REG-TUI AG TUI AG: INTERIM REPORT Q1 2023 1 OCTOBER 2022 – 31 DECEMBER 2022
14/02/2023 06:15
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TUI AG (TUI)
TUI AG: INTERIM REPORT Q1 2023 1 OCTOBER 2022 – 31 DECEMBER 2022
14-Feb-2023 / 07:00 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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TUI GROUP
Interim report Q1 2023
1 October 2022 – 31 DECEMBER 2022
Content
1 Interim Management Report
2 Summary
3 Report on changes in expected development
4 Consolidated earnings
5 Segmental performance
6 Financial position and net assets
7 Comments on the consolidated income statement
8 Alternative performance measures
9 Other segment indicators
10 Corporate Governance
11 Risk and Opportunity Report
12 Unaudited condensed consolidated Interim Financial Statements
13 Notes
14 General
15 Accounting principles
16 Group of consolidated companies
17 Acquisitions – Divestments
18 Notes to the unaudited condensed consolidated Income Statement
19 Notes to the unaudited condensed consolidated Statement of Financial Position
20 Responsibility Statement
21 Review Report
22 Cautionary statement regarding forward-looking statements
23 Financial calendar
24 Contacts
This Interim Financial Report of the TUI Group was prepared for the reporting period from 1 October 2022 to 31
December 2022.
Interim Management Report
Summary
Q1 2023 underlying EBIT of €-153.0m delivering a strong improvement year-on-year (Q1 2022: €-273.6m) with an
encouraging booking momentum across both Winter and Summer seasons.
• 3.3m customers departed in the quarter, an increase of 1.0m customers versus the prior year and 93% of
Q1 2019 customer levels on a like for like basis1. As a result, average load factor for the quarter was 85%
(Q1 2022: Load factor 79%).
• Group revenue of €3.8bn, was up €1.4bn on the prior year (Q1 2022: €2.4bn), reflecting the strength of
demand and a return to a restriction free travel environment achieving levels above pre-pandemic levels (Q1
2019: €3.7bn).
• Q1 Group underlying EBIT at €-153.0m, up by €120.6m and thereby close to half the prior year loss (Q1 2022:
€-273.6m loss), with almost all segments contributing to the strong improvement.
◦ Hotels & Resorts reported a third consecutive quarter above 2019 levels and was up year-on-year,
supported by good operational performances across the hotels businesses.
◦ The recovery in Cruises continues with the segment achieving a third positive quarter since the start
of the pandemic. As a result, the business recorded a strong improvement against last year driven by
higher volumes as well as improved occupancies with a full fleet back in operation.
◦ In Markets & Airlines results were well ahead of last year supported by higher prices and volumes with
Central and Western Regions above 2019 levels.
• Net debt of €-5.3bn as of 31 December 2022 was broadly in line with prior year (31 December 2021: €-5.1bn).
• We re-confirm our expectations to increase underlying EBIT significantly for financial year 20232 supported
by an encouraging booking momentum.
• 8.7m bookings3 have been taken across both the Winter and Summer seasons whereby Summer is, as usual, at an
early booking stage.
• The start into the new year has seen significant booking momentum with record booking days online in both
the UK and Germany. Volumes overall in the last four weeks are now above pre-pandemic levels at +5% for
Winter 2022/23 and +10% for Summer 2023, with higher prices, underlining the popularity of our product
offering and a testament to the importance of travel for our customers.
• Our commitment is to be industry-leading in achieving net-zero emissions and we aim to achieve this target
across our operations and supply chain by 2050 at the latest. Our 2030 Science based targets have been
validated by the SBTi for our Airline, Cruise and Hotel operations and are detailed below.
1 Excluding businesses sold and discontinued since 2019
^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 Bookings up to 5 February 2023 relate to all customers whether risk or non-risk and includes amendments and
voucher re-bookings.
Sustainability as opportunity
• For TUI Group, sustainability covering all three areas of economic, environmental and social sustainability
is a fundamental management principle and a cornerstone of our strategy for continually enhancing the 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
future for tourism.
• We already operate some of the most efficient aircraft and cruise ships. Our commitment is to be
industry-leading in achieving net-zero emissions and we aim to achieve this target across our operations
and supply chain by 2050 at the latest.
• TUI has committed to the Science Based Targets initiative (SBTi) to reduce emissions in line with the
latest climate science by 2030 for airlines, cruises and hotels. The independent organisation has now
checked and validated our reduction targets. It confirmed that they are in line with the latest climate
science. Our targets are:
◦ Reduction of airline CO2e per revenue passenger kilometer by 24% by 20301.
◦ Reduction of absolute CO2e from our own cruise operations by 27.5% by 20301.
◦ Reduction of absolute CO2e from TUI Hotels & Resorts own operations by 46.2% by 20302.
1 Baseline 2019. Level of ambition well below 2Oc. CO2e = CO2 equivalents. Apart from carbon dioxide (CO2),
they include the other five
greenhouse gases impacting the climate as listed in the Kyoto Protocol: methane (CH4), nitrous oxide (N2O),
hydro-fluorocarbons (HFCs),
perfluorocarbons (PFCs) and Sulphur hexafluoride (SF6).
2 Baseline 2019. Level of ambition 1.5Oc
TUI Group - financial highlights
€ million Q1 2023 Q1 2022 Var. % Var. % at constant currency
Revenue 3,750.5 2,369.2 + 58.3 + 59.2
Underlying EBIT1
Hotels & Resorts 71.9 61.1 + 17.7 + 20.9
Cruises 0.2 - 31.7 n. a. + 100.0
TUI Musement - 13.0 - 12.7 - 1.9 + 3.9
Holiday Experiences 59.2 16.7 + 254.9 + 269.8
Northern Region - 122.0 - 171.7 + 29.0 + 24.7
Central Region - 28.3 - 55.0 + 48.6 + 46.0
Western Region - 43.7 - 32.4 - 35.0 - 40.2
Markets & Airlines - 193.9 - 259.0 + 25.1 + 21.1
All other segments - 18.3 - 31.3 + 41.6 + 41.5
TUI Group - 153.0 - 273.6 + 44.1 + 41.2
EBIT1 - 158.7 - 271.4 + 41.5
Underlying EBITDA 58.3 - 65.4 n. a.
EBITDA2 58.0 - 55.5 n. a.
Group loss - 231.8 - 386.5 + 40.0
Earnings per share € - 0.14 - 0.27 + 48.1
Net capex and investment 149.0 53.4 + 179.0
Equity ratio (31 Dec)3 % 0,7 2,5 - 1.8
Net debt (31 Dec) - 5,259.9 - 5,069.6 + 3.8
Employees (31 Dec) 49,979 43,162 + 15.8
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 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 Interim Report for Q1 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.
Trading update - Encouraging booking momentum across both Winter 2022/23 and Summer 2023
Markets & Airlines
• 8.7m bookings1 have been taken across Winter 2022/23 and Summer 2023 with an encouraging development across
both seasons.
• The start into the new year has seen significant booking momentum with record booking days online in both
the UK and Germany. Volumes overall in the last four weeks are now above pre-pandemic at higher prices,
underlining the popularity of our product offering and a testament to the importance of travel for our
customers. Based on the current trend, capacity is expected to be close to pre-pandemic levels.
Winter 2022/23
• To date 4.0m bookings have been taken at this stage of the Winter season with 85% of the programme sold
which is broadly in line with Winter 2018/19 levels.
• Winter 2022/23 bookings stand at 87% of Winter 2018/19 levels up against the 84% we published as part of
our FY22 full-year announcement on 14 December 2022, highlighting the positive booking development in
recent weeks and the trend towards a higher share of short-term bookings with volumes ahead of Winter
2018/19 in the last four weeks at +5%. Against Winter 2021/22, bookings are up strongly at +44%, supported
by an improved trading environment compared to last year.
• Winter ASP is +29% higher against Winter 2018/19 slightly ahead of the +28% reported in December. Compared
to prior year ASP is up +8% which will help to soften the impact from FX volatility and the current higher
inflationary environment.
• In UK bookings are trading in line with capacity assumptions with ASP at +25% versus Winter 2018/19.
• The Canaries, Egypt, Mainland Spain, Cape Verde and Mexico form a key part of our offering for the Winter
season.
Summer 2023
• Current indications for the Summer season are positive. Summer 2023 bookings of 4.7m are at an early stage
at 30% of the overall programme sold with the shorter-term booking trend continuing into Summer.
• Bookings are up +20% year-on-year and at 89% of pre-pandemic levels.
• Against Summer 2022, ASP for the Summer season is at +2% and excluding Summer 2022 re-bookings
rolled-forward from previous seasons which included booking incentives, at +6%, highlighting customers
continued willingness to prioritise spend on travel and experiences. Against pre-pandemic levels ASP is up
+24%.
• Momentum has continued to build in the last four weeks with volumes up +50% versus Summer 2022 and above
pre-pandemic levels at +10%, supported by stronger prices at +12% year-on-year and +27% versus Summer 2019.
• Spain, Greece and Turkey continue to be popular Summer destinations for our customers.
Holiday Experiences
• Hotels & Resorts – Number of available bed nights for H12 is slightly ahead of prior year at +1%, with H2
at +4% versus 2022. Booked occupancy is up year-on-year at +15%pts for H1 and +7%pts for H2 driven by Riu
and Robinson hotels. Average daily rates are well ahead year-on-year for H1 and encouraging for H2, with
Riu driving the strong performance. Key destinations in H1 are the Caribbean, the Canaries and Cape Verde
with the Canaries, the Balearics, Greece and Turkey important destinations in H2.
• Cruises – Our three brands are currently operating a full fleet of in total sixteen ships. As a result,
available passenger cruise days are significantly up +37%3 year-on-year for H1 supported by the return to a
restriction free travel environment, whilst H2 available passenger cruise days are slightly behind at -1%
due to the delivery of Mein Schiff Herz from TUI Cruises to Marella and subsequent refurbishment. Occupancy
rates are up +40%pts. for H1 and +14%pts. for H2, developing, for many Cruises, close to the peaks last
seen in 2019. 2023 booked ticket rates for many cruises are above pre-pandemic levels.
• TUI Musement – Our tours and activity business continues its expansion benefitting from our integrated
model with a global product offering in cities as well as sun and beach locations, and growth of
third-party sales through the TUI Musement platform. The transfer business, providing support to our guests
in their destination, is expected to develop in line with our Markets & Airlines volumes in 2023. Sales to
date for our Experiences business, providing excursions, activities and tickets, are up 70%3 year-on-year
for H1 and up mid-double digit percent for H2. The growth in Experiences is driven by the restriction free
travel environment, enlarged product offering and our diversified distribution via TUI, B2C and B2B.
1 Bookings up to 5 February 2023 relate to all customers whether risk or non-risk and includes amendments and
voucher re-bookings.
