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TUI AG | Analysts‘ Meeting 22.3.2006 | Seite 1

Financial Year 2005

Analysts’ Meeting

Hanover, 22 March 2006


Agenda

I. Review Financial Year 2005 (Dr. Michael Frenzel, CEO)

II. Financial Statements 2005 (Rainer Feuerhake, CFO)

III. CP Ships integration (Adolf Adrion, COO Shipping)

IV. Outlook (Dr. Michael Frenzel, CEO)

V. Appendix


Highlights

2005

Strengthening of shipping division by acquisition of CP Ships

Capital increase of €1 billion successfully completed

Credit rating assigned by Standard & Poor’s and Moody’s

Issue of 1.3 billion euros in the debt capital markets

Closing of sale of VTG (special logistics) on 14 December 2005

2006

Sale of TQ3 (business travel) in January 2006

Sale of PNA (steel trading) in February 2006


19.6

18.0

0

5

10

15

20

in € bn

TUI Group 2005

Turnover

633

680

0

100

200

300

400

500

600

700

800

900in € mill

Earnings by divisions2004 20052004 20052004 2005

486532

0

100

200

300

400

500

600

700

800

900in € mill

Adjusted earnings by divisions


18.2

16.3

0

2

4

6

8

10

12

14

16

18

20

2004 2005

421386

0

50

100

150

200

250

300

350

400

450

500

550

2004 2005

Turnover€ bill € mill

EBTA

+ 11.7%

- 8.3%

Turnover and EBTA continuing operations


Turnover by divisionsHandout only

Change€ mill 2005 2004 in %Tourism 14,096.5 13,318.9 + 5.8Central Europe 5,749.6 5,384.5 + 6.8Northern Europe 4,809.2 4,674.6 + 2.9Western Europe 2,753.7 2,505.2 + 9.9Destinations 532.5 508.2 + 4.8Other tourism 251.5 246.4 + 2.1Shipping 3,834.2 2,686.7 + 42.7Hapag-Lloyd 3,222.2 2,686.7 + 19.9CP Ships 612.0 - -

Central operations 269.6 283.6 - 4.9Continuing operations 18,200.3 16,289.2 + 11.7Trading 1,002.9 971.5 + 3.2Special logistics 415.4 785.5 - 47.1

Discontinuing operations 1,418.3 1,757.0 - 19.3

Turnover by divisions 19,618.6 18,046.2 + 8.7

Change€ mill 2005 2004 in %Tourism 14,096.5 13,318.9 + 5.8Central Europe 5,749.6 5,384.5 + 6.8Northern Europe 4,809.2 4,674.6 + 2.9Western Europe 2,753.7 2,505.2 + 9.9Destinations 532.5 508.2 + 4.8Other tourism 251.5 246.4 + 2.1Shipping 3,834.2 2,686.7 + 42.7Hapag-Lloyd 3,222.2 2,686.7 + 19.9CP Ships 612.0 - -

Central operations 269.6 283.6 - 4.9Continuing operations 18,200.3 16,289.2 + 11.7Trading 1,002.9 971.5 + 3.2Special logistics 415.4 785.5 - 47.1

Discontinuing operations 1,418.3 1,757.0 - 19.3

Turnover by divisions 19,618.6 18,046.2 + 8.7


Earnings by divisions (EBTA)Handout only

Change€ mill 2005 2004 in %Tourism 360.0 352.9 + 2.0Central Europe 82.5 61.9 + 33.3Northern Europe 109.2 77.8 + 40.4Western Europe -9.6 39.5 n.m.Destinations 169.3 143.6 + 17.9Other tourism 8.6 30.1 - 71.4

Shipping 278.5 279.6 - 0.4Hapag-Lloyd 281.0 279.6 + 0.5CP Ships -2.5 - -Central operations -253.0 -211.9 - 19.4Continuing operations 385.5 420.6 - 8.3Trading 62.8 81.2 - 22.7Special logistics 150.5 156.7 - 4.0Divestments 34.0 21.5 + 58.1Discontinuing operations 247.3 259.4 - 4.7

Earnings by divisons (EBTA) 632.8 680.0 - 6.9Unusual expenses and income 149.3 132.3 + 12.8Measurement of conversion options -2.2 15.9 n.m.Adjusted EBTA 485.7 531.8 - 8.7

Change€ mill 2005 2004 in %Tourism 360.0 352.9 + 2.0Central Europe 82.5 61.9 + 33.3Northern Europe 109.2 77.8 + 40.4Western Europe -9.6 39.5 n.m.Destinations 169.3 143.6 + 17.9Other tourism 8.6 30.1 - 71.4

