Slide 1: Third Quarter 2023 Results
Third Quarter 2023 Results Carsten Spohr, CEO Remco Steenbergen, CFO Frankfurt, 2 November 2023 lufthansagroup.com
Slide 2: Third Quarter 2023 Results
Third Quarter 2023 Results Carsten Spohr, CEO Frankfurt, 2 November 2023 lufthansagroup.com
Slide 3: The Third Quarter result makes this summer the most profitable ever
The Third Quarter result makes this summer the most profitable ever in the Group’s history Revenues Adjusted EBIT EUR 10.3bn EUR 1.5bn +8% vs. 2022 +31% vs. 2022 Passengers Yield Regularity 38m +2% 98% +14% vs. 2022 vs. 2022 +1pts. vs. 2022 Page 3
Slide 4: Demand remains strong also beyond summer
Demand remains strong also beyond summer – with plenty of growth opportunities remaining Bookings Demand recovery by customer segment Pax in % vs. 2022 Jul & Aug 2023, Pax in % vs. 2019 Around 80% of total 100% VFR* bookings expected in 95% Q4 already received 95% Ind. Leisure 94% 113 115 114 118 10
Slide 5: Planned capacity in 2024 compares favorably to demand recovery
Lufthansa Group’s planned capacity in 2024 compares favorably to the recovery in customer demand, supporting the unit revenue outlook North Atlantic China ~105% Europe ~80% ~100% ~110% ~65% ~105% APAC ex-China ~95% ~95% Estimated regional split of the RoW APAC Group’s 2024 10%p. capacity growth capa
Slide 6: The Group is building on its competitive advantages
The Group is building on its competitive advantages in a capacity-constrained industry Industry-wide bottlenecks persist Lufthansa Group has better access to scarce resources Delays in new aircraft deliveries & Delivery of c.30 NewGen shortages in the supply of spare parts aircraft expected in 2024
Slide 7: Customer-focused Innovation
New Allegris Cabins Customer-focused Innovation Terminal 6 Digital at JFK Offers Page 7
Slide 8: Lufthansa Group advocates for more research and investment in sustainable aviation fuels
Lufthansa Group advocates for more research and investment in the field of sustainable aviation fuels (SAF) to enable the decarbonization of aviation LHG pursues ambitious climate goals Significant ramp-up of SAF production required CO2 CO2-neutral -50% 2019 2030 2050 Fleet Renewal Competitive cost
Slide 9: Lufthansa Group is executing rapidly on its transformation
Lufthansa Group is executing rapidly on its transformation Divesting non-core assets Consolidating the European Market LSG: 41% Investment in ITA Airways: Sale Ongoing dialogue with EU Commission, closed in expected closing in early 2024 October AirPlus: Closing Transformation into an Exploiting the
Slide 10: Third Quarter 2023 Results
Third Quarter 2023 Results Remco Steenbergen, CFO Frankfurt, 2 November 2023 lufthansagroup.com
Slide 11: All Q3 key figures exceed the previous year's level
All Q3 key figures exceed the previous year's level (in EUR million) Q3 ’23 Q3 ’22 Change in % Revenues 10,275 9,537 +8 Operating expenses 9,561 9,114 +5 Of which fuel 2,266 2,475 -8 Of which staff 2,066 1,927 +7 Of which depreciation 558 554 +1 Adjusted EBITDA 2,026 1,678 +21 Adjusted EBIT 1,468 1,
Slide 12: Passenger Airlines: Very strong performance over summer
Passenger Airlines: Very strong performance over summer Operational KPIs Adjusted EBIT/(margin) Comments in EUR million ▪ All Group airlines report double-digit Q3 ’23 vs. 2022 vs. 2019 Adj. EBIT margins as demand remains robust, especially in (premium) leisure ASK 87,686 +12.9% -12.0% ▪ Performance
Slide 13: SWISS, Austrian Airlines and Brussels Airlines achieve record results in Q3
SWISS, Austrian Airlines and Brussels Airlines achieve record results in Q3 ASK Revenue Adj. EBIT Adj. EBIT Q3 Performance vs. 2019 [m EUR] [m EUR] margin Lufthansa German Airlines -17.4% 4,755 641 13.5% SWISS -8.5% 1.703 327 19.2% Austrian Airlines -7.1% 741 129 17.4% Brussels Airlines -17.5% 479 7
Slide 14: Lufthansa Technik on course for record result – Cargo demand stabilizing
Lufthansa Technik on course for record result – Cargo demand stabilizing Adjusted EBIT/(margin) in EUR million Comments 331 (29.0%) ▪ Cargo business impacted by weak 1 demand in the global air cargo market Q3 ’23 Q3 ’22 in a seasonally weak quarter ▪ Stabilization of Cargo yields (Q3: +39% vs. 2019)
Slide 15: Free cash flow performance driven by strong operating result
Free cash flow performance driven by strong operating result, booking increases and strict working capital management YTD Adjusted EBIT / Adjusted free cash flow in EUR million (345) 186 4.320 972 (430) Q3 FCF: 1.657 (2,415) EUR 592m 2.280 (242) 1.663 Adjusted D&A Liability from Receivables Remainin
Slide 16: Net debt and pension deficit decline further in Q3
