AGM 2020

Feb 11, 2020

Slides

Ladies and gentlemen, in my capacity as the Chairman of the Supervisory Board, I'm here with opening this year's ordinary shareholders meeting of TUI Acting Zurcher. To begin with, I would like to welcome you very heartily on behalf of the Supervisory Board and the Executive Board here in this TUI arena. My greetings are also extended to the representatives of the media who are present here today. I would like to thank you for your fair coverage in the previous year, which in addition to our own publications provide a very important source of information for all our shareholders. Then I'd like to welcome Doctor. Schneider, the Head of our Legal Department, who's going to assist me during the meeting and notably Doctor. Hub from Hanover, who's going to assist us as well. Then for on behalf of almost 70,000 colleagues of our company, I would like to thank those of the colleagues who are present here today who are going to support us during this annual meeting. Please accept the gratitude and the thanks of the Supervisory Board, the Executive Board and all our shareholders on behalf of your colleagues. I'm now going to continue with some formalities. All the current members of the Supervisory Board and of the Executive Board are present here today. In addition, I would like to welcome Mrs. Karanya Kurfez, who is to be suggested for election on to Supervisory Board under Item eight of the agenda. Mrs. Karanya Courses is going to present herself after the report of the Supervisory Board. Unfortunately, Mrs. Arnold cannot attend due to the fact that she has an appointment, which has been picked a long time ago, but we are going to present her in a short video cast. I would now like to continue with some more formalities. Today's Annual General Meeting was convened in due form and time of publication, the Federal Reserve on the 01/22/2019. The legally required notifications to shareholders entered in the share register and to banks and shareholders associations pursuant to Section 125 of the German Stock Corporation Act was sent to you by TUI's IG shareholder service were also published on our website. From the day of the invitation till today, the following inspections have been available in the offices of the company: the adopted annual final statements of TUI AG with the Executive Board's proposal for the appropriation of retained earnings the approved consolidated financial statements and the combined management reports of TOE AG and the group as of 09/30/2019 the report of the Supervisory Board, which is also part of the annual report of 2019 the explanatory report of the Executive Board on the disclosures in accordance with Sections 289A Section one and 315A Section one of the German Commercial Code of 2A for the financial year 2019, which is also part of the Annual Report for '19. The report of the executive report under resolution proposed under Item six of the agenda concerning a new authorization to acquire and use treasury shares with possible exclusion of the subscription and tender rights as well as the possibility of redeeming treasury shares, including by reducing the share capital. The invitation to today's Annual General Meeting together with the agenda and proposed resolutions of the Management Board and Supervisory Board. No. These documents are also available here today at the front of the table seen from my point of view down right in front of the podium. In addition to other documents to be made accessible, were also available on our website as soon as the invitation was published in the Federal Gazette. The company has not received any requests for supplements to be announced. Now a counter motions on the agenda items three and four that is resolution on the ratification of the actions of the members of the Executive Board and resolution on the ratification of the actions of the memory of the Supervisory Board. Counter proposals have been announced by the Umbrella Association of Critical Shareholders, which were made available on the company's website. Other countermotions or election proposals have not been received. Now ladies and gentlemen, it will take some time until we will be able to finish the list of shareholders and shareholder representatives. I will announce the attendance after the completion of the list. The directory can then be viewed at the front of the speech table at the bottom right in front of the podium from my point of view and electronically at two PC terminals until the end of this meeting. Both PC terminals are on the first step. Level 1 PC terminal opposite the Investor Relations counter, the other PC terminal between the catering outlets. Now the attendance record will be continuously updated. I would like to give you some further information on the proceedings of this annual meeting. While I am speaking and the speeches of Doctor. Youssef and Dyszakonik, there will be a live stream on the Internet. Photo, film and sound recordings are not permitted in order to protect the shareholders' personal meeting during the annual meeting. I would also like you to switch off your mobile phones, please. Food and beverage is offered in the area directly in front of the hall on the 1st Level where you can see the sign catering. Smoking is not permitted. For smokers, we have a designated smoking area in which the speeches are transmitted via late speakers. The smoking area is located on the terrace on the 1st Floor behind the catering outlets. Now from a legal point of view, the meeting area includes this whole, the accessible area on the 1st Floor up to the presence check as well as smoking area. Now the proceedings of the meetings are transmitted via loudspeakers into the meeting area outside this hall and into the back different items on the agenda, please use the required forms. If The forms are available for you at the request deck seen from where I am on the right hand side in front of the podium and must also be returned after their completion. If you want to save yourself the trouble, our staff present here will be happy to forward your request to Sperd. Please fill in the agenda items which you want to refer to on these forms as well as your name and place of residence, the number of your attendance and voting record printed on the front of your attendance and voting record at the bottom left and the question you want to raise. If you want to hand in the motions, I would like to ask you to submit them in writing with your request to speak. All the questions that have been prepared in writing can be handed in advance at the speakers' desk, but you still will have to ask the questions later on or rather. In order to make sure that the attendance list can be updated until the very last votes takes place. We would like to ask all shareholders or representatives of shareholders who would like to leave the presence area to leave a power of attorney either for a shareholder or a representative of a shareholder or any other representative or to deregister. Now the on how to proceed with the votes of the agenda is something I'm going to explain later on. Just like we did last year, this will be done by way of tablets, which will be used instead of voting cards. Now the voting right can be exercised in person. Or if you want to leave the meeting in advance, you can leave the proxy to either a shareholder or shareholder representative. For this purpose, you can get a form which you will get at the prescription counter. In order to make sure that we will always know what the attendance is, we would like to ask you to leave the meeting room only if you authorize a third party with your proxy. All other information as far as the general debate is concerned will be given later. All information can also be found on the form that was given to you during the presentation process. Thank you very much for listening to me. Now we are going to process the agenda. Ladies and gentlemen, I'm going to process as follows. All the items will be discussed in one general debate. After that, the resolutions on the motions will be taken on the individual items of the agenda. I'm now going to process one item of the agenda after the other. And Item one, presentation of the approved annual financial statements. As of September 2019, the approved consolidated financial statements and item of the Agenda two, resolution on the use of the net profit available for distribution. Agenda Item three, resolution on the proposal of the actions of the Executive Board. Item four on the agenda, resolution on the approval of the actions of the Supervisory Board. Item five, resolution on the appointment of the auditor. Item six, a resolution on a new authorization to acquire and use own shares in accordance with Article 71 with potential disapplication of preemption rights and rights to tender shares and the option to cancel own shares, also with reducing the share capital. Item seven, amendment of the charter. Item eight, election of four Supervisory Board members. That is Mr. Vladimir Leukin, Mrs. Colleen McConnell, Mrs. Maria Grania Costas and Mrs. Ingrid Helen Anholt. Item nine, resolution on the approval of the remuneration arrangements for the Executive Board. On Item one, you have the approved annual financial statements as of September 2019, the approved consolidated financial statements, the summarized management and group management report with a report explaining the information in accordance with Section 289A1 and Section 315A1 of the German commercial page and the report of the supervisory book. According to Section two seventy one has approved of the group's management board and the approved and the consolidated financial statements. This means that for the business year from the 10/01/2018 to the 09/30/2019 has been