OP can rest assured, that airline will try to find any reason to decline compensation according to 261/04
I have currently ongoing case where LH refuses to pay compensation due to returned and subsequently cancelled flight due to technical problems with a/c. Because of this I reached my destination 24 hours later. Even, if we are taking into account only destination of flight cancelled, it was the same 24 hours later.
Letter 2 already sent pointing out nonsense of letter 1 received from LH

Letter 2 already included threats to involve EU enforcement body in case they will continue nonsense.