Kenya Airways Plc · NSEKE:KQ
Kenya Airways — H1 2024 Earnings Presentation
27 slides from Kenya Airways's earnings presentation, 2024
Slide 1: Kenya Airways PLC Half Year 2024 Investor Briefing
Slide 2: Agenda
Agenda Introduction of the session Industry overview Business updates Financial Highlights Future outlook Q&A ® Kenya Airways B Cha fe of fen
Slide 3: Opening Remarks
Opening Remarks \— Mr. Michael Joseph Chairman
Slide 4: Industry Overview
Industry Overview \—, Mr. Allan Kilavuka Group MD & CEO
Slide 5: Aviation Performance - Global & Africa
Aviation Performance - Global & Africa Passenger load factor Seat Capacity Passenger Load Factor 82.5% ‘) 77% iS) 12.6% (©) Cargo Capacity Available Tonne Km Cargo Capacity 6% Available Tonne Km @ 2% ° Increase in Available 0 Seat Kms in 2024 @ June Y-o-Y June YT-D 0 RPK-16.2% — RPK-15.9% 11.2% ASK5
Slide 6: Passenger and Cargo Revenue forecast
Passenger and Cargo Revenue forecast — Chart 22: Passenger and cargo revenue, USD billion 2024: 119% of 2019 1,000 ) Milli Cargo revenue Passenger + other revenue 2023: 108% of 2019 2021: 2022: 61% of 2019 88% of 2019 USD billion 100 oO 2015 2016 2017 2018 2019 2020 2021 2022 2023e 2024f Source: IAT
Slide 7: Global Airline Industry Profitability
Global Airline Industry Profitability — Chart 21: Global airline net post-tax profit and EBIT margin, % 60 15% EBIT margin © 2 5 ray Qg c 2 o 2 a ig e Ss e 8 8 % 3 a 3 2 -120 Net post-tax profit 30% -140 35% -160 40% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Sources: IATA Sust
Slide 8: Factors Affecting Aviation Prospects
Factors Affecting Aviation Prospects ¢ Economic Pressures: High crude oil prices, strong USD, persistent inflation, and higher interest rates. © Global Voting Impact: Elections in 70 countries (4.2 billion voters), influencing global economic activity. ¢ Policy Volatility: Uncertainty from political
Slide 9: Critical Contextual Issues: Some Positive Outlook
Critical Contextual Issues: Some Positive Outlook a © Traffic Recovery: RPKs have returned to 2019 levels; 11.6% growth in RPKs and 0.4% increase in global passengers expected. © Regional Insights: Africa is projected to see a contraction in passenger numbers, despite a strong 2023. db ° Air Cargo:
Slide 10: Business Updates
Business Updates
Slide 11: Network Updates
Network Updates Flight Routes SS 3 Mogadishu: . - February 15, 2024 3 weekly flights Eldoret: March 25, 2024 5 weekly flights Maputo: June 19, 2024 3 weekly flights »> xp bs Code Share Management System: Enhances customer connectivity and drives revenue growth through new network opportunities. Airc
Slide 12: Partnerships, Sustainability & Innovation
Partnerships, Sustainability & Innovation dee Mg Official airline partner @: Sustainability & Innovation Initiatives ¢ Pyro- Diesel plant supporting Ground Service Equipment Lagos City Marathon © Ban on use of Plastics bottles Magical Kenya Open ¢ International Womes Day (IWD) 2024 Corporate Social
Slide 13: HY - Cargo Highlights
HY 24 - Cargo Highlights New freighter routes Mogadishu (MGQ), Juba (JUB), Eldoret (EDL), Djibouti (JIB), Monrovia (ROB), Freetown (FNA) Traffic Growth of 32% from 28,000 tons PY to 37,000 tons CY +6000 tons Fresh Meat CY vs 3600 tons in PY transported to UAE. Major Forex Earner for the Kenyan Econo
