Annual Report 2007 Sustainability in fi gures Annual Report 2007 tonnes reduction in CO2 emissions 200,000 through optimised air traffic processes 7,434 customer profile index on record level Upgrade to Industry Leadership EUR m investment in vocational and 300 professional training 22.4bn EUR revenue 146 different nations within the Group 1.4bn www.lufthansa .com EUR operating result www.lufthansa -fi nancials.com http://responsibility.lufthansa .com worldwide supported projects by the 31 employee initiative “Help Alliance e.V.” 1.5bn EUR cash value added Annual Report 2007 Sustainability in fi gures Annual Report 2007 tonnes reduction in CO2 emissions 200,000 through optimised air traffic processes 7,434 customer profile index on record level Upgrade to Industry Leadership EUR m investment in vocational and 300 professional training 22.4bn EUR revenue 146 different nations within the Group 1.4bn www.lufthansa .com EUR operating result www.lufthansa -fi nancials.com http://responsibility.lufthansa .com worldwide supported projects by the 31 employee initiative “Help Alliance e.V.” 1.5bn EUR cash value added Lufthansa Group overview Lufthansa business segments overview Highlights Group Key data * Change Financial calendar 2008/2009 Passenger Transportation 2007 in % Passenger Transportation Our airlines are 2007 2006 Change in % Revenue €m 15,956 18.4 amongst the best in the world. Lufthansa and Revenue and result - of which external revenue €m 15,367 18.9 SWISS are premium carriers with global services. 2008 2009 Revenue €m 22,420 19,849 13.0 Operating result €m 826 102.0 Adjusted operating margin % 6.0 2.3 pts. Both are growing and increasing their profi ta- - of which traffic revenue €m 17,568 15,354 14.4 3.61 Segment result €m 1,146 69.0 bility. The passenger fl eet is being sustainably 12 March Press Conference and Analysts’ 11 March Press Conference and Analysts’ Operating result €m 1,378 845 63.1 EBITDA * €m 2,047 37.8 modernised. The airlines are well represented in EUR earnings per share Conference on 2007 result Conference on 2008 result EBIT €m 1,807 1,299 39.1 CVA €m 768 142.3 the world’s growth markets with new partners. We achieved a record result of Segment capital expenditure €m 1,228 18.6 EBITDA €m 3,023 2,393 26.3 EUR 3.61 per share. 25 April Release of Interim Report 24 April Annual General Meeting Cologne Employees as of 31.12 number 47,230 23.0 Net profit for the period €m 1,655 803 106.1 January – March 2008 * Before profit transfer from other business segments. Key balance sheet and cash flow statement figures 30 April Release of Interim Report Total assets €m 22,320 19,461 14.7 Change 29 April Annual General Meeting Cologne January – March 2009 Logistics 2007 in % Logistics Lufthansa Cargo is well positioned. Equity ratio % 30.9 25.2 5.7 pts. Revenue €m 2,736 – 3.8 Despite tough competition it exceeded the tar- 30 July Release of Interim Report 30 July Release of Interim Report Net liquidity €m 768 101 660.4 - of which external revenue €m 2,718 – 4.0 geted result. Load factor and freight volume have January – June 2008 January – June 2009 Cash flow from operating activities €m 2,862 2,105 36.0 Operating result €m 136 65.9 Adjusted operating margin % 5.7 2.2 pts. gone up considerably. In China, Lufthansa Cargo Capital expenditure €m 1,378 1,929 – 28.6 8.34 Segment result €m 170 19.7 has assumed a pioneer role. A new freight airline 29 Oct. Press Conference and Analysts’ 30 Oct. Press Conference and Analysts’ Key profitability and value creation figures EBITDA €m 299 8.3 was set up in Leipzig with DHL Express. Market capitalisation Conference on interim result Conference on interim result in EUR bn Adjusted operating margin ** % 6.9 4.9 2.0 pts. CVA €m 59 59.5 January – September 2008 January – September 2009 Segment capital expenditure €m 18 38.5 EBITDA margin % 13.5 12.1 1.3 pts. With a market capitalisation of EUR Employees as of 31.12 number 4,607 0.2 8.34bn we are the highest-valued CVA €m 1,546 552 180.0 European airline. CFROI % 17.2 10.9 6.6 pts. Change The Lufthansa share MRO 2007 in % MRO Lufthansa Technik remains the global Share price at year end € 18.22 20.85 – 12.6 Revenue €m 3,571 4.6 market leader and a guarantor of reliability, grow- Earnings per share € 3.61 1.75 106.3 - of which external revenue €m 2,185 6.7 Operating result €m 293 18.1 ing faster than the market in 2007. High quality, Suggested dividend per share € 1.25 0.70 78.6 Adjusted