TUI Group Investor Presentation · Significant increase in Group Turnover to €6.3 bn (Q2 07: €5.2 bn, +20.3%) especially due to consolidation of First Choice Holidays Underlying

TUI AG | Investor Relations | Seite 1

Aktiengesellschaft

TUI GroupInvestor Presentation

1. WestLB Mobility DayFrankfurt, 02 September 2008


AktiengesellschaftAgenda

I. Strategy

II. Tourism

III. Shipping

IV. Financials 2007 & Q2 2008

V. Outlook 2008


Aktiengesellschaft

Tourism Shipping

TUI - current group structure

Turnover ~ €18 bn Turnover ~ €6 bn


Aktiengesellschaft

Strategy - Separation of container shipping division

All options are being examined like: spin off, merger or divestment as a single entity taking into account the interests of our shareholders, bondholders and employees

Trade sale as first option of separation progressing according to plan:- Internal project team installed ✔- External advisors mandated ✔- Information memorandum completed ✔- Approach of interested parties ✔- Indicative proposals received ✔- Due diligence in progress- Negotiations with final bidder(s)- Signing / Closing

Targeted impact of a trade sale on TUI Group financials- Significant reduction of net debt - Enhanced financial flexibility for further investments in the tourism division- Appropriate consideration of shareholders


AktiengesellschaftTourism


Aktiengesellschaft

TourismTUI Travel - Overview

Merger of TUI Tourism activities with First Choice Holidays businesses

Europe’s leading international leisure travel company

Over 30 million customers from over 20 source markets

Circa 160 aircraft

Circa 4,000 retail shops in Continental Europe, UK & Ireland

48,000 colleagues

Widest range of leisure travel experiences available


Aktiengesellschaft

TourismTUI Travel - New structure

MainstreamSector

Classic TO business /market leadership

Online Destination

Services Sector

Online accommodation / Destination services

SpecialistsSector

Exclusive products / strong local brands

ActivitySector

Lifestyle travel products / market-leading brands

Turnover~€16,100 m

Turnover~€1.500 m

Turnover~€650 m

Turnover~€700 m

http://www.tuitravelplc.com/tuitravel/


Aktiengesellschaft

TourismTUI Travel - Business model

Choice of Product Flexibility for the Customer

CONTENT

CUSTOMER

Self SelectionIndividual Components

Self SelectionDynamic Packaging

Traditional Packages

Exclusive / Differentiated Holidays

Tailor Made Holidays

Online

Retail

Call Centre

Providing choice and flexibility for the customer

Flights

Bed-bank

Car hire, transfers, excursions

Differentiated

Exclusive

Added Value

Expertise

Scarce Assets

Component

Specialist


Aktiengesellschaft

TourismTUI Travel - Pillars of profitable growth

Product & Content Differentiated and specialist product

Levers

Business Model & People

Synergy deliveryEfficiency improvementsCapacity managementLeadership & structure

Distribution & BrandsDirect distributionBrand positioning

Growth & Capital Allocation

Acquisition programmeOrganic growthROI focusCash management

Delivering sustainable

margin growth

Strategic Imperatives


Aktiengesellschaft

Tourism TUI Travel - Value Creation Opportunities

Intensive Care

RecoveryStage

CriticalStage

Healthy Stage

ThrivingStage

Loss making < 1%Operating

Margin1% – 3% 3% – 5% > 5%

RevenueContribution1,2

UnderlyingOperating Profit1,2

-€66m(-£48m)

€1.8bn(£1.3bn)

€4.3bn(£3.1bn)

€5.6bn(£4.1bn)

€3.6bn(£2.6bn) €2.3bn

(£1.7bn)

€32m(£23m)

€85m(£62m)

€130m(£95m)

€212m(£155m)

€11bn1 (£8bn) of Under-Performing Revenue

1 based on year end 2007 GBP / € exchange rate of: 0.73 2 Proforma 12 months to 30 September 2007


