REG-TUI AG TUI Group Half-Year Financial Report 1 October 2022 – 31 March 2023
10/05/2023 07:15
============
TUI AG (TUI)
TUI Group Half-Year Financial Report 1 October 2022 – 31 March 2023
10-May-2023 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
════════════════════════════════════════════════════════════════════════════════════════════════════════════════
Half-Year
Financial Report
1 October 2022 – 31 March 2023
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
March 2023.
Interim Management Report
Summary
Q2 2023 underlying EBIT of €-242.4m delivering a strong improvement year-on-year (Q2 2022: €-329.9m) with the
strong booking momentum continuing into the Summer seasons. Successful completion of €1.8bn capital increase in
April
• Successful completion of capital increase with gross proceeds of €1.8bn following Q2 close1. This enables
full repayment of WSF state aid and reduction in the size of KfW RCF to €1.1bn and is a significant measure
to restore our balance sheet strength and has led to a first improvement of our credit rating, with S&P
upgrading to B with a positive outlook.
• 2.4m customers enjoyed a holiday with us in the quarter, an increase of 0.6m customers versus the prior year
and 88% of Q2 2019 customer levels on a like for like basis2. As a result, average load factor for the
quarter was 93% (Q2 2022: Load factor 85%).
• Group revenue of €3.2bn, improved significantly across our segments by a total of €1.0bn against the prior
year (Q2 2022: €2.1bn), reflecting the strength of demand for our products in a restriction free travel
environment with Group revenue above pre-pandemic levels at improved prices (Q2 2019: €3.1bn).
• Q2 Group underlying EBIT at €-242.4m, up by €87.5m and €181m on a comparable basis3 (Q2 2022: €-329.9m
loss), with the Group results almost back to 2019 levels.
◦ Hotels & Resorts continued its strong performance reporting a fourth consecutive quarter above 2019
levels and significantly up year-on-year, driven by good operational performances across our key
brands.
◦ The recovery in Cruises continues with the segment achieving a fourth positive quarter since the start
of the pandemic. As a result, the business recorded a strong improvement against last year boosted by
higher volumes as well as improved occupancies with a full fleet able to operate again within a
restriction free environment.
◦ Markets & Airlines operational growth continued in the quarter generated by higher ASPs and volumes.
Results were well ahead of last year on a comparable basis excluding the positive benefits in the prior
year of state aid in Germany and the impact of ineffective hedge positions.
• Net debt of €-4.2bn as of 31 March 2023 excludes the impact of the capital increase in April 2023 (31 March
2022: €-3.9bn). If retrospectively, net debt is adjusted at 31 March 2023 to include these proceeds4, net
debt reduces to €-3.1bn.
• A total of 12.9m bookings5 have been taken across the Winter and Summer seasons with ~4.2m bookings added
since our Q1 2023 Interim Report. Winter 2022/23 closed out in line with expectations with ASPs well ahead.
• Easter bookings confirmed the strong customer demand across all our markets. To date bookings for Summer
2023 are significantly up at +13% on prior year accompanied by higher ASPs. Summer 2023 volumes in the last
six weeks remains strong and are ahead of 2019 levels at +6% accompanied by higher ASPs emphasising the
strength of customer demand and underlining the popularity of our product offering. In the UK, which is
currently 64% sold, bookings are in line with the prior season and +10% versus pre-pandemic levels again
accompanied by higher ASPs.
• Given the latest positive booking trends, we are confident in our Summer 2023 capacity assumption of being
close to normalised 2019 Summer levels.
1 For details please refer to page 29
2 Excluding businesses sold and discontinued since 2019
3 Reverse out of Q2 2022 benefit €50m COVID cost compensation from the German state, and €43m hedging
ineffectiveness
4 Net debt less €1bn redemption of drawn credit lines and €0.1bn bond with warrant
5 Bookings up to 30 April 2023 relate to all customers whether risk or non-risk and includes amendments and
voucher re-bookings
• During the quarter we have continued to translate our Sustainability Agenda into actions across our
businesses to shape a more sustainable future for tourism. In airlines, we have a new agreement in place
with Shell on sustainable aviation fuel to promote production and supply of sustainable aviation fuel (SAF).
TUI Cruises introduced a new sustainability strategy with the ambition to offer their first climate-neutral
cruises in 2030. In Hotels & Resorts, we launched the Green Building Guidelines to drive emission reductions
for construction and refurbishment projects.
• Based on the strong booking momentum which is continuing into the Summer season, we reconfirm our
expectations to increase underlying EBIT significantly for financial year 20231.
1 Based on constant currency. In view of the effects from the war in Ukraine, the assumption for underlying EBIT
is subject to considerable
uncertainty. Amongst others, the greatest area of uncertainty will be the impact on consumer confidence,
should there be further cost inflation
volatility and/or an escalation of the war in Ukraine
Sustainability as opportunity
• For TUI Group, sustainability covering all three areas of economic, environmental and 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 have near-term targets set for airline, cruises and hotels, to reduce emissions in line with the latest
climate science. These 2030 targets were validated by the Science Based Targets initiative (SBTi) and
published in our Q1 Interim Report in February 2023. Emission reduction roadmaps have been developed for
each business area and progress made during the quarter, including:
◦ In Airlines, a new collaboration agreement has been signed with Shell to promote the production and supply
of sustainable aviation fuel (SAF), a key tool to further reduce the carbon footprint of air transport,
these fuels will be produced from circular raw materials that do not compete with food resources.
◦ TUI Cruises has launched it’s new sustainability strategy in its 15th anniversary year as a company. The
strategy is aligned with the Sustainability Agenda and covers brands Mein Schiff and Hapag-Lloyd Cruises.
Strategic fields include climate protection, destination responsibility and sustainable business
transformation. The ambition is to offer the first climate-neutral cruises by 2030.
◦ TUI Hotels & Resorts has published new Green Building Guidelines for its hotels and TUI’s hotel partners.
The guidelines include valuable environmental advice and measures for construction and refurbishment
projects – an important toolkit for reducing emissions across hotels. We aim to achieve zero emissions in
our TUI Blue Montafon hotel in Austria by the end of 2023 with further hotels to follow in Austria and Spain
in 2024.
◦ Within our destinations we have launched a new eco-mobility project to create low emission transport
options. This includes e-bike options in Rhodes for our destination reps.
TUI Group - financial highlights
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. % Var. % at constant
adjusted adjusted currency
Revenue 3,152.9 2,128.4 + 48.1 6,903.4 4,497.6 + 53.5 + 55.2
Underlying EBIT1
Hotels & Resorts 78.0 23.7 + 229.5 149.7 84.8 + 76.5 + 80.3
Cruises 14.8 - 73.5 n. a. 15.0 - 105.3 n. a. n. a.
TUI Musement - 12.7 - 18.2 + 30.2 - 26.2 - 31.5 + 16.8 + 24.9
Holiday Experiences 80.1 - 68.1 n. a. 138.4 - 51.9 n. a. n. a.
Northern Region - 147.5 - 180.9 + 18.5 - 269.5 - 352.6 + 23.6 + 17.5
Central Region - 102.1 - 24.2 - 321.4 - 131.1 - 82.8 - 58.5 - 60.6
Western Region - 59.2 - 57.0 - 3.9 - 102.9 - 89.4 - 15.1 - 17.9
Markets & Airlines - 308.5 - 262.2 - 17.7 - 503.2 - 524.7 + 4.1 - 0.8
All other segments - 13.9 0.4 n. a. - 30.6 - 26.8 - 14.1 - 14.3
TUI Group - 242.4 - 329.9 + 26.5 - 395.3 - 603.5 + 34.5 + 31.1
EBIT1 - 247.6 - 343.1 + 27.8 - 406.3 - 614.5 + 33.9
Underlying EBITDA - 42.9 - 123.1 + 65.1 15.3 -188.4 n. a.
EBITDA2 - 42.7 - 130.0 + 67.1 15.3 - 185.5 n. a.
Group loss - 326.2 - 321.4 - 1.5 - 558.0 - 707.9 + 21.2
Earnings per share3 € - 1.26 - 1.23 - 2.4 - 2.15 - 2.74 + 21.5
Net capex and 68.9 83.3 - 17.3 217.8 136.7 + 59.4
investment
Equity ratio (31 Mar)4 % - 6.1 1.5 - 7.6
Net debt (31 Mar) - 4,196.4 - 3,936.0 - 6.6
Employee (31 Mar) 53,961 46,123 + 17.0
Differences may occur due to rounding.
1 We define the EBIT in underlying EBIT as earnings before interest, income taxes and result of the measurement
of the Group’s interest hedges. For further details please see page 17.
2 EBITDA is defined as earnings before interest, income taxes, goodwill impairment and amortisation and
write-ups of other intangible assets, depreciation and write-ups of property, plant and equipment, investments
and current assets.
3 Earnings per share for all periods presented were adjusted for the impact of the 10-for-1 reverse stock split
in February 2023 as well as the impact of the subscription rights issued in the capital increase in March 2023.
4 Equity divided by balance sheet total in %, variance is given in percentage points.
All change figures refer to the same period of the previous year, unless otherwise stated.
The present Half-Year Financial Report 2023 is based on TUI Group’s reporting structure set out in the
Consolidated Financial Statements of TUI AG as at 30 September 2022. See TUI Group Annual Report 2022 from page
27. Due to the re-segmentation of Future Markets from All other segments to Hotels & Resorts, TUI Musement and
Central Region in the current financial year, previous year’s figures have been adjusted.
• H1 2023 Group revenue of €6.9bn was up €2.4bn versus previous year (H1 2022: €4.5bn). The Group's H1 2023
operating loss (underlying EBIT) of €-395.3m improved by €208.2m compared to previous year (H1 2022:
€-603.5m).
Trading update – Strong booking momentum continues for Summer 2023 with capacity expected to be close to
normalised levels
Markets & Airlines
• 12.9m bookings1 have been taken across Winter 2022/23 and Summer 2023 with ~4.2m bookings added since our Q1
2023 Interim Report, as the strong booking momentum continues.
• Summer 2023 volumes in the last six weeks remain strong and are up 6% on 2019 levels accompanied by higher
ASPs emphasising the strength of customer demand and underlining the popularity of our product offering.
Winter 2022/23
• 4.7m bookings were taken for the season with 0.6m added since our Q1 2023 update.
• The Winter 2022/23 programme closed with bookings significantly up at 133% of prior season levels and 88% of
Winter 2018/19.
• ASP held up strongly, +10% higher than the prior Winter season and ahead of the +8% year-on-year improvement
we published at Q1 2023. Compared to Winter 2018/19, ASP was up +29%.
• In general bookings in the European market are not back to Winter 2018/2019 levels but we continue to
outperform with UK Winter bookings returning to pre-pandemic levels at significantly higher ASPs.
• Egypt and Cape Verde have grown in popularity with bookings up +22% and +3% vs. Winter 2018/19 respectively.
Trading Markets & Airlines Summer season1
Variation in % versus 2022 2022 2019
Summer 2023 last 6 weeks Summer 2023
Bookings2 + 13 - 1 - 4
ASP + 5 // + 83 + 8 + 26
Summer 2023
• Easter bookings confirmed the strong customer demand across all our markets and indications for the Summer
season remain positive. 8.3m bookings have been taken to date, 3.6m more than at our Q1 2023 update. 55% of
the programme sold which is +2%pts ahead of Summer 2022 and broadly in line with Summer 2019.
• Bookings for Summer 2023 are significantly up +13% year-on-year and at 96% (+ 7%pts since Q1 2023) of
pre-pandemic levels.
• Against Summer 2022, ASP is up +5% and thus notably higher than the +2% comparison we published at Q1 2023.
On a like-for-like basis, ASP is up +8% against the prior season, excluding Summer 2022 re-bookings
rolled-forward from previous seasons. This increase highlights customers’ continued willingness to
prioritise spend on travel and experiences. Compared to Summer 2019, ASP remains significantly up at +26%.
• In the last six weeks, booking momentum has remained strong, +6% ahead of the Summer 2019 comparison
reconfirming the positive and encouraging trends for this Summer.
• Spain, Greece and Turkey continue to be popular Summer destinations for our customers.
• The UK market continues to be the most advanced sold at 64%. Bookings are in line with the prior season and
+10% versus pre-pandemic levels again accompanied by higher ASPs.
• Given the latest positive booking trends, we are confident in our Summer 2023 capacity assumption of being
close to normalised 2019 Summer levels.
1 Depending on the source market, Summer season starts in April or May and ends in September, October or
November.
2 Bookings up to 30 April 2023 relate to all customers whether risk or non-risk and include amendments and
voucher re-bookings
3 Excludes UK Summer 2022 re-bookings rolled over from previous season, some of which included a rebooking
incentive
Holiday Experiences
Trading Holiday Experiences
H2 20231
Variation in % versus H2 2022
Hotels & Resorts2
Available bed nights3 + 5
Occupancy %4 + 3 % points
Cruises
Available passenger cruise days5 - 1
Occupancy %6 + 22 % points
TUI Musement
Experiences sold + mid-double digit %
• Hotels & Resorts – Number of available bed nights for H22 is ahead of prior year at +5% and slightly ahead
of our Q1 Update. Booked occupancy is up year-on-year at +3%pts for H2. Average daily rates are +8% ahead
year-on-year for H2 driven mainly by Riu. Key destinations in H2 are Turkey, the Caribbean, the Balearics,
Greece, the Canaries and Cape Verde.
• Cruises – Our three brands continue to operate a full fleet of in total sixteen ships. H2 available
passenger cruise days are however slightly behind at -1%1 due to the current refurbishment of Mein Schiff
Herz after its transfer from TUI Cruises to Marella and before it returns to service at the beginning of
June for the summer season. Booked occupancy rates are up +22%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 Activities business continues its expansion investing into growth while
returning to 2019 profitability. The segment benefits 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 capacity assumptions in 2023. Sales to date for our
Experiences business, providing excursions, activities and tickets, are up mid-double digit percent for H21.
The significant growth in Experiences is driven by the enlarged product offering especially online and our
diversified distribution via TUI, B2C and B2B.
1 H2 corresponds to the summer half-year und covers April to September. 2023 trading data as of 30 April 2023
2 2023 trading data as of 30 April 2023 excluding Blue Diamond
3 Number of hotel days open multiplied by beds available in the hotel (Group owned and leased hotels)
4 Occupied beds divided by available beds (Group owned and lease hotels)
5 Number of operating days multiplied by berths available on the operated ships
6 Achieved passenger cruise days divided by available passenger cruise days
Net debt
Net debt of €-4.2bn as of 31 March 2023 excludes the impact of the capital increase in April 2023 (31 March
2022: €-3.9bn). If retrospectively, net-debt is adjusted at 31 March 2023 to include the proceeds7, net debt
reduces to €3.1bn.
