Pre-Close Trading Update

C-19 Highlights

• Prior to the C-19 pandemic, January 2020 saw the best booking month in the company’s history
• TUI was on track to deliver a strong result for financial year 2020
• Since the worldwide travel suspension in March, significant self-help actions have been taken to address the impact of the C-19 pandemic across the business
• Liquidity swiftly managed by securing state aid from the German Federal government
• Cash fixed costs reduced by more than 70% during the immediate lockdown period
• Comprehensive compensation agreement finalised with Boeing
• Completed the Hapag-Lloyd Cruises disposal to TUI Cruises joint venture in a challenging environment
• First tour operator to successfully restart operations across multiple markets and destinations, helped by the advantage of our integrated and diversified business model
• Global Realignment Programme launched to permanently reduce overhead cost base by 30% across the Group
• Summer 2020 and Winter 2020/21 capacity reduced as a result of recent volatile changes in travel restrictions
• Overall FY20 Q4 cash outflow remains as expected
• As at 20 September 2020, cash and available facilities on a pro forma basis including additional stabilisation package, would amount to €2.0bn

Chief Executive of TUI Group, Friedrich Joussen, commented:

“We have successfully restarted our operations; customers are enjoying their holidays with newly adapted hygiene protocols and we have taken 1.4m customers on their holidays since restart¹. Destination availability at present is highly influenced by government policy and development of the pandemic, meaning the environment remains volatile, and is likely to remain so for the next few quarters.

“Leisure holidays remain important to customers and have been one of the most missed activities² during the pandemic, with leisure travel expected to recover faster than business travel. Our integrated model, underpinned by our trusted and leading brand, offering differentiated products and attractive value propositions, combined with proven flexibility in a volatile environment, means we are strategically well placed to benefit as leisure travel volume recovers over the coming seasons.

“We are on track to complete the additional stabilisation package provided by the German Federal government as announced on 12 August with waiver approval secured from our Senior Notes bond holders. Our Global Realignment Programme is firmly underway with digitalisation initiatives accelerated throughout the Group. TUI will emerge a stronger, leaner, more digitalised business and is well positioned to benefit from the expected recovery.“

• Please find the full version of the Pre-Close Trading Update here (PDF)

^{1 Since restart of operations in mid-June to end of August 2020}

^{2 BCG COVID-19 consumer sentiment survey UK, US, Italy and France https://www.bcg.com/en-gb/publications/2020/covid-consumer-sentiment-survey-snapshot-5-18-20}