Kenya Airways Plc · NSEKE:KQ
Kenya Airways — FY2023 Earnings Presentation
31 slides from Kenya Airways's earnings presentation, 2024
Slide 1: Kenya Airways PLC Full Year 2023 Investor Briefing
Kenya Airways PLC Full Year 2023 Investor Briefing “Improved Operations & Recovery Strategy Bearing Fruits”
Slide 2: Agenda
Agenda • Introduction of session • Industry Overview • Business Updates • Financial Highlights • Future Outlook • Q&A
Slide 3: Opening Remarks
Opening Remarks Mr. Michael Joseph Chairman
Slide 4: Industry Overview
Industry Overview Mr. Allan Kilavuka Group MD & CEO
Slide 5: Global Aviation Performance FY23 vs FY22
Global Aviation Performance FY23 vs FY22 Global Aviation Performance FY23 African carriers Global Available Seat passenger traffic Kilometers (ASK) growth 24.1% 36.9% Global Air Cargo demand Passenger Traffic growth Global Passenger 1.9% Load-Factor (PLF) 25.3% 82.3% Source: IATA’s Air Passenger Mar
Slide 6: Passenger Recovery Numbers
Passenger Recovery Numbers Passsenger Recovery Numbers
Slide 7: USD/KES Exchange Rates 2022 vs 2023
USD: KES Exchange rates 2022 vs 2023 160.00 156.69 153.20 155.00 149.44 148.21 150.00 145.37 145.00 140.53 142.57 140.00 137.83 135.92 135.00 131.90 USD/KES 130.00 126.76 124.50 122.47 123.47 125.00 120.74 121.39 118.95 120.07 117.89 120.00 116.07 115.03 116.83 113.95 115.00 113.58 110.00 105.00 100
Slide 8: Business Updates
Improved On Time Performance (OTP) Business Updates
Slide 9: Network Updates FY23 vs FY22
Network Updates FY23 vs FY22 Network Updates 24% 24% Frequency Frequency Increase Increase Addis Ababa – Ethiopia London – UK Mauritius 4 weekly to Daily from March 7 to 10 times weekly from May 4 weekly to Daily from January 44% 44% Increase in Increase ASK’s) in ASK’s) Johannesburg – South Africa
Slide 10: Airline Partnerships
Airline Partnerships Airline Partnerships Interline Agreement - Access to Eastern Europe, middle east & India Expanded Codeshare Interline Agreement Opened up more cities in US & Canada Destinations: - 28 in Africa Destinations: - 23 to West and South Asia, - 31 in Africa the Far East, the Indian -
Slide 11: Sports Partnerships
Sports Sports Partnerships Partnership
Slide 12: The Sustainable Flight Challenge
The Sustainable Industry Flight Challenge Overview • 22 airlines participated • 155 employees directly involved • 2 long haul flights mounted NBO-AMS-NBO. • First African airline to use Sustainable Aviation Fuel (SAF) for long haul flight to Europe. • TSFC is about embedding speed and innovation in
Slide 13: Customer Experience Updates
Customer CustomerExperience Experience Updates Updates Revamped KQ Websit e Asant e Rewards Inflight Revamp Cust omer communicat ions Real t ime alert s Inflight meals Enhanced comfort in Plating service for long-haul business Class
Slide 14: Operational Updates
Operational Updates Operational Updates Improved Aircraft Reliability & Availabilty 4 new Ground Power Unit s Signed long- (GPU) t erm cont ract for Tot al Component Support 4 new IATA CEIV Certification elect ronic t rucks - Pharma Transportation (E-t rucks) - Warehousing
Slide 15: Improved On Time Performance (OTP)
Improved On Time Performance (OTP) OTP TARGET 80% 400,000 100% 100% 81% 86% 88% 77% 82% 76% 77% 79% 81% 350,000 80% 75% 80% 300,000 66% 64% 75… 250,000 60% 60% 200,000 58% 40% 150,000 40% 100,000 20% 20% 50,000 0% 0 0% Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average From To 58% 76%
