20th February 2014
FULL YEAR 2013 RESULTS
2013 RESULTS ON TRACK DESPITE CHALLENGING CONTEXT
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Revenues up 2.3% at constant currency to 25.52 billion euros
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EBITDA1 improvement of 461 million euros to 1,855 million euros; return to positive operating result of 130 million euros
- Reported unit cost[1] down 3.8%, and down 2.0% like-for-like
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Adjusted1 net loss of -349 million euros, an improvement of 347 million euros ; net loss, group share of 1.83 billion euros after tax asset impairment
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Robust free cash flow generation
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Significant reduction in net debt1 of over 618 million euros to 5.3 billion euros
2014 OUTLOOK CONFIRMED
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EBITDA1 expected around 2.5 billion euros, subject to there being no reversal in current operating trends
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Ongoing reduction in net debt1 towards 2015 target of 4.5 billion euros
The Board of Directors of Air France-KLM, chaired by Alexandre de Juniac, met on 19th February 2014 to approve the accounts for full year 2013.
Alexandre de Juniac made the following comments: "2013 marked an important stage in the Group's turnaround. We are clearly benefiting from the successful implementation of new working conditions and of the industrial plans adopted in all our businesses. As a result, we returned to a positive operating result despite the persistently challenging environment, generated robust free cash flow and reduced debt beyond initial targets.
The additional measures announced in October 2013 are being implemented in medium-haul and cargo, and will start to bear fruit in the second half. While continuing to focus on strict cost discipline, we are also preparing the group's future, with a major product upgrade at both Air France and KLM, the ongoing adaptation of our medium-haul offer, and the strengthening of our long-haul network. Thanks to the commitment of all its employees, the Air France-KLM Group is undergoing a profound transformation, and I am confident we will return to the path of profitable growth in 2014 and beyond."
Full Year and Fourth Quarter 2013 Results
| Fourth quarter | Full Year | |||||
| 2013 | 2012* | Change | 2013 | 2012* | Change | |
| Revenues (€m) | 6,123 | 6,258 | -2.2% | 25,520 | 25,423 | +0.4% |
| Change excluding currency | +0.7% | +2.3% | ||||
| EBITDA[2] (€m) | 381 | 281 | +100 | 1,855 | 1,394 | +461 |
| EBITDA margin (%) | 6.2 | 4.5 | +1.7pts | 7.3 | 5.5 | +1.8pts |
Operating result (€m) | -65 | -152 | +87 | 130 | -336 | +466 |
Operating margin (%) | -1.1 | -2.4 | +1.3pts | 0.5 | -1.3 | +1.8pts |
| Net result, group share (€m) | -1,177 | -244 | -933 | -1,827 | -1,225 | -602 |
| Adjusted net result, group share2 (€m) | -112 | -126 | +14 | -349 | -696 | +347 |
| Earnings per share (€) | (3.98) | (0.83) | -3.15 | (6.17) | (4.14) | -2.03 |
| Diluted earnings per share (€) | (3.98) | (0.83) | -3.15 | (6.17) | (4.14) | -2.03 |
| Adjusted earnings per share2 (€) | (0.38) | (0.43) | +0.05 | (1.18) | (2.35) | +1.17 |
| Operating free cash flow2 (€m) | 40 | 26 | +14 | 538 | -47 | +585 |
| Net debt2 at end of period (€m) | - | - | - | 5,348 | 5,966 | -618 |
* Restated for IAS19 revised, CityJet reclassified as discontinued operation
Currencies had a marked negative impact of 100 million euros on the Group's Full Year operating result, particularly in the second half of the year (86 million euros).
Full Year 2013 total revenues stood at 25,520 million euros versus 25,423 million euros in 2012, up 0.4%, and by 2.3% on a constant currency basis.
Operating costs declined by 1.4% and were flat on a constant currency basis. Ex-fuel, they rose fractionally by 0.1%, and by 0.8% on a constant currency basis. Unit cost per EASK2 (Equivalent Available Seat Kilometer) was reduced by 3.8%, and by 2% on a constant currency, fuel price and pension expense basis, against capacity in EASK up by 1.6%. The fuel bill amounted to 6,897 million euros, a decline of 5.2% reflecting a currency effect of -3.1%, a 1.8% decline in fuel price after hedging, and a 0.4% reduction in volumes. Employee costs were down 2.4% to 7,482 million euros, and by 2.2% on a constant currency basis. At constant pension expense and scope, and including temps, employee costs fell 218 million euros, in line with the target of a 200 million euro reduction over the full year.
EBITDA amounted to 1,855 million euros, up by 33%, implying an improvement of 461 million euros. The EBITDA margin stood at 7.3%, a 1.8 point improvement on 2012. The operating result for the full year was back in positive territory at 130 million euros versus -336 million euros in 2012, a 466 million euro improvement.
The net result, group share reflected a tax asset impairment of 937 million euros as well as the impact of discontinued operations (CityJet, whose disposal is underway) to the tune of -122 million euros over the full year, to stand at -1,827 million euros against -1,225 million euros a year ago.
The impairment of deferred tax assets relates to tax losses from previous fiscal years which were recognised in the balance sheet. It results from taking into account activity forecasts as they were communicated to the market in October 2013 as well as a reduced visibility on the conditions for applying prior year tax losses. Under current French tax law, deferred tax assets no longer recognised in the balance sheet nevertheless remain available, and the group maintains the right to apply them to future profits. This impairment will not involve any cash out, current or future, and has no impact on the group's liquidity nor its solvency.
