Deutsche Lufthansa Ag · XETR:LHA
Deutsche Lufthansa — Investor Presentation (June 2021)
26 slides from Deutsche Lufthansa's investor presentation, June 2021
Slide 1: Lufthansa Group Accelerating our Transformation
Lufthansa Group Accelerating our Transformation June 2021 Carsten Spohr, CEO Remco Steenbergen, CFO
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: Gradual market reopening has led to a sharp increase in bookings
Gradual market reopening has led to a sharp increase in bookings Air travel has started to recover… …supported by increasing progress on …leading to the release of pent-up vaccine roll-out… demand Global Airline Industry – Weekly ASK EU - World Share of people with at least one dose of COVID-19 Luft
Slide 4: Lufthansa repositioned for the recovery
Lufthansa repositioned for the recovery Potential capital Decisive actions Structural increase to re- taken to respond transformation establish to unprecedented supporting new sustainable and disruption targets efficient capital structure Cash drain more than halved Targeted cost reduction of EU
Slide 5: Crisis requires long-term restructuring to right-size business for future
Crisis requires long-term restructuring to right-size business for future Targeted cost reduction1 by 2024 compared to 2019: EUR 3.5 billion A B C Personnel cost Operational Fleet Main drivers reduction simplification & modernization & overhead reduction standardization 1 2024 versus 2019, based on
Slide 6: Around half of personnel cost reduction already achieved
Around half of personnel cost reduction already achieved A Achieved headcount reduction Path to additional cost savings clearly defined in Germany Lufthansa Group headcount 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ~26,000 137,000 Cabin: Long-term agreement with UFO for Lufthansa German Airlines (until
Slide 7: Operational simplification and overhead reduction across the Group
Operational simplification and overhead reduction across the Group B Reduction of Discontinuation of passenger Closure of SunExpress organizational flight operations at Closure of multiple complexity Deutschland Germanwings other bases and sites Improvement of Increased synergies Digitalization and
Slide 8: Accelerated fleet restructuring will reduce complexity and costs
Accelerated fleet restructuring will reduce complexity and costs C New Normal Fleet renewal and harmonization reduce costs Large Very Large 3801 748 748 Fuel efficiency New generation of aircraft with up to 30% lower fuel consumption per ASK 744 779 Intercontinental 773 773 Low maintenance cost
Slide 9: Ongoing fleet modernization despite reduced investment to strengthen free cash flow
Ongoing fleet modernization despite reduced investment to strengthen free cash flow Reduction of fleet size before resumption of moderate growth… …with CAPEX far below pre-crisis levels Number of aircraft in Group Lufthansa Group Gross Investments2 in EUR billion July 2023 July 2019 New operating Fl
Slide 10: Group transformation accelerated – well positioned to seize opportunities ahead
Group transformation accelerated – Lufthansa Group is well positioned to seize opportunities ahead Capturing Market Opportunities Enhancing Customer Centricity Enhancing our offering to secure share in Delivering an individual and seamless customer experience to strategic markets and capitalize on s
Slide 11: Multi-hub strategy caters to the unique structure of the Group's home markets
Market opportunities Customer centricity Digitalization Sustainability Ways of working Multi-hub strategy caters to the unique structure of the Group’s home markets Decentralized home markets… …require high share of feeding Unique characteristics Inhabitants in million, who reach airport within Ec
Slide 12: Well exposed to Transatlantic recovery - supplemented by future Asian growth potential
Market opportunities Customer centricity Digitalization Sustainability Ways of working Well exposed to Transatlantic recovery - supplemented by future Asian growth potential Passenger Recovery by Region North America to Ramp-Up Quicker Longer Term Asian Growth Potential Expected Passenger Recovery b
Slide 13: Global joint venture network supports coordinated re-start in long haul
Market opportunities Customer centricity Digitalization Sustainability Ways of working Global joint venture network supports coordinated re-start in long haul Established network of Joint Ventures with leading global partners Clear strategic benefits in the New Normal 2019 figures Joint distribution
