TUI AG (TUI) TUI Group Half-Year Financial Report 1 October 2022
- 31 March 2023 10-May-2023 / 08:00 CET/CEST The issuer is solely
responsible for the content of this announcement.
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Half-Year
Financial Report
1 October 2022 - 31 March 2023
Content
Interim Management Report
Summary
Report on changes in expected development
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 2022 to 31 March 2023.
Interim Management Report
Summary
Q2 2023 underlying EBIT of EUR-242.4m delivering a strong
improvement year-on-year (Q2 2022: EUR-329.9m) with the strong
booking momentum continuing into the Summer seasons. Successful
completion of EUR1.8bn capital increase in April
-- Successful completion of capital increase with gross proceeds
of EUR1.8bn following Q2 close1. This enablesfull repayment of WSF
state aid and reduction in the size of KfW RCF to EUR1.1bn and is a
significant measure torestore our balance sheet strength and has
led to a first improvement of our credit rating, with S&P
upgrading to Bwith a positive outlook.
-- 2.4m customers enjoyed a holiday with us in the quarter, an
increase of 0.6m customers versus the prioryear and 88% of Q2 2019
customer levels on a like for like basis2. As a result, average
load factor for the quarterwas 93% (Q2 2022: Load factor 85%).
-- Group revenue of EUR3.2bn, improved significantly across our
segments by a total of EUR1.0bn against theprior year (Q2 2022:
EUR2.1bn), reflecting the strength of demand for our products in a
restriction free travelenvironment with Group revenue above
pre-pandemic levels at improved prices (Q2 2019: EUR3.1bn).
-- Q2 Group underlying EBIT at EUR-242.4m, up by EUR87.5m and
EUR181m on a comparable basis3 (Q2 2022: EUR-329.9mloss), with the
Group results almost back to 2019 levels.? Hotels & Resorts
continued its strong performance reporting a fourth consecutive
quarter above 2019levels and significantly up year-on-year, driven
by good operational performances across our key brands. ? The
recovery in Cruises continues with the segment achieving a fourth
positive quarter since thestart of the pandemic. As a result, the
business recorded a strong improvement against last year boosted
byhigher volumes as well as improved occupancies with a full fleet
able to operate again within a restrictionfree environment. ?
Markets & Airlines operational growth continued in the quarter
generated by higher ASPs and volumes.Results were well ahead of
last year on a comparable basis excluding the positive benefits in
the prior year ofstate aid in Germany and the impact of ineffective
hedge positions.
-- Net debt of EUR-4.2bn as of 31 March 2023 excludes the impact
of the capital increase in April 2023 (31March 2022: EUR-3.9bn). If
retrospectively, net debt is adjusted at 31 March 2023 to include
these proceeds4, netdebt reduces to EUR-3.1bn.
-- A total of 12.9m bookings5 have been taken across the Winter
and Summer seasons with 4.2m bookings addedsince our Q1 2023
Interim Report. Winter 2022/23 closed out in line with expectations
with ASPs well ahead.
-- Easter bookings confirmed the strong customer demand across
all our markets. To date bookings for Summer2023 are significantly
up at +13% on prior year accompanied by higher ASPs. Summer 2023
volumes in the last sixweeks remains strong and are ahead of 2019
levels at +6% accompanied by higher ASPs emphasising the strength
ofcustomer demand and underlining the popularity of our product
offering. In the UK, which is currently 64% sold,bookings are in
line with the prior season and +10% versus pre-pandemic levels
again accompanied by higher ASPs.
-- Given the latest positive booking trends, we are confident in
our Summer 2023 capacity assumption ofbeing close to normalised
2019 Summer levels.
1 For details please refer to page 29
2 Excluding businesses sold and discontinued since 2019
3 Reverse out of Q2 2022 benefit EUR50m COVID cost compensation
from the German state, and EUR43m hedging ineffectiveness
4 Net debt less EUR1bn redemption of drawn credit lines and
EUR0.1bn bond with warrant
5 Bookings up to 30 April 2023 relate to all customers whether
risk or non-risk and includes amendments and voucher
re-bookings
-- During the quarter we have continued to translate our
Sustainability Agenda into actions across ourbusinesses to shape a
more sustainable future for tourism. In airlines, we have a new
agreement in place with Shellon sustainable aviation fuel to
promote production and supply of sustainable aviation fuel (SAF).
TUI Cruisesintroduced a new sustainability strategy with the
ambition to offer their first climate-neutral cruises in 2030.
InHotels & Resorts, we launched the Green Building Guidelines
to drive emission reductions for construction andrefurbishment
projects.
-- Based on the strong booking momentum which is continuing into
the Summer season, we reconfirm ourexpectations to increase
underlying EBIT significantly for financial year 20231.
1 Based on constant currency. In view of the effects from the
war in Ukraine, the assumption for underlying EBIT is subject to
considerable
uncertainty. Amongst others, the greatest area of uncertainty
will be the impact on consumer confidence, should there be further
cost inflation
volatility and/or an escalation of the war in Ukraine
Sustainability as opportunity
-- For TUI Group, sustainability covering all three areas of
economic, environmental and socialsustainability is a fundamental
management principle and a cornerstone of our strategy for
continually enhancingthe value of our company. We firmly believe
that sustainable development is critical to long-term economic
success.Together with our many partners around the world, we are
actively committed to shaping a more sustainable futurefor
tourism.
-- We have near-term targets set for airline, cruises and
hotels, to reduce emissions in line with thelatest climate science.
These 2030 targets were validated by the Science Based Targets
initiative (SBTi) andpublished in our Q1 Interim Report in February
2023. Emission reduction roadmaps have been developed for
eachbusiness area and progress made during the quarter, including:
? In Airlines, a new collaboration agreement has been signed with
Shell to promote the production andsupply of sustainable aviation
fuel (SAF), a key tool to further reduce the carbon footprint of
air transport,these fuels will be produced from circular raw
materials that do not compete with food resources. ? TUI Cruises
has launched it's new sustainability strategy in its 15th
anniversary year as a company. Thestrategy is aligned with the
Sustainability Agenda and covers brands Mein Schiff and Hapag-Lloyd
Cruises. Strategicfields include climate protection, destination
responsibility and sustainable business transformation. The
ambitionis to offer the first climate-neutral cruises by 2030. ?
TUI Hotels & Resorts has published new Green Building
Guidelines for its hotels and TUI's hotel partners.The guidelines
include valuable environmental advice and measures for construction
and refurbishment projects - animportant toolkit for reducing
emissions across hotels. We aim to achieve zero emissions in our
TUI Blue Montafonhotel in Austria by the end of 2023 with further
hotels to follow in Austria and Spain in 2024. ? Within our
destinations we have launched a new eco-mobility project to create
low emission transportoptions. This includes e-bike options in
Rhodes for our destination reps.
TUI Group - financial highlights
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. % Var. % at constant
adjusted adjusted currency
Revenue 3,152.9 2,128.4 + 48.1 6,903.4 4,497.6 + 53.5 + 55.2
Underlying EBIT1
Hotels & Resorts 78.0 23.7 + 229.5 149.7 84.8 + 76.5 + 80.3
Cruises 14.8 - 73.5 n. a. 15.0 - 105.3 n. a. n. a.
TUI Musement - 12.7 - 18.2 + 30.2 - 26.2 - 31.5 + 16.8 + 24.9
Holiday Experiences 80.1 - 68.1 n. a. 138.4 - 51.9 n. a. n. a.
Northern Region - 147.5 - 180.9 + 18.5 - 269.5 - 352.6 + 23.6 + 17.5
Central Region - 102.1 - 24.2 - 321.4 - 131.1 - 82.8 - 58.5 - 60.6
Western Region - 59.2 - 57.0 - 3.9 - 102.9 - 89.4 - 15.1 - 17.9
Markets & Airlines - 308.5 - 262.2 - 17.7 - 503.2 - 524.7 + 4.1 - 0.8
All other segments - 13.9 0.4 n. a. - 30.6 - 26.8 - 14.1 - 14.3
TUI Group - 242.4 - 329.9 + 26.5 - 395.3 - 603.5 + 34.5 + 31.1
EBIT1 - 247.6 - 343.1 + 27.8 - 406.3 - 614.5 + 33.9
Underlying EBITDA - 42.9 - 123.1 + 65.1 15.3 -188.4 n. a.
EBITDA2 - 42.7 - 130.0 + 67.1 15.3 - 185.5 n. a.
Group loss - 326.2 - 321.4 - 1.5 - 558.0 - 707.9 + 21.2
Earnings per share3 EUR - 1.26 - 1.23 - 2.4 - 2.15 - 2.74 + 21.5
Net capex and investment 68.9 83.3 - 17.3 217.8 136.7 + 59.4
Equity ratio (31 Mar)4 % - 6.1 1.5 - 7.6
Net debt (31 Mar) - 4,196.4 - 3,936.0 - 6.6
Employee (31 Mar) 53,961 46,123 + 17.0
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 17.
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 Earnings per share for all periods presented were adjusted for
the impact of the 10-for-1 reverse stock split in February 2023 as
well as the impact of the subscription rights issued in the capital
increase in March 2023.
4 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.
The present Half-Year Financial Report 2023 is based on TUI
Group's reporting structure set out in the Consolidated Financial
Statements of TUI AG as at 30 September 2022. See TUI Group Annual
Report 2022 from page 27. Due to the re-segmentation of Future
Markets from All other segments to Hotels & Resorts, TUI
Musement and Central Region in the current financial year, previous
year's figures have been adjusted.
-- H1 2023 Group revenue of EUR6.9bn was up EUR2.4bn versus
previous year (H1 2022: EUR4.5bn). The Group's H1 2023operating
loss (underlying EBIT) of EUR-395.3m improved by EUR208.2m compared
to previous year (H1 2022: EUR-603.5m).
Trading update - Strong booking momentum continues for Summer
2023 with capacity expected to be close to normalised levels
Markets & Airlines
-- 12.9m bookings1 have been taken across Winter 2022/23 and
Summer 2023 with 4.2m bookings added since ourQ1 2023 Interim
Report, as the strong booking momentum continues.
-- Summer 2023 volumes in the last six weeks remain strong and
are up 6% on 2019 levels accompanied byhigher ASPs emphasising the
strength of customer demand and underlining the popularity of our
product offering.
Winter 2022/23
-- 4.7m bookings were taken for the season with 0.6m added since
our Q1 2023 update.
-- The Winter 2022/23 programme closed with bookings
significantly up at 133% of prior season levels and 88%of Winter
2018/19.
-- ASP held up strongly, +10% higher than the prior Winter
season and ahead of the +8% year-on-yearimprovement we published at
Q1 2023. Compared to Winter 2018/19, ASP was up +29%.
-- In general bookings in the European market are not back to
Winter 2018/2019 levels but we continue tooutperform with UK Winter
bookings returning to pre-pandemic levels at significantly higher
ASPs.
-- Egypt and Cape Verde have grown in popularity with bookings
up +22% and +3% vs. Winter 2018/19respectively.
Trading Markets & Airlines Summer season1
Variation in % versus 2022 2022 2019
Summer 2023 last 6 weeks Summer 2023
Bookings2 + 13 - 1 - 4
ASP + 5 // + 83 + 8 + 26
Summer 2023
-- Easter bookings confirmed the strong customer demand across
all our markets and indications for theSummer season remain
positive. 8.3m bookings have been taken to date, 3.6m more than at
our Q1 2023 update. 55% ofthe programme sold which is +2%pts ahead
of Summer 2022 and broadly in line with Summer 2019.
-- Bookings for Summer 2023 are significantly up +13%
year-on-year and at 96% (+ 7%pts since Q1 2023) ofpre-pandemic
levels.
-- Against Summer 2022, ASP is up +5% and thus notably higher
than the +2% comparison we published at Q12023. On a like-for-like
basis, ASP is up +8% against the prior season, excluding Summer
2022 re-bookingsrolled-forward from previous seasons. This increase
highlights customers' continued willingness to prioritise spendon
travel and experiences. Compared to Summer 2019, ASP remains
significantly up at +26%.
-- In the last six weeks, booking momentum has remained strong,
+6% ahead of the Summer 2019 comparisonreconfirming the positive
and encouraging trends for this Summer.
-- Spain, Greece and Turkey continue to be popular Summer
destinations for our customers.
-- The UK market continues to be the most advanced sold at 64%.
Bookings are in line with the prior seasonand +10% versus
pre-pandemic levels again accompanied by higher ASPs.
-- Given the latest positive booking trends, we are confident in
our Summer 2023 capacity assumption ofbeing close to normalised
2019 Summer levels.
1 Depending on the source market, Summer season starts in April
or May and ends in September, October or November.
2 Bookings up to 30 April 2023 relate to all customers whether
risk or non-risk and include amendments and voucher re-bookings
3 Excludes UK Summer 2022 re-bookings rolled over from previous
season, some of which included a rebooking incentive
Holiday Experiences
Trading Holiday Experiences
H2 20231
Variation in % versus H2 2022
Hotels & Resorts2
Available bed nights3 + 5
Occupancy %4 + 3 % points
Cruises
Available passenger cruise days5 - 1
Occupancy %6 + 22 % points
TUI Musement
Experiences sold + mid-double digit %
-- Hotels & Resorts - Number of available bed nights for H22
is ahead of prior year at +5% and slightlyahead of our Q1 Update.
Booked occupancy is up year-on-year at +3%pts for H2. Average daily
rates are +8% aheadyear-on-year for H2 driven mainly by Riu. Key
destinations in H2 are Turkey, the Caribbean, the Balearics,
Greece,the Canaries and Cape Verde.
-- Cruises - Our three brands continue to operate a full fleet
of in total sixteen ships. H2 availablepassenger cruise days are
however slightly behind at -1%1 due to the current refurbishment of
Mein Schiff Herzafter its transfer from TUI Cruises to Marella and
before it returns to service at the beginning of June for thesummer
season. Booked occupancy rates are up +22%pts for H2, developing,
for many Cruises, close to the peaks lastseen in 2019. 2023 booked
ticket rates for many cruises are above pre-pandemic levels.
