Slide 1: Financial Stabilization Package
Financial Stabilization Package Briefing Materials Frankfurt June 2020
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: Key Highlights
Key Highlights Stabilization package agreed with the German Economic Stabilization Fund (ESF) will ensure going concern and viability of the Lufthansa Group Result of intense negotiations with the ESF and EU Commission Secures the necessary strategic and operational flexibility of Lufthansa Gr
Slide 4: 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 5: Key facts around the stabilization package
Key facts around the stabilization package EUR 5.7 billion silent participation EUR 4.7 billion accounted as equity1 (“Silent Participation I”) Key elements of the EUR 1.0 billion accounted as financial debt1, with certain conversion rights for the ESF (“Silent Participation stabilization pack
Slide 6: The Covid-19 impact on Lufthansa Group
The Covid-19 impact on Lufthansa Group Pre-crisis situation (as of 31. December 2019) Current situation (as of May 2020) €36.4 billion €2.0 billion (5.6%) c.$60 billion c.95% cash burn expected for revenue adj. EBIT (margin) fewer bookings airlines in Q2 20202 €4.0 billion >22,500 c.95% c.87,000 wee
Slide 7: 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 8: Overview of the ESF stabilization package
Overview of the ESF stabilization package Key components Description EUR 9.0 billion Syndicated loan; 80% backed by KfW Syndicated KfW loan Maturity of 3 years with margin grid linked to rating 3.0 Linked to certain conversion rights for the ESF Financial liability under IFRS / German GAAP 1
Slide 9: Key elements of the silent participation and equity instruments
Key elements of the silent participation and equity instruments Silent Participation I and II Share issuance and conversion rights Direct share issuance Silent Participation I Deeply subordinated / only senior to equity 119.5 million shares issued at EUR 2.56 EUR 306 Subject to full repaymen
Slide 10: Other key terms and conditions of the stabilization package
Other key terms and conditions of the stabilization package 2x seats on the Supervisory Board of LH Group to be filled in agreement with the German Board representation government (“Airbus model”), 1x of which is to become a member of the Audit Committee Except in the event of a takeover, the ES
Slide 11: Slot remedies agreed with the EU Commission
Slot remedies agreed with the EU Commission Overview of slot transfers Key facts and conditions Total of 48 slots Lufthansa Group to transfer a total of 48 take-off and landing rights transfers (slots) to a competitor 3 take-off and 3 landing rights per aircraft per day for the stationing of up
Slide 12: 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 13: Future financial profile and financing considerations
Future financial profile and financing considerations Maturity profile of existing borrowings Financing strategy (As of March 31, 2020; in EUR billion) Target of LH Group to revert to Investment 2.6 3.0 Grade credit rating 1.2 1.3 0.8 0.6 0.3 0.4 0.3 0.2 0.3 Near-term refinancing via a mix of Euro
Slide 14: 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 15: Next steps and key conditions in relation to the ESF package
Next steps and key conditions in relation to the ESF package Finalization and execution of long-form documentation Clearance of State Aid Package by EU Commission Receipt of required antitrust clearances Approval by Lufthansa shareholders in EGM on June 25, 2020 (2/3 majority required or sim