TUI AG TUI AG (TUI) TUI AG: TUI GROUP HALF-YEAR FINANCIAL REPORT 1 OCTOBER 2020 - 31 MARCH 2021 12-May-2021 / 08:00 CET/CEST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. =---------------------------------------------------------------------------------------------------------------------- TUI GROUP Half-Year Financial Report 1 October 2020 - 31 March 2021 Contents Interim Management Report H1 2021 Summary Report on changes in expected development Structure and strategy of TUI Group Consolidated earnings Segmental performance Financial position and net assets Comments on the consolidated income statement Alternative performance measures Other segment indicators Corporate Governance Risk and Opportunity Report Unaudited condensed Consolidated Interim Financial Statements Notes General Accounting principles Group of consolidated companies Acquisitions - Divestments Notes to the unaudited condensed consolidated income statement of TUI Group Notes to the unaudited condensed consolidated statement of financial position of TUI Group Responsibility statement Review Report Cautionary statement regarding forward-looking statements Financial calendar Contacts Interim Management Report TUI Group - financial highlights EUR million H1 2021 H1 2020 adjusted Var. % Var. % at constant currency Revenue 716.3 6,638.7 - 89.2 - 89.0 Underlying EBIT1 Hotels & Resorts - 198.3 56.1 n. a. n. a. Cruises - 153.3 26.9 n. a. n. a. TUI Musement - 62.0 - 28.9 - 114.5 - 117.6 Holiday Experiences - 413.6 54.2 n. a. n. a. Northern Region - 418.3 - 415.2 - 0.7 - 2.4 Central Region - 272.0 - 179.5 - 51.5 - 51.5 Western Region - 159.8 - 189.6 + 15.7 + 16.6 Markets & Airlines - 850.1 - 784.3 - 8.4 - 9.1 All other segments - 45.1 - 64.6 + 30.2 + 29.9 Underlying EBIT - 1,308.8 -794.8 - 64.7 - 66.5 EBIT1 - 1,298.5 -746.0 - 74.1 Underlying EBITDA - 856.1 -266.0 - 221.9 EBITDA2 - 831.5 - 196.9 - 322.4 Group loss - 1,498.1 - 815.0 - 83.8 Earnings per share EUR - 1.83 - 1.46 - 25.3 Net capex and investment - 108.4 287.2 n. a. Equity ratio (31 March)3 % 1.3 15.6 - 14.3 Net financial position (31 March) - 6,813.1 - 4,902.5 - 39.0 Employees (31 March) 36,029 53,525 - 32.7
Differences may occur due to rounding.
This Quarterly Statement of the TUI Group was prepared for the reporting period H1 FY2021 from 1 October 2020 to 31 March 2021.
1 We define the EBIT in underlying EBIT as earnings before interest, income taxes and result of the measurement of the Group's interest hedges. For further details please see page 14.
2 EBITDA is defined as earnings before interest, income taxes, goodwill impairment and amortisation and write-downs of other intangible assets, depreciation and write-downs of property, plant and equipment, investments and current assets.