7 Net debt less €1bn redemption of drawn credit lines and €0.1bn bond with warrant
Strategic priorities
The TUI Group's strategy outlined in the Annual Report 20221 and at our FY2022 results presentation, will be
continued in the current financial year.
TUI’s strategy aims to deliver growth in both Holiday Experiences and Markets & Airlines, embedded in one
central customer ecosystem, underpinned by our sustainability agenda and our people. Our Holiday Experiences
business strategy focuses on asset-right growth in differentiated content and expanding the customer base with
multi-channel distribution. Having accelerated our strategic transformation of Markets & Airlines during the
pandemic, and fully implemented our Global Realignment Programme, our business strategy is now focused on
profitable growth. This will be achieved by offering more product choice, growing our customer ecosystem into
untapped segments, and increasing customer value. This includes increasing the volume and proportion of
dynamically sourced packages, as well as significantly increasing our component offer in accommodation only and
flight only.
We also aim to further improve our cash position focusing on optimising working capital and cash from operations
and maintaining disciplined capital expenditure through by asset right growth. In April 2023, we successfully
completed a €1.8bn rights issue, facilitating the full repayment of the remaining state aid instruments granted
by the German Economic Stabilization Fund (WSF) and enabling a significant reduction in the size of our KfW
credits lines as well as a repayment of current drawings under our credit lines in the same magnitude. This is a
significant measure to restore our balance sheet strength as well as reducing net interest and has led to a
first improvement in our credit rating, with S&P upgrading to B with a positive outlook.
FY23 Assumptions2 – Based on the strong booking momentum, which is continuing into the Summer season, we confirm
our expectations for financial year 2023 that underlying EBIT will increase significantly.
Mid-term ambitions - We have a clear strategy to accelerate profitable market growth with new customer segments
and more product sales. Our mid-term 2025/26 ambitions are for underlying EBIT to significantly build on
€1.2bn3. We have a target to return to a gross leverage ratio4 of well below 3.0x and aim to return to a credit
rating in line with the pre-pandemic rating of BB / Ba territory.
1 Details on our strategy see TUI Group Annual Report 2022 from page 23
2 Based on constant currency. In view of the effects from the war in Ukraine, the assumption for underlying EBIT
is subject to considerable
uncertainty. Amongst others, the greatest area of uncertainty will be the impact on consumer confidence,
should there be further cost inflation
volatility and/or an escalation of the war in Ukraine
3 FY19 underlying EBIT of €893m including €293m Boeing Max cost impact
4 Defined as as gross debt (Financial liabilities incl. lease liabilities and net pension obligation) divided by
reported EBITDA
Report on changes in expected development
We re-confirm our expectation set out in the Annual Report 2022 for a significant increase in TUI Group's
underlying EBIT in financial year 20235 compared with 2022.
We have updated the following expectations for financial year 2023 described in the Annual Report 2022 as
follows:
For financial year 2023, we now expect a net negative effect from adjustments in a range of €40m to €60m
(previously €60m to €80m).
Against the backdrop of the net cash inflows from the capital increase completed in April 2023 and the
repayments to the German Economic Stabilisation Fund (WSF), we now expect the Group's net debt to be around
€2.4bn at the end of financial year 2023 (previously broadly stable).
We continue to consider the remaining assumptions for financial year 2023 made in the Annual Report 2022 to be
valid. See also TUI Group Annual Report 2022 from page 52 onwards.
5 Based on constant currency
Consolidated earnings
Revenue
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Hotels & Resorts 218.3 181.0 + 20.6 429.2 379.3 + 13.2
Cruises 141.9 41.3 + 243.2 257.1 75.5 + 240.5
TUI Musement 130.3 68.1 + 91.3 290.0 145.6 + 99.2
Holiday Experiences 490.5 290.4 + 68.9 976.4 600.4 + 62.6
Northern Region 1,191.5 847.9 + 40.5 2,534.6 1,500.2 + 69.0
Central Region 990.8 622.0 + 59.3 2,375.9 1,610.8 + 47.5
Western Region 477.7 366.2 + 30.5 1,012.6 782.2 + 29.4
Markets & Airlines 2,660.1 1,836.1 + 44.9 5,923.2 3,893.2 + 52.1
All other segments 2.3 1.9 + 22.7 3.9 4.0 - 2.9
TUI Group 3,152.9 2,128.4 + 48.1 6,903.4 4,497.6 + 53.5
TUI Group (at constant currency) 3,210.2 2,128.4 + 50.8 6,982.3 4,497.6 + 55.2
Underlying EBIT
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Hotels & Resorts 78.0 23.7 + 229.5 149.7 84.8 + 76.5
Cruises 14.8 - 73.5 n. a. 15.0 - 105.3 n. a.
TUI Musement - 12.7 - 18.2 + 30.2 - 26.2 - 31.5 + 16.8
Holiday Experiences 80.1 - 68.1 n. a. 138.4 - 51.9 n. a.
Northern Region - 147.5 - 180.9 + 18.5 - 269.5 - 352.6 + 23.6
Central Region - 102.1 - 24.2 - 321.4 - 131.1 - 82.8 - 58.5
Western Region - 59.2 - 57.0 - 3.9 - 102.9 - 89.4 - 15.1
Markets & Airlines - 308.5 - 262.2 - 17.7 - 503.2 - 524.7 + 4.1
All other segments - 13.9 0.4 n. a. - 30.6 - 26.8 - 14.1
TUI Group - 242.4 - 329.9 + 26.5 - 395.3 - 603.5 + 34.5
EBIT
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Hotels & Resorts 78.2 24.3 + 221.4 149.2 106.8 + 39.8
Cruises 14.8 - 73.5 n. a. 15.0 - 105.3 n. a.
TUI Musement - 14.5 - 20.1 + 27.8 - 28.5 - 35.3 + 19.4
Holiday Experiences 78.5 - 69.3 n. a. 135.7 - 33.8 n. a.
Northern Region - 148.6 - 185.2 + 19.7 - 274.4 - 360.7 + 23.9
Central Region - 102.5 - 32.5 - 216.0 - 131.5 - 100.1 - 31.4
Western Region - 60.1 - 57.5 - 4.5 - 102.8 - 90.7 - 13.3
Markets & Airlines - 311.0 - 275.2 - 13.0 - 508.2 - 551.5 + 7.9
All other segments - 15.1 1.4 n. a. - 33.8 - 29.1 - 15.9
TUI Group - 247.6 - 343.1 + 27.8 - 406.3 - 614.5 + 33.9
Segmental performance
Holiday Experiences
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Revenue 490.5 290.4 + 68.9 976.4 600.4 + 62.6
Underlying EBIT 80.1 - 68.1 n. a. 138.4 - 51.9 n. a.
Underlying EBIT at constant currency 83.0 - 68.1 n. a. 143.8 - 51.9 n. a.
Hotels & Resorts
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Total revenue1 358.2 241.8 + 48.2 742.9 524.6 + 41.6
Revenue 218.3 181.0 + 20.6 429.2 379.3 + 13.2
Underlying EBIT 78.0 23.7 + 229.5 149.7 84.8 + 76.5
Underlying EBIT at constant currency 79.3 23.7 + 234.9 152.9 84.8 + 80.3
Available bed nights2 ('000) 7,018 6,935 + 1.2 15,565 15,530 + 0.2
Riu 3,188 3,059 + 4.2 6,412 6,490 - 1.2
Robinson 647 592 + 9.3 1,471 1,321 + 11.4
Blue Diamond 1,601 1,343 + 19.2 2,963 2,667 + 11.1
Occupancy3 (%, variance in % points) 83 65 + 18 79 64 + 15
Riu 93 73 + 20 89 71 + 18
Robinson 67 51 + 16 68 58 + 10
Blue Diamond 87 78 + 9 86 76 + 10
Average daily rate4 (€) 100 86 + 16.3 92 78 + 18.5
Riu 83 71 + 16.1 80 68 + 17.2
Robinson 112 115 - 2.3 106 106 - 0.6
Blue Diamond 165 143 + 15.3 159 132 + 20.8
Revenue includes fully consolidated companies, all other KPIs incl. companies measured at equity
1 Total revenue includes intra-Group revenue
2 Number of hotel days open multiplied by beds available (Group owned and leased hotels)
3 Occupied beds divided by available beds (Group owned and leased hotels)
4 Board and lodging revenue divided by occupied bed nights (Group owned and leased hotels)
H1 2023 total revenue in our Hotels & Resorts segment increased to €742.9m, up €218.4m year-on-year (H1 2022:
€524.6m). H1 underlying EBIT for the segment of €149.7m improved by €64.9m year-on-year (H1 2022: €84.8m).
Q2 2023 total revenue for the segment grew to €358.2m, an increase of €116.5m year-on-year (Q2 2022: €241.8m)
supported by the restriction free travel environment across our wide portfolio of destinations. As a result Q2
underlying EBIT of €78.0m, increased by €54.4m year-on-year (Q2 2022: €23.7m) achieving a fourth consecutive
quarter above 2019 levels underlining the strong recovery of this segment post pandemic. Results were driven by
good operational performances across the hotels businesses, with higher occupancies and rates in a stronger
trading environment. Riu in particular, contributed to the improvement, with the Caribbean, Canaries and Cape
Verde key destinations.
In the Q2 period, we operated 7.0m available bednights (capacity), slightly up by 1% on Q2 2022. The overall
occupancy rate for the segment increased across all businesses by a total of 18%pts year-on-year to 83%, driven
in particular by the Caribbean and Spanish destinations. Our hotels across the Caribbean delivered average
occupancy rates of 92%, with Mexico being our most popular destination achieving 93% average occupancy in the
second quarter. Our hotels in the Canaries also saw high demand during this winter period, achieving average
occupancy of 86%. Other key destinations in the quarter were Egypt and Cape Verde.
Q2 2023 average daily rate in the segment rose by 16% year-on-year to €100 with rates in particular in the
Caribbean higher. Riu’s average daily rate increased by 16% to €83 (Q2 2022: €71) and Blue Diamond’s average
daily rate increased by 15% to €165 (Q2 2022: €143). Robinson achieved an average daily rate of €112, broadly in
line with prior year (Q2 2022: €115).
Future content growth in our Hotels & Resorts segment, will be delivered both through our well-known hotel
brands in existing and new destinations, as well as introducing new brands to complement our portfolio. This
growth will be achieved in accordance with an asset-right strategy. During the quarter we already announced
further growth plans within TUI Blue, one of our TUI signature hotel brands focused on experienced orientated
lifestyle travellers. The expansion, starting in Summer 2023, will see 14 new openings across four continents
during the next two years with new destinations such as China, Senegal, Cambodia and Curaçao. The expansion is
driven by international partnerships in which TUI Blue hotels are operated either under management contracts or
by franchisees.
Cruises
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
Revenue1 141.9 41.3 + 243.2 257.1 75.5 + 240.5
Underlying EBIT 14.8 - 73.5 n. a. 15.0 - 105.3 n. a.
Underlying EBIT at 14.6 - 73.5 n. a. 14.6 - 105.3 n. a.
constant currency
Available passenger
cruise days2 ('000)
Mein Schiff 1,600 1,140 + 40.3 3,223 2,441 + 32.1
Hapag-Lloyd Cruises 145 103 + 41.3 294 251 + 16.9
Marella Cruises 645 364 + 77.3 1,258 742 + 69.6
Occupancy3 (%, variance
in % points)
Mein Schiff 93 51 + 42 91 52 + 39
Hapag-Lloyd Cruises 67 29 + 38 66 39 + 27
Marella Cruises 95 53 + 42 93 51 + 42
Average daily rate (€)
Mein Schiff4 136 138 - 1.5 137 147 - 6.5
Hapag-Lloyd Cruises4 780 606 + 28.7 725 640 + 13.2
Marella Cruises5 (in £) 181 156 + 16.4 170 149 + 14.5
1 No revenue is carried for Mein Schiff and Hapag-Lloyd Cruises as the joint venture TUI Cruises is consolidated
at equity
2 Number of operating days multiplied by berths available on the operated ships. This key figure has changed
compared to previous periods.
3 Achieved passenger cruise days divided by available passenger cruise days
4 Ticket revenue divided by achieved passenger cruise days
5 Revenue (stay on ship inclusive of transfers, flights and hotels due to the integrated nature of Marella
Cruises) divided by achieved passenger cruise days
The Cruises segment comprises the joint venture TUI Cruises in Germany, which operates cruise ships under the
brands Mein Schiff and Hapag-Lloyd Cruises, and Marella Cruises in UK. The segment operated a full fleet of 16
ships in the second quarter whilst in Q2 2022 operations were more limited and only gradually ramped up as
COVID-19 restrictions were eased.
H1 2023 Cruises revenue only includes Marella Cruises, as TUI Cruises is accounted for using the equity method.
Revenue grew to €257.1m, a significant improvement of €181.6m year-on-year (H1 2022: €75.5m). H1 2023 underlying
EBIT for the segment (including the equity result of TUI Cruises) was €15.0m, up €120.2m year-on-year (H1 2022:
€-105.3m loss).
Q2 2023 revenue reflecting Marella Cruises solely, increased to €141.9m, up €100.5m year-on-year (Q2 2022:
€41.3m). As a result, Q2 2023 underlying EBIT for the segment (including the equity result of TUI Cruises), was
€14.8m, an improvement of €88.3m (Q2 2022: €-73.5m loss) with both TUI Cruises and Marella contributing to the
positive development boosted by increased volumes as well as higher occupancies. The Cruises business continues
to recover post pandemic and this is now the fourth consecutive positive quarter for the segment with TUI
Cruises achieving Q2 2023 EAT (earnings after tax) of €18m.
Mein Schiff – Mein Schiff operated their full fleet of seven ships against a more limited programme in the
previous year where only six ships were able to return to operation by the end of the quarter as COVID-19
measures were gradually lifted. The brand offered itineraries to the Canaries, the Caribbean and around the
world with Asian itineraries resuming in Winter 2022/23 for the first time since the pandemic. Occupancy of the
operated fleet in Q2 2023 was 93% as a result (Q2 2022: 51%) demonstrating the strong demand for our German
language, premium all-inclusive product. At €136, the average daily rate was close to pre-pandemic levels (Q2
2019: €146) and virtually in line with prior year at -1% (Q2 2022: €138).
Hapag-Lloyd Cruises – Hapag-Lloyd Cruises, our luxury and expeditions brand, offering itineraries around the
world as well as voyages to Antarctica. The brand operated all five ships in Q2 2023 against a more limited
programme in the prior year. Q2 average daily rate was €780, well above pre-pandemic levels (Q2 2019: €680), and
with an increase of 29% on prior year (Q2 2022: €606). Q2 occupancy of the fleet was 67% (Q2 2022: 29%),
underlining the popularity of these cruise post pandemic.
