#1Air Arabia Investor Presentation 32 2016 airarabia.com العربية للطيران D-AXAD#2The Development of Air Arabia#3Air Arabia - General Overview Company Overview العربية للطيران airarabia.com Launched in October 2003, Air Arabia was the first and is the largest low cost carrier in the Middle East and North Africa. 13 years of consistent growth. 13 year of consistent profitability. Initial Public offering was successfully completed in 2007. Operating a total fleet of 44 Airbus 320 aircraft. Operates out of 5 locations: Sharjah, Ras Al Khaima, Egypt, Morocco, and Jordan. More than 120 Destinations served. Financially stable with a strong balance sheet.#4Business model العربية للطيران airarabia.com Leadership First mover advantage – The first listed airline in the Arab world (DFM). Truly Independent – In Management and Strategic development. Strong support at our home base – Air Arabia is by far the largest operated in Sharjah Airport, providing commercially competitive advantages. Brand Name one of the most recognised brand names in the MENA region. Powerful business model High Aircraft utilization - around 15hrs a day, one of the best in the world (A 320). 80%+ Seat factor year round. Low cost principals - Constantly driving our costs lower to industry leading levels. Safety - The highest operational standards. Young fleet average age around 3 years. Excellent on time performance. Above industry average and improving Best seat pitch in class - Comfortable 32 inches. Strong group support - JV's and subsidiaries helping to drive economies of scale and profitability.#5Consistent Growth Destinations 59 59 44 37 32 23 15 73 65 116 101 90 82 32 3 Fleet Size 21 16 العربية للطيران airarabia.com 41 39 33 34 29 25 25 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total Passengers (Million) 68% Load Factor 86% 85% 83% 82% 82% 79% 80% 80% 80% 80% 79% 7.64 6.82 6.1 5.3 4.5 4.7 4.1 3.6 2.7 1.8 1.1 0.5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015#6Amsterdam London Gatwick Moscow Cologne. Kiev Brussels Frankfurt Basel-Mulhouse Venice Lyon Toulouse Milan Turin Bologna Montpellier Tbilisi Barcelona Naples Yerevan Istanbul Palma de Madrid Mallorca Tangier Nador Fez CASABLANCA Marrakech العربية للطيران airarabia.com ALEXANDRIA Air Arabia's Global Presence Astana Urumqi Almaty Antalya Erbil Mashhad Tehran Peshawar Beirut Baghdad AMMAN Najaf Isfahan Islamabad Sialkot Abadan Quetta Lahore Al-Jouf Basra Faisalabad Shiraz Multan Cairo Tabuk Kuwait Delhi Assiut Sharm Ha'il Lar RAS AL KHAIMAH Sohag El Sheikh Gassim Dammam Bahrain Jaipur Kathmandu Hofuf SHARJAH Medinah Doha Karachi Riyadh Yanbu Muscat Jeddah Ahmedabad Dhaka Chittagong Nagpur Taif Abha Mumbai Gizan Salalah •Hyderabad Khartoum Goa- Bangalore Chennai Calicut Coimbatore Kochi Thiruvananthapuram Colombo Nairobi#7Group companies العربية للطيران airarabia.com Air Arabia (PJSC)- (DFM:AIRARABIA), consists of a group of airlines and companies offering travel and tourism services across the globe. Industry Airlines Companies العربية للطيران airarabia.com العربية للطيران airara candle maroc العربية للطيران airarabia.com مصر egypt - العربية للطيران - الأردن Jordan airarabia.com Ownership 100% 41% 49% 49% Description First & Largest LCC in MENA region covering vast population spreading across Middle East and Indian Subcontinent and CIS region. Morocco's leading LCC extensively covering Europe from various airports across the Kingdom with great potential to spread wings into Africa. Egypt's most innovative LCC, serving GCC the Middle East, Europe and Africa. The latest addition to the low cost carriers industry in Jordan, with a HUB in Queen Alia International Airport and operations to the GCC, Levant, and MENA generally. الشارقة لخدمات الطيران Ground Handling & MRO Sharjah Aviation Services العربية للطيران . الهندسة engineering - airarabia.com Flight Operations العربية للطيران airarabia.com simulator CENTRO الشارقة Hospitality alpha flight services Tourism Technology cozmo travel مقر العالم للسفريات 50% 100% 100% 100% Radisson எடப HOTELS & RESORTS 51% וייד ACTION HOSPITALITY 51% ISA 100% Accel Your Guth 100% 100% SAS is a JV with Sharjah Airport that delivers a comprehensive range of passenger, ramp and cargo handling for airline operators and airport customers. Maintenance Hangar designed to meet all MRO requirements for entire Air Arabia fleet while serving other airlines and aircraft. Providing significant cost saving, this flight simulator facility helps Air Arabia provide world-class training for up to 400 pilots a year. Both hotels perfectly situated in Sharjah and Dubai providing Air Arabia with a great expansion into hospitality. JV company that supports and enhances the quality of on-board catering while servicing a niche market for catering and hospitality Spread across GCC states, Cozmo Travel is a leading travel agency providing a wide range of individual and corporate travel solutions. ISA is a leading IT solutions provider. ISA unique creation is the leading reservations system 'AcelAero' that is now being used by many airlines across the world.