Shipping 278.5 279.6 - 0.4Hapag-Lloyd 281.0 279.6 + 0.5CP Ships -2.5 - -Central operations -253.0 -211.9 - 19.4Continuing operations 385.5 420.6 - 8.3Trading 62.8 81.2 - 22.7Special logistics 150.5 156.7 - 4.0Divestments 34.0 21.5 + 58.1Discontinuing operations 247.3 259.4 - 4.7

Earnings by divisons (EBTA) 632.8 680.0 - 6.9Unusual expenses and income 149.3 132.3 + 12.8Measurement of conversion options -2.2 15.9 n.m.Adjusted EBTA 485.7 531.8 - 8.7


Tourism

Turnover Change€ mill 2005 2004 in %Tourism 14,096.5 13,318.9 + 5.8Central Europe 5,749.6 5,384.5 + 6.8 thereof HLX 237.7 157.2

Northern Europe 4,809.2 4,674.6 + 2.9 thereof Thomsonfly 124.1 39.2

Western Europe 2,753.7 2,505.2 + 9.9Destinations 532.5 508.2 + 4.8Other tourism 251.5 246.4 + 2.1

Turnover Change€ mill 2005 2004 in %Tourism 14,096.5 13,318.9 + 5.8Central Europe 5,749.6 5,384.5 + 6.8 thereof HLX 237.7 157.2

Northern Europe 4,809.2 4,674.6 + 2.9 thereof Thomsonfly 124.1 39.2

Western Europe 2,753.7 2,505.2 + 9.9Destinations 532.5 508.2 + 4.8Other tourism 251.5 246.4 + 2.1

Earnings Change€ mill 2005 2004 in %Tourism 360.0 352.9 + 2.0Central Europe 82.5 61.9 + 33.3 thereof HLX 0,3 -22.6

Northern Europe 109.2 77.8 + 40.4 thereof Thomsonfly -31.4 -25.0

Western Europe -9.6 39.5 n.m.Destinations 169.3 143.6 + 17.9Other tourism 8.6 30.1 - 71.4

Earnings Change€ mill 2005 2004 in %Tourism 360.0 352.9 + 2.0Central Europe 82.5 61.9 + 33.3 thereof HLX 0,3 -22.6

Northern Europe 109.2 77.8 + 40.4 thereof Thomsonfly -31.4 -25.0

Western Europe -9.6 39.5 n.m.Destinations 169.3 143.6 + 17.9Other tourism 8.6 30.1 - 71.4


Tourism – Central Europe

5,4 5,7

0

2

4

6

2004 2005

6283

0

50

100

2004 2005

EBTA (€mill)Turnover (€bn)

+33%

+7%

Germany 87%

Switzer-land4%

Austria9%

Turnover by source market

GermanyGood development of tour operator business, specialist tour operators excellentHigh load factors of HLF (87%) and HLX (79%)HLX generated positive result for the first time

SwitzerlandAfter reorganisation of tour operator business clearly positive result

AustriaGood operational performance in a very price-sensitive market


Tourism – Northern Europe

4,7 4,8

0

2

4

6

2004 2005

78109

0

40

80

120

2004 2005


+40%+3%

UKPositive effects of the restructuring already initiated in 2004 Increase still curbed by inclusion of Thomsonflydue to start-up costs and new departure airportsThomson succeeded to increase market share and rose average prices

IrelandMarket environment continued to be difficultDespite the drop in customer numbers Budget Travel secured leading market position

Nordic CountriesSummer season benefited from increased average prices, thus profits developed favourablyFirst months in 2005 characterised by slow bookings due to Tsunami

Nordic Countries

16%

Ireland4%

UK80%



Tourism – Western Europe

2,5 2,8

0

3

2004 2005

40

-10

-15

50

2004 2005

EBTA (€mill)Turnover (€bn)+10%

Nether-lands 29%

Belgium 28%

France 43%


FranceNormally strong Christmas business depressed by social political situation Seat-only business of Corsair to French overseas departments suffered from competitive market environmentCorsair fleet renewal programme and restructuring caused downturn in profits

BelgiumMarket characterised by a lively growth patternTUI Belgium expanded its market leading positionEarnings on last years high level

NetherlandsEarnings positive despite start-up costs of ArkeflyTour operators outperformed the market after successful repositioning


