Emirates 2013 — Interim / Quarterly Report 2011

Nov 3, 2011

URGENT & CONFIDENTIAL

Ref: SVPCT/608/2011 Dated: 03 November 2011

FAX #3315148/3314924 $(5)$ pages)

Mr Hassan Al Serkal SVP-COO, Market Operations Divn. Dubai Financial Market P.O. Box 9700 Dubai United Arab Emirates

Dear Mr Hassan,

Half-year results for the six month period ended 30 September 2011

Please find attached half-year results as at 30^th September 2011 for Emirates along with release being issued to the press.

Best regards,

Yours sincerely, Brian Jeffery SVP-Corporate Treasury

Copy: Ms Noura Al Hatimi, Asst VP, Head of Listing and Disclosures Market Operations Divn. Dubai Financial Market

Mr Nirmal Govinda Das VP-Financing Emirates.

P.O. Box 686. Dubai. United Arab Emirates.

ص.ب. ٦٨٦ دين، الإمبارات العربية المتحدة

Emirates, the World's Fastest Growing Airline, Reports Half Year Profits of Dhs 827 Million Despite Global Challenges

• Passenger revenue up 18%

· Seat factor remains above 79%

• More than 3,400 new staff joined

· Cash position strong with current balance of Dhs 13.8 billion

DUBAI, UAE - 3rd November 2011 - Emirates airline produced a net profit of Dhs 827 million (US\$ 225 million), for the first six months of its current financial year ending 30th September 2011. The airline continues to be the fastest growing airline in the world and continues to make a profit despite unstable global economic, geopolitical and environmental conditions.

Emirates remains on its strong growth trajectory which over the past seven years has seen the airline grow from a fleet of 60 aircraft, in 2004, to its current 161 wide-bodied aircraft including, the largest fleet of A380s with 17 and the largest fleet of Boeing 777s with 93. In addition, the company's revenue has increased steadily by 20 per cent per annum over the same time period resulting in a record 23 years of profitability, unmatched by any other airline.

Since 2004, when Emirates acquired its first long-haul wide-body aircraft, allowing for much broader global expansion, the airline has opened 39 new outstations and now flies to 115 destinations in 67 countries. Emirates continues to expand its global footprint, having launched Geneva, Copenhagen and St. Petersburg since April 2011 and will continue with eight additional new route launches including Baghdad on 13 November and Rio de Janeiro, Buenos Aires, Harare, Lusaka, Dallas, Seattle and Dublin in early 2012.

"Emirates remained focused on its long-term strategy despite global instability, ever climbing fuel prices which resulted in Emirates paying US\$ 1 billion more in fuel costs over the same period last year and fluctuating exchange rates," said HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates airline and Group. "The global challenges of the past six months have again put Emirates to the test, and once again we have risen to the challenge and continue to maintain our high standards of product and services."

"Emirates' latest half-year performance is testament to the airline's strong business foundations and tenacity to stay on course and continue to grow despite the unsteady marketplace," he added. "We have continued to invest in our eco-efficient aircraft fleet; in strengthening our global route network; and also in supporting the infrastructure for our growing business and it continues to pay off."

In the first-half of its financial year 2011-12, Emirates posted strong business growth, both in terms of capacity on offer and traffic carried, performance that has been in stark contrast to the current trend seen across the aviation industry. Capacity measured in Available Seat Kilometres (ASKM), grew by 8.2%, whilst passenger traffic carried measured in Revenue

Passenger Kilometres (RPKM) was up 5.7 per cent with Passenger Seat Factor sustained at a high level, averaging 79.3 per cent despite the growth in capacity, slightly below last year's record for a six month reporting period of 81.2%. The volume of cargo uplifted was in line with last year.

Emirates revenue, including other operating income, of Dhs 30.3 billion (US\$ 8.3 billion) was higher by 15 per cent compared with Dhs 26.4 billion (US\$ 7.2 billion) recorded last year, largely reflecting improved passenger and cargo yields based on increased fuel prices.

