Emirates Report

7/31/2019 Emirates Report

1/23

Akhtar Ali

Bilal Hassan

Maria Sarker

Krushangi KatkoriaRussell Mendonca


2/23

Profitability Emirates ended the financial year with an operating profit of

AED 3,565 million indicating a 56.6% rise from the previous

year.

Emirates profit attributable to the Owner for 2009-10 had

significantly improved to AED 3538 million from AED 686

million in the previous year.

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2000

3000

4000

5000

6000

2006-07 2007-08 2008-09 2009-10

Profit Attributable to the Owner in

AED millions

0

500

1000

1500

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5000

2006-07 2007-08 2008-09 2009-10

Operating profit in AED

millions


3/23

Revenue Revenue generated by the end of the financial year remained

stable at AED 42,477 million in comparison to AED 42,459

million in the previous year reflecting lower passenger and

cargo yields offset by increased traffic.

Passenger & Cargo revenue accounted for 94.6% of revenue.


4/23

Emirates profit margin recovered from 1.6% in the previous

year to 8.1% in 2009-2010

0

2

4

6

8

10

12

14

2006-07 2007-08 2008-09 2009-2010

Profitability Margin in %

Profit Margin


5/23

Expenditure

Emirates operating costs during the year 2009-2010 was AED 39,890

million, which was 2.7% better than the previous year.

The reason being due to a reduced jet fuel bill.

Employee CostGrew by 8.3% which compares with

16.9% growth in capacity.

Depreciation charge

Higher depreciation charge of 34.6%

on account of an increase in airline

fleet assets.

Jet fuel costs

AED 11.908 million comprised 29.9%

of operating cost.


6/23

Traffic and Capacity

Aircraft departures increased by 12.4%

Eight A380 superjumbo aircraft in the fleet at 31sr March 2010 arevery popular with returning load and seat factors well above thenetwork coverage.

A380 serves 8 destinations, 5 of which were added in the currentfinancial year.


7/23

Cash position

Emirates cashgenerated fromoperating activitiesat AED 8,328 million,

highest level everreached.

Operating cashmargin at 19.2% in

2009-2010 is 7.6%points better thanthe year 2008-2009.


8/23

Net cash used in investing activities at AED 577 million is

mainly of account of the outflows of AED 3,416 on property,

plant and equipment.

Net amount of AED 2,982 million used in financing activities

on the outflows of settling borrowings and lease liabilities

including financing cost as well as dividends to the

ownership.


9/23

Cash profit from

operations for the year

31st March 2010 wasAED 10638 million, up

28.4% over last year

which was the highest

level ever achieved.

Cash assets were up byAED 3,143 to AED 10,511

million at 31 March 2010.

Represents a healthycash asset to revenueratio of 7.2 percentagepoints better than theyear 2008-2009.


10/23

Capital Expenditure

During the year 2008-2009, Emirates capitalexpenditure stood atAED 8053 million.

Primary capitalexpenditures comprised82.9% of the total capitalexpenditure.

Secondary capitalexpenditure amountedto AED 1378 million.


11/23

Fleet acquisition

Emirates took 15

aircrafts.

Largest B777

operator, when it

took delivery of

its 78th B777

aircraft.

11 Boeing

10 B777-300ER

B777-200LR

4 Airbus

4 A380


12/23

Financing

Raised a total of AED 8776 million.

Eight B777-300ER aircraft funded through finance leases.

First ever financing of Boeing aircraft was through capital markets

guaranteed by the US Export-Import bank on finance lease.

It raised AED 1520 million to finance 3 Boeing 777-300ERs.

Out of the 4 Airbus A380, 2 were financed as finance leases and 2

through sale and lease back transaction using the German KGmarket.

Closed 2 sale and leaseback transactions for 8 spare engines and 2B777-200 classic aircraft.


13/23

DebtTotal borrowing &

lease liabilities:

AED 19,605, up AED

3,093 (18.7%) from

the previous year.

