11,3 to                     7,74            568.9 to 
Other           3.00         40,3 to 42,3     12,4          1.0           to      3       666.5          662.8 to 778.1 
                                                                          8,80 
* Those are groups of CGUs 
** Growth rate of expected net cash inflows

The goodwill impairment test conducted based on cash generating units as at 31 March 2021 did not result in the recognition of impairment losses on capitalised goodwill. An increase in WACC by 100 basis points would have resulted in an impairment requirement on capitalised goodwill of EUR35.5m for Marella Cruises and of EUR17.9m for Robinson, which are reported under Other. Capitalised goodwill would have to be impaired by an amount of EUR10.9m for Marella Cruises in the event of a 10% decrease in the discounted cash flow. The reduction of the growth rate by 50 basis points would not have led to any goodwill impairment. 10. Property, plant and equipment

Compared to 30 September 2020 property, plant and equipment declined by EUR66.2m to EUR3,396.3m. A decline of EUR158.6m was caused by the disposal of property, plant and equipment which is mainly attributable to aircraft (EUR96.1m) and advance payments for future delivery of aircraft (EUR42.9m) and were partly due to sale and leaseback transactions. As a result of the lease transactions the new aircrafts are reported as additions on right-of-use assets (for details please refer to the section 'Leases'). Further, depreciation and amortisation of EUR120.8m led to a decrease in property, plant and equipment.

The decline was partly offset by additions of EUR147.8m, mainly attributable to additions in the segment Hotels & Resorts. The construction of two new hotels and the refurbishment of hotels in Spain and Jamaica resulted in additions totalling EUR59.8m in the RIU Group. Furthermore additions of property, plant and equipment of EUR44.0m were caused by the acquisition of Karisma (for details please refer to section 'Acquisitions in the financial year').

The review of the carrying amounts of property, plant and equipment performed due to the ongoing travel restrictions resulted in total impairment charges of EUR18.6m, of which EUR17.3m were attributable to property, plant and equipment in the segment Hotels & Resorts and related to various individual items. The impairment charges of EUR18.9m incurred in the first half of the previous year were mainly attributable to the segment Cruises (EUR18.5m). 11. Leases

Right-of-use assets declined by EUR44.6m to EUR3,183.3m compared to the end of financial year. While cumulative depreciation/amortisation amounted to EUR256.5m, additions included in particular an amount of EUR209.2m for six new aircraft as well as EUR20.8m for hotels. Right-of-use assets increased by EUR26.8m due to foreign exchange translation.

Furthermore, disposals of EUR39.7m led to a decrease in right-of-use assets. Disposals of EUR36.5m are mainly attributable to contract adjustments of aircraft.

The review of carrying amounts carried out in connection with the pandemic led to a total impairment of EUR14.0m. The impairment losses include an amount of EUR8.1m on travel shops in the Northern Region. On the other hand, the review of the carrying amounts led to reversal of impairment losses amounting to EUR10.4m, which were mainly attributable to the segment Hotels & Resorts. In the first half of the previous year, there were no impairment gains or losses on right of use assets.

The corresponding liabilities are explained in the section 'Lease Liabilities'. 12. Trade and other receivables

TUI Group and Boeing have agreed on a comprehensive package of measures to offset the consequences of the grounding of the 737 MAX. It provides compensation which covers a significant portion of the financial impact, as well as credits for future aircraft orders. The cash payments will be realised over the next two years, while the income is already partly realized within Cost of Sales in the previous reporting period and will be partly spread over the useful life of those 737 MAX delivered in the future. The respective compensation receivable was included in other receivables. During the first half of the financial year 2021 TUI sold the compensation receivable against Boeing to a third party and thus derecognized it as all criteria for derecognition were met. The sale resulted in a loss, which is presented as a financial expense in the income statement. 13. Assets held for sale

Due to the expected sale a hotel including land was reclassified to assets held for sale in the segment Western Region as at 31 March 2021.

All non-current assets and disposal groups and related liabilities classified as held for sale at 30 September 2020 have been sold in the first half of the financial year 2021. Please refer to the section 'Divestments'. 