2 2023 trading data as of 5 February 2023 excluding Blue Diamond
3 2023 trading data as of 5 February 2023
Net debt
31 December 2022 net debt position of €-5.3bn was broadly in line with prior year (31 December 2021: €-5.1bn).
Strategic priorities
The TUI Group's strategy outlined in the Annual Report 20221 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 supported by asset right growth. Besides this, we
will continue reducing our debt and German government exposure with the aim to return to a solid and healthy
balance sheet and improve our credit rating. On 13 December 2022, TUI has concluded an agreement with the
German Economic Stabilization Fund (“WSF”) on the repayment of stabilisation measures2.
FY23 Assumptions3 – Based on the encouraging booking momentum across both seasons with Summer at an early
stage, we confirm our expectations for FY23 that underlying EBIT will increase significantly.
Mid-term ambitions - We have a clear strategy to accelerate profitable market growth. Our mid-term 2025/26
ambitions are for underlying EBIT to significantly build on €1.2bn4 and also have a target to return to a gross
leverage ratio5 of well below 3.0x.
1 Details on our strategy see TUI Group Annual Report 2022 from page 23.
2 Details on our repayment agreement see page in this Report.
3 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.
4 FY19 underlying EBIT of €893m including €293m Boeing Max cost impact.
5 Defined as as gross debt (Financial liabilities incl. lease liabilities and net pension obligation) divided
by Reported EBITDA; pre impact of
potential capital increase.
Report on changes in expected development
We re-confirm our expectation set out in the Annual Report 2022 for a significant improvement in TUI Group's
underlying EBIT in financial year 20231 compared with 2022.
We continue to consider the remaining assumptions for the financial year 2023 made in the Annual Report 2022
also to be valid2. See also TUI Group Annual Report 2022 from page 52 onwards.
1 Based on constant currency
2 Pre impact of a potential capital increase
Consolidated earnings
Revenue
€ million Q1 2023 Q1 2022 Var. %
Hotels & Resorts 210.9 198.3 + 6.3
Cruises 115.2 34.2 + 237.3
TUI Musement 141.4 66.3 + 113.3
Holiday Experiences 467.5 298.8 + 56.5
Northern Region 1,343.1 652.2 + 105.9
Central Region 1,351.1 985.1 + 37.1
Western Region 534.9 416.1 + 28.6
Markets & Airlines 3,229.1 2,053.4 + 57.3
All other segments 53.8 17.0 + 217.1
TUI Group 3,750.5 2,369.2 + 58.3
TUI Group (at constant currency) 3,772.1 2,369.2 + 59.2
Underlying EBIT
€ million Q1 2023 Q1 2022 Var. %
Hotels & Resorts 71.9 61.1 + 17.7
Cruises 0.2 - 31.7 n. a.
TUI Musement - 13.0 - 12.7 - 1.9
Holiday Experiences 59.2 16.7 + 254.9
Northern Region - 122.0 - 171.7 + 29.0
Central Region - 28.3 - 55.0 + 48.6
Western Region - 43.7 - 32.4 - 35.0
Markets & Airlines - 193.9 - 259.0 + 25.1
All other segments - 18.3 - 31.3 + 41.6
TUI Group - 153.0 - 273.6 + 44.1
EBIT
€ million Q1 2023 Q1 2022 Var. %
Hotels & Resorts 71.3 82.4 - 13.5
Cruises 0.2 - 31.7 n. a.
TUI Musement - 13.4 - 14.6 + 8.3
Holiday Experiences 58.1 36.1 + 61.0
Northern Region - 125.7 - 175.6 + 28.4
Central Region - 28.2 - 64.0 + 56.0
Western Region - 42.6 - 33.2 - 28.4
Markets & Airlines - 196.5 - 272.8 + 28.0
All other segments - 20.2 - 34.7 + 41.7
TUI Group - 158.7 - 271.4 + 41.5
Segmental performance
Holiday Experiences
€ million Q1 2023 Q1 2022 Var. %
Revenue 467.5 298.8 + 56.5
Underlying EBIT 59.2 16.7 + 254.9
Underlying EBIT at constant currency 61.7 16.7 + 269.8
Hotels & Resorts
€ million Q1 2023 Q1 2022 Var. %
Total revenue1 384.7 282.8 + 36.0
Revenue 210.9 198.3 + 6.3
Underlying EBIT 71.9 61.1 + 17.7
Underlying EBIT at constant currency 73.9 61.1 + 20.9
Available bed nights2 ('000) 8,548 8,595 - 0.5
Riu 3,224 3,431 - 6.0
Robinson 825 729 + 13.1
Blue Diamond 1,363 1,323 + 3.0
Occupancy3 (%, variance in % points) 75 64 + 11
Riu 86 69 + 17
Robinson 69 63 + 6
Blue Diamond 84 74 + 10
Average daily rate4 (€) 86 72 + 19.8
Riu 77 66 + 17.6
Robinson 101 101 -
Blue Diamond 151 119 + 27.3
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)
Q1 2023 total revenue grew to €384.7m, an improvement of €101.9m year-on-year (Q1 2022: €282.8m) reflecting the
restriction free travel environment across our multiple destinations, versus the prior year. The segment
reported a Q1 underlying EBIT profit of €71.9m as a result, improving by €10.8m year-on-year (Q1 2022: €61.1m).
Results were supported by good operational performances across the hotels businesses with higher occupancies
and rates in a stronger trading environment leading to higher results especially in the Caribbean, Cape Verde
and Turkey.
Our hotel portfolio is well-diversified in terms of product offer, destination mix and ownership models, and
has benefits from multi-channel and multi-source market distribution via Markets & Airlines, direct to the
customer, and third parties such as Online Travel Agents (OTAs).
We operated 8.5m available bednights (capacity) in the quarter, slightly down on 1% in Q1 2022 due to a number
of hotel renovations.
The overall occupancy rate for the segment increased 11%pts year-on-year to 75%, driven in particular by the
Caribbean and Spanish destinations. Our hotels across the Caribbean delivered average occupancy rates of 87%,
with Mexico being our most popular destination achieving 94% average occupancy in the first quarter. Our hotels
in the Canaries also saw high demand during this winter period, achieving average occupancy of 82%. Other
popular destinations in the quarter were Turkey, Egypt and Cape Verde.
Q1 2023 average daily rate in Hotels & Resorts increased overall by 20% year-on-year to €86 with rates in
particular in the Caribbean higher. Riu’s average daily rate increased 18% to €77 (Q1 2022: €66) and Blue
Diamond average daily rate increased 27% to €151 (Q1 2022: €119). Robinson achieved an average rate of €101, in
line with prior year (Q1 2022: €101).
Cruises
€ million Q1 2023 Q1 2022 Var. %
Revenue1 115.2 34.2 + 237.3
Underlying EBIT 0.2 - 31.7 n. a.
Underlying EBIT at constant currency - 0.0 - 31.7 + 100.0
Available passenger cruise days2 ('000)
Mein Schiff 1,623 1,300 + 24.8
Hapag-Lloyd Cruises 148 148 -
Marella Cruises 607 378 + 60.7
Occupancy3 (%, variance in % points)
Mein Schiff 88 53 + 35
Hapag-Lloyd Cruises 65 50 + 15
Marella Cruises 91 48 + 43
Average daily rate (€)
Mein Schiff4 139 155 - 10.4
Hapag-Lloyd Cruises4 669 624 + 7.1
Marella Cruises5 (in £) 157 142 + 10.7
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 first quarter (Q1 2022: 14 ships operated due to a more restrictive travel environment).
Q1 2023 Cruises revenue, reflecting Marella Cruises solely (TUI Cruises is accounted for using the equity
method) grew to €115.2m, an improvement of €81.1m year-on-year (Q1 2022: €34.2m). As a result, Q1 2023
underlying EBIT for the segment (including the equity result of TUI Cruises) was €0.2m, an improvement of
€31.9m (Q1 2022: €-31.7m loss) with both TUI Cruises and Marella contributing to the positive development and
highlight the continued improvement across all brands supported by higher volumes as well as improved
occupancies. This is the third consecutive positive quarter for our Cruises business with TUI Cruises achieving
Q1 2023 EAT (earnings after tax) at €8m.
Mein Schiff – Mein Schiff operated their full fleet of seven ships against six ships in the previous year,
offering itineraries to the Canaries, the Caribbean and around the world with Asian itineraries resuming in the
quarter for the first time since the pandemic. Occupancy of the operated fleet in Q1 2023 was 88% as a result
(Q1 2022: 53%) demonstrating the strong demand for our German language, premium all-inclusive product. At €139,
the average daily rate was close to pre-pandemic levels (Q1 2019: 149€) but -10% lower versus prior year (Q1
2022: €155) due to a higher mix of premium cabins with overall lower occupancies and capacity in the prior
year.
Hapag-Lloyd Cruises – Hapag-Lloyd Cruises, our luxury and expeditions brand, operated itineraries around the
world as well as voyages to Antarctica with, as in Q1 2022, their full fleet of five ships in Q1 2023. Q1
average daily rate was €669, well above pre-pandemic levels (Q1 2019: €591), an increase of 7% on prior year
(Q1 2022: €624). Q1 occupancy of the fleet was 65% (Q1 2022: 50%), underlining the increased demand for these
cruises.
Marella Cruises – With all four ships in operation against three in Q1 2022, our UK cruise brand, offered
itineraries to the Caribbean and the Canaries. The business achieved an average daily rate of £157 up 10.7 %
(Q1 2022: £142) and above the pre-pandemic level of £137 with occupancy at 91%, versus a previous Q1 of 48%
supported by an improved trading environment.
TUI Musement
€ million Q1 2023 Q1 2022 Var. %
Total revenue1 206.0 100.2 + 105.7
Revenue 141.4 66.3 + 113.3
Underlying EBIT - 13.0 - 12.7 - 1.9
Underlying EBIT at constant currency - 12.2 - 12.7 + 3.9
1 Total revenue includes intra-Group revenue
In TUI Musement, our tours and activity business, Q1 2023 revenue of €141.4m, was up €75.1m year-on-year
(Q1 2022: €66.3m) highlighting the growth in this area, with an underlying EBIT loss of €-13.0m in line with
prior year (Q1 2022: €-12.7m loss), due to investment in particular in the B2C distribution channel. We
continued to accelerate and enhance our digital transformation at TUI Musement to drive the customer experience
throughout all channels, providing support and expertise in resort both in person and through our dedicated TUI
App.
TUI Musement provided 5.0m transfers to guests in their destinations against 3.3m in the same quarter last year
in line with the recovery to a more normalised trading environment across our global destinations. In addition,
1.7m experiences were sold, up 0.7m year-on-year (Q1 2022: 1.1m).
