TUI Share

The beginning of 2009 saw a continuation of the general downward trend triggered by the international finance and economic crisis. It resulted in losses in the worldwide stock markets. Macroeconomic expectations did not improve until the end of the first quarter, giving way to a considerable brightening of the mood in the equity markets. The relaxation in the financial markets was also reflected in key indicators such as the risk premiums in the capital markets. In addition, early indicators stabilised worldwide in the course of the second and third quarters, reflecting at least slight recovery in economic activity. This created more trust in the markets and caused the major stock exchange indices to rise steadily.

The MDAX index, where the TUI share has been listed since September 2008, recorded a positive development in the period under review. Starting into the year at 5,756 points, the MDAX lost around 25% of its value in the course of the first quarter. It recovered again as of March and closed at 7,359 points at the end of September, up 27.8%.

TUI share data   
 

Development of TUI share price in the short financial year 2009

Share price volatility   
In the course of the short financial year, the price of the TUI share showed volatility in comparison with the MDAX and, at a decline of 12.4%, fell short of the overall positive development of the stock exchange segment. The TUI share started into the new stock market year at an opening price of €8.39. On 6 January it reached its annual high of €8.63. The share price then fell substantially in a challenging environment for the tourism sector and on negative forecasts for shipping. As of March, the share price started to recover again with the successful completion of the sale of Hapag-Lloyd, supported by a positive market environment. In May the share price was almost back to its annual high. The outbreak of swine flu combined with fear of a pandemic and speculation about the capital and financing position of Hapag-Lloyd then caused uncertainty in the financial markets and resulted in a significant fall in the share price. When the Hapag-Lloyd shareholders agreed on a programme to secure the future of the Container Shipping line and applied for a state loan guarantee in this context, the price of the TUI share picked up again as of August. At the end of the reporting period ending on 30 September 2009, the share price was €7.05, down 12.4% against the price at the beginning of the year.
 

Long-term development of the TUI share

Quotations, indices and trading

The TUI share is officially traded on all German trading floors and in the Xetra electronic system. No other company with similar operations in tourism is listed in the German stock market. Several European competitors in the tourism sector such as Thomas Cook, Kuoni and Club Méditerranée are traded on stock markets in the UK, Switzerland and France.

TUI Travel PLC share   
TUI Travel PLC shares have been listed on the London Stock Exchange for listed securities since 3 September 2007. On 24 December 2007, the company was admitted to the FTSE 100, the key share index at the London Stock Exchange.

TUI Travel PLC share data   

TUI share in the MDAX and Prime Standard
The TUI share has been included in the German share index MDAX and had a weighting of 1.83% as at 30 September 2009. When the composition of the index was examined in September 2009, the TUI share ranked 23rd in terms of market capitalisation and 5th in terms of trading volume. TUI has been listed in the Prime Standard of the Frankfurt Stock Exchange and thus meets the high international transparency standards of this segment, over and above legal requirements.

The TUI share is included in several industry indices in the German stock market, including DAXsupersector Industrials and DAXsector All Transportation & Logistics. Its weighting in these indices was 1.66% and 5.93%, respectively, as at the end of the short financial year.

Among the sustainability indices, the TUI share is listed in FTSE4Good, ASPI Eurozone (Advanced Sustainable Performance Indices), ESI (Ethibel Pioneer Index), Dow Jones Sustainability Index World, DAXglobal Sarasin Sustainability Germany and ECPI Ethical Index €uro. TUI AG also participated in the Carbon Disclosure Project (CDP) and was awarded ‘prime’ investment status by oekom Research AG in 2009.

Trading in TUI shares declined in the short financial year 2009 since the average free float fell year-on-year. The average daily trading volume was 2,051,895 no-par value shares, down by around 40% year-on-year. The total annual trading volume was around 391m no-par value shares. The number of option contracts on TUI shares traded on the European futures and options exchange EUREX decreased by half to 4,714 contracts per day, totalling around 0.9m contracts for the short financial year.

Capital stock and number of shares

Employee shares   
No employee shares were issued in the short financial year 2009. They are issued in a calendar-year rhythm and will thus again be issued in December 2009. At the balance sheet date, the capital stock totalled €642,807,158.61, consisting of 251,444,305 no-par value shares certificated by global certificates. The proportionate share capital attributable to each individual share was around €2.56. Apart from subscribed capital, both authorised and conditional capital was available, as outlined in greater detail in the notes on the consolidated financial statements.

Bonds   
The floating rate notes ISIN XS0195307367 were repaid at maturity on 17 August 2009. In the short financial year no bonds were converted from the 2007/12 convertible bond. At the balance sheet date, investors therefore held conversion rights for a total of 25,419,475 TUI shares from the bond.

Resolutions of the 2009 Annual General Meeting

The 50th ordinary Annual General Meeting was held in Hanover on 13 May 2009. Approx. 2,000 shareholders and shareholder representatives, representing 68.93% of the voting capital, participated in the AGM. Besides formal ratification of the acts of the Executive and Supervisory Boards and the election of new members to the Supervisory Board to replace members who had resigned, the agenda included renewal of the conditional and authorised capital and share buyback in accordance with section 71(1) no 8 of the German Stock Corporation Act. In the short financial year 2009, the authorisation to purchase treasury shares was not used.

Additional agenda items were moved by Monteray Enterprises Ltd. They were: re­moval of individual members of the Supervisory Board and the subsequent election of new Supervisory Board members to serve out the remaining term of those removed, special audit on Executive Board remuneration, and a further special audit to establish whether the Company acted in accordance with its duties in publishing insider information during renegotiations to sell Hapag-Lloyd. These motions did not obtain sufficient approval and were therefore dismissed.
Details on the 2009 AGM are available online: www.tui-group.com/en/ir/agm

Shareholder structure

At the end of the short financial year 2009, around 55% of TUI shares were in free float. Around 15% of these were held by private shareholders, around 40% by institutional investors and around 45% by strategic investors. According to an analysis of the share register, these were mainly investors from Germany and other EU countries.

Dividend

TUI AG’s net loss for the year amounted to €98m. An corresponding amount was withdrawn from the capital reserves to balance the net loss for the year. A balanced net result for the year will be submitted to the Annual General Meeting. A resolution for a dividend payment is not requested.

Development of dividends and earnings of the TUI share

Rating

TUI’s financial strength is subject to regular ratings by the international agencies Standard & Poor’s and Moody’s. At the end of the period under review, their current long-term credit ratings for the Company were as follows:

The respective ratings and further details about the bonds traded in the capital market are provided in the chapter Financial Position.

Investor Relations

Open dialogue and transparent communication with shareholders, institutional investors, analysts and lenders have top priority for TUI. Discussions with these stakeholder groups centred on Group strategy and the development of business in the various sectors, enabling market participants to make a realistic assessment of TUI’s future development.

Regular elements of the IR programme are the annual analysts’ meeting, which is also webcast, and the conference calls offered on publication of the interim reports and on other significant topics such as the sale of Hapag-Lloyd. TUI also stays in close touch with its investors and analysts through road shows, conferences and a welter of one-on-one meetings.

Many of these encounters are attended personally by top management to answer questions raised by the capital market. Investor Relations also makes every effort to engage in contact with private investors. The Group was presented to many private investors on occasions such as stock market days and events organised by shareholder associations. Another important platform for exchanges with shareholders is the IR stall at TUI’s Annual General Meeting.

As in 2008, shareholders had the opportunity to use an internet tool on the Investor Relations website to register for the Annual General Meeting, order a guest card or instruct one of the proxies provided by the Company. This service was again well received, with approx. 25% of shareholders ordering their admission tickets via the web.