69 ANNUAL REPORT 2020-21

Overview

Emirates

Group

Financial information

Additional information

What has been truly remarkable is the way all stakeholders in our society and economy have come together to mobilise the efforts and resources needed to combat the pandemic. The joint efforts of the public and private sectors in mounting a strong healthcare response is one of the examples of this spirit of solidarity.

His Highness Sheikh Mohammed bin Rashid Al Maktoum Vice President and Prime Minister of the UAE and Ruler of

The COVID-19 pandemic has been one of the biggest challenges humanity has faced in its Consistent with this spirit, the Dubai government has known history. Nevertheless, while it has caused unprecedented disruptions to our lives, it has placed a high priority on extending support measures also summoned extraordinary resilience across the world. to businesses to ensure the short-term impact of the pandemic does not translate into long-term challenges. The UAE’s fight against the pandemic has particularly been a story of strength, fortitude and Going ahead, we continue to remain committed to endurance. We have been tested in our ability to deal with this unforeseen situation, but we helping all sectors in recovering on a solid footing.

have emerged out of it tougher. Amidst the pandemic, our model for finding solutions to challenges has been marked by cooperation, In many ways, the UAE has proved to be one of best prepared countries to deal with this humanitarian values and rapid action. The response of pandemic. Not only have we effectively safeguarded the health and wellbeing of citizens and Dubai’s and logistics industry leaders to the residents, we have also weathered the economic impact of the crisis. The investments we made disruption caused by COVID-19 is a key example of our over the last few decades to create a world-leading infrastructure, thanks to the vision of our founding fathers, combined with our robust institutions and public services, have enabled us to counter the COVID-19 challenge.

2 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group

Financial information

Additional information

nation’s ability to rise to the challenge in these testing aviation, while also furthering the UAE’s vision times. Working unitedly, they have been quick to use and aspirations. their global capabilities not only to facilitate the rapid The UAE will mark 50 years of nationhood in December distribution of vaccines in the country but also send 2021. Growing from a modest regional trading post relief and humanitarian aid to developing nations. to a nation that sent the Arab world’s first space Aviation is indeed vital to Dubai’s vision to be a pivotal mission to Mars, the UAE’s development has been truly economic hub for the world. extraordinary. I look forward to our country achieving actively contributes to Dubai’s economic success and greater successes and accelerating our progress on the is central to our future growth and prosperity. I am ambitious path set by our founding leaders. Their vision confident the Group will continue its role as a world- to drive human advancement and create a better world leading organisation shaping the future of global for future generations continues to inspire us.

3 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group Emirates is a global , serving 155 airports in 81 countries from its hub in Dubai, Financial information .

Additional information dnata is one of the world’s largest combined air services providers in the world, serving over 320 airline customers in 37 countries. Its main activities are the provision of and ground handling, catering, and services.

Emirates and dnata are independent entities and do not form a group as defined by International Financial Reporting Standards. However, these entities are under common management. Therefore, in the Management Review section of this document, they are together referred to as the Emirates Group.

4 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group

Financial information

Additional information

6 Financial highlights 18 Emirates highlights 71 Emirates financial commentary 8 Chairman’s statement 36 dnata highlights 80 dnata financial commentary 16 Leadership 48 Our people 86 Emirates independent auditor’s report 54 Our communities 92 Emirates consolidated financial statements 58 Our planet 142 dnata independent auditor’s report 66 Our network 146 dnata consolidated financial statements 188 Emirates ten-year overview 190 dnata ten-year overview 192 Group ten-year overview 193 Group companies of Emirates 194 Group companies of dnata 196 Glossary

5 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group

Financial information

Additional information

Emirates Group Financial highlights 2020-21 2019-20 % change Revenue and other operating income* AED m 35,586 104,002 (65.8) Operating (loss) / profit AED m (16,878) 6,915 (344.1) Operating margin % (47.4) 6.6 (54.0) pts Loss / profit attributable to the Owner AED m (22,100) 1,674 (1,420.2) Loss / profit margin % (62.1) 1.6 (63.7) pts Financial highlights Financial position Total assets** AED m 165,872 188,461 (12.0) Cash assets AED m 19,798 25,565 (22.6)

Employee data Employee strength number 75,145 108,536 (30.8)

* After eliminating inter company income/expense of AED 882m in 2020-21 (2019-20: AED 2,730m).

** After eliminating inter company receivables/payables of AED 179m in 2020-21 (2019- 20: AED 304m).

Percentages and ratios are derived based on figures rounded off in millions.

The financial year of the Emirates Group is from 1 April to 31 March. Throughout this report all figures are in UAE Dirhams (AED) unless otherwise stated. The exchange rate of the Dirham to the US Dollar is fixed at 3.67.

6 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group 20-21 30,927 20-21 20-21 5,541 20-21

Financial 19-20 91,972 19-20 1.056 19-20 14,760 19-20 618 information

Additional 18-19 97,907 18-19 871 18-19 14,419 18-19 1,445 information 17-18 92,322 17-18 2,796 17-18 13,074 17-18 1,317

16-17 85,083 16-17 1,250 16-17 12,182 16-17 1,210 Revenue and operating income in AED m (Loss) / profit attributable to the Owner Revenue and operating income in AED m (Loss) / profit attributable to the Owner in AED m in AED m

