Deutsche Lufthansa Ag · XETR:LHA
Deutsche Lufthansa — Q1 2022 Earnings Presentation
29 slides from Deutsche Lufthansa's earnings presentation, May 5, 2022
Slide 1: Q1 2022 Results
Q1 2022 Results Carsten Spohr, CEO Remco Steenbergen, CFO Frankfurt, 05 May 2022
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: Q1 2022 Results
Q1 2022 Results Carsten Spohr, CEO Frankfurt, 05 May 2022
Slide 4: Lufthansa Group is leaving the Corona crisis behind
Lufthansa Group is leaving the Corona crisis behind Very strong booking momentum since March Network almost fully restored Cargo business going from strength to strength Group prepared to limit impact from industry-wide operational challenges Page 4
Slide 5: Demand has returned strongly and at attractive yields
Demand has returned strongly and at attractive yields Group Airlines new bookings Group Airlines bookings on stock1 by week as of end of CW17 in 2022 vs. end of CW17 in 2019 Transatlantic particularly strong 81 82 2022 77 Premium recovers more strongly than non-premium 2019 Corporate travel ex
Slide 6: Q1 – weak start due to Omicron, strong finish as demand started to return
Q1 – weak start due to Omicron, strong finish as demand started to return January March Corporate bookings (in % of 2019 levels) ~20% >50% Passengers (in millions) 3.7 5.7 Seat Load Factor 59% 72% MRO: Serviced flight hours 757k 816k Page 6
Slide 7: Q1 2022 Results
Q1 2022 Results Remco Steenbergen, CFO Frankfurt, 05 May 2022
Slide 8: Q1 Adj. EBITDA close to break-even due to recovery from Omicron lows
Q1 Adj. EBITDA close to break-even due to recovery from Omicron lows – Strong booking intake drives clearly positive free cash flow (in EUR million) Q1 ’22 Q1 ’21 Change in % Revenues 5,363 2,560 +109% Operating expenses 6,361 3,885 +64% Of which fuel 987 275 +259% Of which staff 1,788 1,296 +38% Of
Slide 9: Passenger Airlines: Yield strength and unit cost progress offset by Omicron hit
Passenger Airlines: Yield strength and unit cost progress offset by Omicron hit Operational KPIs Adjusted EBIT in EUR million Comments Group Airlines’ result heavily Q1 ’22 vs. 2021 vs. 2019 impacted by Omicron fears and high infection rates in home markets at ASK 45,656m +170.9% -42.5% -1,114 the
Slide 10: Lufthansa Cargo reaches record profit, MRO recovers strongly
Lufthansa Cargo reaches record profit, MRO recovers strongly, Catering result affected by non-recurrence of prior year positive one-off Adjusted EBIT in EUR million Comments 495 315 Cargo generates record result as Q1 ’22 Q1 ’21 global supply chain disruptions and yield strength continue 120 Luf
Slide 11: Booking intake drives positive free cash flow
Booking intake drives positive free cash flow First Quarter 2022 Adjusted EBIT / Adjusted free cash flow in EUR million 1,496 (889) 393 (630) 2,020 780 (86) -28 563 -591 Adjusted EBIT Depreciation & Adjusted Liability for Ticket-related Other1 Operating Net CAPEX2 Repayments Adjusted free Amortizati
Slide 12: High levels of liquidity enable the repayment of the state-backed loan in CH
High levels of liquidity enable the repayment of the state-backed loan in CH in EUR million Comments 9.9bn (204) 9.5bn 1,300 (1,254) 9.7bn 735 710 Free cash flow performance 1,254 2,000 1,044 facilitates repayment of EUR 352 Target liquidity: EUR 6-8bn million stabilization measures in CH and the
Slide 13: Strong cash flows and lower pension deficit further strengthen balance sheet
Strong cash flows and lower pension deficit further strengthen balance sheet Net debt in EUR million Net pension liability1 in EUR million Shareholder equity in EUR million 9,023 8,283 6,540 5,426 5,260 4,490 8,283 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 M
Slide 14: EUR 2.9bn of targeted EUR 3.5bn cost savings secured
EUR 2.9bn of targeted EUR 3.5bn cost savings secured and measures for remaining gap identified Targeted sustainable cost savings 2020 - 2024 in EUR billion Measures implemented and recognized in P&L ~3.5 ~1.8 Measures implemented, not yet recognized in P&L Measures not yet implemented 57% 1.4bn 21%
Slide 15: Unpredictable jet crack movements make fuel cost outlook highly uncertain
Unpredictable jet crack movements make fuel cost outlook highly uncertain – Group intends to pass on higher fuel cost to customers Expected fuel cost sensitivity after hedging (FY 2022)1 Hedging portfolio as of March 31, 2022 128 FY FY Q2 Q3 Q4 ø Market price crude oil2 7,150 7,350 7,600 7,800 8,000
