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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Tui Ag | LSE:TUI | London | Ordinary Share | DE000TUAG505 | ORD REG SHS NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -30.00 | -4.89% | 584.00 | 583.50 | 585.00 | 600.00 | 584.00 | 600.00 | 184,326 | 09:20:01 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Travel Agencies | 20.67B | 305.8M | 0.1713 | 45.53 | 13.92B |
Dow Jones received a payment from EQS/DGAP to publish this press release.
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TUI AG / Half-yearly Results
TUI AG: Half year results 2016/17
15-May-2017 / 08:00 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group AG.
The issuer is solely responsible for the content of this announcement.
H1 2016/17
TUI Group - financial highlights
EUR million Q2 Q2 2015 Var. H1 H1 2015 Var. Var. %
2016 / / 16 % 2016 / / 16 % at
17 restated 17 restated constant
currency
Turnover 3,096. 2,966.4 + 6,382. 6,178.7 + 3.3 + 8.2
5 4.4 4
Underlying
EBITA1
Northern - - 78.1 - - - 120.9 - - 34.1
Region 108.6 39.1 138.0 14.1
Central - 91.4 - 83.6 - - - 110.6 - - 29.8
Region 9.3 143.7 29.9
Western - 54.5 - 48.0 - - - 75.7 - - 35.0
Region 13.5 102.2 35.0
Hotels & 73.6 67.6 + 122.8 96.0 + + 31.0
Resorts 8.9 27.9
Cruises 47.0 37.0 + 75.0 49.3 + + 58.5
27.0 52.1
Other - 13.1 - 6.4 - - 13.4 - 16.7 + + 49.3
Tourism 104. 19.8
7
Tourism - - 111.5 - - - 178.6 - - 19.0
147.0 31.8 199.5 11.7
All other - 7.0 - 14.5 + - 14.8 - 27.8 + + 31.8
segments 51,7 46.8
TUI Group - - 126.0 - - - 206.4 - 3.8 - 12.2
154.0 22.2 214.3
Discontinued - 3.1 - 0.5 - - 15.3 - 21.8 + + 37.5
operations 520. 29.8
0
Total - - 126.5 - - - 228.2 - 0.6 - 7.4
157.1 24.2 229.6
EBITA2 - - 138.1 - - -240.9 - 4.6
(continuing 182.4 32.1 251.9
operations)
Underlying - 59.9 - 40.2 - - 27.3 - 33.4 +
EBITDA 49.0 18.3
(continuing
operations)
EBITDA - 82.1 - 45.6 - - 52.3 - 53.1 + 1.5
(continuing 80.0
operations)
Net loss for - - 208.8 + - - 346.9 +
the period 163.9 21.5 245.5 29.2
(continuing
operaitons)
Earnings per - 0.32 - 0.42 + - 0.51 - 0.69 +
share 23.8 26.1
(continuing
operations)E
UR
Net capex 365.9 113.9 + 695.1 243.9 +
and 221. 185.0
investments 2
Equity ratio 20.0 12.6 + 7.4
(31 March) 3
%
Net - - +
financial 1,404. 1,579.6 11.1
position 1
(continuing
operations
as at 31
March)
Net 305.6 172.9 +
financial 76.7
position
(discontinue
d
operations
as at 31
March)
Employees 55,142 54,336 + 1.5
(continuing
operations
as
at 31 March)
Differences may occur due to rounding.
Due to the following changes to segmental reporting, the prior year's reference
figures were restated accordingly:
In Q2 2016 / 17, the hotel operating company Blue Diamond Hotels and Resorts
Inc., St. Michael, Barbados, previously carried in the Northern Region segment,
was integrated in the hotel business and has therefore now been reported within
Hotels & Resorts. Moreover, the British cruise business Thomson Cruises, which
had also previously been reported within the Northern Region segment, was
transferred to the Cruises segment. Moreover, due to the planned disposal of
Travelopia - a large part of the Specialist Group segment - Crystal Ski and
Thomson Lakes & Mountains were reclassified to Northern Region. The remaining
segment has been carried as a discontinued operation since 30 September 2016.
1 In order to explain and evaluate the operating performance by the segments,
EBITA adjusted for one-off effects (underlying EBITA) is presented. Underlying
EBITA has been adjusted for gains / losses on disposal of investments,
restructuring costs according to IAS 37, ancillary acquisition costs and
conditional purchase price payments under purchase price allocations and other
expenses for and income from one-off items.
2 EBITA comprises earnings before net interest result, income tax and impairment
of goodwill excluding losses on container shipping and excluding the result from
the measurement of interest hedges.
3 Equity divided by balance sheet total in %, variance is given in percentage
points.
INTERIM MANAGEMENT REPORT
Delivering our transformation as the world's leading
integrated tourism business
- Good overall performance in the first half driven by growth in
Hotels & Resorts and Cruises, as well as delivery of merger synergies.
- Current trading for Summer 2017 remains in line with our expectations.
- Strength of the integrated model and balanced portfolio of markets and
destinations enable us to continue to deliver sustainable growth.
- Travelopia disposal on track to complete during H2 2016 / 17; German airline
JV negotiations ongoing.
- Reiterate our guidance of at least 10 % growth in underlying EBITA in 2016 /
17 1.
1 At constant foreign exchange rates applied in the current and prior period,
and based on the current group structure.
H1 results at a glance
EUR million H1
Underlying EBITA H1 2015 / 16 - 237
Restatements (including Hotelbeds and Travelopia 31
treated
as discontinued operations)
Underlying EBITA H1 2015 / 16 restated 2 - 206
Underlying trading 25
Merger synergies (corporate streamlining) 10
Year on year impact of aircraft financing 2
TUI fly sickness - 24
Like for like underlying EBITA H1 2016 / 17 2 - 193
Easter timing impact - 38
Foreign exchange translation 17
Underlying EBITA H1 2016 / 17 2 - 214
2 Continuing operations
- In order to demonstrate better the performance of our hotel and cruise brands,
results for Thomson Cruises and Blue Diamond hotels (formerly within Northern
Region) are now reported within the Cruise and Hotels & Resorts segments. Prior
year results have been restated accordingly.
- Hotels & Resorts - good performance by Riu, Robinson and Blue Diamond, with
openings for Riu in Jamaica, TUI Blue in Tenerife and Blue Diamond in the
Caribbean. Our popular brands, integrated model and strong presence in year
round destinations continue to drive high levels of occupancy (Riu 88 %, overall
Hotels & Resorts 75 %) whilst still delivering 5 % growth in average revenue per
bed.
- Cruises - strong growth driven by TUI Cruises and Thomson Cruises as a result
of the first Winter operations of Mein Schiff 5 and TUI Discovery, as well as
increased earnings from Hapag-Lloyd Cruises.
- Source Markets - more relevant to more customers, with 3 % growth in customers
and further progress in increasing direct and online distribution (73 % and 47 %
respectively). The TUI rebrand is progressing well in Nordics and Belgium and
our new customer IT platform has been rolled out to all markets.
- As outlined at Q1, the Source Markets result has been impacted by higher than
normal levels of sickness in TUI fly in October 2016, as well as the impact of
rebrand costs and the later timing of Easter.
- See Segmental Performance section on pages 7 to 11 for further detail.
Current trading
Winter 2016/17
Current trading for Winter has closed out in line with our expectations. We have
delivered further expansion in our hotel and cruise brands, with openings for
Riu, TUI Blue, Blue Diamond, as well as the first Winter of operations for Mein
Schiff 5 (TUI Cruises) and TUI Discovery (Thomson Cruises). In Source Markets,
customer growth has been driven by long haul, Canaries, Cape Verde and Cyprus,
with a continued increase in customers staying in our own hotels.
Summer 2017
Summer 2017 remains in line with our expectations, with good overall demand for
our hotel and cruise brands, and from our Source Markets. In our hotel brands,
we recently opened a TUI Blue property in Tuscany, and will open another in
Croatia this July. Subdued demand for Turkey and North Africa continue to be
offset by the popularity of other destinations including Spain and Canaries,
Greece, Cyprus, Cape Verde and Caribbean.
In Cruises, TUI Cruises will launch the newly built Mein Schiff 6 in June. The
2,500 berth ship will be based initially in Kiel (Germany) before moving to New
Jersey for itineraries in the USA and Caribbean. Demand for cruises remains
buoyant in Germany, and we remain pleased with the performance of the TUI
Cruises fleet. Thomson Cruises continues its programme of modernisation with the
launch of TUI Discovery 2. The 1,800 berth ship, recently acquired from Royal
Caribbean, will be based in the Mediterranean this Summer before moving to the
Caribbean for Winter 2017 / 18. We are pleased with sales for the new ship, as
well as the performance of the rest of the Thomson Cruises fleet.
The Source Markets' programme, which includes sales of holidays to our own and
third party hotels, is 62 % sold, in line with prior year. Bookings are 4 %
ahead of prior year, with growth in demand for Greece, Bulgaria, Croatia,
Cyprus, Cape Verde and long haul. We are also continuing to drive direct and
online distribution, with bookings made via these channels up 4 % and 6 %
respectively.
In the UK, despite the backdrop of Brexit, demand for our holidays remains
resilient with the percentage of the programme sold in line with prior year. As
previously outlined, revenue and selling price reflects to an extent the impact
of currency cost inflation for Euro based destinations this Summer.
Current trading summer 2017*
YoY variation Total revenue Total customers Total ASP Programme
% sold (%)
Northern 8 1 7 63
Region
UK 8 0 8 65
Memo: UK incl. 10 1 8 65
Thomson
Cruises
Nordics 8 3 5 58
Central Region 9 6 2 62
Germany 7 4 3 62
Western Region 8 4 4 61
Benelux 7 3 3 61
Total source 8 4 4 62
markets
Memo: Total 9 4 5 62
source markets
incl. Thomson
Cruises
* These statistics are up to 7 May 2017, shown on a constant currency basis and
relate to all customers whether risk or non-risk.
Trading by the Hotels & Resorts segment largely mirrors customer volumes in the
source markets, as a high proportion of the Group owned hotel beds are taken up
by TUI tour operators. In the Cruises segment, advance bookings were up
year-on-year with sound demand levels, primarily due to continued fleet
expansion.
Outlook
The Group has delivered a good H1 overall and Summer 2017 continues to trade in
line with our expectations. We therefore reiterate our guidance of at least 10 %
growth in underlying EBITA in 2016 / 17 (at constant foreign exchange rates
applied in the current and prior period, and based on the current group
structure.)
We are continuing to deliver our transformation as the world's leading
integrated tourism business, focussed on own hotel and cruise brands, with
growth enabled and de-risked by our strength in distribution and direct customer
relationships, and financed by our strong operating cash flows and disposal
proceeds. Whilst the turbulent macroeconomic and geopolitical backdrop is
evident in certain destinations and markets, our operational experience,
integrated model and balanced portfolio of markets and destinations mean that we
are well placed to deal with these challenges and continue to deliver
sustainable growth into the longer term.
Expected development of Group turnover, underlying EBITA and
adjustments
Expected development vs. PY
EUR million 2015 / 16 restated 2016 / 17*
Turnover 17,185 around 3 % growth
Underlying EBITA 1,001 at least 10 % growth
Adjustments 103 approx. EUR 100 m cost
* Variance year-on-year assuming constant foreign-exchange rates are applied to
the result in the current and prior period and based on the current group
structure;
guidance relates to continuing operations and excludes any disposal proceeds for
Travelopia and Hapag-Lloyd AG.
The expected development of adjustments has been updated to EUR 100 m in order
to reflect the earlier recognition of restructuring costs in relation to the
Transat integration. It is expected that this will be offset by lower net
interest costs for the Group, reflecting the lower cost of debt finance.
Structure and strategy of TUI Group
Reporting structure
In the Interim Financial Report for H1 2016 / 17 the TUI Group reporting
structure is mainly based on that introduced for the Annual Report 2015 / 16.
Details see Annual Report 2015 / 16: page 44ff
Due to the following changes to segmental reporting, the prior year's reference
figures were restated accordingly.
Reclassifications from Northern Region segment
In Q2 2016 / 17, the hotel operating company Blue Diamond Hotels and Resorts
Inc., St. Michael, Barbados, previously reported within Northern Region, was
included within the hotel business and is therefore now reported within Hotels &
Resorts. Moreover, the UK cruise business Thomson Cruises, also previously
carried in Northern Region, was reclassified to the Cruises segment.
Specialist Group
In addition, Crystal Ski and Thomson Lakes & Mountains were reclassified to
Northern Region in preparation for the planned disposal of Travelopia, a large
part of the Specialist Group segment. The remaining segment has been carried as
a discontinued operation since 30 September 2016. An agreement on the disposal
of Travelopia to Kohlberg Kravis Roberts & Co. LP was concluded in February
2017. KKR will acquire Travelopia for an enterprise value of EUR 381 m. The
disposal proceeds will be invested to finance the continued expansion of the
hotel and cruise growth segments. The closing of the transaction is subject to
the relevant regulatory approvals and is expected during H2 2016 / 17.
Details see Notes from page 28
Group targets and strategy
The TUI Group continues to pursue its strategy as presented in financial year
2015 / 16.
Our assessment of the expected synergies and one-off costs resulting from the
merger between TUI AG and TUI Travel PLC is retained as presented in the Annual
Report for 2015 / 16. In H1 2016 / 17, we delivered synergies worth EUR 10 m
from the merger with TUI Travel, which resulted from the consolidation of
overlapping Corporate Centre functions.
