TUI AG: Annual Financial Report - Part 1
Average rate per bed increased by 15% to 73 due to mix and normalisation in pricing as volumes recovered (FY20 Q4: 64).
TUI AG (TUI) TUI AG: Annual Financial Report - Part 1 Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. 8 December 2021 TUI GROUP
Full-year results to 30 September 2021
FY21 Q4 FINANCIAL HIGHLIGHTS
FY21 Q4 OPERATIONAL HIGHLIGHTS
LATEST DEVELOPMENTS
LIQUIDITY
STRATEGIC PRIORITIES
1 Pre-winter seasonal swing 2 Defined as gross debt (financial liabilities including lease liabilities and net pension obligation, divided by underlying EBITDA (IFRS16 basis) 3 Bookings up to 28 November 2021 compared to Winter 2018/2019 programme (undistorted by C-19), relate to all customers whether risk or non-risk and includes amendments and voucher re-bookings 4 Bookings up to 28 November 2021 compared to Summer 2019 programme (undistorted by C-19), relate to all customers whether risk or non-risk and includes amendments and voucher re-bookings 5 FY19A Underlying EBIT of €893m excluding €293m Boeing MAX cost impact
ANNUAL REPORT AND FY21 RESULTS INVESTOR & ANALYST AUDIO WEBCAST
Our year-end announcement and a full copy of our Annual Report can be found on our corporate website: http://www.tuigroup.com/en-en/investors. An audio webcast for investors and analysts will take place today at 09.30 GMT / 10.30 CET. Our year-end presentation alongside details of the webcast, will be made available via our website beforehand.
FY21 Q4 KEY FINANCIALS (IFRS16 basis)
6 Underlying EBIT has been adjusted for gains on disposal of investments, major gains and losses from the disposal of assets, major restructuring and integration expenses. The indicator is also adjusted for all effects from purchase price allocations, ancillary acquisition costs and conditional purchase price payments 7 Reported EBIT comprises earnings before net interest result, income tax and result from the measurement of interest hedges 8 FY20 is adjusted to IFRS16
FY21 RESULTS Q4 BRIDGE
GLOBAL REALIGNMENT PROGRAMME - TARGETED SAVINGS OF ~€400M P.A. BY FY23
In May 2020, we announced our Global Realignment Programme to address group-wide costs, with a target of permanently saving more than €400m per annum by FY23. In the financial year ending September 2021, ~60% of our announced targeted savings had been delivered. Savings have been most significantly delivered across the Markets & Airlines division (~85% of savings to date), which has been achieved through reductions of our retail shop estate and significant down-sizing of our German airline fleet of 39 aircraft (June 2020) by ~40%. The remaining FY21 savings were delivered across corporate head office functions and other entities, TUI Musement and Hotels & Resorts. Of our announced 8k FTE roles impacted, 7k FTEs have been agreed to date. We expect to deliver a further 25% of our targeted savings in FY22 and to deliver the full programme benefits by end of FY23. To continue to deliver our targets we expect remaining restructuring costs of ~€70m in FY22.
The continued execution of our Global Realignment Programme combined with accelerated digitalisation, expansion of our tours & activity segment, growth through asset-right financing structures, enables TUI to emerge stronger, leaner, more digitalised and more agile, and ready to exploit market recovery and growth opportunities.
NET DEBT
The year-end net debt position of €5.0bn (IFRS 16 basis) is an improvement of €1.4bn from 30 June 2021 net debt position of €6.3bn. The improvement in the final quarter reflects cash proceeds generated by the Riu real-estate disposal and cash flow generated by our operations, which were used to reduce our KfW RCF to €0.4bn, in line with our pro-forma net debt expectations.
Post balance sheet date, we concluded a capital increase of €1.1bn in early November 2021, improving our pro-forma net-debt position to €3.9bn (pre-winter seasonal swing).
CURRENT TRADING
Hotels & Resorts - 256 hotels in operation (72% of total group owed portfolio) as of end of October, reflecting the winter seasonality as some our short-haul Mediterranean destinations close for the winter months (vs. 331 hotels /92% of total group owed portfolio as of end of September). We expect the Caribbean and the Canaries to remain key winter destinations for both our Markets & Airlines and third-party customers, with our diversified and integrated model delivering clear advantages in the current environment.
