Deutsche Lufthansa AG (ETR:LHA)

Earnings Call: Q1 2020

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Jun 3, 2020

Thank you, Haley, and good afternoon, ladies and gentlemen. Thank you for your interest in today's call. Let me briefly outline the format today's conference call, which we have set up as a joint call for analysts and investors. Our CEO, Carsten Spohr and Thorsten Dukes, member of the executive board and responsible for Digital And Finance will present you our first quarter results and give an update on how we are addressing the effects of the corona crisis. I would also like to introduce William Williams, our Senior Vice President, Corporate Strategy And M And A, who will be around to answer questions on the stabilization package if needed later on. The presentation slides, which the two speakers will refer to are available in the Investor Relations section of our Lufthansagroup.com website in case you haven't dialed them already. The management presentation will be followed by 2 separate Q and A sessions, one for our analysts in English language and the second one for journalists in German language. We currently ask all participants to fix this order. Thank you very much. I'd now like to hand over to Thorsten Dukes who will discuss our quarterly results, Thorsten. Dennis, thank you, and good afternoon from Frankfurt. Welcome to our first quarter results conference call, which is special. On various aspects. First, we're expansion, who has been our CFO since 2017, cannot be here today. He has stepped down from his position for health reasons at the beginning of today. We wish you all the best and look forward for what you're seeing you soon again. 2nd, we would have normally published our quarter results at the end of April. This was not possible because of the corona crisis, which became existential threat for our airline industry and ourselves in just a matter of weeks, it meant that Lufthansa would not have been able to survive on its own. The stabilization package which we have just agreed with the economic stabilization fund in Germany will secure the group's solvency. We are grateful for this support, which this great company and is almost 138,000 employees received. Kasthen Spohr will present you the details on this package and its implication for our future. But first, let me briefly summarize our first quarter results. The current crisis is unprecedented. We have started sorry, what started as a local limited disease has turned into a global pandemic, which brought the global airline industry to Istanbul. We got into this situation through no fault of our own. We were one of the first industries affected by the crisis and will be among the last emerging from it. Our reaction to the crisis has been swift and focused We were the 1st major airline, cutting capacity significantly. We still contained the loss resulting from sudden drop in demand and the imposition of travel restriction and travel bans around the world. Nonetheless, we recorded an operating loss of billion in the first quarter. We even expect a significantly higher loss in the second quarter given that we operated performance in our different segments, starting with the Network Airlines. Here, capacity was down 19% in the quarter, with far more significant declines towards the end of the period. RAS decreased 5.5% on a currency adjusted basis burned by disproportionate declines in Asia, where the crisis hits 1st. Despite immediate cost reductions, resulting in a 9% decline of operating expenses in the quarter CASK was up 11.1% on a currency adjusted basis. In sum, adjusted EBIT amounted to negative 1000000, some 1000000 below the prior year level, particularly affected by the sharp deterioration in the long haul business towards the end of the quarter. This wasn't a factor in the performance at Eurowings given that its long haul business for which Lufthansa German Airlines has taken over commercial responsibility and Brussels Airlines are now, for the first time, reported as part of Network Airlines. While adjusted EBIT at Eurowings continued to be negative, It did not deteriorate any further compared to the prior year. This highlights the progress that have been made the turnaround program announced last summer. The optimization of the network, including the discontinuation of unprofitable routes, accounted for approximately a third of the capacity decline in the quarter. RASK was up 7.4% on a currency adjusted basis supported by significantly lower customer compensation payments, which are now netted in the revenue line. However, this was offset by a 13.4% increase in CASK, meaning that adjusted EBIT remained foremost stable amounted to a negative EUR 175,000,000. Let me turn to the aviation services, starting with the logistic business around lift on Chicago. Where profits declined negative 1000000. This had to do with weaker demand at the beginning of the year in line with the trend of 2019 and the loss of belly capacity in the later stages of the quarter. The letter, however, led to substantial yield increase in the freighter business, which amount for roughly half of the cargo revenues, a trend which has accelerated further since quarter end. In the MRO segment, however, the sudden drop in global flight activities and the challenging situation, which many airline customers are in Let profits drop to just EUR 4,000,000 in the quarter. Profits in the catering segment amounted to a negative 1,000,000, equally affected by the standstill of global air travel. The results continued to include LSG's European operations, which we agreed to sell to Gate Group. The EU Commission approved the transaction at the beginning of April, subject to the condition that the buyer sells certain activities at different airports. We expect the transaction to close once Gate Group has fulfilled these conditions. Finally, the results of the other businesses, which are which also includes the expenses of group functions declined to a negative 1,000,000 because of losses at AirPlus And Lufthansa Aviation trend. In sum, the group's adjusted EBIT amounted to negative 1,000,000,000. Adjustments, which describes the difference between adjusted EBIT and EBIT and are based on a defined set of criteria, amounted to 1000000. They are largely explained by 2 effects. 1st, aircraft empowerments that had a million impact related to the decision to permanently ground 49 aircrafts. Retirement include 6 A380s, 5 Boeing 740seven-four 11320s, all operated by Lufthansa German Airlines as well as 3 Boeing 76713-8@austrian. The remainder is aircraft leased by Brussels Airlines, which we won't fly anymore in the remaining lease time. 2nd, we impaired goodwill at LSG North America and at Eurowings amounting to a total of 1000000 to account for the long and only gradual industry recovery. We are expecting. Finally, the Corona driven capacity decline has led to an over hedging of fuel costs. The results of ineffective hedges are of the financial results. Assuming an only gradual resumption of flight activity starting this summer, and an average oil price of the low 30s in the remainder of the year, we booked a 1,000,000 charge, of which 1,000,000 related to negative option values realized already in the first quarter. Now on the cash flow statement and the balance sheet. Investments declined by 38% to EUR 750,000,000 as we halted all non business critical investments over the course of the first quarter. Considering the postponement of new aircraft deliveries, which we are currently negotiating with aircraft manufacturers, this trend is set to continue in the quarters to come. Investments in the full year of 2020 are now forecasted to amount to around 1,000,000,000 or even less, including engine overhauls and non aircraft related expenditures. This represents a significant reduction compared to our original CapEx plan of more than 1000000000. In addition to lower investments, the increase of adjusted free cash flow to million was driven by strict working capital management, especially the significant reduction of receivables and the non recurrence of prior year tax payments. As a result, net debt declined to 6.4 1,000,000,000. The pension provisions grew by 5% to 1,000,000,000, reflecting the negative performance of plan assets which was only partly offset by the 0.3 percentage point increase of the discount rate. Ladies and gentlemen, our cash flow performance in the first quarter highlights that the group has shifted into crisis mode already at a very early stage of the Corona pandemic. Since then, financial management has focused on cash and the protection of liquidity. In March, we announced the target to reduce fixed costs in our airline business which account for around reductions are in line with this target we have set. The implementation of short time work for up to 2 thirds of group employees had been the largest driver in this regards and accounts for approximately half of total fixed cost savings, despite the top up payments made by the company and guaranteeing employees between 85 90 percent of the last net salary. In light of the dimensions economic reality. The discussions which we are having with the social partners and operating partners in this regard, I can tell you are not easy, but progressing in a constructive way. Other drivers of the reductions include further personal measures such as the expansion of flight hours, project postponement and cancellations as well as the shift of aircraft. Maintenance. The drawdown of credit facilities, the issues of commercial papers and promissory notes for further bolstering our liquidity position over the course of the first quarter. Centrally available liquidity amounted to 1,000,000,000 at the end of March. However, it has become clear since then that raising new funds is only possible at extremely unfavorable terms. Some markets such as the aircraft financing market are effectively closed altogether. In the absence of new financing opportunities, limiting our cash burn has become even more important At the moment, our cash burn amounts to around 1,000,000 per month, benefiting from considerable cost savings I mentioned. Earlier. We expect potential working capital risk and upcoming refinancing needs create a risk that liquidity reserves will be exhausted shortly. First, new bookings will remain far below normal levels despite the gradual restart, which just begun. At the same time, flight cancellations mean that customers can claim up to 1000000000 of refunds. Despite the success we are having in offering vouchers and rebookings, the remaining risks continue to be substantial. 