(less disposals of cash and cash equivalents due to divestments) 
Payments received from the disposals of other non-current assets                                  23.5        84.3 
Payments made for investments in property, plant and equipment and intangible assets              - 220.6     - 442.6 
Payments made for investments in consolidated companies                                           - 1.9       - 41.3 
(less cash and cash equivalents received due to acquisitions) 
Payments made for investments in other non-current assets                                         - 21.5      - 88.6 
Cash inflow / cash outflow from investing activities                                      (23)    125.4       - 39.9 
Payments received from capital increases*                                                         1,722.9     - 
Payments made for acquisition of own shares                                                       -           - 1.0 
Payments made for interest increase in consolidated companies                                     -           - 1.6 
Dividend payments 
TUI AG                                                                                            -           - 318.1 
subsidiaries to non-controlling interest                                                          -           - 0.6 
Payments received from the raising of financial liabilities                                       711.7       3,335.0 
Payments made for redemption of loans and financial liabilities                                   - 452.7     - 77.5 
Payments made for principal of lease liabilities                                                  - 454.0     - 476.9 
Interest paid                                                                                     - 299.6     - 155.4 
Cash inflow from financing activities                                                     (23)    1,228.3     2,303.9 
Net change in cash and cash equivalents                                                           264.3       305.0 
 
Development of cash and cash equivalents                                                  (23) 
Cash and cash equivalents at beginning of period                                                  1,233.1     1,747.6 
Change in cash and cash equivalents due to exchange rate fluctuations                             27.0        - 9.1 
Net change in cash and cash equivalents                                                           264.3       305.0 
Cash and cash equivalents at end of period                                                        1,524.4     2,043.6 
of which included in the balance sheet as assets held for sale                                    -           55.6 
* This line comprises the payments received from the capital increase, the silent participations and the convertible 
bond.

Notes

General

The TUI Group and its major subsidiaries and shareholdings operate in tourism. TUI AG, based in Hanover and Berlin, Germany, is TUI Group's parent company and a listed corporation under German law. The shares in TUI AG are traded on the London Stock Exchange and the Hanover and Frankfurt Stock Exchanges. In this document, the term "TUI Group" represents the consolidated group of TUI AG and its direct and indirect investments. Additionally, the unaudited condensed consolidated interim financial statements of TUI Group are referred to as "Interim Financial Statements", the unaudited condensed consolidated income statement of TUI Group is referred to as "income statement", the unaudited condensed consolidated statement of financial position of TUI Group is referred to as "statement of financial position", the unaudited condensed consolidated statement of comprehensive income of TUI Group is referred to as "statement of comprehensive income" and the unaudited condensed consolidated statement of changes in TUI Group equity is referred to as "statement of changes in equity".

The Interim Financial Statements cover the period from 1 October 2020 to 30 June 2021. The Interim Financial Statements are prepared in euros. Unless stated otherwise, all amounts are stated in million euros (?m).

The Interim Financial Statements were approved for publication by the Executive Board of TUI AG on 11 August 2021.

Accounting principles

Declaration of compliance

The consolidated interim financial report for the period ended 30 June 2021 comprise the Interim Financial Statements and the Interim Management Report in accordance with section 115 of the German Securities Trading Act (WpHG).

The Interim Financial Statements were prepared in conformity with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB) and the relevant Interpretations of the IFRS Interpretation Committee (IFRS IC) for interim financial reporting applicable in the European Union.

In accordance with IAS 34, the Interim Financial Statements are published in a condensed form compared with the consolidated annual financial statements and should therefore be read in combination with TUI Group's consolidated financial statements for financial year 2020. The Interim Financial Statements were reviewed by the Group's auditor. Going concern reporting in accordance with the UK Corporate Governance Code

The TUI Group covers its day-to-day working capital requirements through cash on hand, balances and borrowings from banks. The TUI Group's net debt (financial debt plus lease liabilities less cash and cash equivalents and less short-term interest-bearing cash investments) as of 30 June 2021 was ?6.3bn. 


