TUI's financial management goals include ensuring sufficient liquidity for TUI AG and its subsidiaries and limiting financial risks from 
fluctuations in currencies, commodity prices and interest rates as well as default risks associated with treasury activities. 
 
Liquidity safeguards 
 
The Group's liquidity safeguards consist of two components: 
 
· In the course of the annual Group planning process, TUI draws up a multi-annual financial budget, from which long-term financing and 
refinancing requirements are derived. This information and financial market observation to identify refinancing opportunities create a 
basis for decision-making, enabling appropriate financing instruments for long-term corporate funding to be adopted at an early stage. 
 
· TUI uses syndicated credit facilities and bilateral bank lines as well as its liquid funds to secure sufficient short-term cash 
reserves. Through intra-Group cash pooling, excess cash of individual Group companies is used to finance the cash requirements of other 
Group companies. A monthly rolling liquidity planning system is the basis for arrangements with banks. The reporting frequency was 
increased to weekly reporting in the wake of the COVID-19 situation. 
 
Limiting financial risks 
 
The Group companies operate on a worldwide scale. This gives rise to financial risks for TUI Group, mainly from changes in exchange 
rates, commodity prices and interest rates. 
 
The key operating financial transaction risks relate to the euro, US dollar, pound sterling and Swedish krona and to changing fuel 
prices. They mainly result from cost items in foreign currencies held by individual Group companies, e. g. hotel procurement, aircraft 
fuel and bunker oil invoices or ship handling costs. 
 
The Group has entered into derivative hedges in various foreign currencies in order to limit its exposure to risks from changes in 
exchange rates. Changes in commodity prices affect TUI Group, in particular, in procuring fuels such as aircraft fuel and bunker oil. 
Most of these price risks related to fuel procurement are hedged by derivative instruments. Where price increases can be passed on to 
customers due to contractual agreements, this is also reflected in our hedging behaviour. 
 
With the onset of the COVID-19-pandemic, TUI had to cease flight and holiday operations for a number of weeks during the period since 
mid-March 2020, and since operations resumed in June 2020 has operated at a much lower capacity. As a direct result, TUI became 
significantly over-hedged from both a currency and a fuel perspective. This had an adverse financial effect on TUI due to the prospective 
termination of the application on hedge accounting. TUI has taken a number of actions to mitigate the effects of over-hedging, including 
the termination of over-hedged currency and fuel positions, and pausing any further hedging of currency and fuel for future requirements. 
Furthermore, the significantly increase of TUI's credit risk has impacted the effectiveness of the remaining hedges regarding their 
application of hedge accounting. In that course, further hedge accounting applications of fuel, interest rates and currency derivative 
instruments had to be terminated. 
 
In order to control risks related to changes in interest rates arising on funding in international money and capital markets and 
investments of liquid funds, derivative interest hedges are used on a case-by-case basis as part of the Group's interest management 
system. 
 
In order to limit default risks from settlement payments for derivatives as well as money market investments with banks and investments 
in money market funds, TUI AG and First Choice Holidays Finance Ltd have defined credit rating criteria for the selection of their 
counterparties. Trading and transaction limits are allocated to these counterparties on the basis of the credit ratings of the major 
rating agencies. The credit ratings and the corresponding limits are regularly reviewed. In the event of fair value changes in 
derivatives or rating changes, new business with these counterparties may temporarily be suspended until the limits can be adequately 
applied again. 
 
The use of derivative hedges is based on underlying transactions; the derivatives are not used for speculation purposes. 
 
More detailed information on hedging strategies and risk management as well as financial transactions and the scope of such transactions 
at the balance sheet date is provided in the Risk Report and the section Financial instruments in the Notes to the consolidated financial 
statements. 
 
See from page 33 or 214. 
 
