Deutsche Lufthansa (LHA) investor relations material

Deal rationale and strategic fit

• TAP is a profitable, complementary network carrier; its 2025 EBITDA margin was ~17% and EBIT margin 6%.

• Lisbon adds a South Atlantic hub and primary long-haul gateway, with Porto as a secondary base, supporting growth in Portugal, Brazil and wider Latin America.

• TAP’s ~46% Lisbon seat share, modern fleet and limited network overlap support strategic fit and further European network-carrier consolidation.

• TAP brings MRO, cargo and loyalty capabilities and Star Alliance ties, extending the broader airline platform.

Financial terms and conditions

• Initial 44.9% stake priced at EUR 1.025bn in cash, based on 2025 closing accounts and including a 1.5% annual ticking fee; consideration could rise to EUR 1.2bn for 49.9% if employee-offer shares are unsubscribed.

• Initial purchase is funded from available cash, with no equity issuance; expected to be EPS-accretive in the first full year after closing and deliver double-digit ROCE.

• A non-binding proposal outlines a separate potential purchase of the remaining 50.1% for €1,300m; stock consideration could give the Portuguese government up to 5% ownership.

• A dividend step-up of up to 75% applies during minority ownership; the investment is accounted for under the equity method.

Synergies and expected cost savings

• Up to EUR 450m in combined annual run-rate net synergies across network optimization, commercial cooperation, loyalty, procurement, MRO and cargo.

• Synergies are expected to begin accruing from day one, with roughly two-thirds targeted within three years and full run rate in about four years.

• Synergies are achievable under minority ownership, with most expected at TAP and further upside possible under majority ownership.

• Network coordination could route more Europe–Brazil traffic through Lisbon and feed Portugal traffic into other hubs; other levers include cargo, loyalty, sales, distribution and aircraft sourcing.