Air France-KLM (AF) Investor Update summary

Transaction overview and strategic rationale

• Stake in SAS to increase from 19.9% to 60.5% by acquiring Castlelake and Lind Invest shares, pending EU regulatory approval expected in the second half of 2026.

• SAS would become a subsidiary, with board majority and integration into the group, while the Danish State retains a 26.4% stake and board representation.

• Financing will be non-dilutive, using cash or plain vanilla bonds, with no impact on hybrid debt reduction strategy.

• Valuation and price for the additional stake will be set at closing based on SAS’s latest financials, using industry market multiples and EBITDA from the closing year, likely 2026.

• The deal accelerates original plans, aiming for earlier synergy realization and group integration, reflecting confidence in SAS’s turnaround and recent commercial cooperation.

SAS business profile and recent performance

• SAS generated €4.1 billion in 2024 revenues, operated 138 aircraft, served over 130 destinations, and carried more than 25 million passengers.

• Over 8 million loyalty program members and approximately 10,500 employees.

• SAS operates a dense Nordic network, including 35 destinations, 91 medium-haul, and 13 long-haul routes.

• Achieved structural turnaround post-Chapter 11, with significant financial and operational improvements.

• Joined SkyTeam alliance in September 2024 and was recognized as the most punctual airline globally in April and May 2025.

Synergy potential and operational integration

• Significant synergies expected in loyalty programs, commercial cooperation, cost optimization, and codeshare agreements.

• Combined loyalty base to exceed 35 million members, enhancing commercial opportunities.

• Commercial cooperation already generated €120 million in additional revenue within six months.

• Cost savings anticipated from unified sales, IT, operational accounting, and economies of scale in fleet and ground services.

• SAS’s integration into the North Atlantic JV with Delta and Virgin Atlantic will add Copenhagen as a third hub, pending U.S. DOT approval.