credit-holders as well as other stakeholders. The primary objectives of the Group are as follows: 
 
· Ensuring sufficient liquidity for the Group 
 
· Profitable growth and a sustainable increase in TUI Group's value 
 
· Strengthening our cash generation allowing to invest, pay dividends and strengthen the balance sheet 
 
· Maintaining sufficient debt capacity and an at least unchanged credit rating 
 
In financial year 2020, the travel restrictions triggered by the COVID-19-pandemic had a strong negative impact on the Group's earnings 
and liquidity development from the end of the second quarter onwards. Due to the reasons described above, the TUI Group had a liquidity 
requirement in financial year 2020 that was significantly higher than the cash inflows resulting from current operations and the existing 
unused credit lines, despite the initiated savings measures. In order to close these liquidity gaps, additional credit lines totaling 
&euro 2.85 bn were granted in addition to the cost-cutting and payment deferral measures initiated within the Group and regional support 
measures in various countries. 
 
The support and stabilization package is described in detail in the section on going concern reporting in accordance with the UK 
Corporate Governance Code, page 152. 
 
Management variables used in capital management to measure and control the above objectives are Return On Invested Capital (ROIC) and the 
leverage ratio, presented in the table below. 
 
The TUI Group applies IFRS 16 as of 1 October 2019. The figures for the comparative prior-year period have not been adjusted. Starting in 
the 2020 financial year, we therefore calculate the leverage ratio in a slightly modified form as the ratio of gross financial debt (+ 
&euro 4,269.0 m) + lease liabilities (+ &euro 3,399.9 m) + recognized obligations from defined benefit pension plans (+ &euro 651.7 m) to 
reported EBITDA (IFRS 16) (- &euro 1,355.0 m). In the financial year, EBITDAR (IAS 17) amounted to - &euro 1,436.0 m. 
 
In the previous year, it was calculated as follows: The leverage ratio was calculated as the ratio of gross ­financial debt (+ &euro 
2,682.2 m) + discounted financial obligations from operating rental, lease and charter agreements (+ &euro 2,579.6 m) + recognized 
obligation from defined benefit pension plans (+ &euro 758.0 m) calculated on the basis of the reported EBITDAR (IAS 17) (&euro 1,990.4 
m). 
 
Due to the negative EBITDA, the negative leverage ratio calculated for financial year 2020 is not a meaningful indicator. Our medium-term 
objective is to return to a leverage ratio of below 3.0x. 
 
TUI Group's financial and liquidity management for all Group subsidiaries is centrally operated by TUI AG, which acts as the Group's 
internal bank. Financing and refinancing requirements, derived from the multi-year finance budget, are satisfied by the timely conclusion 
of appropriate financing instruments. The short-term liquidity reserve is safeguarded by syndicated credit facilities, bilateral bank 
loans and liquid funds. Moreover, through intra-Group cash pooling the cash surpluses of individual Group companies are used to finance 
the cash requirements of other Group companies. 
 
Key figures of capital risk management 
&euro million                      2020           2019 
                                                  adjusted 
? Invested Capital                 7,134.8        5,777.6 
Underlying EBIT (IAS 17)           - 3,032.8      893.5 
ROIC (IAS 17)                      - 42.5 %       15.5 % 
 
Leverage Ratio (IFRS 16) (Previous - 6.1          3.0 
year IAS 17) 
 
Reconciliation to EBITDAR (IAS 17) 
&euro million                          2020         2019 
                                                    adjusted 
EBIT (IFRS 16, previous year IAS 17) * - 2,927.4    768.7 
Amortisation (+) / write-backs (-) of  1,504.4      - 
other intangible assets and 
depreciation (+) / write-backs (-) of 
property, plant and equipment (IFRS 
16) 
Impairment of goodwill (IFRS 16)       68.1         - 
Amortisation (+) / write-backs (-) of  -            508.8 
other intangible assets and 
depreciation (+) / write-backs (-) of 
property, plant and equipment (IAS 17) 
EBITDA (IFRS 16)                       - 1,355.0    - 
Adjustments IAS 17 / IFRS 16 (IFRS 16  - 645.5      - 
impact) 
EBITDA (IAS 17)                        - 2,000.5    1,277.5 
Long-term rental, leasing and leasing  564.5        712.9 
expenses (IAS 17) 
EBITDAR (IAS 17)                       - 1,436.0    1,990.4 
 
* The reconciliation from EBIT (IFRS 16) to earnings before income taxes is shown in the segment reporting. 
 
Notes on the 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. Having transitioned to IFRS 16, all leases are carried as right-of-use assets and lease liabilities in the 
statement of financial position. As a result, most payments for leases are no longer carried in the cash outflow from operating 
activities, but in the cash outflow from financing activities as interest payments and repayments of lease liabilities. 
 