On an adjusted basis2, the net result stood at -349 million euros against -696 million in 2012, a 347 million euro improvement.
Earnings and diluted earnings per share stood at -6.17 euros (-4.14 euros in 2012), and at -1.18 euros on an adjusted basis (-2.35 euros in 2012). The Board of Directors decided not to pay a dividend.
In the Fourth Quarter 2013, total revenues for the group stood at 6,123 million euros versus 6,258 million euros a year earlier, down 2.2%, but up 0.7% on a constant currency basis.
Operating costs declined by 3.5% and by 1.3% on a constant currency basis. Ex-fuel, they declined by 2.1% and by 0.9% on a constant currency basis. Unit cost per EASK (Equivalent Available Seat Kilometer) was reduced by 5.2%, and by 1.9% on a constant currency, fuel price and pension expense basis, against capacity in EASK up by 1.9%. The fuel bill amounted to 1,653 million euros, a decline of 7% reflecting a currency effect of -4.8%, a 3.3% decline in fuel price after hedging, and a 0.7% increase in volumes. Employee costs clearly reflected the impact of restructuring, declining by 5.7% to 1,790 million euros, and by 5.5% on a constant currency basis.
EBITDA gained 36% or 100 million euros to 381 million euros, implying a margin of 6.2%, up 1.7 points. The operating result amounted to -65 million euros compared with -152 million euros a year earlier, an improvement of 87 million euros. Elsewhere the group booked a provision of 82 million euros in non-recurring costs for the impairment of two full-freighter aircraft.
The net result, group share stood at -1,177 million euros versus -244 million euros a year earlier, including the impairment expense mentioned above and an impact of -80 million euros relating to discontinued operations (CityJet). Adjusted for these and other one-off items2, the net result, group share was -112 million euros compared with -126 million euros in Q4 2012.
Earnings and diluted earnings per share stood at -3.98 euros (-0.83 euros in Q4 2012), and at -0.38 euros on an adjusted basis (-0.43 euros in Q4 2012).
Passenger business
| Passenger - Full Year | 2013 | 2012* | Change | Change ex-currency |
| Capacity (ASK m) | 272,419 | 268,016 | +1.6% | - |
| Traffic (RPK m) | 228,316 | 223,034 | +2.4% | - |
| Load factor | 83.8% | 83.2% | +0.6 pts | - |
| Total passenger revenues (€m) | 20,112 | 19,976 | +0.7% | +2.6% |
| Scheduled passenger revenues (€m) | 19,176 | 19,065 | +0.6% | +2.4% |
| Unit revenues per ASK (€ cts) | 7.04 | 7.11 | -1.0% | +0.8% |
| Unit revenues per RPK (€ cts) | 8.40 | 8.55 | -1.7% | +0.1% |
| Unit cost per ASK (€ cts) | 6.98 | 7.21 | -3.3% | -1.8% |
| Operating result (€m) | 174 | -260 | +434 | +499 |
* Restated for IAS19 revised, CityJet reclassified as discontinued operation
For Full Year 2013, passenger revenues amounted to 20,112 million euros, up 0.7%, but up by 2.6% on a constant currency basis. The operating result of the passenger business stood at 174 million euros versus -260 million euros in 2012, an improvement of 434 million euros.
Total passenger traffic for the full year rose by 2.4% while capacity rose by 1.6%, leading to a 0.6 point improvement in load factor to 83.8%. Unit revenue per Available Seat Kilometer (RASK) declined by 1.0%, but rose 0.8% on a constant currency basis. Unit costs (CASK) were reduced by 3.3% and by 1.8% at constant currencies.
Long-haul represented 81% of the Group's traffic and 79% of capacity. Long-haul traffic rose 2.5% for a 2.4% rise in capacity. The load factor was stable (+0.1 point) at 85.7%. Long-haul RASK rose by 0.6% on a constant currency basis, driven by economy RASK up 1.2%, while premium RASK was down 0.6%.
Medium-haul traffic rose by 1.7% while capacity was reduced by 1.2%, a clear indication of the positive effects of Transform 2015, leading to a 2.2 point improvement in load factor to 76.8%. Medium-haul RASK improved by 2.4% on a constant currency basis.
| Passenger - Fourth Quarter | 2013 | 2012* | Change | Change ex-currency |
| Capacity (ASK m) | 67,152 | 65,938 | +1.8% | - |
| Traffic (RPK m) | 55,389 | 54,058 | +2.5% | - |
| Load factor | 82.5% | 82.0% | +0.5 pts | - |
| Total passenger revenues (€m) | 4,845 | 4,887 | -0.9% | +2.1% |
| Scheduled passenger revenues (€m) | 4,615 | 4,667 | -1.1% | +1.8% |
| Unit revenues per ASK (€ cts) | 6.87 | 7.08 | -2.9% | -0.1% |
| Unit revenues per RPK (€ cts) | 8.33 | 8.63 | -3.5% | -0.7% |
| Unit cost per ASK (€ cts) | 6.96 | 7.29 | -4.5% | -2.2% |
| Operating result (€m) | -61 | -143 | +82 | +102 |
* Restated for IAS19 revised, CityJet reclassified as discontinued operation
Fourth Quarter 2013 passenger revenues amounted to 4,845 million euros, down 0.9%, but up by 2.0% on a constant currency basis. The operating result of the passenger business stood at -61 million euros, versus -143 million euros in Q4 2012, an improvement of 82 million euros.
