3 REASONS TO INVEST IN TUI
- Market leader in growing tourism market
- Own customer end to end: Markets & Airlines, Hotels & Resorts, Cruises, Destination Experiences
- Differentiated product offering and strong customer base
- Driving Holiday Experiences premium returns through scale in Markets & Airlines
- Customer ownership: digitalised product upselling
- Risk capacity mitigation by double diversification
- Tourism sector growing above GDP
- Focus and deliver on our four strategic initiatives to expand TUI’s ecosystem:
- 1) Protect and where possible extend leading positions in Markets & Airlines
- 2) Grow Hotel & Cruise businesses through asset-light expansion
- 3) Build scale in our new markets through our new GDN-OTA1 digital platform
- 4) Build scale in Destination Experiences markets and target “One million things to do”
- Holiday Experiences ROIC >1/3 higher than peers2
- Organic growth opportunities: Investments into own assets, JV & asset light growth as well as digital platforms to achieve superior returns
- Reliable core dividend: 30-40% of EAT3 with a dividend floor of €0.35 per share
- Accretive M&A and portfolio optimization
- Excess cash to be returned to shareholders
- Solid balance sheet – target gross leverage ratio comfortably within target range of 2.25x – 3.0x3
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MAGAZINE OF THE TUI GROUP 2020