Emirates dnata Financial highlights 2020-21 2019-20 % change Financial highlights 2020-21 2019-20 % change Revenue and results Revenue and results Revenue and other operating income AED m 30,927 91,972 (66.4) Revenue and other operating income AED m 5,541 14,760 (62.5) Operating (loss) / profit AED m (15,021) 6,408 (334.4) Operating (loss) / profit AED m (1,857) 507 (466.3) Operating margin % (48.6) 7.0 (55.6) pts Operating margin % (33.5) 3.4 (36.9) pts EBITDA AED m 4,644 25,852 (82.0) (Loss) / profit attributable to the Owner AED m (1,821) 618 (394.7) EBITDA margin % 15.0 28.1 (13.1) pts (Loss) / profit margin % (32.9) 4.2 (37.1) pts (Loss) / profit attributable to the Owner AED m (20,279) 1,056 (2,020.4) Return on Owner’s funds % (24.6) 7.6 (32.2) pts (Loss) / profit margin % (65.6) 1.1 (66.7) pts Return on Owner's funds % (95.3) 3.5 (98.8) pts Financial position Total assets AED m 14,274 16,703 (14.5) Financial position Cash assets AED m 4,690 5,316 (11.8) Total assets AED m 151,777 172,062 (11.8) Cash assets AED m 15,108 20,249 (25.4) Key operating statistics Net debt to equity ratio % 459.0 381.2 77.8 pts Aircraft turns handled number 289,526 680,867 (57.5) Cargo handled tonnes'000 2,686 2,929 (8.3) Key operating statistics Meals uplifted number'000 16,939 93,492 (81.9) Passengers carried number'000 6,553 56,162 (88.3) Total Transaction Value (TTV) AED m 229 10,751 (97.9) Cargo carried tonnes'000 1,873 2,389 (21.6) Passenger seat factor % 44.3 78.5 (34.2) pts Employee data Overall capacity ATKM million 24,782 58,584 (57.7) Employee strength number 34,344 48,503 (29.2) Available seat kilometres ASKM million 64,062 367,153 (82.6) Aircraft number 259 270 (11) nos

Employee data Employee strength number 40,801 60,033 (32.0)

7 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group A year on, Dubai has safely re-opened for Financial information business and for international visitors. The UAE is amongst the top nations in the world when Additional information it comes to protecting its citizens and residents against COVID-19 with 10 million vaccine doses administered by end April 2021.

Sadly, our industry is not recovering as quickly as hoped. At this time of writing, many countries are battling new variants and a third or fourth wave of COVID-19 infections, and international travel is still severely restricted in almost all markets.

HH Sheikh Ahmed bin Saeed Al Maktoum Chairman and Chief Executive Emirates Airline & Group

2020-21: A lingering black swan event It is hard to overstate the tremendous toll that COVID-19 has had on human lives, and its ongoing We began our 2020-21 financial year in impact on economies, communities, and the global lockdown. All passenger flights to and travel and aviation industry.

from the UAE had been suspended from 25 In this business environment, the Emirates Group March 2020 for nearly eight weeks as part is reporting its first ever loss in over three decades, of the national pandemic response, and of AED 22.1 billion. Significant flight and travel most of the world’s countries had begun restrictions across the globe throughout our entire implementing various levels of restrictions 2020-21 financial year led to a 66% drop in revenue to on travel and personal movement. AED 35.6 billion. Our Group’s cash balance of AED 19.8 billion is also down 23%.

Preserving cash and strict cost controls were key focus areas for 2020-21. Across the Group, we restructured financial commitments, renegotiated contracts, examined processes and consolidated operations.

8 ANNUAL REPORT 2020-21

Overview

Emirates dnata Group Emirates received capital injections totalling Emirates’ business response AED 11.3 billion from our ultimate owner the Financial As many markets remain fully or partially closed to information , enabling the airline to international travellers, Emirates had to ground a Additional preserve most of its workforce, and sustain information significant portion of our fleet this year, and re-design operations as we chart a path to recovery. dnata our operations. also tapped on various industry support and job saver programmes which provided an estimated Emirates’ total passenger and cargo capacity in 2020-21 was 24.8 billion ATKMs, 42% of what it was total relief of nearly AED 800 million in 2020-21. in 2019-20. Our total revenue declined by 66% to Across the Group, health and wellbeing remained AED 30.9 billion, as travel and flight restrictions a top priority throughout the year. As we began capped demand and saw Emirates carrying just a phased return to the workplace and ramped up 6.6 million passengers during the year.

On the people side, we froze recruitment and operations, new guidelines and protocols were promotions. UAE-based employees took a six-month introduced to protect our people and customers. salary cut, while other employees supported the Our inhouse medical team continues to monitor the company through a combination of pay cuts, furlough latest information on COVID-19 to provide the right or job support programmes where available. support to our people. When COVID-19 vaccines became available in the UAE, we partnered with Our various cost reduction initiatives across the Group the health authorities to encourage and facilitate returned an estimated saving of AED 7.7 billion during vaccinations. By March, just three months after the year. starting our vaccination drive, 35,000 UAE-based As it became clear that recovery would take longer employees had already been vaccinated at one of than initially projected, we made the difficult decision our vaccination centres. to resize our workforce by 31% in line with reduced operational requirements. This was the first time in our Group’s history that we had to implement redundancies across all parts of the business.

9 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group We began a gradual restoration of our network and hub Financial information connectivity from mid-June as the UAE re-opened - first for transit travellers and later for international arrivals. Additional information During the year, Emirates reactivated our codeshare partnership with , and entered into agreements with new partners TAP Air Portugal, FlySafair, and Airlink in South Africa, to expand connectivity for our customers.

