2-2012
2nd Interim Report January June 2012
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Content Inhalt
2-2012
Please read the 2nd Interim Report 2012 carefully. / Bitte den 2. Zwischenbericht 2012 sorgfltig lesen.
* Performance indicator to enable comparison with other airlines: (operating result + write-backs of provisions) / revenue. Date of publication: 2 August 2012.
Contents
1 2 21 To our shareholders Interim management report Interim nancial statements 31 Further information Credits/Contact Financial calendar 2012/2013
To our shareholders
Further information
Stefan Lauer Member of the Executive Board Chief Ofcer Group Airlines and Corporate Human Resources
Carsten Spohr Member of the Executive Board Chief Ofcer Lufthansa German Airlines
Lufthansa
Lufthansa share
The sovereign debt crises in Europe remained the overriding issue on the stock markets in the second quarter. Many securities saw the price gains achieved in the rst quarter negated. Airline shares were hit particularly hard by this development, with price losses only being reversed in June, when the price of oil fell considerably. Overall, Germanys DAX index gained 8.8 per cent in the rst half-year, taking it to 6,416 points. The Lufthansa share stood at EUR 9.11 as of 30 June 2012. Its price was therefore virtually thebsame as at year-end 2011 ( 0.8 per cent). Taking into account thebdividend of EUR 0.25 paid in May, shareholders received a positive return of 1.9 per cent.
Shareholder structure by nationality in % (as of 30.6.2012)
Other 7.9
Germany 63.5
At the end of the second quarter, German investors held 63.5 per cent of the Lufthansa shares. The largest individual shareholders were BlackRock Inc. with 5.43 per cent and Franklin Templeton with 5.00 per cent. The free oat remained unchanged at 100 per cent. Information on the shareholder structure and analysts recommendations is regularly updated and published on our website i www.lufthansa.com/investor-relations.
Performance of the Lufthansa share, indexed as of 31.12.2011, compared with the DAX and competitors
140 130 120 110 100 90 80 70
Macroeconomic situation The development of the global economy uctuated noticeably in the rst six months of 2012. Developments in the various regions also remained highly disparate. The emerging economies made a major contribution towards the global economic recovery, although their rate of growth has slowed down. The pace of growth in the developed economies remained tempered. Altogether, the global economy grew by 2.6bper cent in the second quarter (see table). Due to general uncertainty regarding further economic developments, the price of crude oil fell sharply towards the end of the rst half-year. After peaking at USD 126/barrel in the meantime, the price of ICE Brent dropped to USD 98/barrel by the end of June. However, the average price of USD 114/barrel for the rst six months was still slightly higher than it was last year (+ 2 per cent). The kerosene price was also 2 per cent higher than the average price in the rst half of 2011 (see table on p. 3 ). The euro continued on its downwards spiral. Meanwhile, the USbdollar appreciated by an average of 7.5 per cent over the rst six months, which mainly affected costs. As regards revenue, abnumber of currencies performed more robustly including the British pound sterling and the Japanese yen. Overall, exchange rate movements had a negative impact of EUR 107m on the operating result in the period from January to June.
31.12. 2011
DAX Lufthansa International Airlines Group
30.6. 2012
Air France-KLM
Lufthansa 2nd Interim Report January June 2012
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Further information
As in the rst quarter of 2012, the market environment had a particularly noticeable effect on the Passenger Airline Group business segment. Increases in prices and revenue could not compensate fully for higher costs. Rigorous capacity management was able to limit the decline in prots in the Logistics business segment. The service segments MRO, IT Services and Catering once again made a positive contribution to the Groups result for the period. Their contribution was higher than a year ago. SCORE Change for success The Group-wide future programme SCORE, which was launched at the beginning of 2012, aims to bring about a sustainable, structural improvement in earnings of EUR 1.5bn. The full effect of the SCORE measures on earnings will be felt in 2015. One of the programmes focal points is to step up use of Group-wide synergies. A number of projects have already been implemented to this end with the aim of establishing joint purchasing, improving collaboration in the eld of local trafc and expanding shared business services, for example. In the area of administrative functions, the objective is to reduce expenses by 25bper cent sustainably, largely by cutting staff costs. Additional projects also for the business segments are constantly being developed and rolled out. Signicant events The sale of British Midland (bmi) to IAG (International Airlines Group) was completed on 19 April 2012, as agreed in December 2011. The transaction was proceeded by thebapproval of the EU competition authorities on 30 March. For details of the impact on the half-year nancial statements, please refer to the Earnings position section on p. 4 and the notes to the consolidated nancial statements on p. 27 . The state of Hesses transport ministry enacted the night-ight ban at Frankfurt Airport on 29 May 2012 after the Federal Administrative Court passed a verdict stating that it was legal. Prohibiting scheduled ights between 11.00 p.m. and 5.00 a.m. has a massive impact on some of Lufthansa Passenger Airlines operations, and especially those of Lufthansa Cargo. Berlins new airport was due to open on 3 May 2012, but this has been postponed until next year due to re protection work which has yet to be completed. Until it opens, Lufthansas planned services will depart from Berlin Tegel Airport. Staff and management On 7 May 2012, the Supervisory Board appointed Simone Menne to the Executive Board of Deutsche Lufthansa AG. She assumed responsibility for Finance and Aviation Services effective 1 July 2012. Simone Menne takes over from Stephan Gemkow, who resigned from his post in mutual agreement as of 30 June 2012 to join the Haniel Group as CEO. Ms Mennes contract runs up to 30 June 2015.
Sector developments The aviation industry recorded moderate growth in the passenger sector for the rst half-year of 2012. However, last years gures were affected by events including the earthquake and nuclear disaster in Japan. In the rst ve months of the year, revenue passenger-kilometres went up by a total of 6.5bper cent. Sales growth for the European carriers was comparable at 6.1 per cent. The premium segment also performed similarly, growing 4.9 per cent in the rst ve months. By way of contrast to the growth in passenger trafc, freight business developed modestly in 2012. Throughout the industry, revenue tonne-kilometres for the rst ve months were 1.6 per cent down on the previous year. The decline was particularly severe for the European cargo airlines at 4.6 per cent. The aviation industry remained eventful in the rst six months of 2012. For instance, the long-planned merger of Brazils airline TAM and the Chilean carrier LAN, to LATAM Airlines Group, was completed at the end of June. In addition, the large Spanish bank Bankia IAGs largest single shareholder is being forced to dispose of its 12 per cent stake in the airline group in the course ofbits bailout. The shares are yet to be sold.
Course of business
Overview In the rst half-year of 2012, business developments at the Lufthansa Group felt the pressure of high, volatile fuel prices and the ongoing eurozone crisis. However, the Lufthansa Group succeeded in increasing revenue again compared with the same period last year thanks to robust overall demand and the ongoing strict management of capacity and yields. Due to high fuel costs, the operating result remained lower than last years. However, the Company managed to make up much of the shortfall in the second quarter, partly due to the non-recurring factors resulting from the restructuring of Austrian Airlines.
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The trade union UFO called a strike ballot on 17 July during ongoing collective negotiations for cabin crew at Lufthansa Passenger Airlines. Voting is due to be completed by the end of 7 August 2012. Changes in reporting standards and in the group of consolidated companies The standards mandatory as of 1 January 2012 did not have a signicant effect on the Groups net assets, nancial and earnings position. For further details, see the notes tobthe consolidated nancial statements from p. 26 . There have been signicant changes to the group of consolidated companies since this time last year. Bmi was deconsolidated when its sale to IAG was completed on 19 April 2012. The assets of EUR 576m and liabilities of EUR 690m attributable to the company and shown on the balance sheet for the period ending 31bDecember 2011 as per IFRS 5 were closed out. The particular accounting treatment of bmi since the signing of the contract for its sale to IAG is discussed in detail in the following section Earnings position . The individual changes to the group of consolidated companies compared with year-end 2011 and 30 June 2011 are shown in the table on p. 26 . Apart from the effects outlined above resulting from the separate presentation and deconsolidation of bmi, the changes to the group of consolidated companies did not have a signicant effect on the balance sheet or the income statement in comparison with the rst half-year of 2011.
As a result of the contract for the sale of bmi to IAG signed by Lufthansa and IAG on 22 December 2011, bmi is to be presented in the Groups income statement as a discontinued operation in line with IFRS 5. bmi was deconsolidated when the sale transaction was completed on 19 April 2012. The proceeds from the discontinued operation include the after-tax result recorded for bmi until its disposal and changes in the valuation or proceeds of disposal for the discontinued operation compared with the 2011 nancial statements, resulting from the aforementioned contractual agreement. The gures for the previous year have been adjusted accordingly. The result from discontinued operations in the rst half-year of 2012 was mainly due to price adjustments made as a result of bmis better than expected liquidity position. For details, please see the notes to the consolidated nancial statements on p. 27 .