Tourism – Destinations

0,51 0,53

0,0

0,6

2004 2005

144169

0

50

100

150

200

2004 2005


+18%+5%

HotelsTUI Hotels and Resorts increased customer

numbers by 8.3% to 3.4 mill

Occupancy rate at high level of 80%

Good operational business was also supported by

full year effect of a Turkish hotel company as

well as first-time consolidation of Toufag Group

Destination ServicesIncoming agencies catered for 10.8 mill guests

Growth in customers was especially recorded in

Eastern MediterraneanDest. Services

58%

Hotels 42%

Turnover 2005


Tourism – Other Tourism

0,25 0,25

0,0

0,4

2004 2005

30

90

50

2004 2005


-71%+2%

Business Travel 98%

IT Services

2%

Turnover 2005

Business Travel

A difficult market environment and timing

differences in the settlement of comissions lead

to a drop in earnings

Sale of TQ3 on 3 Jan 2006 to BCD Holdings N.V.,

closing expected in first quarter 2006


One-time effects in tourism earnings 2005

Central Europe

Northern Europe

Western Europe

Destinations

- Expenses in conjunction with expansion of seat-only business at Hapagfly+ Income from sale-and-lease-back of aircraft

- Further costs due to restructuring programme which was initiated in 2004+ Sale of Coventry airport

- Expenses in connection with fleet renewal programme of Corsair- Redundancies due to aircraft renewal programme- X-Mas business strongly impacted by social political situation in France- Start-up costs due to new flight operations in the Netherlands (Arkefly) + Sale of accommodation facilities for ski tour offerings+ Sale of excursion business with canal boats in Amsterdam

+ First time consolidation of Turkish Hotel Company as well as Toufag Group

All in all one-time costs exceeded one-time profits by far

Adjusted for the negative non-recurring effects in France, tourism earnings would have increased by approx. 17%


Shipping

Turnover Change€ mill 2005 2004 in %Shipping 3,834.2 2,686.7 + 42.7Hapag-Lloyd 3,222.2 2,686.7 + 19.9CP Ships 612.0 - -

Turnover Change€ mill 2005 2004 in %Shipping 3,834.2 2,686.7 + 42.7Hapag-Lloyd 3,222.2 2,686.7 + 19.9CP Ships 612.0 - -

Earnings Change€ mill 2005 2004 in %Shipping 278.5 279.6 - 0.4Hapag-Lloyd 281.0 279.6 + 0.5CP Ships -2.5 - -

Earnings Change€ mill 2005 2004 in %Shipping 278.5 279.6 - 0.4Hapag-Lloyd 281.0 279.6 + 0.5CP Ships -2.5 - -

Shipping division in 2005 comprises Hapag-Lloyd Container Line, CP Ships and

Hapag-Lloyd Cruises

First-time consolidation of CP Ships as of 25 October 2005


280 281

0

50

100

150

200

250

300

2004 2005

Shipping – Hapag-Lloyd Container Line & Cruises

2,73,2

0,0

3,5

2004 2005


+20%

Latin America

7%

North Atlantic

25%

Far East 41%

Trans-Pacific 27%

Transport volume

Container LineHapag-Lloyd operated 55 container ships with total capacity of 226,000 TEU

Earnings in shipping at the high level of last year

Transport volumes increased by 11% to 2,677,000 TEU

Average freight rate rose by 8% to 1,353 $/TEU

Increase in bunker costs and short-term charter rates

Cruises

Hapag-Lloyd Cruises with 4 ships in operation

Turnover of €148 mill and small profit


-2,5

-32004 2005

Shipping – CP Ships

0,6

0

1

2004 2005

EBTA (€mill)*Turnover (€bn)*

*consolidated from 25 october 2005

CP Ships operated 78 container ships with a total capacity of 187,000 TEU

Decrease in transport volumes by 3.5% to 2,199,000 TEU in 2005 due to reduced capacity and focus on improving cargo mix

EBTA of €-2.5 mill comprises effects from first-time consolidation as well as cost for redeeming CP’s outstanding financial debt

operational result was positive

Pro-forma turnover* for the full year $4,170 mill

Pro-forma EBTA* for the full year $188 mill

Asia25%

Other1%

Latin America

11% Trans Atlantic

51%Austral-asia12%

Transport volume

* unreported figures in US$ according to Canadian GAAP


Central operations

Earnings (EBTA)€ mill 2005 2004

Central operations -253 -212 - 19.3

Central costs -110 -97 - 13.4

Central interest -159 -200 + 20.5

Other income and expenses 16 85 n.m. thereof measurement of conversion options -2 16

Change in %

Earnings (EBTA)€ mill 2005 2004

Central operations -253 -212 - 19.3

Central costs -110 -97 - 13.4

Central interest -159 -200 + 20.5

Other income and expenses 16 85 n.m. thereof measurement of conversion options -2 16

Change in %


Discontinuing operations

Turnover Change€ mill in %Trading 1,002.9 971.5 + 3.2Special logistics 415.4 785.5 - 47.1Discontinuing operations 1,418.3 1,757.0 - 19.3