Total passenger traffic in the fourth quarter rose by 2.5% while capacity rose by 1.8% leading to a 0.5 point improvement in load factor to 82.5%. Unit revenue per Available Seat Kilometer (RASK) fell by 2.9%, but was almost stable (-0.1%) on a constant currency basis. Unit costs (CASK) were reduced by 4.5% and by 2.2% on a constant currency basis.
Long-haul traffic rose 2.5% for a 3.0% rise in capacity, leading to a 0.4 point decline in load factor to 84.2%. Long-haul RASK was down -0.8% on a constant currency basis, partly reflecting an unfavourable year-on-year comparison base.
Medium-haul traffic rose by 2.4% while capacity was reduced by 2.5% leading to a 3.5 point improvement in load factor to 76.0%. Medium-haul RASK improved by 3.4% on a constant currency basis.
Cargo business
| Cargo - Full Year | 2013 | 2012* | Change | Change ex-currency |
| Capacity (ATK m) | 15,971 | 16 409 | -2.7% | - |
| Traffic (RTK m) | 10,087 | 10 576 | -4.6% | - |
| Load factor | 63.2% | 64.5% | -1.3 pts | - |
| Total Cargo revenues (€m) | 2,816 | 3,057 | -7.9% | -5.7% |
| Scheduled cargo revenues (€m) | 2,619 | 2,872 | -8.8% | -6.7% |
| Unit revenues per ATK (€ cts) | 16.40 | 17.50 | -6.3% | -4.2% |
| Unit revenues per RTK(€ cts) | 25.96 | 27.16 | -4.4% | -2.2% |
| Unit cost per ATK (€ cts) | 17.66 | 18.90 | -6.6% | -4.9% |
| Operating result (€m) | -202 | -230 | +28 | +37 |
* Restated for IAS19 revised
The cargo industry continued to experience weak global trade and industry overcapacity. In this context, Full Year 2013 revenues stood at 2,816 million euros, down 7.9% and by 5.7% on a constant currency basis. The operating result improved by 28 million euros, but remained negative at -202 million euros.
The group reinforced its restructuring measures, with an 11.5% reduction in full freighter capacity versus 6% planned at the beginning of the year. In total though, capacity was reduced by only 2.7% due to a slight increase in belly space. Traffic declined more strongly, by 4.6% leading to a 1.3 point drop in load factor to 63.2%. Unit revenue per Available Ton Kilometer (RATK) declined by 6.3% and by 4.2% on a constant currency basis. Against this, unit cost (CATK) was reduced by 6.6% and by 4.9% on a constant currency basis but was insufficient to meaningfully reduce losses. Additional turnaround measures were announced in October 2013 which are in the process of being implemented.
| Cargo - Fourth Quarter | 2013 | 2012* | Change | Change ex-currency |
| Capacity (ATK m) | 3,955 | 3,991 | -0.9% | |
| Traffic (RTK m) | 2,624 | 2,681 | -2.1% | |
| Load factor | 66.3% | 67.2% | -0.9 pts | |
| Total Cargo revenues (€m) | 723 | 791 | -8.6% | -5.4% |
| Scheduled cargo revenues (€m) | 673 | 746 | -9.8% | -6.6% |
| Unit revenues per ATK (€ cts) | 17.02 | 18,69 | -8.9% | -5.8% |
| Unit revenues per RTK (€ cts) | 25.65 | 27.83 | -7.8% | -4.6% |
| Unit cost per ATK (€ cts) | 17.47 | 19.37 | -9.8% | -7.4% |
| Operating result (€m) | -18 | -27 | +9 | +14 |
* Restated for IAS19 revised
Fourth Quarter 2013 cargo revenues amounted to 723 million euros, down 8.6% and by 5.4% on a constant currency basis. The operating result improved slightly from -27 million euros in Q4 2012 to
-18 million euros. Traffic declined by 2.1% for a 0.9% decline in capacity, leading to a 0.9 point reduction in load factor to 66.3%). Unit revenue per Available Ton Kilometer (RATK) declined by 8.9% and by 5.8% on a constant currency basis. Unit cost per ATK was reduced by 9.8% and by 7.4% on a constant currency basis.
Maintenance
| Maintenance - Full Year | 2013 | 2012* | Change | Change ex- currency |
| Total revenues (€m) | 3,280 | 3,134 | +4.7% | - |
| Third party revenues (€m) | 1,225 | 1,096 | +11.8% | +15.1% |
| Operating result (€m) | 159 | 140 | +19 | +29 |
| Operating margin (%) | 4.8% | 4.5% | +0.3 pts | - |
* Restated for IAS19 revised
In Full Year 2013, maintenance realized third party revenues of 1,225 million euros, up 11.8% and by 15.1% at constant currencies, benefiting from a strong order book. The operating result stood at 159 million euros, up 19 million euros year-on-year, helped by the development of higher margin activities and Transform 2015 efficiency gains. The operating margin stood at 4.8% versus 4.5% a year earlier.
Fourth Quarter 2013 third party maintenance revenues were 298 million euros (316 million euros in Q4 2012), with an operating result of 48 million euros, up 12 million euros year-over-year.
