Segment Reporting

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Notes on the segments Notes on the segment data Key Figures by Division and Sector Key Figures Tourism Segment Key Figures by Region

Notes on the segments

The new standard ‘IFRS 8 – Operating Segments’ has been effective and mandatory since the beginning of the financial year. As a result, the presentation of segment reporting showed minor variations compared with the annual financial statements for 2008.

The identification of operating segments was based on the internal organisational and reporting structure, built on the different products and services within the TUI Group. Allocation of the individual organisational entities to the operating segments was exclusively based on economic criteria, irrespective of the participation structure under company law. For the presentation of reportable segments in accordance with IFRS 8, both operating segments with comparable economic features and operating segments not meeting the quantitative thresholds were aggregated with other operating segments.

Since the sale of the majority stake in Container Shipping in March 2009, Tourism has represented the Group’s exclusive core business. The Tourism Division consists of TUI Travel, TUI Hotels & Resorts and the Cruises Sector.

TUI Travel comprises all distribution, tour operator, airline and incoming activities of the TUI Group. Operational management of the Mainstream, Specialist & Emerging Markets, Activity and Accommodation & Destinations Sectors was exercised by the boards and the management of TUI Travel PLC. TUI Hotels & Resorts comprises all hotel companies of the Group. The Cruises Sector consists of Hapag-Lloyd Kreuzfahrten and the TUI Cruises activities, a joint venture measured at equity.

The ‘All other segments’ segment carried the Group’s real estate companies, all non-allocable business activities (in particular holding companies) and has included the result from the measurement of the stake in Container Shipping since 1 April 2009. The ‘Holdings’ Sector also carried turnover from and expenses for the intra-group aircraft charter business.

For the first time, Discontinued Operations comprised the companies of the Magic Life hotel brand of TUI Hotels & Resorts and, as in 2008, the Container Shipping activities until the disposal of these operations in March 2009.

The results from business relationships between the Continuing and the Discontinued Operations, whose agreements will be retained even after the sale, were not carried on a consolidated basis but were allocated to the respective segment. Presentation of the individual segments is thus based on the post-disposal approach, reflecting the segments after the sale of the Discontinued Operation.


Expenses for and income from TUI AG’s cross-divisional management tasks were allocated to the individual sectors and segments they were associated with.

Notes on the segment data

As a rule, inter-segment business transactions were based on the arm’s length principle, as applied in transactions with third parties.

The operating segment assets and liabilities comprised assets or liabilities, excluding financial assets, financial liabilities, pension provisions and income taxes. Goodwill was also shown as segment assets.

Non-current assets comprised goodwill, other intangible assets, property, plant and equipment, carrying amounts of assets measured at equity and the non-current components of other assets.

Investments were additions of property, plant and equipment as well as intangible assets. Depreciation and amortisation related to segment fixed assets and also included goodwill impairments. 

Non-cash expenses did not comprise depreciation.

Proceeds from the disposal of subsidiaries were allocated to the individual segment revenues. The recognition of differences from currency translation in connection with capital reductions through profit or loss was attributed to the holding activities and therefore allocated to the holding companies in segment reporting.

Financial assets as well as cash and cash equivalents were used to generate the financial result. Financial liabilities (including pension provisions) were carried as interest-bearing liabilities and were used to finance the operating and investing activities.

Reconciliation of segment assets and liabilities to the Group’s assets or liabilities had to take account of income tax assets or income tax provisions and liabilities.

Segment reporting disclosed in particular performance indicators such as EBITA, underlying EBITA, EBITDA and EBITDAR since these indicators were used as the control basis for value-oriented corporate management. In determining the performance indicators for the Discontinued Operations, the result from Discontinued Operations was reallocated to the original types of income and expenses.
 

Key Figures by Division and Sector                                                       
 

Key Figures Tourism Segment                                       
 

Key Figures by Region