approved. Now on Item two of the agenda, that is the use of the net profit available. The Executive Board and Supervisory Board proposed for the financial year that was ended on thirty September twenty nineteen, that is EUR 1,286,000.76. There should be a dividend of EUR 0.54%, a 32.8 share carrying dividend rights and the remaining amount of EUR $1,176,000,000.000750526 thousand to put forward to new account. Before I'm going to give the floor to the Executive Board and then will give you the floor to ask some questions and to make some statements, I would like now to present the report of the Supervisory Board plus talk about the remuneration system. The report of the Supervisory Board has been printed, and I would like to concentrate now on some of the main points in this report, ladies and gentlemen. Now after four very success And there are two key insights. The strategic transformation and And we are now able to respond to unexpected events and insecurities in connection with Brexit. And we are actually able to put up with the grounding And nonetheless, we have been able to achieve a very solid growth. And then the disappearance of our competitor, Thomas Cook, means that we must not rest on our laurels, but in fact, we must continuously work on our development. And in this connection, I'm very glad to say that Mr. Huyssen, who has really been a driver of all these transformation processes, has renewed his contract by five years. And we have also been able to renew the contract of our IT or CIO, Mr. Frank Rosenberger. And in the framework of the Supervisory Board report, I have reported about the work of the Supervisory Board and its committees in great detail. And I would like to make use of this opportunity to talk about the changes in the Supervisory Board and also adjustments in the remuneration system. As you can see from the invitation under Item eight in the agenda, the Supervisory Board now has four Supervisory Board members to be reelected. And, after Colin McConver and Mr. Vladivier Lukin, they, already are part of the Supervisory Board after Professor Mangold, then had stepped down from his office. Mr. Vladimir Lukin, was appointed by the court in June 2019 as a member of the Supervisory Board. Mr. Lukin, you know him already since he'd been a member of the Supervisory Board in 2014. And well, we also agreed on an age limit for the reelection or election to the Supervisory Board, and thus, Mrs. Kang and Ms. Goodin are not standing for election this year. I would like to use this opportunity in order to thank both for their valuable work and their valuable contribution in order to complete the merger and the cultural cooperation between the two companies. Truly nowadays is not a German British or British German operation, but it is a truly international group of companies. As new members, to the board, it is Mrs. Helen Arnold and Ms. Garania Korses who have been suggested as new members. As you can see from the invitation and their CVs, they have international experience and comprehensive experience in digitization and transformation of work in the Supervisory Board. After my presentation, these two ladies will be presented in more detail. Ladies and gentlemen, I would now like to talk about the adjustments and the remuneration system for the management board. As you can see from the invitation and my additional letter to the shareholders dated December 1939, it's in the framework of the annual approval of the board compensation that adjustments have been applied after we had done that at the beginning of the business year 2018. You may have been wondering why we have readjusted the system. Well, the degree of target attainment has led to the fact that no payment in terms of variable pay was made. And with a view to the profit and share price development in the past years, this is basically no problem. But as you can already see that the LTIP, from today's point of view, will not lead to any payments in the next three years. You can clearly tell that the adjustments made in 2018 have even reinforced the systematic weaknesses of the compensation system. And it is important to have a long term variable pay that and it is not justified to have a system that does not allow for any payments if the management work is done and if the strategic decisions have been clearly correct. Well, and we have a problematic retrospective perspective of the current three LGIPs. And thus, for the future, we will need a new system that offers opportunity to actually receive a payment if ambitious goals have been reached in the next four years. So what are the actual adjustment that we have applied in the current remuneration system? As opposed to what has sometimes been written in the press, it is exactly the fixed portion of the pay that has not been changed. This has been described in Item nine on the agenda for today's meeting and also in my letter dated December 1939. So it was not our goal to increase pay but to do away with structural mistakes. And well, there were the following adjustments. The key financial figures and benchmarks will be EBIT and no longer EBIT. And this will this is because EBIT or EBIT is far more common than anything else. Return on invested capital is something that we have extracted from the variable portion of the pay because this is a performance indicator that actually has a perspective across several years. With the cash flow, we have adapted the definition, and the cash flow will be the reference for the distribution of dividends in future. We are convinced that it is also in the interest of shareholders. The cash flow will then be in a stronger focus, and the cash flow before dividends will then also be shown in the annual report. As a component for the Board compensation, the cash flow will thus be more consistent and more transparent. Concerning the business year 2018, the target range has been narrowed from ninety percent to 110%. This already leads to a moderate change of the results in the sense of all or nothing. And well, this volatile development of the pay is actually desirable. And thus, we have, expanded the corridor again to the common corridor from 75 to 115%. And as opposed to the actual payments of the past years, no key changes have been have become apparent. But for the future, the adjustments should enable a situation where volatility cyclocicity of the business model can be reflected. At the example of Mr. Youssef, the business year 2017 should have led to a higher annual bonus of about €150,000 which corresponds to about 8%. In the business year 2018, however, the pay would have been 150,000 less, which corresponds to 9%. In the business year 2019, no payout would have taken place based on the new corridors. And thus, it means he will not be in a better position. And then there is another adjustment element according to Article 11 of the new German Corporate Governance Code. This code says that the Supervisory Board should have the possibility to take account of extraordinary developments to an appropriate degree. And this increase should lead to a situation where, in specific cases, a variable pay portion can either be retained and also reclaimed. This must be published in the remuneration report, and we have provided for that in the future. And I would also like to point to another adjustment. And at the past, in the framework of the nonfinancial goals, 50% of goal attainment has been defined and otherwise 25% for the general management and stakeholder objectives. The current transformation phase will be successful if the management board acts jointly across different responsibilities. And thus, the Supervisory Board for the current business year has received new targets in the nonfinancial sphere, that is sustainability, and employee engagement. And thus, it has attributed a higher importance to the stakeholder and general management goals. This concludes my explanations concerning short term variable pay. In the framework of the long term variable portion of the remuneration, we have a specific starting situation. As you can see here, there has been no payout in the business year 2019. Now a look at the current tranches. It is a cutoff date perspective as of September 30, that these tranches, based on their defined targets, the TSR and the EPS, led to a situation where no payout can be expected. We have analyzed the reasons for that, and we noticed that the ambitious goals from 2018 were even too ambitious from today's point of view. The tranche that would have been due for distribution is the one that should have been paid out in 2018 before the last adjustment was made. We have now decided that for the future, the goal of total shareholder return, TSR, should be eliminated altogether because in 42% of the disciplines of gambling, cinema and catering, these activities take place. Thomas Cook was no longer contained in the index since 2016. And for lack of relevant benchmark companies, no comparison is possible. After extracting TSR, we took a look at the targets for the EPS again, the earnings per share. And we are convinced that with an average growth of 5% per year, we have a very ambitious target, and we want to maintain it for the future. We are a growth oriented company. And on the other hand, we are right in the middle of a transformation phase towards a digital platform company. It is possible and not improbable that in the course of this large transformation, measures will have to be implemented that slow down the growth of the company for the short term but will lead to growth for the long term. We have thus opened up the lower corridor. So that increase by at least three percentage points per year is possible in order to take account of the long term developments. And then we have introduced