Markets & Airlines
€ million Q1 2023 Q1 2022 Var. %
Revenue 3,229.1 2,053.4 + 57.3
Underlying EBIT - 193.9 - 259.0 + 25.1
Underlying EBIT at constant currency - 204.3 - 259.0 + 21.1
Direct distribution mix1 75 75 -
(in %, variance in % points)
Online mix2 52 52 -
(in %, variance in % points)
Customers ('000) 3,293 2,255 + 46.0
1 Share of sales via own channels (retail and online)
2 Share of online sales
Q1 2023 revenue of €3,229.1m, was up €1,175.7m year-on-year (Q1 2022: €2,053.4m). Q1 underlying EBIT was the
usual seasonal loss for the sector of €-193.9m which however was an improvement of €65.1m year-on-year
(Q1 2022: €-259.0m loss). The results were supported by higher prices and also reflect a restriction free
trading environment year-on-year with good demand for our wide and varied product offering. The overall market
continued to be influenced by uncertainties resulting in inflationary pressures especially on energy as well as
exchange rate volatility. As a consequence, short-term bookings continued to make up a higher proportion of
overall bookings. 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 demand.
A total of 3,293k customers departed in Q1 2023, an increase of 1,038k customers versus Q1 2022. Capacity
operated was 86% of Q1 2019 levels, with an average load factor achieved of 85% for Q1 2023 (Q1 2019: 83%).
Northern Region
€ million Q1 2023 Q1 2022 Var. %
Revenue 1,343.1 652.2 + 105.9
Underlying EBIT - 122.0 - 171.7 + 29.0
Underlying EBIT at constant currency - 129.3 - 171.7 + 24.7
Direct distribution mix1 93 94 - 1
(in %, variance in % points)
Online mix2 68 73 - 5
(in %, variance in % points)
Customers ('000) 1,208 665 + 81.8
1 Share of sales via own channels (retail and online)
2 Share of online sales
Northern Region reported Q1 2023 revenue of €1,343.1m, which was up €690.9m year-on-year (Q1 2022: €652.2m). Q1
underlying EBIT loss for the region of €-122.0m decreased by €49.7m year-on-year (Q1 2022:
€-171.7m loss) with both the UK and Nordic results higher supported by a return to a more normalised operating
environment. This was offset to an extent by disruption costs due to winter storm Elliot in North America
impacting the key winter business in Canada.
Q1 2023 customer volumes increase to 1,208k versus 665k customers in Q1 2022 underlining the market recovery.
Online distribution continues to be strong at 68%, which was down 5%pts against prior year (Q1 2022: 73%) but
slightly ahead of pre-pandemic levels (Q1 2019: 67%). The comparison against last year is however limited due
to lower volumes and longer retail shop closures due to the COVID-19 restrictions last year. Direct
distribution was at 93% broadly in line with prior year (Q1 2022: 94%) and at pre-pandemic levels (Q1 2019:
93%).
Central Region
€ million Q1 2023 Q1 2022 Var. %
Revenue 1,351.1 985.1 + 37.1
Underlying EBIT - 28.3 - 55.0 + 48.6
Underlying EBIT at constant currency - 29.7 - 55.0 + 46.0
Direct distribution mix1 54 56 - 2
(in %, variance in % points)
Online mix2 28 30 - 2
(in %, variance in % points)
Customers ('000) 1,222 917 + 33.2
1 Share of sales via own channels (retail and online)
2 Share of online sales
Q1 revenue of €1,351.1m, was up €365.9m year-on-year (Q1 2022: €985.1m) with a significant improvement in the
underlying EBIT loss for the region of €-28.3m, almost halving the prior year losses (Q1 2022: €-55.0m loss)
and returning to above pre-pandemic levels (Q1 2019: €-37,1m). The significant improvement was driven in
particular by a strong operational performance in the key source market and a return to a more normalised
trading environment.
Customer volume increased by 33.2% to 1,222k versus prior year (previous year 917k) in line with the easing of
travel restrictions due to COVID-19. Online distribution for Central Region reached 28%, down 2%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 7%pts (Q1 2019:
21%) emphasising the significant development of our online offering in this region in line with consumer demand
for this channel. Direct distribution was down 2%pts to 54% against Q1 2022 of 56% but slightly ahead versus
pre-pandemic levels (Q1 2019: 49%).
Western Region
€ million Q1 2023 Q1 2022 Var. %
Revenue 534.9 416.1 + 28.6
Underlying EBIT - 43.7 - 32.4 - 35.0
Underlying EBIT at constant currency - 45.4 - 32.4 - 40.2
Direct distribution mix1 79 82 - 3
(in %, variance in % points)
Online mix2 62 63 - 1
(in %, variance in % points)
Customers ('000) 863 673 + 28.2
1 Share of sales via own channels (retail and online)
2 Share of online sales
In Western Region Q1 2023 revenue of €534.9m, was up €118.9m year-on-year (Q1 2022: €416.1m). Q1 underlying
EBIT loss of €-43.7m, decreased by €-11.3m year-on-year (Q1 2022: €-32.4m loss). Despite improving volumes in
the region year-on-year, results in the Netherlands were impacted by a softer trading environment post summer
flight disruptions in Schiphol.
Customer volumes increased by 28.2% to 863k guests year-on-year (Q1 2022: 673k). Online distribution for region
stood at 62%, 1%pt below prior year but up 3%pts versus pre-pandemic levels (Q1 2019: 59%). Direct distribution
was down 3%pts to 79% versus last year (Q1 2022: 82%) but up 3%pts against pre-pandemic levels (Q1 2019: 76%).
All other segments
€ million Q1 2023 Q1 2022 Var. %
Revenue 53.8 17.0 + 217.1
Underlying EBIT - 18.3 - 31.3 + 41.6
Underlying EBIT at constant currency) - 18.3 - 31.3 + 41.5
Q1 2023 underlying EBIT loss of €-18.3m, improved €13.0m year-on-year (Q1 2022: €-31.3m loss) supported by cost
savings across the segment.
Financial position and net assets
Cash Flow / Net capex and investments / Net debt
In the first three months of financial year 2023, TUI Group’s business volume was significantly higher than in
Q1 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 addition
to seasonality, the winter season of the previous year was also negatively affected by the impact of the COVID
19 pandemic.
TUI Group's operating cash outflow in Q1 2023 of €1,670.9m increased by €706.3m 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 Q1 2023.
Net debt position as at 31 December 2022 of €-5.3bn was close to previous year level (31 December
2021: €-5.1bn).
Net debt
€ million 31 Dec 2022 31 Dec 2021 Var. %
Financial debt 3,951.8 3,576.6 + 10.5
Lease liabilities 2,935.8 3,260.2 - 10.0
Cash and cash equivalents 1,542.7 1,649.3 - 6.5
Short-term interest-bearing investments 85.0 117.8 - 27.8
Net debt -5,259.9 -5,069.6 + 3.8
Net capex and investments
€ million Q1 2023 Q1 2022 Var. %
Cash gross capex
Hotels & Resorts 71.4 22.0 + 224.5
Cruises 28.0 21.5 + 30.2
TUI Musement 4.0 3.5 + 14.3
Holiday Experiences 103.4 47.0 + 120.0
Northern Region 5.7 4.9 + 16.3
Central Region 1.8 0.5 + 260.0
Western Region 4.2 1.2 + 250.0
Markets & Airlines* 33.1 10.3 + 221.4
All other segments 33.0 25.6 + 28.9
TUI Group 169.5 82.9 + 104.5
Net pre delivery payments on aircraft 59.0 - 46.4 n. a.
Financial investments 0.3 - n. a.
Divestments - 79.8 16.9 n. a.
Net capex and investments 149.0 53.4 + 179.0
* Including €21.4m for Q1 2023 (Q1 2023: €3.7m) 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 Q1 2023 was 104.5% higher year-on-year. This increase was mainly due to higher investments
in Hotels & Resorts and the airline sector. Net capex and investments of €149.0m increased by €95.6m
year-on-year. The divestments include an inflow of €71m from the sale of the stakes in RIU Hotels S.A. in
financial year 2021.
Assets and liabilities
€ million 31 Dec 2022 30 Sep 2022 Var. %
Non-current assets 11,091.9 11,351.7 - 2.3
Current assets 3,481.8 3,903.8 - 10.8
Total assets 14,573.7 15,255.5 - 4.5
Equity 101.6 645.7 - 84.3
Provisions 1,870.2 1,897.4 - 1.4
Financial liabilities 3,951.8 2,051.3 + 92.6
Other liabilities 8,650.1 10,661.0 - 18.9
Total equity, liabilities and provisions 14,573.7 15,255.5 - 4.5
Comments on the consolidated income statement
In the first three months of financial year 2023, TUI Group’s business volume was significantly higher than in
Q1 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 addition
to seasonality, the winter season of the previous year was also negatively affected by the impact of the COVID
19 pandemic.
In Q1 2023, consolidated revenue increased by €1.4bn year-on-year to €3.8bn.
Unaudited condensed consolidated Income Statement of TUI AG for the period from1 Oct 2022 to 31 Dec 2022
€ million Q1 2023 Q1 2022 Var. %
Revenue 3,750.5 2,369.2 +58.3
Cost of sales 3,661.4 2,472.4 +48.1
Gross profit / loss 89.2 - 103.2 n. a.
Administrative expenses 242.6 201.7 +20.3
Other income 6.0 26.2 - 77.1
Other expenses 5.8 0.9 +544.4
Impairment (+) / Reversal of impairment (-) of financial assets 0.8 - 4.3 n. a.
Financial income 18.4 20.8 - 11.5
Financial expense 132.5 147.8 - 10.4
Share of result of investments accounted for using the equity method - 4.4 - 2.3 - 91.3
Earnings before income taxes - 272.6 - 404.5 +32.6
Income taxes (expense (+), income (-)) - 40.8 - 17.9 - 127.9
Group loss - 231.8 - 386.5 +40.0
Group loss attributable to shareholders of TUI AG - 256.1 - 384.3 +33.4
Group profit / loss attributable to non-controlling interest 24.3 - 2.3 n. a.
Alternative performance measures
The Group’s main financial KPI is underlying EBIT. We define the EBIT in underlying EBIT as earnings before
interest, income taxes and expenses for the measurement of the Group’s interest hedges. EBIT by definition
includes goodwill impairments.
One-off items carried here include adjustments for income and expense items that reflect amounts and
frequencies of occurrence rendering an evaluation of the operating profitability of the segments and the Group
more difficult or causing distortions. These items include gains on disposal of financial investments,
significant gains and losses from the sale of assets as well as significant restructuring and integration
expenses. Any effects from purchase price allocations, ancillary acquisition costs and conditional purchase
price payments are adjusted. Also, any goodwill impairments are adjusted in the reconciliation to underlying
EBIT.