Net debt 
 
                                             30 June 2021    30 Sep 2020    Var. % 
Financial debt                               4,578.9         4,269.0        + 7.3 
Lease liabilities                            3,307.8         3,399.9        - 2.7 
Cash and cash equivalents                    1,524.4         1,233.1        + 23.6 
Short-term interest-bearing investments      13.6            14.9           - 8.7 
Net debt                                     6,348.7         6,420.9        - 1.1

The global travel restrictions to contain COVID-19 had a strong negative impact on the Group's earnings and liquidity development from the end of March 2020. To cover the resulting liquidity requirements, the Group also received financing measures in two steps from the Federal Republic of Germany in FY 2020, in particular in the form of a credit line from KfW totalling ?2.85bn and an option bond from the Economic Stabilization Fund (WSF) in the amount of ?150m with initial option rights to around 58.7m shares. The option bond was issued to the Economic Stabilization Fund on 1 October 2020. In the second quarter of FY 2021, TUI secured further funds from a further financing package of ?1.8bn agreed with Unifirm Ltd, a banking consortium and KfW as well as the WSF.

The preconditions for all components of the third financing package were created at the Extraordinary General Meeting of TUI AG on 5 January 2021. This included in particular the resolution to reduce the capital stock from ?2.56 per share to ?1.00 per share and the subsequent capital increase of around ?509m.

The WSF and TUI AG subsequently signed the agreement on two silent participations totalling ?1.091bn. The WSF measures comprise a silent participation convertible into shares in TUI of ?420m (Silent Participation I) and a second silent participation (Silent Participation II) of ?671m. As of 30 June 2021, silent participation I and II were fully paid in. 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. As part of the third financing package, KfW also participated in an additional loan facility together with private banks in the amount of ?200m.

TUI AG successfully completed its capital increase on 28 January 2021. The gross issue proceeds amounted to around ?568m. The Group's share capital increased nominally by just under ?509m to around ?1.099bn.

TUI used the funds from the capital increase to repay the outstanding senior bond (October 2016 - October 2021) of ?300m ahead of schedule on 23 February 2021, in accordance with the terms and conditions of the bond. In accordance with the agreement on the loans granted by KfW under the three financing packages, the early redemption of the senior bond extended their maturities until July 2022.

On 16 April 2021, TUI AG issued a convertible bond with a total nominal amount of ?400m, which was increased by a total nominal amount of almost ?190m in July 2021. TUI received a total of more than ?600m from the overall issue of the convertible bond. Provided the convertible bond has not been converted, redeemed or repurchased and retired ahead of schedule, it will be redeemed at its nominal amount on 16 April 2028. Investors have the option to convert the convertible bond into registered shares of TUI. TUI intends to use the proceeds from the overall issuance of the convertible bonds to refinance and to reduce drawings on the KfW facilities and to repay these facilities later.

On 27 May 2021, TUI AG agreed to sell its 49% stake in RIU Hotels S.A. to a company of the Riu Group owned by Carmen and Luis Riu. The transaction was completed on 31 July 2021 and resulted in a net cash inflow of ?541,4m, which will be used to reduce the Group's debt. Further purchase price payments will be made in FY 2023 and 2024 if RIU Hotels S.A. achieves agreed earnings targets.

Already in H1 2021, cash inflows were also generated from the sale and leaseback of aircraft and spare parts.

On 27 July 2021, TUI agreed with the bank consortium and KfW on an extension of TUI AG's revolving credit facility ("RCF") and KfW credit line (both tranches) totalling ?4.7bn to summer 2024. TUI Group's revolving credit facilities currently amount to ?4.8bn. For regulatory reasons due to Brexit, the credit line of a British bank (around ?80m cash and ?25m guarantee line) cannot be extended beyond summer 2022, so that thereafter the credit lines will total ?4.7bn until 2024.

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