Other business: Transavia
| Transavia - Full Year | 2013 | 2012* | Change | Change ex-currency |
| Capacity (ASK m) | 19,676 | 17,629 | +11.6% | - |
| Traffic (RPK m) | 17,725 | 15,616 | +13.5% | - |
| Load factor | 90.1% | 88.6% | +1.5 pts | - |
| Total passenger revenues (€m) | 984 | 889 | +10.7% | +10.7% |
| Scheduled passenger revenues (€m) | 948 | 851 | +11.4% | +11.4% |
| Unit revenues per ASK (€ cts) | 4.82 | 4.83 | -0.2% | -0.2% |
| Unit revenues per RPK (€ cts) | 5.35 | 5.45 | -1.9% | -1.8% |
| Unit cost per ASK (€ cts) | 4.93 | 4.83 | +2.1% | +1.5% |
| Operating result (€m) | -23 | 0 | -23 | -17 |
* Restated for IAS19 revised
For the Full Year 2013, as planned in the framework of Transform 2015, Transavia capacity was significantly increased, up by 11.6%, of which 25.5% in France. Traffic was up by 13.5%, leading to a 1.5 point rise in load factor to 90.1%. In spite of this high growth, unit revenue was virtually stable at -0.2%. Transavia's revenues stood at 984 million euros, up 10.7%. The operating result was -23 million euros (versus breakeven in 2012), impacted by the political unrest in some Mediterranean destinations and by the launch costs of certain routes.
In the Fourth Quarter 2013, traffic rose 12.9% for capacity up 11.0%, leading to a 1.5 point increase in load factor to 87.3%. Unit revenue was down 2.7%. Transavia's revenue stood at 171 million euros, up 8.9%. The operating result was -35 million euros, down 11 million euros year-over-year.
Other business: Catering
| Catering - Full Year | 2013 | 2012* | Change | Change at constant scope |
| Total revenues (€m) | 915 | 928 | -1.4% | +2.7% |
| Third party revenues (€m) | 341 | 355 | -3.9% | +6.9% |
| Operating result (€m) | 24 | 7 | +17 | - |
* Restated for IAS19 revised
In Full Year 2013, catering revenues stood at 915 million euros, of which 341 million euros with third parties, versus 355 million euros in 2012, down 3.9%, reflecting the deconsolidation of AirChef. At constant scope, third party revenues rose by 6.9%. The operating result improved from 7 million euros to 24 million euros thanks to the measures implemented within the framework of Transform 2015.
For Q4 2013, third party revenues amounted to 75 million euros, down 19% (93 million euros a year earlier). At constant scope, they were up 13.6%. The operating result was 5 million euros versus 2 million euros a year earlier.
Financial situation
| 2013 | 2012* | Change | |
| Cash flow before change in WCR and Voluntary Departure Plans | 1,292 | 834 | +458 |
| Cash out related to Voluntary Departure Plans | -183 | -32 | -151 |
| Change in Working Capital Requirement | +370 | +49 | +321 |
| Operating cash flow | 1,479 | 851 | +628 |
| Net investments before sale & lease-back | -1,064 | -1,530 | +466 |
| Net investments after sale & lease-back | -941 | -898 | -43 |
| Operating free cash flow | 538 | -47 | +585 |
* Restated for IAS19 revised, CityJet reclassified as discontinued operation
The improvement in EBITDA translated into a 458 million increase in cash flow before change in WCR and Voluntary Departure Plan cash-out.
Net investments before sales & lease-back were down 466 million euros to 1,064 million euros, reflecting a strict control of investments and low capacity growth. Net investments after sale & lease-back transactions slightly increased to 941 million euros. In combination with a good performance on working capital requirement, it resulted in an operating free cash flow amounting to 538 million euros, versus -47 million euros in 2012, leading to a significant reduction in net debt from 5.97 billion euros at 31st December 2012 to 5.35 billion euros at 31st December 2013. The financial cover ratios therefore improved considerably, with EBITDA / net interest costs up from 4.0x a year ago to 4.6x. Net debt / EBITDA was reduced from 4.3x to 2.9x.
At 31st December 2013, shareholders' funds amounted to 2.29 billion euros, down 1.35 billion euros year-over-year.
The group continues to enjoy a good level of liquidity, with cash of 4.2 billion euros at December 31st 2013, and undrawn credit lines of 1.8 billion euros. This compares with short term debt of 1.9 billion euros. The shareholding in Amadeus is valued in the region of 900 million euros.
Outlook
The operating environment at the beginning of 2014 remains uncertain in many respects, notably the timing and strength of the economic recovery in the different regions in which we operate, volatile currencies and fuel prices, and industry capacity. Against this backdrop, the initial measures of Transform 2015 are now fully delivering, while the additional measures will start to take effect as of H2 this year. Under these conditions, we continue to target EBITDA in the region of 2.5 billion euros, subject to there being no reversal in current operating trends. We aim to continue to reduce net debt, in line with our objective of 4.5 billion euros during 2015.
*****
The audit procedures for the consolidated accounts have taken place. The certification report will be published following the completion of procedures necessary for the filing of the Registration Document.
The results presentation will be available on www.airfranceklm-finance.com on 20th February 2014 from 7.15h CET.
An Analysts' Meeting will be held on 20th February 2014 at 14.00 CET
at Maison de la Mutualité, 24, rue Saint-Victor - 75005 Paris.