-- TUI Musement - Our Tours and Activities business continues
its expansion investing into growth whilereturning to 2019
profitability. The segment benefits from our integrated model with
a global product offering incities as well as sun and beach
locations, and growth of third-party sales through the TUI Musement
platform. Thetransfer business, providing support to our guests in
their destination, is expected to develop in line with ourMarkets
& Airlines capacity assumptions in 2023. Sales to date for our
Experiences business, providing excursions,activities and tickets,
are up mid-double digit percent for H21. The significant growth in
Experiences is driven bythe enlarged product offering especially
online and our diversified distribution via TUI, B2C and B2B.
1 H2 corresponds to the summer half-year und covers April to
September. 2023 trading data as of 30 April 2023
2 2023 trading data as of 30 April 2023 excluding Blue
Diamond
3 Number of hotel days open multiplied by beds available in the
hotel (Group owned and leased hotels)
4 Occupied beds divided by available beds (Group owned and lease
hotels)
5 Number of operating days multiplied by berths available on the
operated ships
6 Achieved passenger cruise days divided by available passenger
cruise days
Net debt
Net debt of EUR-4.2bn as of 31 March 2023 excludes the impact of
the capital increase in April 2023 (31 March 2022: EUR-3.9bn). If
retrospectively, net-debt is adjusted at 31 March 2023 to include
the proceeds7, net debt reduces to EUR3.1bn.
7 Net debt less EUR1bn redemption of drawn credit lines and
EUR0.1bn bond with warrant
Strategic priorities
The TUI Group's strategy outlined in the Annual Report 20221 and
at our FY2022 results presentation, will be continued in the
current financial year.
TUI's strategy aims to deliver growth in both Holiday
Experiences and Markets & Airlines, embedded in one central
customer ecosystem, underpinned by our sustainability agenda and
our people. Our Holiday Experiences business strategy focuses on
asset-right growth in differentiated content and expanding the
customer base with multi-channel distribution. Having accelerated
our strategic transformation of Markets & Airlines during the
pandemic, and fully implemented our Global Realignment Programme,
our business strategy is now focused on profitable growth. This
will be achieved by offering more product choice, growing our
customer ecosystem into untapped segments, and increasing customer
value. This includes increasing the volume and proportion of
dynamically sourced packages, as well as significantly increasing
our component offer in accommodation only and flight only.
We also aim to further improve our cash position focusing on
optimising working capital and cash from operations and maintaining
disciplined capital expenditure through by asset right growth. In
April 2023, we successfully completed a EUR1.8bn rights issue,
facilitating the full repayment of the remaining state aid
instruments granted by the German Economic Stabilization Fund (WSF)
and enabling a significant reduction in the size of our KfW credits
lines as well as a repayment of current drawings under our credit
lines in the same magnitude. This is a significant measure to
restore our balance sheet strength as well as reducing net interest
and has led to a first improvement in our credit rating, with
S&P upgrading to B with a positive outlook.
FY23 Assumptions2 - Based on the strong booking momentum, which
is continuing into the Summer season, we confirm our expectations
for financial year 2023 that underlying EBIT will increase
significantly.
Mid-term ambitions - We have a clear strategy to accelerate
profitable market growth with new customer segments and more
product sales. Our mid-term 2025/26 ambitions are for underlying
EBIT to significantly build on EUR1.2bn3. We have a target to
return to a gross leverage ratio4 of well below 3.0x and aim to
return to a credit rating in line with the pre-pandemic rating of
BB / Ba territory.
1 Details on our strategy see TUI Group Annual Report 2022 from
page 23
2 Based on constant currency. In view of the effects from the
war in Ukraine, the assumption for underlying EBIT is subject to
considerable
uncertainty. Amongst others, the greatest area of uncertainty
will be the impact on consumer confidence, should there be further
cost inflation
volatility and/or an escalation of the war in Ukraine
3 FY19 underlying EBIT of EUR893m including EUR293m Boeing Max
cost impact
4 Defined as as gross debt (Financial liabilities incl. lease
liabilities and net pension obligation) divided by reported
EBITDA
Report on changes in expected development
We re-confirm our expectation set out in the Annual Report 2022
for a significant increase in TUI Group's underlying EBIT in
financial year 20235 compared with 2022.
We have updated the following expectations for financial year
2023 described in the Annual Report 2022 as follows:
For financial year 2023, we now expect a net negative effect
from adjustments in a range of EUR40m to EUR60m (previously EUR60m
to EUR80m).
Against the backdrop of the net cash inflows from the capital
increase completed in April 2023 and the repayments to the German
Economic Stabilisation Fund (WSF), we now expect the Group's net
debt to be around EUR2.4bn at the end of financial year 2023
(previously broadly stable).
We continue to consider the remaining assumptions for financial
year 2023 made in the Annual Report 2022 to be valid. See also TUI
Group Annual Report 2022 from page 52 onwards.
5 Based on constant currency
Consolidated earnings
Revenue
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Hotels & Resorts 218.3 181.0 + 20.6 429.2 379.3 + 13.2
Cruises 141.9 41.3 + 243.2 257.1 75.5 + 240.5
TUI Musement 130.3 68.1 + 91.3 290.0 145.6 + 99.2
Holiday Experiences 490.5 290.4 + 68.9 976.4 600.4 + 62.6
Northern Region 1,191.5 847.9 + 40.5 2,534.6 1,500.2 + 69.0
Central Region 990.8 622.0 + 59.3 2,375.9 1,610.8 + 47.5
Western Region 477.7 366.2 + 30.5 1,012.6 782.2 + 29.4
Markets & Airlines 2,660.1 1,836.1 + 44.9 5,923.2 3,893.2 + 52.1
All other segments 2.3 1.9 + 22.7 3.9 4.0 - 2.9
TUI Group 3,152.9 2,128.4 + 48.1 6,903.4 4,497.6 + 53.5
TUI Group (at constant currency) 3,210.2 2,128.4 + 50.8 6,982.3 4,497.6 + 55.2
Underlying EBIT
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Hotels & Resorts 78.0 23.7 + 229.5 149.7 84.8 + 76.5
Cruises 14.8 - 73.5 n. a. 15.0 - 105.3 n. a.
TUI Musement - 12.7 - 18.2 + 30.2 - 26.2 - 31.5 + 16.8
Holiday Experiences 80.1 - 68.1 n. a. 138.4 - 51.9 n. a.
Northern Region - 147.5 - 180.9 + 18.5 - 269.5 - 352.6 + 23.6
Central Region - 102.1 - 24.2 - 321.4 - 131.1 - 82.8 - 58.5
Western Region - 59.2 - 57.0 - 3.9 - 102.9 - 89.4 - 15.1
Markets & Airlines - 308.5 - 262.2 - 17.7 - 503.2 - 524.7 + 4.1
All other segments - 13.9 0.4 n. a. - 30.6 - 26.8 - 14.1
TUI Group - 242.4 - 329.9 + 26.5 - 395.3 - 603.5 + 34.5
EBIT
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Hotels & Resorts 78.2 24.3 + 221.4 149.2 106.8 + 39.8
Cruises 14.8 - 73.5 n. a. 15.0 - 105.3 n. a.
TUI Musement - 14.5 - 20.1 + 27.8 - 28.5 - 35.3 + 19.4
Holiday Experiences 78.5 - 69.3 n. a. 135.7 - 33.8 n. a.
Northern Region - 148.6 - 185.2 + 19.7 - 274.4 - 360.7 + 23.9
Central Region - 102.5 - 32.5 - 216.0 - 131.5 - 100.1 - 31.4
Western Region - 60.1 - 57.5 - 4.5 - 102.8 - 90.7 - 13.3
Markets & Airlines - 311.0 - 275.2 - 13.0 - 508.2 - 551.5 + 7.9
All other segments - 15.1 1.4 n. a. - 33.8 - 29.1 - 15.9
TUI Group - 247.6 - 343.1 + 27.8 - 406.3 - 614.5 + 33.9
Segmental performance
Holiday Experiences
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Revenue 490.5 290.4 + 68.9 976.4 600.4 + 62.6
Underlying EBIT 80.1 - 68.1 n. a. 138.4 - 51.9 n. a.
Underlying EBIT at constant currency 83.0 - 68.1 n. a. 143.8 - 51.9 n. a.
Hotels & Resorts
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Total revenue1 358.2 241.8 + 48.2 742.9 524.6 + 41.6
Revenue 218.3 181.0 + 20.6 429.2 379.3 + 13.2
Underlying EBIT 78.0 23.7 + 229.5 149.7 84.8 + 76.5
Underlying EBIT at constant currency 79.3 23.7 + 234.9 152.9 84.8 + 80.3
Available bed nights2 ('000) 7,018 6,935 + 1.2 15,565 15,530 + 0.2
Riu 3,188 3,059 + 4.2 6,412 6,490 - 1.2
Robinson 647 592 + 9.3 1,471 1,321 + 11.4
Blue Diamond 1,601 1,343 + 19.2 2,963 2,667 + 11.1
Occupancy3 (%, variance in % points) 83 65 + 18 79 64 + 15
Riu 93 73 + 20 89 71 + 18
Robinson 67 51 + 16 68 58 + 10
Blue Diamond 87 78 + 9 86 76 + 10
Average daily rate4 (EUR) 100 86 + 16.3 92 78 + 18.5
Riu 83 71 + 16.1 80 68 + 17.2
Robinson 112 115 - 2.3 106 106 - 0.6
Blue Diamond 165 143 + 15.3 159 132 + 20.8
Revenue includes fully consolidated companies, all other KPIs incl. companies measured at equity
1 Total revenue includes intra-Group revenue
2 Number of hotel days open multiplied by beds available (Group owned and leased hotels)
3 Occupied beds divided by available beds (Group owned and leased hotels)
4 Board and lodging revenue divided by occupied bed nights (Group owned and leased hotels)
H1 2023 total revenue in our Hotels & Resorts segment
increased to EUR742.9m, up EUR218.4m year-on-year (H1 2022:
EUR524.6m). H1 underlying EBIT for the segment of EUR149.7m
improved by EUR64.9m year-on-year (H1 2022: EUR84.8m).
Q2 2023 total revenue for the segment grew to EUR358.2m, an
increase of EUR116.5m year-on-year (Q2 2022: EUR241.8m) supported
by the restriction free travel environment across our wide
portfolio of destinations. As a result Q2 underlying EBIT of
EUR78.0m, increased by EUR54.4m year-on-year (Q2 2022: EUR23.7m)
achieving a fourth consecutive quarter above 2019 levels
underlining the strong recovery of this segment post pandemic.
Results were driven by good operational performances across the
hotels businesses, with higher occupancies and rates in a stronger
trading environment. Riu in particular, contributed to the
improvement, with the Caribbean, Canaries and Cape Verde key
destinations.
In the Q2 period, we operated 7.0m available bednights
(capacity), slightly up by 1% on Q2 2022. The overall occupancy
rate for the segment increased across all businesses by a total of
18%pts year-on-year to 83%, driven in particular by the Caribbean
and Spanish destinations. Our hotels across the Caribbean delivered
average occupancy rates of 92%, with Mexico being our most popular
destination achieving 93% average occupancy in the second quarter.
Our hotels in the Canaries also saw high demand during this winter
period, achieving average occupancy of 86%. Other key destinations
in the quarter were Egypt and Cape Verde.
Q2 2023 average daily rate in the segment rose by 16%
year-on-year to EUR100 with rates in particular in the Caribbean
higher. Riu's average daily rate increased by 16% to EUR83 (Q2
2022: EUR71) and Blue Diamond's average daily rate increased by 15%
to EUR165 (Q2 2022: EUR143). Robinson achieved an average daily
rate of EUR112, broadly in line with prior year (Q2 2022:
EUR115).
Future content growth in our Hotels & Resorts segment, will
be delivered both through our well-known hotel brands in existing
and new destinations, as well as introducing new brands to
complement our portfolio. This growth will be achieved in
accordance with an asset-right strategy. During the quarter we
already announced further growth plans within TUI Blue, one of our
TUI signature hotel brands focused on experienced orientated
lifestyle travellers. The expansion, starting in Summer 2023, will
see 14 new openings across four continents during the next two
years with new destinations such as China, Senegal, Cambodia and
Curaçao. The expansion is driven by international partnerships in
which TUI Blue hotels are operated either under management
contracts or by franchisees.
Cruises
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
Revenue1 141.9 41.3 + 243.2 257.1 75.5 + 240.5
Underlying EBIT 14.8 - 73.5 n. a. 15.0 - 105.3 n. a.
Underlying EBIT at constant currency 14.6 - 73.5 n. a. 14.6 - 105.3 n. a.
Available passenger cruise days2 ('000)
Mein Schiff 1,600 1,140 + 40.3 3,223 2,441 + 32.1
Hapag-Lloyd Cruises 145 103 + 41.3 294 251 + 16.9
Marella Cruises 645 364 + 77.3 1,258 742 + 69.6
Occupancy3 (%, variance in % points)
Mein Schiff 93 51 + 42 91 52 + 39
Hapag-Lloyd Cruises 67 29 + 38 66 39 + 27
Marella Cruises 95 53 + 42 93 51 + 42
Average daily rate (EUR)
Mein Schiff4 136 138 - 1.5 137 147 - 6.5
Hapag-Lloyd Cruises4 780 606 + 28.7 725 640 + 13.2
Marella Cruises5 (in GBP) 181 156 + 16.4 170 149 + 14.5
1 No revenue is carried for Mein Schiff and Hapag-Lloyd Cruises as the joint venture TUI Cruises is consolidated at
equity
2 Number of operating days multiplied by berths available on the operated ships. This key figure has changed compared
to previous periods.