Net debt and pension deficit decline further in Q3 Liquidity Net debt and net pension liabilities1 EUR billion EUR billion Comments Increase in 11.1 pension ▪ Strong free cash flow generation 10.4 2.1 8.9 discount rate reduces the Group’s leverage 2.1 Target liquidity: by 0.2%p. ratio (Adj. net debt
Slide 17: Fuel cost forecast for 2023 has increased; high hedge ratio protects 2024
The forecast for fuel costs in 2023 has increased due to the rising oil price - a high hedge ratio offers good protection in 2024 Expected fuel cost sensitivity after hedging (FY 2023)1 Fuel unit costs expected to be stable in 2024 115 Ø Market price crude oil2 0 +50 +50 +100 +150 Fuel unit costs 10
Slide 18: Financial outlook for 2023 reconfirmed
Financial outlook for 2023 reconfirmed Full Year 2023 Around 85% of 2019 levels Capacity (ASK) (Q4 2023: c. 91%) Adjusted EBIT Above EUR 2.6bn Adjusted Free Cashflow Significantly positive Net CapEx EUR 2.5 - 3.0bn Page 18
Slide 19: The Group is confident to further improve performance in 2024
The Group is confident to further improve performance in 2024 Key assumptions for 2024 Mid-single digit %-rate cost inflation (before mitigation measures) Solid demand growth Adjusted EBIT margin At least 8% Increase of capacity to c. 95% of 2019 Adjusted ROCE Further system-wide operational At leas
Slide 20: Appendix - supplementary information
Appendix - supplementary information- Page 20
Slide 21: Traffic Data
Traffic Data Jul vs.2019 Aug vs.2019 Sep vs.2019 Q3 vs.2019 Passengers in 1,000 12,979 -11.2% 12,682 -10.5% 12,510 -10.5% 38,171 -10.7% Available seat-kilometers (m) 29,724 -12.1% 29,401 -12.4% 28,562 -11.4% 87,686 -12.0% Revenue seat-kilometers (m) 25,915 -11.8% 25,280 -13.7% 24,420 -10.7% 75,615 -
Slide 22: Operating KPIs of Passenger Airlines by region vs. 2019
Operating KPIs of Passenger Airlines by region vs. 2019 (unless stated otherwise) Total Q3’23 Europe Q3’23 Asia / Pacific Q3’23 Number of flights -16.0% ASK -2.2% ASK -37.4% ASK -12.0% RPK -0.5% RPK -38.4% RPK -12.1% SLF +1.5pts. SLF -1.5pts. SLF -0.1pts. RASK incl. currency1) +14.5% RASK incl. curr
Slide 23: Calculation of operational airline KPIs
Calculation of operational airline KPIs Passenger Airlines, Q3 2023 1) Traffic revenues (€m) 8,108 1) Total Revenues (€m) 8,522 2) Not assignable (€m) 723 2) Other operating income (€m) 288 Yield = 3) Basis for Yield (1)–(2) (€m) 7,385 3) Reversal of provisions (€m) 19 RASK 4) RPK (m) 1 75,615 4) FX
Slide 24: Group P&L
Group P&L Lufthansa Group (in EUR m) Q3 ’23 vs. Q3 ’22 Revenues 10,275 +8% Total operating income 10,901 +7% Operating expenses 9,561 +5% Of which fees & charges 1.249 +16% Of which fuel 2,266 -8% Of which staff 2,066 +7% Of which depreciation 558 +1% Result from equity investments 128 +137% Adjuste
Slide 25: EBIT / Adjusted EBIT bridge Jan - Sep 2023
EBIT / Adjusted EBIT bridge Jan - Sep 2023 in EUR million 2,218 2,280 40 27 (2) (3) EBIT Impairment of non- M&A related expenses net Book gains Others Adjusted EBIT current assets / assets held for sale Page 25
Slide 26: Adjusted EBIT / Net Income Jan - Sep 2023
Adjusted EBIT / Net Income Jan - Sep 2023 in EUR million 2,280 (62) (248) 50 (366) 1,606 (36) (12) Adjusted EBIT Adjustments Interest result Others Tax result Profit/loss from Profit/loss Net EBIT discontinued attributable to Income operations minority interests Page 26
Slide 27: Adjusted EBIT by Airline
Adjusted EBIT by Airline Adjusted EBIT (in EUR m) Q3 ’23 Q3 ’22 Change in % 9M ’23 9M ’22 Change in % Lufthansa German Airlines 641 224 186 790 -574 n.m.f. SWISS 327 234 40 676 279 142 Austrian Airlines 129 110 17 144 4 3,500 Brussels Airlines 71 52 37 59 -37 n.m.f Eurowings 181 103 76 147 -136 n.m.
Slide 28: Cash flow statement
Cash flow statement Lufthansa Group (in m EUR) Q3 ’23 vs. Q3 ’221 EBT (earnings before income taxes) 1,536 +458 1 Depreciation & amortization (incl. repairable MRO materials) +563 +10 Net proceeds from disposal of non-current assets +9 +16 Significant improvement in the operating 1 result compared t
Slide 29: Multi-year financial overview
Multi-year financial overview Lufthansa Group (in EUR million, as reported) 2016 2017 2018 20191 2020 2021 20224 Operating KPIs RASK ex currency -5.9% +1.9% -0.5% -2.5% -26.7% -6.1% -6.1% CASK ex currency, ex fuel2 -2.5% -1.8% -1.7% -1.5% +84.6% -25.8% -25.8% Profit & Loss Revenues 31,660 35,579 35,
Slide 30: Maturity profile of borrowings as of September 30, 2023
Maturity profile of borrowings as of September 30, 2023 in EUR million 3,000 2,500 2,000 1,500 1,000 500 0 YTG 2023 2024 2025 2026 2027 2028 2029 2030 Straight Bond Hybrid Convertible Bond Schuldscheindarlehen Aircraft Finance (secured) Other* *Mainly bilateral loans – does not include operating lea