Air France-klm Sa · EURONEXT:AF
Air France-klm Sa — Non-Deal Roadshow (July 2021)
23 slides from Air France-klm Sa's roadshow presentation, July 2021
Slide 1: Air France-KLM Investor Presentation
Air France-KLM Investor Presentation JULY 2021
Slide 2: Strategic highlights
oo _ - ss —_ —o— ; —— Strategic highlights
Slide 3: The Covid-19 crisis has strongly challenged our activity
The Covid-19 crisis has strongly challenged our activity 2021 Air France – KLM Group seat capacity has stalled ~50% vs 2019 Air France – KLM Group capacity evolution 2020 – May 2021 %ASK vs same weekday 2019, snapshot May 10th 2021 110 Europe/World lockdown 100 90 Variants emergence in Europe : 80 C
Slide 4: Ramping up summer capacity as restrictions loosen
But as restrictions loosen, we prepare for meeting our customers’ willingness to fly by ramping up summer capacity Air France and KLM Network Passenger capacity forecast %ASK vs 2019, snapshot 21st of May 2021 55% - 65% 50% 48% Q1 2021 Q2 2021 Q3 2021 Source, Internal AFKL, excluding Transavia Franc
Slide 5: Summer 2021 bookings are accelerating
Air France and KLM Summer 2021 bookings are accelerating with the prospect of less stringent restrictions in Europe Booking Load Factor, Air France and KLM full network, for travel in July and August %, adjusted for capacity, 2019, 2020 and 2021, snapshot June 21st, 2021 100% 2021 2020 2019 2021 boo
Slide 6: Plan to overhaul and simplify the Group initiated at end of 2018
Our plan to overhaul and simplify Air France - KLM Group was initiated at the end of 2018 MAINTAIN TRUST & OPTIMIZE OUR TRANSPARENCY WITH OPERATING MODEL OUR EMPLOYEES COMPETITIVENESS GROW PROFITABLE MODERNIZE & PASSENGER OUR FLEET SUSTAINABILITY REVENUES LEADERSHIP LEAD THE WAY IN SUSTAINABLE MAXIM
Slide 7: Key milestones achieved before the global pandemic
Before the global pandemic, we already achieved key milestones… Air France – KLM Group achievements before March 2020 Social stability Operating model 40+ agreements signed at Air France Ambitious transformations to optimize Group functions Fleet modernization Unlocking growth potential Air France o
Slide 8: Since the pandemic, we have strengthened and accelerated our plan
Since the global pandemic, we have strengthened & accelerated our plan Reinforcement and acceleration of the Group’s plan from March 2020 Voluntary Departure Plans Optimize our operating model Reduction of more than 8,700 Full Time Loss making Air France domestic network downsized Equivalent by the
Slide 9: Modernizing and simplifying our fleet
We keep modernizing and simplifying our fleet to support our transformations and live up to our commitments Fleet modernization & simplification with 3 key objectives: Financial Environment Customer Lower unit cost Positive impact on sustainability Improved on-board experience 9
Slide 10: Air France Hop rationalized its fleet, KLM Cityhopper ordered 25 E195-E2
Air France Hop rationalized its fleet, KLM Cityhopper ordered 25 E195-E2 Air France Hop and KLM Cityhopper operational fleets December 31st, 2019 December 31st, 2020 Future fleet E190/170 E145 Phased-out CRJ1000/700 Phased-out Phased-out ATR72-600 E195 E2 E190/175 10
Slide 11: Air France to replace part of medium-haul fleet with A220-300s
In 2021, Air France will start by replacing part of its medium-haul fleet by latest generation A220-300s December 31st, 2019 December 31st, 2020 Future fleet A220-300 A321/A320 A319/A318 Phased-out 737-900/800/700 +future tender 737-800/700 +future tender 11
Slide 12: Long Haul fleet simplification and modernization with A350 and B787
Long Haul fleet simplification and modernization with A350 and B787 December 31st, 2019 December 31st, 2020 Future fleet A350-900 777-200ER/-300ER 787-9 A330-200 A380 Phased-out A340-300 Phased-out 777-200ER/-300ER 787-9/-10 A330-200/-300 Phased-out 747-400 Phased-out 12
