The Leading Airline in Central Asia Ibrahim Canliel Chief Financial - PowerPoint PPT Presentation

The Leading Airline in Central Asia Ibrahim Canliel Chief Financial Officer Dubai presentation 28 March 2019

Legal Disclaimer This presentation has been prepared by Air Astana. The information contained herein has been prepared to assist parties in making their own evaluation of the Company. It does not purport to be all-inclusive or to contain all of the information that a prospective investor may desire. Each recipient of the information should perform their own independent investigation and analysis of the investment prospects of the Company. The information and data contained herein are not a substitute for the recipient’s independent evaluation and analysis. Parties who are interested in pursuing further discussions regarding prospective investment opportunities will be given the opportunity to perform further due diligence in due course. All initial communications or inquiries relating to this presentation should be directed to Air Astana. Air Astana | Presentation March 2019 2

The regional market leader – Positioned for growth 1 1 The leading airline in Central Asia with Western safety and service standards 2 2 Exposed to attractive long term growth dynamics 3 3 Full-service airline with low cost structure 4 4 Unique location as an ideal hub connecting the Asia, Europe and CIS 5 5 Multiple growth levers with untapped potential from the sixth freedom traffic 6 6 Modern and efficient fleet of Western-made aircraft 7 Best-in-class management team with international track record Announced FlyArystan as the first Central Asian low cost carrier, launching in May 8 Air Astana | Presentation March 2019 3

Our mission is to build one of the finest airlines in the world In numbers > Shareholders 66 > 51% Samruk-Kazyna JSC > 49% BAE Systems Air routes > Revenues US$840.8m 19 > Passengers 4.3m Countries > 86% on-time 5,270 performance Employees > Best Airline in Central 8.4years Asia – 7 years in row (SkyTrax Awards) Average fleet age 34 Aircraft in fleet Air Astana | Presentation March 2019 4

Service excellence > First in the CIS to receive 4-star rating of the prestigious Skytrax World Airline Awards > 2012-2018 “Best Airline in Central Asia and India” by Skytrax > 2018 TripAdvisor’s “Travelers' Choice Regional Airline” > 2018 “Five Star Major Regional Airline” by Airline Passenger Experience Association 5 Air Astana | Presentation March 2019

Our growing route network > Increasing international footprint > Close proximity to fast-growing Asian markets > Significant potential with Sixth Freedom traffic > Astana building strong hub position in Central Asia region Air Astana | Presentation March 2019 6

Company history and key milestones October November2012— December 2017 First own aircraft June2014 Opening of aviation delivery 6 x A320 and technical centrein 3 x B767 added Astana June December 2018 Achieves IATA 100% 2017 Official registration by E-Ticketingtarget (first IATA as an IOSA- 2014 in CIS) compliant carrier 2012 August 2011 First JAR/EASA 145 certification for Engineering 2009 and Maintenance Nov 2016 – Dec 2017 November 2008 Delivery of first A320 Delivery of first NEOand A321 NEO E2 aircraft September aircraft First international 2007 flight — Almaty to June December Dubai to Almaty 2nd place in “Best November Launch of the Ab-initio Announcement to launch AirlineEastEurope”at 2003 pilots training FlyArystan-the first LCC in September the 2011 World Foundation of Air programme the region AirlineAwards Astana as a joint venture between the December 2002 June RK and BAE Systems Launch of Frequent Achievement of 3-star 2012-2018 – Skytrax awardsfor “BestAirline inCentralAsia Flyer Programme overall Skytraxrating andIndia”forthesevenyearsinarow 2001 May First flight — Almatyto Astana to Almaty Air Astana | Presentation March 2019 7