From zero scheduled passenger flights at the start of the financial year, to operations in over 120 destinations by 31 March 2021, Emirates has shown its ability to

adapt and respond to challenges, and the resilience of medical cover for all passengers, and we fast-tracked its people and business model. biometric processing and other technology projects that enhanced customer experience while reducing In a showcase of public and private sector partnership, contact at airport touchpoints. Emirates worked closely with aviation and tourism stakeholders to safely re-open Dubai for international Emirates also offered fee waivers so customers can travellers by 7 July. rebook without penalty, extended Tier status and Miles validity for Emirates Skywards members, and expedited Placing the health and wellbeing of its workforce and the processing of 3 million refund requests which customers first, Emirates led the industry in proactively returned AED 8.5 billion to customers. developing new service and operating protocols. We launched initiatives that earned customer confidence, Our cargo operations contributed 60% of the such as the industry’s first complimentary COVID-19 airline’s total transport revenue this year with a strong performance.

10 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group Emirates SkyCargo rapidly scaled up operations and In October, Emirates SkyCargo set up a dedicated GDP- Financial rebuilt our cargo network to meet strong demand certified airside hub in Dubai for COVID-19 vaccines. information from shippers who faced a capacity crunch when the Later in February, we signed up to partner with UNICEF Additional pandemic forced to drastically reduce flights. to facilitate the rapid transport of COVID-19 vaccines to information In April, we consolidated our cargo operations at developing nations through Dubai. Dubai International to improve efficiency with reduced Despite the difficult business environment, Emirates has trucking between Dubai’s two airports. continued to invest in our future. In 2020-21, we retired We modified 19 777-300ER passenger aircraft 14 aircraft and received delivery of 3 new A380s. We by removing seats in the economy cabin to make room elevated our signature Emirates A380 experience with for more cargo and deployed these “mini freighters” the introduction of our new Premium Economy seats to supplement our existing 777 freighter fleet. We also and product enhancements across all other cabins.

dnata’s business response

The impact of COVID-19 was felt across all dnata businesses.

With reduced flight and travel activity across all markets, dnata’s total revenue for 2020-21 dropped 62% to AED 5.5 billion. We recorded our first ever loss of AED 1.8 billion, which includes impairment charges of AED 766 million across all divisions.

During 2020-21, teams across our Airport Operations, Catering, and Travel divisions quickly adapted to introduced new loading protocols to safely utilise the For our travel trade partners, we launched our Emirates the dynamic environment. From implementing new overhead bins and passenger seats to carry cargo. Partners Portal and Emirates Gateway. Powered by the protocols to introducing innovative products and latest technology, these platforms mark a step-change Emirates SkyCargo’s logistics capabilities and Dubai’s services, we responded to new customer expectations in how we engage our partners and offer them better world-class infrastructure put us in a strong position to and business opportunities and made the health and access to our products and services. support the urgent distribution of COVID-19 vaccines wellbeing of our workforce a priority. and other essential medical items.

11 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group market demand, such as thermal screening and baggage Financial disinfection at various locations around the world. information dnata continued to win new contracts in 2020-21. Notably, Additional information in dnata began ground handling for Qantas at most of its major airports and GTA dnata, our joint- venture company in , was awarded a five-year ground handling license for ramp, passenger, and cargo warehousing services at Vancouver International Airport.

We also inked strategic partnerships to expand dnata’s reach and capabilities. In , our subsidiary, Airport Handling SpA, partnered with Beta Trans to provide full

While keeping a tight grip on costs, dnata worked Our long-serving President Gary Chapman retired at closely with customers to help adapt their operations the end the financial year, handing over the reins to and provide them with the latest travel information. Steve Allen who was appointed Executive Vice President dnata also pressed ahead with key strategic investments responsible for all dnata’s businesses globally. to strengthen the business for future growth. This dnata’s Airport Operations remained the top included the opening of a new 150,000 sq ft, state-of- contributor to dnata’s revenue in 2020-21, even as we the-art cargo facility in Manchester; the introduction saw a 59% decline in aircraft turns handled in the UAE, of high-tech cool dollies to enhance our pharma and and a 57% decline in our international business. With perishables handling capabilities in and strong air freight demand across many markets, dnata Australia; the setting up of a dedicated inflight retail saw only a minor 8% decline in cargo handled to 2.7 cargo services to customers at . centre of excellence; the opening of our second catering million tonnes. dnata also entered the Indonesian aviation market facility in Dublin; upgrades to leasure and corporate through a partnership with PT UNEX Rajawali Indonesia travel technology; and the achievement of various Through the year, our Airport Operations teams around (UNEX) where both entities will make joint investments in industry certifications which validate our capabilities the world stepped up to support airline customers ground handling facilities, equipment, and training. and puts dnata in a competitive position to retain and with new pandemic protocols. We also introduced win new contracts. innovative new products and services in response to

12 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group Our airport hospitality division marhaba opened a new Similar to other parts of our business, dnata’s Travel With Dubai’s re-opening for tourism activity, Financial airport lounge in Manila and formed a partnership with division was hit hard by a drastic drop in travel demand dnata leveraged its strong presence in the UAE to information Plaza Premium Group to expand our airport lounges due to pandemic-related travel restrictions. promote staycations. In July, our tour operating Additional and meet and greet services around the world. division Arabian Adventures achieved the World information Revenue from our Travel division declined by 96% to Travel and Tourism Council ‘Safe ’ award for dnata’s Catering business uplifted 16.9 million meals AED 130 million, with the total underlying transaction its high health and safety standards, and through to airline customers during the year, a decline of 82% value (TTV) dropping by 98% to AED 229 million. the year it launched new UAE-based experiences due to drastically decreased global passenger flight In an environment of travel uncertainty, dnata focussed for visitors and residents including an innovative activity and significantly lower seat loads. on initiatives to support customers and provide value. During the year, we adapted our products and services Across our travel brands, we helped customers rebuild to meet new customer requirements. dnata was one of traveller trust, by processing refunds and rebookings, the first in the industry to adopt the new guidelines of and providing the latest travel information.

