the course of a voting under German Act on Debt Securities amongst the bearers of the Senior Notes, this suspension was granted. With 
this resolution becoming effective, the annual interest coupon of the Senior Notes increased to 9.5 % starting 1 October 2020. 
Furthermore, there is the obligation of a 2.0 % quarterly interest payment starting 1 April 2021. Furthermore, TUI AG has the obligation 
to prepay such portion of the Senior Notes in case that TUI AG incurs certain additional financing, provided that such additional 
proceeds exceed &euro 150 m in the aggregate. 
 
Bond with warrants issued to Economic Stabilisation Fund (WSF) 
 
On 1 October 2020, an unlisted bond with warrants totalling &euro 150.0 m was issued to the Economic Stabilisation Fund (WSF). The bond 
has a term of six years and carries an interest coupon of 9.5 % p. a. The attached warrants have a term of ten years and authorise the 
holders to subscribe to around 58.7 m shares in TUI AG at a price of around &euro 2.56 per share. 
 
Please refer to the section Significant events after balance sheet date, page 238. 
 
Syndicated credit facility of TUI AG 
 
TUI AG's syndicated credit facility previously totalling &euro 1.75 bn (including a tranche of &euro 215 m for bank guarantees) was 
increased by &euro 1.8 bn to &euro 3.55 bn in April 2020 due to the impact of the COVID-19-pandemic. In August 2020, this facility was 
increased by a further &euro 1.05 bn to &euro 4.6 bn. This second increase was subject to two conditions: the holders of TUI AG's senior 
notes worth &euro 300.0 m would have to grant their consent to amendments to certain terms and conditions of the notes, and TUI AG had to 
issue a bond with warrants totalling &euro 150.0 m to the Economic Stabilisation Fund (WSF). The second of these two conditions was 
fulfilled in October 2020. 
 
The interest rate for cash drawdowns is variable and depends on the short-term interest level (EURIBOR or LIBOR) plus a margin determined 
by TUI's credit rating. The differentiated term of this syndicated credit facility is explained in the chapter Going concern reporting 
according to UK Corporate Governance Code in the annual financial statements. 
 
See chapter Going concern reporting according to UK Corporate Governance Code, page 151. 
 
At the balance sheet date, amounts totalling &euro 3,315.9 m had been drawn from this credit line. In addition, this credit line was 
utilised by &euro 106.8 m through issued bank guarantees. 
 
Bank credits and lease liabilities 
 
Liabilities to banks in the Cruises segment declined due to the divestment of Hapag-Lloyd Kreuzfahrten. For more detailed information 
please refer to the chapter Divestments in the Notes to the consolidated financial statements. 
 
See chapter Divestments, page 155. 
 
The obligations from lease liabilities essentially relate to aircraft funding and hotel leases. For more detailed information, in 
particular on the remaining terms, please refer to the section Financial and lease liabilities in the Notes to the consolidated financial 
statements. 
 
See section Financial and lease liabilities, page 207. 
 
Other liabilities 
 
The combined figure for other liabilities mainly includes trade payables and advance payments received from tourists and at &euro 5,112.3 
m was &euro 1,949.8 m lower than in the previous year. 
 
Bilateral guarantee facilities of TUI AG with insurance companies and banks 
 
TUI AG has concluded several bilateral guarantee facilities with various insurance companies with a total volume of &euro 85.4 m. These 
guarantee facilities are required for the delivery of tourism services in order to ensure that Group companies are able to meet, in 
particular, the requirements of European oversight and regulatory authorities on the provision of guarantees and warranties. The 
guarantees issued usually have a term of up to 18 months. They give rise to a commission in the form of a fixed percentage of the maximum 
guarantee amount. At the balance sheet date, these guarantee facilities had been fully drawn. 
 
TUI AG also concluded bilateral guarantee facilities with a total volume of &euro 35.2 m with banks to provide bank guarantees in the 
framework of ordinary business operations. Some of the guarantees have a term of several years. The guarantees granted give rise to a 
commission in the form of a fixed percentage of the maximum guarantee amount. At the balance sheet date, an amount of &euro 28.3 m from 
these guarantee facilities had been used. 
 
Obligations from financing agreements 
 
The Schuldschein worth &euro 425.0 m issued in 2018, the senior notes worth &euro 300.0 m issued in 2016, the bond with warrants worth 
&euro 150.0 m issued in October 2020 and the credit and guarantee facilities of TUI AG contain a number of obligations. 
 
