Issue 2013 Balance Key data on sustainability within the Lufthansa Group www.lufthansagroup.com/responsibility You will fi nd further information on sustainability within the Lufthansa Group at: www.lufthansagroup.com/responsibility Order your copy of our Annual Report 2012 at: www.lufthansagroup.com/investor-relations 1 Source: Lufthansa Annual Report 2012 2 For the reporting year 2012 the following companies are included: Lufthansa (including Lufthansa CityLine, Air Dolomiti, Eurowings, Contact Air, Augsburg Airways), Lufthansa Cargo, Germanwings, SWISS (including Edelweiss Air) and Austrian Airlines. Excluding the services of third parties as the company can infl u- ence neither performance nor the equipment operated (see also table “Share of third parties” on page 70). 3 Types of fl ights taken into account: all scheduled and charter fl ights. 4 See also table “Fuel consumption” on page 70. 5 Companies referred to as in 2, but including the services of third parties, as these contribute to the Group’s results. Types of fl ights as in 3, but including ferry fl ights, as these represent costs. 6 Balance: segments (operational perspective); Annual Report: distance (customer perspective); one distance can include several segments, e.g. in the event of stops en route. 7 Balance: on the basis of all passengers aboard; Annual Report: on the basis of all revenue passengers. At a glance Business performance data1 2012 2011 Change Revenue million € 30,135 28,734 + 4.9 % of which traffic revenue million € 24,793 23,779 + 4.3 % Operating result million € 524 820 – 36.1 % Profit/loss from operating activities million € 1,311 773 + 69.6 % Net profit/loss for the period million € 990 – 13 Total assets million € 28,419 28,081 + 1.2 % Cash flow from operating activities million € 2,842 2,356 + 20.6 % Capital expenditure million € 2,359 2,566 – 8.1 % Equity ratio percent 29.2 28.6 + 0.6 PP Personnel data 2012 2011 Change Number of employees (on 31.12., respectively) 116,957 116,365 + 0.5 % of these, in Germany 67,620 67,263 + 0.5 % of these, outside Germany 49,337 49,102 + 0.5 % Staff costs1 million € 7,052 6,678 + 5.6 % Revenue/employee1 thousand € 257 249 + 3.0 % Staff costs/revenue1 percent 23.4 23.2 + 0.2 PP Average age years 41.3 40.8 + 0.5 Y Part-time ratio, absolute percent 27.9 27.1 + 0.8 PP Part-time ratio, men percent 13.7 13.3 + 0.4 PP Part-time ratio, women percent 45.3 44.2 + 1.1 PP Share of women in management percent 13.6 13.6 ± 0 PP Environmental data2,3 2012 2011 Change Resource consumption Fuel consumption4 tonnes 8,878,926 9,023,671 – 1.6 % Fuel consumption, specific, passenger transportation l/100 pkm 4.06 4.18 – 2.8 % Fuel consumption, specific, freight transport g/tkm 230 231 – 0.7 % Emissions Carbon dioxide emissions tonnes 27,968,627 28,424,568 – 1.6 % Carbon dioxide emissions, specific, passenger transportation kg/100 pkm 10.24 10.53 – 2.8 % Nitrogen oxide emissions tonnes 136,805 133,903 + 2.2 % Nitrogen oxide emissions, specific, passenger transportation g/100 pkm 50.0 49.4 + 1.2 % Carbon monoxide emissions tonnes 19,416 20,152 – 3.7 % Carbon monoxide emissions, specific, passenger transportation g/100 pkm 7.8 8.2 – 5.2 % Unburned hydrocarbons tonnes 2,096.0 2,252.8 – 7.0 % Unburned hydrocarbons, specific, passenger transportation g/100 pkm 0.8 0.9 – 8.2 % Transport performance data Balance2,3 Change Annual Report5 Change Number of flights6 1,003,182 – 0.9 % 1,033,588 – 1.6 % Passengers carried7 100,938,009 + 2.9 % 103,051,082 + 2.4 % Freight and mail carried tonnes 1,972,357 – 7.0 % 1,972,357 – 7.0 % Seat kilometers offered, SKO million pkm 256,536 + 1.3 % 259,861 + 0.6 % Freight tonne kilometers offered, FTKO million tkm 14,468 – 3.3 % 15,249 – 6.2 % Tonne kilometers offered, TKO million tkm 39,819 – 0.6 % 40,064 – 1.8 % Passenger kilometers transported, PKT7 million pkm 207,747 + 2.5 % 204,775 + 2.2 % Freight tonne kilometers transported (incl. third-party performance), FTKT million tkm 9,266 – 4.6 % 10,203 – 6.1 % Tonne kilometers transported, TKT million tkm 30,126 + 0.2 % 29,754 – 0.5 % Contents 1 At a glance 4 About this report 6 Focus topic Fuel efficiency 14 The Lufthansa Group 16 Business segment Passenger Airline Group 18 Business segment Logistics / Business segment MRO 19 Business segment IT Services / Business segment Catering 20 Corporate responsibility 26 Stakeholder dialogue 30 The Lufthansa Group fleet 36 Economic Sustainability 38 Group strategy 41 Management and corporate structures 41 Corporate governance and compliance 43 Data protection at the Lufthansa Group 44 Infrastructure 46 Social Responsibility 48 HR management 51 Numerous activities for a culture of diversity 55 Employment policy based on partnership 59 Corporate training and continuing education 61 Employee safety and health protection 64 Climate and Environmental Responsibility 66 Environmental strategy 68 Kerosene and emissions 71 Fuel efficiency: Every drop counts 76 Using biofuels opens up perspectives 78 Emissions trading and aviation tax 79 Environmental management 81 Energy and resource