SAS GROUP ANNUAL REPORT WITH SUSTAINABILITY REVIEW WITH SUSTAINABILITY REPORT ANNUAL SAS GROUP OUR VISION IS TO MAKE LIFE EASIER FOR SCANDINAVIA’S NOVEMBER 2014–oCtOBER 2015 2014–oCtOBER NOVEMBER FREQUENT TRAVELERS ANNUAL REPORT WITH SUSTAINABILITY REVIEW NOVEMBER 2014–OCTOBER 2015 www.sasgroup.net SAS AB (publ). Corp. Reg. No.: 556606-8499 Domicile: Stockholm. Street address: Frösundaviks Allé 1, Solna, Sweden Postal address: SE-195 87 Stockholm, Sweden. Telephone: +46 8 797 00 00 2016 ANNUAL gEnErAL sHArEHoLDErs’ MEEting Attending the AGM Sending of the notice and notifi cation of attendance CONTENTS The AGM of SAS will be held on March 8, 2016 at 3:00 p.m. in Solna: • The notice was published on February 2, 2016. The head offi ce of SAS, Frösundaviks allé 1. • Deadline for notifi cation of attendance: March 1, 2016 in Denmark This is SAS 1 and Norway and March 2, 2016 in Sweden. SAS overview 2014/2015 2 Shareholders who wish to attend the AGM must notify the company in advance. Details of the registration procedure are published in the notice calling the AGM. Record day Events from the past year 3 Proposals or questions for inclusion in the notice of the AGM • March 2, 2016. President’s comments 4 We are travelers 6 Shareholders who wish to address a specifi c question or include a proposal Admission cards to the AGM will be sent on in the notice convening the AGM may do so in good time ahead of the notice. Industry and market overview 8 The deadline for proposals is stated in good time in line with the provisions • March 1–2, 2016. of the Code, on the SAS website. Strategic priorities for SAS 12 Annual General Shareholders’ Meeting Win Scandinavia’s frequent travelers 13 Items in the notice • March 8, 2016. Create an effi cient operating platform 18 • The deadline for receiving business to be included in the notice was January 19, 2016. Secure the right capabilities 21 Sustainability 24 Report by the Board of Directors 26 Risk management 31 FINANCIAL CALENDAR 2016 DISTRIBUTION POLICY SAS Group’s contribution to Monthly traffi c data is generally issued on the fi fth working day of every month. All reports are available in English and Swedish and can be downloaded at The detailed fi nancial calendar is available at www.sasgroup.net under Investor www.sasgroup.net sustainable development 36 Relations. The SAS Group’s printed Annual Report is distributed only to share-holders who Corporate governance report 37 have requested it and can also be ordered via e-mail: [email protected] Internal control – fi nancial reporting 42 March 8, 2016 Q1 Interim Report November 2015–January 2016 Board of Directors 44 March 8, 2016 2016 AGM Group Management 46 June 10, 2016 Q2 Interim Report Dividends, disposition of earnings February 2015–April 2016 and outlook 47 September 8, 2016 Q3 Interim Report Consolidated fi nancial statements 48 May 2015–July 2016 Notes to the consolidated fi nancial December 13, 2016 Year-end report statements 54 November 2015–October 2016 January/February 2017 Annual Report and Sustainability Parent Company fi nancial statements 85 Report 2015/2016 Notes to Parent Company fi nancial statements 87 For more information, please refer to www.sasgroup.net Contact: [email protected] Signatures 88 Auditors’ report 89 The share 91 Key fi gures 94 Ten-year fi nancial overview 95 Defi nitions 96 SAS is Scandinavia’s leading airline and has an attractive offering to frequent travelers. SAS offers more than 800 fl ights daily, and a total of more than 28 million passengers travel with SAS to 119 destinations in Europe, the US and Asia. Membership in Star Alliance™ provides SAS’s customers with access to a far-reaching network and smooth connections. Altogether, Star Alliance offers more than 18,500 daily departures to 1,330 destina- tions in 192 countries around the world. In addition to airline operations, activities at SAS include ground handling services (SAS Ground Handling), technical maintenance (SAS Technical) and air cargo services (SAS Cargo). SAS AB is the Parent Company of SAS and is listed on the stock exchanges in Stockholm (primary listing), Copen- hagen and Oslo. With the exception of SAS Cargo and SAS Ground Handling, which are directly owned by the Parent Company SAS AB, the majority of the operations and assets are directly owned by the SAS Consortium. While every care has been taken in the translation of this annual report, readers are reminded that the original Production: SAS and Intellecta Corporate. annual report, signed by the Board of Directors, is in Swedish. Design: Bold and Intellecta Corporate. Photography: Peter Knutson and SAS Image bank. Printing: TMG Sthlm (ISO 14001 certifi ed). Environmentally friendly paper: Galerie Art Silk. Th2016IS ANNUAL IS gEnErAL SA sHArEHoLDErs’S