Slide 1: FY 2021 Results
FY 2021 Results Carsten Spohr, CEO Remco Steenbergen, CFO Frankfurt, 03 March 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: FY 2021 Results
FY 2021 Results Carsten Spohr, CEO Frankfurt, 03 March 2022
Slide 4: Lufthansa Group further strengthened its leading market position in 2021
Lufthansa Group further strengthened its leading market position in 2021 Made significant progress in implementing the Group’s strategic transformation and sustainability agenda Returned to profits in summer and stopped cash outflows Generated a record result at Lufthansa Cargo Secured almost EUR 3b
Slide 5: Lufthansa Group has made strong progress in recovering from the crisis
Lufthansa Group has made strong progress in recovering from the crisis 47mn Group Revenues (€) passengers 16.8bn +29% vs PY +24% vs PY Adj. Free Cash Flow (€) Group Adjusted EBIT excl. restructuring (€) -1.8bn Adjusted EBIT (€) +57% vs PY New bookings 1.5bn +93% vs PY back to 84% of pre-crisis level
Slide 6: FY 2021 Results
FY 2021 Results Remco Steenbergen, CFO Frankfurt, 03 March 2022
Slide 7: Strict cost discipline reduces full year loss by two thirds
Strict cost discipline reduces full year loss by two thirds - Q4 performance in line with guidance despite Omicron (in EUR million) Q4 ’21 Q4 ’20 Change in % FY ’21 FY ’20 Change in % Revenues 5,833 2,594 +125% 16,811 13,589 +24% Operating expenses 6,634 4,501 +47% 20,773 20,846 0% Of which fuel 965
Slide 8: Group Airlines: Significant progress made in reducing costs
Group Airlines: Significant progress made in reducing costs Operational KPIs vs. 2019 Adjusted EBIT in EUR million Comments ASK 40.2% -3,486 Leisure- and VFR-driven demand -4,674 Network Airlines recovery and cost savings reduce SLF 60.3% -22.3pts. operating loss EUR -3,142m, excl. restructuring
Slide 9: Lufthansa Cargo reaches record Adjusted EBIT, MRO recovers strongly, Catering returns to profits
Lufthansa Cargo reaches record Adjusted EBIT, MRO recovers strongly, Catering returns to profits Adjusted EBIT in EUR million Comments 1,493 772 Cargo tops prior-year record result FY’21 FY ’20 because of further yield increase and cost efficiency improvements 210 Lufthansa Technik benefits from
Slide 10: Cash focus deeply embedded: FY Adjusted free cash flow close to zero
Cash focus has become deeply embedded in the organization: FY Adjusted free cash flow close to zero before the payment of deferred taxes Full year 2021 Adjusted EBIT / Adjusted free cash flow in EUR million 1,187 (1,119) -90 (183) 160 -45 (810) -855 2,259 -2,349 Adjusted EBIT Depreciation Adjusted O
Slide 11: Significant progress made in strengthening the balance sheet in 2021
Significant progress made in strengthening the balance sheet in 2021 STRENGTHENING OF BALANCE SHEET Return to profitability Repayment stabilization measures Divestments Secured 2.7 billion of sustainable cost Concluded EUR 2.2 billion equity raise Initiated comprehensive portfolio review reduc
Slide 12: Successful financing measures enable full repayment of stabilization measures
Successful financing measures enable full repayment of stabilization measures in Germany and ensure high levels of liquidity in EUR million Comments (3,300) 6,100 Year-end liquidity above long-term target corridor of EUR 6-8 billion 11.1bn (5,500) Successful capital increase, issue of 2,100 (855
Slide 13: Equity financing and favorable interest rate environment strengthen the balance sheet
Equity financing and favorable interest rate environment strengthen the balance sheet Net debt in EUR million Pension provisions in EUR million Shareholder equity in EUR million 9,922 9,023 4,490 9,531 6,676 1,387 9,023 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020 Dec 31, 2021 Ca
Slide 14: EUR 2.7bn of targeted EUR 3.5bn cost savings secured
EUR 2.7bn of targeted EUR 3.5bn cost savings secured Targeted sustainable cost savings 2020 - 2024 in EUR billion Measures implemented and recognized in P&L Reduce labor costs Measures implemented, not yet recognized in P&L Measures not yet implemented Headcount reduction 1.8bn Productivity incr
Slide 15: Unprecedented workforce reduction in Germany successfully completed
Unprecedented workforce reduction in Germany successfully completed Number of Group employees Personnel reduction in Germany since January 2021 -24% Contracted to leave in 2022 - 2024 -20% Already left 3,000 excl. LSG EU 138,000 105,000 7,000 Dec 31, 2019 Dec 31, 2021 Personnel reduction by work gro
Slide 16: Shift of capacity to airlines with lower costs and higher productivity
Shift of capacity to airlines with lower costs and higher productivity will drive unit cost declines Scheduled short-haul fleet for July 2022 number of aircraft in % of 2019 Comment ~110% Regional and leisure-focused Group airlines ~95% offer significant cost and productivity advantages over Netwo
Slide 17: External cost pressures expected to be lower compared to peers
External cost pressures expected to be lower compared to peers and compensated by pricing and cost savings Airport charges in 2022 Expected cost inflation in other cost areas in 2022 Airport charges in European hubs vs. 2021 Other fees and charges (incl. handling, ATC) 60.0% + 5-8% Wages Increase be
Slide 18: Fuel hedging limits the impact of higher oil price
Fuel hedging limits the impact of higher oil price Hedging portfolio as of February 28, 2022 Expected fuel cost sensitivity after hedging (FY 2022)1 ø Market price crude oil 2 117 800 650 550 450 400 Q1 Q2 Q3 Q4 FY 2022 107 500 400 300 200 100 97 200 100 5,600 -100 -150 Hedge 87 74% 65% 61% 55% 63%
Slide 19: Operating result forecasted to improve significantly over the course of 2022
Operating result forecasted to improve significantly over the course of 2022 Full Year 2022 2024 targets Capacity (ASK): Adj. EBIT margin target: At least 70% of 2019 ASK at least 8% Adjusted EBIT: Adj. ROCE (excl. cash) : Q1 to be significantly negative at least 10% Significant improvement thereaft
Slide 20: FY 2021 Results
FY 2021 Results Carsten Spohr, CEO Frankfurt, 03 March 2022
Slide 21: New Normal. New Strength.
