DLAKF - Lufthansa's ReNew Program Will Most Likely Enhance FCF

• The Lufthansa Group is an aviation group with operations all over the world.
• The company sold some subsidiaries in Europe and may be willing to sell others. If Lufthansa decides to sell its catering business segment, investors may expect stock demand.
• In the next five years, the company’s ReFocus program could also bring a significant amount of cash. Management expects to own only a portfolio of operating segments made up exclusively.
• My numbers for the next four years include 2023 sales of €31 billion and conservative sales growth of 21% from 2023 to 2025. In 2025, I would expect €46 million with an EBITDA margin close to 13% and D&A/Sales close to 11%.
• I think that the recent threat of a new covid variant and possible future variants could result in some downside risks. With that, Lufthansa is well prepared.

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