Air France-klm Sa · EURONEXT:AF
Air France-klm Sa — Investor Day (2014)
88 slides from Air France-klm Sa's investor day presentation, 2014
Slide 1: Investor Day - Perform 2020
AIRFRANCE KL Investor day * -> PERFORM 2020
Slide 2: Agenda
Agenda Setting the new ambitions Alexandre de Juniac Operational review Passenger hub activity Alexandre de Juniac Point-to-point passenger activity Frédéric Gagey Transavia Bram Gräber Q&A session Break Cargo Camiel Eurlings Maintenance Franck Terner Q&A session Financial framework Pierre-François
Slide 3: Setting the new ambitions
AIRFRANCE KLM ee ee Setting the new ambitions PERFORM 2020
Slide 4: Agenda: Transform 2015, next phase, Perform 2020 priorities
Agenda Transform 2015: first phase of group turnaround accomplished Key considerations for the next phase Perform 2020 priorities Investor Day 4
Slide 5: Transform 2015: first phase of group turnaround accomplished
Transform 2015: first phase of group turnaround accomplished Strict capacity discipline Successful renegotiation of labour agreements Operational transformation Upscaling of long-haul offer through investment in product and new partnerships Short and medium-haul restructuring well underway
Slide 6: Significant unit cost reduction
Significant unit cost reduction… Net unit cost per EASK in € cents, at constant currency, fuel price and pension expense Change in unit cost 2012 2013 2014 2015 Further -1% reduction ~ -1.5% -2% Annual costs reduced by over €1 billion in 3 years Investor Day 6
Slide 7: Strong improvement in profitability and financial situation
… leading to a strong improvement in profitability and financial situation Full Year Full Year EBITDA Operating cash flow Net debt/EBITDA ratio (€m) €m, before change in WCR sliding 12 months and Voluntary Departure Plans 2.2-2.3 1.6-1.7 1,855 4.9 4.3 1,292 1,344 1,394 2.9 834 2.6 496 FY 2011 FY 201
Slide 8: Agenda: Key considerations for the next phase
Agenda Transform 2015: first phase of group turnaround accomplished Key considerations for the next phase Perform 2020 priorities Investor Day 8
Slide 9: A 5-year plan towards a strengthened enterprise model
A 5-year plan towards a strengthened enterprise model Customers The carrier of choice in all the markets where we operate Financial strength Profitability Investments Employees Shareholders A committed workforce A de-risked group profile, participating in the delivering consistent growth success of
Slide 10: Context remains challenging
Context remains challenging… Weak economic situation in our core markets Tough competition, especially from LCCs and Gulf carriers Competitors continuing to improve their cost positions Unstable geopolitical environment in many of our markets Investor Day 10
Slide 11: Growth opportunities exist in our markets
…but growth opportunities exist in our markets Short and Long-haul travel Medium-Haul Maintenance demand traffic (total market in $bn) to/from Europe within Europe (2007-2013) CAGR +4% excluding inflation +12.5% 89 +4.3% >4.0% 61 +1.9% -0.5% Boeing Airbus 2013 2023 2014-33 2013-32 Total Main Low Oth
Slide 12: Air France-KLM will build on its strengths
Air France-KLM will build on its strengths Network Broadest long-haul network out of Europe, especially to high growth markets 2 of the 4 largest hubs in the heart of Europe Unique portfolio of strategic partnerships in key markets Products Premium product and brand positioning and brands Se
Slide 13: Agenda: Perform 2020 priorities
Agenda Transform 2015: first phase of group turnaround accomplished Key considerations for the next phase Perform 2020 priorities Investor Day 13
Slide 14: Perform 2020 priorities: growth and competitiveness
Perform 2020 priorities: growth and competitiveness Selective development to increase our share of growth markets Smart growth in passenger hub business Transavia development as a pan-European low-cost Profitable service activities around the air transport industry Upgrade products and ser
Slide 15: Air France-KLM in 2020
Air France-KLM in 2020 Long-haul operations at the center of a global network of world class partners An efficient short and medium-haul business including a strengthened low-cost operation A more balanced portfolio of service activities around the air transport industry: cargo, maintenance an
Slide 16: Operational review
/ AIRFRANCE KLM / —See Operational review PERFORM 2020
Slide 17: Operational review agenda