Reconciliation to underlying EBIT
€ million Q1 2023 Q1 2022 Var. %
Earnings before income taxes - 272.6 - 404.5 +32.6
plus: Net interest expenses (excluding expense / income from measurement of 110.5 131.6 - 16.0
interest hedges)
plus: (Income) expense from measurement of interest hedges 3.4 1.5 +126.7
EBIT - 158.7 - 271.4 +41.5
Adjustments:
less: Separately disclosed items - 0.7 - 9.3
plus: Expense from purchase price allocation 6.4 7.1
Underlying EBIT - 153.0 - 273.6 +44.1
The TUI Group’s operating loss adjusted for special items decreased by €120.6m to €-153.0m in Q1 2023.
• For further details on the separately disclosed items see page 44 in the Notes of this Interim Report.
Key figures of income statement
€ million Q1 2023 Q1 2022 Var. %
EBITDAR 57.8 - 51.5 n. a.
Operating rental expenses 0.2 - 4.0 n. a.
EBITDA 58.0 - 55.5 n. a.
Depreciation/amortisation less reversals of depreciation* - 216.7 - 215.9 - 0.4
EBIT - 158.7 - 271.4 + 41.5
Income/Expense from the measurement of interest hedges 3.4 1.5 + 126.7
Net interest expense (excluding expense/income from measurement of interest 110.5 131.6 - 16.0
hedges)
EBT - 272.6 - 404.5 + 32.6
* on property, plant and equipment, intangible assets, right of use assets and other assets
Other segment indicators
Underlying EBITDA
€ million Q1 2023 Q1 2022 Var. %
Hotels & Resorts 122.0 107.0 + 14.0
Cruises 17.9 - 15.0 n. a.
TUI Musement - 7.0 - 6.8 - 2.8
Holiday Experiences 132.9 85.1 + 56.1
Northern Region - 43.2 - 96.5 + 55.2
Central Region - 3.0 - 27.1 + 88.8
Western Region - 7.2 3.0 n. a.
Markets & Airlines - 53.4 - 120.6 + 55.7
All other segments - 21.3 - 30.0 + 29.0
TUI Group 58.3 - 65.4 n. a.
EBITDA
€ million Q1 2023 Q1 2022 Var. %
Hotels & Resorts 121.4 128.3 - 5.4
Cruises 17.9 - 15.0 n. a.
TUI Musement - 5.7 - 7.0 + 18.6
Holiday Experiences 133.6 106.3 + 25.7
Northern Region - 44.1 - 97.1 + 54.6
Central Region - 2.9 - 34.6 + 91.7
Western Region - 5.4 3.0 n. a.
Markets & Airlines - 52.4 - 128.6 + 59.3
All other segments - 23.3 - 33.2 + 29.9
TUI Group 58.0 - 55.5 n. a.
Employees
31 Dec 2022 31 Dec 2021 Var. %
Hotels & Resorts 19,179 15,456 + 24.1
Cruises* 75 56 + 33.9
TUI Musement 6,718 4,687 + 43.3
Holiday Experiences 25,972 20,199 + 28.6
Northern Region 9,444 8,668 + 9.0
Central Region 7,033 7,344 - 4.2
Western Region 5,004 4,609 + 8.6
Markets & Airlines 21,481 20,621 + 4.2
All other segments 2,526 2,342 + 7.9
Total 49,979 43,162 + 15.8
* Excludes TUI Cruises (JV) employees. Cruises employees are primarily hired by external crew management
agencies.
Corporate Governance
Composition of the Boards
In Q1 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.
Supervisory Board
There were no changes in the composition of the Supervisory Board in Q1 2023.
The current, complete composition of the Executive Board and Supervisory Board is published on our website,
where it is permanently accessible to the public.
• www.tuigroup.com/en-en/investors/corporate-governance
Risk and Opportunity Report
Successful management of existing and emerging risks is critical to the long-term success of our business and
to the achievement of our strategic objectives.
We aggregate the risks into principal risks, were senior management is deciding its risk appetite upon. Full
details of our risk governance framework and principal risks can be found in the Annual Report 2022.
Details see Risk Report in our Annual Report 2022, from page 34
External events, namely the COVID 19-pandemic, the impact on input cost due the Ukraine war, and supply chain
disruptions impact the principal risks. The impact is higher if a combination of principal risks is affected.
Although the impact of the COVID-19 pandemic on economic activity has diminished, the global geopolitical and
economic environment remains challenging.
The booking dynamics in our most important markets have so far remained largely unaffected by Russia's war of
aggression on Ukraine. However, the intensified general price increase , especially due to rising energy costs,
may lead to a reduction in the private budget available for travel services, thus lowering purchasing power and
resulting in declining customer demand. In addition, the war is affecting our input cost volatility risk: Fuel
and other services we source in US-Dollars and the jet-fuel or bunker price itself have a significant impact on
our cost structure. Whereas we seek to minimize these effects through hedging, the lines with bank for doing
so, continue to be tight, hence any unhedged position may create unwanted impacts on our earnings. This
particularly affects the results of the Northern Region, Central Region, Western Region and Cruises segments.
Our operation is dependent on a complex chain of supply of goods and services. In some areas, suppliers cannot
easily be interchanged, leading to a reliance on these key suppliers. The strong industry recovery immediately
after the COVID-19 pandemic, compounded by a tight labour market, has led to significant operational issues
particularly in the European airline operations. Although TUI as well as the service suppliers have placed
numerous measures to increase the resilience, there remains the risk that the peak summer operation may still
be impacted by disruptions causing additional cost or an adverse impact on our bookings.
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 December 2022, the Executive Board does not identify any material uncertainty that may cast
significant doubt on the Group’s ability to continue as a going concern.
In its assessment, the Executive Board assumes that booking behaviour in the financial year 2023 will largely
correspond to the pre-pandemic level. The Executive Board assumes that travel behaviour will not be affected by
further long-term closures and lockdowns or by the impact of Russia’s war of aggression against Ukraine.
The Executive Board does not consider the remaining risk with regard to a further pandemic / war-related change
in booking behaviour to be a threat to the company’s existence. Nevertheless, the TUI Group’s performance might
be impaired by the following factors. The intensified general price increase of recent months could continue,
in particular due to rising energy costs, and lead to a significant reduction in the private budget available
for travel services, thus lowering purchasing power and resulting in declining customer demand. In addition, a
permanent increase in fuel costs as well as other services, especially those we purchase in US dollars, could
lead to an increase in our input costs. Further burdens could result from continued or increased flight
disruptions. If these risks were to materialise, compliance with the financial covenants as at 31 March 2023
and 30 September 2023 could be jeopardised. The Executive Board considers the simultaneous occurrence of these
risks to be very unlikely and therefore assumes that the financial targets (covenants) will be met.
Unaudited condensed consolidated Interim Financial Statements
Unaudited condensed consolidated Income Statement of TUI AG for the period from1 Oct 2022 to 31 Dec 2022
€ million Notes Q1 2023 Q1 2022
Revenue (1) 3,750.5 2,369.2
Cost of sales (2) 3,661.4 2,472.4
Gross profit / loss 89.2 - 103.2
Administrative expenses (2) 242.6 201.7
Other income (3) 6.0 26.2
Other expenses (4) 5.8 0.9
Impairment (+) / Reversal of impairment (-) of financial assets (19) 0.8 - 4.3
Financial income (5) 18.4 20.8
Financial expense (5) 132.5 147.8
Share of result of investments accounted for using the equity method (6) - 4.4 - 2.3
Earnings before income taxes - 272.6 - 404.5
Income taxes (expense (+), income (-)) (7) - 40.8 - 17.9
Group loss - 231.8 - 386.5
Group loss attributable to shareholders of TUI AG - 256.1 - 384.3
Group profit / loss attributable to non-controlling interest (8) 24.3 - 2.3
Earnings per share
€ Q1 2023 Q1 2022
Basic and diluted loss / earnings per share - 0.14 - 0.27
Unaudited condensed consolidated Statement of Comprehensive Income of TUI AG for the period from1 Oct 2022 to
31 Dec 2022
€ million Q1 2023 Q1 2022
Group loss - 231.8 - 386.5
Remeasurements of defined benefit obligations and related fund assets - 123.7 72.6
Fair value profit / loss on investments in equity instruments designated as at FVTOCI 1.1 - 0.3
Income tax related to items that will not be reclassified (expense (-), income (+)) 30.9 - 18.1
Items that will not be reclassified to profit or loss - 91.7 54.2
Foreign exchange differences - 101.3 3.7
Foreign exchange differences outside profit or loss - 101.3 3.7
Cash flow hedges - 136.3 - 3.9
Changes in the fair value - 116.3 - 2.5
Reclassification - 20.0 - 1.4
Other comprehensive income of investments accounted for using the equity method that may be - 1.0 2.8
reclassified
Changes in the measurement outside profit or loss - 1.0 2.8
Income tax related to items that may be reclassified (expense (-), income (+)) 34.7 0.6
Items that may be reclassified to profit or loss - 203.8 3.2
Other comprehensive income - 295.6 57.4
Total comprehensive income - 527.3 - 329.1
attributable to shareholders of TUI AG - 530.8 - 331.9
attributable to non-controlling interest 3.5 2.8
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 31 Dec 2022
€ million Notes 31 Dec 2022 30 Sep 2022
Assets
Goodwill (9) 2,952.0 2,970.6
Other intangible assets 515.9 507.6
Property, plant and equipment (10) 3,414.7 3,400.9
Right-of-use assets (11) 2,741.2 2,971.5
Investments in joint ventures and associates 745.2 785.4
Trade and other receivables (12), (19) 156.0 131.6
Derivative financial instruments (19) 3.3 26.6
Other financial assets (19) 11.5 10.6
Touristic payments on account 133.0 138.0
Other non-financial assets 124.8 169.7
Income tax assets 17.2 17.2
Deferred tax assets 277.0 222.0
Non-current assets 11,091.9 11,351.7
Inventories 56.6 56.1
Trade and other receivables (12), (19) 897.4 1,011.8
Derivative financial instruments (19) 90.7 232.5
Other financial assets (19) 85.0 85.8
Touristic payments on account 616.3 619.6
Other non-financial assets 134.5 135.4
Income tax assets 27.5 23.1
Cash and cash equivalents (19) 1,542.7 1,736.9
Assets held for sale (13) 31.0 2.7
Current assets 3,481.8 3,903.8
Total assets 14,573.7 15,255.5
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 31 Dec 2022
€ million Notes 31 Dec 2022 30 Sep 2022
Equity and liabilities
Subscribed capital 1,785.2 1,785.2
Capital reserves 6,085.9 6,085.9
Revenue reserves - 8,980.3 - 8,432.7
Silent participation 420.0 420.0
Equity before non-controlling interest - 689.2 - 141.6
Non-controlling interest 790.8 787.3
Equity (18) 101.6 645.7
Pension provisions and similar obligations (14) 622.9 568.2
Other provisions 801.8 755.0
Non-current provisions 1,424.6 1,323.2
Financial liabilities (15), (19) 3,660.2 1,731.4
Lease liabilities (16) 2,270.5 2,508.7
Derivative financial instruments (19) 0.2 3.2
Other financial liabilities (17), (19) 2.6 2.8
Other non-financial liabilities 256.8 165.2