Under its syndicated credit facility worth &euro 4.6 bn, TUI AG has a duty to comply with certain financial covenants (as defined in the 
contract). These require (a) compliance with an EBITDAR-to-net interest expense ratio measuring TUI Group's relative charge from the 
interest result and the lease and rental expenses; and (b) compliance with a net debt-to-EBITDA ratio, calculating TUI Group's relative 
charge from financial liabilities. The EBITDAR-to-net interest expense ratio must have a coverage multiple of at least 1.5; net debt must 
not exceed 3.0 times EBITDA. The financial covenants are determined every six months, but the banks have consented to currently suspend 
this financial covenant obligation. Testings of these covenants will be resumed in September 2021. The testings will be carried out on 
the basis of the four quarters last reported prior to September 2021. We expect that our results will continue to be impacted by the 
COVID-19 pandemic during these reporting periods, so that we may not be able to comply with these financial covenants. We are therefore 
seeking to achieve a suspension of these covenants for the testing period ending on 
30 September 2021 and beyond in the framework of the syndicated credit facility. 
 
The Schuldschein worth &euro 425.0 m, the senior notes worth &euro 300.0 m, the bond with warrants worth &euro 150.0 m issued in October 
2020 and the credit and guarantee facilities of TUI AG also contain additional contractual clauses typical of financing instruments of 
this type. In that course, inter alia, TUI's scope for pledging or selling assets, acquiring other companies or shareholdings, or 
effecting mergers is restricted. 
 
Non-compliance with these obligations awards the lenders the right to call in the facilities or terminate the financing schemes for 
immediate repayment. 
 
Ratings by Standard & Poor's and Moody's 
 
TUI AG ratings 
         2015   2016    2017    2018    2019    2020    Outlook 
Standard BB-    BB-     BB      BB      BB      CCC+    negative 
& Poor's 
Moody's  Ba3    Ba2     Ba2     Ba2     Ba2     Caa1    negative 
 
In particular due to the COVID-19-pandemic and the associated impacts on cash flow generation and the increase in debt, Standard & Poor's 
successively downgraded the TUI rating to "CCC+ (negative outlook)". Moody's likewise successively lowered TUI's rating to "Caa1 
(negative outlook)". 
 
TUI AG's senior notes worth &euro 300.0 m have been assigned a "CCC+" rating by Standard & Poor's and a "Caa1" rating by Moody's. TUI 
AG's syndicated credit facility is assigned a "CCC+" rating by Standard & Poor's. 
 
Financial stability targets 
 
TUI considers an enhanced credit rating to be a prerequisite for the further development of the business. In response to the structural 
improvements resulting from the merger between TUI AG and TUI Travel, the operating performance observed over the past few years, and the 
strengthening of the business model despite a challenging environment, both Standard & Poor's and Moody's upgraded their ratings for TUI 
to the BB or Ba ranges in 2014. In particular due to effects of the COVID-19-pandemic, these ratings have been lowered to CCC+ and Caa1, 
respectively. We consider a return to the B range to be essential, not only in order to benefit from financing terms, but also to regain 
access to the debt capital markets even in difficult macroeconomic situations. As an indicator of financial stability, we have defined a 
leverage ratio along the following basic lines. 
 
Leverage ratio = (gross financial liabilities + lease liabilities + obligations from defined-benefit pension plans) / reported EBITDA. 
This basic definition is subject to specific amendments in order to reflect current circumstances. Following a leverage ratio of 3.0x for 
financial year 2019*, the impact of COVID-19 and its cause for a negative EBITDA in financial year 2020 resulted in a negative leverage 
ratio with limited value. We expect our operating result to recover and our balance sheet structures to stabilise after the 
COVID-19-­pandemic ends and therefore aim to deliver a leverage ratio of less than 3.0x again. 
 
* The calculation of the leverage ratio for financial year 2019 was based on a slight modification, as IFRS 16 had not yet been applied. 
 
See section Capital management, page 235. 
 
Interest and financing environment 
 
In the period under review, short-term interest rates remained at an extremely low level compared with historical rates. In some currency 
areas, the interest rate remained negative throughout the year. Moreover, due to the COVID-19-pandemic, some central banks lowered their 
short-term interest rates in order to stimulate the economy, with corresponding impacts on yields for money market investments but also 
on reference interest rates for floating-rate debt. 
 
Quoted credit margins (based on CDS levels) for corporates in the sub-investment grade area initially rose substantially in spring 2020 
and subsequently returned towards their initial levels by the end of the completed financial year. Credit margins for TUI AG reached new 
highs with the spread of the COVID-19-pandemic and remain at very high levels on a long-standing comparison. Even against the backdrop of

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