TUI AG (TUI) TUI AG: Q3 Interim Financial Report 1 October 2021
- 30 June 2022 10-Aug-2022 / 08:00 CET/CEST Dissemination of a
Regulatory Announcement, transmitted by EQS Group. The issuer is
solely responsible for the content of this announcement.
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Q3 Interim
Financial Report
1 October 2021 - 30 June 2022
Content
Interim Management Report
Summary
Report on changes in expected development
Structure and strategy of TUI Group
Consolidated earnings
Segmental performance
Financial position and net assets
Comments on the consolidated income statement
Alternative performance measures
Other segment indicators
Corporate Governance
Risk and Opportunity Report
Unaudited condensed consolidated Interim Financial
Statements
Notes
General
Accounting principles
Group of consolidated companies
Acquisitions - Divestments
Notes to the unaudited condensed consolidated Income
Statement
Notes to the unaudited condensed consolidated Statement of
Financial Position
Responsibility Statement
Review Report
Cautionary statement regarding forward-looking statements
Financial calendar
Contacts
^This Interim Financial Report of the TUI Group was prepared for
the reporting period from 1 October 2021 to 30 June 2022.
Interim Management Report
Summary
Q3 2022 with underlying EBIT of EUR-27m first broadly break-even
quarter post pandemic. Excluding flight disruption costs,
underlying EBIT clearly profitable at EUR48m. Q3 delivering further
operational and financial progress.
-- In Q3 we operated 82% of capacity1 with customers at 84% of
2019 levels, with Summer 2022 remaining wellon track to deliver
close to Summer 2019 levels.
-- 5.1m customers departed in Q3, an increase of 4.2m customers
versus the prior year. Our average loadfactor in Q3 continued to be
strong, at 92% for the period (Q3 2019: Load factor 90%).
-- Q3 underlying EBIT broadly break-even at EUR-27.0m, a strong
improvement of EUR642.8m versus prior year (Q3 2021: EUR-669.8m
loss).
-- Excluding the impact of additional flight disruption costs of
EUR75m, the Group underlying EBIT was clearlyprofitable at
EUR48m.
-- In Q3 Cruises and TUI Musement reported the first positive
underlying EBIT contributions since the startof the pandemic, in
addition to Hotels & Resorts delivering a fourth sequential
positive quarter, already back to2019 levels.
-- The combination of unparalleled industry ramp-up after the
COVID 19-pandemic compounded by a tight labourmarket, has seen the
aviation industry confronted with significant operational issues
and disruptions, resulting inthe increase of delayed departures and
flight cancellations. This has been mainly caused by third party
suppliersand airports due to a shortage in ground handling and
airports security staff, reliability issues with lease-inpartners
and supplier maintenance delays. As a result, disruption costs
increased by EUR75m in Q3, primarily due tosignificantly increased
FDC2 events in the UK, and costs introduced relating to
mitigations. In response, we haveswiftly introduced several
mitigations to improve resilience and customer experience,
including the doubling of ourstandby aircraft, active management of
third parties and increased TUI staff at key customer touch points.
Flightdisruptions during Q4 still remain at elevated levels and it
remains too early to estimate the impact for Q4 2022,however, we
expect these disruptions to normalise for future seasons.
We remain committed to operate the Summer programme with as
minimum impact to customers as possible. TUI Airline has carried
4.8m passengers3 in May and June with 96% of customers arriving
without any major impact4, despite operational issues at airports.
Cancellations are rare compared to other airlines, with less 200
outbound flights cancelled in May and June, representing
significantly less than 1% of the Summer programme.
-- On 30 June 2022, Silent Participation II of EUR671m was
repaid in full, plus interest due, to WSF (EconomicStabilisation
Fund). The repayment was made with the proceeds from the equity
capital increase in May 2022 and fromexisting cash funds. Including
interest, TUI repaid EUR725 m to WSF. Due to the continued strong
performance of theoperating business, the existing and currently
undrawn KfW credit lines were also reduced from EUR2.4bn to
EUR2.1bn aspreviously announced.
-- Significantly positive operating cash flow in Q3 2022, driven
by positive EBITDA and a significantworking capital inflow from
customer bookings.
-- Strong liquidity position5 of EUR3.9bn as of 5 August 2022,
post hand-backs of state support in April andJune 2022.
-- Continued delivery of our Global Realignment Programme - we
expect to deliver a further 20% of our EUR400mp.a. target cost
savings in financial year 2022 (EUR240m already delivered in
financial year 2021, with the remainderon track to be delivered in
financial year 2023).
-- We re-confirm our expectations to return to significant
positive underlying EBIT for financial year 20224and remain
committed to further reducing debt and German Government
exposure.
1 Available seat (risk) capacities
2 FDC Flight disruption costs for delays > 3 hours
3 4.8m passengers reflect outbound and return sectors
4 < 3 hours delay from arrival time
5 Available liquidity defined as available cash plus committed
lines including financing packages
Tourism - A force for good: People, Planet & Progress
-- Sustainability is top priority for CEO and Boards. The Agenda
will be presented in detail in Autumn 2022.
-- Highest standards: As an industry leader we seek to actively
shape a more sustainable future for tourismthrough highest
sustainability standards.
-- Science-based: TUI has committed to the Science Based Targets
initiative (SBTi) and has submitted hotel,cruise and airline
reduction targets for approval.
-- Blueprint for industry: We want to develop a sustainable
destination of the future with the Greekgovernment and Island of
Rhodes: Co-Lab Rhodes.
TUI Group - financial highlights
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. % Var. % at constant
currency
Revenue 4,433.2 649.7 + 582.4 8,930.8 1,365.9 + 553.8 + 545.7
Underlying EBIT1
Hotels & Resorts 104.9 - 70.3 n. a. 189.7 - 268.6 n. a. n. a.
Cruises 3.0 - 81.3 n. a. - 102.3 - 234.6 + 56.4 + 58.0
TUI Musement 13.8 - 34.7 n. a. - 15.7 - 96.7 + 83.8 + 83.4
Holiday Experiences 121.6 - 186.3 n. a. 71.7 - 599.9 n. a. n. a.
Northern Region - 93.1 - 289.8 + 67.9 - 445.7 - 708.1 + 37.1 + 39.1
Central Region 23.9 - 105.4 n. a. - 51.8 - 377.4 + 86.3 + 85.9
Western Region - 70.2 - 87.6 + 19.9 - 159.5 - 247.3 + 35.5 + 34.5
Markets & Airlines - 139.4 - 482.7 + 71.1 - 657.1 - 1,332.8 + 50.7 + 51.5
All other segments - 9.3 - 0.8 n. a. - 45.1 - 45.9 + 1.6 + 4.4
TUI Group - 27.0 - 669.8 + 96.0 - 630.5 - 1,978.6 + 68.1 + 68.5
EBIT1 - 42.5 - 748.0 + 94.3 - 657.0 - 2,046.6 + 67.9
Underlying EBITDA 180.8 - 448.7 n. a. - 7.7 -1304.8 + 99.4
EBITDA2 171.2 - 491.4 n. a. - 14.2 - 1,322.9 + 98.9
Group loss - 331.2 - 939.8 + 64.8 - 1,039.1 - 2,438.0 + 57.4
Earnings per share EUR -0.22 -0.85 + 74.1 -0.68 -2.66 + 74.4
Net capex and investment 152.0 - 14.4 n. a. 288.7 - 122.8 n. a.
Equity ratio (30 June)3 % - 1.2 - 3.6 + 2.4
Net debt (30 June) - 3,314.1 - 6,348.7 - 47.8
Employees (30 June) 60,058 46,518 + 29.1
Differences may occur due to rounding.
1 We define the EBIT in underlying EBIT as earnings before
interest, income taxes and result of the measurement of the Group's
interest hedges. For further details please see page 16.
2 EBITDA is defined as earnings before interest, income taxes,
goodwill impairment and amortisation and write-ups of other
intangible assets, depreciation and write-ups of property, plant
and equipment, investments and current assets.
3 Equity divided by balance sheet total in %, variance is given
in percentage points.
All change figures refer to the same period of the previous
year, unless otherwise stated.
-- Q3 2022 Group revenue of EUR4.4bn improved by EUR3.8bn
year-on-year (Q3 2021: EUR0.6bn), reflecting the morenormalised
travel environment versus prior year. Q3 2022 Group underlying EBIT
was broadly break-even with EUR-27.0m,a strong improvement of
EUR642.8m versus prior year (Q3 2021: EUR-669.8m loss). Excluding
the impact of additionalflight disruption costs of EUR75m, the
Group underlying EBIT was clearly profitable at EUR48m.
-- 9M 2022 Group revenue of EUR8.9bn was up EUR7.6bn versus
previous year (9M 2021: EUR1.4bn). The Group's 9M 2022operating
loss (underlying EBIT) of EUR-630.5m decreased by EUR1,348.1m
compared to previous year (9M 2021:EUR-1,978.6m).
Trading update
Booking momentum for Summer 2022 remains encouraging, we are
confident the season will be close to 2019 levels
-- Solid pipeline of 11.5m bookings1 for Summer 2022, with 3.9m
bookings added since our H1 2022 Report on11 May 2022.
-- Summer 2022 bookings are 90% of Summer 2019 levels, up 5%pts
from 85% at our H1 announcement. Bookingmomentum remains
encouraging, with levels in line with normalised Summer 2019
levels, as a result of a return to amore pre-pandemic environment
of restriction-free travel.
-- ASP continues to be strong at up 18%, reflecting a higher mix
of package products and the popularity ofour summer holidays.
-- The UK remains our most advanced market in terms of bookings
with cumulative volumes remaining well aheadof Summer 2019 at + 5%,
demand in Germany since our H1 update is particularly encouraging
with bookings up c.20%compared to the same period of Summer
2019.
-- Supported by the latest booking trends, particularly in
mainland Europe, combined with a later bookingprofile, we are
confident in our Summer 2022 capacity assumption of close to
normalised 2019 Summer levels.
-- Winter 2022/23 bookings1 are currently at a very early stage,
with only the UK market currently booked asusual at this point of
time. The UK have started positively with volumes up 16% compared
to the same stage ofWinter 2018/19 with the programme c.27% sold.
As usual, we expect to update on Winter 2022/23 performance with
ourTrading Update in September 2022 as we see the later booking
profile as experienced this Summer to also continueinto the
Winter.
-- Hotels & Resorts -The segment delivered a fourth
consecutive quarter of positive underlying EBIT sincethe start of
the pandemic and is already back to 2019 levels. The Canaries,
Balearics, Greece and Turkey are ourkey summer destinations for
both Markets & Airlines and third-party customers. We expect
occupancies and averagerates to continue to develop through Q4
2022, with the short-term booking environment to continue to
contributesignificantly to a strong Summer. Our integrated model
and growing ability to distribute successfully directly tocustomers
support the development.
-- Cruises - Mein Schiff and Hapag-Lloyd Cruises are currently
operating a full fleet of twelve ships,resuming itineraries in the
Western and Eastern Mediterranean and around the world, with Asia
itineraries resumingin Winter 2022/23. Marella Cruises is currently
operating a full fleet of four ships in the Canaries and
theCaribbean. Cruises continue to recover into Q4, with occupancies
building steadily at higher rates. Short-termbookings continue to
represent a large share of overall bookings.
-- TUI Musement - Benefitting from our increased inventory of
products offered in global cities as well assun and beach
locations, we expect excursions, activities and tours to develop
ahead of the capacity assumptions ofour Markets & Airlines for
Q4, as third-party sales return, in line with a return to a more
normalised pre-pandemictravel environment.
1 Bookings up to 31 July 2022 compared to Summer 2019 and Winter
2018/19 programme (undistorted by COVID-19 effects and thus provide
an appropriate benchmark) and relate to all customers whether risk
or non-risk
Global Realignment Programme - Targeted savings EUR400m p.a. by
financial year 2023
In May 2020, we announced our Global Realignment Programme to
address group-wide costs, with a target of permanently saving more
than EUR400m per annum by financial year 2023.
In the financial year ending September 2021, 60% (EUR240m) of
our announced targeted savings were delivered. Savings have been
most significantly delivered across the Markets & Airlines
division (85% of savings to date).
We expect to deliver a further 20% (EUR80m) of our targeted
savings in financial year 2022 and we remain on track to deliver
the full programme benefits by end of financial year 2023.
Net debt
30 June 2022 net debt position of EUR-3,314.1m is a year-on-year
improvement of EUR3,034.6m (30 June 2021: EUR6,348.7m), driven by
positive cash flow as bookings and operations recover, and net of
repayments from our capital increases completed in financial year
2022 net of the repayments made to WSF in Q3 2022.
Strategic priorities
Ongoing priorities - we will continue with our disciplined cash
management, drive operating effectiveness, whilst maximising
opportunities to de-lever, continue the reduction of debt and
German government exposure in order to return to a solid balance
sheet. Mid-term ambitions - we expect underlying EBIT to
significantly build on financial year 2019, driven by both top-line
growth and benefits from our Global Realignment Programme, with a
target to return to gross leverage ratio of less than 3.0x.
Our growth opportunities will be driven by the expansion of our
TUI Musement tours & activities segment, which will benefit
from both our integration as well as growth through third party
sales, accelerated digitalisation, our increased offer of dynamic
packaging, growth through asset-right financing structures and
execution of our Global Realignment Programme. The combination of
these drivers will enable us to emerge stronger, leaner, more
digitalised and more agile, and ready to exploit market recovery
and growth opportunities.
TUI is strategically well positioned and will continue to
benefit from the strong rebound in the leisure industry.
Report on changes in expected development
The impact of the pandemic and the war in Ukraine on customer
behaviour remains difficult to predict. The greatest area of
uncertainty will be the impact on consumer confidence, should
travel restrictions be reintroduced, should there be further cost
inflation volatility and/or an escalation of the war in Ukraine. In
view of these considerable uncertainties, the Executive Board
continues to believe that it is not in a position to issue a
specific, quantified forecast for the financial year 2022.
Against the backdrop of current bookings and the business
performance to date, we confirm our expectation in the 2021 Annual
Report of a significant improvement in TUI Group's underlying EBIT
compared with 2021 and, unchanged from our Half-Year Financial
Report H1 2022, expect to return to a significantly positive
underlying EBIT in the current financial year.
We continue to consider the remaining assumptions for the
financial year 2022 made in the Annual Report 2021 to be valid.
-- See also TUI Group Annual Report 2021 page 50 ff
Structure and strategy of TUI Group
Reporting structure
The present Interim Report for 9M 2022 is based on TUI Group's
reporting structure set out in the Consolidated Financial
Statements of TUI AG as at 30 September 2021.
-- See TUI Group Annual Report 2021 from page 28
Group strategy
The TUI Group's strategy outlined in the Annual Report 2021 will
be continued in the current financial year.
-- See TUI Group Annual Report 2021 from page 25
Consolidated earnings
Revenue
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Hotels & Resorts 259.5 74.0 + 250.7 638.8 157.9 + 304.5
Cruises 103.3 1.1 n. a. 178.8 2.7 n. a.
TUI Musement 158.6 19.0 + 734.7 287.4 37.5 + 665.5
Holiday Experiences 521.4 94.1 + 454.1 1,105.0 198.2 + 457.5
Northern Region 1,762.8 56.0 n. a. 3,262.9 215.1 n. a.
Central Region 1,449.1 370.3 + 291.3 3,053.8 707.7 + 331.5
Western Region 683.2 120.5 + 467.0 1,465.5 222.6 + 558.4
Markets & Airlines 3,895.1 546.8 + 612.3 7,782.2 1,145.5 + 579.4
All other segments 16.7 8.7 + 92.0 43.6 22.3 + 95.3
TUI Group 4,433.2 649.7 + 582.3 8,930.8 1,365.9 + 553.8
TUI Group (at constant currency) 4,394.8 649.7 + 576.4 8,819.1 1,365.9 + 545.7
Underlying EBIT
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Hotels & Resorts 104.9 - 70.3 n. a. 189.7 - 268.6 n. a.
Cruises 3.0 - 81.3 n. a. - 102.3 - 234.6 + 56.4
TUI Musement 13.8 - 34.7 n. a. - 15.7 - 96.7 + 83.8
Holiday Experiences 121.6 - 186.3 n. a. 71.7 - 599.9 n. a.