Details see Annual Report 2015 / 16: page 28 - 43
Consolidated earnings
Turnover
EUR million Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Northern 1,120.9 1,170.1 - 4.2 2,232.9 2,358.3 - 5.3
Region
Central 887.1 897.7 - 1.2 2,028.0 1,987.1 2.1
Region
Western 564.6 428.7 31.7 1,114.0 915.6 21.7
Region
Hotels & 158.8 133.6 18.9 300.0 266.0 12.8
Resorts
Cruises 194.0 173.9 11.6 345.9 308.9 12.0
Other 139.8 142.0 - 1.5 290.4 290.0 0.1
Tourism
Tourism 3,065.2 2,946.0 4.0 6,311.2 6,125.9 3.0
All other 31.3 20.4 53.4 71.2 52.8 34.8
segments
TUI Group 3,096.5 2,966.4 4.4 6,382.4 6,178.7 3.3
TUI Group at 3,202.2 2,966.4 7.9 6,688.4 6,178.7 8.2
constant
currency
Discontinued 293.9 561.4 - 47.6 546.3 1,067.5 - 48.8
operations
Total 3,390.4 3,527.8 - 3.9 6,928.7 7,246.2 - 4.4
Underlying EBITA
Underlying EBITA
EUR million Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Northern - 108.6 - 78.1 - 39.1 - 138.0 - 120.9 - 14.1
Region
Central - 91.4 - 83.6 - 9.3 - 143.7 - 110.6 - 29.9
Region
Western - 54.5 - 48.0 - 13.5 - 102.2 - 75.7 - 35.0
Region
Hotels & 73.6 67.6 8.9 122.8 96.0 27.9
Resorts
Cruises 47.0 37.0 27.0 75.0 49.3 52.1
Other - 13.1 - 6.4 - 104.7 - 13.4 - 16.7 19.8
Tourism
Tourism - 147.0 - 111.5 - 31.8 - 199.5 - 178.6 - 11.7
All other - 7.0 - 14.5 51.7 - 14.8 - 27.8 46.8
segments
TUI Group - 154.0 - 126.0 - 22.2 - 214.3 - 206.4 - 3.8
TUI Group at - 177.7 - 126.0 - 41.0 - 231.4 - 206.4 - 12.1
constant
currency
Discontinued - 3.1 - 0.5 - 520.0 - 15.3 - 21.8 29.8
operations
Total - 157.1 - 126.5 - 24.2 - 229.6 - 228.2 - 0.6
EBITA
EBITA
EUR million Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Northern - 114.4 - 82.5 - 38.7 - 148.1 - 131.5 - 12.6
Region
Central - 86.5 - 84.4 - 2.5 - 140.2 - 117.0 - 19.8
Region
Western - 80.1 - 50.5 - 58.6 - 128.8 - 79.4 - 62.1
Region
Hotels & 72.4 67.5 7.3 120.0 95.2 26.1
Resorts
Cruises 46.9 37.0 26.7 75.0 49.3 52.2
Other - 14.0 - 7.9 - 77.2 - 14.9 - 20.0 25.5
Tourism
Tourism - 175.7 - 120.8 - 45.4 - 237.0 - 203.4 - 16.5
All other - 6.7 - 17.3 61.3 - 14.9 - 37.5 60.3
segments
TUI Group - 182.4 - 138.1 - 32.1 - 251.9 - 240.9 - 4.6
Discontinued - 6.6 - 32.4 79.6 - 22.2 - 71.7 69.0
operations
Total - 189.0 - 170.5 - 10.8 - 274.1 - 312.6 12.3
Segmental performance
Northern Region
Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Turnoverin 1,120.9 1,170.1 - 4.2 2,232.9 2,358.3 - 5.3
EUR
million
Underlying - 108.6 - 78.1 - 39.1 - 138.0 - 120.9 - 14.1
EBITAin
EUR
million
Underlying - 125.4 - 78.1 - 60.6 - 162.1 - 120.9 - 34.1
EBITA at
constant
currencyin
EUR
million
Direct 90 91 - 1 90 90 -
distributi
on1 in %,
variance
in %
points
Online 63 60 3 63 59 4
distributi
on2 in %,
variance
in %
points
Customers 1,177 1,080 9.0 2,363 2,250 5.0
in '000
1 Share of sales via own channels (retails and online); incl. Thomson Cruises
2 Share of online sales; incl. Thomson Cruises
- Northern Region results have been restated to exclude Thomson Cruises (now in
Cruises) and Blue Diamond hotels (now in Hotels & Resorts).
- The result includes approximately EUR 20 m phasing impact from the later
timing of Easter.
- Northern Region continues to deliver high levels of direct and online
distribution, at 90 % and 63 % respectively.
- UK customer volumes increased by 8 % in H1 2016 / 17, with a good end to
Summer and growth in long haul in Winter. This was offset by P & L charges
arising from an increase in the valuation of US dollar based maintenance
reserves (due to the weaker Pound Sterling) and an increase in pension service
costs (technically driven by lower interest rates). The result was also impacted
to some extent in Q2 by currency cost inflation, due to the weakening of the
Pound Sterling.
- As expected, Nordic's H1 performance was impacted by lower demand for Turkey
and Egypt. In addition, the result includes the impact of rebrand marketing
costs. Based on current trading, we expect an improvement in H2 performance and
remain focused on driving further operational efficiency improvements.
- Earnings in our Canadian joint venture increased significantly on prior year,
when it was unable to fully pass on higher accommodation costs as a result of
the weakening of the Canadian versus US dollar.
Central Region
Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Turnover in 887.1 897.7 - 1.2 2,028.0 1,987.1 2.1
EUR million
Underlying - 91.4 - 83.6 - 9.3 - 143.7 - 110.6 - 29.9
EBITA in
EUR million
Underlying - 91.2 - 83.6 - 9.1 - 143.6 - 110.6 - 29.8
EBITA at
constant
currency in
EUR million
Direct 49 45 4 47 45 2
distributio
n1 in %,
variance in
% points
Online 19 15 4 17 14 3
distributio
n2 in %,
variance in
% points
Customersin 885 958 - 7.6 2,146 2,215 - 3.1
'000
1 Share of sales via own channels (retails and online)
2 Share of online sales
- Central Region has continued to increase the share of bookings via direct and
online channels, to 47 % and 17 % respectively.
- Germany continues to build on its market share gains with an increased range
of holidays and departure airports on offer, delivering an improved trading
performance in H1.
- As outlined at Q1, the result was impacted by higher than normal levels of
sickness in TUI fly in October 2016 resulting in a number of flight
cancellations. In addition, the result includes approximately EUR 4 m from the
later timing of Easter, as well as additional aircraft repair costs.
- Negotiations with Etihad regarding the creation of an airline joint venture to
serve the German, Austrian and Swiss markets are ongoing.
Western Region
Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Turnover 564.6 428.7 31.7 1,114.0 915.6 21.7
in EUR
million
Underlying - 54.5 - 48.0 - 13.5 - 102.2 - 75.7 - 35.0
EBITA in
EUR
million
Underlying - 54.5 - 48.0 - 13.5 - 102.2 - 75.7 - 35.0
EBITA at
constant
currency
in EUR
million
Direct 73 71 2 73 70 3
distributi
on1 in %,
variance
in %
points
Online 57 54 3 56 53 3
distributi
on2 in %,
variance
in %
points
Customers 882 795 10.9 1,835 1,671 9.8
in '000
1 Share of sales via own channels (retails and online)
2 Share of online sales
- Further growth in both direct and online distribution to 73 % and 56 %
respectively, aided by the rebrand in Belgium.
- The result reflects the first time inclusion of Transat's seasonal EBITA loss,
as well as the impact of rebrand costs in Belgium and EUR 5 m timing impact of
Easter.
- The Netherlands result was impacted by night slot restrictions at Schiphol
Airport and increased claims for denied boarding compensation. The Summer
programme has been altered to take these restrictions into account.
Hotels & Resorts
Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Total 281.4 259.7 8.4 564.6 530.3 6.5
turnover
in EUR
million
Turnover 158.8 133.6 18.9 300.0 266.0 12.8
in EUR
million
Underlying 73.6 67.6 8.9 122.8 96.0 27.9
EBITA in
EUR
million
Underlying 76.9 67.6 13.8 125.7 96.0 31.0
EBITA at
constant
currency
rates in
EUR
million
Capacity 6,496.4 6,237.4 4.2 14,287.7 13,970.3 2.3
hotels
total1,4
in '000
Riu 4,180.8 4,134.9 1.1 8,382.9 8,370.1 0.2
Robinson 512.8 493.1 4.0 1,167.0 1,143.2 2.1
Occupancy 78.3 78.9 - 0.6 74.8 75.7 - 0.9
rate
hotels
total2 in
%,
variance
in %
points
Riu 90.5 91.6 - 1.1 88.2 87.7 0.5
Robinson 60.1 62.6 - 2.5 62.4 63.5 - 1.1
Average 70.46 66.35 6.2 64.71 61.63 5.0
revenue
per bed
hotels
total3 in
EUR
Riu 74.99 69.52 7.9 69.28 64.68 7.1
Robinson 101.22 97.58 3.7 93.15 90.38 3.1
These statistics include former TUI Travel hotels; Blue Diamond included in
underlying EBITA
1 Group owned or leased hotel beds multiplied by opening days per quarter
2 Occupied beds divided by capacity
3 Arrangement revenue divided by occupied beds
4 Previous year's KPIs restated
- This segment now includes the results of Blue Diamond hotels, which is part of
our joint venture in Canada. The result includes EUR 9 m impact from the later
timing of Easter.
- Our popular brands, integrated model and strong presence in year round
destinations continue to drive high levels of occupancy
(Riu 88 %, overall Hotels & Resorts 75 %) whilst still delivering 5 % growth in
average revenue per bed.
- Riu delivered another strong performance, particularly in Spain and Mexico,
with a 7 % increase in average revenue per bed. As expected, this was partly
offset by the gain on disposal of the Riu Tropicana in the prior year.
- Robinson also delivered a good performance, with 3 % growth in average revenue
per bed overall.
- As expected, these were offset partly by the adverse impact from lower demand
for Turkey. Encouragingly we are seeing an improvement in occupancy in our
hotels in North Africa.
Cruises
Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Turnover in 194.0 173.9 11.6 345.9 308.9 12.0
EUR million
Underlying 47.0 37.0 27.0 75.0 49.3 52.1
EBITA in
EUR million
Underlying 48.3 37.0 30.5 78.1 49.3 58.5
EBITA at
constant
currency
rates in
EUR million
Occupancy
in %,
variance in
% points
Hapag-Lloyd 76.0 79.5 - 3.5 73.8 74.9 - 1.1
Cruises
TUI Cruises 100.0 101.2 - 1.2 99.7 100.9 - 1.1
Thomson 98.1 96.7 1.4 99.6 97.7 1.9
Cruises
Passenger
days in
'000
Hapag-Lloyd 89.3 94.8 - 5.8 163.7 166.3 - 1.6
Cruises
TUI Cruises 1,024.2 814.8 25.7 2,031.7 1,633.1 24.4
Thomson 562.3 414.9 35.5 1,090.0 851.8 28.0
Cruises
Average
daily
rates1 in
EUR
Hapag-Lloyd 633 623 1.6 595 561 6.1
Cruises
TUI Cruises 150 148 1.4 147 147 -
Thomson 168 160 5.0 161 148 8.8
Cruises 2
1 Per day and passenger
2 KPI revenue, inclusive all package elements
- This segment now includes the results of Thomson Cruises, formerly reported
within Northern Region.
- TUI Cruises continues to deliver significant growth whilst maintaining a
strong occupancy and rate performance, with an additional ship (Mein Schiff 5)
this Winter. This was offset partly by a planned increase in dry dock days.
- Thomson Cruises' result has also increased significantly, with the first
Winter of operations of TUI Discovery and a good occupancy and rate performance
across the fleet.
- Hapag-Lloyd Cruises has delivered an increase in earnings, benefitting from
improvements to itineraries and fewer dry dock days than prior year.
Other tourism
EUR Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
million / 17 / 16 / 17 / 16
restated restated
Turnover 139.8 142.0 - 1.5 290.4 290.0 0.1
Underlying - 13.1 - 6.4 - 104.7 - 13.4 - 16.7 19.8
EBITA
Underlying - 10.0 - 6.6 - 51.5 - 8.5 - 16.7 49.3
EBITA at
constant
currency
- Destination Services continued to deliver improved trading in H1.
- Corsair's result also improved as a result of fuel savings.
All other segments
EUR Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
million / 17 / 16 / 17 / 16
restated restated
Turnover 31.3 20.4 53.4 71.2 52.8 34.8
Underlying - 7.0 - 14.5 51.7 - 14.8 - 27.8 46.8
EBITA
Underlying - 8.7 - 14.5 40.0 - 18.9 - 27.8 32.0
EBITA at
constant
currency
rates
- All other segments underlying EBITA improved by EUR 13.0 m year-on-year to EUR
- 14.8 m in H1 2016 / 17.
- In the period under review, additional corporate streamlining synergies worth
EUR 10 m were delivered.
Financial position and net assets
Cash Flow / Net capex and investments / Net debt
The cash outlow from operating activities decreased by EUR 286.8 m year-on-year.
This was mainly due to an improvement in working capital seasonality following
the disposal of Hotelbeds Group in September 2016, and positive exchanges rate
effects.
