AGM 2020

May 5, 2020

Given the COVID-nineteen pandemic, it is held exclusively in a virtual format without any physical presence of shareholders. This is why I would like to welcome all shareholders and those watching us online. Or our best wishes to you, your families and friends in these testing times. Today's AGM is broadcast in its entirety on our Investor Relations website. Until we start with the question and answer session, the broadcast of the AGM is available to the general public. I would also like to welcome on behalf of the Executive Board, the CEO of the company, Mr. Carsten Schvauer, I'm Doctor. Michelle Nickerman, the Executive Officer for Human Relations, Human Resources And Legal Affairs. The other members of the executive board are watching the online broadcast And some of them are even present in other parts of this building. There are also members of the supervisory board, present, namely Mrs. Christina Biela, the vice chair, Mr. Heather Heine, Mr. Ilya Schulz, Both our members of the steering committee as well as Mr. Stephan Strom, the Chair of the Audit Committee the other members of the supervisory board are also watching this AGM through the online broadcast. The Notary public, Doctor. Kathleen Von Schenk, will take today's minutes. He is also present in this room as you can see. You all know that the COVID-nineteen crisis is having a massive impact board and the supervisory board have been working flat out for weeks to ensure the survival of our company. We are also looking into ways of restarting flight operations after the corona crisis and of making Lufthansa once again a leading player in global aviation. We have difficult times ahead of us, but we will do everything in our power to reach the goals that we have set ourselves. Those goals are the survival of Lufthansa and restarting the company. But we cannot do this on our own. The impact of the crisis are too massive. So that Mr. Schboe will go into more detail on this in his intervention in this speech. The invitation to today's AGM, together with the draft resolutions of the management and all other prescribed, notifications have been published on 9th April 2020 in the Federal Gazette, which means that this AGM has been convened in due form. However, this AGM is still very different from all the others. There's the virtual format, of course. But also the great insecurity offering over us. About how things will continue. Nevertheless, we are trying to safeguard as much as we can of the usual spirit of our AGNs This is why And there is also an electronic possibility to take part in the voting procedures and to send in questions. And also to voice objections. Today's AGM has today's agenda has 9 items. First, let's move on to Item number 1, the presentation of the adopted annual financial statements, the approved consolidated financial statements, the combined managed report for the company and the group, the report of the Supervisory Report and the explanatory report of the executive board on the statements pursuant to sections 290, 89A1315A1 of the German commercial code, each for the financial year 2019. The Supervisory Board had commissioned PricewaterhouseCoopers as auditors. To audit the adopted annual financial statements and the consolidated financial statements as per 31st December 2019, as well as the early warning system on risks. All audit items have received an unqualified opinion. The early warning system on risks has been deemed appropriate to diagnose risks that would endanger the survival of the company. Now, of course, we are trying to do the audit committee, what we have to look at the audit committee reports in the night of the COVID 19, which was not foreseeable back then. A special combined non financial statement in line with the corporate social responsibility guidelines were also audited and has also received an unqualified opinion On 13th March 2020, the audit committee discussed the audit reports together with the auditors and the CFO, the auditors took part in the Meeting of the supervisory board on 18th March 2020, and they reported on their results. The annual financial statements, the approved consolidated financial statements and the special combined non financial statements were Examined by the supervisory board and no objections were raised. The annual financial statements and the consolidated financial statements were approved by the Supervisory Board as recommended by the Audit Committee. This means that the annual financial statements, of Lufthansa Airgear for 2009 are agreed. There was a proposal made by the Executive to suspend dividend payments and to use the net profit for 2019 in the amount of 1,000,000 as a provision, and this proposal was also supported by the supervisory board. Of course, the background for this decision was the dramatic effect that the COVID 19 crisis was having on the aviation industry and on our company. As early as March, we had to reduce our flight schedule by 70% and, of course, things went downhill after that as well. Currently, we are only running around 1% of our of our schedule, compared to the previous year. Of course, there wasn't given this dramatic situation, there was no alternative to the proposal are suspending the payment of the dividend of dividends. And saying that there's no alternate that there's no alternative is not something that I say lightly, I would now like to call on Mr. Ashbo to, give his report on the