Northern Region - 93.1 - 289.8 + 67.9 - 445.7 - 708.1 + 37.1
Central Region 23.9 - 105.4 n. a. - 51.8 - 377.4 + 86.3
Western Region - 70.2 - 87.6 + 19.9 - 159.5 - 247.3 + 35.5
Markets & Airlines - 139.4 - 482.7 + 71.1 - 657.1 - 1,332.8 + 50.7
All other segments - 9.3 - 0.8 n. a. - 45.1 - 45.9 + 1.7
TUI Group - 27.0 - 669.8 + 96.0 - 630.5 - 1,978.6 + 68.1
EBIT
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Hotels & Resorts 104.8 - 74.8 n. a. 211.6 - 273.1 n. a.
Cruises 3.0 - 81.3 n. a. - 102.3 - 234.6 + 56.4
TUI Musement 11.0 - 46.1 n. a. - 22.3 - 113.2 + 80.3
Holiday Experiences 118.8 - 202.1 n. a. 87.0 - 621.0 n. a.
Northern Region - 97.0 - 293.1 + 66.9 - 457.7 - 734.1 + 37.7
Central Region 15.7 - 110.6 n. a. - 77.3 - 334.7 + 76.9
Western Region - 71.1 - 102.0 + 30.3 - 161.8 - 268.5 + 39.7
Markets & Airlines - 152.3 - 505.6 + 69.9 - 696.8 - 1,337.3 + 47.9
All other segments - 9.0 - 40.3 + 77.7 - 47.3 - 88.3 + 46.4
TUI Group - 42.5 - 748.0 + 94.3 - 657.0 - 2,046.6 + 67.9
Segmental performance
Holiday Experiences
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Revenue 521.4 94.1 + 454.1 1,105.0 198.2 + 457.5
Underlying EBIT 121.6 - 186.3 n. a. 71.7 - 599.9 n. a.
Underlying EBIT at constant currency 117.5 - 186.3 n. a. 67.2 - 599.9 n. a.
Hotels & Resorts
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Total revenue1 385.2 135.4 + 184.5 909.8 282.2 + 222.4
Revenue 259.5 74.0 + 250.7 638.8 157.9 + 304.6
Underlying EBIT 104.9 - 70.3 n. a. 189.7 - 268.6 n. a.
Underlying EBIT at constant currency 100.8 - 70.3 n. a. 181.7 - 268.6 n. a.
Capacity hotels total2 ('000) 10,738 6,640 + 61.7 26,267 16,058 + 63.6
Riu 3,514 2,750 + 27.8 10,004 7,532 + 32.8
Robinson 1,046 594 + 76.2 2,367 1,194 + 98.2
Blue Diamond 1,364 1,289 + 5.8 4,030 3,321 + 21.4
Occupancy rate hotels total3 74 48 + 26 68 44 + 24
(in %, variance in % points)
Riu 88 59 + 29 77 48 + 29
Robinson 61 48 + 13 59 48 + 11
Blue Diamond 82 57 + 25 78 46 + 32
Average revenue per bed hotels total4 73 70 + 3.7 76 67 + 13.7
(in EUR)
Riu 63 56 + 12.6 66 56 + 19.0
Robinson 94 98 - 4.1 101 95 + 6.2
Blue Diamond 140 104 + 34.6 135 99 + 36.5
Revenue includes fully consolidated companies, all other KPIs incl. companies measured at equity
1 Total revenue includes intra-Group revenue
2 Group owned or leased hotel beds multiplied by opening days per quarter
3 Occupied Group owned or leased hotel beds divided by capacity
4 Arrangement revenue divided by occupied Group owned or leased hotel beds
9M 2022 revenue grew to EUR638.8m, an improvement of EUR480.9m
year-on-year (9M 2021: EUR157.9m) reflecting the more normalised
pre-pandemic travel environment across our multiple destinations,
versus the prior year. The segment reported a 9M underlying EBIT
profit of EUR189.7m as a result, improving by EUR458.3m
year-on-year (9M 2021: EUR-268.6m loss), with Riu delivering strong
results in the Caribbean and Spanish markets in particular.
Q3 2022 revenue respectively grew to EUR259.5m, improving
EUR185.5m year-on-year (Q3 2021: EUR74.0m), delivering an
underlying EBIT profit of EUR104.9m, an improvement of EUR175.2m
year-on-year (Q3 2021: EUR-70.3m loss), the fourth sequential
quarterly positive underlying EBIT result since the start of the
pandemic.
As of 30 June 2022, 99% of our 354 hotels were in operation (30
June 2021: 79%), allowing us to offer our guests our entire
portfolio in Summer. In Q3 2022 we operated 10.7m available
bednights (capacity) which is an increase of 4.1m available
bednights versus the prior year (Q3 2021: 6.6m). Again, the popular
year-round destination Caribbean achieved a high average occupancy
of 90% at a high capacity level. Towards summer, the Canaries,
Balearics, Greece and Turkey are our key summer destinations for
both Markets & Airlines and third-party customers. Q3 occupancy
rate increased 26%pts year-on-year to 74% for the segment, with Riu
achieving 88% in the quarter, up 29%pts year-on-year (Q3 2021: 59%)
and Blue Diamond achieving 82%, up 25%pts year-on-year (Q3 2021:
57%). This reflects the benefit of third-party sales in the
Caribbean from North America and our ability to steer our base of
European customers to our own hotels e.g. in the Canaries first.
Robinson average occupancy increased by 13%pts to 61% year-on-year
(Q3 2021: 48%), driven by mix as the prior year was significantly
impacted by travel restrictions.
Q3 2022 average daily rate increased by 4% year-on-year to
EUR73, with Riu's average daily rate increasing 13% to EUR63 (Q3
2021: EUR56) and Blue Diamond average daily rate increasing 35% to
EUR140 (Q3 2021: EUR104), driven by higher average spend in the
Caribbean. Robinson delivered an average rate of EUR94, a decrease
of -4% year-on-year (Q3 2021: EUR98) due to mix.
Cruises
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Revenue1 103.3 1.1 n. a. 178.8 2.7 n. a.
Underlying EBIT 3.0 - 81.3 n. a. - 102.3 - 234.6 + 56.4
Underlying EBIT at constant currency 3.4 - 81.3 n. a. - 98.5 - 234.6 + 58.0
Occupancy (in %, variance in % points)
Mein Schiff2 70 41 + 29 59 37 + 22
Hapag-Lloyd Cruises 57 42 + 15 50 33 + 17
Marella Cruises 70 48 + 22 59 48 + 11
Passenger days ('000)
Mein Schiff2 1,101 256 + 329.5 2,378 610 + 289.8
Hapag-Lloyd Cruises 78 23 + 245.4 194 43 + 353.9
Marella Cruises 461 6 n. a. 826 6 n. a.
Average daily rates3 (in EUR)
Mein Schiff2 188 125 + 50.7 166 113 + 46.9
Hapag-Lloyd Cruises 616 443 + 39.1 610 407 + 49.9
Marella Cruises (in GBP) 160 128 + 25.0 155 128 + 21.3
1 No revenue is carried for Mein Schiff and Hapag-Lloyd Cruises as the joint venture TUI Cruises is consolidated at
equity
2 The brand Mein Schiff was reported under TUI Cruises in the previous year's periods
3 Per day and passenger
The Cruises segment comprises the joint venture TUI Cruises,
which operates cruise ships under the brands Mein Schiff and
Hapag-Lloyd Cruises, and Marella Cruises.
9M 2022 Cruises revenue (reflecting Marella Cruises solely; TUI
Cruises consisting of Mein Schiff and Hapag-Lloyd Cruises is
accounted for using the equity method), grew to EUR178.8m, an
improvement of EUR176.1m year-on-year (9M 2021: EUR2.7m),
reflecting the recovery towards a more normalised pre-pandemic
travel environment with a full fleet in operation, versus the prior
year where Marella gradually restarted their operations from June
onwards. Resultingly, 9M 2022 underlying EBIT loss for the segment
(including the equity result of TUI Cruises) was EUR-102.3m, an
improvement of EUR132.3m (9M 2021: EUR-234.6m loss). The complete
fleets of all three brands were only in operation from April 2022
due to Omicron restrictions in the Winter months, which held back
the performance for the segment.
Q3 2022 revenue grew to EUR103.3m respectively, improving
EUR102.2m year-on-year (Q3 2021: EUR1.1m), as Marella returned to
operating its full fleet of four vessels in April 2022. Q3
underlying EBIT (including equity result for TUI Cruises) turned
positive for the first time since the start of the pandemic and
improved by EUR84.3m to EUR3.0m.
Mein Schiff - Mein Schiff operated their full fleet of seven
ships since April 2022 reflecting the recovery of demand for
Cruises towards more normalised pre-pandemic levels. Occupancy of
the operated fleet in Q3 2022 was 70% as a result (Q3 2021: 41%),
with cruises operated in Northern Europe and the Mediterranean
during Q3, versus shorter average duration "Blue Cruises" operated
in the prior year. At EUR188, the average daily rate reached
pre-pandemic level (Q3 2019: 190EUR) and was up 51% versus prior
year (Q3 2021: EUR125).
In Q3, TUI Cruises started the construction of two of three
newbuildings that will complement the Mein Schiff fleet until 2026
and bring it to nine ships. After two pandemic years, TUI Cruises
is thus continuing its growth as planned.
Hapag-Lloyd Cruises - Hapag-Lloyd Cruises operated their full
fleet of five ships in Q3 2022. Q3 average daily rate of operated
fleet was EUR616, well above pre-pandemic levels (Q3 2019: 584EUR)
and an increase of 39% on prior year (Q3 2021: EUR443). Q3
occupancy of the operated fleet was 57% (Q3 2021: 42%), reflecting
the increased demand for Cruises.
Marella Cruises - Similarly to Mein Schiff and Hapag-Lloyd
Cruises, Marella operated their full fleet of four ships in Q3
2022. Q3 average daily rate totalled GBP160 with occupancy at 70%,
versus a previous Q3 where Marella gradually restarted their
operations with a first ship in June 2021.
TUI Musement
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Total revenue1 250.3 25.7 + 873.9 442.9 51.2 + 765.0
Revenue 158.6 19.0 + 734.7 287.4 37.5 + 666.4
Underlying EBIT 13.8 - 34.7 n. a. - 15.7 - 96.7 + 83.8
Underlying EBIT at constant currency 13.4 - 34.7 n. a. - 16.1 - 96.7 + 83.4
1 Total revenue includes intra-Group revenue
9M 2022 revenue of EUR287.4m, up EUR249.9m year-on-year (9M
2021: EUR37.5m). 9M underlying EBIT loss of EUR-15.7m decreased by
EUR81.0m year-on-year (9M 2021: EUR-96.7m), reflecting the recovery
to a more normalised pre-pandemic environment.
Q3 2022 revenue of EUR158.6m, up EUR139.6m year-on-year (Q3
2021: EUR19.0m). Q3 underlying EBIT was the first time positive
since the start of the pandemic and amounted to EUR13.8m, improving
EUR48.5m year-on-year (Q3 2021: EUR-34.7m loss).
2.0m excursions, activities and tours sold in Q3 2022, an
increase of 1.8m excursions versus the prior year (Q3 2021: 0.2m)
reflecting the more normalised pre-pandemic travel environment
across our global destinations. The increase reflects the breadth
of our coverage in both popular cities and traditional sun &
beach locations, benefitting from the advantage of our integrated
model and growth of third-party sales through the Musement
platform.
Q3 2022 online distribution was 36% (Q3 2021: 39%) reflecting
the return of destination staff in resorts versus the prior year,
in line with our hybrid in-person and online self-service
model.
Markets & Airlines
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Revenue 3,895.1 546.8 + 612.3 7,782.2 1,145.5 + 579.4
Underlying EBIT - 139.4 - 482.7 + 71.1 - 657.1 - 1,332.8 + 50.7
Underlying EBIT at constant currency - 143.0 - 482.7 + 70.4 - 646.3 - 1,332.8 + 51.5
Direct distribution mix1 78 73 + 5 78 74 + 4
(in %, variance in % points)
Online mix2 55 52 + 3 55 54 + 1
(in %, variance in % points)
Customers ('000) 5,061 876 + 477.8 9,174 1,560 + 488.1
1 Share of sales via own channels (retail and online)
2 Share of online sales
9M 2022 revenue of EUR7,782.2m, up EUR6,636.7m year-on-year (9M
2021: EUR1,145.5m). 9M underlying EBIT loss for the sector of
EUR-657.1m decreased by EUR675.7m year-on-year (9M 2021:
EUR-1,332.8m) reflecting the more normalised pre-pandemic travel
environment versus the prior year, with 9,174k passengers departing
in financial year 2022 so far compared to 1,560k in financial year
2021.
Q3 2022 revenue of EUR3,895.1m, up EUR3,348.3m year-on-year (Q3
2021: EUR546.8m). Q3 underlying EBIT loss of EUR-139.4m, decreased
significantly due to clear pent up demand by EUR343.3m year-on-year
(Q3 2021: EUR-482.7m). The result includes the impact of
operational flight disruption encountered during May and June 2022
totaling EUR75m, as well as savings delivered by our Global
Realignment Programme across all markets.
A total of 5,061k customers departed in Q3, an increase of
4,185k customers versus Q3 2021. Capacity operated was 82% of Q3
2019 levels, with an average load factor achieved of 92% for Q3
2022 (Q3 2019: 90%)
Northern Region
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Revenue 1,762.8 56.0 n. a. 3,262.9 215.1 n. a.
Underlying EBIT - 93.1 - 289.8 + 67.9 - 445.7 - 708.1 + 37.1
Underlying EBIT at constant currency - 94.3 - 289.8 + 67.5 - 431.0 - 708.1 + 39.1
Direct distribution mix1 94 95 - 1 94 93 + 1
(in %, variance in % points)
Online mix2 71 77 - 6 71 76 - 5
(in %, variance in % points)
Customers ('000) 2,095 50 n. a. 3,511 169 n. a.
1 Share of sales via own channels (retail and online)
2 Share of online sales
9M 2022 revenue of EUR3,262.9m, up EUR3,047.8m year-on-year (9M
2021: EUR215.1m). 9M underlying EBIT loss for the region of
EUR-445.7m decreased by EUR262.4m year-on-year (9M 2021:
EUR-708.1m) per the factors mentioned above.
Q3 2022 revenue of EUR1,762.8m, up EUR1,706.8m year-on-year (Q3
2021: EUR56.0m). Q3 2022 underlying EBIT loss for the region of
EUR-93.1m, decreased by EUR196.7m year-on-year (Q3 2021:
EUR-289.8m), driven by ability to operate a more normalised
programme. The result was impacted by operational disruptions
encountered during May and June 2022 as a result of airport
operational issues, fleet impacts and supplier issues, in addition
to resilience measures, in particular the cancellation of flying
from Manchester during June to help protect the programme and
reduce the impact on our customers.
Northern Region reported an increase in Q3 2022 customer
volumes, with 2,095k guests departing in the quarter representing
97% of pre-pandemic Q3 2019 volumes and versus 50k customers in Q3
2021. Online distribution for the Region continues to be strong at
71%, up 5%pts versus pre-pandemic levels (Q3 2019: 66%). With 94%
direct distribution stood at pre-pandemic levels (Q3 2019: 94%)
Central Region
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Revenue 1,449.1 370.3 + 291.3 3,053.8 707.7 + 331.5
Underlying EBIT 23.9 - 105.4 n. a. - 51.8 - 377.4 + 86.3
Underlying EBIT at constant currency 23.0 - 105.4 n. a. - 53.2 - 377.4 + 85.9
Direct distribution mix1 58 63 - 5 57 63 - 6
(in %, variance in % points)
Online mix2 31 39 - 8 31 38 - 7
(in %, variance in % points)
Customers ('000) 1,708 510 + 235.0 3,149 842 + 274.0
1 Share of sales via own channels (retail and online)
2 Share of online sales
9M revenue of EUR3,053.8m, up EUR2,346.1m year-on-year (9M 2021:
EUR707.7m). 9M underlying EBIT loss for the region of EUR-51.8m,
decreased by EUR325.6m year-on-year (9M 2021: EUR-377.4m) per the
factors already mentioned.