Net capex and investments
EUR million Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
Cash gross
capex
Northern 12.6 12.7 - 0.8 25.2 30.1 - 16.3
Region
Central 4.1 5.4 - 24.1 7.3 9.1 - 19.8
Region
Western 6.4 4.8 33.3 13.7 7.7 77.9
Region
Hotels & 71.8 40.6 76.8 130.6 108.4 20.5
Resorts
Cruises 224.7 5.4 n. a. 247.8 23.3 963.5
Other 23.5 19.2 22.4 49.1 43.6 12.6
Tourism
Tourism 343.1 88.1 289.4 473.7 222.2 113.2
All other 0.4 2.8 - 85.7 1.8 14.8 - 87.8
segments
TUI Group 343.5 90.9 277.9 475.5 237.0 100.6
Discontinued 4.4 19.3 - 77.2 10.6 32.5 - 67.4
operations
Total 347.9 110.2 215.7 486.1 269.5 80.4
Net pre 33.8 20.6 64.1 117.5 21.3 451.6
delivery
payments on
aircraft
Financial 1.0 1.5 - 33.3 103.1 14.0 636.4
investments
Divestments - 16.8 - 18.4 8.7 - 11.6 - 60.9 81.0
Net capex 365.9 113.9 221.2 695.1 243.9 185.0
and
investments
The increase in cash gross capex in the Cruises sector mainly resulted from the
purchase of the cruise liner TUI Discovery 2.
Assets and liabilities
Assets and liabilities
EUR million 31 Mar 2017 30 Sep 2016 Var. %
Non-current assets 9,894.9 9,131.8 + 8.4
Current assets 4,349.5 5,326.1 - 18.3
Assets 14,244.4 14,457.9 - 1.5
Equity 2,845.0 3,248.2 - 12.4
Provisions 2,401.5 2,628.7 - 8.6
Financial liabilities 2,027.4 2,041.1 - 0.7
Other liabilities 6,970.5 6,539.9 + 6.6
Liabilities 14,244.4 14,457.9 - 1.5
As at 31 March 2016 / 17, TUI Group's balance sheet total amounted to EUR 14.2
bn (30 September 2016: EUR 14.5 bn). Non-current assets rose by 8.4 % overall,
mainly driven by higher goodwill due to the acquisition of Transat's French tour
operator business and an increase in property, plant and equipment due to the
purchase of cruise ship TUI Discovery 2. The decline in current assets of 18.3 %
was mainly attributable to the seasonal decline in cash and cash equivalents. On
the liabilities side, non-current provisions and liabilities decreased by 6.0 %,
partly driven by a decline in pension provisions due to higher capital market
interest rates, the issuance of a bond in October 2016 and the use of long-term
credit lines. As at 31 March 2017, the equity ratio stood at 20.0 %, falling
below its level of 22.5 % as at 30. September 2016, the balance sheet date.
Details see Notes from page 35
Fuel / Foreign exchange
Our strategy of hedging the majority of our jet fuel and currency requirements
for future seasons, as detailed below, remains unchanged. This gives us
certainty of costs when planning capacity and pricing. The following table shows
the percentage of our forecast requirement that is currently hedged for Euros,
US Dollars and jet fuel for our Source Markets, which account for over 90 % of
our Group currency and fuel exposure.
Foreign Exchange/Fuel
% Summer 2017 Winter 2017 / 18
Euro 95 70
US Dollar 91 72
Jet Fuel 93 85
As at 5 May 2017
Comments on the consolidated income statement
The consolidated income statement reflects the seasonality of the tourism
business, with negative results generated in the period from October to March
due to the seasonal nature of the business.
Income statement of the TUI Group for the period from 1
Oct 2016 to 31 Mar 2017
EUR million Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Turnover 3,096.5 2,966.4 4.4 6,382.4 6,178.7 3.3
Cost of sales 3,053.9 2,876.9 6.2 6,156.5 5,916.5 4.1
Gross profit 42.6 89.5 - 52.4 225.9 262.2 - 13.8
Administrative 313.8 282.2 11.2 601.1 593.8 1.2
expenses
Other income 2.9 12.7 - 77.2 5.1 28.4 - 82.0
Other expenses 0.9 0.5 80.0 2.2 3.2 - 31.3
Financial 30.8 12.4 148.4 37.0 18.5 100.0
income
Financial 39.4 111.9 - 64.8 81.1 199.7 - 59.4
expenses
Share of 70.3 42.2 66.6 105.6 64.7 63.2
result of
joint ventures
and
associates
Earnings - 207.5 - 237.8 12.7 - 310.8 - 422.9 26.5
before income
taxes from
continuing
operations
Income taxes - 43.6 - 29.0 - 50.3 - 65.3 - 76.0 14.1
Result from - 163.9 - 208.8 21.5 - 245.5 - 346.9 29.2
continuing
operations
Result from - 54.6 - 22.2 - - 63.1 - 48.0 - 31.5
discontinued 145.9
operations
Group loss for - 218.5 - 231.0 5.4 - 308.6 - 394.9 21.9
the year
Group loss for - 245.4 - 264.9 7.4 - 362.9 - 448.9 19.2
the year
attributable
to
shareholders
of TUI AG
Group loss for 26.9 33.9 - 20.6 54.3 54.0 0.6
the year
attributable
to
non-controllin
g interest
In H1 2016 / 17, turnover totalled EUR 6.4 bn, up by 3.3 % year-on-year. On a
constant currency basis, turnover grew by 8.2 % year-on-year in H1. With
customer numbers up around 3 %, this growth was driven by an overall higher
proportion of long-haul travel, higher selling prices in Source Market UK due to
the exchange rate-driven cost inflation for destinations in the Eurozone and the
acquisition of Transat's French tour operator business. The turnover growth also
reflected higher average prices within Hotels & Resorts and growth posted by
Thomson Cruises due to the first-time Winter operation of TUI Discovery.
The result from continuing operations improved in H1 2016 / 17, driven by an
increase in the operating performance and an improvement in the financial
result, which had comprised an expense of EUR 100.3 m in connection with the
measurement of the investment in Hapag-Lloyd AG in the prior year reference
period.
Alternative performance measures
Key indicators used to manage the TUI Group are EBITA and underlying EBITA. We
consider EBITA to be the most suitable performance indicator for explaining the
development of the TUI Group's operating performance. EBITA comprises earnings
before interest, taxes and goodwill
impairments; it does not include the results from container shipping
operations nor the results from the measurement of interest hedging instruments.
The table below shows a reconciliation of earnings before taxes from continuing
operations to underlying earnings. In H1 2016 / 17, adjustments including
purchase price allocations worth EUR 37.6 m were effected for continuing
operations, up EUR 3.1 m year-on-year. Material adjustments in H1 related to
expenses of around EUR 24 m for the integration of the French TUI tour operator
following the acquisition of Transat, which went hand in hand with income
generated from the reversal of a restructuring provision no longer required in
Central Region. Adjustments also included one-off items reflecting restructuring
costs in the regions and the cost of integration of Destination Services with
the Source Market organisations.
Reconciliation to underlying earnings
EUR million Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Earnings - 207.5 - 237.8 12.7 - 310.8 - 422.9 26.5
before
income taxes
Result from - 2.3 58.7 n. a. - 2.3 100.3 n. a.
the partial
sale /
measurement
of shares in
Container
Shipping
plus: Net 27.4 41.0 - 33.2 61.2 81.7 - 25.1
interest
expense and
expense from
the
measurement
of interest
hedges
EBITA - 182.4 - 138.1 - 32.1 - 251.9 - 240.9 - 4.6
Adjustments:
less: Gains - - 0.6 0.7 0.9
on disposals
plus: 16.9 3.8 17.1 5.5
Restructurin
g expense
plus: 7.5 6.0 15.2 17.6
Expense from
purchase
price
allocation
plus: 4.0 2.9 4.6 10.5
expense /
less: income
from other
one-off
items
Underlying - 154.0 - 126.0 - 22.2 - 214.3 - 206.4 - 3.8
EBITA
Key figures of income statement
Key figures of income statement
EUR million Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Earnings 102.8 145.4 - 29.3 315.0 339.3 - 7.2
before
interest,
income
taxes,
depreciation
, impairment
and rent
(EBITDAR)
Operating 184.9 190.9 - 3.1 367.3 392.4 - 6.4
rental
expenses
Earnings - 82.1 - 45.6 - 80.0 - 52.3 - 53.1 + 1.5
before
interest,
income
taxes,
depreciation
and
impairment
(EBITDA)
Depreciation 100.3 92.4 + 8.5 199.6 187.8 + 6.3
/
amortisation
less
reversals of
depreciation
1)
Earnings - 182.4 - 138.1 - 32.1 - 251.9 - 240.9 - 4.6
before
interest,
income taxes
and
impairment
of goodwill
(EBITA)
Impairment - - - - - -
of goodwill
Earnings - 182.4 - 138.1 - 32.1 - 251.9 - 240.9 - 4.6
before
interest and
income taxes
(EBIT)
Interest 27.4 41.0 - 33.2 61.2 81.7 - 25.1
result and
earnings
from the
measurement
of interest
hedges
Result from - 2.3 58.7 + 96.1 - 2.3 100.3 + 97.7
the partial
sale /
measurement
of shares in
Container
Shipping
Earnings - 207.5 - 237.8 + 12.7 - 310.8 - 422.9 + 26.5
before
income taxes
(EBT)
* On property, plant and equipment, intangible asssets, financial and other
assets
Other segment indicators
Underlying EBITDA
EUR million Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Northern - 94.6 - 63.3 - 49.4 - 110.8 - 92.2 - 20.2
Region
Central - 86.6 - 78.8 - 9.9 - 134.1 - 101.0 - 32.8
Region
Western - 50.0 - 44.1 - 13.4 - 93.7 - 67.9 - 38.0
Region
Hotels & 97.6 88.1 10.8 167.9 138.4 21.3
Resorts
Cruises 60.1 47.6 26.3 101.6 70.0 45.1
Other 1.5 5.6 - 73.2 16.2 7.4 118.9
Tourism
Tourism - 72.0 - 44.9 - 60.4 - 52.9 - 45.3 - 16.8
All other 12.1 4.7 157.4 25.6 11.9 115.1
segments
TUI Group - 59.9 - 40.2 - 49.0 - 27.3 - 33.4 18.3
Discontinued - 3.0 17.5 n. a. - 15.2 7.8 n. a.
operations
Total - 62.9 - 22.7 - 177.1 - 42.5 - 25.6 - 66.0
EBITDA
EBITDA
EUR million Q2 2016 Q2 2015 Var. % H1 2016 H1 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Northern - 97.4 - 64.4 - 51.2 - 114.8 - 95.9 - 19.7
Region
Central - 81.2 - 79.1 - 2.7 - 129.6 - 106.2 - 22.0
Region
Western - 74.9 - 45.7 - 63.9 - 118.7 - 69.8 - 70.1
Region
Hotels & 97.6 89.1 9.5 167.3 139.8 19.7
Resorts
Cruises 60.1 47.6 26.3 101.6 70.0 45.1
Other 0.5 4.2 - 88.1 14.7 4.2 250.0
Tourism
Tourism - 95.3 - 48.3 - 97.3 - 79.5 - 57.9 - 37.3
All other 13.2 2.7 388.9 27.2 4.8 466.7
segments
TUI Group - 82.1 - 45.6 - 80.0 - 52.3 - 53.1 1.5
Discontinued - 6.6 - 9.3 29.0 - 22.1 - 29.1 24.1
operations
Total - 88.7 - 54.9 - 61.6 - 74.4 - 82.2 9.5
Employees
Employees
31 Mar 31 Mar 2016 restated Var. %
2017
Northern Region 14,081 14,578 - 3.4
Central Region 10,123 10,219 - 0.9
Western Region 6,037 5,227 15.5
Hotels & Resorts 4,418 4,867 - 9.2
Cruises 18,447 17,493 5.5
Other Tourism 248 244 1.6
Tourism 53,354 52,628 1.4
All other segments 1,788 1,708 4.7
TUI Group 55,142 54,336 1.5
Discontinued operations 3,556 12,274 - 71.0
Total 58,698 66,610 - 11.9
Corporate Governance
Composition of the Boards
In H1 2016 / 17 the composition of the Executive Board of TUI AG changed as
follows.
In December 2016, the Supervisory Board appointed Frank Rosenberger as TUI AG
Executive Board member IT and New Markets. Frank Rosenberger assumed these
responsibilities as at 1 January 2017, initially as Deputy Executive Board
member.
The current, complete composition of the Executive Board and Supervisory Board
is listed on our website, where it has been made permanently available to the
public.
Risk and Opportunity Report
Successful management of existing and emerging risks and opportunities is
critical to the long-term success of our business and to the achievement of our
strategic objectives. Full details of our risk governance framework and
principal risks and opportunities can be found in the Annual Report 2015 / 16.
The principal risks and uncertainties outlined in that report continue to face
the Group.
Of the above risks, input cost volatility is judged to have increased over the
period under review, H1 2016 / 17, due to sterling remaining at rates
significantly lower than those seen prior to last year's UK Brexit referendum.
In line with TUI's hedging policy, the UK Source Market had already hedged a
significant proportion of its foreign currency requirements ahead of the Brexit
referendum, however on the unhedged portion this results in higher costs which
will impact the UK business in the second half of the year.