New Normal. New Strength. CONNECTING PEOPLE, CULTURES AND ECONOMIES IN A SUSTAINABLE WAY Strong demand Operational Premium Portfolio recovery ramp up customer enhancements experience Capital Operational increase ramp up Sustainability and maximum flexibility Page 21
Slide 22: Customer demand has recovered to near pre-crisis levels
Customer demand has recovered to near pre-crisis levels Group Airlines new bookings by week Short-haul and Transatlantic are leading the recovery 2019 120+ leisure destinations offered in summer 2022 2022 Leisure demand drives outperformance of premium Strong yield performance expected to continue C
Slide 23: The Group is benefitting from high demand heading into summer
The Group is benefitting from high demand heading into summer Expected capacity offered by Group airlines ASK in % of 2019 Flexible adjustment of capacity depending on return of demand ~95% >90% ~85% ~85% >70% ~60% ~60% Q1 2022 Summer 2022/ FY 2022 … FY 2024 Q3 2022 Total Short-haul Ramp-up flexibil
Slide 24: Clear action plan in implementation to meet the demands of our customers
Clear action plan in implementation to meet the demands of our customers Accelerating process improvement Examples along customer journey Improve Upgrade of hub infrastructure and service center performance lounges Automation of document Optimize verification airport processes Shorten call cen
Slide 25: Lufthansa Group is leading the industry with its green agenda
Lufthansa Group is leading the industry with its green agenda More green offerings for customers Target 50% “green offerings” by 2025 Fleet renewal ongoing Target 120 new technology aircraft until 2025, 180 until 2030 Our ultimate goal SAF leader Net carbon neutral Initial USD 250mn SAF investment u
Slide 26: Portfolio management aims at maximizing the value of the Group and its businesses
Portfolio management aims at maximizing the value of the Group and its businesses Core business Continued preparations Conclusion of sale for partial divestiture/ IPO agreement once full value can be realized Transaction targeted in the course of 2023 Page 26
Slide 27: Lufthansa Group joins Aviation Alliance Fit for 55
Lufthansa Group joins “Aviation Alliance Fit for 55” European climate protection … Alliance supports the EU’s ambitious climate targets for aviation BUT: need to effectively reduce emissions, avoid carbon leakage and ensure international level playing field … must not distort competition. “Fit
Slide 28: Lufthansa Group is set to emerge from the crisis as a structural winner
Lufthansa Group is set to emerge from the crisis as a structural winner New Normal. New Strength. Delivering on our promise. New Lufthansa Group. More efficient, faster and more flexible Retained more than 100k jobs and leading position Creating value. Connecting the world, Building on the best prot
Slide 29: Appendix - supplementary information
Appendix - supplementary information- Page 29
Slide 30: Traffic Data
Traffic Data 9M vs.2019 Oct vs.2019 Nov vs.2019 Dec vs.2019 Q4 vs.2019 FY vs.2019 Passengers in 1,000 29,664 -73.5% 7,261 -45.6% 5,360 -48.3% 4,664 -52.6% 17,285 -48.5% 46,949 -67.7% Available seat-kilometers (m) 94,073 -65.7% 18,033 -43.5% 16,195 -38.8% 16,838 -35.8% 51,066 -39.6% 145,139 -59.5% Re
Slide 31: Operating KPIs of Network Airlines by region vs. 2019
Operating KPIs of Network Airlines by region vs. 2019 (unless stated otherwise) Total Q4’21 FY’21 Europe Q4’21 FY’21 Asia / Pacific Q4’21 FY’21 Number of flights -37.6% -59.9% ASK -27.9% -53.4% ASK -75.0% -80.0% ASK -40.5% -59.8% RPK -34.7% -58.7% RPK -84.8% -90.1% RPK -52.9% -70.6% SLF -7.2pts. -8.