Q3 2022 revenue of EUR1,449.1m, up EUR1,078.8m year-on-year (Q3
2021: EUR370.3m). Q3 underlying EBIT for the region was positive
for the first time since the start of the pandemic and amounted to
EUR23.9m, an improvement of EUR129.3m year-on-year (Q3 2021:
EUR-105.4m loss). The result reflected the return to more
normalised operating environment with 1,708k passengers departing
in the quarter, which represented 76% of Q3 2019 pre-pandemic
volumes. The Central Region result was impacted by disruption costs
occurring in May and June 2022.
Online distribution for Central Region stood at 31%, up 7%pts
versus pre-pandemic levels (Q3 2019: 24%). Direct distribution is
up 5%pts to 58% versus pre-pandemic levels (Q3 2019: 53%).
Western Region
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Revenue 683.2 120.5 + 467.0 1,465.5 222.6 + 558.4
Underlying EBIT - 70.2 - 87.6 + 19.9 - 159.5 - 247.3 + 35.5
Underlying EBIT at constant currency - 71.7 - 87.6 + 18.2 - 162.1 - 247.3 + 34.5
Direct distribution mix1 80 85 - 5 81 86 - 5
(in %, variance in % points)
Online mix2 60 69 - 9 62 70 - 8
(in %, variance in % points)
Customers ('000) 1,259 317 + 297.0 2,513 549 + 357.8
1 Share of sales via own channels (retail and online)
2 Share of online sales
9M 2022 revenue of EUR1,465.5m, up EUR1,242.9m year-on-year (9M
2021: EUR222.6m). 9M underlying EBIT loss for the region of
EUR-159.5m, decreased by EUR87.8m year-on-year (9M 2021:
EUR-247.3m) per the factors already mentioned.
Q3 2022 revenue of EUR683.2m, up EUR562.7m year-on-year (Q3
2021: EUR120.5m). Q3 2022 underlying EBIT loss for the region of
EUR-70.2m, decreased by EUR17.4m year-on-year (Q3 2021: EUR-87.6m),
driven by better departure volumes in a more normalised
pre-pandemic travel environment. The costs for flight delays and
cancellations caused by capacity overload in particular at Schiphol
Airport impacted the result.
Western Region also saw operations ramp-up, with 1,259k
customers departing in the third quarter, representing 78% of
pre-pandemic Q3 2019 volumes and versus 317k customers in Q3 2021.
Online distribution for region stood at 60%, up 4%pts versus
pre-pandemic levels (Q3 2019: 56%). Direct distribution is up 4%pts
to 80% versus pre-pandemic levels (Q3 2019: 76%).
All other segments
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Revenue 16.7 8.7 + 92.0 43.6 22.3 + 95.5
Underlying EBIT - 9.3 - 0.8 n. a. - 45.1 - 45.9 + 1.7
Underlying EBIT at constant currency) - 9.1 - 0.8 n. a. - 43.9 - 45.9 + 4.4
9M 2022 underlying EBIT loss of EUR-45.1m, improved EUR0.8m
year-on-year (9M 2021: EUR-45.9m) and Q3 underlying EBIT loss of
EUR-9.3m, increased by EUR-8.5m year-on-year (Q3 2021:
EUR-0.8m).
Financial position and net assets
Cash Flow / Net capex and investments / Net debt
As a result of the continued lifting of global travel
restrictions in the course of the financial year 2022, TUI Group
was able to increase its business volume year-on-year.
Nevertheless, TUI Group's operating cash inflow continued to be
impacted by the COVID-19 pandemic in the period under review. At
EUR1,970.6m, it increased by EUR3,060.0m compared to previous year,
driven by an improved EBITDA and a significant inflow of working
capital from customer bookings.
In October 2021 and in May 2022, TUI AG carried out capital
increases. This resulted in an inflow of EUR1,522.9m after
deduction of transaction costs for 9M 2022.
Net debt position as at 30 June 2022 of EUR3,314.1m is a
year-on-year improvement of EUR3,034.6m (30 June 2021:
EUR6,348.7m). The improvement is due to the positive cash flow from
the recovery of business operations and the net proceeds from the
capital increases carried out in Q1 and Q3 2022 less the repayments
made to WSF in Q3.
Net debt
EUR million 30 Jun 2022 30 Jun 2021 Var. %
Financial debt - 1,781.5 - 4,578.9 - 61.1
Lease liabilities - 3,231.3 - 3,307.8 - 2.3
Cash and cash equivalents 1,583.4 1,524.4 + 3.9
Short-term interest-bearing investments 115.5 13.6 + 749.3
Net debt -3,314.1 -6,348.7 - 47.8
Net capex and investments
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Cash gross capex
Hotels & Resorts 67.7 22.1 + 206.3 123.7 92.0 + 34.5
Cruises 8.0 1.2 + 566.7 36.3 16.3 + 122.7
TUI Musement 5.3 3.9 + 35.9 13.4 9.7 + 38.1
Holiday Experiences 81.0 27.1 + 198.9 173.4 118.0 + 46.9
Northern Region 6.1 2.2 + 177.3 18.9 7.6 + 148.7
Central Region 0.4 1.2 - 66.7 5.1 3.7 + 37.8
Western Region 1.0 1.9 - 47.4 4.4 3.5 + 25.7
Markets & Airlines* 66.9 20.3 + 229.6 90.5 35.3 + 156.4
All other segments 32.4 21.2 + 52.8 85.7 54.1 + 58.4
TUI Group 180.4 68.7 + 162.6 349.7 207.4 + 68.6
Net pre delivery payments on aircraft - 17.3 - 54.5 + 68.3 - 61.9 - 86.1 + 28.1
Financial investments 0.3 1.2 - 75.0 0.3 22.9 - 98.7
Divestments - 11.4 - 29.8 + 61.7 0.6 - 266.9 n. a.
Net capex and investments 152.0 - 14.4 n. a. 288.7 - 122.8 n. a.
* Including EUR59.4m for Q3 2022 (Q3 2021: EUR15.0m) and
EUR62.1m for 9M 2022 (9M 2021: EUR20.5m) cash gross capex of the
aircraft leasing companies, which are allocated to Markets &
Airlines as a whole, but not to the individual segments Northern
Region, Central Region and Western Region.
Cash gross capex in 9M 2022 was 68.6% higher year-on-year. This
increase year-on-year was mainly due to investments in the airline
sector, higher investments in Hotels & Resorts and dock periods
at Marella Cruises. Net capex and investments of EUR288.7m
increased by EUR411.5m year-on-year. The divestments related mainly
to the sale and lease back of spares. In addition, a subsequent
reduction of the disposal of RIU Hotels S.A. was included, in total
resulting in neutral divestments. Previous year's divestments
included sale and lease back of spares and aircraft as well as a
part of the sales proceeds of Hapag-Lloyd Kreuzfahrten to our joint
venture TUI Cruises.
Assets and liabilities
EUR million 30 June 2022 30 Sep 2021 Var. %
Non-current assets 11,260.1 11,222.3 + 0.3
Current assets 4,684.4 2,933.3 + 59.7
Total assets 15,944.5 14,155.7 + 12.6
Equity - 190.0 - 418.4 + 54.6
Provisions 1,864.3 2,238.2 - 16.7
Financial liabilities 1,781.5 3,320.8 - 46.4
Other liabilities 12,488.7 9,015.2 + 38.5
Total equity, liabilities and provisions 15,944.5 14,155.7 + 12.6
Comments on the consolidated income statement
As a result of the continued easing or lifting of global travel
restrictions, TUI Group was able to increase its business volume
compared with the prior-year period under review. Nevertheless, the
development of revenue and earnings in 9M 2022 continued to be
significantly impacted by the measures to contain the spread of
COVID-19. TUI Group's results generally also reflect the
significant seasonal swing in tourism between the winter and summer
travel months, however this period the impact is less evident due
to the COVID-19 pandemic.
In 9M 2022, consolidated revenue increased by EUR7.6bn
year-on-year to EUR8.9bn.
Unaudited condensed consolidated Income Statement of TUI AG for the period from1 Oct 2021 to 30 Jun 2022
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Revenue 4,433.2 649.7 +582.3 8,930.8 1,365.9 +553.8
Cost of sales 4,313.4 1,124.2 +283.7 9,047.8 2,642.4 +242.4
Gross profit / loss 119.8 - 474.5 n. a. - 117.0 - +90.8
1,276.4
Administrative expenses 189.6 216.5 - 12.4 566.6 604.2 - 6.2
Other income 3.3 10.1 - 67.3 34.1 20.9 +63.2
Other expenses 2.2 1.0 +120.0 3.7 9.2 - 59.8
Impairment (+) / Reversal of impairment (-) of financial - 3.3 - 6.8 +51.5 - 7.8 - 35.9 +78.3
assets
Financial income 4.6 - 1.9 n. a. 30.5 25.0 +22.0
Financial expense 127.2 100.5 +26.6 408.5 356.5 +14.6
Share of result of investments accounted for using the equity 26.4 - 69.4 n. a. - 9.2 - 226.5 +95.9
method
Impairment (+) / Reversal of impairment (-) of net - - - - - 0.5 n. a.
investments in joint ventures and associates
Earnings before income taxes - 161.6 - 846.9 +80.9 - - +56.8
1,032.6 2,390.7
Income taxes (expense (+), income (-)) 169.6 92.9 +82.6 6.5 47.3 - 86.3
Group loss - 331.2 - 939.8 +64.8 - - +57.4
1,039.1 2,438.0
Group loss attributable to shareholders of TUI AG - 356.7 - 934.8 +61.8 - - +55.3
1,076.7 2,409.6
Group profit / loss attributable to non-controlling interest 25.5 - 5.0 n. a. 37.5 - 28.4 n. a.
Alternative performance measures
The Group's main financial KPI is underlying EBIT. We define the
EBIT in underlying EBIT as earnings before interest, income taxes
and expenses for the measurement of the Group's interest hedges.
EBIT by definition includes goodwill impairments.
One-off items carried here include adjustments for income and
expense items that reflect amounts and frequencies of occurrence
rendering an evaluation of the operating profitability of the
segments and the Group more difficult or causing distortions. These
items include gains on disposal of financial investments,
significant gains and losses from the sale of assets as well as
significant restructuring and integration expenses. Any effects
from purchase price allocations, ancillary acquisition costs and
conditional purchase price payments are adjusted. Also, any
goodwill impairments are adjusted in the reconciliation to
underlying EBIT.
Reconciliation to underlying EBIT
EUR million Q3 Q3 Var. 9M 2022 9M 2021 Var.
2022 2021 % %
Earnings before income taxes - - +80.9 - - +56.8
161.6 846.9 1,032.6 2,390.7
plus: Net interest expenses (excluding expense / income from 130.6 97.2 +34.4 384.4 336.7 +14.2
measurement of interest hedges)
plus / less: (Expenses) income from measurement of interest hedges - 1.8 n. a. - 8.8 7.4 n. a.
11.5
EBIT - - +94.3 - 657.0 - +67.9
42.5 748.0 2,046.6
Adjustments:
plus: Separately disclosed items 8.3 70.0 5.0 43.5
plus: Expense from purchase price allocation 7.2 8.2 21.5 24.4
Underlying EBIT - - +96.0 - 630.5 - +68.1
27.0 669.8 1,978.6
The TUI Group's operating loss adjusted for special items
decreased by EUR1,348.1m to EUR-630.5m in 9M 2022.
-- For further details on the separately disclosed items see
page 43 in the Notes of this Interim Report.
Key figures of income statement
EUR million Q3 Q3 Var. 9M 2022 9M 2021 Var.
2022 2021 % %
EBITDAR 175.8 - n. a. 1.7 - n. a.
489.5 1,313.5
Operating rental expenses - 4.6 - 1.9 - - 15.9 - 9.4 -
142.1 69.1
EBITDA 171.2 - n. a. - 14.2 - +
491.4 1,322.9 98.9
Depreciation/amortisation less reversals of depreciation* - - + - 642.8 - 723.7 +
213.7 256.6 16.7 11.2
EBIT - - + - 657.0 - +
42.5 748.0 94.3 2,046.6 67.9
Income/Expense from the measurement of interest hedges - 1.8 n. a. - 8.8 7.4 n. a.
11.5
Net interest expense (excluding expense/income from measurement of 130.6 97.2 + 384.4 336.7 +
interest hedges) 34.4 14.2
EBT - - + - - +
161.6 846.9 80.9 1,032.6 2,390.7 56.8
* on property, plant and equipment, intangible assets, right of use assets and other assets
Other segment indicators
Underlying EBITDA
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Hotels & Resorts 147.9 - 18.8 n. a. 322.8 - 105.9 n. a.
Cruises 20.7 - 65.2 n. a. - 49.8 - 187.4 + 73.4
TUI Musement 20.0 - 28.7 n. a. 2.3 - 78.3 n. a.
Holiday Experiences 188.6 - 112.7 n. a. 275.3 - 371.6 n. a.
Northern Region - 10.9 - 204.7 + 94.7 - 212.9 - 460.2 + 53.7
Central Region 49.3 - 77.4 n. a. 29.7 - 287.3 n. a.
Western Region - 34.8 - 53.6 + 35.1 - 55.2 - 144.2 + 61.7
Markets & Airlines 3.6 - 335.7 n. a. - 238.3 - 891.8 + 73.3
All other segments - 11.4 - 0.4 n. a. - 44.6 - 41.5 - 7.5
TUI Group 180.8 - 448.7 n. a. - 7.7 - 1,304.8 + 99.4
EBITDA
EUR million Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. %
Hotels & Resorts 147.8 - 21.2 n. a. 344.7 - 108.4 n. a.
Cruises 20.7 - 65.2 n. a. - 49.8 - 187.4 + 73.4
TUI Musement 19.0 - 38.2 n. a. 1.0 - 89.1 n. a.
Holiday Experiences 187.6 - 124.5 n. a. 296.0 - 384.9 n. a.
Northern Region - 11.4 - 205.6 + 94.5 - 214.8 - 477.7 + 55.0
Central Region 41.1 - 79.0 n. a. 6.0 - 240.3 n. a.
Western Region - 34.9 - 66.2 + 47.3 - 54.9 - 159.9 + 65.7
Markets & Airlines - 5.2 - 350.8 + 98.5 - 263.6 - 878.0 + 70.0
All other segments - 11.1 - 16.1 + 31.1 - 46.6 - 60.0 + 22.3
TUI Group 171.2 - 491.4 n. a. - 14.2 - 1,322.9 + 98.9
Employees
30 June 2022 30 June 2021 Var. %
Hotels & Resorts 27,212 18,312 + 48.6
Cruises* 64 58 + 10.3
TUI Musement 8,137 4,510 + 80.4
Holiday Experiences 35,413 22,880 + 54.8
Northern Region 10,191 9,210 + 10.7
Central Region 6,976 7,636 - 8.6
Western Region 5,110 4,495 + 13.7
Markets & Airlines 22,277 21,341 + 4.4
All other segments 2,368 2,297 + 3.1
Total 60,058 46,518 + 29.1
* Excludes TUI Cruises (JV) employees. Cruises employees are primarily hired by external crew management agencies.
Corporate Governance
Composition of the Boards
In the third quarter 2022 the composition of the Boards of TUI
AG changed as follows:
Executive Board
On 24 June 2022 Friedrich Joussen, Chief Executive Officer of
TUI AG, has announced his decision to step down as of 30 September
2022. He is exercising a right of resignation granted in connection
with the conditions of the COVID stabilisation measures.
On 27 June 2022 the Supervisory Board appointed Sebastian Ebel,
currently Chief Financial Officer, as Chief Executive Officer,
effective 1 October 2022 and Mathias Kiep, previously Group
Director Controlling, Corporate Finance and Investor Relations, as
the new Chief Financial Officer. Both new appointments have a
contract term of three years.
Supervisory Board
In Q2 2022 Alexey Mordashov and Vladimir Lukin resigned from
their mandates on the Supervisory Board of TUI AG. To fill these
two vacancies, in June 2022 the Hanover Local Court has appointed
Helena Murano, Senior Advisor Arcano Partners, Palma de Mallorca,
and Christian Baier, Member of the Executive Board of Metro AG,
Düsseldorf, as members of the Supervisory Board of TUI AG with
retroactive effect from 31 May 2022. Christian Baier also became
member of the Audit Committee.