Marella Cruises – Our UK cruise brand offered itineraries to the Caribbean and the Canaries in Q2 operating all
four ships against a partial fleet deployment in Q2 2022. The business achieved an average daily rate of £181 up
16.4% year-on-year (Q2 2022: £156) and above the pre-pandemic level of £154. Occupancy was at 95%, versus a
prior year Q2 of 53% benefiting from an improved trading environment.
TUI Musement
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Total revenue1 176.1 97.9 + 79.8 400.3 209.3 + 91.3
Revenue 130.3 68.1 + 91.3 290.0 145.6 + 99.2
Underlying EBIT - 12.7 - 18.2 + 30.2 - 26.2 - 31.5 + 16.8
Underlying EBIT at constant currency - 10.9 - 18.2 + 40.2 - 23.6 - 31.5 + 24.9
1 Total revenue includes intra-Group revenue
In TUI Musement, our Tours and Activities business, H1 2023 revenue of €290.0m, was up €144.4m year-on-year
(H1 2022: €145.6m). H1 underlying EBIT loss of €-26.2m was an improvement against prior year (H1 2022: €-31.5m
loss).
Q2 2023 revenue of €130.3m, was up €62.2m year-on-year (Q2 2022: €68.1m), with an underlying EBIT loss of
€-12.7m reduced by €5.5m against prior year (Q2 2022: €-18.2m loss). The improvement reflects the advantage of
our integrated model and growth of third-party sales through the TUI Musement platform. The business continues
to accelerate its B2C offering driving growth of Experiences sales directly to the consumer as part of the
strategic development of this segment. In doing so, we continue to drive and enhance our digital transformation
to enrich the customer experience throughout all channels and providing support and expertise in resort both in
person and through our dedicated TUI App.
During the quarter, TUI Musement benefited from increased guest transfers due to a higher number of tour
operator guests, providing 3.4m transfers in the destinations against 2.5m in the same quarter last year as the
trading environment returned to normal across our global destinations. In addition, 1.3m Experiences were sold,
up 0.7m year-on-year (Q2 2022: 0.7m) highlighting the significant expansion of our business in this segment.
Markets & Airlines
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Revenue 2,660.1 1,836.1 + 44.9 5,923.2 3,893.2 + 52.1
Underlying EBIT - 308.5 - 262.2 - 17.7 - 503.2 - 524.7 + 4.1
Underlying EBIT at constant currency - 323.7 - 262.2 - 23.5 - 528.7 - 524.7 - 0.8
Direct distribution mix1 76 80 - 4 75 77 - 2
(in %, variance in % points)
Online mix2 52 57 - 5 52 55 - 3
(in %, variance in % points)
Customers ('000) 2,439 1,872 + 30.3 5,743 4,146 + 38.5
1 Share of sales via own channels (retail and online)
2 Share of online sales
H1 2023 revenue of €5,923.2m, was up €2,030.0m year-on-year (H1 2022: €3,893.2m). H1 underlying EBIT reflected
the usual winter seasonal loss for the sector of €-503.2m which however, was an improvement of €21.6m
year-on-year (H1 2022: €-524.7m loss).
Q2 2023 revenue of €2,660.1m, increased €824.0m year-on-year (Q2 2022: €1,836.1m). The Q2 underlying EBIT loss
of €-308.5m was €-46.4m lower year-on-year (Q2 2022: €-262.2m loss). Prior year Q2 included a €43m benefit from
ineffective hedges and also €50m state compensation within Central Region for loss of business in the course of
the pandemic. Excluding these effects, Q2 2023 results were up €47m year-on-year driven by higher prices and a
restriction free trading environment with good demand for our wide and varied product offering. Traditional
short- and medium haul destinations such as the Canaries and Egypt were again popular destinations for our
customers, with long-haul destinations such as Mexico and the Dominican Republic also in good demand. However,
the overall segment continued to be impacted by inflationary pressures especially on energy as well as exchange
rate volatility.
A total of 2,439k customers departed in Q2 2023, an increase of 567k customers versus Q2 2022.
Northern Region
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
Revenue 1,191.5 847.9 + 40.5 2,534.6 1,500.2 + 69.0
Underlying EBIT - 147.5 - 180.9 + 18.5 - 269.5 - 352.6 + 23.6
Underlying EBIT at constant currency - 161.5 - 180.9 + 10.7 - 290.8 - 352.6 + 17.5
Direct distribution mix1 92 93 - 1 93 94 - 1
(in %, variance in % points)
Online mix2 67 69 - 2 68 71 - 3
(in %, variance in % points)
Customers ('000) 945 752 + 25.7 2,153 1,417 + 52.0
1 Share of sales via own channels (retail and online)
2 Share of online sales
H1 2023 revenue of €2,534.6m, which was up €1,034.5m year-on-year (H1 2022: €1,500.2m). H1 underlying EBIT loss
for the region of €-269.5m improved by €83.1m year-on-year (H1 2022: €-352.6m loss).
Northern Region reported Q2 2023 revenue of €1,191.5m, which was up €343.6m year-on-year (Q2 2022: €847.9m). Q2
2023 underlying EBIT loss for the region of €-147.5m improved by €33.4m year-on-year (Q2 2022: €-180.9m loss)
whereby Q2 2022 included a benefit of €16m from ineffective hedges. On a comparable basis, results in the
segment were significantly up by €50m driven by strong customer demand resulting in higher volumes and prices.
Q2 2023 customer volumes increased by 25.7% to 945k versus 752k guests in Q2 2022 underlining the market
recovery. Online distribution remained strong at 67%, which was down 2%pts against prior year (Q2 2022: 69%) but
at pre-pandemic levels (Q2 2019: 67%). The comparison against last year is however limited due to lower volumes
and longer retail shop closures resulting from the COVID-19 restrictions last year. Direct distribution was at
92% broadly in line with prior year (Q2 2022: 93%) and at pre-pandemic levels (Q2 2019: 92%).
Central Region
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Revenue 990.8 622.0 + 59.3 2,375.9 1,610.8 + 47.5
Underlying EBIT - 102.1 - 24.2 - 321.4 - 131.1 - 82.8 - 58.5
Underlying EBIT at constant currency - 102.4 - 24.2 - 322.7 - 132.9 - 82.8 - 60.6
Direct distribution mix1 55 58 - 3 54 57 - 3
(in %, variance in % points)
Online mix2 30 33 - 3 29 31 - 2
(in %, variance in % points)
Customers ('000) 829 538 + 54.1 2,061 1,475 + 39.8
1 Share of sales via own channels (retail and online)
2 Share of online sales
H1 2023 revenue of €2,375.9m, was up €765.0m year-on-year (H1 2022: €1,610.8m) with an underlying EBIT loss for
the region of €-131.1m, up €48.4m against last year (H1 2022: €-82.8m loss).
Q2 2023 revenue of €990.8m, improved €368.8m year-on-year (Q2 2022: €622.0m) whilst the underlying EBIT loss for
the region of €-102.1m, was €77.9m higher year-on-year (Q2 2022: €-24.2m loss). Results in the prior year
quarter included a €30m benefit from ineffective hedges. In addition, prior year included the benefit of a €50m
state compensation for loss of business in the course of the pandemic. Excluding these effects, Q2 results were
up €3m year on year. The improvement in operational performance was generated by higher volumes and prices in
Germany.
Customer volumes increased by 54.1% to 829k versus prior year (previous year 538k) following a more restrictive
trading environment in Q2 2022. Online distribution for Central Region reached 30%, down 3%pts against prior
year whereby comparison is limited due to lower volumes and longer retail shop closures due to the COVID-19
restrictions last year. Against pre-pandemic levels, online distribution was up by 10%pts (Q2 2019: 20%)
emphasising the significant development of our online offering in this region in line with consumer demand.
Direct distribution was down 3%pts to 55% against Q2 2022 of 58% but ahead versus pre-pandemic levels (Q2 2019:
48%).
Western Region
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
Revenue 477.7 366.2 + 30.5 1,012.6 782.2 + 29.4
Underlying EBIT - 59.2 - 57.0 - 3.9 - 102.9 - 89.4 - 15.1
Underlying EBIT at constant currency - 60.1 - 57.0 - 5.3 - 105.4 - 89.4 - 17.9
Direct distribution mix1 77 82 - 5 78 82 - 4
(in %, variance in % points)
Online mix2 59 64 - 5 61 63 - 2
(in %, variance in % points)
Customers ('000) 665 582 + 14.3 1,528 1,255 + 21.8
1 Share of sales via own channels (retail and online)
2 Share of online sales
In Western Region H1 2023 revenue of €1,012.6m, rose €230.4m year-on-year (H1 2022: €782.2m). H1 underlying EBIT
loss of €-102.9m, decreased by €13.5m year-on-year (H1 2022: €-89.4m loss).
Q2 2023 revenue of €477.7m, was up €111.5m year-on-year (Q2 2022: €366.2m). Q2 underlying EBIT loss of
€-59.2m, decreased by €2.2m year-on-year (Q2 2022: €-57.0m loss). Despite improving volumes in the region
year-on-year, results in the segment were slightly lower impacted by higher airline operating costs and the
ongoing effect of flight disruptions in Schiphol airport.
Customer volumes increased by 14.3% to 665k guests year-on-year (Q2 2022: 582k). Online distribution for region
stood at 59%, 5%pt below prior year but virtually in line with pre-pandemic levels (Q2 2019: 60 %). Direct
distribution was down 5%pts to 77% versus last year (Q2 2022: 82%) but in line with pre-pandemic levels (Q2
2019: 77%).
All other segments
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Revenue 2.3 1.9 + 22.7 3.9 4.0 - 2.9
Underlying EBIT - 13.9 0.4 n. a. - 30.6 - 26.8 - 14.1
Underlying EBIT at constant currency) - 13.9 0.4 n. a. - 30.6 - 26.8 - 14.3
H1 2023 underlying EBIT loss of €-30.6m, increased €3.8m year-on-year (H1 2022: €-26.8m loss) and Q2 2023
underlying EBIT loss of €-13.9m, increased by €-14.3m year-on-year (Q2 2022: €0.4m).
Financial position and net assets
Cash Flow / Net capex and investments / Net debt
In the first half-year of financial year 2023, TUI Group’s business volume was significantly higher than in
H1 2022, which was still impacted by measures to contain the spread of COVID-19. TUI Group’s results generally
also reflect the significant seasonal swing in tourism between the winter and summer travel months.
TUI Group's operating cash outflow in H1 2023 of €284.4m increased by €724.2m compared to previous year, due to
an increase in supplier payments as a result of higher business volumes in the previous Summer, in addition to
slightly lower December bookings received in H1 2023.
Net debt position as at 31 March 2023 of €-4.2bn was up €260.4m compared to previous year level (31 March 2022:
€-3.9bn).
Net debt
€ million 31 Mar 2023 31 Mar 2022 Var. %
Financial debt 2,994.1 2,426.5 + 23.4
Lease liabilities 2,834.5 3,146.0 - 9.9
Cash and cash equivalents 1,575.9 1,522.6 + 3.5
Short-term interest-bearing investments 56.3 113.8 - 50.5
Net debt -4,196.4 -3,936.0 + 6.6
Net capex and investments
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Cash gross capex
Hotels & Resorts 62.0 34.0 + 82.4 133.4 56.0 + 138.2
Cruises 15.7 6.8 + 130.9 43.7 28.3 + 54.4
TUI Musement 7.7 6.3 + 22.2 13.0 11.1 + 17.1
Holiday Experiences 85.4 47.1 + 81.3 190.1 95.4 + 99.3
Northern Region 5.5 6.5 - 15.4 11.1 12.8 - 13.3
Central Region 4.2 4.0 + 5.0 6.2 5.1 + 21.6
Western Region 7.3 1.5 + 386.7 11.6 3.3 + 251.5
Markets & Airlines* 16.2 13.4 + 20.9 49.5 23.9 + 107.1
All other segments 33.9 25.9 + 30.9 65.4 50.0 + 30.8
TUI Group 135.5 86.4 + 56.8 305.0 169.3 + 80.2
Net pre delivery payments on aircraft - 24.0 1.8 n. a. 35.0 - 44.6 n. a.
Financial investments - - - 0.3 - n. a.
Divestments - 42.6 - 4.9 - 769.4 - 122.4 12.0 n. a.
Net capex and investments 68.9 83.3 - 17.3 217.8 136.7 + 59.3
* Including €-0.8m for Q2 2023 (Q2 2023: €1.4m) and €20.6m for H1 2023 (H1 2022: €2.7m ) cash gross capex of the
aircraft leasing companies, which are allocated to Markets & Airlines as a whole, but not to the individual
segments Northern Region, Central Region and Western Region.
Cash gross capex in H1 2023 was €135.7m higher year-on-year. This increase was due, amongst others, to higher
investments in Hotels & Resorts, the airline sector and at Marella for the refurbishment of Mein Schiff Herz
prior to its commissioning for the UK market. Net capex and investments of €217.8m increased by €81.1m
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 Mar 2023 30 Sep 2023 Var. %
Non-current assets 11,212.2 11,351.7 - 1.2
Current assets 3,881.3 3,903.8 - 0.6
Total assets 15,093.4 15,255.5 - 1.1
Equity - 921.1 645.7 n. a.
Provisions 1,773.9 1,897.4 - 6.5
Financial liabilities 2,994.1 2,051.3 + 46.0
Other liabilities 11,246.5 10,661.0 + 5.5
Total equity, liabilities and provisions 15,093.4 15,255.5 - 1.1
Comments on the consolidated income statement
In the first half of financial year 2023, TUI Group’s business volume was significantly higher than in H1 2022,
which was still impacted by measures to contain the spread of COVID-19. TUI Group’s results generally also
reflect the significant seasonal swing in tourism between the winter and summer travel months.
In H1 2023, consolidated revenue increased by €2.4bn year-on-year to €6.9bn.
Unaudited condensed consolidated Income Statement of TUI AG for the period from 1 Oct 2022 to 31 Mar 2023
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
Revenue 3,152.9 2,128.4 +48.1 6,903.4 4,497.6 +53.5
Cost of sales 3,228.5 2,262.0 +42.7 6,889.8 4,734.4 +45.5
Gross profit / loss - 75.6 - 133.6 +43.4 13.7 - 236.9 n. a.
