#1Kenya Airways 00000001 The Pride of Africa 2022 FULL YEAR RESULTS INVESTOR BRIEFING DREAMLINER R Kenya Airways#2Overview of Global Aviation Ⓡ Kenya Airways to Priste of Africa#3Kenya Airways Contribution JOBS 24,000 Direct & indirect jobs Direct employment by KQ is 4,000 jobs, over 20,000 indirect jobs. 70B KSH Forex contribution 60% of KQ's turnover is in forex In FY2022. 250B KSH Tourism economic recovery In 2022, Kenya recorded 1.48 million tourist arrivals. 70% used air transport with KQ contributing the lions share. 30,000 Tons Horticulture, Meat & Garments Export of fresh fruits, vegetables, meat products, fish, & seafood to the Middle East and Europe. And tropical fish and garments to USA. 3.7m International & domestic air traffic In 2022 KQ carried over 3.7 million people & ferried over 65,000 tonnes of cargo. 6.8B KSH Direct tax contribution KQ contributes tax payments through passenger and cargo services & additional services offered through the airline. R Kenya Airways#4Global Aviation Performance Air travel may recover more slowly than most of economy Global RPKs recover 2019 levels in 2023, 2 years behind GDP recovery Index, 100 in 2019 120 110 100 90 80 70 60 50 Global GDP and global RPKs, indexed to equal 100 in 2019 Global GDP Global RPKs Current baseline 2019 level USD billion Industry revenue is rising With cargo revenue moderating but higher than in 2019 900 000 Global airlines revenue, USD billion 2021: 60% of 2019 2022 2023 87% of 2010 90% of 2019 700 600 500 400 300- 200 100 D 2015 2016 2017 2018 2019 2020 Passenger revenue Cargo revenue 2021 2022 2023 40 2016 2017 2018 2019 2020 2021 2022 2023 IATA Source ATA/Tourism Economics, Air Passenger Forecasts April 2020 Source: LATA Economics JATA Pent-up demand for air travel has not been sensitive to slowing growth, nor to high inflation. Cargo revenue remained significantly above 2019 levels in 2022. This is starting to reverse as passenger traffic recovers R Kenya Airways The Pride of Agin#5Global Economic Environment Fuel Price USD per Barrel 123 117 113 112 105 100 97 93 90 91 87 84 81 81 75 73 74 74 71 69 65 65 62 55 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2021 2022 Volatility of global fuel prices 84 81 79 77 76 72 69 67 USD - KES 89 88 86 85 126 118 110 106 103 101 101-102 99 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Appreciation of USD against KES R Kenya Airways The Duke of A#6Business Updates ® Kenya Airways#7Network Growth Network frequencies grew 27% Mumbai 3x to 6x weekly Mauritius Kigali 3x to 7x weekly 5x to 11x weekly Accra-Freetown 3x to 4x weekly YRTLE AVENUE NMONR Accra-Monrovia 2x to 3x weekly London (UK) 7x to 14x weekly Guangzhou 1x to 2x weekly Amsterdam 4x to 5x weekly Paris 5x to 7x weekly Johannesburg 21x to 24x weekly Antananarivo 7x to 9x weekly Zanzibar 7x to 14x weekly R Kenya Airways#8New Routings Fly non-stop from Mombasa to Dubai 4x weekly NAIROBI ACCRA DAKAR R Kenya Airways#9Partnerships SOUTH AFRICAN AIRWAYS AWA AFRICA WORLD AIRLINES AIRFRANCE/ AIR AUSTRAL AIR BOTSWANA jetBlue ▲ DELTA flydubai. virgin atlantic BRITISH AIRWAYS Virgin الخطوط الجوية العربية السعودية SAUDI ARAbian AirliNES KLM R Kenya Airways#10Cargo Performance 3% growth in cargo tonnage FY 2022 21,000 tonnes - General Cargo products from the world to Africa R Kenya Airways CARGO 000000000000000 BOEING 737-300 R 16,000 tonnes - Fruits and Vegetables to Europe & the Middle East 14,000 tonnes - High Tech electronics, machinery, pharmaceuticals, and fashion goods from US, Europe and Asia to Africa. 