financial year 2019. Shareholders I would also like to extend a very warm welcome to you for our very worst virtual annual general meeting of Deutsche Luftanza. We are gathered here today at the Lufthans Aviation Center in Frankfurt. Of course, I would have preferred to welcome you all in person at the Yachundat hauler in Frankfurt and to answer your questions in person. However, the COVID 19 crisis still has a firm grip on all of us, and no one can say how much how long the situation will last. Now the video clip that we watched at the beginning still shows the world of Lufthansa before the crisis hit. But currently, we are watching as the world is facing the most severe economic crisis since the 1930s. And of course, again, aviation has disproportionately affected we decided to open our annual general meeting with this clip anyway because it reflects that there is a fascination with our industry and our company, and it also shows where we want to return one day. It shows the goals we are fighting for tirelessly during these challenging times, namely the future of Lufthansa. Global Aviation is currently experiencing its worst crisis. In its history, almost everywhere there are travel restrictions and entry bans. And as a result, our company, your company, shareholders is in a state of emergency. And that is not even a fault of its of its its own. After many tough years of modernization, we recorded the best results and history of our companies, of our company for 3 years in a row. Now all of a sudden, All of our efforts are being annihilated by a single global event. No one could ever have foreseen this outcome. We at Lufthansa, have always faced challenges, be it natural disaster, epidemics, or the consequences of war and terror, crisis management is one of our bread and butter issues. I would like to send out a very special thank you to our teams at Lufthansa who have again worked professionally over the past few weeks. We were one of the first airlines worldwide to quickly reduce our schedule, while at the same time maintaining and even increasing our cargo capacities to maintain the infrastructure. Many years, many of us are working as volunteers, and are also involved in social activities during this crisis. However, that does not change the fact that none of us have ever experienced a crisis that this might have matured before. We are currently facing the greatest challenge of our recent history. We are fighting for the survival of this company and the future of our roughly 130,000 employees at Lufthansa Group. We are doing everything in our power to keep as many of you on board. That does not only not only apply to our employees, but also to our customers and passengers and also to you. The shareholders, your confidence and loyalty are all the more important to us to us during this crisis. Ladies and gentlemen, We are well aware that the excellent results of the past financial year will have to be put on the back burner now. But I would still like to give you a brief summary of the key figures. Despite strong headwinds, our adjusted EBIT stood at €2,000,000,000, This is our key performance indicator for our economic success. We increased our revenue to 1,000,000,000 That is the highest turnover we ever made in our company in the history of our company. We invested more than ever before, 1,000,000,000 The largest part of this sum went into the modernization of our fleet. And as you are aware, the purchase, the acquisition of fuel efficient aircraft, is always also an investment into the protection of our environment. At the same time, we manage to bring our unit costs down, we were also very pleased were, happy with our services. 145,000,000 passengers flew with our airlines last year. That represents yet another record about 350,000 passengers chose to fly with our airlines every single day. At the moment, however, we are only flying about 3000 passengers a day. Now in terms of our flight schedule, our company has gone back in time to where it started in 1955, a decade after the 2nd World War and following a 10 year ban on flights. For 65 years, and through many crises, we built this company on the foundations of our forefathers. We made Lufthansa, the number one in Europe, and an airline that has been among the best in the world for many years. It took less than 65 days to take us back to the level of 65 years ago in terms of air traffic volume. That is extremely bitter, devastating and painful. Nevertheless, We are looking to the future with optimism at Lufthansa. The years invested in modernizing our company are now paying off, and we have proved that our business model is sustainable. We have managed our company well, and thanks to our excellent results, your company was standing on solid on a solid foundation, both financially and structurally when the crisis hit that is now a great help to us but we also know that the future of Lufthansa is currently being decided. And the key question is whether We can avoid bankruptcies with the support of the governments of our 4 home countries. We will need to see how quickly we can recover from the crisis, crisis so that we can start to grow again independently as soon as possible. So in a nutshell, it is about the future and the survival of Lufthansa Group. We have to find 3 faces for our crisis management in this risk you operation first, the grounding phase, an aviation term that refers to the current phase of the crisis in which almost the entire fleet has had to be grounded. 