a clawback clause. It means in the case of severe infringement against the corporate code of TUI or any due diligence, the payout of variable compensation can be reduced or deleted altogether or it can be reclaimed entirely or in part. Ultimately, I would like to talk about adequacy test in horizontal and vertical comparison. And the expert opinion of an external independent auditor shows that the remuneration continues to be appropriate. I would now like to welcome Ms. Garania Corses. Please join me here on stage. And in the meantime, I would also like to tell you that Mrs. Arnold has an important appointment that she already had before the nomination process, but we have a video message that we will display after Ms. Karanya Cosis has taken the floor. Ladies and gentlemen, good morning. It is a pleasure to be here. As a way of briefly sharing my experience with you, I'll start by saying that I've been in a world of technology, innovation and digital transformation for over twenty years. But let me also share that for me, digital transformation is about identifying opportunities and challenges, converting those into technical solutions, but making sure that you revert to the business, meaning that what is going to be the effect in the business when you apply technology and you go through digital transformation and how this is going to help sell more, save more or be closer to your customers. So this is, as I said, the way that I understand technology, I understand digital transformation in a moment in which, quite frankly, that expression could mean everything or nothing. I've been leading different groups, different companies, as I said, in the last twenty years mainly with Microsoft and Google in different geographies. I currently lead a division in Europe, Middle East and Africa. And in the past, I also led operations in The United States and Latin America where, on my way back to Europe, I also brought a husband from Guatemala and a son from Mexico. Finally, a note on this industry, on the industry where this company, your company operates, you know, tourism and travel, it's an industry that is very, very close and dear to my heart. For eight years, I ran Microsoft Spain. I am originally, from Spain. And as you know, tourism represents is a core for the country. It represents over 13% of the gross national product and I have worked and interact with almost every single group on the company that either operates from Spain or comes to Spain. With that, it is, as I said, an honor to be here, a pleasure to be here. And if I gain your trust to be selected to this Board, I commit to apply all my experience and contribute to my full of my abilities. Thank you very much. Mrs. Karanja Korset, thank you very much for your introduction. And Mrs. Arnold now will introduce herself in the video. Good morning to Hanover shareholders. I'm very sorry that I'm not able to be with you in Hanover, but I had an appointment prior to that. And I'm very glad about the opportunity to address you with a video message. I was born in Munich, and I am a proud mother of two wonderful children, a son and a daughter for twenty four years. I have been working for SAP in a very dynamic environment. And for several years, I've been a CIO in the board of SAP. For four point five years now. I'm setting up an entirely new business model in Silicon Valley concerning digital business model. I'm also on the Supervisory Board of Heineken. What do TUI and I have in common? We love to travel and we love to meet new cultures. From a technology perspective, it is also very exciting because digitization is changing the industry and TUI Group really has a big potential in digitalization and they have to leverage that potential in order to secure their future. So it's about digital marketplaces and business opportunities, open up new markets and to create new customer experiences. And I would love to make my contribution to speed up tool developments and due to my operating experience and responsibilities in SAP. And I would link up the visits to Germany associated to that tool at the Supervisory Board meeting. And I would like to greet the Supervisory Board, and I would like to thank you for your nomination. The head of it and the whole Board have a good course of the Annual General Meeting. Thank you. Ladies and gentlemen, this concludes the report of the Supervisory Board. I like to thank the management board and the staff of the company, also on behalf of the entire Supervisory Board for the excellent work done in 2019. Ladies and gentlemen, I would now like to ask Mr. Yusen to give his report on the business of our company and the TUI Group. After that, Ms. Koenig is going to talk about the annual accounts of September 1339 and the report of the first quarter twenty twenty published today. Thank you. Doctor. Seska, thank you very much. Ladies and gentlemen, dear shareholders, I'm very pleased to be here today and to be able to speak to you to speak about the strategic projects of our company. And I would also like to approach the topic of sustainability because sustainability is exactly the topic which you can hear everywhere. And this is also one of the purposes of our company and one of the focuses of our attention. But let me first have a look back at last year. Now last year has been a year which was a very difficult year to cope with. There were enormous challenges to cope with. Doctor. Setscher mentioned it. He mentioned the B737 MAX, which I'm going to come back later on, the developments in the framework of Brexit, but also the insolvency of Thomas Cook due to the excessive capacity in the airline market. This has led to major distortions and disruptions. But at the same time, the tourism industry has grown above the GDP, and we, as integrated company, are very well positioned here. But let us now have a look at the figures. Our turnover last year rose by 2.7% to reach EUR 18,900,000,000.0. This means that we have grown much, much stronger than the market as such. And a company that's growing and even growing at a larger rate than the market provides us with a good baseline for further growth. We had, unfortunately, to cope with a drop in the operative earnings. We had to accept drop of approximately 26% to EUR $896,000,000. And this includes the cost of the Boeing MAX. Taking this amount out, we would have been able to reach the same record high that we reached the previous year. Now after the insolvency of Thomas Cook, it becomes behind us, and that's something that I'm going to cover soon. Now we have the 98 percent that is in line with the EBIT and the 24%. Nevertheless, we want to give you a dividend payment of EUR $0.05 4. And I think based on the 89%, it does make sense. Now due to the fact that the $7.37 is not longer available, I would like to discuss this with you. First of all, you can understand that the charges are high. Last year, was approximately EUR 3,000,000. This year, we just mentioned it this morning, we assume that this is going to be a major problem until the September 1. That means that this year, once again, approximately EUR $350,000,000 will have to be added to the loss. These are very high figures. But at least this year, they are within the figures forecasted. So that means it's something that doesn't come as a surprise. As far as operations are concerned, and this is something which is also important when you look at the operation, it means a major loss that we have to cope with this year. 55 airplanes will have to be replaced, which you will have to lease from the market or will have to buy in. Now as far as scheduled airlines are concerned, they have it much, much easier. Simply cancel a flight. This is something that we cannot do because our hotels would stay empty and our customers could not stop. Their holidays always say safety is everything. But of course, another thing which is very important is to keep to our flight schedule that is very, very important to us. But at the same time, it means that there is not much that we can change on a short term basis. So that means we have to cope with what is presented to us in terms of challenges, and we cannot come up with quick solutions. But nevertheless, I would like to establish the following thing. TUI is strong enough to cope with these dramatic effects, and that has not always been the case. The figures that I mentioned to you were figures that are gross figures, no net figures. That means that compensation payments by Boeing have not been used and are not in the pipeline either. But it means that the negotiations that are done at the moment are done with all seriousness. But at the same time, one has to admit that when cannot start with any speculations. Today, I was approached by investors and I was approached by analysts as well, and they kept asking me, now what is the situation going to be like? Because I couldn't answer these questions because this has something to do with protecting the interests of our company. We think we should start with the negotiations first and finish the negotiations and then talk about it. But we do not want to stop at the moment with and we cannot make any forecast because we do not know when the Boeing is going to be in the air again. But be assured that we are going to take these conversations very seriously. Now the third point, we are not going to have any strategic problems because we are continuing with the transformation of our company. And it really shows that this incident does not stop us to keep transforming our company. And the last item I wanted to cover is the development of operative earnings. When we look at the bookings, we can see that our business is now doing very well after the insolvency of Thomas Cook. When we look at the bookings for the