Slide 14: Employee Welfare
Employee Welfare ¢ Talent Development: Expanded Coaching, Mentoring and Leadership Development. e Diversity Recruitment: Inclusion of persons with disability. ¢ Expansion of employee wellness Programs: Enhanced support for both staff and patients. * IATA approved: DGR CBTA (Dangerous Goods Regulatio
Slide 15: Awards 2024
Awards 2024 Best Airline Staff Service in Africa Best Cabin Crew in Africa KQ Nominations 2024 Kenya Airways has been nominated for this year’s prestigious World Travel Awards in 5 categories: + Africa's Leading Airline 2024 + Africa's Leading Airline 2024: Business Class + Africa's Leading Airline
Slide 16: Financial Highlights
Financial Highlights — Hellen Mwariri Chief Finance Officer
Slide 17: Revenue Trend: Half Year 2017-2024
Revenue Trend: Half Year 2017-2024 Kshs. Mil ho Revenue — = / Revenue \ 91,493 75,097 58550 50601 fH 52193 48,104 29972 27354 100 000 91493 2017— «2018 «=©2019 2020 2021 2022 = 2023 2024 58550 60000 sygo1 52193 \ 2017 2018 «2019 2020-2021 2022 2023-2024 } \ _ y
Slide 18: EBITDAR Trend: Half Year 2017 - 2024
EBITDAR Trend: Half Year 2017 - 2024 25% 20% 15 8 14.7% 15% 10% 5% 0% 2017 2018 2019 2020 2021 2022 2023 2024 (® kenya Airway:
Slide 19: Summary of Consolidated Income Statement
Summary of Consolidated Income Statement — Jun-24 Jun-23 Delta KShs. Mil KShs. Mil Total Income 91,493 75,097 22% Total Operating Costs (90,195) (74,099) 22% Operating Profit 1,298 998 30% Operating Margin % 1.4 1.3 Other costs (687) (22,808) 97% Interest income 23 114 79% Profit/(loss) before incom
Slide 20: Summary of Consolidated Statement of Financial Position
Summary of Consolidated Statement of Financial Position —— Jun 2024 Jun 2023 KShs Mil KShs Mil Assets Non-current assets 122,323 124,468 Current assets 51,938 52,145 TOTAL ASSETS 174,261 176,613 EQUITY AND LIABILITIES Equity attributable to owners (123,621) (136,177) Non-controlling interest 34 70 T
Slide 21: Summary of Consolidated statement of Cash flow
Summary of Consolidated statement of Cash flow em Jun-2024 Jun-2023 Ksh Mil Ksh Mil Cashflows from operating activities Cash generated from operations 11,784 14,450 Interest Received 23 114 Interest Paid (3,830) (4,831) Income Taxes Paid (28) (26) Net cash generated from operating activities 7,949 9
Slide 22: Mr. Allan Kilavuka, Group MD & CEO
Mr. Allan Kilavuka Group MD & CEO
Slide 23: HY profit/loss trend over the last half year
HY profit/loss trend over the last half year: Ksh Mil —— 5,000 -10,000 -15,000 -20,000 -25,000 2013 (10,451) 2014 2015 2016 (14,326) 2017 2018 2019 2020 2021 Operating profit === Profit before tax 2022 (21,703) 2023 2024
Slide 24: Future Outlook
Future Outlook
Slide 25: Kenya Airways: H2 2024 Look ahead
Kenya Airways: H2 2024 Look ahead — Project Kifaru 1.0. 95% complete Project Kifaru 2.0 Implementation ongoing to onboard strategic Equity Investment Objectives of the Strategic Equity Investment ems ay “® SH gz er 4 5 Deleverage the Infuse external Growth. Diversify the business. aviation best busi
Slide 26: Kenya Airways: H2 2024 Look ahead
Kenya Airways: H2 2024 Look ahead 1) -F)z 2 Ya Break-even in Operational Fleet growth Cost containment FY2024 stability
Slide 27: Thank You
Thank You