TUI AG: INTERIM REPORT Q1 2023 1 OCTOBER 2022 – 31 DECEMBER 2022

TUI GROUP

Interim report Q1 2023

1 October 2022 – 31 DECEMBER 2022
 

Content

Interim Management Report

Summary

Report on changes in expected development

Consolidated earnings

Segmental performance

Financial position and net assets

Comments on the consolidated income statement

Alternative performance measures

Other segment indicators

Corporate Governance

Risk and Opportunity Report

Unaudited condensed consolidated Interim Financial Statements

Notes

General

Accounting principles

Group of consolidated companies

Acquisitions – Divestments

Notes to the unaudited condensed consolidated Income Statement

Notes to the unaudited condensed consolidated Statement of Financial Position

Responsibility Statement

Review Report

Cautionary statement regarding forward-looking statements

Financial calendar

Contacts

This Interim Financial Report of the TUI Group was prepared for the reporting period from 1 October 2022 to 31 December 2022.

Interim Management Report

Summary

Q1 2023 underlying EBIT of €-153.0m delivering a strong improvement year-on-year (Q1 2022: €-273.6m) with an encouraging booking momentum across both Winter and Summer seasons.

• 3.3m customers departed in the quarter, an increase of 1.0m customers versus the prior year and 93% of Q1 2019 customer levels on a like for like basis1. As a result, average load factor for the quarter was 85% (Q1 2022: Load factor 79%).
• Group revenue of €3.8bn, was up €1.4bn on the prior year (Q1 2022: €2.4bn), reflecting the strength of demand and a return to a restriction free travel environment achieving levels above pre-pandemic levels (Q1 2019: €3.7bn). 
• Q1 Group underlying EBIT at €-153.0m, up by €120.6m and thereby close to half the prior year loss (Q1 2022: €-273.6m loss), with almost all segments contributing to the strong improvement.
  • Hotels & Resorts reported a third consecutive quarter above 2019 levels and was up year-on-year, supported by good operational performances across the hotels businesses.
  • The recovery in Cruises continues with the segment achieving a third positive quarter since the start of the pandemic. As a result, the business recorded a strong improvement against last year driven by higher volumes as well as improved occupancies with a full fleet back in operation.
  • In Markets & Airlines results were well ahead of last year supported by higher prices and volumes with Central and Western Regions above 2019 levels.
• Net debt of €-5.3bn as of 31 December 2022 was broadly in line with prior year (31 December 2021: €-5.1bn).
• We re-confirm our expectations to increase underlying EBIT significantly for financial year 20232 supported by an encouraging booking momentum.
• 8.7m bookings3 have been taken across both the Winter and Summer seasons whereby Summer is, as usual, at an early booking stage.
• The start into the new year has seen significant booking momentum with record booking days online in both the UK and Germany. Volumes overall in the last four weeks are now above pre-pandemic levels at +5% for Winter 2022/23 and +10% for Summer 2023, with higher prices, underlining the popularity of our product offering and a testament to the importance of travel for our customers.
• Our commitment is to be industry-leading in achieving net-zero emissions and we aim to achieve this target across our operations and supply chain by 2050 at the latest. Our 2030 Science based targets have been validated by the SBTi for our Airline, Cruise and Hotel operations and are detailed below.

1 Excluding businesses sold and discontinued since 2019

² Based on constant currency. In view of the effects from the war in Ukraine, the assumption for underlying EBIT is subject to considerable

  uncertainty. Amongst others, the greatest area of uncertainty will be the impact on consumer confidence, should there be further cost inflation

  volatility and/or an escalation of the war in Ukraine.

3 Bookings up to 5 February 2023 relate to all customers whether risk or non-risk and includes amendments and voucher re-bookings.

Sustainability as opportunity

• For TUI Group, sustainability covering all three areas of economic, environmental and social sustainability is a fundamental management principle and a cornerstone of our strategy for continually enhancing the value of our company. We firmly believe that sustainable development is critical to long-term economic success. Together with our many partners around the world, we are actively committed to shaping a more sustainable future for tourism.
• We already operate some of the most efficient aircraft and cruise ships. Our commitment is to be industry-leading in achieving net-zero emissions and we aim to achieve this target across our operations and supply chain by 2050 at the latest.
• TUI has committed to the Science Based Targets initiative (SBTi) to reduce emissions in line with the latest climate science by 2030 for airlines, cruises and hotels. The independent organisation has now checked and validated our reduction targets. It confirmed that they are in line with the latest climate science. Our targets are:

• Reduction of airline CO2e per revenue passenger kilometer by 24% by 20301.
• Reduction of absolute CO2e from our own cruise operations by 27.5% by 20301.
• Reduction of absolute CO2e from TUI Hotels & Resorts own operations by 46.2% by 20302.

1 Baseline 2019. Level of ambition well below 2Oc. CO2e = CO2 equivalents. Apart from carbon dioxide (CO2), they include the other five
  greenhouse gases impacting the climate as listed in the Kyoto Protocol: methane (CH4), nitrous oxide (N2O), hydro-fluorocarbons (HFCs),
  perfluorocarbons (PFCs) and Sulphur hexafluoride (SF6).

2 Baseline 2019. Level of ambition 1.5Oc