Slide 13: Air France: restructuring of the domestic network on track for 2023
Air France: restructuration of the domestic network on track for 2023 2019 2021 achievement rate 2023 Network evolution: Paris Orly Paris Orly Brest Orly routes Brest Nantes Mulhouse 60% Clermont-Ferrand Lyon Brive Bordeaux Aurillac Orly Toulouse Montpellier Marseille Nice ToulouseMontpellier Biarri
Slide 14: Activating all levers to lower environmental footprint
Air France – KLM Group is activating all levers available to airlines to lower its environmental footprint Fleet renewal Reduction of emissions through operational Short Term improvements Carbon offsets Support the development of the biofuel sector Medium Term Further operational improvements such a
Slide 15: Debt and liquidity profile
Debt and liquidity profile 15
Slide 16: Leverage Successfully Taken Down to Investment Grade Like Level, pre COVID-19
Leverage Successfully Taken Down to Investment Grade Like Level, pre COVID-19 Air France-KLM successfully deleveraged post-crisis years Air France-KLM vs peers Net Debt/EBITDA trailing 12 months Net Debt/EBITDA trailing 12 months In € bn 5.4 (1) (1) 4.2 4.0 (1) (1) 3.4 2.9 (1) 1.5x 1.5x 1.4x 1.2x 1.
Slide 17: 31 March 2021: €8.5bn cash at hand
31 March 2021: €8.5bn cash at hand €8.5bn cash at hand Liquidity requirements: end of March • Q2 2021 EBITDA expected to be in the €2.5bn same range as EBITDA Q1 2021 loans undrawn • Remaining risk due to cash refunds is decreasing. At end of March ~€1.2bn • FY 2021 Net Capex spending estimated belo
Slide 18: April 2021: Capital-strengthening measures (1/2)
April 2021: A successful first set of capital-strengthening measures (1/2) • Capital increase of €1bn, at 4.84€ per share, mostly subscribed by French state and China Eastern Airlines. • Simultaneous conversion of €3bn French State loan into perpetual hybrid instruments. • Extension of the maturity
Slide 19: April 2021: Capital-strengthening measures (2/2)
April 2021: A successful first set of capital-strengthening measures (2/2) BALANCE SHEET STILL REQUIRING FURTHER SHAREHOLDING STRUCTURE AFTER CAPITAL INCREASE REINFORCEMENT AND DEBT REPROFILING €12.6bn % of capital % of theoretical 8.6 voting rights Equity Q1 2021 €4bn positive impact through first
Slide 20: June 2021: €800m dual tranche 3y and 5y senior bond offering
June 2021: €800m dual tranche 3y and 5y senior bond offering Key transaction terms Issuer Air France-KLM • The transaction represented Air France-KLM’s first return to the senior unsecured bond market since the start of the COVID-19 Issuer ratings Unrated outbreak (last transaction in January 2020,
Slide 21: Further steps under consideration: cash and equity actions
Further steps under consideration: Focus first on securing cash trajectory and relieving some constraints on equity Actions on cash Actions on equity • Negotiations started to reprofile French PGE reimbursement : • Dutch State pursuing discussions with European Commission – Remaining €3.5bn repaymen
Slide 22: Indicative debt reimbursement profile
Indicative debt reimbursement profile Debt reimbursement profile(1) In €m Indicative re-profiling of the French PGE, incl. initial reimbursement (€500m) 650 Repayment 300 in June-21 1,300 500 1,300 300 750 500 800 350 450 300 1,500 900 100 600 550 550 600 450 2021 2022 2023 2024 2025 2026 2027 and b
Slide 23: Medium term operating margin objective unchanged but delayed
Air France-KLM Group medium term operating margin objective unchanged but delayed Guidance elements • Plan expects capacity of 2019 level back in 2024, based on Covid- 19 crisis development (number of aircraft -7% in 2022 compared to 2019) (1) • Unit cost down 8 to 10% when capacity back to 2019 lev