Income tax liabilities 10.6 11.1
Deferred tax liabilities 52.2 121.2
Non-current liabilities 6,253.1 4,543.8
Non-current provisions and liabilities 7,677.7 5,867.0
Pension provisions and similar obligations (14) 32.5 33.1
Other provisions 413.0 541.0
Current provisions 445.5 574.2
Financial liabilities (15), (19) 291.6 319.9
Lease liabilities (16) 665.4 698.8
Trade payables (19) 2,003.3 3,316.5
Derivative financial instruments (19) 110.8 57.5
Other financial liabilities (17), (19) 122.9 174.6
Touristic advance payments received 2,627.3 2,998.9
Other non-financial liabilities 460.2 519.9
Income tax liabilities 67.3 82.3
Current liabilities 6,348.8 8,168.6
Current provisions and liabilities 6,794.4 8,742.7
Total equity, liabilities and provisions 14,573.7 15,255.5
Unaudited condensed consolidated Statement of Changes in Equity of TUI AG for the period from1 Oct 2022 to 31
Dec 2022
Subscribed Capital Revenue Silent Equity before Non-controlling
€ million capital reserves reserves participation non-controlling interest Total
interest
Balance as at 1,099.4 5,249.6 - 1,091.0 - 1,085.8 667.3 - 418.4
1 Oct 2021 8,525.7
Share-based
payment - - 0.2 - 0.2 - 0.2
schemes
Capital 523.5 583.0 - - 1,106.5 - 1,106.5
increase
Group loss for - - - 384.3 - - 384.3 - 2.3 - 386.6
the year
Foreign
exchange - - - 1.2 - - 1.2 5.0 3.8
differences
Financial
assets at - - - 0.3 - - 0.3 - - 0.3
FVTOCI
Cash flow - - - 3.9 - - 3.9 - - 3.9
hedges
Remeasurements
of defined
benefit - - 72.6 - 72.6 - 72.6
obligations
and related
fund assets
Other
comprehensive
income of
investments - - 2.8 - 2.8 - 2.8
accounted for
using the
equity method
Taxes
attributable
to other - - - 17.5 - - 17.5 - - 17.5
comprehensive
income
Other
comprehensive - - 52.5 - 52.5 5.0 57.5
income
Total
comprehensive - - - 331.8 - - 331.8 2.7 - 329.1
income
Balance as at 1,622.9 5,832.5 - 1,091.0 - 310.8 669.9 359.1
31 Dec 2021 8,857.3
Balance as at 1,785.2 6,085.9 - 420.0 - 141.6 787.3 645.7
1 Oct 2022 8,432.7
Coupon on
silent - - - 16.8 - - 16.8 - - 16.8
participation
Group
profit/loss - - - 256.1 - - 256.1 24.3 - 231.8
for the year
Foreign
exchange - - - 80.4 - - 80.4 - 20.9 - 101.3
differences
Financial
assets at - - 1.1 - 1.1 - 1.1
FVTOCI
Cash flow - - - 136.3 - - 136.3 - - 136.3
hedges
Remeasurements
of defined
benefit - - - 123.7 - - 123.7 - - 123.7
obligations
and related
fund assets
Other
comprehensive
income of
investments - - - 1.0 - - 1.0 - - 1.0
accounted for
using the
equity method
Taxes
attributable
to other - - 65.6 - 65.6 - 65.6
comprehensive
income
Other
comprehensive - - - 274.7 - - 274.7 - 20.9 - 295.6
income
Total
comprehensive - - - 530.8 - - 530.8 3.4 - 527.4
income
Balance as at 1,785.2 6,085.9 - 420.0 - 689.2 790.7 101.6
31 Dec 2022 8,980.3
Unaudited condensed consolidated Cash Flow Statement of TUI AG for the period from1 Oct 2022 to 31 Dec 2022
€ million Notes Q1 2023 Q1 2022
Group loss - 231.8 - 386.5
Depreciation, amortisation and impairment (+) / write-backs (-) 216.7 216.0
Other non-cash expenses (+) / income (-) 12.7 9.8
Interest expenses 129.5 138.8
Dividends from joint ventures and associates 2.2 0.1
Profit (-) / loss (+) from disposals of non-current assets - 4.0 - 24.5
Increase (-) / decrease (+) in inventories - 1.1 0.2
Increase (-) / decrease (+) in receivables and other assets 310.2 - 87.7
Increase (+) / decrease (-) in provisions - 120.6 - 53.2
Increase (+) / decrease (-) in liabilities (excl. financial liabilities) - 1,984.6 - 777.3
Cash inflow / cash outflow from operating activities (22) - 1,670.9 - 964.6
Payments received from disposals of property, plant and equipment and intangible 9.9 58.5
assets
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 72.8 - 23.6
Payments made for investments in property, plant and equipment and intangible - 228.6 - 85.8
assets
Payments made for investments in other non-current assets - 0.9 -
Cash inflow / cash outflow from investing activities (22) - 147.6 - 53.2
Payments received from capital increase by issuing new shares - 1,106.5
Coupon on silent participation (dividends) - 16.8 -
Payments received from the raising of financial liabilities 1,984.3 284.8
Payments made for redemption of loans and financial liabilities - 47.7 - 77.9
Payments made for principal of lease liabilities - 162.8 - 141.8
Interest paid - 122.3 - 94.4
Cash inflow / cash outflow from financing activities (22) 1,634.7 1,077.2
Net change in cash and cash equivalents - 183.7 59.4
Development of cash and cash equivalents (22)
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 - 10.6 3.8
Net change in cash and cash equivalents - 183.7 59.4
Cash and cash equivalents at end of period 1,542.7 1,649.3
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 December 2022. The Interim
Financial Statements are prepared in euros. Unless stated otherwise, all amounts are stated in million euros
(€m). 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 13 February
2023.
Accounting principles
Declaration of compliance
The consolidated interim financial report for the period ended 31 December 2022 comprise the Interim Financial
Statements and the Interim Management Report in accordance with section 115 of the German Securities Trading
Act (WpHG).
The Interim Financial Statements were prepared in conformity with the International Financial Reporting
Standards (IFRS) of the International Accounting Standards Board (IASB) and the relevant interpretations of the
IFRS Interpretation Committee (IFRS IC) for interim financial reporting applicable in the European Union.
In accordance with IAS 34, the Interim Financial Statements are published in a condensed form compared with the
consolidated annual financial statements and should therefore be read in combination with TUI Group’s
consolidated financial statements for financial year 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 December 2022 was €5.3bn (as at 30
September 2022 €3.4bn).
Net debt
€ million 31 Dec 2022 30 Sept 2022 Var. %
Financial debt 3,951.8 2,051.3 + 92.6
Lease liabilities 2,935.8 3,207.5 - 8.5
Cash and cash equivalents 1,542.7 1,736.9 - 11.2
Short-term interest-bearing investments 85.0 85.8 - 0.9
Net debt -5,259.9 -3,436.2 + 53.1
The global travel restrictions to contain COVID-19 have had a continuous negative impact on the Group's
earnings and liquidity development since the end of March 2020. To cover the resulting liquidity needs, the
Group has carried out various financing measures in the financial years 2020 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 €2.85bn, an option bond from the Economic Stabilisation Fund (WSF) totalling €150m and two silent
participations from the WSF initially totalling €1.091bn.
In financial year 2022, TUI reduced KfW's credit line to €2.1bn 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 €671.0m was
repaid in full ahead of schedule. Including the coupons to be shown as dividends, TUI repaid €725.4m to WSF.
Following full repayment and termination of the KfW credit line, TUI has to pay remuneration to the German
state for the coupons saved by the early repayment of Silent Participation II.
In the IFRS consolidated financial statements, the silent participations are reported as equity due to their
nature and are therefore not included in the Group's net debt. The financing measures are described in detail
in the annual reports for the past three financial years.
As at 31 December 2022, TUI Group’s revolving credit facilities totalled €3.74bn. They have a term until summer
2024 and comprised the following
• €1.64bn credit line from 20 private banks (incl. €190m guarantee line)
• €2.1bn KfW credit line.
With regard to the KfW credit lines, it was agreed that TUI AG would use 50% of individual cash inflows
exceeding €50m, 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 €1.64bn 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 €420m (“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 €58.7m 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.
Under the Repayment Agreement, the Company is obliged, to the extent permitted by law, to propose to the
General Meeting a reduction in the Company’s share capital from currently approx. €1.785bn to then approx.
€179m by consolidating shares at a ratio of ten to one in accordance with the provisions of the German Economic
Stabilization Acceleration Act (Wirtschaftsstabilisierungsbeschleunigungsgesetz - “WStBG”). The amount of the
reduction of approx. €1.606bn will be allocated to the Company's capital reserves and will not be distributed
to shareholders. The capital reduction shall pave the way for the termination of the stabilization measures and
is thus related to the recapitalization of the Company implemented in January 2021. The invitation to the
Annual General Meeting, including the full agenda and the corresponding resolution proposals from Company
management, has been published in the German Federal Gazette (Bundesanzeiger) and on the Company’s website at
the beginning of January 2023.
Pursuant to the recapitalization measures adopted in January 2021, WSF has the right to convert Silent
Participation I at a conversion price of €1.00 per share into currently up to €420m shares in the Company. In
addition, under the Warrants, the WSF has the right to subscribe for currently up to 58,674,899 shares in the
Company at an option price of 1.00 € per share, whereby the option price can also be paid by contributing the
Warrant Bond.
The repayment agreement provides for a right of the Company to terminate the Silent Participation I in full and
to repurchase the remaining Warrant Bond together with all Warrants until 31 December 2023 at a repayment price
of €730,113,240.00 plus interest accruing until repayment under the stabilization measures. In economic terms,
this price accounts for the existing conversion and option rights of the WSF. If the weighted average stock
exchange price of the shares of the Company during the last fifteen calendar days prior to the date of the
public announcement of the Refinancing Capital Increase referred to below, as adjusted for the price increase
effect of the share consolidation, (“Adjusted Average Price”), is higher than 1.6816€, the repayment price
shall be increased in accordance with the repayment agreement as follows: The Adjusted Average Price less a
discount of 9.3% shall be multiplied by the total nominal amount of the stabilization measures in the amount of
€478.7m, capped at a maximum amount of €957.4m.
WSF undertakes not to exercise its conversion and option rights under Silent Participation I and the Warrants
until 31 December 2023. The Company is obliged to exercise its repayment and repurchase right under the
Repayment Agreement in the event of successful completion of the Refinancing Capital Increase referred to
below. If the stabilization measures are not fully terminated by 31 December 2023, the Company will pay WSF an
at market standstill premium.
