TUI AG (TUI)
TUI AG: Half-yearly Results
13-May-2020 / 07:00 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Half-Year Financial Report 1 Oct. 2019 - 31 March 2020
· COVID-19 is the greatest crisis the tourism industry and TUI has ever
faced.
· Group Underlying EBIT for the five months to February delivered a strong
result, up EUR 62m1 versus prior year excluding one-offs, driven by
Markets & Airlines
· H1 Group Underlying EBIT down EUR 512m1on prior year as a result of loss
of contribution and costs arising from COVID-19 shutdown as well as costs
from Boeing 737 Max grounding
· EUR 1.8bn German State Aid bridge loan confirmed on 27 March to increase
the existing credit agreement due to the pandemic
· FY20 guidance withdrawn on 15 March 2020 based on the current
unpredictable situation
· Global transformation to be accelerated
· TUI is a resilient business and will be stronger, much leaner and more
flexible post COVID-19
1 at constant currency rates
TUI Group - financial highlights
Q2 2020 Q2 2019 Var. H1 H1 Var. Var.
adjuste % 2020 2019 % % at
d adjust cons
ed tant
curr
ency
Turnover 2,787.9 3,101.6 - 6,63 6,676. - -
10.1 8.7 4 0.6 1.3
Underlying
EBIT (IAS
17)1
Hotels & - 1.2 65.3 n. 42.1 134.5 - -
Resorts a. 68.7 56.1
Cruises - 22.4 59.4 n. 26.5 106.4 - -
a. 75.1 77.1
Destination - 20.3 - 5.6 - - - 10.4 - -
Experiences 262. 29.4 183. 187.
5 8 0
Holiday - 44.0 119.1 n. 39.1 230.5 - -
Experiences a. 83.0 76.8
Northern - 313.5 - 121.1 - - - - -
Region 158. 424. 183.9 131. 130.
9 8 0 0
Central - 152.1 - 86.9 - - - - -
Region 75.1 183. 119.6 53.5 53.6
5
Western - 131.0 - 92.1 - - - - -
Region 42.1 194. 152.6 27.5 27.8
6
Markets & - 596.5 - 300.1 - - - - -
Airlines 98.7 802. 456.1 76.0 75.8
9
All other - 40.4 - 37.4 - - - 76.0 + +
segments 7.9 64.9 14.6 14.1
TUI Group1 - 680.9 - 218.5 - - - - -
211. 828. 301.6 174. 169.
7 7 8 7
Underlying - 539.5 - 105.7 - - -78.5 -
EBITDA (IAS 410. 559. 612.
17)2 4 4 4
Underlying - 680.1 - 218.5 - - -301.6 -
EBIT (IFRS 211. 826. 174.
16) 3 8 2
EBIT (IFRS - 700.2 - 242.1 - - -348.1 -
16)1 189. 778. 123.
2 0 5
Underlying - 409.6 - 105.7 - - -78.5 -
EBITDA 287. 298. 279.
(IFRS 16) 5 1 6
EBITDA - 418.7 - 120.0 - - - -
(IFRS 16)2 248. 228. 107.7 112.
8 9 6
Group loss - 740.5 - 176.9 - - - -
318. 845. 289.1 192.
5 8 6
Earnings EUR - 1.30 - 0.35 - - - 0.58 -
per share 271. 1.51 160.
4 3
Net capex - 226.5 - 356.6 + - - +
and 36.5 287. 651.4 55.9
investment 2
Equity % 15.6 21.2 -
ratio (31 5.6
March)3
Net - - -
financial 4,90 1,964. 149.
position 2.5 1 6
(31 March)
Employees 53,5 60,135 -
(31 March) 25 11.0
Differences may occur due to rounding.
This Half-Year Financial Report of the TUI Group was prepared for the
reporting period H1 FY20 from 1 October 2019 to 31 March 2020.
TUI Group applied IFRS 16 from 1 October 2019. Prior year figures were not
adjusted.
In the current financial year, underlying EBIT is also adjusted for the
earnings effect of IFRS 16 ('underlying EBIT (IAS 17)') as part of internal
reporting in order to facilitate year-on-year comparability. Accordingly,
adjusted EBIT (IAS 17) represents the Group performance measure within the
meaning of IFRS 8.
Since the beginning of this financial year, the items of the profit and loss
statement of the aircraft leasing companies holding the TUI Group's aircraft
and subletting them within the Group have been fully allocated to the
airlines using the respective aircraft (Northern Region, Central Region and
Western Region). In the first half of the previous year, the aircraft leasing
companies were fully included in All other segments, while in the 2019 Annual
Report, the result from intra-Group subleasing was already allocated to the
respective airlines (Northern Region, Central Region and Western Region). The
prior-year figures have been adjusted accordingly.
1 We define the EBIT in underlying EBIT as earnings before interest, income
taxes and result of the measurement of the Group's interest hedges. For
further details please see page 15.
2 EBITDA is defined as earnings before interest, income taxes, goodwill
impairment and amortisation and write-downs of other intangible assets,
depreciation and write-downs of property, plant and equipment, investments
and current assets.
3 Equity divided by balance sheet total in %, variance is given in percentage
points.
Interim Management Report
H1 FY20 Summary
· The first half of the 2020 financial year has been marked by two
developments - the first five months saw an exceptional start to our Summer
2020 programme, with January 2020 being the best ever bookings month in the
company's history. The final month of the second quarter saw an
unprecedented global travel suspension as COVID-19 escalated into a
pandemic.
· The impact on our programme and operations has been undeniably acute. For
the first time ever in the company's history, our full programme was
suspended and alongside many other corporates across the sector State Aid
was applied for. As a result of our swift action, TUI was the first
business in Germany to receive state support in these exceptional times.
· First five months (5M) underlying EBIT loss of EUR 343m1 was up EUR 62m
versus prior year excluding digital platforms operational investment,
Boeing 737 Max and effect of a one-off hedging gain, reflecting the strong
operational result and start to the year.
· H1 Group underlying EBIT loss of EUR 813m1 was down EUR 512m1 on prior
year as a result of lost contribution in March and costs arising from
COVID-19 shutdown, most notably from ineffective hedges, and additionally
replacement lease costs relating to the Boeing 737 Max. Total costs in
March incurred relating to both COVID-19 measures and Max amounted to
EUR 470m.
· The tourism industry has weathered a number of macroeconomic shocks
throughout the most recent decades, however the COVID-19 pandemic is
unquestionably the greatest crisis the industry and TUI has ever faced.
1 Underlying EBIT (IAS 17), at constant currency rates
H1 results at a glance (pro-forma IAS17 basis)
EUR million
Underlying EBIT 5M FY19 - 302
5M YTD
Holiday Experiences - 20
Markets & Airlines + 69
All other segments + 13
Underlying EBIT 5M YTD FY20 at constant currency - 240
excluding special items
Special items:
Current year: Digital platform opex - 8
Markets & Airlines Prior year: Hedging gain - 29
(Northern Region)
Markets & Airlines Current year: Boeing 737 Max - 66
grounding
Underlying EBIT 5M YTD FY20 at constant currency - 343
March 2020:
Special items:
Loss of contribution - 242
Net hedging ineffectiveness - 146
Repatriation costs - 29
Compensation costs - 14
Marella Celebration impairment - 19
Net Boeing 737 Max costs - 6
Other (COVID-19 related) - 14
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