3 Achieved passenger cruise days divided by available passenger cruise days
4 Ticket revenue divided by achieved passenger cruise days
5 Revenue (stay on ship inclusive of transfers, flights and hotels due to the integrated nature of Marella Cruises)
divided by achieved passenger cruise days
The Cruises segment comprises the joint venture TUI Cruises in
Germany, which operates cruise ships under the brands Mein Schiff
and Hapag-Lloyd Cruises, and Marella Cruises in UK. The segment
operated a full fleet of 16 ships in the second quarter whilst in
Q2 2022 operations were more limited and only gradually ramped up
as COVID-19 restrictions were eased.
H1 2023 Cruises revenue only includes Marella Cruises, as TUI
Cruises is accounted for using the equity method. Revenue grew to
EUR257.1m, a significant improvement of EUR181.6m year-on-year (H1
2022: EUR75.5m). H1 2023 underlying EBIT for the segment (including
the equity result of TUI Cruises) was EUR15.0m, up EUR120.2m
year-on-year (H1 2022: EUR-105.3m loss).
Q2 2023 revenue reflecting Marella Cruises solely, increased to
EUR141.9m, up EUR100.5m year-on-year (Q2 2022: EUR41.3m). As a
result, Q2 2023 underlying EBIT for the segment (including the
equity result of TUI Cruises), was EUR14.8m, an improvement of
EUR88.3m (Q2 2022: EUR-73.5m loss) with both TUI Cruises and
Marella contributing to the positive development boosted by
increased volumes as well as higher occupancies. The Cruises
business continues to recover post pandemic and this is now the
fourth consecutive positive quarter for the segment with TUI
Cruises achieving Q2 2023 EAT (earnings after tax) of EUR18m.
Mein Schiff - Mein Schiff operated their full fleet of seven
ships against a more limited programme in the previous year where
only six ships were able to return to operation by the end of the
quarter as COVID-19 measures were gradually lifted. The brand
offered itineraries to the Canaries, the Caribbean and around the
world with Asian itineraries resuming in Winter 2022/23 for the
first time since the pandemic. Occupancy of the operated fleet in
Q2 2023 was 93% as a result (Q2 2022: 51%) demonstrating the strong
demand for our German language, premium all-inclusive product. At
EUR136, the average daily rate was close to pre-pandemic levels (Q2
2019: EUR146) and virtually in line with prior year at -1% (Q2
2022: EUR138).
Hapag-Lloyd Cruises - Hapag-Lloyd Cruises, our luxury and
expeditions brand, offering itineraries around the world as well as
voyages to Antarctica. The brand operated all five ships in Q2 2023
against a more limited programme in the prior year. Q2 average
daily rate was EUR780, well above pre-pandemic levels (Q2 2019:
EUR680), and with an increase of 29% on prior year (Q2 2022:
EUR606). Q2 occupancy of the fleet was 67% (Q2 2022: 29%),
underlining the popularity of these cruise post pandemic.
Marella Cruises - Our UK cruise brand offered itineraries to the
Caribbean and the Canaries in Q2 operating all four ships against a
partial fleet deployment in Q2 2022. The business achieved an
average daily rate of GBP181 up 16.4% year-on-year (Q2 2022:
GBP156) and above the pre-pandemic level of GBP154. Occupancy was
at 95%, versus a prior year Q2 of 53% benefiting from an improved
trading environment.
TUI Musement
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Total revenue1 176.1 97.9 + 79.8 400.3 209.3 + 91.3
Revenue 130.3 68.1 + 91.3 290.0 145.6 + 99.2
Underlying EBIT - 12.7 - 18.2 + 30.2 - 26.2 - 31.5 + 16.8
Underlying EBIT at constant currency - 10.9 - 18.2 + 40.2 - 23.6 - 31.5 + 24.9
1 Total revenue includes intra-Group revenue
In TUI Musement, our Tours and Activities business, H1 2023
revenue of EUR290.0m, was up EUR144.4m year-on-year (H1 2022:
EUR145.6m). H1 underlying EBIT loss of EUR-26.2m was an improvement
against prior year (H1 2022: EUR-31.5m loss).
Q2 2023 revenue of EUR130.3m, was up EUR62.2m year-on-year (Q2
2022: EUR68.1m), with an underlying EBIT loss of EUR-12.7m reduced
by EUR5.5m against prior year (Q2 2022: EUR-18.2m loss). The
improvement reflects the advantage of our integrated model and
growth of third-party sales through the TUI Musement platform. The
business continues to accelerate its B2C offering driving growth of
Experiences sales directly to the consumer as part of the strategic
development of this segment. In doing so, we continue to drive and
enhance our digital transformation to enrich the customer
experience throughout all channels and providing support and
expertise in resort both in person and through our dedicated TUI
App.
During the quarter, TUI Musement benefited from increased guest
transfers due to a higher number of tour operator guests, providing
3.4m transfers in the destinations against 2.5m in the same quarter
last year as the trading environment returned to normal across our
global destinations. In addition, 1.3m Experiences were sold, up
0.7m year-on-year (Q2 2022: 0.7m) highlighting the significant
expansion of our business in this segment.
Markets & Airlines
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Revenue 2,660.1 1,836.1 + 44.9 5,923.2 3,893.2 + 52.1
Underlying EBIT - 308.5 - 262.2 - 17.7 - 503.2 - 524.7 + 4.1
Underlying EBIT at constant currency - 323.7 - 262.2 - 23.5 - 528.7 - 524.7 - 0.8
Direct distribution mix1 76 80 - 4 75 77 - 2
(in %, variance in % points)
Online mix2 52 57 - 5 52 55 - 3
(in %, variance in % points)
Customers ('000) 2,439 1,872 + 30.3 5,743 4,146 + 38.5
1 Share of sales via own channels (retail and online)
2 Share of online sales
H1 2023 revenue of EUR5,923.2m, was up EUR2,030.0m year-on-year
(H1 2022: EUR3,893.2m). H1 underlying EBIT reflected the usual
winter seasonal loss for the sector of EUR-503.2m which however,
was an improvement of EUR21.6m year-on-year (H1 2022: EUR-524.7m
loss).
Q2 2023 revenue of EUR2,660.1m, increased EUR824.0m year-on-year
(Q2 2022: EUR1,836.1m). The Q2 underlying EBIT loss of EUR-308.5m
was EUR-46.4m lower year-on-year (Q2 2022: EUR-262.2m loss). Prior
year Q2 included a EUR43m benefit from ineffective hedges and also
EUR50m state compensation within Central Region for loss of
business in the course of the pandemic. Excluding these effects, Q2
2023 results were up EUR47m year-on-year driven by higher prices
and a restriction free trading environment with good demand for our
wide and varied product offering. Traditional short- and medium
haul destinations such as the Canaries and Egypt were again popular
destinations for our customers, with long-haul destinations such as
Mexico and the Dominican Republic also in good demand. However, the
overall segment continued to be impacted by inflationary pressures
especially on energy as well as exchange rate volatility.
A total of 2,439k customers departed in Q2 2023, an increase of
567k customers versus Q2 2022.
Northern Region
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
Revenue 1,191.5 847.9 + 40.5 2,534.6 1,500.2 + 69.0
Underlying EBIT - 147.5 - 180.9 + 18.5 - 269.5 - 352.6 + 23.6
Underlying EBIT at constant currency - 161.5 - 180.9 + 10.7 - 290.8 - 352.6 + 17.5
Direct distribution mix1 92 93 - 1 93 94 - 1
(in %, variance in % points)
Online mix2 67 69 - 2 68 71 - 3
(in %, variance in % points)
Customers ('000) 945 752 + 25.7 2,153 1,417 + 52.0
1 Share of sales via own channels (retail and online)
2 Share of online sales
H1 2023 revenue of EUR2,534.6m, which was up EUR1,034.5m
year-on-year (H1 2022: EUR1,500.2m). H1 underlying EBIT loss for
the region of EUR-269.5m improved by EUR83.1m year-on-year (H1
2022: EUR-352.6m loss).
Northern Region reported Q2 2023 revenue of EUR1,191.5m, which
was up EUR343.6m year-on-year (Q2 2022: EUR847.9m). Q2 2023
underlying EBIT loss for the region of EUR-147.5m improved by
EUR33.4m year-on-year (Q2 2022: EUR-180.9m loss) whereby Q2 2022
included a benefit of EUR16m from ineffective hedges. On a
comparable basis, results in the segment were significantly up by
EUR50m driven by strong customer demand resulting in higher volumes
and prices.
Q2 2023 customer volumes increased by 25.7% to 945k versus 752k
guests in Q2 2022 underlining the market recovery. Online
distribution remained strong at 67%, which was down 2%pts against
prior year (Q2 2022: 69%) but at pre-pandemic levels (Q2 2019:
67%). The comparison against last year is however limited due to
lower volumes and longer retail shop closures resulting from the
COVID-19 restrictions last year. Direct distribution was at 92%
broadly in line with prior year (Q2 2022: 93%) and at pre-pandemic
levels (Q2 2019: 92%).
Central Region
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Revenue 990.8 622.0 + 59.3 2,375.9 1,610.8 + 47.5
Underlying EBIT - 102.1 - 24.2 - 321.4 - 131.1 - 82.8 - 58.5
Underlying EBIT at constant currency - 102.4 - 24.2 - 322.7 - 132.9 - 82.8 - 60.6
Direct distribution mix1 55 58 - 3 54 57 - 3
(in %, variance in % points)
Online mix2 30 33 - 3 29 31 - 2
(in %, variance in % points)
Customers ('000) 829 538 + 54.1 2,061 1,475 + 39.8
1 Share of sales via own channels (retail and online)
2 Share of online sales
H1 2023 revenue of EUR2,375.9m, was up EUR765.0m year-on-year
(H1 2022: EUR1,610.8m) with an underlying EBIT loss for the region
of EUR-131.1m, up EUR48.4m against last year (H1 2022: EUR-82.8m
loss).
Q2 2023 revenue of EUR990.8m, improved EUR368.8m year-on-year
(Q2 2022: EUR622.0m) whilst the underlying EBIT loss for the region
of EUR-102.1m, was EUR77.9m higher year-on-year (Q2 2022: EUR-24.2m
loss). Results in the prior year quarter included a EUR30m benefit
from ineffective hedges. In addition, prior year included the
benefit of a EUR50m state compensation for loss of business in the
course of the pandemic. Excluding these effects, Q2 results were up
EUR3m year on year. The improvement in operational performance was
generated by higher volumes and prices in Germany.
Customer volumes increased by 54.1% to 829k versus prior year
(previous year 538k) following a more restrictive trading
environment in Q2 2022. Online distribution for Central Region
reached 30%, down 3%pts against prior year whereby comparison is
limited due to lower volumes and longer retail shop closures due to
the COVID-19 restrictions last year. Against pre-pandemic levels,
online distribution was up by 10%pts (Q2 2019: 20%) emphasising the
significant development of our online offering in this region in
line with consumer demand. Direct distribution was down 3%pts to
55% against Q2 2022 of 58% but ahead versus pre-pandemic levels (Q2
2019: 48%).
Western Region
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
Revenue 477.7 366.2 + 30.5 1,012.6 782.2 + 29.4
Underlying EBIT - 59.2 - 57.0 - 3.9 - 102.9 - 89.4 - 15.1
Underlying EBIT at constant currency - 60.1 - 57.0 - 5.3 - 105.4 - 89.4 - 17.9
Direct distribution mix1 77 82 - 5 78 82 - 4
(in %, variance in % points)
Online mix2 59 64 - 5 61 63 - 2
(in %, variance in % points)
Customers ('000) 665 582 + 14.3 1,528 1,255 + 21.8
1 Share of sales via own channels (retail and online)
2 Share of online sales
In Western Region H1 2023 revenue of EUR1,012.6m, rose EUR230.4m
year-on-year (H1 2022: EUR782.2m). H1 underlying EBIT loss of
EUR-102.9m, decreased by EUR13.5m year-on-year (H1 2022: EUR-89.4m
loss).
Q2 2023 revenue of EUR477.7m, was up EUR111.5m year-on-year (Q2
2022: EUR366.2m). Q2 underlying EBIT loss of EUR-59.2m, decreased
by EUR2.2m year-on-year (Q2 2022: EUR-57.0m loss). Despite
improving volumes in the region year-on-year, results in the
segment were slightly lower impacted by higher airline operating
costs and the ongoing effect of flight disruptions in Schiphol
airport.
Customer volumes increased by 14.3% to 665k guests year-on-year
(Q2 2022: 582k). Online distribution for region stood at 59%, 5%pt
below prior year but virtually in line with pre-pandemic levels (Q2
2019: 60 %). Direct distribution was down 5%pts to 77% versus last
year (Q2 2022: 82%) but in line with pre-pandemic levels (Q2 2019:
77%).
All other segments
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Revenue 2.3 1.9 + 22.7 3.9 4.0 - 2.9
Underlying EBIT - 13.9 0.4 n. a. - 30.6 - 26.8 - 14.1
Underlying EBIT at constant currency) - 13.9 0.4 n. a. - 30.6 - 26.8 - 14.3
H1 2023 underlying EBIT loss of EUR-30.6m, increased EUR3.8m
year-on-year (H1 2022: EUR-26.8m loss) and Q2 2023 underlying EBIT
loss of EUR-13.9m, increased by EUR-14.3m year-on-year (Q2 2022:
EUR0.4m).
Financial position and net assets
Cash Flow / Net capex and investments / Net debt
In the first half-year of financial year 2023, TUI Group's
business volume was significantly higher than in H1 2022, which was
still impacted by 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.
TUI Group's operating cash outflow in H1 2023 of EUR284.4m
increased by EUR724.2m compared to previous year, due to an
increase in supplier payments as a result of higher business
volumes in the previous Summer, in addition to slightly lower
December bookings received in H1 2023.
