#1Air Arabia Q3 2017 Investors' Presentation العربية للطيران#2The Development of Air Arabia#3◉ Air Arabia - General Overview Company Overview Launched in October 2003, Air Arabia was the first and is the largest low cost carrier in the Middle East and North Africa. 14 years of consistent growth. ■ 14 year of consistent profitability. ■ Initial Public offering was successfully completed in 2007. ◉ Operating a total fleet of 49 Airbus 320 aircraft. العربية للطيران airarabia.com Operates out of 5 locations: Sharjah, Ras Al Khaima, Egypt, Morocco, and Jordan. More than 132 routes served from 5 hubs by Q3 2017. 12.5 11.4 10.5 9.39 8.04 7.11 Financially stable with a strong balance sheet. 6.07 6.37 Asset Evolution (2009 - 2016) 2009 2010 2011 2012 2013 2014 2015 2016 Asset Values In Billions#4Business model العربية للطيران airarabia.com Leadership ■ First mover advantage - The first Low cost on MENA, and 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 operator 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 59 59 44 37 44 32 Destinations 65 59 73 122 116 101 90 32 82 90 16 Fleet Size 25 21 33 33 29 29 العربية للطيران airarabia.com 34 =4 39 46 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Load Factor 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total Passengers (Million) 86% 85% 83% 82% 82% 82% 80% 80% 80% 80% 79% 18.034 7.64 6.82 6.1 5.3 4.5 4.7 4.1 3.6 2.7 1.8 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016#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 Isfahan Islamabad Sialkot AMMAN Najaf 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% 40% 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.#8MENA Region Still maintains highest growth levels... +3.5% +6.5% +5.7% 4.3% +8.0% +11.2% WORLD: +6.3% Source: IATA Annual report 2016. العربية للطيران airarabia.com#9Airline Companies Growth in number of destinations at each Hub 5 Air Arabia UAE Jordan 1 Air Arabia Egypt 3 Air Arabia Maroc 7 88 6 40 42 4 80 60 6 2 5 30 20 10 0 2011 2012 2013 2014 2015 2016 1 20 5 2013 2014 2015 2016 2015 2016 862° 40 0 3 العربية للطيران airarabia.com Air Arabia UAE Sharjah IIII 2011 2012 2013 2014 2015 2016 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 2016#10Strong 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 15 50% 157 51% FY 16 147 95 85 88 88 ww AED 250 51% 100 107 100% 20 20 23 العربية للطيران airarabia.com 100% 48 40.5 100% 35 33 wwww 100% 26.4 20 20#11Financial Performance 5 F-WW AIRBUS A320 airarabia.com 0000000000000 العربية للطيران.#12FY 2016 Quarterly Performance Financial Highlights (AED Millions) TOTAL REVENUE FY' 2015 FY' 2016 % Change 3,826 3,778 -1.3% Operating Profit 564 365 -35% Operating Profit Margin 15% 9.6% -5.4pts NET PROFIT 531 509 -4% Operational Highlights NUMBER OF PAX CARRIED (Millions) 7.58 8.46 11.6 AVERAGE LOAD FACTOR 78.6% 79.2% +0.6pts العربية للطيران airarabia.com#13FY 2016 。 2016 was a very tough year on aviation industry generally. Revenues (AED) 2004-2015 4,500 4,000 العربية للطيران airarabia.com Despite that, 2016 witnessed the delivery of 6 new A320s to the fleet. 。 Pressure on yields continue to exist and comes from various sources. 3,7293,8253778 3,500 3,183 3,000 2,832 2,434 2,500 2,0661,9722,080 2,000 1,283 1,000 749 500 ill 2006 2007 2008 2009 2010201120122013201420152016 。 The number of passengers carried for the year 2016 increased by 10.7% compared to previous year with Air Arabia carrying 8.46 million passengers. 。 Global network grew in 2016 to reach 122 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. $1,500 Net Profits (AED) 2005-2015 Margin (AED MM) 566 600 35% 530 29% 510 509 500 25% 45 30% 424 435 369 25% 400 310 20% 274 15% 300 14% 14% 14% 13% 15% 200 15% 15% 10% 101 11% 100 5% 0% 2006 2008 2010 2012 2014 2016#14Q3 2017 。 Air Arabia continued its positive growth during the quarter: 。 Passengers grew by 2.6% The quarter saw an addition of 2 new routes to the network out of 5 hubs. 。 Total routes by end of the quarter stood at 132 o Yield margin pressure continues to exist, yet vigorous cost control and operational efficiency programs also continue. o The industry's trading conditions continue to remain challenging. • Total Fleet stood at 49, with one new Aircraft joining the fleet during the quarter 12 new routes across the hubs were introduced during the first 9 month of 2017. 。 