2nd, the restart phase or ramp up phase in which we will slowly start to ramp up operations again and 3rd, the new normal phase That is our working title for the time after the crisis is over. Ladies and gentlemen, Allow me to briefly report on the current situation. In order to protect our passengers and staff, we took action right at the very outset of the corona crisis. We reduced our flight schedules far more swiftly and decisively than our competitors, also in an attempt to cut costs. Many considered these rigorous measures exaggerated at first. No one had any idea how quickly and dramatically the situation would escalate. And that includes us. Now of course, the world, the entire world has become 1 big crisis. Area. There's practically no more international travel going on. About 700 aircraft of in our roughly 7 60 aircraft fleet are currently grounded. We have had to cancel 3000 flights a day, Air Dolomite, Austrian Airlines and Brussels Airlines, already terminated all regular flight operations in March Lufthansa Cityline is the only passenger airline still operating at our Munich hub. So now we are currently operating a skeleton flight schedule until the end of May, and we are going to have to Keep at this in place until further notice. The current schedule was essentially dictated by the return of Europeans from abroad. The current passenger figures at Lufthansa are currently at best at 1% of the previous year's levels. In other words, we have had a 99% decline in passenger figures. Currently, there is only high demand for air cargo, In addition to using the entire cargo fleet, we have also operated 70 cargo flights using passenger aircraft, And, in order to be able to transport more cargo, we have removed the seats from 4 of our A330 aircraft. So they are now a combination of cargo and passenger aircraft. This situation is less pleasing at our other service companies or looking less bright at our other service companies, they have also been hit hard by the crisis. Lufthansa Technik expected workload to decrease by 60% for 2020. The production of meals at LSG has decreased by 95%. A total of 23 facilities have been shut down until further notice worldwide. So the interim economic balance is grim. We have practically no earnings anymore. The costs for staff material rent or fuel hedging, however, remain in place. After 3 record years, we are currently losing about 1000000 of our liquidity reserves per hour in operations alone. Therefore, it has been our top priority since the start of the crisis to reduce costs and to secure liquidity. Currently, the group's liquidity is still above 1,000,000,000, which puts us in a comparatively good position. Now we owe that above all to our successful financing measures, cost reduction and stringent liquidity management. We've had to make tough decisions in order to reduce the loss of our cash in hand. 1 of them affects you, shareholders. Unfortunately, we will not be able to propose a dividend to the annual general meeting for the successful year 2019 that lies behind us. I would like to thank all of those who have already signaled their understanding for this measure to me and my colleagues over the past weeks. Now, of course, this measure alone will not be enough. All stakeholders, all each and everyone is going to have to make a contribution in this crisis that is threatening its existence. The supervisory board, the executive board, and senior management of our company have voluntarily agreed to waive part of the basic remuneration apart from the variable remuneration. At the moment, more than 80,000 staff of Lufthansa Group are, on a government's wage subsidy scheme with reduced working hours Now please believe me when I say that this does not only hurt those affected. It also hits me hard and all of us However, it is an indispensable contribution to securing our liquidity. We are currently topping up the statutory government wage subsidy in Germany up to 90%. However, we will only be able to do so for a short time, and we already engaged in negotiations with our social partners on how we can manage the situation in the long term. We are also asking a lot of our customers Above all patients, most European countries are supporting the temporary voucher solution for cancelled tickets. The EU Commission However, has not yet been able to agree on such a measure. It puts the entire travel industry at risk or it might do so if we are required to immediately reimburse cash in the current phase. In addition to our customers, customer centers and processes are simply not designed for such a multitude of reimbursements. I would like to therefore ask our customers for their understanding. We are also negotiating with aircraft manufacturers with regards to delaying aircraft deliveries because we will not be to return to our old fleet size for the foreseeable future. We're also negotiating with airports, air traffic controllers in the public sector on a fair distribution of costs, specifically by lowering charges and deferring taxes and social security contributions. However, we also know that all of these Contributions combined will not even come close to compensating the lack of income. Our liquidity will continue to fall over the next 3 weeks. Significantly and significantly so. At the same time, we are working together with the airports in Germany and the German air traffic