Lufthansa skips dividend as a result of pilot strikes

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Ad-hoc announcement in accordance with Section 15 German Securities Trading Act (WpHG)

Deutsche Lufthansa AG achieves target 2014 with a preliminary operating result of EUR 954m. Preliminary local GAAP result is negative. In line with the dividend policy, the Executive Board proposes not to pay a dividend.

Deutsche Lufthansa AG generates revenues of around EUR 30.0bn in the financial year 2014 (previous year: EUR 30.0bn). The preliminary operating result comes to EUR 954m (previous year: EUR 699m) and the normalized preliminary result to EUR 1,178m (previous year: EUR 1,044m). The strike cost in November and December 2014 amounted to a total of EUR 62m (full year: EUR 232m). The target of an operating result of EUR 1.0bn before strike costs in November and December has been achieved.

The preliminary IFRS result is EUR 55m (previous year: EUR 313m). Earnings per share came to EUR 0.12 (previous year: EUR 0.68). The IFRS result was burdened in particular by changes in the market value of a convertible bond issued in 2012 and by the fall in the fair value of options used for fuel hedging activities.

The preliminary local GAAP result is EUR -732m (previous year: EUR 407m). It was burdened in particular by the sale of the IT Infrastructure segment of Lufthansa Systems AG, which was announced back in October 2014, and by the increase in pension liabilities following the drop in the discount rate from 3.75 to 2.6 per cent. The local GAAP result was also considerably burdened by provisions for contingent losses from fuel hedging activities following the drop in the oil price at the end of the year.

In line with the Company’s long-term dividend policy, the Executive Board of Deutsche Lufthansa AG decided at its meeting today to propose to the Supervisory Board the submission of a proposal not to pay a dividend (previous year: EUR 0.45 per share) since a distribution would not be covered by a sufficient local GAAP result for the year.

Deutsche Lufthansa AG will publish its results for the financial year 2014 as part of its press and analyst conference on 12 March 2015 at 07:30 a.m. CET, on www.lufthansagroup.com/investor-relations.

20.02.15

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