Cruises - TUI Cruises will be operating 5 out of its 7 Mein Schiff fleet over the Winter 21/22 season with Hapag-Lloyd Cruises operating its full fleet of 5 ships. Winter destinations for the Mein Schiff fleet include the Caribbean, the Canaries and the Emirates. Hapag-Lloyd Cruises will be resuming its original around-the-world cruise itinerary over the winter, as well as operating in the Emirates and Northern Europe, with two of its three expedition ships returning also to Antarctica. The short-term booking environment continues, with bookings strong in September and October, however November softer in light of recent sentiment and news flow. As a result, incoming bookings for H1 2022 are slightly behind pre-C-19 comparable periods, but at significantly higher rates. Bookings for H2 2022 and 2023 are level with pre-C19 comparable periods, at higher rates.
Marella Cruises is currently operating 3 out of its 4-ship fleet for its winter programme. Explorer is sailing in the Canaries, Explorer 2 in the Western Mediterranean and Discovery in the Caribbean, with Barbados itinerary in particular well sold. The current short-term booking pattern we see for Markets & Airlines is also evident for UK Cruise, with stronger late demand for short and medium-haul itineraries. Discovery 2 is expected to re-join the fleet from March, sailing out of Palma. Summer 22 bookings remain well-positioned with strong retention levels.
TUI Musement - Excursions, tours and activities to develop in line with operations and capacity operated by Markets & Airlines for Winter 21/22, in line with winter seasonality.
Winter 2021/22 - Bookings3 at this stage are 62% of Winter 18/19 levels. Prior to recent news coverage, bookings were returning to normalised W18/19 levels, with 863k bookings taken since last update on 3 October and ASPs strong at up 15%. Q1 capacity plans already reflect a relatively lower winter volume and is well sold at 93%, however in light of recent trends, capacity will likely be modified towards the lower end of our winter capacity plans of between ~60% and ~80%. We expect the current short-term booking behaviour to continue. Easter (April) is well-booked, with bookings to date at ~90% of Winter 18/19 levels, predominately booked by the UK.
Summer 2022 - We have a very encouraging pipeline of 2.2m bookings4, which is an increase of 535k bookings since our last update on 3 October, driven by a mix of re-bookings and new bookings, reaffirming the intention to travel and continued appetite for a TUI summer holiday. The UK, which is typically the most advanced booked due to the earlier launch of its Summer programme, is already 52% sold for May with total Markets & Airlines bookings for the key August holiday period up 17%. Overall Summer bookings4 are down 3% and ASP is up strongly at 23% (versus Summer 19), reflecting the higher mix of packages. At this early stage, we believe Summer 22 volumes will recover close to normalised Summer 19 levels, supported by the stronger starting position and a travel environment underpinned by the continued success of vaccinations.
It remains difficult to forecast the further course of the pandemic and its impact on customer behaviour. In view of the uncertain environment, the Executive board believes it would not be appropriate to issue a specific forecast for the new financial year 2022 at this time. ______________________________________________________________________________________________
FY21 FY KEY FINANCIALS (IFRS16 basis)
6 Underlying EBIT has been adjusted for gains on disposal of investments, major gains and losses from the disposal of assets, major restructuring and integration expenses. The indicator is also adjusted for all effects from purchase price allocations, ancillary acquisition costs and conditional purchase price payments. 7 Reported EBIT comprises earnings before net interest result, income tax and result from the measurement of interest hedges 8 FY20 is adjusted to IFRS16 9 For reconciliation of loss/earnings before tax to underlying EBIT, please refer to page 58 of the Annual Report 10 For calculation of underlying loss/earnings per share please refer to page 34 of the Annual Report
FY21 FY RESULTS BRIDGE
ANALYST & INVESTOR ENQUIRIES
|
ISIN: | DE000TUAG000 |
Category Code: | ACS |
TIDM: | TUI |
LEI Code: | 529900SL2WSPV293B552 |
OAM Categories: | 1.1. Annual financial and audit reports |
Sequence No.: | 128507 |
EQS News ID: | 1254946 |
End of Announcement | EQS News Service |
|