Kenya Airways Plc · NSEKE:KQ
Kenya Airways — H1 2023 Earnings Presentation
31 slides from Kenya Airways's earnings presentation, 2023
Slide 1: Kenya Airways PLC Half Year 2023 Investor Briefing
Kenya Airways PLC Half Year 2023 Investor Briefing “The Green shoots of the restructuring process”
Slide 2: Agenda
Agenda 1. Introduction of session 2. Industry Overview 3. Business Updates 4. Financial Highlights 5. Future Outlook 6. 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 HY23
Global Aviation Performance HY23 African carriers Global Available Seat passenger traffic Kilometers (ASK) growth 36.1% 34.7% Global Air Cargo demand 3.4% Passenger Traffic Global Passenger growth Load-Factor (PLF) 31.0% 84.2% Source: IATA’s Air Passenger Market Analysis, June 2023| IATA air cargo m
Slide 6: Jet Fuel & Crude Oil Price
Jet Fuel & Crude Oil Price Jet fuel price and crude oil price USD/bbI r 200 + 180 — Crude Oil 20 —Jet Fuel 140 120 100 Source: IATA Sustainability and Economics, Platts - S&P Global, Macrobond
Slide 7: Exchange Rates
USD: KES Exchange rates 2022 vs 2023 145.00 140.53 140.00 137.83 135.92 135.00 131.90 130.00 126.76 124.50 Exchange Rates 125.00 120.00 116.83 117.89 116.07 113.95 115.03 113.58 115.00 110.00 105.00 100.00 Jan Feb Mar Apr May Jun Month 2022 2023
Slide 8: Business Updates
Improved On Time Performance (OTP) Business Updates
Slide 9: Network Updates
Network Updates 28% Frequency 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 56% Increase in ASK’s Zanzibar – Tanzania 7 (From weekly4.4bn to 12toWeekly 6.9bn) Johannesburg – South Africa Khartoum – Suda
Slide 10: 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 - 57 across the U.S. &
Slide 11: Sports Partnership
Sports Partnership \RI RALLY KENYA 2023 M-SPORT Sh
Slide 12: The Sustainable Flight Challenge
The Sustainable Flight Challenge • 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 environmental sust
Slide 13: Customer Experience Updates
Customer Experience Updates Revamped KQ Website Asante Rewards Inflight Revamp Customer communications Real time alerts Inflight meals Enhanced comfort in Plating service for long-haul business Class
Slide 14: Operational Updates
Operational Updates Improved Aircraft Reliability & Availabilty 4 new Ground Power Units ∑ Signed long- (GPU) term contract for Total Component Support 4 new IATA CEIV Certification electronic trucks - Pharma Transportation (E-trucks) - Warehousing
Slide 15: Improved On Time Performance (OTP)
Improved On Time Performance (OTP) OTP Target 80% 100% 82% 76% 77% 80% 66% 64% 58% 60% OTP 40% 20% 0% Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Average From To 58% 77%
Slide 16: Operational Highlights
Operational Highlights +74% +43% +8 pts Revenue Passenger Passenger Numbers (Mil’s) Cabin Factor (%) KMs (Mil’s) CY 76.1% CY 2.3 CY 5,237 PY 1.6 PY 68.4% PY 3,017 -22% +32% +56% Cargo Volumes (Tonnes) Block Hours Turnover (Ksh Mil’s) CY 27,100 CY 71,930 CY 75,097 PY 34,873 PY 54,578 PY 48,104
Slide 17: Financial Highlights
Financial Highlights Hellen Mwariri Chief Finance Officer
Slide 18: Financial Highlights
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Slide 19: Turnover Trend
Revenue Turnover Trend Revenue 80,000 70,000 75,097 60,000 50,000 58,550 50,601 52,193 48,104 40,000 30,000 29,972 27,354 20,000 10,000 - 2017 2018 2019 2020 2021 2022 2023 H1 90,000 80,000 29,972 75,097 (1,198) (4) (1,777) 70,000 60,000 50,000 48,104 40,000 30,000 20,000 10,000 - HY 2022 Passengers
Slide 20: Cost Trend
Cost Trend 100,000 Total cost Total Cost 90,000 96,793 80,000 70,000 60,000 67,112 50,000 56,372 56,186 57,965 40,000 44,327 30,000 38,896 20,000 10,000 - 2017 2018 2019 2020 2021 2022 2023 120,000 H1 110,000 100,000 17,842 96,794 90,000 80,000 1,847 1,345 341 10,006 70,000 7,448 60,000 57,965 50,00
Slide 21: Profit Trend
OperatingProfit/(Loss) Operating Profit/(Loss) KShsKShs Mil Mil Profit Trend 2,000 998 0 (732) -2,000 (1,025) (2,904) -4,000 -6,000 (5,009) -8,000 (7,274) (8,417) -10,000 30,000 2017 2018 2019 2020 H1 2021 2022 2023 20,000 26,993 10,000 (7,448) - (10,006) (1,345) (2,188) (10,000) (9,861) (20,000) (1
Slide 22: Summary of Consolidated Income Statement
Summary of Consolidated Income Statement Jun-23 Jun-22 KShs. Mil KShs. Mil Delta Total Income 75,097 48,104 56% Total Operating Costs (74,099) (53,113) -40% Operating Profit (Loss) 998 (5,009) 120% Operating Margin % 1.3 (10.4) Finance costs (22,808) (4,960) -360% Interest Income 114 107 -7% Loss be
Slide 23: Summary of Consolidated Statement of Financial Position
Summary of Consolidated Statement of Financial Position Jun 2023 Dec 2022 KShs M KShs M Assets Non-current assets 119,938 127,241 Current assets 48,382 41,671 TOTAL ASSETS 168,320 168,912 EQUITY AND LIABILITIES Equity attributable to owners (133,282) (108,140) Non-controlling interest 64 50 TOTAL EQ
Slide 24: Summary of Consolidated statement of Cash flow
Summary of Consolidated statement of Cash flow Jun-2023 Jun-2022 Ksh Mil Ksh Mil Cashflows from operating activities Cash generated from operations 14,450 7,313 Interest Received 114 107 Interest Paid (4,831) (1,949) Income Taxes Paid (26) (27) Net cash generated from operating activities 9,707 5,44
Slide 25: Mr. Allan Kilavuka Group MD & CEO
Mr. Allan Kilavuka Group MD & CEO
Slide 26: KQ Group EBITDAR evolution
KQ Group EBITDAR evolution 25% EBITDAR Target 20% 20% 15% EBITDAR % 14.7% 15.3% 13.1% 10% 11.7% 8.3% 7.8% 7.8% 5% 0% 2017 2018 2019 2020 2021 2022 2023 Half Year EBITDAR
Slide 27: KQ Group Operating Profit/(Loss) trends
KQ Group Operating Profit/(Loss) trends 1,000 998 998 Operating Profit /(Loss) Kes' Mil - 2017 2018 2019 2020 2021 2022 2023 (1,000) (732) (1,025) (2,000) (3,000) (2,904) (4,000) (5,000) (5,009) (6,000) (7,000) (8,000) (7,274) (9,000) (8,417) Half Year Operating Profit /(Loss)
Slide 28: Future Outlook
Future Outlook
Slide 29: Future Outlook
Future Outlook Expansion Diversification • Fleet optimization - KQ Health expansion - Additional Cargo freighter Recapitalization of the - Fahari Aviation • Jambojet fleet expansion business • Maintainance Repair Overhaul (MRO) • Approved Training Organisation(ATO)
Slide 30: Slide 30
Slide 31: Thank You
Thank You