Slide 1: Full Year 2022 Results
Full Year 2022 Results Carsten Spohr, CEO Remco Steenbergen, CFO Frankfurt, 03 March 2023 lufthansagroup.com
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: Full Year 2022 Results
Full Year 2022 Results Carsten Spohr, CEO Frankfurt, 03 March 2023 lufthansagroup.com
Slide 4: Lufthansa Group leaves crisis behind in 2022
Lufthansa Group leaves crisis behind in 2022 Adjusted EBIT Revenues Passengers in EUR billion 1.5 EUR 33bn 102m +95% vs PY +55m vs PY -1.7 -5.5 Record results Logistics Adjusted EBIT EUR 1.6bn 2020 2021 2022 MRO Adjusted EBIT EUR 0.5bn Page 4
Slide 5: Group focuses on three strategic priorities in 2023
Group focuses on three strategic priorities in 2023 01 PRODUCT Focus on innovation to upgrade our premium offer and drive customer satisfaction Adj. EBIT margin target for 2024 Strategic At least 8% 02 PEOPLE priorities to Recruit and retain the best employees in the industry to offer the best suppo
Slide 6: Full Year 2022 Results
Full Year 2022 Results Remco Steenbergen, CFO Frankfurt, 03 March 2023 lufthansagroup.com
Slide 7: Lufthansa Group result in the fourth quarter exceeds pre-crisis level
Lufthansa Group result in the fourth quarter exceeds pre-crisis level Q4 2022 Q4 2022 Group MRO Adjusted EBIT Adjusted EBIT EUR 575m EUR 114m Q4 2022 Q4 2022 Group Airlines Logistics Adjusted EBIT Adjusted EBIT EUR 191m EUR 292m Yield +21% vs 2019 Page 7
Slide 8: 2022 has been the year of Lufthansa Group's financial turnaround
2022 has been the year of Lufthansa Group’s financial turnaround (in EUR million) FY ’22 FY ’21 Revenues 32,770 16,811 Operating expenses 33,662 20,090 Adjusted EBITDA 3,786 593 Adjusted EBIT 1,509 -1,666 EBIT 1,231 -2,316 Net income 791 -2,191 Adjusted free cash flow 2,526 -1,049 Adjusted ROCE 7.3%
Slide 9: Passenger Airlines: Earnings recovery driven by significant yield increases
Passenger Airlines: Earnings recovery driven by significant yield increases Operational KPIs Adjusted EBIT in EUR million Comments Q1 Q2 Q3 Q4 FY ‘22 ▪ Profit in H2 largely offsets H1 losses, 78 78 -300 SWISS and Austrian Airlines return to 74 72 ASK 58 positive results in % of ‘19 ▪ Yield increase
Slide 10: Profits in Logistics and MRO reach new record levels
Profits in Logistics and MRO reach new record levels Adjusted EBIT in EUR million FY 2022 Comments 1,495 1,600 ▪ Lufthansa Cargo result tops prior FY ’21 FY ’22 year despite gradual normalization of demand and yields in H2 ▪ Lufthansa Technik benefits from high 511 362 global MRO demand in the wake
Slide 11: Record Adjusted free cash flow due to the earnings recovery
Record Adjusted free cash flow due to the earnings recovery, strong bookings and successful working capital management FY Adjusted EBIT / Adjusted free cash flow in EUR million (800) 1,426 (490) 5,168 (284) 1,558 (2,261) (381) 2,526 2,249 1,509 Adjusted D&A Liability for Trade Trade Inventories/ Oth
Slide 12: Strong cash flow drives the deleveraging
Strong cash flow drives the deleveraging Liquidity Net debt and net pension liabilities Shareholder equity Year-end, EUR billion Year-end, EUR billion Year-end, EUR billion 19.5 11.1 10.4 10.3 2.8x 9.4 15.6 Target liquidity: 2.1 8.5 13.3 9.5 2.3x EUR 8-10bn 6.5 6.7 8.9 4.5 4.2 2.0 8.3 9.9 9.0 6.7 6.