To finance the repayment of the WSF and thus the termination of the stabilization measures, the Company is
obligated under the Repayment Agreement, to the extent permitted by law, to use its best efforts to implement a
rights issue capital increase from the Authorized Capital 2022/I existing pursuant to Art. 4 par. 5 of the
Articles of Association in the amount of approx. €162m and from Authorized Capital 2022/II existing pursuant to
Art. 4 par. 7 of the Articles of Association in the amount of approx. €627m (“Refinancing Capital Increase”).
This obligation applies for a period starting from the effective date of the capital reduction referred to
above until 31 December 2023 – subject to the positive assessment of the then prevailing capital market
conditions by the Board of Management and Supervisory Board. The proceeds from this Refinancing Capital
Increase shall be used primarily for a full repayment of Silent Participation I and a repurchase of the Warrant
Bond and the Warrants.
The Company intends to use (i) the proceeds from the exercise of the Authorized Capital 2022/I exclusively for
the priority of the full repayment of the WSF and (ii) the proceeds from the exercise of Authorized Capital
2022/II predominantly for a substantial redemption of KfW's credit lines, it being understood that both capital
increases shall be carried out simultaneously in one subscription offer.
The effectiveness of the repayment agreement is still subject to confirmation by the European Commission that
it does not raise any objections under state aid law. Additionally the General Meeting needs to approve the
reduction in the Company’s share capital and a rights issue capital increase must have been implemented before
the repayment agreement can be closed.
Currently, TUI Group is only marginally effected by the negative financial impact of the COVID-19 pandemic.
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. As of April 2022, the entire fleet of
the Cruises Segment was in operation, and as of summer 2022, the Hotels & Resorts Segment was able to offer the
entire product portfolio. Demand recovered very robustly, albeit later than assumed in the previous year’s
planning due to the travel restrictions in place at the beginning of the financial year 2022. In the Cruises
segment, the recovery in demand started later than in the other segments. A more short-term booking behaviour
continues to be observed.
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 December 2022, the Executive Board does not identify any material uncertainty that may cast
significant doubt on the Group’s ability to continue as a going concern.
In its assessment, the Executive Board assumes that booking behaviour in the 2023 financial year will largely
correspond to the pre-pandemic level. The Executive Board assumes that travel behaviour will not be affected by
further long-term closures and lockdowns or by the impact of Russia’s war of aggression against Ukraine.
The Executive Board does not consider the remaining risk with regard to a further pandemic / war-related change
in booking behaviour to be a threat to the company’s existence. Nevertheless, the TUI Group’s performance might
be impaired by the following factors. The intensified general price increase of recent months could continue,
in particular due to rising energy costs, and lead to a significant reduction in the private budget available
for travel services, thus lowering purchasing power and resulting in declining customer demand. In addition, a
permanent increase in fuel costs as well as other services, especially those we purchase in US dollars, could
lead to an increase in our input costs. Further burdens could result from continued or increased flight
disruptions. If these risks were to materialise, compliance with the financial covenants as at 31 March 2023
and 30 September 2023 could be jeopardised. The Executive Board considers the simultaneous occurrence of these
risks to be very unlikely and therefore assumes that the financial targets (covenants) will be met.
In accordance with Regulation 30 of the UK Corporate Governance Code, the Executive Board confirms that,
in its opinion, it is appropriate to prepare the consolidated interim financial statements on a going concern
basis.
Accounting and measurement methods
The preparation of the Interim Financial Statements requires management to make estimates and judgements that
affect the reported values of assets, liabilities and contingent liabilities at the balance sheet date and the
reported values of revenues and expenses during the reporting period.
Both the recent development of the pandemic and current trading for the summer programme have confirmed the
business performance guidance provided by TUI at the end of financial year 2022. Additionally a risk assessment
was performed for the Group’s assets to identify any indications of impairment as at 31 December 2022. On the
basis of that assessment, TUI does not see any indication that the Group’s assets may generally be impaired.
The accounting and measurement methods adopted in the preparation of the Interim Financial Statements as at 31
December 2022 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.
The repayment agreement with the WSF has not been recognized as per 31. December 2022 as the conditions for its
effectiveness and closing have not yet been met and as it is not sufficiently certain at this time that they
will be met. For further details on the repayment agreement please see ‘Going concern reporting in accordance
with the UK Corporate Governance Code’.
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 from Amendments Impact on financial
statements
The amendments specify which costs to
include in assessing whether a contract is
onerous. The amendments clarify that the No impacts to the Q1
Amendments to cost of fulfilling a contract consists of interim reporting. For
IAS 37 1 Jan 2022 the direct cost of the contract representing the current financial
Onerous Contracts either the incremental costs of fulfilling year no material
the contract or an allocation of other costs impacts are expected.
that relate directly to fulfilling the
contract.
The amendments prohibit deducting from the
cost of an item of property, plant and
equipment any proceeds from selling items
Amendments to produced while bringing that asset to the
IAS 16 1 Jan 2022 location and condition necessary for it to No impacts.
Proceeds before be capable of operating in the manner
Intended Use intended by management. Instead, an entity
has to 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
Reference to the 1 Jan 2022 Conceptual Framework in IFRS 3 without No impacts.
Conceptual Framework changing the accounting requirements for
business combinations.
The amendments resulting from the Annual
Various amendments to Improvements 2018-2020 Cycle include small
IFRS (2018-2020) 1 Jan 2022 amendments to IFRS 1, IFRS 9, IAS 41, and No major impacts.
the Illustrative Examples accompanying IFRS
16.
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 December 2022 comprised a total of 270 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 2 - -
Incorporation 1 - -
Demerger 1 - -
Disposals - - -
Number at 31 Dec 2022 270 17 27
* excl. TUI AG
Acquisitions – Divestments
Acquisitions in the period under review
In 3M 2023, no companies were acquired.
No acquisitions were made after the reporting date.
Acquisitions of the prior financial year
In financial year 2022, no companies were acquired under IFRS 3.
Divestments
In 3M 2023, no companies were sold.
No divestments took place after the reporting date.
Notes to the unaudited condensed consolidated Income Statement
In the first three months of financial year 2023, TUI Group’s business volume was significantly higher than in
Q1 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 addition
to seasonality, the winter season of the previous year was also negatively affected by the impact of the COVID
19 pandemic.
1. Revenue
In the first three months of the financial year 2023, consolidated revenue increased by €1.4bn year-on-year to
€3.8bn.
External revenue allocated by destinations for the period from 1 Oct 2022 to 31 Dec 2022
Rest of Q1 2023
Spain Other Caribbean, North Africa, Revenues
€ million (incl. European Mexico, Africa Ind. Other from Other Q1 2023
Canary destinations USA & & Ocean, countries contracts Total
Islands) Canada Turkey Asia with
customers
Hotels & 89.3 10.8 53.4 13.1 44.3 - 210.9 - 210.9
Resorts
Cruises 46.7 18.3 50.2 - - - 115.2 - 115.2
TUI 30.9 36.6 33.6 7.7 19.1 13.5 141.4 - 141.4
Musement
Holiday 166.9 65.7 137.2 20.8 63.4 13.5 467.5 - 467.5
experiences
Northern 427.0 243.6 334.4 160.3 168.6 7.8 1,341.7 1.4 1,343.1
Region
Central 388.1 278.1 106.0 332.4 244.6 1.6 1,350.8 0.3 1,351.1
Region
Western 167.9 76.7 129.9 89.3 66.0 3.7 533.5 1.4 534.9
Region
Markets & 983.0 598.4 570.3 582.0 479.2 13.1 3,226.0 3.1 3,229.1
Airlines
All other 0.5 5.0 2.0 2.4 41.0 3.0 53.9 - 53.8
segments
Total 1,150.4 669.1 709.5 605.2 583.6 29.6 3,747.4 3.1 3,750.5
External revenue allocated by destinations for the period from 1 Oct 2021 to 31 Dec 2021
Rest of Q1 2022
Spain Other Caribbean, North Africa, Revenues
€ million (incl. European Mexico, Africa Ind. Other from Other Q1 2022
Canary destinations USA & & Ocean, countries contracts Total
Islands) Canada Turkey Asia with
customers
Hotels & 91.7 11.7 50.5 10.9 33.5 - 198.3 - 198.3
Resorts
Cruises 18.6 3.1 12.3 - - 0.2 34.2 - 34.2
TUI 16.4 22.4 16.9 3.3 5.4 1.9 66.3 - 66.3
Musement
Holiday 126.7 37.2 79.7 14.2 38.9 2.1 298.8 - 298.8
experiences
Northern 245.3 148.6 143.6 47.3 63.9 2.7 651.4 0.8 652.2
Region
Central 325.6 335.4 51.0 192.9 79.7 0.3 984.9 0.2 985.1
Region
Western 194.1 75.3 97.0 21.9 26.9 0.4 415.6 0.4 416.1
Region
Markets & 765.0 559.3 291.6 262.1 170.5 3.4 2,051.9 1.4 2,053.4
Airlines
All other 0.9 4.5 0.9 0.9 7.9 2.0 17.1 - 17.0
segments
Total 892.6 601.0 372.2 277.2 217.3 7.5 2,367.8 1.4 2,369.2
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 48.1% to €3.7bn in 3M 2023.
Government Grants
€ million Q1 2023 Q1 2022
Cost of Sales - 11.5
Administrative expenses 0.2 13.5
Total 0.2 25.0
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
€ million Q1 2023 Q1 2022
Staff costs 141.9 135.8
Rental and leasing expenses 3.8 3.5
Depreciation, amortisation and impairment 17.2 21.0
Others 79.8 41.4
Total 242.6 201.7
The cost of sales and administrative expenses include the following expenses for staff and
depreciation/amortisation:
Staff costs
€ million Q1 2023 Q1 2022
Wages and salaries 448.7 394.3
Social security contributions, pension costs and benefits 94.3 83.4
Total 543.0 477.7
Depreciation/amortisation/impairment
€ million Q1 2023 Q1 2022
Depreciation and amortisation of other intangible assets, property, plant and equipment and 212.6 218.6
right-of-use assets
Impairment of other intangible assets, property, plant and equipment and right-of-use 4.2 2.2
assets
Total 216.8 220.8
The impairments of €4.2m were presented within cost of sales (Q1 2022 €2.2m). In 3M 2023, no reversals of
impairment losses were recognized. In the first quarter of the prior year reversals of impairments of €4.9m
were recognized, all recorded in cost of sales.
3. Other income
In the first three months of the financial year 2023 other income mainly includes €4.7m from the disposal of
the Jet Set House (Crawley). In the prior year, this item had primarily included income from the disposal of
TUI Group companies.
4. Other expenses
In 3M 2023 other expenses mainly results from the disposal of aircraft assets. In the previous year, other
expenses also included losses from the disposal of aircraft assets.
