KENYA AIRWAYS LIMITED. SUMMARY UNAUDITED GROUP RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2014 ‘SUMMARY CONSOLIDATED INCOME STATEMENT Six Months to Six Months to] 30Sep 2014 30 Sep 2013] Kshs M KShe ml Irovene 36 788 3a 338] Direct costs (aaa) (37288) Fleet onnership costs, (7.758) (6,954) loverheads (11,908) (9.380) 2,590) [Operating (loss) / profit 1.739] (Operating margin (2) 32 Finance costs 21a] IFinance income 48 428 JRealised gain on fuel derivatives, 681 216] lother costs (e578) a1) |(Loss) [profit bafore income tax (2.4997 Baa income tax credit (expense) 2048 (184) [Coss aftertax (10,484) 34] profit margin %e) Taam) orm (Loss) /profit per share (Shs) (337) 0.26|SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 30Sep 2014 30Sep 2013 KShs Kshs M (Coss)7 profit forthe period (i0-aBiy Bey lother comprehensive incomel(oss) Loss on hedged exchange differences on borrowings (2.458) 525} (Loss) / gain on hedged fuel contracts (1488) 165] Deferred taxation on hedges 4,183, 108] [Total other comprehensive Toss 761) (252) [Total comprehensive (lossy/income for the period (13,242) 134]‘SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‘30 Sep 201434 war 7074) Kshs M Shs ml lassers Non-curent [propery plant anc equipment 40,082 25380 1.367 1610 237 1238 12258, 27/505 2651 270 70,392 T9021 lentoriee 20% [Trade ane enor receivables 13,705, |currentincome tax recoverable 1216 1035 s42i8 29,035 {roTaL ASSETS 340,657 lqurry ano LABETES lEquty atvibutabie to owners 20.186 INon-denvoting interest. “3 FTotal equity a8 INon = error aS Isorrowings e5,024 10,120 Jooterod taxabay 118 8.084 [Detered income 4301 1.468 us derivatives ‘2 : B53a1 sere [Current abies [Sales in advance of cage 11300 10,706 Jrinance lease ablations - sz Fuel dervatives 296 : Irae ana other payabios 18012 13,052 looove, aoe? 36.002 69,905 63,756 763,383, 718,857 [TOTAL EQUITY AND LIABILTHES‘SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY on eonizaling ‘Share capital Shae premium Reserves Intorest Total Equi KStsM __KShsM__KShsM_KShs Mt Kshs [Fr tho ix month period ended 30 Sp 2013 lc ag 2013| 2 asm 15008, 31200 {comprehensive incomeliss) Protoss) fo the paid 38 o wm Other comprehensive bss tet [Total comprehensive income : 7 36 @ 12 (a 30 September 2013 14tt agro 15120 aie or the six month period ended 3 Sep 2014 ls at Ap 2014 a8 aso 20m a m2 {comprehensive incomeloss) Los forthe prod : (10a) (4st [oer comprenensiv bss (2761 761 [Tota eomprehensive loss 5 (18.210) @_(sz1 otal vansactons with omers 5 : 5 (30 September 2018 782 ag70__6 4115007‘SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS BSep4 —_30-Sop-t3 Shs Kshs (Cash trom operating actives Cash great tom epratons oi) 88, eres ceed 18 88 less (1703 (12%4) coe xpi 8] [Net cash generated rom used) operating scien 2) i392 (Cash ove fom vesting eves Puce of opery lata enipmert (e252) or) Proceeds of pote propery and exist 3 Pacosectinngbeassess @ : [Deas ends eves 16381 : epost paid ater purchases - (2601} Deferederpendie (1008) a [Detyed sett comersiton 2508, - Net ash sed in iavestig aces (ess) (0 {cashflows rom fhancing atvites [Borowngs reseed ts ‘6761 [Renamer cfboroings @iom a epsymer offence nce eigatons (5 105] Net eash generated om nancing seve ea Toate Ietinreasein cash and cash eauivaonts (rm ___(1389 (cash and cash equi at begining of period 218 14380 [Gechandeash equivalents tend ofperiod 4a 340]COMMENTARY ‘summary Kenya Airways contued with its feet enowel plan and by the close ofthe st al year ended 30" Seplomber 2014, had recoved ve (6) af fist st ofa () unt ofthe 787 Oren ect ino the network. Tho aiine sso fook delivery ofthe second and thrd Boog 777-30 aera introducing ‘an adlonal 800 seats no tho operation whe rounding fr felum the entre Bong 767 Meet of © iin the period, te ane also commenced operations ino Abuja @ second poitin Nigosa, muh Tne wth tho carers focus In connecting Aiea fo the rest ofthe World Furr. Ker Away, launched Jamboet at the beginning oft period, alow coet operator and wholy comed aubssSary. “The main purpose of ta low cost carr io sinulte domeste travel amangat he growing mice aes mn Kenya, Kenya Aways howaver operated under a vary chalenging business environment inthe fest haf ofthe year. This fs continuation of the Wend from last year fofowing the fre athe hit spor KIA, and {gional nsecurly leading to reduced travel into Kary and hub avoidance. This tend continued into {he fist half of te