Lufthansa Technik AG, headquartered in Hamburg, significantly
increased its turnover and profit in 2015, continuing its growth
course. Sales revenues grew by 17.6 per cent to around 5.1 billion
euros (+762 million euros). The company achieved 20 percent growth in
its adjusted EBIT (Earnings Before Interest and Taxes) to 454 million
euros (previous year: 380 million euros). This is revealed in the
consolidated annual report, released today, for Lufthansa Technik AG
and 22 holdings.

“This is a strong result,” said the Chairman of the Executive Board
at Lufthansa Technik AG, Dr. Johannes Bussmann, at the presentation
of the annual results in Hamburg. “We have stayed on our growth path
and have used the year to more strongly position ourselves
internationally and within the regional market. Our customers have
honored these efforts!”

Business with customers outside the Lufthansa Group grew
disproportionately. External revenue from outside the Group grew by
21.8 percent to 3.3 billion euros. Revenue from companies within the
Group rose over the previous year to 1.8 billion euros (+179 million
euros), essentially as a result of the largest modification program
in Lufthansa’s history. Revenue development was further aided by the
US dollar exchange rate.

“Lufthansa Technik has a solid financial foundation. But we have
benefited as well from effects which were out of our control, such as
the dollar rate. It will therefore be a challenge to continue
delivering such results,” commented Constanze Hufenbecher, Chief
Financial Officer at Lufthansa Technik.

In 2015, Lufthansa Technik AG acquired 27 new customers (bringing the
total to around 800) and concluded 375 new contracts with a total
volume within the company itself (excluding subsidiaries) of 3.1
billion euros for 2015 and the following years. The number of
aircraft supported by Lufthansa Technik rose by twelve percent to
around 3,700.

Important contracts cover new aircraft such as the Airbus A350 and
the Boeing 787. Comprehensive new component services contracts, for
example, have been signed with Finnair, the first European operator
of the new Airbus A350, and Air Europa Lineas Aéreas for its Boeing
787 fleet.

“We support all of the world’s modern airliners, including the
A320neo. With this technical expertise, we are outstandingly well
prepared for further growth,” continued Bussmann.

With the opening of a new overseas location in July 2015, in Puerto
Rico, Lufthansa Technik now has its own overhaul site in the
important American market. The opening of the first two of five
planned overhaul lines at Lufthansa Technik Puerto Rico was an
important step in the company’s ongoing internationalization. In
Asia, Lufthansa Technik Philippines brought additional hangar space
for the overhaul of Airbus A380 and Boeing 777 aircraft online.
Construction work has also begun for a new wheels and brakes workshop
in Frankfurt, representing an investment of around 60 million euros
in this German site.

“The market is growing – especially in Asia and South America. And
our customers expect us to be close to them. We will therefore
continue to further expand our international presence, so as to take
advantage of the expected growth in international aviation,” said
Johannes Bussmann.

The market for maintenance and servicing in aviation will grow
further, but it is also going to change significantly. “We are seeing
a powerful dynamic in the aviation industry. At the current time,
more new aircraft models with new technologies, materials,
components, and engines are entering operation than has been the case
for decades. At the same time, new competitors are aggressively
entering the market,” continued Bussmann.

“This dynamic is a great opportunity for us, but it also demands a
considerable willingness to change if we are to remain on a
profitable growth path,” emphasized Constanze Hufenbecher. For 2016,
the company expects turnover growth accompanied by a significant
decline in profit.

The company therefore invested a significant amount of money in
development last year. Major areas of focus are innovation and
product development, including new technologies, mastering new
materials, and the automation of repair processes. Digitalization is
a defining trend, set to bring massive changes to the industry in the
coming years.

“Lufthansa Technik can and must be at the forefront of this. That is
why we are investing many millions of euros in development and
research – right here at our Hamburg site,” emphasized Bussmann.