#1Classification: Internal AirArabia RESULTS PRESENTATION Q4/FY 2020 AirArabia...... العربية للطيران .#2FY 2020 IN FOCUS AirArabia#3STRATEGIC SUMMARY - FY 2020 2020 started with strong performance across board. Impact of covid-19 pandemic started to affect the global aviation industry mid-February. The covid-19 impact on aviation was and remains global, fast and material. By March airlines around the world, including MENA region, had to face closed skies, travel restrictions, airport closures and sudden drop in travel demand. Operations during the Q2 relied on repatriation, charter, and cargo flights while Q3 & Q4 witnessed a gradual resumption of scheduled operations across a limited number of routes. A year later, the global aviation industry continues to deal with this uncertainty. Notwithstanding the continuous impact of covid-19, Air Arabia still managed to post 2 profitable quarters (Q1 & Q4) which helped reduce the expected net loss for the full year. Since the start of the pandemic, Air Arabia reacted quickly and took all possible measures to protect customers & crew while still operating where possible. AirArabia#4STRATEGIC SUMMARY - FY 2020 Management continues to take measures to control fixed & running costs as well as enhance the cash position to support business continuity. Air Arabia was able to launch operation of Air Arabia Abu Dhabi in Q3, currently serving 09 routes from Abu Dhabi International Airport. Air Arabia was able to add a total of 14 new routes to its global network in 2020 from its operating hubs in the UAE, Morocco and Egypt. Air Arabia ended the year serving around 45% of previous year capacity across its network. Limited capacity remain as per airport regulatory approvals due to COVID-19 implications. We remain hopeful that the vaccine roll out will help battle this pandemic, taking into consideration that 2021 continues to be a challenging year for the world economy including aviation. Air Arabia remains focused on taking measures to preserve liquidity, gradually resume operations where possible, and keeping business continuity as the prime focus. AirArabia#5FINANCIAL REVIEW Q4/FY 2020 AirArabia#6KEY PERFORMANCE - Q4 2020 (AED Millions) Q4/2020 Q4/2019 Change % Pax (m) 0.75 2.3 -1.55 -67% LF % 77% 81% -5% -6% Revenue (m) 1,851 1,147 -611 -53% Operating Profit/ (Loss) 28 190 -162 -85% Operating Profit Margin % 5.2% 16.6% -11.3% Net Profit/ (Loss) 20 199 -179 -90% * Pax (all hubs) 1.2 m 2.9 m AirArabia#7KEY PERFORMANCE – FY 2020 (AED Millions) FY/2020 FY/2019 Change % Pax (m) 2.91 9.43 -6.52 -96% LF % 79% 83% -4% -4% Revenue (m) 1,851 4,758 -2,2907 -61% Operating Profit/ (Loss) (180) 932 -1,112 -119% Operating Profit Margin % -9.7% 19.6% -29.3% Net Profit/ (Loss) (192) 1,008 -1,200 -119% * Pax all hubs (m) 4.3 m 12.1 m AirArabia#8Liquidity YTD Cash & Bank Retained Earnings Amount in AED'000 Amount in AED'000 Cash & Bank 4,000,000 3,200,000 2,400,000 1,600,000 800,000 800,000 600,000 400,000 200,000 2016 2017 2018 2019 Q1-20 Q2-20 Q3-20 Q4-20 Retained Earnings (200,000) (400,000) (600,000) (800,000) 2016 2017 2018 2019 Q1-20 Q2-20 Q3-20 Q4-20 AirArabia#9FLEET STATUS Q4 2020 AirArabia#10CURRENT FLEET AirArabia GAIRBUS A320 العربية للطيران AirArabia AirArabia AirArabia GAIRBUS A321 العربية للطيران AirArabia AirArobia Airbus A320 ceo 52 Aircraft in service 39 Sharjah Hub 09 Morocco Hub 04 Egypt Hub Airbus A321 neo LR 5 Aircraft in service 1 more expected in 2021 AirArabia#11FUEL HEDGE STRATEGY Air Arabia fuel hedge strategy remain on short to medium term, with the sole objective of providing stability to operational cost. A fuel hedge committee meets regularly to determine the company's hedging position. Current fuel hedging status spreads from 2021 to 2024, at an average 45% of fuel requirement