2nd, we will have to repay around billion of financial liabilities due to the remainder of 2020. 3rd, trade payables continue to amount to more than 2,000,000,000 euros. Last but not least, 4th, the crisis has hit many airline customers of Lufthansa Technik causing increased default risk going forward. In light of these risks, it is evident that our measures to protect liquidity and the expected recovery of cash flows towards year end will not be enough to secure the group's solvency. We are dependent on receiving financial support from the governments of our home markets. In this regard, The stabilization package we agreed with the economic stabilization fund in Germany has been a milestone. Our CEO, Carlton Spohr will present you more details on the package. But before turning over to him, Let me conclude my remarks with our financial outlook. Customer outline our expectations of a gradual recovery at the airlines in the second half year shortly. So let me focus on Aviation Services. The logistics segment is the bright spot in our business at the moment. I alluded to significantly high yields in the lift on the cargo freighter business earlier, supported by the current imbalance of supply and demand following the large scale grounding of passenger aircrafts. This is why we are operating 40 passenger aircrafts across the group for the transportation of freight. As a result, we expect the adjusted EBIT margin in Logistics to be clearly positive this year. Following almost zero profits in the prior year. For our MRO and catering businesses, however, the outlook is far less positive. Lufthansa Technik is hit hard by a significant deterioration of utilization starting in March. Reflecting the sharp decline in global flight activity. The same is true for the catering segment. In both businesses, cost savings will only partly offset the profit impact from lower sales. In sum, we continue to expect the group's adjusted EBIT to decline significantly. Low visibility and high levels of uncertainty, however, make a detailed financial outlook impossible also at this stage. Thank you very much. And Carsten, now over to you. Yes. Thank you, Thorsten, Nicky Dennis. Ladies and gentlemen, good afternoon, and a warm welcome also. From my side, Obviously, hope you are doing well and healthy in these, let's say, interesting times. After the developments of the past days weeks, the quarterly results that we are reporting here today are probably moving somewhat into the background. As you know, in view of the far reaching on long term effects of the corona crisis on our core business, we have worked hard worked hard to secure our solvency And since a few days, I might say, with success. And today, we can state that important prerequisites for securing our financial stability have indeed been achieved. We therefore have a solid base to continue with our successful strategy SD Leading European Allang Group. We still call and will remain so the most stable in terms of economics, markets of Europe as our own markets. We obviously still run a proven multi hub model with our premium were carriers at its core. We will carry on with complementing our hub business with leisure travel brands like billings and EDELWEISS in Switzerland, and it's still true that our service companies are contributing to the strategic value of the group. But although the corona crisis may change our industry these days, there are values and beliefs that will endure beyond the crisis. And one principle that we had often followed with deep conviction is, as you well know, balance. And only if we take the interest of our customers, our employees and our shareholders equally to account we will continue to be successful in the long term. And this conviction applies in my personal view beyond Corona and it remains and did remain our compass even in these very difficult phases we have been through. The stabilization package agreed with the German government for us is a basis for sustainable future. At the same time, it's a huge debt package on our back to be paid back within only a few years, including its interest. And in that sense, the package becomes an accelerator for us to make this company Lufthansa more cost efficient, leaner, and faster and more cash flow oriented. And I want to be honest, has been tough to accept the Lulufthansa group will not be able to overcome this crisis on its own. Despite our solid financial position before the crisis, and a tremendous reaction of the crisis teams in all parts of the organization since the global spread of the virus. We were fast to give you a few examples in cutting our capacity in order to not operate loss making flights, We grounded the vast majority of our fleet within just weeks and we reduced a third of our fixed costs and postponed around half of our investments planned for the year 2020. We have done our utmost to mitigate the effect of a crisis that hit us without any fault of our own. And let me, therefore, express my gratitude to the states the governments of Germany, Switzerland, Austria and Belgium. They let no doubts on the economic value and the importance of their home care us. A lot of work has been done in several governmental departments and administrations of these countries. There's still a lot of work ahead of us. So a sincere thank you to all the people within the government and of course, in our companies who have contributed on the financial stabilization of the Lufthansa Group in the last weeks. The stabilization package negotiated with the economic stabilization fund in Germany in short WSF totals 1,000,000,000 includes different modules of equity, equity like participations and alone. Negotiations have been wrong and intense. However, the package is the best possible result for our shareholders, for our employees and for our customers. The package and only with this package, we will ensure the growing concern and viability of the group for the times of the crisis. It preserves Lufthansa's integrity as an integrated airline group. It includes precise agreements, which in sure that the state will be able to exit once we have paid back the silent participations and it secures the necessary strategic and operational flexibility of the Lufthansa Group, ensuring that this company is sufficiently competitive and financially strong to tackle the challenges ahead. And we are therefore confident that the measures will receive the necessary majority at the extraordinary general which will be holding on the 25th June. Maybe allow me to add a personal comment here. Surely before Corona a 20% government stake was nowhere in our plants, but still we're now looking at this stake to be a reality soon We are still having a smaller government share than all 3 of our major competitors, which, as you know, are Air France, KLM, IAG, and Turkish Airlines. So in a way, the level of field is there again. The stabilization package secures our solvency. At the same time, it increases the need to restructure our business. Yes, it gives us the necessary time to get through this, but it's no alternative for deep restructuring as one or the other might think. This view was also shared by the Supervisory Board when they approved the stabilization package just this Monday. We need to repay the additional debt as well as asylum participation as soon as possible as interest rates and coupons will raise over time, billion in total plus interest. In total, will carry an annual additional burden of more than EUR 1,000,000,000 when summing up interest and coupon repayments as well as redemptions. It becomes obvious that in light of this additional burden, we must not limit our thinking. We will turn every stone in the company never waste a good crisis with a relentless focus on the generation of cash flow to repay the stabilization package as quickly as possible. With this In other words, we will have to look into active portfolio management. This could mean the selective divestiture of non core businesses and assets once markets have picked up. We will start with a sale of international partners our catering unit LNG, which, as you know, has been put on hold for the moment. 2nd and probably most importantly, We will have to go through a significant operational restructuring. We must adjust the group size and structure to the new normal That means an environment in which demand will remain depressed for years, especially in our key segment corporate travel. Compared to pre crisis levels, we expect our fleet to be around 300 aircrafts smaller in the year of 2021, around 200 aircrafts smaller in 22 and to be still around 100 aircrafts smaller in 23 and beyond. However, we target capacity to reach free crisis levels with 100 aircraft less. This obviously can only be cheap with the higher productivity of our fleet, which is key in reducing unit costs. We won't be able to overcome this challenge by the usual means of small sized productivity improvements and just incremental savings. So we will meet again with our unions to talk about Adears how we jointly reach substantial progress in productivity and cost savings even before we approach the AGM at the end of the month. Let me be clear, we want to await layoffs as much as we can to adjust the size of the organization to a business which has become much smaller. But however, this can only work out with smart and creative solutions to be found and agreed with our labor unions very soon. Thirdly, we require and expect contributions from all stakeholders. This is not a lufthansa crisis, but an industry and global economic crisis. We lead a new cooperative approach with airports, air navigation service providers, OEMs and other suppliers with a goal of achieving significant cost savings. Let me give you The impact of this crisis on the global economy and in particular, on the aviation industry will undoubtedly stay for a long time. However, the worst in terms of traffic decline with almost a complete rounding of