9,000 tonnes - Fresh Meat products, fish, and seafood to the Middle East and Europe 5,000 tonnes - Garments, Flowers, and tropical fish to the USA#11ི FAHARI AVIATION Achievements Drone cage & Drone Club. Training school setup & Agriculture application KenHa road Mapping A first in the region student training on-going R Kenya Airways#12• Sport partnerships • WRC Safari Rally • Magical Kenya Open • FIA Rally Stars. MotorSport Ford Rally team, Great small Castrol Castr pulse KENYA HI BROCADOOR R Kenya Airways ScheyCature R Magical Kenya Open WRC#13Reaching new heights, thanks to you Kenya Airways has been awarded 4 World Travel Awards, all because of you. Africa's Leading Airline 2022 Africa's Leading Airline Brand 2022 Africa's Leading Inflight Magazine 2022 Africa's Leading Airline - Business Class 2022#14Business Focus Ⓡ Kenya Airways#15Operational Highlights Available Seat KMs Passenger Numbers FY 2022 FY 2021 10,303 mil 5,900 mil FY 2022 FY 2021 3.7 mil 2.2 mil Var % vs 2021 +75% Cargo Volumes (Tonnes) FY 2022 FY 2021 65,955 63,726 Var % vs 2021 +3% Cabin Factor (%) FY 2022 FY 2021 74% 61% Var % vs 2021 +68% LE Var % vs 2021 +13pts Block Hours FY 2022 FY 2021 117,732 84,666 Var % vs 2021 +39% Turnover (Ksh "000) FY 2022 FY 2021 116,787 70,221 Var % vs 2021 +66% Kenya Airways#16Financial Highlights Kenya Airways The Duke of#17Turn Over Trend 140 000 140,000 120,000 100,000 80,000 70,221 60,000 40,000 20,000 Revenue KShs Mil 120 000 100 000 80 000 60 000 40 000 20 000 0 2017 2018 2019 2020 2021 2022 3,519 116,787 42,313 464 270 2021 Passengers Freight & Mail Handling Others 2022 Kenya Airways The pride of Africa#18Cost Trend 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 86,410 5,849 12,416 1,007 (85) 26,191 Total Cost KShs Mil 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 0 2017 2018 2019 2020 2021 2022 23,313 155,102 20,000 2021 Fuel & Oil Other DOCS Fleet Ownership Employee Costs Other Overheads Net finance Costs 2022 Kenya Airways The pride of Africa#19Profit Trend 40,000 30,000 20,000 10,000 (10,000) (16,027) (20,000) (30,000) (40,000) 46,566 (26,191) Loss Before Tax KShs Mil 0 - 5000 2017 2018 2019 2020 2021 2022 - 10 000 - 15 000 - 20 000 - 25 000 - 30 000 - 35 000 - 40 000 - 45 000 (12,416) (1,007) (5,764) (23,476) (38,315) (50,000) 2021 Revenue Fuel Other DOCS Fleet Ownership Overheads Financing Costs 2022 Kenya Airways The pride of Africa#20Summary of Consolidated Income Statement 2022 KShs. Mil 2021 KShs. Mil YOY Change Total Income 116,787 70,221 66% Total Operating Costs (122,403) (77,024) (59)% Operating Loss (5,616) (6,803) 17% Operating Margin % (4.8) (9.7) Other costs (32,893) (9,387) (250)% Interest income 194 162 (19)% Loss before Tax (38,315) (16,028) (139)% Taxation 51 150 (66)% Net loss after tax (38,265) (15,878) (141)% Net Margin % (32.8) (22.6) Kenya Airways The pride of Africa#21Customer Focus Areas Å Å Customer Excellence Accessibility Phase 1 telephony upgrade complete. Resourcing improvement ongoing. Accessibility improve to 80% from lows of 40% Check-in & Boarding Experience Ongoing improvements in the check-in boarding and lounge experience. ☑= On Time Performance Improvements on efficiencies around arrival and departures ongoing. R Kenya Airways#22Innovation KQ corporate intrapreneurship program • Employee training on innovation fundamentals. • 5 projects completed to improve customer & employee experience. Sustainability services • Launch of upcycling studio KQ Start-ups collaboration program • Incubator services for 8 start-ups. Myldea portal • An idea pipeline management for KQ staff. R Fahari Innovation Hub Pushing Boundaries R Kenya Airways The Date of Agin#23Looking Ahead Global Economic Environment Strong USD Volatile Fuel Prices R Kenya Airways The Pride of Afric Air travel traffic to surpass 2019 levels in 2023. Cost reduction initiatives Partnership & diversification Kenya Airways#24Journey to Profitability Cost Optimization: Project Kifaru 2022 Operating Loss in 2022 Ksh 5.6B Enhanced KQ Cargo Customer Capacity Operation Excellence Service increase Offering 2023 Operating Profit 2024 Ⓡ Kenya Airways The Duke of An#25Thank You Kenya Airways