summer, for example, which are very, very important, we are looking very well. That is that the turnover in the summer months, which enjoy very high bookings, we have a plus of 70%. And here, once again, this is very important. This is something which is sustainable in the long run. And this is why we decided we are going to invest into airplanes. If we didn't sell, we would not be able to get the market shares. Somebody else would be getting the market shares, and that would hurt us in the long term. This is why we are making an extra effort to make sure we can follow this direction further, and it's really worth our efforts. Now at this point, I would like to say to express my gratitude to more than our 70,000 people working for us because without their contribution, the financial year 2019 would have been much, much worse because when in March, we noticed that the seven thirty seven would not be flying. Everybody thought that the problem would be overcome very quickly. But as you know, machines the machines were not available for the whole of the year, and that meant that we had to do some additional planning, that we had to look at how we could procure additional capacities. But at the same time, we have to say that the market was really very tough to deal with. But I believe that our team has grown closer together, and they came up with solutions on behalf of our customers, which benefited the customers, and they showed high ethical values and a lot of commitment. And I think this is not something that you can take for granted considering the context they had to work with. I'm really proud to see that the NPS that is the number of recommendations we get from our customers was increased to 56%. And of course, it was due to the contributions of our staff. Our staff are our brand. Our staff are TUI, and they did very, very well that year. I would like to thank you at this event very, very much for what they've done. Also on behalf of the Supervisory Board and I think on behalf of all of you, thank you very, very much. Now let's have a look at the individual areas of business. First of all, hotels and resorts. There has an increase by 8% to €452,000,000 The average rate per bed has been increased by €3 This is our main driver, and we are very proud that we are 30% above the average in the industry. That means we don't just have a profitable growth. But when we look at our competition, we have a very lucrative hotel companies. I'm going to come back to that when I come to the strategy. The same applies to cruise liners, where we were able to increase our EBIT by 13%. All companies have contributed to this increase. The average rates despite the fact that the capacity was increased considerably remained stable. And here, once again, in this line of industry, we are approximately 40% above the medium of the industry. That means the most successful cruise companies are working with us. Now if you now look at destination experiences, that is all the activities that people can book when they go on their holidays. You can see that this area is one of the growth drivers in our portfolio. The number of excursions sold and other activities sold was doubled last year that has something to do with organic growth, not just with organic growth. You will remember that we bought in additional companies now on an operative level that is without the ramp up losses. So you remember the platform that we started with, the digitized platform, our earnings was 44% above previous years. Now if we increase the ramp up losses, it was still more than 20% here. We will make sure that we can ensure that we do not talk too much about profitability because the global market is a little bit sustained. And if you want to consolidate on a global level, we have to grow and we have to grow quickly enough. This is one of our main strategic targets that we want to reach. Now then the market of airlines. First of all, we were able to maintain and even improve our leading market position that is the dues that is the increase in due, but then was the problem with the MAX seven thirty seven. But in addition, there was the competition, which was very tough. Altogether, the earnings were increased excuse me, the earnings were decreased by EUR $293,000,000. So you know exactly what the problem is, and I am going to cover this later on. Now the excess capacities was the reason why Thomas Cook could not cope. It is the problem that they looked exactly like two year. And we simply have to define a proper strategy to make sure that we are not going to end up as one of the dinosaurs in the industry. And of course, we thought about this very carefully today. Nobody can compare with us because today, 80% of our profits are based on cruise liners and hotels. But nevertheless, we cannot just stand still. We have to move forward and try to do more. And this is why I would like to talk now about our strategy. Now first of all, what is the baseline? We are the market leader in those markets where we are working. We make sure that we can offer the activities for 21,000,000 customers. That means we are a major player. We are working in the tourist industry, and these are markets which offer a lot of potential for growth. We have a turnover of €800 per customer, much, much more than the cheap airliners. And this is really very important when it comes to look at acquisitions because very often, this has the acquisition and the turnover that comes with it has not always something to do with the profit. So this is a good brand that we have. We can differentiate through our product portfolio and have a high profitability when it comes to hotels and cruises. I just gave you the benchmark figures, 30% against our competition or 40% against our competition. And what is so good about it is that we do not do that by having high prices, but we do so as a rule by having a high demand. That is we are just better suited to achieve vertical integration. We have a lot of customers in many different source markets. For example, we have more than 80% or 85% of capacity in our beds and on our hotels. And of course, that is very important when it comes to the cruise ships. It is more than 100% of the capacities which are being utilized. So this is good. This is within our system. So that is very good. You could say, well, this looks good as far as our strategies are concerned. Nevertheless, there are four areas where we have to work on. The first, feel that we have to do something has something to do with markets and airlines. That is where our markets are where the Boeing is situated. What we have to do here is to try to maintain our market share or even better say, try to enlarge them. And this will only be possible if we are able to have competitive costs and that we will never get into a situation that somebody comes up with prices which are below our cost level so that we can no longer compete with everybody else in the market. We have a very good cost position, and we have to make sure that we can come up with innovations to make sure that the changes in the demands of our customers will be reflected in our offerings. My David Burling and Frank Rosenberg, my colleagues, are in charge of the marketing domain transformation. They are doing that. They are making sure that all systems and all processes across all markets are built together so that they can be implemented in the global cloud. Is, we make it available in the global cloud. This is a project which is supposed to be implemented by mid next year. This is the largest transformation process within the history of our group. But what's important here is to make sure that everybody feels part of it and to make sure that this change is being implemented in such a sense that it has a positive effect on our team. This is, of course, a major challenge for ALLETE for ALLETE and everybody else. Now let me explain what I mean when I talk about cost. Let me explain to you what I mean when I talk about innovation. At the moment, we spent EUR 20,000,000 for web and back end software. That is the software which controls tui.com, EUR 20,000,000 a year for six markets. The largest markets where we are active is that is The UK market. This accounts for six of these 21. And in other words, if we did it all at once in a standardized fashion, the innovation speed could be doubled, let's say, from EUR 6 to EUR 12 and still save it for about 50% of our cost. So as you can see, this is something which is absolutely feasible. You simply have to do things. Now the second point I wanted to mention has something to do with innovation here. We want to have a very personalized approach to our customers. We have a customer relationship management system, CRM system, where each individual customer has its has their profile, and that means that they receive e mails with offerings of which we think they may be more interesting to them than just an average standard offer. And that really does work very well. Now these systems have to be changed so that they become real time feasible. What does that mean? If you don't want to continue with the e mails, but if you want to use an app in the future, it means that you've got this customized offer. The customer looks at the offering and responds, of course. That means that you've got the full attention of the customer, focusing on the offering as soon as he responds. And if he can respond in real time and come back with a good answer for the customer in real time by trying to sharpen the profile of the offering or for something in addition, of course, it means that you have made the best of the attention of the customers. You're not able to respond in real time, and it takes you some hours before you can process all this information, the customer has put