Slide 1: Analyst and Investor Conference Call Q1 2017
Analyst and Investor Conference Call Q1 2017 Ulrik Svensson, CFO and Member of the Executive Board Frankfurt, 27 April 2017
Slide 2: Disclaimer
Disclaimer The information herein is based on publicly available information. It has been prepared by the Company solely for use in this presentation and has not been verified by independent third parties. No representation, warranty or undertaking, express or implied, is made as to, and no reliance
Slide 3: Strong result in Q1 driven by Aviation Services
Strong result in Q1 driven by Aviation Services Overview Strongest Q1 since 2008 • Adjusted EBIT up 78m EUR to 25m EUR • Driven by • recovery of Logistics (up 52m EUR to 33m EUR), • growth of MRO (up 50m EUR to 137m EUR), • stable result at LSG (up 2m EUR to -2m EUR) and • improvements in Others and
Slide 4: Favourable trading environment particularly in Asia and North America
Favourable trading environment particularly in Asia and North America Operating KPIs Group Airlines Q1 ‘17 +12.7% Q1 ‘17 +1.5pts. +6.4% Q1 ‘17 +3.6pts. -4.4% +0.3% -0.4% -0.2pts. -0.8% Q1 ‘17 +32.5% North America +1.6% +2.2pts. South America -8.9% Q1 ‘17 -9.0% +9.5% +1.2pts. +1.4% -1.1% -2.4% ASK SL
Slide 5: Aviation Services drive strong profit improvement
Aviation Services drive strong profit improvement Q1 2017 operating KPIs and key profit figures at a glance Network Airlines Point-to-Point Airlines Aviation Services Q1 ‘17 in m EUR Q1 ‘17 ASK +9.5% Adj. EBIT2 197 RASK -1.1% Δ year-on-year +162 (constant currency) CASK +1.4% (constant currency; ex-
Slide 6: Strong cash flow development drives reduction of net debt
Strong cash flow development drives reduction of net debt Key balance sheet and cash flow figures at a glance Network Airlines Point-to-Point Airlines Aviation Services Balance Sheet in m EUR Q1 ‘17 vs. FY ‘16 Cash Flow in m EUR Q1 ‘17 vs. Q1 ‘16 Net financial debt 1,925 -28.7% Operating cash flow 1
Slide 7: Strong performance through broad set-up of the Group
Strong performance through broad set-up of the Group Segment overview Q1 2017 in m EUR Network Airlines Point-to-Point Airlines1 Revenue 4,929 3,482 1,061 440 Revenue 683 vs. Q1 ‘16 +224 +132 +77 +40 vs. Q1 ‘16 +306 Adj. EBIT -40 -12 35 -59 Adj. EBIT -132 vs. Q1 ‘16 -76 -57 +14 -29 vs. Q1 ‘16 -8 Adj
Slide 8: Full year guidance remains unchanged
Full year guidance remains unchanged Forecast Lufthansa Group 2017 Network Airlines Point-to-Point Airlines Aviation Services1 ASK +4.5% organic growth2, 12.5% total growth RASK Less negative than last year (constant currency) FX to further support reported figure CASK Reduction at FY16 level (const
Slide 9: Appendix – supplementary information
Appendix – supplementary information – Page 9
Slide 10: Focus on capacity discipline, growth driven inorganically
Focus on capacity discipline, growth driven inorganically Lufthansa Group capacity growth 2017 per region 4% 5% 1% Network Airlines Eurowings (organic) (organic) -6% Network Eurowings Airlines (organic) (organic) 120% 113% 10% 3% Network Eurowings Network Eurowings Airlines (organic) Airlines (organ
Slide 11: Appendix – financial figures Q1 2017