Passenger hub business Alexandre de Juniac Point-to-point activity Frédéric Gagey Transavia development Bram Gräber Cargo restructuring Camiel Eurlings Maintenance Franck Terner Investor Day 17
Slide 18: Three operating platforms for passenger air transportation
Reminder: three operating platforms for passenger air transportation Traffic Operating revenue profit (2013, €bn) (2013, €m) Long-haul 12.8 +800m 64% Short & medium-haul 4.7 €20.1bn -400m hub feeding 23% Point-to-point 1.7 -220m 9% Transavia 0.9 -23m 5% Investor Day 18
Slide 19: Passenger hub business
AIRFRANCE KLIP Passenger hub business PERFORM 2020
Slide 20: Well-positioned to benefit from structural growth in long-haul demand
Well-positioned to benefit from structural growth in long-haul demand Expected annual growth in long-haul market Air France-KLM demand to/from Europe 5,2% Increased customer focus 4,9% 4,9% 4,2% Upgraded product offer 3,1% Leveraging brands and networks Long-haul partnerships, with focus on
Slide 21: Value creation through increased customer focus
Value creation through increased customer focus An improved and upgraded experience In flight On the ground, before and after flight In the digital space A stronger differentiation for each of our B2C brands In order to attract and secure the loyalty of higher contribution passengers Inv
Slide 22: Customer experience improved through €900m product investment
2015-17: customer experience improved thanks to €900m investment in product and service upgrade across all segments 2/3 of long-haul fleet equipped with new product by Summer 2017 Investor Day 22
Slide 23: Sharper brands to reinforce difference and preference
Sharper brands to reinforce difference, complementarity and customer preference Caring Friendly High quality Reassuring Pleasure Dutch openness Investor Day 23
Slide 24: Balanced long-haul network with exposure to higher growth markets
Broader access to growth thanks to balanced long-haul network with significant exposure to higher growth markets Asia-Pacific North America #2 23 #1 (1) 25 (1) Market position Destinations Market Destinations position 27% 28% Caribbean €12.8bn & Indian Ocean long-haul #1 14 revenue 11% Market Destin
Slide 25: Developing long-haul partnerships in Asia-Pacific
Developing long-haul partnerships in Asia-Pacific SkyTeam members A powerful global network of leading airline partners 14 Building joint-ventures 4 and strategic partnerships 7 6 in all key markets 2007 2014 Western Europe, USA Rest of world Ongoing focus on Asia-Pacific Chinese joint-ventu
Slide 26: Further network optimization initiatives
Further network optimization initiatives… Further leverage dual-hub structure Opening of long-haul destination from other hub eased by built-in network complementarity Reinforces competitive position in long-haul markets Implement more extensive code-sharing Investigate opportunities to ad
Slide 27: Efficiency initiatives in hub operations
…combined with efficiency initiatives in hub operations Further efficiency initiatives Adaptation of staffing to increased seasonality “Avenir du hub” project including simplification of processes at CDG Deployment of e-services/self-service New medium-haul fleet densification project at C
Slide 28: Maintaining ongoing capacity discipline
Maintaining ongoing capacity discipline Capacity growth plan – passenger business Change in passenger capacity 2015-17: +1% to +1.5% of which Long-haul: ~2% Hub feeding: ~0% Point-to-point: negative ~1.2% +1.2% +0.6% 2012 2013 2014 2015 2016 2017 Investor Day 28
Slide 29: Perform 2020: further improvement in hub profitability
Perform 2020: further improvement in hub profitability € million Hub(1) operating result 400 ~0 2012 2013 2014 2015 2016 2017 (1) Long-haul + short and medium-haul hub feeding Investor Day 29
Slide 30: Air France's point-to-point network
Restructuring Air France’s point-to-point network
Slide 31: Air France's point-to-point network: a significant asset
Air France’s point-to-point network: a significant asset Air France point-to-point and HOP (1) €1.7 billion revenues, 15 million customers, 34 stations (2) 38 Airbus narrowbody aircraft and 61 regional aircraft Significant market share in France Market-share 77% Market-share Orly-Regions 50%
Slide 32: Transform 2015: network restructuring and cost reduction
