Slide 1: Lufthansa
21 January 2013 Lufthansa Simone Menne, Member of the Executive Board and CFO lufthansagroup.com
Slide 2: Disclaimer in respect of forward-looking statements
Disclaimer in respect of forward-looking statements Information published in this presentation with regard to 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 b
Slide 3: LH Group implements structural change while industry rationalizes
Overview LH Group implements structural change while industry rationalizes European airline industry is consolidating and becoming increasingly rational Lufthansa is profitable. Lufthansa is financially flexible. Lufthansa is best positioned to benefit from current industry developments Lufthansa is
Slide 4: Market consolidation in Europe has reached an advanced stage
Market consolidation in Europe has reached an advanced stage With five main players capacity discipline is in place Competition is driven by three network carrier systems European airlines' capacity growth remained and two main LCCs continuously below demand growth in 2012 10% 8% Demand growth (RPK)
Slide 5: Fuel costs remain high but help to maintain industry discipline
Fuel costs remain high but help to maintain industry discipline Based on current fuel and fx prices, costs expected to stay stable in FY13 8.1 (+12%) 128USD/bbl (+20%) 160 7.8 (+7%) 118 USD/bbl (+10%) 140 6.6 (-9%) 96 USD/bbl (-10%) 120 6.1 (-17%) 86 USD/bbl (-20%) 100 as of 31.12.12, based on Brent
Slide 6: Financial pressure is driving further rationalization in the industry
Financial pressure is driving further rationalization in the industry Ambitious restructuring plans at all legacy carriers Legacy carriers focus on margin improvement. Capacity discipline LCCs switch from growth to yield focus continues (Communicated outlooks) (Communicated capacity plans) 1.6 bn EU
Slide 7: Financial strength puts LH in pole position for future development
Financial strength puts LH in pole position for future development Cash flow generation stronger than obvious due to depreciation policy Profitable and Competitive edge in financing Conservative and strong cash flow generation conditions, solid financial profile flexible fleet structure S&P Investme
Slide 8: Superior financial profile is supported by Service Companies
Superior financial profile is supported by Service Companies Balanced business portfolio provides sustainable baseline profits Revenue Operating result Range of op. margin Airlines 22.3 bn +4.8% Passenger Airlines 349 m Group -0.1% 2.9 bn 249 m +11.4% Logistics (Cargo) -8.0% Service Companies 4.1 bn
Slide 9: Lufthansa will again be profitable in 2012
Lufthansa will again be profitable in 2012 Operating result in the mid three-digit million euro range Development of operating result Outlook 2012 in m EUR Increase in revenue Operating result in the mid three-digit million euro range Dynamic market parameters will define absolute profit level
Slide 10: However, we need structurally higher margins…
However, we need structurally higher margins… SCORE program: Operating profit to be increased to 2.3 bn EUR in 2015 2.3 bn +1.5 bn EUR EUR 0.8 bn EUR Operating profit Operating profit target financial year 2011 financial year 2015 Seite 10 Page
Slide 11: … and we are determined to get there
… and we are determined to get there Exit or restructuring of loss-making units Unprofitable Lufthansa Italia shut down in Oct 2011 Highly loss making British Midland sold in Dec 2011 Exit from Jade Cargo JV as of Jan 2012 Austrian Airlines' operations transferred into ca. -25% lower cost subsidiary
Slide 12: The changes come together with advantages for customers
The changes come together with advantages for customers Non-hub traffic merged into one profitable carrier with only two aircraft types 2009 2012 2015 # of 5 3 1 brands (Lufthansa, Germanwings, Eurowings, Cityline, Contact Air) (Lufthansa, Germanwings, Eurowings) (Germanwings) # of aircraft 8 5 2 (B
Slide 13: The restructurings have no impact on customers
The restructurings have no impact on customers Austrian Airlines was transferred to lower cost platform Tyrolean Airways Restructuring model (internal merge) Strict capacity and yield management Operations moved into regional subsidiary Tyrolean (460 pilots and 1,500 flight attendants) as of Jul
Slide 14: Further projects are happening in the background
Further projects are happening in the background SCORE is redesigning the Lufthansa Group in all areas Groupwide Projects Projects of Airlines and Service Segments "new Germanwings" at LH Passenger Airlines Procurement 1st Administration Wave Insourcing Line Maintenance Swiss Neighbour- hood Traffic
Slide 15: Customers are experiencing the best Lufthansa of all times
Customers are experiencing the best Lufthansa of all times Fleet modernisation and multiple product relaunches Modern Fleet Aircraft deliveries 2012-2018 Total in 2012 Airbus 380 9 2 Boeing 747-8i 19 4 Boeing 777F (freighters) 5 - Airbus 330 9 6 Airbus 320 family (incl. 30 A320neo) 82 17 Embraer 190
