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Balance 2015 ENG

92innovation projects competed in 2014 for the Lufthansa Group’s first-ever internal Innovator Award. “For us, innovation means thinking and acting strategically in an extremely com- petitive environment. That is something we’ve done before very successfully, as the foundation of the Star Alliance and the very first formations of joint ventures in the airline industry show.” Sadiq Gillani Senior Vice President, Group Strategy Deutsche Lufthansa AG Innovation@Lufthansa Group The Lufthansa Group has a proven track record of turning new ideas into successful products and services. Yet innovation management is to receive even greater importance in future. The goal: To be the industry’s pacesetter. To secure the Lufthansa Group’s competitiveness, to guarantee its future viability and to expand its position in the growing market of civil aviation, the Company has launched the strategic program “7to1 – Our way forward”. One of the seven key action areas de- fined by this internal initiative is “Innovation and digitalization”. The campaign aims to make the Lufthansa Group the benchmark again and thus the first choice in aviation for customers, employees, shareholders and partners. Group-wide, the aviation company will invest 500 million euros by 2020 in innovations aimed at further improving products and services. For example, a newly-established innovation fund, en- dowed with a double-digit million euro amount, is to help ideas take flight in the future. An expert committee of top managers can allocate up to 500,000 euros per project in an unbureaucratic way to ensure that especially promising ideas are able to progress especially swiftly. For the Lufthansa Group, innovation means both aligning its internal culture appropriately and incorporating im- pulses from the outside. It is particularly important in this context to correctly structure and steer innovations within the Company. 500million euros are to be invested by the Lufthansa Group by 2020 for internal and external innovations. 8 // Innovation – The key to a successful future

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