Appendix – financial figures Q1 2017 – Page 11
Slide 12: Fuel costs increase on the back of stronger USD and higher oil prices
Fuel costs increase on the back of stronger USD and higher oil prices Fuel forecast and sensitivities FY 2017 Lufthansa Group fuel expenses after hedging Lufthansa Group price curve remainder of 2017 (in bn EUR) 105 LH price 2017 95 Market price Sensitivities with deviating oil price 4.9 5.1 85 5.4
Slide 13: Absolute costs increase in the first quarter
Absolute costs increase in the first quarter Operating costs and revenues Lufthansa Group (in m EUR) Q1 2017 vs. Q1 ‘16 Total revenue 7,691 +11.2% Other operating income 561 -14.1% Total operating income 8,252 +9.0% Operating expenses 8,242 +8.6% Non-fuel operating expenses 7,032 +7.9% Cost of mater
Slide 14: Free cash flow increases despite higher capex
Free cash flow increases despite higher capex Cash flow statement Lufthansa Group (in m EUR) Q1 2017 vs. Q1 ‘16 3.3 3.4 3.2 EBT (earnings before income taxes) -55 -30 2.0 1.6 Depreciation & amortization (incl. non-current assets) 428 +11 Net proceeds from disposal of non-current assets -23 -18 FY 20
Slide 15: Favourable trading environment particularly in Asia and N. America
Favourable trading environment particularly in Asia and N. America Operating KPIs Group Airlines Total Q1 '17 Europe Q1 '17 Asia/Pacific Q1 '17 Number of flights +6.0% ASK +12.7% ASK +0.3% ASK +9.5% RPK +15.1% RPK +4.8% RPK +11.3% SLF +1.5pts. SLF +3.6pts. SLF +1.2pts. Yield -4.1% Yield +1.2% Yield
Slide 16: Group revenue and currency impact
Group revenue and currency impact Q1 2017 vs. Q1 2016 Currency influence on EBIT (in m EUR) in m EUR Q1 Q2 Q3 Q4 FY (YTD) -39 -39 Volume: +5.8% Currency: +1.4% -62 71 306 Price: -1.2% Brussels Airlines: +4.9% 258 Traffic revenue (+10.9%) 5,808 5,235 1,883 Other revenue (+12.0%) 1,681 Q1 2016 Label Q
Slide 17: Fuel cost development
Fuel cost development Q1 2017 vs. Q1 2016 Hedging result by quarter (in m EUR) Q1 Q2 Q3 Q4 FY (YTD) 2016 -336 -235 -219 -115 -905 2017 -30 in m EUR Change versus previous year +139 Price +331 -306 Brussels Airlines 1,210 Currency Volume +59 1,071 +38 +17 Hedging Q1 2016 Q1 2017 Page 17
Slide 18: Adjusted EBIT and one-off factors
Adjusted EBIT and one-off factors Quarterly results 2016-2017 in m EUR Q1 Q2 Q3 Q4 6M 9M Full Year Adjusted EBIT 2016 -53 582 1,148 75 529 1,677 1,752 Strikes 0 0 0 -100 0 0 100 Adjusted EBIT ex one-off factors -53 582 1,148 175 529 1,677 1,852 Adjusted EBIT 2017 25 One-off effects 0 Adjusted EBIT e
Slide 19: Adjusted EBIT and EBIT per quarter 2017
Adjusted EBIT and EBIT per quarter 2017 in m EUR Q1 Q2 Q3 Q4 6M 9M FY Adj. EBIT 25 pension changes -32 book gains / losses on asset disposals +23 impairments / badwill 0 EBIT 16 interest on liquidity taxes (25% lump sum) cost of capital EACC average capital employed WACC ROCE Page 19
Slide 20: Adjusted EBIT and EBIT per quarter 2016
Adjusted EBIT and EBIT per quarter 2016 in m EUR Q1 Q2 Q3 Q4 6M 9M FY Adj. EBIT -53 582 1,148 75 529 1,677 1,752 pension changes 0 0 +721 -43 0 +721 +678 book gains / losses on asset disposals +5 +37 +7 -11 +42 +49 +38 impairments / badwill -1 -52 -64 -76 -53 -117 -193 EBIT -49 567 1,812 -55 518 2,3