Aktiengesellschaft

TourismTUI Travel – Merger related synergies

32%

9%

9%

33%

17%

Airline Restructuring & IT Distribution Tour Operations Group & Global

Synergy mix

Full synergy benefit of approximately €200 m* (₤150 m) expected until 2010Cost of expected synergies at around €250 m* (₤180 m)

* based on year end 2007 GBP / € exchange rate of: 0.73


Aktiengesellschaft

TourismTUI Hotels & Resorts


Aktiengesellschaft

TourismTUI Hotels & Resorts - At a glance

No 1 leisure hotelier in Europe with

237 hotels and 145,000 beds

Most hotel companies with local

partners

Focus on four star category (approx.

60%)

High occupancy rates (~80%) through

access to TUI Travel customers and

direct distribution


Aktiengesellschaft

TourismTUI Hotels & Resorts - Overview

Group-controlled hotel beds by regions

Eastern Mediterranean

19%

Western Mediterranean

36%

North Africa / Egypt18%

Caribbean18%

Other9%

3 Stars16%

5 Stars21%

4 Stars63%

Hotel categories

Selective organic growth through

new hotel projects with 16

scheduled openings in 2008


Aktiengesellschaft

TourismCruises


Aktiengesellschaft

TourismTUI Cruises

Hapag-Lloyd Cruises operates 4 ships in the German premium and luxury segment

Utilisation of all ships was 78.6% in 2007, up by +5.1p.p. y-o-y

Joint Venture (50/50) with Royal Caribbean Cruises Ltd.

Permission received from European antitrust regulators in March 2008

Plan on track to start business in Summer 2009


AktiengesellschaftShipping


Aktiengesellschaft

Global volume development container shipping(in TEU mill )

ShippingContinuously strong market volume growth

Source: Global Insight, March 2008

CAGR 10% CAGR 7%

74

86

96

105

114121

130

140

149

158

167

2003 2004 2005 2006 2007 2008e 2009e 2010e 2011e 2012e 2013e


Aktiengesellschaft

ShippingVolume development of main trade lanes

World Container Trade 2008e (TEU m)

13.6 (+8.0%)

Latin America

North America Europe

Africa

Far East

Middle East /Indian Ocean

Australia/New Zealand

3.7 (+5.1%)

5.6 (+6.8%)2.9 (+4.2%*)

6.6 (+6.4%)

1.3 (+5.1%)

2.9 (+5.6%)

Intra Far East

Source: Global Insight, March 08

16.2 (+7.7%)

25.4 (+7.5%)

*Compound Annual Growth Rate

(CAGR) 2008-2011 forecast in%

is shown in brackets

Dominant legNon-dominant leg


Aktiengesellschaft

ShippingInto the top five through expansion

Capacities20‘ standard container ('000 TEU)

CMA-CGMMSCMaersk

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

Evergreen Hapag-Lloyd

1,764

NOL/APLCSCLCOSCO NYK OOCL

1,185

840

619493

406 398 382 376 347

Source: Transmodal, January 2008; Company data


Aktiengesellschaft

Shipping Hapag-Lloyd – Member of the Grand Alliance

Scope of cooperationAlliances and Global Players

Maersk15%

CHKY11%

Grand Alliance11%

MSC10%

New World7%

CMA-CGM7%

Evergreen5%

Other34%

Alliances offer joint services and share

capacities

Member’s competitive advantage:

development of new markets

cost reduction

joint investments

share of economical risks

Hapag-Lloyd is a member of the

Grand Alliance, the leading integrated

consortia with a 11% capacity share of the

global fleet

Source: Transmodal, January 2008


Aktiengesellschaft

ShippingHapag-Lloyd at a glance

Top 5 global container shipping company

through acquisition of CP Ships

141 container vessels with a total capacity

of 493,000 TEU

Revenues in 2007: € 6.0 bn

Volume in 2007: 5.5 mill TEU

Share of volume for 2007 (mill TEU):