Net debt position as at 31 March 2023 of EUR-4.2bn was up
EUR260.4m compared to previous year level (31 March 2022:
EUR-3.9bn).
Net debt
EUR million 31 Mar 2023 31 Mar 2022 Var. %
Financial debt 2,994.1 2,426.5 + 23.4
Lease liabilities 2,834.5 3,146.0 - 9.9
Cash and cash equivalents 1,575.9 1,522.6 + 3.5
Short-term interest-bearing investments 56.3 113.8 - 50.5
Net debt -4,196.4 -3,936.0 + 6.6
Net capex and investments
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Cash gross capex
Hotels & Resorts 62.0 34.0 + 82.4 133.4 56.0 + 138.2
Cruises 15.7 6.8 + 130.9 43.7 28.3 + 54.4
TUI Musement 7.7 6.3 + 22.2 13.0 11.1 + 17.1
Holiday Experiences 85.4 47.1 + 81.3 190.1 95.4 + 99.3
Northern Region 5.5 6.5 - 15.4 11.1 12.8 - 13.3
Central Region 4.2 4.0 + 5.0 6.2 5.1 + 21.6
Western Region 7.3 1.5 + 386.7 11.6 3.3 + 251.5
Markets & Airlines* 16.2 13.4 + 20.9 49.5 23.9 + 107.1
All other segments 33.9 25.9 + 30.9 65.4 50.0 + 30.8
TUI Group 135.5 86.4 + 56.8 305.0 169.3 + 80.2
Net pre delivery payments on aircraft - 24.0 1.8 n. a. 35.0 - 44.6 n. a.
Financial investments - - - 0.3 - n. a.
Divestments - 42.6 - 4.9 - 769.4 - 122.4 12.0 n. a.
Net capex and investments 68.9 83.3 - 17.3 217.8 136.7 + 59.3
* Including EUR-0.8m for Q2 2023 (Q2 2023: EUR1.4m) and EUR20.6m
for H1 2023 (H1 2022: EUR2.7m ) 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 H1 2023 was EUR135.7m higher year-on-year.
This increase was due, amongst others, to higher investments in
Hotels & Resorts, the airline sector and at Marella for the
refurbishment of Mein Schiff Herz prior to its commissioning for
the UK market. Net capex and investments of EUR217.8m increased by
EUR81.1m year-on-year. The divestments include an inflow of EUR71m
from the sale of the stakes in RIU Hotels S.A. in financial year
2021.
Assets and liabilities
EUR million 31 Mar 2023 30 Sep 2023 Var. %
Non-current assets 11,212.2 11,351.7 - 1.2
Current assets 3,881.3 3,903.8 - 0.6
Total assets 15,093.4 15,255.5 - 1.1
Equity - 921.1 645.7 n. a.
Provisions 1,773.9 1,897.4 - 6.5
Financial liabilities 2,994.1 2,051.3 + 46.0
Other liabilities 11,246.5 10,661.0 + 5.5
Total equity, liabilities and provisions 15,093.4 15,255.5 - 1.1
Comments on the consolidated income statement
In the first half of financial year 2023, TUI Group's business
volume was significantly higher than in H1 2022, which was still
impacted by 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.
In H1 2023, consolidated revenue increased by EUR2.4bn
year-on-year to EUR6.9bn.
Unaudited condensed consolidated Income Statement of TUI AG for the period from 1 Oct 2022 to 31 Mar 2023
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
Revenue 3,152.9 2,128.4 +48.1 6,903.4 4,497.6 +53.5
Cost of sales 3,228.5 2,262.0 +42.7 6,889.8 4,734.4 +45.5
Gross profit / loss - 75.6 - 133.6 +43.4 13.7 - 236.9 n. a.
Administrative expenses 250.7 175.3 +43.0 493.4 377.0 +30.9
Other income 5.7 4.6 +23.9 11.7 30.8 - 62.0
Other expenses - 1.1 0.7 n. a. 4.7 1.6 +193.8
Impairment (+) / Reversal of impairment (-) of financial assets 2.7 - 0.2 n. a. 3.5 - 4.5 n. a.
Financial income 19.9 5.1 +290.2 38.3 25.9 +47.9
Financial expense 152.4 133.5 +14.2 284.9 281.3 +1.3
Share of result of investments accounted for using the equity 78.4 - 33.3 n. a. 74.0 - 35.6 n. a.
method
Earnings before income taxes - 376.3 - 466.5 +19.3 - 648.8 - 871.0 +25.5
Income taxes (expense (+), income (-)) - 50.0 - 145.1 +65.5 - 90.8 - 163.1 +44.3
Group loss - 326.2 - 321.4 - 1.5 - 558.0 - 707.9 +21.2
Group loss attributable to shareholders of TUI AG - 364.3 - 335.7 - 8.5 - 620.4 - 720.0 +13.8
Group profit / loss attributable to non-controlling interest 38.1 14.4 +164.6 62.4 12.1 +415.7
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 Q2 Q2 Var. % H1 H1 Var. %
2023 2022 2023 2022
Earnings before income taxes - - +19.3 - - +25.5
376.3 466.5 648.8 871.0
plus: Net interest expenses (excluding expense / income from 122.6 122.2 +0.3 233.1 253.8 - 8.2
measurement of interest hedges)
plus: (Income) expense from measurement of interest hedges 6.0 1.3 +361.5 9.5 2.7 +251.9
EBIT - - +27.8 - - +33.9
247.6 343.1 406.3 614.5
Adjustments:
less / plus: Separately disclosed items - 1.0 6.0 - 1.7 - 3.3
plus: Expense from purchase price allocation 6.3 7.2 12.7 14.3
Underlying EBIT - - +26.5 - - +34.5
242.4 329.9 395.3 603.5
The TUI Group's operating loss adjusted for special items
decreased by EUR208.2m to EUR-395.3m in H1 2023.
-- For further details on the separately disclosed items see
page 46 in the Notes of this Half-YearFinancial Report.
Key figures of income statement
EUR million Q2 Q2 Var. % H1 H1 Var. %
2023 2022 2022 2022
EBITDAR - 29.1 - + 76.2 28.7 - n. a.
122.6 174.0
Operating rental expenses - 13.6 - 7.4 - 83.1 - 13.4 - 11.5 - 16.9
EBITDA - 42.7 - + 67.1 15.3 - n. a.
130.0 185.5
Depreciation/amortisation less reversals of depreciation* - - + 3.9 - - + 1.7
204.8 213.1 421.5 429.0
EBIT - - + 27.8 - - + 33.9
247.6 343.1 406.3 614.5
Income/Expense from the measurement of interest hedges 6.0 1.3 + 9.5 2.7 +
361.5 251.9
Net interest expense (excluding expense/income from measurement of 122.6 122.2 + 0.3 233.1 253.8 - 8.2
interest hedges)
EBT - - + 19.4 - - + 25.5
376.3 466.5 648.8 871.0
* on property, plant and equipment, intangible assets, right of use assets and other assets
Other segment indicators
Underlying EBITDA
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Hotels & Resorts 123.6 68.0 + 81.9 245.3 175.0 + 40.2
Cruises 33.0 - 55.5 n. a. 50.9 - 70.5 n. a.
TUI Musement - 6.5 - 12.3 + 47.2 - 13.9 - 19.6 + 28.9
Holiday Experiences 150.1 0.2 n. a. 282.3 84.9 + 232.5
Northern Region - 73.6 - 105.5 + 30.2 - 116.9 - 202.0 + 42.1
Central Region - 77.9 4.3 n. a. - 81.3 - 26.1 - 212.0
Western Region - 24.7 - 23.4 - 5.5 - 31.9 - 20.4 - 56.5
Markets & Airlines - 175.8 - 124.6 - 41.1 - 229.6 - 248.4 + 7.6
All other segments - 17.2 1.3 n. a. - 37.4 - 24.9 - 50.0
TUI Group - 42.9 - 123.1 + 65.1 15.3 - 188.4 n. a.
EBITDA
EUR million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Hotels & Resorts 123.8 68.6 + 80.4 244.8 196.9 + 24.3
Cruises 33.0 - 55.5 n. a. 50.9 - 70.5 n. a.
TUI Musement - 6.5 - 12.4 + 47.6 - 12.6 - 19.8 + 36.5
Holiday Experiences 150.3 0.8 n. a. 283.2 106.6 + 165.6
Northern Region - 71.9 - 106.3 + 32.4 - 116.0 - 203.4 + 43.0
Central Region - 78.2 - 3.7 n. a. - 81.5 - 41.6 - 95.7
Western Region - 24.9 - 23.1 - 7.8 - 30.3 - 20.0 - 51.4
Markets & Airlines - 174.6 - 133.1 - 31.2 - 227.3 - 265.0 + 14.2
All other segments - 18.4 2.3 n. a. - 40.6 - 27.1 - 49.9
TUI Group - 42.7 - 130.0 + 67.1 15.3 - 185.5 n. a.
Employees
31 Mar 2023 31 Mar 2022 Var. %
Hotels & Resorts 21,425 17,176 + 24.7
Cruises* 77 61 + 26.2
TUI Musement 7,906 5,468 + 44.6
Holiday Experiences 29,408 22,705 + 29.5
Northern Region 10,127 9,606 + 5.4
Central Region 7,086 7,212 - 1.7
Western Region 5,152 4,609 + 11.8
Markets & Airlines 22,365 21,427 + 4.4
All other segments 2,188 1,991 + 9.9
Total 53,961 46,123 + 17.0
* Excludes TUI Cruises (JV) employees. Cruises employees are primarily hired by external crew management agencies.
Corporate Governance
Composition of the Boards
In H1 2023 the composition of the Boards of TUI AG changed as
follows:
Executive Board
As of 30 September 2022 Friedrich Joussen has resigned as Chief
Executive Officer of TUI AG. Sebastian Ebel, previously Chief
Financial Officer, took over as CEO as of 1 October 2022. Also
effective 1 October 2022 the Supervisory Board appointed Mathias
Kiep, previously Group Director Controlling, Corporate Finance and
Investor Relations as the new CFO. Both new appointments have a
contract term of three years.
Frank Rosenberger, Member of the Board of Management responsible
for IT and Future Markets, left TUI Group on 31 October 2022.
In February 2023, the Supervisory Board appointed Peter Krueger
as a member of the Executive Board for a further three years until
the end of December 2026.
Supervisory Board
After Alexey Mordashov and Vladimir Lukin resigned from their
offices in March 2022, Helena Murano and Christian Baier were
appointed as Supervisory Board members of TUI AG by order of
Hanover Local Court dated 31 May 2022. The Executive Board's
applications for appointment by the Court were limited to the
period until the next Annual General Meeting (AGM) in accordance
with recommendation C.15, sentence 2 of the German Corporate
Governance Code. Helena Murano and Christian Baier have now been
elected by the AGM on 14 February 2023, as has Dr Dieter Zetsche,
whose previous term of office ended at the close of this AGM. The
terms of office end at the end of the AGM that resolves on the
discharge of the Supervisory Board for the financial year ending on
30 September 2026, i.e. until 2027.
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, upon which senior
management determines its risk appetite. Full details of our risk
governance framework and principal risks can be found in the Annual
Report 2022.
-- For details of risks and opportunities, see our Annual Report
2022, from page 34 and page 55
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.
Contact restriction measures and travel restrictions were
gradually eased in most countries in the first months of the
calendar year 2022 and business was fully resumed in all segments.
The booking momentum for the financial year 2023 remains
encouraging. Based on past trends, the Executive Board expects
capacity to be close to normalised 2019 levels in summer 2023.
From the Executive Board's perspective, despite the existing
risks, 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 31 March 2023, 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.
The Executive Board does not see any risks that could jeopardise
the company's existence and assumes that compliance with covenants
as of 30 September 2023 and 31 March 2024 is not at risk.
Nevertheless, the general price increase in recent months and a
resulting reduced private budget could dampen customer demand. In
addition, a permanent increase in fuel costs as well as services,
especially those that we purchase in US Dollar, could adversely
affect the development.
Unaudited condensed consolidated Interim Financial
Statements
Unaudited condensed consolidated Income Statement of TUI AG for the period from
1 Oct 2022 to 31 Mar 2023
EUR million Notes Q2 2023 Q2 2022 H1 2023 H1 2022
Revenue (1) 3,152.9 2,128.4 6,903.4 4,497.6
Cost of sales (2) 3,228.5 2,262.0 6,889.8 4,734.4
Gross profit / loss - 75.6 - 133.6 13.7 - 236.9
Administrative expenses (2) 250.7 175.3 493.4 377.0
Other income (3) 5.7 4.6 11.7 30.8
Other expenses (4) - 1.1 0.7 4.7 1.6
Impairment (+) / Reversal of impairment (-) of financial assets (20) 2.7 - 0.2 3.5 - 4.5
Financial income (5) 19.9 5.1 38.3 25.9
Financial expense (5) 152.4 133.5 284.9 281.3
Share of result of investments accounted for using the equity method (6) 78.4 - 33.3 74.0 - 35.6
Earnings before income taxes - 376.3 - 466.5 - 648.8 - 871.0
Income taxes (expense (+), income (-)) (7) - 50.0 - 145.1 - 90.8 - 163.1
Group loss - 326.2 - 321.4 - 558.0 - 707.9
Group loss attributable to shareholders of TUI AG - 364.3 - 335.7 - 620.4 - 720.0
Group profit / loss attributable to non-controlling interest (8) 38.1 14.4 62.4 12.1
Earnings per share
EUR Q2 2023 Q2 2022 H1 2023 H1 2022
Basic and diluted loss / earnings per share* - 1.26 - 1.23 - 2.15 - 2.74
* Earnings per share for all periods presented were adjusted for the impact of the 10-for-1 reverse stock split in
February 2023 as well as the impact of the subscription rights issued in the capital increase in March 2023.
