As at 31 March 2021, contingent liabilities amounted to EUR162.0m (previous year EUR165.6m). They are mainly attributable to the granting of guarantees for the benefit of hotel and cruises activities and 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 
 
EUR million                                             31 Mar 2021   30 Sep 2020 
Order commitments in respect of capital expenditure   2,548.7       2,549.0 
Other financial commitments                           117.2         212.7 
Total                                                 2,665.9       2,761.7

As at 31 March 2021 order commitment in respect of capital expenditure declined by EUR0.3m as against 30 September 2020. New obligations for a cruise ship was more than off-set by delivery of aircraft and reduction in hotel commitments. 23. Note to the unaudited condensed consolidated cash flow statement of TUI Group

The unaudited condensed consolidated cash flow statement shows TUI Group including the disposal group 'Hapag-Lloyd Cruises' which was sold last year. In transitioning to IFRS 16, basically all leases are carried as right-of-use assets and lease liabilities in the statement of financial position. From the last financial year, the vast majority of payments for leases are therefore no longer shown in the cash outflow from operating activities, but as interest payments and repayments of lease liabilities in the cash outflow from financial activities.

For the six months period ended 31 March 2021, cash and cash equivalents rose by EUR166.7m to EUR1,399.7m.

For the six months period ended 31 March 2021, the cash outflow from operating activities totalled EUR1,476.0m (H1 2020 cash outflow of EUR-728.4m). The cash outflow from operating activities included interest of EUR3.6m (H1 2020 EUR14.2m) and dividends of EUR10.0m (H1 2020 EUR7.3m). Income tax payments resulted in a cash outflow of EUR5.3m (H1 2020 cash outflow of EUR44.7m).

The cash inflow from investing activities totals EUR110.0m (H1 2020 EUR-263.7m). It comprises payments for investments in property, plant and equipment and intangible assets of EUR150.0m. TUI Group recorded a cash inflow of EUR228.1m from the sale of property, plant and equipment and intangible assets. It also includes a cash inflow of EUR32.9m from the sale of Hapag-Lloyd Cruises which was completed in the previous year and EUR19.6m from the repayment of loans in connection with the sale of the shares in Togebi Holdings Limited (TUI Russia). An outflow of EUR21.0m was made for a capital increase for TUI Cruises GmbH.

The cash inflow from financing activities totalled EUR1,511.2m (H1 2020 cash inflow of EUR258.6m). TUI AG received EUR1,489.4m from various equity measures after deducting capital procurement costs. EUR0.5m was used to purchase shares transferred to TUI Group employees in the framework of the oneShare employee share plan. TUI AG received EUR619.5 million from taking out loans and bonds after deducting capital procurement costs. Other TUI Group companies took out loans worth EUR224.7m. The repayment of financial liabilities resulted in a cash outflow of EUR604.7m, including an amount of EUR300.0m for early repayment of TUI AG senior bonds and an amount of EUR290.6m for lease liabilities. A cash outflow of EUR217.2m related to interest payments.

Cash and cash equivalents also increased by EUR21.4m (H1 2020 EUR29.8m) due to changes in exchange rates.

As at 31 March 2021, cash and cash equivalents worth EUR497.5m were subject to restrictions (as at 30 September 2020 EUR324.0m).

On 30 September 2016, TUI AG concluded an agreement on the long-term settlement of the difference between the liabilities and the fund assets of defined-benefit pension plans in the UK. An amount of EUR55.8m was deposited in a bank account as a security as at the balance sheet date. TUI Group can only use these funds if alternative collateral is provided.

Further, an amount of EUR116.5m (as at 30 September EUR116.5m) 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 years 2001 to 2011.

