Download TUI AG with substantial improvement in H1 results CEO Joussen

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TUI AG with substantial improvement in H1 results
CEO Joussen: ”TUI is fit for new growth”
 Seasonal Group loss down by 146 million euros
 Hotels & Resorts: RIU and Robinson with improved returns on
capital
 Cruises: Turnaround will be achieved this year
 High confidence to reach earnings targets fully for the financial
year
 oneTUI targets for 2014/15 fully on track
TUI AG
Group Corporate &
External Affairs
Karl-Wiechert-Allee
4
30625 Hannover
Telefon +49(0)511
566-6021
Fax +49(0)511 5666003
[email protected]
www.tui-group.com
 Launch of growth strategy following consolidation strategy
 Robinson: Expansion to up to 40 clubs and internationalisation
Hanover, 16 May 2014. TUI AG is on track to deliver its strategic and
economic targets and is fit for new growth following its restructuring.
The oneTUI programme launched by TUI CEO Fritz Joussen twelve
months ago is taking effect and continues to be consistently
implemented: the Group structures have been streamlined, the costs of
the Group holding have been cut by more than 30 per cent, and the
profit targets set by the end of financial year 2014/15 have been
confirmed. TUI CEO Fritz Joussen: “Lean structures and cost discipline
are giving us latitude and room for manoeuvre for the future. We are fit
for growth and are planning to grow again as a Group. This will open up
potential for our shareholders, our business associates and our
employees. A TUI delivering growth and investments will guarantee
unique products and diversity of services for our customers. Groupowned hotels, clubs and cruise lines are maximum drivers of
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differentiation as perceived by our customers and make us stand out.”
In the growth phase now beginning, TUI will focus on product
differentiation and enhanced exclusivity and strengthen its brand
image. According to Joussen, the aim is to move away from a “brand
jungle” towards a clear brand architecture showing a sharper TUI
profile and gaining stronger customer recognition via the tourism value
chain. Joussen announced the presentation of a new brand
architecture for the hotels and resorts of the TUI Group for the second
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half of the year. RIU and Robinson, the core brands, will not be
included.
Visible improvement in H1 results
In the current financial year, the Group loss in the first half of the year,
typical of the sector, narrowed considerably by 146 million euros (or
29.4 per cent) to -351.2 million euros (previous year -497.2 million
euros). The strategic focus on exclusive products caused a slight
decline in turnover (-4.1 per cent) to 6.6 billion euros (previous year 6.8
billion euros). At the same time, however, the Group’s operating result
TUI AG
Group Corporate &
External Affairs
Karl-Wiechert-Allee
4
30625 Hannover
Telefon +49(0)511
566-6021
Fax +49(0)511 5666003
[email protected]
www.tui-group.com
(EBITA) improved by 29.1 per cent year-on-year in the period under
review to -339.4 million euros (previous year -479.0 million euros).
Despite the impact of low demand for Egypt, underlying EBITA was
only 2.1 per cent down on the prior year at -345.7 million euros
(previous year -338.7 million euros). Excluding the timing effect of
Easter – with the key Easter trading period falling in April and hence the
subsequent quarter this year – the Group’s underlying operating result
improved by 21 million year-on-year, up by 6 per cent.
RIU and Robinson with improved returns on capital
The measures defined by the oneTUI programme are taking effect, as
can be seen in the Hotels & Resorts Sector: With a return on invested
capital (ROIC) of 12 per cent, the RIU Group already exceeded the
target of 11 per cent in the past. In the full year it is expected to
increase again slightly. In the past, Robinson Clubs fell significantly
short of the target at around 6 per cent. The TUI Group Board had
announced a review of the Robinson portfolio and called for measures
to improve profitability of the subsidiary. The return indicator is
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expected to increase to more than 9 per cent in the full year. “Robinson
is successfully implementing its profitability growth roadmap. We are
thus creating the basis for the future expansion and internationalisation
of our premium clubs,” said Joussen.
Cruises: Turnaround will be achieved this year
TUI is assessing the outlook for the cruises business as particularly
positive. The Executive Board of TUI AG is confident that the Sector
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will achieve the turnaround by the end of the financial year. Following
the commissioning of the third vessel by TUI Cruises in June 2014,
“Mein Schiff 4” is to be delivered in 2015, as scheduled. Further fleet
growth is conceivable to achieve the planned internationalisation of TUI
Cruises within the TUI Group, in particular through a potential entry into
source market UK. The Group is currently evaluating long-term options
for an expansion of its fleet. However, here, too, capital discipline
remains the priority.