3 Equity divided by balance sheet total in %, variance is given in percentage points.
H1 2021 Summary ? Group revenue of EUR716m, down 89% as a result of extended travel restrictions imposed across our key European
markets for the majority of the first half. ? Within Hotels & Resorts, 122 hotels were open at end of the quarter reflecting both the usual winter seasonality
and limited operations from travel restrictions. ? TUI Cruises and Hapag-Lloyd Cruises operated five ships during the first half, offering itineraries to the Baltic
and North Sea, and Greek Islands in the first quarter and to the Canary Islands in the second. ? Markets & Airlines, took away 684k customers on holiday during the period, demonstrating the continued desire to
travel when restrictions allow. ? Group underlying EBIT loss of EUR1,309m reflecting our continued cost discipline, contribution from operational
opportunities, helping to reduce average monthly underlying EBIT loss to EUR218m per month. ? During the second quarter, we concluded all elements of our third support package of EUR1.8bn, including >EUR500m fully
subscribed rights issue. ? Additionally, we successfully placed EUR400m convertible bonds post balance sheet date. ? Our available liquidity1 as at 7 May 2021 amounts to EUR1.7bn. ? Global Realignment Programme on track to achieve our cost savings target of EUR400m p.a by FY2023. Reflecting our
accelerated plans to transform into a more agile and leaner business, we expect to deliver 50% of our targeted
savings by end of FY2021. ? Pipeline of 2.6m customers booked for Summer 2021 season. Planned capacity of 75% (of Summer 2019) for our upcoming
peak Summer months (Q4), with our re-opening portfolio focused on destinations such as Greece, Balearics and
Canaries with anticipated good vaccinations rates and low infection rates. ? The continued vaccination progress across our key customer markets and destinations, combined with more testing,
and comprehensive hygiene measures throughout our eco-system, should enable the safe return to holidays this
Summer. ? Insight survey2 results tell us our customers value a strong brand, flexibility, comprehensive health and safety
protocols with a good customer experience during these unprecedented times. TUI, with its integrated model, strong
brand, and in-destination service and online 24/7 support, is the model of choice for many holiday makers.
1 Available liquidity defined as unrestricted cash plus committed lines including third support package (contains KFW credit facility provided by KfW of EUR200m as of end of May) and convertible bonds
2 TUI Consumer Travel Behaviour Survey, August 2020
Completion of Third Support Package
Our third support package as announced on 2 December 2020 amounting to EUR1.8bn, agreed with our shareholders, a syndicate of underwriting banks, KfW and the German government (WSF) was successfully concluded in the period, comprising the following components: ? a capital increase with subscription rights of >EUR500m ? a silent participation, convertible into shares by the WSF of EUR420m (IFRS equity accounted) ? a non-convertible silent participation by the WSF of EUR671m (IFRS equity accounted) ? an additional credit facility provided by KfW of EUR200m
EUR400m placement of convertible bonds
Post balance sheet date on 16 April 2021, we successfully completed the placement of senior unsecured convertible bonds for EUR400m. These bonds have been offered at a coupon rate of 5% and were 2 times oversubscribed. They utilise 68% of authorised capital resolved at our recent AGM, representing around 75m underlying shares.
Unless previously converted, redeemed or repurchased and cancelled, the convertible bonds will be redeemed at their principal amount on 16 April 2028. Investors also have the possibility to convert the bonds into new and/or existing no-par value ordinary registered shares of TUI. The initial conversion price was set at 5.3631 EUR, representing a conversion premium of 25% above the reference share price of 4.2905 EUR.
With the successful offering, we plan to start the refinancing of loans from the COVID-19 support packages, in addition to strengthening our liquidity in the short-term.
Liquidity Position/Cash Outflow
Available liquidity1 as at 7 May 2021 amounts to EUR1.7bn. Bearing in mind the typical seasonal swings, and combined with clear signs of pent-up demand as evidenced by the immediate spike in bookings when a destination is re-opened, we are fully confident that the typical seasonal inflow usually seen in Q2, will materialise as we head towards the peak Summer season.
Our assumption for Q3 FY2021, is for departure volumes being muted in the light of travel restrictions. We however anticipate significant working capital inflow once reopening of markets are confirmed and destinations are announced, in line with our planned capacity for Q4.
Our assumption for Q4 FY2021, is for significant positive contributions from strong volumes and normalised level of operations.
1 Available liquidity defined as unrestricted cash plus committed lines including third support package (contains KFW credit facility provided by KfW of EUR200m as of end of May) and convertible bonds
Net debt
Net financial position improved to EUR6,813m versus our net debt position of EUR7,177 as at 31 December 2020 (Q1). The EUR364m decrease in net debt in the second quarter predominantly reflects net cash proceeds from our capital raise and the silent participations of the WSF.
The WSF measures comprise a silent participation convertible into shares in TUI of EUR420m (Silent Participation I) and a second silent participation of EUR671m. At 31 March 2021, Silent Participation I was fully paid in and Silent Participation II in the amount of EUR500m. In the IFRS consolidated financial statements, the silent participations are shown as equity due to their nature and are therefore not included in the Group's net debt.
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