TUI Shared Service Centre Enabling the Most Beautiful Time of the Year

Introduction Steve Newman  Director – TUI Finance Centre, TUI Northern Europe Sandy McNair  Project Manager, Deloitte & Touche

TUI Overview Airline SHG TUI Northern Europe (TUI NE) is part of TUI AG, the largest tourism and services group in the world with revenues of €22.4bn, employing 80,000 people in 500 companies around the world. TUI NE consists of the 3 core business divisions. Retail/Distribution Employees UK airports with 32 Aircraft Employees Hotels & 4.8m PAX Employees 6000 ~1000 Shops & 7 Call Centres Tour Operator

TUI Vision for Finance Shared Services  Deliver greater value from Finance  Support the changing business and drive integration  Increase consistency of reporting and allow Management a clearer view of group data  Opportunity to implement best practices and standard processes, where possible  Opportunity for faster and more comprehensive upgrades     TUI driver? 

SSC Business Model TOLCICS SSC Business Model

To deliver a best practice single site Finance Shared Service Centre supporting TUI Northern Europe and Britannia which utilises Oracle 11i financials and existing finance systems, and delivers e-procurement across TUI NE and BAL in line with the approved Business Plan Project Vision

Finance & Procurement Platform Drivers The implementation of the Enterprise platform represents an opportunity for TUI to meet many of the business imperatives envisaged for integration of the group. It provides an opportunity for functional consolidation ability to leverage and standard set of processes, a enabled by Oracle applications. Finance  Changing business model to optimise group business performance  Reduce administration and finance costs across the whole group by realising economies of scale  Eliminate duplication  Internally share best practices  Facilitate implementation of future changes in business operation and organisation Procurement  Process Standardisation with reduced procurement cycle timescales  Electronic approval processes allowing greater cost and budgetary control  Improved Management Information allowing improved negotiating position  Enabling Tracking and confirmation of requirements, order, invoices, thus reducing processing times and costs  Processing efficiencies

Enterprise Platform Support for Integration 80% TUI NE fit Training materials & procedures Process specialists in TFC Considerations Local business practices & legal requirements Support for Integration 80% TUI NE fit Hub & Spoke Integration Platform Oracle Single Instance Considerations Adherence to structures Maintenance co-ordination Design consultation Support for Integration Specialist Mgt Structure Accounting Capability Customer Focus Continuous Improvement Considerations Recruitment Multi-lingual resources Space Planning Support for Integration Standard structure Flexibility for Additional Requirements Support for Management Reporting Solution Considerations Compromise on local requirements Support for statutory charts

Project Enterprise – Delivering the Vision Shared Services & Oracle 11i SSC Site Selection & Development Document Scanning Hotel Payments Project Travel Accounting System Banking Provider Selection Source System Integration Internal Support & Hosting Project Management & Change TUI Infotec Internal Service Provider MQ Series Integration 170 Systems & Internal Teams Source Systems Developers

Methodology to enable the Implementation SSC Design Site selection & Facilities Preparation Design SSC Operating Model Define & execute transition plan Change Management Define SSC Cultural Requirements Deliver Communication & Training Assess Knowledge transfer & organisational readiness Programme Management Manage Framework for Integration & Control of all project components Active Sponsor & Stakeholder engagement Risk Management & mitigation Pre-configured reference environment (R11i) Solution definition (processes, setup, user guides, etc) Rapid implementatio n methodology iTrac Implementation Tools Process confirmation using template for SSC Process Design Local Design to focus on value add for specific unique business processes Configuration, Testing, Training utilising “out of the box” tools

Implementation Approach Stage 1 Stage 2Stage 4Stage 3 Model Office & Planning Design & Build Pilot Implementation  Model Office Confirmation  Gap Analysis  COA & Business Data Design  iProc Supplier & Catalogue Analysis Subsequent Rollouts  Utilise Model for further Roll Outs Programme & Change Management Shared Services Design & Delivery Technical Integration  Global Design  iProc Supplier Rationalisation Process & Application Model Built on iTrac ~80%  Local Design  iProc Catalogue Roll Out Local Requirements Built ~20%

Core Solution Components Self Service Purchase to Pay Order to Cash General Accounting Oracle ADI & Cognos Reporting Tools Document Processing Solution Front Office Travel Accounting Engineering & Flight Costing Invoicing Customer Relations Refunds & Comp. Payroll Revenue Accounting Voucher Management Bank Statements Processes AR CM iEiP PO AP GLFA

Organisational & Change Business Consolidation – changing structure of support Internal technical skills – knowledge transfer required Reliance on third parties for infrastructure changes Process Data Quality – source systems & mappings Source Systems – No concept of DR or CR Business Change & Technical Challenges Organisational & Change Business Consolidation – changing business structure HR Records – no one repository Autonomous Businesses – resistance to change Process Purchasing Compliance – enforcing raising of POs and user education Management Reporting – changing culture of reporting on Excel Business ChallengesTechnical Challenges Key Process Design Decisions  Standard Process Adoption - result in few customisations or workarounds, that in turn reduce the delivery time & cost  Standard Chart of Accounts - provides efficiency in consolidation, reporting and maintenance of application configuration !

Why Oracle? Track Record in Shared Services Solution Scalability & Integration Supportability – In House Expertise Flexibility of Multi-Org & Data Model Strength of iProcurement Platform

Benefits Achieved TFC Live and delivering “Value Added Service” to business partners!  Best practice processes in place – with basis for continuous improvement  Common Chart of Accounts & one source of the truth in place enhancing business analysis  Enhanced reporting delivered with significantly reduced effort  Scaleable common Financials platform – robust basis for subsequent roll outs     Achieved? 

Questions & Answers Steve Newman Director – TUI Finance Centre Sandy McNair Project Manager