5. Financial income and financial expenses
The improvement in the net financial result from €-127.0 m in the first three months of the previous year to
€-114.1m in the current financial year is mainly the result of less interest expenses.
6. Share of result of investments accounted for using the equity method
Share of result of investments accounted for using the equity method
€ million Q1 2023 Q1 2022
Hotels & Resorts 15.8 7.0
Cruises 7.6 - 2.6
TUI Musement 2.9 1.0
Holiday Experiences 26.3 5.4
Northern Region - 31.0 - 7.1
Central Region - 0.2 - 0.6
Western Region 0.3 -
Markets & Airlines - 30.9 - 7.7
All other segments 0.2 -
Total - 4.4 - 2.3
7. Income taxes
The tax income arising in the first three months 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 €24.0m (Q1 2022 €2.2m loss).
Notes to the unaudited condensed consolidated Statement of Financial Position
9. Goodwill
Goodwill decreased by €18.6m€ to €2,952.0m 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
€ million 31 Dec 2022 30 Sep 2022
Northern Region 1,190.7 1,204.7
Central Region 502.3 502.5
Western Region 412.3 412.3
Riu 343.1 343.1
Marella Cruises 288.3 288.8
TUI Musement 168.4 171.4
Other 46.9 47.8
Total 2,952.0 2,970.6
As at 31 December 2022, a risk assessment of the capitalised goodwill was carried out based on updated
information for the current financial year. As part of this assessment, there were no indications that led to a
requirement to perform impairment testing of the capitalised goodwill. In this context, please refer to the
section ‘Accounting and measurement methods’.
10. Property, plant and equipment
Compared to 30 September 2022 property, plant and equipment increased by €13.8m to €3,414.7m. Additions of
€187.8m included €66.1m of acquisitions in the Hotels & Resorts segment. The construction of a new hotel in
Mexico and the renovation of hotels in Cape Verde and Mauritius led to additions in the Riu Group totalling
€60.5m. In addition, advance payments of €59.1m were made for the future delivery of additional aircraft.
Furthermore, additions of €27.5m were attributable to payments on account to carry out maintenance work on
cruise ships. Further additions related to the purchase of aircraft engines at €17.0m and of aircraft spare
parts at €6.0m. The reclassification of an aircraft from right-of-use assets was the result of the exercise of
an existing purchase option and led to an increase in property, plant and equipment of €18.3m.
On the other hand, property, plant and equipment decreased by €96.6m due to foreign exchange translation.
Depreciation and amortisation of €61.5m led to a further decrease in property, plant and equipment. The planned
sale of two aircraft engines led to a reclassification of €31.3m to assets held for sale. In this context,
please refer to the section ‘Assets held for sale’.
11. Right-of-use assets
Compared to 30 September 2022 right-of-use assets decreased by €230.3m to €2,741.2m. The foreign exchange
translation led to a decrease in right-of-use assets of €137.1m. Furthermore, depreciation charged of €124.1m
led to a decrease in right-of-use assets. The reclassification of an aircraft into property, plant and
equipment led to a further reduction of right-of-use assets by €18.3m (in this context, we refer to the section
‘Property, plant and equipment’). Disposals also reduced the right-of-use assets by €6.7m.
On the other hand, modifications and reassessments of existing lease contracts increased the right-of-use
assets by €57.5m. The increase is mainly due to contract extensions related to leased aircraft (€35.9m) and
hotel leases (€13.2).
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 December 2022, two aircraft engines with a total value of €31.0m were classified as held for sale. The
sale of the aircraft engines is planned for the beginning of February 2023. During the period under review,
there were no reclassifications to assets held for sale.
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 (€2.7m). The disposal transaction was completed on 3 October 2022. The purchase
price payment of £6.5m was made on 3 October 2022.
14. Pension provisions and similar obligations
The pension provisions for unfunded plans and underfunded plans increased by €54.1m to €655.4m compared to the
end of the previous financial year.
The overfunding of funded pension plans reported in other non-financial assets decreased by €44.3m from €163.4m
as at 30 September 2022 to €119.1m as at 31 December 2022.
This development is attributable in particular to remeasurement effects due to increased discount rates in the
UK compared to 30 September 2022.
15. Financial liabilities
Non-current financial liabilities increased by €1,928.8m to €3,660.2m 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 €1,944.5m.
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
€3.555bn at 31 December 2022.
At 31 December 2022, the amounts drawn under the revolving credit facilities totalled €2,449.8m (30 September
2022 €562.0m).
Current financial liabilities decreased by €28.3m to €291.6m at 31 December 2022 compared to €319.9m 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’.
16. Lease liabilities
Compared to 30 September 2022, the lease liabilities decreased by €271.6m to €2,935.9m. Payments of €202.4m led
to a decline in lease liabilities. Furthermore, lease liabilities decreased by €165.0m due to foreign exchange
translation. On the other hand, changes and remeasurements of existing leases resulted in an increase in lease
liabilities of €51.3m. In addition, the lease liabilities increased by €42.5m due to interest charges.
17. Other financial liabilities
The other financial liabilities include touristic advance payments received for tours cancelled because of
COVID-19 restrictions of €15.5m (as at 30 September 2022 €16.7m), 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.
18. Changes in equity
Overall, equity decreased by €544.1m when compared to 30 September 2022, from €645.7m to €101.6m.
For the Silent Participation I, a coupon for financial year 2022 in the amount of €16.8m was paid to the
Economic Stabilisation Fund in December 2022 and reported in line Coupon on silent participation.
In the first three months of the financial year 2023, TUI AG paid no dividend (previous year: no dividend).
The Group loss in the first three months of the financial year 2023 is mainly caused by the seasonality of the
tourism business.
The proportion of gains and losses from hedging instruments for effective hedging of future cash flows includes
an amount of €-136.3m (pre‑tax) carried under other comprehensive income in equity outside profit and loss
(previous year €-3.9m).
The revaluation of pension obligations is also recognised under other comprehensive income directly in equity
without effect on profit and loss.
19. Financial instruments
Carrying amounts and fair values according to classes and measurement categories according to IFRS 9 as at 31
Dec 2022
Category according to IFRS 9
Fair value with Fair value Fair value
Carrying At amortised no effect on with no effect through Fair value of
€ million amount cost profit and loss on profit and profit and financial
without recycling loss with loss instruments
recycling
Assets
Trade receivables
and other
receivables
thereof instruments
within the scope of 1,045.6 1,009.6 - - 36.0 1,039.8
IFRS 9
thereof instruments
within the scope of 7.8 - - - - 8.1
IFRS 16
Derivative
financial
instruments
Hedging 29.9 - - 29.9 - 29.9
transactions
Other derivative
financial 64.1 - - - 64.1 64.1
instruments
Other financial 96.5 85.0 10.6 - 0.9 93.3
assets
Cash and cash 1,542.7 1,542.7 - - - 1,542.7
equivalents
Liabilities
Financial 3,951.8 3,951.8 - - - 3,619.0
liabilities
Trade payables 2,003.3 2,003.3 - - - 2,003.3
Derivative
financial
instruments
Hedging 76.6 - - 76.6 - 76.6
transactions
Other derivative
financial 34.4 - - - 34.4 34.4
instruments
Other financial 125.5 125.5 - - - 125.5
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
Fair value with Fair value Fair value
Carrying At amortised no effect on with no effect through Fair value of
€ million amount cost profit and loss on profit and profit and financial
without recycling loss with loss instruments
recycling
Assets
Trade receivables
and other
receivables
thereof instruments
within the scope of 1,133.8 1,027.3 - - 106.5 1,124.5
IFRS 9
thereof instruments
within the scope of 9.6 - - - - 9.9
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 generally determined. This approach is in line with the previous financial
year, taking into account yield curves and the respective credit risk premium (credit spread) based on credit
rating. 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. As at 31 December 2022, the fair value of these reclassified fuel price hedges totalled €+16.9m at
a nominal volume of €239.5m, while the fair value of the interest rate hedges amounted to €+5.5m at a nominal
volume of €300.8m and the fair value of foreign currency hedges totalled €+4.1m at a nominal volume of €46.9m.
Aggregation according to measurement categories under IFRS 9 as at 31 Dec 2022
€ million Carrying amount of financial instruments Fair Value
Total
Financial assets
at amortised cost 2,637.3 2,628.3
at fair value – recognised directly in equity without 10.6 10.6
recycling
at fair value – through profit and loss 101.0 101.0
Financial liabilities
at amortised cost 6,080.6 5,747.8
at fair value – through profit and loss 34.4 34.4
Aggregation according to measurement categories under IFRS 9 as at 30 Sep 2022
€ 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 9.6 9.6
recycling
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 are
observable in the market for the asset or liability, either directly (as quoted prices) or indirectly
(derivable from 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 Dec 2022
Fair value hierarchy
€ million Total Level 1 Level 2 Level 3
Assets
Other receivables 36.0 - - 36.0
Other financial assets 11.5 - - 11.5
Derivative financial instruments
Hedging transactions 29.9 - 29.9 -
Other derivative financial instruments 64.1 - 64.1 -
Liabilities
Derivative financial instruments
Hedging transactions 76.6 - 76.6 -
Other derivative financial instruments 34.4 - 34.4 -
Hierarchy of financial instruments measured at fair value as of 30 Sep 2022
Fair value hierarchy
€ 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 notes
and other non-current financial liabilities as well as for current other receivables, current financial
liabilities and non-current trade and other receivables, the fair value is determined as the present value
of future cash flows, taking account of observable yield curves and the respective credit spread, which
depends on the credit rating.
• 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
the spot or cash prices, taking account of forward premiums and discounts. The fair values of optional
hedges are calculated based on option pricing models. The fair values determined on the basis of the
Group’s own systems are periodically 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 of
other 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
€ 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 -
payment - 70.7 -
Total gains or losses for the period 0.2 1.1
recognised through profit and loss 0.2 -
recognised in other comprehensive income - 1.1
Foreign currency effects - - 0.1
Balance as at 31 Dec 2022 36.0 11.5
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 8.3 % and 24.0 % (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 in a range between 9.62%-10.17
% (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 increase of the fair values of the Other financial assets in Level 3 mainly results from a valuation effect
in the amount of €1.1m and foreign exchange rate effects in the amount of €-0.1m.
The Other receivables according to IFRS 9 in Level 3 at a carrying amount of €36.0 as at 31 December 2022 (as
at 30 September 2022 €106.5m) 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
(3.49 %, 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 €39.7m. Due to
different expectations regarding target achievement, potential purchase price payments vary between €0 and
€39.7m.
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 €2.0m (as at 30 September 2022
€2.0m), while a reduction in gross operating profit of 10 % would result in a change in the present value of
€-24.4m (as at 30 September 2022 €-24.4m). An interest rate shift of +/-100 basis points would alter the
present value of the purchase price receivable by €0.4m (as at 30 September 2022 €0.5m).