Unaudited condensed consolidated Statement of Comprehensive Income of TUI AG for the period from
1 Oct 2022 to 31 Mar 2023
EUR million Q2 Q2 H1 H1
2023 2022 2023 2022
Group loss - - - -
326.2 321.4 558.0 707.9
Remeasurements of defined benefit obligations and related fund assets - 5.7 133.0 - 205.6
129.4
Fair value profit / loss on investments in equity instruments designated as at FVTOCI 22.6 - 0.2 23.7 - 0.5
Income tax related to items that will not be reclassified (expense (-), income (+)) 2.0 - 40.4 32.9 - 58.5
Items that will not be reclassified to profit or loss 18.8 92.4 - 72.9 146.6
Foreign exchange differences - 2.1 28.1 - 31.8
103.4
Foreign exchange differences outside profit or loss - 2.1 28.2 - 31.9
103.4
Reclassification - - 0.1 - - 0.1
Cash flow hedges - 39.9 65.6 - 61.7
176.2
Changes in the fair value - 53.4 67.0 - 64.5
169.7
Reclassification 13.5 - 1.4 - 6.5 - 2.8
Other comprehensive income of investments accounted for using the equity method that - 5.6 5.6 - 6.6 8.4
may be reclassified
Income tax related to items that may be reclassified (expense (-), income (+)) 9.6 - 13.1 44.3 - 12.5
Items that may be reclassified to profit or loss - 38.0 86.2 - 89.4
241.8
Other comprehensive income - 19.1 178.6 - 236.0
314.7
Total comprehensive income - - - -
345.4 142.8 872.7 471.9
attributable to shareholders of TUI AG - - - -
396.6 166.7 927.4 498.6
attributable to non-controlling interest 51.2 23.9 54.7 26.7
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 31 Mar 2023
EUR million Notes 31 Mar 2023 30 Sep 2022
Assets
Goodwill (9) 2,954.9 2,970.6
Other intangible assets 541.7 507.6
Property, plant and equipment (10) 3,480.0 3,400.9
Right-of-use assets (11) 2,669.7 2,971.5
Investments in joint ventures and associates 804.0 785.4
Trade and other receivables (12), (20) 119.3 131.6
Derivative financial instruments (20) 2.9 26.6
Other financial assets (20) 9.8 10.6
Touristic payments on account 139.2 138.0
Other non-financial assets 121.7 169.7
Income tax assets 17.2 17.2
Deferred tax assets 351.6 222.0
Non-current assets 11,212.2 11,351.7
Inventories 63.5 56.1
Trade and other receivables (12), (20) 875.1 1,011.8
Derivative financial instruments (20) 38.0 232.5
Other financial assets (20) 56.3 85.8
Touristic payments on account 1,071.2 619.6
Other non-financial assets 145.2 135.4
Income tax assets 32.0 23.1
Cash and cash equivalents (20) 1,575.9 1,736.9
Assets held for sale (13) 24.0 2.7
Current assets 3,881.3 3,903.8
Total assets 15,093.4 15,255.5
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 31 Mar 2023
EUR million Notes 31 Mar 2023 30 Sep 2022
Equity and liabilities
Subscribed capital 178.5 1,785.2
Capital reserves 7,658.0 6,085.9
Revenue reserves - 9,599.7 - 8,432.7
Silent participation - 420.0
Equity before non-controlling interest - 1,763.1 - 141.6
Non-controlling interest 842.0 787.3
Equity (19) - 921.1 645.7
Pension provisions and similar obligations (14) 592.4 568.2
Other provisions 762.0 755.0
Non-current provisions 1,354.4 1,323.2
Financial liabilities (16), (20) 2,645.8 1,731.4
Lease liabilities (17) 2,221.7 2,508.7
Derivative financial instruments (20) 1.7 3.2
Other financial liabilities (18), (20) 2.5 2.8
Other non-financial liabilities 244.0 165.2
Income tax liabilities 11.1 11.1
Deferred tax liabilities 56.4 121.2
Non-current liabilities 5,183.5 4,543.8
Non-current provisions and liabilities 6,537.9 5,867.0
Pension provisions and similar obligations (14) 31.5 33.1
Other provisions 388.0 541.0
Current provisions 419.4 574.2
Liabilities from the repurchase of equity instruments (15) 678.4 -
Financial liabilities (16), (20) 348.4 319.9
Lease liabilities (17) 612.9 698.8
Trade payables (20) 2,013.7 3,316.5
Derivative financial instruments (20) 160.0 57.5
Other financial liabilities (18), (20) 120.6 174.6
Touristic advance payments received 4,598.2 2,998.9
Other non-financial liabilities 468.5 519.9
Income tax liabilities 56.4 82.3
Current liabilities 9,057.2 8,168.6
Current provisions and liabilities 9,476.6 8,742.7
Total equity, liabilities and provisions 15,093.4 15,255.5
Unaudited condensed consolidated Statement of Changes in Equity of TUI AG for the period from
1 Oct 2022 to 31 Mar 2023
Subscribed Capital Revenue Silent Equity before Non-controlling
EUR million capital reserves reserves participation non-controlling interest Total
interest
Balance as at 1 Oct 1,099.4 5,249.6 - 1,091.0 - 1,085.7 667.3 - 418.4
2021 8,525.7
Dividends - - - - - 0.1 0.1
Share-based payment - - 0.3 - 0.3 - 0.3
schemes
Capital increase 523.5 582.9 - - 1,106.4 - 1,106.4
Group loss for the - - - 720.0 - - 720.0 12.1 - 707.9
year
Foreign exchange - - 17.2 - 17.2 14.6 31.8
differences
Financial assets at - - - 0.5 - - 0.5 - - 0.5
FVTOCI
Cash flow hedges - - 61.7 - 61.7 - 61.7
Remeasurements of
defined benefit - - 205.6 - 205.6 - 205.6
obligations and
related fund assets
Other comprehensive
income of investments - - 8.4 - 8.4 - 8.4
accounted for using
the equity method
Taxes attributable to
other comprehensive - - - 71.0 - - 71.0 - - 71.0
income
Other comprehensive - - 221.4 - 221.4 14.6 236.0
income
Total comprehensive - - - 498.6 - - 498.6 26.7 - 471.9
income
Balance as at 31 Mar 1,622.9 5,832.5 - 1,091.0 - 477.5 694.1 216.6
2022 9,023.9
Balance as at 1 Oct 1,785.2 6,085.9 - 420.0 - 141.6 787.3 645.7
2022 8,432.7
Dividends - - - - - - -
Coupon on silent - - - 16.8 - - 16.8 - - 16.8
participation
Capital reduction - 1,606.7 1,606.7 - - - - -
WSF repurchase - - 34.5 - 222.8 - 420.0 - 677.3 - - 677.3
agreement
Group loss for the - - - 620.4 - - 620.4 62.4 - 558.0
year
Foreign exchange - - - 96.0 - - 96.0 - 7.4 - 103.4
differences
Financial assets at - - 23.7 - 23.7 - 23.7
FVTOCI
Cash flow hedges - - - 176.2 - - 176.2 - - 176.2
Remeasurements of
defined benefit - - - 129.1 - - 129.1 - 0.3 - 129.4
obligations and
related fund assets
Other comprehensive
income of investments - - - 6.6 - - 6.6 - - 6.6
accounted for using
the equity method
Taxes attributable to
other comprehensive - - 77.2 - 77.2 - 77.2
income
Other comprehensive - - - 307.0 - - 307.0 - 7.7 - 314.7
income
Total comprehensive - - - 927.4 - - 927.4 54.7 - 872.7
income
Balance as at 31 Mar 178.5 7,658.0 - - - 1,763.1 842.0 - 921.1
2023 9,599.7
Unaudited condensed consolidated Cash Flow Statement of TUI AG for the period from
1 Oct 2022 to 31 Mar 2023
EUR million Notes H1 2023 H1 2022
Group loss - 558.0 - 707.9
Depreciation, amortisation and impairment (+) / write-backs (-) 421.5 429.0
Other non-cash expenses (+) / income (-) - 62.3 28.8
Interest expenses 277.0 269.4
Dividends from joint ventures and associates 2.8 0.1
Profit (-) / loss (+) from disposals of non-current assets - 6.6 - 26.5
Increase (-) / decrease (+) in inventories - 7.7 - 8.0
Increase (-) / decrease (+) in receivables and other assets - 47.9 - 396.2
Increase (+) / decrease (-) in provisions - 231.0 - 127.1
Increase (+) / decrease (-) in liabilities (excl. financial liabilities) - 72.2 978.2
Cash inflow / cash outflow from operating activities (23) - 284.4 439.8
Payments received from disposals of property, plant and equipment and intangible assets 74.1 63.4
Payments received/made from disposals of consolidated companies - 0.7 - 2.2
(less disposals of cash and cash equivalents due to divestments)
Payments received/made from disposals of other non-current assets 75.8 - 23.6
Payments made for investments in property, plant and equipment and intangible assets - 364.8 - 174.1
Payments made for investments in other non-current assets - 3.8 -
Cash inflow / cash outflow from investing activities (23) - 219.4 - 136.5
Payments received from capital increase by issuing new shares - 1,106.4
Coupon on silent participation (dividends) - 16.8 -
Payments received from the raising of financial liabilities 1,053.9 18.3
Payments made for redemption of loans and financial liabilities - 91.7 - 1,007.9
Payments made for principal of lease liabilities - 362.1 - 306.4
Interest paid - 227.8 - 173.9
Cash inflow / cash outflow from financing activities (23) 355.6 - 363.6
Net change in cash and cash equivalents - 148.2 - 60.3
Development of cash and cash equivalents (23)
Cash and cash equivalents at beginning of period 1,736.9 1,586.1
Change in cash and cash equivalents due to exchange rate fluctuations - 12.8 - 3.2
Net change in cash and cash equivalents - 148.2 - 60.3
Cash and cash equivalents at end of period 1,575.9 1,522.6
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
2022 to 31 March 2023. The Interim Financial Statements are
prepared in euros. Unless stated otherwise, all amounts are stated
in million euros (EURm). TUI Group's results generally also reflect
the significant seasonal swing in tourism between the winter and
summer travel months.
The Interim Financial Statements were approved for publication
by the Executive Board of TUI AG on 8 May 2023.
Accounting principles
Declaration of compliance
The consolidated interim financial report for the period ended
31 March 2023 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 2022. 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 31 March 2023 was EUR4.2bn (as at 30 September
2022 EUR3.4bn).
Net debt
EUR million 31 Mar 2023 30 Sep 2022 Var. %
Financial debt 2,994.1 2,051.3 + 46.0
Lease liabilities 2,834.5 3,207.5 - 11.6
Cash and cash equivalents 1,575.9 1,736.9 - 9.3
Short-term interest-bearing investments 56.3 85.8 - 34.4
Net debt -4,196.4 -3,436.2 + 22.1
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. Currently, TUI Group is
only marginally effected by the negative financial impact of the
COVID-19 pandemic.
To cover the resulting liquidity needs, the Group has carried
out various financing measures in the financial years 2020 to 2022,
which, in addition to three capital increases, 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 initially totalling
EUR2.85bn, an option bond from the German Economic Stabilisation
Fund (WSF) totalling EUR150m and two silent participations from the
WSF initially totalling EUR1.091bn.
In financial year 2022, TUI reduced KfW's credit line to
EUR2.1bn in various steps. In addition, 913 of the 1,500 bonds with
warrants issued to WSF were redeemed and the Silent Participation
II of the WSF of EUR671.0m was repaid in full ahead of
schedule.
The financing measures are described in detail in the annual
reports for the past three financial years.
As at 31 March 2023, TUI Group's revolving credit facilities
totalled EUR3.74bn. They have a term until summer 2024 and
comprised the following
-- EUR1.64bn credit line from 20 private banks (incl. EUR190m
guarantee line)
-- EUR2.1bn KfW credit line.
With regard to the KfW credit lines, it was agreed that TUI AG
would use 50% of individual cash inflows exceeding EUR50m, 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; there is no maximum limit.
TUI AG's EUR1.64bn 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 has only been resumed in
September 2022 and TUI was in full compliance. In addition, higher
limits are to be applied on the first two cut-off dates before
normalised limits have to be complied with from September 2023.
On 13 December 2022, TUI has concluded a new agreement with the
WSF on the repayment of stabilization measures ("Repayment
Agreement"). This agreement regulates the intended complete
termination of the stabilization measures granted by the WSF by
means of a right of the Company (i) to repayment of the
contribution made by the WSF as a silent partner in January 2021 in
the nominal amount of currently EUR420m ("Silent Participation I")
and (ii) to repurchase the warrant-linked bond 2020/2026 ("Warrant
Bond") issued by the Company to WSF in the remaining amount of
EUR58.7m as well as the 58,674,899 option rights ("Warrants")
originally attached to the warrant bond. In addition, the Repayment
Agreement regulates the implementation of capital measures for the
purpose of refinancing the aforementioned measures.
In the interim financial statements as at 31 March 2023, Silent
Participation I to be repurchased from WSF subject to receipt of
the proceeds from the capital increase resolved on 24 March 2023
and the option rights are carried as liabilities in accordance with
IAS 32.
In February 2023, TUI AG implemented the ten-for-one reverse
stock split previously resolved by the 2023 AGM in accordance with
the provisions of the Economic Stabilisation Acceleration Act. As a
result, the Company's share capital declined from EUR1.785bn to
around EUR179m. The corresponding reduction amount of around
EUR1.606bn was transferred to the company's capital reserves.
In accordance with the repayment agreement with the WSF, the
Executive Board of TUI AG resolved a capital increase with
subscription rights of EUR1.8bn with the approval of the
Supervisory Board on 24 March 2023. For the fully subscribed
capital increase, 328,910,448 new shares were offered at a
subscription ratio of 8:3 and a subscription price of EUR5.55. The
subscription period for the new shares ended on 17 April 2023.