Revenue and income
Jan. June 2012 in m Trafc revenue Other revenue Total revenue Changes in inventories and work performed by the entity and capitalised Other operating income Total operating income 11,851 2,658 14,509 Jan. June 2011 in m 11,243 2,442 13,685 Change in % 5.4 8.8 6.0
71 969 15,549
24 1,320 15,029
Earnings position
Trafc gures of the Lufthansa Groups airlines
Jan. June 2012 Passengers carried Available seat-kilometres Revenue seat-kilometres Passenger load factor Freight / mail Available cargo tonne-kilometres Revenue cargo tonne-kilometres Cargo load factor Total available tonne-kilometres Total revenue tonne-kilometres Overall load factor Flights thousands millions millions % thousand tonnes millions millions % millions millions % number 49,365 126,876 97,626 76.9 987 7,723 5,082 65.8 19,823 14,390 72.6 512,140 Jan. June 2011 47,513 124,051 94,095 75.9 1,070 8,188 5,460 66.7 19,974 14,423 72.2 517,808 Change in % 3.9 2.3 3.8 1.0 7.8 5.7 6.9 0.9 pts 0.8 0.2 0.4 pts 1.1
Revenue and income Trafc at the Lufthansa Group increased in the rst half-year of 2012 compared with the same period last year. However, passenger and freight business experienced very different trends. The airlines in the Group carried 49.4 million passengers which is 3.9 per cent more than in the same period 2011, whereas the amount of freight and mail fell by 7.8 per cent to 987 thousand tonnes, see table left. The individual performance data for the separate segments is presented in the respective chapters. The overall increase in trafc in the rst half-year lifted trafc revenue by 5.4 per cent to EUR 11.9bn. This increase in revenue was attributable to developments in volumes (2.2 per cent), higher prices (0.7 per cent, including surcharges for fuel and air trafc tax) as well as exchange rate effects (2.5 per cent). The Passenger Airline Group accounted for EUR 10.3bn (+ 7.6 per cent) of trafc revenue and the Logistics segment for EUR 1.3bn ( 9.6 per cent).
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Further information
2008
2009
2010
2011
2012
Other revenue was up 8.8 per cent on the rst half of 2011 at EURb2.7bn. Of this, the MRO segment generated EUR 1.2bn (+ 6.6 per cent), IT Services EUR 126m (+ 14.5 per cent) and Catering EUR 927m (+ 13.2 per cent). The airborne companies inbthe Passenger Airline Group and Logistics segments contributed EUR 362m (+ 4.3 per cent) to other revenue. As a result, the Groups revenue came in 6.0 per cent up on the rst half of last year at EUR 14.5bn. The development of revenue over the last ve years is shown in the chart above. The Passenger Airline Groups share of total revenue rose to 74.9 per cent (+ 1.1 percentage points) in 2012. The distribution of revenue by segment and region is shown in the segment reporting from p. 29 . Other operating income was considerably reduced by 26.6 per cent to EUR 969m. In addition to non-recurring income last year (reimbursement of security charges and received compensation payments), this decline is due to lower exchange rate gains (EURb 203m) and a fall in book gains from the disposal of assets (EUR 22m). The lower exchange rate gains were partly offset byba corresponding fall in exchange rate losses recognised in other operating expenses. Other items did not vary signicantly compared with the previous year. Total operating income therefore went up by EUR 520m or 3.5 per cent to EUR 15.5bn. Expenses Operating expenses climbed by a total of EUR 841m (+ 5.7 per cent) to EUR 15.6bn. The main reason for the increase was the cost of materials and services, which rose by 9.0 per cent to EUR 8.8bn. This increase was primarily driven by the EURb642m (+ 22.0 per cent) climb in fuel costs to EUR 3.6bn. In addition to the 15.4 per cent increase in fuel prices (after hedging), the movement of the US dollar also added 7.4 per cent to expenses.
On the other hand, the volume effect caused by the smaller number of ights led to a slight reduction in expenses ( 0.8 per cent). Fuel costs included a positive result of price hedging ofbEURb154m. Other raw materials, consumables and supplies edged up by 1.0 per cent to EUR 1.3bn.
Expenses
Jan. June 2012 in m Cost of materials and services of which fuel of which fees and charges of which operating lease Staff costs Depreciation Other operating expenses Total operating expenses 8,754 3,565 2,532 61 3,399 895 2,550 15,598 Jan. June 2011 in m 8,028 2,923 2,422 66 3,309 822 2,598 14,757 Change in % 9.0 22.0 4.5 7.6 2.7 8.9 1.8 5.7
Fees and charges rose by 4.5 per cent to EUR 2.5bn, principally due to elevated trafc. The main drivers were increases in passenger fees (+ 11.0 per cent), take-off and landing fees (+ 5.1 per cent) and air trafc control charges (+ 2.7 per cent). Expenses for the airbtrafc tax went up by 8.6 per cent to EUR 176m, partly due to the tax that has been levied in Austria since 1 April 2011. Other purchased services totalled EUR 1.4bn, 2.8 per cent less than last year, due primarily to lower charter expenses. Staff costs rose by 2.7 per cent in conjunction with a 2.6 per cent increase in the average number of employees to 117,359, not counting the staff at bmi. Additional expenses from currency movements and wage agreements were offset by a reduction in
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costs resulting from pension provisions. The latter resulted mainly from adjustments to retirement saving schemes for cabin crew from Austrian Airlines which were agreed when the carriers ight operations were transferred to Tyrolean Airways. Depreciation and amortisation rose to EUR 895m (+ 8.9 per cent). Depreciation of aircraft accounted for EUR 23m of the increase (+ 3.4 per cent). Of the total impairment losses of EUR 47m (previous year: EUR 7m), EUR 45m (previous year: EUR 6m) related tobaircraft: in particular three Boeing 747-400s and seven B737300s, which have been decommissioned or are held for disposal. Impairment losses of EUR 12m were also incurred on the three B747-400s mentioned above, one Airbus A330-200 and ve Avro RJs shown in the balance sheet as assets held for sale . These impairment charges are recognised in other operating expenses.
Other operating expenses totalled EURb2.6bn, a decrease of 1.8bper cent on the previous year. This fall is mainly attributable to a reduction in exchange rate losses (EUR 28m), which was offset by lower exchange rate gains in other operating income. Reduced expenses for advertising and sales promotion (EUR 11m) also helped to drive the gure down. Last years gure also included expenses from provisions for long-term contracts in the MRO business segment. By contrast, expenses were inated by higher write-downs on current assets (EUR + 32m) and higher staffrelated expenses (EUR + 29m). The other items did not change signicantly compared with last year. Earnings development The loss from operating activities came to EUR 49m for the rst half-year of 2012 (previous year: prot ofbEUR 272m). The operating result, which is regularly adjusted for
Reconciliation of results
Jan. June 2012 in m Total revenue Changes in inventories Other operating income of which book gains and current nancial investments of which income from reversal of provisions of which write-ups on capital assets of which period-end valuation of non-current nancial liabilities Total operating income Cost of materials and services Staff costs of which past service cost Depreciation, amortisation and impairment of which impairment losses Other operating expenses of which impairment losses on assets held for sale non-operating of which expenses incurred from book losses and current nancial investments of which period-end valuation of non-current nancial liabilities Total operating expenses Prot / loss from operating activities Total from reconciliation with operating result Operating result Result from equity investments Other nancial items EBIT Write-downs (included in prot from operating activities) Write-downs on nancial investments, securities and assets held for sale EBITDA Income statement 14,509 71 969 15,549 8,754 3,399 895 2,550 15,598 49 31 148 166 895 29 758 Reconciliation with operating result 27 45 8 8 88 2 47 12 19 41 117 29 20 Jan. June 2011 Income Reconciliation with statement operating result 13,685 24 1,320 15,029 8,028 3,309 822 2,598 14,757 272 17 308 19 822 31 834 62 53 3 128 246 20 7 10 26 25 88 158 114
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Further information
the items shown in the table on p. 6 , was down EUR 134m on lastbyears gure at EUR 20m. However, an operating prot of EUR 361m was generated in the second quarter (previous year: EUR 283m). The adjusted operating margin declined by 1.0 percentage points to 0.2 per cent in the rst half of the year. This is calculated as operating result plus write-backs of provisions divided by revenue.
Operating result and net prot / loss for the period in m (Jan. June)
677
Including the result of discontinued operations (EUR 36m, see notes on p. 27 ) and after minority interests (EUR 7m), the net loss for the rst six months of 2012 came to EUR 168m (previous year: EUR 206m). Earnings per share improved to EUR 0.37 (previous year: EUR 0.45).
381
2008
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2010
Net prot / loss for the period
2012
Operating result
The result from equity investments increased overall by EURb14m to EUR 31m in the reporting period. While the result of the equity valuation fell by EUR 10m, other income from equity investments improved by EUR 24m to EUR 59m. Net interest declined by EURb17m to EUR 161m. The result from other nancial items was up EUR 160m at EURb 148m. This was primarily due to a sharp fall in expenses from negative changes in the value of hedging instruments classied as trading under the denition of IAS 39, which stood atbEURb17m (previous year: EUR 131m). In addition to this, changes in the time value of options used for fuel hedging and recognised in prot or loss led to expenses of EUR 122m (previous year: EURb156m). Earnings before interest and taxes (EBIT) reect the changes in theboperating result, the result from equity investments and from other nancial items and dropped by EUR 147m to EUR 166m atbthe end of the rst half-year. Earnings before taxes (EBT) fell by EUR 164m to EUR 327m. Asbthe pre-tax result was negative and contained non-taxable income, income taxes diminished the loss by EUR 130m. The result from continuing operations therefore came to EUR 197m (previous year: EUR 86m).
