growth for the coming years. If we go into the details, The first quarter in holiday experiences, we were able to improve the result by 18 million, despite the one-off impacts in hotels. The Jamaica, you remember Melissa, who was affecting the business in Jamaica. We had to close hotels, the Rio hotels, the Royalton hotels. for the whole time, the first quarter, and we'll see it later, we also had to cancel a significant amount of flights from the UK to Jamaica. Nevertheless, if we take the one-offs out in hotel resorts, we would have seen a $6 million improvement. Without that, we are $19 million below. And exclusive Jamaica, you see that the occupancy... even in winter, grew by 1%, and the average daily rate grew by 5%. Cruise is very strong. We have seen a significant improvement in result, despite a significant higher capacity of 16%. Occupancy, we're up by 3%, almost reaching 100%, and having the same daily rate, an outstanding result. And also amusement, and winter is not so important, has seen a slight improvement. When we look at market and airlines, we also have seen a 10 million improvement versus prior year. This includes a negative impact of Jamaica, 6 million. As I said, we had to cancel flights to the island, and this had a 6 million impact. For us, it has been important, and it is important, and it will be important that we have the right risk capacity, because with the right risk capacity, we can protect ourselves. our margin and the growth today in the future should come from dynamic packaging and that we did that quite well. This quarter is shown by the load factor which went up by 1% and what we see is also the first benefit of our cost reduction program. Some special items we have seen and initiatives we have seen in the first quarter. We are really proud that we announce our market entry and open our network in Romania on Thursday. I will be there. And it will be after check the second, which we opened two years ago. It's doing very well. It will be the second market which we open. We had a pre-launch a couple of days ago. We see quite promising demand and good margin. And, again, it will help us to fill our assets well. in Europe, but also outside Europe. We also are increasing our river cruise fleet. A second night ship had been launched, and we operate now successfully six vessels. We have put a lot of effort in improving further development of our app. We, as you may recall, we are bringing all activities on the same global IT platform. The app was the first platform which we not only harmonized, it's the same one. And now we do see day by day the benefit of doing so. If you look at the app today, the AI application is really a success story. And we have seen a significant increase. conversion, growth, and uplift in bookings through the app. And the app is the most efficient way to book and to keep customers and to increase retention. And we are very happy. And the potential for us is huge if we compare us with best of breed. We also signed a partnership agreement with Jet2 on the amusement activity platform. We are very thankful for the trust Jet2 gave to us to integrate the amusement platform after Booking.com, after EasyJet, and LastMinute.com. It's the fourth big wholesale partner. We don't take it for granted. It's a big obligation for us, like for booking, like for EasyJet, like for Last Minute, to deliver outstanding products to the Jet2 customers. We are growing on the hotel side. We have a strong pipeline, as you know. We opened five hotels in Africa. We opened one hotel in Vietnam. So these are, especially these are the two reasons why we are growing and we want to grow further. Sustainability is... is key of our DNA. It's not a trend which may have faded away a little bit. For us, it's very important for our customers, for the climate, and it's commercially a sound business case, and that was recognized by achieving the A-writing of the CDP. And Matthias, if you'd like to go into the numbers.

Thank you very much, Sebastian, and very good morning also from my side. Thank you for joining the call. As always, I want to give an overview about the performance, then the EBIT bridge, and then details to P&L, cash flow, and the balance sheet. And Sebastian, as you said, we are very pleased with the first quarter results and this first step into the new fiscal year. And if you look at this, it's really great that we not only have an operational improvement of the numbers, 77 million, the highest underlying EBIT that we've ever seen in this quarter, but also another progress and step improvement in our balance sheet and the underlying financial profile. Net debt improved another 0.5 billion year-on-year. This includes a 0.2 billion FX impact, but the underlying decrease, 0.3 billion, is coming from all the measures that we undertook over the last 12 months. As elements of this progress, I would like to highlight one. We've now also taken the final cruise ship from Morella into ownership. And as you may have seen and recall, we have also repaid early the outstanding remaining amount of the old convertible ship. And as you said, Sebastian, today is the AGM where we will return to dividend payments. That is, for all of us, a very important and great moment. So for the details, as I said, EBIT Bridge, P&L, cash flow and balance sheet. As you saw in the front section, there's really a strong underlying development in all segments. In the hotels, please remember the impact that Jamaica has. Second, that we had a positive one-off last year of around 15 million. We also called that out. And against that, we have the results in this quarter. So overall, an operationally positive development and a negative impact through these one-offs or the not repeat of one-offs. Then you see the very strong development in cruise, and I think it's really great to say not only the capacity addition and the earnings that come from that in TUI Cruises, but also the constant improvement in Marella and in the operational development of TUI Cruises. So alone, the rate increases in Marella. For the winter, we talk about 5% again. I think with the ships that we have and with the concept, it's really a fantastic achievement. amusement, really good development, strong cost control, and then... As mentioned, even despite the impact that we also see there on Jamaica with the long-haul business, a very strong operational development, and it's so important to manage the capacity, one, and second, to make sure that we continue to deliver in our own assets and business in all any experiences. And with the 77 million, a really strong start into the year, 26 million more than we had the year before. Now, to the P&L, two things to highlight. One, it's the first underlying result, which is positive pre-minorities in this quarter. In tourism, you normally have a negative result, also operationally in the winter. So, this is even more so very pleasing to see. Also, as a result, our lost per share halved effectively for that quarter year-on-year. And one contributor to that is another improvement in the interest expense that comes from all the measures that we did, in particular the lease portfolio restructuring and taking the ships and ownership. So that's another $10 million improvement that helps us to reaffirm our guidance of 325 to 350. On this number, please remember that most of our payments Dates for financial instruments are more in the second quarter, so quarter two, quarter four, so we can't take this times four. There's a higher interest payout in Q4 and Q4 compared to Q1. With that to cash flow, and cash flow is in line with expectations, the very important element is that the structural savings that we worked on and that we achieved, interest payments, the fall away of the regular contributions to the UK pension scheme, and reduction in the lease and asset financing repayments, that helps to offset the higher interest. investments that we wanted to see in the hotel segment and that we need to do in context of the Boeing delivery portfolio. And all in all, a 50 million improvement in the first quarter on the cash flow side. Coming to the balance sheet, and as I said, the 0.5 billion improvement is driven by the improvement that you see in the lease portfolio aircraft and ships in particular and includes also 0.2 billion fx movement now this strong performance and the strong advantage we will not see this coming going through the rest of the year because we will see more aircraft being delivered i think this year sebastian we talk about up to 15 maybe a bit more of planes coming from Boeing, so that will, because they directly move from balance sheet, impact that, but overall we continue to see a further improvement of net debt in the full fiscal year. And concluding from my side, because we got the question a lot about the mechanics for the dividend payments, so today is the AGM, we put that to vote, shareholders are expected to approve the dividend payment, and then tomorrow we will pay into the system, so our shares goes ex-dividend, and then on the 13th there will be the payment date from the system to shareholders. And with that, back to Sebastian on the way forward, how our bookings and the guidance look like. Thank you, Matthias.