The remaining EUR325.5m (as at 30 September EUR155.4m) subject to restrictions 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 2020 to 31 Mar 2021 
 
EUR million                External     Group       H1 2021 Total 
Hotels & Resorts         83.9         62.9        146.8 
Cruises                  1.5          -           1.5 
TUI Musement             18.6         6.8         25.4 
Consolidation            -            - 0.5       - 0.5 
Holiday Experiences      104.0        69.2        173.2 
Northern Region          159.1        135.1       294.2 
Central Region           337.4        41.0        378.4 
Western Region           102.1        64.7        166.8 
Consolidation            -            - 239.7     - 239.7 
Markets & Airlines       598.6        1.1         599.7 
All other segments       13.6         1.3         14.9 
Consolidation            -            - 71.5      - 71.5 
Total                    716.3        -           716.3 
 
Revenue by segment for the period from 1 Oct 2019 to 31 Mar 2020 
 
EUR million                External     Group       H1 2020 Total 
Hotels & Resorts         300.2        282.2       582.4 
Cruises                  481.6        -           481.6 
TUI Musement             300.4        123.3       423.7 
Consolidation            -            - 3.2       - 3.2 
Holiday Experiences      1,082.2      402.3       1,484.5 
Northern Region          2,187.0      139.6       2,326.6 
Central Region           2,209.9      66.2        2,276.1 
Western Region           1,075.1      78.9        1,154.0 
Consolidation            -            - 276.6     - 276.6 
Markets & Airlines       5,471.9      8.2         5,480.1 
All other segments       84.5         3.9         88.4 
Consolidation            -            - 414.3     - 414.3 
Total                    6,638.7      -           6,638.7

The segment data shown are based on regular internal reporting to the Executive Board. From the 2020 fiscal year, the internationally more commonly used earnings measure "underlying EBIT" is used for value-based management. In the 2020 fiscal year, underlying EBIT was adjusted for the earnings effect of IFRS16 ("adjusted EBIT [IAS17]") as part of internal reporting to facilitate comparability with the prior year. From the 2021 financial year, underlying EBIT (IFRS 16) is the segment performance indicator as defined by IFRS 8, the prior-year figures have been restated accordingly.

We define the EBIT in underlying EBIT as earnings before interest, income taxes and expenses from the measurement of the Group's interest rate hedging instruments. Impairment losses on goodwill are by definition included in EBIT, but are adjusted in the calculation of underlying EBIT.

For the segment performance measure, all Intra-Group leases are accounted for operating rental and leasing contracts in accordance with IAS 17.

Separately disclosed items 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 TUI Group more difficult or causing distortions. These items include gains and losses 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 good-will impairments would be adjusted in the reconciliation to underlying EBIT.

In H1 2021, underlying EBIT includes result and impairment of joint ventures and associates of EUR-157.2m (H1 2020 EUR41.9m), primarily generated within the sector Holiday Experiences. 


Underlying EBIT by segment 
 
                       H1 2021     H1 2020 adjusted 
EUR million 
Hotels & Resorts       - 198.3     56.1 
Cruises                - 153.3     26.9 
TUI Musement           - 62.0      - 28.9 
Holiday Experiences    - 413.6     54.2 
Northern Region        - 418.3     - 415.2 
Central Region         - 272.0     - 179.5 
Western Region         - 159.8     - 189.6 
Markets & Airlines     - 850.1     - 784.3 
All other segments     - 45.1      - 64.6 
Total                  - 1,308.8   - 794.8 
Reconciliation to underlying EBIT of TUI Group 
 
EUR million                                                                                  H1 2021     H1 2020 adjusted 
Earnings before income taxes                                                               - 1,543.7   - 849.0 
plus: Net interest expense (excluding expense / income from measurement of interest        239.6       104.7 
hedges) 
plus / less: Expense (income) from measurement of interest hedges                          5.6         - 1.7 
EBIT                                                                                       - 1,298.5   - 746.0 
Adjustments: 
less: Separately disclosed items                                                           - 26.4      - 71.1 
plus: Expense from purchase price allocation                                               16.2        22.3 
Underlying EBIT                                                                            - 1,308.8   - 794.8

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