13 130
1,242
Free cash ow
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EUR 69m were invested in repairable spare parts for aircraft. The funding requirement was partly covered by interest and dividend income (EUR 264m in total) and proceeds of EUR 280m from thebdisposal of assets and shares in particular aircraft and noncurrent securities. The purchase and sale of current securities andbfunds resulted in a net cash outow of EUR 534m. A total of EUR 1.6bn in net cash was therefore used for capital expenditure and cash management activities (previous year: EUR 173m). Lufthansa recorded a free cash ow of EUR 584m in the six months to June (previous year: EUR 809m). The balance of nancing activities was a net cash inow of EURb7m. New borrowing (EUR 752m) was offset by scheduled capital repayments (EUR 380m), dividend payments (EUR 126m) and interest payments of EUR 235m. The new borrowing consisted of six borrowers note loans, aircraft nancing and an exchangeable bond issue, which can be exchanged for Lufthansas JetBlue shares. Cash and cash equivalents rose by EUR 71m to EUR 958m. This gure includes an increase of EUR 14m in cash balances due to exchange rate movements. The internal nancing ratio was 120.0bper cent (previous year: 117.7bper cent). Cash and cash equivalents including securities totalled EUR 4.6bn at the end of the rst six months and therefore remained virtually unchanged. The detailed cash ow statement can be found on p. 25 .
in other equity investments is primarily attributable to changes inbthe market value of the shares in Amadeus IT Holding S.A. (EURb+ 125m) and in JetBlue (EUR + 11m), which are not recognised in prot or loss. By contrast, non-current derivative nancial instruments (mainly relating to fuel hedging) shrank by a total of EUR 46m. Non-current securities were down EUR 114m following the sale of a borrowers note loan. Loans and receivables also fell by EUR 56m. In current assets, receivables increased by EUR 1.1bn, mainly for seasonal and billing reasons. The reduction in current nancial derivatives (EUR 197m) stems primarily from fuel hedging, offset by higher market values for foreign exchange hedges. Cash and cash equivalents, consisting of current securities, bank balances and cash-in-hand, rose by EUR 575m to EUR 4.6bn. The sale of bmi to IAG on 19 April 2012 resulted in a reduction of EUR 576m in assets held for sale. The proportion of non-current assets in the balance sheet total declined from 66.3 per cent at year-end 2011 to 64.7 per cent currently. Shareholders equity (including minority interests) fell by EURb163m ( 2.0 per cent). It therefore totalled EUR 7.9bn on the reporting date. This reduction is largely due to the negative after-tax result and dividend payments. The equity ratio fell accordingly to 26.8bper cent (year-end 2011: 28.6 per cent). Non-current liabilities and provisions shrank by EUR 142m to EURb10.1bn, while current borrowing was increased by EURb1.6bn to EUR 11.4bn. Within non-current borrowing, pension provisions decreased by EUR 132m. This was partly due to the settlement of bmis pension obligations. Pension provisions also declined in conjunction with the adjustments to retirement saving schemes for cabin crew from Austrian Airlines which were agreed when the carriers ight operations were transferred to Tyrolean Airways. Financial liabilities were up EUR 114m. Derivative nancial instruments increased by EUR 57m. Of this, EUR 49m was attributable to the market value of conversion options associated with the exchangeable bond issued in April 2012, which entitles the holder to acquire Lufthansas shares in JetBlue. The sharp fall of EUR 226m in deferred tax liabilities is mainly due to the loss before income taxes and the non-taxable income included in this gure.
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Further information
31 Dec. 2011 in m 1,456 2,119 2,849 6,424 16 6,440 887 3,111 114 2,328 2,165 4,493 55.9
Change as of 31 Dec. 2011 in % 10.8 9.0 3.0 6.7 25.0 6.6 8.0 16.2 100.0 1.4 6.1 3.7 1.0 pts
1,613 2,309 2,934 6,856 12 6,868 958 3,615 0 2,295 2,033 4,328 54.9
Within the current liabilities, nancial liabilities increased by a totalbof EUR 318m. In addition, trade payables and other nancial liabilities climbed considerably (EUR + 606m) largely for seasonal and billing reasons as did liabilities from unused ight documents (EURb+ 1.2bn). Debt in connection with assets held forbsale shrank by EUR 690m. This was due to the sale of bmi in April 2012. Net indebtedness stood at EUR 2.3bn as of 30 June 2012 and was therefore slightly lower than at year-end 2011. Gearing including pension provisions decreased slightly to 54.9 per cent (year-end 2011: 55.9 per cent) and therefore remains within the target range of 40 to 60 per cent.
SWISS
Austrian
LH Cargo
Group eet 2
Change as of 31.12.11
Change as of 30.6.11 7 3 +3 +3 +3 31 20 2 9 10 73
Airbus A310 Airbus A319 Airbus A320 Airbus A321 Airbus A330 Airbus A340 Airbus A380 Boeing 737 Boeing 747 Boeing 767 Boeing 777 Boeing MD-11F Bombardier CRJ Bombardier Q-Series ATR Avro RJ Embraer Fokker F70 Fokker F100 Total aircraft
1) 2)
7 27 7 19 13
7 9 6 22) 7
78 84 74 37 65 10 57 30 6 4 18 57 14 11 25 42 9 15 18 638
2 11 4
16 2 4
9 3 2 +3 +2 23
1 6 6 8 4 14 41 58
1 14
2 1 24
Lufthansa
11,223 349 179 241 497 1,177 55,913 49,365 126,876 97,626 76.9
Before prot/loss transfer from other companies. Lufthansa Passenger Airlines, SWISS and Austrian Airlines. Including Germanwings. Previous years gures have been adjusted.
Segment structure and course of business The Passenger Airline Group segment comprises Lufthansa Passenger Airlines (including Germanwings), SWISS and Austrian Airlines. They are joined by equity investments such as Brussels Airlines and SunExpress. With the sale of bmi to IAG on 19 April Lufthansa has disassociated itself of a persistently loss-making subsidiary. The Passenger Airline Groups multi-hub strategy gives customers a highest degree of exibility in planning their travel thanks to the different hubs in the group and allows the companies to realise revenue and cost synergies. The course of business in the rst half-year of 2012 reects uctuating and temperamental demand caused by the current economic concerns. Oil prices were also high on average in the rst half, which further impaired earnings. Thanks to strict capacity management, the business segment was able to boost its passenger loadbfactor and average yields and thereby limit the impact on earnings. Nevertheless, the operating result fell short of last years. Operating performance The companies in the Passenger Airline Group carried a total of 49.4 million passengers in the rst six months of 2012. This represents an increase of 3.9 per cent over last year. Due to the segments cautious capacity management, the airlines capacity increased by just 2.3 per cent during the period, while revenue seat-kilometres rose by 3.8 per cent. Consequently, the passenger load factor improved by 1.0 percentage points to 76.9 per cent and average yields rose by 3.7 per cent. Trafc revenue grew by a total of 7.6 per cent.
In the rst half-year of 2012, the business segment succeeded in boosting trafc revenue in all trafc regions, see table on p. 11 . The highest sales growth was recorded in the Europe trafc region, where average yields rose by 2.6 per cent and trafc revenue grew by 7.9 per cent. Trafc revenue increased particularly sharply (11.0 per cent) in the Americas trafc region. With capacity remaining stable, this region saw the most marked improvement in its utilization. Average yields increased by 8.4 per cent as a result. The trend in trafc revenue was also positive in the Asia/Pacic region (+ 4.8 per cent). This was primarily due to sales developments, while average yields remained on a par with last year (+ 0.1bper cent). By contrast, improved average yields (+ 4.0 per cent) were largely responsible for boosting trafc revenue in the Middle East/Africa trafc region by 3.9 per cent. The worlds largest airline alliance Star Alliance celebrated its 15th anniversary in May 2012. Since it was established in 1997 asba group of ve airlines, Star Alliance has grown into a network comprising 27 carriers and now offers 21,500 connections to 1,356 destinations in 193 countries. Avianca, Taca Airlines and Copa Airlines became the latest carriers to join the alliance in Juneb2012, adding almost 50 new airports in Central and Latin America to the network.
10
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Revenue and earnings development Increased trafc meantbthat the segments trafc revenue climbed year on year tobEURb10.3bn (+ 7.6 per cent). In addition to the 3.8 per cent increase in sales volumes, higher prices (+ 1.3 per cent) and exchange rate effects (+ 2.5 per cent) also lifted revenue. In total, revenue grew to EURb11.2bn (+ 7.2 per cent). Other operating income declined by 26.3 per cent to EUR 453m. As well as lower exchange rate gains (EUR 57m) this was due above all to the non-recurring income received in the same period last year (reimbursement of air trafc control charges and compensation payments). Total operating income therefore went up by 5.3 per cent to EURb11.7bn. Compared with the previous year, operating expenses grew by 6.0bper cent to EUR 11.9bn. Fuel costs were the main factor, rising by 23.7 per cent to EURb3.3bn. This drove the cost of materials and services up sharply to EUR 7.7bn (+ 10.2 per cent). Fees and charges were also up by a total of 5.2 per cent to EUR 2.4bn, mainly due to greater trafc. The main components of the increase were higher passenger fees (+ 11.0 per cent), the air trafc tax (+ 8.6 per cent), take-off and landing fees (+ 5.0 per cent) and air trafc control charges (+ 3.0 per cent). Staff costs fell by 0.9 per cent, while the average headcount increased by 2.4 per cent. This is mainly due to a reduction in expenses associated with pension provisions, caused by adjustments to retirement saving schemes for cabin crew from Austrian Airlines which were agreed when the carriers ight operations were transferred to Tyrolean Airways. This reduction was largely offset by cost increases from exchange rate movements and rises resulting from the new wage settlements.
Depreciation and amortisation was up by 6.1 per cent to a total of EUR 697m mainly due to new aircraft deliveries this year and last. Other operating expenses shrank by 4.0 per cent to EUR 1.6bn. Abfall in expenses from exchange rate losses was offset by higher indirect staff costs. At EUR 179m, the operating result for the rst half was EUR 79m below that for the same period last year. Comments on the earnings contributions from the individual airlines can be found on the following pages. Other segment income of EUR 50m (previous year: EUR 66m) was attributable above all to income from write-backs of provisions (EUR 33m) and book gains on the disposal of non-current assets (EUR 10m). Other segment expenses came to EUR 60m (previous year: EURb40m). They include impairment losses of EUR 45m related to three Boeing 747-400s and seven B737-300s, which have been decommissioned or are held for disposal. Impairment losses of EUR 12m were also incurred on one Airbus A330-200 and ve Avro RJs shown in the balance sheet as assets held for sale. Thebresult of the equity valuation of EUR 52m (previous year: EUR 35m) mainly relates to SunExpress and SN Airholding. The segment result fell overall by EUR 132m to EUR 241m. At EUR 1.2bn, the segments capital expenditure was 5.8 per cent lower than last years and was mainly incurred for new aircraft. Inbthe rst half-year, the segment took delivery of two Boeing 7478is, two Airbus A380s, ve A330s, ve A321s, four A320s, two A319s and ve Embraer 195s as part of its ongoing eet modernisation efforts.