Slide 13: Cost reduction program has led to significant fixed cost reduction
Cost reduction program has led to significant fixed cost reduction Targeted sustainable cost savings 2020 - 2024 in EUR billion Fixed cost development 2019 - 2022 Measures implemented and recognized in P&L Measures implemented, not yet recognized in P&L Measures not yet implemented EUR 3.2 billion -
Slide 14: Cost reduction program limits impact from inflation on unit costs
Successful implementation of cost reduction program limits impact from inflation and fixed cost degression on unit costs Ex-fuel unit cost development 2019 to 2024 Reduction in CASK In €-cents Low- to mid-single until 2024 due to: digit decline +13% 6.3 ▪ Restoration of 2019 0.2 capacity 0.2 ▪ Incre
Slide 15: Fuel hedging offers protection against the risk of renewed price increases
Fuel hedging offers protection against the risk of renewed price increases while leaving opportunity to benefit from lower prices Expected fuel cost sensitivity after hedging (FY 2023)1 Hedging portfolio excl. LH Cargo as of February 28, 2023 107 Q1 FY 2023 +1,100 +950 +800 +650 +550 ø Market price
Slide 16: Targeted portfolio measures will drive the transformation into an airline group
Targeted portfolio measures will drive the transformation into an airline group Core business Page 16
Slide 17: Group expects to make progress towards its 2024 targets in 2023
Group expects to make progress towards its 2024 targets in 2023 2023 Forecast 2024 Targets Capacity (ASK) 85 – 90% of 2019 levels Capacity (ASK): >95% of 2019 levels Adjusted EBIT Significantly above 2022 Adjusted EBIT margin: At least 8% Adjusted free cash flow Significantly positive but Adjusted R
Slide 18: Full Year 2022 Results
Full Year 2022 Results Carsten Spohr, CEO Frankfurt, 03 March 2023 lufthansagroup.com
Slide 19: Lufthansa Group accelerates fleet modernization
Product People Profitability Lufthansa Group accelerates fleet modernization Order of 22 additional long-haul aircraft enables faster phase-out of inefficient, four-engine aircraft Today New Normal 380 748 748 789 30x +7x 744 779 35K +10x 773 773 6 older A/C 772 types to be 35K 359 28x +5x 359 3
Slide 20: Comprehensive product and service innovations define premium
Product People Profitability Comprehensive product and service innovations underline our aspiration to define premium in the European airline industry New Premium Introduction of 27 Economy already in the air New First hirings in at SWISS ground Class suite 7 seat options in Business class cater to
Slide 21: Technological and commercial innovation are key to decarbonization
Product People Profitability Technological and commercial innovation are key to decarbonization Technology drives Rising contribution Among top-ranked emission reduction made by customers airlines in CDP Specific CO2 emissions: New Green fares launched Received top score (A-) in -11% FY ’22 vs. ’21
Slide 22: Recruiting and retaining the best people
Product People Profitability Recruiting and retaining the best people in the industry are key to providing our customers with a premium experience Largest ever c. 1,500 Lufthansa Group Employees +10% recruiting hirings in 110k 115k campaign ground operations 105k launched Target to recruit >3,000 ca
Slide 23: Robust demand paves the way for continued recovery in 2023 and beyond
Product People Profitability Robust demand paves the way for continued recovery in 2023 and beyond Growth by Region1 Growth by Customer Segment2 Comments Leisure and Passengers (in % of 2019 levels) Europe Passengers (in % of 2019 levels) VFR ▪ Demand remains strong: Current North Atlantic Asia-Paci
Slide 24: Capacity expansion continues to be disciplined across the industry
Product People Profitability Capacity expansion continues to be disciplined across the industry Total supply in region January - October 2023 ASK to/from/within Europe in % of 2019 North America Europe Asia/Pacific 102% 98% 92% 94% 85% 68% 66% +17pp +16pp +9pp +11pp +6pp +32pp +27pp A++ Joint Luftha
Slide 25: Lufthansa Cargo's unique market position expected to support performance
Product People Profitability Lufthansa Cargo’s unique market position expected to support performance also in 2023 Evaluation of At the Modern aircraft k retirement of all forefront of Pure 777F aircraft >25 years digitization long haul fleet eCommerce Industry-leading yields push LCAG yield in €/RF
Slide 26: Lufthansa Technik well positioned to remain a leader
Product People Profitability Lufthansa Technik well positioned to remain a leader in a very attractive market Leading position in highly Strongest portfolio of At the forefront of the attractive MRO market customers and OEM industry’s digital partnerships transformation ▪ >4,000 aircraft under exclu
Slide 27: We grow. We shape. We lead.