Emirates' cash position on 30th September remained strong with Dhs 13.8 billion (US\$ 3.8 billion), compared to Dhs 14.0 billion (US\$ 3.8 billion) on 31 March 2011. Maintaining this cash balance was achieved after settling capital outflows of more than Dhs 4 billion. primarily towards aircraft pre-delivery payments', other aircraft assets and repayment of bond financing. During the first half, the airline has also successfully raised financing of US\$ 1 billion through the issue of a new bond, as well as financing ten new aircraft deliveries, reflecting strong investor confidence in Emirates business model and financial performance.

Emirates' current fleet size is 161 aircraft. Since the beginning of its current financial year, the airline has received delivery of ten new wide body aircraft, with another 13 new aircraft scheduled to be delivered before the end of the financial year (31 March 2012).

-ENDS-

Photo caption 1: HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive Emirates airline & Group announces half-year profits of US\$ 225 million for the airline.

Photo caption 2: During the first half of its current financial year, Emirates airline expanded its fleet with six new aircraft added.

Share of results in associated compenies and joint ventures for the half year ended 30 September 2011 Consolidated statement of comprehensive income (unaudited) Consolidated income statement (unaudited) 30 Sep 2011 23,272) 29,944 AED m 6001 (113) 321 (214) 128 873 ā 337 873 31) ইক $\frac{4}{6}$ ਠੈ 30 Sep 2010 (23,008) 25,698 AED m 3,439 3,473 3,393 3,431 3,431 33 (35) 248 Str2 37) 24 $\overline{a}$ 88	659	$\sqrt{3}$	Other comprehensive income
			Cash flow hedges
			Currency translation differences
			Profit for the period
			Profit attributable to Emirates' Owner
			Profit attributable to non-controlling interests
			Profit for the period
			hoome tax expense
			Profit before income tax
			Finance costs
			Finance Income
			Other gains and losses
			Operating profit
			Operating costs
			Other operating income
			Revenue
			for the half year ended 30 September 2011 Emirates

	$\frac{1}{2}$	Total comprehensive income attributable to non-controlling interests
2777	š	Total comprehensive income for the period
(654)	E	Other comprehensive income
849)	(113)	Cash flow hedges
	72)	Currency translation differences
3,431	873	Profit for the period

Fax from : 00971 4 2955487

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Emirates
Consolidated statement of financial position (unaudited)
as at 30 September 2011

	30 Sep 2011	31 Mar 2011
	ι Β	λ⊟ Σ
ASSETS
Non-current assets
Property, plant and equipment	20S 30	39,848
Intargible assets	885	9
Investments in associated companies and joint
vertures	394	386
Advance lease rentals	680	334
Loans and other receivables	0001	1.704
Derivative financial instruments	8
	45,762	43,223
Current assets
Inventories	1.446	062'1
Tracie and other receivables	7,387	6,481
Derivative financial instruments	237	53
Short term bank deposits	T,401	3,777
Cash and cash equivalents	1441	10,196
	22,924	21,867
Trial assets	989.89	G5.090

	30 Sep 2011 λθ Β	31 Mar 2011 MED m
EQUITY AND LIABILITES
Capital and reserves
Capital	LO 3	8
Retained earnings	882°02	20,459
Other reserves	1202)	(999)
Attributable to Emirates' Owner	20,885	20,695
Non-controlling interests	227	207
Total equity	21,112	206'02
Non-current liabilities
Borrowings and lease labilities	22,330	20,502
Retirement benefit obligations	437	390
Deterred revenue	1,784	eet'i
Deterred credits	410	ु
Deferred income tax liability
Trade and other payables	۵۵	31
Derivative friencial instruments	1,059	2159
	26,025	23,690
Ciment lishilihiyas

Non-current liabilities
Borrowings and lease labilities	22,320	20,502
Retirement benefit obligations	437	390
Deterred revenue	1,784	ezi'i
Deterred credits	410	ਨੂੰ
Deferred income tax liability
Trade and other payables		$\overline{\mathbf{3}}$
Derivative financial instruments	690°1	242
	26,025	23,690
Current liabilities Fracte and other payables	392.71	17.551
Incorne tax liabilities	88	22
Borrowings and lease labilities	4,113	2,728
Deferred credits	58	$\overline{9}$
Derivative financial instruments		₫
	21,549	20,498
Total liabilities	47,574	44,188
Total equity and liabilities	66,686	060'59

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