TUI AG
Benchmark Reform the replacement of current interest rates
(Phase 1) with alternative rates. Entities also must
disclose the extent to which their hedges are
affected by the interest rate benchmark
reform.
The amendments published by the IASB on 28
May 2020 provide lessees with an exemption
Amendments to from assessing whether a COVID-19-related
IFRS 16 rent concession is a lease modification. No impact. TUI does not apply the
COVID-19-Related 1 Jun 2020 Lessees applying the exemption must account new practical expedient.
Rent Concessions for the rent concessions as if they were not
lease modifications. The amendments are
available for rent concessions reducing lease
payments due on or before 30 June 2021. Group of consolidated companies
The Interim Financial Statements include all material subsidiaries over which TUI AG has control. Control requires TUI AG to have decision-making power over the relevant activities, be exposed to variable returns or have entitlements regarding the returns, and can affect the level of those variable returns through its decision-making power.
The Interim Financial Statements as of 30 June 2021 comprised a total of 275 subsidiaries of TUI AG.
Development of the group of consolidated companies*
and the Group companies measured at equity
Consolidated Associates Joint
subsidiaries ventures
Balance at 30 Sep 2020 277 19 30
Additions 8 - -
Incorporation 2 - -
Expansion of business operations 1 - -
Added to group of consolidated companies due to further 5 - -
acquisition of shares
Disposals 10 2 1
Liquidation 2 - -
Sale 3 2 1
Merger 5 - -
Change in ownership stake -** 1 - 1
Balance at 30 Jun 2021 275 18 28
* excl. TUI AG
** Addition 1 / disposal -1 Acquisitions - Divestments
Acquisitions in the period under review
In 9M 2021, companies were acquired for a total consideration of ?10.0m, comprised of deferred purchase price payments worth ?3.4m, settled purchase price payments worth ?4.9m and cash consideration worth ?1.7m.
Summary presentation of acquisitions
Name and headquarters of the acquired Business Date of Acquired Consideration
company activity Acquirer acquisition share transferred in ?
% million
Karisma Hotels Adriatic d.o.o.za Accommodation TUI Travel
trgovinu i usluge, Zagreb, Croatia Service Overseas Holding 23.2.2021 67% 10.0
(subgroup) Limited
Total 10.0 The acquisition of the interests in Karisma Hotels Adriatic d.o.o.za trgovinu i usluge, Zagreb, Croatia, resulted in an increase of the 33% stake previously held by TUI Group to 100%. Following the application of the fair value concentration test, this acquisition is not recognised in accordance with IFRS 3. Accordingly, the purchase price is allocated to the individual acquired assets and liabilities, based on their fair value at the acquisition date.
Condensed statement of financial position as at the date of acquisition ? million Karisma Hotels Adriatic d.o.o.za trgovinu i usluge (subgroup) Assets Non-current assets 44.0 Current assets 5.1 Equity and liabilities Provisions 0.9 Liabilities 38.2
No acquisitions were made after the reporting date.
Acquisitions of the prior financial year
The purchase price allocation for the companies acquired in financial year 2020 had already been finalised in the prior year.
Divestments
In March 2019, TUI Group sold its stake in the Corsair S.A. airline to Diamondale Ltd. and acquired a 27% stake in Diamondale Ltd. for ?1. Since then, the investment has been carried as a TUI Group associate with a carrying amount of ?1. On 30 December 2020, TUI Group sold the investment in Corsair S.A. As part of that transaction, on 29 December 2020, a 75% stake in the aircraft asset company MSN 1359 GmbH was sold to Corsair S.A. for ?1. Following the divestment of the stake in MSN 1359 GmbH, previously recognised as a fully consolidated subsidiary, TUI Aviation GmbH has retained a 25% stake, recognised as an associate accounted for using the equity method. The divestment of the stake generated a loss of ?3.3m, carried in Other expenses.
On 10 May 2021, the stake in the fully consolidated hotel company Enterprises Hotelières et Touristiques Paladien Lena Mary S.A. in the Western Region segment was sold for a purchase price of ?6.1m. The divestment generated a gain of ?2.3m, carried in Other income.
In May 2021, the disposal group Tenuta di Castelfalfi S.p.A. in the Hotels & Resorts segment was reclassified to assets held for sale due to the Group's intention to sell the entity. On occasion of the reclassification, the disposal group was written down by ?4.0m to its selling price less costs to sell. The impairment is shown in the cost of sales. On 30 June 2021, the transaction was completed at a preliminary purchase price less costs to sell of ?18.3m, generating a preliminary loss on disposal of ?0.4m, carried in Other expenses.
Condensed balance sheet of divestments
? million MSN 1359 GmbH Tenuta di Castelfalfi S.p.A. (Subgroup)
29 Dec 2020 30 Jun 2021
Assets
Property, plant and equipment and intangible assets 24.5 13.3
Other non-current assets - 0.1
Trade receivables 1.7 0.9
Other current assets - 16.7
Cash and cash equivalents 2.0 0.7
28.2 31.7
Provisions and liabilities
Non-current liabilities 19.3 0.3
Current provisions - 1.0
Trade payables - 3.6
Other current liabilities 5.6 8.1
24.9 13.0 Notes to the unaudited condensed consolidated income statement of TUI Group
The development of TUI Group's revenue and earnings in the first nine months of the financial year 2021 was still materially impacted by the suspension of most of our tour operation, aviation, hotel and cruise operations as a result of the global travel restrictions in order to contain the spread of COVID-19. TUI Group's results generally also reflect the significant seasonal swing in tourism between the winter and summer travel months, however this period the impact is less evident due to the COVID-19 pandemic. 1. Revenue
In the first nine months of the financial year 2021, consolidated revenue decreased by 79.6% year-on-year to ?1.4bn. The decline was driven by the travel restrictions due to COVID-19.
External revenue allocated by destinations for the period from 1 Oct 2020 to 30 Jun 2021
Rest of 9M 2021
Spain Other Caribbean, North Africa, Revenues
? million (incl. European Mexico, Africa Ind. Other from Other 9M 2021
Canary destinations USA & & Ocean, countries contracts Total
Islands) Canada Turkey Asia with
customers
Hotels & 61.0 20.2 55.1 6.1 15.0 0.5 157.9 - 157.9
Resorts
Cruises 0.3 2.4 - - - - 2.7 - 2.7
TUI Musement 5.8 14.2 7.5 4.1 5.4 0.5 37.5 - 37.5
Holiday 67.1 36.8 62.6 10.2 20.4 1.0 198.1 - 198.2
experiences
Northern 17.9 124.7 55.8 2.8 12.4 0.5 214.1 1.0 215.1
Region (MORE TO FOLLOW) Dow Jones Newswires
August 12, 2021 02:00 ET (06:00 GMT)
