TUI AG and TUI Travel PLC have merged to form the world's number one leisure travel company. Read more about the new TUI Group at www.tuigroup.com

TUI AG ahead of plan proposes a dividend of 15 cents per share for financial year 2012/13

Friedrich Joussen: “We are fully on track with oneTUI”

Hanover, 18 December 2013

The TUI Group closes the financial year 2012/13 with a good operating result, despite the one-off expenses for the oneTUI programme, and is planning to resume dividend payments for the first time since 2007, with a payout of 0.15 euros per share. The oneTUI business excellence programme, initiated by TUI AG CEO Friedrich Joussen in May 2013, is progressing well.

Friedrich Joussen: “We deliver on our promises: We will create value for our shareholders, turn TUI into an attractive investment and offer secure jobs for our employees. Our good operating results and virtually debt-free balance sheet enable us to pay a dividend to our shareholders earlier than promised.”

In the framework of his 100-day review, Joussen had announced that financial year 2012/13 was going to be a year of transition on the path towards resuming dividend payments. “The restructuring measures associated with oneTUI have created one-off charges in our accounts. However, the measures of my strategy programme have already taken effect. I am therefore very confident that we will achieve the goals we have set ourselves of generating a net cash flow of around 100 million euros at TUI AG and underlying Group EBITA of around 1 billion euros in financial year 2014/15,” said Joussen. The one-off charges resulting from oneTUI included the known write-down on the Castelfalfi project in Tuscany, provisions for Hapag-Lloyd Kreuzfahrten and expenses for the social plan concluded in the summer of 2013 for the restructuring of the Group holding (Lean Holding).
 
In the period under review, Europe’s leading tourism group generated a slight increase in turnover to 18.5 billion euros (previous year 18.3 billion euros). The operating result (underlying EBITA) grew by 2 per cent to 762 million euros (previous year 746 million euros). Despite the known one-off charges from the oneTUI programme, the Group result before minorities rose by 31 per cent to 186 million euros (previous year 142 million euros). Adjusted for the one-off effects associated with oneTUI in the transition year, earnings per share totalled as much as +0.18 euros. Even on a non-adjusted basis, earnings per share rose from -0.16 euros to -0.08 euros. This development shows that oneTUI is taking effect. The Group’s net debt was further reduced: It totalled 68 million euros as at the balance sheet date (previous year 178 million euros).

TUI provides a positive outlook for the current financial year 2013/14. The Executive Board expects slight turnover growth of 2 to 4 per cent, driven in particular by the expected increase in customer numbers in TUI Travel’s Mainstream Business. The operating result is expected to rise by 6 to 12 per cent in total as a result of an improved business performance across all Sectors. Due to lower one-off effects, which decreased as expected, and improved operating results, we expect reported earnings (EBITA) to grow by 16 to 23 per cent.

TUI Travel – Turnover of 17.8 billion euros /Operating result of 641 million euros

In the period under review, TUI Travel posted turnover growth of 0.6 per cent to 17.8 billion euros (previous year 17.7 billion euros); adjusted for foreign exchange effects, turnover rose by 2 per cent. While customer numbers declined by around 3 per cent, the turnover growth was driven by a higher proportion of differentiated product. The operating result improved by 0.5 per cent to 641 million euros (previous year 637 million euros) despite negative foreign exchange effects. On a constant currency basis, the result would have risen by 8 per cent (to 689 million euros). This was mainly attributable to the sound business performance in the UK, Germany and the Nordic countries. The operating result also benefited from the cost savings generated in the framework of the business improvement programme.

Hotels & Resorts – Higher operating result

TUI Hotels & Resorts posted total turnover of 826.6 million euros, matching the prior year’s level (826.0 million euros). Due to overall sound demand, both occupancy and average revenues per bed improved on slightly reduced capacity. The operating result of TUI Hotels & Resorts grew by 10 per cent to 197 million euros (previous year 179 million euros). The growth was driven by the sound operating performance of the hotel brands Riu and Robinson and the disposal gain from the sale of a Riu hotel.

Cruises – Positive development of TUI Cruises / Restructuring of Hapag-Lloyd initiated

The Cruises Sector comprises two brands: Hapag-Lloyd Kreuzfahrten and TUI Cruises (measured at equity, turnover not recognised). The turnover of Hapag-Lloyd Kreuzfahrten grew by 13 per cent to 261 million euros (previous year 231 million euros). This was mainly attributable to the expansion of the fleet to include Europa 2 in May 2013. The Cruises Sector reported a considerable decline in its operating result to -13.9 million euros (previous year +3 million euros). While TUI Cruises continued its very positive performance, Hapag-Lloyd Kreuzfahrten posted lower earnings due to the start-up costs for the market launch of the new Europa 2 and damage caused by a fire on board the Hanseatic during a dry-dock stay. Due to the commissioning of Europa 2, the Hapag-Lloyd ships recorded a load factor of 70.6 per cent, down on the prior year’s level of 77.4 per cent. As a result of the expansion of the fleet, the average rate rose from 399 euros per passenger per day to 420 euros. TUI Cruises again increased its occupancy to 101.8 per cent (previous year 100.9 per cent). The average rate per passenger per day was 157 euros, up on the prior year’s level of 151 euros. TUI Cruises will continue its growth path in the market segment of premium cruises with the commissioning of Mein Schiff 3 (May 2014) and Mein Schiff 4 (early summer 2015).

