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Balance 2015 ENG

the engines turned off – without emissions and noise. In the case of our office buil- dings or our training center in Seeheim, we’ve also paid attention to obtaining the highest-possible levels of energy efficiency. What do you think? How important will the topic of sustainability be for the aviation industry in the future? The worldwide need for mobility increases year after year – in 2014 alone, passenger numbers rose by 5.9 percent. Sustainabil- ity, climate protection and environmental responsibility are becoming ever more important because of this growth. As the world’s largest aviation group, we are an essential part of this development. With innovative products, we want to set new standards and to make our contribution toward an environmentally compatible type of air transport in the future. The largest lever available to us is the investment in new technologies as aircraft will continue to depend on the use of kerosene for the foreseeable future. The aviation industry has set itself ambitious fuel efficiency goals. We are all doing a lot to reach these. But I also recognize the responsibility of policy makers to create the necessary framework of conditions. For example, by implementing the Single European Sky, one of Europe’s largest climate protection projects. Unfortunately, there hasn’t been any progress worth mentioning for 20 years. We’ve just reiter- ated – together with other airline CEOs – our demand in Brussels to accelerate and to realign the implementation of a standard- ized air space over Europe. Shorter and more direct flight routings without unne- cessary detours could reduce the CO2 emissions of European air transport by ten percent a year. And what significance will sustainability have for the Lufthansa Group in the future? I’m convinced that only a sustainable way of steering our Company will secure our long- term success. But the basic condition for all of our activities is economic success. I’ll repeat it here as well: After safety, it’s future viability that has the highest priority for us. The essence of “7to1 – Our way forward” is to expand the strengths of the service companies while openly identifying and harnessing the improvement potentials in the passenger business. In a parallel move all current initiatives, such as the success- fully established steering logic of SCORE, are being transferred into the new strategic program. The future-oriented SCORE pro- gram, which was launched in 2012 and is scheduled to run through 2015, has served to utilize synergies within the Group, lower costs, increase revenues and optimize processes. New concept for value- based management: EACC replaces CVA Since 1999, the Lufthansa Group’s corpo- rate management has been guided by the goal of increasing the Company’s value sustainably and thus across industry cycles. This approach has become an integral part of all planning, steering and control proces- ses. Since the introduction of this value- oriented management system, the Lufthansa Group has used Cash Value Added (CVA) as the main performance indicator. In order to anchor this value-based orientation even more firmly in the Company, Earnings After Cost of Capital (EACC) replaced CVA as the main performance indicator at the beginning of the financial year 2015 (see from page 30, Annual Report 2014). The calculation of EACC is less complex and thus more readily comprehensible for all stakeholder groups. EACC therefore reflects shareholder demands for an appropriate return on capi- tal and sustainable increases in the value of the Company now and in the future. Sustainability Report Balance // Issue 2015 // Lufthansa Group // 21