With the UK government formally triggering Article 50 on 29th March 2017, Brexit
has gone from being an emerging risk to an active principal risk facing the
Group. At this stage there is still not a great deal of information available to
enable us to confidently and accurately assess the potential impact on the
Group. However, with recent press briefings from EU officials stating that there
will be no special deal for aviation, our main concern at present is centred
around whether or not all of our airlines would, as things stand, continue to
have access to EU airspace as now. We will continue to lobby relevant UK and EU
ministers and officials to stress the importance of there being a special deal
for aviation to protect consumer choice in both regions, and will assess other
steps we might be able to take to ensure the Group is not adversely affected to
any material extent in this area. Our Brexit Steering Committee will continue to
monitor external developments as the political negotiations commence in H2. When
more detailed information eventually becomes available, it will assess whether
there will be any specific impacts on our business model and any necessary
changes we may be forced to take to mitigate these impacts once the UK does
leave the EU.
INTERIM FINANCIAL
STATEMENTS
Income statement of the TUI Group for the period from 1 Oct
2016 to 31 Mar 2017
EUR million Notes H1 2016 / 17 H1 2015 / 16
restated
Turnover (1) 6,382.4 6,178.7
Cost of sales (2) 6,156.5 5,916.5
Gross profit 225.9 262.2
Administrative expenses (2) 601.1 593.8
Other income (3) 5.1 28.4
Other expenses (3) 2.2 3.2
Financial income (4) 37.0 18.5
Financial expenses (4) 81.1 199.7
Share of result of joint (5) 105.6 64.7
ventures and associates
Earnings before income taxes - 310.8 - 422.9
from continuing operations
Income taxes (6) - 65.3 - 76.0
Result from continuing - 245.5 - 346.9
operations
Result from discontinued - 63.1 - 48.0
operations
Group loss - 308.6 - 394.9
Group loss attributable to - 362.9 - 448.9
shareholders of TUI AG
Group loss attributable to (7) 54.3 54.0
non-controlling interest
Earnings per share
Earnings per share
EUR H1 2016 / 17 H1 2015 / 16
restated
Basic and diluted earnings per share - 0.62 - 0.77
from continuing operations - 0.51 - 0.69
from discontinued operations - 0.11 - 0.08
Condensed statement of comprehensive income of the TUI Group
for the period
from 1 Oct 2016 to 31 Mar 2017
EUR million H1 2016 / 17 H1 2015 / 16
Group loss - 308.6 - 394.9
Remeasurements of pension 223.2 - 129.3
obligations and related fund assets
Income tax related to items that - 53.4 20.3
will not be reclassified
Items that will not be reclassified 169.8 - 109.0
to profit or loss
Foreign exchange differences 28.8 138.5
Financial instruments available for 131.9 -
sale
Cash flow hedges - 50.3 112.6
Changes in the measurement of 15.6 - 28.5
companies measured at equity
Income tax related to items that may - 0.2 3.5
be reclassified
Items that may be reclassified to 125.8 226.1
profit or loss
Other comprehensive income 295.6 117.1
Total comprehensive income - 13.0 - 277.8
attributable to shareholders of TUI - 84.8 - 330.2
AG
attributable to non-controlling 71.8 52.4
interest
Allocation of share of shareholders
of TUI AG of total comprehensive
income
Continuing operations - 22.3 - 362.2
Discontinued operations - 62.5 32.0
Financial position of the TUI Group as at 31 Mar 2017
Financial position of the TUI Group as at 31 Mar 2017
EUR million Notes 31 Mar 2017 30 Sep 2016
Assets
Goodwill (8) 2,949.4 2,853.5
Other intangible assets 560.3 545.8
Property, plant and (9) 4,185.3 3,714.5
equipment
Investments in joint 1,272.4 1,180.8
ventures and associates
Financial assets 70.0 50.4
available for sale
Trade receivables and 372.3 315.3
other assets
Derivative financial 103.3 126.8
instruments
Deferred tax assets 381.9 344.7
Non-current assets 9,894.9 9,131.8
Inventories 121.1 105.2
Financial assets (10) 395.0 265.8
available for sale
Trade receivables and 1,750.6 1,320.1
other assets
Derivative financial 389.5 544.6
instruments
Income tax assets 116.1 87.7
Cash and cash equivalents 623.3 2,072.9
Assets held for sale (11) 953.9 929.8
Current assets 4,349.5 5,326.1
14,244.4 14,457.9
Financial position of the TUI Group as at 31 Mar 2017
Financial position of the TUI Group as at 31 Mar 2017
EUR million Notes 31 Mar 2017 30 Sep 2016
Equity and liabilities
Subscribed capital 1,500.7 1,500.7
Capital reserves 4,192.2 4,192.2
Revenue reserves - 3,492.5 - 3,017.8
Equity before 2,200.4 2,675.1
non-controlling
interest
Non-controlling 644.6 573.1
interest
Equity (15) 2,845.0 3,248.2
Pension provisions and (13) 1,168.0 1,410.3
similar obligations
Other provisions 823.7 803.0
Non-current provisions 1,991.7 2,213.3
Financial liabilities (14) 1,861.8 1,503.4
Derivative financial 24.5 27.5
instruments
Income tax liabilities 146.4 22.2
Deferred tax 46.3 62.9
liabilities
Other liabilities 156.7 160.1
Non-current 2,235.7 1,776.1
liabilities
Non-current provisions 4,227.4 3,989.4
and liabilities
Pension provisions and (13) 41.4 40.6
similar obligations
Other provisions 368.4 374.8
Current provisions 409.8 415.4
Financial liabilities (14) 165.6 537.7
Trade payables 1,627.9 2,476.9
Derivative financial 158.3 249.6
instruments
Income tax liabilities 61.9 196.0
Other liabilities 4,164.5 2,872.4
Current liabilities 6,178.2 6,332.6
Liabilities related to (12) 584.0 472.3
assets held for sale
Current provisions and 7,172.0 7,220.3
liabilities
14,244.4 14,457.9
Condensed statement of changes in Group equity for the period from 1
Oct 2016 to 31 Mar 2017
EUR million Subscribed Capital Revenue Equity Non- Total
capital reserves reserves before non- controlling
controlling interest
interest
Balance as at 1,500.7 4,192.2 - 2,675.1 573.1 3,248
1 Oct 2016 3,017.8 .2
Dividends - - - 368.6 - 368.6 - 0.3 -
368.9
Share-based - - 0.5 0.5 - 0.5
payment
schemes
Acquisition of - - - 21.8 - 21.8 - -
own shares 21.8
Group loss - - - 362.9 - 362.9 54.3 -
308.6
Foreign - - 11.4 11.4 17.4 28.8
exchange
differences
Financial - - 131.9 131.9 - 131.9
instruments
available for
sale
Cash Flow - - - 50.4 - 50.4 0.1 -
Hedges 50.3
Remeasurements - - 223.2 223.2 - 223.2
of pension
provisions and
related fund
assets
Changes in the - - 15.6 15.6 - 15.6
measurement of
companies
measured at
equity
Taxes - - - 53.6 - 53.6 - -
attributable 53.6
to other
comprehensive
income
Other - - 278.1 278.1 17.5 295.6
comprehensive
income
Total - - - 84.8 - 84.8 71.8 -
comprehensive 13.0
income
Balance as at 1,500.7 4,192.2 - 2,200.4 644.6 2,845
31 Mar 2017 3,492.5 .0
Condensed statement of changes in Group equity for the period from 1 Oct 2015 to
31 Mar 2016
Condensed statement of changes in Group equity for the period from 1
Oct 2015 to 31 Mar 2016
EUR million Subscribed Capital Revenue Equity Non- Total
capital reserves reserves before non- controlling
controlling interest
interest
Balance as at 1,499.6 4,187.7 - 1,913.4 503.9 2,417
1 Oct 2015 3,773.9 .3
Dividends - - - 327.0 - 327.0 - 0.9 -
327.9
Share-based - - 4.6 4.6 - 4.6
payment
schemes
Issue of 0.5 2.5 - 3.0 - 3.0
employee
shares
Acquisition of - - - 51.3 - 51.3 - -
own shares 51.3
Effects on the - - 0.1 0.1 - 0.1 -
acquisition of
non-controllin
g interest
Group loss - - - 448.9 - 448.9 54.0 -
394.9
Foreign - - 140.0 140.0 - 1.5 138.5
exchange
differences
Cash Flow - - 112.6 112.6 - 112.6
Hedges
Remeasurements - - - 129.3 - 129.3 - -
of pension 129.3
provisions and
related fund
assets
Changes in the - - - 28.5 - 28.5 - -
measurement of 28.5
companies
measured at
equity
Taxes - - 23.9 23.9 - 0.1 23.8
attributable
to other
comprehensive
income
Other - - 118.7 118.7 - 1.6 117.1
comprehensive
income
Total - - - 330.2 - 330.2 52.4 -
comprehensive 277.8
income
Balance as at 1,500.1 4,190.2 - 1,212.6 555.3 1,767
31 Mar 2016 4,477.7 .9
Condensed cash flow statement of the TUI Group
EUR million H1 2016 / 17 H1 2015 / 16
Cash outflow from operating - 278.5 - 565.3
activities
Cash outflow from investing - 695.1 - 243.4
activities
Cash outflow / inflow from - 478.3 199.6
financing activities
Net change in cash and cash - 1,451.9 - 609.1
equivalents
Change in cash and cash - 14.3 41.2
equivalents due to exchange
rate fluctuation
Cash and cash equivalents at 2,403.6 1,682.2
beginning of period
Cash and cash equivalents at 937.4 1,114.3
end of period
of which included in the 314.1 188.7
balance sheet as assets held
for sale
NOTES
General
TUI Group, its major subsidiaries and other shareholdings operate in the tourism
business. TUI AG based in Hanover and Berlin, Germany, is TUI Group's parent
company and a listed corporation under German law. The shares in the Company are
traded on the London Stock Exchange and the Hanover and Frankfurt Stock
Exchanges.
The condensed interim consolidated financial statements of TUI AG and its
subsidiaries cover the period from
1 October 2016 to 31 March 2017. The interim consolidated financial statements
are prepared in euros. Unless stated otherwise, all amounts are stated in
million euros (EUR m).
The interim consolidated financial statements were released for publication by
the Executive Board of TUI AG on 11 May 2017.
Accounting principles
Declaration of compliance
The interim consolidated financial statements for the period ended 31 March 2017
comprise condensed interim consolidated financial statements and an interim
Group management report in accordance with section 37w of the German Securities
Trading Act (WpHG).
The interim consolidated financial statements were prepared in compliance with
the Disclosure and Transparency Rules of the UK Financial Services Authority and
in conformity with the International Financial Reporting Standards (IFRS) and
the relevant Interpretations of the International Accounting Standards Board
(IASB) for interim financial reporting applicable in the European Union.
In accordance with IAS 34, the Group's 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 AG's
consolidated financial statements for financial year 2015 / 16. The interim
financial statements were reviewed by the Group's auditors.
Going concern report according to the UK Corporate Governance Code
TUI Group meets its day-to-day working capital requirements through cash in
hand, bank balances and bank loans. As at 31 March 2017, TUI Group's net debt
position (financial liabilities less cash and cash equivalents) including
discontinued operations totals EUR 1,098.5 m (as at 30 September 2016 net
financial assets of EUR 349.8 m). The increase in net debt versus financial
year-end is driven by normal seasonal cash outflows, mainly within the tour
operators. Net debt consists of EUR 937.4 m of cash and cash equivalents, EUR
170.8 m of current financial liabilities, and EUR 1,865.0 m of non-current
financial liabilities. The Executive Board remains satisfied with the Group's
long-term funding and liquidity position. The sources of debt funding include an
external revolving credit facility of EUR 1,535.0 m maturing in December 2020,
used to manage the seasonality of the Group's cash flows and liquidity. The
revolving credit facility requires compliance with financial covenants. All
covenants were fully complied with at the balance sheet date.
Alongside this credit facility, other bank liabilities exist as at 31 March
2017, for example, loans used to acquire property, plant and equipment. These
bank liabilities total EUR 471.2 m at the balance sheet date.
Apart from these bank liabilities, the Group's main financial liabilities as at
31 March 2017 include:
- bond 2016 / 21 with a nominal value of EUR 300.0 m issued by TUI AG, maturing
in October 2021.
- finance lease obligations worth EUR 1,230.5 m
Due to the current economic factors and political situation in some
destinations, there is more uncertainty over customer demand. TUI's Executive
Board assumes that TUI's business model is sufficiently flexible to compensate
the challenges currently identified. Forecasts have shown that TUI Group will
continue to have sufficient funds available from borrowings and operating cash
flows in order to meet its payment obligations for the foreseeable future and
guarantee its ability to continue as a going concern. The interim financial
statements were therefore prepared on the going concern basis of accounting.
Accounting and measurement methods
The preparation of the interim financial statements requires management to make
estimates and judgements that
affect the reported amounts of assets, liabilities and contingent liabilities as
at the balance sheet date and the reported amounts of turnover and expenses
during the reporting period. Actual results may deviate from the estimates.
The accounting and measurement methods adopted in the preparation of the interim
financial statements as at 31 March 2017 are basically consistent with those
followed in preparing the previous consolidated financial statements for the
financial year ended 30 September 2016. The income taxes were recorded based on
the best estimate of the weighted average tax rate that is expected for the
whole financial year.