The current, complete composition of the Executive Board and
Supervisory Board is published on our website, where it is
permanently accessible to the public.
? www.tuigroup.com/en-en/investors/corporate-governance
Risk and Opportunity Report
Successful management of existing and emerging risks is critical
to the long-term success of our business and to the achievement of
our strategic objectives.
We aggregate the risks into principal risks, were senior
management is deciding its risk appetite upon. Full details of our
risk governance framework and principal risks can be found in the
Annual Report 2021.
? Details see Risk Report in our Annual Report 2021, from page
35
External events, namely the COVID 19-pandemic, the impact on
input cost due the Ukraine war, and supply chain disruptions impact
the principal risks. The impact is higher if a combination of
principal risks is affected.
Although the number of COVID 19-cases remains high, contact
restriction measures and travel restrictions were gradually eased
in our source markets and many of our destinations since the
beginning of the calendar year and our customers are confident to
travel. Our businesses have proven to adapt to changing hygiene
requirements and will continue to do so, should certain measures be
re-imposed.
The booking dynamics in our most important markets have so far
remained largely unaffected by Russia's war of aggression on
Ukraine. However, the intensified general price increases of recent
months could continue, especially due to rising energy costs, and
lead to a significant reduction in the private budget available for
travel services, thus lowering purchasing power and resulting in
declining customer demand. In addition, the war is affecting our
main input cost volatility risk, leading to an increase in fuel
costs as well as other services, especially those we source in US
dollars. This particularly affects the results of the Northern
Region, Central Region, Western Region and Cruises segments.
Our operation is dependent on a complex chain of supply of goods
and services. In some areas, suppliers cannot easily be
interchanged, leading to a reliance on these key suppliers. In May
and June poor services of some direct and indirect suppliers caused
disruptions to our flight operations predominantly at, but not
limited to UK airports. Increasing the resilience of our airline
operations by adding further stand-by aircraft and by closely
managing our key suppliers through continuous operational meetings
mitigates this reliance risk. If disruptions happen, we seek to
mitigate the impact by increased our support staff, offering
flexible rebooking or providing additional compensations via
vouchers. Whilst we recognise a positive impact of these measures,
we believe that the situation will continue to be challenging
during the main summer season.
From the Executive Board's perspective, despite the existing
risks, the TUI Group currently has and will continue to have
sufficient funds, resulting from both borrowings and operating cash
flows, to meet its payment obligations and to ensure the going
concern of the company accordingly in the foreseeable future. In
this context, the Executive Board assumes that the credit lines
expiring in summer 2024 will be refinanced. Therefore, as at 30
June 2022, the Executive Board does not identify any material
uncertainty that may cast significant doubt on the Group's ability
to continue as a going concern risk. The Executive Board does not
consider the remaining risk with regard to a further pandemic/
war-related change in booking behaviour as a going concern. In its
assessment, the Executive Board assumes that booking figures will
gradually recover in the remainder of the 2022 financial year and
that volumes in the summer of 2022 will settle approximately close
to the level of the summer of 2019.
For the 2023 financial year, we expect a further normalisation
towards pre-pandemic levels. In this regard, the Board assumes that
travel behaviour will not be affected by further long-term closures
and lockdowns or by the impact of Russia's war of aggression on
Ukraine. Nevertheless, customer bookings may deteriorate due to new
pandemic or war-related travel restrictions, virus variants for
which there is insufficient vaccination protection and an increase
in general price increases, thus affecting TUI Group's performance.
In addition, the increased costs for cerosine and bunkers could
also weigh on future earnings.
During this period of reduced travel compared to pre-pandemic
levels, the Executive Board continues to monitor the key risks,
particularly heightened risks such as customer demand and those
that impact the financial profile (i.e. cost volatility and
cashflow) of the Group.
Unaudited condensed consolidated Interim Financial
Statements
Unaudited condensed consolidated Income Statement of TUI AG for the period from
1 Oct 2021 to 30 Jun 2022
EUR million Notes Q3 2022 Q3 2021 9M 2022 9M 2021
Revenue (1) 4,433.2 649.7 8,930.8 1,365.9
Cost of sales (2) 4,313.4 1,124.2 9,047.8 2,642.4
Gross profit / loss 119.8 - 474.5 - 117.0 -
1,276.4
Administrative expenses (2) 189.6 216.5 566.6 604.2
Other income (3) 3.3 10.1 34.1 20.9
Other expenses (4) 2.2 1.0 3.7 9.2
Impairment (+) / Reversal of impairment (-) of financial assets (21) - 3.3 - 6.8 - 7.8 - 35.9
Financial income (5) 4.6 - 1.9 30.5 25.0
Financial expense (5) 127.2 100.5 408.5 356.5
Share of result of investments accounted for using the equity method (6) 26.4 - 69.4 - 9.2 - 226.5
Impairment (+) / Reversal of impairment (-) of net investments in joint (6) - - - - 0.5
ventures and associates
Earnings before income taxes - 161.6 - 846.9 - -
1,032.6 2,390.7
Income taxes (expense (+), income (-)) (7) 169.6 92.9 6.5 47.3
Group loss - 331.2 - 939.8 - -
1,039.1 2,438.0
Group loss attributable to shareholders of TUI AG - 356.7 - 934.8 - -
1,076.7 2,409.6
Group profit / loss attributable to non-controlling interest (8) 25.5 - 5.0 37.5 - 28.4
Earnings per share
EUR Q3 2022 Q3 2021 9M 2022 9M 2021
Basic and diluted loss / earnings per share - 0.22 - 0.85 - 0.68 - 2.66
Unaudited condensed consolidated Statement of Comprehensive Income of TUI AG for the period from1 Oct 2021 to 30 Jun
2022
EUR million Q3 Q3 9M 2022 9M 2021
2022 2021
Group loss - - - -
331.3 939.9 1,039.2 2,438.0
Remeasurements of defined benefit obligations and related fund assets 149.0 - 354.6 - 268.8
124.5
Other comprehensive income of investments accounted for using the equity method - 9.4 - 39.3
that will not be reclassified
Fair value loss on investments in equity instruments designated as at FVTOCI - 0.9 0.2 - 1.4 - 0.3
Income tax related to items that will not be reclassified (expense (-), income (+)) - 85.1 - 101.7 118.0
43.2
Items that will not be reclassified to profit or loss 104.9 - 251.5 - 111.8
29.8
Foreign exchange differences 88.6 - 120.4 47.9
15.2
Foreign exchange differences outside profit or loss 88.6 - 120.5 48.9
13.3
Reclassification - - 2.0 - 0.1 - 1.0
Cash flow hedges 39.2 39.0 100.9 92.9
Changes in the fair value 59.9 21.5 124.4 24.9
Reclassification - 17.5 - 23.5 68.0
20.7
Other comprehensive income of investments accounted for using the equity method 5.1 1.2 13.5 - 22.1
that may be reclassified
Income tax related to items that may be reclassified (expense (-), income (+)) - 7.8 - 6.7 - 20.3 - 28.8
Items that may be reclassified to profit or loss 125.1 18.3 214.5 89.9
Other comprehensive income 230.0 - 466.0 - 21.9
11.5
Total comprehensive income - - - 573.2 -
101.3 951.4 2,459.9
attributable to shareholders of TUI AG - - - 646.2 -
147.6 945.5 2,443.6
attributable to non-controlling interest 46.3 - 5.9 73.0 - 16.3
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 30 Jun 2022
EUR million Notes 30 Jun 2022 30 Sep 2021
Assets
Goodwill (9) 3,003.1 2,993.1
Other intangible assets 514.3 498.6
Property, plant and equipment (10) 3,384.2 3,159.3
Right-of-use assets (11) 2,994.1 3,009.2
Investments in joint ventures and associates 660.1 640.5
Trade and other receivables (12), (21) 171.2 308.7
Derivative financial instruments (21) 15.0 8.9
Other financial assets (13), (21) 10.0 12.3
Touristic payments on account 125.6 107.6
Other non-financial assets 207.6 183.4
Income tax assets - 9.6
Deferred tax assets 174.8 291.1
Non-current assets 11,260.1 11,222.3
Inventories 58.6 42.8
Trade and other receivables (12), (21) 1,238.3 471.6
Derivative financial instruments (21) 198.8 53.4
Other financial assets (13), (21) 115.5 12.1
Touristic payments on account 1,285.1 508.6
Other non-financial assets 141.0 106.7
Income tax assets 63.8 57.7
Cash and cash equivalents (21) 1,583.4 1,583.9
Assets held for sale (14) - 96.5
Current assets 4,684.4 2,933.3
Total assets 15,944.5 14,155.7
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 30 Jun 2022
EUR million Notes 30 Jun 2022 30 Sep 2021
Equity and liabilities
Subscribed capital 1,785.2 1,099.4
Capital reserves 6,086.7 5,249.6
Revenue reserves - 9,222.2 - 8,525.7
Silent participation 420.0 1,091.0
Equity before non-controlling interest - 930.3 - 1,085.8
Non-controlling interest 740.3 667.3
Equity (20) - 190.0 - 418.4
Pension provisions and similar obligations (15) 553.7 901.9
Other provisions 652.5 763.6
Non-current provisions 1,206.2 1,665.5
Financial liabilities (16), (21) 1,628.0 3,036.1
Lease liabilities (17) 2,537.8 2,606.1
Derivative financial instruments (21) 2.7 10.9
Other financial liabilities (18), (21) 3.0 5.9
Other non-financial liabilities 172.1 206.3
Income tax liabilities 8.1 56.4
Deferred tax liabilities 68.5 123.3
Non-current liabilities 4,420.2 6,045.1
Non-current provisions and liabilities 5,626.5 7,710.5
Pension provisions and similar obligations (15) 33.1 33.2
Other provisions 625.0 539.5
Current provisions 658.0 572.7
Financial liabilities (16), (21) 153.6 284.6
Lease liabilities (17) 693.5 623.3
Trade payables (21) 2,787.5 2,052.4
Derivative financial instruments (21) 42.6 12.9
Other financial liabilities (18), (21) 134.2 313.0
Touristic advance payments received (19) 5,347.8 2,379.4
Other non-financial liabilities 617.2 518.0
Income tax liabilities 73.8 56.7
Current liabilities 9,850.1 6,240.3
Liabilities related to assets held for sale - 50.6
Current provisions and liabilities 10,508.1 6,863.6
Total equity, liabilities and provisions 15,944.5 14,155.7
Unaudited condensed consolidated Statement of Changes in Equity of TUI AG as of 30 Jun 2022
Subscribed Capital Revenue Silent Equity before Non-controlling
EUR million capital reserves reserves participation non-controlling interest Total
interest
Balance as at 30 Sep 1,509.4 4,211.0 - - - 448.4 666.5 218.1
2020 6,168.8
Dividends - - - - - - 0.1 - 0.1
Share-based payment - - 0.7 - 0.7 - 0.7
schemes
Issuance of bonds with
warrant and - 95.7 - - 95.7 - 95.7
convertible bonds
Capital increase 509.0 27.7 - 1,091.0 1,627.7 - 1,627.7
Capital reduction - 919.0 919.0 - - - - -
Other - - - 6.9 - - 6.9 - - 6.9
Group loss for the - - - - - 2,409.6 - 28.4 -
year 2,409.6 2,438.0
Foreign exchange - - 35.8 - 35.8 12.1 47.9
differences
Financial assets at - - - 0.3 - - 0.3 - - 0.3
FVTOCI
Cash flow hedges - - 92.9 - 92.9 - 92.9
Remeasurements of
defined benefit - - - 268.8 - - 268.8 - - 268.8
obligations and
related fund assets
Other comprehensive
income of investments - - 17.2 - 17.2 - 17.2
accounted for using
the equity method
Taxes attributable to
other comprehensive - - 89.2 - 89.2 - 89.2
income
Other comprehensive - - - 34.0 - - 34.0 12.1 - 21.9
income
Total comprehensive - - - - - 2,443.6 - 16.3 -
income 2,443.6 2,459.9
Balance as at 30 Jun 1,099.4 5,253.4 - 1,091.0 - 1,174.8 650.1 - 524.7
2021 8,618.6
Balance as at 30 Sep 1,099.4 5,249.6 - 1,091.0 - 1,085.7 667.3 - 418.4
2021 8,525.7
Coupon on silent - - - 51.0 - - 51.0 - - 51.0
participation
Share-based payment - - 0.6 - 0.6 - 0.6
schemes
Capital increase 685.8 837.1 - - 1,522.9 - 1,522.9
Repayment of silent - - - - 671.0 - 671.0 - - 671.0
participation
Group profit/loss for - - - - - 1,076.7 37.5 -
the year 1,076.7 1,039.2
Foreign exchange - - 84.9 - 84.9 35.5 120.4
differences
Financial assets at - - - 1.4 - - 1.4 - - 1.4
FVTOCI
Cash flow hedges - - 100.9 - 100.9 - 100.9
Remeasurements of
defined benefit - - 354.6 - 354.6 - 354.6
obligations and
related fund assets
Other comprehensive
income of investments - - 13.5 - 13.5 - 13.5
accounted for using
the equity method
Taxes attributable to
other comprehensive - - - 122.0 - - 122.0 - - 122.0
income
Other comprehensive - - 430.5 - 430.5 35.5 466.0
income
Total comprehensive - - - 646.2 - - 646.2 73.0 - 573.2
income
Balance as at 30 Jun 1,785.2 6,086.7 - 420.0 - 930.3 740.3 - 190.0
2022 9,222.2
Unaudited condensed consolidated Cash Flow Statement of TUI AG for the period from1 Oct 2021 to 30 Jun 2022
EUR million Notes 9M 2022 9M 2021
Group loss - -
1,039.1 2,438.0
Depreciation, amortisation and impairment (+) / write-backs (-) 642.8 723.7
Other non-cash expenses (+) / income (-) 30.9 190.0
Interest expenses 394.9 352.3
Dividends from joint ventures and associates 0.2 13.4
Profit (-) / loss (+) from disposals of non-current assets - 28.7 - 5.9
Increase (-) / decrease (+) in inventories - 18.8 6.0
Increase (-) / decrease (+) in receivables and other assets - 224.9
1,421.4
Increase (+) / decrease (-) in provisions - 90.1 - 230.1
Increase (+) / decrease (-) in liabilities (excl. financial liabilities) 3,499.9 74.3
Cash inflow / cash outflow from operating activities (24) 1,970.6 -
1,089.4
Payments received from disposals of property, plant and equipment and intangible assets 112.6 294.6
Payments received/made from disposals of consolidated companies - 2.2 51.3
(less disposals of cash and cash equivalents due to divestments)
Payments received/made from disposals of other non-current assets - 20.1 23.5
Payments made for investments in property, plant and equipment and intangible assets - 376.5 - 220.6
Payments made for investments in consolidated companies - - 1.9
(less cash and cash equivalents received due to acquisitions)
Payments made for investments in other non-current assets - 0.3 - 21.5
Cash inflow / cash outflow from investing activities (24) - 286.5 125.4
Payments received from capital increase by issuing new shares 1,522.9 -
Payments received from capital increase and from equity component of the bond with - 1,723.5
warrants issued
Payments made for repayment of the silent participation - 671.0 -
Payments received from the issuance of employee shares - - 0.5
Coupons of the silent participation (dividends) - 51.0 -
Payments received from the raising of financial liabilities 47.2 711.7
Payments made for redemption of loans and financial liabilities - - 452.7
1,774.4
Payments made for principal of lease liabilities - 437.5 - 454.0
Interest paid - 298.7 - 299.6
Cash inflow / cash outflow from financing activities (24) - 1,228.3
1,662.4
Net change in cash and cash equivalents 21.7 264.3
Development of cash and cash equivalents (24)
Cash and cash equivalents at beginning of period 1,586.1 1,233.1
Change in cash and cash equivalents due to exchange rate fluctuations - 24.4 27.0
Net change in cash and cash equivalents 21.7 264.3
Cash and cash equivalents at end of period 1,583.4 1,524.4
Notes
General
The TUI Group and its major subsidiaries and shareholdings
operate in tourism. TUI AG, based in Karl-Wiechert-Allee 4, 30625
Hanover, Germany, is the TUI Group's parent company and a listed
corporation under German law. The Company is registered in the
commercial registers of the district courts of
Berlin-Charlottenburg (HRB 321) and Hanover (HRB 6580), Germany.