Change Jan. June in % 2012 7.9 11.0 4.8 3.9 7.7 4.9 7.6 39,315 4,296 3,037 2,275 48,923 442 49,365
Change Jan. June in % 2012 4.3 1.8 3.5 2.0 3.9 1.3 3.9 44,232 38,152 29,466 12,975 124,825 2,051 126,876
Change Jan. June in % 2012 4.1 0.0 3.4 1.4 2.1 17.8 2.3 31,086 32,038 23,675 9,321 96,119 1,507 97,626
Change Jan. June in % 2012 5.2 2.4 4.7 0.0 3.6 1.1 3.8 70.3 84.0 80.3 71.8 77.0 73.5 76.9
Lufthansa
11
Forecast Capacity management by the companies in the airline group bolstered the load factor and revenue in the period from January to June. However, the increase in income was unable to fully compensate for higher expenses, especially for fuel. The price of oil fell recently, after a volatile half-year. Its further development will inuence the cost side. A great deal of uncertainty still surrounds the future development of market parameters. It is therefore impossible to predict at present whether the robust bookings we are currently seeing will be able to compensate for the additional expenses listed above. In response to this, the airlines in the Passenger Airline Group will continue to manage capacity carefully. As a result, the planned capacities for this year have been readjusted to a growth gure of just 0.5 per cent. These plans include the 2012/2013 winter ight timetable, which isbcurrently expected to comprise approximately 2.5 per cent lessbcapacity than last years. To achieve this goal, Lufthansa Passenger Airlines in particular will decommission a larger number of older planes than originally planned in return for the forthcoming new aircraft deliveries. In the 2012 nancial year, the Passenger Airline Group is still expected to increase its revenue and generate an operating prot. The absolute earnings level nonetheless will depend on the uncertainties described above in view of the external inuences. All thebcarriers are involved in the SCORE programme with the aim ofbbringing about sustainable, structural increases in the airline groups earnings. Forward-looking models are currently being developed to make greater use of synergies.
Operating expenses increased by 7.3 per cent compared with the rst half-year of 2011. This is mainly due to increased expenses forbfuel (EUR + 469m) along with fees and charges (EUR + 74m). The operating result was EUR 154m down on the previous year at EURb 300m. Scheduled services with the rst Boeing 747-8i commenced on the FrankfurtWashington D.C. route on 1 June 2012. This latest member of the Lufthansa eet boasts enhanced fuel efciency and 30 per cent lower noise emissions compared to the B747-400. Lufthansa will take delivery of 20 aircraft of this new type. Four of them are scheduled for delivery this year. The jets will initially operate on routes to North America and India. Furthermore, Lufthansa Passenger Airlines continued to invest in modernising and renewing its in-ight product in all classes of travel during the rst halfyear of 2012. A noticeable, sustained improvement was also made to punctuality in Frankfurt with the opening of the new runway. Duebto the delayed opening of the new Berlin Brandenburg Airport, the planned ights are currently operating out of Berlin Tegel. On 1 June 2012, the remits held by the members of the Executive Board of Lufthansa Passenger Airlines were adjusted and Peter Gerber was given responsibility for the newly created Human Resources and Infrastructure Services Division. He was previously in charge of Finance and Human Resources on the Executive Board of Lufthansa Cargo. On the Executive Board at Lufthansa Passenger Airlines, the previous Finance and Human Resources Division headed by Dr. Roland Busch has taken over responsibility for the Business Development area and has been renamed Finance and Information Management. As part of the Group programme SCORE, Lufthansa Passenger Airlines aims to make an earnings contribution of EURb920m with cost-cutting making up two thirds of this, and the remaining third coming from sustainable increases in earnings. Various projects have already been rolled out to achieve this, such as SPRINT, which is designed to boost protability in intercontinental trafc. The direct4U project strives to merge Lufthansa Direct Services and Germanwings in both business and organisational terms. Itsbaim is to heighten combined competitiveness and turn a prot on decentralised European trafc. Over the remainder of the year, Lufthansa Passenger Airlines expects to see ongoing uncertainty regarding economic developments and key cost items, particularly fuel. Nevertheless, the company still anticipates rising revenue for the 2012 nancial year. Whether it is possible to meet the target of an operating prot depends largely on whether the steps taken are sufcient to compensate for the leap in fuel prices.
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Lufthansa
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Austrian Airlines
Jan. June 2012 1,029 26 104 5,441 6,686 Jan. June 2011 949 64 39 5,094 6,898 166.7 6.7 3.1 Change in % 8.4
The challenging market environment curbed business developments at SWISS. Following a difcult start to the year, business developments remained muted in the second quarter. Despite posting higher revenue of EUR 2.0bn (previous year: EUR 1.9bn), SWISS generated an operating prot of EUR 48m, 53.8 per cent less than a year earlier. This was due to the persistently strong Swiss franc and high fuel prices. Passenger numbers increased by 4.1 per cent to 8.1 million. SWISS upped its sales by 6.5 per cent and took its passenger load factor up to 80.5 per cent (+ 1.2 percentage points). SWISS currently serves 70 destinations in 37 countries with a eet of 97 aircraft. Two new Airbus A330-300s and two A320s were added to the eet. Starting in 2014, SWISS will also replace its entire regional eet of Avro RJs with newly developed aircraft frombthe Bombardier C-Series, which have lower emissions and abreduced noise footprint. SWISSs ground product is also being rened. For instance, a new arrivals lounge was ofcially opened at the Zurich hub in April. Since July, SWISS has also been offering its passengers a home collecting service for luggage. SWISS increased both fuel surcharges and ticket prices on intercontinental and European routes. Since the beginning of the year, SWISS has also initiated extensive measures to safeguard earnings, such as a hiring freeze for administrative staff. As part of the Group programme SCORE, local trafc is also being optimised and fuel management is being stepped up. Decisions will be made on additional structural measures over the coming months. Considering the challenging market environment SWISS expects business to remain difcult for the remainder of 2012. It therefore still looks unlikely that the company will match last years operating result, despite the anticipated growth in sales.
In the six months to June 2012, Austrian Airlines succeeded in raising its passenger numbers by 6.7 per cent to approximately 5.4 million. A moderate 1.6 per cent increase in capacity was more than matched by sales growth of 6.3 per cent. The load factor rose by 3.3 percentage points to 74.0 per cent and revenue climbed by 8.4 per cent to EUR 1.0bn. In early 2012, Austrian Airlines launched a wide-ranging restructuring programme to take the company to sustainable protability. As it proved impossible to reach a consensus about restructuring ight operations in discussions with the bargaining partners, the Executive Board decided on 30 April to transfer ight operations tobthe Group subsidiary Tyrolean Airways. The transfer was completed as planned on 1 July. In connection with this, one-off expenses and income were incurred which affected earnings developments in the rst half-year of 2012. Most of the expenses related to severance payments, while the income was derived from lower future obligations, such as anniversary awards, severance payments and pension payments. As a result, Austrian Airlines increased its operating result in the rst six months of 2012 to EUR 26m (previous year: EUR 64m). Adjusted for the abovementioned non-recurring effects, the operating resultbcame in at EUR 56m. In order to nance the restructuring, Lufthansa decided on a contingent capital increase of up to EURb140m in March 2012. The rst EUR 70m tranche was implemented in July. COO Peter Malanik left the company by mutual agreement effective 25 May 2012. CEO Jaan Albrecht and CCO Karsten Benz have jointly taken over his responsibilities. Austrian Airlines expects demand to keep uctuating and believes that fuel costs will remain high. The effects of the restructuring programme which has been initiated will become apparent in the second half-year of 2012 due to cost-cutting in various areas, such as human resources, fees and charges, and catering. The positive one-off effects from the transfer of ight operations will generate an operating prot in 2012 already.
Lufthansa
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Segment structure and course of business In addition to Lufthansa Cargo AG, the Logistics segment includes Lufthansa Cargo Charter Agency GmbH, the airfreight container specialist Jettainer GmbH and equity investments in the cargo airline AeroLogic GmbH and various handling rms. Lufthansa Cargo markets capacities on its own freighters and chartered cargo aircraft along with belly capacities on passenger planes operated by Lufthansa Passenger Airlines and Austrian Airlines. Demand for freight services was restrained around the world in thebrst half-year of 2012. The high fuel price and the night-ight ban in Frankfurt placed additional pressure on the company. In this challenging market environment, Lufthansa Cargo succeeded in aligning capacities closely with trends in demand, curbing costs and posting a prot at the end of the half-year. In June, the Board of Directors at Lufthansa Cargos joint venture Jade Cargo International Ltd. decided to dissolve the company. This decision followed unsuccessful restructuring negotiations with the Chinese UniTop Group due to difcult market conditions in China. With effect as of 1 June 2012, Peter Gerber previously director ofbnance and human resources at Lufthansa Cargo was appointed Director ofbHuman Resources and Infrastructure Services at Lufthansa Passenger Airlines. The Chairman of the Executive Board and CEO of Lufthansa Cargo, Karl Ulrich Garnadt, has taken on Mr Gerbers previous remit for the time being.
