Consolidated Financial Statements
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Air France Group CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED MARCH 31, 2009 Page 1 Air France Group CONSOLIDATED INCOME STATEMENT In € millions 2009 2008 Notes (adjusted) Period from April 1 to March 31, Sales 5 16 069 16 323 Other revenues 44 Revenues 16 073 16 327 External expenses 6 (9 670) (9 131) Salaries and related costs 7 (5 390) (5 209) Taxes other than income taxes (238) (238) Amortization and depreciation 8 (1 078) (1 107) Provisions 8 (76) 9 Other income and expenses 9 120 (13) Income from current operations (259) 638 Sales of aircraft equipment 10 4 10 Other non-current income and expenses 10 (69) 18 Income from operating activities (324) 666 Cost of financial debt (160) (167) Income from cash and cash equivalents 120 137 Net cost of financial debt 11 (40) (30) Other financial income and expenses 11 (634) (30) Income before tax (998) 606 Income taxes 12 377 (194) Net income of consolidated companies (621) 412 Share of profits (losses) of associates 19 12 Net income from continuing operations (620) 414 Net income for the period (620) 414 - Group (622) 414 - Minority interests 2- Earnings per share – Group (in euros) 14 - basic and diluted (4.91) 3.27 The accompanying notes are an integral part of these consolidated financial statements. Page 2 Air France Group CONSOLIDATED BALANCE SHEET Assets March 31, March 31, Notes 2009 2008 In € millions (adjusted) Goodwill 15 400 377 Intangible assets 16 150 95 Flight equipment 17 8 112 8 401 Other property, plant and equipment 17 1 566 1 449 Investments in equity associates 19 31 31 Pension assets 27 19 Other financial assets (including € 331 million of deposits related to financial leases as of March 31, 2009 and € 320 million as of March 31, 20 518 520 2008) Deferred tax assets 12 765 14 Other non-current assets 23 587 1 166 Total non-current assets 12 156 12 072 Assets held for sale 13 93 - Other short-term financial assets (including € 41 million of deposits related to financial leases and investments between 3 months and 20 61 88 1 year as of March 31, 2009 and € 65 million as of March 31, 2008) Inventories 21 332 274 Trade accounts receivable 22 1 409 1 807 Income tax receivables 23 Other current assets 23 739 1 866 Cash and cash equivalents 24 2 212 2 432 Total current assets 4 848 6 470 Total assets 17 004 18 542 The accompanying notes are an integral part of these consolidated financial statements. Page 3 Air France Group CONSOLIDATED BALANCE SHEET (continued) Liabilities and equity March 31, March 31, In € millions Notes 2009 2008 (adjusted) Issued capital 25.1 1 901 1 901 Additional paid-in capital 25.2 30 30 Reserves and retained earnings 25.3 811 3 447 Equity attributable to equity holders 2 742 5 378 Minority interests 37 23 Total Equity 2 779 5 401 Provisions and retirement benefits 27 1 012 1 046 Long-term debt 28 4 135 3 764 Deferred tax 12 - 679 Other non-current liabilities 30 1 483 633 Total non-current liabilities 6 630 6 122 Liability related to assets held for sale 13 7 - Provisions 27 309 312 Current portion of long-term debt 28 889 442 Trade accounts payable 1 460 1 650 Deferred revenue on ticket sales 29 2 079 2 215 Current tax liabilities 10 11 Other current liabilities 30 2 559 2 217 Bank overdrafts 24 282 172 Total current liabilities 7 595 7 019 Total liabilities 14 225 13 141 Total liabilities and equity 17 004 18 542 The accompanying notes are an integral part of these consolidated financial statements. Page 4 Air France Group CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY In € millions Number of Issued Additional Reserves Equity Minority Total shares capital paid-in capital and attributable interests equity retained to holders of earnings Air France March 31, 2007 126 748 775 1 901 30 2 903 4 834 30 4 864 First application of IFRIC 13 interpretation (note (404) (404) (404) 3.1.) -- - - March 31, 2007 (adjusted) 126 748 775 1 901 30 2 499 4 430 30 4 460 Fair value adjustment on available for sale 9 9 9 securities -- - - Gain / (loss) on cash flow hedges -- -695 695 - 695 Currency translation adjustment -- -(2) (2) (2) (4) Net income for the year -- -414 414 - 414 Total of income and expenses recognized -- -1 116 1 116 (2) 1 114 Stock based compensation (ESA) -- -30 30 - 30 Dividends paid -- -(148) (148) (2) (150) Prepaid dividend -- -(50) (50) - (50) Other variations -- -- - (3) (3) March 31, 2008 (adjusted) 126 748 775 1 901 30 3 447 5 378 23 5 401 Fair value adjustment on available for sale - --(13) (13) - (13) securities Gain / (loss) on cash flow hedges -- -(1 964) (1 964) - (1 964) Currency translation adjustment -- -3 3 1 4 Net income for the year -- -(622) (622) 2 (620) Total of income and expenses recognized -- -(2 596) (2 596) 3 (2 593) Stock based compensation (ESA) -- -26 26 - 26 Dividends paid -- -(66) (66) (4) (70) Prepaid dividend -- -- - -- Change in consolidation scope -- -- - 15 15 March 31, 2009 126 748 775 1 901 30 811 2 742 37 2 779 The accompanying notes are an integral part of these consolidated financial statements. Page 5 Air France Group CONSOLIDATED STATEMENT OF RECOGNIZED INCOME AND EXPENSES RECOGNIZED In € millions March 31, 2009 March 31, 2008 (adjusted) Fair value adjustment on available for sale securities Change in fair value recognized directly in equity (13) 9 Change in fair value transferred to profit or loss - - Cash flow hedges Effective portion of changes in fair value hedge recognized directly in (2 133) 1 542 equity Change in fair value transferred to profit or loss (874) (474) Currency translation adjustment 3 (2) Tax on items recognized directly in or transferred from equity Income / (expense) recognized directly in equity 1 043 (373) Income and expenses directly recognized in equity attributable to holders of Air France (1 974) 702 Net income for the period – Group (622) 414 Total of income and expenses recognized for the period – Group (2 596) 1 116 Total of income and expenses recognized for the period – Minority interest 3 (2) Total recognized income and expenses for the period (2 593) 1 114 The accompanying notes are an integral part of these consolidated financial statements. Page 6 Air France Group CONSOLIDATED STATEMENTS OF CASH FLOWS In € millions Notes 2009 2008 Period from April 1 to March 31, (adjusted) Net income for the period – Group (622) 414 Minority interests 2 - Amortization, depreciation and operating provisions 8 1 154 1 097 Financial provisions 11 1 4 Gain on disposals of tangible and intangible assets (20) (41) Loss / (gain) on disposals of subsidiaries and associates 10 (12) (47) Gain on WAM (ex Amadeus GTD) transactions 10 - (284) Reversal of provision for cargo investigation (135) - Derivatives – non monetary result 11 244 (1) Unrealized foreign exchange gains and losses, net (17) 4 Share of (profits) losses of associates 19 (1) (2) Deferred taxes 12 (388) 195 Other non-monetary items 109 (9) Subtotal 315 1 330 (Increase) / decrease in inventories (37) (23) (Increase) / decrease in trade receivables 421 (38) Increase / (decrease) in trade payables (210) 134 Change in other receivables and payables (94) 189 Net cash flow from operating activities 395 1 592 Acquisitions of subsidiaries and investments in associates, net of cash acquired 36 (24) (176) Purchase of property, plant and equipment and intangible assets 18 (1 456) (1 681) Proceeds on disposal of subsidiaries and investments in associates 36 12 87 Proceeds on WAM (ex Amadeus GTD) transactions 10 - 284 Proceeds on disposal of property, plant and equipment and intangible assets 41 91 Dividends received 5 5 Decrease (increase) in investments, net between 3 months and 1 year 29 326 Net cash used in investing activities (1 393) (1 064) Increase in capital 14 7 Issuance of long-term debt 1 165 190 Repayments on long-term debt (286) (249) Payment of debt resulting from finance lease liabilities (107) (104) New loans (32) (37) Repayments on loans 35 71 Dividends paid (121) (225) Decrease in equity - (10) Net cash flow from financing activities 668 (357) Effect of exchange rate on cash and cash equivalents and bank overdrafts - (2) Change in cash and cash equivalents and bank overdrafts (330) 169 Cash and cash equivalents and bank overdrafts at beginning of period 24 2 260 2 091 Cash and cash equivalents and bank overdrafts at end of period 24 1 930 2 260 Income tax (paid) / reimbursed (flow included in operating activities) (11) (11) Interest paid (flow included in operating activities) (185) (190) Interest received (flow included in operating activities) 106 145 The accompanying notes are an integral part of these consolidated financial statements. Page 7 Air France Group NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Page 8 Air France Group 1. BUSINESS DESCRIPTION As used herein, the term "Air France" refers to Air France S.A., a limited liability company organized under French law excluding its consolidated subsidiaries. The Group is headquartered in France and is one of the largest airlines in the world. The Group’s core business is passenger transportation. The Group’s activities also include cargo, aeronautics maintenance and other air-transport related activities, including principally catering and charter services. The limited company Air France SA, domiciled at 45 rue de Paris 95 747 Roissy Charles de Gaulle, is the parent company of the Air France group. The Group’s functional currency is the euro. 2. SIGNIFICANT EVENTS OF THE YEAR No significant event has occurred during the period.