Slide 16: High demand supports the significant ramp-up of planned capacity
High demand supports the significant ramp-up of planned capacity Expected capacity offered by Group airlines Short-haul Transatlantic Total ASK in % of 2019 Eurowings above 2019 capacity ~95% ~90% ~85% ~85% ~85% ~80% ~75% ~80% ~75% Q2 Q3 FY 2022 Page 16
Slide 17: Record performance of Lufthansa Cargo is set to continue
Record performance of Lufthansa Cargo is set to continue Lufthansa Cargo Q1 Yield Development Global supply chain disruptions +136% continue Air freight capacity will remain structurally limited Air freight demand expected to 2019 2020 2021 2022 remain strong Page 17
Slide 18: Outlook confirmed despite uncertainty caused by recent spike in fuel prices
Outlook confirmed despite uncertainty caused by recent spike in fuel prices 2022 Capacity (ASK): Around 75% of 2019 ASK 2022 Adjusted EBIT: Improvement compared to prior year 2024 Adj. EBIT margin: At least 8% Page 18
Slide 19: Appendix - supplementary information
Appendix - supplementary information- Page 19
Slide 20: Traffic Data
Traffic Data Jan vs.2019 Feb vs.2019 Mar vs.2019 Q1 vs.2019 Passengers in 1,000 3,706 -59.2% 3,788 -58.2% 5,679 -49.7% 13,173 -55.2% Available seat-kilometers (m) 15,623 -40.6% 12,964 -47.0% 17,070 -40.4% 45,656 -42.5% Revenue seat-kilometers (m) 9,251 -54.0% 8,336 -55.5% 12,274 -46.9% 29,862 -51.8%
Slide 21: Operating KPIs of Passenger Airlines by region vs. 2019
Operating KPIs of Passenger Airlines by region vs. 2019 (unless stated otherwise) Total Q1’22 Europe Q1’22 Asia / Pacific Q1’22 Number of flights -49.1% ASK -41.4% ASK -71.1% ASK -42.5% RPK -46.7% RPK -80.2% RPK -51.8% SLF -6.5pts. SLF -26.2pts. SLF -12.5pts. RASK incl. currency1) -19.5% RASK incl.
Slide 22: Calculation of operational airline KPIs
Calculation of operational airline KPIs Passenger Airlines, Q1 2022 1) Traffic revenues (€m) 2510 1) Total Revenues (€m) 3,020 2) Not assignable (€m) 300 2) Other operating income (€m) 138 Yield = 3) Basis for Yield (1)–(2) (€m) 2,210 3) Reversal of provisions (€m) 22 RASK 4) RPK (m) 1 29,862 4) FX
Slide 23: Group P&L
Group P&L Lufthansa Group (in EUR m) Q1 ’22 vs. Q1 ’21 Revenues 5,363 +109.5% Total operating income +5,813 +101.3% Operating expenses 6,361 +63.7% Of which fees & charges 678 +137.9% Of which fuel 987 +258.9% Of which staff 1,788 +38.0% Of which depreciation 563 -0.5% Result from equity investments
Slide 24: EBIT / Adjusted EBIT bridge Q1 2022
EBIT / Adjusted EBIT bridge Q1 2022 in EUR million 110 (70) (9) 18 -591 -640 EBIT Impairments, material Release of remaining Restructuring costs, Other Adjusted EBIT write-offs and other provisions after mainly relating to LCAG extraordinary expenses successful completion of voluntary leave program
Slide 25: Adjusted EBIT / Net Income Q1 2022
Adjusted EBIT / Net Income Q1 2022 in EUR million 108 -591 -584 33 (49) (2) (83) Adjusted EBIT Adjustments Interest result Profit/loss attributable Tax result Other Net EBIT to minority interests Income Q1 ’22 FY ’21 Page 25
Slide 26: Adjusted EBIT by Airline
Adjusted EBIT by Airline Adjusted EBIT (in EUR m) Q1 ’22 Q1 ’21 Change in % Lufthansa German Airlines -715 -831 +14.0% SWISS -62 -211 +70.6% Austrian Airlines -109 -104 -4.8% Brussels Airlines -62 -70 +11.4% Eurowings -163 -143 -14.0% Passenger Airlines -1,114 -1,359 +18.0% Page 26
Slide 27: Cash flow statement
Cash flow statement Lufthansa Group (in m EUR) Q1 ’22 vs. Q1 ’21 EBT (earnings before income taxes) -690 +623 Positive working capital effect driven by Depreciation & amortization (incl. repairable MRO materials) 616 +57 EUR 1,131 million net cash effect from new bookings Net proceeds from disposal
Slide 28: Multi-Year financial overview
Multi-Year financial overview Lufthansa Group (in m EUR, as reported) 2015 2016 2017 2018 20191) 2020 2021 Operating KPIs RASK ex currency -3.0% -5.9% +1.9% -0.5% -2.5% -26.7% -6.1% CASK ex currency, ex fuel 2) +2.4% -2.5% -1.8% -1.7% -1.5% +84.6% -25.8% Profit & Loss Revenues 32,056 31,660 35,579 3
Slide 29: Maturity profile of borrowings as of March 31, 2022
Maturity profile of borrowings as of March 31, 2022 3,000 2,500 2,000 1,500 1,000 500 0 2022 2023 2024 2025 2026 2027 2028 2029 Straight Bond Hybrid Convertible Bond Schuldscheindarlehen Aircraft Finance (secured) Stabilization measures* Other** * As drawn on Mar 31 - – predominantly scheduled repay