{ "docId": "019dd923-5eff-723e-9be7-d26e8b9c7415", "docSlug": "db9dd26ce4c89573", "documentTitle": "2024 Annual Report", "authorId": "TUI-Group", "authorName": "TUI Group", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.777, "pageNumber": 194, "pageCount": 286, "prevPage": 193, "nextPage": 195, "slideType": "appendix_disclosure", "function": "appendix", "density": "overcrowded", "nDataPoints": 0, "notes": "Page 194 of a financial report, likely TUI Group Annual Report 2024.", "elementsJson": [ "paragraph", "bullet_list" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-5eff-723e-9be7-d26e8b9c7415/194", "deckHref": "/decks/019dd923-5eff-723e-9be7-d26e8b9c7415", "deckJsonHref": "/decks/019dd923-5eff-723e-9be7-d26e8b9c7415.json", "deckAnchorHref": "/decks/019dd923-5eff-723e-9be7-d26e8b9c7415#slide-194", "components": [ { "bbox": { "h": 0.75, "w": 0.15, "x": 0.03, "y": 0.06 }, "kind": "list", "text": "CONTENTS\nFINANCIAL YEAR 2024\nCOMBINED MANAGEMENT REPORT\nCORPORATE GOVERNANCE\n175 Consolidated Financial Statements\n180 Notes\n180 Principles and Methods underlying the Consolidated Financial Statements\n199 Segment Reporting\n203 Notes to the Consolidated Income Statement\n210 Notes to the Consolidated Statement of Financial Position\n265 Notes to the Cash Flow Statement\n266 Other Notes\n276 Responsibility Statement by Management\n277 Independent Auditor's Report\n283 Report of the Independent Practitioner regarding the Non-Financial Group Declaration\n285 Forward-Looking Statements", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0b18a96c-1f40-45d1-998a-e7f405782bfb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.37, "x": 0.19, "y": 0.48 }, "kind": "list", "text": "Assumptions for use in impairment tests, in particular for goodwill and property, plant and equipment\nEffect of climate-related risks on the useful lives and the measurement of assets\nDetermination of the fair values for acquisitions of companies and determination of the useful lives of acquired intangible assets\nDetermination of useful lives and residual carrying amounts of property, plant and equipment\nDetermination of actuarial assumptions to measure pension obligations\nRecognition and measurement of other provisions\nRecoverability of future tax savings from tax losses carried forward and tax-deductible temporary differences\nMeasurement of tax risks\nRecoverable amounts of touristic prepayments\nDetermination of the incremental borrowing rate used to measure lease liabilities\nDetermination that the package holiday represents a performance obligation due to the significant integration service\nDetermination of period-related revenue recognition on a straight-line basis over the duration of the trip\nDetermination of the expected credit losses (ECL) of financial instruments", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5fb4783a-94c6-442f-948f-615a627d53af", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.37, "x": 0.57, "y": 0.22 }, "kind": "paragraph", "text": "The determination of future cash surpluses is based on the following assumptions regarding the development of TUI's business: In financial year 2024, TUI achieved a further year-on-year increase in customer numbers. Revenue increased by more than 10%, while underlying EBIT grew by more than 25% versus financial year 2023, both in line with expectations. Further growth in customer numbers is expected for financial year 2025. The Markets + Airline business is expected to deliver further earnings growth due to wider use of online distribution and app-based sales, the provision of dynamic production capacities for flights and accommodation and investments in digitalisation. The Cruises segment expects to deliver further earnings growth until financial year 2027, in particular due to the fleet expansion in TUI Cruises. TUI Cruises launched a new ship in summer 2024 and will expand its fleet to nine ships (excluding the ships of the Hapag Lloyd Cruises brand) in the period up to 2027. Plans for the Hotels & Resorts segment include further earnings growth through asset-right capacity expansion, for example in equity companies. At the same time, Hotels & Resorts plans to develop and expand its own global distribution platform. The development of TUI Musement depends, firstly, on the development of customer numbers in the Markets + Airline sector. Meanwhile, TUI Musement is expected to generate growth by expanding its own and direct distribution, both online and via the app.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "37d2e135-98bd-419b-bafb-e05a3fa06917", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.37, "x": 0.57, "y": 0.58 }, "kind": "paragraph", "text": "Other key factors are the weighted average cost of capital after income taxes (WACC), on which discounting is based, the sustainable growth rate and the growth in perpetuity. Changes in these assumptions may have a significant impact on the recoverable amount and the amount of any impairment loss.