their mobile phone aside. So that means that it's going to create a real big advantage for us if we can do so. But at the same time, it means that it requires high investment. If you wanted to do it sixfold in different markets, it would be much too expensive or you would simply not invest at all. So once again, I just wanted to point out that it's not just something about cost, but it has something to do with investment. You simply have to make sure that you've got standardized systems that you build only once and implement in a global cloud. Now let's have a look at the second item of the strategy that is hotels and cruise ships, assets rights. What does that mean? We have 400 hotels and more than 400 hotels and more than 18 cruise liners. I mentioned it earlier. And I said that we are very successful there. That means that the profitability across our industry is really very high. What we are doing at the moment is that we want to consolidate our brands in order to improve our profitability and to speed up growth. We want to invest only if we really have to do that. That's what we call asset light. If you don't have to invest, we would rather have a look at existing hotels and then try to incorporate them into our brand. A good example is the consolidation of Hapag Lloyd in Tui Cruises. This is something we announced last week. Now each company on their own would not have been able to grow Tui Cruises simply because they do not have the capacities for the shipyards for these large cruise liners. And Hapag Lloyd, because this is a brand which is only available in the German market and is a luxury brand. And you could destroy any luxury brand if you've got too much of a capacity. So that means this brand has to grow on an international level, and we cannot finance it on through our balance sheet. Now we are now going to integrate Breast Brands that we both now have the potential for growth and can, at the same time, produce a lot of synergies of more than €300,000,000 And at the same time, this transaction is going to give us additional cash. In the final analysis, this means that if we merge those companies, we will have more assets. We will grow much, much quicker and we will produce more synergies. And this is really a very good asset drive business. Now let's have a look at the hotels. Here, the team surrounding Sebastian Hebel is focusing on Rio and Tuohy Blue. I think of Robinson, for example, and Medit Life. These are individual hotel portfolios. Here, we have 100 TUI Blue hotels. Last summer, it was only 10. What we want to achieve is to open up this system to third party hotels. That is we are going to open up the branch to hotels outside the TUI Group and market it to them, and we hope to be able to grow doing that. We are not going to primarily invest into real estate and hotels, but we just want to invest in improving the standards. That means that the 21,000,000 customers in our source markets and the brands are so attractive these days that third party hotels are really interested in becoming a member of the Tui group. Now when we look at the booking system that we're using at the moment, Amadeus, we decided that we need to add two more components, which are already part of the road map. And they are so interesting for the hotels that by looking at the brand and the 21,000,000 customers, they think they would like to work together with us more closer. And what we want to do in order to achieve this is build a kind of Amadeus platform for itself. How do we do this? We will have two platforms. This is a GDN, a global distribution network. And the second one, a PMS, that is a property management system. That means that is a system which helps you to manage the rooms that you have in your hotel and helps you to commercialize them. Now let's have a quick look at these two components. GDN, the global distribution network. Here, we focus on source markets where we don't have any history, that is not in England and not in the Nordic countries, but China, Brazil, Malaysia, but also Spain and Portugal. Because in Spain and Portugal, they've always been there, our target markets, but we never had Spanish guests who we booked their holidays for. So this is now going to be part of the distribution system. And as far as the function is concerned, this is going to concern the markets where we can market hotel capacities. When we look back at our history, we always had a full package deal, and we sold everything as a package deal. But what we want to do now is to offer individual hotel rooms, for example. So next weekend, there's a room that's going to be available. How do I get a customer to fill that vacancy? Now with the help of this platform, which, by the way, is a cloud based platform and AI based, this is something that I mentioned 2017. We want to enlarge this platform. Now the second item is a property management system. This is a system which offers completely different type of products. It is based on the accommodation for night. All the other systems are based on room categories. For example, you can book a room with a sea view or something else. It is very easy when you go on a platform like Book and say, I would like to have a room with a sea view or not. But everybody knows that not every room simply is the same simply because they have a sea view or they have a garden view. And this is why we now want to differentiate our marketing and concentrate on each of the features of each room. Each room can have a different price. We can say, well, each night in a room can have a different night. Now what is the advantage of doing it that way? Now for us and for the customer, it will have advantages. I will give you an example. If you have a hotel and you know that a room is sold for €100 they know still there's one room left, which is empty. But the manager of the hotel doesn't know, had it been possible to sell the 10 rooms for 120, I would say seven of the rooms he could have offered for 120. So that means that €20 per night for each of these rooms are wasted. So if you are able to come up with a differentiated marketing so that each individual room has a different price level, then of course, there's the opportunity for the hotel manager to make more money. The question is why should the customer be prepared to pay more? There must be an advantage for the customer as well. And that shows you that there's also some benefit for the customer, which we have at the moment for the three blue houses, for example, 13% of our customers buy a room that they a special room that they want to have. Like, for example, I want to have the Room 31 because it has sea view. It is very close to the beach, for example. If the customer is disabled, they want to have a room which is located closely to the elevator. Or if you have a room, children's club somewhere, you want a room which is close to the children's club. So this is a specific request that the customer can make. And at the moment, it's an extra of EUR 15 per night in per room. Of course, I have to be able not to market categories but to market these rooms for what they are. We have hotels which have categories of rooms based on what I just explained, a sea view with a sunny in the morning or a sunny in the evening. Who would have thought of that before? But if you give the opportunity to the manager to do that because he knows that people like the sun in the evening, then it's something that you can do. And then I spoke to another manager recently, and he would say that you have a room which is close to a restaurant that people don't like. But he came up with a category where he said, we will have a baby phone which is going to be covered when you are at the restaurant. I think this is another aspect that you could market, and you become much, much more inventive if you have individual categories for the different rooms so that each room becomes a marketable object. And this is possible with a system that we have with 21 customers with a global distribution network, which can actually cover all the markets worldwide and supported by a software, which makes it possible that you have a much more differentiated approach to the sales of the rooms with all the which is much better than categories. We think this will help us to gain a major edge in the market. Now the last item has something to do with our platform, 1,000,000 things to do. At the moment, we have a market for $150,000,000 That is percent increase, 350,000 offers. We are now going to consolidate the market. And as I just mentioned, we are now going to make sure that we concentrate on our destination experiences to drive growth. We have a very good benchmark that we start from, which other competition doesn't have. That is our advantage as compared to the competition. It's always important to have some advantage as compared to the competition. We are not starting from scratch, but we do have 21,000,000 customers. We sold 10,000 activities in this area last year. We're already leading, but of course, we want to grow more. Now the second point, as a rule, the customers book well in advance. For example, if you have somebody going to Egypt, they know we know that four months in advance that this customer wants to go to Egypt, we can already start with the marketing of our activities where as our competition is still sitting there waiting and hoping for customers to book their hotel rooms. They don't know that, but we do. And another thing is we do have 10,000 people locally. And if you don't just sell standard tickets for museum access, for example, like, for example, a hot balloon ride in front of the Atlas Mountains, then you want to make sure that this is assured locally that this exists and that will help you with the sales. So we believe that