New Business Development

Liquidity safeguards
The Groups liquid safeguards consist of cardinal components:
Through intra-Group cash pooling, the cash surpluses of individual Group companies be used
to finance the cash requirements of some other Group companies.
TUI uses syndicated credit facilities and zygomorphous bank loans as easy as its liquid coin to secure
sufficient cash reserves. Planning of bank transactions is establish on a monthly rolling liquidity
planning system.
throttle financial risks
The Group companies operate on a general scale. This gives rise to financial risks for the TUI
Group, mainly arising from changes in exchange rates, engagement rates and commodity prices. The
business transactions of Group companies are primarily settled in euros, US dollars and sterling;
other currencies of relevance are Swiss francs and Swedish kronor.
Management Report
fiscal Position of the Group
Management Report Financial Position TUI AG Annual Report 2010/11 of the Group 109
The Group has entered into hedges in more than 20 foreign currencies in companionship to coiffure its
exposure to risks from changes in exchange rates for the hedged items. Risks relate to changes
in interest rates arise on liquidity procurement in the international money and capital markets.



In
order to minimise these risks, the Group uses derivative interest hedges on a case-by-case basis
in the framework of its interest management system. Changes in commodity prices affect the
TUI Group, in particular in procuring fuels much(prenominal) as aircraft fuel and bunker oil. In Tourism, most
price risks related to fuel procurement are hedged where price increases cannot be passed on to
customers due to contractual agreements.
More detailed cultivation on hedging strategies and risk management as well as financial
transactions and the scope of such transactions at the balance sheet date is provided in the Risk
Report in the Management Report and the section Financial instruments in the Notes to the
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