Tui - call at 9, lots of questions.

All,

Still going through the details of the results,  but a couple of points to make:

1 The covenants on the RCF have been suspended and will be tested in September 2021.  This is prior to the maturity of the bonds in October. Net Debt/LTM EBITDA < 3.0x and Interest Cover > 1.5x.  There has to be a near full recovery in tourism numbers in FY21 to achieve this.  

2 The KfW facility matures on the same date as the bond (15th October 2021) but will be extended to July 2022 (in line with remaining RCF facility) if the bond is refinanced.  What specific terms are on this extension needs to be clarified.  

3.  As of 31st March, Deposits received from customers totally €2,181m (only €720m down from previous year).  Note the process of returning deposits would not have started in earnest at March 31st. Note that, included in other financial liabilities, are amounts due to customers/tourists for holidays that are cancelled. This totalled €1,241m.  This is at March 31st cancelled.  What is this figure now? 

4.  TUI had €3.8bn liquidity as at 31st March 2020, this has reduced to €21.bn as of 10th May 2020.  What percentage of the customer deposits have been refunded with cash versus vouchers and unto what date have they refunded to?  

5 March variance versus last year was €470m negative comprising of €242m from loss of contribution (profit on holidays in month of March). Other items include repatriation costs, compensation costs, Max airline costs, but a large €146m for net hedging ineffectiveness. This refers to hedges no longer required, but is it referencing fuel hedges no longer required?

I will be on the call at 9, so any questions please do drop me an email.  

Tomas 

All,

Still going through the details of the results,  but a couple of points to make:

1 The covenants on the RCF have been suspended and will be tested in September 2021.  This is prior to the maturity of the bonds in October. Net Debt/LTM EBITDA < 3.0x and Interest Cover > 1.5x.  There has to be a near full recovery in tourism numbers in FY21 to achieve this.  

2 The KfW facility matures on the same date as the bond (15th October 2021) but will be extended to July 2022 (in line with remaining RCF facility) if the bond is refinanced.  What specific terms are on this extension needs to be clarified.  

3.  As of 31st March, Deposits received from customers totally €2,181m (only €720m down from previous year).  Note the process of returning deposits would not have started in earnest at March 31st. Note that, included in other financial liabilities, are amounts due to customers/tourists for holidays that are cancelled. This totalled €1,241m.  This is at March 31st cancelled.  What is this figure now? 

4.  TUI had €3.8bn liquidity as at 31st March 2020, this has reduced to €21.bn as of 10th May 2020.  What percentage of the customer deposits have been refunded with cash versus vouchers and unto what date have they refunded to?  

5 March variance versus last year was €470m negative comprising of €242m from loss of contribution (profit on holidays in month of March). Other items include repatriation costs, compensation costs, Max airline costs, but a large €146m for net hedging ineffectiveness. This refers to hedges no longer required, but is it referencing fuel hedges no longer required?

I will be on the call at 9, so any questions please do drop me an email.  

Tomas