Assets held for sale 
 
EUR million                                      31 Mar 2021   30 Sep 2020 
Hotels including land                          3.8           - 
Other assets                                   0.9           1.7 
Aircraft                                       -             42.4 
Investments in joint ventures and associates   -             13.1 
Total                                          4.7           57.2 14. Pension provisions and similar obligations

In the United Kingdom and Germany, there was an increase in the long-term interest rate level as at 31 March 2021 compared to 30 September 2020. The resulting remeasurement effects led to a decrease in both the obligation from pension commitments and the assets of funded pension plans. The decline in assets was greater than the decline in obligations.

Accordingly, the pension provisions for unfunded plans and plans with underfunding increased by EUR42.9m to EUR1,057.9m compared to the end of the financial year.

The overfunding of funded pension plans reported in other non-financial assets decreased by EUR32.3m to EUR331.0m compared to 30 September 2020. 15. Financial liabilities

Non-current financial liabilities rose by EUR887.2m to EUR4,578.9m as against 30 September 2020. This increase was primarily attributable to an increase in liabilities to banks of EUR1,068.7m, partially offset by a decline in liabilities from bonds of EUR181.5m. This reflects the fact that TUI AG issued a warrant bond totalling EUR150.0m on 1 October 2020 in the framework of the financing package from the German government, exclusively subscribed to by the Economic Stabilisation Fund (ESF). While the bond component of the warrant bond is shown under financial liabilities, the warrants are recognised in equity. Meanwhile, TUI's Senior Notes bond issued on 26 October 2016 with a nominal amount of EUR300.0m was redeemed early on 23 February 2021.

The main financing instrument is a syndicated revolving credit facility (RCF) totalling EUR4.6bn between TUI AG and the existing banking syndicate or KfW, respectively, which has joined the banking syndicate.

In addition, there is a separate syndicated revolving credit facility of EUR200.0m.

As at 31 March 2021, the amounts drawn under the revolving credit facilities totalled EUR3,830.0m.

As at 31 March 2021, current financial liabilities declined by EUR308.3m to EUR268.9m from EUR577.3m as at 30 September 2020. The decrease results from a reduction in current liabilities to banks.

For more details on the terms and conditions of the credit lines provided by KfW, please refer to the section "Going Concern Reporting under the UK Corporate Governance Code". 16. Lease liabilities

Compared to 30 September 2020 the lease liabilities decreased by EUR22.0m to EUR3,377.9m. This decrease was due to repayments of EUR361.5m. Offsetting effects were caused by the addition of new lease contracts totalling to EUR265.3m of such mainly relating to new aircrafts and to interest charges of EUR76.4m. 17. Other financial liabilities

The other financial liabilities include touristic advance payments received for tours canceled because of COVID-19 restrictions of EUR284.9m (as at 30 September 2020 EUR351.0m), for which immediate cash refund options exist and which have to be repaid shortly if the customer opts for payment. Please see the following section for more details. 18. Touristic advance payments received

Apart from the immediate cash refund option in certain jurisdictions, TUI Group offers its customers voucher/refund credits for trips canceled because of the COVID-19 crisis. If these voucher/refund credits are not used for future bookings within a specified period, the customer is entitled to a refund of the voucher value. The entitlement to a refund of the voucher value represents a financial liability. Due to the high level of uncertainty regarding the further development of the COVID-19 crisis and customer behavior, it is not possible for TUI Group to reliably estimate the extent of utilization of the voucher/refund credits for future bookings and these amounts are shown within Touristic advance payments received on the statement of financial position.

As at 31 March, also included in touristic advance payments received is EUR79.3m of issued vouchers relating to tours cancelled because of COVID-19 restrictions (as at 30 September 2020 EUR184.8m), which is not due for an immediate refund. 19. Changes in equity

Overall, equity decreased by EUR25.4m to EUR192.7m when compared to 30 September 2020.

In connection with a recapitalisation, TUI Group's subscribed capital was reduced first. On a constant number of EUR590.4m shares the nominal value per share of 2.56 EUR was reduced to 1.00 EUR. In effect the subscribed capital was reduced by EUR919.0m. Subsequently a capital increase by cash contributions was performed which led to an increase in subscribed capital in the amount of the nominal value of 1.00EUR per share, i.e. an increase of the subscribed capital of EUR509.0m.

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