Slide 1: Q3 2024 Results
Q3 2024 Results Carsten Spohr, CEO Till Streichert, CFO Frankfurt, 29 October 2024
Slide 2: Review Q3
Q3 2024 Results Carsten Spohr, CEO Review Q3 Frankfurt, 29 October 2024
Slide 3: Disclaimer
Disclaimer IMPORTANT: The following applies to this document and the oral presentation of the information in this document by Deutsche Lufthansa Aktiengesellschaft (the “Company”, and together with its consolidated subsidiaries, the “Group”) or any person on behalf of the Company, any question-and-a
Slide 4: Disclaimer
Disclaimer This Presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue, or the solicitation of an offer to purchase, subscribe to or acquire, securities of the Company, its affiliates or an inducement to enter into investment activity in the Unite
Slide 5: Strong demand and strategic progress, yet operational limits and regulatory challenges
Strong demand and strategic progress, yet operational limits and regulatory challenges Passenger Airlines, Cargo and MRO Robust global demand Consistent pursuit of our strategy business financially successful ▪ Passenger Airlines with 88% record SLF ▪ Passenger Airlines excl. Lufthansa ▪ Lufthansa G
Slide 6: The third quarter shows group-wide stabilization and solid performance
The third quarter shows group-wide stabilization and solid performance ASK Revenues Adjusted EBIT +6% vs. 2023 EUR 10.7bn EUR 1.3bn +5% vs. 2023 -0.1bn vs. 2023 Irregularity impact Best App Record High World Seat Load EUR -242m Aviation Factor Festival 87.2% Page 6
Slide 7: The establishment of the “Digital Hangar” led to major improvements in digital customer experience
The establishment of the “Digital Hangar” two years ago led already to major improvements in the digital customer experience Doubled App Users: increased to 800,000 daily users since 2023 40%+ of digital check-ins via the App 1.3m customer claims handled end-to-end Awarded Best Airline App 2024 App
Slide 8: Largest fleet renewal of Lufthansa Group is imminent
Largest fleet renewal of Lufthansa Group is imminent, including a major complexity reduction Intercontinental Fleet Passenger Aircraft Deliveries Currently LHG operates 12 aircraft types Phase-out Phase-in widebody 90 Orderbook comprises >230 passenger a/c narrowbody 142 -6 +2 2025+ 744 779 ▪ Interc
Slide 9: Beyond 2024 our strategic path remains unchanged
Beyond 2024 our strategic path remains unchanged BECOMING MORE … “Focused“ “International“ “Premium“ Airline core business Passenger Airlines Page 9
Slide 10: Financial Overview
Q3 2024 Results Till Streichert, CFO Financial Overview Frankfurt, 29 October 2024
Slide 11: Q3 revenues increased by 5%, while operating expenses increased 6% vs. PY
Variante A Q3 revenues increased by 5%, while operating expenses increased 6% vs. PY (in EUR million) Q3’24 Q3’23 Change in % Revenues 10,738 10,275 +4.5 Operating expenses 10,160 9,561 +6.3 Of which fuel 2,175 2,266 -4.0 Of which staff 2,218 2,066 +7.4 Of which depreciation 597 558 +7.0 Adjusted EB
Slide 12: Passenger Airlines: Challenges at Lufthansa Airlines prevent fully exploiting fixed cost leverage
Passenger Airlines: Challenges at Lufthansa Airlines prevent the Group from fully exploiting its fixed cost leverage Passenger Airlines Passenger Airlines Lufthansa Comments excl. LH Airlines Airlines ▪ Compared to Q2 the y-o-y capacity increase was slowed down to 5.7%p (Q2: +8.9%p) Q3 '24 vs. PY Q3
Slide 13: Ambition for LHA Turnaround: measures with EUR ~1.5bn impact by 2026
Ambition for LHA Turnaround: measures with EUR ~1.5bn impact by 2026 LHA Turnaround Gross Adjusted EBIT effect by 2026 Premium customer offer ~35% Revenue impact 35% Revenue Retail and Ancillary Revenue Improved Operational Stability Increased productivity ~65% Cost reduction Ground efficiency & Aut
Slide 14: Lufthansa Cargo faces upward trend – Lufthansa Technik consistently contributes high profits
Lufthansa Cargo faces upward trend – Lufthansa Technik consistently contributes high profits Adjusted EBIT/(margin) in EUR million Comments 38 (4.9%) 1 ▪ Cargo profits rose significantly versus (0.1%) prior year due to high demand from Q3 ’24 Q3 ’23 Asia ▪ Lufthansa Technik result on same level 167
Slide 15: Free cash flow in the first nine months of 2024 was driven by strong incoming bookings
Free cash flow in the first nine months of 2024 was driven by strong incoming bookings for the summer and CAPEX shift YTD Adjusted EBIT / Adjusted free cash flow in EUR million Q3 ’24 (408) 3,423 Adj. FCF: 967 EUR 128m -2,155 1,687 1,177 -262 1,006 Adjusted EBIT D&A Liability from Other Operating Ne
Slide 16: Lufthansa Group continues to have strong liquidity and a robust balance sheet
