Slide 1: Full Year 2023 Results
Internal Full Year 2023 Results Carsten Spohr, CEO Remco Steenbergen, CFO Frankfurt, 7 March 2024
Slide 2: Review 2023
Internal Full Year 2023 Results Carsten Spohr, CEO Review 2023 Frankfurt, 7 March 2024
Slide 3: A record summer made 2023 the third most profitable year in the Group's history
A record summer made 2023 the third most profitable year in the Group’s history Revenues Adjusted EBIT EUR 35.4bn EUR 2.7bn +15% vs. 2022 +76% vs. 2022 Passengers Adj. ROCE Regularity 123m 98% +20% vs. 2022 13.1% +/-0 pts vs. 2022 Page 3
Slide 4: Focus on the synergetic core of the Group further sharpened
Focus on the synergetic core of the Group further sharpened Active consolidation Airline Synergetic core business aviation services 1) Passenger Airlines … MRO, IT Services, Portfolio cleanup Aviation Training … 2) Lufthansa City Airlines 3) ✓ Network, Market and Cost Synergies 1) Acquisition of 41%
Slide 5: Our people are key to our positioning as a premium airline
Our people are key to our positioning as a premium airline # Applications Employee 300,000 Engagement1) back at pre- # Gross Hires crisis level 13,000 Customer Satisfaction Fluctuation Rate Share of positive2) ratings by customers for cabin staff: 7% (2022: 15%) 82% 1) Based on an annual voluntary e
Slide 6: Increasing customer satisfaction is our number one priority in 2024
Increasing customer satisfaction is our number one priority in 2024 Offer Reliable Operations • Schedule regularity • Punctuality • Baggage handling Empower our Customers Digitally Customer • Seamless digital processes • Expansion of self-service options • Online connectivity on-board Underpin our P
Slide 7: The Group embarks on the largest fleet modernization in its history
The Group embarks on the largest fleet modernization in its history Aircraft Deliveries in 2024 Orderbook 2024 – 2032 >30 new planes expected in 2024 >250 new aircraft on order A350 L 1x 42 O 777F 787 34 N G - H 777 20 A U 8x >13 777F 8 L A320 Boeing A220 40 S 787 H O 8x A320neo 46 R T A350 - A321ne
Slide 8: Lufthansa Group targets significant growth in the use of SAFs
Lufthansa Group targets significant growth in the use of SAFs by stimulating demand, supporting R&D and securing access to production capacity Increasing SAF availability through partnerships Stimulating demand via scaling up Green Fares Biogenic SAF ▪ First airline to offer fares including SAFs and
Slide 9: Financial Overview
Internal Full Year 2023 Results Remco Steenbergen, CFO Financial Overview Frankfurt, 7 March 2024
Slide 10: Lufthansa Group achieves third highest operating profit ever in 2023
Lufthansa Group achieves third highest operating profit ever in 2023 (in EUR million) FY23 FY22 Change in % Revenues 35,442 30,895 +15 Operating income 38,429 33,268 +16 Operating expenses 35,960 31,771 +13 Of which fuel 7,931 7,601 +4 Of which staff 8,310 7,223 +15 Of which depreciation 2,228 2,199
Slide 11: Passenger Airlines: Strong demand leads to significant earnings growth
Passenger Airlines: Strong demand leads to significant earnings growth Operational KPIs Adjusted EBIT/(margin) Comments in EUR million ▪ Load factors and yields grow despite 2023 vs. 2022 vs. 2019 the double-digit increase in capacity, reflecting the strength of demand ASK 300,582 +15.9% -16.2% ▪ St
Slide 12: All Group airlines achieve positive results in 2023
All Group airlines achieve positive results in 2023 ASK Revenue Adj. EBIT Adj. EBIT FY 2023 vs. 2019 [m EUR] [m EUR] margin Lufthansa Airlines 79.6% 16,168 854 5.3% SWISS 87.4% 5,905 809 13.7% Austrian Airlines 89.3% 2,346 127 5.4% Brussels Airlines 82.4% 1,537 53 3.4% Eurowings 99.2% 2,592 205 7.9%
Slide 13: Air cargo market normalizes - record result at Lufthansa Technik