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Audio-web conference:
to connect to the conference call, please dial
- UK 44 (0)20 7162 0125 (password: AKH)
- US 1 334 323 6203 (password: AKH)
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A live broadcast of the Analysts' Meeting will also be available on the website:
www.airfranceklm-finance.com (password: AKHFY)
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To listen to a recording of the conference in English, dial:
- UK 44 (0)20 7031 4064 (code: 2919374)
- US 1 954 334 0342 (code: 2919374)
| Investor relations | Press |
| Bertrand Delcaire | France: +33 1 41 56 56 00 |
| Head of Investor Relations | Netherlands: +31 20 649 45 45 |
| Tel : +33 1 49 89 52 59 | |
| Email: bedelcaire@airfranceklm.com Website: www.airfranceklm-finance.com | |
| www.airfranceklm-finance.com | www.airfranceklm.com |
INCOME STATEMENTS
| Q4 (October to December) | 12 months (January to December) | ||||||
| In euro millions | 2013 | 2012 (restated *) | variation | 2013 | 2012 (restated *) | variation | |
| SALES | 6,123 | 6,258 | -2.2% | 25,520 | 25,423 | 0.4% | |
| Other revenues | 1 | 5 | -80.0% | 10 | 16 | -37.5% | |
| EXTERNAL EXPENSES | -3,890 | -4,048 | -3.9% | -15,997 | -16,272 | -1.7% | |
| Aircraft fuel | -1,653 | -1,778 | -7.0% | -6,897 | -7,278 | -5.2% | |
| Chartering costs | -104 | -137 | -24.1% | -455 | -551 | -17.4% | |
| Aircraft operating lease costs | -221 | -237 | -6.8% | -913 | -949 | -3.8% | |
| Landing fees and en route charges | -443 | -445 | -0.4% | -1,839 | -1,832 | 0.4% | |
| Catering | -143 | -144 | -0.7% | -589 | -591 | -0.3% | |
| Handling charges and other operating costs | -349 | -342 | 2.0% | -1,405 | -1,368 | 2.7% | |
| Aircraft maintenance costs | -327 | -315 | 3.8% | -1,303 | -1,131 | 15.2% | |
| Commercial and distribution costs | -200 | -198 | 1.0% | -852 | -866 | -1.6% | |
| Other external expenses | -450 | -452 | -0.4% | -1,744 | -1,706 | 2.2% | |
| Salaries and related costs | -1,790 | -1,898 | -5.7% | -7,482 | -7,662 | -2.3% | |
| Taxes other than income taxes | -50 | -44 | 13.6% | -186 | -184 | 1.1% | |
| Amortization | -403 | -401 | 0.5% | -1,566 | -1,576 | -0.6% | |
| Depreciation and provisions | -43 | -32 | 34.4% | -159 | -154 | 3.2% | |
| Other income and expenses | -13 | 8 | nm | -10 | 73 | nm | |
| INCOME FROM CURRENT OPERATIONS | -65 | -152 | 57.2% | 130 | -336 | nm | |
| Sales of aircraft equipment | -7 | 2 | nm | -12 | 8 | nm | |
| Sales of subsidiaries | -2 | 0 | nm | 7 | 97 | -92.8% | |
| Other non-current income and expenses | -111 | -117 | -5.1% | -352 | -500 | -29.6% | |
| INCOME FROM OPERATING ACTIVITIES | -185 | -267 | 30.7% | -227 | -731 | 68.9% | |
| Income from cash and cash equivalents | 17 | 22 | -22.7% | 77 | 83 | -7.2% | |
| Cost of financial debt | -122 | -111 | 9.9% | -481 | -436 | 10.3% | |
| Net cost of financial debt | -105 | -89 | -18.0% | -404 | -353 | -14.4% | |
| Foreign exchange gains (losses), net | 30 | 91 | -67.0% | 74 | 64 | 15.6% | |
| Change in fair value of financial assets and liabilities | 72 | 4 | nm | 57 | 63 | -9.5% | |
| Other financial income and expenses | -18 | 6 | nm | -28 | 17 | nm | |
| INCOME BEFORE TAX | -206 | -255 | 19.2% | -528 | -940 | 43.8% | |
| Income taxes | -889 | 36 | nm | -957 | -17 | nm | |
| NET INCOME OF CONSOLIDATED COMPANIES | -1,095 | -219 | -400.0% | -1,485 | -957 | -55.2% | |
| Share of profits (losses) of associates | -1 | -17 | 94.1% | -211 | -66 | -219.7% | |
| INCOME FROM CONTINUING OPERATIONS | -1,096 | -236 | -364.4% | -1,696 | -1,023 | -65.8% | |
| Net income from discontinued operations | -80 | -7 | -nm | -122 | -197 | 38.1% | |
| NET INCOME FOR THE PERIOD | -1,176 | -243 | -384.0% | -1,818 | -1,220 | -49.0% | |
| Minority interest | -1 | -1 | 0.0% | -9 | -5 | 80.0% | |
| NET INCOME FOR THE PERIOD - GROUP | -1,177 | -244 | -382.4% | -1,827 | -1,225 | -49.1% | |
* Restated for IAS 19 Revised, CityJet reclassified as a discontinued operation. See note 2 in notes to consolidated financial statements
CONSOLIDATED BALANCE SHEET
AssetsIn € millions | December 31, 2013 | December 31, 2012 restated (*) | January 1, 2012 restated (*) |
| Goodwill | 237 | 252 | 426 |
| Intangible assets | 896 | 842 | 774 |
| Flight equipment | 9,391 | 10,048 | 10,689 |