Turnover Change€ mill in %Trading 1,002.9 971.5 + 3.2Special logistics 415.4 785.5 - 47.1Discontinuing operations 1,418.3 1,757.0 - 19.3

Earnings Change€ mill 2005 2004 in %Trading 62.8 81.2 - 22.7Special logistics 150.5 156.7 - 4.0Divestments 34.0 21.5 + 58.1Discontinuing operations 247.3 259.4 - 4.7

Earnings Change€ mill 2005 2004 in %Trading 62.8 81.2 - 22.7Special logistics 150.5 156.7 - 4.0Divestments 34.0 21.5 + 58.1Discontinuing operations 247.3 259.4 - 4.7

Turnover decreased due to divestments in special logistics

Earnings in trading dropped as expected as purchase prices rose substantially

Earnings from divestments refer to unusual income from the sale of energy sector in 2003


P&L: Key figures of the TUI Group

Change€ mill 2005 2004 in %

Earnings before tax 385.5 420.6 - 8.3

Taxes on income 86.9 55.4 + 56.9

Results from continuing operations 298.6 365.2 - 18.2

Results from discontinuing operations 196.2 206.8 - 5.1

Group profit for the year 494.8 572.0 - 13.5

Minority interests 38.1 43.8 - 13.5

Group profit after minorities 456.7 528.2 - 13.5

Number of shares (average) mill 200.19 178.49 -

EPS € 2.28 2.96 - 23.0

EPS diluted € 2.16 2.77 - 22.0

Change€ mill 2005 2004 in %

Earnings before tax 385.5 420.6 - 8.3

Taxes on income 86.9 55.4 + 56.9

Results from continuing operations 298.6 365.2 - 18.2

Results from discontinuing operations 196.2 206.8 - 5.1

Group profit for the year 494.8 572.0 - 13.5

Minority interests 38.1 43.8 - 13.5

Group profit after minorities 456.7 528.2 - 13.5

Number of shares (average) mill 200.19 178.49 -

EPS € 2.28 2.96 - 23.0

EPS diluted € 2.16 2.77 - 22.0

Dividend payment of 77 Cent per share proposed


Agenda





V. Appendix


Mandatory changes in IAS/IFRS accounting

2005

IFRS 5 Discontinuing operations

IAS 16 Property, plant and equipment

IAS 19 Employee benefits

IAS 32 Financial instruments

IAS 39 Financial instruments

P&L-statement shows turnover, expenses and income taxes only for continuing operationsEarnings after tax of discontinuing operations is disclosed as a single amount in the P&LAssets and liabilities of discontinuing operations are presented separately in the balance sheet Review of residual values and depreciation methods

Effects

In the framework of the recognition of pension obligations new option exercised to offset actuarial gains or losses against equityConversion right of 2003 convertible bond now classified as derivative liability and subject to mark to market valuation


P&L: Main changes in IAS/IFRS accounting and presentation

P&L 2004 rest.2004 2005

Turnover 18046 16,293 18,201Other income 682 655 603Change in inventories 50 12 -3Cost of materials 12,409 11,217 12,900Personnel costs 2,468 2,198 2,304Depreciation and amortisation 520 439 505Impairment of fixed assets 13 4 18Other expenses 2,712 2,513 2,489Result from discontinuing ops. 132 - -Financial result -209 -209 -237Equity result 42 40 39Earnings before income tax 622 421 386Income taxes 90 55 87Result from continuing ops. 365 299

Result from discontinuing ops. 207 196

Group Profit 532 572 495

in € millIAS 19 Employee benefits

In the framework of the recognition of pension obligations new option exercised to offset actuarial gains or losses against equity no longer P&L effect

Interest portion of the measurement of pension obligations are no longer shown under personnel costs but under financial expenses

IAS 32/39 Financial instruments

Conversion right of 2003 convertible bond now classified as derivative liability and subject to mark to market valuation


P&L-statement shows turnover, expenses and income taxes in detail only for continuing operations tourism and shipping

Earnings after tax of discontinuing operations trading and special logistics is disclosed as a single amount in the P&L-statement

Bottom line effectPresentation effect


P&L: Other income

Other income in € mill 2005 2004Book profits from the sale of assets 110,8 64,7

Reversal of passive differences with an effect on results 12,3 21,3

Income from supplementary transactions 76,0 151,3

Foreign exchange gains 162,0 115,6

Income from rebilling 143,3 156,8

Income from letting and leasing contracts 16,3 22,8

Income from reduction in value adjustments to trade accounts receivable 25,1 36,9

Other Income 56,7 85,6

Total 602,5 655,0

Majority of other income directly related to development of operational business

Several items in other expenses related to other income


Balance sheet:Main changes in IAS/IFRS accounting

Group equity and liabilities 2004 2004 2005rest.