In the period under review, cash and cash equivalents declined by &euro 514.5 m to &euro 1,233.1 m. The balance sheet item 'Assets held 
for sale' does not include any cash and cash equivalents (previous year &euro 6.1 m). 
 
(42) Cash outflow / cash inflow from operating activities 
 
Based on the Group result after tax, the cash flow from operating activities is derived using the indirect method. In the completed 
financial year, the cash outflow from operating activities totalled &euro - 2,771.9 m (previous year &euro+ 1,114.9 m). The cash outflow 
includes interest payments of &euro 25.1 m (previous year &euro 37.8 m) and dividends of &euro 7.7 m (previous year &euro 245.8 m). 
Income tax payments resulted in a cash inflow of &euro 56.1 m (previous year &euro - 117.5 m). 
 
(43) Cash inflow / cash outflow from investing activities 
 
In financial year 2020, the cash inflow from investing activities totalled &euro 161.8 m (previous year &euro - 1,141.4 m). This amount 
includes a cash outflow for capital expenditure related to property, plant and equipment and intangible assets of &euro 587.0 m (previous 
year &euro 987.0 m), including &euro 2.5 m for interest capitalised as borrowing costs (previous year &euro 4.0 m). The Group also 
recorded a cash inflow of &euro 109.9 m (previous year &euro 182.0 m) from the sale of property, plant and equipment and intangible 
assets. In addition, investing activities include a cash inflow of &euro 689.3 m in connection with the sale of interests in consolidated 
companies, including &euro 646.0 m for the divestment of Hapag-Lloyd Kreuzfahrten. A cash inflow of &euro 62.5 m was recorded from the 
sale of interests in two associated companies. Further cash outflows relate to the acquisition of a hotel company and several travel 
agencies (&euro 40.8 m), the acquisition of interests in a joint venture (&euro 0.5 m) and capital increases by joint ventures and 
associates (&euro 88.1 m). A cash inflow of &euro 16.6 m related to the termination of short-term interest-bearing investments. 
 
(44) Cash inflow / cash outflow from financing activities 
 
The cash inflow from financing activities totalled &euro 2,112.5 m (previous year outflow of &euro 763.8 m). In the period under review, 
TUI AG recorded a cash inflow of &euro 3,302.4 m from its syndicated credit facility after deduction of capital procurement costs. Other 
TUI Group companies took out loans worth &euro 70.0 m. A cash outflow of &euro 693.8 m was used to repay financial liabilities, including 
&euro 612.4 m for lease liabilities. In the reporting period, a cash outflow of &euro 251.9 m related to interest payments (previous year 
&euro 117.9 m). A cash outflow of &euro 318.1 m related to dividend payments to TUI AG shareholders and a further outflow of &euro 0.6 m 
related to dividend payments to minority share-holders. A cash inflow of &euro 7.1 m resulted from the issue of employee shares. An 
amount of &euro 1.0 m was used to purchase shares transferred to TUI Group employees under the oneShare employee share programme. A 
further cash outflow of &euro 1.6 m related to increasing the stake in a consolidated company. 
 
(45) Development of cash and cash equivalents 
 
Cash and cash equivalents comprise all liquid funds, i. e. cash in hand, bank balances and cheques. 
 
Cash and cash equivalents declined by &euro 17.0 m (previous year &euro 10.1 m) due to foreign exchange effects. 
 
Other Notes 
 
(46) Significant events after balance sheet date 
 
On 12 August 2020, TUI AG and the KfW reached an agreement to increase the tranche of KfW of the existing RCF by &euro 1,050.0 m to &euro 
2,850.0 m. The lenders of the other tranches of the existing RCF agreed as well. Their tranches remain unchanged. The drawing of the 
additional &euro 1,050.0 m is subject to the issuance of a convertible bond to the Economic Stabilisation Fund (WSF) in the amount of 
&euro 150.0 m and a waiver of a financial covenant (interest coverage ratio) by the bondholders of the Senior Notes due in October 2021. 
 
On 1 October 2020 TUI AG issued a warrant bond to the WSF. The warrant bond has an initial term of six years and is split up into 1,500 
bonds. The bond would bear interest at a rate of 9.5 % p. a. TUI AG has a termination right once the &euro 1,050.0 m KfW tranche is 
redeemed and terminated. The bond was used to issue separable warrants. The conversion price per share was set at the minimum amount of 
&euro 2.56. The options have a term of 10 years and can be converted into TUI AG shares at any time. 
 
Until the WSF has sold all warrant bonds to a third party or TUI has satisfied all payment obligations in respect of the warrant bonds

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