MEEting Attending the AGM Sending of the notice and notifi cation of attendance CONTENTS The AGM of SAS will be held on March 8, 2016 at 3:00 p.m. in Solna: • The notice wasSTR publishedATE GIon FebruaryC PRIORITI 2, 2016. ES The head offi ce of SAS, Frösundaviks allé 1. • Deadline for notifi cation of attendance: March 1, 2016 in Denmark This is SAS 1 and Norway and March 2, 2016 in Sweden. SAS overview 2014/2015 2 Shareholders who wish to attend the AGM must notify the company in advance. Details of the registration procedure are published in the notice calling the AGM. Record day Events from the past year 3 Proposals or questions for inclusion in the notice of the AGM • March 2, 2016. President’s comments 4 WIN SCANDINAVIA’S We are travelers 6 11,288Shareholders who wish to address a4.2 specifi c question or include a proposal Admission cards to the AGM will be sent on FREQUENT TRAVELERS AVERAinG theE NO. notice O conveningF the AGM mayM IdoLL soION in good EURO timeBONUS ahead of the notice. Industry and market overview 8 The deadline for proposals is stated in good time in line with the provisions • March 1–2, 2016. EMPLOYEES MEMBERS of the Code, on the SAS website. Strategic priorities for SAS 12 Annual General Shareholders’ Meeting Win Scandinavia’s frequent travelers 13 Items in the notice • March 8, 2016. Create an effi cient operating platform 18 • The deadline for receiving business to be included in the notice was CREATE AN EFFICIENT January 19, 2016. OUR VISION Secure the right capabilities 21 OPERATING PLATFORM TO MAKE LIFE EASIER FOR Sustainability 24 SCANDINAVIA´S FREQUENT TRAVELERS. Report by the Board of Directors 26 Risk management 31 WithFINANCIAL SAS you are CALENDAR part of a community 2016 experiencing easy, DISTRIBUTION POLICY joyful and reliable services, delivered the Scandinavian way. SAS Group’s contribution to Monthly traffi c data is generally issued on the fi fth working day of every month. All reports are available in English and Swedish and can be downloaded at The detailed fi nancial calendar is available at www.sasgroup.net under Investor www.sasgroup.netSECURE THE RIGHT capabILITIES sustainable development 36 Relations. The SAS Group’s printed Annual Report is distributed only to share-holders who Corporate governance report 37 have requested it and can also be ordered via e-mail: [email protected] Internal control – fi nancial reporting 42 March 8, 2016 Q1 Interim Report November 2015–January 2016 Board of Directors 44 March 8, 2016 2016 AGM OUR DNA Group Management 46 WE ARE SCANDINAVIAN BY NAME AND BY NATURE Dividends, disposition of earnings June 10, 2016 Q2 Interim Report February 2015–April 2016 AND OUR OPERATIONAL PRIORITIES ARE; and outlook 47 September 8, 2016 Q3 Interim Report SAFETY, PUNCTUALITY AND CARE. Consolidated fi nancial statements 48 May 2015–July 2016 Notes to the consolidated fi nancial 2December MILL 13, 2016ION 805Year-end report statements 54 FREQUENT TRAVELERS DANovemberILY DEPA 2015–OctoberRTURES 2016 January/February 2017 Annual Report and Sustainability Parent Company fi nancial statements 85 Report 2015/2016 Notes to Parent Company fi nancial statements 87 For more information, please refer to www.sasgroup.net Contact: [email protected] Signatures 88 261 Auditors’ report 89 ROUTES The share 91 75,000 Key fi gures 94 PASSENGERS PER DAY Ten-year fi nancial overview 95 28.1 MILLION 119 152 Defi nitions 96 PASSENGERS 2014/2015 DESTINATIONS AIRCRAFT IN SERVICE SAS is Scandinavia’s leading airline and has an attractive offering to frequent travelers. SAS offers more than 800 fl ights daily, and a total of more than 28 million passengers travel with SAS to 119 destinations in Europe, the US and Asia. Membership in Star Alliance™ provides SAS’s customers with access to a far-reaching network and smooth connections. Altogether, Star Alliance offers more than 18,500 daily departures to 1,330 destina- tions in 192 countries around the world. In addition to airline operations, activities at SAS include ground handling services (SAS Ground Handling), technical maintenance (SAS Technical) and air cargo services (SAS Cargo). SAS AB is the Parent Company of SAS and is listed on the stock exchanges in Stockholm (primary listing), Copen- 70 YeaRS hagen and Oslo. With the exception of SAS Cargo and SAS Ground Handling, which are directly owned by the SAS IS A SCANDINAVIAN 1,330 Parent Company SAS AB, the majority of the operations and assets are directly owned by the SAS Consortium. COMPANY THAT WILL DESTINATIONS VIA While every care has been taken in the translation of this annual report, readers are reminded that the original TURN 70 IN 2016 STAR ALLIANCEProduction: SAS and Intellecta Corporate. annual report, signed by the Board of Directors, is in Swedish.