Group equity 2.991 2.660 4.375Provisions for pensions 668 1.062 1.293

Other provisions 1.307 1.270 1.283

Provisions 1.975 2.332 2.574

Liabilities 7.353 7.378 8.088Liabilities from assets classified as held for sale 289

12.319 12.370 15.326


Assets and liabilities of discontinuing operations are presented separately from other assets and liabilities (in one line item each)

IAS 19 Employee benefits

In the framework of the recognition of pension obligations new option exercised to offset actuarial gains or losses against equity. The effect of the setoff is to be seen in the position pension provisions, deferred income and equity

Assets 2004 2004 2005rest.

Goodwill 3.764 3.764 3.756Property, plant and equipment 4.660 4.660 6.870Other investments 893 893 695

Fixed assets 9.317 9.317 11.322

Receivables 2.164 2.215 2.542

Inventories 357 357 150

Cash 481 481 599Assets from assets classified as held for sale 715

12.319 12.370 15.328


Balance sheet

Reduction of equity caused by offsetting actuarial gains and losses

Increase of pension provisions by shortfall of funded pension deficit

New mortality tables and reduction of discount rate led to higher pension deficit

P&L

Positive base effect on personnel costs due to cease to apply amortisation of pension deficit (mainly Northern Europe)

Reallocation of interest portion of pension expenses from personnel costs to interest result

Effects from changes in pension obligations


CP Ships:Purchase price allocation

Equity CP Ships as of 25 October 2005 (IFRS) €1,237 mill

- Goodwill -507

+ Other intangible assets +688

+ Ships, Containers other +374

- Financial liabilities -40

Other -73

Equity CP Ships fair value adjusted €1,679 mill

Following the conversion from Canadian GAAP to IFRS, equity of CP totalled €1,237 mill.

Due to IFRS 3 the purchase price had to be allocated to individual assets and liabilities at market values (fair value adjustment)

The application of fair values lead to an net-increase in equity of €442 mill to €1,679 mill.

Low additional goodwill after fair value exercise on CP ships of approx. €42 mill.

Due to fair value adjustments incremental depreciation amounts to approx. €80 mill.

CP Ships consolidation will lead to significantly higher EBITDA


11,32273.9% 9,317

75.4%

3,05324.6%

4,00626.1%

2005 2004 2005 2004

4,37528.6% 2,659

21.5%

2,57716.8%

2,33318.9%

4,35828.4%

3,73230.2%

4,01826.2%

3,64629.4%

2004 2005 2004

Balance sheet

Currentassets

Fixedassets

Liabilities

Financial liabilities

Provisions

Equity

12,370

15,328in € mill

3,764Goodwill

3,756

15,328

12,370

2005 2004 2005 2004

Balance sheet total increased

by 23.9% to €15.3 bn

Equity rate improved to

28.5% (2004: 21.5%)

Gearing improved to 99.6%

(2004: 140%)

Equity to goodwill ratio 1,2x

(2004: 0,7x)


3.83.3

3.8

5.4

6.2

6.9

1

2

3

4

5

6

7

8

Development of net debt

in € bn

12/2001 12/2002 12/2003

- 0.8

- 1.6

- 0.7

12/2000 12/2005

- 0.5

12/2004

+ 0.5

DivestmentsCP Ships acquisitionCapital increaseOperational

+-

-+


Net debt / Off-balance debt

3,83.33.8

3,8*

3.2*2.9*

0

1

2

3

4

5

6

7

8

12/2003 12/2004 12/2005

in € bn

6.7 6.5

7.6

thereof CP Ships €0.9 bn

* net present value


TUI - First-time Credit Ratings

Corporate Rating BB+ Ba2

Outlook positive stable

Bond Rating BB Ba2

Corporate ratings assigned at the end of October 2005

Step-up of 75 basis points for senior note and floating rate note issued in 2004 avoided


Hybrid

€300 mill

8.625% until 2013

9 Dec 2005

perpetual

New DCM instruments

Senior Notes

€450 mill

5.125%

9 Dec 2005

10 Dec 2012

Floating Rate Notes

€550 mill

3M Euribor + 155

9 Dec 2005

10 Dec 2010

Face amount

Coupon

Issue date

Maturity date

Short- and medium-term indebtedness refinanced

Further improvement in maturity profile

basis points

Refinancing of CP Ships acquisition


Improved maturity profile

1.10.4

1.5

3.44.0

3.2

3.3

2.7

2.4

2.8

0

1

2

3

4

5

6

7

8

12/2001 12/2002 12/2003

Debt > 1 year Debt < 1 year

39%

61%

40%

60%

65%

35%

in € bill

89%

11%

12/2004 12/2005

74%

26%


Disposals Cash effect in € mill Timing

Business Travel (TQ3) ~ 300e (Q1 2006e)

