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Beyond this, the principles of sustainable business practices are an important element in steering the Company. The Lufthansa Group follows a value-based management system, which is part of all processes con- cerning planning, steering and control. This approach aims at creating sustainable value across industry cycles. Taking advantage of opportunities, limiting risks The Lufthansa Group identi es signi cant opportunities and risks at an early stage and at regular intervals, and takes them into account in steering the Company. For this reason, the management of opportuni- ties and risks is integrated into all business processes. In particular, the aviation group systematically takes advantage of its opportunities to increase ef ciency, pro- ductivity and competitiveness (see page 69, Annual Report 2015). The opportunities and risks affecting the Lufthansa Group are primarily shaped by macro-economic factors and the resulting in uences on the aviation market and competition. In this context, the Group relies on its ability to adapt capacities and resources exibly to changing market conditions. In addition to economic and regulatory developments, the activities of aviation companies are also highly ex- posed to political crises, weather events and other natural phenomena. The Lufthansa share has been listed on the stock exchange for 50 years and been included in the DAX 30, the index of the most important German listed companies, since its inception in 1988 without interruption. Is this a success story? Very clearly, yes. Since 1966, Lufthansa has evolved to become one of the best- known and most popular German brands. A company with 17,000 employees, revenue of 1 billion DM and a pro t of 50 million DM has grown into an inter- national Group with 120,000 employ- ees, revenue of 32 billion euros and a pro t of 1.8 billion euros. Since 1969, we have paid dividends to our share- holders totaling more than 4.5 billion euros. Despite all challenges – and there are numerous ones in our industry – we have stayed in the DA to this day. The so-called ESG criteria – which refers to environment, social and - cance in deciding in favor or against an investment. Does this also apply to the investors in the Lufthansa Group? Investments focused on sustainability are continuously gaining in importance. Today they have a place in the portfolios of any renowned asset management company. More and more institutional investors have separate departments concerned with ESG, who in uence the weighting of individual values within the Three questions to ANDREAS HAGENBRING Head of Investor Relations Deutsche Lufthansa AG funds based on these criteria. Other investors consult data from external rating agencies such as the CDP and take these into account during the investment decision-making process. Investors in the Lufthansa Group are not an exception in this respect. For inves- tors, it is above all economic sustain- ability and high standards in corporate management that are as important as ecological sustainability. How do investors and rating agencies assess the sustainability performance of the Lufthansa Group and how do you inform the capital market on topics of entrepreneurial responsibility? Investors and rating agencies evaluate a number of criteria and give each one a different weighting. A standardized approach is still lacking in this area. For 2016 we are planning our rst participa- tion in an ESG-focused investor confer- ence. The Lufthansa Group’s sustain- ability performance is seen positively by the capital market. Information about economic sustainability and good cor- porate governance have long been core elements of annual and quarterly reports. Incidentally, in 2015 our Group was again con rmed with top scores in different indices, such as FTSE4Good and the MSCI sustainability indices, which take into account economic as well as eco- logical and social criteria. 20 // Sustainable Business Practices

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