Transform 2015: significant network restructuring and cost reduction measures… Network restructuring Point-to-point capacity (billion ASKs) Resizing of regional bases 17 -9% Reduction of activity -19%(2) on multi-frequency domestic routes Transfer of Orly slots to Transavia Network and fle
Slide 33: Commercial initiatives and reorganization of regional activity
…combined with commercial initiatives and reorganization of regional activity Product and brand +5,8% Point-to-point RASK Leisure offer: launch of MiNi fares ex currency (H1 2014 vs. 2013) Business offer: revamped pricing; Business motive traffic up 5% in H1 2014 vs H1 2013 +11% pass holders
Slide 34: Strong improvement in point-to-point operating result
Transform 2015: strong improvement in point-to-point operating result Transform 2015 Point-to-point operating result (Air France + HOP, €m) 2012 2013 2014 Network optimization Cost reduction ~-140 -220 Commercial initiatives -240 Investor Day 34
Slide 35: Preparing the future of Air France group point-to-point
Preparing the future of Air France group point-to-point Improve Air France group’s segmentation on the domestic network: Leverage our assets (network, improved offer, commercial attractiveness, brand awareness…) Continue adaptation: capacity, costs Improve the group’s reactivity and agility
Slide 36: First lever: continue to restructure the network
First lever: continue to restructure the network Reconfigure the Orly network by: Breakdown of point-to-point operating result Optimizing the use of narrowbody (€m) and regional aircraft 2014 losses: ~-140m Expanding Transavia while preserving its network agility Main Secondary shuttle routes
Slide 37: Second lever: cost reduction, with a focus on stations
Second lever: cost reduction, with a focus on stations Rationalize processes Point-to-point manageable cost structure Working hours, back offices… Other Take additional measures Distribution Station costs: to adapt to seasonality Maintenance 40% Develop subcontracting Crew Subcontracting i
Slide 38: Third lever: reposition Air France's offer
Third lever: reposition Air France’s offer to further increase unit revenue Strengthen our promotional AF “value for money” vs. LCC and brand presence Frequencies AF Flexibility Service FFP Recovery Break with Air France’s image of being an expensive airline LCC Leverage the new brand platform
Slide 39: Fourth lever: re-organize Air France point-to-point and HOP
Fourth lever: re-organize Air France point-to-point and HOP Launch a new single Air France-HOP organization with multiple benefits: Increase efficiency through a simpler organization Increase consistency between HOP and Air France offers Clarify the identity and scope of each brand Work in
Slide 40: Aiming for point-to-point breakeven in 2017
Perform 2020: aiming for point-to-point breakeven in 2017 Point-to-point operating result (€m) 2012 2013 2014 2017 Breakeven 1 Further restructuring of network ~90 2 Further cost reduction Full impact 3 Repositioning of offer ~50 of Transform 2015 measures 4 Reorganization ~-140 in single business u
Slide 41: Capturing growth in the European leisure market
Capturing growth in the European leisure market
Slide 42: Leisure market in Europe: growth and fragmentation
Leisure market in Europe: growth and fragmentation European traffic development(1) 2006-2013 European point-to-point CAGR 1.9% demand growing CAGR 12.5% Growth mainly benefiting 2006 2007 2008 2009 2010 2011 2012 2013 low cost carriers Intra European traffic Traffic pan-European airlines CAGR
Slide 43: Unit cost is the key factor in achieving profitable growth
Unit cost is the key factor in achieving profitable growth € cents per ASK, 2013. Source: Airline business, financial reports Cost per ASK vs stage length 9,00 Air Berlin 8,00 7,00 Air Europa Cost per ASK easyJet Jet2 Vueling 6,00 Norwegian Pegasus Transavia Monarch 5,00 Wizz 4,00 Ryanair 3,00 2,00
Slide 44: Transavia development to ensure effective segmentation
Transavia development to ensure effective segmentation of short/medium-haul offer Business/network driven segment Leisure/price driven segment High network quality: Route driven, point-to-point destinations, schedule, Simple, transparent offer, frequency at sharp prices Differentiated offer
Slide 45: Positioning is mature, as a pleasant low fare plus
Positioning is mature, as a “pleasant low fare plus” Product Simple, flexible one-way pricing with fares starting from €29 Fully unbundled product, ancillaries at a fee Focus on innovation, especially on digital side Leveraging Air France-KLM assets Brand Strong brand equity in the Netherl