Following receipt of the proceeds from the capital increase on
24 April 2023, Silent Participation I and the around 56.8m warrants
held by the WSF as well as the outstanding 587 of the 2020/2026
bonds with warrants were fully redeemed. For Silent Participation I
and the 2023 coupon payable on it, a redemption price of EUR651.6m
was paid. EUR30.8m were used for the repurchase of the warrants and
further EUR61.9m for the early redemption of the 587 bonds with a
nominal value of EUR58.7m, including accrued interest of
EUR3.2m.
At the same time, the early repayment penalty for Silent
Participation II of EUR5.7m, agreed with the WSF in April 2022,
became due. TUI has thus terminated and repaid all stabilisation
measures of the WSF.
In summary, the capital increase, the repurchase of Silent
Participation I and the warrants, which are presented as repurchase
of equity instruments on the balance sheet, and the repurchase of
the bonds and the early repayment penalty, which are presented
within current financial liabilities, have the following effects on
the balance of equity and liabilities before capital increase and
repurchase respectively:
Effect of the capital increase and repurchase
EUR million prior Capital increase / afterwards
Repurchase
Subscribed capital 178.5 328.9 507.4
Capital reserves 7,658.0 1,432.4 9,090.4
Equity - 921.1 1,761.3 840.1
Liabilities from the repurchase of equity instruments 682.4 - 682.4 -
Current financial liabilities 348.0 - 67.6 280.4
Moreover, TUI AG reduced the volume of the KfW credit facility
from EUR2.1bn to EUR1.1bn following completion of the capital
increase.
The capital increase and the substantial reduction in government
financing enable a significant improvement in the TUI Group's
credit ratios and reduce current interest costs, allowing TUI to
focus on growth and further market recovery. In the wake of the
capital increase and the resulting improvement in balance sheet
ratios, the rating agency Standard & Poors raised TUI's credit
rating from B- to B (outlook positive).
Contact restriction measures and travel restrictions were
gradually eased in most countries in the first months of the
calendar year 2022 and business was fully resumed in all segments.
The booking momentum for the 2023 financial year remains
encouraging. Based on past trends, the Executive Board expects
capacity to almost reach pre-crisis levels in summer 2023.
From the Executive Board's perspective 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 31 March 2023, 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.
The Executive Board does not see risks that could jeopardise the
company's existence and assumes that compliance with covenants as
of 30 September 2023 and 31 March 2024 is not at risk.
Nevertheless, the general price increase in recent months and a
resulting reduced private budget could dampen customer demand. In
addition, a permanent increase in fuel costs as well as services,
especially those that we purchase in USD, could adversely affect
the development.
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 business and current trading
for the summer programme have confirmed the business performance
guidance provided by TUI at the end of financial year 2022.
Additionally a risk assessment was performed for the Group's assets
to identify any indications of impairment as at 31 March 2023. 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 31 March 2023
are materially consistent with those followed in preparing the
annual consolidated financial statements for the financial year
ended 30 September 2022, 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 2023, 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 2023
Standard Applicable Amendments Impact on financial
from statements
The amendments specify which costs to include in assessing No impacts to the H1
Amendments to whether a contract is onerous. The amendments clarify that the interim reporting. For
IAS 37 1 Jan 2022 cost of fulfilling a contract consists of the direct cost of the current financial
Onerous the contract representing either the incremental costs of year no material impacts
Contracts fulfilling the contract or an allocation of other costs that are expected.
relate directly to fulfilling the contract.
The amendments prohibit deducting from the cost of an item of
Amendments to property, plant and equipment any proceeds from selling items
IAS 16 produced while bringing that asset to the location and
Proceeds 1 Jan 2022 condition necessary for it to be capable of operating in the No impacts.
before manner intended by management. Instead, an entity has to
Intended Use recognise the proceeds from selling such items, and the cost
of producing those items, in profit or loss.
Amendments to
IFRS 3 The amendments update a reference to the Conceptual Framework
Reference to 1 Jan 2022 in IFRS 3 without changing the accounting requirements for No impacts.
the business combinations.
Conceptual
Framework
Various The amendments resulting from the Annual Improvements
amendments to 1 Jan 2022 2018-2020 Cycle include small amendments to IFRS 1, IFRS 9, No major impacts.
IFRS IAS 41, and the Illustrative Examples accompanying IFRS 16.
(2018-2020)
Key judgements, assumptions and estimates
Recognition, measurement and disclosure of the contingent
settlement provision to repurchase own equity instruments
On 13 December 2022, an agreement was concluded with the WSF,
entitling TUI to repurchase its own equity instruments 'Silent
Participation I' with a nominal value of EUR420m and the approx.
58.7m warrants with a carrying amount of EUR34.5m, contingent on
receiving the proceeds from a capital increase carried out for
refinancing purposes. Upon occurrence of that condition, TUI has
contractually committed to repurchasing the equity instruments held
by the WSF as well as the 587 partial bonds with a nominal value of
EUR58.7m, reported under financial liabilities, against payment of
the repurchase price. Accounting for the agreement required
judgements with respect to the recognition, measurement and
presentation of the repurchase liability.
On 24 March 2023, the Executive Board resolved, with the consent
of the Supervisory Board, to implement a capital increase by
launching a rights issue from Authorized Capital 2022/1 and
Authorized Capital 2022/2. Since that date, in our view, the
occurrence or non-occurrence of the condition for the repurchase of
own equity instruments has been beyond TUI's control. In accordance
with IAS 32, a financial liability therefore had to be recognized
as of 24 March 2023 at the present value of the repurchase amount
of the equity instruments, and Silent Participation I and the
warrants had to be reclassified from equity.
As the transaction has to be accounted for as a repurchase of
own equity instruments in accordance with IAS 32, the repurchase
liability had to be measured in equity prior to the
reclassification of the carrying amounts of EUR454.5m. As a result,
revenue reserves decreased by the difference versus the present
value of the repurchase price of EUR222.8m as at 24 March 2023.
The nature of the repurchase liability is relevant for an
understanding of TUI's net assets, financial position and results
of operations as of 31 March 2023. The repurchase liability is
material and differs in nature from TUI's other financial
liabilities due to the mechanism of IAS 32.23 in combination with
IAS 32.25. The repurchase is therefore presented separately as
'Liabilities from the repurchase of equity instruments'. In
accordance with IAS 32.23, the carrying amount of the repurchase
obligation in respect of Silent Participation I and the warrants
needs would have been reclassified back to equity if TUI had not
received the proceeds from the resolved capital increase of
EUR1.8bn. The associated measure 'Capital increase for the purpose
of terminating the WSF stabilisation measures' results in an
increase in equity of around EUR1.8bn, the repayment of the
repurchase liability and a reduction in net debt in the amount of
the remaining part of the capital increase. The proceeds from the
resolved capital increase must not yet be recognised in the balance
sheet as of 31 March 2023.
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 31 March 2023 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 2022 268 17 27
Additions 4 - -
Incorporation 2 - -
Demerger 1 - -
Acquisition 1 - -
Disposals - - -
Number at 31 Mar 2023 272 17 27
* excl. TUI AG
Acquisitions - Divestments
Acquisitions in the period under review
In H1 2023 one company was acquired which does not constitute a
business. No acquisitions were made in the prior year and after the
reporting date.
Divestments
In H1 2023, no companies were sold. After the reporting date the
non-consolidated company Peakwork AG was sold. For further
information please refer to the section 'assets held for sale'.
Notes to the unaudited condensed consolidated Income
Statement
In the first six months of financial year 2023, TUI Group's
business volume was significantly higher than in H1 2022 which was
still impacted by 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. 1.
Revenue
In the first six months of the financial year 2023, consolidated
revenue increased by EUR2.4bn year-on-year to EUR6.9bn.
External revenue allocated by destinations for the period from 1 Oct 2022 to 31 Mar 2023*
Spain Caribbean, North Rest of H1 2023
(incl. Other Mexico, Africa Africa, Other Revenues from H1 2023
EUR million Canary European USA & & Ind. countries contracts Other Total
Islands) destinations Canada Turkey Ocean, with
Asia customers
Hotels & 153.6 25.1 138.7 19.2 92.6 - 429.2 - 429.2
Resorts
Cruises 97.2 72.0 87.8 - - - 257.1 - 257.1
TUI Musement 48.3 68.1 66.1 17.0 64.5 26.0 290.0 - 290.0
Holiday 299.1 165.2 292.6 36.2 157.1 26.0 976.3 - 976.4
experiences
Northern 786.9 439.1 627.8 247.3 414.8 13.9 2,529.8 4.8 2,534.6
Region
Central 702.8 397.1 204.7 496.0 570.2 3.6 2,374.4 1.5 2,375.9
Region
Western 309.0 115.1 267.0 149.7 157.1 11.2 1,009.1 3.5 1,012.6
Region
Markets & 1,798.7 951.3 1,099.5 893.0 1,142.1 28.7 5,913.3 9.8 5,923.2
Airlines
All other 0.2 3.2 0.2 0.2 - - 3.9 - 3.9
segments
Total 2,098.1 1,119.8 1,392.4 929.4 1,299.2 54.7 6,893.6 9.8 6,903.4
External revenue allocated by destinations for the period from 1 Oct 2021 to 31 Mar 2022*
Rest of H1 2022
Spain Other Caribbean, North Africa, Revenues from
EUR million (incl. European Mexico, Africa Ind. Other contracts Other H1 2022
Canary destinations USA & & Ocean, countries with Total
Islands) Canada Turkey Asia customers
(adjusted)
Hotels & 153.2 23.2 110.1 14.3 78.5 - 379.3 - 379.3
Resorts
Cruises 35.8 3.3 36.3 - - 0.1 75.5 - 75.5
TUI Musement 39.3 40.1 32.3 5.1 19.8 9.0 145.6 - 145.6
Holiday 228.3 66.6 178.7 19.4 98.3 9.1 600.4 - 600.4
experiences
Northern 490.8 350.3 383.4 90.9 172.0 9.0 1,496.4 3.8 1,500.2
Region
Central 506.3 373.1 152.1 260.1 316.0 2.8 1,610.4 0.5 1,610.8
Region
Western 336.1 122.2 211.2 47.2 61.6 2.9 781.2 1.0 782.2
Region
Markets & 1,333.2 845.6 746.7 398.2 549.6 14.7 3,888.0 5.3 3,893.2
Airlines
All other 0.1 3.7 0.2 - - - 4.0 - 4.0
segments
Total 1,561.6 915.9 925.6 417.6 647.9 23.8 4,492.4 5.3 4,497.6
*Due to the re-segmentation of Future Markets from All other segments to Hotels & Resorts, TUI Musement and Central
Region in the current financial year, previous periods have been adjusted. 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 45.5% to EUR6.9bn in H1 2023.
Government Grants
EUR million H1 2023 H1 2022
Cost of Sales 0.1 58.3
Administrative expenses 0.6 31.1
Total 0.7 89.4
In the prior year, government grants were awarded due to the
measures in place to contain the COVID-19 pan-demic. When these
measures ended in financial year 2022, the various aid programmes
were also terminated. 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.
Administrative expenses comprise all expenses incurred in
connection with the performance of administrative functions and
break down as follows:
Administrative expenses
EUR million H1 2023 H1 2022
Staff costs 297.0 271.6
Rental and leasing expenses 8.3 6.9
Depreciation, amortisation and impairment 34.1 39.2
Others 153.9 59.2
Total 493.4 377.0
Administrative expenses increased due to the termination of
state aid programmes as well as increased exchange rates.
The cost of sales and administrative expenses include the
following expenses for staff and depreciation/ amortisation:
Staff costs
EUR million H1 2023 H1 2022
Wages and salaries 933.6 781.9
Social security contributions, pension costs and benefits 185.5 178.6
Total 1,119.1 960.5
Depreciation/amortisation/impairment
EUR million H1 H1
2023 2022
Depreciation and amortisation of other intangible assets, property, plant and equipment and 417.6 431.1
right-of-use assets
Impairment of other intangible assets, property, plant and equipment and right-of-use assets 4.9 3.1
Total 422.5 434.2
The impairments of EUR4.9m were presented within cost of sales
(H1 2022 EUR2.9m). In H1 2023 reversals of impairment losses of
EUR1.0m were recognized in cost of sales (H1 2022 EUR5.2m). 3.
Other income
In the first six months of the financial year 2023 other income
mainly includes EUR5.0m from the disposal of aircraft assets and
EUR4.7m from the disposal of the Jet Set House (Crawley). In the
prior year, other income reflects EUR22.0m from the disposal of
Nordotel S.A., plus the sale of aircraft assets. 4. Other
expenses
In H1 2023 other expenses mainly results from the disposal of
aircraft assets. In the previous year, there were no significant
other expenses. 5. Financial income and financial expenses
The improvement in the net financial result from EUR-255.3 m in
the first six months of the previous year to EUR-246.6m in the
current financial year is mainly the result of higher interest
income. 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 H1 2023 H1 2022
Hotels & Resorts 46.0 22.1
Cruises 26.0 - 38.2
TUI Musement 5.1 2.3
Holiday Experiences 77.1 - 13.8
Northern Region - 3.4 - 20.7
Central Region - 0.2 - 1.1
Western Region 0.3 -
Markets & Airlines - 3.3 - 21.8
All other segments 0.2 -
Total 74.0 - 35.6 7. Income taxes
The tax income arising in the first half year of 2023 is mainly
driven by the seasonality of the tourism business. 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 EUR61.3m (H1 2022 EUR12.5m profit).