year leaing to vavel advises being lesed by vanous counties, These had @ ogatve impact on male traf fous eo the ogon. Tho stun has been fre aggravated bythe Eola pandemic, wich ed tote suspension of ou Fights to Seva Leone and Libor August 2044 ‘The tunover acioved at KShs 86.768m indicates 9 KShs 2.450m (4.8%) improvenent compared to por year, but not commensurate wth tho capac increase ae a raul Cf the above events, Dect Dperating costs rose to Khe 42,17im ropresenting 8 13% ineease on prior yeer many rom the ‘tational capacity. Kenya Aways posted an operating lose of Ss 8 047m thn he 6 month porlod ‘compared 19 KSha 7739 pra ecard nthe same period ae yea, Loss before tax at KShs 12.400" compared to @ prior year prot of KShe 548 main includes an impainvont loss of KShs 540m on wit down of sera approved for sla by the Bear, REVENUE Passenger ‘The ane putinto te market a capacy of 8.183 millon measured in Avalable Seat Kometres (ASIC) representing @ 152% growth againet prior year. THo growth In uplake of thi caps meaauted Ih Revenue Passenger Klortes (RPK) at 6 236 malo, was higher than pris Yoorby 8.2% The ld ‘achieved per RPK fol blow pier year by 5.6%. The toll Pastonger related reves including Excoss Baggage for the pariod at KShe 48.1 billon improved by KShe 1. bllon (19%) compared 1s poor year onthe back of 215% expansion n capac. CCapacty offered into Europe grew by 15.2% ven bythe invodustion of the new 400 eat 8777-300 ‘operations to Amsterdam in place ofthe 8777-200, as wel as the commencement of the Pats ‘peration withthe Oreaminer wih 18 mare seals than the 6767-200, Capacity ine the Mido East dana Far East regions combined grew by 20% tom fe replacement of he od fe bythe now and largr foto operate most of the destination, ‘whi the Aican marketplace, capacty grew by 11% may from ineeased wide badly operations on ‘our key feeder routes to Kinshasa, Lagos, Lusaka, Liongwe, Harare and oh Dar-es-Salaam, Kgal and Bujumbura. Pola insabty Kept Cave et of the eer during the pero under review, wile capacty Ito South Sudan reduced by 113. In response tothe, Ebola Bandeic in parts of West Aiea, Kenye Aways suspended operations ino Menrva, Uberia ahd Frostoun, Sora Leone resulting na capaci rection o 20% compared t pet yea” ‘The domestc markt registered a 42% growth in capacty fom tha commencement of Jambojet ‘operations. The Group Inrodueed 9 addonal daly equencies to Membasa and 2 ena fights ito ano {Cargo tonnage uplited within tho six months grew by 8.4% flowing Ineeasod sales eft, and the ralet of eightar destination wihin Aten,‘rest Operating and Flos Costs Dect operating costs creased to KShe 42,17Im a 13% inceaso on the back of a 18% capaciy ‘gown Fuel coe emsinod the single largest diver at 35% of oa peraing costs and grew by 17% Egat crven by tho oxpansion in epetatons. loc owmership cst moreaaes reat the adhtionl ‘vera acquired inthe peed ‘overheads ‘Gveeads at KShs 11,800" incoased by KShs 2.528m compared to prior year nosy diven by Ireroasod manpower and marketing cost aimed at supporing the renewed Ne and expanded two ‘Exchange rate During the period under review, the Kenya Sting weakened sighty against the US Dots with the sverage exchange rate at Kh 87.6 per US Oolar compare to prio year everoge KShs 8S 52 pet US Dota. ‘guTLOOK Going foward, the prospects for our business re postive dion by the folowing factor, amongst ‘here + Deployment of now fel efet feet 1 Opening of Terminal 14 st JIA dedicates to Kenya Airways {Now lounges atthe hu feng superior eustomer experience {Hub redesign with improved infasbucture athe sport ‘The Board has retained financial adso to reviow and propo appropriate afnancig options, PROFIT WARNING Given the factors and the concems stated above, second hal yar rsuls of Kena Always aro nly fo reverse the fl impact ofthe fst half oss and aan resis close too tat yoa's eves Its resonable at this tine to ancpata earings forthe tail yest 2044/16 that wil be ower than the provious year’s by al east 25%, “The Board of Directors has taken adequate measures to guard agains further erosion of sharcholser value and remains opinisic thatthe revamped customer experince fered by various Investments ‘nd thar latives by Heanagement wil tum te tine fo prota, ‘The Board takes this opportunity to thank alls sharsholdes, customers, staf, menagement, the Goveenment and suppers for thar dedeatadconibuton to the grow of to atin, Boeke reo eer Sea s2Nov 2016