Air cargo market normalizes - record result at Lufthansa Technik Adjusted EBIT/(margin) in EUR million Comments 219 1,600 (7.4%) (34.6%) ▪ Lufthansa Cargo generates an operating margin in line with the FY23 FY22 overall Group, following exceptionally strong performance in the prior two boom years in
Slide 14: Free cash flow performance driven by strong operating result
Free cash flow performance driven by strong operating result, increases in bookings and strict working capital management FY2023 Adjusted EBIT / Adjusted free cash flow in EUR million 278 (243) 4.945 2.228 (2.780) 2.682 (319) 1.846 Adjusted EBIT D&A Trade working Other1) Operating Net CAPEX Repaymen
Slide 15: A strong balance sheet enables the resumption of dividend payments
A strong balance sheet enables the resumption of dividend payments Liquidity Net debt and net pension liabilities1) EUR billion EUR billion Comments Decrease in 10.4 10.4 pension ▪ Strong free cash flow generation 2.1 2.1 8.9 discount rate reduces the Group’s leverage Target liquidity: by 0.6%p. 8.4
Slide 16: Lufthansa Group is committed to continue to create value for shareholders
Lufthansa Group is committed to continue to create value for shareholders Value Creation Adj. ROCE Profitable growth 1 Adj. EBIT margin >8% ROCE > WACC +5.5pts Strong Free Cash Flow Strict working capital management 2 Profitable investments Consistent dividend payments 13.1% Financial Resilience 7.6
Slide 17: Only moderate increase in fuel costs expected in FY24
Only moderate increase in fuel costs expected in FY24 at current price levels LH fuel price exposure is well hedged1) in 2024 Expected fuel price sensitivity after hedging (FY 2024) 155 LH mixed JET price in USD/to. Q1 FY 2024 1,103 1,136 1,169 1,203 1,236 145 135 1,035 1,068 1,102 1,135 1,168 Hedge
Slide 18: The Group expects earnings in FY24 to remain stable versus the prior year
The Group expects earnings in FY24 to remain stable versus the prior year Capacity increase to c. 94% of 2019 CASK (ex fuel) stable vs. 2023 Adj. EBIT stable vs. 2023 Net CAPEX between EUR 2.5 - 3.0bn Adj. Free Cashflow at least EUR 1.5bn (subject to continued normal development of customer prepayme
Slide 19: Commercial and Strategic Outlook
Internal Full Year 2023 Results Carsten Spohr, CEO Commercial and Strategic Outlook Frankfurt, 7 March 2024
Slide 20: The capacity growth planned by the Group's airlines will narrow the gap to competitors
The capacity growth planned by the Group’s airlines will narrow the gap to competitors in a still significantly supply-constrained market Capacity (in ASK vs. 2019, Jan – Oct 2024e) Industry-wide bottlenecks persist Europe North Atlantic Delays in new aircraft deliveries & +10% +16% shortages in sup
Slide 21: Booking demand is up solidly compared to the prior year
Booking demand is up solidly compared to the prior year Growth in available seats and bookings Comments vs. 2023 Booked SLF ▪ Demand continues to be strong and grows at least in 69% 50% 38% line with the Group’s increase in capacity ▪ European short-haul and Transatlantic expected to drive performan
Slide 22: Lufthansa Cargo is well positioned to benefit from an upswing in air freight
Lufthansa Cargo is well positioned to benefit from an upswing in the global air freight market Seizing opportunities from macro 125% recovery Expanding the Demand short-haul Supply freighter business 75% 2021 2022 2023 Improving Exploiting operational high Improving stability e-commerce cost growth
Slide 23: Lufthansa Technik launches growth program Ambition 2030
Lufthansa Technik launches growth program “Ambition 2030” Ambition 2030 Target Picture Increased market Preferred share in Americas and APAC Established defense business access to material and IP GLOBAL MRO Leader in Digital Tech DIGITAL Digitally enabled 01 Digitally transformed Ops through #1 1101
