joint-ppt

28 September 2017

Lufthansa Group in Italy Growing on Innovation and Quality Milano

lufthansagroup.com Lufthansa Group in Italy page 0

Our Strategy: Based on three strategic pillars

#1 for customers, shareholders, employees and partners

Network Airlines

Aviation Services

#1 in Europe

Point-to-Point Airlines #1 in home markets (D, AT, CH, B)

Premium positioning and increasing profitability

Strengthening of competitive position

Participation in global market development

#1 world-wide

Additional Businesses and Group Functions

Exploiting synergies and consistent capital allocation Lufthansa Group in Italy page 1

Network Airline Strategy Increasing revenues Strong revenue backbone ➢ One single Lufthansa Group revenue management ➢ 70% of long-haul revenues covered by commercial Joint ventures

Premium positioning & new products ➢ 180 aircraft with broadband internet

Innovation & digitalization ➢ 500m EUR dedicated funds Lufthansa Group in Italy page 2

Reducing costs Efficient and modern fleet ➢ Successful phase-in of CSeries, A320neo and A350 ➢ minus 20% cash operating costs ➢ 40 new aircraft in 2017

Modernizing labor cost structures ➢ New schemes for all employees ➢ Agreement in principle reached with pilots’ union until 2022 ➢ Planning reliability due to industrial peace until 2022

5 Airlines: 11,738 weekly frequencies, 308 destinations, 103 countries worldwide Europe

447 frequencies /w 25 destinations 2 countries

6,970 frequencies/w 163 destinations 40 countries

Middle East 189 frequencies/w 15 destinations 11 countries

Africa South America 73 frequencies/w 13 destinations 9 countries

Lufthansa Group in Italy page 3

203 frequencies/w 38 destinations 28 countries

(DE, AT, CH, BE)

3,595 frequencies/w 32 destinations 4 countries

w/o homemarkets

North Atlantic

Homemarkets

Far East 261 frequencies/w 22 destinations 9 countries

New Airbus A350 ▪

Most modern & eco-friendly long-haul passenger aircraft in the world

▪

More spacious experience & pleasant cabin pressure, larger screens

▪

Operating from Munich to Delhi, Boston, Mumbai and Hong Kong

▪

First 15 aircraft operate from Munich, 5 already in service

Lufthansa Group in Italy page 4

Munich Terminal 2 is #1 worldwide ▪

MUC Terminal 2 awarded “World’s Best Airport Terminal” by Skytrax

▪

New satellite opened April 2016 offers 52 new gates and 5 new Lufthansa Group lounges (incl.

First Class Lounge)

▪

Access of satellite through Terminal 2 via metro (1 min)

Lufthansa Group in Italy page 5

Innovation & digitalization: Set the benchmark in the industry by investing over â‚Ź500m until 2020

Lufthansa Group in Italy page 6

Lufthansa Group in EMEA: record passenger & seat load factor

Passengers

PL

NL

RO

BE

HU IT

ES

in 1,000

49,052

+5.5%

Available seat-kilometres m

51,757

+3.2%

Revenue seat-kilom.

39,516

+6.1%

76.3

+2.1pts

UA

BG PT

Change vs.

1-8/2016

RU

DK

GB

FR

FI

SE

NO

Traffic figures Europe Network & Cargo Jan-Aug 2017

IL

Passengers load-factor

IR

EG SA

AE

%

Traffic figures Middle East & Africa Network & Cargo Jan-Aug 2017

NG

KE

m

PASSENGERS Positive to PY Stable to PY

Passengers

Change vs.

1-8/2016

in 1,000

3,158

+12.5%

Available seat-kilometres m

16,164

+9,5%

Revenue seat-kilometres m

12,733

+13.3%

78.8

+2.7pts

SEAT LOAD FACTOR Positive to PY Stable to PY Top 25 markets in EMEA by ASK, excl. DE, AT, CH Figures for LH, LX, OS

ZA Lufthansa Group in Italy page 7

Passengers load-factor

%

LHG in Italy 2016 ïƒ 2017: One year later

Lufthansa Group in Italy page 8

LHG in Italy 2016 ïƒ 2017: One year later

LH GROUP JAN-AUG 2017: > 6 Mio. Passengers to/from Italy +12% vs. 2016 HUB airlines +6% P2P airlines +28% Lufthansa Group in Italy page 9

LHG in Italy 2016 2017: A won Challenge

Best results in Italy since 5 years ▪

Italy above average growth in Europe - back on growth path by passengers & revenue

▪

We win back customers from competition

▪

All LHG airlines are growing (HUB & P2P airlines)

▪

All customer segments are growing (Corporate & Leisure)

▪

Outlook for next months confirms further growth

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LHG in Italy Reasons of the market success Implementation of the LHG strategy in Italy –

New concepts for growth, digitalization leads to new offers, effective & lean organization, customer centricity & quality focus

Stable presence in the market –

LHG serving 21 airports in Italy, close relationship with the different regions, both outgoing & incoming traffic. Most destinations served since decades, reliable team

Product innovations –

Invest in new aircraft & services (flight & ground->A320neo,New Terminal MUC, WIFI on board, performing Hubs & choice among LHG airlines)

Loyal customer community – –

> 1.5 Mio M&M customers , strong backbone corporate traffic > 7.000 corporate partnerships, new customers with leisure destinations, new partnerships (cruise)

New agility to react on market changes –

Lufthansa Group in Italy page 11

Lean setup, fast decision taking  win back customers, win new customers. Italy priority market with high focus

LHG in Italy Increasing capacity next winter 17/18 ▪

In Winter 17/18 almost 1.000 flights/week from/to Italy with LHG airlines (+9%)

▪

HUB airlines +6%, P2P airlines +28% more flights

▪

New flights – –

▪

LH : Frankfurt to Bari/Catania/Genova/Palermo EW: Munich to Catania/Napoli/Roma

Milano (MXP)

Venezia (VCE)

Milano (LIN)

Torino (TRN)

Trieste (TRS)

Verona (VRN) Genova (GOA) Bologna (BLQ)

Pisa (PSA) Firenze (FLR)

Ancona (AOI) Perugia (PEG)*

Roma (FCO)

Bari (BRI)

Increase of frequencies – – –

– Lufthansa Group in Italy page 12

LH: Frankfurt to Napoli/Pisa/Verona/Roma OS: Vienna to Bologna/Milano/Napoli EW: Vienna to Roma; Stoccarda – Bari/Catania/Milano; Duesseldorf – Catania/Napoli/Roma SN: Brussels to Milano/Roma

Olbia (OLB)*

Napoli (NAP) Brindisi (BDS)*

Lamezia (SUF)* Cagliari (CAG)*

Palermo (PMO) Catania (CTA)

LHG in Italy Focus topics 2018

Leisure

New leisure destinations in 2018 (i.e.Costa Rica, San Diego, Seychelles) Competitive offers & products (3 classes) Further increase partnerships with leisure producers

Lufthansa Group in Italy page 13

Corporate

Corporate business remains sales backbone in Italy Free of charge Corporate Program with even more attractive incentive scheme (PartnerPlusBenfit) New MXP lounge More flexibility for biz travelers (change of flight on same day)

LHG in Italy Focus topics 2018

Digitalization in Italy Development of tech solutions that provide our customers with new individualized products.

Best practice already in Germany with new corporate offers. Promising discussions already in Italy

Develop performing sales tools to automate & simplify processes (i.e. Groups booking tool)

Lufthansa Group in Italy page 14

Mille grazie – Thank you for your attention – your questions, please !

Lufthansa Group in Italy page 15