Slide 1: First Half 2022 Results
First Half 2022 Results Carsten Spohr, CEO Remco Steenbergen, CFO Frankfurt, 04 August 2022
Slide 2: Disclaimer
Disclaimer The information herein is based on publicly available information. It This presentation contains statements that express the Company‘s has been prepared by the Company solely for use in this opinions, expectations, beliefs, plans, objectives, assumptions or presentation and has not been v
Slide 3: First Half 2022 Results
First Half 2022 Results Carsten Spohr, CEO Frankfurt, 04 August 2022
Slide 4: The industry-wide recovery has now entered its second phase
The industry-wide recovery has now entered its second phase III NEW NORMAL II RESTART Competing on the next level I SURVIVAL Enabling the return of travel Ensuring solvency in the crisis Higher level of Steep increase in flight consolidation operations Grounding of aircraft Capacity discipline Indus
Slide 5: Lufthansa Group returns to profits in the second quarter
Lufthansa Group returns to profits in the second quarter Passengers Premium Back to black demand 29m steadily EUR 393m Group Adjusted EBIT 74% of 2019 levels increasing Q2 2022 Q2 2022 Yield1 Seat Load Factor Cargo 80% sets new records +10% EUR 482m +28.8pts vs. PY Adj. EBIT +48% vs. PY vs. 2019 -3.
Slide 6: Lufthansa Group has proactively implemented numerous measures to stabilize the system
Lufthansa Group has proactively implemented numerous measures to stabilize the system Industry-wide disruption Lufthansa Group measures Operations stabilized Schedule regularity by hub1 FRA MUC ZRH VIE BRU Structural adjustments in flight schedule Personnel shortages 100% New hires in several oc
Slide 7: First Half 2022 Results
First Half 2022 Results Remco Steenbergen, CFO Frankfurt, 04 August 2022
Slide 8: Operating result and net income turn positive again, strong free cash flow generation
Operating result and net income turn positive again, strong free cash flow generation driven by robust bookings and strict working capital management (in EUR million) Q2 ’22 Q2 ’21 6M ’22 6M ’21 Revenues 8,462 3,211 13,825 5,771 Operating expenses 8,603 4,385 14,964 8,270 Of which fuel 2,151 417 3,1
Slide 9: Passenger Airlines: Higher loads, yield strength and unit cost progress drive improvement
Passenger Airlines: Higher loads, yield strength and unit cost progress drive improvement Operational KPIs Adjusted EBIT in EUR million Comments Q2 ’22 vs. 2021 vs. 2019 Seat load factor improves throughout -86 the quarter, almost at par with 2019 ASK 69,961m +155.9% -26.5% in June -1,206 Partic
Slide 10: Lufthansa Cargo continues to perform on record levels, MRO capitalizes on recovery
Lufthansa Cargo continues to perform on record levels, MRO capitalizes on the recovery in global aviation Adjusted EBIT in EUR million Q2 2022 Comments 482 326 Cargo continues to benefit from Q2 ’22 Q2 ’21 ongoing capacity shortages in the air cargo market and disruptions in sea freight 100 90 L
Slide 11: Strong bookings and strict working capital management drive significantly positive free cash flow
Strong bookings and strict working capital management drive significantly positive free cash flow Second Quarter 2022 Adjusted EBIT / Adjusted free cash flow in EUR million 2,945 (138) 102 (738) 1,132 2,122 (417) (85) 1,308 393 565 Adjusted Depreciation Liability for Ticket-related Trade Remaining O
Slide 12: Net debt decreases in line with positive free cash flow performance
Net debt decreases in line with positive free cash flow performance Net debt in EUR million Liquidity in EUR million Shareholder equity in EUR million +1.9bn Fixed interest rate strategy limits interest risk 11,425 RCF/ +3.4bn -2.6bn 2,060 Bilateral 9,445 9,023 credit lines 7,927 6,396 Target liquid
Slide 13: Net pension liability reduced by almost 7 billion euros since the end of 2020