Slide 24: In 2024, we will continue to deliver on our promises
In 2024, we will continue to deliver on our promises t 2024 be the year of delivery – where all stakeholders get their fair share The airline of choice for The best employer for our customers based on The highest value for the best people in our truly premium travel our shareholders. industry. exper
Slide 25: Appendix - supplementary information
Appendix - supplementary information- Page 25
Slide 26: Traffic Data
Traffic Data Oct vs.2019 Nov vs.2019 Dec vs.2019 Q4 vs.2019 FY23 vs.2019 Passengers in 1,000 12,017 -10.0% 8,920 -13.9% 8,388 -14.8% 29,325 -12.6% 122,535 -15.7% Available seat-kilometers (m) 28,389 -11.0% 23,613 -10.8% 22,933 -12.6% 74,935 -11.4% 300,582 -16.2% Revenue seat-kilometers (m) 23,534 -1
Slide 27: Operating KPIs of Passenger Airlines by region vs. 2019
Operating KPIs of Passenger Airlines by region vs. 2019 (unless stated otherwise) Total FY’23 Europe FY’23 Asia / Pacific FY’23 Number of flights -20.5% ASK -8.6% ASK -35.6% ASK -16.2% RPK -5.5% RPK -36.2% RPK -15.8% SLF +2.6pts. SLF -0.8pts. SLF +0.4pts. RASK incl. currency1) +14.4% RASK incl. curr
Slide 28: Operating KPIs of Passenger Airlines by region vs. 2019
Operating KPIs of Passenger Airlines by region vs. 2019 (unless stated otherwise) Total Q4’23 Europe Q4’23 Asia / Pacific Q4’23 Number of flights -18.0% ASK -4.2% ASK -26.2% ASK -11.4% RPK -1.4% RPK -27.1% RPK -11.7% SLF +2.3pts. SLF -1.1pts. SLF -0.3pts. RASK incl. currency1) +9.8% RASK incl. curre
Slide 29: Calculation of operational airline KPIs
Calculation of operational airline KPIs Passenger Airlines, FY 2023 1) Traffic revenues (€m) 26,701 1) Total Revenues (€m) 28,337 2) Not assignable (€m) 2,802 2) Other operating income (€m) 1,306 Yield = 3) Basis for Yield (1)–(2) (€m) 23,899 3) Reversal of provisions (€m) 205 RASK 4) RPK (m) 1) 249
Slide 30: Group P&L
Group P&L Lufthansa Group (in EUR m) Q4’23 vs. Q4’22 FY’23 vs. FY’22 Revenues 8,761 +5% 35,442 +15% Total operating income 9,683 +6% 38,429 +16% Operating expenses 9,389 +10% 35,960 +13% Of which fees & charges 1,127 +15% 4,487 +20% Of which fuel 2,045 +3% 7,931 +4% Of which staff 2,263 +16% 8,310 +
Slide 31: EBIT / Adjusted EBIT bridge FY 2023
EBIT / Adjusted EBIT bridge FY 2023 in EUR million 2,682 2,669 (46) (39) 101 (29) Adjusted EBIT Impairment of non- M&A related expenses Net book gains Others EBIT current assets / assets held for sale Page 31
Slide 32: Adjusted EBIT / Net Income Full Year 2023
Adjusted EBIT / Net Income Full Year 2023 in EUR million 2,682 (13) (348) (4) (380) (248) 1,673 (16) Adjusted EBIT adjustments Interest result Others Tax result Profit/loss from Profit/loss Net EBIT discontinued attributable to Income operations minority interests Page 32
Slide 33: Performance of Group Airlines in Q4 2023
Performance of Group Airlines in Q4 2023 ASK Revenue Adj. EBIT Adj. EBIT Q4 2023 Performance vs. 2019 [m EUR] [m EUR] margin Lufthansa Airlines 86.1% 4,072 64 1.6% SWISS 91.4% 1,456 133 9.1% Austrian Airlines 91.6% 541 -17 -3.1% Brussels Airlines 81.7% 353 -6 -1.7% Eurowings 100.8% 572 58 10.1% Pass
Slide 34: Cash flow statement
Cash flow statement Lufthansa Group (in m EUR) FY’ 23 vs. FY’ 22 EBT (earnings before income taxes) 2,055 +1,005 1 Depreciation & amortization (incl. repairable MRO materials) 2,392 -52 Net proceeds from disposal of non-current assets 144 +174 1 Significant improvement in the operating result compar
Slide 35: 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 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% Profit & Loss Revenues
Slide 36: Maturity profile of borrowings as of December 31, 2023
Maturity profile of borrowings as of December 31, 2023 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; as draw