Slide 32: Operating KPIs of Eurowings vs. 2019
Operating KPIs of Eurowings vs. 2019 (unless stated otherwise) Total Q4’21 FY’21 Number of flights -49.0% -68.8% ASK -29.9% -57.0% RPK -37.3% -61.6% SLF -8.6pts. -8.7pts. Yield -22.1% -14.8% Yield vs 2020 +29.6% +1.0% Yield ex currency vs 2020 +29.6% +0.9% RASK -23.2% -18.1% RASK ex currency vs 2020
Slide 33: Calculation of operational airline KPIs
Calculation of operational airline KPIs Network Airlines, FY 2021 Eurowings, FY 2021 1) Traffic revenues (€m) 6802 1) Traffic revenues (€m) 820 2) Not assignable (€m) 708 2) Not assignable (€m) 136 Yield Yield = 3) Basis for Yield (1)–(2) (€m) 6,094 = 3) Basis for Yield (1)–(2) (€m) 684 4) RPK (m) 1
Slide 34: Adjusted EBIT by segment
Adjusted EBIT by segment Adjusted EBIT (in EUR m) Q4 ’21 Q4 ’20 Change in % FY ’21 FY ’20 Change in % Network Airlines -586 -1,024 +42.8% -3,486 -4,674 +25.4% Eurowings -86 -237 +63.7% -230 -703 +67.3% 552 326 +69.3% 1,493 772 +93.4% 47 -175 nmf. 210 -383 nmf. -25 -15 -66.7% 27 -284 nmf. Others -232
Slide 35: Group P&L
Group P&L Lufthansa Group (in EUR m) Q4 ’21 vs. Q4 ’20 FY ’21 vs. FY ’20 Revenues 5,833 +124.9% 16,811 +23.7% Total operating income 6,358 +95.8% 18,422 +18.1% Operating expenses 6,634 +47.4% 20,773 -0.2% Of which fees & charges 765 +118.6% 2,155 +20.0% Of which fuel 965 +264.2% 2,409 +28.5% Of whic
Slide 36: Adjusted EBIT / Net Income FY 2021
Adjusted EBIT / Net Income FY 2021 in EUR million Total EBIT adjustments: +33 (100) 133 413 -2,191 -2,349 151 2 (441) Adjusted Impairments Result of non- Interest result Profit/loss Tax result Other Net EBIT current asset attributable to Income disposals, other minority interests write-offs/write- b
Slide 37: Cash flow statement
Cash flow statement Lufthansa Group (in m EUR) FY’21 vs. FY ’20 EBT (earnings before income taxes) -2,606 +6,025 Decrease related to non-recurrence of Depreciation & amortization (incl. repairable MRO materials) 2,255 -2,297 1 1 crisis-related impairments in 2020 and Net proceeds from disposal of no
Slide 38: Liabilities from unflown flight documents
Liabilities from unflown flight documents in EUR million 5,602 5,798 4,499 4,499 4,071 4,487 3,340 3,089 3,074 2,729 2,064 2,093 Mar 31, Mar 31, Mar 31, Jun 30, Jun 30, Jun 30, Sep 30, Sep 30, Sep 30, Dec 31, Dec 31, Dec 31, 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 Page 38
Slide 39: Fleet overview
Fleet overview thereof Change since Aircraft Type LH LX OS SN EW LCAG Group fleet Lease 31 Dec 2020 Airbus A220 30 30 +1 Airbus A319 44 16 36 96 27 -10 Airbus A320 97 30 29 16 56 228 32 -7 Airbus A321 74 10 6 2 92 1 +1 Airbus A330 25 16 9 50 8 -2 Airbus A340 34 9 43 Airbus A350 17 17 1 Airbus A380 1
Slide 40: 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 41: Maturity profile of borrowings as of December 31, 2021
Maturity profile of borrowings as of December 31, 2021 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 Dec 31 - – predominantly scheduled re
Slide 42: Reporting changes from Q1 2022
Reporting changes from Q1 2022 1 Adjusted EBIT 2 Adjusted ROCE 3 Segment reporting EBIT Previously Previously + Impairments of non-current assets Adj. EBIT + Interest on liquidity – - Reversal of impairment losses on assets Tax (25% of Adj. EBIT + Interest on liquidity) +/- Book gains/losses Ø Capit
Slide 43: Reporting changes from Q1 2022 (cont.)
Reporting changes from Q1 2022 (cont.) 4 Adjusted Free Cash Flow – M&A activities 5 Operating Cash Flow – pension cash flows Free Cash flow Operating Cash Flow - Repayment portion of IFRS 16 leasing expenses From Q1 2022: Cashflow from/used for Cash flows relating investing activities (Net Capex) to