these three aspects will help us to give us an edge Our of our competition in the market will help us to consolidate globally. Now all in all, we hope that the 21,000,000 customers that we have now will be increased to 30,000,000 customers. And not only when it comes to events, but we take the whole package that is cruise ships, hotels. And so on this growth, it's mainly supposed to be an organic growth, and it requires a certain amount of investment. Of course, we want to be very conservative when it comes to our balance sheet. That means we want to reduce our debts. We have a specific allocation strategy, which is going to be covered by Birgit Konex soon, will help us to achieve this. And I think that's why the new policy of a dividend payment makes a lot of sense because it will help us to achieve all the different targets that we have set ourselves for the transformation process. Now let me have a quick look at sustainability. Sustainability is very important. It's very important for our line of industry. It's important for our company. And as you can see here, when you look at individual tiles, you can see they are all based on the UN sustainability development goals. So that means we did not just come up with an imaginative framework, but we rather decided to use a framework which is already employees. So make sure you speak the language that everybody understands. So this is our framework. And this framework tells us there is an ecological sustainability and economic sustainability and ecological sustainability. And this framework also tells us if you look at one sustainability, one type of sustainability, you have to have the other to two. So somebody whose only interest in food is not going to look in at the environment. Somebody who's not who can have a career is not going to look at what effect it may have on the environment. So I think it's all very it's really very important that we look at all of these different aspects together. And if you now see what this means for tourism, it becomes evident very, very clearly that tourism in this context can be very, very sustainable. Here, this is comparison between Haiti and The Dominican Republic. Now those two countries are based on the same island as you can see here. Now this is in the Caribbean. That is the island which you can find these two states, and they have approximately the same amount of population, roughly 11,000,000. The only difference is that one of them have me, 6,200,000 tourists and the other have 470,000 tourists. That is the main difference. Now look at the individual categories, which are listed here. That is poverty line is reduced, income is increased, education is improved, The infant mortality rate decreases. There's better access to medical care. There's better access to clean water, and that is important. The population is happy, much happier than before. And then when you go to the bottom of the line yes, to the bottom of the line, you can see that is really the thing which may come as a big surprise. Even the change in the forest areas is has been minus 20% in Haiti and in the other state where you have got all the tourism, plus 80. It has improved by 80%. And that shows something very clear. If you haven't got any food to eat, you fell the trees and to use them, but if you have tourists, nobody would even come up with the idea of felling the palms, which are so attractive for tourists and attract them to the island. So even if you look at everything from ecological aspects, and this is something that I did here, picking those two countries because it makes it very clear what it means. I could give you the same example for North Africa. I could give you another example, for example, for Cavuerde. All in all these countries, in all the countries where you've got tourism, where you've got a certain amount of investment, you have a certain amount of affluence. And in all of these countries, you will notice that people take more care of the environment. So that means that tourism search is sustainable. It makes sure that economic, ecological and social sustainability are assured. It makes it possible for societies to have a fair share in wealth. Without it, there would be a much larger discrepancy in the way of life between the people and also on a global level. I think this is something which has become very clear. Now let's come to TUI. Now sustainability for our company has always been a major factor in our company here. This is a page from our business report. Our sustainability strategy is not just concentrated on ecology, but it's also concentrating on the economy and social standards. We are making standards for the tourist industry. When it comes to social sustainability, for example, we founded the TURI Care Foundation, which was more than 30 projects in more than 25 countries' office training project that helped start us. For example, I recently went to Marrakesh. I mentioned a social entrepreneur who makes sure that children are taken off the street and trains them to become guides. So in Marrakesh, for example, in Agadee and Karuzut, this is not something which is highly sophisticated, you may think, but it's still something where people can have an income and make sure they can live. Now as far as economic sustainability is concerned, we are usually the largest investor in target areas to make sure that it's the proper base for the economy. In most countries, we are the partner who's been there the longest. If, for example, if you remember two years ago, there was warning against travel in Egypt. And what happens there? The Egypt authorities call us. They want to know what's happening because simply because we usually have a much, much better information about the situation because the politicians there are usually politicians there who put in their position recently, well, we've been working together with the Ibris Martin fifty years with Spain and Greece even longer. So that means that we have long standing interest and long standing investments. And so we always make sure that we have proper information. Of course, we make sure that ecological sustainability is also assured. For example, if you look at the left hand side in the top line, for example, we have the most efficient fleets in the world, and we are number four from all the fleets in the world. And of course, it has something to do with the fact that our airplanes are hardly ever empty, so it's a very efficient fleet. Now there's some there's also 83% of our hotels that have obtained sustainability certificates now. So if I just want to make a general statement here on this point once again. And this is supposed to be a contribution to this question. It's not supposed to be an excuse that we are not doing anything. I think we are doing a lot. And I'm going to tell you that this is something that we want to do continue in the future. We have a new 2030, Sustainability 2030, which I am going to cover next time. So that means that we are not going to let down in our efforts. As far as sustainability is concerned, I would like to say the following. If you look at this chart now, what you can see is the following. The CO2 emissions that is on the line on the left hand side and on the perpendicular line. And on the other line, you can see the gross the GBT. This is really a correlation between those two items. So that means that CO2 emissions are always in proportion to the wealth of a country. They are the highest for the people in Europe and Canada and in China, India and Africa. This value is the lowest, which you can see on the far left. And one must expect that while affluence will grow, emissions will grow at the same time, at the same rate. And this is actually happening if you look at the situation in these countries there because people want to live somewhere. They want to heat their houses. They want to eat. And just like everybody, and I must say, if I go to China, I can't tell them this is not something you should do. If it's something that you want to provide to millions of people, then you can see where the problem is. Now let's have a look at the last next graph, and let's look at the reasons for this. Now you can see that the main reasons have to do with the electricity, with electricity consumption, with road traffic, and these are exactly the areas where you have growth in China. But when you look at the air traffic, which you can see on the right hand side with 2.8%, this is really a small figure. Of course, that doesn't mean that there's no room for improvement. We will always have to renew our fleet. Now for each new fleet, you will have a reduction in CO2 emissions of 15%. And there's also something that we call the European air corridor, which is not that efficient because for twenty years, we've been trying to create a single European sky. That means that you don't have to go through different countries if you want to go south. That alone would cut emissions by 15%, so that means there's a lot that you can do if you want to. But here, once again, if you just look in Europe, if we want to reduce the number of flights in Europe and at the same time, look at the 160 airports that are being built in China or are in the pipeline of being built is not going to achieve anything irrespective of what we do here. It will not help us to reduce the CO2 emissions considerably. I think what we can do here is innovation. We need new fuels, not which are not based on faucet fuels with power to liquid, hydrogen. We do have new technologies, but the marketability, of course, is a different factor. It's still a very expensive product. We have to make sure is to support the marketability of this product. Maybe it makes sense to introduce a CO2 tax. But what we need in the final analysis is innovation. And