Far East26%

Australasia13%

Latin America

16%

Atlantic27%

Trans-Pacific19%


Aktiengesellschaft

ShippingOverview global Hapag-Lloyd liner services

Total number of services: 79

16 Transatlantic

10 Latin America

13 Transpacific

23 Europe-Far East

17 Australasia

as of: 31.03.2008


Aktiengesellschaft

Shipping transport chain Highly efficient integrated IT systems

Empty Container (Return)

Factory/ Distribution

Centre

Inland Transport to Consignee

InboundPort

Ocean LegInland Transport

to PortOutbound PortFactory

Empty Container (Delivery)

Source: Company information

Fully integrated throughout the global organisation of more than 260 locations

Covers the entire transport chain (“only one transport file per shipment”)

Infrastructure supports all services throughout the value chain to offer customers efficient and reliable solutions

Developed in-house over past years with significant investment

an industry-leading IT system...

Only one Transport File per Shipment

Provides network to facilitate decentralised, global blueprint organisation

Real-time availability of information worldwide

Provides and combines operational and financial data

Contribution-driven, cost-effective business steering model

Improves accuracy and control of transport and documentation

...with significant efficiency benefits

Hapag-Lloyd operates


Aktiengesellschaft

ShippingProductivity development

693

754

856

873

751

916

471

0

100

200

300

400

500

600

700

800

900

1.000

2002 2003 2004 2005 2006 2007

HL Land personnel CP Ships

(82%)

(95%)(100%)

- TEU/employees -

Figures as of year end



I. Strategy

II. Tourism

III. Shipping


V. Outlook 2008


AktiengesellschaftFinancials

Financial Year 2007


AktiengesellschaftP&L highlights 2007

21.920.5

0

4

8

12

16

20

24

Turnover ReportedEBITA

175

-890-400

-200

0

200

Group profit after minorities

in € m in € m

2006 2007

in € bn

548

419

616

201

0

100

200

300

400

500

600

700

+ 173.0%

+ 47.2%

2006 2007 2006 2007 2006 2007

Goodwill impairment

-1,000

+ 6.6%

UnderlyingEBITA


AktiengesellschaftTurnover and Earnings 2007

€ m 2007 2006 % 2007 2006 %

Tourism 15,638.5 14,085.1 + 11.0 448.9 394.7 + 13.7

TUI Travel 15,258.7 13,676.0 + 11.6 304.4 258.6 + 17.7

TUI Hotels & Resorts 379.8 346.7 + 9.5 146.1 123.2 + 18.6

Other - 62.4 - - 1.6 12.9 -

Shipping 6,201.6 6,254.0 - 0.8 196.7 89.2 + 120.5

Container shipping 6,018.4 6,093.7 - 1.2 182.5 81.3 + 124.5

Cruises 183.2 160.3 + 14.3 14.2 7.9 + 79.7

Central operations 25.5 175.5 - 85.5 - 29.5 - 65.4 + 54.9

Continuing operations 21,865.6 20,514.6 + 6.6 616.1 418.5 + 47.2

Discontinuing operations - 401.0 - - 29.8 -

Group 21,865.6 20,915.6 + 4.5 616.1 448.3 + 37.4

Turnover Underlying EBITA


AktiengesellschaftKey figures of the TUI Group (P&L)

€ m 2007 2006 %

EBITDAR 2,534.3 2,093.5 + 21.1Rental expenses 1,211.6 1,156.1 + 4.8

EBITDA 1,322.7 937.4 + 41.1Depreciation 774.5 736.6 + 5.1

EBITA 548.2 200.8 + 173.0Impairment of goodwill 53.7 712.8 - 92.5

EBIT 494.5 - 512.0 n.m.Interest result - 257.4 - 219.1 + 17.5

EBT 237.1 - 731.1 n.m.Income taxes 0.8 129.4 n.m.