Experienced senior management team > A team of highly experienced Peter Foster Alma Aliguzhinova professionals led by Peter Foster, a CEO President & CEO Chief Planning Officer  35 years in the industry  17 years with the company with more than 35 years of management  13 years with the company  MBA in Business Management  Previously: Cathay Pacific Airways  MBA in Aerospace experience and Royal Brunei Airlines > Pedigree of major European and Asian airlines and BAE Systems Ibrahim Canliel Anthony Regan Chief Financial Officer Chief Operating Officer  25 years in the industry  36 years in the industry > Average tenure amongst the top  15 years with the company  6 years with the company  Previously: KLM  Previously: Cityjet, Park Aviation, management of 11 years with a turnover Irish Air Corps of less than 6% since inception > Gerhard Coetzee Yerdaulet Shamshiyev Strong commitment to corporate Senior Vice-president Vice President Strategy and governance Corporate Safety Development Compliance  20 years in the industry  25 years in the industry  17 years with the company  13 years with the company  Previously: BAE Systems Keith Wardle YevgeniyaNi Vice President Engineering Vice President HR and and Maintenance Administration  34 years in the industry  16 years with the company  4 years with the company  Diplomas in Legal and  Previously: BAE Systems, DHL English/French languages Express Air Astana | Presentation March 2019 8

Domestic and International market share in 2018 Kazakhstan Domestic market share Kazakhstan International market share 1 1 Qazaq Air 6% Air Astana 46% Air Astana Others 28% Bek Air 20% 35% Ukraine Airlines 4% Turkish Airlines 5% S7 Airlines SCAT 28% Aeroflot 5% Scat 7% 16% Air Astana | Presentation March 2019 9

Passengers carried and capacity Passengers ('000) ASK (Million) 4,193 4,323 3,770 3,862 3,749 489 723 186 202 310 1,395 1,548 1,384 1,532 1,351 14,267 13,590 12,717 12,417 11,668 2,281 2,184 2,156 2,088 2,068 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Domestic routes International routes 6th freedom traffic Air Astana | Presentation March 2019 10

The Kazakh aviation market Air Travel penetration vs. GDP per capita 14m 4X No. of flights per person p.a. UAE 10 New passenger record in 2018 more passengers per capita in Malaysia Norway vs Kazakhstan Switzerland Finland Spain Denmark UK Netherlands Portugal 31.5% 900,000 Austria Greece Malaysia Germany Italy France Croatia 1 growth in international travel routes 2013- transit passengers in 2018, up 40% Thailand Number of passengers per capita Bulgaria 2018 Russia Brazil EU-28 1.3 Romania Malaysia 0.8 China 21.5% CAGR 5.7% CAGR Kazakhstan Russia 0.4 Kazakhstan 0.2 0.1 passenger growth 2009-2017 passenger growth (RPK) expected in Asia 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Pacific 2017-2037 GDP per capita, $ Passenger growth in Kazakhstan (PAX mm) Passenger growth (RPK) 2017-2037E CAGR 5.7 5,7% 5.1 5.0 4.9 4.8 4.1 3,9% 3.8 3,8% 3.1 3,1% 1.2 Asia Pacific CIS Europe North America 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: The World Bank Source: Boeing Air Astana | Presentation March 2019 11

Launch of Low Cost Carrier (LCC) - FlyArystan > Central Asia’s first Low Cost Carrier > Announced in November 2018 > Ticket sales start 29th March 2019 > First flight expected 1st May 2019 > Separate AOC expected in early 2020 > Separate management team and business model > Initially a domestic offering but with ambitions to service the significant near home markets > The LCC will stimulate significant new traffic in its chosen markets – Kazakh propensity to fly just 0.22 90% > FlyArystan’s flight schedule has been constructed to where possible complement the existing schedule of Air Astana Kazakhs don’t yet fly > EBITDAR positive in 2019 and with significant growth domestically potential Based on extrapolated Air Astana frequent flyer data Air Astana | Presentation March 2019 12

The opportunity for an LCC in Central Asia is obvious Air Astana | Presentation March 2019 13

Outstanding growth prospects +28% +67% +18% Air Astana’s historical passenger growth by region Passengers per year (‘000) 2013 2018 213 252 591 460 151 180 +18% +291% UAE & India China Russia > Increased frequencies and improved connectivity have driven traffic flows > Focus on under-served markets with substantial size (e.g. Urumchi with 17m population and 28m catchment area) 4,323 723 > Low unit costs allow Air Astana to compete and grow effectively > 3,675 Competitive and dynamic pricing 185 > Aggressive marketing 6th Freedom Total passengers > Expected passenger traffic growth translates into a requirement to double the fleet Air Astana | Presentation March 2019 14