hedged, at an average price of $59. AirArabia#12OUTLOOK Continued covid-19 pandemic will have substantial impact on airlines 2021 performance. Covid-19 severe economic impact remains of global nature. Aviation recovery is of gradual nature. With vaccine roll out, we remain hopeful that gradual resumption of operation continues. Long term business continuity remains top priority. Current business decisions are made to help enhance cash position and control fixed & running costs. Long-term LCC fundamentals remain strong. The well being of the global aviation industry will play a crucial role in supporting economic recovery post COVID-19. AirArabia#13APPENDIX AirArabia#14Amsterdam London Cologne Prague Kyiv Brussels Paris Strasbourg Vienna Rennes Basel-Mulhouse Lyon Milan Venice Bordeaux Toulouse Turin Pisa Bologna Montpellier Barcelona Sarajevo Naples Palma de Madrid Mallorca Malaga Tangier Nador Fez CASABLANCA Marrakech Vols internes Catania Tunis Tangier Nador Rabat Fez Casablanca Marrakech Agadir Guelmim Moscow Tbilisi Trabzon Yerevan Baku Istanbul Almaty Bishkek Tashkent Antalya Erbil Mashhad Tehran Kabul Peshawar Beirut Islamabad Baghdad Amman Sialkot Najaf Lahore ALEXANDRIA O Quetta Al-Jouf Faisalabad Shiraz Cairo Multan Kuwait Tabouk Lar RAS AL KHAIMAH Assiut Sharm Ha'il Sohag El Sheikh Gassim Dammam Luxor Riyadh Bahrain Medinah Yanbu SHARJAH Sohar Muscat Karachi ABU DHABI Jeddah Taif Ahmedabad Delhi Jaipur Kathmandu Dhaka Chattogram Abha Salalah Gizan Khartoum Asmara Hargeisa Nagpur Mumbai Hyderabad Goa Bangalore Calicut Coimbatore Kochi Chennai Thiruvananthapuram Nairobi Colombo Kuala Lumpur AirArabia#15FLEET SIZE HISTORICAL YEARLY 60 60 57 55 50 53 50 46 40 41 39 34 30 33 29 25 20 21 16 10 11 8 5 0 3 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 AirArabia#16SEAT LOAD FACTOR HISTORICAL YEARLY 100 86 80 85 83 82 82 82 83 80 80 80 80 81 79 79 79 60 40 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 AirArabia#17REVENUE HISTORICAL YEARLY 5,000 4,000 3,000 2,000 1,000 749 1,283 IN (AED MM) 4,122 3,825 3,729 3,778 3,739 3,183 2,832 2,434 2,066 2,080 1,972 4,756 1,851 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 AirArabia#18NET PROFIT HISTORICAL YEARLY 1,250 1,000 750 500 250 IN (AED MM) 662 566 579 530 510 509 452 424 435 369 310 274 1,000 101 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 - 9M 2020 -192 *307 *2018 reported net profit absorbed AED307 million accumulated loss following the impairment decision taken in relation to the Group's full financial exposure to Abraaj Capital. AirArabia#19CORPORATE SOCIAL RESPONSIBILITY Air Arabia's award winning corporate social responsibility program "Charity Cloud' provides sustainable education and healthcare initiatives in underprivileged communities across the world. Charity Cloud built and operates over 15 schools and clinics in 12 countries and treats over 30,000 patient yearly and provides education for over 1,000 student every year. Charity Cloud Schools Sri Lanka India Nepal Turkey Kenya Egypt Charity Cloud Clinics Sudan Yemen Egypt Sri Lanka Bangladesh Morocco KHCO CO KHCO KHC KHCO الإمارات العربية المتحدة | العربية للطيران airarabia.com United Arab Emirates مشروع سحاب الخير Charity Cloud Project مدرسة سحاب الخير Cloud Charity School جمهورية كينيا Republic of Kenya 2017 41439 KHCO KHCO KHCO KHCO AirArabia#20AIR ARABIA GROUP COMPANIES AirArabia Engineering AirArabia Simulator الشارقة لخدمات الطيران Sharjah Aviation Services CENTRO Sharjah cozmo travel مقر العالم للسفريات Alpha Aviation Academy ISA Accelerate Your Growth Radisson BLU HOTELS & RESORTS alpha AirArabia#21CONTACT US Ð investor-relations.airarabia.com Ð +971 6 5088791 Ð [email protected] Ð www.airarabia.com AirArabia#22DISCLAIMER 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. AirArabia