our fleet is at least now behind us. Now we are starting to rebuild our network again. We do it literally root by root as the word is opening up only step by step. Countries have begun to relax entry restrictions or have begun to relax travel bans, as just Germany did a few hours ago. People in Europe and other parts of the world finally do make plans for summer holidays and consider visiting friends and relative again. Demand of course continues to be far below below pre crisis levels. And current bookings are coming in either on an extremely short term or a rather rather long term basis. We can see a stable and continuous improvement though, but is still on a rather small scale. When it comes to our fleet and network strategy, during the restart phase, we follow clear principles. Our aim is to serve many destinations using smaller aircraft and operate lower frequency patterns initially. We primarily focus on expanding the width of our network at the same time minimizing our commercial risks. Once the network is sufficiently wide, we will concentrate on serving high demand markets by reintroducing additional frequencies. In June, lufthansa swiss Eurowings are back in the market by offering over 2000 weekly flights to more than 130 destinations. Least considered worldwide. This represents a significant expansion compared to the minimum flight plan of the recent weeks. Austrian Airlines And Brussels Airlines will resume operations in around 2 weeks from now. In autumn and winter, we expect to operate at levels of around 40% of our regular capacity in the 4th quarter. But we will be able to serve 70 percent of our plants in the continental destinations and 90% of our continental destinations by the month of September. This is, of course, all assumption based. We'll adjust our flight schedule along actual demands and iterations. And the flexibility of our fleet and our multi hub systems are obviously allowing us to show great response here to market demands. Ladies and gentlemen, in every crisis, there's all sort of opportunity. And as the group's management's teams, we are doing a lot more to make Lufthansa emerging faster, leaner and even more competitive from this crisis. And therefore, ready to even foster our leading position in Europe. And with that, we're now looking forward to your questions. Call the first question please. First question comes from the line of Dania Riscoe with Bernstein Research. Your question, please. Gentlemen, good afternoon. First of all, I hope everybody's healthy and well. Three questions, if I may. Retained the EUR 9,000,000,000 within three years, it's quite a steep order. Could you quantify in broad terms? How, kind of which proportion of that you expect to achieve from kind of the structural restructuring, the improvement, kind of improving operating cash flows. Secondly, the sale of assets, be it subsidies or aircraft or leasebacks? And possibly thirdly, kind of unsecured funding, either on the debt or additional equity measures and kind of when that would lead you back to previous net debt EBITDA levels kind of roughly. Secondly, maybe a bit more on the restructuring and the cash flow potential for that, please. Your sleep plan for 'twenty one is down roughly 40%. Is that an indication for your ambition in the operational restructuring? It seems you're not getting back to previous levels until 'twenty three So there must kind of be a discussion on how to resize the organization and kind of what are the targets you're walking into the union negotiations with? And then lastly, kind of there reportedly are some more restrictions on the bailout package. Could you comment on what the restrictions are, or concessions related to the bailout, both with the VSF and the EU Commission. Thanks. Alastair, good to see. On your first question, it's obviously too early. We have this ambitious payback plan. And as you well know, for the details, there is flexibility if we need it, but which share will be done in the very elements you mentioned, I think it's too early to say. And of course, it will be optimized along the way. Important thing is that we have all three modules available to us. Just think about our uncovered assets in the fleet of Tier 10,000,000,000, think of the various entities we own. Other airline groups don't. So I think there's lots of room to optimize along the way. When it comes to enter the union's negotiations, For me, there's 3 beliefs. One is we have to share our work. The, obviously, as you quoted, less work among the smaller fleet to be operated among more people by everybody working less and of course, making less money, which is what I call innovative part time models. If these can be achieved, the more these can be achieved, the more people we can keep on board, the less we can achieve this, the more people have to leave. Second, I think we'll need to do that fast. We want to show some first results before the AGM or the additional general meeting end of the month. And thirdly, we will not give any concessions in terms that one group is optimizing itself on behalf of another group in the company, be it abroad or domestically. And then what's the 3rd question, Dennis? Restriction bailout. Okay. The restrictions on the bailout are the ones which are part of the European, temporary framework or the German so called Wershoft Wilsfonds form, which means there's no dividends while you have not paid back 75 percent, there's no very no bonus payments to the staff and the management, while we are enjoying the stabilization elements and there is a ban on acquisitions of more than 10% unless we have paid back 75% of the money. And there's a typical things like, we need to continue to improve our CO2 footprint, which we were doing anyway. And as you well know, there's basically no execution of the voting rights of the fund in our AGM. Also, there's 2 additional seats or not two seats on the supervisor board where we can make proposals for the government has the right to refuse our proposals. Thanks. Just to follow-up there, kind of along the discussions of the past couple of weeks, there's sometimes surface to comment around being a good customer to Airbus, similarly, what was kind of discussed at the Air France table. Did any of that wind up in the final agreement? No, we are good customer of Allot, we are good customer of Boeing, we are good customer of Embraer, OEMs love us because we buy every airplane. That was the insider joke. You know that decades of relationships to the OEMs we will continue hopefully to have decades of relationship. There was a moment where there were some ideas, but we have been able to negotiate those way now it's a turbine there that there will be a maximum of 80 aircrafts entering the fleet. And these aircrafts obviously need to improve the environmental footprint but there's no mentioning from which OEM they have to come from. And we have ordered, as you know, with Boeing and with Airbus. And these relationships with Airbus are going close. So keep all the comments you read in the paper selling. Next question is from the line of Neil Glen with Credit Suisse. Good afternoon, everybody. If I could also ask 3, please. The first one, Carson, you mentioned a new cooperative approach, which the value chain, which is certainly something we've been, thoughtful about. I guess you expect airport and ATV tariffs to be reset, but interested if that is the case, but also how do you think about employment and the scope for perhaps some of your employees to even find employment at other state controlled value chain players, tied to that. Can you frame at this point, early as it is how do you think about the role that your hopes play relative to the decentralized traffic in Germany? I guess ordinarily, one might expect Eurowings as a lower cost platform to play a bigger role at Frankfurt and Munich. So interested to understand whether you think fit to do that and, whether the hope is gaining importance as part of this restructuring plan? And then the third question, I think with Thorsten talked about the corporate traffic relevance and about 50% of your passenger revenues per last year's Capital Markets Day, Obviously, there are major questions about what proportion of corporate demand may well be permanently lost. And again, I know it's early, but would love to understand how you go about assessing that with some of your key corporates, if you can. Yes, thanks, Neil. In the value chain, obviously, you know, our view, which we probably share with every European airline that there's in the value chain, not enough profit for airlines, but too much profit for others. I think the most of many of these in the value chain are government owned to a high degree. So I would expect that governments will try to enhance several in their various airports and areas So I think there will be some support looking forward to. When it comes to the shrinking volume of those, obviously, that answers your second question, is there going to be additional job for people who have to be laid off from Lufthansa, probably very limited because I think we're looking at a shrinking aviation industry in total. And in Germany, in particular, the unemployment as you well know is very low. So I think even with the recession we're heading for, might be easier to find a job here than in some other parts of the world, but over the whole, I think we'll be looking at shrinking business in many, many parts of the economy. Hub's with Eurowings. As you know, our policy hasn't changed. We have a multi brand approach, multi production platform approach. We always use the best platform for the market. We have been operating 3 30s out of Frankfurt and Munich before Corona hit us. We're probably looking at expanding those to few more aircraft. We're looking at short range aircraft already operating in Munich. We might see them in Frankfurt as well, whatever the market, including competitors' behavior, allow us to do in a profitable way. Corporate travel indeed, I think we're all looking at companies in cost saving mode. We're looking at a smaller economic environment around the world most likely, but as you also know, we have been shifting from corporate towards leisure travel for some years now. Look at the configuration of our aircraft, smaller business