Development of turnover

€ million 2012/13 2011/12 Var. %
Tourism 18,460.1 18,297.2 + 0.9
   TUI Travel 17,796.0 17,681.5 + 0.6
   TUI Hotels & Resorts 403.1 384.7 + 4.8
   Cruises 261.0 231.0 + 13.0
Central Operations 17.4 33.1 - 47.4
Group 18,477.5 18,330.3 + 0.8

Development of Underlying EBITA

€ million 2012/13 2011/12 Var. %
Tourism 823.8 819.0 + 0.6
   TUI Travel 640.5 637.4 + 0.5
   TUI Hotels & Resorts 197.2 178.6 + 10.4
   Cruises - 13.9 3.0 n/a
Central Operations - 61.9 - 73.3 + 15.6
Group 761.9 745.7 + 2.2

Development of EBITA

€ million 2012/13 2011/12 Var. %
Tourism 673.0 619.3 + 8.7
   TUI Travel 532.8 441.0 + 20.8
   TUI Hotels & Resorts 170.6 177.5 - 3.9
   Cruises - 30.4 0.8 n/a
Central Operations - 78.2 - 80.5 + 2.9
Group 594.8 538.8 + 10.4

Income Statement of the TUI Group

€ million   2012/13 2011/12 Var. %
Turnover   18,477.5 18,330.3 + 0.8
Cost of sales   16,436.3 16,285.8 + 0.9
Gross profit   2,041.2 2,044.5 - 0.2
Administrative expenses   1,557.3 1,555.7 + 0.1
Other income/other expenses   + 26.3 + 71.1 - 63.0
Impairment of goodwill   8.3 13.8 - 39.9
Financial result   - 235.7 - 284.7 + 17.2
   Financial income   124.0 159.9 - 22.5
   Financial expenses   359.7 444.6 - 19.1
Share of result of joint ventures and associates   59.3 - 8.7 n/a
Earnings before income taxes   325.5 252.7 + 28.8
         
Reconciliation to underlying earnings:        
Earnings before income taxes   325.5 252.7 + 28.8
plus: Loss on Container Shipping measured at equity   22.3 49.0 - 54.5
less: Gains on reduction and measurement of financial instruments with Container Shipping   - 61.6 n/a
plus: Net interest expense and expense from measurement of interest hedges   238.7 284.9 - 16.2
plus: Impairment of goodwill   8.3 13.8 - 39.9
EBITA   594.8 538.8 + 10.4
Adjustments        
   plus: Losses from disposals   + 1.4 + 1.8  
   plus: Restructuring expense   + 62.3 + 63.2  
   plus: Expense from purchase price allocation   + 75.0 + 75.1  
   plus: Expense from other one-off items   + 28.4 + 66.8  
Underlying EBITA   761.9 745.7 + 2.2
         
Earnings before income taxes   325.5 252.7 + 28.8
Income taxes   139.0 110.8 + 25.5
Group profit for the year   186.5 141.9 + 31.4
Group profit for the year attributable to shareholders of TUI AG   4.3 - 15.1 n/a
Group profit for the year attributable to non-controlling interest   182.2 157.0 + 16.1
Earning per share        
Basic and diluted earnings per share - 0.08 - 0.16 + 50.0

Financial Position of the TUI Group - Assets

€ million 30 Sep 2013 30 Sep 2012
Assets    
Goodwill 2,976.4 3,046.4
Other intangible assets 866.2 890.9
Investment property 58.0 54.9
Property, plant and equipment 2,682.0 2,651.3
Investments in joint ventures and associates 1,386.4 1,394.0
Financial assets available for sale 71.5 75.5
Trade receivables and other assets 342.8 358.1
Derivative financial instruments 37.9 28.4
Deferred tax asset 224.6 168.7
Non-current assets 8,645.8 8,668.2
     
Inventories 115.4 113.9
Trade receivables and other assets 1,876.8 1,956.0
Derivative financial instruments 49.1 131.5
Current tax asset 53.9 48.1
Cash and cash equivalents 2,701.7 2,278.4
Assets held for sale 11.6 16.5
Current assets 4,808.5 4,544.4
  13,454.3 13,212.6

Financial Position of the TUI Group - Equity & Liabilities

€ million 30 Sep 2013 30 Sep 2012
Equity and liabilities    
Subscribed capital 645.2 644.9
Capital reserves 957.7 957.4
Revenue reserves 151.3 185.2
Hybrid capital 294.8 294.8
Equity before non-controlling interest 2,049.0 2,082.3
Non-controlling interest - 19.6 - 15.2
Equity 2,029.4 2,067.1
     
Pension provisions and similar obligations 1,102.2 1,146.9
Other provisions 575.0 537.5
Non-current provisions 1,677.2 1,684.4
Financial liabilities 1,834.1 1,810.5
Derivative financial instruments 30.7 31.8
Current tax liabilities 107.8 108.3
Deferred tax liabilities 76.6 69.5
Other liabilities 98.4 68.2
Non-current liabilities 2,147.6 2,088.3
Non-current provisions and liabilities 3,824.8 3,772.7
     
Pension provisions and similar obligations 33.8 39.7
Other provisions 449.2 509.8
Current provisions 483.0 549.5
Financial liabilities 935.5 646.1
Trade payables 3,049.2 3,260.0
Derivative financial instruments 178.8 163.1
Current tax liabilities 134.0 96.5
Other liabilities 2,819.6 2,657.6
Current liabilities 7,117.1 6,823.3
Current provisions and liabilities 7,600.1 7,372.8
  13,454.3 13,212.6
Contact

Björn Beroleit
Head of Investor Relations
phone +49 (0)511 566-1310


Nicola Gehrt
Senior Manager Investor Relations
phone +49 (0)511 566-1435