Deutsche Lufthansa Ag · XETR:LHA
Deutsche Lufthansa — H1 2014 Earnings Presentation
19 slides from Deutsche Lufthansa's earnings presentation, Jul 31, 2014
Slide 1: H1 2014 Results Press and Analysts' Conference
H1 2014 Results Press and Analysts' Conference Simone Menne Member of the Executive Board and CFO Frankfurt, July 31st 2014 Page 1
Slide 2: Disclaimer in respect of forward-looking statements
Disclaimer in respect of forward-looking statements Information published in this presentation concerning the future development of the Lufthansa Group and its subsidiaries consists purely of forecasts and assessments and not of definitive historical facts. These forward-looking statements are based
Slide 3: Overview
Overview Lufthansa Group operating profit was higher in the first half year 2014 vs. previous year Results improvement driven by favorable cost performance and change in depreciation policy Normalized half-year operating profit (excl. restructuring and project costs) improved by 75 m EUR to 219 m EU
Slide 4: H1 and Q2 2014 at a glance
H1 and Q2 2014 at a glance Key figures for the Lufthansa Group Lufthansa Group (in m EUR) H1 2014 H1 2013 vs. PY Q2 2014 Q2 2013 vs. PY Total revenue 14,166 14,464 -2.1% 7,704 7,836 -1.7% of which traffic revenue 11,466 11,780 -2.7% 6,305 6,442 -2.1% Operating result 114 73 +56.2% 359 432 -16.9% One
Slide 5: Second quarter with stable non-fuel costs
Second quarter with stable non-fuel costs Operating costs and revenues Lufthansa Group (in m EUR) H1 2014 vs. PY Q2 2014 vs. PY Total revenue 14,166 -2.1% 7,704 -1.7% Other operating income 852 -12.4% 372 -13.3% Total operating income 15,018 -2.7% 8,076 -2.3% Operating expenses 14,904 -3.0% 7,717 -1
Slide 6: Positive free cash flow despite higher investments
Positive free cash flow despite higher investments Cash flow statement Group Cash Flow Statement in m EUR H1 2014 vs. PY 3.3 3.0 2.8 2.4 EBT (earnings before income taxes) -59 +181 1.7 Depreciation & amortisation (incl. D&A for non-current assets) 717 -217 Net proceeds from disposal of non-current a
Slide 7: Passenger airlines with small improvement due to lower depreciation
Passenger airlines with small improvement due to lower depreciation Segment Overview H1 Share of LH Group’s 75.1% 8.1% 9.2% 6.7% 0.9% external revenue H1 2014 vs. H1 2013 Passenger Others & in EUR m Airline Group Logistics MRO Catering IT Services Consolidation Revenue 10,958 1,161 2,088 1,237 318 -
Slide 8: Soft pricing continued in the second quarter
Soft pricing continued in the second quarter Operating KPIs of Passenger Airline Group Total H1 '14 Q2 '14 Europe H1 '14 Q2 '14 Asia/Pacific H1 '14 Q2 '14 Number of flights -2.2% -3.1% ASK +1.6% +0.7% ASK +0.4% +1.9% ASK +1.1% +1.6% RPK +2.0% +2.3% RPK +0.9% +1.7% RPK +1.1% +2.2% SLF +0.3P. +1.2P. S
Slide 9: Capacity further adjusted to stabilize soft pricing
Capacity further adjusted to stabilize soft pricing Trading assumptions FY 2014 Full Year 2014 assumptions Explanation Fleet Size Fleet rollover: Phase-out of small, non-efficient aircraft (no. of aircraft) overall stable Capacity growth mainly achieved through more seats per Capacity c. +3% aircraf
Slide 10: Full year fuel costs unchanged at 6.7 bn EUR
Full year fuel costs unchanged at 6.7 bn EUR Fuel forecast and sensitivities 150 Lufthansa Group fuel expenses after hedging LH price (in bn EUR) Sensitivities 140 2014 costs with deviating 7.4 oil price 130 7.1 6.9bn (+20%) 6.7 6.8bn (+10%) 6.3 6.4bn (-10%) 120 USD/barrel Market price 6.2bn (-20%)
Slide 11: LH Group operating profit 2014 expected at approx. 1.0 billion Euros
LH Group operating profit 2014 expected at approx. 1.0 billion Euros Operating profit excl. one-offs expected at approx. 1.3 billion Euros Result 2013 Forecast for 2014 Segment (m EUR) Lufthansa Passenger Airlines 265 slightly above previous year SWISS 226 significantly above previous year Austrian
Slide 12: Appendix – Financial Figures Q2 & H1 2014
Appendix – Financial Figures Q2 & H1 2014 – Page 12
Slide 13: Group Revenue H1 2014 vs. H1 2013
Group Revenue H1 2014 vs. H1 2013 in m EUR Volume: +0.9% Price: -1.9% 103 -219 Currency: -1.7% -198 11,780 Traffic revenue (-2.7%) 11,466 2,684 Other revenue (+0.6%) 2,700 H1 2013 H1 2014 14,464 Group revenue (-2.1%) 14,166 Page 13
Slide 14: Fuel Cost H1 2014 vs. H1 2013
Fuel Cost H1 2014 vs. H1 2013 in m EUR -260 m EUR +3,503 Volume -31 Price -21 Hedging -44 Currency -164 +3,243 H1 2013 H1 2014 Page 14
Slide 15: Operating Result H1 2014 vs. H1 2013
Operating Result H1 2014 vs. H1 2013 in m EUR H1 2014 H1 2013 vs. PY Profit from operating activities 205 0 +205 Net book gains / losses on assets and financial investments -65 -8 -57 - thereof aircraft disposals -14 -8 -6 Reversal of provisions -56 -53 -3 Past service costs 0 0 0 Valuation from non
Slide 16: Earnings figures H1 2014 vs. H1 2013
Earnings figures H1 2014 vs. H1 2013 in m EUR H1 2014 H1 2013 vs. PY Profit from operating activities 205 0 +205 Income from subsidiaries, joint ventures and associates 22 33 -33.3% Other financial items -145 -111 -30.6% - thereof changes in time value of hedge options -45 -118 -61.9% EBIT 82 -78 +2
Slide 17: Excluding one-off items operating profit shows improvement
Excluding one-off items operating profit shows improvement Normalized operating results for H1 and Q2 219 75 144 0 114 30 71 73 H1 2013 restructuring costs project costs H1 2013 H1 2014 restructuring costs project costs H1 2014 operating profit normalized operating profit normalized operating profit
Slide 18: Operating Results and one-off factors
Operating Results and one-off factors Quarterly operating results 2013-2014 in m EUR Q1 Q2 Q3 Q4 6M 9M Full Year Reported operating result 2013 -359 432* 590* 36 73* 663* 699* incl. SCORE restructuring costs -64 -7 -97 -77 -71 -168 -245 incl. Project costs 0 0 -30 -70 0 -30 -100 Normalized operating
Slide 19: Operating margins (normalized) H1 2014 vs. H1 2013
Operating margins (normalized*) H1 2014 vs. H1 2013 11.0 10.7 all numbers in % 9.9 10.0 9.0 8.0 7.0 6.0 5.1 5.0 4.5 4.0 3.5 3.1 2.9 3.0 2.0 1.6 1.5 1.6 1.5 1.0 1.0 0.0 -1.0 -0.2 -0.9 -1.1 -0.6 -2.0 -3.0 -4.0 -3.6 -5.0 -4.6 Lufthansa SWISS Austrian Passenger Logistics MRO Catering IT Services LH Grou