InterGlobe Aviation Limited — Capital/Financing Update 2019

Oct 29, 2019

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October 29, 2019

IGAL/SECT/10-19/10

To To National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, C - 1, Block G BSE Limited Bandra Kurla Complex Phiroze Jeejeebhoy Towers Bandra - (E) Dalal Street Mumbai - 400 051 Mumbai - 400 001 Symbol: INDIGO Scrip Code: 539448

Dear Sir,

Sub : Disclosures under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed copies of the following disclosures:

• (a) a Press Release – ‘IndiGo signs for 300 A320neo Family aircraft’, to be released by the Company; and

• (b) an Email to be sent by Mr. Ronojoy Dutta, Chief Executive Officer, to the employees of the Company.

This is for your information and record.

Yours truly,

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IndiGo signs for 300 A320neo Family aircraft

@IndiGo6E @Airbus #A320 #IndiGo #Airbus

National, 29 October 2019 – IndiGo has placed a firm order for 300 A320neo Family aircraft. This marks one of Airbus’ largest aircraft orders ever with a single airline operator.

This latest IndiGo order comprises a mix of A320neo, A321neo and A321XLR aircraft. This will take IndiGo’s total number of A320neo Family aircraft orders to 730.

“This order is an important milestone, as it reiterates our mission of strengthening air connectivity in India, which will in turn boost economic growth and mobility. India is expected to continue with its strong aviation growth and we are well on our way to build the world’s best air transportation system, to serve more customers and to deliver on our promise of providing low fares and a courteous, hassle free experience to them," said Ronojoy Dutta, Chief Executive Officer of IndiGo.

“We are delighted that IndiGo, one of our early launch customers for the A320neo, continues to build its future with Airbus, making IndiGo the world’s biggest customer for the A320neo Family,” said Guillaume Faury, Airbus Chief Executive Officer. “We are grateful for this strong vote of confidence as this order confirms the A320neo Family as the aircraft of choice in the most dynamic aviation growth markets.” He added: “We are pleased to see our aircraft allowing IndiGo to take full advantage of the predicted growth in Indian air travel.”

"We were believers in IndiGo from day one and are thrilled to be able to perpetuate this most fruitful partnership,” said Christian Scherer, Airbus Chief Commercial Officer. “IndiGo has brilliantly demonstrated the relevance of the A320neo for leading low cost operators, and the A321neo - and now the A321XLR - provide our operators with the logical next step in cost efficiency, passenger comfort and market coverage.”

“We are pleased to partner yet again with Airbus for our next batch of Airbus A320neo Family aircraft. The fuel-efficient A320neo family aircraft will allow IndiGo to maintain its strong focus on lowering operating costs and delivering fuel efficiency with high standards of reliability. The choice of engine manufacturer for this order will be made at a later date,” said Riyaz Peermohamed, Chief Aircraft Acquisition and Financing Officer of IndiGo.

IndiGo is among the fastest growing carriers in the world. Since its first A320neo aircraft was delivered in March 2016, its fleet of A320neo Family aircraft has grown into the world’s largest with 97 A320neo aircraft, operating along side 128 A320ceos.

The A321XLR is the next evolutionary step from the A321LR which responds to market needs for even more range and payload, creating more value for the airlines. The aircraft will deliver an unprecedented Xtra Long Range of up to 4,700nm – with 30 percent lower fuel burn per seat compared with previous generation competitor jets.

At the end of September 2019, the A320neo Family had received more than 6,650 firm orders from nearly 110 customers worldwide.

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About IndiGo

IndiGo is amongst the fastest growing carriers in the world. IndiGo has a simple philosophy: offer low fares and ontime, courteous, hassle-free service. With its fleet of 247 aircraft, the airline offers close to 1500 daily flights and connects 60 domestic destinations and 23 international destinations.

Contact for the media

C Leekha c.leekha@goindigo.in +91 9804000084

For more information about IndiGo, please visit www.goindigo.in. You can also connect with us on Facebook,Twitter and Instagram.

About Airbus

Airbus is a global leader in aeronautics, space and related services. In 2018 it generated revenues of € 64 billion and employed a workforce of around 134,000. Airbus offers the most comprehensive range of passenger airliners. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world’s leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide.