| Other property, plant and equipment | 1,819 | 1,932 | 2,055 |
| Investments in equity associates | 177 | 381 | 422 |
| Pension assets | 2,454 | 2,477 | 2,336 |
| Other financial assets | 1,963 | 1,665 | 2,015 |
| Deferred tax assets | 436 | 1,392 | 1,322 |
| Other non-current assets | 113 | 152 | 168 |
| Total non-current assets | 17,486 | 19,141 | 20,207 |
| Assets held for sale | 91 | 7 | 10 |
| Other short-term financial assets | 1,031 | 933 | 751 |
| Inventories | 511 | 521 | 585 |
| Trade accounts receivables | 1,775 | 1,859 | 1,774 |
| Income tax receivables | 23 | 11 | 10 |
| Other current assets | 822 | 828 | 995 |
| Cash and cash equivalents | 3,684 | 3,420 | 2,283 |
| Total current assets | 7,937 | 7,579 | 6,408 |
| Total assets | 25,423 | 26,720 | 26,615 |
* Restated for IAS 19 Revised, CityJet reclassified as a discontinued operation. See note 2 in notes to consolidated financial statements
Liabilities and equityIn € millions | December 31, 2013 | December 31, 2012 restated (*) | January 1, 2012 restated (*) |
| Issued capital | 300 | 300 | 300 |
| Additional paid-in capital | 2,971 | 2,971 | 2,971 |
| Treasury shares | (85) | (85) | (89) |
| Reserves and retained earnings | (944) | 403 | 1,775 |
| Equity attributable to equity holders of Air France-KLM | 2,242 | 3,589 | 4,957 |
| Non-controlling interests | 48 | 48 | 47 |
| Total equity | 2,290 | 3,637 | 5,004 |
| Provisions and retirement benefits | 3,102 | 3,158 | 2,692 |
| Long-term debt | 8,596 | 9,565 | 9,228 |
| Deferred tax liabilities | 178 | 149 | 223 |
| Other non-current liabilities | 397 | 384 | 321 |
| Total non-current liabilities | 12,273 | 13,256 | 12,464 |
| Liabilities relating to assets held for sale | 58 | - | - |
| Provisions | 670 | 555 | 156 |
| Current portion of long-term debt | 2,137 | 1,434 | 1,174 |
| Trade accounts payables | 2,369 | 2,219 | 2,599 |
| Deferred revenue on ticket sales | 2,371 | 2,115 | 1,885 |
| Frequent flyer programs | 755 | 770 | 784 |
| Current tax liabilities | 2 | 3 | 6 |
| Other current liabilities | 2,332 | 2,474 | 2,386 |
| Bank overdrafts | 166 | 257 | 157 |
| Total current liabilities | 10,860 | 9,827 | 9,147 |
| Total liabilities | 23,133 | 23,083 | 21,611 |
| Total liabilities and equity | 25,423 | 26,720 | 26,615 |
* Restated for IAS 19 Revised, CityJet reclassified as a discontinued operation. See note 2 in notes to consolidated financial statements
CONSOLIDATED STATEMENT OF CASH FLOWS
| In € millions Period from January 1 to December 31, | 2013 | 2012 restated (*) |
| Net income from continuing operations | (1,696) | (1,023) |
| Net income from discontinued operations | (122) | (197) |
| Amortization, depreciation and operating provisions | 1,735 | 1,748 |
| Financial provisions | 28 | (15) |
| Gain on disposals of tangible and intangible assets | 12 | (24) |
| Loss / (gain) on disposals of subsidiaries and associates | (6) | (97) |
| Derivatives - non monetary result | (61) | (86) |
| Unrealized foreign exchange gains and losses, net | (114) | (94) |
| Share of (profits) losses of associates | 211 | 66 |
| Deferred taxes | 916 | (21) |
| Impairment | 79 | 173 |
| Other non-monetary | 127 | 372 |
| Subtotal | 1,109 | 802 |
| Of which discontinued operations | (19) | (5) |
| (Increase) / decrease in inventories | 1 | 65 |
| (Increase) / decrease in trade receivables | 59 | (142) |
| Increase / (decrease) in trade payables | 55 | (299) |
| Change in other receivables and payables | 228 | 416 |
| Change in working capital from discontinued operations | 27 | 9 |
| Net cash flow from operating activities | 1,479 | 851 |
| Acquisition of subsidiaries, of shares in non-controlled entities | (27) | (39) |
| Purchase of property plants equipments and intangible assets | (1,186) | (1,465) |
| Loss of subsidiaries, of disposal of shares in non-controlled entities | 27 | 467 |
| Proceeds on disposal of property, plant and equipment and intangible assets | 245 | 742 |
| Dividends received | 17 | 24 |
| Decrease (increase) in net investments, between 3 months and 1 year | 5 | 30 |
| Net cash flow used in investing activities of discontinued operations | (5) | (4) |
| Net cash flow used in investing activities | (924) | (245) |
| Increase in capital | 6 | - |
| Disposal of subsidiaries without loss of control, of owned shares | - | 7 |
| Issuance of debt | 1,887 | 1,780 |
