Deutsche Lufthansa Ag · XETR:LHA
Deutsche Lufthansa — Q1 2014 Earnings Presentation
19 slides from Deutsche Lufthansa's earnings presentation, May 6, 2014
Slide 1: Q1 2014 Results Press and Analysts' Conference
Q1 2014 Results Press and Analysts' Conference Simone Menne Member of the Executive Board and CFO Frankfurt, May 6th 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 made slight profit improvement in the first quarter 2014 vs. first quarter 2013 Operating result was -245 m EUR on reported level, and -190 m EUR excluding one-off factors ("normalized") Reported operating profit includes 55 m EUR one-off costs; new depreciation policy resul
Slide 4: Q1 2014 at a glance: Key figures for the Lufthansa Group
Q1 2014 at a glance Key figures for the Lufthansa Group Lufthansa Group (in m EUR) Q1 2014 Q1 2013 vs. PY Total revenue 6,462 6,628 -2.5% of which traffic revenue 5,161 5,338 -3.3% Operating result -245 -359 +31.8% One-off items* 55 64 -14.1% Normalized operating result -190 -295 +35.6% Net income -
Slide 5: Good underlying cost control plus lower fuel costs and depreciation
Good underlying cost control plus lower fuel costs and depreciation Operating costs and revenues Lufthansa Group (in m EUR) Q1 2014 vs. PY vs. PY Total revenue 6.462 -2.5% -166 Other operating income 480 -11.8% -64 Total operating income 6,942 -3.2% -230 Operating expenses -7,187 -4.6% -344 -3.1% ex
Slide 6: Positive free cash flow despite higher investments in the first quarter
Positive free cash flow despite higher investments in the first quarter Cash flow statement Group Cash Flow Statement in m EUR Q1 2014 vs. PY EBT (earnings before income taxes) -307 +272 Depreciation & amortisation (incl. D&A for non-current assets) 353 -153 Net proceeds from disposal of non-current
Slide 7: MRO and passenger business as drivers of profit improvement
MRO and passenger business as drivers of profit improvement Segment overview Share of LH Group’s 73.4% 8.9% 9.8% 6.9% 1.0% external revenue Passenger Others & FY 2013 vs. FY 2012 in EUR m Airline Group Logistics MRO Catering IT Services Consolidation Revenue 4,900 583 1,053 581 158 -813 vs. PY in% -
Slide 8: Strong unit cost reductions but soft pricing in Q1
Strong unit cost reductions but soft pricing in Q1 Operating KPIs of Passenger Airline Group Total Q1 2014 Europe Q1 2014 Asia/Pacific Q1 2014 Number of flights -1.2% ASK +2.8% ASK -1.3% ASK +0.4% RPK +1.6% RPK -0.0% RPK -0.3% SLF -0.8pts. SLF +1.0pts. SLF -0.5pts. Yield -4.8% Yield -2.7% Yield ex c
Slide 9: Trading expectations broadly unchanged but revenue risk increased
Trading expectations broadly unchanged but revenue risk increased 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
Slide 10: Full year fuel costs reduced to now 6.7 bn EUR
Full year fuel costs reduced by 100 m EUR to now 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 7.1bn (+20%) 6.7 6.9bn (+10%) 6.3 120 6.3bn (-10%) USD/barrel Market pric
Slide 11: Lufthansa Group operating profit 2014 expected at 1.3 to 1.5 bn EUR
Lufthansa Group operating profit 2014 expected at 1.3 to 1.5 bn EUR Unchanged outlook for LH Group and business segments Result 2013 Forecast for 2014 Segment (m EUR) Lufthansa Passenger Airlines 265 significantly above previous year, but diluted by project costs SWISS 226 significantly above previo
Slide 12: Update on Strategic Developments
Update on Strategic Developments Save the date for July 10 for CEO presentation Pilot negotiations: Constructive talks have been resumed with pilot union Vereinigung Cockpit Further talks scheduled Transfer of non-hub traffic to Germanwings is in full swing and to be concluded early next year Transf
Slide 13: Appendix – Financial Figures Q1 2014
Appendix – Financial Figures Q1 2014 – Page 13
Slide 14: Group Revenue Q1 2014 vs. Q1 2013
Group Revenue Q1 2014 vs. Q1 2013 in m EUR 6,628 Volume: +0.1% Price: -1.0% 4 -52 Currency: -2.4% -129 6,462 5,338 Traffic revenue (-3.3%) 5,161 1,301 1,290 Other revenue (+2.3%) Q1 2013 Q1 2014 6,628 Group revenue (-2.5%) 6,462 Page 14
Slide 15: Fuel Cost Q1 2014 vs. Q1 2013
Fuel Cost Q1 2014 vs. Q1 2013 in m EUR -157 m EUR +1,674 Volume -17 Price -68 Hedging Currency -5 -67 +1,517 Q1 2013 Q1 2014 Page 15
Slide 16: Operating Result Q1 2014 vs. Q1 2013
Operating Result Q1 2014 vs. Q1 2013 in m EUR Q1 2014 Q1 2013 vs. PY Profit from operating activities -183 -463 +60.5% Net book gains / losses on assets and financial investments -39 -7 -- - thereof aircraft disposals -4 -5 +20.0% Reversal of provisions -20 -14 -42.9% Past service costs 0 0 -- Valua
Slide 17: Earnings figures Q1 2014 vs. Q1 2013
Earnings figures Q1 2014 vs. Q1 2013 in m EUR Q1 2014 Q1 2013 vs. PY Profit from operating activities -183 -463 +60.5% Income from subsidiaries, joint ventures and associates -8 -4 -100.0% Other financial items -41 -29 -41.4% - thereof changes in time value of hedge options -3 -50 +94.0% EBIT -232 -
Slide 18: Excluding one-off items operating profit shows clear improvement
Excluding one-off items operating profit shows clear improvement Normalized operating results for Q1 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 restructuring normalized Q1 2014 restructuring normalized operating profit costs project costs operating profit operating profit costs project costs operating
Slide 19: Operating margins (normalized) Q1 2014 vs. Q1 2013
Operating margins (normalized*) Q1 2014 vs. Q1 2013 10.0 9.2 all numbers in % 8.1 8.0 6.0 4.7 4.0 3.6 3.2 2.0 2.0 0.6 0.5 0.0 -0.7 -2.0 -1.6 -4.0 -2.9 -4.5 -6.0 -6.1 -8.0 -7.1 -7.2 -8.0 -10.0 -12.0 -14.0 -13.4 -13.1 Lufthansa SWISS Austrian Passenger Logistics MRO Catering IT Services LH Group Passe