Pre-Close Trading Update

TUI set to deliver a strong FY24 in line with expectations

• Positive booking momentum and a strong close to Summer 2024 leave us well positioned to reaffirm our FY24 guidance¹ to increase Und. EBIT by at least 25% year-on-year
  • Markets + Airline remains well ahead with bookings² up +6% and ASP +3% for Summer 2024
  • Holiday Experiences continues to perform strongly, delivering in line with our upgraded expectations
• Promising start to Winter 2024/25 as consumers continue to prioritise spend for leisure experiences
  • Bookings in Markets + Airline² up +7% with ASP +5%, ahead across all our source markets, bolstered by stronger demand for dynamically packaged product
  • Holiday Experiences with solid start to H1 FY25, supported by asset-right growth strategy including our fleet expansion in TUI Cruises
• We have a clear strategy to unlock significant value and remain committed to our mid-term ambitions including generating underlying EBIT growth of c. +7%-10% CAGR

TUI Group FY24 Guidance & Mid-Term Ambitions

• FY24 Guidance¹ – we continue to trade in line with management expectations and therefore reaffirm our guidance to increase underlying EBIT by at least 25% year-on-year (FY23: €977m)
• Mid-term ambitions – we have a clear strategy to accelerate profitable growth by increasing the customer lifetime value, creating a business which is more agile, more cost-efficient and achieving a higher speed to market with the aim to create additional shareholder value. We remain committed to delivering our mid-term ambitions which are as follows:
  • Generate underlying EBIT growth of c. +7-10% CAGR
  • Target net leverage³ strongly below 1.0x
  • Return to a credit rating territory in line with our pre-pandemic rating BB/Ba (S&P/Moody’s)

¹ Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainties currently known, including developments in the Middle East

² Bookings up to 15 September 2024 relate to all customers whether risk or non-risk and include amendments and voucher re-bookings

³ Net leverage ratio defined as net debt (Financial liabilities plus lease liabilities less cash & cash equivalents less other current financial assets) divided by underlying EBITDA

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