Slide 1: Q2 2024 Results
Q2 2024 Results Carsten Spohr, CEO Michael Niggemann, Interim-CFO Frankfurt, 31 July 2024
Slide 2: Review Q2
Q2 2024 Results Carsten Spohr, CEO Review Q2 Frankfurt, 31 July 2024
Slide 3: Second quarter characterized by solid unit cost performance and industry-wide pressure on fares
Second quarter characterized by solid unit cost performance and industry- wide pressure on fares ASK Revenues Adjusted EBIT +11% vs. 2023 EUR 10.0bn EUR 0.7bn +7% vs. 2023 -0.4bn vs. 2023 Unit revenues under Flat unit Allegris entry pressure cost into service Financial impact of CASK >250 flights EU
Slide 4: Lufthansa Group has achieved major strategic milestones
Lufthansa Group has achieved major strategic milestones Allegris ITA Airways City Airlines AirPlus Page 4
Slide 5: Financial Overview
Q2 2024 Results Michael Niggemann, Interim-CFO Financial Overview Frankfurt, 31 July 2024
Slide 6: Q2 revenues increased by 7% vs. prior year, Adjusted EBIT decreased by 37%
Variante A Q2 revenues increased by 7% vs. prior year, Adjusted EBIT decreased by 37% (in EUR million) Q2’24 Q2’23 Change in % Revenues 10,007 9,389 +7% Operating expenses 9,969 9,064 +10% Of which fuel 2,148 1,934 +11% Of which staff 2,228 2,062 +8% Of which depreciation 571 554 +3% Adjusted EBIT 6
Slide 7: Evolvement of LHG yields in Q2 2024 differs between traffic regions
Variante A Evolvement of LHG yields in Q2 2024 differs between traffic regions and is shaped by market environment and structural shift in demand LHG Growth rates vs. 2023 Europe Asia / Pacific North America 10.2% 27.7% 10.1% 15.5% 20.6% 11.4% -0.2%p -3.7% -2.7%p -2.6% ASK SLF Yield ASK SLF Yield So
Slide 8: Passenger Airlines: Inefficiencies at Lufthansa Airlines prevent the Group from fully exploiting its fix cost leverage
Passenger Airlines: Inefficiencies at Lufthansa Airlines prevent the Group from fully exploiting its fix cost leverage Passenger Airlines Passenger Airlines Lufthansa Comments excl. LH Airlines Airlines ▪ Strong capacity increase by around 11% relative to prior year ▪ Yields decrease by 3.7% year-on
Slide 9: Comprehensive turnaround program for Lufthansa Airlines is being launched
Comprehensive turnaround program for Lufthansa Airlines is being launched FIELDS OF ACTION ASSESSMENT MODERNIZATION INITIATIVES Enhance premium positioning, e.g. continuous Market challenges invest into product and service improvements ▪ Increased competitive pressure Optimized Optimize our network
Slide 10: Late delivery of long-haul new technology with significant annual three-digit million earnings impact
Late delivery of long-haul new technology with significant annual three-digit million earnings impact – also short-haul aircraft with delays LHG long-haul fleet – actuals vs. plan Financial impact 2024 actual vs. 2019 plan (for 2024) Fewer new Extended Reduced technology operation of growth vs. airc
Slide 11: Lufthansa Technik result is record high – Lufthansa Cargo is back on track
Lufthansa Technik result is record high – Lufthansa Cargo is back on track Adjusted EBIT/(margin) in EUR million Comments ▪ Record results for Lufthansa Technik – 203 strong demand for MRO services (10.8% 156 offsetting supply chain disruptions and (9.8%) cost inflation ▪ Cargo profits on same level
Slide 12: Free cash flow in the first half of 2024 was driven by strong incoming bookings
Free cash flow in the first half of 2024 was driven by strong incoming bookings for the summer and CAPEX shift H1 ‘24 Adjusted EBIT / Adjusted free cash flow in EUR million Q2 ’24 (856) 2,788 Adj. FCF: 204 EUR 573m 2,406 (1,741) 878 (169) 1,197 (163) Adjusted EBIT D&A Liability from Trade Other Oper
Slide 13: 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 Increase in 10.4 10.6 pension ▪ Leverage ratio of 2.03) – 8.4 discount rate2) reductions in net debt and 2.1 2.5 Target liquidity: by
Slide 14: Fuel cost expectation decreased by EUR 0.2 bn compared to April guidance
Fuel cost expectation decreased by EUR 0.2 bn compared to April guidance of EUR 8.3 billion 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 July 26 Q3 FY 2024 120 937 945 952 960 969 110 930 937 945 952 960 H