Product and route network Lufthansa Cargo expanded its range of express freight products by adding Courier.Solutions and Emergency.Solutions. The quality initiative launched in the German market in 2010 is still ongoing. In March, Lufthansa Cargo became one of ve airlines inbthe world to receive a platinum seal for its own quality management as part of the IATA industry initiative Cargo 2000. As in the previous years, Lufthansa Cargo was again named best European freight airline at the Cargo Airline of the Year Awards run by the British Air Cargo Media Group. Hellmann Worldwide Logistics granted Lufthansa Cargo its European Award. Lufthansa Cargo continued to further develop its route network without changing capacity by reducing frequencies on individual routes this year. It started operating ights to the Chinese metropolis Chongqing and to Detroit the centre of the US automotive industry using MD-11 freighters for the rst time. In South America, Montevideo was added to the route network. The current summer timetable offers Lufthansa Cargos customers ights to 303 destinations in 99 countries. Operating performance In the rst half-year of 2012, the volume of freight transported fell by 9.2 per cent compared with last year. Lufthansa Cargo responded to this development with targeted capacity adjustments and cancellations on specic frequencies, enabling it to maintain its presence in all markets. As a result, capacity was reduced by 7.6 per cent compared with the rst half-year of 2011. Revenue tonne-kilometres fell by 8.5 percentage points, meaning that the load factor only dipped slightly, to 68.4 per cent. See the table on p. 15 .
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Lufthansa
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Thanks to constant capacity adjustments, the load factor improved in the Pacic/Asia trafc region. Meanwhile, the cargo load factor went down in America, while capacity remained constant. In Europe much like in Asia the company managed to compensate for dwindling demand by adjusting capacities. The load factor rose sharply as a result. In the Middle East/Africa region, markets stabilised in the six months to June 2012. Consequently, the cargo load factor only fell marginally. Revenue and earnings development Lufthansa Cargos revenue shrank by 10.0 per cent in comparison with last year to EUR 1.4bn. Lower trafc revenue of EUR 1.3bn ( 9.6 per cent) was the main reason. Other revenue sank to EUR 50m ( 21.9 per cent), in particular due to lower income from aircraft charters. AtbEUR 38m, other operating income was marginally higher than abyear ago. Total operating income therefore decreased to EURb1.4bn ( 9.7 per cent). Operating expenses came in 4.5 per cent down on the rst half of last year at EUR 1.3bn. This was largely due to the reduced cost of materials and services, which stood at EUR 982m ( 5.4 per cent). This includes fuel expenses, which despite lower transport volumes went up to EUR 258m (+ 3.6 per cent) on the back of a sharp increase in kerosene prices. MRO expenses went up by 6.7 per cent to EUR 64m due to higher prices and more service inspections. These rises in expenses were more than offset by lower charter expenses of EUR 469m ( 11.8 per cent) and reduced air trafc control and handling charges of EUR 141m ( 7.8 per cent). Due to an increase in basic rates of pay and a slightly higher headcount, staff costs rose by 7.4 per cent to EUR 188m. Inbthebreporting period the Logistics segment had an average ofb4,605bemployees (+ 1.8 per cent).
Depreciation and amortisation was 35.6 per cent lower than in the previous year at EUR 29m. This was mainly because depreciation of other MD-11 freighters had come to an end. At EUR 144m, other operating expenses were marginally lower than one year ago. Lufthansa Cargo generated an operating prot of EUR 47m in the rst six months of 2012. As expected, this was below last years gure of EUR 133m. Other segment income which consists largely of provision reversals amounted to EUR 2m in the reporting period (previous year: EUR 5m). There were no other segment expenses. The segment result was EUR 56m (previous year: EUR 137m). This includes pro rata income of EUR 7m (previous year: EUR 0m) from equity investments accounted for using the equity method. Segment capital expenditure went up to EUR 83m in the reporting period (previous year: EUR 35m). The rise was due largely to the down payments for ve Boeing 777F aircraft. Forecast Although the general market environment is challenging, Lufthansa Cargo remains cautiously optimistic about the remainder of the year. This is based on exible, demand-oriented capacity management and ongoing strict cost control. However, abslight upswing in demand is expected towards the end of the year at the earliest. Lufthansa Cargo is still anticipating an operating prot in the three-digit million euro range for the nancial year b2012. A repeat of last years very strong result is not to be expected, however, due to the effects of the night-ight ban in Frankfurt and as demand for airfreight remains hesitant in many markets.
Cargo load factor in % Change in pts 5.1 4.0 2.0 1.2 0.7
Change Jan. June in % 2012 0.0 3.2 16.6 8.8 9.6 299 263 236 68 864
Change Jan. June in % 2012 6.0 9.4 13.1 8.1 9.2 348 2,794 2,621 613 6,376
Change Jan. June in % 2012 17.0 0.3 13.7 4.7 7.6 176 1,886 1,945 353 4,360
Change in Jan. June % 2012 7.6 5.9 11.4 6.6 8.5 50.6 67.5 74.2 57.6 68.4
Lufthansa
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Segment structure and course of business The Lufthansa Technik group consists of 33 technical maintenance rms around the world, including the main site in Hamburg. The company also holds direct and indirect stakes in 56 companies across the world. The group of consolidated companies grew by two companies. Demand for maintenance, repair and overhaul (MRO) services continued to stabilise at lower price levels. The biggest challenges that Lufthansa Technik face are the persistently tense nancial and earnings situation in the airline industry, expanding MRO capacities around the world twinned with market consolidation. As last years result contained one-off expenses, the segment was able to post abmuch higher operating prot for the rst half-year of 2012. Products With its product portfolio, Lufthansa Technik is the worlds market-leading provider of MRO services for commercial aircraft. The company also started providing regular maintenance services for the Boeing 747-8i at Lufthansa Passenger Airlines on 1 June 2012, when the rst passenger ight was completed with the new aircraft model. A number of initial research projects also paved the way for expanding the portfolio with additional green MRO services. Following a decision to realign the group, complete aircraft repainting work in Hamburg ceased at the end of May. Operating performance So far, Lufthansa Technik has signed some 190 new contracts with a volume of EUR 348m for 2012, further adding to the number of customers and aircraft serviced. Major successes in recent months include the signing of a seven-year agreement to supply components to the Scandinavian Airlines eet of approximately 140 aircraft and the extension of thebcompanys collaboration with Airbus. A number of projects have already been initiated as part of the Group-wide programme SCORE. One such project is iSave, which is examining costcutting potential in the engine overhaul unit. The KICK15 project aims to reduce unit costs for component repairs by 15 per cent.
Revenue and earnings development The business segments revenue in the rst six months of 2012 came in at EUR 2.0bn, justbunder the previous years gure. Intra-Group revenue fell by 12.3bper cent compared with last year to EUR 773m due to the sale of bmi and a high-revenue modication programme in 2011. However, external revenue climbed to EUR 1.2bn (+ 6.6 per cent). Other operating income fell to EURb96m due to exchange rate movements (previous year: EUR 111m). Total operating income therefore remained slightly down year on year at EUR 2.1bn ( 2.1bper cent). As a result, total operating expenses decreased by 4.1 per cent to EUR 2.0bn. The cost of materials and services dropped by 7.5 per cent to EUR 973m. Because of the additions of consolidated companies to the group, the average headcount rose by 3.5 per cent to 20,396. In combination with a wage increase in place since the start of the year and additional partial retirement agreements this drove up staff costs by 10.3 per cent to EUR 610m. Depreciation and amortisation came to EUR 49m (EUR + 5m). Other operating expenses fell by 16.6 per cent to EUR 336m due to currency movements and last years provisions for impending losses in connection with long-standing contracts. Lufthansa Technik increased its operating prot to EUR 144m (previous year: EUR 106m). Other segment income rose to EURb18m, whereas the result of the equity valuation remained virtually unchanged at EUR 12m. Lufthansa Technik reported a segment result ofbEUR 173m (+ 32.1 per cent). Segment capital expenditure, which included expenditure on expanding the infrastructure at some sites as well as in the procurement of reserve engines, climbed to EUR 63m (EUR + 12m). Forecast Considering the cost-cutting and sales measures which have been initiated, Lufthansa Technik still expects to see abmoderate increase in revenue for the 2012 nancial year. The company also expects its operating prot to come in slightly up onblast years. This is subject to stable overall developments in the airline industry.
Lufthansa 2nd Interim Report January June 2012
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Segment structure and course of business Lufthansa Systems offers consultancy and IT services for selected industries and is a global leader in the aviation sector. Its portfolio includes advising on, developing and implementing bespoke industry solutions along with operating both systems and applications at its own data centres. In addition to its headquarters and branches in Germany, thebcompany has international sites in 16 countries. Lufthansa Systems succeeded in maintaining its market position in the rst half-year of 2012. The segments revenue and operating result were both up on the rst six months of last year. Products Lufthansa Systems offers an extensive range of products for airlines complex business processes. Its industrial portfolio comprises consultancy, individual applications, proprietary industry solutions and software for specic sectors. As a certied SAP partner, the company also provides a wide spectrum of services in this eld. Lufthansa Systems uses innovations such as cloud computing and mobile technologies for all its solutions, including the wireless in-ight entertainment system BoardConnect, which has won the renown Crystal Cabin Award. Operating performance Lufthansa Systems signed several important contracts in the rst half-year of 2012. Lufthansa Passenger Airlines, Lufthansa Cargo and Star Alliance all extended their contracts for the management of their global data networks. The IT workplace model deskBase is currently being rolled out in several of the Lufthansa Group divisions. The segment gained Air France as a new user of its Lido/Flight planning software. Condor became the rst client to order the new-generation Revenue Integrity product for the identication of blind bookings and duplicates. Both Lufthansa CityLine and Augsburg Airways opted for new crew optimisation solutions. The staff travel system myIDTravel now has more than 140 customers around the world. The industrial division secured new consultancy contracts with Volkswagen and GlaxoSmithKline. Several agreements were also extended: the contract with AirPlus to operate all business-critical credit card handling processes and the SAP operating agreement with Bosch Thermotechnology.