#8Airline Companies 3 30 20 10 0 Growth in number of destinations at each Hub 88 Air Arabia Egypt العربية للطيران airarabia.com 5 Air Arabia UAE Jordan 1 Air Arabia UAE Sharjah 10 100 5 Air Arabia Maroc 50 4 0 2013 2014 2015 2015 0 اس 2011 2012 2013 2014 2015 1 2011 2012 2013 2014 2015 4 Air Arabia UAE RAK Strategic bases in key geographical locations serving regions covering a population of over 3 billion: Middle East Indian Subcontinent South and Central Asia ✓ Africa ✓CIS Region ✓Europe 15 10 5 0 2014 2015#9Strong JV's and Subsidiaries Air Arabia supporting businesses contribute strongly to the Group's bottom-line الشارقة لخدمات الطيران Sharjah Aviation Services alpha flight services cozmo travel مقر العالم للسفريات ISA information systems associates CENTRO الشارقة Radisson BLU HOTELS & ASSORTE ACTION HOSPITALITY Revenue (AED MM) Stake FY 14 50% 182 51% FY 15 157 - 84 85 95 ww AED 250 51% 66 100 100% 15.2 20 20 100% 42.8 48 100% 38 38 35 55 wwww 100% 17.1 26.4 العربية للطيران airarabia.com#10Financial Performance 5 F-WW AIRBUS A320 airarabia.com 0000000000000 العربية للطيران.#11Q2 2016 Quarterly Performance Financial Highlights (AED Millions) TOTAL REVENUE Q2' 2015 Q2' 2016 % Change 860 894 4% Operating Profit 118 103 5% Operating Profit Margin 13.7% 11.5% -2.2 pts NET PROFIT 152 131 -13.8% Operational Highlights NUMBER OF PAX CARRIED (Millions) AVERAGE LOAD FACTOR 1.8 2.01 11.6% 79.6% 78.3% -1.3 pts العربية للطيران airarabia.com#12Fuel Hedging positions $75 51% 49% $73 77% 23% $70 85% 15% 2016 2017 2018 Hedged Fuel Not Hedged Fuel العربية للطيران airarabia.com#13о FY 2015 о 2015 saw the addition of 6 new A320s added to the fleet 。 The number of passengers carried for the year 2015 increased by 12% compared to previous year with Air Arabia carrying 7.64 million passengers. 。 Global network grew in 2015 to reach 121 routes from 5 hubs. Air Arabia distributed 9% cash dividends for the year 2015. 。 Operational performance and operational margins continue to reflect healthy and efficient management. (AED MM) (AED MM) Revenues (AED) 2004-2015 العربية للطيران airarabia.com 3,7293,825 3,183 2,832 4,500 4,000 3,500 3,000 2,500 2,0661,9722,080, 2,000 1,796 1,500 1,283 1,000 749 411 500 181 0 2004 2005 2006 2007 2008 2009 2010 2011 2012201320142015 Net Profits (AED) 2005-2015 Margin 600 566 35% 29% 510 530 500 25% 452 30% 424 435 400 869 25% 23% 310 20% 300 274 15% 15% 14% 14% 14% 15% 200 8% 15% 10% 101 11% 100 31 5% 0% 20052006200720082009201020112012201320142015#14Annual Operating Statistics العربية للطيران airarabia.com (Figures in AED) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Number of Aircrafts 3 5 8 11 16 21 25 29 33 34 39 41 Average Aircrafts 3.0 4.9 6.0 9.5 14.5 17.0 23.0 27.5 30.0 31.0 35.0 40.0 Destinations 15 23 32 32 Number of Pax (Millions) 0.5 RPK (Billions) ASK (Billions) 37 44 45 65 69 82 90 100 116 =1 1.1 1.8 2.7 3.6 4.1 4.5 4.7 5.3 6.1 6.8 7.6 1.2 2.5 3.7 5.0 74 7.1 8.5 9.2 9.2 9.6 10.8 13.8 13.8 1.8 3.2 4.7 5.8 8.3 10.5 11.0 11.7 13.0 15.2 17.0 17.0 Average Load Factor 68% 79% 80% 86% 85% 80% 83% 82% 82% 80% 81% 79%#15Corporate Social Responsibility Charity Cloud Program Air Arabia's initiative for sustainable development started in 2005 and currently runs schools and medical centres across: Sudan, Sri Lanka, India, Nepal, Yemen, Turkey, Egypt and Bangladesh - providing education and health care to thousands. Charity Cloud School Air Arabia Sports Adventure Community Initiative launched in 2007 to help sporting individuals and teams to achieve their sporting dreams, these included: ■ Air Arabia World Sailing Endurance Challenge 2007 ■ Bahrain Team Air Arabia -World Sailing Competition 2008 ☐ Air Arabia Sailing Adventure 2010 Air Arabia Para-Gliding Challenge 2011 ■ Team Air Arabia 2012 - World Cycling Challenge ☐ العربية للطيران airarabia.com العربية للطيران airarabia.com#16Disclaimer العربية للطيران airarabia.com Information contained in this presentation is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding, and assume no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. In addition, the information contains projections and forward-looking statements that reflect the company's current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the company's assumptions are correct. Actual results may differ materially from those projected. This presentation is strictly not to be distributed without the explicit consent of Company management under any circumstance.#17Contact Us For full financials and further information: investor-relations.airarabia.com Tel: +971.6.5088977 Email: [email protected] العربية للطيران airarabia.com