classes, sometimes 1st class being taken out optimize profitability. So I think we are well set for that trend and probably will continue. Great. Thank you. The next question is from the line of Stephen Furlong with Stavy. Your question, please. Good afternoon, everyone. Just three quick ones. Carsten, I was just interested looking longer term, I assume, I mean, as the annual report states that, you'd like to safeguard the current investment grade rating for the long term. So I assume that the long term goal would still be to be back at some stage, this decade or in the middle of the decade, that and freight. The second thing I noticed, this might come again about in 2010, just looking down a couple of years down the road. You say you'd be a 100 aircraft smaller in 2023. So, I mean, do you think, Eurowings, I mean, it's too big for purpose. This was always maybe a question post the Air Berlin acquisition. I know it serves a role, but it's a too big. And then, just a final thing, maybe just comment about the use Amiton or the slot pair giveaway, the 24 slots at Munich and Frankfurt. How do you feel about that? Thank you. When it comes to having an investment grade rating, I think we have been enjoying investment grade rating for many, many years, and we're looking to get it back as soon possible. I cannot give you a year or a timeframe on that. And we all know this industry is looking at to uncertainty. And we're just positioning ourselves in the very, very best way. And maybe I didn't mention it often enough in my opening remarks. Flexibility is going to be key. In many ways and whatever allows us to get back to the investment grid rating, we will be happy to do so. The 100 aircrafts we are roughly estimating to be smaller, than you refer to Eurowings. Eurowings already is now looking at a target fleet between only 90 and 100 aircraft. And we came from a much higher number before the crisis, as you know, after the Air Berlin acquisition. So probably if you take that as a starting point, Eurowings shrinks to the highest degree, but of course, we have to take the Brussels Airlines change of strategy in there. So in the end, it's about profitable growth and we will right size our business according to their profitability. When it comes to Frankfurt, you know the ruling for aircraft slots equivalents in Frankfurt 4 in Munich, they can go to new competitors initially only. And of course, we will behave as you behave, but new competitor starts to compete with you. And competitors have made experience with competing with us, and maybe new ones will make an experience to compete with us. And they have to be based in Frankfurt. So it's not only slot optimization of those who already operate here, it's only equivalents for aircraft which are based in those 2 airports. Did that answer your question? Next question is from the line of James Holland with Exane BNP. Hi. Good afternoon. Few for me, please. First of all, in the aircraft financing market, you said it was basically dead. Is is that, opening up? And with regards to your comments about selling assets, are we categorically moving away from a virtually fully owned fleet and what might you expect the owned versus the least fleet percentage to be by 2023? Secondly, following up from Neil's question, would you be pushing very aggressively for tariffs to come down in Frankfurt, in 2021. Obviously, there's the annual negotiation And then finally, on, cash burn, would you expect cash burns to be actually higher in Q3, than it is currently given your operating, I think 40% of your capacity. And obviously, we'll also come back around that. Thank you. Well, when it comes to the Agfa financing market, who knows? Right now, obviously, it's a bad time to finance aircraft, which is the reason why we have not done it significantly over the last weeks would have been another way to raise capital, but we just believe that the terms are right. So we definitely will be moving away from almost 100% ownership in the next year. So I think every aircraft will be accepting over the last 3 years will basically either be leased or be going into sale and leaseback within a day. Once you receive it because obviously the cash flow is needed for other means now, including the payback. The market will drive our exact number of aircraft to be sold and laid these back. So, any of you interested in aircraft deals, call me. I have about 700 available for you of every size. And depending on how many of you call me, we'll make sure that enough aircraft to be sold in leaseback if the terms are right. We are now in a comfortable position that we don't have to do this as fire sales, which is why the billion is a number which gives us room to optimize our business, including room to optimize our finance structure. And the cash burn definitely has reached its peak in April when I made those statements about the 1,000,000 per hour, which surely was understood by every staff member in Lufthansa, which was the intention in every journalist in Germany as well, but we're reducing it now also by the way that quite high element of fuel hedging in there, which is going down on month by month, but also with our cost saving, costs where we're optimizing our short time patterns for our staff and many other means. And we're increasing our number of aircraft operating, we only operate with a cash positive flight. So all these combined, you will see that the cash burn rate significantly comes down. The airport piece in Frankfurt are always too high. They will always be too high. They were always too high. Let me start with that one. But indeed, I think also airports are looking for more depressed market and they're more competing with each other, at least the hub airports will be competing more for transfer traffic. There will be resources not only into 5 Lufthansa hubs, but also in Paris, London, Amsterdam. So I would think if we all believe in markets, market will also work on airport fees. Yes. Can I just follow-up on the fleet? I think just clarifying something you said earlier. I think you've got just shy of 200 aircraft for delivery. And I think you said you're taking a maximum of 80. Can you just let me know if I'm what I should be thinking? Yes. The number of 80 is right. We'll be receiving even less than 80 aircraft over the next years until the end 23. So we are significantly pushing back aircraft with Boeing and Airbus. The next question is from the line of Moneta Khayani with MoFA. Your question please. Hi. Two questions, please. 1st, on your fuel hitting strategy, given the experience this year and the fuel hitting losses, would you consider changing your strategy going forward? And then secondly, on the seniority of the silent participation, is it junior peripassu to the existing debt and especially the hybrid. And do you intend called the hybrid next year. So if you could just help us understand the priority of payments on the silent participation over the other debt. I'll start on the fuel hedging strategy. You know, the strategy prevailing at the European airline industry at R&D not effective in a crisis, such as the one at the moment. But obviously, you know, who could have expected this So we indeed consider adjusting our long term hedging strategy to increase our downside risk but to be honest, we haven't made a decision yet. Then this is William to your second question, the silent participation 1 is, as you rightly mentioned, the hybrid instrument, it is senior to equity. But it, it is therefore junior to the KFW loan. Now on the hybrid, the second silent participation, that one again is senior to the silent participation 1, as it is a debt instrument and structured as a debt moment. Next question is from the line of Jarrod Castle with UBS. Thank you, and good afternoon. 3 as well, please. You gave a CapEx number for this year of 1,000,000,000 or less. And you obviously answered the question around pushing back fleet delivery. So just in terms of magnitude, any color how we should think about, 'twenty one and 'twenty two? Secondly, just coming back to the slots that you have to give up, were the exact slots specified, or do you have any control over which slots you actually give up? And then just looking again into 'twenty one, I mean, should we be thinking of capacity being 50% or less, just given that 300 planes aren't coming back, etcetera? Hello. Yeah, good afternoon. The CapEx numbers, I will hand over to Thorsten in a minute, because we are only rough, of course, estimates on those. On slots, let me go to that. The ruling which we have agreed on as a compromise is that our competitors first need to apply for regular slot distribution methods through the slot coordinators. If they cannot obtain a slot there, they can ask for a slot according to their wishes, and we have to fulfill that requirement for a long range slot within 60 minutes each way for a short range slot within 20 minutes each way. And these slots have to be operated on top of slots, which they already operate in case it's somebody who already has an operation. So this is our, whatever you want to call it, impact put on the slot selection process or the other way around the requirement for the other party. And, the last question was on aircraft. The 300 aircraft on the ground next year you covered, but you want this in ASK. Is that how I understood your question? Yes, just wondering how much capacity you think will fly next year? Well, it's difficult to say because it would depend on U. S. Opening up, when is it opening up I would see us going into 2016, maybe twothree. Probably next year in the peak, of course, where we're talking. So we talk about September, maybe, or June, which is the U. S. Was as huge as you were now, not quite as huge as for IG, but almost half of our white bodies operate on the North Atlantic alone, which in the U. S, Canada and Europe. So a lot will depend on that. If they continue to burn their cities, it might be less. Okay, Carlson. Thanks. On the CapEx, as I said, this year, we plan $1,500,000,000 in total of which we, as I told you also, have already consumed $770,000,000 in Q1, so a little bit more than half of it. So, from April to December, another $750,000,000 approximately. And for the next year, you should expect less than for the full year 