as far as the air industry is concerned, what concerns the air industry is something something that that we have to do in general. When we come up with a solution, it has to be a global solution. It can only be efficient if we come up with innovations because we have to make sure that affluent will no longer be directly linked to the amount of CO2 emissions. And hydrogen can play a major part to replace a fossil fuels. The for the hydrogen production, you do need CO2. That means there's a certain amount recycling of CO2 involved in the process, and the hydrogen that you need has to be green and has to be produced as competitive cost that is less than EUR $0.02 per kilowatt hour. From the technical point of view, this is feasible. Only if we achieve such a figure will we be able to reduce the exploration of fossil fuels, like, for example, gas or oil. As long as hydrogen is too expensive, there will always be people who will make sure that they extract oil. And if it is extracted somewhere, anywhere, and we don't want to use it in Europe, somebody will use it, and it will be emitted into the atmosphere. That means that we need hydrogen for less than EUR 2 per kilowatt hour. That means we have to make the right savings, and we have to create the right context for innovation and make sure that we do not continue to bank on fossil fuels. I believe that hydrogen is going to be the future. I'm an engineer by training, and I've been looking into it for a long time. In our sustainability strategy 2030, we are going to look at efficiency, that means savings and innovation. Now to conclude, I must say it was a difficult year. Think two has done well, especially considering that our largest competitor became bankrupt. Now we are facing a new transformation process. We have to become a digitized platform company, a very demanding thing to do, but it will be successful. We have a team of people who are willing to do the best and who want to be successful. A strategy can only be successful in the long run if all the stakeholders are happy with what they are doing, that is the shareholders, the staff, the customers and the company as a whole. Now I concentrated mainly on society as a whole. We always have been a predecessor when it came to sustainability. I'm very, very proud of this. Want to continue to be a predecessor for new developments. And for that, we are working very hard. And now to conclude, I would like to thank in our company for what they have done because they are our brand. They're important for our customers. Without them, we wouldn't be what we are. And the same gratitude goes to our shareholders. So thank you very much for being part of our company, and thank you very much for being here today. Now I hand the floor to Birgit. Thank you, Mr. Jose, and hello, ladies and morning, ladies and gentlemen. I'd like to welcome you most warmly to our Annual General Meeting. As you know, the financial year 2019 was the first year in this position for me. Fritz Julesson already mentioned it in his speech, the impact of external factors on our business post particular challenges in 2019. The good news is that our hotels and cruise ships continue to develop very positively in the financial year 2019. And in contrast, our Markets and Airline division was severely impacted by the market environment and in particular, by the flight ban on the Boeing seven thirty seven, which was imposed in March 2019. Therefore, we had to adjust our earnings expectations in the financial year 2019 in two steps. On the 02/06/2019, we reduced our earnings expectations for the financial year 2019 to the level of the financial year 2018. The reasons were shorter bookings as a result of the hot 2018 and oversupply in the aircraft sector, a shift in demand from the Western to the Eastern Mediterranean region and the uncertainty around the Brexit and the weakness of the sterling. On the 03/29/2019, we again had to adjust our earnings forecast for the financial year 2019 to do the flight plan for the Boeing seven thirty seven. Unfortunately, we were unable to use this aircraft type for the rest of the financial year 2019. And this was this carried along one off charges for replacement aircraft, higher fuel costs, costs in connection with business interruptions and negative effects on the operating business. In total, we had one off cost effects of around €290,000,000 which resulted to reduction of the underlying EBITDA for the financial year 2019 of around 26%. Despite the persistent challenges, we met our adjusted forecast for the underlying EBITDA. For all other key indicators, we even achieved our originally set target. This applies above all to our free cash flow and our net debt. And also, our relative leverage ratio, so called group's leverage ratio, remains also within our long term range a factor of three point zero. And thus, it could enable us to largely affect the negative effect in the Markets and Airlines division. So let me now first present the key performance indicators for the financial year 2019. The underlying EBITDA of the EBITU declined by 22% to around €893,000,000 in the financial year 2019. On a constant currency basis, this represents a decline of almost 26%. And this development was in line with our adjusted earnings expectations for the financial year 2019. I've already mentioned the difficult market environment. Our holiday experience business, this means our hotels and cruise ships and also our, for example, range of excursions and activities continue to develop very well. Our diversified positioning enabled us to offset the normalized demand for our Spanish hotels by an increasing occupancy rate at our hotels in North Africa and Turkey. Our markets and airlines developed more weekly than originally expected. In particular, the flight ban on the Boeing seven thirty seven MAX resulted in a charge on burden of around €290,000,000 Group sales increased by 2.7% on a year on year basis to €18,900,000,000 and was in line with our expectations. Adjusted by the sales generated in the year 2019, the acquired Destination Management and Amusement turnover would have been at the previous year's level. The one off effects in the underlying EBITDA were around EUR125 million and met our expectations. And the group's net interest expense decreased by approximately EUR12 million to EUR77 million. As in the previous year, this figure includes also our one off interest income. We have eliminated these effects in both years to calculate the core earnings per share. So at €691,000,000 our earnings before taxes were around €275,000,000 lower. This was mainly due to the flight ban of the Boeing seven thirty seven MAX. The reported tax rate in 2019 has risen slightly compared to the previous year. This was due to the revaluation of taxes loss carryforwards. And the adjusted tax rate fell by a further two percentage points year on year from 20% to 18%. This is due to the further increase in the relative earnings contributions of the Holiday Experience division. And earnings from continuing operations reached around €532,000,000 in the last financial year. In the financial year 2019, the group had no discontinued operations. In the previous year, this item included income from in connection with the divestiture of hotel groups hotel bed groups. And in the year, important year, the share of noncontrolling shares shareholders in consolidated net income amounted to €116,000,000 and related primarily to the Rio Group. Two shareholders accounted for group profit after minority interest of €416,000,000 And at €0.89 our adjusted earnings per share show a decrease of 23% and thus follow the operating development in the year. So far, the notes referring to the income statement, and let me now briefly discuss our financial stability indicators. As you know, we use the cash inflow from divestments of noncore businesses to further finance our growth in the hotel and cruise business. As a result, the group's net liquidity reported at the end of the financial year 2018 declined in 2019, in line with our expectations. At the end of the financial year 2019, the group's net debt amounted to EUR 900,000,000.0. At a factor of three point zero, the debt to equity ratio is within the range that we are aiming on the long term. The slight increase in the factor compared to the previous year is due to the in particular, due to the impact of the flight band of the Boeing seven thirty seven MAX. Without this special effect, the debt coverage ratio would have been at the level of the previous year with a factor of 2.7 despite the continuation of our investment program. So the calculated equity ratio as of the 09/30/2019 was 25.6 and almost two percentage points below the previous year figure. The external rating of the group by the two agencies, Standard and Poor's and Moody's, did not change in the year last year. However, Moody's adjusted its ratings in December due to the uncertainty around the flight ban on the Boeing seven thirty seven MAX. And currently, we have a rating at S and P of BB and for Moody's, we have Ba3. And we both have a negative outlook. We are in a very good exchange with the rating agencies and have initiated internal measures to further strengthen our financial profile. This also includes our adjusted dividend policy, which will which I would like to discuss in the following chart. Of course, we cannot decouple completely from the development of external conditions. Let me first explain our dividend proposal for the last financial year and our updated dividend policy. Based on the dividend of EUR $0.07 2 per three AG share passed in the last financial year and a decline in operating earnings by almost 26%, we propose a dividend of €0.54 per share for this financial year. Okay. Against