operating margin % 8.7 0.9 pts. innovations and tailored services enabled 6.9 Traffic figures Segment result €m 319 14.3 signifi cant new customer wins. State-of-the-art Passengers thousands 62,894 53,432 17.7 EBITDA €m 406 15.3 new maintenance facilities are being built in Dividend yield in per cent CVA €m 205 141.2 Freight / mail thousand tonnes 1,911 1,759 8.6 Europe and Asia. The dividend proposal leads to a Segment capital expenditure €m 194 74.8 Passenger load factor % 77.4 75.2 2.2 pts. dividend yield of 6.9 per cent, Employees as of 31.12 number 18,892 2.5 measured on year-end share price. Cargo load factor % 73.2 72.1 1.1 pts. Number of flights 749,431 664,382 12.8 Change Employees IT Services 2007 in % IT Services Lufthansa Systems has reinforced Average number of employees number 100,779 93,541 7.7 Revenue €m 679 4.1 its position as a leading IT services provider in - of which external revenue €m 281 3.7 * This Annual Report covering the period from 1 January to 31 December 2007 was drawn up in accordance with Internation- Operating result €m 23 – 53.1 the aviation industry with its platform strategy al Financial Reporting Standards (IFRS) taking into account the standards applicable since 1 January 2007. Last year’s key and outstanding technological products. The data has been adjusted. This may lead to deviations from the results published a year ago. Adjusted operating margin % 3.7 – 4.4 pts. 1.38 ** Ratio for comparability with other airlines: (operating result + reversals of provisions)/revenue. Segment result €m – 20 – Group also added to its well-known clients from Date of disclosure: 12 March 2008 EBITDA €m – 4 – outside the aviation sector. Capital expenditure CVA €m – 16 – in EUR bn Segment capital expenditure €m 54 10.2 In 2007 we appointed EUR 1.38bn Employees as of 31.12 number 3,102 – 6.6 to forward-looking investments. Revenue in €m Operating result in €m Change The CD to the 2007 Annual Report is available on Catering 2007 in % 1,378 Catering LSG Sky Chefs is growing and creat- 22,420 Revenue €m 2,396 5.2 www.lufthansa-fi nancials.com. 19,849 ing value again. The result went up substantially 18,065 - of which external revenue €m 1,869 5.2 16,965 and the Group holds a leading position in the 15,957 Operating result €m 100 100.0 845 Adjusted operating margin % 4.2 1.5 pts. sector worldwide, with a market share of 30 per 30.8 577 Segment result €m 116 58.9 cent. The airlines’ tendency to outsource in-fl ight EBITDA €m 167 – 0.6 Return on equity 383 management continues, offering LSG Sky Chefs CVA €m 21 – ever-greater opportunities. in per cent Segment capital expenditure €m 153 115.5 36 Our return on equity increased to Employees as of 31.12 number 30,101 5.4 30.8 per cent. 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Lufthansa Group overview Lufthansa business segments overview Highlights Group Key data * Change Financial calendar 2008/2009 Passenger Transportation 2007 in % Passenger Transportation Our airlines are 2007 2006 Change in % Revenue €m 15,956 18.4 amongst the best in the world. Lufthansa and Revenue and result - of which external revenue €m 15,367 18.9 SWISS are premium carriers with global services. 2008 2009 Revenue €m 22,420 19,849 13.0 Operating result €m 826 102.0 Adjusted operating margin % 6.0 2.3 pts. Both are growing and increasing their profi ta- - of which traffic revenue €m 17,568 15,354 14.4 3.61 Segment result €m 1,146 69.0 bility. The passenger fl eet is being sustainably 12 March Press Conference and Analysts’ 11 March Press Conference and Analysts’ Operating result €m 1,378 845 63.1 EBITDA * €m 2,047 37.8 modernised. The airlines are well represented in EUR earnings per share Conference on 2007 result Conference on 2008 result EBIT €m 1,807 1,299 39.1 CVA €m 768 142.3 the world’s growth markets with new partners. We achieved a record result of Segment capital expenditure €m 1,228 18.6 EBITDA €m 3,023 2,393 26.3 EUR 3.61 per share. 25 April Release of Interim Report 24 April Annual General Meeting Cologne Employees as of 31.12 number 47,230 23.0 Net profit for the period €m 1,655 803 106.1 January – March 2008 * Before profit transfer from other business segments. Key balance sheet and cash flow statement figures 30 April Release of Interim Report Total assets €m 22,320 19,461 14.7 Change 29 April Annual General Meeting Cologne January – March 2009 Logistics 2007 in % Logistics Lufthansa Cargo is well positioned.