Notes to the unaudited condensed consolidated Statement of
Financial Position 9. Goodwill
Goodwill decreased by EUR15.7m to EUR2,954.9m 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 31 Mar 2023 30 Sep 2022
Northern Region 1,193.4 1,204.7
Central Region 502.3 502.5
Western Region 412.3 412.3
Riu 343.1 343.1
Marella Cruises 290.1 288.8
TUI Musement 167.0 171.4
Other 46.7 47.8
Total 2,954.9 2,970.6
As at 31 March 2023 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 2022 property, plant and equipment
increased by EUR79.1m to EUR3,480.0m. Additions of EUR270.7m
included EUR113.3m of acquisitions in the Hotels & Resorts
segment. The construction of a new hotel on Mauritius, the
acquisition of land on Jamaica and the renovation of hotels in
Mexico and Cape Verde led to additions in the Riu Group totalling
EUR100.3m. In addition, advance payments of EUR59.7m were made for
the future delivery of additional aircraft. Additions to assets
under construction of EUR34.2m and to payments on account of
EUR8.6m relate to carry out maintenance work on cruise ships.
Further additions related to the purchase of aircraft engines at
EUR17.0m and of aircraft spare parts at EUR12.8m. The
reclassification of four aircraft from right-of-use assets was the
result of the exercise of existing purchase options and led to an
increase in property, plant and equipment of EUR68.8m.
On the other hand, depreciation and amortisation of EUR127.2m
led to a decrease in property, plant and equipment. Furthermore,
plant and equipment decreased by EUR74.3m due to foreign exchange
translation. In the first quarter, the sale of two aircraft engines
led to a reclassification of EUR31.3m to assets held for sale. In
this context, please refer to the section 'Assets held for sale'.
Disposals of EUR28.6m led to a further reduction of property, plant
and equipment and are mainly caused by the disposal of advance
payments for future delivery of aircraft (EUR24.6m). Due to sale
and leaseback transactions, the disposal of these advance payments
led to the addition of right-of-use assets. 11. Right-of-use
assets
Compared to 30 September 2022 right-of-use assets decreased by
EUR301.8m to EUR2,669.7m. Depreciation charged of EUR236.7m led to
a decrease in right-of-use assets. Furthermore, the foreign
exchange translation led to a decrease in right-of-use assets of
EUR162.2m. The reclassification of four aircraft into property,
plant and equipment led to a further reduction of right-of-use
assets by EUR68.8m (in this context, we refer to the section
'Property, plant and equipment'). Disposals also reduced the
right-of-use assets by EUR6.5m.
On the other hand, modifications and reassessments of existing
lease contracts increased the right-of-use assets by EUR102.8m. The
increase is mainly due to contract extensions related to leased
aircraft (EUR73.3m), leased travel agencies (EUR13.4m) and hotel
leases (EUR12.6). Furthermore, additions totalled EUR71.9m, of
which EUR60.3m were attributable to the delivery of two new
aircraft and two aircraft engines due to sale and leaseback
transactions.
The corresponding liabilities are explained in the section
'Lease Liabilities'. 12. Trade and other receivables
The decrease in current trade and other receivables results from
reduced security deposits issued to secure advance payment from
customers. 13. Assets held for sale
As at 31 March 2023, the shares in the non-consolidated
investment Peakwork AG with a value of EUR24.0m were classified as
held for sale. The shares were sold in April 2023. The purchase
price payment of EUR24.0m was made in April 2023.
During the period under review, two aircraft engines with a
total value of EUR31.0m were classified as held for sale. The sale
of the aircraft engines took place in February 2023.
As at the end of the prior financial year, the building at Jet
Set House (Crawley) of TUI Airways Limited was classified as held
for sale (EUR2.7m). The disposal transaction was completed on 3
October 2022. The purchase price payment of GBP6.5m was made on 3
October 2022. 14. Pension provisions and similar obligations
The pension provisions for unfunded plans and underfunded plans
increased by EUR22.6m to EUR623.9m compared to the end of the
previous financial year.
The overfunding of funded pension plans reported in other
non-financial assets decreased by EUR46.6m from EUR163.4m as at 30
September 2022 to EUR116.8m as at 31 March 2023.
This development is attributable in particular to remeasurement
effects due to increased discount rates in the UK compared to 30
September 2022. 15. Liabilities from the repurchase of equity
instruments
Liabilities from the repurchase of equity instruments relate to
the contingent settlement provision to repay Silent Participation I
held by the WSF and the approx. 58.7m warrants on TUI AG shares. As
of 31 March 2023, the liability from the repurchase of equity
instruments is carried at amortised cost of EUR678.4m. Please refer
to section 'Key judgements, assumptions and estimates'. 16.
Financial liabilities
Non-current financial liabilities increased by EUR914.4m to
EUR2,645.8m compared to 30 September 2022. This increase was
primarily attributable to an increase in liabilities to banks
related to credit lines with maturity in July 2024 of
EUR880.9m.
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 EUR3.555bn at 31 March 2023.
At 31 March 2023, the amounts drawn under the revolving credit
facilities totalled EUR1,437.8m (30 September 2022 EUR562.0m).
Current financial liabilities increased by EUR28.5m to EUR348.4m
at 31 March 2023 compared to EUR319.9m at 30 September 2022.
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 2022, the lease liabilities decreased
by EUR372.9m to EUR2,834.6m. Payments of EUR441.8m led to a decline
in lease liabilities. Furthermore, lease liabilities decreased by
EUR194.4m due to foreign exchange translation. On the other hand,
changes and remeasurements of existing leases resulted in an
increase in lease liabilities of EUR98.5m, of which EUR73.2m mainly
relate to lease extensions on aircraft. In addition, the lease
liabilities increased by EUR85.1m due to interest charges.
Furthermore, additions from newly leased contracts led to an
increase in lease liabilities of EUR80.0m, of which EUR50.2m relate
to the addition of two new aircraft and EUR18.4m to the addition of
two aircraft engines. 18. Other financial liabilities
The other financial liabilities include touristic advance
payments received for tours cancelled because of COVID-19
restrictions of EUR13.2m (as at 30 September 2022 EUR16.7m), for
which immediate cash refund options exist and which have to be
repaid shortly if the customer opts for payment. Further
obligations from COVID-19 related cancelled holidays do not exist.
19. Changes in equity
Overall, equity decreased by EUR1,566.8m when compared to 30
September 2022, from EUR645.7m to EUR-921.1m.
For the Silent Participation I, a coupon for financial year 2022
in the amount of EUR16.8m was paid to the WSF in December 2022 and
reported in line Coupon on silent participation.
In accordance with the Annual General Meeting resolution on 14
February 2023, TUI AG's share capital of EUR1,785.2m, divided into
1,785,205,853 no-par value registered shares with a proportionate
amount of the share capital of EUR1.00 per no-par value share, was
reduced by combining the shares in a ratio of 10:1. The capital
stock was therefore reduced in February by EUR1,606.7m to EUR178.5m
by means of a transfer to the capital reserve. The capital reserve
increased accordingly by EUR1,606.7m.
With the resolution to carry out a rights issue in March 2023,
Silent Participation I was revalued at its carrying amount of
EUR420m and warrants issued to WSF were revalued at their carrying
amount of EUR34.5m in equity at the present value of the repurchase
price. The difference between the carrying amounts and the present
values reduced retained earnings by EUR222.8m. Following their
valuation, Silent Participation I and the warrants were
reclassified to current liabilities as 'Liabilities from the
repurchase of equity instruments'. For detailed explanations,
please refer to section 'Key judgements, assumptions and
estimates'.
In the first six months of the financial year 2023, TUI AG paid
no dividend (previous year: no dividend).
The Group loss in the first six months of the financial year
2023 is mainly caused by the seasonality of the tourism
business.
The fair value profit of EUR23.7m on investments in equity
instruments designated as at Fair value through other comprehensive
income contains a write-up without effect on profit and loss in the
amount of EUR23.2m for the shares of the non-consolidated
investment Peakwork AG which was classified as held for sale as at
31 March 2023. For detailed explanations, please refer to section
'Assets held for sale'.
The proportion of gains and losses from hedging instruments for
effective hedging of future cash flows includes an amount of
EUR-176.2m (pre-tax) carried under other comprehensive income in
equity outside profit and loss (previous year EUR61.7m).
The revaluation of pension obligations is also recognised under
other comprehensive income directly in equity without effect on
profit and loss. 20. Financial instruments
Carrying amounts and fair values according to classes and measurement categories according to IFRS 9 as at 31 Mar 2023
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 within 987.6 951.3 - - 36.3 982.0
the scope of IFRS
9
thereof
instruments within 6.8 - - - - 7.2
the scope of IFRS
16
Derivative
financial
instruments
Hedging 17.9 - - 17.9 - 17.9
transactions
Other derivative
financial 23.0 - - - 23.0 23.0
instruments
Other financial 66.1 56.3 8.9 - 0.9 62.9
assets
Cash and cash 1,575.9 1,575.9 - - - 1,575.9
equivalents
Liabilities
Financial 2,994.2 2,994.2 - - - 2,734.1
liabilities
Liabilities from
the repurchase of 678.4 678.4 - - - 674.1
equity instruments
Trade payables 2,013.7 2,013.7 - - - 2,013.7
Derivative
financial
instruments
Hedging 117.8 - - 117.8 - 117.8
transactions
Other derivative
financial 43.9 - - - 43.9 43.9
instruments
Other financial 123.1 123.1 - - - 123.1
liabilities
Carrying amounts and fair values according to classes and measurement categories according to IFRS 9 as at 30 Sep 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 1,133.8 1,027.3 - - 106.5 1,124.5
within the scope
of IFRS 9
thereof
instruments 9.6 - - - - 9.9
within the scope
of IFRS 16
Derivative
financial
instruments
Hedging 124.4 - - 124.4 - 124.4
transactions
Other derivative
financial 134.7 - - - 134.7 134.7
instruments
Other financial 96.4 85.9 9.6 - 0.9 90.5
assets
Cash and cash 1,736.9 1,736.9 - - - 1,736.9
equivalents
Liabilities
Financial 2,051.3 2,051.3 - - - 1,656.7
liabilities
Trade payables 3,316.5 3,316.5 - - - 3,316.5
Derivative
financial
instruments
Hedging 27.0 - - 27.0 - 27.0
transactions
Other derivative
financial 33.7 - - - 33.7 33.7
instruments
Other financial 177.4 177.4 - - - 177.4
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 include all
financial instruments. That is the latter columns include 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 as separate items. If such financial
instruments are included, further details on these financial
instruments are explained in the section 'Assets held for
sale'.
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 current other
receivables, current other financial assets 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). As a result, the assumption that the
carrying amount approximately corresponds to the fair value due to
the short remaining term has been adjusted to the current market
conditions due to the COVID-19 pandemic.
The fair values of non-current trade receivables and other
receivables 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. In the case of 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 TUI's business
operations, causing a strong increase in TUI's credit risk
premiums. The significant increase in TUI's credit risk has a
direct impact on the effectiveness of hedging relationships
according to IAS 39 and explicitly 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 hedges are also taken to the cost of
sales respectively in the financial result in the case of interest
rate hedges 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.
For all fuel price hedges contracted from 1 January 2023, the
retrospective effectiveness will be determined, based on regression
analysis. For fuel price hedges contracted until 31 December 2022,
the dollar offset method will continue to be applied. This change
in method allows hedge relationships to be presented more
appropriately, so that as at 31 March 2023, no newly contracted
fuel price hedges have to be de-designated. Furthermore, from 31
March 2023, the designation of the hedged item for foreign currency
hedges will be evaluated on a seasonal basis, while in the previous
periods it was done on a monthly basis. Due to the COVID-19
pandemic and its impact on the business operations of TUI, the
seasonal consideration of the hedge ratio of foreign currency
hedges was temporarily suspended. The resumption of seasonal
consideration corresponds to the risk profile of the operational
group companies for which these hedge instruments are
contracted.
As at 31 March 2023, the fair value of these reclassified fuel
price hedges totalled EUR-7.4m at a nominal volume of EUR135.7m,
while the fair value of the interest rate hedges amounted to
EUR+4.1m at a nominal volume of EUR237.9m and the fair value of
foreign currency hedges totalled EUR+2.9m at a nominal volume of
EUR36.9m.
Aggregation according to measurement categories under IFRS 9 as at 31 Mar 2023
EUR million Carrying amount of financial instruments Fair Value
Total
Financial assets
at amortised cost 2,583.5 2,574.7
at fair value - recognised directly in equity without recycling 8.9 8.9
at fair value - through profit and loss 60.2 60.2
Financial liabilities
at amortised cost 5,809.4 5,545.0
at fair value - through profit and loss 43.9 43.9
Aggregation according to measurement categories under IFRS 9 as at 30 Sep 2022
EUR million Carrying amount of financial instruments Fair Value
Total
Financial assets
at amortised cost 2,850.1 2,834.9
at fair value - recognised directly in equity without recycling 9.6 9.6
at fair value - through profit and loss 242.1 242.1
Financial liabilities
at amortised cost 5,545.2 5,150.6
at fair value - through profit and loss 33.7 33.7
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 31 Mar 2023
Fair value hierarchy
EUR million Total Level 1 Level 2 Level 3
Assets
Other receivables 36.3 - - 36.3
Other financial assets 9.8 - - 9.8
Derivative financial instruments
Hedging transactions 17.9 - 17.9 -
Other derivative financial instruments 23.0 - 23.0 -
Liabilities
Derivative financial instruments
Hedging transactions 117.8 - 117.8 -
Other derivative financial instruments 43.9 - 43.9 -
Hierarchy of financial instruments measured at fair value as at 30 Sep 2022
Fair value hierarchy
EUR million Total Level 1 Level 2 Level 3
Assets
Other receivables 106.5 - - 106.5
Other financial assets 10.5 - - 10.5
Derivative financial instruments
Hedging transactions 124.4 - 124.4 -
Other derivative financial instruments 134.7 - 134.7 -
Liabilities
Derivative financial instruments
Hedging transactions 27.0 - 27.0 -
Other derivative financial instruments 33.7 - 33.7 -
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 2021 108.1 12.3
Disposals - 15.0 -
Total gains or losses for the period 13.4 - 1.4
recognised through profit and loss 13.4 - 0.1
recognised in other comprehensive income - - 1.3
Foreign currency effects - - 0.4
Balance as at 30 Sep 2022 106.5 10.5
Balance as at 1 Oct 2022 106.5 10.5
Disposals - 70.7 - 24.0
payment - 70.7 -
reclass to Assets Held For Sale - - 24.0
Total gains or losses for the period 0.5 23.7
recognised through profit and loss 0.5 -
recognised in other comprehensive income - 23.7
Foreign currency effects - - 0.4
Balance as at 31 Mar 2023 36.3 9.8
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 -5.9 % and 27.3 % (30 September 2022: 8.3 % and 24.0 %).