| Repayment on debt | (1,480) | (847) |
| Payment of debt resulting from finance lease liabilities | (588) | (514) |
| New loans | (136) | (90) |
| Repayment on loans | 157 | 100 |
| Dividends paid | (4) | (2) |
| Net cash flow from financing activities | (158) | 434 |
| Effect of exchange rate on cash and cash equivalents and bank overdrafts | (36) | (1) |
| Effect of exchange rate on cash and cash equivalent and bank overdrafts of discontinued operations | 1 | (2) |
| Change in cash and cash equivalents and bank overdrafts | 362 | 1,037 |
| Cash and cash equivalents and bank overdrafts at beginning of period | 3,160 | 2,121 |
| Cash and cash equivalents and bank overdrafts at end of period | 3,518 | 3,160 |
| Change in cash of discontinued operations | 4 | (2) |
* Restated for IAS 19 Revised, CityJet reclassified as a discontinued operation. See note 2 in notes to consolidated financial statements
KEY FINANCIAL INDICATORS
EBITDA
| (In € millions) | 2013 | 2012* |
| Income/(loss) from current operations | 130 | (336) |
| Amortization | 1,566 | 1,576 |
| Depreciation and provisions | 159 | 154 |
| EBITDA | 1,855 | 1,394 |
* Restated for IAS 19 Revised, CityJet reclassified as a discontinued operation
Adjusted operating result and adjusted operating margin
| 2013 | 2012* | |
| Income/(loss) from current operations (in €m) | 130 | (336) |
| Portion of operating leases corresponding to financial charges (34%) (in €m) | 310 | 323 |
| Adjusted income/(loss) from current operations (in €m) | 440 | (13) |
| Revenues (in €m) | 25,520 | 25,423 |
| Adjusted operating margin | 1.7% | (0.1)% |
*Restated for IAS 19 Revised, CityJet reclassified as a discontinued operation
Restated net income
| 2013 | 2012* | |
| Net income/(loss), Group share (in €m) | (1,827) | (1,225) |
| Net income/(loss) from discontinued operations (in €m) | 122 | 197 |
| Impairment of Alitalia shares (in €m) | 119 | - |
| Depreciation of deferred tax assets (in €m) | 937 | - |
| Change in fair value of financial assets and liabilities (derivatives) (in €m) | (57) | (63) |
| Non current income and expenses (in €m) | 357 | 395 |
| Restated net income/(loss) (in €m) | (349) | (696) |
| Restated net income/(loss) per share (in €) | (1.18) | (2.35) |
*Restated for IAS 19 Revised, CityJet reclassified as a discontinued operation
Net debt
| Balance sheet at (In € millions) | December 31, 2013 | December 31, 2012* |
| Current and non-current financial debt | 10,733 | 10,999 |
| Deposits on aircraft under finance lease | (626) | (650) |
| Financial assets pledged (OCEANE swap) | (393) | (393) |
| Currency hedge on financial debt | 8 | 4 |
| Accrued interest | (144) | (112) |
| Gross financial debt (A) | 9,578 | 9,848 |
| Cash and cash equivalents | 3,684 | 3,420 |
| Marketable securities | 126 | 320 |
| Cash pledges | 432 | 243 |
| Deposits (bonds) | 154 | 156 |
| Bank overdrafts | (166) | (257) |
| Net cash (B) | 4,230 | 3,882 |
| Net debt (A) - (B) | 5,348 | 5,966 |
*Restated for IAS 19 Revised, CityJet reclassified as a discontinued operation
Operating free cash flow
| (In € millions) | 2013 | 2012* |
| Net cash flow from operating activities | 1,479 | 851 |
| Investment in property, plant, equipment and intangible assets | -1,186 | -1,465 |
| Acquisition of property, plant, equipment and intangible assets not recorded as investments | - | -175 |
| Proceeds on disposal of property, plant, equipment and intangible assets | 245 | 742 |
| Operating free cash flow | 538 | -47 |
*Restated for IAS 19 Revised, CityJet reclassified as a discontinued operation
Net cost per EASK
| 2013 | 2012* | |
| Revenues (in €m) | 25,520 | 25,423 |
| Income/(loss) from current operations (in €m) | 130 | (336) |
| Total operating expense (in €m) | 25,390 | 25,759 |
| Passenger business - other passenger revenues (in €m) | 936 | 911 |
| Cargo business - other air freight revenues (in €m) | 197 | 185 |
| Third-party revenues in the maintenance business (in €m) | 1,225 | 1,096 |
| Other businesses - revenues other than Transavia transportation (in €m) | 419 | 443 |
| Net cost (in €m) | 22,613 | 23,124 |
| Capacity produced, reported in EASK | 333,480 | 328,188 |
| Net cost per EASK (in € cents per ESKO) | 6.78 | 7.05 |
| Gross change | -3.8% | |
| Currency effect on net costs (in €m) | -307 | |
