Aktiengesellschaft

GreeceFit fortheFuture of Tourism

Dr. Michael Frenzel

CEO, TUI AG

German-GreekChamberof Commerce

AnnualMemberConference

Athens, 20.09.2006

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 2

AktiengesellschaftTUI drivestwopillarstrategy

€14,1 bnturnover € 3,8 bn. turnover

Tourism Shipping1 2

Mission: Travel. Transport. W orldwide.Mission: Travel. Transport. W orldwide.

9.100 employees50.500 employees

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 3

Aktiengesellschaft

in comparisonto TUI

14,1

12%1,7Expedia

17%2,4Kuoni

27%3,8First Choice

30%4,2REWE

30%4,3MyTravel

54%7,7Thomas Cook

63%8,9Carnival

Global leaderin tourism industry

TurnoverTourism 2005 -in billionEuro -

Source: companyreports, oanda.com (currencyconversionwithyearlyaverages)

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 4

AktiengesellschaftNo. 1 Position in Europe’s largestsourcemarkets

1stGermanyUKFranceNetherlandsAustriaIreland

2nd

Nordic countriesBelgiumHungaryPoland

3rdSwitzerlandSlovenia

New marketsItalySpainSlovakia

Global Play

China

Russia

India

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 5

AktiengesellschaftIntegrated tourism strategy

Tour Operator

75

Brands

123

Aircraft

279

Hotels

ca. 3.400

Travel Agencies

35

IncomingAgencies

Retail

Airline

Destination Service

Hotel

Broadest multi-channel networkwith 50 bookablewebsites and 55 call centers

Unique customer interfacewith 22 million guests

Largest short-/ medium haul fleetwith 67 billion seat kilometers

Huge customer service networkwith 5,000 reps

Leading global resort group with 165,000 beds

TUI AG | German-GreekCOC Athens | | Seite 6

AktiengesellschaftEuropean marketsback on thegrowth path

130

147142

135129

124128

2000 2001 2002 2003 2004 2005 2006e

European organised holidaymarket-in milliontrips-

Source: Own calculations based on Basis European Travel Monitor 1998-2005;

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 7

AktiengesellschaftEuropean online travelmarketcontinuesstronggrowth

57,2

41,6

28,6

19,2

12,77,7

2007e

+65%

+51%

+49%

+45%

+38%

2002 2003 2004 2005 2006e

European online travelmarket-turnoverin billionEuro -

Source: PhocusWright2005 (private und non-organisedbusinesstrips)

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 8

AktiengesellschaftTUI also online in leadingpositions

Top 5 Online Travel Companies-millionuniquevisitors/month-

Source: comScoreJuly2006; TUI containsall TUI brands(e.g. D: Hapagfly, hlx.com, L‘tur, Berge & Meer, etc.)

6,5

9,8

12,1

15,1

22,2Expedia

TUI

Lastminute

Priceline

Thomas Cook 1,3

1,4

1,5

3,3

4,6TUI

Expedia

Thomas Cook

Opodo

AIDU

TUI AG | German-GreekCOC Athens | | Seite 9

Aktiengesellschaft

0

50

100

150

200

250

300

350

400

450

1970 1980 1990 2000 2010e

Modular

49% ~ 35%

6%

~ 30%

~ 35%

Package

Non-organised

45%DIY

Source: Own calculations based on Basis European Travel Monitor and WTO

Expected development of travel market structure -in million trips -

Rapid structural change of the market

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 10

Aktiengesellschaft

Source: hlx

Greeksmajorchancesareoffside thelow costcarrierroutes

DevelopmentLow CostCarrierConnections2001

2005

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 11

AktiengesellschaftGreece and TUI belongtogether

TUI Airlines

5 European Airlines

Flightsfrom D, UK, NL, B, S

21 GreekDestinations

TUI Hotels

6 Hotel Brands

34 Hotels

~20.000 Beds

> 1,7 Mio. Guests

Greece TUI’s2nd largest destination country

TUI Group No. 1 tour operator for Greece

fly.com

HapagflyThomsonflyJetairflyTUIflyNordicArkefly

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 12

AktiengesellschaftGreece withan outstandigtouristicimage

Source: TUI “European Brand and StrategySurvey2006”

Greece

Market Study“European Travel Attitudes”–Most attractivedestinationsworldwide

67%

28 Destinations: % of respondentswhofind thedestination„veryattractive“or„attractive“

1.10% 20% 30% 40% 50% 60%

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 13

Aktiengesellschaft

Source: TUI survey„Destination Images 2003“

Destination Image Study–Image-Profile Greece

Sights

Price Value

Security

Food

Entertainment

Service

Hospitality

Landscape

70% 80% 90% ...

Basis of Success

Performance FeaturesAccommodation

positive orverypositive evaluation

Furthergrowth potential via performancefeatures

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 14

AktiengesellschaftHard competitionamongdestinations

Hotels

New Destinations–New Concepts–New Capacities

Holidayhomes

Cruise ships

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 15

AktiengesellschaftDifferentiation iskey

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 16

AktiengesellschaftOptimal coverageof targetgroup needs& wants

1 W ellnessLuxuryHotel

Wellness, entertainment, families

1 ClassicalBoutique Hotel

Tranquility, service, spoiling

1 All InclusiveResort

Valueformoney, kidscare, entertainment

1 Club-Hotel

Sports, entertainment, socialising

One Location –Four Conceptions

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 17

AktiengesellschaftImage campaignsand supportingmarketingactions

2005

2006

Image Campaigns GNTO Supporting Marketing Actions TUI

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 18

AktiengesellschaftTargetgroup specificmarketing

Honeymooners

Villas

Couplesw/o kids

Connoisseurs

TUI AG | German-GreekCOC Athens | 21.09.2006 | Seite 19

AktiengesellschaftLookingforward to thefuture–Together!