The constant growth rate is 1 % (30 September 2022: 1 %). The
weighted average cost of capital (WACC) is 10.6 % (30 September
2022: 9.5 %-11.3 %). 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 results from a valuation effect in the amount of EUR23,7m,
the reclassification of shares in Peakwork AG to assets held for
sale (EUR24.0m) and foreign exchange rate effects in the amount of
EUR-0.4m.
The Other receivables according to IFRS 9 in Level 3 at a
carrying amount of EUR36.3m as at 31 March 2023 (as at 30 September
2022 EUR106.5m) 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 (3.69 %, 30 September 2022:
1.99 to 2.87 %). 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 year 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 2023 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 EUR39.7m. Due to
different expectations regarding target achievement, potential
purchase price payments vary between EUR0 and EUR39.7m.
TUI expects the hotels concerned to deliver around 100 % to 105
% of cumulative gross operating profit in calendar year 2023. The
current planning for the relevant hotels (input parameters) is
regularly reviewed by the responsible accounting staff.
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 EUR2.0m (as at
30 September 2022 EUR2.0m), while a reduction in gross operating
profit of 10 % would result in a change in the present value of
EUR-24.6m (as at 30 September 2022 EUR-24.4m). An interest rate
shift of +/-100 basis points would alter the present value of the
purchase price receivable by EUR0.4m (as at 30 September 2022
EUR0.5m).
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. 21. Contingent
liabilities
As at 31 March 2023, contingent liabilities amounted to EUR85.4m
(as at 30 September 2022 EUR93.5m). 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. 22. Other financial
commitments
Nominal values of other financial commitments
EUR million 31 Mar 2023 30 Sep 2022
Order commitments in respect of capital expenditure 2,204.8 2,291.4
Other financial commitments 130.6 129.2
Total 2,335.4 2,420.6
As at 31 March 2023 order commitments in respect of capital
expenditure decreased by EUR86.6m as against
30 September 2022.
The decrease in order commitments is largely attributed to a
decline in aircraft obligations. Delivery of aircraft and the
effects of foreign exchange for order commitments denominated in
non-functional currencies is to a greater extent partially offset
by new aircraft orders undertaken in the period. In addition, new
projects for hotel development were undertaken by Hotels &
Resorts segment. 23. 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 EUR161.0m to EUR1,575.9m.
In H1 2023, the cash outflow from operating activities totalled
EUR284.4m (H1 2022 cash outflow of EUR439.8m),
including an inflow of EUR13.8m (H1 2022 EUR2.8m) from interest
payments and EUR2.8m (H1 2022 EUR0.1m) from dividends received from
companies measured at equity. Income tax payments resulted in a
cash outflow of EUR50.4m (H1 2022 EUR10.1m).
The total cash outflow from investing activities totalled
EUR219.4m (H1 2022 cash outflow of EUR136.5m). This amount included
a cash outflow for capital expenditure on property, plant and
equipment and intangibles of EUR364.8m. The Group recorded a cash
inflow of EUR74.1m from the divestment of property, plant and
equipment and intangible assets. TUI recorded a cash inflow of
EUR70.7m from the earn-out payment in connection with sale of the
stakes in Riu Hotels S.A. and EUR3.0m from the sale of Karisma
Hotels Caribbean S.A., effected in financial year 2021. A cash
inflow of EUR2.1m resulted from the sale of money market funds,
EUR3.5m was spent on the purchase.
The cash inflow from financing activities totalled EUR355.6m (H1
2022 cash outflow of EUR363.6m).
In the financial year under review, TUI AG increased its
syndicated credit facility by EUR878.8m. Other TUI Group companies
took out loans worth EUR176.1m. A cash outflow of EUR453.7m
resulted from the redemption of financial liabilities, including an
amount of EUR362.1m for lease liabilities. Interest payments
resulted in a cash outflow of EUR227.8m. TUI AG paid an amount of
EUR16.8m as coupon on Silent Participation I of the German Economic
Stabilisation Fund, carried as a dividend.
In addition, cash and cash equivalents decreased by EUR12.8m (H1
2022 increase by EUR3.2m) due to changes in exchange rates.
As at 31 March 2023 cash and cash equivalents worth EUR646.9m
were subject to restrictions (as at 30 September 2022
EUR526.1m).
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 was deposited as security within a bank
account (as at 30 September 2022 EUR66.1m). TUI Group can only use
this amount of cash and cash equivalents if it provides alternative
collateral.
Furthermore, an amount of EUR116.1m (as at 30 September 2022
EUR116.1m) related to cash collateral received, which 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 period from 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 EUR463.2m (as at 30 September 2022 EUR343.9m)
relate to cash and cash equivalents to be deposited due to
statutory or regulatory requirements, mainly in order to secure
customer deposits and credit card payables. 24. Reporting
segments
Revenue by segment for the period from 1 Oct 2022 to 31 Mar 2023*
EUR million External Group H1 2023 Total
Hotels & Resorts 429.2 313.7 742.9
Cruises 257.1 - 257.1
TUI Musement 290.0 110.3 400.3
Consolidation - - 0.2 - 0.2
Holiday Experiences 976.4 423.7 1,400.1
Northern Region 2,534.6 168.7 2,703.3
Central Region 2,375.9 41.0 2,416.9
Western Region 1,012.6 74.1 1,086.7
Consolidation - - 272.1 - 272.1
Markets & Airlines 5,923.2 11.6 5,934.8
All other segments 3.9 2.7 6.6
Consolidation - - 438.1 - 438.1
Total 6,903.4 - 6,903.4
Revenue by segment for the period from 1 Oct 2021 to 31 Mar 2022*
EUR million External Group H1 2022 Total
Hotels & Resorts 379.3 145.3 524.6
Cruises 75.5 - 75.5
TUI Musement 145.6 63.7 209.3
Consolidation - - 2.0 - 2.0
Holiday Experiences 600.4 207.0 807.4
Northern Region 1,500.2 155.6 1,655.8
Central Region 1,610.8 38.3 1,649.1
Western Region 782.2 70.7 852.9
Consolidation - - 260.2 - 260.2
Markets & Airlines 3,893.2 4.4 3,897.6
All other segments 4.0 2.3 6.3
Consolidation - - 213.7 - 213.7
Total 4,497.6 - 4,497.6
*Due to the re-segmentation of Future Markets from All other segments to Hotels & Resorts, TUI Musement and Central
Region in the current financial year, previous periods have been adjusted.
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 result 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 H1 2023, underlying EBIT includes results of investments
accounted for using the equity method of EUR74.0m (H1 2022
EUR-35.6m). 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*
EUR million H1 2023 H1 2022
Hotels & Resorts 149.7 84.8
Cruises 15.0 - 105.3
TUI Musement - 26.2 - 31.5
Holiday Experiences 138.4 - 51.9
Northern Region - 269.5 - 352.6
Central Region - 131.1 - 82.8
Western Region - 102.9 - 89.4
Markets & Airlines - 503.2 - 524.7
All other segments - 30.6 - 26.8
Total - 395.3 - 603.5
Due to the re-segmentation of Future Markets from All other segments to Hotels & Resorts, TUI Musement and Central
Region in the current financial year, previous periods have been adjusted.
Impairment on other intangible assets, property, plant and equipment and right of use assets
EUR million H1 2023 H1 2022
Hotels & Resorts 3.3 -
Holiday Experiences 3.3 -
Northern Region 1.6 1.6
Central Region - 1.3
Western Region - -
Markets & Airlines 1.6 2.9
All other segments - 0.2
Total 4.9 3.1
Reconciliation to underlying EBIT of TUI Group
EUR million H1 2023 H1 2022
Earnings before income taxes - 648.8 - 871.0
plus: Net interest expenses (excluding expense / income from measurement of interest hedges) 233.1 253.8
plus: (Income) expense from measurement of interest hedges 9.5 2.7
EBIT - 406.3 - 614.5
Adjustments:
less: Separately disclosed items - 1.7 - 3.3
plus: Expense from purchase price allocation 12.7 14.3
Underlying EBIT - 395.3 - 603.5
Net income for separately disclosed items of EUR1.7m included
EUR3m income from the release of restructuring provisions no longer
needed in Northern Region, EUR2m income from the release of
restructuring provisions no longer needed in Western Region and
EUR1m release of restructuring provisions no longer needed in TUI
Musement for the termination of the Tantur / TUI Russia business in
the previous financial year, partly offset by EUR3m restructuring
expenses in All Other Segments and EUR1m subsequent purchase price
adjustments in the Hotels & Resorts segment.
Net income for the separately disclosed items of EUR3.3m in H1
2022 include income of EUR22m from the sale of the shares in
Nordotel S.A, fully consolidated in the Hotels & Resorts
segment, to Grupotel S.A., a joint venture of the TUI Group and
EUR2m from the reversal of an impairment on the Group's office
building. In addition, restructuring expenses in the Central Region
(EUR17m) and All Other Segments (EUR4m) segments were adjusted.
Expenses for purchase price allocations of EUR12.7m (previous
year EUR14.3m) relate in particular to the scheduled amortisation
of intangible assets from acquisitions made in previous years. 25.
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.
Detailed information on related parties is provided under
section 50 in the Notes to the consolidated financial statements
2022. 26. Significant transactions after the balance sheet date
The capital increase from authorised capital, resolved by the
Executive Board of TUI AG on 24 March 2023, became effective on 19
April 2023 upon registration with the commercial registers of
Berlin and Hanover. The issuance of 328,910,448 new shares with a
proportionate amount of EUR1 of the share capital caused an
increase in subscribed capital of EUR328.9m. The difference of
EUR1,498.1m between that amount and the gross proceeds from the
capital increase of EUR1,827.0m was transferred to the capital
reserve. The ancillary costs of the capital increase, expected to
amount to EUR65.7m, will be offset against the capital reserve.
Following receipt of the proceeds from the capital increase on
24 April 2023, Silent Participation I and the around 56.8m warrants
held by the WSF as well as the outstanding 587 of the 2020/2026
bonds with warrants were fully redeemed. For Silent Participation I
and the 2023 coupon payable on it, a redemption price of EUR651.6m
was paid. EUR30.8m were used for the repurchase of the warrants and
further EUR61.9m for the early redemption of the 587 bonds with a
nominal value of EUR58.7m, including accrued interest of
EUR3.2m.
At the same time, the early repayment penalty for Silent
Participation II of EUR5.7m, agreed with the WSF in April 2022,
became due. TUI has thus terminated and repaid all stabilisation
measures of the WSF.
In summary, the capital increase, the repurchase of Silent
Participation I and the warrants, which are presented as repurchase
of equity instruments on the balance sheet, and the repurchase of
the bonds and the early repayment penalty, which are presented
within current financial liabilities, have the following effects on
the balance of equity and liabilities before capital increase and
repurchase respectively:
Effect of the capital increase and repurchase
EUR million prior Capital increase / afterwards
Repurchase
Subscribed capital 178.5 328.9 507.4
Capital reserves 7,658.0 1,432.4 9,090.4
Equity - 921.1 1,761.3 840.1
Liabilities from the repurchase of equity instruments 682.4 - 682.4 -
Current financial liabilities 348.0 - 67.6 280.4
Moreover, TUI AG reduced the volume of the KfW credit facility
from EUR2.1bn to EUR1.1bn following completion of the capital
increase.
With repurchase of the Silent Participation I and the warrants
the terms and conditions related to them and which TUI AG has to
comply with ceased. Accordingly after the repurchase the WSF is no
longer a related party.
On 1 May 2023 the associate Sunwing Travel Group Inc., Canada,
sold its tourism business in Canada and USA to the WestJet Group,
Canada. The consideration comprised variable components and shares
in WestJet Group. The determination of the fair value of these
components have not been finalized yet.
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 May 2023
Sebastian Ebel
David Burling
Mathias Kiep
Peter Krueger
Sybille Reiss
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 2022 until 31 March 2023 of TUI AG, Berlin and Hanover,
which are part of the half-year financial report under § 115 WpHG
(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 report 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 an 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, 9 May 2023
Deloitte GmbH
Wirtschaftsprüfungsgesellschaft
Annika Deutsch Elmar Meier
German Public Auditor German Public Auditor
Cautionary statement regarding forward-looking statements
The present Half-Year 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
Half-Year Financial Report H1 2023 10 May 2023
Interim Financial Report Q3 2023 14 August 2023
Trading Update September 2023
Annual Report 2023 December 2023
Contacts
Nicola Gehrt
Group Director 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
Anika Heske
Junior Investor Relations Manager
Tel: + 49 (0)511 566 1425
TUI AG
Karl-Wiechert-Allee 4
30625 Hannover
Tel: + 49 (0)511 566 00
www.tuigroup.com
This Half-Year Financial Report, the presentation slides and the
video webcast for H1 2023 (published on 10 May 2023) are available
at the following link: www.tuigroup.com/en-en/investors
-----------------------------------------------------------------------------------------------------------------------
Dissemination of a Regulatory Announcement, transmitted by EQS
Group. The issuer is solely responsible for the content of this
announcement.
-----------------------------------------------------------------------------------------------------------------------
ISIN: DE000TUAG505
Category Code: IR
TIDM: TUI
LEI Code: 529900SL2WSPV293B552
OAM Categories: 1.2. Half yearly financial reports and audit reports/limited reviews
Sequence No.: 242495
EQS News ID: 1628485
End of Announcement EQS News Service
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