The shares in TUI AG are traded on the London Stock Exchange and
the Hanover and Frankfurt Stock Exchanges. In this document, the
term "TUI Group" represents the consolidated group of TUI AG and
its direct and indirect investments. Additionally, the unaudited
condensed consolidated interim financial statements of TUI AG are
referred to as "Interim Financial Statements", the unaudited
condensed consolidated income statement of TUI AG is referred to as
"income statement", the unaudited condensed consolidated statement
of financial position of TUI AG is referred to as "statement of
financial position", the unaudited condensed consolidated statement
of comprehensive income of TUI AG is referred to as "statement of
comprehensive income" and the unaudited condensed consolidated
statement of changes in equity of TUI AG is referred to as
"statement of changes in equity".
The Interim Financial Statements cover the period from 1 October
2021 to 30 June 2022. The Interim Financial Statements are prepared
in euros. Unless stated otherwise, all amounts are stated in
million euros (EURm).
The Interim Financial Statements were approved for publication
by the Executive Board of TUI AG on 8 August 2022.
Accounting principles
Declaration of compliance
The consolidated interim financial report for the period ended
30 June 2022 comprise the Interim Financial Statements and the
Interim Management Report in accordance with section 115 of the
German Securities Trading Act (WpHG).
The Interim Financial Statements were prepared in conformity
with the International Financial Reporting Standards (IFRS) of the
International Accounting Standards Board (IASB) and the relevant
interpretations of the IFRS Interpretation Committee (IFRS IC) for
interim financial reporting applicable in the European Union.
In accordance with IAS 34, the Interim Financial Statements are
published in a condensed form compared with the consolidated annual
financial statements and should therefore be read in combination
with TUI Group's consolidated financial statements for financial
year 2021. The Interim Financial Statements were reviewed by the
Group's auditor.
Going concern reporting in accordance with the UK Corporate
Governance Code
The TUI Group covers its day-to-day working capital requirements
through cash on hand, balances with and borrowings from banks. TUI
Group's net debt (financial debt plus lease liabilities less cash
and cash equivalents and less short-term interest-bearing cash
investments) as of 30 June 2022 was EUR3.3bn (as at 30 September
2021 EUR5.0bn).
Net debt
EUR million 30 Jun 2022 30 Sept 2021 Var. %
Financial debt - 1,781.5 - 3,320.8 - 46.4
Lease liabilities - 3,231.3 - 3,229.4 + 0.1
Cash and cash equivalents 1,583.4 1,583.9 -
Short-term interest-bearing investments 115.5 12.1 + 854.5
Net debt -3,314.1 -4,954.2 - 33.1
The global travel restrictions to contain COVID-19 have had a
continuous negative impact on the Group's earnings and liquidity
development since the end of March 2020. To cover the resulting
liquidity needs, the Group has carried out various financing
measures in the financial years 2020 and 2021, which, in addition
to a capital increase, the use of the banking and capital markets
and cash inflows from the sale of assets, also include financing
measures from the Federal Republic of Germany in the form of a KfW
credit line totalling EUR2.85bn, an option bond from the Economic
Stabilisation Fund (WSF) totalling EUR150m and two silent
participations from the WSF totalling EUR1.091bn. In the IFRS
consolidated financial statements, the silent participations are -
with the exception of EUR11.3m accumulated interest - reported as
equity due to their nature and are therefore not included in the
Group's net debt. The financing measures are described in detail in
the annual reports for the past two financial years.
With the entry of the new shares in the commercial register on
28 October 2021 and final settlement with the participating banks
on 2 November 2021, TUI AG successfully completed another capital
increase. The gross issue proceeds totalled around EUR1.1bn. The
Group's share capital increased nominally by EUR523.5m to
EUR1.623bn.
On 17 May 2022, TUI AG placed around 162.3m new shares with
institutional investors in the framework of a capital increase
against cash contributions without subscription rights for
shareholders by way of an accelerated placement, corresponding to
around 10% of TUI AG's share capital. The gross proceeds of around
EUR425.2m from the capital increase and available cash were used to
fully repay the German government's silent participation II
(Economic Stabilisation Fund, 'WSF') of EUR671.0m in full ahead of
schedule on 30 June 2022. Including the coupons to be shown as
dividends, TUI repaid EUR725.4m to the WSF. Following full
repayment and termination of the KfW credit line, TUI has to pay
remuneration to the German state for the coupons saved by the early
repayment of Silent Participation II.
As at 30 June 2022, TUI Group's credit facilities comprised the
following
-- EUR1.75bn credit line from 20 private banks (incl. EUR215m
guarantee line)
-- EUR2.1bn KfW credit line.
As at 30 June 2022, TUI Group's revolving credit facilities
totalled EUR3.85bn. For regulatory reasons due to Brexit, the
credit line of a British bank (around EUR80m liquid funds and
EUR25m guarantee line) could not be extended beyond summer 2022. It
was therefore repaid or terminated as of July 20, 2022. The
remaining credit lines of around EUR3.7bn have a term until summer
2024.
With regard to the KfW credit lines, it was also agreed that TUI
AG would use 50% of individual cash inflows exceeding EUR50m by 20
July 2022, but not exceeding EUR700m, for example from capital
measures or disposals of assets or companies, to reduce the
financing granted to TUI AG to bridge the effects of COVID-19. In
accordance with this agreement, TUI AG returned the unused credit
facility of EUR170m on 1 April 2022. In addition, the volume of
unused credit commitments under the KfW credit line as at 31 March
2022 was reduced by EUR413.7m. Finally, 913 of the 1,500 warrant
bonds issued to WSF were redeemed. A purchase price of EUR91.3m
plus accrued interest and early repayment penalties of EUR7.2m was
paid for these. On June 30, 2022, the existing and at that date
undrawn KfW credit lines were reduced by a further EUR336m to
EUR2.1bn.
After 20 July 2022, 50% of individual specific cash inflows
exceeding EUR50m must be used to reduce the financing granted to
TUI AG to bridge the effects of COVID-19; there is no maximum
limit.
TUI AG's EUR1.75bn credit line from private banks and KfW credit
line are subject to compliance with certain financial target values
(covenants) for debt coverage and interest coverage, the review of
which is carried out on the basis of the last four reported
quarters at the end of the financial year or the half-year of a
financial year. Against the backdrop of the ongoing pressures from
the COVID-19 pandemic, the review will only be resumed in September
2022. In addition, higher limits will be applied on the first two
cut-off dates before normalised limits have to be complied with
from September 2023.
Currently, TUI Group continues to be affected by the negative
financial impact of the COVID-19 pandemic.
Although the number of COVID-19 cases remained high, in
particular due to the rapid spread of the Omicron variant, contact
restriction measures and travel restrictions were gradually eased
in most countries in the first months of the calendar year. TUI
Group's operating business continued to record good demand during
Q3 2022. The booking momentum in our key markets was largely
unaffected by Russia's war of aggression on our European neighbour
Ukraine. The TUI Group's operating business continued to record
good demand in the course of Q3 2022.
From the Executive Board's perspective, despite the existing
risks, the TUI Group currently has and will continue to have
sufficient funds, resulting from both borrowings and operating cash
flows, to meet its payment obligations and to ensure the going
concern of the company accordingly in the foreseeable future. In
this context, the Executive Board assumes that the credit lines
expiring in summer 2024 will be refinanced. Therefore, as at 30
June 2022, the Executive Board does not identify any material
uncertainty that may cast significant doubt on the Group's ability
to continue as a going concern.
In its assessment, the Executive Board assumes that booking
figures will gradually recover in the rest of the 2022 financial
year and that volumes in the summer of 2022 will almost return to
the level of the summer of 2019. For the 2023 financial year, it is
expected that booking behaviour will largely correspond to the
pre-pandemic level. The Executive Board assumes that travel
behaviour will not be affected by further long-term closures and
lockdowns or by the impact of Russia's war of aggression on
Ukraine.
The Executive Board does not consider the remaining risk with
regard to a further pandemic/war-related change in booking
behaviour to be a threat to the company's existence. Nevertheless,
the intensified general price increase of recent months could
continue, in particular due to rising energy costs, and lead to a
significant reduction in the private budget available for travel
services, thus lowering purchasing power and resulting in declining
customer demand. In addition, a permanent increase in fuel costs as
well as other services, especially those we purchase in US dollars,
could lead to an increase in our input costs. In view of the
disruptions in our flight operations in Q3 2022, we have initiated
measures to increase the resilience of our flight operations, for
example by deploying more stand-by aircraft. In the medium term, we
expect the situation at international airports to ease.
In accordance with Regulation 30 of the UK Corporate Governance
Code, the Executive Board confirms that, in its opinion, it is
appropriate to prepare the consolidated interim financial
statements on a going concern basis.
Accounting and measurement methods
The preparation of the Interim Financial Statements requires
management to make estimates and judgements that affect the
reported values of assets, liabilities and contingent liabilities
at the balance sheet date and the reported values of revenues and
expenses during the reporting period.
Both the recent development of the pandemic and current trading
for the summer programme have confirmed the business performance
guidance provided by TUI at the end of financial year 2021. The
positive booking momentum has remained largely unaffected by
Russia's war of aggression against Ukraine. TUI therefore continues
to expect bookings for Summer 2022 to approach the level of Summer
2019. However, the war has resulted in an increase in jet fuel
costs, impacting the results delivered by the Northern Region,
Western Region and Central Region segments. There is the risk that
jet fuel prices will remain high. In the Northern Region segment in
particular, but also in the Western Region and Central Region
segments, it became apparent that the adjustment of flight handling
capacities at the airports were not yet sufficient. Flight
cancellations caused by this and countermeasures taken by TUI led
to an additional burden on the results. The first nine months were
challenging for the Cruises segment. This segment was more and
longer impacted by measures to restrict the spread of COVID-19. As
expected Cruises recovery started in the third quarter of the
financial year. Additionally short-term bookings continue to
represent a large share of overall bookings. The increase in bunker
oil might impact the results additionally. Hotels & Resorts
remains largely unaffected by the war in Ukraine.
Taking account, in particular, of the above-mentioned factors, a
risk assessment was performed for the Group's assets to identify
any indications of impairment as at 30 June 2022. On the basis of
that assessment, TUI does not see any indication that the Group's
assets may generally be impaired.
The accounting and measurement methods adopted in the
preparation of the Interim Financial Statements as at 30 June 2022
are materially consistent with those followed in preparing the
annual consolidated financial statements for the financial year
ended 30 September 2021, except for the initial application of new
or amended standards, as outlined below.
The income taxes were recorded based on the best estimate of the
weighted average tax rate that is expected for the whole financial
year.
Newly applied standards
Since the beginning of financial year 2022, TUI Group has
initially applied the following standards, amended by the IASB and
endorsed by the EU, on a mandatory basis:
Newly applied standards in financial year 2022
Applicable Impact on
Standard from Amendments financial
statements
Amendments to The amendments relate to the provision of relief from potential
IFRS 9, IAS 39, consequences arising from the reform of interbank offered rates (IBORs)
IFRS 7, IFRS 4 such as LIBOR on companies' financial reporting. They address issues that Not
and IFRS 16 1 Jan 2021 affect financial reporting when an existing interest rate benchmark is material.
Interest Rate actually replaced by an alternative interest rate benchmark as a result of
Benchmark Reform the interest rate benchmark reform.
(Phase 2)
Group of consolidated companies
The Interim Financial Statements include all material
subsidiaries over which TUI AG has control. Control requires TUI AG
to have decision-making power over the relevant activities, be
exposed to variable returns or have entitlements regarding the
returns, and can affect the level of those variable returns through
its decision-making power.
The Interim Financial Statements as of 30 June 2022 comprised a
total of 272 subsidiaries of TUI AG.
Development of the group of consolidated companies*and the Group companies measured at equity
Consolidated subsidiaries Associates Joint ventures
Number at 30 Sep 2021 272 18 27
Additions 3 - -
Incorporation 3 - -
Disposals 3 - -
Sale 1 - -
Merger 2 - -
Change in ownership stake - - -
Number at 30 Jun 2022 272 18 27
* excl. TUI AG
Acquisitions - Divestments
Acquisitions in the period under review
In 9M 2022, no companies were acquired.
No acquisitions were made after the reporting date.
Acquisitions of the prior financial year
In financial year 2021, no companies were acquired under IFRS
3.
Divestments
On 16 July 2021, a contract was signed with Grupotel S.A., a
joint venture of TUI Group, to sell Nordotel S.A., a fully
consolidated entity within the Hotels & Resorts segment.
Accordingly, the assets and liabilities of the disposal group were
classified as 'held for sale' in August 2021. The disposal
transaction was completed on 5 October 2021. The first purchase
price payment of EUR50.0m was made on 21 September 2021. Additional
deferred purchase price payments of EUR10.2m and EUR20.4m are due
one and two years, respectively, after the closing of the
transaction, taking account of final purchase price adjustments.
The divestment of the stakes taking currency effects into account
generated a preliminary profit of EUR22.0m, reported within Other
income.
Condensed balance sheet of 'Nordotel S.A.' divestment as at 5 Oct 2021
EUR million
Assets
Property, plant and equipment and intangible assets 65.7
Other non-current assets 26.8
Trade receivables 21.2
Other current assets 0.7
Cash and cash equivalents 2.2
116.6
EUR million
Provisions and liabilities
Trade payables 21.2
Touristic advance payments received 4.9
Other current liabilities 31.4
57.5
Notes to the unaudited condensed consolidated Income
Statement
As a result of the partial easing of global travel restrictions,
TUI Group was able to increase its business volume compared with 9M
2021. Nevertheless, the development of revenue and earnings in the
first nine months of the financial year 2022 continued to be
significantly impacted by the measures to contain the spread of
COVID-19. TUI Group's results generally also reflect the
significant seasonal swing in tourism between the winter and summer
travel months, however this period the impact is less evident due
to the COVID-19 pandemic. 1. Revenue
In the first nine months of the financial year 2022,
consolidated revenue increased by EUR7.6bn year-on-year to
EUR8.9bn.
External revenue allocated by destinations for the period from 1 Oct 2021 to 30 Jun 2022
Rest of 9M 2022
Spain Other Caribbean, North Africa, Revenues
EUR million (incl. European Mexico, Africa Ind. Other from Other 9M 2022
Canary destinations USA & & Ocean, countries contracts Total
Islands) Canada Turkey Asia with
customers
Hotels & 252.3 42.0 184.3 32.4 127.8 - 638.8 - 638.8
Resorts
Cruises 83.9 45.4 49.4 - - 0.1 178.8 - 178.8
TUI Musement 57.5 97.9 73.4 13.7 24.2 20.7 287.4 - 287.4
Holiday 393.7 185.3 307.1 46.1 152.0 20.8 1,105.0 - 1,105.0
experiences
Northern 992.8 931.4 738.7 338.5 241.8 14.6 3,257.8 5.1 3,262.9
Region
Central 901.1 933.8 213.3 590.5 413.0 1.6 3,053.3 0.5 3,053.8
Region
Western 561.7 352.6 309.1 145.7 91.0 4.1 1,464.2 1.3 1,465.5
Region
Markets & 2,455.6 2,217.8 1,261.1 1,074.7 745.8 20.3 7,775.3 6.9 7,782.2
Airlines
All other 1.3 10.6 3.8 2.7 19.4 5.8 43.6 - 43.6
segments
Total 2,850.6 2,413.7 1,572.0 1,123.5 917.2 46.9 8,923.9 6.9 8,930.8
External revenue allocated by destinations for the period from 1 Oct 2020 to 30 Jun 2021
Rest of 9M 2021
Spain Other Caribbean, North Africa, Revenues
EUR million (incl. European Mexico, Africa Ind. Other from Other 9M 2021
Canary destinations USA & & Ocean, countries contracts Total
Islands) Canada Turkey Asia with
customers
Hotels & 61.0 20.2 55.1 6.1 15.0 0.5 157.9 - 157.9
Resorts
Cruises 0.3 2.4 - - - - 2.7 - 2.7
TUI Musement 5.8 14.2 7.5 4.1 5.4 0.5 37.5 - 37.5
Holiday 67.1 36.8 62.6 10.2 20.4 1.0 198.1 - 198.2
experiences
Northern 17.9 124.7 55.8 2.8 12.4 0.5 214.1 1.0 215.1
Region
Central 210.8 288.0 40.9 73.6 87.8 6.3 707.4 0.3 707.7
Region
Western 73.3 96.8 38.6 11.5 1.8 0.1 222.1 0.5 222.6
Region
Markets & 302.0 509.5 135.3 87.9 102.0 6.9 1,143.6 1.8 1,145.5
Airlines
All other 0.6 5.3 0.7 0.1 13.9 1.9 22.5 - 22.3
segments
Total 369.7 551.6 198.6 98.2 136.3 9.8 1,364.2 1.8 1,365.9 2. Cost of sales and administrative expenses
Cost of sales relates to the expenses incurred in the provision
of tourism services. In addition to the expenses for staff costs,
depreciation, amortisation, rental and leasing, it includes all
costs incurred by TUI Group in connection with the procurement and
delivery of airline services, hotel accommodation and cruises and
distribution costs.