Administrative expenses 250.7 175.3 +43.0 493.4 377.0 +30.9
Other income 5.7 4.6 +23.9 11.7 30.8 - 62.0
Other expenses - 1.1 0.7 n. a. 4.7 1.6 +193.8
Impairment (+) / Reversal of impairment (-) of 2.7 - 0.2 n. a. 3.5 - 4.5 n. a.
financial assets
Financial income 19.9 5.1 +290.2 38.3 25.9 +47.9
Financial expense 152.4 133.5 +14.2 284.9 281.3 +1.3
Share of result of investments accounted for using the 78.4 - 33.3 n. a. 74.0 - 35.6 n. a.
equity method
Earnings before income taxes - 376.3 - 466.5 +19.3 - 648.8 - 871.0 +25.5
Income taxes (expense (+), income (-)) - 50.0 - 145.1 +65.5 - 90.8 - 163.1 +44.3
Group loss - 326.2 - 321.4 - 1.5 - 558.0 - 707.9 +21.2
Group loss attributable to shareholders of TUI AG - 364.3 - 335.7 - 8.5 - 620.4 - 720.0 +13.8
Group profit / loss attributable to non-controlling 38.1 14.4 +164.6 62.4 12.1 +415.7
interest
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 Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
Earnings before income taxes - 376.3 - 466.5 +19.3 - 648.8 - 871.0 +25.5
plus: Net interest expenses (excluding expense / 122.6 122.2 +0.3 233.1 253.8 - 8.2
income from measurement of interest hedges)
plus: (Income) expense from measurement of interest 6.0 1.3 +361.5 9.5 2.7 +251.9
hedges
EBIT - 247.6 - 343.1 +27.8 - 406.3 - 614.5 +33.9
Adjustments:
less / plus: Separately disclosed items - 1.0 6.0 - 1.7 - 3.3
plus: Expense from purchase price allocation 6.3 7.2 12.7 14.3
Underlying EBIT - 242.4 - 329.9 +26.5 - 395.3 - 603.5 +34.5
The TUI Group’s operating loss adjusted for special items decreased by €208.2m to €-395.3m in H1 2023.
• For further details on the separately disclosed items see page 46 in the Notes of this Half-Year Financial
Report.
Key figures of income statement
€ million Q2 2023 Q2 2022 Var. % H1 2022 H1 2022 Var. %
EBITDAR - 29.1 - 122.6 + 76.2 28.7 - 174.0 n. a.
Operating rental expenses - 13.6 - 7.4 - 83.1 - 13.4 - 11.5 - 16.9
EBITDA - 42.7 - 130.0 + 67.1 15.3 - 185.5 n. a.
Depreciation/amortisation less reversals of - 204.8 - 213.1 + 3.9 - 421.5 - 429.0 + 1.7
depreciation*
EBIT - 247.6 - 343.1 + 27.8 - 406.3 - 614.5 + 33.9
Income/Expense from the measurement of interest 6.0 1.3 + 361.5 9.5 2.7 + 251.9
hedges
Net interest expense (excluding expense/income from 122.6 122.2 + 0.3 233.1 253.8 - 8.2
measurement of interest hedges)
EBT - 376.3 - 466.5 + 19.4 - 648.8 - 871.0 + 25.5
* on property, plant and equipment, intangible assets, right of use assets and other assets
Other segment indicators
Underlying EBITDA
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Hotels & Resorts 123.6 68.0 + 81.9 245.3 175.0 + 40.2
Cruises 33.0 - 55.5 n. a. 50.9 - 70.5 n. a.
TUI Musement - 6.5 - 12.3 + 47.2 - 13.9 - 19.6 + 28.9
Holiday Experiences 150.1 0.2 n. a. 282.3 84.9 + 232.5
Northern Region - 73.6 - 105.5 + 30.2 - 116.9 - 202.0 + 42.1
Central Region - 77.9 4.3 n. a. - 81.3 - 26.1 - 212.0
Western Region - 24.7 - 23.4 - 5.5 - 31.9 - 20.4 - 56.5
Markets & Airlines - 175.8 - 124.6 - 41.1 - 229.6 - 248.4 + 7.6
All other segments - 17.2 1.3 n. a. - 37.4 - 24.9 - 50.0
TUI Group - 42.9 - 123.1 + 65.1 15.3 - 188.4 n. a.
EBITDA
€ million Q2 2023 Q2 2022 Var. % H1 2023 H1 2022 Var. %
adjusted adjusted
Hotels & Resorts 123.8 68.6 + 80.4 244.8 196.9 + 24.3
Cruises 33.0 - 55.5 n. a. 50.9 - 70.5 n. a.
TUI Musement - 6.5 - 12.4 + 47.6 - 12.6 - 19.8 + 36.5
Holiday Experiences 150.3 0.8 n. a. 283.2 106.6 + 165.6
Northern Region - 71.9 - 106.3 + 32.4 - 116.0 - 203.4 + 43.0
Central Region - 78.2 - 3.7 n. a. - 81.5 - 41.6 - 95.7
Western Region - 24.9 - 23.1 - 7.8 - 30.3 - 20.0 - 51.4
Markets & Airlines - 174.6 - 133.1 - 31.2 - 227.3 - 265.0 + 14.2
All other segments - 18.4 2.3 n. a. - 40.6 - 27.1 - 49.9
TUI Group - 42.7 - 130.0 + 67.1 15.3 - 185.5 n. a.
Employees
31 Mar 2023 31 Mar 2022 Var. %
Hotels & Resorts 21,425 17,176 + 24.7
Cruises* 77 61 + 26.2
TUI Musement 7,906 5,468 + 44.6
Holiday Experiences 29,408 22,705 + 29.5
Northern Region 10,127 9,606 + 5.4
Central Region 7,086 7,212 - 1.7
Western Region 5,152 4,609 + 11.8
Markets & Airlines 22,365 21,427 + 4.4
All other segments 2,188 1,991 + 9.9
Total 53,961 46,123 + 17.0
* Excludes TUI Cruises (JV) employees. Cruises employees are primarily hired by external crew management
agencies.
Corporate Governance
Composition of the Boards
In H1 2023 the composition of the Boards of TUI AG changed as follows:
Executive Board
As of 30 September 2022 Friedrich Joussen has resigned as Chief Executive Officer of TUI AG. Sebastian Ebel,
previously Chief Financial Officer, took over as CEO as of 1 October 2022. Also effective 1 October 2022 the
Supervisory Board appointed Mathias Kiep, previously Group Director Controlling, Corporate Finance and Investor
Relations as the new CFO. Both new appointments have a contract term of three years.
Frank Rosenberger, Member of the Board of Management responsible for IT and Future Markets, left TUI Group on 31
October 2022.
In February 2023, the Supervisory Board appointed Peter Krueger as a member of the Executive Board for a further
three years until the end of December 2026.
Supervisory Board
After Alexey Mordashov and Vladimir Lukin resigned from their offices in March 2022, Helena Murano and Christian
Baier were appointed as Supervisory Board members of TUI AG by order of Hanover Local Court dated 31 May 2022.
The Executive Board’s applications for appointment by the Court were limited to the period until the next Annual
General Meeting (AGM) in accordance with recommendation C.15, sentence 2 of the German Corporate Governance
Code. Helena Murano and Christian Baier have now been elected by the AGM on 14 February 2023, as has Dr Dieter
Zetsche, whose previous term of office ended at the close of this AGM. The terms of office end at the end of the
AGM that resolves on the discharge of the Supervisory Board for the financial year ending on 30 September 2026,
i.e. until 2027.
The current, complete composition of the Executive Board and Supervisory Board is published on our website,
where it is permanently accessible to the public.
• www.tuigroup.com/en-en/investors/corporate-governance
Risk and Opportunity Report
Successful management of existing and emerging risks is critical to the long-term success of our business and to
the achievement of our strategic objectives.
We aggregate the risks into principal risks, upon which senior management determines its risk appetite. Full
details of our risk governance framework and principal risks can be found in the Annual Report 2022.
• For details of risks and opportunities, see our Annual Report 2022, from page 34 and page 55
External events, namely the COVID 19-pandemic, the impact on input cost due the Ukraine war, and supply chain
disruptions impact the principal risks. The impact is higher if a combination of principal risks is affected.
Contact restriction measures and travel restrictions were gradually eased in most countries in the first months
of the calendar year 2022 and business was fully resumed in all segments. The booking momentum for the financial
year 2023 remains encouraging. Based on past trends, the Executive Board expects capacity to be close to
normalised 2019 levels in summer 2023.
From the Executive Board’s perspective, despite the existing risks, TUI Group currently has and will continue to
have sufficient funds, resulting from both borrowings and operating cash flows, to meet its payment obligations
and to ensure the going concern of the company accordingly in the foreseeable future. In this context, the
Executive Board assumes that the credit lines expiring in summer 2024 will be refinanced. Therefore, as at 31
March 2023, the Executive Board does not identify any material uncertainty that may cast significant doubt on
the Group’s ability to continue as a going concern.
The Executive Board does not see any risks that could jeopardise the company's existence and assumes that
compliance with covenants as of 30 September 2023 and 31 March 2024 is not at risk.
Nevertheless, the general price increase in recent months and a resulting reduced private budget could dampen
customer demand. In addition, a permanent increase in fuel costs as well as services, especially those that we
purchase in US Dollar, could adversely affect the development.
Unaudited condensed consolidated Interim Financial Statements
Unaudited condensed consolidated Income Statement of TUI AG for the period from
1 Oct 2022 to 31 Mar 2023
€ million Notes Q2 2023 Q2 2022 H1 2023 H1 2022
Revenue (1) 3,152.9 2,128.4 6,903.4 4,497.6
Cost of sales (2) 3,228.5 2,262.0 6,889.8 4,734.4
Gross profit / loss - 75.6 - 133.6 13.7 - 236.9
Administrative expenses (2) 250.7 175.3 493.4 377.0
Other income (3) 5.7 4.6 11.7 30.8
Other expenses (4) - 1.1 0.7 4.7 1.6
Impairment (+) / Reversal of impairment (-) of financial assets (20) 2.7 - 0.2 3.5 - 4.5
Financial income (5) 19.9 5.1 38.3 25.9
Financial expense (5) 152.4 133.5 284.9 281.3
Share of result of investments accounted for using the equity (6) 78.4 - 33.3 74.0 - 35.6
method
Earnings before income taxes - 376.3 - 466.5 - 648.8 - 871.0
Income taxes (expense (+), income (-)) (7) - 50.0 - 145.1 - 90.8 - 163.1
Group loss - 326.2 - 321.4 - 558.0 - 707.9
Group loss attributable to shareholders of TUI AG - 364.3 - 335.7 - 620.4 - 720.0
Group profit / loss attributable to non-controlling interest (8) 38.1 14.4 62.4 12.1
Earnings per share
€ Q2 2023 Q2 2022 H1 2023 H1 2022
Basic and diluted loss / - 1.26 - 1.23 - 2.15 - 2.74
earnings per share*
* Earnings per share for all periods presented were adjusted for the impact of the 10-for-1 reverse stock split
in February 2023 as well as the impact of the subscription rights issued in the capital increase in March 2023.