management 86 Noise 90 Research projects 92 Corporate Citizenship 94 Social commitment 95 HelpAlliance: Employees set examples of solidarity 98 Cargo Human Care: Concrete help for people in Kenya 100 Environmental sponsorship 102 Cultural commitment 104 Sports sponsorship 108 Glossary 114 Editorial information Balance 2013 Dear Readers, As a company with global operations, we know that treat- Alongside the care and protection of the environment and ing people and the environment in responsible ways is a the reduction of noise, the Lufthansa Group is also actively fundamental factor for our success. We are committed to engaged in a wide range of social issues. We promote corporate responsibility, because our company’s success junior scientists, participate in research projects, sponsor and competitiveness go far beyond growth and profitability. mass and disabled sports, and support social and cultural With our corporate program SCORE, which we launched projects as well as aid associations – particularly the last year, we have set the course for sustainable economic HelpAlliance, which was founded by Lufthansa employees. success. And we have come a good bit closer to our goal Especially in the social area, our scope of action is defined of achieving a lasting improvement in our economic result. not only by current laws but also by many self-imposed SCORE is on track and will make a decisive contribution obligations, as our ten-year membership in the UN Global to ensuring that we can continue to invest in innovative Compact illustrates. In the course of the reporting year, for services and products for our clients, in our employees as example, we anchored the principles of sustainability even well as in environmentally sound technologies in the future. more strong ly in our procurement guidelines and rein- forced our compliance program further. In the area of per- In the overall context of our value-oriented corporate sonnel, we again launched projects that will further fortify management, responsibility for climate and the environ- the culture of diversity within the Group and help prepare ment has always been a top priority for us. The largest our management for future challenges. fleet renewal program in the history of the Lufthansa Group means we are making perceptible progress in reducing For more in-depth insights concerning our commitments in emissions of pollutants and noise. Last year, the passen- the framework of corporate responsibility, I highly recom- ger airlines of the Lufthansa Group consumed only 4.06 mend the present report and wish you a thought-provoking liters of kerosene per passenger and 100 kilometers on read. average. This is about 3 percent less than the preceding year – and a new record result. When it comes to fuel con- sumption, economy and ecology go hand in hand. There- fore, it makes sense in all respects that we improve even further in this area. Currently, we have 236 new aircraft on order. With these new deliveries, we will essentially be replacing older aircraft. In addition, we have set up our new Fuel Efficiency department, which will allow us to opti- Christoph Franz mize in an even more focused way and to harness savings Chairman of the Executive Board and CEO potentials all across the Group. Deutsche Lufthansa AG Lufthansa Group 3 About this report The present Sustainability Report Balance informs stakeholders and the interested public about the goals, activities and advances of the Lufthansa Group in the areas of business, social responsibility, environment and corporate citizenship. The data presented in this report refer to the financial year 2012. The understanding of corporate responsibility at the Methodology of calculations Lufthansa Group is based on the following five dimensions: Kerosene in absolute terms • Economic sustainability The calculation of kerosene consumption is based on actual • Social responsibility flight operations (i.e. using actual load factors and flight • Climate and environmental responsibility routings), according to the so-called “gate-to-gate” princi- • Corporate governance and compliance ple. This includes all phases of a flight – from taxiing on the • Corporate citizenship ground to flying detours and in holding patterns in the air. The section “Corporate governance and compliance” is Emissions in absolute terms part of the chapter “Economic sustainability.” The calculation of emissions from flight operations is based on the actual transport performance (i.e. actual load factors) Scope of consolidation and the actual absolute quantity of kerosene con sumed Reporting with regard to transport performance, kerosene during the year in review. In this context, each aircraft- consumption and emissions from flight operations in the engine combination that exists in the fleet is considered financial year 2012 is – unless noted otherwise – based on separately, and the corresponding values are calculated by the following scope of consolidation: means of computer programs provided by the respective aircraft and engine manufacturers.