Ratio of Borrowings &

lease liabilities to totalequity - 112.2%

(2009/10) compared to

106% (2008/9).

Net Debt Equity Ratio improved to 52%when compared with 58.7% of the previous

year.

After capitalizing aircraft operating leases

the same ratio 158.5%(2009/10)

Reason

Borrowings offset

by cash assets.


14/23

Currency & Interest Rate Risk

Borrowings/Lease liabilities(net of cash)

83% fixed interest rate 17% floating interest rates


15/23

1% point increase in interest rates would increase the interest

charges(net of interest income) by AED 74 million the next

financial year.

2009/10 2.5%

2008/09 3.5%Interest rate on borrowings/lease liabilities

Emirates managed its currency exposure by usage of :

Prudent hedging solutions

Currency swaps

Options & natural hedges

Pound sterling 14%

Euro 24%

Australian Dollar 29%

Newzealand Dollar 81%

Japanese Yen 91%

Hedging Coverage

as of 31st March

2010.


16/23

Employee strength and productivity The Average number of

employees in the airline grew by

649 (2.3%) to 28,686 despite the16.9% growth in capacity. The

increase in airline employee

numbers were mainly in the

cabin crew and flight deck

categories on account of 15 new

aircraft added during the year.

Employee productivity for the

airline measured in terms of

revenue per employee remained

relatively flat at AED 1.5 million (

2008-09: AED 1.5 million)


17/23

Capacity per airline

employee was sharply upby 14.3% or ATKM 994thousand compared withATKM 870 thousand in2008-09.

Similarly, load carried perairline employee alsoincreased by 17.5% toRTKM 665 thousand from

RTKM 566 thousand inthe previous year.


18/23

Fleet Information

Emirates airlines has anadditional 15 aircraftsbringing the total no. ofaircrafts to 142 compared

to previous years 127.

Emirates operates one of the

youngest fleet in the industrywith an average age of 69 months

compared with an industry

average of 190 months.


19/23


20/23

Sports Sponsorships


21/23

Emirates presents representativesfrom 40 travel agencies in Dubai &the Northern Emirates with

contracts granting access to travelsolutions from EmQuest andSabre.

Emirates launches the BestPrice marketing campaign in the

UAE.

Emirates wins the best in-flightentertainment at the world airlineawards 2009 for the 5thconsecutive year.

Emirates simplifies its baggagepolicy and offers an additional10kg to customers traveling in allcabins.

Emirates begins A380 operationsto Bangkok & Toronto - Theaviation worlds first superjumbocommercial services to both cities.

Emirates becomes the first airlineto order the HoneywellSmartRunway & SmartLandingsafety systems which give pilotsvocal & visual alerts about the

stability of an aircraft on approach& landing.

Emirates launches a fuel savinginitiative designed to saveAED35million (US$9.5million) ayear & reduce annual carbon

emissions by 43,250tonnes.

Mobile Emirates.com goes liveallowing customers to access thewebsite through mobile phones orPDA.

Highlights for the year 2009-2010


22/23

The latest Emirates loungeopens in Dusseldorf.

Emirates begins flights toDurban International Airport,becoming the only carrierflying international routes ondaily basis out of the SouthAfrican city.

Emirates half year profits ofAED 752 million are 165% upon the same period theprevious year, and buck theworldwide industry trend.

The millionth Emiratespassenger uses their ownmobile phone on an aircraftequipped with theAeroMobile system.

Both Emirates and AirbusA380 full flight simulatorsare certified to Level D-the

highest qualification grantedby the UK civil AviationAuthority.

Emirates teams up withVirgin Blue to launch the

Emirates Visit AustraliaPass.

Emirates became the worldslargest operator of B777s

with the delivery of its 78th

B777 aircraft.

The latest Emirates loungeopens in Dusseldorf.


23/23

Emirates Report

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