2020. And then gradually growing to the numbers you have seen before the crisis until 2024. Okay. Thanks very much The next question is from the line of Caroline Dors with Morgan Stanley. First question is on the sale of noncore. You used to talk about potentially being open to a minority stake disposal of the of the MRO business. Has this changed and it could consider selling? The entire business and will be classified as the for non core. My second question is if you could give us a bit more color on the 15% total capacity that is back online? What kind of load factors are you seeing? And, and, and, sir, as you go through the year, and some of the airlines have been saying that they are going to stimulate demand through price. Is your what is your strategy? Just to retrieve and focus on profitable routes. So you're going to, wanted to compete for share in your home markets. Talan, yeah, we never compete for market share. We always compete for money and profitably and in types like this even more than. So market share is not, decisive KPI in Lufthansa. It's one which we enjoy where we have it, but we steer the company buy it. The same is true for load factor. We Spanish by revenue in Lufthansa, revenue per flight RASK. So, obviously, with no booking patterns being available, our yield management is in a very difficult situation. Like everybody, We see short term bookings for the next 3 to 7 days. Then we have a gap of a few weeks. Then we have long term bookings for the fall when things are supposed to be back to more normal patterns. So, I cannot give you any load factors at this point. We are increased the capacity on the fuel routes already because the load factors have been too high to optimize the yield management. So we bring bigger aircraft into the system. You know, we have anything between ninety seats and 500. So we play with that optimization tool. MRO looks at the Tae Sik, as you know, it's part of our core. This is close to our hearts. So we will not give that up easily at all. We have been talking about a partial IPO before Corona. Any partnering ideas for parts of the business. As you well know, there's different divisions in the business in engines. We already basically have 100% partnering In others, we have 100% on our own. So there's no yes or no answer on this one. But again, the market at this point of time is the wrong one to do any disbursement. And it's good to have that value within the company and the options which we mentioned before Corona might be the options we have after Corona. Alright, sir. We're ready for the next question. Next question is from the line of Mike Scholes with Commerzbank. Your question please. Hi, good afternoon. A few questions, I would like, first of all, did I understand it correctly that you wanted it the 29 capacity, with 100 aircrafts less or did I misunderstand that? The second question, in terms of your labor contracts, I mean, you have quite expensive particularly with Lufthansa mainland quite expensive union contracts. Did you see there any progress or any likely progress that you, can get to better competitive contracts, particularly also keeping in mind that a lot of key competitors can renegotiate their contracts or have a little bit lesser labor laws, which allows them to make more pressure on the union. I think that's Indeed, our estimate is that in 23, which we consider the 1st year of the new normal, we'll be able to operate roughly the same capacity as in 2019 with more or less 100 aircraft less. Why? Because we'll be selling some smaller aircraft, not necessarily smaller aircraft, but some less dense configured aircraft will be receiving aircraft with higher seats per aircraft numbers, 777,350s replacing aircraft with less seats, 320s in a higher density configuration replacing old 320s with less seats. So all that plus higher productivity plus probably a little higher share of Eurowings, which tend to have a higher productivity, will give us more or less the same capacity with only with 12% as aircraft in numbers. In union negotiations, obviously, unions understand not only in Germany, also in Austria and Brussels, in Italy, that the company is shrinking and the number of people to be laid off will depend on their flexibility. Be it on part time, be it on labor cost per se. So we're in the middle of that negotiation, but it's obvious when you shrink a company, usually the unions are able to compromise with you, which are much less when you grow a company, at least in our environment. So I would answer your question with a clear yes. Okay. Can you maybe also stretch why you needed 1,000,000,000 and couldn't have survived, was it like, let's say, 1,000,000,000 package? Yeah, given that you're already at 4,000,000,000 liquidity? Well, you know, we are Germans, we are borrowing. We live in love Stacy. So we didn't want to go to the edge of what we need. We want to make sure we are among the top 3 airlines in terms of turnover in the we, I think we were able to convince the German government that this is not about just survival. This is about maintaining a global leading position, which some German companies do, but some are also looking at risks at. So I think the German government was highly interested have one company, among others, don't get me wrong, which is playing the global top league and allow it to continue to play in the global top league. This I think the 9,000,000 will ensure. And if you look at similar sized airlines in the U. S, American Delta United or our friends in Paris and Amsterdam who are a little smaller, even received CHF 11,000,000,000 the billion very much is in line with the size of the company. So it's an extraordinary number. We believe it's enough to keep us in the public. And as I said, we now are 20% government owned, but it's still less than all three European competitors have as a government share. I think IAG has 25. France KLM has 26, I think, and Turkish, I don't even know. So Again, it was not my plan to be government partly owned, but compared to all the 3 biggest competitors, we still have a lower government share than the other 3 big ones. We are fighting with Okay. Thanks. The next question is from the line of Johannes Braun Mainfreight to your question, please. Yes, thank you. Two questions for me. Firstly, you earlier mentioned you expect airport fees to decline because you expect them to follow market logic. Guess the problem with that fear is that normally airport fees do not follow market logic, as airports are regulated. So quite to the contrary, fees can increase if volumes are down if regulation is followed strictly. So why do you think your airports will still lower the fees? And then secondly, I guess, one for Thorsten, free cash flow was quite positive in Q1. You mentioned lower CapEx, but there was also some million positive impact in trade working cap, which is quite counterintuitive in the current situation. So why was that? Yes, let me start with the first question and the second one will be answered by Thorsten. I would love to hear what you said about airport fees and I could spend an hour with you on that one, but I do believe we'll see some they look at the 5 hubs within Lufthansa alone. Only the internal competition among those 5 hubs, which we have been at able to optimize over the last years will increase because the passenger numbers are smaller. There's extra aircraft on the ground in every of our hubs. And my network people will now, of course, optimize that including cost elements. So I think the optimization game of all multi hub in which we believe is a serious ASP because the 5 hubs are so close to each other that many flows, the majority of traffic flows can be done by any of those 5 with some exceptions like Africa and so on. I think that optimization is able for us to put pressure on airports we maybe have not seen before. And the other way around, we don't need all the airport capacity if we don't get the right concessions might put traffic flows via other hubs where there's extra capacity available, including staff, including aircraft, including slots you name, So I think we'll see some of that definitely moving the right direction. Okay. On the working capital that you already mentioned, it's on one side is the reduction of receivables which we immediately introduced by starting negotiations with our suppliers, especially on payment terms. And a second driver is the non recurrence of the prior year's tax repayments. Or sorry, tax payments, not repayments, tax payments. The next question is from the line of Andrew Lundberg with HSBC. Your question please. And we continue Andrew, don't be so shy. Sharp as ever. The business is going to be smaller for some time. If you think about how hubs work, They're a very powerful scale economics, and as businesses get smaller, you get fewer connections, and they work a lot less well. So whilst I appreciate you wanna be a multi hub system, why when there's such a reduction in capacity? Is it a given, or why is it logical that you continue to operate 5 hubs? Because every hub that gets smaller gets less from connectivity. Related to that, perhaps, can you update us with the status of the aid negotiations in Belgium and in Austria. And finally, as a traditional third question, can you tell us what the liquidity is today And when does that 9,000,000,000 come in? Does it all have to wait till the AGM or has some trickled in through the backdoor already? Thanks. Yeah, Andrew. You surely mentioned one side of the equation. Hops get smaller when volumes get smaller. But don't forget hubs start to offer or serve, not offer, serve new O and Ds when overall point to point because it comes down. I know where people have seen O and Ds via our Frankfurt hub, they have not seen in years. Because suddenly there's a demand for a Goldenburg Lisbon, which probably is served in good times nonstop, I don't know, once a day, now suddenly everybody going from gothenburg in Sweden to Lisbon and in Portugal has to go by a hub and then the hub system kicks in. I think the logic works one way, the larger the hub, the higher the scale, sorry, scale advantages, but it works the other way around. The smaller traffic volumes, the more there are certain O and Ds not being served required to go by up. So far, I