Unaudited condensed consolidated Statement of Comprehensive Income of TUI AG for the period from
1 Oct 2022 to 31 Mar 2023
€ million Q2 2023 Q2 2022 H1 2023 H1 2022
Group loss - 326.2 - 321.4 - 558.0 - 707.9
Remeasurements of defined benefit obligations and related fund assets - 5.7 133.0 - 129.4 205.6
Fair value profit / loss on investments in equity instruments designated 22.6 - 0.2 23.7 - 0.5
as at FVTOCI
Income tax related to items that will not be reclassified (expense (-), 2.0 - 40.4 32.9 - 58.5
income (+))
Items that will not be reclassified to profit or loss 18.8 92.4 - 72.9 146.6
Foreign exchange differences - 2.1 28.1 - 103.4 31.8
Foreign exchange differences outside profit or loss - 2.1 28.2 - 103.4 31.9
Reclassification - - 0.1 - - 0.1
Cash flow hedges - 39.9 65.6 - 176.2 61.7
Changes in the fair value - 53.4 67.0 - 169.7 64.5
Reclassification 13.5 - 1.4 - 6.5 - 2.8
Other comprehensive income of investments accounted for using the equity - 5.6 5.6 - 6.6 8.4
method that may be reclassified
Income tax related to items that may be reclassified (expense (-), 9.6 - 13.1 44.3 - 12.5
income (+))
Items that may be reclassified to profit or loss - 38.0 86.2 - 241.8 89.4
Other comprehensive income - 19.1 178.6 - 314.7 236.0
Total comprehensive income - 345.4 - 142.8 - 872.7 - 471.9
attributable to shareholders of TUI AG - 396.6 - 166.7 - 927.4 - 498.6
attributable to non-controlling interest 51.2 23.9 54.7 26.7
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 31 Mar 2023
€ million Notes 31 Mar 2023 30 Sep 2022
Assets
Goodwill (9) 2,954.9 2,970.6
Other intangible assets 541.7 507.6
Property, plant and equipment (10) 3,480.0 3,400.9
Right-of-use assets (11) 2,669.7 2,971.5
Investments in joint ventures and associates 804.0 785.4
Trade and other receivables (12), (20) 119.3 131.6
Derivative financial instruments (20) 2.9 26.6
Other financial assets (20) 9.8 10.6
Touristic payments on account 139.2 138.0
Other non-financial assets 121.7 169.7
Income tax assets 17.2 17.2
Deferred tax assets 351.6 222.0
Non-current assets 11,212.2 11,351.7
Inventories 63.5 56.1
Trade and other receivables (12), (20) 875.1 1,011.8
Derivative financial instruments (20) 38.0 232.5
Other financial assets (20) 56.3 85.8
Touristic payments on account 1,071.2 619.6
Other non-financial assets 145.2 135.4
Income tax assets 32.0 23.1
Cash and cash equivalents (20) 1,575.9 1,736.9
Assets held for sale (13) 24.0 2.7
Current assets 3,881.3 3,903.8
Total assets 15,093.4 15,255.5
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 31 Mar 2023
€ million Notes 31 Mar 2023 30 Sep 2022
Equity and liabilities
Subscribed capital 178.5 1,785.2
Capital reserves 7,658.0 6,085.9
Revenue reserves - 9,599.7 - 8,432.7
Silent participation - 420.0
Equity before non-controlling interest - 1,763.1 - 141.6
Non-controlling interest 842.0 787.3
Equity (19) - 921.1 645.7
Pension provisions and similar obligations (14) 592.4 568.2
Other provisions 762.0 755.0
Non-current provisions 1,354.4 1,323.2
Financial liabilities (16), (20) 2,645.8 1,731.4
Lease liabilities (17) 2,221.7 2,508.7
Derivative financial instruments (20) 1.7 3.2
Other financial liabilities (18), (20) 2.5 2.8
Other non-financial liabilities 244.0 165.2
Income tax liabilities 11.1 11.1
Deferred tax liabilities 56.4 121.2
Non-current liabilities 5,183.5 4,543.8
Non-current provisions and liabilities 6,537.9 5,867.0
Pension provisions and similar obligations (14) 31.5 33.1
Other provisions 388.0 541.0
Current provisions 419.4 574.2
Liabilities from the repurchase of equity instruments (15) 678.4 -
Financial liabilities (16), (20) 348.4 319.9
Lease liabilities (17) 612.9 698.8
Trade payables (20) 2,013.7 3,316.5
Derivative financial instruments (20) 160.0 57.5
Other financial liabilities (18), (20) 120.6 174.6
Touristic advance payments received 4,598.2 2,998.9
Other non-financial liabilities 468.5 519.9
Income tax liabilities 56.4 82.3
Current liabilities 9,057.2 8,168.6
Current provisions and liabilities 9,476.6 8,742.7
Total equity, liabilities and provisions 15,093.4 15,255.5
Unaudited condensed consolidated Statement of Changes in Equity of TUI AG for the period from
1 Oct 2022 to 31 Mar 2023
Subscribed Capital Revenue Silent Equity before Non-controlling
€ million capital reserves reserves participation non-controlling interest Total
interest
Balance as at 1 1,099.4 5,249.6 - 1,091.0 - 1,085.7 667.3 - 418.4
Oct 2021 8,525.7
Dividends - - - - - 0.1 0.1
Share-based - - 0.3 - 0.3 - 0.3
payment schemes
Capital 523.5 582.9 - - 1,106.4 - 1,106.4
increase
Group loss for - - - 720.0 - - 720.0 12.1 - 707.9
the year
Foreign
exchange - - 17.2 - 17.2 14.6 31.8
differences
Financial
assets at - - - 0.5 - - 0.5 - - 0.5
FVTOCI
Cash flow - - 61.7 - 61.7 - 61.7
hedges
Remeasurements
of defined
benefit - - 205.6 - 205.6 - 205.6
obligations and
related fund
assets
Other
comprehensive
income of
investments - - 8.4 - 8.4 - 8.4
accounted for
using the
equity method
Taxes
attributable to
other - - - 71.0 - - 71.0 - - 71.0
comprehensive
income
Other
comprehensive - - 221.4 - 221.4 14.6 236.0
income
Total
comprehensive - - - 498.6 - - 498.6 26.7 - 471.9
income
Balance as at 1,622.9 5,832.5 - 1,091.0 - 477.5 694.1 216.6
31 Mar 2022 9,023.9
Balance as at 1 1,785.2 6,085.9 - 420.0 - 141.6 787.3 645.7
Oct 2022 8,432.7
Dividends - - - - - - -
Coupon on
silent - - - 16.8 - - 16.8 - - 16.8
participation
Capital - 1,606.7 1,606.7 - - - - -
reduction
WSF repurchase - - 34.5 - 222.8 - 420.0 - 677.3 - - 677.3
agreement
Group loss for - - - 620.4 - - 620.4 62.4 - 558.0
the year
Foreign
exchange - - - 96.0 - - 96.0 - 7.4 - 103.4
differences
Financial
assets at - - 23.7 - 23.7 - 23.7
FVTOCI
Cash flow - - - 176.2 - - 176.2 - - 176.2
hedges
Remeasurements
of defined
benefit - - - 129.1 - - 129.1 - 0.3 - 129.4
obligations and
related fund
assets
Other
comprehensive
income of
investments - - - 6.6 - - 6.6 - - 6.6
accounted for
using the
equity method
Taxes
attributable to
other - - 77.2 - 77.2 - 77.2
comprehensive
income
Other
comprehensive - - - 307.0 - - 307.0 - 7.7 - 314.7
income
Total
comprehensive - - - 927.4 - - 927.4 54.7 - 872.7
income
Balance as at 178.5 7,658.0 - - - 1,763.1 842.0 - 921.1
31 Mar 2023 9,599.7
Unaudited condensed consolidated Cash Flow Statement of TUI AG for the period from
1 Oct 2022 to 31 Mar 2023
€ million Notes H1 2023 H1 2022
Group loss - 558.0 - 707.9
Depreciation, amortisation and impairment (+) / write-backs (-) 421.5 429.0
Other non-cash expenses (+) / income (-) - 62.3 28.8
Interest expenses 277.0 269.4
Dividends from joint ventures and associates 2.8 0.1
Profit (-) / loss (+) from disposals of non-current assets - 6.6 - 26.5
Increase (-) / decrease (+) in inventories - 7.7 - 8.0
Increase (-) / decrease (+) in receivables and other assets - 47.9 - 396.2
Increase (+) / decrease (-) in provisions - 231.0 - 127.1
Increase (+) / decrease (-) in liabilities (excl. financial liabilities) - 72.2 978.2
Cash inflow / cash outflow from operating activities (23) - 284.4 439.8
Payments received from disposals of property, plant and equipment and intangible 74.1 63.4
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 75.8 - 23.6
Payments made for investments in property, plant and equipment and intangible - 364.8 - 174.1
assets
Payments made for investments in other non-current assets - 3.8 -
Cash inflow / cash outflow from investing activities (23) - 219.4 - 136.5
Payments received from capital increase by issuing new shares - 1,106.4
Coupon on silent participation (dividends) - 16.8 -
Payments received from the raising of financial liabilities 1,053.9 18.3
Payments made for redemption of loans and financial liabilities - 91.7 - 1,007.9
Payments made for principal of lease liabilities - 362.1 - 306.4
Interest paid - 227.8 - 173.9
Cash inflow / cash outflow from financing activities (23) 355.6 - 363.6
Net change in cash and cash equivalents - 148.2 - 60.3
Development of cash and cash equivalents (23)
Cash and cash equivalents at beginning of period 1,736.9 1,586.1
Change in cash and cash equivalents due to exchange rate fluctuations - 12.8 - 3.2
Net change in cash and cash equivalents - 148.2 - 60.3
Cash and cash equivalents at end of period 1,575.9 1,522.6
Notes
General
The TUI Group and its major subsidiaries and shareholdings operate in tourism. TUI AG, based in
Karl-Wiechert-Allee 4, 30625 Hanover, Germany, is the TUI Group’s parent company and a listed corporation under
German law. The Company is registered in the commercial registers of the district courts of
Berlin-Charlottenburg (HRB 321) and Hanover (HRB 6580), Germany. The shares in TUI AG are traded on the London
Stock Exchange and the Hanover and Frankfurt Stock Exchanges. In this document, the term “TUI Group” represents
the consolidated group of TUI AG and its direct and indirect investments. Additionally, the unaudited condensed
consolidated interim financial statements of TUI AG are referred to as “Interim Financial Statements”, the
unaudited condensed consolidated income statement of TUI AG is referred to as “income statement”, the unaudited
condensed consolidated statement of financial position of TUI AG is referred to as “statement of financial
position”, the unaudited condensed consolidated statement of comprehensive income of TUI AG is referred to as
“statement of comprehensive income” and the unaudited condensed consolidated statement of changes in equity of
TUI AG is referred to as “statement of changes in equity”.
The Interim Financial Statements cover the period from 1 October 2022 to 31 March 2023. The Interim Financial
Statements are prepared in euros. Unless stated otherwise, all amounts are stated in million euros (€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 8 May 2023.
Accounting principles
Declaration of compliance
The consolidated interim financial report for the period ended 31 March 2023 comprise the Interim Financial
Statements and the Interim Management Report in accordance with section 115 of the German Securities Trading Act
(WpHG).
The Interim Financial Statements were prepared in conformity with the International Financial Reporting
Standards (IFRS) of the International Accounting Standards Board (IASB) and the relevant interpretations of the
IFRS Interpretation Committee (IFRS IC) for interim financial reporting applicable in the European Union.
In accordance with IAS 34, the Interim Financial Statements are published in a condensed form compared with the
consolidated annual financial statements and should therefore be read in combination with TUI Group’s
consolidated financial statements for financial year 2022. The Interim Financial Statements were reviewed by the
Group’s auditor.
Going concern reporting in accordance with the UK Corporate Governance Code
The TUI Group covers its day-to-day working capital requirements through cash on hand, balances with and
borrowings from banks. TUI Group's net debt (financial debt plus lease liabilities less cash and cash
equivalents and less short-term interest-bearing cash investments) as of 31 March 2023 was €4.2bn (as at 30
September 2022 €3.4bn).
Net debt
€ million 31 Mar 2023 30 Sep 2022 Var. %
Financial debt 2,994.1 2,051.3 + 46.0
Lease liabilities 2,834.5 3,207.5 - 11.6
Cash and cash equivalents 1,575.9 1,736.9 - 9.3
Short-term interest-bearing investments 56.3 85.8 - 34.4
Net debt -4,196.4 -3,436.2 + 22.1
The global travel restrictions to contain COVID-19 have had a continuous negative impact on the Group's earnings
and liquidity development since the end of March 2020. Currently, TUI Group is only marginally effected by the
negative financial impact of the COVID-19 pandemic.
To cover the resulting liquidity needs, the Group has carried out various financing measures in the financial
years 2020 to 2022, which, in addition to three capital increases, the use of the banking and capital markets
and cash inflows from the sale of assets, also include financing measures from the Federal Republic of Germany
in the form of a KfW credit line initially totalling €2.85bn, an option bond from the German 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.
The financing measures are described in detail in the annual reports for the past three financial years.
As at 31 March 2023, TUI Group’s revolving credit facilities totalled €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.
In the interim financial statements as at 31 March 2023, Silent Participation I to be repurchased from WSF
subject to receipt of the proceeds from the capital increase resolved on 24 March 2023 and the option rights are
carried as liabilities in accordance with IAS 32.
In February 2023, TUI AG implemented the ten-for-one reverse stock split previously resolved by the 2023 AGM in
accordance with the provisions of the Economic Stabilisation Acceleration Act. As a result, the Company's share
capital declined from €1.785bn to around €179m. The corresponding reduction amount of around €1.606bn was
transferred to the company's capital reserves.
In accordance with the repayment agreement with the WSF, the Executive Board of TUI AG resolved a capital
increase with subscription rights of €1.8bn with the approval of the Supervisory Board on 24 March 2023. For the
fully subscribed capital increase, 328,910,448 new shares were offered at a subscription ratio of 8:3 and a
subscription price of €5.55. The subscription period for the new shares ended on 17 April 2023.
Following receipt of the proceeds from the capital increase on 24 April 2023, Silent Participation I and the
around 56.8m warrants held by the WSF as well as the outstanding 587 of the 2020/2026 bonds with warrants were
fully redeemed. For Silent Participation I and the 2023 coupon payable on it, a redemption price of €651.6m was
paid. €30.8m were used for the repurchase of the warrants and further €61.9m for the early redemption of the 587
bonds with a nominal value of €58.7m, including accrued interest of €3.2m.
At the same time, the early repayment penalty for Silent Participation II of €5.7m, agreed with the WSF in April
2022, became due. TUI has thus terminated and repaid all stabilisation measures of the WSF.
In summary, the capital increase, the repurchase of Silent Participation I and the warrants, which are presented
as repurchase of equity instruments on the balance sheet, and the repurchase of the bonds and the early
repayment penalty, which are presented within current financial liabilities, have the following effects on the
balance of equity and liabilities before capital increase and repurchase respectively:
Effect of the capital increase and repurchase
€ million prior Capital increase / afterwards
Repurchase
Subscribed capital 178.5 328.9 507.4
Capital reserves 7,658.0 1,432.4 9,090.4
Equity - 921.1 1,761.3 840.1
Liabilities from the repurchase of equity instruments 682.4 - 682.4 -
Current financial liabilities 348.0 - 67.6 280.4
Moreover, TUI AG reduced the volume of the KfW credit facility from €2.1bn to €1.1bn following completion of the
capital increase.
The capital increase and the substantial reduction in government financing enable a significant improvement in
the TUI Group's credit ratios and reduce current interest costs, allowing TUI to focus on growth and further
market recovery. In the wake of the capital increase and the resulting improvement in balance sheet ratios, the
rating agency Standard & Poors raised TUI's credit rating from B- to B (outlook positive).
Contact restriction measures and travel restrictions were gradually eased in most countries in the first months
of the calendar year 2022 and business was fully resumed in all segments. The booking momentum for the 2023
financial year remains encouraging. Based on past trends, the Executive Board expects capacity to almost reach
pre-crisis levels in summer 2023.
From the Executive Board’s perspective TUI Group currently has and will continue to have sufficient funds,
resulting from both borrowings and operating cash flows, to meet its payment obligations and to ensure the going
concern of the company accordingly in the foreseeable future. In this context, the Executive Board assumes that
the credit lines expiring in summer 2024 will be refinanced. Therefore, as at 31 March 2023, the Executive Board
does not identify any material uncertainty that may cast significant doubt on the Group’s ability to continue as
a going concern.
The Executive Board does not see risks that could jeopardise the company's existence and assumes that compliance
with covenants as of 30 September 2023 and 31 March 2024 is not at risk.
Nevertheless, the general price increase in recent months and a resulting reduced private budget could dampen
customer demand. In addition, a permanent increase in fuel costs as well as services, especially those that we
purchase in USD, could adversely affect the development.
In accordance with Regulation 30 of the UK Corporate Governance Code, the Executive Board confirms that,
in its opinion, it is appropriate to prepare the consolidated interim financial statements on a going concern
basis.
Accounting and measurement methods
The preparation of the Interim Financial Statements requires management to make estimates and judgements that
affect the reported values of assets, liabilities and contingent liabilities at the balance sheet date and the
reported values of revenues and expenses during the reporting period.
Both the recent development of the business and current trading for the summer programme have confirmed the
business performance guidance provided by TUI at the end of financial year 2022. Additionally a risk assessment
was performed for the Group’s assets to identify any indications of impairment as at 31 March 2023. On the basis
of that assessment, TUI does not see any indication that the Group’s assets may generally be impaired.
The accounting and measurement methods adopted in the preparation of the Interim Financial Statements as at 31
March 2023 are materially consistent with those followed in preparing the annual consolidated financial
statements for the financial year ended 30 September 2022, except for the initial application of new or amended
standards, as outlined below.
The income taxes were recorded based on the best estimate of the weighted average tax rate that is expected for
the whole financial year.
