Slide 1: Q1 2020 Results
Q1 2020 Results Analyst and Press Conference Call Frankfurt 3 June 2020
Slide 2: Q1 2020 Results
Q1 2020 Results Analyst and Press Conference Call Thorsten Dirks Chief Officer Digital and Finance and Member of the Executive Board Frankfurt 3 June 2020
Slide 3: Corona crisis started to severely impact Group results in March
Corona crisis started to severely impact Group results in March ASK Group Airlines (vs. previous year) -1% -2% -51% -96% -97% January February March April May Page 3
Slide 4: Network Airlines: Spread of Corona virus puts profits under pressure
Network Airlines: Spread of Corona virus puts profits under pressure Q1 2020 Operational KPIs Comments 11.1% Quick and determined offer reduction in response to travel -5.1pts. -3.9% -5.5% restrictions and deterioration in demand -18.6% Greatest pressure on unit revenues in 1 1 2 ASK SLF Yield R
Slide 5: Eurowings: Adjusted EBIT remains almost unchanged
Eurowings: Adjusted EBIT remains almost unchanged Q1 2020 Operational KPIs Comments 13.4% 7.4% 0.0pts. Crisis-related schedule reductions add to ongoing optimization of the -1.5% network Volumes and yields hold up well -24.6% 1 1 2 RASK increase supported by lower ASK SLF Yield RASK CASK custo
Slide 6: Corona crisis affects all Aviation Services
Corona crisis affects all Aviation Services Adjusted EBIT / Margin Q1 2020 nmf. Comments 24 -4.0% -22 -7.9pts. Logistics: Strong performance in Q1 19 Q1 20 freighter business more than offset by loss of belly volumes -97% MRO: Profits in all major product 123 0.3% divisions under pressure due to
Slide 7: Impairments and fuel hedging losses burden net income
Impairments and fuel hedging losses burden net income Adjusted EBIT / Net Income Q1 2020 Comments Adjustments primarily relate to impairments of aircraft (EUR 266 million) retired in response to the lasting impact which the crisis will have on customer demand Additional goodwill impairments -1.2
Slide 8: Reduction of investments and strict cash management support free cash flow
Reduction of investments and strict cash management support free cash flow Gross Investments1 Adjusted Free Cash Flow Net Debt Pension Provisions +248% -38% -5% Discount +5% Discount rate: rate: 1,236 620 6,662 6,354 1.4% 6,659 6,989 1.7% 770 178 Q1 19 Q1 20 Q1 19 Q1 20 Dec 31, 2019 Mar 31, 2020 Dec
Slide 9: Group on track for the achievement of fixed cost reduction target
Group on track for the achievement of fixed cost reduction target Group Airline (Semi-)Fixed Costs (FY 2019: ~EUR 8 billion) >-33% Crew Key drivers: • Implementation of short-time work (up to 87k employees) and other personnel cost measures Overhead • Project postponements and cancellations A/C & MR
Slide 10: Lufthansa has successfully protected liquidity but significant cash risks remain
Lufthansa has successfully protected liquidity but significant cash risks remain Strong pre-crisis liquidity Cash burn due to COVID-19 Way forward (EUR million) Successfully implemented decisive Centrally available liquidity c. EUR 800 million measures to protect our liquidity +85% current monthly
Slide 11: Low visibility and high levels of uncertainty make detailed financial outlook impossible
Low visibility and high levels of uncertainty make detailed financial outlook impossible Group Airlines Recovery will be gradual and take multiple years Supply squeeze drives yields higher, Adjusted EBIT margin to Logistics • Financial outlook remains exceed 2019 levels highly uncertain • No cha
Slide 12: Q1 2020 Results
Q1 2020 Results Analyst and Press Conference Call Carsten Spohr CEO and Chairman of the Executive Board Frankfurt 3 June 2020
Slide 13: Lufthansa Group remains the leading European airline group
Lufthansa Group remains the leading European airline group Sustainable balance of all stakeholders’ interests Based in economically strong home markets: Germany, Switzerland, Austria, Belgium Flexible multi-hub model with premium network airlines as core Strategically increasing point-to-point
Slide 14: Lufthansa Group secures stabilization package in Germany
Lufthansa Group secures stabilization package in Germany Key components Description EUR 9.0 billion Syndicated loan; 80% backed by KfW Syndicated KfW loan Maturity of 3 years 3.0 Linked to certain conversion rights for Economic Stabilization Fund Silent Participation II Financial liability u
Slide 15: Restructuring plan will include right-sizing and assessment of Group portfolio
Restructuring plan will include right-sizing and assessment of Group portfolio Restructuring plan & Payback 2023 Repayment of EUR 9 billion and securing investment capability and competitiveness Financing Measures & Operational Staff Reduction & System Partner Corporate Structure Restructuring Produ
Slide 16: Lufthansa Group will further expand flight program from June onwards
Lufthansa Group will further expand flight program from June onwards LHG destinations as of June Key facts 15% of total capacity and 50% of destination portfolio back online Over 2,000 weekly connections to more than 130 destinations worldwide YYZ SFO YUL ICN Focus on summer tourist destinatio
Slide 17: Q&A
Q&A LUFTHANSA GROUP
Slide 18: 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 19: Appendix - supplementary information
Appendix - supplementary information- Page 19
Slide 20: Traffic Data
Traffic Data Jan yoy Feb yoy Mar yoy Q1 yoy Passengers in 1,000 9,043 -0.4% 8,799 -2.9% 3,914 -65.3% 21,756 -26.1% Available seat-kilometers (m) 26,173 -0.6% 24,006 -1.9% 14,117 -50.7% 64,296 -19.1% Revenue seat-kilometers (m) 20,387 1.5% 18,087 -3.5% 8,625 -62.7% 47,099 -24.0% Passenger load-factor
Slide 21: Group P&L
Group P&L Lufthansa Group (in EUR m) Q1 ’20 vs. Q1 ’19 Revenues 6,441 -18% Total operating income 6,976 -16% Operating expenses 8,162 -6% Of which fees & charges 874 -16% Of which fuel 1,227 -14% Of which staff 2,143 -4% Of which depreciation 680 +4% Result from equity investments -34 nmf. Adjusted
Slide 22: Operating KPIs of Network Airlines by region
Operating KPIs of Network Airlines by region Total Q1 ’20 Europe Q1’20 Asia / Pacific Q1’20 ASK -18.6% ASK -25.5% Number of flights -19.6% RPK -24.5% RPK -30.9% ASK -18.6% SLF -5.2pts. SLF -6.0pts. RPK -23.9% RASK ex currency1) -10.2% RASK ex currency -17.8% SLF -5.1pts. Americas Q1’20 Middle East /
Slide 23: Cash flow statement
Cash flow statement Lufthansa Group (in m EUR) Q1 ’20 vs. Q1 ’19 Includes regular depreciation and crisis- 1 EBT (earnings before income taxes) -2,647 -2,264 related impairments Depreciation & amortization (incl. non-current assets) 1,145 +476 1 Net proceeds from disposal of non-current assets 6 -12
Slide 24: Multi-Year financial overview
Multi-Year financial overview Lufthansa Group (in m EUR, as reported) 2015 2016 2017 2018 20191 Operating KPIs RASK ex currency -3.0% -5.9% +1.9% -0.5% -2.5% CASK ex currency, ex fuel 2 +2.4% -2.5% -1.8% -1.7% -1.5% Profit & Loss Revenues 32,056 31,660 35,579 35,542 36,424 Fuel Cost 5,784 4,885 5,23