Kenya Airways Plc · NSEKE:KQ

Kenya Airways — FY2019 Earnings Presentation

24 slides from Kenya Airways's earnings presentation, May 27, 2020

1. Slide 1: FY 2019 Results Presentation

   FY 2019 Results Presentation 27th May 2020

2. Slide 2: Overview of Aviation in 2019: Global & Africa

   Overview of Aviation in 2019: Global & Africa

3. Slide 3: Global Aviation: Continued growth

   Global Aviation: Continued growth Global Passenger Traffic Global Air Cargo Traffic Airline Profit Margins Source: IATA 2016 -2018 GROWTH YOY 2019 SLOW DOWN • Growth in international Tourism • Weaker global GDP growth • Global economic growth • Reduced world trade growth- 0.9% • Lower Air fares, greate

4. Slide 4: Africa Aviation: Strong potential for growth

   Africa Aviation: Strong potential for growth Africa Growth Trend World scheduled passenger and freight trafffic Passengers numbers (Billions) by region of airline Revenue Tonne-Kilometers (millions) Middle East 10.4% Africa 2.2% North America 22.4% Europe 26.3% Latin America 4.5% Asia Pacific 34.3% S

5. Slide 5: Pursuing Growth in 2019: Key Highlights

   Pursuing Growth in 2019: Key Highlights

6. Slide 6: Increasing Connectivity

   Increasing Connectivity Geneva Rome Malindi Boeing 787 brought back from Oman Air Jambojet IOSA Certification

7. Slide 7: Partnerships: Increasing Connectivity

   Partnerships: Increasing Connectivity Increased connectivity to Europe, Connectivity beyond the United Onward connectivity across the Far East and South America Kingdom, Italy and Netherlands the US and Canada Additional access to the extensive European network Seamless connectivity across Asia and

8. Slide 8: Operational Highlights

   Operational Highlights +15% +6.7% +77% Available Seat KMs Passenger Numbers Cabin Factor 16,731 mil 5.1 mil 14,551 mil 4.8 mil +6.3% +9% +12% Cargo Volumes Block Hours Turnover 68,264 Tonnes 169,773 Kes 128 Bn 64,238 Tonnes 155,703 114 Bn

9. Slide 9: Recognition & Awards

   Recognition & Awards Best Talent Acquisition team in Sub-Saharan Africa in the LinkedIn Africa Talent Awards 2019. Network Rationalisation Most admired aviation brand Kenya Ranked 5th amongst listed companies in Kenya that ensure gender balance by The Airline of Choice - Cargo NSE in partnership wit

10. Slide 10: FY 2019 Financial Results

    FY 2019 Financial Results } kenya Airways G, ts. Sipe

11. Slide 11: Adopting the New Financial Reporting Standard: IFRS16

    Adopting the New Financial Reporting Standard: IFRS16 Principle: Operating leases are now recognised as assets in financial statements. This enables comparability between companies that lease assets and those that buy. IAS 17 IFRS 16 • Leases are off balance sheet • Leases are on balance sheet • Leas

12. Slide 12: Total revenues improved

    Total revenues improved Trend Revenue (Ksh Million) 128,317 114,185 (Kes Million) 106,277 80,799 2016 2017* 2018 2019 *Nine (9) months

13. Slide 13: Costs Increased

    Costs Increased Trend Cost (Ksh Million) 141,292 (Kes Million) 121,774 105,380 87,105 2016 2017* 2018 2019 *Nine (9) months

14. Slide 14: Full Year Loss Before Tax

    Full Year Loss Before Tax (Kes Million) 2016 2017 2018 2019 • Increased Costs: New Routes & Frequencies • Return of B787 into KQ Service & Lease Costs -10,202 -6,306* -7,588 -12,975 • Impact on IFRS adoption in accounting *Nine (9) months

15. Slide 15: Movement in financial Results

    Movement in financial Results (Kes Million)

16. Slide 16: Detailed movement of 2018 vs 2019

    Detailed movement of 2018 vs 2019 (Kes Million)

17. Slide 17: Summary of Consolidated Income Statement

    Summary of Consolidated Income Statement Dec-19 Dec-18 KShs. Mil KShs. Mil Delta Total Revenues 128,317 114,185 12% Total Operating Costs (129,170) (114,868) -12% Operating Loss (853) (683) -25% Operating Margin % (0.7) (0.6) Total Financial Items (12,122) (6,905) -76% Loss before Tax (12,975) (7,58

18. Slide 18: Summary of Consolidated Statement of Financial Position

    Summary of Consolidated Statement of Financial Position 31 December 2019 31 December 2018 KShs M KShs M Assets Non-current assets 170,013 108,658 Current assets 25,660 27,976 TOTAL ASSETS 195,673 136,634 EQUITY AND LIABILITIES Equity attributable to owners (17,946) (2,538) Non-controlling interest 5

19. Slide 19: Summary of Consolidated statement of Cash flow

    Summary of Consolidated statement of Cash flow 31 December 2019 31 December 2018 KShs’M KShs’M Cashflows from operating activities Cash generated from operations 20,655 11,238 Interest received 30 45 Interest paid (4,683) (4,838) Income tax paid (61) (62) Net cash generated from operating activities

20. Slide 20: Future Outlook

    Future Outlook

21. Slide 21: Managing COVID-19

    Managing COVID-19 In the wake of COVID-19, we have continued to contribute to sustaining the lives of communities in Africa by providing the connections for our produce to reach international markets, medical supplies to reach our people, and families to be reunited. Keeping Africa’s economy moving

22. Slide 22: The future in a post COVID-19 world

    The future in a post COVID -19 world Safe Travel Diversify Digital Network • Cargo • Harnessing data Rationalization • Health • MRO • Customer reach • Routes • Safety • Digital retail • Fleet

23. Slide 23: Beery airways:5;

    Beery airways:5;

24. Slide 24: Asanteni

    Beery airways:5;

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