Lufthansa 2nd Interim Report January June 2012
Revenue and earnings development Lufthansa Systems generated revenue of EUR 301m in the six months to June 2012 (+ 4.2bper cent). This growth was primarily attributable to higher revenue with non-Lufthansa Group clients, which came in at EURb126m (EUR + 16m). By contrast, intra-Group revenue fell slightly to EUR 175m (EUR 4m). Other operating income came tobEURb8m in the reporting period (previous year: EURb 3m). As abresult, total operating income went up to EUR 309m (EUR + 9m). Total operating expenses amounted to EUR 301m (EUR + 7m) inbthe period under review. This was partly due to a rise in the costbof materials and services to EUR 44m (EUR + 5m), caused bybthe elevated volume of sales. Lufthansa Systems employed 2,788 members of staff in the period from January to June ( 3.0bper cent). Staff costs climbed to EUR 120m (EUR + 4m) in connection with pay increases from wage settlements and higher expenses for partial retirement. Depreciation and amortisation stood at EUR 18m (EUR + 2m). At EUR 119m, other operating expenses were down EUR 4m on last year. The operating result came in at EUR 8m, exceeding the previous years gure by EUR 2m. The segment result was EUR 7m (EURb+ 3m). Capital expenditure on property, plant and equipment plus intangible assets fell to EURb10m (previous year: EURb16m). The higher level of capital expenditure was prompted by implementation activities associated with the IT workplace model deskBase. Forecast The restructuring completed in 2011 lays the foundations for a return to protable growth in the current nancial year and thereafter. Revenue from Lufthansa Passenger Airlines will decrease in the medium term because the company will make increasing use of lower-cost technologies. However, the segment will step up its focus on new and additional business with external clients. Overall, Lufthansa Systems therefore still expects to see positive developments in its revenue and earnings for the 2012 nancial year.
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Segment structure and course of business The LSG Sky Chefs group consists of 149 companies with approximately 200 sites inb52 countries. The groups parent company is LSG Lufthansa Service Holding AG, based in Neu-Isenburg. The group of consolidated companies was expanded by a total of 14 companies. The proposal to establish a joint venture with the UK-based Alpha Flight Group was approved by the competition authorities and will be implemented by 1 October 2012. In Nuremberg, negotiations with the works council commenced in late June about the planned site closure. Passenger volumes increased moderately on a global scale in the rst half-year. This was reected in all trafc regions. LSG Sky Chefs achieved a higher rst-half operating prot than it did last year. Products LSG Sky Chefs is expanding its capabilities in the eld of equipment and logistics with a strong focus on eco-friendliness and innovativeness. The lightweight Quantum trolley has been helping to slash fuel consumption on Lufthansas long-haul routes since spring and will be used throughout the Condor eet starting in summer. Operating performance LSG Sky Chefs attracted a number ofbnew clients and extended major contracts. For example, its agreements with Thomson Airways in the UK and TUIy Nordic inbScandinavia were both extended. However, the companys long-standing contracts with Virgin Atlantic in the UK and TUIy inbGermany will expire. In early 2012, a new wage agreement was signed for the companys circa 8,000 staff in the USA. This agreement will run until spring 2015. A pay freeze until January 2013 was agreed with the employees in Germany. However, structural negotiations with the trade union in Germany were wrapped up at the end of May without result. Revenue and earnings development LSG Sky Chefs grew its revenue by 10.5 per cent to EUR 1.2bn. Higher volumes and positive effects from currency movements contributed to this increase.
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Other operating income also went up to EUR 42m (EUR +17m). Overall, total operating income went up by 11.8 per cent to EUR 1.2bn. At EUR 1.2bn, total operating expenses were also 11.8 per cent up on last year. The cost of materials and services amounted to EUR 547m (+ 13.7 per cent). In the rst six months, LSG Sky Chefs had an average of 29,638 employees (+ 2.7 per cent). Exchange rate movements, additions to the group of consolidated companies and one-off wage payments in the USA lifted staff costs by 10.4 per cent to EUR 436m. Depreciation and amortisation went up by 14.3 per cent to EURb32m, due to greater capital expenditure in 2011. Other operating expenses rose to EUR 207m (+ 9.5 per cent) due mainly to the higher volume of business. LSG Sky Chefs achieved an operating prot of EUR 23m for the rst six months of 2012 (previous year: EUR 21m). The balance of other segment income in the reporting period came in at EUR 1m and was therefore EUR 3m above last years gure. The result ofbthe equity method valuation was EUR 1m down on last year at EUR 5m. The segment result was in total EUR 29m (previous year: EUR 25m). Segment capital expenditure of EUR 24m was EUR 6m lower than last year. Forecast LSG Sky Chef continues to anticipate a moderate increase in all regions passengers numbers for 2012. However, this will only have a limited effect on growth in catering due to cost pressure from airlines. As part of the SCORE programme, LSG Sky Chefs is focusing on further adjusting its wage structures, completing a critical examination of its site network and administrative departments, and making both more exible. LSG Sky Chefs forecast for the 2012 nancial year remains unchanged: the company anticipates higher revenue than in the previous year. In the light of increasing cost pressure due to the gloomier economic prospects the company now expects its operating prot to be on a par with last years.
Lufthansa
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Other
Other
Jan. June 2012 Total operating income Operating result Segment result EBITDA * Segment capital expenditure Employees as of 30.6. m m m m m number 704 71 77 29 7 4,032 Jan. June 2011 650 0 8 55 12 3,873 Change in % 8.3 47.3 41.7 4.1 April June 2012 356 66 72 83 4 4,032 April June 2011 289 30 30 7 5 3,873 Change in % 23.2 120.0 140.0 20.0 4.1
Structure The segment Other includes the Service and Financial Companies which incorporate the Groups nancial and service activities. They include AirPlus, Lufthansa Flight Training and Lufthansa Commercial Holding. This segment also comprises the Central Group Functions of Deutsche Lufthansa AG. Companies performance Growth on the business travel markets remained stable, with positive double-digit growth rates. Billing revenue for AirPlus business travel products was 13 per cent up on last year. In absolute terms, revenue growth was strongest in Germany, followed by China, Italy, the USA and Canada. This positive trend is also shown in the performance indicators. Total operating income was 3.1 per cent higher and the operating result was also up 5.6 per cent on the previous years gure at EUR 19m. Capacity utilisation for the simulators at Lufthansa Flight Training remained high. Due to the difcult macroeconomic environment, the total operating income was down 1.1 per cent at EUR 89m, while the operating result fell 23.8 per cent year on year to stand at bEUR 16m. Measures are being developed within the Group programme SCORE to sustainably improve the cost structure. The earnings contribution by the Group functions reected exchange rate uctuations, which were very pronounced at times. While the total operating income fell by 11.6 per cent to EUR 335m, operating expenses rose to EUR 446m (+ 4.9 per cent). The operating result came in at EUR 111m (previous year: EURb 46m). Revenue and earnings development Total operating income in the Other segment climbed to EUR 704m (+ 8.3 per cent) in the period under review. Operating expenses rose disproportionately by 19.2 per cent to EUR 775m. This was primarily due to currency movements. The segment therefore reported an operating result ofbEUR 71m (previous year: EUR 0m). The segment result was EUR 77m (previous year: EUR 8m).
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After peaking in spring, fuel prices have fallen due to the less optimistic economic outlook. However, they still remain high. The Groups established hedging mechanisms reduce the risk, but it isbunlikely that the Company will be able to compensate fully for the effect of extra costs by upping income even with ticket price surcharges in a market where competition remains tough. The conrmation of the absolute night-ight ban at Frankfurt Airport will exacerbate distortions to competition, in particular against statesubsidised airlines and air trafc systems. Altogether, and even considering the particular macroeconomic situation and all other known issues and circumstances, there are currently no identiable developments which could endanger the Companys continued existence.
Europes economy will remain strained its growth forecast was recently revised downwards to 0.1 per cent. Germany is in a muchbbetter position than other European countries, having had its economic outlook corrected upwards to 1.0 per cent growth. Nevertheless, the effects of the euro areas sovereign debt crises are expected to be felt here too. Heightened uncertainty about global growth prospects are also impacting oil prices. Futures contracts suggest that on an overall high level the oil price is expected to fall slightly. Lufthansa would benet from this to a large degree as part of its hedging policy. All in all, the airline industrys prot outlook for this year has worsened. The IATA downgraded its net prot forecast for the industry to USD 3.0bn (previous year: USD 7.9bn) in June. Of this, European airlines are expected to account for a loss totalling USD 1.1bn. Lufthansa Group Following a mixed rst half-year, we currently expect the existing trends to continue in the Lufthansa Groups business segments. In the passenger business, robust booking trends continue to be accompanied by high upwards pressure onbcosts from fuel prices. Our efforts are therefore focusing on intensifying measures to cut costs and pursuing our policy of strict capacity and yield management. Rigorous capacity management will also continue in the cargo segment to align developments in costs with demand, which remains restrained. The service segments will have their usual stabilising effect on the Groups earnings performance in 2012. In light of this, we still anticipate a year-on-year increase in Group revenue overall and an operating prot in the mid three-digit million euro range for the 2012 nancial year. This earnings forecast does not take into account the restructuring costs which we expect to incur in connection with the job cuts that are necessary as part of SCORE. As negotiations with the works councils are still ongoing, it is not yet possible to put a nal gure on these restructuring costs. Based on current estimates, we project associated expenses of between EUR 100m and EUR 200m for the 2012 nancial year. However, the measures being undertaken in all business segments as part of this Group-wide programme will sustainably improve earnings quality at the Lufthansa Group. All of the companies will contribute to this, both with individually tailored programmes and with Group-level projects, such as to step up the use of shared business services, optimise local trafc and pool purchasing.