Net pension liability reduced by almost 7 billion euros since the end of 2020 Net pension liability1 in EUR million Funding ratio pension plans Comments -6.7bn Fully funded at Decrease in DBO liability partly offset 9,491 discount rate of 4.5% by negative performance of plan assets -3.8bn 80% fund
Slide 14: Progress in the implementation of structural cost reductions drives unit cost reduction
Progress in the implementation of structural cost reductions drives unit cost reduction Targeted sustainable cost savings 2020 - 2024 in EUR billion CASK1 change vs. 2019 levels ~3.5 ~1.8 40.6% ~1.1 ~0.3 ~0.4 ~1.7 18.4% Of which c. 2pp Measures implemented and recognized in P&L due to FX ~1.2 Measur
Slide 15: Comprehensive hedging limits the increase of fuel costs in 2022 and 2023
Comprehensive hedging limits the increase of fuel costs in 2022 and 2023 Expected fuel cost sensitivity after hedging (FY 2022)1 Hedging portfolio excl. Cargo as of July 28, 2022 125 Q3 Q4 H2 2022 FY 2023 ø Market price crude oil2 115 7,600 7,700 7,800 7,900 8,000 105 7,500 7,600 7,700 7,800 7,900 H
Slide 16: Group expects to return to profits and to generate significant cash in FY 2022
Group expects to return to profits and to generate significant cash in FY 2022 Positive Q3 2022 outlook Full Year 2022 outlook specified 2024 targets confirmed Capacity (ASK): Capacity (ASK): Adj. EBIT margin target: c.80% of 2019 levels c.75% of 2019 levels At least 8% Adjusted EBIT: Adjusted EBIT:
Slide 17: First Half 2022 Results
First Half 2022 Results Carsten Spohr, CEO Frankfurt, 04 August 2022
Slide 18: Group portfolio offers further recovery potential and resilience to crises
Group portfolio offers further recovery potential and resilience to crises Cargo Passenger Airlines MRO ~70% of load originates >70% of sales generated Servicing one out of five outside of Germany outside of Germany1 passenger aircraft globally Exceptionally strong momentum Additional ~25% recovery
Slide 19: Broad-based increases in yields and loads – momentum in premium accelerates
Broad-based increases in yields and loads – momentum in premium accelerates Yield1 Development 2022 vs. 2019 indexed to 100 Seat Load Factor1 in % 130 2019 2022 Non-premium 85 81 80 76 Q2 (flown) 125 Total Premium 120 115 110 75 76 Q3 (booked) 105 54 59 100 95 APR MAY JUN JUL Non-premium2 Premium3 1
Slide 20: Sustainability is fully integrated into Group's products and partnerships
Sustainability is fully integrated into Group’s products and partnerships Green Fares State-of-the-art and MoU signed Flights trial in Nordic more with Shell – markets fuel-efficient biggest SAF 234,891 aircraft purchased deal in 75% of 2019 levels history CO2 Deutsche Compensation Bahn joins on the
Slide 21: Group's emission reduction targets successfully validated by SBTi
Group’s emission reduction targets successfully validated by Science Based Targets initiative (SBTi) Index LHG CO2 Emissions (not to scale) Major levers for CO2 Reduction: 110 Growth Fleet (SBTi relevance) Reduction Fleet rollover 100 SBTi Sector Guidance Sustainable Aviation Fuel SAF First Euro
Slide 22: Lufthansa Group is emerging from the crisis stronger and more resilient
Lufthansa Group is emerging from the crisis stronger and more resilient The commitment to Strong portfolio drives sustainability is at the return to profitability in heart of the Group’s Q2 and FY 2022 strategy Customer satisfaction and premium offer remain key priority Page 22
Slide 23: Appendix - supplementary information
Appendix - supplementary information- Page 23
Slide 24: Traffic Data
Traffic Data Q1 vs.2019 Apr vs.2019 May vs.2019 June vs.2019 Q2 vs.2019 6M vs.2019 Passengers in 1,000 13,173 -55.2% 8,602 -31.3% 9,872 -25.2% 10,734 -22.3% 29,209 -26.1% 42,382 -38.6% Available seat-kilometers (m) 45,656 -42.5% 21,945 -28.4% 23,623 -26.9% 24,393 -24.2% 69,961 -26.5% 115,617 -33.8%
