INDUSTRY GROUP LEADER REPORT | DJSI 2014 Air France-KLM AIR Airlines Member of DJSI World, DJSI Europe Company Information Country France No of Employees 95,961 Market cap (USD million)* 3,247 *Source: S&P Global BMI, 31 July 2014 Company Description The Air-France KLM Group is a leading provider of global passenger transport, cargo transport and air-maintenance services. Comprising two unique brands, the company serves 231 destinations in 103 countries, representing the largest long-haul network from Europe. In 2013 the company carried over 77 million passengers and 1.3 million tons of cargo, improving its financial performance, generating EUR 25.5 billion in revenues and EUR 130 million income from current operations. Both Air France and KLM are signatories of the UN Global Compact. Industry Drivers Commercial airlines continue to face a competitive and challenging environment. Volatile 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 include all airlines from January 2013, has been put on hold until 2016, giving the UN’s International Civil Airline Authority (ICAO) additional time to develop a global alternative. For now, the scheme will include all intra-European flights, but puts pressure on non-European airlines with European operations to improve their 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. Sustainability Scores Total Scores Economic Dimension Air France-KLM Environmental Dimension DJSI industry average Social Dimension Best company within industry RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected] 1/2 Sustainability Performance For the sixth consecutive year, Air France-KLM has been named Industry Group Leader. The company continues to demonstrate sustainability leadership in the transportation space, building on its long-term commitment to reduce its environmental impact while increasing operational eco-efficiency. Through innovative programs, the group engages its customers on sustainability issues, integrating their feedback into its product offerings and communication strategies. Air France-KLM remains a leader in the commercialization of sustainable biofuels and has partnered with organizations such as SkyNRG, Boeing and local governments in Europe to invest in a viable, profitable production base for biofuels in Europe. The group takes a clear stance on key issues such as air traffic control, regulations in the air transportation market and the climate protection ambitions of the IATA and ICAO. On the social front, Air France-KLM measures and manages its economic impact at the destinations it serves, focusing on developing local economies, engaging with local stakeholders and upholding human rights. Company Performance for Selected Criteria Air France-KLM DJSI industry average Best company within industry For information on assessment criteria, visit www.sustainability-indices.com Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shall treat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions, weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the Dow Jones Sustainability Index 2014. No Offer: The information and opinions contained in this publication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is not directed to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, but neither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related and affiliated companies disclaim all warranties, expressed or implied, including, but not limited to, implied warranties of merchantability and fitness for a particular purpose. Any opinions and views in this publication reflect the current judgment of the authors and may change without notice. It is each reader‘s responsibility to evaluate the accuracy, completeness and usefulness of any opinions, advice, services or other information provided in this publication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professional advice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of any opinion or information expressly or implicitly contained in this publication. Copyright: Unless otherwise noted, text, images and layout of this publication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies. 2/ 2 Industry Group Leader Report - 2014
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