Kenya Airways Plc · NSEKE:KQ

Kenya Airways — H1 FY2010 Earnings Presentation

28 slides from Kenya Airways's earnings presentation, 2009

  1. Slide 1: Business and Financial Review Half Year Ended 30th September 2009

    Business and Financial Review Half Year Ended 30th September 2009

  2. Slide 2: Global Economy

    Global Economy World Economy shows signs of weak recovery ƒ Economic recovery underway but un‐ even ‐ Developed economies recovery slower than the Developing economies ƒ Debt D bt is i holding h ldi back b k Developed D l d economies Source: IATA website

  3. Slide 3: Airline Industry

    Airline Industry ƒ Airlines globally expected to make US$ $ 11bn loss in 2009 up from previous forecast of US$9bn loss. ƒ Outlook l k for f 2010 ‐ airline l l losses willll reduce d to US$3.8bn $ b ƒ Though economic up‐turn now visible traffic and yield much h weaker k than h anticipated. i i d ‐ As

  4. Slide 4: Passenger traffic rise but yields are weak

    Passenger traffic rise but yields are weak

  5. Slide 5: Freight Volumes rise but yields are weak

    Freight Volumes rise but yields are weak

  6. Slide 6: Industry Statistics Aug YTD (2009 vs. 2008)

    Industry Statistics Aug YTD (2009 vs. 2008) RPK% ASK% PLF % FTK% ATK% Growth Growth Growth Growth Africa (8.1) (4.1) 70.4 (20.0) (5.5) Asia/Pacific (9 9) (9.9) (7 5) (7.5) 72 5 72.5 (18 8) (18.8) (14 9) (14.9) Europe (6.3) (4.5) 75.9 (20.0) (9.5) Middle East 84 8.4 13 0 13.0 73 0 73.0 (3 5) (3.5) 49

  7. Slide 7: Key Activities over the Past Six Months

    Key Activities over the Past Six Months

  8. Slide 8: Strategy

    Strategy • Systems • Fleet Modernisation

  9. Slide 9: Systems

    Systems • E‐Ticketing Compliance achieved 98.2% • OASES Phase 1 rolled out 3rd June 2009 ‐ Base maintenance ‐ Shop Floor data capture • Integrated Cargo Control /Maintenance Control system rolled out in Jun 2009 • Human Resources Management System in ERP as an enhancement in final stages

  10. Slide 10: The Enterprise Resource Planning (ERP) Software Package

    The Enterprise Resource Planning (ERP) Software Package Named: i-Pride Aims to integrate many business areas of the enterprise Phase 1 complete 9 Finance 9 Human Resource 9 Supply Chain ƒ2nd Phase (2008/09) : 9 Ground Support Equipment - Rolled out 3rd June 09 9 Project & Facilities Management 9 ERP

  11. Slide 11: Fleet in Service

    Fleet in Service Seats 2009 2008 Wide body Boeing 777-200 322 4 4 Boeing 767-300 216 5 6 Narrow body Boeing 737-800 145 5 2 Boeing 737-700 116 4 4 Boeing 737-300 116 4 4 E b Embraer 170 72 3 2 Saab 340 35 2 Total Fleet 25 24

  12. Slide 12: Weekly OTP Zero Minutes

    Weekly OTP Zero Minutes OTP 90% 80% Current Year PTET eee emer m enema meme meme meme m eminem ene: 70% 60% 40% 1 4 7 10 13 #16 #19 #22 25 28 31 34 63706 64006 64306: 646) 64906: 6520 C3 6 9 12

  13. Slide 13: Mishandled Baggage

    Mishandled Baggage MHB % 9% 8% 7% 6% 5% 4% 3% Previous Year 2% 1% Current Year 0% 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 WEEKS

  14. Slide 14: Corporate Social Responsibility

    Corporate Social Responsibility • CSR Broken down into three categories ‐ Education ‐ Water ‐ Environment

  15. Slide 15: Complete Education CSR Projects

    Complete Education CSR Projects Project Month Completed Dzorwulu Special School – Accra, Ghana 19th May 09 Farasi Lane School – Nairobi, Kenya 29th May 09 Riobara Secondary School – Kisii, Kenya 22nd Sept 09 Kipcherere School – Baringo, Kenya 9th Oct 09 Magaca School h l – Embu, b kkenya 16th Oct 09

  16. Slide 16: Complete Environment & Water CSR Projects

    Complete Environment & Water CSR Projects Project j Month h Completed C l d Plant a Future – Ngong g g Hills,, Kenya y 25th April p 09 Runana Water Project – Kiambu, Kiambu Kenya 7th Aug 09