the background of the intended further transformation of the group, we have developed a new framework for our capital allocation. And this framework defines the order of priority as follows: first, we intend to continue to grow organically in our hotel and cruise business. And we also want to achieve this together with our joint venture partners. And secondly, we want to significantly expand our digital platforms, as Fritz Jussen has already set out. In the future, we want also to pay you as our shareholders a reliable and attractive dividend. The third pillar in our capital allocation is the optimization of our current investment portfolio, for example, through value enhancing mergers or acquisitions. A good example of this is the transfer of hapaglide cruises to Tui cruises, as already mentioned by Fritz Youssef. Should the group sustainably have more liquidity available in the future than is necessary to achieve the priorities, we will return this surplus to you as shareholders. At the same time, we will be disciplined to maintain a solid balance sheet. We, therefore, continue to aim for a debt coverage ratio of 2.25 or 2.3 times. Okay. Now the realignment of capital allocation offers to a group a greater flexibility. It enables investments in our strategic initiatives and future growth opportunities and an attractive dividend to our shareholders. At the same time, the framework is underpinned by a sound and robust financial structure. As of the financial year 2020, we will propose you a core dividend. The new dividend will amount to 30% to 40% of the underlying group profit, which will then be attributable to the 2AG shareholders, but at least EUR $0.03 5 per share. Our new dividend policy will lead to lower payout. But the lower dividend limit of EUR $0.03 5 per share will guarantee then a minimum payout. As our shareholders, you will receive this regardless of the tourism market environment. This is important. Based on the Jewish share price at the end of the financial year 2019, the lower dividend limit would have corresponded to a dividend yield of 3.3%. We are convinced that a core dividend combined with a lower dividend limit is an attractive and balanced dividend policy for TUI and you as our shareholders. Good. This brings me to the current business development in the first quarter of this financial year and to our assessment for the full year 2020. First, a technical note. I'm sorry. Like other groups, we are applying in the financial year 2020, the new IFRS standard 16 for the recognition of leasings. This is described in detail in the annual report. And since we will not retroactively adjust the figures for the past financial year 2019, we will always then disclose in the financial year 2020, for example, how the figures would have developed without the application of IFRS 16. For the better comparability, we have also prepared our guidance for the financial year 2020 without the effect of this new standard. And the this new outlook does not include, for example, then the sale of Harpak Lloyd Cruises to Tuohy Cruises. And starting in the financial year 2020, we will also be replacing the previously used earnings indicator underlying EBITDA with the adjusted EBIT, so without the A. In the first quarter of the new financial year 2020, the adjusted EBIT of the group increased by around €64,000,000 to a seasonal loss of minus 140,000,070 million euros This figure includes also, for example, an effect of €45,000,000 from the flight ban on Boeing seven thirty seven MAX. As expected, we have started weaker to the new financial year, but this was expected. And bookings for our winter program rose in the first quarter. As a result, our Markets and Airlines division achieved a stable result without taking into account the effect resulting from the flight ban on the seven thirty seven MAX. The previous year, we had also a positive one off effect from the unwinding of the currency hedge. This is included. The operating development is even clearly positive. The Holiday and Experience division reported in the segment of hotels and reports weaker results. This was mainly due to higher costs resulting from the increasing number of hotels in our own that we closed during the winter season. In the Cruises segment, TUI Cruises benefited strongly from the capacity expansions in the previous year, while Marella Cruises then reported a weaker development due to higher costs and also Hapagro Cruces due to shipyard stay. So now the outlook to the current financial year 2020. According to the as we have now strong trading in our different segments, we expect then a one digit of growth On the basis of the guidance, which we determined in 2020, in the beginning of 2020, then we would have then, for example, we're able to limit the burden, the costs around $220,000,000 And we would have then got, for example, and then €1.05 of income. And the effect of the MAX was already included there. Okay. Then the next slide. Due to the most recent declaration of Boeing, we have now tried to get replacement capacities. This corresponds then to the second scenario of the of our guidance in December 2019. And we included the additional costs for the flight ban here for the whole financial year, And we increased this from €25,000,000 to €220,000,000 up to €245,000,000 There's a small problem with the slide, Sorry. Zoe. Maybe I can continue. Maybe maybe it could could continue now. Furthermore, the complete costs of Boeing are not considered in this range as we expect that these effects will be also then compensated by the strong trading, by cost measures and also by a certain compensation of Boeing. As before, the range in the guidance includes also, for example, also an investment of 2 digits of millions for our development of our platform. And now we expect and expect an adjusted EBITDA of $1,850,000,000 to EUR 1,500,000.0. Please now allow me to make a brief comment at this point. The flight ban is a significant burden for TUI, which we cannot influence in the short term. However, what we can do as a company is to initiate countermeasures with the aim to minimizing the impact on the cash flow and our financial profile. And we are working on this with all our strength. And so our forecast also includes expenses for the expansion of our digital platforms in the mid- to high double digit million rate. These are initiatives which already have been presented by Fritz Jusen. Finally, a brief comment on the coronavirus. At present, we do not see any significant impact from the virus on our outlook as we have only minor activities in the affected regions. Of course, we observed these developments very closely in order to ensure the safety of our customers and employees at all times. The further development of the Tuohy Group in this challenging market environment, as expected by us, demonstrates the successful transformation into an integrated provider of holiday experiences. Our strategic positioning combines our own hotel brands with cruise brands and strong omnichannel distribution capabilities. And we are diversified across all markets and destinations. We will focus on this in the next year to become more competitive and selectively expand our Holiday Experience business and develop our digital platforms in new markets and destinations. Ladies and gentlemen, allow me to make a few comments on the authorization proposed to the Annual General Meeting under Item six. As in the previous years, we ask you to pass a resolution on the acquisition and use of own shares. This proposal for resolution is intended to safeguard the company's financial room for maneuver. Together with the existing further authorizations, we will be in a position to adjust our capitalization to financial requirements quickly and deflexively. The term of the proposed authorization pursuant to Agenda Item six is again to be sixteen months, but acquisition transactions under terms of debt agreements might only be concluded in the period up to the next Annual General Meeting in 2021. For the last twelve months, the company has not made any use of existing authorization and has not acquired any Tuohy shares. The Tuohy the company, therefore, does not hold any own shares. And under the new authorization, up to 7% of the share capital, but not more than around €29,500,000 of shares of the company, may be acquired through the stock exchange or by means of a public offer to the shareholders. The principle of equal treatment under the Stock Corporation Law must always be observed. Apart from the requirements of the Stock German Stock Corporation Act, the proposed resolution also takes account of requirements arising from the listing of the Tuohy share on the London Stock Exchange and the corporate governance standards there. This applies in particular to upper and lower limits to be observed for purchase price payment for the acquisition of own shares. There's currently no intention to acquire own shares. However, if the Annual General Meeting approves the proposed authorization, the management board will examine this the use of this possibility from time to time. And it will only be used if the management board is convinced that this is in the interest both of the company and all shareholders. As a matter of principle, the Executive Board will only make use of authorizations with the option to exclude the subscription right to issue new shares or to use previously acquired share treasury shares with the approval of the Supervisory Board and the strict requirements for the exclusion of the subscription rights set forth in the German Stock Operation Act are met. So we ask you to support this resolution. This purports sorry. So I'm sorry for the last slide, which did not appear. Thank you very much for your attention.