the International Flight Services Association (IFSA) and self-guided walking tour in partnership with technology the Airline Catering Association (ACA), which provides and gaming experts at Questo. standards for the industry’s pandemic response. dnata Travel Group continued to secure growth We recalibrated our operations to provide meals for opportunities. During the year, we provided online quarantine facilities and worked with local organisations booking capability for London City Airport in the in Australia, Ireland, Italy and the UK to support UK, and we expanded our reach in through a communities in need. partnership with OUA Travel that enables Oman-based trade agents to promote and sell Gold Medal’s wide In addition to setting up new inflight retail service range of travel products to their customers. dnata also capabilities, we also invested in initiatives to reduce our concluded it’s full acquisition of Destination Asia, which environmental footprint, including new bio-digesters provides ground activity packages for visitors to 11 to reduce food waste across our operations, and the Asian countries. installation of solar panels at our Singapore facility.

13 ANNUAL REPORT 2020-21

Overview

Emirates Skies for Tomorrow coalition, which supports a transition to dnata SAF as part of a pathway towards carbon-neutral flying. Group Our ambition to reduce the use of plastics across our Financial information operations was temporarily put on hold, as Emirates and dnata adapted to new COVID-19 protocols. However, Additional information we made solid progress to reduce our consumption of resources in other areas, notably with investments to reduce food waste in both Emirates and dnata’s catering businesses.

We continued to support wildlife and habitat conservation efforts through employee education and training, participation in industry efforts to combat wildlife trafficking, as well as our ongoing investments in the Dubai

Sustainability This year, Emirates operated flights powered by sustainable aviation fuel (SAF) from Sweden and Our environmental strategy focusses on three key areas: Norway where local programmes made it accessible, emissions reduction, responsible consumption, and and we received our first A380 delivery powered by SAF. wildlife and habitat conservation. At a corporate level, Emirates also joined the World Economic Forum’s Clean dnata this year began embedding our environmental framework across our broad-spanning Travel Desert Conservation Reserve (DDCR) and Wolgan Valley. In businesses, aiming to improve our own operational July, the DDCR released its first annual report which outlines footprint, and empower customers to make better its future plans for desert and wildlife conservation. travel choices. The challenges of 2020-21 highlight the critical role that In an unusual year with reduced flight and ground aviation plays in supporting economies and communities. operations, we saw a 68% drop in emissions for 2020- Emirates and dnata stepped up to the plate to help ensure 21. Emissions reduction remains a high priority for our global supply chain continuity for medicines and medical environmental programme. While we continue efforts items, food, humanitarian relief, and other essential trade to improve fuel efficiency and reduce fuel burn, we are commodities. Across our global operations, we also also exploring viable alternatives for cleaner fuel. contributed to pandemic response initiatives at a community level where opportunities arose.

14 ANNUAL REPORT 2020-21

Overview

Emirates Following the devastating explosions in the Port a deep talent pool led by a stable leadership team. aviation lessors and financing partners during these dnata of Beirut, Emirates Skycargo activated its expertise These fundamental ingredients of our success remain challenging times is a testament to the financial Group in humanitarian logistics to transport relief goods, unchanged. Together with Dubai’s undiminished community’s confidence in Emirates’ business model, and mid to longer term prospects. Financial and during the year, dnata donated cargo handling ambitions to grow economic activity and build a city for information equipment to the International Humanitarian City (IHC), the future, I am confident that Emirates and dnata will dnata ends the year with a cash balance of AED 4.7 Additional information the largest humanitarian hub in the world, to support recover and be stronger than before. billion, ensuring sufficient liquidity for our operations as we restore capacity.

In the year ahead, we will continue to adopt an agile approach in responding to the dynamic marketplace. We aim to recover to our full operating capacity as quickly possible to serve our customers, and to continue contributing to the rebuilding of economies and communities impacted by the pandemic.

the organisation in facilitating rapid relief and first In addition to the AED 14.5 billion financing that was responses to crises at a global level. raised for aircraft and general corporate purposes in 2020-21, Emirates has already received committed Outlook for 2021-22 offers to finance two aircraft deliveries due in 2021-22 No one knows when this pandemic will be over, but one and continues to tap the financial market for further thing is certain - recovery will be patchy. Economies liquidity to provide a cushion for the potential impact and companies that are better prepared, and those who of COVID-19 on the business cash flows in the near HH Sheikh Ahmed bin Saeed Al Maktoum entered pandemic times in a strong position, will be term. The Government of Dubai is also committed to Chairman and Chief Executive better placed to bounce back. supporting the Group through its recovery. Emirates Airline & Group Until 2020-21, Emirates and dnata have had a track During the year, Emirates successfully restructured record of growth and profitability, based on solid various aircraft leases and loans. The support from business models, steady investments in capability and infrastructure, a strong drive for innovation, and

15 ANNUAL REPORT 2020-21

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Emirates dnata

Group

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Additional information

HH Sheikh Ahmed Sir Tim Clark Gary Chapman Bin Saeed al Maktoum President President Chairman and Chief Executive Emirates Airline Group Services & dnata Leadership Emirates Airline & Group Retired from 01.04.2021