Trading (PNA) ~ 300e (Q2 2006e)

Other (Wolf, receivables, etc.) ~ 200e (2006e)

Net debt development 2006

Reduction of net debt expected mainly due to cash inflow from disposals


Reporting 2006: Focus on EBITA

EBITA EBTA€ mill 2005 2005Tourism 365.2 360.0Central Europe 65.9 82.5Northern Europe 102.9 109.2Western Europe -2.6 -9.6Destinations 185.2 169.3Other tourism 13.8 8.6

Shipping 317.9 278.5Hapag-Lloyd 308,6 281.0CP Ships 9,3 -2.5

Central operations -94.0 -253.0Continuing operations 589.1 385.5Trading 67.3 62.8Special logistics 158.6 150.5Divestments 34.0 34.0Discontinuing operations 259.9 247.3

Earnings by division 849.0 632.8Unusual expenses and income 149.3 149.3Measurement of conversion options -2.2 -2.2

Earnings by division (adjusted) 701.9 485.7

EBITA EBTA€ mill 2005 2005Tourism 365.2 360.0Central Europe 65.9 82.5Northern Europe 102.9 109.2Western Europe -2.6 -9.6Destinations 185.2 169.3Other tourism 13.8 8.6

Shipping 317.9 278.5Hapag-Lloyd 308,6 281.0CP Ships 9,3 -2.5

Central operations -94.0 -253.0Continuing operations 589.1 385.5Trading 67.3 62.8Special logistics 158.6 150.5Divestments 34.0 34.0Discontinuing operations 259.9 247.3

Earnings by division 849.0 632.8Unusual expenses and income 149.3 149.3Measurement of conversion options -2.2 -2.2

Earnings by division (adjusted) 701.9 485.7


Agenda





V. Appendix


Hapag-Lloyd – a top 5 global container shipping company

434295 240

304 261150

334 329222 189

809

498 493

315240 198 174 130 108

1,575

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800M

aers

k Li

ne

MSC

CM

A-C

GM

Ever

gree

n

New

Hap

ag-L

loyd

CO

SCO

Han

jin

CSC

L

AP

L (N

OL)

NY

K

MO

L

CSA

V

OO

CL

K-L

ine

Zim

Yan

g M

ing

Ham

burg

-Sud

Hyu

ndai

PIL

Wan

Hai

Capa

city

('0

00 T

EU)

Grand Alliance New World Alliance CKYH Alliance Not a member of an alliance

Source: MDS Transmodal Mar 2006 (vessels > 399TEU by nominal capacity, may differ from recently published company data


Status of the CP Ships integration

Integration of CP Ships into Hapag-Lloyd is proceeding according to plan; integration expected to be finalized latest beginning of 2008

Following the successful integration, likely synergy benefits of €180m confirmed

Majority of the one-off implementation costs expected in 2006

Excellent fit of both organisations and operational business strengths confirmed

Optimization potential for vessel deployment based on excellent fit of fleets confirmed

Major organisational, personnel and operational decisions have already been taken

All enlarged senior management positions already appointed and in place


First measures are showing success

Organisational Integration

Integration of CP Ships in Hapag-Lloyd’s blueprint organisation model

Enlargement of existing Hapag-Lloyd organisation into five regions

New business units „Terminals”, „US Flag” and “Logistics”

Planning phase for the integration of the global sales organisation finalized

Management & Personnel

Operations & IT

Appointment of M. Behrendt as Chairman of the Board of CP Ships as well as A. Adrion

as Chief Executive Officer and U. Kranich as Chief Financial Officer of CP Ships

Hapag-Lloyd Liner Shipping Executive Committee expanded by CP Ships Senior

executive management

All new management positions appointed and filled

New vendor contracts have been essentially negotiated worldwide, e.g. for terminals,

feeder services and rail transports

Exchange of empty containers and vessel slots between Hapag-Lloyd and CP Ships

Restructuring of intermodal services, i.e. inland transportation

Extend Hapag-Lloyd’s industry-leading IT system to CP Ships’ assets and transport chain


Split-up of estimated synergies Development of synergy benefits

70

180

70

30

130

-10

40

90

140

190

Gross synergies One-off costs Net synergies

Efficiencyincrease

37%

Headquarterand IT34%

Contributionincrease

8%

Global organisation

11%

Service network

10%

2006 2007 2008

Overview of likely synergy benefits

0

180

100

Faster than scheduled integration likely


Agenda





V. Appendix


TourismBooking figures

(As of 24 February 2006)