Slide 46: Transavia: a leader in the Netherlands
Transavia: A leader in the Netherlands, on track to become number one international airline at Paris-Orly by 2016 ~2,000 employees Revenue breakdown(1) 200 routes with 870 weekly Netherlands frequencies to 85 destinations(2) 69% Bases in Amsterdam, Rotterdam, France Eindhoven, Paris-Orly, Lyon
Slide 47: Addressing the challenges in its home markets
Addressing the challenges in its home markets Revenue and operating Unit cost reduction result evolution (€m) Already comparable to other Low Cost 984 Carriers 889 816 Launching plan targeting 15% cost -23 -1 reduction combined with simplification -5 in the Netherlands France: economies of s
Slide 48: Moving to a more pan-European scale
Moving to a more pan-European scale Access to growth outside home markets Initial list of 15-20 airports fitting criteria for base selection Aiming to open 5-10 bases Synergies above €40m in 2017 within Transavia Economies of scale on fixed costs, including IT Broader customer case, bran
Slide 49: 2015-17 development plan will build on existing solid assets
2015-17 development plan will build on existing solid assets Continue fast growth in Orly Transavia fleet plan (number of aircraft) Aiming to open 5-10 bases outside of home markets Targeting #2 or #3 market position with 3 to 10 aircraft in each base Building on existing links with home mar
Slide 50: Transavia in 2017: targeting profitability by 2018
Transavia in 2017: a solid footprint in the fast growing leisure market, targeting profitability by 2018 Among Top 5 low cost carriers in Europe Transavia EBITDAR Low cost leader in the Netherlands target EBITDAR (€m) Largest international airline at Orly #2 or #3 in 5 to 10 markets outside
Slide 51: Finalisation of cargo repositioning
Finalisation of cargo repositioning
Slide 52: Cargo faces a weak market with structural overcapacity
Cargo faces a weak market with structural overcapacity Air freight and passenger volumes (Seasonally Adjusted) No pick-up in air freight volumes Monthly RPK (Billions) Monthly FTK (Billions) since 2011 Structural overcapacity New generation passenger aircraft: 21 tons in a B777-300 vs 12 tons
Slide 53: Transform 2015: fleet and unit cost reduction
Transform 2015: significant fleet and unit cost reduction Cargo capacity and unit costs(1) Reduction of full-freighter fleet Total cargo capacity Unit cost Major initiatives on unit costs 700 FTE reduction since 2011 Unit cost down ~7% over 3 years ~-7% ~-7% New commercial policy, includin
Slide 54: Further full-freighter fleet reduction in Amsterdam
Perform 2020: further full-freighter fleet reduction in Amsterdam… Accelerated phase out of 5 MD11s Full-freighter capacity in Amsterdam (billion ATKs) On top of phase-out of 5 full-freighters already decided in October 2013 25 aircraft Phasing out of MD11 rather than B747-ERF 5 14 aircraft -3
Slide 55: Return to full-freighter profitability by 2017
…ensuring return to full-freighter profitability by 2017 Full-freighter operating result (€m) 2013 2014 2015 2016 2017 An extensive belly network Breakeven Complemented by 5 full-freighter aircraft representing less than 15% of capacity Strong focus on specialized products -110 Investments i
Slide 56: Capturing growth in Engineering & Maintenance
V8 Capturing growth in Engineering & Maintenance
Slide 57: Worldwide MRO market: three segmented businesses
Worldwide Maintenance, Repair and Overhaul (MRO) market: three segmented businesses… Market size(1) Airframe $23bn Three segments: line maintenance, heavy maintenance, modifications 38% Majority of heavy maintenance now performed in lower labor cost countries (labor: 70% of costs) Long-term gr
Slide 58: MRO addressed by three types of players
…addressed by three types of players MRO providers by revenues and product scope Airline shops (larger circle €bn includes internal revenue) Independent players UTC OEMs and OAMs(1): revenues as both suppliers of parts 6 and providers of MRO services GE Airbus Boeing Lufthansa RR PW Embraer Technik
Slide 59: Consolidation is ongoing in the aviation industry
Consolidation is ongoing in the aviation industry, also in MRO Supplier consolidation tier 1 supply chain model Redefined UTC system architectures AF + KL Iberia + BA LHT + Philippine + Hawker + Component MRO Spending Distribution AMECO + HEICO + MALEV +… LH + Austrian Delta + Northwest B777 versus