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.
20. Contingent liabilities
As at 31 December 2022, contingent liabilities amounted to €89.6m (as at 30 September 2022 €93.5m). 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.
21. Other financial commitments
Nominal values of other financial commitments
€ million 31 Dec 2022 30 Sep 2022
Order commitments in respect of capital expenditure 2,218.7 2,291.4
Other financial commitments 98.3 129.2
Total 2,317.0 2,420.6
As at 31 December 2022 order commitments in respect of capital expenditure decreased by €72.7m as against
30 September 2022.
The decrease in order commitments is largely attributed to a decline in aircraft obligations. Scheduled
payments 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. The commitments for
maintenance and repairs which are reported within other financial commitments decreased particularly in the
segment Hotels & Resorts due to a reduction of refurbishment projects undertaken.
22. 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 €194.2m to €1,542.7m.
In 3M 2023, the cash outflow from operating activities totalled €1,670.9m (Q1 2022 cash outflow of €964.6m),
including an inflow of €6.4m (Q1 2022 €1.3m) from interest payments and €2.2m (Q1 2022 €0.1m) from dividends
received from companies measured at equity. Income tax payments resulted in a cash outflow of €28.9m (Q1 2022
€6.1m).
The total cash outflow from investing activities totalled €147.6m (Q1 2022 cash outflow of €53.2m). This amount
included a cash outflow for capital expenditure on property, plant and equipment and intangibles of €228.6m.
The Group recorded a cash inflow of €9.9m from the divestment of property, plant and equipment and intangible
assets. TUI recorded a cash inflow of €70.7m from the earn-out payment in connection with sale of the stakes in
Riu Hotels S.A., effected in financial year 2021. A cash inflow of €2.1m resulted from the sale of money market
funds.
The cash inflow from financing activities totalled €1,634.7m (Q1 2022 cash inflow of €1,077.2m).
In the financial year under review, TUI AG increased its syndicated credit facility by €1,884.6m. Other TUI
Group companies took out loans worth €99.8m. A cash outflow of €210.5m resulted from the redemption of
financial liabilities, including an amount of €162.8m for lease liabilities. Interest payments resulted in a
cash outflow of €122.3m. TUI AG paid an amount of €16.8m as coupon on Silent Participation I of the German
Economic Stabilisation Fund, carried as a dividend.
In addition, cash and cash equivalents decreased by €10.6m (Q1 2022 increase by €3.8m) due to changes in
exchange rates.
As at 31 December 2022, cash and cash equivalents worth €637.1m were subject to restrictions (as at 30
September 2022 €526.1m).
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 €66.6m was
deposited as security within a bank account (as at 30 September 2022 €66.1m). TUI Group can only use this
amount of cash and cash equivalents if it provides alternative collateral.
Furthermore, an amount of €116.1m (as at 30 September 2022 €116.1m) 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 €454.5m (as at 30 September 2022 €343.9m) 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.
23. Reporting segments
Revenue by segment for the period from 1 Oct 2022 to 31 Dec 2022
€ million External Group Q1 2023 Total
Hotels & Resorts 210.9 173.8 384.7
Cruises 115.2 - 115.2
TUI Musement 141.4 64.6 206.0
Consolidation - - 0.1 - 0.1
Holiday Experiences 467.5 238.3 705.8
Northern Region 1,343.1 86.6 1,429.7
Central Region 1,351.1 21.2 1,372.3
Western Region 534.9 37.6 572.5
Consolidation - - 138.8 - 138.8
Markets & Airlines 3,229.1 6.6 3,235.7
All other segments 53.8 1.5 55.3
Consolidation - - 246.3 - 246.3
Total 3,750.5 - 3,750.5
Revenue by segment for the period from 1 Oct 2021 to 31 Dec 2021
€ million External Group Q1 2022 Total
Hotels & Resorts 198.3 84.5 282.8
Cruises 34.2 - 34.2
TUI Musement 66.3 33.9 100.2
Consolidation - - 1.2 - 1.2
Holiday Experiences 298.8 117.2 416.0
Northern Region 652.2 76.3 728.5
Central Region 985.1 18.8 1,003.9
Western Region 416.1 35.1 451.2
Consolidation - - 128.4 - 128.4
Markets & Airlines 2,053.4 1.8 2,055.2
All other segments 17.0 0.8 17.8
Consolidation - - 119.8 - 119.8
Total 2,369.2 - 2,369.2
The segment data shown are based on regular internal reporting to the Executive Board. Since the 2020 fiscal
year, the internationally more commonly used earnings measure "underlying EBIT" is used for value-based
management.
Accordingly, this represents the segment performance indicator within the meaning of IFRS 8.
We define the EBIT in underlying EBIT as earnings before interest, income taxes and expenses from the
measurement of the Group's interest rate hedging instruments. Impairment losses on goodwill are by definition
included in EBIT.
Underlying EBIT has been adjusted to exclude certain items which, due to their size and frequency of
occurrence, make it difficult or distort the assessment of the operating performance of the business areas and
the Group. These items include gains and losses on the disposal of financial assets, significant gains and
losses on the disposal of assets and significant restructuring and integration expenses. In addition, all
effects from purchase price allocations, incidental acquisition costs and contingent purchase price payments
are adjusted. Impairment losses on goodwill have also been eliminated in the reconciliation to underlying EBIT.
In 3M 2023, underlying EBIT includes results of investments accounted for using the equity method of €-4.4m
(Q1 2022 €-2.3m). 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
€ million Q1 2023 Q1 2022
Hotels & Resorts 71.9 61.1
Cruises 0.2 - 31.7
TUI Musement - 13.0 - 12.7
Holiday Experiences 59.2 16.7
Northern Region - 122.0 - 171.7
Central Region - 28.3 - 55.0
Western Region - 43.7 - 32.4
Markets & Airlines - 193.9 - 259.0
All other segments - 18.3 - 31.3
Total - 153.0 - 273.6
Impairment on other intangible assets, property, plant and equipment and right of use assets
€ million Q1 2023 Q1 2022
Hotels & Resorts 3.3 -
Holiday Experiences 3.3 -
Northern Region 0.9 0.5
Central Region - 1.2
Western Region - 0.3
Markets & Airlines 0.9 2.0
All other segments - 0.2
Total 4.2 2.2
Reconciliation to underlying EBIT of TUI Group
€ million Q1 2023 Q1 2022
Earnings before income taxes - 272.6 - 404.5
plus: Net interest expenses (excluding expense / income from measurement of interest 110.5 131.6
hedges)
plus: (Income) expense from measurement of interest hedges 3.4 1.5
EBIT - 158.7 - 271.4
Adjustments:
less: Separately disclosed items - 0.7 - 9.3
plus: Expense from purchase price allocation 6.4 7.1
Underlying EBIT - 153.0 - 273.6
Net income for separately disclosed items of €0.7m included €2m income from the release of restructuring
provisions no longer needed in Western Region and €1m 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 €2m restructuring expenses in All Other Segments.
Net income for the separately disclosed items of €9.3m in Q1 2022 include income of €21m 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. In addition, restructuring expenses in the Central Region (€9m) and All Other Segments (€3m)
segments were adjusted.
Expenses for purchase price allocations of €6.4m (previous year €7.1m) relate in particular to the scheduled
amortisation of intangible assets from acquisitions made in previous years.
24. 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.
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, 13 February 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 December 2022 of TUI AG, Berlin and Hanover, which are part of the financial report
under § 115 WpHG section 7 (Wertpapierhandelsgesetz: German Securities Trading Act). The preparation of the
condensed interim consolidated financial statements in accordance with the International Financial Reporting
Standards (IFRS) applicable to interim financial reporting as adopted by the EU, and of the interim group
management in accordance with the requirements of the WpHG applicable to interim Group management reports is
the responsibility of the entity’s executive board. Our responsibility is to issue a review report on the
condensed interim consolidated financial statements and on the interim Group management report based on our
review.
We conducted our review of the condensed interim consolidated financial statements and of the interim Group
management report in compliance with the German Generally Accepted Standards for the Review of Financial
Statements promulgated by the Institut der Wirtschaftsprüfer (IDW) and in supplementary compliance with the
International Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the
Independent Auditor of the Entity”. Those standards require that we plan and perform the review to obtain a
limited level of assurance to preclude through critical evaluation that the condensed interim consolidated
financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to
interim financial reporting as adopted by the EU or that the interim Group management report has not been
prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim Group
management reports. A review is limited primarily to inquiries of personnel of the entity and to analytical
procedures applied to financial data and thus provides less assurance than an audit. Since, in accordance with
our engagement, we have not performed an audit, we do not express audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the condensed interim
consolidated financial statements of TUI AG, Berlin and Hanover, have not been prepared, in material respects,
in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim
Group management report has not been prepared, in material respects, in accordance with the requirements of the
WpHG applicable to interim group management reports.
Hanover/Germany, 13 February 2023
Deloitte GmbH
Wirtschaftsprüfungsgesellschaft
Annika Deutsch Elmar Meier
German Public Auditor German Public Auditor
Cautionary statement regarding forward-looking statements
The present Interim Financial Report contains various statements relating to TUI Group’s and TUI AG’s future
development. These statements are based on assumptions and estimates. Although we are convinced that these
forward-looking statements are realistic, they are not guarantees of future performance since our assumptions
involve risks and uncertainties that could cause actual results to differ materially from those anticipated.
Such factors include market fluctuations, the development of world market prices for commodities and exchange
rates or fundamental changes in the economic environment. TUI does not intend to and does not undertake any
obligation to update any forward-looking statements in order to reflect events or developments after the date
of this Report.
Financial calendar
Date
Annual General Meeting of TUI AG 2023 14 February 2023
Half-Year Financial Report H1 2023 10 Mai 2023
Interim Financial Report Q3 2023 14 August 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 Interim Financial Report, the presentation slides and the video webcast for Q1 2023 (published on
14 February 2023) are available at the following link: 25 www.tuigroup.com/en-en/investors
═══════════════════════════════════════════════════════════════════════════════════════════════════════════════
ISIN: DE000TUAG000
Category Code: QRF
TIDM: TUI
LEI Code: 529900SL2WSPV293B552
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 222814
EQS News ID: 1558525
End of Announcement EQS News Service
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26 fncls.ssp?fn=show_t_gif&application_id=1558525&application_name=news&site_id=refinitiv
References
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2. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_6Lbghlsz.html#_Toc127179764
3. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_6Lbghlsz.html#_Toc127179765
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============Recent news on TUI AG
See all newsREG - NATS En Route PLC - Annual Financial Report
AnnouncementREG - Stock Exch Notice - Admission to Trading - 24/04/2023
AnnouncementREG - Official List - Official List Notice
AnnouncementREG - FTSE Russell - TUI AG
AnnouncementREG-TUI AG TUI AG: Release according to Article 41 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution
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