Kenya Airways Plc · NSEKE:KQ
Kenya Airways — FY2020 Earnings Presentation
25 slides from Kenya Airways's earnings presentation, Mar 23, 2021
Slide 1: Investor Briefing FY 2020 Results Presentation
Investor Briefing FY 2020 Results Presentation 23rd March 2021
Slide 2: Slide 2
Slide 3: Agenda
Agenda • Market Perspectives • Financial Results • Future Outlook
Slide 4: Market Perspectives
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Slide 5: Global Aviation: Effects of the Coronavirus Pandemic
Global Aviation: Effects of the Coronavirus P Passenger & Freight Traffic 50 % Drop in Seat Capacity 30 % Cargo Yield Growth $3 Drop i ICAO (March 2021): Effects of Novel Coronavirus (COVID-19) on Civil Aviation: Economic Impact Ana
Slide 6: Global Aviation Revenue Passenger Kilometre Performance in 2020 (RPK)
Global Aviation Revenue Passenger Kilometr Performance in 2020 (RPK) • COVID-19 remains the biggest shock to hit the aviation industry since World War 11. • The pandemic has seen Global RPK’s shrink by an average of 66% in 2020
Slide 7: Performance of Select Global Airlines in 2020
Performance of Select Global Airlines in 202 Legacy Carriers N. America A DELTA American AN Airlines @ UNITED #2 AIRLINES AM, HAMELIN G Loss US $12.4Bn Aircraft No 800 Loss per aircraft US $ 15.5 Mn Aircraft No Loss US $ 8.9 Bn 882 Loss per aircraft US$ 10 Mn Aircraft No Loss US$ 7.1Bn 828 Loss per
Slide 8: Aviation in Africa
Aviation in Africa Impact of COVID 19 on the industry Pax Reve reduced by loss ( 78M $14 Seat Capacity Drop $120B GDP loss for 58% travel & tourism sector Source: AFDB (Nov 2020) - An Effective Response to COVID-19 Impacts on Africa’s Aviation Sector & https://www.icao.int/Newsroom/Pages/2020-passen
Slide 9: Government Support to Airlines
Government Support to Airlines Business Rescue Plan Long-term financing loan US$ 1.26 B $191M State guaranteed loan Rescue p $624.8M $152M
Slide 10: Main Highlights
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Slide 11: Cargo Operations
Cargo Operations Deliveries across Pharma Direct markets Cargo operations • Flower deliveries to Dedicated 600sqm Mombasa to Sharjah Europe- 2,600tons cold room capable of from November 2020 • Foodstuffs to Europe & handling up to 300 Middle East - 11,000 tons tons • Pharma and PPE - 8,000 tons
Slide 12: Innovation
Innovation Fahari Hub Set-up KQ Fahari Aviation Ideas are developed & implemented. • Developed Business Un for Unmanned aircraft Success include; systems. • Regional cargo • Acquired 4 training • operations drones. • Charters
Slide 13: Customer Excellence Centre (CEC)
Customer Excellence Centre (CEC) Revamped the Customer Contact Centre to the Customer Excellen
Slide 14: Cash Conservation & Cost Savings
Cash Conservation & Cost Savings Loan Repayment Moratoria Conserved over USD$60 M Technical Costs Savings Savings of approximately US $13M through supplier negotiations & B787 C- Checks
Slide 15: Awards
Awards KQ Pride Centre IATA 2020 Regional Top performer approved training centre. • Regional Top Performer 2020 - Africa & Middle East KQ World Travel Awards 2020 • Africa’s Leading Airline-Business class • Africa’s Leading Airline-Economy class • Africa’s Leading Airline-Brand 2020
Slide 16: Operational Highlights
Operational Highlights Key CY – Current Year PY – Previous Year
Slide 17: Financial Results
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Slide 18: Turnover Trend
Turnover Trend 128,317 70,000 65,000 60,000 331 (69,926) (864) 55,000 (5,053) 50,000 45,000 40,000 30,000 2019 Passengers Freight & Mail Handling Others
Slide 19: Cost Trend
Cost Trend 150,000 141,292 130,000 (22,597) ie Fixed Costs ee (27,418) _ 91 E 70,000 30,000 2019 Aircraft fuel & oil Other DOCs Employee Costs Net finance Costs Other Overheads F
Slide 20: Performance Trend
Performance Trend 60,000 3,342 oe 50,015 : — | 40,000 lc a (3,228) ’ 20,000 (12,975) (20,000) (40,000) (75,512 (60,000) (80,000) 2019 (Lass Before Tax) Direct casts Overheads Financing casts Fleet ownership casts Income
Slide 21: Looking Ahead
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Slide 22: Projected Demand Recovery IATA
Projected Demand Recovery IATA Revenue Passenger Kilometers (RPK) forecasts downgraded; 2019 regained only by 2024 75% growth now forecast for 2021 but RPKs still 36% below 2019 levels Source: IATA/Tourism Economics’ Air Passenger Forecasts, July 2020
Slide 23: Looking Ahead: Aviation in Africa
Looking Ahead Aviation in Africa PRE COVID-CHALLENGES COVID CHALLENGES Intra-African connectivity levels Dramatic drop in demand among the lowest in the world Adequate stimulation packages by Limited to/from Central/Western governments needed Region Airline related Jobs at Risk Air transport is unaf
Slide 24: Crisis to Opportunity
Crisis to Opportunity Reform the National Civil Develop Partnerships Aviation framework: To support the Airlines Even out the field, competitiveness growth aspirations Innovation Growth Respond to new & future market Continue building financially trends using digital technology & sustainable network
Slide 25: Asanteni!
Asanteni!