3 new planes joined the fleet during the same time. العربية للطيران airarabia.com#15Q3 2017 Quarterly Performance Financial Highlights (AED Millions) TOTAL REVENUE Q3' 2016 Q3' 2017 % Change 1124 1164 + 3.55% Operating Profit 226 294 + 30% Operating Profit Margin 20% 25% + 3.6 pts NET PROFIT 297 376 + 26.5% Operational Highlights NUMBER OF PAX CARRIED (Millions) 2.27 2.33 +2.6% AVERAGE LOAD FACTOR 80.6% 80.9% +0.3 pts العربية للطيران airarabia.com#169 months 2017 Quarterly Performance Financial Highlights (AED Millions) TOTAL REVENUE 9 Mths 2016 9 Mths 2017 % Change 2964 2880 -2.8% Operating Profit 460 503 + 9.3% Operating Profit Margin 15.5% 17.4% + 3.6 pts NET PROFIT 542 637 + 17.5% Operational Highlights NUMBER OF PAX CARRIED (Millions) AVERAGE LOAD FACTOR 6.37 6.48 +1.7% 80% 80.2% +0.2 pts العربية للطيران airarabia.com#17Annual Operating Statistics العربية للطيران airarabia.com (Figures in AED) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Number of Aircrafts 8 11 16 21 25 29 33 34 39 41 46 Average Aircraft 6.0 9.5 14.5 17.0 23.0 27.5 30.0 31.0 35.0 40.0 43.0 Destinations 32 37 44 45 65 69 82 90 100 116 116 122 Number of Pax 1.8 2.7 3.6 4.1 4.5 4.7 5.3 6.1 6.8 7.6 8.4 (Millions) RPK (Billions) 3.7 5.0 7.1 8.5 9.2 9.2 9.6 10.8 13.8 15.2 16.6 4.7 ASK (Billions) Average Load Factor 80% 86% 85% 80% 83% 82% 82% 5.8 8.3 10.5 11.0 11.7 13.0 15.2 17.0 18.8 20.5 80% 81% 79% 81%#18Fuel Hedging positions $51 60% 64% 73% 79% 36% 40% 27% $54 $67 $69 21% 2017 2018 2019 2020 Hedged Fuel ■Not Hedged Fuel العربية للطيران airarabia.com#19مشروع سحاب الخير Charity Cloud Project Corporate Social Responsibility Air Arabia has always give CSR very high consideration, and has been the passion of very member of Air Arabia. 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. Activities During the year: Staff visit and donation by Air Arabia Maroc staff to the SOS Children village New children's clinic New rehabilitation centre for woman New dialysis center Educational training Center Children's Garden renovation project in Sarajevo Buying new fishing boats Assisting widowed women by distributing necessities in Nador New charity cloud children's school in Sohag Morocco Bangladesh Srilanka Egypt Bangladesh Miss Bosnia and Herzegovina Sudan Morocco Egypt Egypt Staff participation in an awareness marathon for the57357 children cancer hospital. Water system renovation Medical awareness campaign School bags distribution Bosnia and Herzegovina Sudan Sultanate of Oman مشروع توزيع كسوة 2015 العربية شعبان SRAABAN العربية للطيران airarabia.com#20Rank Airline Latest Twelve Months (LTM) Most recent 12 month LTM Revenues [USDm] Basic Info 3rd on Top 50 Airlines 2016 according to Air Finance Journal Average age of fleet (years) Source: AeroTransport Data Bank Depreciation, Amortization and Rents)/Total EBITDAR (Eamings before Interest, Tax, Revenues (%) EBITDAR/Net Interest plus Rent (x) Fixed Charge Cover: Financial Rating 1 Ryanair 2 Spirit Airlines 31-Mar-16 $7,287 6.7 30.6% 11.9 66.1% 0.3 6 6 8 8 8 7.4 31-Mar-16 $2,186 5.1 36.9% 3.7 41.3% 1.9 7 7 7 B 7 7.2 3 Air Arabia 31-Mar-16 $1,086 2.3 26.9% 22.2 48.0% 1.9 8 5 8 8 7 7.1 4 Alaska Air Group 31-Mar-16 $5,676 9.0 32.1% 19.0 27.6% 0.0 5 6 8 6 8 6.8 5 Allegiant Travel Company 31-Mar-16 $1,282 22.2 37.8% 18.3 26.8% 0.7 1 7 8 6 8 6.8 6 WestJet 31-Mar-16 $3,074 6.6 24.196 4.7 35.4% 1.5 6 4 8 8 7 6.7 7 Japan Airlines 31-Mar-16 $12,474 9.1 24.0% 13.6 31.5% -0.4 5 4 8 7 8 6.6 8 Air New Zealand 31-Dec-15 $3,627 8.0 26.8% 6.1 26.8% 1.9 6 5 8 6 7 6.5 9 Hawaiian Airlines 31-Mar-16 $2,328 9.9 28.0% 4.0 28.7% 1.5 5 5 8 6 7 6.4 10 Wizz Air 31-Mar-16 $1,592 3.9 30.8% 2.4 45.2% 1.8 7 6 4 8 7 6.3 11 Icelandair 31-Mar-16 $1,164 20.9 21.0% 9.0 25.9% -0.2 2 4 8 6 8 6.1 12 Southwest Airlines 31-Mar-16 $20,060 12.0 26.0% 17.0 17.9% 0.3 4 5 8 4 8 6.1 13 easyJet 31-Mar-16 $6,799 6.2 19.7% 7.7 22.5% 0.6 6 3 8 5 8 6.0 Liquidity as % of Revenue Adjusted Net Debt/EBITDAR (x) Average age of fleet score EBITDAR Margin score Fixed Charge Cover score Liquidity score Leverage score Financial Rating - LTM Score for most recent 12 month (LTM) period +✶✶✶↓↓↓ Movement in last twelve months العربية للطيران airarabia.com#21Disclaimer 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.#22Contact Us For full financials and further information: investor-relations.airarabia.com Tel: +971.6.5088977 Email: [email protected] العربية للطيران airarabia.com