Slide 16: Operational Highlights
Operational Highlights Operational Highlights +51% +35% +4 pts Revenue Passenger Passenger Numbers (Mil’s) Cabin Factor (%) KMs (Mil’s) CY 78.4% CY 5.0 CY 11 605 PY 3.7 PY 74.5% PY 7 672 -14% +29% +53% Cargo Volumes (Tonnes) Block Hours Turnover (Ksh Mil’s) CY 56 576 CY 151 660 CY 178 496 PY 65 955
Slide 17: 2023 Awards
2023 Awards • World Travel Awards 2023 - Africa’s leading Airline Economy class - Africa’s leading Inflight Magazine • Africa’s second most efficient - 2023 On-Time Performance Review report by Cirium • 2023 Sustainable Flight Challenge Awards Best Innovation & Most Impactful Breakthrough for piloti
Slide 18: KQ Group EBITDAR
KQ Group EBITDAR 30% 25% 20% 20% 17% 15% 17% 16% 10% 11% 5% 6% 0% 2018 2019 2020 2021 2022 2023 EBITDAR
Slide 19: Financial Highlights
Financial Highlights Hellen Mwariri Chief Finance Officer
Slide 20: Financial Highlights
Financial Highlights
Slide 21: Turnover Trend
Turnover Trend 200 000 Revenue KShs Mil 160 000 120 000 80 000 40 000 0 2018 2019 2020 2021 2022 2023 Revenue 200 000 180 000 53% 178 496 160 000 140 000 Kshs Mil 120 000 128 317 100 000 114 185 116 787 80 000 60 000 70 221 40 000 52 805 20 000 0 2018 2019 2020 2021 2022 2023 FY
Slide 22: Cost Trend
Cost Trend 250 000 Total Cost KShs Mil 200 000 150 000 100 000 50 000 0 2018 2019 2020 2021 2022 2023 Total cost 250 000 201 360 30% 200 000 155 102 141 291 Kshs Mil 150 000 121 774 100 000 89 378 86 248 50 000 0 2018 2019 2020 2021 2022 2023
Slide 23: Summary of Consolidated Income Statement
Summary of Consolidated Income Statement 2023 2022 Variance Ksh. Mil Ksh. Mil Total Income 178,496 116,787 53% Total Operating Costs (167,967) (122,403) -37% Operating Profit / Loss 10,530 (5,616) 287% Operating Margin % 5.9 (4.8) Finance cost (33,559) (32,893) -2% Interest income 165 194 -15% Loss
Slide 24: Summary of Consolidated Statement of Financial Position
Summary of Consolidated Statement of Financial Position 2023 2022 Ksh. Mil Ksh. Mil Assets Non-current assets 124,468 127,241 Current assets 52,145 41,671 TOTAL ASSETS 176,613 168,912 EQUITY AND LIABILITIES Equity attributable to owners (136,178) (108,140) Non-controlling interest 70 50 TOTAL EQUITY
Slide 25: Summary of Consolidated Statement of Cash Flow
Summary of Consolidated statement of Cash flow 2023 2022 Ksh Mil Ksh Mil Cashflows from operating activities Cash generated from operations 28,921 15,782 Interest Received 165 194 Interest Paid (3,690) (5,528) Income Taxes Paid (56) (82) Net cash generated from operating activities 25,340 10,366 Net
Slide 26: Mr. Allan Kilavuka, Group MD & CEO
Mr. Allan Kilavuka Group MD & CEO
Slide 27: Operating Profit and Loss before Tax
Operating Profit and Loss before Tax Ksh Mil FY 2017-2023 Operating Profit/(Loss) and loss Before Tax Kes'Mil 20,000 10,530 10,530 10,000 1,531 1,531 - (683) (1,739) (3,696) (10,000) (5,616) (7,588) (6,803) (20,000) (12,975) (16,028) (22,864) (30,000) (27,122) (40,000) (36,573) (38,315) (50,000) 201
Slide 28: Future Outlook
Future Outlook
Slide 29: Future Outlook
Future Outlook Expansion • Fleet optimization Recapitalization - Additional Cargo freighters of the business - Additional Passenger Aircraft - Jambojet fleet expansion • Maintainance Repair Overhaul (MRO) • Approved Training Organisation(ATO) Diversification - KQ Health expansion - Fahari Aviation
Slide 30: Industry Overview
Industry Overview
Slide 31: Thank You
Thank You