Result from continuing operations 236.3 - 860.5 n.m.Result from discontinuing operations - 17.1 -

Group profit 236.3 - 843.4 n.m.Minority interests 61.2 46.9 + 30.5

Group profit after minorities 175.1 - 890.3 n.m.Number of shares (average) mill 251,0 250,7

EPS € + 0.61 - 3.65


AktiengesellschaftFinancials

2nd Quarter 2008


AktiengesellschaftHighlights 2nd quarter 2008

Significant increase in Group Turnover to €6.3 bn (Q2 07: €5.2 bn, +20.3%) especially due to consolidation of First Choice Holidays

Underlying Group EBITA strongly improved to €216 m (Q2 07: €35 m)

Underlying EBITA of continuing operations (Tourism: TUI Travel, TUI Hotels & Resorts, Cruises and Central operations) raises to €101 m (Q2 07: €30 m)

Underlying EBITA of discontinued operation (Container Shipping) with substantial performance improvement at €115 m (Q2 07: €5 m)

Reported Group EBITA due to one-off expenses at €-42 m (Q2 07: €3 m)

Current trading for tourism Summer 2008 strong and first encouraging indications for Winter 2008/2009 and Summer 2009 (UK only)

Shipping freight rates well above last year; further development might be influenced through the effect of the financial crisis on world trade


AktiengesellschaftTurnover and Earnings Q2 / H1 2008

€ m Q2 2008 Q2 2007 % H1 2008 H1 2007 %

Tourism Turnover 4,721.6 3,680.3 + 28.3 8,344.9 6.319.7 + 32.0 Underlying EBITA 86 45 + 91.1 - 135 - 180 + 25.0Central operations Turnover 18.6 44.0 - 57.7 31.8 75.0 - 57.6 Underlying EBITA 15 - 15 n.m. 22 - 2 n.m.

Continuing operations Turnover 4,740.2 3,724.3 + 27.3 8,376.7 6,394.7 + 31.0 Underlying EBITA 101 30 n.m. - 113 - 182 + 37.9Discontinued operation Container shipping Turnover 1,510.1 1,472.5 + 2.6 2,961.3 2,896.2 + 2.2 Underlying EBITA 115 5 n.m. 133 - 31 n.m.Group Turnover 6,250.3 5,196.8 + 20.3 11.338.0 9,290.9 + 22.0 Underlying EBITA 216 35 n.m. 20 - 213 n.m.


AktiengesellschaftKey figures of the TUI Group (P&L*)

€ m Q2 2008 Q2 2007 H1 2008 H1 2007

EBITA* -131.1 - 10.1 - 429.1 - 231.8Impairment of goodwill 76.1 - 76.1 -

EBIT - 207.2 - 10.1 - 505.2 - 231.8Interest result - 93.7 - 54.8 - 176.6 - 106.5

EBT - 300.9 - 64.9 - 681.8 - 338.3Income taxes - 23.9 - 139.9 - 138.2 - 205.9

Result from continuing ops. - 277.0 75.0 - 543.6 - 132.4Result from discontinued ops. 151.7 - 4.5 140.2 97.9Group profit - 125.3 70.5 - 403.4 - 34.5Minority interests - 69.7 11.6 -181.0 23.1Group profit after minorities - 55.6 58.9 -222.4 - 57.6Number of shares (average) m 251.0 250.7 251.0 250.7

EPS € - 0.24 + 0.19 - 0.93 - 0.28

*continuing operations (reported EBITA)


Aktiengesellschaft

Balance sheetNet financial debt position

€ bn 06/2008 12/2007

Financial liabilities 5.0 5.5

non-current 3.9 4.7

current 1.1 0.8

Cash 2.6 1.6

Net debt 2.5 3.9

Net debt assets held for sale 0.6 -

Net debt (incl. assets held for sale) 3.1 3.9

Considerable reduction of net financial debt position to €3.1 bn particular from the seasonality of the tourism business and redemption of financial liabilities by TUI Travel

Reclassification of €0.6 bn net debt under IFRS 5 (Hapag-Lloyd, TUIfly)



