Central financial management optimises cash flows throughout the Group

Lufthansa’s financial strategy is aimed at securing stability and permanent freedom of action for the Group; see chapter “Financial strategy”. Optimising short and medium-term cash flows is a prerequisite for efficient financial management. The Lufthansa Group has a centralised financial management function, where all cash flows are pooled. Excess liquidity is invested and new funding is raised externally as required.

The integrated financial and liquidity planning for the whole Group ensures that the Company and its business segments always have sufficient liquidity. The financial reporting system provides all companies in the Lufthansa Group with information on their actual financial status and forecast cash flows. At the end of every month the cash flow planning for all Group companies is entered for the next 24 months. This produces an up-to-date picture of future developments in Group liquidity at all times. The inter-Group financial equalisation mechanism and a cash management system reduce the borrowing requirement and optimise the investment of the liquid funds.

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