Slide 25: Operating KPIs of Passenger Airlines by region vs. 2019
Operating KPIs of Passenger Airlines by region vs. 2019 (unless stated otherwise) Total Q2’22 6M ’22 Europe Q2’22 6M ’22 Asia / Pacific Q2’22 6M ’22 Number of flights -25.5% -36.2% ASK -13.1% -25.4% ASK -67.4% -69.1% ASK -26.5% -33.8% RPK -14.7% -27.7% RPK -68.3% -73.8% RPK -29.2% -39.1% SLF -1.5pts
Slide 26: Calculation of operational airline KPIs
Calculation of operational airline KPIs Passenger Airlines, 6M 2022 1) Traffic revenues (€m) 7,937 1) Total operating expenses (€m) -10,516 2) Not assignable (€m) 788 2) Reversal of provisions (€m) 50 Yield = 3) Basis for Yield (1)–(2) (€m) 7,149 3) FX losses (€m) -195 CASK 4) RPK (m) 1 85,942 4) Fu
Slide 27: Group P&L
Group P&L Lufthansa Group (in EUR m) Q2 ’22 vs. Q2 ’21 6M ’22 vs. 6M ’21 Revenues 8,462 +163.5% 13,825 +139.6% Total operating income 9,005 +152.2% 14,818 +129.4% Operating expenses 8,603 +96.2% 14,964 +80.9% Of which fees & charges 999 +147.3% 1,677 +143.4% Of which fuel 2,151 +415.8% 3,138 +353.5%
Slide 28: EBIT / Adjusted EBIT bridge 6M 2022
EBIT / Adjusted EBIT bridge 6M 2022 in EUR million 21 -198 (75) 17 (13) 15 117 20 -300 EBIT Impairments, Release of Restructuirng Impairment Net book gains Past pension Other Adjusted EBIT material write- remaining expenses on non- service effects offs and other provisions after mainly related curre
Slide 29: Adjusted EBIT / Net Income 6M 2022
Adjusted EBIT / Net Income 6M 2022 in EUR million -198 178 (102) -325 (4) 13 (212) Adjusted EBIT Adjustments Interest result Profit/loss attributable Tax result Other1 Net EBIT to minority interests Income 6M ’22 6M ’22 1 Incl. positive valuation result from convertible bond (63m), strategic interes
Slide 30: Adjusted EBIT by Airline
Adjusted EBIT by Airline Adjusted EBIT (in EUR m) Q2 ’22 Q2 ’21 Change in % 6M ’22 6M ’21 Change in % Lufthansa German Airlines -83 -742 +88.8% -798 -1,573 +49.3% SWISS 107 -172 nmf. 45 -383 nmf. Austrian Airlines 3 -94 nmf. -106 -198 +46.5% Brussels Airlines -27 -73 +63.0% -89 -143 +37.8% Eurowings
Slide 31: Cash flow statement
Cash flow statement Lufthansa Group (in m EUR) 6M’22 vs. 6M ’21 Contains increase in unflown tickets liability 1 EBT (earnings before income taxes) -334 +1,900 of EUR 3,328m Depreciation & amortization (incl. non-current assets) 1,156 +42 Net proceeds from disposal of non-current assets -13 -32 Incl
Slide 32: Adjusted EBIT / FCF bridge 6M 2022
Adjusted EBIT / FCF bridge 6M 2022 87 1,306 1,576 1,368 171 3,328 4,441 2,902 1,128 198 Adj. EBIT Depreciation & Liability for Ticket-related Trade payables Other1 Operating Net CAPEX2 Amortization Adj. Free Amortization unflown tickets receivables Cashflow IFRS 16 leases cash flow 6M 1 Incl. other
Slide 33: Fleet overview
Fleet overview thereof Change since Change since Aircraft Type LH LX OS SN EW LCAG Group fleet Lease 31 Dec 2021 30 Jun 2021 Airbus A220 30 30 Airbus A319 43 15 36 94 25 -2 -7 Airbus A320 92 31 29 16 58 226 30 -2 -7 Airbus A321 78 10 6 2 1 97 2 +5 +3 Airbus A330 25 16 9 50 8 Airbus A340 34 9 43 Airb
Slide 34: Multi-Year financial overview
Multi-Year financial overview Lufthansa Group (in m EUR, as reported) 2015 2016 2017 2018 20191) 2020 2021 Operating KPIs RASK ex currency -3.0% -5.9% +1.9% -0.5% -2.5% -26.7% -6.1% CASK ex currency, ex fuel 2) +2.4% -2.5% -1.8% -1.7% -1.5% +84.6% -25.8% Profit & Loss Revenues 32,056 31,660 35,579 3
Slide 35: Maturity profile of borrowings as of June 30, 2022
Maturity profile of borrowings as of June 30, 2022 3,000 2,500 2,000 1,500 1,000 500 0 2022 2023 2024 2025 2026 2027 2028 2029 Straight Bond Hybrid Convertible Bond Schuldscheindarlehen Aircraft Finance (secured) Stabilization measures* Other** * As drawn on Jun 30- – predominantly scheduled repayme