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "574cb04e-caa2-4ec2-b747-a78d57061b96", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.37, "x": 0.57, "y": 0.79 }, "kind": "paragraph", "text": "Finally, we have implemented sensitivity analyses to estimate the uncertainty associated with the assumptions on which the impairment tests are based. The sensitivities and their impact on the fair value result exclusively from the adjustment of individual parameters. Possible compensatory measures were not taken into account. Sensitivities have been calculated for changes of the WACC and sustainable growth in perpetuity. In addition, sensitivity analyses have been carried out for a general increase or decrease of future cash flows and for material climate related risks. For further details refer to the section 'Goodwill'.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7c74de56-6c7f-4773-b2a3-562311ea6f96", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.37, "x": 0.19, "y": 0.06 }, "kind": "paragraph", "text": "TUI applies judgement in evaluating whether it is reasonably certain that an option to renew will be exercised or that an option to terminate the lease will not be exercised. In this context, TUI considers all relevant facts and circumstances that create an economic incentive for TUI to exercise, or to not exercise, the extension or termination option, respectively. From the commencement date, TUI remeasures the lease term if there is either a significant event or a significant change in the circumstances within our control that alters any of our assessments about what is reasonably certain. The lease term, for instance, is adjusted if an extension option is exercised or if a termination option is not exercised and if this had been considered differently in the original assessment.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7cb26080-5e13-4642-ac66-c05a6cc1a16e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.37, "x": 0.19, "y": 0.41 }, "kind": "paragraph", "text": "ASSUMPTIONS AND ESTIMATES\nAssumptions and estimates that may have a material impact on the amounts reported as assets and liabilities in TUI Group are mainly related to the following balance sheet-related facts and circumstances:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "878aa8c7-0198-4511-a018-d95e26434b0f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.13, "w": 0.37, "x": 0.57, "y": 0.65 }, "kind": "paragraph", "text": "The weighted average cost of capital after income taxes (WACC), on which discounting is based, was derived from external capital market information about comparable companies. The cost of capital to Markets + Airline was increased by an additional risk premium of 2.4% (previous year 2.1%). This additional risk premium was based on an analysis of internal and external market expectations and reflects the elevated uncertainty with regard to medium- and long-term market developments. Additional country-specific risk premiums are included, in particular, in the measurement of individual hotels. For further details on the determination of WACC refer to the section 'Goodwill'.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ead20e42-da43-401a-bb2e-a57270d671b7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.37, "x": 0.57, "y": 0.06 }, "kind": "paragraph", "text": "ASSUMPTIONS FOR USE IN IMPAIRMENT TESTS, IN PARTICULAR FOR GOODWILL AND PROPERTY, PLANT AND EQUIPMENT\nThe impairment tests are performed on the basis of future discounted cash inflows derived from the medium-term corporate planning. Both the derivation of future cash inflows and the determination of the interest rate are heavily influenced by assumptions and estimates and are associated with uncertainties. In addition assumptions and estimates regarding the financial impact of climate-related risks were made, which are described further below.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f1095608-d572-4d1f-a15b-4853cc293d18", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.37, "x": 0.19, "y": 0.29 }, "kind": "paragraph", "text": "For aircraft leases, we determine the end of the lease term on the basis of the contractually agreed return date. For medium- to long-term property agreements, e.g. office buildings, hotels or travel agency leases, options to renew the lease are included in the lease term to the extent to which TUI presumes that the future exercise of the option is reasonably certain in the individual case.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fd49f128-fc83-4e69-8476-07480e368528", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.15, "x": 0.03, "y": 0.19 }, "kind": "title", "text": "CONSOLIDATED FINANCIAL STATEMENTS AND NOTES", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "75f13c76-1612-4c69-8b15-678784886510", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }