New Ambitious Mid-Term Targets Established

Based on the transformation of its operating model, the restructuring of the Group’s cost base to the New Normal and the goal of capitalizing on future opportunities to further strengthen the balance sheet, Lufthansa Group targets to reach an Adjusted EBIT margin of at least 8% by 2024. Combined with a disciplined investment policy and strict working capital management, this will support a return on capital employed (Adjusted ROCE excluding cash) of at least 10% by 2024.

Potential Capital Increase

The Lufthansa Group has appointed four banks to help calibrate a possible capital increase. The net proceeds would contribute in particular to the repayment of stabilization measures of the ESF and to the restoration of a sustainable and efficient long-term capital structure.

The ESF is considering, also taking into account market conditions, to participate in a possible capital increase without the use of additional funds (Opération Blanche / Tail Swallow). If implemented, the ESF might place shares with investors and sell subscription rights on the open market during the rights trading period.

The Executive Board and Supervisory Board have not yet taken a decision on the size and timing of a possible capital increase. In addition, approval by the ESF for this is pending.

WHAT TO TAKE AWAY FROM THIS ARTICLE:

Based on the transformation of its operating model, the restructuring of the Group's cost base to the New Normal and the goal of capitalizing on future opportunities to further strengthen the balance sheet, Lufthansa Group targets to reach an Adjusted EBIT margin of at least 8% by 2024.
The net proceeds would contribute in particular to the repayment of stabilization measures of the ESF and to the restoration of a sustainable and efficient long-term capital structure.
The Executive Board and Supervisory Board have not yet taken a decision on the size and timing of a possible capital increase.