would think we have seen the more positive side of this, at least, and thankful over the last weeks, which of course are not normal weeks. And of course, when we work on scale, to be honest, our largest aircraft to 380, which will be grounded partly forever and partly at least for a couple of years, has not been the most efficient aircraft. So some of the scale effects you're referring to doesn't work anymore with modern aircraft. Today, we are opening up Munich Los Angeles with a 350, which has been usually served by a 380. The unit costs are higher on the 380 are now lower with the 350 we are operating as of today. So some of that logic, long term logic has been reversed by aircraft technology, which as we all know, is why 3 80s don't work anymore that well. The 5 hubs create internal competition. They give us a great market share in any of the 5 hubs. And of course, there are certain focus elements like, for example, Eastern Europe, all of Vienna or Africa out of Brussels. But, that hub system, we do believe, start kicking in at a certain size. Don't get me wrong right now. We're only operating 3 hubs for that reason you are mentioning. We only start to operate hub number 45 in 2 weeks. And even that is mainly on an O and D basis, initially, before we really go into hub scales. The AGM indeed is a day which would trigger the transfer of the money from the German government. I think the liquidity we gave you at our annual was around 4,000,000,000. You more or less know what we are losing in terms of cash flow per hour. At the same time, we have been able to do some refinancing. So the AGM we're looking to, I think, with some optimism. That will be early enough to service. And of course, when we talk about liquidity, we never talk about actual we talk about the so called legal liquidity, which means we have less funds due than money on the bank. Otherwise, we wouldn't have any problem at all with billions on the cash side. Yes, thank you very much. Can you say what the status is of the talks with the Belgian and Austrian government? Yes. I think I would say in Austria, we're in the final part of negotiations. I actually just got corona test being done this morning to be able to see the chancellor tomorrow. So and that corona test hurts me or no. So I will help assist on plastic the deal with him tomorrow after I went through that pain. And Brussels is an earlier stage. So we'll need a little bit more time there. The higher the money, the faster it goes, it seems like. So Brussels is a little bit more complicated. And probably that we don't see a solution this week there. Austria and positive, we could see a solution this week. Thank you. Yes. All right. Thank you very much. And this concludes the first part of our Q and A sessions. As I said, the beginning of the call, we'll have an additional Q and A session now for the journalists who have also been on the call. For the purpose of this Q and A session, we'll switch to a German language. And I'll hand over to Andreas Bartle, who will take over. Of course, the Amazon investors are also invited to stay on the call as you prefer, Andreas? Yes, here in dance, Dennis. Good afternoon. Actually, the goal is a smart and cheap as we are in a call to the analyst team. That's the one in median combination. We have a feedback of this of the Zio and Autonomous as well by Hinteyhar Khan. Dear, but on Taliet's slide of the account on Ambrad on the Storton task. It was invited and here, and basins on field of armed and 15 field of armed civil. The market stands for I'm uniquely powers it as the operator in normal declared. This is a fresh height in current city fagron on certain case of direct loss. Flataroff on Aviation Week Network. Then we'll be at Valda Martin with Alex and Vodafone at Hickman on time slot out and now from my Permian. Hello, Hermann? Yes, Hikman. Hello. We landed a rational Zeatomit as the Lufthansa kind of dividend. It's I can't, which is calendar, yeah, CNC data, that's Ewindsville Beta and a dividend. Because we have the active target and decided target. The analyst had crashes on NASHCash deposits on the frac terms, the exact as well this year. Miljardan to Taifangdelet and Rafo, in this and here, Milljardan, managed for some assisted growth, Harpani at the Einskomarsmjardan, Zalomanser tickets, minor frac is, Mansfield from the in flu testing, that is an asylum the direct and Rux Saloonham build as a CSH Leppinkade, Fonavazosiran. It's Mikaelas and Ordaneesh, Vianzidar Xtra tickets, the Fund Bin Laden Vemann. It's the worst vehicle last Monday in but that's Yes, Vivi Dender is a recent technicianist at work, then it's just duplicates you might feel for market, that might be a part of that issue. So what are the fee and quantity plus SDR and then to reduce your dividend in mortgages. You might think that's our owner co owner of an app. If you get my friend, we talked about the inward deal of ticket refunds. It's coming out here in industrial. That's not so long term. This is minimal. Percent. That's under the tickets you have funded there. And yet since the moment we're going to have a flood plan and then gain thousands of fluid and gains from refund. Marl, it's for Pazagito, proof Luke, divisor, the shaft kind call center, kind in slasher. The answer, I guess, the shaft that in there, we said, Fier Wachondier Resorts And Dolly here in refund and Kun as a Handy resource in the ROCA Fund as Avimalrogate Oxnella, he's right over to you. I'll provide contact Nish. To a lot about the client's host Alain and Doctor. Vazawa's bank holding with E. M. Kuhn, I would like to answer one's own limit. Alain is being given with Amergauss showing on the SOURCA 9. Middle East, it's dry, in the Forty area, airline, Orange, but all in Hamburg Sandler should have put up. That's what we said. Conba Lufthansa Hamilash and Langer, the high stress business class, although it will be good afternoon. That's behind the list of Firestane. The Neuromelia Van Von Vonis Republic, some packet. Bagulized Vasistas desalced package from the Hengals Zalte package in the Arm Ende. Hey, man, as I'm normally done from the Unmed And Highlander in Zumou in Zumou in that ironing, they are not my who's at Swymary Arden. Whereby the Guntheragle is just the ungraded version of the Noren. All the others in line. Okay. Thank you. Hello? Hello. I have this option by the Malison, the hedging that is a, manned this done in profit for the enabling price and then as I said, for the When we had storage planners, these are really limited slots. In terms of see done. Supply. Parkman and the other costs to Boston. Professor Gucci, the MDRs and smel trucks at the I'm in this man. It's a voice mail. It's a voice mail. It's a voice mail. Patents in the Schibtophilic cycle, but up 20,000,000,000,000 is hoping that we're going to stack up the car airlines and double up the roof transfer to the street. Hedging, the adviser hedging, the challenge facility, and I'm going to stop him here and come through quite type Zagering. I believe it's in here by Lufthansa, for those gain in markets respectively. And we are in a declining policy, a guy would have full price state, but if designers get the airlines, Denise Hedgen, can Easter and even more cargo airlines in the attack of near hedging by the cargo mix by Mandas Berlin. Fuel, off price, it's not too many income. It's low cost carrier, any hedging, but you might have to quit the sidecarbons decision ticket type curve on fluke. The airlines, and we'll skip together here on the airline in golf, the any hedged all of this in current or mild, it's it's a shaft behind me. I know that we can't have the omni channel which can of the number. The growth in that's carrier, although the dry goes, that's where I'm heading, IAG, a false car, Ammon, Turkish, hedge and all around brands of WhiteHatune. Slots and Rudiffrag by the Augma Vida files for Stoneword in Litzen Von. We are hardening the rights and slot waiver. They are with the actors being fancy. Kinda asked his 20 second referendum on the slots in Einspaces to hide them. The micro aerial Eastern commands on thereby, 3rd in airlines for Europe, in Brazil that were to lobby in, that's just, of excavated investment in Zama's swine fundage, a bit in Zama Iin's funds is usually a fluke target, some spot save them, free and listen. In an outlier, the outcome is only a sustained game reflect here that sounds kind of side from the game. Ended the slot waivers. But in my day slot waiver ended, then we asked on the Tabiale and Vonoye with the Weber, then ask the Anatiale darthira.com. But I was going to make a trigger for NIM typhoon when it was what we were ended. We put more design in 1 of N5 because that's not my influence on my iron plantation flights to go transfancy. The vehicle fluke sawiger and Tyler fluke saw in a task, gated house, downgraded twice even for fear. The Schloffen, you have to gain a whole lump sum part out. We are in deep storage, satisfied as of Yara as a part of the under them in Spanish, part of fluke circles that a niche Netzerocomb was done to Iceland on the ebits of formula. I assume that fluke we're up to give in this via Ava and Panroyal coming out of that soon in Zuma, Umaggett Marghertz since Santander Vinegar Twenty client transition. Well, if I call for $148,000,000 for expenses, I'll come out and start to look at comp. So the DTs looks to be my buyer in there as well. 50 turns off a cow thing, but it really is a cow from a newer team. So it will be either outmost than Kamangoshaneshi that's hard car more than what's no heavy recovery. The next question Yeah. Hello. It's Hatten Neer of Hagen. Some island. Jorgen Von, for Handloman order cost and bank plan is in the 4. They have how, are the, good mind, Dan, for Hindhard Zika Antwarted, does this package the not concrete Avian Carnan, Vazitif reached out to Birong on the personal and gate, Tizal with 10,000 standard. We were capacity at session, Alta, Anarca of White Housean. So, Anan, on her name, Tayan, Othansan, from Airline, Tristan, as a Thrifty consultant, Stellan Weigt. On the Einele, let's say, it was Kapolei. We got no index prices. These insides does we start with SD Finance SIM card behind price digging order is the supports for LMV being image sharpen. Listen Bagherli, yes, in that