DLH_Balance_2016_ENG

New approach to Com- pany pension scheme There has been an attractive Company pension scheme for Lufthansa employees since 1994. The aviation group attaches great importance to rewarding the perfor- mance of its employees in this additional way. In order to respond to the develop- ments of the capital markets as well as the consequences of demographic change, the Company terminated the bargaining agreement with employees regarding the Company pension plan in September 2013. The goal is to agree with the collective bargaining partners on modern, market- oriented retirement bene ts that sustainably secure the Company’s competitiveness. All pension entitlements previously earned under the Company pension scheme are secured and remain unchanged in any case. The Company’s management has proposed a new Company pension scheme by which Lufthansa would pay amounts into an individual capital account for each employee (de ned contribution system) and invest these funds on the capital market. Under this new system, the amount of the pension payments would be based on actual investment performance rather than on guaranteed pension levels (de ned bene t system). In this system, the amount of pension paid out would depend on the return on capital achieved, among other factors. In addition, all employees would have the option of increasing the level of their Company pension by adding private funds. Collective pay agreement with ver.di in Germany concluded At the end of November 2015, the Lufthansa Group and Vereinigte Dienstleistungsgewerk- schaft (ver.di) agreed to an increase of remu- neration and a fundamentally reformed bar- gaining agreement concerning the Company retirement scheme in the context of an overall package for the roughly 30,000 ground employees in Germany at the companies Lufthansa, Lufthansa Cargo, Lufthansa Technik and LSG Sky Chefs. The bargaining agreement provides for leaving the de ned bene t system over the long-term. Lufthansa Group: Distribution of employees Employees as of December 31, 2015 2015 2014 change Group employees 120,652 118,781 +1.6% of which Passenger Airline Group 55,255 54,960 +0.5% of which Logistics 4,607 4,663 –1.2% of which MRO 20,661 20,079 +2.9% of which Catering 34,310 32,843 +4.5% of which Others 5,819 6,236 –6.7% Lufthansa Group: Jobs throughout the world Employees as of December 31, 2015 Frankfurt 36,907 Hamburg 9,219 Munich 11,015 Cologne 2,165 Berlin 1,045 Rest of Germany 6,569 Total of Germany 66,920 Rest of Europe 23,184 thereof Vienna 5,305 thereof Zurich 7,900 Africa/Middle East 2,121 North/Central America 16,792 South America 3,756 Asia/Paci c 7,879 Group total 120,652 Lufthansa Group: Number of employees by professional group and gender Employees as of December 31, 2015, in percent Female employees Male employees Female 54,408 Male 66,244 45.1 54.9 Apprentices 1,154 24.9 75.1 Ground1 83,415 38.1 61.9 Flight2 36,083 61.8 38.2 Cockpit 9,026 5.6 94.4 Cabin 27,057 80.6 19.4 1 Without apprentices 2 Consists of cockpit and cabin 20152014 change Group employees 120,652118,781 +1.6% of which Passenger Airline Group 55,25554,960 +0.5% of which Logistics 4,6074,663 –1.2% of which MRO 20,66120,079 +2.9% of which Catering 34,31032,843 +4.5% of which Others 5,8196,236 –6.7%

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