Due to the increased business volume, the cost of sales
increased by 242.4% to EUR9.0bn in 9M 2022.
Government Grants
EUR million 9M 2022 9M 2021
Cost of Sales 58.5 125.2
Administrative expenses 36.1 53.5
Total 94.6 178.7
The government grants reported under cost of sales and
administrative expenses include in particular grants for wages and
salaries as well as social security contributions directly
reimbursed to the relevant company. In addition, a number of Group
companies have received government grants, e. g. in the form of
grants for fixed costs. The resumption of travel activity in Summer
2021 led to a decrease in government grants. In the first nine
months of the financial year TUI received amongst other grants for
fixed costs which are granted with a time lag from the months
affected by travel restrictions.
Administrative expenses comprise all expenses incurred in
connection with the performance of administrative functions and
break down as follows:
Administrative expenses
EUR million 9M 2022 9M 2021
Staff costs 411.1 398.6
Rental and leasing expenses 10.5 11.8
Depreciation, amortisation and impairment 57.4 88.8
Others 87.7 105.1
Total 566.6 604.2
The cost of sales and administrative expenses include the
following expenses for staff and depreciation/ amortisation:
Staff costs
EUR million 9M 2022 9M 2021
Wages and salaries 1,234.0 952.9
Social security contributions, pension costs and benefits 289.9 222.7
Total 1,523.9 1,175.6
Depreciation/amortisation/impairment
EUR million 9M 9M
2022 2021
Depreciation and amortisation of other intangible assets, property, plant and equipment and 644.0 659.0
right-of-use assets
Impairment of other intangible assets, property, plant and equipment and right-of-use assets 4.7 77.4
Total 648.7 736.4
In 9M 2022, reversals of impairment losses of EUR5.6m were
recognized, all recorded in cost of sales (9M 2021 EUR12.6m).
EUR4.5m of the impairments were presented within cost of sales (9M
2021 EUR50.0m). Of the impairments losses of the previous year
EUR45.9m correspond to right-of-use assets, EUR31.3m relate to
property, plant and equipment, and EUR0.3m to other intangible
assets. 3. Other income
In 9M 2022 other income reflects mainly EUR22.0m from the
disposal of Nordotel S.A., plus the sale of aircraft assets. In the
prior year, this item had primarily included income from the
disposal of TUI Group companies and the sale of aircraft assets. 4.
Other expenses
In 9M 2022 other expenses do result particularly from the
disposal of group companies in the prior year. In the previous
year, losses from the disposal of aircraft assets and the result
from the sale of TUI Group companies were presented in other
expenses. 5. Financial income and financial expenses
The decrease in the net financial result from EUR-331.6 m in the
first nine months of the previous year to EUR-378.0m in the current
financial year is mainly the result of higher interest expenses,
higher expenses from the compounding of provisions as well as
exchange rate changes on financial instruments. 6. Share of result
of investments accounted for using the equity method
Share of result of investments accounted for using the equity method
EUR million 9M 2022 9M 2021
Hotels & Resorts 42.9 - 60.5
Cruises - 24.9 - 141.5
TUI Musement 3.5 - 2.8
Holiday Experiences 21.5 - 204.8
Northern Region - 33.1 - 22.5
Central Region 2.2 0.8
Western Region - -
Markets & Airlines - 30.9 - 21.7
All other segments 0.2 -
Total - 9.2 - 226.5
The result improved in comparison to the first nine months of
the prior year due to the resumption of the business. 7. Income
taxes
The tax expense arising in the first nine months of the 2022
financial year is mainly driven by the tax expense in profitable
countries. 8. Group profit / loss attributable to non-controlling
interest
TUI Group's result attributable to non-controlling interests is
substantially a gain, primarily relating to RIUSA II Group at an
amount of EUR37.8m (9M 2021 EUR25.4m loss).
Notes to the unaudited condensed consolidated Statement of
Financial Position 9. Goodwill
Goodwill increased by EUR10.0m to EUR3,003.1m due to foreign
exchange translation. The following table presents a breakdown of
goodwill by cash generating unit (CGU) at carrying amounts.
Goodwill per cash generating unit
EUR million 30 Jun 2022 30 Sep 2021
Northern Region 1,231.6 1,224.6
Central Region 502.2 501.7
Western Region 412.3 412.3
Riu 343.1 343.1
Marella Cruises 296.2 295.2
TUI Musement 170.6 170.3
Other 47.1 45.9
Total 3,003.1 2,993.1
As at June 30, 2022, a risk assessment of the capitalised
goodwill was carried out based on updated information for the
current financial year. As part of this assessment, there were no
indications that led to a requirement to perform impairment testing
of the capitalised goodwill. In this context, please refer to the
section 'Accounting and measurement methods'. 10. Property, plant
and equipment
Compared to 30 September 2021 property, plant and equipment
increased by EUR224.9m to EUR3,384.2m. Additions of EUR350.3m
included EUR121.2m of acquisitions in the Hotels & Resorts
segment. The construction of a new hotel in Mexico, the
refurbishment and extension of a hotel in Zanzibar and the
renovation of hotels in Spain, Cape Verde and Mexico led to
additions in the Riu Group totalling EUR99.4m. Further additions
related to the purchase of five aircraft in the amount of EUR119.6m
and to the purchase of aircraft spare parts in the amount of
EUR26.2m. Advance payments of EUR26.8m were made for the future
delivery of additional aircraft. Furthermore, additions of EUR36.1m
were attributable to payments on account to carry out maintenance
work on cruise ships. The reclassification of an aircraft from
right-of-use assets was the result of the exercise of an existing
purchase option and led to an increase in property, plant and
equipment of EUR16.9m. Furthermore, property, plant and equipment
increased by EUR125.4m due to foreign exchange translation.
On the other hand, disposals of EUR100.7m led to a reduction of
property, plant and equipment. The decrease is mainly caused by the
acquisition of new aircraft, which led to the disposal of advance
payments for future delivery of aircraft (EUR88.6m). These aircraft
deliveries led to reallocations within property, plant and
equipment but also to additions to right-of-use assets, which are
due to sale and leaseback transactions (for details please refer to
the section 'Right-of-use-assets'). Accordingly property, plant and
equipment declined due to the delivery of aircrafts. Depreciation
and amortisation of EUR172.6m led to a further decrease in
property, plant and equipment. 11. Right-of-use assets
Compared to 30 September 2021 right-of-use assets decreased by
EUR15.1m to EUR2,994.1m. Depreciation charged of EUR378.7m led to a
decrease in right-of-use assets. The reclassification of an
aircraft into property, plant and equipment led to a further
reduction of right-of-use assets by EUR16.9m (in this context, we
refer to the section 'Property, plant and equipment').
Contrarily, additions totalled EUR150.7m, of which EUR142.0m was
attributable to the delivery of six new aircraft which were
purchased and then sold and leased back. Furthermore, foreign
exchange translation led to an increase in right-of-use assets of
EUR169.9m. Modifications and reassessments of existing lease
contracts increased the right-of-use assets by EUR58.1m. The
increase is mainly due to contract extensions related to leased
aircraft (EUR38.6m), leased travel agencies (EUR12.5m) and hotel
leases (EUR11.3m).
The corresponding liabilities are explained in the section
'Lease Liabilities'. 12. Trade and other receivables
In the first quarter of the current financial year the
reorganisation of insolvency protection for package tours became
effective in Germany. Accordingly, the liquid funds which were
provided by TUI to the former insolvency protection fund were
returned. Partially offsetting this, receivables for security
deposits for the travel insurance and receivables from deferred
purchase price payments relating to the disposal of Nordotel S.A
were recognised.
The increase in the current trade and other receivables is
related to the resumption of travel activity and increased
bookings. 13. Other financial assets
The increase of other financial assets relates to short-term
financial investments, which were issued to secure advance payments
from customers. 14. Assets held for sale
As at 30 June 2022, no assets were classified as held for sale.
During the period under review, there were no reclassifications to
assets held for sale.
As at the end of the prior financial year, assets classified as
held for sale exclusively consisted of assets of the Nor-dotel
disposal group in the Hotels & Resorts segment worth EUR96.5m
as well as the associated liabilities of EUR50.6m. The sale of this
disposal group was completed in October 2021. In this context,
please refer to the section 'Divest-ments'. 15. Pension provisions
and similar obligations
The pension provisions for unfunded plans and plans with
underfunding decreased by EUR348.3m to EUR586.8m compared to the
end of the previous financial year.
The overfunding of funded pension plans reported in other
non-financial assets increased by EUR62.3m to EUR199.4m compared to
30 September 2021.
This development is attributable in particular to remeasurement
effects due to significantly increased interest rate levels in the
UK and the Eurozone. 16. Financial liabilities
Non-current financial liabilities decreased by EUR1,408.1m to
EUR1,628.0m compared to 30 September 2021. This de-crease was
primarily attributable to a decrease in liabilities to banks of
EUR1,339.2m as well as to a contractually agreed early redemption
of 913 partial option bonds on 1 April 2022. Of this amount,
EUR91.3m is accounted for by the nominal value of the partial
option bonds and EUR7.2m by interest and early repayment penalties.
The remaining 587 partial bonds shown under non-current financial
liabilities are not affected by the early redemption, nor are the
approx. 58.7m call options on TUI shares, which are legally and
financially separated from the warrant bond.
The main financing instrument is a syndicated revolving credit
facility (RCF) between TUI AG and the existing bank-ing syndicate
which from 2020, included the KfW. The volume of this revolving
credit facility totals EUR3.635bn at 30 June 2022. At 31 March 2022
the size of the unused loan commitments under the separate KfW
credit line within this syndicated revolving credit facility was
reduced by EUR413.7m in April 2022 as well as by EUR336.0m in
May.
In addition, there has been a separate syndicated revolving
credit facility of EUR170.0m. This credit facility was fully
cancelled in April 2022.
At 30 June 2022, the amounts drawn under the revolving credit
facilities totalled EUR339.5m (30 September 2021 EUR1,852.9m).
Current financial liabilities decreased by EUR131.0m to
EUR153.6m at 30 June 2022 compared to EUR284.6m at 30 Sep-tember
2021. The decrease results primarily from a reduction in
liabilities to banks.
For more details on the terms, conditions and the reductions of
the credit lines as well as the redemption of the bond with
warrants, please refer to the section "Going Concern Reporting
under the UK Corporate Governance Code". 17. Lease liabilities
Compared to 30 September 2021, the lease liabilities increased
by EUR1.9m to EUR3,231.3m. Additions from newly leased contracts
led to an increase in lease liabilities of EUR163.6m, of which
EUR154.4m relate to the addition of six new aircraft. Furthermore,
lease liabilities increased by EUR205.9m due to foreign exchange
translation and by EUR117.6m due to interest charges. Changes and
remeasurements of existing leases resulted in an increase in lease
liabilities of EUR58.3m. On the other hand, payments of EUR546.9m
led to a decline in lease liabilities. 18. Other financial
liabilities
The other financial liabilities include touristic advance
payments received for tours cancelled because of COVID-19
restrictions of EUR33.3m (as at 30 September 2021 EUR204.6m), for
which immediate cash refund options exist and which have to be
repaid shortly if the customer opts for payment. Please see the
following section for more details. 19. Touristic advance payments
received
Apart from the immediate cash refund option in certain
jurisdictions, TUI Group offers its customers voucher/refund
credits for trips cancelled because of the COVID-19 crisis. If
these voucher/refund credits are not used for future bookings
within a specified period, the customer is entitled to a refund of
the voucher value. The entitlement to a refund of the voucher value
represents a financial liability. Due to the high level of
uncertainty regarding the further development of the COVID-19
crisis and customer behavior, it is not possible for TUI Group to
reliably estimate the extent of utilization of the voucher/refund
credits for future bookings. As at 30 June 2022, the touristic
advance payments received include no advance payments (as at 30
September 2021 EUR2.4m) for cancelled trips for which customers
have received voucher/refund credits which may have to be refunded
after a certain period of time. 20. Changes in equity
Overall, equity increased by EUR228.4m when compared to 30
September 2021, from EUR-418.4m to EUR-190.0m.
In October 2021, TUI AG carried out a capital increase for cash.
523.5m shares were issued. In May 2022, TUI AG carried out an
additional capital increase for cash. 162.3m shares were issued. In
total, the Company's subscribed capital increased due to the
capital increases in the nominal amount of EUR1.00 per share by
EUR685.8m.
The capital reserve increased by EUR837.1m in total. The change
results from an increase related to the premium of the capital
increases in the amount of EUR872.2m and a decrease due to
offsetting of expenses incurred from capital measures in the amount
of EUR35.1m.
The Silent Participation II was repaid early on 30 June 2022 in
the amount of EUR671.0m. As part of this repayment, coupons and
additional remuneration of EUR54.4m were paid. Of this, EUR51.0m
directly reduces equity, while EUR3.4m is to be shown as interest
expense.
In the first nine months of the financial year 2022, TUI AG paid
no dividend (previous year: no dividend).
The Group's loss in the first nine months of the financial year
2022 is still significantly attributable to measures taken to
contain the spread of Covid-19. In addition, after the restart of
travel activities, the seasonal swing in tourism also has an effect
again.
The proportion of gains and losses from hedging instruments for
effective hedging of future cash flows includes an amount of
EUR100.9m (pre-tax) carried under other comprehensive income in
equity outside profit and loss (previous year EUR92.9m).