time, when we are in the help for some long presence, even volume, to understand this, what we can lose on the Escharbate vaccine at Raichtham. On Sobeyskiib Skibsted, but it isn't far long, the sharpening for hermit Porchitz and it's a tariff to plant the war in the arby, the Vinegar volume is under Spatylan, which is Vanish Metawbaiter, Lassen Sumuelson, Lassen Sumuessen, Lassen Sumuessen, Lassen, so this is good in Oftahi, Fotriq describe an answer still in. We have already reached us with Inab, the Wakschaft, Oda Borus copper, Petriga, upshleice needs to last in Britta again, wouldn't, in that hard to find the triplets, the volatility was shiny. Can I see how pozano 2 stim, Maximiliam, and therefore, they had me to me is limited by the Huron Boyn with Winger Motiggy Backshaft, and growth is interested as it gets in east drybulk and for Ancom may get some slightly also on Von Hanvall, Vonapani on cockpits, zwally Fitbecome? The airlines was here at the Maxima, the Zijerheitkenerheem to stimulate action irritable common from Franciscan on that. It's either Anigong with steering of the actual we see the scripts are underwritten by design interoperations that give business to come. Then in their top, Harish Gazzag, he normally had the Buenasigione Pazig, that would see in this owned invite, they are some outstanding comps So then it's better for an outstanding demand. Team, the Rauchner with us, the team, Vascular of it is Rauchner, Azema, and it's where we get from from Iceland complex on top com, the with this underachnett and women were Chinese, Nissan, Melendormelian, for Nederland, to be born with kind of Elf. Our leisure height here with some comfort. So see a few there from the compulsion kind of English because August, then Raton is kind of Zabsec within INA Webex concern, one of the most in the complexity of Rafar. The village in the Astra Global in which field a dry for wounds up there. The women also often the lean vital experience in ZYN or this being by Clari, basically, Rheiniger Williams and then we have not done a spitzen for this year. So the unplanned meter by term decided in the attached to Anil Gorgen Altus of the internal meter by the from here, our whole classic Hounder Fluke Soyiger, Marl Deutschter Direct on Fluke Soy to chef distance. Cockpit, Kavina, EBITDA by then catering on net mechanical, keep saying 1000 on its commercialization of D and ing into the administrative and these Hounder Fluke Towing RBiden plus the EBITDA vital Viteshikode LSK on the IT outside of Florida, plus the exempta administrator only, there's a solution to name Alton Klafar and Wissen in the Pharma Kline I guess. Digna with Saicano in Luzong, which I think is actually up in the flexiqa, we were at in Costa Verden, on the mayor, couldn't unbox them. The mandatory of the Abertis for Taltz. With Taltz at Modela about the customer's significant tour. We are happy of its loss of EBITDA by transformed by video finds try to mitigate it. Now it's time, but even worse than is when we are standing in the movement in right urgently where Ashraf is. The auction house and trucks, the rig is in the Zins, the full way, the Zincunoz is in the end of Stux, Oishengis Tusang, our Displabo and the lettings dot so that was in I know that's wz to it in start, analyze investment grade rating a follow on is the FagerDEX concern, the index concern is still relevant. Charley is Kotsam, who is Nish from Martin here. Okay. The next caller comes from Stephan Bayard from DBR. Yes. Gunkhart from Nida. Hello, Oscar. Some team are liquidity taking the phenolus are coming out of the civil state in the Metair Hekaitan Nusung Farm or any contribution laden. Done, they happen for in front of Tima. Sign, thus, like, then the eigen Kitchen of Uprich, study LSCIA, eigenclich by the end of the good, e for car theft. On some top ones are this long in the Njamba and with 5% per year based partially in diode 4, 10%, 1% is not as pointless. Avaya exclusively, yeah, Tanez Small, x on the Paragas in EpsilonortechuCom, he posted in the in the middle and the largizant of Hidden Cielo's claim unsubstance. And then the tiny indoor hitches fuel hedges, the foreign exchange hedges to the rain, the Mayor foreign exchange, Arturo, Eric Design. Other miss, this is Mayor, as I said, the housekeeping time, I mean, that's hard property targets, Michigan, more than then on the market, for English credit cards, the customer stunt, they can at least run the taste initial Indovant. I'm that's the result of me being on the Casa Harm, I'd see an often and follow on Harm. Refunds, the traditional venture doesn't actually follow on the. We haven't got English from us. A single national authority game. However, this kind of Indian session, Van Rai, which has promo and Zint. So it's on the end for Sri Lanka. But you do find out if I can just listen to the very history and I'm answering this question because I was listening to Hamdi at this game, a hope up to say if I call sticking back and then hopefully closing target. The rest of the world hung the underwriting while they are marketed sites who are more than team up. The arm in my leader in partnership in Fair Plus, it's good to hear. Kamala nervous, Marjan Dermans and Cognantationik in that heart. The force on the Hounde offensive for Carbon 9, Cunningham the force to enter for NANDY process to bring with the entire format and partners to some personnel. Yeah. A little bit under Mangadine in the pipeline under the Allianz Ganesham, the worst Aveni hits Ganesh Allen due to Prakow Street, and it's SSD on the Vever for Vanikram. So then it's because Zenghol in the Thai business, irns, between the south of Tempur, Now that we feared Siki Aran will discuss the walker guns in, Vamper on Zintom Business Broadsstaff, that means that they're stopping us, gain as our Venus 5 is Venus Sphere. Our focus in Yes, Gunther. First bank and then the comment on Martin of if he's Pakeet, even turn off growth of Western Canada. It's only for ARGECI 9,000,000,000, within Pakeet's delivery date, up this year, vastats, order Candan O'Mearna Common. So I think the flopped the C in Gujern's Alek Group, so I get to co style, on the under the latency, Umfeng had an industry name is unconstitutional is the ownership strategy is on Britain Skanskates. And if I certainly hear Einschutes on the latency and the moment is at the site, which Vierke is then So, and restart for Knoll of and in the context was the complex currency first question. Thank you. Yes, Saket Van In Plastics Index. Yes, the other factor, Panamir comp, now in the Guido Festa Festa, first of all, just to see it here in Deutschland, on Rheinpaget Harben, only by the Einpus and our Omen and Arunton, there are and Tyrone Midinhouse Landition, On the floss, it's launched against court when he says, we were named after Carsten Sporter funded retroactive. So we couldn't have an important I said, Avan, actually Grishti in Lafagangheinheitheinheinheinhausenhausmas in Kainsterweiser for Hezba. VAR and we have to give more than that. And Diboschloynigong or in a he's a case in a convening warren and they are against the mission on such a hubert kind of Schanskellersen had and here, assets to follow-up on down. Shonnishma for Hanva, order, manonofan fire sale, Heather Oskinkon, who does Mahan finished. Job my now assistant and decided. All the other sites is there. They have Buddhist Council Accord's mercy that is more in common. That's a very regular that to me. He said, I'll send that to somebody. He didn't. It's like a stupid installation diploma. Yeah, flexibility is probably could the onboard of strengthened platinum and tickets. My adviser, Operdian, we're in the Opermatone, Centralu, in Tiete, and Sandeep Schun, it's something else divided Swine Ditzseeker, the Aguiran published in the right targets of results in Ireland, named Fluglowski, and they asked to include the Indian autostar. It's an armed thing with an artist on a Volchaft, Carnegie in Eamonk, group sequestration of the Cools Hamkamno, Fested In Spain as Muhammad in Spain. This and other in our very healthy sites due to flu car from Cognizant on syringe Cracking in Nair, this flu car from Osterholm. We're seeing that with pass through falloff Tyber, the result was ingot. I listened to the Eric seller, the right hand decisions will stand up to work. And then the Magnus Einstein Fluger get some war hand and the things like that, but often had a nevada list in Buhan with the bottom area. I'm showing the agar that he says war hand it's also for Brinkman's one of one of under Octavathalista of Aaraman's colleague, and she didn't fly that fluke, parallel, kind of the organization here because I'm And as I mentioned, the Allo Vartel is one, but I thought we would have prognosis this payment. Yeah, our team may expect this payment in these debts, this by bringing vehicle parameters of the administration society from Celine. Other than they are at hockey storage as Creshaft, Spalent from 1 colleague and colleague, the 1000 Kuts 50 fluke trigger, I'm with your account on the resources dot gov. This being, especially if it sends the systems on the onion bar, what we don't see is staff on the staff live and good tickets is So we have it as a steam whole funnel if it's same time within the video tab. As well, for Airline Geeks, Spanish, very much, Emma, in their grocery review, for those to be tried and engineer from Geltzer, Ferdin, specifically cutting the total of even after our ARBAR income. I know I and Suga Kazmite Datta in Manoj Eisnhe Eisnhe Eisnhe Eisnhe Eisnhe Eisnhe Eisnhe Eisnhe Eisnhe Eisnhe Eisn't Eisn't currently here until e gens. And I'm the Madama was by Gebraftat. The data number is too rich in the ones in India, Gebraujojung, Kala Muzmendi of Noytrenirum and the impressive mentioned moment in terms of Schneller on the flex Ziegler on the Waverdean. Of that, so it's the only solution, Daphne, where you have seen the ZAMILTAR years' management of a winding up in the Fluke planning and that's too confident in our and too constant in the snitch magnets in Karnataka is flexibility as such. Muli Syngus Mahan, on the teams of Hananha for Arong and Arton Pfizer. Yes, we're handy. Yes, it's better. Yeah, it's good. It's not much. The question. Or the Anglo Zulu on gate. That's