16 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group

Financial information

Additional information

Adel Ahmad Al Redha Adnan Kazim Abdulaziz Al Ali Ali Mubarak Al Soori Nigel Hopkins Steve Allen Chief Operating Officer Chief Commercial Officer Executive Vice President Executive Vice President Executive Vice President Executive Vice President Emirates Airline Emirates Airline Human Resources Chairmain’s Office, Service Departments dnata Emirates Group Facilities & Project Emirates Group Effective from 01.03.2021 Management and Non-Aircraft P&L

17 ANNUAL REPORT 2020-21

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Emirates dnata

Group

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Emirates highlights

18 ANNUAL REPORT 2020-21

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Emirates dnata

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19 ANNUAL REPORT 2020-21

Overview

Emirates dnata 14 Apr Group Emirates puts customers first with a simplified Financial worldwide approach to its COVID-19 waivers and information refunds policy, easing concerns about pre-booked travel Additional and offering customers options to hold their tickets, information exchange them for vouchers, or get full refunds.

Customer care and travel assurance 15 Apr Emirates becomes the first airline to offer onsite rapid Emirates led the industry in responding to its customers’ COVID-19 tests for departing passengers at Dubai needs throughout the pandemic. It was one of the first International (DXB). airlines to proactively implement bio-safety measures onboard and on the ground to protect its customers and 21 Apr employees. These protocols were regularly reviewed and updated in line with the latest medical knowledge. Emirates steps up precautionary measures to protect customers and employees, with new PPE issued to all In addition, Emirates launched policies and initiatives that frontline employees, and service modifications to reduce earn customer trust, and help restore travel confidence. contact and risk of transmission. These include the industry’s first complimentary COVID-19 health cover, extended waivers for rebookings and refund 26 Apr administration fees, and the extension of benefits for loyal Emirates proactively commits to honour refunds to frequent flyers. customers and trade partners, and ramps up processing capability by four-fold to expedite the clearing of an unprecedented volume of refund requests.

20 ANNUAL REPORT 2020-21

Overview

Emirates dnata 15 May

Group Emirates launches a COVID-19 travel information hub

Financial as a one-stop shop on emirates.com, to help customers information navigate the varied and dynamic travel requirements Additional around the world. information

21 May In tandem with the return of scheduled passenger flights, Emirates unveils a comprehensive set of bio- 15 Sep safety measures at all customer touchpoints on ground Emirates launches a bespoke offer for international and in the air, updated in line with the latest medical students and their families to enjoy year-long knowledge and best practice. travel benefits.

23 Jul Emirates introduces the industry’s first complimentary COVID-19 cover for all its passengers, providing travel assurance and additional peace of mind.

06 Aug Emirates Skywards launches skywardsmilesmall.com, introducing a thousand new ways for members to earn 09 Jun Miles while shopping online with popular UK and US Emirates Skywards expands options for its members to retail brands. spend and earn Miles, with the addition of the Emirates Official Store online. 09 Sep 15 Sep Emirates collaborates with Huawei to bring the Emirates Emirates Skywards partners with Barclays to launch its first co- 20 Jul app and other benefits to Huawei phone users. The branded card in the US market. Emirates Holidays introduces video appointments partnership will also help Emirates expand its reach in to provide personalised travel support, and offers the Chinese market. customers added flexibility to book packages with a nominal deposit.

21 ANNUAL REPORT 2020-21

Overview

Emirates 23 Oct dnata Emirates launches an integrated biometric path at Group Dubai airport. It improves the customer experience Financial with smooth processing at airport touchpoints via information iris or facial recognition technologies; and provides a Additional contactless airport experience that prioritises health and information safety with reduced human interaction.

17 Nov Emirates is rated the safest airline in the world in its response to the COVID-19 pandemic according to the Safe Travel Barometer.

23 Nov Emirates provides an expanded global multi-risk travel insurance for all its passengers, including COVID-19 health cover, offering customers unmatched travel assurance and peace of mind.

22 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information

Additional information

24 Nov Emirates re-launches its Dubai Connect offer which gives customers with long transit times a 25 Feb complimentary stay in Dubai, ensuring that Emirates and the Dubai Health Authority sign an MoU travelling through Emirates’ hub is seamless despite to enable the seamless digital verification of COVID-19 altered flight schedules during the COVID-19 pandemic. medical records for travellers at Dubai airport.

29 Mar Emirates announces the operation of a special flight 19 Jan EK2021 to highlight the UAE’s impressive vaccination drive and readiness of its aviation industry for travel Emirates announces plans to trial the IATA Travel Pass, 03 Feb rebound. Proceeds from the flight will benefit the which will enable travellers to digitally manage and Emirates launches touchless self-service check-in and airline’s charity, the Emirates Airline Foundation. share their health documents for travel requirements. baggage drop kiosks at Dubai airport, enhancing the smart contactless journey offered to customers. 28 Jan 31 Mar Emirates delivers on its commitment to customers, with Emirates Skywards leads the industry with a generous 21 Feb AED 8.5 billion returned in COVID-19 related refunds extension of Tier Status and Miles validity until 2022, Emirates operates its first flight with fully vaccinated from over 3 million requests. offering loyalty programme members more flexibility employees onboard and across supporting ground and assurance. operations, illustrating the progress of the UAE’s vaccination drive including amongst essential aviation workers.

23 ANNUAL REPORT 2020-21

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Emirates dnata

Group 06 Apr

Financial Emirates operates its first flights carrying passengers to information London, Frankfurt, Brussels, Paris and Zurich, helping Additional people get home after flights to and from the UAE information were temporarily suspended on 25 March as part of the country’s pandemic response.