Lufthansa Group – We grow. We shape. We lead. We are back to growth – for our customers, people and shareholders. We shape the future – with innovations benefiting our customers and the environment. We are prepared to lead – with the ambition to further improve our market position. Page 27
Slide 28: Appendix - supplementary information
Appendix - supplementary information- Page 28
Slide 29: 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 75,722 -32.2% 10,552 -21.0% 7,926 -23.5% 7,575 -23.1% 26,053 -22.4% 101,774 -30.0% Available seat-kilometers (m) 193,307 -29.5% 25,150 -21.2% 20,358 -23.1% 20,566 -21.6% 66,074 -21.9% 259,381 -27.7%
Slide 30: Operating KPIs of Group Airlines by region vs. 2019
Operating KPIs of Group Airlines by region vs. 2019 (unless stated otherwise) Total Q4’22 FY ’22 Europe Q4’22 FY ’22 Asia / Pacific Q4’22 FY ’22 Number of flights -24.7% -30.4% ASK -14.3% -18.8% ASK -45.2% -60.4% ASK -21.9% -27.7% RPK -12.6% -19.1% RPK -44.5% -62.8% RPK -21.5% -30.1% SLF +1.5pts -0.
Slide 31: Calculation of operational airline KPIs
Calculation of operational airline KPIs Passenger Airlines, FY 2022 1) Traffic revenues (€m) 20,687 1) Total operating expenses (€m) -24,100 2) Not assignable (€m) 1,911 2) Reversal of provisions (€m) 131 Yield = 3) Basis for Yield (1)–(2) (€m) 18,776 3) FX gains (€m) -402 CASK 4) RPK (m) 1 207,035
Slide 32: Group P&L
Group P&L Lufthansa Group (in EUR m) Q4 ’22 vs. Q4 ’21 FY ’22 vs. FY ’21 Revenues 8,877 +52.2% 32,770 +94.9% Total operating income 9,629 +51.4% 35,155 +90.8% Operating expenses 9,069 +41.6% 33,662 +67.6% Of which fees & charges 977 +27.7% 3,730 +73.1% Of which fuel 1,988 +106.0% 7,601 +215.5% Of wh
Slide 33: Adjusted EBIT / Free cash flow Q4 2022
Adjusted EBIT / Free cash flow Q4 2022 559 678 187 575 (429) 160 512 786 114 Adj. EBIT Depreciation & Liability for Other TWC & Other1 Operating Cashflow Net CAPEX Repayment Adj. Free cash flow Amortization unflown tickets contract liabilities IFRS 16 Leases 1 Incl. other non-cash items, change in o
Slide 34: EBIT / Adjusted EBIT bridge FY 2022
EBIT / Adjusted EBIT bridge FY 2022 in EUR million (31) 42 20 197 113 (63) 1,509 1,231 EBIT Impairments, Net restructuring Other Impairment Net book gains Legal and Past pension Adjusted EBIT material write-offs expenses on non-current M&A expenses service effects and other assets1 extraordinary exp
Slide 35: Adjusted EBIT / Net Income FY 2022
Adjusted EBIT / Net Income FY 2022 in EUR million 1,509 (278) (13) (246) 238 791 (419) Adjusted EBIT Adjustments Interest result Profit/loss attributable Tax result Other1 Net EBIT to minority interests Income 1 Incl. positive strategic interest swaps results (EUR 107 million) and valuation result f
Slide 36: Adjusted EBIT by Airline
Adjusted EBIT by Airline Adjusted EBIT (in EUR m) Q4 ’22 Q4 ’21 Change in % FY ’22 FY ’21 Change in % Lufthansa German Airlines 108 -375 nmf. -466 -2,268 +79.5% SWISS 197 -17 nmf. 476 -395 nmf. Austrian Airlines -1 -53 +98.1% 3 -249 nmf. Brussels Airlines -37 -37 0% -74 -178 +58.4% Eurowings -61 -83
Slide 37: Cash flow statement
Cash flow statement Lufthansa Group (in EUR million) FY ’22 vs.FY ’21 EBT (earnings before income taxes) 1,050 +3,656 Mainly related to the reversal of provisions 1 Depreciation & amortization (incl. non-current assets) 2,444 +189 and derivative valuation effects Net proceeds from disposal of non-cu
Slide 38: Multi-Year financial overview
Multi-Year financial overview Lufthansa Group (in EUR million, as reported) 2016 2017 2018 20191 2020 2021 2022 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 35,5
Slide 39: Maturity profile of borrowings
Maturity profile of borrowings 3,000 2,500 2,000 1,500 1,000 500 0 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 leases Page 39