Newly applied standards
Since the beginning of financial year 2023, TUI Group has initially applied the following standards, amended by
the IASB and endorsed by the EU, on a mandatory basis:
Newly applied standards in financial year 2023
Standard Applicable from Amendments Impact on financial
statements
The amendments specify which costs to include
in assessing whether a contract is onerous. No impacts to the H1
Amendments to The amendments clarify that the cost of interim reporting. For
IAS 37 1 Jan 2022 fulfilling a contract consists of the direct the current financial
Onerous Contracts cost of the contract representing either the year no material
incremental costs of fulfilling the contract impacts are expected.
or an allocation of other costs 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 be No impacts.
Proceeds before capable of operating in the manner intended
Intended Use 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 1 Jan 2022 Improvements 2018-2020 Cycle include small No major impacts.
IFRS (2018-2020) amendments to IFRS 1, IFRS 9, IAS 41, and the
Illustrative Examples accompanying IFRS 16.
Key judgements, assumptions and estimates
Recognition, measurement and disclosure of the contingent settlement provision to repurchase own equity
instruments
On 13 December 2022, an agreement was concluded with the WSF, entitling TUI to repurchase its own equity
instruments ‘Silent Participation I’ with a nominal value of €420m and the approx. 58.7m warrants with a
carrying amount of €34.5m, contingent on receiving the proceeds from a capital increase carried out for
refinancing purposes. Upon occurrence of that condition, TUI has contractually committed to repurchasing the
equity instruments held by the WSF as well as the 587 partial bonds with a nominal value of €58.7m, reported
under financial liabilities, against payment of the repurchase price. Accounting for the agreement required
judgements with respect to the recognition, measurement and presentation of the repurchase liability.
On 24 March 2023, the Executive Board resolved, with the consent of the Supervisory Board, to implement a
capital increase by launching a rights issue from Authorized Capital 2022/1 and Authorized Capital 2022/2. Since
that date, in our view, the occurrence or non-occurrence of the condition for the repurchase of own equity
instruments has been beyond TUI's control. In accordance with IAS 32, a financial liability therefore had to be
recognized as of 24 March 2023 at the present value of the repurchase amount of the equity instruments, and
Silent Participation I and the warrants had to be reclassified from equity.
As the transaction has to be accounted for as a repurchase of own equity instruments in accordance with IAS 32,
the repurchase liability had to be measured in equity prior to the reclassification of the carrying amounts of
€454.5m. As a result, revenue reserves decreased by the difference versus the present value of the repurchase
price of €222.8m as at 24 March 2023.
The nature of the repurchase liability is relevant for an understanding of TUI's net assets, financial position
and results of operations as of 31 March 2023. The repurchase liability is material and differs in nature from
TUI’s other financial liabilities due to the mechanism of IAS 32.23 in combination with IAS 32.25. The
repurchase is therefore presented separately as ‘Liabilities from the repurchase of equity instruments’. In
accordance with IAS 32.23, the carrying amount of the repurchase obligation in respect of Silent Participation I
and the warrants needs would have been reclassified back to equity if TUI had not received the proceeds from the
resolved capital increase of €1.8bn. The associated measure ‘Capital increase for the purpose of terminating the
WSF stabilisation measures’ results in an increase in equity of around €1.8bn, the repayment of the repurchase
liability and a reduction in net debt in the amount of the remaining part of the capital increase. The proceeds
from the resolved capital increase must not yet be recognised in the balance sheet as of 31 March 2023.
Group of consolidated companies
The Interim Financial Statements include all material subsidiaries over which TUI AG has control. Control
requires TUI AG to have decision-making power over the relevant activities, be exposed to variable returns or
have entitlements regarding the returns, and can affect the level of those variable returns through its
decision-making power.
The Interim Financial Statements as of 31 March 2023 comprised a total of 272 subsidiaries of TUI AG.
Development of the group of consolidated companies*and the Group companies measured at equity
Consolidated subsidiaries Associates Joint ventures
Number at 30 Sep 2022 268 17 27
Additions 4 - -
Incorporation 2 - -
Demerger 1 - -
Acquisition 1 - -
Disposals - - -
Number at 31 Mar 2023 272 17 27
* excl. TUI AG
Acquisitions – Divestments
Acquisitions in the period under review
In H1 2023 one company was acquired which does not constitute a business. No acquisitions were made in the prior
year and after the reporting date.
Divestments
In H1 2023, no companies were sold. After the reporting date the non-consolidated company Peakwork AG was sold.
For further information please refer to the section ‘assets held for sale’.
Notes to the unaudited condensed consolidated Income Statement
In the first six months of financial year 2023, TUI Group’s business volume was significantly higher than in H1
2022 which was still impacted by measures to contain the spread of COVID-19. TUI Group’s results generally also
reflect the significant seasonal swing in tourism between the winter and summer travel months.
1. Revenue
In the first six months of the financial year 2023, consolidated revenue increased by €2.4bn year-on-year to
€6.9bn.
External revenue allocated by destinations for the period from 1 Oct 2022 to 31 Mar 2023*
Rest of H1 2023
Spain Other Caribbean, North Africa, Revenues
€ million (incl. European Mexico, Africa Ind. Other from Other H1 2023
Canary destinations USA & & Ocean, countries contracts Total
Islands) Canada Turkey Asia with
customers
Hotels & 153.6 25.1 138.7 19.2 92.6 - 429.2 - 429.2
Resorts
Cruises 97.2 72.0 87.8 - - - 257.1 - 257.1
TUI 48.3 68.1 66.1 17.0 64.5 26.0 290.0 - 290.0
Musement
Holiday 299.1 165.2 292.6 36.2 157.1 26.0 976.3 - 976.4
experiences
Northern 786.9 439.1 627.8 247.3 414.8 13.9 2,529.8 4.8 2,534.6
Region
Central 702.8 397.1 204.7 496.0 570.2 3.6 2,374.4 1.5 2,375.9
Region
Western 309.0 115.1 267.0 149.7 157.1 11.2 1,009.1 3.5 1,012.6
Region
Markets & 1,798.7 951.3 1,099.5 893.0 1,142.1 28.7 5,913.3 9.8 5,923.2
Airlines
All other 0.2 3.2 0.2 0.2 - - 3.9 - 3.9
segments
Total 2,098.1 1,119.8 1,392.4 929.4 1,299.2 54.7 6,893.6 9.8 6,903.4
External revenue allocated by destinations for the period from 1 Oct 2021 to 31 Mar 2022*
H1 2022
Spain Caribbean, North Rest of Revenues
(incl. Other Mexico, Africa Africa, Other from H1 2022
€ million Canary European USA & & Ind. countries contracts Other Total
Islands) destinations Canada Turkey Ocean, with
Asia customers
(adjusted)
Hotels & 153.2 23.2 110.1 14.3 78.5 - 379.3 - 379.3
Resorts
Cruises 35.8 3.3 36.3 - - 0.1 75.5 - 75.5
TUI 39.3 40.1 32.3 5.1 19.8 9.0 145.6 - 145.6
Musement
Holiday 228.3 66.6 178.7 19.4 98.3 9.1 600.4 - 600.4
experiences
Northern 490.8 350.3 383.4 90.9 172.0 9.0 1,496.4 3.8 1,500.2
Region
Central 506.3 373.1 152.1 260.1 316.0 2.8 1,610.4 0.5 1,610.8
Region
Western 336.1 122.2 211.2 47.2 61.6 2.9 781.2 1.0 782.2
Region
Markets & 1,333.2 845.6 746.7 398.2 549.6 14.7 3,888.0 5.3 3,893.2
Airlines
All other 0.1 3.7 0.2 - - - 4.0 - 4.0
segments
Total 1,561.6 915.9 925.6 417.6 647.9 23.8 4,492.4 5.3 4,497.6
*Due to the re-segmentation of Future Markets from All other segments to Hotels & Resorts, TUI Musement and
Central Region in the current financial year, previous periods have been adjusted.
2. Cost of sales and administrative expenses
Cost of sales relates to the expenses incurred in the provision of tourism services. In addition to the expenses
for staff costs, depreciation, amortisation, rental and leasing, it includes all costs incurred by TUI Group in
connection with the procurement and delivery of airline services, hotel accommodation and cruises and
distribution costs.
Due to the increased business volume, the cost of sales increased by 45.5% to €6.9bn in H1 2023.
Government Grants
€ million H1 2023 H1 2022
Cost of Sales 0.1 58.3
Administrative expenses 0.6 31.1
Total 0.7 89.4
In the prior year, government grants were awarded due to the measures in place to contain the COVID-19
pan-demic. When these measures ended in financial year 2022, the various aid programmes were also terminated.
The government grants reported under cost of sales and administrative expenses include in particular grants for
wages and salaries as well as social security contributions directly reimbursed to the relevant company. In
addition, a number of Group companies have received government grants, e. g. in the form of grants for fixed
costs.
Administrative expenses comprise all expenses incurred in connection with the performance of administrative
functions and break down as follows:
Administrative expenses
€ million H1 2023 H1 2022
Staff costs 297.0 271.6
Rental and leasing expenses 8.3 6.9
Depreciation, amortisation and impairment 34.1 39.2
Others 153.9 59.2
Total 493.4 377.0
Administrative expenses increased due to the termination of state aid programmes as well as increased exchange
rates.
The cost of sales and administrative expenses include the following expenses for staff and
depreciation/amortisation:
Staff costs
€ million H1 2023 H1 2022
Wages and salaries 933.6 781.9
Social security contributions, pension costs and benefits 185.5 178.6
Total 1,119.1 960.5
Depreciation/amortisation/impairment
€ million H1 2023 H1 2022
Depreciation and amortisation of other intangible assets, property, plant and equipment and 417.6 431.1
right-of-use assets
Impairment of other intangible assets, property, plant and equipment and right-of-use assets 4.9 3.1
Total 422.5 434.2
The impairments of €4.9m were presented within cost of sales (H1 2022 €2.9m). In H1 2023 reversals of impairment
losses of €1.0m were recognized in cost of sales (H1 2022 €5.2m).
3. Other income
In the first six months of the financial year 2023 other income mainly includes €5.0m from the disposal of
aircraft assets and €4.7m from the disposal of the Jet Set House (Crawley). In the prior year, other income
reflects €22.0m from the disposal of Nordotel S.A., plus the sale of aircraft assets.
4. Other expenses
In H1 2023 other expenses mainly results from the disposal of aircraft assets. In the previous year, there were
no significant other expenses.
5. Financial income and financial expenses
The improvement in the net financial result from €-255.3 m in the first six months of the previous year to
€-246.6m in the current financial year is mainly the result of higher interest income.
6. Share of result of investments accounted for using the equity method
Share of result of investments accounted for using the equity method
€ million H1 2023 H1 2022
Hotels & Resorts 46.0 22.1
Cruises 26.0 - 38.2
TUI Musement 5.1 2.3
Holiday Experiences 77.1 - 13.8
Northern Region - 3.4 - 20.7
Central Region - 0.2 - 1.1
Western Region 0.3 -
Markets & Airlines - 3.3 - 21.8
All other segments 0.2 -
Total 74.0 - 35.6
7. Income taxes
The tax income arising in the first half year of 2023 is mainly driven by the seasonality of the tourism
business.
8. Group profit / loss attributable to non-controlling interest
TUI Group’s result attributable to non-controlling interests is substantially a gain, primarily relating to
RIUSA II Group at an amount of €61.3m (H1 2022 €12.5m profit).
Notes to the unaudited condensed consolidated Statement of Financial Position
9. Goodwill
Goodwill decreased by €15.7m to €2,954.9m due to foreign exchange translation. The following table presents a
breakdown of goodwill by cash generating unit (CGU) at carrying amounts.
Goodwill per cash generating unit
€ million 31 Mar 2023 30 Sep 2022
Northern Region 1,193.4 1,204.7
Central Region 502.3 502.5
Western Region 412.3 412.3
Riu 343.1 343.1
Marella Cruises 290.1 288.8
TUI Musement 167.0 171.4
Other 46.7 47.8
Total 2,954.9 2,970.6
As at 31 March 2023 a risk assessment of the capitalised goodwill was carried out based on updated information
for the current financial year. As part of this assessment, there were no indications that led to a requirement
to perform impairment testing of the capitalised goodwill. In this context, please refer to the section
‘Accounting and measurement methods’.
10. Property, plant and equipment
Compared to 30 September 2022 property, plant and equipment increased by €79.1m to €3,480.0m. Additions of
€270.7m included €113.3m of acquisitions in the Hotels & Resorts segment. The construction of a new hotel on
Mauritius, the acquisition of land on Jamaica and the renovation of hotels in Mexico and Cape Verde led to
additions in the Riu Group totalling €100.3m. In addition, advance payments of €59.7m were made for the future
delivery of additional aircraft. Additions to assets under construction of €34.2m and to payments on account of
€8.6m relate 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 €12.8m. The reclassification of four aircraft from
right-of-use assets was the result of the exercise of existing purchase options and led to an increase in
property, plant and equipment of €68.8m.
On the other hand, depreciation and amortisation of €127.2m led to a decrease in property, plant and equipment.
Furthermore, plant and equipment decreased by €74.3m due to foreign exchange translation. In the first quarter,
the 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’. Disposals of €28.6m led to a further reduction of property,
plant and equipment and are mainly caused by the disposal of advance payments for future delivery of aircraft
(€24.6m). Due to sale and leaseback transactions, the disposal of these advance payments led to the addition of
right-of-use assets.
11. Right-of-use assets
Compared to 30 September 2022 right-of-use assets decreased by €301.8m to €2,669.7m. Depreciation charged of
€236.7m led to a decrease in right-of-use assets. Furthermore, the foreign exchange translation led to a
decrease in right-of-use assets of €162.2m. The reclassification of four aircraft into property, plant and
equipment led to a further reduction of right-of-use assets by €68.8m (in this context, we refer to the section
‘Property, plant and equipment’). Disposals also reduced the right-of-use assets by €6.5m.
On the other hand, modifications and reassessments of existing lease contracts increased the right-of-use assets
by €102.8m. The increase is mainly due to contract extensions related to leased aircraft (€73.3m), leased travel
agencies (€13.4m) and hotel leases (€12.6). Furthermore, additions totalled €71.9m, of which €60.3m were
attributable to the delivery of two new aircraft and two aircraft engines due to sale and leaseback
transactions.
The corresponding liabilities are explained in the section ‘Lease Liabilities’.
12. Trade and other receivables
The decrease in current trade and other receivables results from reduced security deposits issued to secure
advance payment from customers.
13. Assets held for sale
As at 31 March 2023, the shares in the non-consolidated investment Peakwork AG with a value of €24.0m were
classified as held for sale. The shares were sold in April 2023. The purchase price payment of €24.0m was made
in April 2023.
During the period under review, two aircraft engines with a total value of €31.0m were classified as held for
sale. The sale of the aircraft engines took place in February 2023.