Slide 14: Capturing the varying speed of the recovery with a segmented offering
Market opportunities Customer centricity Digitalization Sustainability Ways of working Capturing the varying speed of the recovery with a segmented offering Aircraft retirements adapt premium offer Expected growth in Premium Economy will Leisure and VFR lead recovery to slower corporate recovery be
Slide 15: Edelweiss and Eurowings Discover serve premium leisure markets
Market opportunities Customer centricity Digitalization Sustainability Ways of working Edelweiss and Eurowings Discover serve premium leisure markets Edelweiss well established in Switzerland EW Discover launching in German market Home Integrated into Home Integrated in Lufthansa base SWISS feeder &
Slide 16: A transformed Eurowings to drive profitable recovery
Market opportunities Customer centricity Digitalization Sustainability Ways of working A transformed Eurowings to drive profitable recovery Robust yield premium Significant restructuring progress Strategic focus areas Yield Standardized, modern fleet of 75 a/c € per passenger Further strengthen po
Slide 17: Stimulating demand and driving customer satisfaction through innovation
Market opportunities Customer centricity Digitalization Sustainability Ways of working Stimulating demand and driving customer satisfaction through innovation Customer Journey Inspiration Compare Book Plan & Get to airport Take flight Connect Arrive at Get to & stay Get to airport Take Arrive at Get
Slide 18: Consistent customer experience through digitization and Miles & More
Market opportunities Customer centricity Digitalization Sustainability Ways of working Consistent customer experience through digitization and Miles & More Development of a seamless customer experience… …integrated into Europe’s largest frequent flyer program 2019 figures One customer interface Alig
Slide 19: Direct distribution enhances market reach and allows to individualize the offer
Market opportunities Customer centricity Digitalization Sustainability Ways of working Direct distribution enhances market reach and allows to individualize the offer Focus on growing share of direct 45% >50% 75% 30% distribution channels 2015 2018 2019 Target 2024 Enhanced customer experience Incre
Slide 20: Target to halve carbon emissions over the next decade
Market opportunities Customer centricity Digitalization Sustainability Ways of working Target to halve carbon emissions over the next decade -50% Net CO2 by 20301: Avoid – Reduce - Compensate Key drivers Contribution to target reduction (Early) retirement of older aircraft Fleet renewal Addition
Slide 21: Development of the Group's organization and governance
Market opportunities Customer centricity Digitalization Sustainability Ways of working Development of the Group’s organization and governance to drive faster decision-making, reduce complexity and foster more efficient cooperation Integrated Aviation Group Airline Group with functional holding Deuts
Slide 22: Streamlining Lufthansa Group to a focused Airline Group
Market opportunities Customer centricity Digitalization Sustainability Ways of working Streamlining Lufthansa Group to a focused Airline Group Core business Evaluation of partial Divestiture targeted divestiture options once fair value can be ongoing realized Lufthansa Group: Accelerating our Transf
Slide 23: Lufthansa Group mid-term targets for the New Normal
Lufthansa Group mid-term targets for the New Normal Assumptions Drivers 2024 Targets Capacity (ASK) Revenues Adjusted EBIT margin Low single digit RASK decline at 90-95% of pre-crisis levels by 2024 Group Airlines; Aviation Services above 2019 levels At least 8% Recovery by region CASK (excl. fuel1)
Slide 24: Balance sheet strengthening rests on three key pillars
Balance sheet strengthening rests on three key pillars STRENGTHENING OF BALANCE SHEET Return to profitability Repayment of stabilization measures Divestments Achieve cost reductions to ensure Replace state aid funds through long- Divest non-core assets in part or in quick return to profitability and
Slide 25: Accelerating our Transformation
Accelerating our Transformation Decisive action taken to ensure Ongoing innovation drives convenient, liquidity and respond to industry individual and sustainable disruption product Key restructuring actions taken to Disciplined financial management create a stronger, more resilient to strengthen th
Slide 26: Q&A
LUFTHANSA GROUP lufthansagroup.com
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