Slide 60: AFI KLM E&M: a leader in multi-product MRO
AFI KLM E&M: a leader in multi-product MRO… External revenue 15 industrial sites breakdown(1) 7 in France and the Netherlands 8 in other countries Airframe 15% 14,000 employees 12,000 in France and the Netherlands Engines 2,000 in other countries Components 49% 36% 700,000 training hou
Slide 61: A worldwide network of strong brands
…with a worldwide network of strong brands Investor Day 61
Slide 62: Strong improvement in maintenance unit cost
Transform 2015 has ensured a strong improvement in maintenance unit cost Maintenance unit cost evolution (€ per hour, index 100 in 2011) Escalation Efficiency 100 16.4 22.9 93.5 2011 2014 Investor Day 62
Slide 63: Rapid growth of order book
Rapid growth of order book secures significant share of future revenues Order book by region Growth of order book (at 30 June 2014) +55% €5.1bn €4.4bn Americas Europe 24% €3.8bn 34% €3.3bn Africa Asia-Pacific Middle-East 33% 9% Dec 2011 Dec 2012 Dec 2013 30 June 2014 Investor Day 63
Slide 64: Key market trends support growth opportunity
Key market trends support growth opportunity for the group Market trends Key factors of success Continuing market growth, especially in emerging countries, with “shift to the East” Maintain competitive edge as one of the few large players able Customer airlines consolidating and demanding “long te
Slide 65: Engines: leverage overall business position
Engines: leverage overall business position Segment context priorities 6%(1) annual market growth on group engine types portfolio Large engines require significant investment Accommodate in new facilities and know-how the rising proportion of Very Big Engines Challenging market for CFMI engines
Slide 66: Components: increase market share in a growing market
Components: significantly increase market share in a growing market Segment market trends priorities 5%(1) annual growth on aircraft types serviced by group Continue to increase market share Customers require geographical proximity Focus on Americas (volume) Develop network through and Asia/Ch
Slide 67: Perform 2020 ambitions
Perform 2020 ambitions “Be the benchmark player on the market, leveraging a powerful global network” Engines Leverage overall business position Components Significantly increase market share in a growing market Airframe Further reduce cost of group fleet airframe maintenance while guaranteeing airwo
Slide 68: Financial framework
AIRFRANCE KLM ee cell Financial framework PERFORM 202
Slide 69: Transform 2015: strong EBITDA improvement through cost reduction
Transform 2015: Strong EBITDA improvement through cost reduction € billion Unit cost Unit Environment reduction revenues ~600m to ~600m ~700m 2.2 to 2.3 Impact of pension Currency ~-200m accounting ~1.1 Fuel price ~-400m 1.3 (incl. IAS19R) -200m ~1.1 Reported Restated Reported EBITDA EBITDA EBITDA 2
Slide 70: Net debt reduction thanks to strict capex control
Net debt reduction thanks to strict capex control € million Operating Cash flow Free cash before VDP Flow(1) Operating Cash flow Free cash before VDP Flow(1) 1,662 538 VDP ~160 Operating Free cash Net Flow(1) VDP Capex Cash flow VDP before VDP 183 32 ~1,3 -47 Net Net Capex 883 Capex 941 898 2012 201
Slide 71: Managing economic performance
Managing economic performance Profitability EBITDAR (and EBIT) Adjusted net income Value creation ROCE Profit growth Dividend Cash flow generation Capital structure Financial discipline Net debt level Strict capex control Adjusted net debt/ EBITDAR Investor Day 71
Slide 72: Future financial framework: base business
Future financial framework: base business Revenues Capacity discipline Cautious outlook for revenue growth Costs / profitability Restructuring of underperforming activities Operating cost reduction Capital discipline Selective capex management Free cash flow generation Investor Day
Slide 73: Our aim: continuous reduction in unit cost
Our aim: to ensure continuous reduction in unit cost Organization and mapping Rigorous organization building of projects on Transform 2015 experience Bottom up approach defined for each management unit (“cluster”) Use of benchmarks for each cluster Project management office at group level
Slide 74: A deep transformation of the business mix