Capital structure 
 
Capital structure of the Group 
&euro million                  30 Sep 2020 30 Sep 2019 Var. in % 
                                           adjusted 
Non-current assets             12,647.8    11,947.9    + 5.9 
Current assets                 2,693.4     4,270.2     - 36.9 
Assets                         15,341.1    16,218.1    - 5.4 
Subscribed capital             1,509.4     1,505.8     + 0.2 
Capital reserves               4,211.0     4,207.5     + 0.1 
Revenue reserves               - 6,168.8   - 2,259.2   - 173.1 
Non-controlling interest       666.5       711.4       - 6.3 
Equity                         218.1       4,165.6     - 94.8 
Non-current provisions         1,895.7     1,810.6     + 4.7 
Current provisions             421.6       394.3       + 6.9 
Provisions                     2,317.3     2,204.9     + 5.1 
Non-current financial          3,691.7     2,457.6     + 50.2 
liabilities 
Current financial liabilities  577.3       224.6       + 157.0 
Financial liabilities (IFRS    4,269.0     2,682.2     + 59.2 
16) 
Non-current lease liabilities  2,712.6     -           n. a. 
Current lease liabilities      687.3       -           n. a. 
Lease liabilities              3,399.9     -           n. a. 
Other non-current liabilities  503.7       472.6       + 6.6 
Other current liabilities      4,608.6     6,589.5     - 30.1 
Other liabilities              5,112.3     7,062.1     - 27.6 
Debt related to assets held    24.5        103.1       - 76.2 
for sale 
Liabilities                    15,341.1    16,218.1    - 5.4 
 
Capital ratios 
&euro million                  30 Sep 2020 30 Sep 2019 Var. in % 
                                           adjusted 
Non-current capital            9,021.8     8,906.5     + 1.3 
Non-current capital in         58.8        54.9        + 3.9 * 
relation to balance sheet 
total% 
Equity ratio%                  1.4         25.7        - 24.3 * 
Equity and non-current         3,909.8     6,623.2     - 41.0 
financial liabilities 
Equity and non-current         25.5        40.8        - 15.4 * 
financial liabilities in 
relation to 
balance sheet total% 
 
* percentage points 
 
Overall, non-current capital increased by 1.3 % to &euro 9,021.8 m. It accounted for 58.8 % (previous year 54.9 %) of the balance sheet 
total. 
 
The equity ratio was 1.4 % (previous year 25.7 %). Equity and non-current financial liabilities accounted for 25.5 % (previous year 40.8 
%) of the balance sheet total. 
 
Equity 
 
Subscribed capital and the capital reserves rose slightly year-on-year. The increase was driven by the issuance of employee shares. 
Revenue reserves declined by &euro 3.9 bn to &euro - 6.2 bn in the financial year under review. Non-controlling interests accounted for 
&euro 666.5 m of equity. 
 
Provisions 
 
Provisions mainly comprise provisions for pension obligations, tax provisions and provisions for typical operating risks classified as 
current or non-current, depending on expected occurrence. At the balance sheet date, they accounted for a total of &euro 2,317.3 m, up by 
&euro 112.4 m year-on-year. 
 
Financial and lease liabilities 
 
Composition of financial liabilities and lease liabilities 
&euro million                   30 Sep     30 Sep 2019 Var. in % 
                                2020       adjusted 
Bonds                           298.9      297.8       + 0.4 
Liabilites to banks             3,953.7    870.0       + 354.4 
Liabilites from finance leases  -          1,495.2     n. a. 
* 
Other financial liabilities     16.4       19.2        - 14.6 
Financial liabilities           4,269.0    2,682.2     + 59.2 
Lease liabilities               3,399.9    -           n. a. 
 
* Financial liabilities include liabilities from finance leases for the last time as of 30 Sep 2019 
 
Structural changes in financial and lease liabilities 
 
Due to TUI Group's transition to IFRS 16 as of 1 October 2019, TUI no longer has to differentiate between finance and operating leases as 
a lessee. In this context, lease liabilities are presented and explained separately in the statement of financial position and are 
therefore no longer carried in financial liabilities. 
 
Excluding the lease liabilities included in the previous year, non-current financial liabilities increased by &euro 3,082.0 m versus 30 
September 2019 to &euro 4,269.0 m. The increase results almost entirely from an increase in liabilities to banks of &euro 3,083.7 m. 
 
For more detailed information, please refer to the Notes to the consolidated financial statements. 
 
See chapter Financial and lease liabilities, page 207. 
 
Overview of TUI's listed bonds 
 
The table below lists the maturities, nominal volumes and annual interest coupon of the listed bond issued in 2016 with a nominal value 
of &euro 300.0 m and a 5-year term. 
 
Listed bonds 
Capital   Issuance    Maturity  Amount    Amount       Interest 
measures                        initial   outstanding  rate 
                                &euro     &euro        % p. a. 
                                million   million 
Senior    October     October   300.0     300.0        2.125 
Notes     2016        2021 
2016* 
 
* From 1 October 2020, the interest rate is 9.5 % p. a. 
 
The utilisation under the concluded KfW-credit line of &euro 1.05 bn in August 2020 as part of the state aid programme was subject to the 
suspension of a covenant in the &euro 300 m Senior Notes due in 2021, which limits TUI's potential additional financial indebtedness. In

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