Newly applied standards
Since the beginning of the financial year 2016 / 17 the following standards
amended or newly issued by the IASB became mandatorily applicable for the first
time to TUI Group:
New applied standards in financial year 2016/17
Standard Applicable Amendments Impact on
from financial
statements
IFRS 11 1 Jan 2016 The amendments No material
Accounting for specify how to impact
Acquisitions of account for
Interests in Joint the
Operations acquisition of
an interest in
a Joint
Operation that
constitutes a
'business' (as
defined in
IFRS 3).
Accordingly,
the acquirer
has to measure
identifiable
assets and
liabilities at
fair value,
recognise
acquisition-re
lated costs as
expenses,
recognise
deferred tax
assets and
liabilities
and capitalise
any residual
amounts as
goodwill.
Furthermore,
the disclosure
requirements
of IFRS 3
apply. The
amendments are
to be applied
prospectively.
IAS 16 & IAS 38 1 Jan 2016 The amendment No impact
Clarification of clarifies when
Acceptable Methods a method of
of Depreciation and depreciation
Amortisation or
amortisation
based on
revenue may be
appropriate.
According to
it,
depreciation
of an item of
property,
plant and
equipment
based on
revenue
generated by
using the
asset is not
appropriate,
amortisation
based on
revenue for
intangible
assets only in
exceptional
cases. The
amendments are
to be
applied
prospectively.
IAS 16 & IAS 41 1 Jan 2016 Bearer plants No impact
Agriculture: that bear
Bearer Plants biological
assets for
more than one
period without
being an
agricultural
product
themselves,
such as grape
vines or olive
trees, have
this far been
measured at
fair value. In
future, bearer
plants will be
treated as
property,
plant and
equipment in
scope of IAS
16 and are to
be measured at
amortised
cost. By
contrast, the
produce
growing on
bearer plants
will continue
to be measured
at fair value
in accordance
with IAS 41.
Various 1 Jan 2016 The amendments No material
Improvements from the impact
to IFRS Annual
(2012 - 2014) Improvements
Project
comprise
changes to
four
standards: IAS
19, IAS 34,
IFRS 5 and
IFRS 7. The
amendments
introduce
minor changes
to the content
as well as
clarifications
regarding
recognition,
presentation
and
measurement.
IAS 1 1 Jan 2016 The amendments No material
Disclosure address the impact
Initiative application of
materiality
when
presenting the
components of
financial
statements.
The standard
no longer
prescribes a
particular
order of the
notes so that
the order of
the notes may
reflect the
individual
relevance for
the company.
The amendments
clarify that
immaterial
disclosures
are not
required. This
also applies
if disclosure
is required by
another
standard.
Furthermore,
the
presentation
of an entity's
share of other
comprehensive
income of
equity-account
ed associates
and joint
ventures in
the statement
of
comprehensive
income is
clarified.
Amendments to the following standards effective for the first time since the
beginning of financial year 2016 / 17 were not relevant for TUI Group:
- IAS 27: Equity Method in Separate Financial Statements
- IAS 28, IFRS 10 & IFRS 12: Investment Entities: Applying the Consolidation
Exception
Restatement of prior reporting period
The following restatements were made for the first half of financial year 2015 /
16:
Restatement caused by Discontinued operations
Due to the planned sale of the Specialist Group segment in financial year 2016 /
17, the segment is reported as a discontinued operation from 30 September 2016.
The prior year consolidated income statement was restated accordingly.
As the group of companies of the Hotelbeds Group sold was readjusted after the
reclassification to 'Assets held for sale' in the first half year 2015 / 16, the
result from the discontinued operation Hotelbeds Group reported for the first
half of financial year 2015 / 16 also changed retrospectively.
For further explanations please refer to the section 'Acquisitions - Divestments
- Discontinued operations'.
Restated items of the Income statement of the TUI Group for
the period
from 1 Oct 2015 to 31 Mar 2016
H1 2015 / 16
EUR million before Restatement Subsequent restated
restatement Specialist adjustment
Group of
entities of
Hotelbeds
Group to be
sold
Turnover 6,792.3 - 613.6 - 6,178.7
Cost of sales 6,497.4 - 580.9 - 5,916.5
Gross profit 294.9 - 32.7 - 262.2
Administrative 673.2 - 79.4 - 593.8
expenses
Other income 28.5 - 0.1 - 28.4
Other expenses 3.0 0.2 - 3.2
Financial income 18.8 - 0.3 - 18.5
Financial 200.3 - 0.6 - 199.7
expenses
Share of result 63.7 - 1.0 64.7
of joint
ventures and
associates
Earnings before - 470.6 46.7 1.0 - 422.9
income taxes
from continuing
operations
Income taxes - 89.1 16.0 - 2.9 - 76.0
Result from - 381.5 30.7 3.9 - 346.9
continuing
operations
Result from - 13.4 - 30.7 - 3.9 - 48.0
discontinued
operations
Group loss - 394.9 - - - 394.9
Group of consolidated companies
The consolidated financial statements include all major 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 and have entitlements
regarding the returns, or have the ability to affect the level of those variable
returns through its decision-making power.
The interim financial statements as at 31 March 2017 included a total of 415
subsidiaries of TUI AG.
Since 1 October 2016, a total of seven companies have been newly included in the
consolidation. Four of these companies have been newly established and three
companies have been acquired. Conversely, a total of nine companies have been
deconsolidated since 1 October 2016, with five of these companies deconsolidated
due to liquidation, three companies due to a merger, and one due to sale.
Following the acquisition of two joint ventures and the merger of one joint
venture, the number of joint ventures and associates measured at equity
increased by one company in total compared to 30 September 2016.
Acquisitions - Divestments - Discontinued operations
Acquisitions
In the first half of 2016 / 17, 18 travel agencies were acquired by the purchase
of trade and assets. In addition, 99.99 % of the shares in Transat France S.A.,
Ivry-sur-Seine, France (Transat), a french tour operator, were acquired on
31 October 2016. The acquisition aim is to increase market presence in France.
The acquisition included majority stakes in subsidiary companies Transat
Développement SAS, Ivry-sur-Seine, France, and Tourgreece Tourism Enterprise
A.E., Athens, Greece. The considerations for all acquisitions by TUI Group
exclusively consisted of payments, totalling EUR 64.0 m for Transat and EUR 3.9
m for the travel agencies.
The difference arising between the considerations and the remeasured acquired
net assets as at the acquisition date was carried as provisional goodwill of EUR
89.1 m, thereof EUR 86.0 m for Transat. This goodwill essentially constitutes
part of the future synergy, earnings and cost savings potential.
Statement of financial position of Transat France S.A. as at
the date of
first-time consolidation
EUR million Fair value at date of
first-time consolidation
Other intangible assets 1.2
Property, plant and equipment 5.7
Fixed assets 6.9
Trade receivables 6.1
Other assets 16.0
Cash and cash equivalents 11.2
Other provisions 6.0
Other Liabilities 56.8
Equity - 22.6
Based on the information available, it was not possible to finalise measurement
of several components of the acquired assets and liabilities of the acquisition
of Transat, especially intangible assets and property, plant and equipment, at
the balance sheet date. This purchase allocation will be completed within the
12-month period permitted under IFRS 3.
In the period from November 2016 until March 2017, Transat generated a turnover
of EUR 139.6 m. Due to the seasonal swing, the profit contribution amounts to
EUR - 6.0 m. If the acquisition had occurred on 1 October 2016, consolidated
pro-forma revenue of the TUI Group would have been EUR 26.1 m higher and profit
after tax would have been EUR 1.2 m lower.
No acquisitions were effected after the balance sheet date.
In the present interim financial statements, the purchase price allocations of
the 15 travel agencies acquired in the first half of financial year 2015 / 16
were finalised without a material effect on the consolidated statement of
financial position within the 12-month period stipulated by IFRS 3.
Divestments
The reclassification of the Specialist Group to assets held for sale is
explained in the 'Discontinued Operations' section. The effects of the other
divestments on the TUI Group's net assets, financial position and results of
operations were immaterial.
Discontinued operations
The result from discontinued operations for the reporting period shown in the
consolidated income statement almost exclusively comprises the result of the
Specialist Group. The only other item included is subsequent expenses of EUR 1.2
m for the sale of the Hotelbeds Group.
In the prior year, the result from discontinued operations comprised the result
of Hotelbeds Group, sold on 12 September 2016, and LateRooms Group, sold on 6
October 2015. After reclassification to Assets held for sale in the first half
of 2015 / 16, the Group of companies of the Hotelbeds Group sold was readjusted
so that the result from the discontinued operation Hotelbeds Group reported for
the first half of the prior year changed slightly with retrospective effect.
In the prior year, TUI AG had decided to sell Specialist Group as there was
limited linkage to TUI Group's remaining business and thus very little potential
for integration into the Group's strategy. In the reporting period, Specialist
Group only comprises the tour operators combined under the Travelopia brand,
offering in particular expedition travel, luxury tours, sporting events, student
travel and sailing trips. The language schools business was sold in financial
year 2015 / 16.
In February 2017, TUI AG concluded an agreement with Kohlberg Kravis Roberts &
Co. L.P. on the sale of Travelopia. The closing of the transaction is expected
for the third quarter of the financial year following regulatory approvals. In
the second quarter of 2016 / 17, measurement of the discontinued operation at
the agreed purchase price less costs to sell resulted in an impairment of EUR
47.4 m, shown as goodwill impairment in the income statement of the Specialist
Group.
The result from this discontinued operation is reported separately from the
income and expenses of continuing operations in the consolidated income
statement, shown in a separate line as 'Result from discontinued operations'.
The consolidated income statement of the prior year was restated accordingly.
Income statement of the discontinued operation Specialist
Group for
the period from 1 Oct 2016 to 31 Mar 2017
EUR million H1 2016 / 17 H1 2015 / 16
Turnover 546.3 613.6
Cost of sales 497.1 580.9
Gross profit 49.2 32.7
Administrative expenses 66.9 79.4
Other income 0.1 0.1
Other expenses 4.7 - 0.2
Impairment of goodwill 47.4 -
Financial income 0.1 0.3
Financial expenses 0.4 0.6
Earnings before income taxes from - 70.0 - 46.7
discontinued operation
Income taxes - 8.1 - 16.0
Result from discontinued operation - 61.9 - 30.7
Specialist Group
Result from discontinued operation - 61.9 - 30.6
Specialist Group attributable to
shareholders of TUI AG
Result from discontinued operation - - 0.1
Specialist Group attributable to
non-controlling interest
The decline in turnover by Specialist Group is partly driven by foreign exchange
effects. Turnover also decreased due to the sale of the language schools
business in the prior year as well as the rugby and cricket world cups held in
financial year 2015 / 16. A further reason for the year-on-year decline in
turnover was the removal of Travelopia from TUI Group's distribution network,
which went hand in hand with a corresponding decrease in the cost of sales.
Moreover, the suspension of depreciation / amortisation, effected since 30
September 2016 in line with IFRS 5, caused an overall improvement in earnings.
The assets and liabilities are shown separately in the consolidated statement of
financial position under 'Assets held for sale' and 'Liabilities related to
assets held for sale'. The table below presents the key asset and liability
groups of the discontinued operation Specialist Group.
Assets and liabilities of the discontinued operation Specialist
Group as at 31 Mar 2017
EUR million 31 Mar 2017
Assets
Goodwill 6.4
Other intangible assets 140.7
Property, plant and equipment 219.1
Trade receivables and other assets 0.9
Trade receivables and other assets from 3.1
continuing operations
Derivative financial instruments 0.2
Deferred tax assets 18.1
Non-current assets 388.5
Inventories 56.9
Trade receivables from third-parties and 170.4
other assets
Receivables from continuing operations 103.0
Derivative financial instruments 1.7
Income tax assets 18.9
Cash and cash equivalents 314.0
Assets held for sale 0.3
Current assets 665.2
1,053.7
Assets and liabilities of the discontinued operation Specialist Group as at 31
Mar 2017
Assets and liabilities of the discontinued operation Specialist
Group as at 31 Mar 2017
EUR million 31 Mar 2017
Equity and liabilities
Revenue reserves 223.8
Equity before non-controlling interest 223.8
Non-controlling interest - 2.0
Equity 221.8
Other provisions 15.0
Non-current provisions 15.0
Financial liabilities to third parties 3.2
Financial liabilities to continuing 243.7
operations
Derivative financial instruments 0.1
Deferred tax liabilities 33.7
Other liabilities 0.7
Non-current liabilities 281.4
Non-current provisions and liabilities 296.4
Other provisions 2.1
Current provisions 2.1
Financial liabilities to third parties 5.2
Financial liabilities to continuing 2.4
operations
Trade payables to third parties 82.2
Trade payables to continuing operations 2.2
Derivative financial instruments 0.8
Income tax liabilities 17.7
Other liabilities 422.9
Current liabilities 533.4
Current provisions and liabilities 535.5
1,053.7
Receivables from and liabilities to TUI Group's continuing operations and shares
in companies classified as continuing operations have been eliminated in the
consolidated statement of financial position and are therefore not included in
the items Assets held for sale or Liabilities related to assets held for sale.