The revaluation of pension obligations is also recognised under
other comprehensive income directly in equity without effect on
profit and loss. 21. Financial instruments
Carrying amounts and fair values according to classes and measurement categories according to IFRS 9 as at 30 Jun 2022
Category according to IFRS 9
At Fair value with no Fair value with no Fair value Fair value
EUR million Carrying amortised effect on profit and effect on profit and through of financial
amount cost loss without recycling loss with recycling profit and instruments
loss
Assets
Trade receivables
and other
receivables
thereof
instruments 1,400.1 1,263.2 - - 136.9 1,401.5
within the scope
of IFRS 9
thereof
instruments 9.4 - - - - 10.5
within the scope
of IFRS 16
Derivative
financial
instruments
Hedging 83.3 - - 83.3 - 83.3
transactions
Other derivative
financial 130.5 - - - 130.5 130.5
instruments
Other financial 125.5 115.6 8.9 - 1.0 124.8
assets
Cash and cash 1,583.4 1,583.4 - - - 1,583.4
equivalents
Liabilities
Financial 1,781.6 1,781.5 - - - 1,501.4
liabilities
Trade payables 2,787.5 2,787.5 - - - 2,787.5
Derivative
financial
instruments
Hedging 17.8 - - 17.8 - 17.8
transactions
Other derivative
financial 27.5 - - - 27.5 27.5
instruments
Other financial 137.2 137.2 - - - 137.2
liabilities
Carrying amounts and fair values according to classes and measurement categories according to IFRS 9 as at 30 Sep 2021
Category according to IFRS 9
At Fair value with no Fair value with no Fair value Fair value
EUR million Carrying amortised effect on profit and effect on profit and through of financial
amount cost loss without recycling loss with recycling profit and instruments
loss
Assets
Trade receivables
and other
receivables
thereof
instruments 769.2 661.1 - - 108.1 783.2
within the scope
of IFRS 9
thereof
instruments 11.1 - - - - 11.7
within the scope
of IFRS 16
Derivative
financial
instruments
Hedging 4.5 - - 4.5 - 4.5
transactions
Other derivative
financial 57.8 - - - 57.8 57.8
instruments
Other financial 24.4 12.1 10.3 - 2.0 24.4
assets
Cash and cash 1,583.9 1,586.1 - - - 1,586.1
equivalents
Liabilities
Financial 3,320.7 3,320.8 - - - 3,359.7
liabilities
Trade payables 2,052.4 2,071.9 - - - 2,071.9
Derivative
financial
instruments
Hedging 0.4 - - 0.4 - 0.4
transactions
Other derivative
financial 23.4 - - - 23.4 23.4
instruments
Other financial 318.9 318.9 - - - 318.9
liabilities
The amounts shown in the column 'carrying amount' (as shown in
the balance sheet) in the tables above can differ from those in the
other columns of a particular row since the latter includes all
financial instruments incorporating those financial instruments
which are part of disposal groups according to IFRS 5. In the
balance sheet, financial instruments, which are part of a disposal
group, are shown separately. Further details on this can be found
in the consolidated financial statements as of 30 September
2021.
The instruments measured at fair value through other
comprehensive income (OCI) within the other financial assets class
are investments in companies based on medium to long-term strategic
objectives. Recording all short-term fluctuations in the fair value
in the income statement would not be in line with TUI Group's
strategy; these equity instruments were, therefore, designated as
at fair value through OCI.
In the period under review, the fair values of other current
receivables and current liabilities to banks were determined in
line with the past financial year, taking account of yield curves
and the respective credit risk premium (credit spread) based on
credit rating. Thus, as an adjustment to the current market
conditions due to the implications of the COVID-19 pandemic to the
business activities, the assumption that the carrying amount
approximately corresponds to the fair value due to the short
remaining term has been rejected.
The fair values of non-current trade receivables, other
receivables and other financial assets correspond to the present
values of the cash flows associated with the assets, taking account
of current interest parameters which reflect market and
counterparty-related changes in terms and expectations. For cash
and cash equivalents, current trade receivables, current trade
payables and other financial liabilities the carrying amount
approximates the fair value due to the short remaining term.
The COVID-19 pandemic significantly impacted business operations
and the existing hedging strategy for currency risks and fuel price
risks. Due to numerous travel restrictions and limitations in the
past two financial years, the occurrence of numerous hedged
underlying transactions could no longer be assessed as highly
likely, causing a decline in fuel price and currency hedge
requirements and therefore requiring the prospective termination of
these hedges.
For the hedges so affected, occurrence of the underlying
transactions can no longer be expected for a future point in time,
so that all accrued amounts from the change in the value of the
relevant hedging instruments were reclassified from cash flow hedge
reserve (OCI) to the cost of sales in the income statement. Despite
the significant increase in bookings, EUR+0.4m were reclassified
from foreign currency hedges in the current financial year. All
future changes in the value of these de-designated hedges are taken
to the cost of sales in the income statement through profit and
loss and recognised as other derivative financial instruments from
the date of the termination of the cash flow hedge accounting. At
30 June 2022 only foreign currency hedges have been de-designated
as the highly expected forecasted transactions did not occur. The
fair value of these reclassified hedging instruments totalled
EUR+0.7m at a nominal volume of EUR12.1m.
Furthermore, the significant increase in TUI Group's credit risk
had a direct impact on the retrospective hedge effectiveness test,
because when calculating retrospective effectiveness, the credit
risk is included in the derivative instrument entered into with the
counterparty, but not in the hypothetical derivative. As a result,
fuel price, interest rate and currency hedges had to be
de-designated as they no longer met the effectiveness requirements
of IAS 39. All future changes in the value of these de-designated
fuel and foreign currency hedges are taken to the cost of sales,
whilst interest rate hedges are recognised in the financial result,
in the income statement through profit and loss, and recognised as
other derivative financial instruments from the date of the
termination of the cash flow hedge accounting. At 30 June 2022, the
fair value of these reclassified fuel price hedges totalled
EUR+79.6m at a nominal value of EUR107.3m, while the fair value of
the interest rate hedges amounted to EUR+2.7m at a nominal volume
of EUR354.5m and the fair value of foreign currency hedges totalled
EUR+8.2m at a nominal volume of EUR85.7m.
Aggregation according to measurement categories under IFRS 9 as at 30 Jun 2022
EUR million Carrying amount of financial instruments Fair Value
Total
Financial assets
at amortised cost 2,962.2 2,962.9
at fair value - recognised directly in equity without recycling 8.9 8.9
at fair value - through profit and loss 268.4 268.4
Financial liabilities
at amortised cost 4,706.2 4,426.1
at fair value - through profit and loss 27.5 27.5
Aggregation according to measurement categories under IFRS 9 as at 30 Sep 2021
EUR million Carrying amount of financial instruments Fair Value
Total
Financial assets
at amortised cost 2,259.3 2,381.4
at fair value - recognised directly in equity without recycling 10.3 10.3
at fair value - through profit and loss 167.9 167.9
Financial liabilities
at amortised cost 5,711.6 5,750.5
at fair value - through profit and loss 23.4 23.4
Fair value measurement
The table below presents the fair values of recurring,
non-recurring and other financial instruments measured at fair
value in line with the underlying measurement level. The individual
measurement levels have been defined as follows in line with the
inputs:
-- Level 1: (unadjusted) quoted prices in active markets for
identical assets or liabilities.
-- Level 2: inputs for the measurement other than quoted market
prices included within Level 1 that areobservable in the market for
the asset or liability, either directly (as quoted prices) or
indirectly (derivablefrom quoted prices).
-- Level 3: inputs for the measurement of the asset or liability
not based on observable market data.
Hierarchy of financial instruments measured at fair value as at 30 Jun 2022
Fair value hierarchy
EUR million Total Level 1 Level 2 Level 3
Assets
Other receivables 136.9 - - 136.9
Other financial assets 9.9 - - 9.9
Derivative financial instruments
Hedging transactions 83.3 - 83.3 -
Other derivative financial instruments 130.5 - 130.5 -
Liabilities
Derivative financial instruments
Hedging transactions 17.8 - 17.8 -
Other derivative financial instruments 27.5 - 27.5 -
Hierarchy of financial instruments measured at fair value as of 30 Sep 2021
Fair value hierarchy
EUR million Total Level 1 Level 2 Level 3
Assets
Other receivables 108.1 - - 108.1
Other financial assets 12.3 - - 12.3
Derivative financial instruments
Hedging transactions 4.5 - 4.5 -
Other derivative financial instruments 57.8 - 57.8 -
Liabilities
Derivative financial instruments
Hedging transactions 0.4 - 0.4 -
Other derivative financial instruments 23.4 - 23.4 -
At the end of every reporting period, TUI Group checks whether
there are any reasons for reclassification to or from one of the
measurement levels. Financial assets and financial liabilities are
generally transferred out of Level 1 into Level 2 if the liquidity
and trading activity no longer indicate an active market. The
opposite situation applies to potential transfers out of Level 2
into Level 1. In the reporting period, there were no transfers
between Level 1 and Level 2.
Reclassifications from Level 3 to Level 2 or Level 1 are made if
observable market price quotations become available for the asset
or liability concerned. In the reporting period there were no other
transfers from or to Level 3. TUI Group records transfers from or
to Level 3 at the date of the obligating event or occasion
triggering the transfer.
Level 1 financial instruments
The fair value of financial instruments for which an active
market exists is based on quoted prices at the reporting date. An
active market exists if quoted prices are readily and regularly
available from an exchange, dealer, broker, pricing service or
regulatory agency and these prices represent actual and regularly
occurring market transactions on an arm's length basis. These
financial instruments are classified as Level 1. The fair values
correspond to the nominal amounts multiplied by the quoted prices
at the reporting date. Level 1 financial instruments primarily
comprise shares in listed companies classified as at fair value
through OCI and bonds issued classified as financial liabilities at
amortised cost.
Level 2 financial instruments
The fair values of financial instruments not traded in an active
market, e.g., over-the-counter (OTC) derivatives, are determined by
means of valuation techniques. These valuation techniques make
maximum use of observable market data and minimise the use of
Group-specific assumptions. If all essential inputs for the
determination of the fair value of an instrument are observable,
the instrument is classified as Level 2.
If one or several key inputs are not based on observable market
data, the instrument is classified as Level 3.
The following specific valuation techniques are used to measure
financial instruments:
-- For OTC bonds, debt components of warrants and convertible
bonds, liabilities to banks, promissory notesand other non-current
financial liabilities as well as for current other receivables,
current financial liabilitiesand non-current trade and other
receivables, the fair value is determined as the present value of
future cashflows, taking account of observable yield curves and the
respective credit spread, which depends on the creditrating.
-- The fair value of over-the-counter derivatives is determined
by means of appropriate calculation methods,e.g. by discounting the
expected future cash flows. The forward prices of forward
transactions are based on thespot or cash prices, taking account of
forward premiums and discounts. The fair values of optional hedges
arecalculated based on option pricing models. The fair values
determined on the basis of the Group's own systems areperiodically
compared with fair value confirmations of the external
counterparties.
-- Other valuation techniques, e.g., discounting future cash
flows, are used to determine the fair values ofother financial
instruments.
Level 3 financial instruments
The table below presents the fair values of the financial
instruments measured at fair value on a recurring basis, classified
as Level 3:
Financial assets measured at fair value in Level 3
EUR million Other receivables IFRS9 Other financial assets IFRS 9
Balance as at 1 Oct 2020 - 10.6
Additions 108.1 -
sale 108.1 -
Disposals - - 0.1
sale - - 0.1
Total gains or losses for the period - - 0.1
recognised in other comprehensive income - - 0.1
Foreign currency effects - 1.9
Balance as at 30 Sep 2021 108.1 12.3
Balance as at 1 Oct 2021 108.1 12.3
Additions 30.6 -
sale 30.6 -
Disposals - 0.9
Total gains or losses for the period - 1.8 - 1.4
recognised through profit and loss - 1.8 -
recognised in other comprehensive income - - 1.4
Foreign currency effects - - 1.9
Balance as at 30 Jun 2022 136.9 9.9
Evaluation process
The fair value of financial instruments in level 3 has been
determined by TUI Group's financial department using the discounted
cash flow method. This involves the market data and parameters
required for measurement being compiled or validated.
Non-observable input parameters are reviewed based on internally
available information and updated if necessary.
In principle, the unobservable input parameters relate to the
following parameters: the (estimated) EBITDA margin is in a range
between -4.2% and 26.2% (30 September 2021: -4.2% and 22.5%). The
constant growth rate is 1% (30 September 2021: 1%). The weighted
average cost of capital (WACC) is in a range between 9.75%-10.0%
(30 September 2021: 8.8-9.9%). Due to materiality, no detailed
figures have been provided. With the exception of the WACC, there
is a positive correlation between the input factors and the fair
value.
The decrease of the fair values of the Other financial assets in
Level 3 mainly results from an valuation effect in the amount of
-EUR1.4m and foreign exchange rate effects in the amount of
-EUR1.9m.
The Other receivables according to IFRS 9 in Level 3 at a
carrying amount of EUR106.3m as at 30 June 2022 (as at 30 September
2021 EUR108.1m) relate to a variable purchase price receivable from
the sale of Riu Hotels S.A., carried as a financial instrument in
the measurement category at fair value through profit and loss. The
fair value is determined using a probability calculation for the
future gross operating profit, taking account of contractual
entitlements to an additional purchase price demand and an
appropriate risk-adjusted discount rate (0.75% to 1.75%, 30
September 2021:
-0.33% to -0.22%). Gross operating profit is defined as total
revenue minus operating expenses. The cash flows from the
contractual claims set out in the underlying Memorandum of
Understanding depend solely on a number of contractually determined
Riu hotels delivering the gross operating profit for calendar years
2022 and 2023.
The variable purchase price payment varies as a function of
delivering the contractually fixed gross operating profit. The
maximum amount is limited. At least 90% of the target gross
operating profit contractually agreed for 2022 or 2023,
respectively, has to be achieved in order to generate a variable
purchase price payment. If the 90% target is not met, no further
purchase price payment will be made. The maximum purchase price
payment totals EUR127.4m. Due to different expectations regarding
target achievement, potential purchase price payments vary between
EUR0 and EUR127.4m.
TUI expects the hotels concerned to deliver around 95% to 100%
of cumulative gross operating profit in calendar year 2022 and
around 100% to 105% in calendar year 2023. The current planning for
the relevant hotels (input parameters) is regularly reviewed by the
responsible accounting staff. In the period under review, within
the scope of subsequent remeasurement a loss of EUR1.8m was
recognised in the income statement in connection with the variable
purchase price receivable from the sale of Riu Hotels S.A. due to
the risk-adjusted discount rate.
Sensitivity analysis shows that an increase in the hotels' gross
operating profit of 10% would result in a change in the present
value of the additional purchase price receivable of EUR19.7m (as
at 30 September 2021 EUR20m), while a reduction in gross operating
profit of 10% would result in a change in the present value of
EUR-94.4m (as at 30 September 2021 EUR-95.9m). An interest rate
shift of +/-100 basis points would alter the present value of the
purchase price receivable by EUR1.1m (as at 30 September 2021
EUR2.0m).
Other receivables in Level 3 in accordance with IFRS 9 include
deferred purchase price receivables from the sale of Nordotel S.A.
with a carrying amount of EUR30.6m at 30 June 2022, measured as a
financial instrument at fair value through profit or loss. The
deferred purchase price payments of EUR10.2m and EUR20.4m are due
after one year and two years, respectively, following the closing
of the transaction on 5 October 2021, taking account of final
purchase price adjustments.
The cash flows of the final purchase price adjustments from the
contractual claims arising from the underlying purchase contract
exclusively depend on the delivery of balance sheet items defined
in the purchase contract for net debt and working capital in the
audited annual financial statements of Nordotel S.A. as per 30
September 2021 under Spanish law. The fair value is determined on
the basis of an estimate of net debt and working capital, taking
account of the contractual claims for additional payments in
adjusted purchase price and an appropriate risk-adjusted discount
rate (-0.14% to +1.13%).
Any deviation from the parameter results in a purchase price
adjustment of the same amount. Sensitivity analysis shows that an
interest rate shift of +/-100 basis points would alter the present
value of the purchase price receivable by around EUR0.3m.
Effects on results
The effects of remeasuring financial assets carried at fair
value through OCI as well as the effective portions of changes in
fair values of derivatives designated as cash flow hedges are
listed in the statement of changes in equity. 22. Contingent
liabilities
As at 30 June 2022, contingent liabilities amounted to EUR103.5m
(as at 30 September 2021 EUR128.7m, previous year adjusted). They
are mainly attributable to the granting of guarantees for the
benefit of hotel and cruises activities and the granting of
guarantees for contingent liabilities from aircraft leasing
agreements. The contingent liabilities are reported at an amount
representing the best estimate of the expenditure required to meet
the potential obligation at the balance sheet date. 23. Other
financial commitments
Nominal values of other financial commitments
EUR million 30 Jun 2022 30 Sep 2021
Order commitments in respect of capital expenditure 2,322.0 2,386.1
Other financial commitments 148.8 91.7
Total 2,470.8 2,477.8
As at 30 June 2022 order commitments in respect of capital
expenditure decreased by EUR64.1m as against
30 September 2021. The decrease in order commitments is
attributed to delivery of aircraft. The reduction is to a greater
extent partially off set by the effects of foreign exchange for
order commitments denominated in non-functional currencies. The
commitments for maintenance and repairs which are reported within
other financial commitments increased particularly in the segment
Hotels & Resorts after the business returned to normality. 24.
Note to the unaudited condensed consolidated Cash Flow
Statement
The cash flow statement shows the flow of cash and cash
equivalents on the basis of a separate presentation of cash inflows
and outflows from operating, investing and financing activities.
