Kenya Airways Plc · NSEKE:KQ
Kenya Airways — FY2018 Earnings Presentation
16 slides from Kenya Airways's earnings presentation, Apr 30, 2019
Slide 1: A Year of Investment
A Year of Investment FULL YEAR 2018 FINANCIAL RESULTS 30 TH APRIL, 2019
Slide 2: Africa Outlook
Africa Outlook
Slide 3: Africa Aviation Outlook: Highest Growth Potential
Africa Aviation Outlook Highest Growth Potential FULL YEAR 2018 FINANCIAL RESULTS PASSENGER NUMBERS IN BILLIONS ASIA-PACIFIC 1.3 3.1 2.5% EUROPE 0.9 1.5 2.8% 4.8% 4.7% 0.8 1.3 NORTH AMERICA LATIN AMERICA 0.3 0.7 5.1% HIGHEST 3.8% GROWTH 0.2 0.4 MIDDLE EAST RATE IN THE WORLD AFRICA 0.1 0.3 Source: IA
Slide 4: Challenges & Mitigation: Fuel Price Volatility
Challenges & Mitigation Fuel Price Volatility FULL YEAR 2018 FINANCIAL RESULTS 90 80 70 • Oil prices up by 30% in 2018 60 • Rising fuel cost is the biggest 50 challenge to profitability 40 • Mitigation: Implemented hedging in Q4 2018 30 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec 2017 2018 Fuel
Slide 5: More than an Airline
More than an Airline FULL YEAR 2018 FINANCIAL RESULTS Ground MRO Jambojet Handling Service 2017 2018 2017 2018 2017 2018 40 56 customers customers 3 5 aircrafts aircrafts 17 17 customers customers
Slide 6: FY 2018 Highlights of Investment
FY 2018 Highlights of Investment
Slide 7: 2018 Achievements
2018 Achievements FULL YEAR 2018 FINANCIAL RESULTS Daily Daily On Time Passenger Sectors Cargo Cabin Factor Performance Numbers Uplift 2018 2018 2018 2018 2018 13,258 65,684 176 76% 79% 2017 2017 2017 2017 12,484 64,602 174 74%
Slide 8: Investment in New Routes
Investment in New Routes FULL YEAR 2018 FINANCIAL RESULTS New York • Launched Oct 28th 2018 Libreville Mogadishu Increased capacity for long haul Mauritius
Slide 9: Increased Frequencies Boosted Local and Regional Network
Increased Frequencies Boosted Local and Regional Network FULL YEAR 2018 FINANCIAL RESULTS +3 +4 Lagos Entebbe +3 +3 Republic of Congo Mombasa Bombardier Q400 +3 Boost local and Democratic Republic regional frequencies of Congo +5 Cape Town *For detailed schedule, visit www.kenya-airways.com
Slide 10: Investment in Partnerships
Investment in Partnerships FULL YEAR 2018 FINANCIAL RESULTS Joint Venture: Code Shares: Shared revenue and costs Boosts connectivity
Slide 11: FY 2018 Financial Results
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Slide 12: Important Notice
Important Notice FULL YEAR 2018 FINANCIAL RESULTS Following the Directors resolution in 2017 to change the Group’s financial year end from 31 March to 31 December, the 2018 financial statements cover a twelve month period from 1 January 2018 to 31 December while the financial statements for 2017 cov
Slide 13: Financial Highlights
Financial Highlights FULL YEAR 2018 FINANCIAL RESULTS Revenue KShs 114.2Billion 2017 - KShs 80.8Billion Fleet Costs Direct Operating Costs KShs 18.9Billion 2017 - KShs 12.4Billion KShs 75Billion 2017 - KShs 51.8Billion Overheads Operating Profit 2018 KShs 20.9Billion (KShs 683Million) 2017 - KShs 15
Slide 14: Summary Consolidated Income Statement
Summary Consolidated Income Statement FULL YEAR 2018 FINANCIAL RESULTS As at 31 Dec, 2018 As at 31 Dec, 2017 (12 months) (9 months) KShs Mil KShs Mil Revenue 114,185 80,799 Total operating costs (114,868) (79,791) Operating (loss)/profit (683) 1,008 Operating margin (%) (0.6%) 1.2% Other costs (6,95
Slide 15: Future Outlook
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Slide 16: Future Outlook
Future Outlook FULL YEAR 2018 FINANCIAL RESULTS Improving operations and growing an efficient network in a highly competitive environment. Route Expansion Revenue Growth/ Fleet Growth Jambojet Project Simba • Rome & Geneva 12th Cost Containment • Boeing 787 re-entry • Regional expansion • Aviation p