I. Strategy

II. Tourism

III. Shipping


V. Outlook 2008


Aktiengesellschaft

TourismBooking update

y-o-y variation% ASP Sales Customers Capacity ASP Sales Customers Capacity

Short-haul + 21 - 3 - 20 - 24 + 26 - 8 - 27 - 37

Medium-haul + 14 + 15 + 1 - 4 + 15 + 9 - 5 - 15

Long-haul + 3 + 8 + 5 + 2 + 5 + 1 - 4 - 12

UK + 15 + 5 - 9 - 13 + 13 + 2 - 10 - 21

TUI Nordic + 3 + 3 flat + 3 + 5 - 3 - 8 flat

Northern Europe + 14 + 5 - 8 -11 + 11 + 2 - 8 - 15

TUI Germany + 5 + 1 - 4

TUI Austria + 4 - 17 - 20

TUI Switzerland + 1 + 9 + 8

Central Europe + 4 flat - 4 -12

TUI France + 8 - 3 - 10

TUI Belgium + 4 + 8 + 4

TUI Netherlands + 4 + 7 + 3

Western Europe + 5 + 3 - 2 + 1

Specialist + 6 + 5 - 1 + 2 + 2 flat

Activity n/a + 1 n/a n/a + 11 n/a

ODS + 2 + 23 + 21

Summer 2008 Winter 2008/09

Based on trading statistics up to 3 August 2008


AktiengesellschaftOutlook Tourism 2008

European travel market expected to grow 3-4%*

Turnover to increase due to first time consolidation of First Choice

For the Tourism division underlying EBITA is expected to rise significantly

Drivers for underlying EBITA improvement of TUI Travel: - Full year consolidation of First Choice businesses- Synergy benefits in first full year - Capacity management and growth of controlled distribution & differentiated

content in the Mainstream sector - Combination of organic & acquisition led growth in specialist sectors

Drivers for underlying EBITA improvement of TUI Hotels & Resorts:- Increase in number of bednights- Slight rise in the average revenues per bed

* WTTC Report 2007


Aktiengesellschaft

Container Shipping Freight rate trends by trade lanes

1,511

1,508

1,494

1,422

1,381

1.6661,645

1,266

1,459

1,562

1,234

1.622

1.5011,506

1,415

1,345

1,392 1,443

1.700

1,626

1,653

1,556

1,4661,451

1.172

1,2031,179 1,2211,1741,179

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08

Freight rate in US$/TEU Atlantic

Trans-Pacific

Latin America

Far East

Australasia


AktiengesellschaftOutlook Container Shipping 2008

Market growth of approx. 6-7%* expected

Continued strategy for controlled volume growth

Average annual freight rates are forecast to rise against last year

Turnover above last year, growth depending on the development of the US

Dollar versus the Euro

Underlying EBITA expected to increase significantly based on:

- Growth in average freight rates and rise in volumes

- Full synergies from the integration of CP Ships being available

- Further cost savings in operative business

* Global Insight March 2008


AktiengesellschaftFinancial calendar

14 August 2008 Second Quarter 2008

14 November 2008 Third Quarter 2008

25 March 2009 Financial Year 2008 - Press Conference and Analysts‘ Meeting

13 May 2009 Annual General Meeting

TUI AG Investor Relations - E-mail: [email protected] - Phone: +49-511-566-1425


AktiengesellschaftFuture-related statements

This presentation contains a number of statements related to the

future development of TUI. These statements are based both on

assumptions and estimates. Although we are convinced that these

future-related statements are realistic, we cannot guarantee them, for

our assumptions involve risks and uncertainties which may give rise to

situations in which the actual results differ substantially from the

expected ones. The potential reasons for such differences include

market fluctuations, the development of world market fluctuations,

the development of world market commodity prices, the

development of exchange rates or fundamental changes in the

economic environment. TUI does not intend or assume any obligation

to update any forward-looking statement to reflect events or

circumstances after the date of these materials.

Documents

TUI Group Investor Presentation · Significant increase in Group Turnover to €6.3 bn (Q2 07: €5.2 bn, +20.3%) especially due to consolidation of First Choice Holidays Underlying