Reconciliation to assets held for sale in the financial
position of the
TUI Group as at 31 Mar 2017
EUR million 31 Mar 2017
Current and non-current assets of the 1,053.7
Specialist Group
Elimination of receivables from continuing - 106.1
operations
Assets held for sale of the Specialist Group 947.6
Reconciliation to liabilities related to assets held for sale in
the financial position of the TUI Group as at 31 Mar 2017
Reconciliation to liabilities related to assets held for sale
in
the financial position of the TUI Group as at 31 Mar 2017
EUR million 31 Mar 2017
Current and non-current liabilities 831.9
of the Specialist Group
Elimination of liabilities against - 248.3
continuing operations
Liabilities related to assets held 583.6
for sale of the Specialist Group
The Group's cash flow statement presents the cash flows for the overall Group
including the discontinued operations. A separate presentation of the cash flows
for the discontinued operation Specialist Group is provided in the following
table. Cash flows from intra-Group financing schemes and intra-Group dividends
and business disposals are not taken into account.
Condensed cash flow statement of the discontinued operation
Specialist Group
EUR million H1 2016 / 17 H1 2015 / 16
Cash inflow from operating 30.4 25.0
activities
Cash outflow from investing - 3.0 - 12.9
activities
Cash outflow from financing - 4.4 - 0.9
activities
Net change in cash and cash 23.0 11.2
equivalents of the discontinued
operation Specialist Group
Notes to the consolidated income statement
TUI Group's results reflect the significant seasonal swing in tourism between
the Winter and Summer travel months. The Group seeks to counteract the seasonal
swing through a broad range of holiday offerings in the Summer and Winter season
and its presence in different travel markets worldwide with varying annual
cycles. The consolidated income statement reflects the seasonality of the
tourism business, with the consequence that the result generated in the period
from October to March is negative. Due to the seasonality of the business, a
comparison of the first half year's results with the full-year results is not
meaningful.
(1) Turnover
The turnover growth versus the first half of the prior year is driven by higher
customer volume, an increase in long-haul bookings, higher selling prices in the
UK, the acquisition of Transat's French tour operator business and higher
average selling prices in the Hotels & Resorts segment. In addition, the
expansion in Thomson Cruises with the first winter season of the cruise ship TUI
Discovery led to an increase in turnover.
(2) Cost of sales and administrative expenses
Cost of sales represents the expenses incurred to deliver tourism services. In
addition to the expenses for staff costs, depreciation, amortisation, rental and
leasing, they include all costs incurred by the Group in connection with the
provision and delivery of airline services, hotel accommodation and cruises as
well as distribution costs.
Administrative expenses comprise all expenses incurred in connection with the
performance of the administrative functions and break down as follows:
Administrative expenes
EUR million H1 2016 / H1 2015 / 16
17 restated
Staff cost 355.1 334.7
Rental and leasing expenses 30.9 28.4
Depreciation, amortisation and 35.1 33.3
impairment
Others 180.0 197.4
Total 601.1 593.8
The cost of sales and administrative expenses include the following expenses for
rent and leasing, staff and depreciation / amortisation:
Rental and leasing expenses
EUR million H1 2016 / 17 H1 2015 / 16
restated
Rental and leasing expenses 383.3 400.8
thereof cost of sales 352.4 372.4
thereof administrative expenses 30.9 28.4
The year-on-year decline in rental and leasing expenses is primarily driven by
foreign exchange effects and above all relates to leasing expenses for aircraft.
Staff cost
EUR million H1 2016 / 17 H1 2015 / 16
restated
Wages and salaries 900.1 875.1
thereof cost of sales 605.4 600.6
thereof administrative expenses 294.7 274.5
Social security contributions, pension 214.2 204.0
costs and benefits
thereof cost of sales 153.8 143.8
thereof administrative expenses 60.4 60.2
Total 1,114.3 1,079.1
The year-on-year increase in administrative expenses for wages and salaries in
the first half year mainly results from one-off expenses for the integration of
the French TUI tour operator following the acquisition of Transat. The rise in
staff costs in operating areas, in particular in airlines and hotels, was almost
fully offset by an opposite effect driven by foreign exchange effects.
Depreciation/amortisation/impairment
EUR million H1 2016 / 17 H1 2015 / 16
restated
Depreciation and amortisation 198.2 186.8
thereof cost of sales 163.1 154.3
thereof administrative expenses 35.1 32.5
Impairment of property, plant and - 0.8
equipment and other intangible assets
thereof administrative expenses - 0.8
Total 198.2 187.6
(3) Other income/other expenses
Other income/other expenses
EUR million H1 2016 / 17 H1 2015 / 16
restated
Other income 5.1 28.4
Other expenses 2.2 3.2
Total 2.9 25.2
In the first half year 2015 / 16, other income mainly included proceeds from the
sale of a Riu Group hotel, a joint venture and a cruise ship as well as from the
sale of land.
(4) Financial result
The improvement of the financial result from EUR - 181.2 m in the first half of
the prior year to EUR - 44.1 m in the current financial year mainly results from
the expenses relating to the measurement of the investment in Hapag-Lloyd AG
recognised in the prior year. The measurement with the stock market price of the
Hapag-Lloyd share as at 31 March 2016 led to the recognition of an impairment
amounting to EUR 100.3 m within financial expenses in the prior year. In the
financial year under review, the increase in the value from the rise in the
Hapag-Lloyd share price as at 31 March 2017 and the resulting increase in the
fair value was carried in equity outside profit and loss in line with IAS 39.
For further details, please refer to Note 10 on Financial assets available for
sale.
The interest result reduced from EUR - 81.7 m in the first half of the prior
year to EUR - 61.2 m in the current reporting period and this also contributed
to the improvement of the financial result.
(5) Share of result of joint ventures and associates
Share of result of joint ventures and associates
EUR million H1 2016 / 17 H1 2015 / 16
restated
Northern Region 16.4 1.6
Central Region 1.2 1.0
Western Region 0.1 -
Hotels & Resorts 42.8 30.8
Cruises 38.3 29.8
Other tourism 6.8 1.5
Tourism 105.6 64.7
Total 105.6 64.7
The year-on-year increase in income from joint ventures and associates in the
Northern Region segment is mainly
attributable to the positive trading of the Canadian tour operator Sunwing.
The increase in income from joint ventures in the Hotels & Resorts segment
mainly results from the improvement in the operating performance of Riu hotels.
(6) Income taxes
The tax income arising in the reporting period is partly driven by the
seasonality of the tourism business.
Due to a judgment from the fiscal court Münster on 4 February 2016, a
reassessment of the trade tax risk for the purchase of hotel accomodation was
undertaken, resulting in a separately recognised tax expense of EUR 36.5 m in
the first half of 2015 / 16.
(7) Group loss attributable to non-controlling interest
Group loss attributable to non-controlling interest
EUR million H1 2016 / 17 H1 2015 / 16
Central Region 0.4 - 0.2
Hotels & Resorts 54.0 54.1
Tourism 54.4 53.9
Specialist Group - - 0.1
Hotelbeds Group - 0.4
All other segments - 0.1 - 0.2
Total 54.3 54.0
Notes to the financial position of the TUI Group
(8) Goodwill
The increase in goodwill is mainly attributable to the preliminary goodwill in
connection with the acquisition of Transat France S.A. of EUR 86.0 m. For
further details, please refer to the explanations in the section on
'Acquisitions'.
(9) Property, plant and equipment
In the first half of 2016 / 17, the cruise ship TUI Discovery 2 was acquired for
a purchase price of EUR 209.5 m. In addition, advance payments of EUR 117.5 m
were made for future deliveries of aircraft ordered.
(10) Financial assets available for sale
Current financial assets available for sale include the remaining shares in
Hapag-Lloyd AG of EUR 395.0 m.
The shares in Hapag-Lloyd AG are traded in the regulated market (Prime Standard)
of the Frankfurt Stock Exchange. The measurement of the stake at the closing
rate of the Hapag-Lloyd share in the Xetra main market of EUR 27.5 per share
resulted in a fair value of EUR 395.0 m (Level 1 measurement). The increase in
the fair value compared to 30 September 2016 was recognised in equity outside
profit or loss.
(11) Assets held for sale
Assets held for sale
EUR million 31 Mar 2017 30 Sep 2016
Discontinued Operation Specialist Group 947.6 928.9
Property and hotel facilities 6.2 -
Other assets 0.1 0.9
Total 953.9 929.8
Regarding assets held for sale of the Specialist Group, we refer to the section
on 'Discontinued operations'.
(12) Liabilities related to assets held for sale
Liabilities related to assets held for sale
EUR million 31 Mar 2017 30 Sep 2016
Discontinued Operation Specialist 583.6 472.3
Group
Other disposal groups 0.4 -
Total 584.0 472.3
(13) Pension provisions
Pension provisions decrease by EUR 241.5 m to EUR 1,209.4 m as against the end
of the financial year. The decline in the provisions is primarily driven by
higher capital market interest rates in the Eurozone and in the UK. The
resulting
remeasurement effects of EUR 232.7 m are carried in equity outside profit and
loss.
The plans with a surplus of fund assets, carried under trade receivables and
other assets, show revaluation losses leading to a decrease in the recognised
surplus of funded plans by EUR 9.5 m to EUR 29.1 m. These revaluation effects
are also carried in equity outside profit and loss.
(14) Financial liabilities
Non-current financial liabilities rose by EUR 358.4 m to EUR 1,861.8 m compared
to 30 September 2016. This was mainly driven by the issuance of a bond with a
carrying amount of EUR 295.3 m in October 2016. Moreover, liabilities to banks
grew by EUR 68.0 m, primarily due to the use of long-term credit lines to cover
the payments due in the touristic season.
As at 31 March 2017, current financial liabilities declined by EUR 372.1 m to
EUR 165.6 m versus 30 September 2016. The decline is mainly attributable to the
redemption of a bond with a carrying amount of EUR 306.5 m issued in September
2014.
(15) Changes in equity
Since 30 September 2016, equity decreased by EUR 403.2 m to EUR 2,845.0 m.
In the first half year 2016 / 17, TUI AG paid a dividend of EUR 0.63 per no-par
value share, EUR 368.6 m in total (previous year EUR 327.0 m), to its
shareholders. In the first half of 2016 / 17, the shares of non-controlling
shareholders decreased by EUR 0.3 m due to the payment of dividends (previous
year EUR 0.9 m).
The ongoing measurement of the awards from share option plans serviced with
shares resulted in an increase in equity of EUR 0.5 m in the current financial
year.
In the first half year 2015 / 16, the issuance of employee shares gave rise to
181,280 shares in TUI AG or subscribed capital worth EUR 0.5 m and capital
reserves of EUR 2.5 m, respectively. In the reporting period, the employee share
programme was replaced by equity-settled share-based payments, which will result
in changes in TUI AG's equity in the second half year for the first time.
Moreover, an employee benefit trust of TUI Travel Limited acquired shares in TUI
AG in the first half of 2016 / 17 in order to use them for share option plans.
As the transaction constitutes an acquisition of own shares the purchase cost is
eliminated against revenue reserves, reducing equity by EUR 21.8 m. Overall, own
shares remained basically unchanged due to the issuance of shares in the
framework of the share option plans. The employee benefit trust now holds
2,650,671 shares in TUI AG.
The Group loss in the first half of the year is attributable to the seasonality
of the tourism business.
The changes in financial instruments available for sale of EUR 131.9 m, carried
outside profit and loss, comprise the value increase from a rise in
Hapag-Lloyd's share price in the first half of 2016 / 17. More detailed
information on the increase in fair value is presented in the section on
'Financial instruments available for sale.'
The proportion of gains and losses from hedging instruments used as effective
hedges of future cash flows worth EUR - 50.3 m (pre-tax) is carried under other
comprehensive income in equity outside profit and loss.
The revaluation of pension obligations (in particular actuarial gains and
losses) is also carried under other comprehensive income in equity outside
profit and loss.
Financial instruments
Carrying amounts and fair values according to classes and measurement
categories as at 31 Mar 2017
Category under IAS 39
EUR million Carrying At At Fair Fair Values Carrying Fair value
amount amort cost value value according amount of of
ised with through to IAS 17 financial financial
cost no profit (leases) instruments instruments
effec and
t on loss
profi
t and
loss
Assets
Financial 465.0 - 43.9 421.1 - - 465.0 465.0
assets
Available
for sale
Trade 2,122.9 753.7 - - - - 753.7 753.7
receivables
and other
assets
Derivative
financial
instruments
Hedging 401.4 - - 401.4 - - 401.4 401.4
transaction
s
Other 91.4 - - - 91.4 - 91.4 91.4
derivative
financial
instruments
Cash and 623.3 623.3 - - - - 623.3 623.3
cash
equivalents
Liabilities
Financial 2,027.4 797.0 - - - 1,230.5 797.0 810.1
liabilities
Trade 1,627.9 1,627 - - - - 1,627.3 1,627.3
payables .3
Derivative
financial
instruments
Hedging 152.0 - - 152.0 - - 152.0 152.0
Other 30.8 - - - 30.8 - 30.8 30.8
derivative
financial
instruments
Other 4,321.2 114.0 - - - - 114.0 114.0
liabilities
Carrying amounts and fair values according to classes and measurement categories
as at 30 Sep 2016
Carrying amounts and fair values according to classes and measurement
categories as at 30 Sep 2016
Category under IAS 39
EUR million Carrying At At Fair Fair Values Carrying Fair value
amount amort cost value value according amount of of
ised with through to IAS 17 financial financial
cost no profit (leases) instruments instruments
effec and
t on loss
profi
t and
loss
Assets
Financial 316.2 - 44.4 271.8 - - 316.2 316.2
assets
Available
for sale
Trade 1,635.4 689.7 - - - - 689.7 689.7
receivables
and other
assets
Derivative
financial
instruments
Hedging 539.7 - - 539.7 - - 539.7 539.7
transaction
s
Other 131.7 - - - 131.7 - 131.7 131.7
derivative
financial
instruments
Cash and 2,072.9 2,072 - - - - 2,072.9 2,072.9
cash .9
equivalents
Liabilities
Financial 2,041.1 809.4 - - - 1,231.8 809.4 818.0
liabilities
Trade 2,476.9 2,476 - - - - 2,476.4 2,476.4
payables .4
Derivative
financial
instruments
Hedging 219.0 - - 219.0 - - 219.0 219.0
transaction
s
Other 58.1 - - - 58.1 - 58.1 58.1
derivative
financial
instruments
Other 3,032.5 134.2 - - - - 134.2 134.2
liabilities
Due to the short remaining terms of cash and cash equivalents, current trade
receivables and other assets, current trade payables and other liabilities, the
carrying amounts are taken as realistic estimates of the fair values.