Lufthansa Group continues to have strong liquidity and a robust balance sheet Liquidity Net debt and net pension liabilities1) Comments in EUR billion in EUR billion 11.4 1.9x2) ▪ Leverage ratio of 1.9x2) – 10.4 reductions in net debt and 2.5 8.4 2.1 Target liquidity: 7.7 pension liability, but also
Slide 17: Hedging strategy allows Lufthansa Group to benefit from fuel price decrease
Hedging strategy allows Lufthansa Group to benefit from fuel price decrease in Q3 2024 – full year guidance at EUR 7.8bn LH fuel price exposure is well hedged1) in 2024 Expected fuel price sensitivity after hedging (FY 2024) LH mixed JET price in USD/to. as of October 22 Q4 FY 2024 126 916 920 923 9
Slide 18: Strong demand environment for the remaining winter months in 2024
Strong demand environment for the remaining winter months in 2024 Actuals Q2 in % Booking Outlook as of 14.10.2024 in % Comments vs. PY vs. PY SLF Booked SLF vs. PY vs. PY ▪ Reduced capacity expansion from the beginning of the winter flight -1.0%p +2.0%p +1.5%p schedule +7.6 +6.6 +6.4 ▪ Booked seat
Slide 19: Full year outlook assumes slightly adjusted capacity and RASK guidance
Full year outlook assumes a slightly adjusted capacity and RASK guidance, while Adjusted EBIT range still dependent on RASK variability FY 2024 Capacity ~91% of 2019 RASK Mid single-digit decline vs. PY CASK (ex fuel and emission costs) Low single-digit increase vs. PY Adj. EBIT EUR 1.4 – 1.8bn Page
Slide 20: CFO Topics
CFO Topics Leading airline group with strong assets Opportunities for profitable growth Focus on profitability and cashflow Prudent capital allocation Page 20
Slide 21: Appendix - supplementary information
Appendix - supplementary information - Page 21
Slide 22: Traffic Data
Traffic Data Jul vs. 2023 Aug vs. 2023 Sep vs. 2023 Q3 vs. 2023 vs. 2019 Passengers in 1,000 13,683 +5.4% 13,617 +7.4% 13,011 +4.0% 40,311 +5.6% -5.7% Available seat-kilometers (m) 31,794 +7.0% 31,556 +7.3% 29,986 +5.0% 93,336 +6.4% -6.3% Revenue seat-kilometers (m) 27,930 +7.8% 27,683 +9.5% 25,748
Slide 23: Operating KPIs of Passenger Airlines by region vs. 2023
Operating KPIs of Passenger Airlines by region vs. 2023 (unless stated otherwise) Total Q3’24 Europe Q3’24 Asia Pacific Q3’24 ASK +6.4% ASK +18.1% Number of flights +3.4% RPK +7.2% RPK +16.5% SLF +0.7%p SLF -1.2%p ASK +6.4% RASK incl. currency1) +0.4% RASK incl. currency 1) -15.1% RPK +7.6% Americas
Slide 24: Calculation of operational airline KPIs RASK CASK
Calculation of operational airline KPIs Passenger Airlines, Q3 2024 1) Traffic revenues (€m) 8,385 1) Total Revenues (€m) 8,844 2) Not assignable (€m) 720 2) Other operating income (€m) 178 Yield = 3) Basis for Yield (1)–(2) (€m) 7,665 3) Reversal of provisions (€m) 34 RASK 4) RPK (m) 1) 81,362 4) F
Slide 25: Performance of Group Airlines in Q3 2024
Performance of Group Airlines in Q3 2024 ASK Revenue Adj. EBIT Adj. EBIT Q3 2024 vs. 2019 [m EUR] [m EUR] margin Lufthansa Airlines 87.3% 4,815 407 8.5% SWISS 99.6% 1,854 302 16.3% Austrian Airlines 101.2% 783 139 17.8% Brussels Airlines 85.7% 495 79 16.0% Eurowings 119.5% 954 239 25.1% Passenger Ai
Slide 26: Group P&L
Group P&L Lufthansa Group (in EUR m) Q3’24 vs. Q3’23 Revenues 10,738 +5% Total operating income 11,372 +4% Operating expenses 10,160 +6% Of which fees & charges 1,424 +14% Of which fuel 2,175 -4% Of which staff 2,218 +7% Of which depreciation 597 +7% Result from equity investments 128 0 Adjusted EBI
Slide 27: EBIT / Adjusted EBIT bridge Q3 2024
EBIT / Adjusted EBIT bridge Q3 2024 in EUR million 1,461 1,340 (7) 1 (2) 129 Sale of AirPlus and SLB transactions (A320 family) Adjusted EBIT Net book gains M&A and restructuring Impairment losses Others EBIT expenses and deviations Page 27
Slide 28: Cash flow statement
Cash flow statement Lufthansa Group (in m EUR) Q3’ 24 vs. Q3’ 23 EBT (earnings before income taxes) 1,348 -188 1 Depreciation & amortization (incl. repairable MRO materials) 630 +67 Decrease in the operating result compared Net proceeds from disposal of non-current assets -122 -131 1 to previous yea
Slide 29: Multi-year financial overview
Multi-year financial overview Lufthansa Group (in EUR million, as reported) 2016 2017 2018 20191 2020 2021 20224 2023 Operating KPIs (change vs. prior year) RASK ex currency -5.9% +1.9% -0.5% -2.5% -26.7% -6.1% -6.1% +11.0% CASK ex currency, ex fuel2 -2.5% -1.8% -1.7% -1.5% +84.6% -25.8% -25.8% +2.3
Slide 30: Maturity profile of borrowings as of September 30, 2024
Maturity profile of borrowings as of September 30, 2024 3,000 2,500 2,000 1,500 1,000 500 0 2024 2025 2026 2027 2028 2029 2030 2031 Straight Bond Hybrid Convertible Bond Schuldscheindarlehen Aircraft Finance (secured) Other* *Mainly bilateral loans – does not include operating lease payments Page 30