03 May Emirates operates repatriation flights during May, including to Frankfurt, London, Manila, Sao Paolo, and Shanghai.

Restoring Emirates’ global network

With global connectivity at the heart of its business model, Emirates prioritised the rebuild and restoration of its network throughout the year. The airline closely monitored market conditions and adjusted its operations dynamically while governments tightened and relaxed travel restrictions to keep the pandemic in check. 21 May

It also re-started its strategic codeshare partnership with flydubai and Emirates begins scheduled passenger flight services entered into agreements with new partners TAP Air Portugal, FlySafair, and to nine destinations, and offers passengers travelling between the UK and Australia the ability to connect Airlink in South Africa, to expand connectivity for customers. in Dubai. Emirates worked closely with all aviation stakeholders to safely restart its hub and network operations, supporting communities and economies by 15 Jun serving travel demand and ensuring the movement of essential goods. Following the UAE’s lifting of restrictions on transit passengers, Emirates resumes passenger services to By 31 March 2021, Emirates had brought its global network back to 120+ 16 more cities. passenger and cargo destinations, and restored 42% of its total capacity compared to 2019-20.

24 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information 29 Jun 29 Sep Additional Emirates announces the restart of services to more information cities which will restore its passenger network to over Emirates restores passenger services to Entebbe and 50 destinations in July. Muscat, taking its network to 94 destinations.

09 Aug 05 Oct Emirates ramps up services to offering Emirates expands its European network with the 60 flights per week from , Islamabad, Lahore, announcement of operations restarting to Budapest, and Sialkot to Dubai. Bologna, Lyon, Dusseldorf and Hamburg.

12 Jan Emirates expands its operations in the Americas with passenger services resuming to Seattle, Dallas and San Francisco, and the addition of flights to New York, Los Angeles and Sao Paolo. By January, the airline had 20 Oct restored its passenger network to more than 100 destinations. Emirates signs an interline agreement with Airlink to provide customers with enhanced connectivity from its gateways in Johannesburg and Cape Town to over 15 Mar 25 new domestic destinations in South Africa and Emirates and TAP Air Portugal sign an MoU to expand 20 regional destinations in Southern Africa. 31 Aug their strategic partnership, and offer customers of both airlines access to more destinations and benefits. Emirates and flydubai reactivate their strategic partnership to offer customers seamless access to over 15 Nov 100 destinations via Dubai, following the progressive Emirates inks an interline agreement with FlySafair, restoration of services across both airlines’ networks. extending its reach in South Africa to domestic points operated by FlySafair.

25 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information Throughout 2020-21, Emirates SkyCargo continued Additional to deliver innovative and bespoke solutions for its information customers, supporting the food industry, animal transport, sporting events, and other critical economic activity. Emirates SkyCargo’s flights have helped maintain food security in a number of import reliant markets while also providing an income stream to communities dependent on agricultural exports. It also played a key role in distributing relief supplies following the devastating Port of Beirut explosions in August.

Moving essential supplies to the world through Dubai

During 2020-21, Emirates rapidly scaled up its cargo operations and network to meet strong demand across markets.

Emirates SkyCargo added 19 “mini freighters” to its operations using modified 777-300ER passenger aircraft, and introduced new loading protocols to safely carry cargo using overhead bins and passenger seats.

Tapping on its pharma transport expertise and capabilities, Emirates SkyCargo set up a dedicated GDP-certified airside hub in Dubai for COVID-19 vaccines, and partnered with UNICEF and leading entities to facilitate the rapid transport of COVID-19 vaccines to developing nations through Dubai. In October, Emirates SkyCargo began transporting COVID-19 vaccines on its flights.

26 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information 09 Apr

Additional Emirates scales up its cargo network and operations information to transport food, medicines, and other essential commodities, with increased charter and flight operations to over 50 destinations using SkyCargo’s dedicated freighters as well as the bellyhold of wide- bodied passenger aircraft. 25 Jun Emirates introduces the first of its 19 cargo missions with modified Economy class -300ER “mini freighters”. These cabins that provide an additional 132m3 of are passenger aircraft used to operate cargo volume per flight.

50 million doses of COVID-19 vaccines transported to 50+ destinations We moved: Emirates SkyCargo and Dubai are 6 different types of vaccines at the centre of the global effort 220+tonnes of vaccines for vaccine distribution through Dubai Vaccine Logistics Alliance and 100+tonnes of syringes UNICEF partnerships

06 May 21 Jul Emirates SkyCargo optimises capacity on flights to Emirates SkyCargo marks the operation of 10,000 meet demand from main global production markets, cargo flights in just three months, keeping the by carrying cargo in the overhead bins and seats of world connected and the flow of essential goods flights operated using passenger aircraft, following a uninterrupted with the rapid restoration and full safety and operational review and approvals. expansion of its network to 100 destinations on six by July.

14 May Emirates SkyCargo reconnects six continents with scheduled cargo flights to 75 global destinations across the Middle East, Africa, Asia, Australasia, Europe and the Americas; in addition to charter operations to other cities.

27 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group 23 Sep Financial information Emirates SkyCargo signs an MoU with International Additional Humanitarian City to co-develop solutions for information humanitarian logistics and crisis relief operations, share expertise, and appoint Emirates SkyCargo as the carrier of first-choice for crisis relief efforts.