correct. Thank you, Max. Yes, Rudi. It's coming up with Mr. Rizha Raisen from B. Gunther Schwerbenbergen. Isn't a financial analyst. Thank you. Thank you. I understand it's in the poverty scenario. I know the acquisition of the sign in. And I'm going to be stating our video questions. Next of on William Vargas from Bluedark, Evofragment. Will your workers from Bloomberg? Your question, please. William, can you hear us? I'm Dushyant, Mr. Clapton, don't we really make the Fager? He makes the Fager comes from Joe Miller Financial Giant here, Fager. Yeah. Hello. On the alfthansa to alf and Einer Globale. Thank you. This being Wijnna Tard with the Munozu Guillaume Imma focus, we kindly look towards Einstein Global Champions Day Global Champions in Deutscheland, Europe, but it's Johan Heitung, mission where we can't be indolent summarized. Otherwise, if you go to unvolverify this, we are on moment event on the glycos nerve patient, we have to have our high limit shots untitled to Ghana Korsa as owns, as far as high standard of time, boosting Omidi's neurodegenerative to become Omidi in that robot and giga vital, which means to come. Yeah. The next two Fager comes from Timo Novak, Evot Telegraph. Yeah. Hello, Susan. Thanks for you. I'm honored to that. The with this 1 Maximal Faxinzi, Vax project Faxinzi for IMS in this fine line, just tracking machine, you know, IFAasted import not entirely tired. On the written. So sale and leaseback, Yandha Gadsden, analyst and shared staff, direct to reach the That's when you drive around. Thank you. Optimization personnel. So that's under that. And with regards, we have no kind of planer. So this is about Vida in this team. It's a group from Istari Institute. It only has to do with the offer leading in Zuma, our recently session. On Woodstar on Taobund on, so if I guess, in Palabon, there will be honor that suit, Taylor, in Italy, it's not as far as the our intercon, Nokana, actor, and clearly, it looks like we went to the east mile of Frankfurt to Nunching Vashan, implying that. And that's 100,000,000,000,000,000 in Fluta, Noren N. E. N. E. N. E. N. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. E. The ARM 37 X busy business, the A for speed up strategy here at D. W. Fosheem, D. W. Fosheem, W. H. W. Fosheem, I've got 2 feet of fluke service of time with a little bit elbows in here during their low period of load. It's Peter from the end of where it is by Narhin Sheem, down with the Switzerland cash out. Zilotsien, our Ofti tool at capacity at Zilotsien. By the cash out in Switzerland, we have a kind sale of leaseback Mahan, our comments like to on, the within Mahamal is our testing, where my children are going to look for gas. And when the oil price of fertilizes to life, 33 canagnois loopside of both cells, one analyst loopside that's out of Norge look is this thing an important system. Said on leasebacks, decks are active for 10 year fruit sorghae on Vanskeenau, designed the run on, Pioten Procentia fruit sorghae run on snish. Jamsi Mounder Dessi Fluke Toyager. The trend is my aim of my impressions right now using external and cough. Does high speed under this, I'll touch it for the Mounder Dessi Marle, Wilcoma, our Zacks, few units, text launches out from Giptic and then are only up on our food target. So sale on leaseback and we can come. 1 of the leaders will proceed, then they are marked as haircuts on when they are marked up with a data and client data in Babida wouldn't open that volatility effects enough. I have a bit more opportunity, but closer, we're looking at the store. I mean, it's kind of a stick to it. That's the type I'm good in these uncertainties, but I'm supplying these high expectations, using these with the ARPA, and it's using construction. I mean, it's Alf Mahindra, our materials now to follow-up with 30 years. And of course, exactly in Latin was the exact time of skipped decline at Wernichon United enough of the master master's dot IAGL. Next, this is Carlos calling from Bloomberg. Hello. Good afternoon to me, yes? Yes, we can hear. Yes, good. And yes, it's just on the progress in payment that I have Kate. Lufthansa Vandy, let's tapayana. I mean, we've seen Ehrlich here on Director as, you know, concurrent and Santander, since introducing craft softphones about there, I've haven't seen HEXO yet, witnessed, we're giving us growth to action at a the Simea. I don't want to add to that. So Nick and that you can in the time undermine on the island of East Laubura, Sri Lanka, Lufthaklir, they are the tailish recovery of the IMC, we are the real estate assurance is in the ASEAL triangle trials of bleeding. Now I'm the bare the portions projector to the ASEAN Gallipo as with the easy hard service or the switch. We're going to unhire mail it. We're right and fully committed. The Amsterdam fraud, but we couldn't be bothered to give him, but sorry, that that, yeah, goes to Hable is field sales final toilet 8, and the problem here in the mines on the answering physician politics, they are in a given shaft for the wounds at Sabbaohang. As I said, it might be minimum to fibrotone by Lufthansa will be for our corner. Yeah. Hello. Good to talk. Temper Intelligence. Hello? As I discussed, Munozi Norsesh on Palazjira, Verizang, no combustion adviser, won't have been as Aht Norsesh while we these are the factors that happened. We received multi capitalization not it for this year. And it's in slot delay up game, isn't described as a app and yet is underwriting for the machine and slots outperformance. As we look at market data, up to 4, daft and that's the above task button. The mid above that list this excavate via the dryer, dosed400 slot weber eglon, will the dryer type on loading now into the slot weber. On the vessel for Maham. If you buy a target, it's here for Tanisho Intrissant. 50 hearts which are in terms of Indian Fortiva for buyers, then we ask Anatayvava to an oil entrance than our Anatayvara of 400. I'd be listening if you're listening to our various slots. Problem with them. And we're done also called a lunch tracker. Our lunch tracker doesn't wear postpaid replacement loop and from their website up by him by coach tracker post transitally newton. On the MRAS, that level is there to 2 comps for MRNIM, that is the last take leisure. We're another rep there, but no more investing in stocks and driving one bite. And that's in the Spahoe on the front, obviously have a front for the Brunchina Raisinger. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] No, I don't know if I have enough to give this uptick of clean my shoes in which metro point present as soon as we're being an Indian flu or an early shift? That would be a good start to make a second. I'm not to finish holding, being very clear in big WZ almost bucket, then start here for the automation under the excavation, you know, much on for that. I mean, it was, ah, I had someone who's going to get the height in half and then tighter from him. This is Timmy Toyer for since 2. The state begins up in that field and field trial also has been in Mucson. That's the alpine fluke soy the placebo laden. We're completely store knee room because that's the rider, Martin and Tima, the Telishakkastorf. So that's what we're the best defense holder, as a client tracker, Martin Gonzalez, client, and Patricia Fluganathari also began a shy of the goal. I should take the strict institution or Leon on Libtruk. I thought it was a PMAC. One copies of from that in the lead of the arthritis coming from David Amazan. That's what we control, like, a must have moved the Galleria and how we're leading it back. Not a fuel soy on the traditional type stuff. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] As car providing carbon, we're truly there on that joint finance when the result of proof tons are for the guidance Algan Tafashim. Yes, Alangar Srivastava, who came in Ireland, that's hardball in Pashwate, Schastier, and really I'm seeing them in this name. And this is the Pribaham, Panam, Bijsugate, that's on prem cushion. I think it's a crucial believer to the airline, the corporal has begun to cater in Mahhen, often came in Islands with us Christian on the, our patient, Landon, the 3 d, regular, and clara, DARfman, that's patients on her name in Europa, about Nava Daggerling. I was lost to where I was going to be out there. Of Malta is Nafta, Mitelicheliguhe Home, Lufthansa, and then Oonsmethane, I talked to Wervlian Malte and a leaf customer with Schriman. Does it show Jimmy Unfair, think vehicle is which visibly take a look from there. Let's move on to Lambda, one of my main parts of multi band meter biter see those terms are also there at Guido And Felipe Salazar in Latin America in Latin America and the reason Bartung's operation that are and coastal under our patient food survey after new calynetir in Marchesa and epidery and Lassen. Thank you. Yes, hello. I'll be hand in ish. I'm good. We're glad to see Nick's and Thiago White again. Targeted, Jim? Yes. Lohan, the last target from yesterday in his as exactly it's fine, Miriam, Mr. The Henrich or the Van Vashank's enrichment of the Maury Milljern, it's the right answers from under Hartley Jan Klobich, Zincankton, Avanisotto Pima Domhinhein, then as the guys see Munozufeminion come on as very and out of that, of 500,000,000, you know, to organ. On some random vendors under arrest network. And from the artwork, we did a common, of vast, of ancient tiredness packets. Is in English place, Ganscorp, Zechsuna is aftermarket, and it's not round up, it's funeral in Permian. And as Alisham Oberan and the camera, I'm the resident in Stavithwaikumad Ryamuiya, and it's Swakamamu. I'm going to retire on the 5th Ligen, currently, organic and I will sign in. When it's unregistered, it's weird. I'm giving up an auditors offering Kais V, said it's ungraded services in Dheerme, Yarden, on faster language question. Okay. Have a lot on the Farfetch. We're leaving, whatever is in here, kind of right around Vartmeldongmea. It's taking into the outlook some kind of rig adults by obviously in a longer session when the from beginning of the buyback, the finance of a feedback when Ganifan in Afan, This was the on for Matt is Vasily means up for Apsheen, but I'm Danfieira of Maximkite.

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