Slide 15: Full year outlook assumes unchanged capacity and cost guidance
Full year outlook assumes an unchanged capacity and cost guidance, while Adjusted EBIT range mainly depends on RASK variability Q3 2024 FY 2024 ~92% of 2019 Capacity ~96% of 2019 (including reductions in winter schedule) RASK Low single-digit decline vs. PY Low to mid single-digit decline vs. PY Low
Slide 16: Outlook
Q2 2024 Results Carsten Spohr, CEO Outlook Frankfurt, 31 July 2024
Slide 17: Lufthansa Group making significant improvements to enhance our Customer Journey
Lufthansa Group making significant improvements to enhance our Customer Journey Allegris ✓ 4th Allegris aircraft in service Operational customer communication revised 300+ new employees for customer ✓ 100 aircraft with Allegris in ✓ more timely live chats to complement the next four years ✓ more pre
Slide 18: Lufthansa Technik will continue its track record by Ambition 2030
Lufthansa Technik will continue its unprecedented track record as key source of value creation by “Ambition 2030” Global expansion Digital push Defense business Main target: remain global MRO leader – TechOps ecosystem expanded into Partnerships to strengthen defense underlined by global production
Slide 19: Shaping aviation for generations to come
Shaping aviation for generations to come Turnaround at Allegris & SWISS Senses Internationalization Lufthansa Airlines enhances customer bolsters our Multi- ensures a profitable experience Hub system core business Page 19
Slide 20: Appendix - supplementary information
Appendix - supplementary information- Page 20
Slide 21: Traffic Data
Traffic Data Apr vs. 2023 May vs. 2023 Jun vs. 2023 Q2 vs. 2023 vs. 2019 Passengers in 1,000 11,081 8.3% 12,219 8.7% 12,640 6.9% 35,939 7.9% -9.1% Available seat-kilometers (m) 27,491 10.6% 29,652 12.5% 29,802 9.2% 86,945 10.7% -8.6% Revenue seat-kilometers (m) 22,298 9.4% 24,012 10.9% 25,150 8.1% 7
Slide 22: Operating KPIs of Passenger Airlines by region vs. 2023
Operating KPIs of Passenger Airlines by region vs. 2023 (unless stated otherwise) Total Q2’24 Europe Q2’24 Asia Pacific Q2’24 Number of flights +6.5% ASK +10.2% ASK +20.6% ASK +10.7% RPK +10.0% RPK +19.5% RPK +9.4% SLF -0.2%p SLF -0.8%p SLF -1.0%p RASK incl. currency1) -3.9% RASK incl. currency 1) -
Slide 23: Calculation of operational airline KPIs
Calculation of operational airline KPIs Passenger Airlines, Q2 2024 1) Traffic revenues (€m) 7,556 1) Total Revenues (€m) 8,017 2) Not assignable (€m) 695 2) Other operating income (€m) 248 Yield = 3) Basis for Yield (1)–(2) (€m) 6,861 3) Reversal of provisions (€m) 48 RASK 4) RPK (m) 1) 71,460 4) F
Slide 24: Performance of Group Airlines in Q2 2024
Performance of Group Airlines in Q2 2024 ASK Revenue Adj. EBIT Adj. EBIT Q2 2024 Performance vs. 2019 [m EUR] [m EUR] margin Lufthansa Airlines 86.5% 4,514 213 4.7% SWISS 98.0% 1,665 246 14.8% Austrian Airlines 92.4% 667 60 9.0% Brussels Airlines 76.9% 394 11 2.8% Eurowings 118.6% 829 50 6.0% Passen
Slide 25: Group P&L
Group P&L Lufthansa Group (in EUR m) Q2’24 vs. Q2’23 Revenues 10,007 +7% Total operating income 10,632 +5% Operating expenses 9,969 +10% Of which fees & charges 1,326 +10% Of which fuel 2,148 +11% Of which staff 2,228 +8% Of which depreciation 571 +3% Result from equity investments 23 nmf. Adjusted
Slide 26: EBIT / Adjusted EBIT bridge Q2 2024
EBIT / Adjusted EBIT bridge Q2 2024 in EUR million 686 (13) 659 (8) (6) Adjusted EBIT Impairment of non-current Net book gains Others EBIT assets / assets held for sale Page 26
Slide 27: Cash flow statement
Cash flow statement Lufthansa Group (in m EUR) Q2’ 24 vs. Q2’ 23 EBT (earnings before income taxes) 572 -489 1 Depreciation & amortization (incl. repairable MRO materials) 608 +46 Significant decrease in the operating result Net proceeds from disposal of non-current assets 8 +24 1 compared to the pr
Slide 28: 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 29: Maturity profile of borrowings as of June 30, 2024
Maturity profile of borrowings as of June 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; as drawn on