The fair values of non-current trade receivables and other assets correspond to
the present values of the cash flows associated with the assets, taking account
of current interest parameters which reflect market- and counterparty-related
changes in terms and expectations. There are no financial investments held to
maturity.
Financial instruments classified as 'Financial assets available for sale'
include an amount of EUR 43.9 m (previous year EUR 44.4 m) for interests in
partnerships and corporations for which no active market exists. The fair values
of these non-listed interests cannot be calculated by means of a measurement
model since their future cash flows cannot be reliably determined. The
investments are carried at cost. In the reporting period, and also as at 30
September 2016, there were no major disposals of interests in partnerships or
corporations measured at cost. TUI does not intend to sell or derecognise the
interest in these partnerships or corporations in the near future.
Aggregation according to measurement categories under IAS
39 as at 31 Mar 2017
At At cost Fair value Carrying Fair
amortis amount of value
ed cost financial
instruments
EUR with no through Total
million effect profit
on and
profit loss
and loss
Loans and 1,377.0 - - - 1,377.0 1,377.0
receivabl
es
Financial
assets
available - 43.9 421.1 - 465.0 465.0
for sale
held for - - - 91.4 91.4 91.4
trading
Financial
liabiliti
es
at 2,538.3 - - - 2,538.3 2,551.4
amortised
cost
held for - - - 30.8 30.8 30.8
trading
Aggregation according to measurement categories under IAS 39 as at 30 Sep 2016
Aggregation according to measurement categories under IAS
39 as at 30 Sep 2016
At At cost Fair value Carrying Fair
amortis amount of value
ed cost financial
instruments
EUR with no through Total
million effect profit
on and
profit loss
and loss
Loans and 2,762.6 - - - 2,762.6 2,762.6
receivabl
es
Financial
assets
available - 44.4 271.8 - 316.2 316.2
for sale
held for - - - 131.7 131.7 131.7
trading
Financial
liabiliti
es
at 3,420.0 - - - 3,420.0 3,428.6
amortised
cost
held for - - - 58.1 58.1 58.1
trading
Fair value measurement
The following table presents the fair values of the recurring, non-recurring and
other financial instruments recognised at fair value in accordance with the
underlying measurement levels. The individual levels have been defined as
follows in line with the input factors:
- Level 1: quoted (unadjusted) prices in active markets for identical assets or
liabilities.
- Level 2: input factors for the measurement are quoted market price other than
those mentioned in Level 1, directly (as market price quotation) or indirectly
(derivable from market price quotation) observable in the market for the asset
or liability.
- Level 3: input factors for the measurement of the asset or liability are based
on non-observable market data.
Hierarchy of financial instruments measured at fair value as
at 31 Mar 2017
Fair value hierarchy
EUR million Total Level 1 Level 2 Level 3
Assets
Financial assets Available 421.1 395.0 - 26.1
for sale
Derivative financial
instruments
Hedging transactions 401.4 - 401.4 -
Other derivative financial 91.4 - 91.4 -
instruments
Liabilities
Derivative financial
instruments
Hedging transactions 152.0 - 152.0 -
Other derivative financial 30.8 - 30.8 -
instruments
Hierarchy of financial instruments measured at fair value as at 30 Sep 2016
Hierarchy of financial instruments measured at fair value as
at 30 Sep 2016
Fair value hierarchy
EUR million Total Level 1 Level 2 Level 3
Assets
Financial assets Available 271.8 265.8 - 6.0
for sale
Derivative financial
instruments
Hedging transactions 539.7 - 539.7 -
Other derivative financial 131.7 - 131.7 -
instruments
Liabilities
Derivative financial
instruments
Hedging transactions 219.0 - 219.0 -
Other derivative financial 58.1 - 58.1 -
instruments
At the end of every reporting period, TUI Group checks whether there are any
reasons for reclassification to or from one of the measurement levels. Financial
assets and financial liabilities are generally transferred out of Level 1 into
Level 2 if the liquidity and trading activity no longer indicate an active
market. The opposite situation applies to potential transfers out of Level 2
into Level 1. In the reporting period, there were no transfers between Level 1
and Level 2.
In the reporting period, there were also no transfers out of or in Level 3.
Reclassifications from Level 3 to Level 2 or Level 1 are effected if observable
market price quotations become available for the asset or liability concerned.
TUI Group records transfers to and out of Level 3 as at the date of the
obligating event or occasion triggering the transfer.
Level 1 financial instruments
The fair value of financial instruments for which an active market is available
is based on the market price quotation at the balance sheet date. An active
market exists if price quotations are easily and regularly available from a
stock exchange, traders, brokers, price service providers or regulatory
authorities, and if these prices represent actual and regular market
transactions between independent business partners. These financial instruments
are categorised within Level 1. The fair values correspond to the nominal values
multiplied by the price quotations at the balance sheet date. Level 1 financial
instruments primarily comprise shares in listed companies classified as
available for sale and bonds issued in the category 'Financial liabilities
measured at amortised cost'.
Level 2 financial instruments
The fair values of financial instruments not traded in an active market, e. g.
over the counter derivatives (OTC), are
determined by means of valuation techniques. These valuation techniques maximise
the use of observable market data and minimise the use of Group-specific
assumptions. If all essential input factors for the determination of the fair
value of an instrument are observable, the instrument is categorised within
Level 2.
If one or several of the essential input factors are not based on observable
market data, the instrument is categorised within Level 3.
The specific valuation techniques used for the measurement of financial
instruments are:
- For over the counter bonds, liabilities to banks, promissory notes and other
non-current financial liabilities, the fair value is determined as the present
value of future cash flows, taking account of observable yield curves and the
respective credit spread, which depends on the credit rating.
- For over the counter derivatives, the fair value is determined by means of
appropriate calculation methods, e. g. by discounting the expected future cash
flows. The forward prices of forward transactions are based on the spot or cash
prices, taking account of forward premiums and discounts. The calculation of the
fair values of foreign exchange options and interest derivatives is based on the
Black & Scholes model and the Turnbull & Wakeman model for fuel hedge options.
The fair values determined on the basis of the Group's own systems are regularly
compared with fair value confirmations of the external counterparties.
- Other valuation techniques, e. g. discounting future cash flows, are used for
the measurement of the fair values of other financial instruments.
Level 3 financial instruments
The following table shows the development of the values of the financial
instruments measured at fair value on a recurring basis categorised within Level
3 of the measurement hierarchy.
Financial assets measured at fair value in level 3
EUR million Financial assets
available for sale
Balance as at 1 Oct 2015 340.7
Disposals -
conversion / rebooking 334.9
Total gains or losses for the period 0.2
recognised through profit and loss 0.2
Balance as at 30 Sep 2016 6.0
Change in unrealised gains or losses -
for the period for financial assets
held at the balance sheet date
Balance as at 1 Oct 2016 6.0
Additions 20.1
Disposals -
repayment / sale -
conversion / rebooking -
Total gains or losses for the period -
recognised through profit and loss -
recognised in other comprehensive -
income
Balance as at 31 Mar 2017 26.1
Change in unrealised gains or losses -
for the period for financial assets
held at the balance sheet date
The additions to Level 3 of the valuation hierarchy relate to the 15.38 % stake
in peakwork AG, which was added in
October 2016.
Contingent liabilities
As at 31 March 2017, contingent liabilities amount to EUR 291.3 m (as at 30
September 2016 EUR 326.1 m). Contingent liabilities are reported at an amount
representing the best estimate of the potential expenditure that would be
required to meet the potential obligation as at the balance sheet date.
Contingent liabilities as at 31 March 2017 are principally
attributable to the granting of guarantees for the benefit of Hapag-Lloyd AG and
TUI Cruises GmbH for collateralised ship financing schemes. The year-on-year
decline is driven by scheduled repayments and the return of guarantees.
Other financial commitments
Financial commitments from operating
lease, rental and charter contracts
EUR million 31 Mar 2017 30 Sep 2016
Nominal value 3,428.9 3,437.4
Fair value 3,233.3 3,319.6
Nominal values of other financial commitments
Nominal values of other financial commitments
EUR million 31 Mar 2017 30 Sep 2016
Order commitments in respect of 4,789.5 4,786.7
capital expenditure
Other financial commitments 97.5 114.0
Total 4,887.0 4,900.7
Fair value 4,599.8 4,711.2
Due to offsetting effects, capital commitments for investments rose by EUR 2.8 m
as at 31 March 17 compared to 30 September 2016. Increases in the period are
largely driven by commitments with respect to aircraft. This includes new order
commitments for aircraft and an increase resulting from foreign exchange effects
from liabilities denominated in non-functional currencies. Off-setting this
increase is a significant reduction in capital commitments for ships as a result
of the delivery of the TUI Discovery 2.
Notes to the Group's cash flow statement
Based on the after-tax Group result, the cash flow from operating activities is
determined using the indirect method. The cash flow statement shows the
continuing and discontinued operations. In the reporting period, cash and cash
equivalents declined by EUR 1,466.2 m to EUR 937.4 m, including an amount of EUR
314.1 m carried as assets held for sale.
In the reporting period, the outflow of cash from operating activities amounted
to EUR 278.5 m (previous year EUR 565.3 m).
The outflow of cash from investing activities totals EUR 695.1 m (previous year
EUR 243.4 m). It comprises a cash outflow for investments in property, plant and
equipment and intangible assets of EUR 603.6 m. The Group also recorded an
inflow of EUR 19.8 m from the sale of property, plant and equipment and
intangible assets. The cash flow from investing activities also includes an
outflow of EUR 103.1 m in connection with the acquisition of consolidated
companies and for acquisitions of and a capital increase in joint ventures as
well as an investment in a tourism technology provider. The sale of joint
ventures in prior years resulted in an inflow of EUR 11.7 m. Part of the
expenses incurred in connection with the disposal of the Hotelbeds Group in the
prior year resulted in cash outflows in the first half of the current financial
year (EUR 20.5 m). A further EUR 4.5 m had already resulted in cash outflows
prior to the disposal of the Specialist Group. The sale of shares in Hapag-Lloyd
Aktiengesellschaft resulted in an inflow of EUR 5.1 m in the reporting period.
The outflow of cash from financing activities totalled EUR 478.3 m (previous
year inflow of EUR 199.6 m). At the reporting date, an amount of EUR 93.5 m was
drawn from the external revolving credit line to manage the seasonality of cash
flows and the Group's liquidity. The issuance of a bond resulted in an inflow of
EUR 294.9 m for TUI AG in October 2016. Other TUI Group companies took out
further financial liabilities worth EUR 4.9 m. In September 2014, TUI AG had
issued an unsecured bond maturing on 1 October 2019. This bond was redeemed as
at 18 November 2016. An amount of EUR 306.8 m was spent to redeem the bond,
while a further cash outflow of EUR 134.3 m was used to redeem other financial
liabilities,
including EUR 51.5 m for finance lease liabilities. An outflow of cash of EUR
38.4 m relates to interest payments, while an outflow of cash of EUR 368.6 m
resulted from dividends paid to TUI AG shareholders and EUR 1.4 m for dividends
paid to minority shareholders. The employee benefit trust of TUI Travel Ltd.
purchased shares in TUI AG worth EUR 21.8 m in order to use them for its share
option plans.
Cash and cash equivalents also decreased by EUR 14.3 m due to changes in
exchange rates (previous year increase of EUR 41.2 m).
As at 31 March 2017, cash and cash equivalents worth EUR 175.1 m were subject to
restrictions (previous year EUR 179.2 m). This amount included EUR 116.3 m for
cash collateral deposited with a Belgian subsidiary by Belgian tax authorities
in
financial year 2012 / 13 in relation to a long-standing litigation over VAT
refunds for the period from 2001 to 2011 without admission of guilt, the purpose
being to suspend the accrual of interest for both parties. In order to
collateralise a potential repayment, the Belgian government was granted a bank
guarantee. Due to the bank guarantee, TUI's ability to dispose of the cash and
cash equivalents has been restricted. The remaining restrictions of EUR 58.8 m
relate to cash and cash equivalents to be deposited due to legal or regulatory
requirements.
Segment indicators
In the second quarter of 2016 / 17, the hotel operating company Blue Diamond
Hotels and Resorts Inc., St. Michael, Barbados, previously carried in the
Northern Region segment, was integrated in the hotel business and is therefore
now reported within the Hotels & Resorts segment. Moreover, the UK cruise
business Thomson Cruises, which was also previously reported within the Northern
Region segment, was transferred to the Cruises segment. Due to the planned
disposal of the Specialist Group segment in financial year 2016 / 17, this
segment is carried as a discontinued operation. The prior year's segment
reporting was restated accordingly.