A deep transformation of the business mix Medium-haul capacity Cargo capacity (ASK) (ATK) Full-freighters Point-to-point 22% Hub 2012 connection 55% Bellies 69% 31% 23% Transavia Point-to-point Hub Full-freighters 10% ~-40% connection ~-60% 46% 85% 2017 ~+5% Bellies 15% 43% Transavia ~+6% ~+130% Inv
Slide 75: Key contributors beyond operational excellence and external cost
Leveraging key contributors beyond traditional efforts on operational excellence and external cost Operational excellence Restructuring Renewal of long-haul fleet Point-to-point Fleet densification Cargo Smarter processes Smaller underperforming Activity by activity business units benc
Slide 76: Targeting further unit cost reduction of 1 to 1.5% per year
Targeting a further unit cost reduction of 1 to 1.5% per year Net unit cost per EASK in € cents, at constant currency, fuel price and pension expense Change in unit cost TRANSFORM 2015 2012 2013 2014 2015 2016 2017 2018-20 -1% ~-1.5% -2% Target: -1 to -1.5% per year Investor Day 76
Slide 77: Cautious long-haul fleet plan
Cautious long-haul fleet plan in line with strict capacity discipline, benefiting from first phase of fleet rewewal Long-haul fleet plan 171 171 172 ‘New’ generation aircraft (787, A350) Current generation aircraft (777, A330, A380) ‘Old’ generation (747-400, A340-300, MD11) 2012 2013 2014 2015 2016
Slide 78: Smart fleet strategy
Smart fleet strategy Operating leases providing Operating lease flexibility strong flexibility Flexibility to reduce up to 50 aircraft 80 within next 6 years based on 70 current contractual conditions Maintaining leadership 60 in long-haul fleet efficiency 50 # aircraft Fleet renewal deliver
Slide 79: Limited increase in fleet capex
Limited increase in fleet capex in spite of initial phase of long-haul fleet renewal € billion Fleet capex 2007/08-2011 2012-2014 2015-2017 Average gross fleet investments ~ 1.2 ~ 0.7 ~ 0.5 Average gross ~ 0.4 SLB & Sales ~ 0.6 proceeds Investor Day 79
Slide 80: Selective capex management
Selective capex management € billion 2015-2017 capex plan Investment plan breakdown ~ 1.6bn Aircraft maintenance ~ 2.2bn and ~ 2.2 ~ 2.2 Net Fleet spare parts ~ 1.9 ~ 0.9bn Product ~ 1.7 ~ 2.0 ~ 2.0 upgrade ~ 1.3 ~ 1.0bn 0.9 Ground ~ 0.7bn Transavia development 2013 2014 2015 2016 2017 Net capex SLB
Slide 81: A pragmatic approach to development opportunities
A pragmatic approach to development opportunities Growth opportunities Conditions Further development Strict hurdle rate for new of Transavia low cost activity investments Expansion of maintenance Deleveraging remains business our priority Higher capacity growth Allocating dedicated in c
Slide 82: To sum up
To sum up Consistent and ongoing focus on cost reduction Strict approach to capex, including smart fleet strategy Funding base business from own cash flow A pragmatic and disciplined approach to development opportunities Credit ratios remain our priority Investor Day 82
Slide 83: Perform 2020 delivering significant increases in profitability
Perform 2020 delivering significant increases in profitability € billion EBITDAR up 8 to 10%(1) per year -200 Maintenance and other Low cost Cargo Passenger +xx 2.8 EBITDAR 2013 EBITDAR 2017 Restructuring Unit cost reduction Development (1) At constant currency, fuel price and pension cost Investor
Slide 84: Medium-term financial objectives (2017)
Medium-term financial objectives (2017) EBITDAR up 8 to 10% per year(1) Adjusted net debt(2) to EBITDAR(2) below 2.5 Existing business consistently generating positive free cash flow Significant growth operations funded through dedicated resources Consistent with a ROCE(2) of 9 to 11% in 201
Slide 85: Conclusion
AIRFRANCE KLM Conclusion PERFORM 202
Slide 86: Air France-KLM in 2020
Air France-KLM in 2020 Long-haul operations at the center of a global network of world class partners An efficient short and medium-haul business including a strengthened low-cost operation A more balanced portfolio of service activities around the air transport industry: cargo, maintenance an
Slide 87: / AIRFRANCE
/ AIRFRANCE a
Slide 88: Calculation of Full Year 2013 ROCE
Calculation of Full Year 2013 ROCE In € millions 31 Dec 2013 Capital Employed Goodwill and intangible assets 1,133 Flight equipment 9,391 Other property, plant and equipment 1,819 Investments in equity associates 177 Financial assets (excluding shares, marketable securities and financial deposits) 1