Deutsche Lufthansa Ag · XETR:LHA
Deutsche Lufthansa — Merger or Acquisition (May 2023)
13 slides from Deutsche Lufthansa's merger presentation, May 26, 2023
Slide 1: ITA Airways – a perfect addition to Lufthansa Group
ITA Airways – a perfect addition to Lufthansa Group May 26, 2023
Slide 2: Disclaimer
Disclaimer The information herein is based on publicly available information. It This presentation contains statements that express the Company‘s has been prepared by the Company solely for use in this opinions, expectations, beliefs, plans, objectives, assumptions or presentation and has not been v
Slide 3: ITA Airways is a perfect addition to the portfolio of Lufthansa Group airlines
ITA Airways is a perfect addition to the portfolio of Lufthansa Group airlines Investment further Sound plan broadens in place to access to key turn ITA Italian market profitable Agreement Deep restructuring provides has made ITA option for a right-sized and full takeover structurally in the competi
Slide 4: ITA Airways fits well into the Group's multi-airline multi-hub strategy
ITA Airways fits well into the Group's multi-airline multi-hub strategy Customer centricity: • Strong national brands with unique identity • Customer offering tailored to market- specific needs • Connected networks offer maximum & connectivity JOINT OPERATIONS JOINT NETWORK Cost advantages: Signific
Slide 5: ITA provides the Group even better access to the very attractive Italian market
ITA provides the Group even better access to the very attractive Italian market and regional diversification Italy– aiskey market for Lufthansa Group Italy ITA & Lufthansa Group 3rd largest Economy in ▪ Attractive proposition to grow a profitable long- the EU (GDP) haul business in Rome Fiumicino ▪
Slide 6: Transaction terms minimize the Group’s financial risk and create optionality
Transaction terms minimize the Group’s financial risk and create optionality ▪ Acquisition of 41% of shares in ITA Airways through a capital increase ▪ Investment into the company’s equity, no payment to Italian Ministry of Economy and Finance (MEF) Key terms ▪ Capital increase of EUR 325 million fu
Slide 7: ITA Airways has been fully restructured and set up as a structurally cost-competitive airline
ITA Airways has been fully restructured and set up as a structurally cost- competitive airline with no legacy issues associated with the old Alitalia 2019 2020 / 2021 2022 Crew and cabin contracts renegotiated Passengers Italia Passengers: 10.1m Nov & no pension obligations from Alitalia Trasporto 2
Slide 8: Lufthansa Group has a sound plan to turn ITA into a profitable airline
Lufthansa Group has a sound plan to turn ITA into a profitable airline Optimizing the network Driving profitable growth Maximizing synergies ▪ Ensure that ITA’s network is ▪ Capitalize on ITA’s favorable ▪ Unlock the significant potential complementary to the existing cost position for revenue and c
Slide 9: Rome Fiumicino as new Southern Hub and Milan Linate as premium point-to-point airport
Network Profitable growth Synergies Rome Fiumicino as new Southern Hub and Milan Linate as premium point-to-point airport will interconnect the ITA and LHG networks Feeder network Rome Fiumicino Milan Linate ▪ Enhance the short-haul network for ▪ Focus the long-haul network on ▪ Expand the touristic
Slide 10: Competitive cost base and homogenous, modern fleet form a solid base for future growth
Network Profitable growth Synergies Competitive cost base and homogenous, modern fleet form a solid base for future growth Favorable cost position Modernized fleet 94 NewGen Highly competitive A330-900neo ▪ Homogeneous, all Airbus labour cost A350-900 fleet, allowing for 66 A320 efficiencies in oper
Slide 11: In combination with Lufthansa Group, ITA can realize its full potential
Network Profitable growth Synergies In combination with Lufthansa Group, ITA can realize its full potential by benefitting from the size and synergies of a global group COMMERCIAL & Global network management Access to global airline partner network (e.g. A++ JV with United and Air Canada) Global Int
Slide 12: Investment in ITA Airways has significant value for our shareholders
Investment in ITA Airways has significant value for our shareholders Upgrade picture ITA Airways is a perfect addition to the quality portfolio of Lufthansa Group airlines Restructured and structurally cost-competitive airline: Sound plan in place to turn ITA profitable Investment approach minimizes
Slide 13: Internal Q&A
Internal Q&A May 26, 2023 Page 13
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