Supplementary report
Since 1 July 2012 no events of particular importance have occurred that could be expected to have a signicant inuence on the net assets, nancial and earnings position.
Forecast
GDP development
in % World Europe Germany North America South America Asia / Pacic China Middle East Africa 2012* 2.7 0.1 1.0 2.0 3.2 5.1 7.8 3.3 4.6 2013* 3.0 0.5 1.1 2.0 3.8 5.1 7.9 3.1 5.2 2014* 3.8 1.2 1.3 2.7 4.6 5.9 8.2 4.6 5.3 2015* 4.1 2.4 1.6 3.3 4.1 5.9 8.2 4.3 5.1 2016* 4.0 2.4 1.7 3.0 4.3 5.6 7.9 4.1 4.9
Macroeconomic outlook The prospects for global economic developments have worsened. They are shaped to a large degree by the progress of the euro areas sovereign debt crises and their effect on the globalised commodity and capital markets. However, the world economy is expected to recover gradually starting in late 2012, driven primarily by the growing rate at which Asias emerging countries are expanding. World trade is also forecast to pick up steadily over the course of the year. Global economic growth ofb2.7 per cent is predicted for 2012; this is lower than last years gure of 3.0 per cent, however.
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Lufthansa
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in m Trafc revenue Other revenue Total revenue Changes in inventories and work performed by entity and capitalised Other operating income Cost of materials and services Staff costs Depreciation, amortisation and impairment Other operating expenses Prot / loss from operating activities Result of equity investments accounted for using the equity method Result of other equity investments Interest income Interest expenses Other nancial items Financial result Prot / loss before income taxes Income taxes Prot / loss from continuing operations Prot / loss from discontinued operations Prot / loss after income taxes Prot / loss attributable to minority interests Net prot / loss attributable to shareholders of Deutsche Lufthansa AG Basic / diluted earnings per share in of which from continuing operations of which from discontinued operations
in m Prot / loss after income taxes Other comprehensive income Differences from currency translation Subsequent measurement of available-for-sale nancial assets Subsequent measurement of cash ow hedges Other comprehensive income from investments accounted for using the equity method Other expenses and income recognised directly in equity Income taxes on items in other comprehensive income Other comprehensive income after income taxes Total comprehensive income Comprehensive income attributable to minority interests Comprehensive income attributable to shareholders of Deutsche Lufthansa AG
Lufthansa
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Total assets
* Including goodwill.
29,361
28,081
29,517
22
Lufthansa
To our shareholders
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29,361
28,081
29,517
Lufthansa
23
Issued capital
Capital reserve
Currency differences
in m As of 31.12.2010 Capital increases / reductions Reclassications Dividends to Lufthansa shareholders / minority interests Consolidated net prot / loss attributable to Lufthansa shareholders / minority interests Other expenses and income recognised directly in equity As of 30.6.2011 As of 31.12.2011 Capital increases / reductions Reclassications Dividends to Lufthansa shareholders / minority interests Transactions with minority interests Consolidated net prot / loss attributable to Lufthansa shareholders / minority interests Other expenses and income recognised directly in equity As of 30.6.2012 1,172 1,366 856 241
Retained earnings
Minority interests
193
339
1,629
2,944 856
8,242 275
98 11
8,340 286
1,172 1,172
1,366 1,366
53 803 766
36 277 322
193 193
2 341 343
15 1,614 1,624
7 6 88 95 11 15
1,172
1,366
65 831
62 384
193
3 346
130 1,754
3,678
168 168
7 3 79
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Lufthansa
To our shareholders
Further information
in m Cash and cash equivalents 1.1. 1) Net prot / loss before income taxes Depreciation, amortisation and impairment losses on non-current assets (net of reversals) Depreciation, amortisation and impairment losses on repairable spare parts for aircraft (net of reversals) Net proceeds on disposal of non-current assets Result of equity investments Net interest Income tax payments / reimbursements Measurement of nancial derivatives through prot or loss Change in working capital 2) Cash ow from continuing operations Cash ow from discontinued operations Cash ow from operating activities Capital expenditure for property, plant and equipment and intangible assets Capital expenditure for nancial investments Increase / decrease in repairable spare parts for aircraft Proceeds from disposal of non-consolidated equity investments Proceeds from disposal of consolidated equity investments Cash outows for acquisitions of non-consolidated equity investments Cash outows for acquisitions of consolidated equity investments Proceeds from disposal of intangible assets, property, plant and equipment and other nancial investments Interest income Dividends received Net cash from / used in investing activities of which from discontinued operations Purchase of securities / fund investments 3) Disposal of securities / fund investments Net cash from / used in investing and cash management activities of which from discontinued operations Capital increase Non-current borrowing Repayment of non-current borrowing Other nancial debt Dividends paid Interest paid Net cash from / used in nancing activities of which from discontinued operations Net increase / decrease in cash and cash equivalents Changes due to currency translation differences Cash and cash equivalents 30.6. 4) Securities Total liquidity Net increase / decrease in total liquidity
1) 2)
Jan. June 2012 887 327 902 36 16 31 161 67 139 947 1,744 82 1,662 1,372 13 69 5 168 275 189 75 1,078 130 851 317 1,612 130 752 380 4 126 235 7 5 57 14 958 3,615 4,573 575
3) 4)
Jan. June 2011 1,097 163 841 4 34 17 144 172 287 840 1,722 30 1,692 1,359 58 18 1 20 287 195 53 883 14 636 1,346 173 6 113 954 8 286 269 1,388 18 131 4 1,232 3,400 4,632 860
April June 2012 915 174 437 11 12 54 78 54 124 152 856 27 829 789 4 14 5 168 52 73 60 785 168 468 92 1,161 168 541 70 8 120 68 275 57 12 870 3,615 4,485 681
April June 2011 1,210 434 414 13 21 31 65 36 80 230 962 25 937 685 20 8 95 77 39 462 5 134 535 61 1 38 555 1 278 86 880 2 4 26 1,232 3,400 4,632 534
Presented for the individual quarter, cash and cash equivalents as of 1 April. Working capital consists of inventories, receivables, liabilities and provisions.
2nd Interim Report January June 2012
Previous year adjusted to current years presentation. In previous year including transfer to LH Pension Trust of EUR 168m.
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Notes
1) Standards applied and changes in the group of consolidated companies The consolidated nancial statements of Deutsche Lufthansa AG and its subsidiaries have been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), taking account of interpretations by the IFRS Interpretations Committee (IFRS IC) as applicable in the European Union (EU).
This interim report as of 30 June 2012 has been prepared in condensed form in accordance with IAS 34. In preparing the interim nancial statements the standards and interpretations applicable as of 1 January 2012 have been applied. The standards mandatory for the rst time as of 1 January 2012 did not have a signicant effect on the Groups net assets, nancial and earnings position. With the exception of the sale of bmi, the changes to the group ofbconsolidated companies (see table) had no signicant inuence on the Groups net assets, nancial and earnings position. The following section provides details of the result posted by bmi, including the proceeds from the companys nal consolidation.
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Further information
2) Notes to the income statement, balance sheet, cash ow statement and segment reporting
Assets held for sale
Group 30.6.2012 Financial statements 31.12.2011 Group 30.6.2011
in m Assets Aircraft and reserve engines Financial assets Other assets Equity / liabilities associated with assets held for sale Shareholders equity Liabilities
66 4 37
172 47 467
73 9 3
26
716
The British Midland Group represented a separate cash-generating unit within the Passenger Airline Group segment of the Lufthansa Group. It is therefore a separate line of business within the meaning of IFRS 5, to which clearly dened cash ows are attributed for operating and accounting purposes. As a result of the contract for the sale of British Midland Ltd. (bmi) to International Consolidated Airlines Group, S.A. (IAG) signed by Deutsche Lufthansa AG and IAG on 22 December 2011, bmi is to be presented in the Groups income statement as a discontinued operation in line with IFRS 5. bmi underwent nal consolidation when the sale transaction was completed on 19 April 2012. The proceeds from the discontinued operation shown in this interim report include the after-tax result recorded for bmi until its disposal and changes in the valuation or proceeds of disposal for the discontinued operation compared with the 2011 nancial statements, which in this case are the proceeds of the aforementioned contractual agreement. The gures for the previous year have been adjusted in accordance with the presentation in the reporting period.
The following table shows the result of the discontinued operations at British Midland Group:
in m Income Expenses Current result from discontinued operations before taxes Taxes on income and earnings for discontinued operations Current result from discontinued operations after taxes Valuation / disposal proceeds from discontinued operations Taxes on valuation / disposal proceeds Valuation / disposal proceeds from discontinued operations after taxes Result from discontinued operations
13 80 135 19 116 36
4 113 113
The result from discontinued operations in the rst half of 2012 was mainly due to price adjustments made as a result of bmis better than expected liquidity position. Assets of EUR 576m and liabilities of EUR 690m attributable to bmi were shown separately in the balance sheet as of 31 December 2011 in accordance with IFRS 5. These were closed out in conjunction with the nal consolidation completed on 19 April 2012. Detailed comments on the income statement, the balance sheet, the cash ow statement and the segment reporting can also be found in the management report on p. 2 20 .