(Year-on-year variation in %) Sales Customers Sales CustomersGermany + 1.0 + 7.0 + 0.1 + 1.5Switzerland + 5.1 + 3.8 + 18.9 + 20.0Austria - 1.2 - 8.4 - 8.5 - 7.4East. Europe + 39.8 + 41.8 + 24.4 + 7.2Central Europe + 2.1 + 7.2 + 0.2 + 1.3United Kingdom + 4.5 + 15.5 - 0.4 + 4.3Ireland + 2.0 - 0.8 + 5.3 + 0.9Nordic countries + 3.7 - 1.9 + 10.6 + 5.0Northern Europe + 4.3 + 11.6 + 1.2 + 4.2France - 3.1 - 9.9 - 5.8 - 15.9Netherlands + 5.2 - 2.2 + 7.4 + 1.4Belgium + 1.4 + 3.1 + 18.4 + 13.0Western Europe - 0.2 - 4.8 + 7.0 + 0.1

Total + 2.4 + 6.0 + 2.0 + 2.0

Total (excluding HLX and T-Fly) + 1.6 + 0.8 + 1.3 - 1.0

Summer 2006Winter 2005/2006

(Year-on-year variation in %) Sales Customers Sales CustomersGermany + 1.0 + 7.0 + 0.1 + 1.5Switzerland + 5.1 + 3.8 + 18.9 + 20.0Austria - 1.2 - 8.4 - 8.5 - 7.4East. Europe + 39.8 + 41.8 + 24.4 + 7.2Central Europe + 2.1 + 7.2 + 0.2 + 1.3United Kingdom + 4.5 + 15.5 - 0.4 + 4.3Ireland + 2.0 - 0.8 + 5.3 + 0.9Nordic countries + 3.7 - 1.9 + 10.6 + 5.0Northern Europe + 4.3 + 11.6 + 1.2 + 4.2France - 3.1 - 9.9 - 5.8 - 15.9Netherlands + 5.2 - 2.2 + 7.4 + 1.4Belgium + 1.4 + 3.1 + 18.4 + 13.0Western Europe - 0.2 - 4.8 + 7.0 + 0.1

Total + 2.4 + 6.0 + 2.0 + 2.0

Total (excluding HLX and T-Fly) + 1.6 + 0.8 + 1.3 - 1.0

Summer 2006Winter 2005/2006


Market growth of 3-5% expected in 2006

Number of guests above market growth

Increase in turnover up to €15 bn estimated

EBITA expected above last years level due to:

- Improved production workflows and product innovation in Germany

- Positive impact from restructuring programme in UK

- Improvement of performance in France

Medium-term target is to return to EBITA margin levels achieved prior to the contraction phase in tourism

Outlook Tourism 2006


EBITA in € mill

Efficencyimprovement

InvestmentsDestinations

Market growth

Underperformer

Low-costCarrier

e-commerce/new media

Performance improvements Value chain

2005

Marginrisik

External factors

Medium-term target tourism


63250

446

725

1,800

1,254

2000 2001 2002 2003 2004 2005

World of TUI:Strong growth of internet sales

in € mill

+300%

+78%

+63%

+73%

+42%Target: increase

internet sales to 25% of tourism sales

Handout only


Market growth of 7-8% expected

Volume (TEU) growth above market development

Turnover of approx. €7.0 bn estimated

EBITA of 2005 difficult to achieve due to:

- Persistently high level of bunker costs and short-term charter rates

- CP Ships integration costs of approx. €100 mill will predominantly arise in 2006

- Dip in freight rates especially on the Asian routes

Medium-term, following the successful integration of CP Ships by 2008, we expect improvement from synergies of around €180 mill

Outlook Shipping 2006


V. Appendix

Tourism- Customers by source markets

- TUI airlines 2005

Shipping - Number of vessels

- Transport volumes Hapag-Lloyd

- Transport volumes CP Ships

Financial calendar 2006


TourismCustomers by source market

2005 2004 Change

in '000 in '000 in %Germany 9,291 8,240 + 12.8Switzerland 276 219 + 26.5Austria 717 728 - 1.5Central Europe 10,284 9,187 + 11.9United Kingdom 5,380 4,911 + 9.5Ireland 328 354 - 7.4Nordic countries 1,150 1,253 - 8.2Northern Europe 6,858 6,518 + 5.2France 1,685 1,635 + 3.1Netherlands 1,256 1,179 + 6.5Belgium 1,489 1,261 + 18.1Western Europe 4,430 4,075 + 8.7