Turnover by segment for the period from 1 Oct 2016 to 31 Mar
2017
EUR million External Group H1 2016 /17
Total
Northern Region 2,232.9 19.3 2,252.2
Central Region 2,028.0 8.8 2,036.8
Western Region 1,114.0 21.3 1,135.3
Hotels & Resorts 300.0 264.6 564.6
Cruises 345.9 0.3 346.2
Other Tourism 290.4 106.5 396.9
Consolidation - - 396.5 - 396.5
Tourism 6,311.2 24.3 6,335.5
All other segments 71.2 22.1 93.3
Consolidation - - 46.4 - 46.4
Continuing 6,382.4 - 6,382.4
operations
Discontinued 546.3 - 546.3
operations
Sum of the segments 6,928.7 - 6,928.7
Turnover by segment for the period from 1 Oct 2015 to 31 Mar 2016
Turnover by segment for the period from 1 Oct 2015 to 31 Mar
2016
EUR million External Group H1 2015 / 16
restated restated Total restated
Northern Region 2,358.3 30.7 2,389.0
Central Region 1,987.1 21.0 2,008.1
Western Region 915.6 9.5 925.1
Hotels & Resorts 266.0 264.3 530.3
Cruises 308.9 0.4 309.3
Other Tourism 290.0 105.0 395.0
Consolidation - - 393.5 - 393.5
Tourism 6,125.9 37.4 6,163.3
All other segments 52.8 18.6 71.4
Consolidation - - 56.0 - 56.0
Continuing 6,178.7 - 6,178.7
operations
Discontinued 1,067.5 26.7 1,094.2
operations
Sum of the segments 7,246.2 26.7 7,272.9
The following tables show the Group performance indicators EBITA and underlying
EBITA. The TUI Group defines EBITA as earnings before interest, income taxes and
goodwill impairment. EBITA includes amortisation of other intangible assets.
EBITA does not include measurement effects from interest hedges and measurement
effects from container shipping, as the stake in Hapag-Lloyd AG is a financial
investment and not an operating investment from TUI AG's perspective.
EBITA by segment
EUR million H1 2016 / 17 H1 2015 / 16
restated
Northern Region - 148.1 - 131.5
Central Region - 140.2 - 117.0
Western Region - 128.8 - 79.4
Hotels & Resorts 120.0 95.2
Cruises 75.0 49.3
Other Tourism - 14.9 - 20.0
Tourism - 237.0 - 203.4
All other segments - 14.9 - 37.5
Continuing operations - 251.9 - 240.9
Discontinued operations - 22.2 - 71.7
Sum of the segments - 274.1 - 312.6
In the first half of 2016 / 17, EBITA includes results of EUR 105.6 m (previous
year EUR 64.7 m) from joint ventures and associates measured at equity,
primarily generated in Tourism.
The underlying EBITA has been adjusted for results on disposal of financial
investments, expenses in connection with restructuring measures according to IAS
37, all effects of purchase price allocations, ancillary acquisition cost and
conditional purchase price payments and other expenses for and income from
one-off items. The one-off items carried as adjustments are income and expense
items impacting or distorting the assessment of the operating profitability of
the segments and the Group due to their size or frequency.
Underlying EBITA by segment
EUR million H1 2016 / 17 H1 2015 / 16
restated
Northern Region - 138.0 - 120.9
Central Region - 143.7 - 110.6
Western Region - 102.2 - 75.7
Hotels & Resorts 122.8 96.0
Cruises 75.0 49.3
Other Tourism - 13.4 - 16.7
Tourism - 199.5 - 178.6
All other segments - 14.8 - 27.8
Continuing operations - 214.3 - 206.4
Discontinued operations - 15.3 - 21.8
Sum of the segments - 229.6 - 228.2
Reconciliation to earnings before income taxes of the continuing
operations of the TUI Group
Reconciliation to earnings before income taxes of the
continuing
operations of the TUI Group
EUR million H1 2016 / 17 H1 2015 / 16
restated
Underlying EBITA of - 214.3 - 206.4
continuing operations
Result on disposal* - 0.7 - 0.9
Restructuring expense* - 17.1 - 5.5
Expense from purchase - 15.2 - 17.6
price allocation*
Expense from other - 4.6 - 10.5
one-off items*
EBITA of continuing - 251.9 - 240.9
operations
Result from the partial 2.3 - 100.3
sale / measurement of
shares in Container
Shipping
Net interest expense and - 61.2 - 81.7
expense from measurement
of interest hedges
Earnings before income - 310.8 - 422.9
taxes of continuing
operations
* For a description of the adjustments see the management report
Related parties
Apart from the subsidiaries included in the consolidated financial statements,
TUI AG, in carrying out its ordinary business activities, maintains direct and
indirect relationships with related parties. All transactions with related
parties were executed at fair value on an arm's length basis, based on
international comparable price methods in accordance with IAS 24, as before.
The equity stake held by Riu Hotels S.A., listed in the Notes on the
consolidated financial statements as at 30 September 2016, remained unchanged at
the reporting date for the interim financial statements. In the first half of
2016 / 17, the Russian entrepreneur Alexey Mordashov acquired further shares. At
the reporting date, 31 March 2017, he held a 23.0 % stake in TUI. More detailed
information on related parties is provided under Other notes in the Notes on the
consolidated financial statements for 2015 / 16.
Togebi Holdings Limited (TUI Russia) is a joint venture between Oscrivia Limited
(Oscrivia), a subsidiary of Unifirm Limited, and TUI Group. Unifirm Limited is
the subsidiary of an investment holding company owned by a large shareholder and
Supervisory Board member of TUI AG. In the reporting period, TUI Russia was
granted shareholder loans worth UDS 3.8 m by TUI Group and USD11.3 by Unifirm.
TUI has impaired its part of the loan.
Responsibility statement
To the best of our knowledge, and in accordance with the applicable reporting
principles for Interim financial reporting and in the accordance with (German)
principles of proper accounting, the interim consolidated financial statements
give a true and fair view of the assets, liabilities, financial position and
profit or loss of the Group, and the interim Group management report includes a
fair review of the development and performance of the business and the position
of the Group, together with a description of the principal opportunities and
risks associated with the expected development of the Group for the remaining
months of the financial year.
The Executive Board
Hanover, 11 May 2017
Friedrich Joussen
Horst Baier
David Burling
Sebastian Ebel
Dr Elke Eller
Frank Rosenberger
Review Report
To TUI AG, Berlin / Germany and Hanover / Germany
We have reviewed the condensed interim consolidated financial statements -
comprising the statement of financial position, the income statement, the
condensed statement of comprehensive income, the condensed statement of cash
flows, the condensed statement of changes in equity as well as selected
explanatory notes to the financial statements - and the interim group management
report for the period from 1 October 2016 until 31 March 2017 of TUI AG, which
are components of the half-year financial report under § 37w WpHG
(Wertpapierhandelsgesetz: German Securities Trading Act).
Review Report on the Condensed Interim Consolidated Financial Statements
Management Board's Responsibility for the Condensed Interim Consolidated
Financial Statements
The preparation of the condensed interim consolidated financial statements in
accordance with the IFRS applicable to interim financial reporting as adopted by
the EU is the responsibility of the entity's Management Board. The Management
Board is also responsible for such internal control as the Management Board
determines is necessary to enable the preparation of condensed interim
consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
Pracitioner's Responsibility for the Review of the Condensed Interim
Consolidated
Financial Statements
Our responsibility is to express an opinion on the condensed interim
consolidated financial statements based on our review. We conducted our review
in accordance with the German generally accepted standards for the review of
financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW) as
well as in supplementary compliance with the International Standard on Review
Engagements 'Engagements to Review Historical Financial Statements' (ISRE 2400
(revised)). Those standards require that we plan and perform the review in
compliance with professional standards such that we can preclude through
critical evaluation, with limited assurance, that the condensed interim
consolidated financial statements have not been prepared, in all material
respects, in accordance with the IFRS applicable to interim financial reporting
as adopted by the EU.
A review of the condensed interim consolidated financial statements in
accordance with the German generally accepted standards for the review of
financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW) as
well as in supplementary compliance with ISRE 2400 (revised) is a limited
assurance engagement. A review is limited primarily to inquiries of personnel of
the entity and analytical procedures and therefore does not provide the
assurance attainable in a financial statement audit. Since, in accordance with
our engagement, we have not performed a financial statement audit, we cannot
issue an auditor's report.
Conclusion on the Condensed Interim Consolidated Financial Statements
Based on our review, no matters have come to our attention that cause us to
presume that the condensed interim consolidated financial statements have not
been prepared, in all material respects, in accordance with the IFRS applicable
to interim financial reporting as adopted by the EU.
Other Legal and Regulatory Requirements
Review Report on the Interim Group Management Report
Management Board's Responsibility for the Interim Group Management Report
The preparation of the interim group management report in accordance with the
requirements of the WpHG applicable to interim group management reports is the
responsibility of the entity's Management Board. The Management Board is also
responsible for such internal control as the Management Board determines is
necessary to enable the preparation of an interim group management report that
is free from material misstatement, whether due to fraud or error.
Pracitioner's Responsibility for the Review of the Interim Group Management
Report
Our responsibility is to express an opinion on the interim group management
report based on our review. We conducted our review in accordance with the
German generally accepted standards for the review of financial statements
promulgated by the Institut der Wirtschaftsprüfer (IDW) as well as in
supplementary compliance with the International Standard on Review Engagements
'Engagements to Review Historical Financial Statements' (ISRE 2400 (revised)).
Those standards require that we plan and perform the review in compliance with
professional standards such that we can preclude through critical evaluation,
with limited assurance, that the interim group management report has not been
prepared, in all material respects, in accordance with the requirements of the
WpHG applicable to interim group management reports.
A review of the interim group management report in accordance with the German
generally accepted standards for the review of financial statements promulgated
by the Institut der Wirtschaftsprüfer (IDW) as well as in supplementary
compliance with ISRE 2400 (revised) is a limited assurance engagement. A review
is limited primarily to inquiries of personnel of the entity and analytical
procedures and therefore does not provide the assurance attainable in a
financial statement audit. Since, in accordance with our engagement, we have not
performed a financial statement audit, we cannot issue an auditor's report.
Conclusion on the Interim Group Management Report
Based on our review, no matters have come to our attention that cause us to
presume that the interim group management report has not been prepared, in all
material respects, in accordance with the requirements of the WpHG applicable to
interim group management reports.
Hanover, 11 May 2017
Deloitte GmbH Wirtschaftsprüfungsgesellschaft
Christoph B. Schenk
Dr Hendrik Nardmann
Cautionary statement regarding forward-looking statements
The present Interim Report contains various statements relating to TUI's future
development. These statements are based on assumptions and estimates. Although
we are convinced that these forward-looking statements are realistic, they are
not guarantees of future performance since our assumptions involve risks and
uncertainties that could cause actual results to differ materially from those
anticipated. Such factors include market fluctuations, the development of world
market prices for commodities and exchange rates or fundamental changes in the
economic environment. TUI does not intend to and does not undertake any
obligation to update any forward-looking statements in order to reflect events
of developments after the date of this Report.
Analyst and investor enquiries
Contacts for Analysts and Investors in UK, Ireland and Americas
Sarah Coomes, Head of Investor Relations
Tel.: + 44 (0)1293 645 827
Hazel Chung, Investor Relations Manager
Tel.: + 44 (0)1293 645 823
Contacts for Analysts and Investors in Continental Europe, Middle East and Asia
Nicola Gehrt, Head of Investor Relations
Tel.: + 49 (0)511 566 1435
Ina Klose, Investor Relations Manager
Tel.: + 49 (0)511 566 1318
Jessica Blinne, Team Assistant
Tel.: + 49 (0)511 566 1425
The presentation slides and the video webcast for
Q2 2016 / 17 are available at the following link:
www.tuigroup.com/en-en/investors
Contact and publishing details
published by
TUI AG
Karl-Wiechert-Allee 4
30625 Hanover, Germany
Phone: + 49 511 566-00
Fax: +49 511 566-1901
www.tuigroup.com
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3st kommunikation, Mainz
photography
Cover Getty Images
The English and a German version of this
Half-year financial report are available on the web:
www.tuigroup.com/en-en/investors
Published on 15 May 2017
Financial calendar
10 August 2017
Interim report Q3 2015 / 16
28 September 2017
Trading Update
13 DeCember 2017
Annual Report 2016 / 17
February 2018
Annual General Meeting 2018
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de/ukreg
Language: English
Company: TUI AG
Karl-Wiechert-Allee 4
30625 Hannover
Germany
Phone: +49 (0)511 566-1425
Fax: +49 (0)511 566-1096
E-mail: Investor.Relations@tui.com
Internet: www.tuigroup.com
ISIN: DE000TUAG000, DE000TUAG281, DE000TUAG299
WKN: TUAG00 , TUA G28, TUA G29
Listed: Regulated Market in Hanover; Regulated Unofficial Market in
Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate
Exchange; Open Market in Frankfurt; London
Category Code: IR
TIDM: TUI
LEI Code: 529900SL2WSPV293B552
OAM Categories: 1.2. Half yearly financial reports and audit reports/limited
reviews
Sequence No.: 4190
End of Announcement EQS News Service
573341 15-May-2017
(END) Dow Jones Newswires
May 15, 2017 02:01 ET (06:01 GMT)
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