Press release from ROBECOSAM

INDUSTRY GROUP LEADER REPORT | 2013
Air France-KLM
AIR Airlines
Member of DJSI World, DJSI Europe
Company Description
Air-France KLM is a leading global airline group. Formed through the merger of Air France and KLM in 2004, the company’s strategic focus lies in three
main areas: Passengers, Cargo and Aeronautical Maintenance. In 2012, the company carried over 77 million passengers to 253 destinations
worldwide, offering the most extensive route network between Europe and the rest of the world. In 2012, the company launched its three-year
transformation plan to increase profitability while focusing on its core strengths such as customer service and route development. Sustainability has
long been recognized as a key differentiator for the company, and sustainable development forms a core pillar of its Transform 2015 strategy.
Creating economic, environmental and social value remains at the center of the company’s business.
Sustainability Performance
Air France-KLM continues to defend its position as a sustainability leader in the transportation space. As part of its overall business strategy, the
company has made long-term commitments to reducing its environmental footprint and increasing operational efficiency. Compared to a 2009
baseline, the company made significant improvements in operational eco-efficiency in 2012. As a pioneer in the development of sustainable biofuels,
the company continues to push for viable alternatives to traditional fossil fuels. The company actively manages its stakeholder engagement, ensuring
that corporate goals are effectively rolled out and managed at the local level. Through transparent and focused reporting, the company addresses
multiple stakeholder needs, and closely outlines not only the progress, but also the challenges faced in achieving its sustainable business goals.
Sustainability Scores
Total Scores
Economic Dimension
Air France-KLM
COMPANY INFORMATION
Environmental Dimension
DJSI industry average
No of Employees
Web
Best company within industry
Source: Bloomberg / September 04, 2013
Company
Country
Social Dimension
Share
France
98,292
www.airfrance.com
Market cap (million)
Key data
1,652
Sales (million)
Currency
EUR
EPS
High 52 week
8.95
P/E Ratio
Low 52 week
3.97
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
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2012
2013E
25,633
26,101
-.95
-.65
-
-
Industry Drivers
Commercial airlines continue to face a competitive and challenging environment. Rising fuel costs combined with fierce competition from low-cost and
ultra-low-cost carriers are forcing airlines to rethink their business plans and adapt their long-term growth strategies. Consolidation continues
throughout the industry, and new route-sharing partnerships help create economies of scale and reduce operating costs. The EU Emissions Trading
Scheme, originally scheduled to be implemented in January 2013, has been put on hold, giving the UN’s International Civil Airline Authority (ICAO) a
year to develop a global alternative. If no solution is found, the EU has vowed to move ahead as planned, applying the legislation to all
intercontinental flights to and from the European Union, providing an additional financial incentive to improve operational eco-efficiency. Although
airlines have made significant strides in improving fuel efficiency and investments in the latest generation aircraft remain strong, further cooperation
between the private and public sectors is needed to meet the 2020 goal of neutralizing net CO2 emission growth. This includes increasing cooperation
on the development of alternative fuels and the implementation of advanced route planning systems and navigation technologies.
Company Performance for Selected Criteria
Economic Dimension
Risk & Crisis Management
Fleet Management
Corporate Governance
Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Environmental Policy/Management System
Environmental Reporting
Operational Eco-Efficiency
Social Dimension
Talent Attraction & Retention
Labor Practice Indicators and Human Rights
Social Reporting
Human Capital Development
Air France-KLM
DJSI industry average
Best company within industry
For information on assessment criteria, visit www.sustainability-indices.com
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Industry Group Leader Report - 2013