FY23 Q4/12M RESULTS –

STRATEGY UPDATE
6 December 2023
TUI is becoming a growing, scalable and global tourism business with
ambitious profitability targets

Global Travel & Tourism market set for growth above GDP1

TUI of tomorrow will unlock significant value by rollout of the global platform thus capturing the
customer lifetime value

Strong progress with our sustainability initiatives, on track to deliver 2030 SBTi targets

Ambitious Und. EBIT growth targets defined: FY24 at least +25%; mid-term CAGR c. 7-10%

Together we deliver “EXCELLENCE IN LEISURE EXPERIENCES”

2 1 Source Euromonitor; Refer to page 3

Travel & Tourism market set for growth above GDP

GLOBAL INBOUND ARRIVALS (# trips, billions)

Growth
5% 1.8

1.5 1.5

1.3
Recovery

Covid
impact

2019 2023 2028

3 Source: Inbound arrivals per Euromonitor Travel, October 2023; Mid-term real GDP forecast per IMF
TUI well positioned to capture market growth opportunities with
consumers continuing to prioritise holidays
Market Growth1 Travel is a Mega Trend
HOTELS
>5% Favourable demographic supported by high
disposable income and longevity

CRUISE Experiences – the new lifestyle & global trend in

>5% travel

TOURS & According to a recent external consumer survey:

ACTIVITIES >5%
Consumers expected to continue prioritising
holidays abroad ahead of other forms of
discretionary spend
PACKAGE &
COMPONENTS
Dynamic Pax. Higher share of typical package holiday
& Components
>5% customers anticipated to go on a package
holiday vs. last year
Wholesale Pax c. 1%
4 1 CAGR based on TUI estimates, compared to 5% CAGR of global inbound arrivals per Euromonitor (cf. p. 3)
The TUI of tomorrow will unlock significant value

TUI of today Operational excellence & transformation TUI of tomorrow

Large diversified customer 1 More market share,

base & strong Wholesale pax Grow component products sales & new customers profitable growth
position & more resilience

Unique & differentiated Further roll-out via asset-right growth

2
Drive margin & retention
product

Consolidating several Rolling out common platforms in core markets

3 Deliver synergies
platforms & global roll-out

Growth via the App driving unpaid traffic

4
Digitally enabled Reduce distribution cost

One Central Customer

Increase share of wallet – Up & Cross-sell
5 Capture Customer
Eco-System Lifetime Value

5
More market share with new products tapping new
customer segments
NEW PRODUCTS NEW CUSTOMERS

• Dynamic Packaging • Tours • Smart Tanners

• Travellistas
Building • Accomodation-Only • Ancillaries • Home & Aways
Blocks • Energised Adventurers
• Flight-Only • Car Rentals • Senior Service

➢ Leveraging our strong market positions ➢ Grow Wholesale Package by c. 1% CAGR in line with market
Growth ➢ Driving efficiencies & margins through ➢ Grow Dynamic Packaging by low double-digit CAGR
target
scaling platforms ➢ Grow Share of App Sales by mid double-digit CAGR

6
Dynamic Packaging growing in popularity with our customers

What is Dynamic Packaging? Dynamic package pax (in m)

Mid-term
At least one product of the package
holiday dynamically sourced:
low double-digit
CAGR
1 Full Dynamic =
Flight + Accommodation
dynamically sourced 2.5
or
2 Dynamic Flight =
1.6
Flight dynamically sourced
or
3 Dynamic Accommodation =
Accommodation dynamically sourced
FY19 FY23
7
Our unique and differentiated product portfolio drives margin
& customer retention…
HOTELS & RESORTS CRUISES TUI MUSEMENT

360 Hotels1 16 Cruise Ships >45k Experiences

Leading provider of experiences,
Strong Brands: Strong Brands:
transfers & tours

16% ROIC 20% ROIC 31% Uptake Rate

(RIUSA II 19% ROIC2)

> 5% market growth3

8 FY23 figures | 1 FY23 number of Group hotels excludes 64 third party concept hotels | 2 On 100% basis incl. Goodwill | 3 CAGR based on TUI estimates, compared to 5% CAGR of global inbound arrivals per Euromonitor (cf. p. 3)
… and we are accelerating further growth via asset-right strategy

HOTELS & RESORTS CRUISES TUI MUSEMENT

• Value investments • JV growth • Drive customer growth

• Asset-light growth, through • Expand source market • Growth through direct channels &
Building
• RIU JV distribution / broader marketing cross and upsell
Blocks
• Hotel Fund position • More own differentiated products
• Hotel Platform

Growth ➢ Expand experiences sold

➢ Pipeline of 41 hotels1 ➢ 3 planned new ships
pipeline by low double-digit CAGR

9 1 incl. Concepts
 Strong Customer Satisfaction across
the entire customer journey