control to maintain a critical infrastructure. That is the only way that we can make important contributions to society and maintain the health and safety of the population. That is what is expected of us, even if it makes little sense from a commercial point of view. We have always assumed responsibility, and we are also doing it now out of conviction. We are glad to help in the current crisis. We are glad to show how valuable our work is and how important Aviation is, just think of the hundreds of repatriation flights. We have flown almost 100,000 people home. 9 special flights were put on from New Zealand alone. We have flown 3500 farm workers to Germany with Eurowings and 100 further flights are planned. We operate in cargo flights to supply hospitals and care facilities with medical personal protective equipment, including 150,000,000 protective masks. We have furthermore really used staff with medical training so that they can go and help in the health care system where they are badly needed. We want to provide help and support wherever possible. We want to be active. It is more important than ever to ramp up help alliance. This is more important than ever to stand with the poorest of the poor facing better misery and despair as a result of corona. Many people no longer have any income at all throughout the world. And how can people abide by hygiene regulations in place where even drinking water is scarce? The current virus presents us with entirely new humanitarian challenges. Thank you to our colleagues who are helping providing support in doing so an amazing job during these challenging times. Ladies and gentlemen, the restart in recovery phase, no one knows as of yet when we will be able to take off again. We expect part of our fleet to spend some on the ground. And we hope that in June, we will be able to ramp up, but it's going to take time. In 2023, We expect global demand to be back because it's going to be on a lower level, and this is new. That is what our current planning and strategies are based on. We do not just want to be better than others during the crisis, we want to be better after the crisis as well. We are also working on structural realignment in order to emerge from this crisis stronger, we are making use of the time to position ourselves competitively for the future. We are planning for with a significantly smaller look than the group, we already decide on the first steps in this direction in April. All of the airlines in the Loflandt Group will be downsized. All the less environmental friendly aircraft will be phased out of the fleet earlier than originally planned, a340 to 600 fleet will be temporarily decommissioned, which is 10 Airbus A380a5 Boeing. 7474510. Airbus 820 will be removed from Eurowings fleet. The on bearing restructuring programs at Austrian and Brussels will be intensified further. Both airlines will also reduce the size of their fleet within this context. German wings flight operations will be terminated 2 years earlier than planned. In the future, we will be flying with maximum of 10 airlines. We will continue to bundle and expand our tourism segment when the restart country will already doing so before the crisis, and there will be a greater increase in demand here than for business travel after the crisis. Aircraft out of 4 companies, we will bundle to 1 touristic oriented. Company. We want to reduce the individual costs to by 2 to 4% per year instead then of 1% to 2%. So much for the structural measures. In order to accomplish our success restart, we have going to win back our customers and build confidence, hygiene message and safety precautions surrounding the flight will play its central role here. We have already developed a catalog of measures in order to minimize the risk of infections of or the introductions of corona, we would like to protect our passengers and crews as well as possible. Ladies and gentlemen, The level of complexities surrounding all of these measures is extremely high. On the one hand, there is uncertainty as to when operations can be resumed And at the same time, we have to take into account the corporate law dimensions. We are talking to the German federal governments and the KFW In addition, in addition, we are also negotiating with the governance of Austrian and Belgium for help with Austrian Airlines and Brussels Airlines. In case of Swiss and Edelois, We have already received assurances from the Swiss government for a loan that will be guaranteed largely by the Swiss state. The package still has to be approved by the parliament, but that is expected. At the beginning of May, at the we are not only discussing the levels of the necessary amounts, but also negotiating the conditions and timelines as to when this help can be made available. We must be We will continue to need money to modernize our fleets also in the interests in protecting the environment. That topic is currently overshadowed by others. However, it's not going to stay that way as the volume of flights increases the client discussion will also become very topical. We will only be fit for the future if all these conditions are fulfilled or to sum it up, our future viability equals our competitiveness and our ability to invest. Aitron, the state is not an end in itself. We attach it to clear both and consider ourselves responsible to the taxpayers who make this 8 possible. In order to remain competitive, we want to keep the lift on the group and European airline group together whatever this scenario, that is our overarching goal. If we want to compete globally against 3 major airline groups in the U. S. China and at the Gulf region at the BOSPER, then we will able to do so only as European airline group. 