Emirates 2013 — Interim / Quarterly Report 2010

Nov 1, 2010

Emirates Hits New High with Record Half Year Results

• AED 3.4 billion (US\$ 925 million) net profits, up 351 percent
• Significant business growth with 15.5 million passengers carried, up 17.3 percent
• Passenger seat factor at 81.2 percent, the highest ever for a first six month reporting period
• 62 new aircraft ordered to further drive airline's growth $\bullet$

Dubai, U.A.E. 1^st November 2010: Emirates produced a net profit of AED 3.4 billion (US\$ 925 million), for the first six months of its current financial year ending 30th September 2010. This represents an outstanding 351.2 percent increase compared to AED 752 million (US\$ 205 million), for the same period in 2009.

"The results for the first half of the 2010-11 financial year are incredibly robust, and reflect Emirates' success in growing customer demand, supported by investment in new aircraft, products and customer service. We continue to invest our profits in growing the business and our healthy financial position enables us to successfully meet all of our financial commitments and raise financing for future aircraft deliveries. Our strong position today is reflective of our ability to adapt, returning us to a vigorous period of growth. With 62 new state-of-the-art aircraft ordered in the first half, we remain well positioned to capitalise on this growth," said HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

Highlighting a positive shift in the aviation sector, Emirates airline has seen a marked increase in passenger traffic, carrying 15.5 million passengers and recording a strong passenger seat factor at 81.2 percent, the highest ever for a first six month reporting period. Premium class seat factors have also risen by 2.6 percentage points, reflecting an encouraging change in the global economic outlook.

Emirates SkyCargo has also seen a strong half year performance across the network, posting an increase in revenue of 48.4 percent to AED 4.4 billion, with cargo tonnage up by 23.7 percent to 897 thousand tonnes, compared with 725 thousand tonnes for the same period last year. SkyCargo continues to post steady revenue growth contributing around 17.8 percent of the airline's transport revenue.

Emirates' cash balances grew to AED 12.5 billion (US\$ 3.4 billion) at the end of September, a significant improvement of 18.5 percent or AED 1.9 billion (US\$ 529 million) when compared to 31st March 2010. This increase in the cash balance was achieved after settling capital outflows of AED 2.4 billion, primarily towards aircraft predelivery payment and other aircraft assets. During the first half, the airline has also successfully raised financing of AED 4.6 billion (US\$ 1.3 billion). Fuel continues to be the most significant expenditure for the airline with operating costs up 22.6 percent to AED 23 billion (US\$ 6.3 billion).

"Investing in the future and adapting our operations when required is an integral part of our corporate strategy. This flexibility affords us the option of increasing passenger and cargo services on high demand sectors. By following these positive spikes in regional economies we have been able to maximize the use of our fleet to further stimulate revenue," added Sheikh Ahmed.

Emirates' revenue, including other operating income, of AED 26.4 billion (US\$ 7.2 billion) for the half-year represented a strong growth of 35.5 percent compared to revenue of AED 19.5 billion (US\$ 5.3 billion) during the same period last year.

Fueling growth in the aviation and tourism industry globally, Emirates has launched six new destinations since April this year - Amsterdam, Prague, Madrid, Dakar (passenger operations) in addition to Almaty and Bagram (freighter only operations). Existing markets have also been given a boost with increased frequencies and capacity - through larger aircraft.

Building on its current A380 network Emirates launched two new A380 destinations, Manchester and Beijing. The A380 continues to be popular in all destinations that it serves and has become the airline's flagship in terms of passenger comfort, innovation, operating and environmental efficiency and revenue generation.

Emirates continued to invest heavily in its product in the first half with the delivery of six new wide-body aircraft, five Airbus A380s and one Boeing 777 and the opening of a new dedicated lounge at Shanghai Pudong International Airport. A further two new aircraft are scheduled to be delivered before the end of the financial year (31 March 2011).

Capacity measured in Available Seat Kilometres (ASKM), grew by 13.9 percent, whilst passenger traffic carried measured in Revenue Passenger Kilometres (RPKM) was up 19.4 percent.

-ENDS-

Media Contact: Anna Garcia, Emirates Corporate Communications. Tel: (+9714) 708 5266, Mob: (+97150) 9115447. E-mail: anna.garcia@emirates.com; visit: www.ekgroup.com/mediacentre.

Consolidated financial statements
for the six months ended 30 September 2010 (unaudited) Emirates

Emirates
Consolidated income statement for the six months ended 30 September 2010 (unaudited)

	Sep 2010 AED m	Sep 2009 AED m
Revenue	25,698	18,990
Other operating income	672	534
Operating costs	(23,008)	(18,768)
Operating profit	3,439	992
Other gains and losses	$\widehat{E}$	82
Finance income	848	158
Finance costs	(551)	(612)
Share of results in associated companies and joint ventures	41	88
Profit before income tax	3,473	813
Income tax expense	(42)	22)
Profit for the period	3,431	982
Profit attributable to non-controlling interests	38	34
Profit attributable to Emirates' Owner	3,393	757

Consolidated statement of comprehensive income

for the six months ended 30 September 2010 (unaudited)

Profit for the period	3,431	982
Currency translation differences		101
Cash flow hedges		(168)
Other comprehensive income	(654)	(284)
Total comprehensive income for the period	2,777	203
Total comprehensive income attributable to non-controlling interests	38	34
Total comprehensive income attributable to Emirates' Owner	2,739	468

Comparative figures have been reclassified to conform with the current period's presentation.

Emirates
Consolidated statement of financial position as at 30 September 2010 (unaudited)

	Sep 2010 AED m	Mar 2010 AED m
ASSETS
Non-current assets
Property, plant and equipment	37,782	33,753
Intangible assets	616	225
Investments in associated companies and joint
ventures	464	181
Advance lease rentals	802	233
Loans and other receivables	1,554	1,432
Derivative financial instruments	47	94
Current assets	40,974	36,870
Inventories	1,255	1,084
Trade and other receivables	908'9	7,008
Derivative financial instruments		$\overline{4}$
Short term bank deposits	6,852	1,176
Cash and cash equivalents	109'9	9,335
	20,513	18,677
Total assets	184.187	55.547

Comparative figures have been reclassified to conform with the current period's presentation.

	Sep 2010 AED m	Mar 2010 AED m
EQUITY AND LIABILITIES
Capital and reserves
Capital	901	108
Retained earnings	20,187	16,794
Other reserves	(526)	(1251)
Attributable to Emirates' Owner	20,013	17,274
Non-controlling interests	161	201
Total equity	20,204	17,475
Non-current liabilities
Borrowings and lease liabilities	19,084	16,753
Provisions	607	364
Deterred revenue	069'	1,483
Deferred credits	09t	097
Deferred income tax liability	$\overline{C}$	$\overline{4}$
I rade and other payables	$\frac{1}{2}$	$\overline{2}$
Derivative financial instruments	176	19 b
Current liabilities	22,497	19,552
Trade and other payables	14,665	15,475
Income tax liabilities	54	$\vec{6}$
Borrowings and lease liabilities	3,787	2,852
Deferred credits	521	162
Derivative financial instruments	187	$\overline{z}$
	18,786	18,520
Total liabilities	41,283	38,072
Total equity and liabilities	1,487	55,547