For more information about the A320 Family, please click here.

This and other press releases and high resolution photos are available on: AirbusMedia

Dear fellow IndiGo employee,

This will turn out to be a rather lengthy email as there are a couple of important items that I need to discuss with you.

First, I want to discuss the driver of our losses for the second quarter. Then, and more importantly, I want to discuss the firm order that we have placed with Airbus for 300 A320 neo family aircraft.

Second quarter results

So what happened to our earnings for the quarter ended September 2019? We reported INR 1,061.9 crores of loss. We were going along during the quarter estimating that we would have a reasonable financial perf`ormance with unit revenue doing better by around 5.7% and unit costs better by around 1.5%. But then we had to deal with two accounting issues.

A new accounting standard was put in place by the Ministry of Corporate Affairs of India this year requiring all airlines to report their operating aircraft leases as a liability on their balance sheet. Our capitalized operating lease liability was INR 17,466.8 crores as of 30th September, 2019, denominated in US dollars. This liability needs to be revalued every quarter using the existing rupee dollar exchange rate. If the rupee strengthens, our liability on the balance sheet goes down, if the rupee weakens, the liability goes up. This quarter the rupee depreciated considerably from 68.9 rupees per US dollar to 70.7 rupees per US dollar and as a result, the liability for aircraft leases went up by INR 430 crores. No cash actually changed hands, but this disclosure just allows investors to have a sense of what the future liabilities could potentially be in Indian rupees. Unfortunately, the earnings reports for all airlines in India will in the future exhibit this additional volatility as a result of the new accounting standard and we will all have to get used to it and read through these numbers to get to the underlying profitability.

A second accounting estimate hit us on engine costs. We have a number of older ceo aircraft engines which are hitting second shop visit and we have provisioned for higher shop visit cost for the future, the impact of which negatively affected this quarter to the tune of INR 320 crores. This allows us to build up our reserves and reduces the volatility per quarter going forward.

As a result of these accounting adjustments, our reported unit revenue performance was not affected and remained strong at a 5.7% increase but our unit costs instead of being better by 1.5%, now had a reported worsening of 2.8%.

The quarter from July to September is always a weak one for the industry. On a profit before tax basis, we lost INR 987.1 crores last year, with a profit before tax margin of negative 16.0%. This year, we would have improved to a profit before tax margin of negative 3.5% on an operational basis, but including the two accounting adjustments, our profit before tax margin came in at negative 12.7%.

Legendary investor Warren Buffet is fond of saying that accounting readjustments can have a confusing impact on a company’s reported earnings and investors should look at a company’s cash flow to gauge the underlying health of the company. I am pleased to say that after paying for all our debt and lease obligations, we generated an additional INR 3,334 crores of cash through operating activities for the half year ended September 2019. IndiGo continues to maintain a healthy cash balance of INR 18,736.2 crores

comprising of INR 8,706.3 crores of free cash and INR 10,029.9 crores of restricted cash as on September 30, 2019.

In the short term, we will be dealing with the weakening revenue environment with a sharper focus on cost for which we seek your support. Operationally, we should continue our focus on safety, our on- time performance and on delivering a courteous, hassle free service.

New aircraft order

We have a very strong balance sheet, which allows us to remain committed to our strategy of growth and expansion.

Now let us turn our attention to our firm order with Airbus for 300 new A320neo family aircraft. We have more growth opportunities than we can meet with our existing fleet of aircraft. The Airbus 320neo family is ideally suited to our needs offering a platform of low cost, reliability and a mix of options between A320neo, A321neo and A321 XLR aircraft. As we spread our wings and add more destinations, we need to extend the range of our operations and that is why we have added the A321XLR aircraft to our aircraft order. The choice of engine manufacturer for this order will be made at a later date.

This new order further reaffirms IndiGo’s commitment to the long-term development of affordable air transportation in India and overseas.

We have a robust balance sheet, energized and dedicated employees and tremendous growth opportunities all around us. Let’s build for this nation, the best air transportation in the world.

Best regards,

Rono Dutta