FY24 YTD
vs. PY • Strong NPS with CSAT improving
across all consumer touchpoints
driven by our continued focus on
NPS 46 to 53 quality

• Av. customer age 47 years for

M&A segment & higher share of
CSAT 8.4 to 8.5 customers in middle/high income
brackets

Retention Approx. • High share of couples & families

who continue to prioritise holidays
Rate1 40%
Brand Customer Customer
Experience Needs Touchpoints

10 1 Two-year retention
From many market platforms to ONE Global Platform used
by all markets
From many market-specific To one platform used
platforms by all markets Benefits:
• Direct connection to hotel
and flight providers –
further improve availability
& margin
Production & Sourcing One Production & Sourcing
• Enables new product
combinations, new
customers, and dynamic
packaging
• Cross-market inventory
optimisation
• Single Selling and App
Selling Platform by Market One Selling Platform reduces
distribution costs
B2B
B2B B2B
B2B • Connections to improve
breadth and reduce costs
B2B B2C
B2B B2C
11
Central Customer Ecosystem to drive group synergies
Historically customer data held
New Central Customer Database optimises Customer Lifetime Value
separately with no customer data sharing

Hotel & Resorts

Cross- and upsell

campaigns
Cruises

✓ Leverage synergies across segments

✓ Acquire customer once via single customer account
✓ Central Customer Database
TUI Musement
✓ Cross- & Upselling
✓ Loyalty programme
✓ Reduced distribution costs
Markets & Airlines ✓ Enhance web conversion & CRM

12
Growth via the App drives unpaid traffic,
delivering distribution cost savings in the mid-term

Enhance direct app selling

2% 5% Share of App Sales

Mid Mid-term
50% 2019 48% 50% 2023 45% term mid-double digit
CAGR

Retail Online App

13 Share of Online and App % on a booked basis

One Central Customer Ecosystem accelerates cross- &
upselling to capture the Customer Lifetime Value

+ + +
&

Example: Example:
Musement customer US + + Package customer UK
TUI
PRODUCT PORTFOLIO
Example: Example:
Acco-Only customer NL + CENTRAL DATABASE + Rental car customer DE

Cross-/Upselling
Example: Example:
Flight-Only customer BE Cruise customer AT

14
Building the TUI of tomorrow – more agile, more cost-efficient with higher
speed to market…
Our Transformation Roadmap

• Commercialisation of growth
measures (new products, new • Global roll-out of common
customers) platforms
• Shaping common platform

FY23 FY24 FY25 FY26+

• Business ramp-up
• Definition of growth measures
• Roll-out of common platforms in
• Start of growth measures TUI core markets
implementation
• 2030 SBTI validation

… to capture the Customer Lifetime Value

15
TUI integrated business model will unlock significant value

MORE CUSTOMERS SHARE OF WALLET DISTRIBUTION COST

CENTRAL CUSTOMER ECOSYSTEM

BRAND CRM

Hotels, Cruises,
Packages, Experiences,
€
SELLING PL
Components, Transfers &
LOYALTY
E A
N Ancillaries Customer Lifetime Tours
O

TF

Value
APP /

ORM

16
 Q4 Sustainability update

2030 targets approved by SBTi

• 24% reduction airline1
• 27.5% reduction cruise2
• 46.2% reduction TUI Hotels & Resorts2

• Markets & Airlines: Additional SAF MOU signed with INERATEC and first voluntary
SAF uptake during Summer 23
• Hotels & Resorts: First Zero CO2 hotel TUI Blue Montafon delivered – plan to reduce
emission from own hotels to Zero by 2030
• Cruises:
• First use of bio-fuel blend on Mein Schiff 4 & Hanseatic Inspiration – blended
biofuel from waste sources that reduces CO2 by up to 90% compared to fossil fuels
• Five TUI Cruises vessels received green shore power during the summer season
• TUI Musement: More than 1,600 Experiences now meet strict sustainability criteria of
the Global Sustainability Tourism Council
• TUI Care foundation: 2.5m trees planted in TUI Forests across the world – 5m trees
planted by 2025

17 1 CO2e per revenue passenger kilometre | 2 Absolute CO2e

ANALYST AND INVESTOR ENQUIRIES FINANCIAL CALENDAR
Nicola Gehrt, Group Director Investor Relations Tel: +49 (0)511 566 1435 13 February 2024 FY24 Q1 Results
Adrian Bell, Senior Investor Relations Manager Tel: +49 (0)511 566 2332 13 February 2024 Annual General Meeting 2024
James Trimble, Investor Relations Manager Tel: +44 (0)1582 315 293 15 May 2024 FY24 Half-Year Results
Stefan Keese, Investor Relations Manager Tel: +49 (0)511 566 1387 14 August 2024 FY24 Q3 Results
Anika Heske, Junior Investor Relations Manager Tel: +49 (0)511 566-1425 11 December 2024 FY24 Annual Report