1st and foremost, we cannot allow ourselves to become heavily indebted. That would penalize us for years. We need a plan today for how we can repay the government loans and investments as quickly as possible. Positions are now called upon to ensure that 8 does not lead to an imbalance in international competition, especially when competitors in the U. S. Or China are now getting in great shape with state support. It is often more important now, their international competition not be distorted by differing types and scopes of state 8. The experience of recent years have shown that those who are not competitive will not be able to make it in the long run, even with state 8. Up until the Kona pandemic, we, as the Los Angeles group, were competitive and successful. We were hit By this crisis, which is not our fault, now we need government support. We do not need government management. In the federal government in Germany, nobody wants to state the helm of Lufthansa. Lufthansa was successfully privatized in 1997. During the last three years, we have consistently generated an operating result of over 1,000,000,000, We invested record amounts every year on average about 1,000,000,000. I became member of the board 10 years ago, and we couldn't dream of these sums but we can do it. This is so important to preserve the entrepreneurial freedom of decision and action author loops on the group We currently expect that the global demand for air travel will no longer grow as dynamically as It did in the past years, people's travel behavior will change in terms of leisure and business travel. As a result, global air transport will have to reconstructure itself. We expect a global transformation of Air Transport and would like to continue playing a leading role with the Lufthansa group in the future. Lufthansa will be different, and it's going to be smaller after the crisis. We will reduce the size of our fleet by about 100 aircraft. That means we have 10,000 in place too many on board. We will no longer be able to rule out laying of stuff for operational reasons. Unless we find it to a way to keep as many colleagues as possible onboard using innovative part time models in our unique plant of Lufthansa Solidarities. We feel the will from all sides involved for all for Lufthansa to persist in global competitions, we must enroll this health. The importance of basic supply of flights is now becoming clear for all to see maintaining our European infrastructures of vital importance. Allow me to share a few personal thought at this point. These days, we are timing again hearing how health comes first and rightly so We will also face with a painful decision in this respect, in the executive board. Ulrich Sandson, was, at the beginning of May, advised by his doctors to stop working immediately. Goes without saying that we accepted this decision. For me personally, it is particularly painful to have to do without one of my closest colleagues in recent years. We have re distributed his duties among the remaining members of the, yes, executive board. Jeric, I hope you are able to watch today. We wish you all the very best of your health You never spared yourself, and you have achieved so much for a Lufthansa, and the successes of the past few years, above all your successes. We all say. Thank you. It has also always been our strategy at Lufthansa to strike a fair balance between our stakeholder interests and partners between customers, staff, and shareholders. This same balance must also be our goal in the crisis. The development of revenue and earnings in the first quarter of 2020 shows how much these joint solutions. The preliminary figures show a loss of 1,000,000,000 for January to March. And the second quarter will be even worse. I cannot provide you with an outlook for the full year in the current situation. I can tell you, however, the airlines were the 1st in the world to be hit by this crisis. They were hit the hardest and they will be among the last industries to emerge from the crisis. Nevertheless, it ruins our eye in meatloft cancer to emerge from this crisis stronger. It is my wish. And that of our staff, that the positive contribution of air transport to globalization within the framework of the current crisis is not forgotten. Connecting peoples and cultures across borders. This is our mission to society. And it's with a great conviction that we say yes to Europe, yes to the world. Say yes to Europe, say yes to the world. Has always been more than just a brand campaign to us. Both these statements stand for our attitude. We should not lose the international zeitgeist and our openness to the world as a result of this crisis. It's about more than economic success here. A couple of weeks ago, a customer wrote to me. To me, Freedom is not when the home improvement stores open again in Bavaria, but when you are 10,000 kilometers away from Munich airport and you hear, welcome aboard of German Lufthansa. I promise you that we will be connecting people, cultures, incontinence, again, as soon as possible. We will stay on course and do everything to ensure that our Lufthansa takes We were successful at restarting 