As at the end of the prior financial year, the building at Jet Set House (Crawley) of TUI Airways Limited was
classified as held for sale (€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 €22.6m to €623.9m compared to the
end of the previous financial year.
The overfunding of funded pension plans reported in other non-financial assets decreased by €46.6m from €163.4m
as at 30 September 2022 to €116.8m as at 31 March 2023.
This development is attributable in particular to remeasurement effects due to increased discount rates in the
UK compared to 30 September 2022.
15. Liabilities from the repurchase of equity instruments
Liabilities from the repurchase of equity instruments relate to the contingent settlement provision to repay
Silent Participation I held by the WSF and the approx. 58.7m warrants on TUI AG shares. As of 31 March 2023, the
liability from the repurchase of equity instruments is carried at amortised cost of €678.4m. Please refer to
section ‘Key judgements, assumptions and estimates’.
16. Financial liabilities
Non-current financial liabilities increased by €914.4m to €2,645.8m compared to 30 September 2022. This increase
was primarily attributable to an increase in liabilities to banks related to credit lines with maturity in July
2024 of €880.9m.
The main financing instrument is a syndicated revolving credit facility (RCF) between TUI AG and the existing
bank-ing syndicate which from 2020, included the KfW. The volume of this revolving credit facility totals
€3.555bn at 31 March 2023.
At 31 March 2023, the amounts drawn under the revolving credit facilities totalled €1,437.8m (30 September 2022
€562.0m).
Current financial liabilities increased by €28.5m to €348.4m at 31 March 2023 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’.
17. Lease liabilities
Compared to 30 September 2022, the lease liabilities decreased by €372.9m to €2,834.6m. Payments of €441.8m led
to a decline in lease liabilities. Furthermore, lease liabilities decreased by €194.4m due to foreign exchange
translation. On the other hand, changes and remeasurements of existing leases resulted in an increase in lease
liabilities of €98.5m, of which €73.2m mainly relate to lease extensions on aircraft. In addition, the lease
liabilities increased by €85.1m due to interest charges. Furthermore, additions from newly leased contracts led
to an increase in lease liabilities of €80.0m, of which €50.2m relate to the addition of two new aircraft and
€18.4m to the addition of two aircraft engines.
18. Other financial liabilities
The other financial liabilities include touristic advance payments received for tours cancelled because of
COVID-19 restrictions of €13.2m (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.
19. Changes in equity
Overall, equity decreased by €1,566.8m when compared to 30 September 2022, from €645.7m to €-921.1m.
For the Silent Participation I, a coupon for financial year 2022 in the amount of €16.8m was paid to the WSF in
December 2022 and reported in line Coupon on silent participation.
In accordance with the Annual General Meeting resolution on 14 February 2023, TUI AG's share capital of
€1,785.2m, divided into 1,785,205,853 no-par value registered shares with a proportionate amount of the share
capital of €1.00 per no-par value share, was reduced by combining the shares in a ratio of 10:1. The capital
stock was therefore reduced in February by €1,606.7m to €178.5m by means of a transfer to the capital reserve.
The capital reserve increased accordingly by €1,606.7m.
With the resolution to carry out a rights issue in March 2023, Silent Participation I was revalued at its
carrying amount of €420m and warrants issued to WSF were revalued at their carrying amount of €34.5m in equity
at the present value of the repurchase price. The difference between the carrying amounts and the present values
reduced retained earnings by €222.8m. Following their valuation, Silent Participation I and the warrants were
reclassified to current liabilities as ‘Liabilities from the repurchase of equity instruments’. For detailed
explanations, please refer to section ‘Key judgements, assumptions and estimates’.
In the first six months of the financial year 2023, TUI AG paid no dividend (previous year: no dividend).
The Group loss in the first six months of the financial year 2023 is mainly caused by the seasonality of the
tourism business.
The fair value profit of €23.7m on investments in equity instruments designated as at Fair value through other
comprehensive income contains a write-up without effect on profit and loss in the amount of €23.2m for the
shares of the non-consolidated investment Peakwork AG which was classified as held for sale as at 31 March 2023.
For detailed explanations, please refer to section ‘Assets held for sale’.
The proportion of gains and losses from hedging instruments for effective hedging of future cash flows includes
an amount of €-176.2m (pre‑tax) carried under other comprehensive income in equity outside profit and loss
(previous year €61.7m).
The revaluation of pension obligations is also recognised under other comprehensive income directly in equity
without effect on profit and loss.
20. Financial instruments
Carrying amounts and fair values according to classes and measurement categories according to IFRS 9 as at 31
Mar 2023
Category according to IFRS 9
Fair value with no Fair value with Fair value Fair value of
€ million Carrying At amortised effect on profit no effect on through financial
amount cost and loss without profit and loss profit and instruments
recycling with recycling loss
Assets
Trade receivables
and other
receivables
thereof
instruments within 987.6 951.3 - - 36.3 982.0
the scope of
IFRS 9
thereof
instruments within 6.8 - - - - 7.2
the scope of
IFRS 16
Derivative
financial
instruments
Hedging 17.9 - - 17.9 - 17.9
transactions
Other derivative
financial 23.0 - - - 23.0 23.0
instruments
Other financial 66.1 56.3 8.9 - 0.9 62.9
assets
Cash and cash 1,575.9 1,575.9 - - - 1,575.9
equivalents
Liabilities
Financial 2,994.2 2,994.2 - - - 2,734.1
liabilities
Liabilities from
the repurchase of 678.4 678.4 - - - 674.1
equity instruments
Trade payables 2,013.7 2,013.7 - - - 2,013.7
Derivative
financial
instruments
Hedging 117.8 - - 117.8 - 117.8
transactions
Other derivative
financial 43.9 - - - 43.9 43.9
instruments
Other financial 123.1 123.1 - - - 123.1
liabilities
Carrying amounts and fair values according to classes and measurement categories according to IFRS 9 as at 30
Sep 2022
Category according to IFRS 9
Fair value with no Fair value with Fair value Fair value of
€ million Carrying At amortised effect on profit no effect on through financial
amount cost and loss without profit and loss profit and instruments
recycling with recycling loss
Assets
Trade receivables
and other
receivables
thereof
instruments within 1,133.8 1,027.3 - - 106.5 1,124.5
the scope of
IFRS 9
thereof
instruments within 9.6 - - - - 9.9
the scope of
IFRS 16
Derivative
financial
instruments
Hedging 124.4 - - 124.4 - 124.4
transactions
Other derivative
financial 134.7 - - - 134.7 134.7
instruments
Other financial 96.4 85.9 9.6 - 0.9 90.5
assets
Cash and cash 1,736.9 1,736.9 - - - 1,736.9
equivalents
Liabilities
Financial 2,051.3 2,051.3 - - - 1,656.7
liabilities
Trade payables 3,316.5 3,316.5 - - - 3,316.5
Derivative
financial
instruments
Hedging 27.0 - - 27.0 - 27.0
transactions
Other derivative
financial 33.7 - - - 33.7 33.7
instruments
Other financial 177.4 177.4 - - - 177.4
liabilities
The amounts shown in the column ‘carrying amount’ (as shown in the balance sheet) in the tables above can differ
from those in the other columns of a particular row since the latter include all financial instruments. That is
the latter columns include financial instruments which are part of disposal groups according to IFRS 5. In the
balance sheet, financial instruments, which are part of a disposal group, are shown as separate items. If such
financial instruments are included, further details on these financial instruments are explained in the section
‘Assets held for sale’.
The instruments measured at fair value through other comprehensive income (OCI) within the other financial
assets class are investments in companies based on medium to long-term strategic objectives. Recording all
short-term fluctuations in the fair value in the income statement would not be in line with TUI Group's
strategy; these equity instruments were, therefore, designated as at fair value through OCI.
In the period under review, the fair values of current other receivables, current other financial assets and
current liabilities to banks were determined in line with the past financial year, taking account of yield
curves and the respective credit risk premium (credit spread). As a result, the assumption that the carrying
amount approximately corresponds to the fair value due to the short remaining term has been adjusted to the
current market conditions due to the COVID-19 pandemic.
The fair values of non-current trade receivables and other receivables correspond to the present values of the
cash flows associated with the assets, taking account of current interest parameters which reflect market and
counterparty-related changes in terms and expectations. In the case of cash and cash equivalents, current trade
receivables, current trade payables and other financial liabilities the carrying amount approximates the fair
value due to the short remaining term.
The COVID-19 pandemic significantly impacted TUI's business operations, causing a strong increase in TUI's
credit risk premiums. The significant increase in TUI’s credit risk has a direct impact on the effectiveness of
hedging relationships according to IAS 39 and explicitly on the retrospective hedge effectiveness test, because
when calculating retrospective effectiveness, the credit risk is included in the derivative instrument entered
into with the counterparty, but not in the hypothetical derivative. As a result, fuel price, interest rate and
currency hedges had to be de-designated as they no longer met the effectiveness requirements of IAS 39. All
future changes in the value of these de-designated hedges are also taken to the cost of sales respectively in
the financial result in the case of interest rate hedges in the income statement through profit and loss and
recognised as other derivative financial instruments from the date of the termination of the cash flow hedge
accounting.
For all fuel price hedges contracted from 1 January 2023, the retrospective effectiveness will be determined,
based on regression analysis. For fuel price hedges contracted until 31 December 2022, the dollar offset method
will continue to be applied. This change in method allows hedge relationships to be presented more
appropriately, so that as at 31 March 2023, no newly contracted fuel price hedges have to be de-designated.
Furthermore, from 31 March 2023, the designation of the hedged item for foreign currency hedges will be
evaluated on a seasonal basis, while in the previous periods it was done on a monthly basis. Due to the COVID-19
pandemic and its impact on the business operations of TUI, the seasonal consideration of the hedge ratio of
foreign currency hedges was temporarily suspended. The resumption of seasonal consideration corresponds to the
risk profile of the operational group companies for which these hedge instruments are contracted.
As at 31 March 2023, the fair value of these reclassified fuel price hedges totalled €-7.4m at a nominal volume
of €135.7m, while the fair value of the interest rate hedges amounted to €+4.1m at a nominal volume of €237.9m
and the fair value of foreign currency hedges totalled €+2.9m at a nominal volume of €36.9m.
Aggregation according to measurement categories under IFRS 9 as at 31 Mar 2023
€ million Carrying amount of financial instruments Fair Value
Total
Financial assets
at amortised cost 2,583.5 2,574.7
at fair value – recognised directly in equity without 8.9 8.9
recycling
at fair value – through profit and loss 60.2 60.2
Financial liabilities
at amortised cost 5,809.4 5,545.0
at fair value – through profit and loss 43.9 43.9
Aggregation according to measurement categories under IFRS 9 as at 30 Sep 2022
€ 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 Mar 2023
Fair value hierarchy
€ million Total Level 1 Level 2 Level 3
Assets
Other receivables 36.3 - - 36.3
Other financial assets 9.8 - - 9.8
Derivative financial instruments
Hedging transactions 17.9 - 17.9 -
Other derivative financial instruments 23.0 - 23.0 -
Liabilities
Derivative financial instruments
Hedging transactions 117.8 - 117.8 -
Other derivative financial instruments 43.9 - 43.9 -
Hierarchy of financial instruments measured at fair value as at 30 Sep 2022
Fair value hierarchy
€ 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 - 24.0
payment - 70.7 -
reclass to Assets Held For Sale - - 24.0
Total gains or losses for the period 0.5 23.7
recognised through profit and loss 0.5 -
recognised in other comprehensive income - 23.7
Foreign currency effects - - 0.4
Balance as at 31 Mar 2023 36.3 9.8
Evaluation process
The fair value of financial instruments in level 3 has been determined by TUI Group's financial department using
the discounted cash flow method. This involves the market data and parameters required for measurement being
compiled or validated. Non-observable input parameters are reviewed based on internally available information
and updated if necessary.
In principle, the unobservable input parameters relate to the following parameters: the (estimated) EBITDA
margin is in a range between -5.9 % and 27.3 % (30 September 2022: 8.3 % and 24.0 %). The constant growth rate
is 1 % (30 September 2022: 1 %). The weighted average cost of capital (WACC) is 10.6 % (30 September 2022: 9.5
%-11.3 %). Due to materiality, no detailed figures have been provided. With the exception of the WACC, there is
a positive correlation between the input factors and the fair value.
The decrease of the fair values of the Other financial assets in Level 3 results from a valuation effect in the
amount of €23,7m, the reclassification of shares in Peakwork AG to assets held for sale (€24.0m) and foreign
exchange rate effects in the amount of €-0.4m.
The Other receivables according to IFRS 9 in Level 3 at a carrying amount of €36.3m as at 31 March 2023 (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
(3.69 %, 30 September 2022: 1.99 to 2.87 %). Gross operating profit is defined as total revenue minus operating
expenses. The cash flows from the contractual claims set out in the underlying Memorandum of Understanding
depend solely on a number of contractually determined Riu hotels delivering the gross operating profit for
calendar year 2023.
The variable purchase price payment varies as a function of delivering the contractually fixed gross operating
profit. The maximum amount is limited. At least 90 % of the target gross operating profit contractually agreed
for 2023 has to be achieved in order to generate a variable purchase price payment. If the 90 % target is not
met, no further purchase price payment will be made. The maximum purchase price payment totals €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
€-24.6m (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.
21. Contingent liabilities
As at 31 March 2023, contingent liabilities amounted to €85.4m (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.
22. Other financial commitments
Nominal values of other financial commitments
€ million 31 Mar 2023 30 Sep 2022
Order commitments in respect of capital expenditure 2,204.8 2,291.4
Other financial commitments 130.6 129.2
Total 2,335.4 2,420.6
As at 31 March 2023 order commitments in respect of capital expenditure decreased by €86.6m as against
30 September 2022.
The decrease in order commitments is largely attributed to a decline in aircraft obligations. Delivery of
aircraft and the effects of foreign exchange for order commitments denominated in non-functional currencies is
to a greater extent partially offset by new aircraft orders undertaken in the period. In addition, new projects
for hotel development were undertaken by Hotels & Resorts segment.
23. Note to the unaudited condensed consolidated Cash Flow Statement
The cash flow statement shows the flow of cash and cash equivalents on the basis of a separate presentation of
cash inflows and outflows from operating, investing and financing activities. The effects of changes in the
group of consolidated companies and of foreign currency translation are eliminated.
In the period under review, cash and cash equivalents decreased by €161.0m to €1,575.9m.
In H1 2023, the cash outflow from operating activities totalled €284.4m (H1 2022 cash outflow of €439.8m),
including an inflow of €13.8m (H1 2022 €2.8m) from interest payments and €2.8m (H1 2022 €0.1m) from dividends
received from companies measured at equity. Income tax payments resulted in a cash outflow of €50.4m (H1 2022
€10.1m).