Slide 16: Intercontinental cooperation continues with important partners
Intercontinental cooperation continues with important partners Lufthansa is leading player in global joint venture developments Largest Transatlantic Joint Venture First Asia-Europe Joint Venture (Atlantic ++) (Japan +) ATI approved Joint Capacity Planning Joint Flight Scheduling Joint Revenue Manag
Slide 17: Intense change pays off: Control over manageable costs improved
Intense change pays off: Control over manageable costs improved Relative decrease in non-fuel costs Lufthansa Group, first nine months 2012 in m EUR 9M 2012 vs. PY in % Revenue 22,821 Other Operating Income 1,446 -15.1% Total Costs 23,723 1.5% excl. fuel costs - of which Cost of Materials (incl. fue
Slide 18: Top line parameters keep developing positively
Top line parameters keep developing positively Capacity discipline becomes visible in higher loads and yield increases Passenger Business Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Capacity vs. Demand (ASK vs. RPK) Seat Load Factor +1.3 pts. +1.0 pts. +1.3pts. +1.4 pts. +1.2 pts. (increase vs. 2011) Yield +3.7%
Slide 19: LH Group implements structural change while industry rationalizes
LH Group implements structural change while industry rationalizes European airline industry is consolidating and becoming increasingly rational Lufthansa is profitable. Lufthansa is financially flexible. Lufthansa is best positioned to benefit from current industry developments Lufthansa is implemen
Slide 20: Our strategy is based on four important pillars
Our strategy is based on four important pillars What you can expect from Lufthansa going forward We will maintain our leading role among the European airlines – and worldwide together with our partners We focus on profitability – our current margin level will be increased sustainably We are committe
Slide 21: Back-up material
21 January 2013 Back-up material Financial Data FY2011 and 9M 2012 lufthansagroup.com
Slide 22: Financial Year 2011 Key Financial Figures for the Group
Financial Year 2011 Key Financial Figures for the Group in m EUR 2011 vs. PY Revenue 28,734 +8.6% - thereof traffic revenue 23,779 +10.8% Operating result 820 -19.6% Adj. operating margin [in %] 3.4% -1.3 pts. EBIT 734 -50.4% EBITDA 2,546 -19.6% Net profit -13 in m EUR 2010 2011 Operat
Slide 23: Financial Year 2011 Key Financial Figures for the Business Segments
Financial Year 2011 Key Financial Figures for the Business Segments Share of LH Group Revenue 75% 10% 8% 1% 6% Passenger in m EUR Airline Group Logistics MRO IT Services Catering Revenue 22,290 2,943 4,093 599 2,299 vs. PY in % +11.2 +5.3 +1.9 +0.7 +2.2 Op. Result 349 249 257 19 85 vs. PY in % -44.5
Slide 24: Dividend policy is embedded in financial strategy
Dividend policy is embedded in financial strategy Guidelines for distributing profits to shareholders Our dividend policy • Dividends are linked to operating result • Net profit of Deutsche Lufthansa AG (German GAAP/HGB) must allow for dividend payment • In this framework we seek continuity (30-40%
Slide 25: First nine months 2012 Key Financial Figures for the Group
First nine months 2012 Key Financial Figures for the Group in m EUR Q1-Q3 2012 vs. PY Revenue 22,821 +6.1% - thereof traffic revenue 18,786 +5.4% Operating result 628 -13.3% Adj. operating margin [in %] 3.1% -0.7 PP EBIT 697 -1.6% EBITDA 2,078 +4.0% Net profit 474 +64.6% in m EUR Q1-Q3
Slide 26: First nine months 2012 Key Financial Figures for the Business Segments
First nine months 2012 Key Financial Figures for the Business Segments Passenger in m EUR Airline Group Logistics MRO IT Services Catering Revenue 17,851 2,005 3,002 448 1,897 vs. PY in % +7.0% -9.7% -1.5% +2.8% +10.9% Op. result 345 66 227 13 73 vs. PY in % -2.5% -61.8% +14.6% +8.3% +30.4% EBITDA 1
Slide 27: Earnings of Lufthansa Pass. Airlines need structural improvement
Earnings of Lufthansa Pass. Airlines need structural improvement Adjusted operating margin per airline and business segment Q1-Q3 2012 10% 8.3% 8.2% 8.2% 8% 7.1% 6% 5.2% 4.6% 3.8% 3.8% 4% 3.5% 3.3% 2.9%2.8% 3.1% 2.5% 2.2% 2% 1.6% 0.8% 0.5%* 0% -2% -2,0% Lufthansa SWISS Austrian Passenger Logistics M
Slide 28: Traffic and Yield Development
Traffic and Yield Development Passenger Airline Group Q1-Q3 2012 vs. Q1-Q3 2011 Americas Europe Asia / Pacific ASK +0.2% ASK +3.5% ASK +1.7% RPK +2.4% RPK +4.9% RPK +2.6% SLF +1.8PP SLF +0.9PP SLF +0.7PP Yield per RPK +8.6% Yield per RPK +2.3% Yield per RPK +1.5% Traffic revenue +11.2% Traffic reven
Slide 29: Lufthansa Investor Relations contact
Lufthansa Investor Relations contact Deutsche Lufthansa AG Investor Relations / FRA IR Lufthansa Aviation Center Airportring D-60546 Frankfurt Phone: +49 (0) 69 696 28010 Fax: +49 (0) 69 696 90990 E-mail: investor.relations@dlh.de Andreas Hagenbring Senior Vice President Investor Relations Phone: +4