65 years ago, and we will be successful. Again, we are fighting for our company, our staff, our customers, and for you, dear shareholders. Because we are convinced that we are contributing to something that is truly important. Thank you for your support. Stay with us and above all, stay healthy. Thank you very much, Mr. Spohr, for your speech. Your shareholders. Now I'd like to talk about the action of this policy board in 2019 financial and in doing the exercises, how are we working? In 2019, the supervisory board has very well efficiently worked with the board. We have had 4 meetings in the vision informations about the individual attendance, you can see on our home page. Key incentive of our meetings with the economic development of Lufthansa and the social companies. And of course, large investment and for the projects in March, its supervisory board agreed to up to 40 long haul aircraft of different types by the companies of Lufthansa Group. In December, the supervisory board agreed to sell the European operations of LSC to Gage Group Furthermore, the supervisory board has decided upon a new structure and a distribution of business There are new results and customers and corporate Vipps, Possibility's business units as well as IT Digital And Innovation. Those are very important topics for the future of Luftonza. And we have the businesses, it established now in the executive board. We discontinued Eurowings. In the future, in coordination with other passenger airlines of the group, this is going to be 1 business unit. Overall, the new structure points the executive board in a more functional and efficient manner and is oriented on the value chain as an airline. For the new entity of customer and corporate disability, we bought the Supervisory Board invited Christina first, as of the 1st January 2024 term of 3 years. This is what we do for the first term. We are convinced that Mrs. Furr has the personality and the experience, especially as a CEO and CCO before of Brussels Airlines, and she'll be able to shape this new entity. The supervisor board also invited Mr. Nigga, Michal Niggeman, as of the 1st January 2020 as well for a term of 3 years. Before he was the, Director CFO of Swiss and before the, director of legal affairs and compliance. He follows in the footsteps of between a focus who left the company at, I mean, on 21st December, 2019 in mutual agreement, within the six years of her work on the board Mrs. Faulkens has initiated very important steps for a cultural change, which was crucial for the success of Lufthansa Group. This supervisor, both thanks Mrs. Volkins for the successes achieved and her work, determined work until the very last hour. In December, we have routinely reviewed the efficiency. And we have, formulated with the supervisor board, the compliance declarations with the corporate governance. We've also reviewed the remuneration system. As of the 1st 2020, there will be some modifications. This is to take into account the new legal framework of the 2nd shareholder directive and the new shape of the German corporate governance code. At the same time, we took into account the ideas and demands of few shareholders from the last AGM. In this context, as of 1st January 2020, we change the multi annual, the more remuneration from performance cash plan to a performance share plan. In the future, In addition to the relative development of the share, the absolute share development is also taken into consideration and into account It is a leading based on the creation of value. So we have a 1 year variable remuneration on the basis of the adjustment, just ROCE and adjusted EBIT margin. This is based on the key KPIs of the group especially the appropriation of capital. In the report of remuneration, we also inform for the financial year expressed about the goals and how they were met. For the obligation to hold shares, we agreed upon a further extension of this obligation for all board members, we have a callback regulation. The supervisory board is allowed to keep or to remark to recuperate recover remuneration. As seen in the past, we have a limit to the remuneration of board members. This maximum remuneration was enlarged and in order to stakeholder rights directive. And now all components of the remuneration are able or will be able to recover it, including cheaper flights. As of the 1st January 2020, there is remuneration system in force. I'd like to describe it briefly. In current treaties and contracts, this was agreed upon. And we'll see another picture briefly. The There was no addition to the remuneration in its dimension. It is to be a contribution to further the strategy the devil here of the group, it is to safeguard a, a sustainable and long term development because we believe in the success of post Corona Lufthansa, remuneration of The board is based on stable and flexible components, depending on not on the success based on the German stock operation act, the flexible remuneration is very sustainable. 2 thirds of the flexible remuneration are of this nature. 