Credit topics - Air France KLM

Credit topics
Structure of financial debt
31 Dec. 2013
31 Dec. 2012
3,971
211
341
3,541
256
347
633
569
390
419
455
741
700
500
750
700
500
Other debt
6,762
(majority is made of debt secured by assets, mainly aeronautical)
7,458
In € millions
Market debt
Perpetual subordinated loan in Yen
Perpetual subordinated loan in Swiss francs
4.97% convertible bond due April 2015
€661m, o/w recorded under financial debt:
2.75% convertible bond due April 2020, 2nd put: 2016
€420m, o/w recorded under financial debt:
2.03% convertible bond due Feb 2023, put: 2019
€550m, o/w recorded under financial debt:
4.75% plain vanilla bond due January 2014
6.75% plain vanilla bond due October 2016
6.25% plain vanilla bond due January 2018
Total financial debt
o/w non current financial debt
o/w current financial debt
Market debt as percentage of gross financial debt
Information meeting
10,733
8,596
2,137
10,999
9,565
1,434
37%
32%
2
Debt reimbursement profile at 31 December 2013*
Convertible bonds
Plain vanilla bonds
January 2014: Air France 4.75% (€740m)
October 2016: Air France-KLM 6.75% (€700m)
January 2018: Air France-KLM 6.25% (€500m)
2009 4.97% convertible
bond (€661m)
Maturity: April 2015
Conv. price: €11.80
Other long-term debt - mainly assetbacked (net of deposits)
2005 2.75% convertible
bond (€420m)
Maturity: April 2020
2nd put: April 2016
Conv. price: €20.50
740
700
2013 2.03% convertible
bond (€550m)
Maturity: Feb. 2023
Put: Feb. 2019
Conv. price: €10.30
500
1,180
880
860
580
2014
2015
2016
2017
660
2018
470
2019
440
370
2020
2021
220
2022
* In € millions, net of deposits on financial leases and excluding KLM perpetual debt (€550m)
Information meeting
3
340
Beyond
Debt by currency and interest rate at 31 December 2013
Average cost of debt (after swap): 3.39%
Gross debt by currency
(after derivative instruments)
Gross debt by type
(after swap)
Dollar 4% 3% Swiss Franc
Yen 6%
Floating rate
31%
Euro
87%
Fixed rate
69%
100bp rise in interest rates = +€12m
Information meeting
4
Credit lines

Undrawn credit lines of €1.8bn
 Air France: €1.06bn until 2016
EBITDAR / adjusted** net interest costs
Air France-KLM
 KLM: €540m until 2016
 Air France-KLM: €200m until 2017

Covenants
3.9x
3.3x
3.5x
31/12/2011
31/12/2012*
 EBITDAR to adjusted** net interest costs
• Air France and KLM: 2.5x
• Air France-KLM: 1.5x
 Non-current assets in the balance
sheet, not pledged as collateral >
unsecured net debt
31/12/2013
* Restated for IAS 19 revised, CityJet reclassified as discontinued
operation
** Adjusted by the portion of financial costs within operating
leases (34%)
Information meeting
5
Net debt calculation
31 Dec. 2013
31 Dec. 2012
10,733
(626)
(393)
8
(144)
9,578
10,999
(650)
(393)
4
(112)
9,848
Cash and cash equivalents
Marketable securities
Cash pledges
Deposits (Triple A bonds)
Bank overdrafts
= Net cash (B)
3,684
126
432
154
(166)
4,230
3,420
320
243
156
(257)
3,882
Net debt (A - B)
5,348
5,966
1,855*
1,393*
2.88
4.28
In € millions
Current and non-current financial debt
Deposits linked to financial debt
Financial assets pledged (OCEANE swap)
Currency hedge on financial debt
Accrued interest
= Financial debt (A)
EBITDA (sliding twelve months)
Net debt / EBITDA ratio
* 2012 restated IAS19R, CityJet reclassified as discontinued operation
Information meeting
6
Improved financial ratios at 31 December 2013
EBITDAR / adjusted net interest costs(1)
3.3x
3.5x
31/12/2011
31/12/2012*
3.9x
31/12/2013
Adjusted net debt(2) / EBITDAR
5.7x
5.4x
31/12/2011
31/12/2012*
4.0x
4.6x
31/12/2013
Net debt / EBITDA
EBITDA / net interest costs
3.6x
4.2x
4.8x
4.3x
2.9x
31/12/2011
31/12/2012*
31/12/2013
31/12/2011
31/12/2012*
* Restated for IAS 19 revised, CityJet reclassified as discontinued operation
(1) Adjusted by the portion of financial costs within operating leases (34%)
(2) Adjusted for the capitalization of operating leases (7x yearly charge)
Information meeting
7
31/12/2013
Secondary spreads and CDS
1400
1200
1000
800
600
400
200
Updated 3 March 2014
0
01/01/2010
01/01/2011
Air France 5-year CDS
Information meeting
01/01/2012
AF KLM 6.75% 27/10/16
01/01/2013
01/01/2014
AF KLM 6.25% 18/01/18
8
Plain vanilla bonds: secondary prices
113,00
111,00
109,00
107,00
105,00
103,00
101,00
99,00
97,00
Updated 3 March 2014
95,00
01/01/2010
01/01/2011
01/01/2012
AF KLM 6.75% 10/27/2016
Information meeting
01/01/2013
01/01/2014
AF KLM 6.25% 01/18/18
9
Convertibles bonds: secondary prices
18,00
17,00
16,00
15,00
14,00
13,00
12,00
11,00
10,00
9,00
Updated 3 March 2014
8,00
01/01/10
01/01/11
AF KLM 4,97% 04/01/15
Information meeting
01/01/12
4,97% conversion price
01/01/13
AF KLM 2,03% 02/15/23
01/01/14
2,03% conversion price
10
Airline CDS, Jan 2008-Feb 2014
1 200
AF/KL
IAG
Lufthansa
1 000
800
600
400
200
Updated 3 March 2014
0
01-01-2008
31-12-2008
Information meeting
31-12-2009
31-12-2010
31-12-2011
30-12-2012
30-12-2013
11