| Change on constant currency | -2.5% | |
| Oil price effect (in €m) | -126 | |
| Change on a constant currency and fuel price basis | -1.9% | |
| Defined pension benefit expense included in salaries and related costs (in €m) | 379 | 359 |
| Net cost per EASK on a constant currency, fuel price and defined benefit pension expense basis (in € cents per EASK) | 6.78 | 6.92 |
| Change on a constant currency, fuel price and defined benefit pension expense basis | -2.0% |
*Restated for IAS 19 Revised, CityJet reclassified as a discontinued operation
AIR FRANCE-KLM FLEET
| Aircraft | AF | Airlinair* | | Régional | Transavia | Owned | Finance lease | Operating lease | Total | In operation | Change / 12/31/12 |
| B747-400 | 7 | 3 | 1 | 3 | 7 | 7 | |||||
| B777-300 | 37 | 11 | 9 | 17 | 37 | 37 | |||||
| B777-200 | 25 | 15 | 2 | 8 | 25 | 25 | |||||
| A380-800 | 9 | 1 | 4 | 4 | 9 | 9 | +1 | ||||
| A340-300 | 13 | 4 | 6 | 3 | 13 | 13 | +2 | ||||
| A330-300 | |||||||||||
| A330-200 | 15 | 3 | 2 | 10 | 15 | 15 | |||||
| MD11 | |||||||||||
| Long haul | 106 | 37 | 24 | 45 | 106 | 106 | +3 | ||||
| B747-400 cargo | 4 | 2 | 2 | 4 | 2 | -1 | |||||
| B777- cargo | 2 | 2 | 2 | 2 | |||||||
| MD-11-CF | |||||||||||
| MD-11-F | |||||||||||
| Freighter | 6 | 4 | 2 | 6 | 4 | -1 | |||||
| B737 900 | |||||||||||
| B737-800 | 11 | 11 | 11 | 11 | +3 | ||||||
| B737-700 | |||||||||||
| B737-400 | |||||||||||
| A321 | 25 | 6 | 6 | 13 | 25 | 25 | |||||
| A320 | 49 | 10 | 3 | 36 | 49 | 44 | -12 | ||||
| A319 | 42 | 17 | 8 | 17 | 42 | 41 | |||||
| A318 | 18 | 11 | 7 | 18 | 18 | ||||||
| Medium haul | 134 | 11 | 44 | 24 | 77 | 145 | 139 | -9 | |||
| ATR72-500 | 8 | 1 | 3 | 4 | 8 | 8 | +2 | ||||
| ATR72-200 | 1 | 1 | 1 | 1 | -1 | ||||||
| ATR42-500 | 13 | 4 | 4 | 5 | 13 | 13 | |||||
| ATR42-300 | -3 | ||||||||||
| Canadair Jet 1000 | 13 | 13 | 13 | 13 | |||||||
| Canadair Jet 900 | |||||||||||
| Canadair Jet 700 | 15 | 10 | 5 | 15 | 13 | -2 | |||||
| Canadair Jet 100 | 12 | 12 | 12 | 7 | -2 | ||||||
| Embraer 190 | 10 | 4 | 6 | 10 | 10 | ||||||
| Embraer 170 | 16 | 8 | 2 | 6 | 16 | 16 | |||||
| Embraer 145 | 20 | 13 | 7 | 20 | 18 | -5 | |||||
| Embraer 135 | 6 | 4 | 2 | 6 | 2 | +2 | |||||
| Fokker 100 | |||||||||||
| Fokker 70 | |||||||||||
| Regional | 22 | 40 | 52 | 69 | 24 | 21 | 114 | 101 | -9 | ||
| TOTAL | 246 | 22 | 40 | 52 | 11 | 154 | 72 | 145 | 371 | 350 | -16 |
Cityjet : 22 aircraft AVRO RJ85 (19 in operation)
VLM : 12 aircraft FOKKER 50 (12 in operation)
(*) Integrated in the first quarter of 2013
KLM fleet
| Aircraft | KLM | KLM Cityhopper | Transavia | Martinair | Owned | Finance lease | Operating lease | Total | In operation | Change / 12/31/12 |
| B747-400 | 22 | 15 | 2 | 5 | 22 | 22 | ||||
| B777-300 | 8 | 8 | 8 | 8 | +1 | |||||
| B777-200 | 15 | 6 | 9 | 15 | 15 | |||||
| A380-800 | ||||||||||
| A340-300 | ||||||||||
| A330-300 | 4 | 4 | 4 | 4 | +1 | |||||
| A330-200 | 12 | 6 | 6 | 12 | 12 | +1 | ||||
| MD11 | 5 | 4 | 1 | 5 | 4 | -2 | ||||
| Long haul | 66 | 19 | 23 | 24 | 66 | 65 | +1 | |||
| B747-400 cargo | 4 | 3 | 3 | 4 | 7 | 4 | ||||
| B777- cargo | ||||||||||
| MD-11-CF | 3 | 3 | 3 | 3 | -1 | |||||
| MD-11-F | 3 | 2 | 1 | 3 | 3 | +1 | ||||
| Freighter | 4 | 9 | 3 | 5 | 5 | 13 | 10 | |||
| B737 900 | 5 | 2 | 3 | 5 | 5 | |||||
| B737-800 | 24 | 21 | 6 | 10 | 29 | 45 | 45 | +1 | ||
| B737-700 | 18 | 9 | 2 | 9 | 16 | 27 | 27 | -1 | ||
| B737-400 | ||||||||||
| A321 | ||||||||||
| A320 | ||||||||||
| A319 | ||||||||||
| A318 | ||||||||||
| Medium haul | 47 | 30 | 8 | 21 | 49 | 78 | 77 | |||
| ATR72-500 | ||||||||||
| ATR72-200 | ||||||||||
| ATR42-500 | ||||||||||
| ATR42-300 | ||||||||||
| Canadair Jet 1000 | ||||||||||
| Canadair Jet 900 | ||||||||||
| Canadair Jet 700 | ||||||||||
| Canadair Jet 100 | ||||||||||
| Embraer 190 | 24 | 13 | 11 | 24 | 24 | +2 | ||||
| Embraer 170 | ||||||||||
| Embraer 145 | ||||||||||
| Embraer 135 | ||||||||||
| Fokker 100 | ||||||||||
| Fokker 70 | 26 | 26 | 26 | 26 | ||||||
| Regional | 50 | 26 | 13 | 11 | 50 | 50 | +2 | |||
| KLM | 117 | 50 | 30 | 9 | 56 | 62 | 88 | 206 | 202 | +3 |
| TOTAL Air France-KLM Group | 210 | 134 | 233 | 577 | 552 | -13 | ||||
| TOTAL Air France-KLM Group (including Cityjet and VLM airlines) | 233 | 134 | 244 | 611 | 583 | -14 |
[1] See definition in appendix
[2] See definition in appendix