1 third of the bonus is annually based. As in the past, this flexible component is based on financial, nonfinancial success targets, especially the ESG criteria come into play here, environment's social governance. This is what ESG stands for. So employees customers compliance reputation, quality and environment as well. In cases like the corona crisis, the remuneration is system provides for the possibility to take into account performance in crisis management, the supervisory board will decide upon this in due course. All details are on the agenda in point 6. About the activity of this award in the current financial year. This is an absolutely extraordinary year. This is why I'd like to say a few words about this. These executive boards has very quickly reacted to the crisis and adapted the flight schedule. There were comprehensive measures taking order to lower cost and investments, the supervisor board is very much associated to these decisions and who help at least support those measures. As chairman of the Supervisory Board, I am in daily contact with the CEO and members of the board as well. We exchanged our views about topics On March 18th, the supervisor board decided that the Syrian Committee can decide on urgent matters as far as legally viable. There are no other committees dealing with these topics, if members of these steering communities are unavailable, there are vice members for this case. The steering committee comes together weekly in a telephone conference and makes sure that the in meetings, crisis management is coordinated. There are written reports on a regular basis as well as video and telephone conferences, including the entire supervisor board, the last one took place yesterday. As of 6th April, Mr. Oleg Sorenson discontinued his term as CFO for health reasons. Mrs. Paul just mentioned this Svenson has been working in the last 3 years, unfortunately, he wasn't able to continue longer. His work was excellent in order to internationalize the culture of work at Lufrenzern. He has made important decisions and set the tips for important developments. Please go to the supervisory board and I personally would like to thank Mr. Svensson. We deeply regret that he had to discontinue his work as a person and as a professional he was an amazing member, and we wish him all the best from the bottom of our house. On the end of April, we had an extraordinary reunion and we talked about the successor of Mr. Srenson, we decided to keep this structure as a 6 board members. And we Temporarily, we distributed his function as CFO. I'd like to come now to the proposed members. With the end of this AGM, the term of Mr. Stefan Storm will terminate as well as herbertina, Martina Maers, Michael Niles, and Matteis Wissmann, have discontinued their terms with the end of this AGM. As well because they have other business to intend to. We'd like to thank very much all leading members of the civil advisory board for their work. For their actions taken, and he certainly will remain loyal to Lufthansa. The nominating committee proposed and we follow this proposal to vote Mrs. Stone for another 5 years into the Supervisory Board. Pursuant to the proposals as can be seen on Agenda 5, we propose Eric Lemendi, Doctor. Thomas Envers, Halkruger, and Astrid Stranger, to be members of the supervisor board 4, 5 years. All 4 new candidates have comprehensive knowledge and experience in the topics relevant to us. Therefore, they are perfectly complying with the profile. The details were accessible in the informations published their CVs. I'd like to give the opportunity to the candidates to talk to you in person, Mrs. Stefanstone. First, Mr. Stone, please. Doctor. Klein. Shareholders. My name is Stephan Stump. I'm the CEO of Fresenius Group. 5 years ago? Was nominated for a position on the Supervisory Board. If you gave me your trust, and I would like to thank you for this. Today, I would like to apply again for your trust and for this position. For the past 5 years, I acted independently to represent your interest on the supervisory board based on my experience as a chief executive. Officer, but also as a Chief Financial Officer, a position that I also held. Ausshorses. I was also part of the Audit Committee. And I'm now the chair of the Audit Committee. On the supervised report. Lufthansa is a wonderful company. Firmly believe that it still has a successful future ahead of it. Which may look a little bit different from what we thought only a short while ago. I would like to keep working for this company to contribute my expertise and my advice to the supervisory board and the executive board about the way forward in the current crisis, I would like to play my part to achieve a new normal after the ramp up phase, and I would Feel honored. I would be honored if you gave me your trust again. Thank you very much. Thank you, Mr. Prior to today's AGM, we prerecorded statements of the other 4 candidates. Who would also like to speak to you, and I would like to ask for these statements to be played now. Shareholders. My name is Eric Clementi. I was born in South Tyroll, And I live in the USA today, and I, am active as a consultant and on the supervisory board of various companies From 2010, I worked at MBIBM, and I represented the company divisions in North America and North America and Europe. My chief aim was to open up new markets and to optimize processes and business models. Which is also relevant to the aviation industry, which is relevant to its success. I have known Lufthansa for over 30 years, from the point of view of a customer. And I am looking forward to the challenges ahead of, Lufthansa and also to contribute my expertise, expertise. Hello. Shareholders from Munich. My name is Thomas Enders. I'm sixty four years old, and before I retired. I have worked I worked for