Following two dry-dock periods of the cruise vessel Europa, which
impacted earnings, and a decrease in load factors, Hapag-Lloyd
TUI AG
Group Corporate &
External Affairs
Karl-Wiechert-Allee
4
30625 Hannover
Telefon +49(0)511
566-6021
Fax +49(0)511 5666003
[email protected]
www.tui-group.com
Kreuzfahrten is again focusing on delivering consolidation in the luxury
segment. In the completed quarter it managed to increase turnover, the
average rate per day and passenger and the number of passenger
days.
High confidence to reach earnings targets fully for the financial
year
The Executive Board maintains its very positive assessment regarding
the outlook for the TUI Group. EBITA is expected to grow year-on-year
for the full year. The Executive Board of TUI AG had planned to deliver
a growth roadmap of 6 to 12 per cent for the underlying operating result
for financial year 2013/14. Joussen: „Against the background of the
improved business performance of the sectors, we are very confident to
fully reach our earnings targets for the full year.”
oneTUI moving from consolidation to growth phase
In the light of these successful developments, the oneTUI programme
is now moving to its growth phase. For the forthcoming three to five
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years, the focus will be on preserving and expanding market share in
the Mainstream Business and on further focusing on contents and
product differentiation. The aim will be to increase value added per
customer. At the same time, activities not delivering any synergies for
the overall Group will have to be developed and transformed so as to
generate an additional contribution.
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Robinson: Expansion to up to 40 clubs and internationalisation
The Robinson Clubs, which form part of the core business, are to be
further expanded in the future. The portfolio will be reviewed and
substantially improved. The Group is planning to increase the number
of club resorts to around 40 in the coming years. The expansion is to
go hand in hand with an internationalisation of the product. This has
already been successfully implemented at the Robinson Club in the
Maldives, which is currently very popular among Asian guests.
Hapag-Lloyd Container: CSAV merger benefits TUI exit
TUI AG
Group Corporate &
External Affairs
Karl-Wiechert-Allee
4
30625 Hannover
Telefon +49(0)511
566-6021
Fax +49(0)511 5666003
[email protected]
www.tui-group.com
On 16 April 2014, Hapag-Lloyd and its Chilean competitor CSAV
signed a business combination agreement, initiating a merger
between the two shipping lines. The rights of the TUI
shareholders have been optimally secured in this context. Final
exit from container shipping is thus drawing closer for TUI AG.
The shareholders of Hapag-Lloyd have come to a binding
agreement to float the newly formed company in the stock market
in 2015. In the event of an IPO, TUI will benefit from priority
placement of its shares over all other shareholders. Moreover,
TUI will also be entitled in the run-up to the IPO to sell its shares
in the form of a private placement or to sell them to individual
investors.
About TUI AG
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TUI AG is Europe’s leading tourism group. Alongside the strategic control of
the three business sectors TUI Travel, TUI Hotels & Resorts and TUI Cruises,
TUI AG also assumes classical holding functions. As an integrated tourism
group, TUI operates along the entire tourism value chain with a large number
of companies and brands. Around 74,000 employees worldwide create unique
travel experiences for our customers and contribute to our mission – Putting a
smile on people’s faces. Global responsibility for sustainable economic,
ecological and social action is an indispensable element of our corporate
culture and is reflected in our commitment to more sustainable tourism, which
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has been in place for more than 20 years. In financial year 2012/13, TUI AG
recorded turnover of 18.5 billion euros and an operating result in tourism of
762 million euros. More detailed information is available at www.tui-group.com.
This press release is also available at www.tui-group.com
Media enquiries:
TUI AG
Group Corporate & External Affairs
TUI AG
Group Corporate &
External Affairs
Karl-Wiechert-Allee
4
30625 Hannover
Telefon +49(0)511
566-6021
Fax +49(0)511 5666003
[email protected]
www.tui-group.com
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Press
Kuzey Alexander Esener, phone +49 (0) 511 566 6024
Natascha Kreye, phone +49 (0) 511 566 6022