The total cash outflow from investing activities totalled €219.4m (H1 2022 cash outflow of €136.5m). This amount
included a cash outflow for capital expenditure on property, plant and equipment and intangibles of €364.8m. The
Group recorded a cash inflow of €74.1m 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. and €3.0m from the sale of Karisma Hotels Caribbean S.A., effected in financial year 2021. A
cash inflow of €2.1m resulted from the sale of money market funds, €3.5m was spent on the purchase.
The cash inflow from financing activities totalled €355.6m (H1 2022 cash outflow of €363.6m).
In the financial year under review, TUI AG increased its syndicated credit facility by €878.8m. Other TUI Group
companies took out loans worth €176.1m. A cash outflow of €453.7m resulted from the redemption of financial
liabilities, including an amount of €362.1m for lease liabilities. Interest payments resulted in a cash outflow
of €227.8m. 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 €12.8m (H1 2022 increase by €3.2m) due to changes in
exchange rates.
As at 31 March 2023 cash and cash equivalents worth €646.9m 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 €67.6m 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 €463.2m (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.
24. Reporting segments
Revenue by segment for the period from 1 Oct 2022 to 31 Mar 2023*
€ million External Group H1 2023 Total
Hotels & Resorts 429.2 313.7 742.9
Cruises 257.1 - 257.1
TUI Musement 290.0 110.3 400.3
Consolidation - - 0.2 - 0.2
Holiday Experiences 976.4 423.7 1,400.1
Northern Region 2,534.6 168.7 2,703.3
Central Region 2,375.9 41.0 2,416.9
Western Region 1,012.6 74.1 1,086.7
Consolidation - - 272.1 - 272.1
Markets & Airlines 5,923.2 11.6 5,934.8
All other segments 3.9 2.7 6.6
Consolidation - - 438.1 - 438.1
Total 6,903.4 - 6,903.4
Revenue by segment for the period from 1 Oct 2021 to 31 Mar 2022*
€ million External Group H1 2022 Total
Hotels & Resorts 379.3 145.3 524.6
Cruises 75.5 - 75.5
TUI Musement 145.6 63.7 209.3
Consolidation - - 2.0 - 2.0
Holiday Experiences 600.4 207.0 807.4
Northern Region 1,500.2 155.6 1,655.8
Central Region 1,610.8 38.3 1,649.1
Western Region 782.2 70.7 852.9
Consolidation - - 260.2 - 260.2
Markets & Airlines 3,893.2 4.4 3,897.6
All other segments 4.0 2.3 6.3
Consolidation - - 213.7 - 213.7
Total 4,497.6 - 4,497.6
*Due to the re-segmentation of Future Markets from All other segments to Hotels & Resorts, TUI Musement and
Central Region in the current financial year, previous periods have been adjusted.
The segment data shown are based on regular internal reporting to the Executive Board. Since the 2020 fiscal
year, the internationally more commonly used earnings measure "underlying EBIT" is used for value-based
management.
Accordingly, this represents the segment performance indicator within the meaning of IFRS 8.
We define the EBIT in underlying EBIT as earnings before interest, income taxes and result from the measurement
of the Group's interest rate hedging instruments. Impairment losses on goodwill are by definition included in
EBIT.
Underlying EBIT has been adjusted to exclude certain items which, due to their size and frequency of occurrence,
make it difficult or distort the assessment of the operating performance of the business areas and the Group.
These items include gains and losses on the disposal of financial assets, significant gains and losses on the
disposal of assets and significant restructuring and integration expenses. In addition, all effects from
purchase price allocations, incidental acquisition costs and contingent purchase price payments are adjusted.
Impairment losses on goodwill have also been eliminated in the reconciliation to underlying EBIT.
In H1 2023, underlying EBIT includes results of investments accounted for using the equity method of €74.0m
(H1 2022 €-35.6m). For a split up by segments, please refer to Note 6 ’Share of result of investments accounted
for using the equity method’.
Underlying EBIT by segment*
€ million H1 2023 H1 2022
Hotels & Resorts 149.7 84.8
Cruises 15.0 - 105.3
TUI Musement - 26.2 - 31.5
Holiday Experiences 138.4 - 51.9
Northern Region - 269.5 - 352.6
Central Region - 131.1 - 82.8
Western Region - 102.9 - 89.4
Markets & Airlines - 503.2 - 524.7
All other segments - 30.6 - 26.8
Total - 395.3 - 603.5
Due to the re-segmentation of Future Markets from All other segments to Hotels & Resorts, TUI Musement and
Central Region in the current financial year, previous periods have been adjusted.
Impairment on other intangible assets, property, plant and equipment and right of use assets
€ million H1 2023 H1 2022
Hotels & Resorts 3.3 -
Holiday Experiences 3.3 -
Northern Region 1.6 1.6
Central Region - 1.3
Western Region - -
Markets & Airlines 1.6 2.9
All other segments - 0.2
Total 4.9 3.1
Reconciliation to underlying EBIT of TUI Group
€ million H1 2023 H1 2022
Earnings before income taxes - 648.8 - 871.0
plus: Net interest expenses (excluding expense / income from measurement of interest hedges) 233.1 253.8
plus: (Income) expense from measurement of interest hedges 9.5 2.7
EBIT - 406.3 - 614.5
Adjustments:
less: Separately disclosed items - 1.7 - 3.3
plus: Expense from purchase price allocation 12.7 14.3
Underlying EBIT - 395.3 - 603.5
Net income for separately disclosed items of €1.7m included €3m income from the release of restructuring
provisions no longer needed in Northern Region, €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 €3m
restructuring expenses in All Other Segments and €1m subsequent purchase price adjustments in the Hotels &
Resorts segment.
Net income for the separately disclosed items of €3.3m in H1 2022 include income of €22m from the sale of the
shares in Nordotel S.A, fully consolidated in the Hotels & Resorts segment, to Grupotel S.A., a joint venture of
the TUI Group and €2m from the reversal of an impairment on the Group’s office building. In addition,
restructuring expenses in the Central Region (€17m) and All Other Segments (€4m) segments were adjusted.
Expenses for purchase price allocations of €12.7m (previous year €14.3m) relate in particular to the scheduled
amortisation of intangible assets from acquisitions made in previous years.
25. Related parties
Apart from the subsidiaries included in the Interim Financial Statements, TUI AG, in carrying out its business
activities, maintains direct and indirect relationships with related parties. All transactions with related
parties were executed on an arm’s length basis.
Detailed information on related parties is provided under section 50 in the Notes to the consolidated financial
statements 2022.
26. Significant transactions after the balance sheet date
The capital increase from authorised capital, resolved by the Executive Board of TUI AG on 24 March 2023, became
effective on 19 April 2023 upon registration with the commercial registers of Berlin and Hanover. The issuance
of 328,910,448 new shares with a proportionate amount of €1 of the share capital caused an increase in
subscribed capital of €328.9m. The difference of €1,498.1m between that amount and the gross proceeds from the
capital increase of €1,827.0m was transferred to the capital reserve. The ancillary costs of the capital
increase, expected to amount to €65.7m, will be offset against the capital reserve.
Following receipt of the proceeds from the capital increase on 24 April 2023, Silent Participation I and the
around 56.8m warrants held by the WSF as well as the outstanding 587 of the 2020/2026 bonds with warrants were
fully redeemed. For Silent Participation I and the 2023 coupon payable on it, a redemption price of €651.6m was
paid. €30.8m were used for the repurchase of the warrants and further €61.9m for the early redemption of the 587
bonds with a nominal value of €58.7m, including accrued interest of €3.2m.
At the same time, the early repayment penalty for Silent Participation II of €5.7m, agreed with the WSF in April
2022, became due. TUI has thus terminated and repaid all stabilisation measures of the WSF.
In summary, the capital increase, the repurchase of Silent Participation I and the warrants, which are presented
as repurchase of equity instruments on the balance sheet, and the repurchase of the bonds and the early
repayment penalty, which are presented within current financial liabilities, have the following effects on the
balance of equity and liabilities before capital increase and repurchase respectively:
Effect of the capital increase and repurchase
€ million prior Capital increase / afterwards
Repurchase
Subscribed capital 178.5 328.9 507.4
Capital reserves 7,658.0 1,432.4 9,090.4
Equity - 921.1 1,761.3 840.1
Liabilities from the repurchase of equity instruments 682.4 - 682.4 -
Current financial liabilities 348.0 - 67.6 280.4
Moreover, TUI AG reduced the volume of the KfW credit facility from €2.1bn to €1.1bn following completion of the
capital increase.
With repurchase of the Silent Participation I and the warrants the terms and conditions related to them and
which TUI AG has to comply with ceased. Accordingly after the repurchase the WSF is no longer a related party.
On 1 May 2023 the associate Sunwing Travel Group Inc., Canada, sold its tourism business in Canada and USA to
the WestJet Group, Canada. The consideration comprised variable components and shares in WestJet Group. The
determination of the fair value of these components have not been finalized yet.
Responsibility Statement
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial
reporting and in the accordance with (German) principles of proper accounting, the interim consolidated
financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss
of the Group, and the interim Group management report includes a fair review of the development and performance
of the business and the position of the Group, together with a description of the principal opportunities and
risks associated with the expected development of the Group for the remaining months of the financial year.
The Executive Board
Hanover, 8 May 2023
Sebastian Ebel
David Burling
Mathias Kiep
Peter Krueger
Sybille Reiss
Review Report
To TUI AG, Berlin/Germany and Hanover/Germany
We have reviewed the condensed interim consolidated financial statements – comprising the condensed income
statement, the condensed statement of comprehensive income, the condensed statement of financial position, the
condensed statement of changes in equity, the condensed statement of cash flows as well as selected explanatory
notes to the consolidated financial statements – and the interim Group management report for the period from
1 October 2022 until 31 March 2023 of TUI AG, Berlin and Hanover, which are part of the half-year financial
report under § 115 WpHG (Wertpapierhandelsgesetz: German Securities Trading Act). The preparation of the
condensed interim consolidated financial statements in accordance with the International Financial Reporting
Standards (IFRS) applicable to interim financial reporting as adopted by the EU, and of the interim Group
management report in accordance with the requirements of the WpHG applicable to interim Group management reports
is the responsibility of the entity’s executive board. Our responsibility is to issue a review report on the
condensed interim consolidated financial statements and on the interim Group management report based on our
review.
We conducted our review of the condensed interim consolidated financial statements and of the interim Group
management report in compliance with the German Generally Accepted Standards for the Review of Financial
Statements promulgated by the Institut der Wirtschaftsprüfer (IDW) and in supplementary compliance with the
International Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the
Independent Auditor of the Entity”. Those standards require that we plan and perform the review to obtain a
limited level of assurance to preclude through critical evaluation that the condensed interim consolidated
financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to
interim financial reporting as adopted by the EU or that the interim Group management report has not been
prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim Group
management reports. A review is limited primarily to inquiries of personnel of the entity and to analytical
procedures applied to financial data and thus provides less assurance than an audit. Since, in accordance with
our engagement, we have not performed an audit, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the condensed interim
consolidated financial statements of TUI AG, Berlin and Hanover, have not been prepared, in material respects,
in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim
Group management report has not been prepared, in material respects, in accordance with the requirements of the
WpHG applicable to interim Group management reports.
Hanover/Germany, 9 May 2023
Deloitte GmbH
Wirtschaftsprüfungsgesellschaft
Annika Deutsch Elmar Meier
German Public Auditor German Public Auditor
Cautionary statement regarding forward-looking statements
The present Half-Year Financial Report contains various statements relating to TUI Group’s and TUI AG’s future
development. These statements are based on assumptions and estimates. Although we are convinced that these
forward-looking statements are realistic, they are not guarantees of future performance since our assumptions
involve risks and uncertainties that could cause actual results to differ materially from those anticipated.
Such factors include market fluctuations, the development of world market prices for commodities and exchange
rates or fundamental changes in the economic environment. TUI does not intend to and does not undertake any
obligation to update any forward-looking statements in order to reflect events or developments after the date of
this Report.
Financial calendar
Date
Half-Year Financial Report H1 2023 10 May 2023
Interim Financial Report Q3 2023 14 August 2023
Trading Update September 2023
Annual Report 2023 December 2023
Contacts
Nicola Gehrt
Group Director Investor Relations
Tel: + 49 (0)511 566 1435
Adrian Bell
Senior Manager Investor Relations
Tel: + 49 (0)511 2332
James Trimble
Investor Relations Manager
Tel: +44 (0)1582 315 293
Stefan Keese
Investor Relations Manager
Tel: + 49 (0)511 566 1387
Anika Heske
Junior Investor Relations Manager
Tel: + 49 (0)511 566 1425
TUI AG
Karl-Wiechert-Allee 4
30625 Hannover
Tel: + 49 (0)511 566 00
www.tuigroup.com
This Half-Year Financial Report, the presentation slides and the video webcast for H1 2023 (published on 10 May
2023) are available at the following link: 25 www.tuigroup.com/en-en/investors
════════════════════════════════════════════════════════════════════════════════════════════════════════════════
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
════════════════════════════════════════════════════════════════════════════════════════════════════════════════
ISIN: DE000TUAG505
Category Code: IR
TIDM: TUI
LEI Code: 529900SL2WSPV293B552
OAM Categories: 1.2. Half yearly financial reports and audit
reports/limited reviews
Sequence No.: 242495
EQS News ID: 1628485
End of Announcement EQS News Service
══════════════════════════════════════════════════════════════════════════
26 fncls.ssp?fn=show_t_gif&application_id=1628485&application_name=news&site_id=reuters8
References
Visible links
1. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536492
2. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536493
3. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536494
4. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536495
5. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536496
6. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536497
7. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536498
8. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536499
9. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536500
10. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536501
11. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536502
12. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536503
13. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536504
14. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536505
15. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536506
16. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536507
17. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536508
18. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536509
19. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536510
20. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536511
21. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536512
22. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536513
23. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536514
24. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_46BOTaoz.html#_Toc134536515
25. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=8e080343e3e3e5bb48431aa13ff7cbdd&application_id=1628485&site_id=reuters8&application_name=news
============Recent news on TUI AG
See all newsREG - Official List TUI AG - Removal - TUI AG
AnnouncementREG - Stock Exch Notice TUI AG - Cancellation - TUI AG
AnnouncementREG-TUI AG TUI AG: Release according to Article 40, Section 1 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution
AnnouncementREG-TUI AG TUI AG: Release according to Article 40, Section 1 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution
AnnouncementREG-TUI AG TUI AG: Release according to Article 40, Section 1 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution
Announcement