more than 30 years in the aviation and space industry. Beginning with Blome and other companies. And for 14 years, I was the CEO of Airbus. I held various managerial positions there. Of course, I Got to know Lufthansa very well during this time, and I also appreciate it as it as a partner. I would be deeply honored and pleased to be able to contribute to the success of this wonderful company and to support the management led by Carsten Spaw during the further development of the company. Shareholders. I am pleased and honored to apply for the for a position on the executive board. The current situation is challenging for all sectors. But we should nevertheless look ahead. Now allow me to briefly introduce myself. I am a mechanical engineer I have worked for BMW for 28 years. I am passionate about mobility and all its aspects 2008, I was appointed a member of the supervisory board where I was responsible for human resources, distribution, and other units. For the past 4 years, I was a member of the management team of BMW. Now why should you give me your your vote. I have a lot of experience in terms of strategic management of the stock market listed companies. Now there are lots of things that BMW And Lufthansa have in common, namely the focus on customers, innovation, sustainable action and value based management culture. I would like to contribute my part or I would like to play my role to increase the value to create and add new value to Lufthansa, I would be pleased if I would gain your trust. Greetings to all of you from Munich. Ladies and gentlemen, I'm pleased that I have the opportunity to introduce myself to you today. My name is Astra Stenger. I'm CEO of AXA. Based in France and 16 other countries. I'm responsible for developing our business, which has 108,000,000 customers in more than 60 countries. And to unify, to formulate a corporate strategy. New technology should allow us to communicate efficiently and act efficiently. Together. Lufthansa relies on IT. It has also grown by consolidating several affiliates. And although these companies differ in certain aspects, I can contribute my experience, especially in the IT sector, to change the corporate culture of Lufthansa enter add to its value. Now I expect challenges as a member of the supervisory board, the current crisis has led to a sea change in customer's behavior, in a very short time and also proved the worth of IT based new business models. The executive board and supervisory boards of Lufthansa will work together on developing this strategy. Thank you very much for your attention. To the candidates. Apart from Mr. Storm, as I said, we pre recorded the statements. Now I would like to ask Mr. Niggeman present the authorized, the increase in capital from the authorized capital and the last financial year. Ladies and gentlemen, before we move on to answering the questions of shareholders, I'm obliged to give the following statement according to the German Stock Operation Act. Also in the year 2019, the authorized capital B designed to issue new shares to employees of George Lufthansa, again, and its affiliates, was partially utilized The share capital was raised, was increased, by a nominal value of €7,000,00637,831 point by issuing 2,983,528 new shares with each with a pro rata share in the share capital of per share and an issuing price of per share. The executive board based the issuing price on the stock market price of Lufthansa shares. Compared to the stock market price, the fixed issuance price did not include any premium or discounts. The new shares were issued exclusively to employees of Lufthansa and its affiliates as part of the employees share ownership scheme. The subscription, right, was already excluded when the authorized capital B was created by the AGM was approved by the AGM. The exclusion of subscription rights was necessary to allow employees of Deutsche Lufthansa AGhi and its affiliates are as part of a multi annual investment model to allow them a greater involvement or investment in the share capital of the company and to bring the interests of the company and the employees in line. Considering that the issue on price was based on the stock market price and the capital increase represented only 0.6% of the share capital at the time. The dilution effects resulting from the exclusion of the subscription right can be considered insignificant. Now for further details on the utilization of the authorized capital B, I would like to refer you to the explanation note 31 in the annex to the financial statements on Page 176. Of the management report. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Thank you, Mr. Nygemont. Now before we move on to the question and answer session. Let me now state today's presence. The share capital has remained unchanged since the AGM has been convened. And today, 98,000,002,87,314,000,000, no par value shares. Are present, which, represents 20.55 percent of the share capital. In addition, We have received online absentee votes for 60,403,000 no value shares, which means that we have a total of 150 8,690,314,314,000,000 no par registered value shares present, which represents 333.19 percent of the share capital. The, attendance information is available on the website. Now for everybody who is watching us online, I would like to point out that the publicly available part of today's AGM has now ended. Thank you for your interest. And I would like to ask you to