Total 21,572 19,780 + 9.1

2005 2004 Change

in '000 in '000 in %Germany 9,291 8,240 + 12.8Switzerland 276 219 + 26.5Austria 717 728 - 1.5Central Europe 10,284 9,187 + 11.9United Kingdom 5,380 4,911 + 9.5Ireland 328 354 - 7.4Nordic countries 1,150 1,253 - 8.2Northern Europe 6,858 6,518 + 5.2France 1,685 1,635 + 3.1Netherlands 1,256 1,179 + 6.5Belgium 1,489 1,261 + 18.1Western Europe 4,430 4,075 + 8.7

Total 21,572 19,780 + 9.1


TourismTUI airlines 2005

Number of aircraft Average age of fleet Seat load factor in %

Airline 2005 2005 2005

Hapagfly 32 6.7 87

HLX 15 11.0 79

Britannia Airways UK 30 11.1 90

Thomsonfly 12 10.0 72

Britannia Nordic 6 9.6 93

Corsair 10 13.5 83

TUI Airlines Nederland 4 14.1 85

TUI Airlines Belgium 7 11.3 90

Total 116 10.0

Number of aircraft Average age of fleet Seat load factor in %

Airline 2005 2005 2005

Hapagfly 32 6.7 87

HLX 15 11.0 79

Britannia Airways UK 30 11.1 90

Thomsonfly 12 10.0 72

Britannia Nordic 6 9.6 93

Corsair 10 13.5 83

TUI Airlines Nederland 4 14.1 85

TUI Airlines Belgium 7 11.3 90

Total 116 10.0


Shipping Number of vessel as of 31.12.2005

Hapag-Lloyd CP Ships Total Capacity in TEU

< 2,300 19 40 59 92,121

2,300 - 4,000 6 26 32 94,843

4,000 - 6,000 18 12 30 134,578

> 6,000 12 - 12 91,324

Total 55 78 133 412,866

Hapag-Lloyd CP Ships Total Capacity in TEU

< 2,300 19 40 59 92,121

2,300 - 4,000 6 26 32 94,843

4,000 - 6,000 18 12 30 134,578

> 6,000 12 - 12 91,324

Total 55 78 133 412,866


ShippingTransport volumes Hapag-Lloyd

Changein '000 TEU Q1 Q2 Q3 Q4 2005 2004 in %

Far East 257 266 284 294 1,101 1,005 + 9.6

Trans-Pacific 159 171 191 198 719 622 + 15.6

North Atlantic 160 171 168 166 665 617 + 7.8

South America 41 47 52 52 192 171 + 12.3

Total 617 655 695 710 2,677 2,415 + 10.8


Far East 257 266 284 294 1,101 1,005 + 9.6

Trans-Pacific 159 171 191 198 719 622 + 15.6

North Atlantic 160 171 168 166 665 617 + 7.8

South America 41 47 52 52 192 171 + 12.3

Total 617 655 695 710 2,677 2,415 + 10.8


ShippingTransport volumes CP Ships


Trans-Atlantic 280 299 267 266 1,112 1,197 - 7.1

Asia 121 143 146 140 550 516 + 6.6

Australasia 65 67 67 70 269 293 - 8.2

Latin America 62 67 63 59 251 247 + 1.6

Other services 5 5 3 4 17 25 - 32.0

Total 533 581 546 539 2,199 2,278 - 3.5


Trans-Atlantic 280 299 267 266 1,112 1,197 - 7.1

Asia 121 143 146 140 550 516 + 6.6

Australasia 65 67 67 70 269 293 - 8.2

Latin America 62 67 63 59 251 247 + 1.6

Other services 5 5 3 4 17 25 - 32.0

Total 533 581 546 539 2,199 2,278 - 3.5


Financial calendar 2006

TUI AG, Investor Relations

Phone: +49-511-566-1425

E-Mail: [email protected]

22 Mar 2006 Financial Year 2005

Press Conference and Analysts‘ Meeting

9 May 2006* First Quarter Report 2006

10 May 2006 Annual General Meeting 2006

10 Aug 2005* Second Quarter Report 2006

9 Nov 2005* Third Quarter Report 2006

*planned


Forward-looking statements

This presentation includes various forecasts and expectations as well

as statements relating to the future development of the TUI Group

and TUI AG. These statements are based on assumptions and

estimates and may entail known and unknown risks and uncertainties.

Actual development and results as well as the financial and asset

situation may therefore differ substantially from the expectations and

assumptions made. This may be due to market fluctuations, the

development of world market prices for commodities, of financial

markets and exchange rates, amendments to national and

international legislation and provisions or fundamental changes in the

economic and political environment. TUI does not intend to and does

not undertake an obligation to update or revise any forward-looking

statements to adapt them to events or developments after the date

of this materials.

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