The effects of changes in the group of consolidated companies and
of foreign currency translation are eliminated.
In the period under review, cash and cash equivalents decreased
by EUR2.7m to EUR1,583.4m.
In 9M 2022, the cash inflow from operating activities totalled
EUR1,970.6m (9M 2021 cash outflow of EUR1,089.4m),
including an inflow of EUR6.1m (9M 2021 EUR3.8m) from interest
payments, EUR0.3m dividends from non consolidated companies (9M
2021 EUR0.0m) and EUR0.2m dividends from companies using the at
equity method (9M 2021 EUR13.4m). Income tax payments resulted in a
cash outflow of EUR122.1m (9M 2021 EUR4.3m).
The total cash outflow from investing activities totalled
EUR286.5m (9M 2021 cash inflow of EUR125.4m). This includes a cash
outflow for capital expenditure on property, plant and equipment
and intangibles of EUR376.5m. The Group recorded a cash inflow of
EUR112.6m from the divestment of property, plant and equipment and
intangible assets. A sales price adjustment for the sale of the
stakes in Riu Hotels S.A., effected in the prior year, resulted in
a cash outflow of EUR23.9m. A further EUR2.2m relates to cash
balances leaving TUI Group in connection with the sale of Nordotel
S.A. in the financial year under review. While the selling price
had already been partly paid in the prior year, some payments are
still due.
The cash outflow from financing activities totalled EUR-1,662.4m
(9M 2021 cash inflow of EUR1,228.3m). TUI AG recorded a cash inflow
of EUR1,522.9m from capital increases in October 2021 and May 2022
after deduction of transaction costs. At the end of June, TUI AG
fully repaid the Silent Participation II of EUR671.0m plus a coupon
of EUR51.0m, presented as a dividend, to WSF (Economic
Stabilisation Fund).
In the financial year under review, TUI AG decreased its
syndicated credit facility by EUR1,523.4m. TUI Group companies took
out loans worth EUR47.2m. A cash outflow of EUR688.5m resulted from
the redemption of further financial liabilities, including
EUR437.5m for lease liabilities. Interest payments resulted in an
outflow of EUR298.7m.
Moreover, cash and cash equivalents decreased by EUR-24.4m (9M
2021 EUR27.0m) due to changes in exchange rates.
At 30 June 2022, cash and cash equivalents of EUR612.1m were
subject to restrictions (as at 30 September 2021 EUR509.0m).
On 30 September 2016, TUI AG entered into a long term agreement
to close the gap between the obligations and the fund assets of
defined benefit pension plans in the UK. At the balance sheet date
an amount of EUR67.6m is deposited as a security within a bank
account (as at 30 September 2021 EUR46.4m). TUI Group can only use
that cash and cash equivalents if it provides alternative
collateral.
Furthermore, an amount of EUR116.1m (as at 30 September 2021
EUR116.3m) was deposited with a Belgian subsidiary without
acknowledgement of debt by the Belgian tax authorities in financial
year 2013 in respect of long-standing litigation over VAT refunds
for the years 2001 to 2011. The purpose was to suspend the accrual
of interest for both parties. In order to collateralise a potential
repayment, the Belgian government was granted a bank guarantee. Due
to the bank guarantee, TUI's ability to dispose of the cash and
cash equivalents is restricted.
The remaining EUR428.4 (as at 30 September 2021 EUR346.3m)
subject to restrictions relate to cash and cash equivalents to be
deposited due to statutory or regulatory requirements mainly in
order to secure customer deposit and credit card payables. 25.
Reporting segments
Revenue by segment for the period from 1 Oct 2021 to 30 Jun 2022
EUR million External Group 9M 2022 Total
Hotels & Resorts 638.8 271.0 909.8
Cruises 178.8 - 178.8
TUI Musement 287.4 155.5 442.9
Consolidation - - 2.6 - 2.6
Holiday Experiences 1,105.0 423.9 1,528.9
Northern Region 3,262.9 237.4 3,500.3
Central Region 3,053.8 59.9 3,113.7
Western Region 1,465.5 107.0 1,572.5
Consolidation - - 394.1 - 394.1
Markets & Airlines 7,782.2 10.2 7,792.4
All other segments 43.6 3.9 47.5
Consolidation - - 438.0 - 438.0
Total 8,930.8 - 8,930.8
Revenue by segment for the period from 1 Oct 2020 to 30 Jun 2021
EUR million External Group 9M 2021 Total
Hotels & Resorts 157.9 124.3 282.2
Cruises 2.7 - 2.7
TUI Musement 37.5 13.7 51.2
Consolidation - - 1.4 - 1.4
Holiday Experiences 198.2 136.5 334.7
Northern Region 215.1 202.7 417.8
Central Region 707.7 62.2 769.9
Western Region 222.6 97.1 319.7
Consolidation - - 359.5 - 359.5
Markets & Airlines 1,145.5 2.4 1,147.9
All other segments 22.3 3.6 25.9
Consolidation - - 142.6 - 142.6
Total 1,365.9 - 1,365.9
The segment data shown are based on regular internal reporting
to the Executive Board. Since the 2020 fiscal year, the
internationally more commonly used earnings measure "underlying
EBIT" is used for value-based management.
Accordingly, this represents the segment performance indicator
within the meaning of IFRS 8.
We define the EBIT in underlying EBIT as earnings before
interest, income taxes and expenses from the measurement of the
Group's interest rate hedging instruments. Impairment losses on
goodwill are by definition included in EBIT.
Underlying EBIT has been adjusted to exclude certain items
which, due to their size and frequency of occurrence, make it
difficult or distort the assessment of the operating performance of
the business areas and the Group. These items include gains and
losses on the disposal of financial assets, significant gains and
losses on the disposal of assets, and significant restructuring and
integration expenses. In addition, all effects from purchase price
allocations, incidental acquisition costs and contingent purchase
price payments are adjusted. Impairment losses on goodwill have
also been eliminated in the reconciliation to underlying EBIT.
In 9M 2022, underlying EBIT includes results of investments
accounted for using the equity method of EUR-9.2m (9M 2021
EUR-226.5m). For a split up by segments, please refer to Note 6
'Share of result of investments accounted for using the equity
method'.
Underlying EBIT by segment
9M 2022 9M 2021
EUR million
Hotels & Resorts 189.7 - 268.6
Cruises - 102.3 - 234.6
TUI Musement - 15.7 - 96.7
Holiday Experiences 71.7 - 599.9
Northern Region - 445.7 - 708.1
Central Region - 51.8 - 377.4
Western Region - 159.5 - 247.3
Markets & Airlines - 657.1 - 1,332.8
All other segments - 45.1 - 45.9
Total - 630.5 - 1,978.6
Impairment on other intangible assets, property, plant and equipment and right of use assets
EUR million 9M 2022 9M 2021
Hotels & Resorts - 29.7
Holiday Experiences - 29.7
Northern Region 3.2 20.3
Central Region 1.3 3.3
Markets & Airlines 4.5 23.6
All other segments 0.2 24.1
Total 4.7 77.4
Reconciliation to underlying EBIT of TUI Group
EUR million 9M 2022 9M 2021
Earnings before income taxes - 1,032.6 - 2,390.7
plus: Net interest expenses (excluding expense / income from measurement of interest hedges) 384.4 336.7
plus / less: (Expenses) income from measurement of interest hedges - 8.8 7.4
EBIT - 657.0 - 2,046.6
Adjustments:
plus: Separately disclosed items 5.0 43.5
plus: Expense from purchase price allocation 21.5 24.4
Underlying EBIT - 630.5 - 1,978.6
Net expenses for the separately disclosed items of EUR5.0m in
the first nine months of financial year 2022 include restructuring
expenses in the Northern Region (-EUR1m), Central Region (EUR25m)
and TUI Musement (EUR1m) segments. In addition, adjustments were
made for income of EUR22m from the divestment of the stake in
Nordotel S.A, fully consolidated in the Hotels & Resorts
segment, to Grupotel S.A., a joint venture of the TUI Group, offset
by expenses of EUR2m from the revaluation of a purchase price
receivable.
Net expenses for the separately disclosed items of EUR43.5m in
the first nine months of financial year 2021 include income of
EUR53m from the reversal of restructuring provisions no longer
required in the Central Region due to the lower than expected
reduction in fleet size at TUIfly. In addition, restructuring
expenses of EUR89m were incurred in TUI Musement (EUR11m), Northern
Region (EUR12m), Central Region (EUR8m), Western Region (EUR18m)
and All other segments (EUR40m). Furthermore, disposal results from
the sale of an investment in an aircraft asset company in Northern
Region (-EUR2m) and Central Region (-EUR1m), the sale of two hotel
companies in Hotels & Resorts (-EUR5m) and in Western Region
(EUR2m) as well as an expense from a subsequent purchase price
adjustment of EUR2m in All other segments were adjusted.
Expenses for purchase price allocations of EUR21.5m (previous
year EUR24.4m) relate in particular to the scheduled amortization
of intangible assets from acquisitions made in previous years. 26.
Related parties
Apart from the subsidiaries included in the Interim Financial
Statements, TUI AG, in carrying out its business activities,
maintains direct and indirect relationships with related parties.
All transactions with related parties were executed on an arm's
length basis.
As at 31 December 2021, Unifirm Ltd, Cyprus, held 34.0% of the
shares in TUI AG (as at 30 September 2021 32.0%). Unifirm Ltd was
indirectly controlled by Alexey Mordashov. TUI received voting
rights notifications informing the company that a 4.1% stake in TUI
AG had been transferred to Severgroup LLC, Russia, a company
controlled by Alexey Mordashov, on 28 February 2022 via a number of
share transfers, and that Alexey Mordashov had ceded control over
Unifirm Ltd. The majority shareholder of Unifirm Ltd, which held
29.9% of the shares in TUI AG at the time of the notification of
voting rights, was Ondero Ltd, British Virgin Islands. In a further
regulatory notification TUI has been informed on 18 March 2022 that
Marina Mordashova is the controlling shareholder of Ondero Ltd.
Moreover, the Federal Ministry for Economic Affairs and Climate
Action has informed TUI that it has initiated an assessment
procedure under the Foreign Trade and Payments Act to ascertain
whether the reported transactions are effective. Until the
conclusion of these proceedings the transactions are pending
invalid and the voting rights of Unifirm Ltd may not be
exercised.
Alexey Mordashov was specified on a EU sanctions list on 28
February 2022, Marina Mordashova on 3 June 2022. Thus they do not
have access to the shares in TUI AG controlled by them, the
associated voting rights and economic benefits. This applies
regardless of the outcome of the assessment procedures by the
Federal Ministry for Economic Affairs. Mr Mordashov stepped down
from TUI AG's Supervisory Board with immediate effect on 2 March
2022.
Accordingly Mr Mordashov and Mrs Mordashova and the companies
controlled by them are not related parties to TUI AG.
On 4 March 2022 Mr Vladimir Lukin stepped down from TUI AG's
Supervisory Board with immediate effect. On 1 April 2022 Mrs Sonja
Austermühle and on 31 May 2022 Mrs Helena Murano and Mr Christian
Baier joined the Supervisory Board of TUI AG.
More detailed information on related parties is provided under
section 51 in the Notes to the consolidated financial statements
2021.
Responsibility Statement
To the best of our knowledge, and in accordance with the
applicable reporting principles for interim financial reporting and
in the accordance with (German) principles of proper accounting,
the interim consolidated financial statements give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Group, and the interim Group management report includes
a fair review of the development and performance of the business
and the position of the Group, together with a description of the
principal opportunities and risks associated with the expected
development of the Group for the remaining months of the financial
year.
The Executive Board
Hanover, 8 August 2022
Friedrich Joussen
David Burling
Sebastian Ebel
Peter Krueger
Sybille Reiss
Frank Rosenberger
Review Report
To TUI AG, Berlin/Germany and Hanover/Germany
We have reviewed the condensed interim consolidated financial
statements - comprising the condensed income statement, the
condensed statement of comprehensive income, the condensed
statement of financial position, the condensed statement of changes
in equity, the condensed statement of cash flows as well as
selected explanatory notes to the consolidated financial statements
- and the interim Group management report for the period from 1
October 2021 until 30 June 2022 of TUI AG, Berlin and Hanover,
which are part of the financial report under § 115 WpHG section 7
(Wertpapierhandelsgesetz: German Securities Trading Act). The
preparation of the condensed interim consolidated financial
statements in accordance with the International Financial Reporting
Standards (IFRS) applicable to interim financial reporting as
adopted by the EU, and of the interim group management in
accordance with the requirements of the WpHG applicable to interim
Group management reports is the responsibility of the entity's
executive board. Our responsibility is to issue a review report on
the condensed interim consolidated financial statements and on the
interim Group management report based on our review.
We conducted our review of the condensed interim consolidated
financial statements and of the interim Group management report in
compliance with the German Generally Accepted Standards for the
Review of Financial Statements promulgated by the Institut der
Wirtschaftsprüfer (IDW) and in supplementary compliance with the
International Standard on Review Engagements 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity". Those standards require that we plan and perform
the review to obtain a limited level of assurance to preclude
through critical evaluation that the condensed interim consolidated
financial statements have not been prepared, in material respects,
in accordance with the IFRS applicable to interim financial
reporting as adopted by the EU or that the interim Group management
report has not been prepared, in material respects, in accordance
with the requirements of the WpHG applicable to interim Group
management reports. A review is limited primarily to inquiries of
personnel of the entity and to analytical procedures applied to
financial data and thus provides less assurance than an audit.
Since, in accordance with our engagement, we have not performed an
audit, we do not express audit opinion.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed interim consolidated
financial statements of TUI AG, Berlin and Hanover, have not been
prepared, in material respects, in accordance with the IFRS
applicable to interim financial reporting as adopted by the EU, or
that the interim Group management report has not been prepared, in
material respects, in accordance with the requirements of the WpHG
applicable to interim group management reports.
Hanover/Germany, 8 August 2022
Deloitte GmbH
Wirtschaftsprüfungsgesellschaft
Christoph B. Schenk Annika Deutsch
German Public Auditor German Public Auditor
Cautionary statement regarding forward-looking statements
The present Interim Financial Report contains various statements
relating to TUI Group's and TUI AG's future development. These
statements are based on assumptions and estimates. Although we are
convinced that these forward-looking statements are realistic, they
are not guarantees of future performance since our assumptions
involve risks and uncertainties that could cause actual results to
differ materially from those anticipated. Such factors include
market fluctuations, the development of world market prices for
commodities and exchange rates or fundamental changes in the
economic environment. TUI does not intend to and does not undertake
any obligation to update any forward-looking statements in order to
reflect events or developments after the date of this Report.
Financial calendar
Date
Pre-Close Trading Statement 20 September 2022
Annual Report 2022 14 December 2022
Contacts
Mathias Kiep
Group Director Controlling, Corporate Finance & Investor
Relations
Tel: + 44 (0)1293 645 925 /
+ 49 (0)511 566-1425
Nicola Gehrt
Director, Head of Group Investor Relations
Tel: + 49 (0)511 566-1435
Adrian Bell
Senior Manager Investor Relations
Tel: + 49 (0)511-2332
James Trimble
Investor Relations Manager
Tel: +44 (0)1582 315 293
Stefan Keese
Investor Relations Manager
Tel: + 49 (0)511 566-1387
Jessica Blinne
Junior Manager Investor Relations
Tel: + 49 (0)511 566-1442
Anika Heske
Junior Investor Relations Manager
Tel: + 49 (0)511 566-1437
TUI AG
Karl-Wiechert-Allee 4
30625 Hannover
Tel: + 49 (0)511 566-00
www.tuigroup.com
This Interim Financial Report, the presentation slides and the
video webcast for Q3 2022 (published on 10 August 2022) are
available at the following link:
www.tuigroup.com/en-en/investors
-----------------------------------------------------------------------------------------------------------------------
ISIN: DE000TUAG000
Category Code: QRT
TIDM: TUI
LEI Code: 529900SL2WSPV293B552
Sequence No.: 180275
EQS News ID: 1416653
End of Announcement EQS News Service
=------------------------------------------------------------------------------------
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