29 Sep Emirates Skycargo launches scheduled freighter operations to Guadalajara, Mexico’s technology hub.

15 Oct Emirates SkyCargo expands network to over 130 destinations, works with partners to maintain supply chains for food and other perishables during COVID-19.

22 Oct Emirates SkyCargo sets up world’s largest Good Distribution Practices (GDP)-compliant cargo hub in Dubai to handle COVID-19 vaccines.

28 ANNUAL REPORT 2020-21

Overview

Emirates dnata 15 Nov Group Emirates introduces A380 operations for select cargo Financial information charters, with the aircraft carefully and safely optimised to transport around 50 tonnes of cargo per flight. Its Additional information first mission transported medical supplies between Seoul and Amsterdam via Dubai. 23 Feb 16 Mar Emirates SkyCargo showcases its bespoke transport Emirates SkyCargo marks one year of passenger solutions for fresh produce at Gulfood 2021, an freighter operations, with over 27,800 cargo missions important tradeshow for the food industry, and one of completed on passenger aircraft over the past 12 the first significant in-person tradeshows held in the months, carrying 100,000 tonnes of essential supplies to region since the COVID-19 pandemic. customers around the world.

31 Jan Emirates SkyCargo is a launch partner of the Dubai Vaccine Logistics Alliance, which was formed to 04 Mar expedite the distribution of COVID-19 vaccines through Emirates SkyCargo gallops to a strong finish for horse Dubai to developing countries. transport in 2020, transporting over 1,100 of these magnificent animals in safety and comfort for various 16 Feb sports and equine events over the year with its bespoke facilities and services. Emirates SkyCargo partners with UNICEF on COVID-19 vaccine distribution. Under the Humanitarian Airfreight Initiative, Emirates will prioritise the transport of 14 Mar vaccines, essential medicines, medical devices and other Emirates SkyCargo and Dubai Civil Aviation Authority critical supplies to help fight the COVID-19 pandemic. sign an MoU to streamline processes, reduce wait times and create better efficiency in the transport of Dangerous Goods.

29 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group

Financial information

Additional information

Fleet and product

By April, Emirates had swiftly implemented an aircraft parking and reactivation programme to protect and maintain its fleet and ensure that aircraft can be readied for service at short notice. This contributed to Emirates’ agility and ability to quickly scale up capacity for cargo missions and deploy operations to markets dynamically.

With strong customer demand observed wherever travel restrictions are eased, Emirates was also able to quickly return its A380 to the skies.

During 2020-21, Emirates retired 9 Boeing 777s and 5 A380s. It also received delivery of 3 new A380 aircraft including one with its latest enhanced cabin interiors and the airline’s much anticipated Premium Economy cabin. Emirates also gradually restored its signature inflight services over the year, following constant updates and reviews of the latest pandemic control protocols.

30 ANNUAL REPORT 2020-21 01 Jul Overview Emirates re-starts its complimentary Chauffeur drive Emirates service in Dubai for its premium customers. Through dnata the year, as Emirates resumed regular scheduled flight Group operations across its network, it worked closely with 08 Dec Financial service partners to reinstate this signature service and information put in place enhanced COVID-19 measures as required Emirates receives its 116th A380, the first of three Additional by the various local health authorities. A380 aircraft to join its fleet in 2020. It was also the information first A380 delivery powered by sustainable aviation fuel (SAF). Emirates’ 117th A380 was subsequently 15 Jul delivered on 11 December. Emirates’ A380s return to the skies with scheduled 01 Mar operations to London Heathrow and Paris. By August, Emirates introduces a new option for customers flying scheduled A380 operations had resumed to Guangzhou in Economy Class to purchase empty adjoining seats, and Toronto, and a special one-off A380 service was offering them the ability to purchase more space operated to Clark. and privacy.

16 Dec Emirates re-opens its dedicated airport lounge in New York JFK airport for its premium customers and frequent flyers, with revised service protocols and bio-safety measures in place. By December Emirates had re- opened its airport lounges in Dubai, , Manchester and New York, in line with the recovery of its network operations.

18 Oct 22 Dec Emirates re-starts its A380 Onboard Lounge and Emirates receives its 118th A380. This latest aircraft 30 Mar Shower Spa services, redesigning its signature takes Emirates’ signature A380 experience to new Emirates becomes the first airline to operate an A380 onboard experiences in line with the latest heights with the unveil of Emirates’ new Premium to the new Terminal 1 at King Abdulaziz International bio-safety measures. Economy seats as well as enhancements across Airport in Jeddah. all cabins.

31 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information 10 Apr

Additional launches a new innovative food information delivery product, Foodcraft.

01 Jun Emirates Aviation University introduces Virtual Open Days, and live consultations for prospective students and their parents to connect with the faculty and obtain information on admissions.

Other business highlights

Across the Group, Emirates continued to progress on initiatives to position the business for the future. This includes the roll-out of the Emirates Partners Portal and Emirates Gateway, which are significant steps for the airline’s future engagement with travel trade partners, and the graduation of the first batch of cadet pilots from the Emirates Flight Training Academy.

Emirates also received awards and recognition for its industry-leading efforts to deliver the best customer experiences. 23 Jun

Emirates launches its “Dubai is Open” advertising campaign and demonstrates its readiness to support the latest protocols announced by the Dubai authorities to enable the city’s safe re-opening to business and leisure visitors from 7 July.

32 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information

Additional information 28 Sep Emirates introduces its Dubai Experience product in 04 Jul 14 markets which lets customers build personalised Emirates’ newest sponsorship partner, French itineraries on emirates.com around their flight booking, football club Olympique Lyonnais, play their debut tapping into a selection of over 120 and more match in special one-off jerseys with the message than 200 tourism activities around their flight bookings “Dubai is Open”. to Dubai.