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3) Seasonality The Groups business is mainly exposed to seasonal effects via the Passenger Airline Group segment. As such, revenue in the rst and fourth quarters is generally lower as people travel less, while higher revenue and operating prots are normally earned in the second and third quarters. 4) Contingencies and events after the balance sheet date
Contingent liabilities
in m From guarantees, bills of exchange and cheque guarantees From warranty contracts From providing collateral for third-party liabilities 30.6.2012 907 1,055 46 31.12.2011 874 977 35
30.6.2012 Basic earnings per share Consolidated net prot / loss Weighted average number of shares Diluted earnings per share Consolidated net prot / loss + interest expenses on the convertible bonds current and deferred taxes Adjusted net prot / loss for the period Weighted average number of shares m m m m m 0.37 168 457,937,406 0.37 168 168 457,944,882
Several provisions could not be made because an outow of resources was not sufciently probable. The potential nancial effect of these provisions on the result would have been EURb163m for subsequent years. As of the year-end 2011 reporting date the gure came to EUR 161m. Contracts signed at the end of 2011 for the sale of three Canadair Regional Jet 200s resulted in prots up to 30 June 2012 of EUR 1m and cash inows of EUR 6m. Signed contracts for the sale of four Avro RJ 85s are expected to give rise to cash inows of a further EUR 6m by the end of 2012. At the end of June 2012, there were order commitments of EUR 6.6bn for capital expenditure on property, plant and equipment and intangible assets. As of 31 December 2011, the order commitments came to EUR 7.7bn. Please refer to the comments on p. 20 of the management report for events after the balance sheet date.
6) Issued capital A resolution passed at the Annual General Meeting on 24 April 2009 authorised the Executive Board until 23 April 2014, subject to approval by the Supervisory Board, to increase the Companys issued capital by up to EUR 25m by issuing new registered shares to employees for payment in cash. The new shares are to be offered for sale solely to employees of Deutsche Lufthansa AG and its afliated companies. Existing shareholders subscription rights are excluded. Following a resolution of the Annual General Meeting held on 8 May 2012 the distributable prot of EUR 114m shown in the 2011 nancial statements was paid out as dividends. This corresponds to a dividend of EUR 0.25 per share for the nancial year 2011. The convertible bonds still outstanding as of 31 December 2011, which entitled holders to convert them into 336,404 shares in Deutsche Lufthansa AG at a share price of EURb19.86, were redeemed in full on 4 January 2012.
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Further information
7) Segment reporting
Segment information by operating segment January June 2012
Passenger Airline Group 10,874 10,334 349 11,223 453 11,676 11,855 7,659 1,900 697 1,599 179 50 60 59 52 241 Logistics MRO ITbServices Catering Total reportable operating segments 14,509 11,628 1,586 16,095 637 16,732 16,689 10,205 3,254 825 2,405 43 71 62 59 28 24 Other Reconciliation Group
in m External revenue of which trafc revenue Inter-segment revenue Total revenue Other operating income Total operating income Operating expenses of which cost of materials and services of which staff costs of which depreciation and amortisation of which other operating expenses Operating result 1) Other segment income Other segment expenses of which impairment losses Result of investments accounted for using the equity method Segment result 2) Other nancial result Prot / loss before income taxes Segment assets 3) of which from investments accounted for using the equity method Segment liabilities 4) Segment capital expenditure 5) of which on investments accounted for using the equity method Employees on balance sheet date
1,243 773 2,016 96 2,112 1,968 973 610 49 336 144 18 1 12 173
14,509 11,851 14,509 951 15,460 15,480 8,754 3,401 848 2,477 20 89 118 59 28 77 250 327
15,715
907
3,143
281
1,339
21,385
1,792
6,184
29,361
27 10,451 1,177
53 431 83
193 1,250 63
121 10
87 517 24
6 1,905 7
6,805 21
55,913
4,603
20,345
2,773
29,750
113,384
4,032
117,416
* Rounded below EURb1m. 1) See page 6 of the interim management report for reconciliation between operating result and prot from operating activities. 2) Prot from operating activities including result of investments measured at equity. 3) Intangible assets, property, plant and equipment, investments accounted for using the equity method, inventories, trade receivables and other assets constitute assets. Under the heading Group all assets are shown. 4) All liabilities with the exception of nancial debt, liabilities to Group companies, derivative nancial instruments, other deferred income and tax obligations. Under the heading Group all liabilities are shown. 5) Capital expenditure for intangible assets, property, plant and equipment, and investments accounted for using the equity method.
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in m External revenue of which trafc revenue Inter-segment revenue Total revenue Other operating income Total operating income Operating expenses of which cost of materials and services of which staff costs of which depreciation and amortisation of which other operating expenses Operating result 2) Other segment income Other segment expenses of which impairment losses Result of investments accounted for using the equity method Segment result 3) Other nancial result Prot / loss before income taxes Segment assets 4) of which from investments accounted for using the equity method Segment liabilities 5) Segment capital expenditure 6) of which on investments accounted for using the equity method Employees on balance sheet date
1,490 1,431 13 1,503 36 1,539 1,406 1,038 175 45 148 133 5 1 0* 0* 137
1,166 881 2,047 111 2,158 2,052 1,052 553 44 403 106 14 0* 11 131
13,685 11,243 13,685 1,099 14,784 14,670 8,028 3,288 815 2,539 114 245 87 17 18 254 417 163
15,874
802
2,944
227
1,202
21,049
1,727
6,741
29,517
78 11,083 1,250
40 453 35
156 1,263 51
196 16
68 461 30
6 1,584 12
6,643 43
54,836
8 4,542
1 19,584
2,870
29,210
9 111,042
0* 3,873
3,851
9 118,766
* Rounded below EURb1m. 1) Previous years gures have been adjusted for the result from discontinued operations. 2) See page 6 of the interim management report for reconciliation between operating result and prot from operating activities. 3) Prot from operating activities including result of investments shown at equity. 4) Intangible assets, property, plant and equipment, investments accounted for using the equity method, inventories, trade receivables and other assets constitute assets. Under the heading Group all assets are shown. 5) All liabilities with the exception of nancial debt, liabilities to Group companies, derivative nancial instruments, other deferred income and tax obligations. Under the heading Group all liabilities are shown. 6) Capital expenditure for intangible assets, property, plant and equipment, and investments accounted for using the equity method.
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Lufthansa
To our shareholders
Further information
Declaration by the legal representatives
205 98 303
8) Related party disclosures As stated in Note 49 to the consolidated nancial statements for 2011 from p. 203 , the operating segments in the Lufthansa Group render numerous services to related parties within the scope of their ordinary business activities and also receive services from them. These extensive supply and service relationships take place unchanged on the basis of market prices. There have been no signicant changes in comparison with the balance sheet date. The contractual relationships with the group of related parties described in Note 50 from p. 205 of the 2011 consolidated nancial statements also still exist unchanged, but are not of material signicance for the Group.
Stefan Lauer Member of the Executive Board Chief Ofcer Group Airlines and Corporate Human Resources
Carsten Spohr Member of the Executive Board Chief Ofcer Lufthansa German Airlines
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Lufthansa
Credits
Published by Deutsche Lufthansa AG Von-Gablenz-Str. 2 6 50679 Cologne Germany Entered in the Commercial Register of Cologne District Court under HRB 2168 Editorial staff Frank Hlsmann (Editor) Claudio Rizzo Anne Katrin Brodowski Deutsche Lufthansa AG. Investor Relations Concept. design and realisation HGB Hamburger Geschftsberichte GmbH & Co. KG. Hamburg. Germany Translation by EnglishBusiness GbR. Hamburg. Germany Printed by Broermann Druck + Medien GmbH. Troisdorf. Germany. Printed on Circlesilk Premium White (100 per cent recycled paper bearing the EU Ecolabel. registration number FR/011/003) Printed in Germany ISSN 1616-0258
Contact
Frank Hlsmann Head of Investor Relations + 49 69 696 28001 Gregor Schleussner + 49 69 696 28012 Deutsche Lufthansa AG Investor Relations LAC. Airportring 60546 Frankfurt am Main Germany Phone: + 49 69 696 28008 Fax: + 49 69 696 90990 E-Mail: investor.relations@dlh.de The Lufthansa 2nd Interim Report is a translation of the original German Lufthansa Zwischenbericht 2/2012. Please note that only the German version is legally binding. You can order the Annual and Interim Reports in German or English via our website www.lufthansa.com/investor-relations or from the address above. The latest nancial information on the internet: www.lufthansa.com/investor-relations
Financial calendar
2012 31 Oct. Press Conference and Analysts Conference on interim result January September 2012
2013 14 March Press Conference and Analysts Conference on 2012 results 2 May 7 May 1 Aug. 31 Oct. Release of Interim Report January March 2013 Annual General Meeting in Cologne Release of Interim Report January June 2013 Press Conference and Analysts Conference on interim result January September 2013
This Interim Report was produced using climateneutral printing. The greenhouse gases resulting from this process were offset bybrelevant climate protection activities.
Disclaimer in respect of forward-looking statements Information published in the 2nd Interim Report 2012. with regard to the future development of the Lufthansa Group and its subsidiaries consists purely of forecasts and assessments and not of denitive historical facts. Its purpose is exclusively informational identied by the use of such cautionary terms as believe. expect. forecast. intend. project. plan. estimate or intend. These forward-looking statements are based on all discernible information. facts and expectations available at the time. They can. therefore. only claim validity up to the date of their publication. Since forward-looking statements are by their nature subject to uncertainties and imponderable risk factors such as changes in underlying economic conditions and rest on assumptions that may not or divergently occur. it is possible that the Groups actual results and development may differ materially from those implied by the forecasts. Lufthansa makes a point of checking and updating the information it publishes. It cannot. however. assume any obligation to adapt forward-looking statements to accommodate events or developments that may occur at some later date. Accordingly. it neither expressly nor conclusively accepts liability. nor gives any guarantee. for the actuality. accuracy and completeness of this data and information.