Kenya Airways PLC · NSEKE:KQ
Kenya Airways — HY2017 Earnings Presentation
31 slides from Kenya Airways's earnings presentation, Nov 17, 2017
Slide 1: Kenya Airways Investor Briefing HY2017 Results Presentation
Kenya Airways Investor Briefing HY2017 Results Presentation 17th November 2017
Slide 2: Disclaimer
DISCLAIMER The material in this presentation has been prepared by Kenya Airways This presentation does not contain an offering of securities or otherwise PLC (“Kenya Airways”) and is only directed at persons to whom such constitute an invitation or inducement to any person to underwrite or presentat
Slide 3: Agenda
Agenda 1. Market Perspectives 2. Sustainable Development in Africa 3. A strong KQ Leads to a Strong Kenya 4. Financial Results 5. Business Strategy
Slide 4: Market Perspectives
Market Perspectives —
Slide 5: Global Aviation
Global Aviation 2018 forecast: the Governments gain industry to generate substantially from Economic $124bn of tax this development is a a return on invested year and from over big winner capital (ROIC) of 69 million ‘supply 8.8% chain’ jobs 1% of world GDP Total employment to bespent on air by airl
Slide 6: Competition Overview
Competition Overview 100% government owned 100% government owned Fleet size: 329 Fleet size: 94 Destinations: 302 (44 in Africa) Destinations: 121 (77 in Africa) 100% government owned 100% government owned Fleet size: 126 Fleet size: 50 Destinations: 86 (2 in Africa) Destinations: 73 (32 in Africa)
Slide 7: Africa Outlook
Africa Outlook Consumer Average GDP Spending Power growth in 2018 Promising growth continues to rise to reach 4.3% as prospect at an average economies bounce rate of 14% back after 2016 yearly slowdown Source: IMF
Slide 8: African Market Potential
African Market Potential +30% +20% +24% +24% +10% High growth +18% dynamics of flights are projected for +28% +21% Kenya within next 5 years Source: IATA +19%
Slide 9: Kenya is the leading economy in East and Central Africa
Kenya is the leading economy in East and Central Africa HIGHLY STRONG STRONG GDP REGIONAL SKILLED INTERNATIONAL ECONOMY GROWTH EQUALIZER WORK HUB FORCE
Slide 10: A strong KQ leads to a stronger Kenyan Economy
A strong KQ leads to a stronger Kenyan Economy
Slide 11: KQ's Role in the Country's Economy
KQ’s Role in the Country’s Economy CONNECTING AFRICA TO THE WORLD Key benefits for Kenya IMPACT ON BUSINESS ECONOMY ENABLER TOURISM BRAND RAPID GROWTH AMBASSADOR EMPLOYMENT
Slide 12: Daily operations key figures
Over 10,000 Over 12K meals served on passengers board, the largest 170 tonnes daily restaurant in KE of cargo daily 140 take offs 53 and landings destinations per day
Slide 13: Awards
Awards Africa’s Leading Airline in 2017 Africa’s Leading Airline Business Class
Slide 14: Financial Results
Financial Results
Slide 15: Operating Highlights
Cabin Factor Operating Highlights up 5.4% to 6.7% increase in 76.9% Intra Africa Traffic Passenger Revenue Per numbers grew Kilometer grew 3.3% to 2.3M by 6%
Slide 16: Financial Highlights
Loss after tax Financial Highlights Operating profit of KSh 3.8 billion. KSh 1,443 million. 52% 20.5% decrease from increase, from KSh 949 million KSh 4.8 billion Overheads down Fleet cost down by 8.9% by 21.9%
Slide 17: Operating Statistics - Half Year 2017
Operating Statistics - Half Year 2017 2017 2016 Var Var % RASK (Usc) 5.89 6.01 (0.12) (2.0) CASK (USc) 6.40 6.66 0.26 3.9 ASK's (mil) 7,132 7,237 (105) (1.4) RPK's (mil) 5,486 5,175 311 6.0 Cabin Factor % 76.9% 71.5% 5.4 Passengers ('000s) 2,306 2,232 74 3.3 Yield per RPK incl YR(USc) 7.66 8.41 (0.7
Slide 18: Consolidated Income Statement
Consolidated Income Statement 30 Sep 2017 30 Sep 2016 Change KShs M KShs M % Revenue 54,518 54,748 (0.4) Operating costs (53,075) (53,799) (1.3) Operating profit 1,443 949 52 Operating margin (%) 2.65% 1.73% Other costs (5,212) (5,675) (8.2) Loss before income tax (3,769) (4,726) 20.2 Income tax cha
Slide 19: HY Pax nos/Cabin Factor
HY Pax nos/Cabin Factor 2,350 90.0 2,300 80.0% 70.0% 2,250 60.0% 2,200 50.0% 2,150 40.0% 2,100 30.0% 2,050 20.0% Pax Nos. 2,000 10.0% Cabin Factor % 1,950 0.0% 2014 2015 2016 2017
Slide 20: Operating Cost and Revenues
Operating Cost and Revenues 43,000 39,000 DOCs KShs mil 1,607 106 149 385 35,005 32,758 35,000 31,000 27,000 Operating 23,000 cost higher Act 2016 Fuel Maint Landing Others Act 2017 than last Handling year driven by fuel prices 54,748 (707) 54,518 (92) (29) 1058 55,000 Revenue KShs mil 50,000 45,000
Slide 21: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 30 Sep 2017 31 Mar 2017 KShs M KShs M ASSETS Non-current assets 117,168 119,397 Current assets 24,844 26,747 Total Assets 142,012 146,144 EQUITY & LIABILITIES Equity attributable to owners (48,179) (44,964) Non-controlling interest 52 49 (48,127) (44,915)
Slide 22: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows 30 Sep 2017 30 Sep 2016 KShs M KShs M Cashflows from operating activities Cash generated from operations 9,832 9,333 Interest received 17 5 Interest paid (3,714) (3,630) Income tax paid (30) (141) Growth in operating Net cash generated from operating activities 6
Slide 23: Operating Performance on an Upward Growth
Operating Performance on an Upward Growth 4,000 2,000 2014 2015 2016 2017 (2,000) (4,000) (6,000) (8000) Operating profit/loss (10,000) Loss before tax (12,000)
Slide 24: Business Strategy
Business Strategy —
Slide 25: KQ Group Integration Family
—_ ~KQ Group Kenya Airways <7 R kenya nirways :5, Jambojet * Earek tel THE PRIDE - CENTRE Kenya Airways CARGO
Slide 26: Key KQ Strategies
Key KQ Strategies Profitable Launch of Cost Winning Improved Network New York Reduction the Market Revenue Structure
Slide 27: Capital Optimisation
Capital Optimisation
Slide 28: Post Restructuring Shareholders Distribution
Post Restructuring Shareholders Distribution Government of Kenya 48.9% KQ Lenders 38.1% KLM 7.8% Government of Kenya Other Shareholders 5.2% 48.9% Other Shareholders 5.2% KQ Lenders 38.1% KLM 7.8%
Slide 29: Benefits of Financial Restructuring
Benefits of Financial Restructuring 36% From 21 7 To 35% Debt Reduction Reduction of Debt Liquidity Relief to EBITDAR Ratio
Slide 30: Q&A
Slide 31: Asante
Asante