  17. Slide 17: CSR Projects for October 2009-March 2010

    CSR Projects for October 2009‐ March 2010 Committed Projects Adopt a School in Douala Cameroon Tree Planting maintenance of 450,000 trees planted in phase 1, 2 & 3 Preparation for 2010 tree planting initiative Adopt Ikuu girls Secondary School – Chuka Kenya (Dining hall & Dorm) Adopt Tree side speci

  18. Slide 18: CSR Projects for October 2009-March 2010

    CSR Projects for October2009‐ March 2010 Committed Projects Esupetai Primary School – Narok (Classroom Construction) Gaigedi Village – Maragoli (Borehole Construction) Kasagam Secondary School Kisumu (construction of computer lab) Mangu High School (construction of Computer Lab) Hambakwe School Zimb

  19. Slide 19: Passenger Numbers

    Passenger Numbers 300 280 260 240 220 200 CY PY 180 160 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

  20. Slide 20: Group Income Statement

    Group Income Statement KShs Mil. 2009 2008 Var. Var. % Turnover 71,829 33,488 34,066 578 (1.7) Direct Operating Costs (21,709) (47,792) (24,462) 2,752 11.3 Fleet Ownership Costs (4,768) (3,690) (1,078) (29.2) Gross Profit 7,011 5,914 1,096 18.5 Overheads (12,001) (6,849) (5,738) (1,111) (19.4) Opera

  21. Slide 21: Group Turnover

    Group Turnover KShs mil 2009 2008 Var % Var Passenger 30,045 29,643 402 1.4% Cargo 2 595 2,595 3 084 3,084 (489) (15 8%) (15.8%) Handling 627 547 80 14.6% Other e.g. e g unused tickets etc. etc 221 792 (571) (72.1%) Total Revenue 33,488 34,066 (578) (1.7%)

  22. Slide 22: Historical and Forward Price Curve

    U S D /M T 300.00 500.00 700.00 900.00 1,100.00 1,300.00 Mo n Ja th n -0 Fe 7 b- M a 07 r Ap -07 r-0 Ma 7 y- J u 07 n -0 Ju 7 l Au -07 g -0 Se 7 p O c -0 7 t- N o 07 v -0 De 7 c- J a 07 n F e -0 8 b-0 Ma 8 r- Ap 08 r-0 Ma 8 y- J u 08 n -0 Ju 8 l Period Au -08 g -0 Se 8 p- O c 08 t- N o 08 v -0 De 8

  23. Slide 23: Group Balance Sheet

    Group Balance Sheet KShs Mil ACTUAL ACTUAL ASSETS Sep-08 Sep-09 Var Var % Aircraft 45,253 45 253 45,622 45 622 369 0.8% 0 8% Properties, Plant & Equip 6,622 5,359 (1,263) (19.1%) Purchase of Leasehold Land 1,673 1,652 (21) (1.3%) Aircraft deposits 2,253 2,292 39 1.7% Others 495 491 (4) (0.8%) Total

  24. Slide 24: Group Balance Sheet

    Group Balance Sheet KShs Mil ACTUAL ACTUAL EQUITY AND LIABILITIES Sep-08 Sep-09 Var Var % Capital 2,308 2,308 - 0.0% Cumulative Profits 20,987 16,928 (4,059) (19.3%) Hedge Reserve 1,263 143 (1,120) (88.7%) 24,558 19,379 (5,179) (21.1%) Aircraft Loans 30,837 27,958 (2,879) (9.3%) Deferred Taxation 8,

  25. Slide 25: Group Cash Flow

    Group Cash Flow Year to date Actual Actual KShs Mil Sep-08 Sep-09 Var Var % Profit before tax 1,051 1,229 178 16.9% Depreciation & Amortisation 1,846 1,993 147 8.0% Interest expense 731 775 44 6.0% Hedged exchange diffs 845 (4,593) (5,438) (643.6%) Other items (392) (245) 147 (37.6%) Movt in working

  26. Slide 26: The Next Six Months

    The Next Six Months —_

  27. Slide 27: Major Initiatives

    Major Initiatives Target Date ƒ Cost Control –PCIP Mar 10 ƒ Pride Centre II on going ƒ Integrated Ops & Maint. Control system (IOCS &MCS) Mar 10 ƒ Integrated Cargo Control System Mar 10 ƒ ERP M Modules d l M 10 Mar 9 Outstation connectivity 9 Contracts Management 9 I-Supplier 9 HRMS Enhancements ƒ W

  28. Slide 28: Major Initiatives

    Major Initiatives • Increase Revenues – new routes & frequencies • Continue with Cost control initiatives • Fleet Modernisation ƒ Carbon Emission Trading Scheme Mar 2010 ƒ Automatic Communication Alert & Recording System (ACARS) on going ƒ Electronic Flight Bag June 2010 ƒ IFE Upgrade Dec 2009 ƒ OAS

Kenya Airways — H1 FY2010 Earnings Presentation on 6ix