28 Jul

Emirates’ First Class tops the Tripadvisor Travelers Choice 27 Jul 06 Oct Awards for the 4th consecutive year, winning the World’s Emirates launches its Emirates Partners Portal, a one- Best First Class and Middle East Best First Class. Emirates Emirates advances its distribution capabilities with the stop shop tailored for each market, allowing travel was also recognised as one of the Top 10 airlines in launch of its new, NDC-powered Emirates Gateway for industry partners to access the full range of information the world, in addition to winning Best Economy Class trade partners. on Emirates’ latest products, services and policies, and - Middle East and the overall Travelers’ Choice Major obtain technical support. Airline honour for the Middle East.

17 Sep Emirates Flight Catering announces its partnership with CCL Holdings to form Kosher Arabia, a dedicated production facility for kosher food expected to begin 11 Oct operations in early 2021. Emirates Skywards, the loyalty programme of Emirates and flydubai, marks 20 years of excellence, innovation and rewards, with 27 million enrolled members.

33 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information

Additional information

21 Oct Emirates wins Best Airline at the Business Traveller Middle East Awards 2020 for the 7th consecutive year, in addition to awards for Airline with the Best First Class, Airline with Best Cabin Crew and Best Airport Lounge in the Middle East.

05 Nov Emirates Group Security’s X-ray training, conducted by the Centre of Aviation and Security Studies (CASS), was certified by the Pakistan Civil Aviation Authorities, enabling the Group to conduct its own training for security staff based in Pakistan.

34 ANNUAL REPORT 2020-21

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Emirates dnata

Group 29 Nov Financial information Emirates is named the World’s Leading Airline in three Additional categories at the World Travel Awards 2020: World’s information Leading Economy Class, Airline Rewards Programme, and Airline Lounge - Business Class.

22 Dec 17 Dec Emirates earns the APEX 2021 Five Star Global Emirates Flight Training Academy celebrates the Official Airline RatingTM based on passenger feedback graduation of its first batch of cadets from its independently collected by APEX via its partnership with training programme. TripIt and validated and certified by an external auditor.

16 Nov

Emirates Group Security receives the prestigious 18 Feb Dubai Quality Gold Award (DQA), the city’s top accolade for excellence, cementing its position as a role model Emirates announces plans to offer exclusive content for organisation that meets and exceeds world-class travel agents on Emirates Gateway from July, marking a standards across its business areas, systems significant milestone in its distribution approach. and practices.

20 Dec Emirates wins Airline of the Year 2020 at the Aviation Business Awards for its resilience, agility and industry- leading initiatives to boost traveller confidence and customer experience during the pandemic. Airline President Sir Tim Clark was also honoured with the 18 Nov Lifetime Achievement Award for his contributions to the aviation industry over the course of his career. Emirates wins Best Airline and Best Long Haul Airline at the UK Travel Awards 2020.

35 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information

Additional information

dnata highlights

36 ANNUAL REPORT 2020-21

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Emirates dnata

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Financial information

Additional information

37 ANNUAL REPORT 2020-21

Overview 01 Apr Emirates dnata continues to support airlines in maintaining global dnata trade and the flow of essential goods by delivering best-in- Group class cargo services amid the pandemic. dnata teams handle Financial tens of thousands of PPE, life-saving medical supplies information and pharmaceuticals. Additional information 15 Apr dnata enhances services, improves processes, and trains employees to safely and efficiently handle passenger planes carrying cargo only. The company’s professionally trained staff achieve remarkable milestones by loading record amounts of up to 71 tonnes of cargo per flight onto airline customers’ passenger aircraft.

Airport operations

In line with the global industry, dnata’s Airport Operations were dramatically affected by the impact of the pandemic.

dnata suffered a 59% decline in the number of aircraft turns handled in the UAE and a similar 57% decline in its international operations. In contrast, cargo tonnage handled only saw a minor decline of 01 May 8%, reflecting the strength of the markets for health products and e-commerce. dnata’s skilled workforce take on new roles to support communities. In Singapore and Australia, dnata partners Our teams around the world had to rapidly adjust their processes to cope with the new operating with authorities and companies to temporarily redeploy environment. This included passenger aircraft being used for cargo-only loads both in the belly and the employees to organisations in industries facing a labour passenger cabin. At the same time, we adapted quickly to safeguard our workforce with the provision of shortage. Over 400 dnata employees are trained and start PPE, training, and revised operating procedures to reflect social distancing. working in other organisations.

dnata continued to invest in its product and in new facilities. This included the opening of a new state- of-the-art cargo facility in Manchester, and additional cargo capacity and infrastructure in Sydney, 15 May Brussels and Toronto. We also continued with building new cargo facilities in London Heathrow and dnata completes a mass disinfection programme of all Lahore, which are due to open in 2021. ground support equipment (GSE) in the UAE to protect its dnata continued to invest in innovative products and new technology and digitalisation, as well as employees and travellers. More than 11,500 pieces of GSE including busses, passenger steps, baggage dollies, and achieving industry certifications which validate its capabilities and places the business in a competitive pushback tractors are disinfected at the two Dubai airports. position to retain and win new contracts.

38 ANNUAL REPORT 2020-21

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Emirates 01 Jun dnata dnata launches innovative new products and services Group across its global operations to help airlines and Financial passengers navigate the new normal. The company information adds thermal screening and baggage disinfection to its Additional offering at various locations around the world. information 08 Oct 06 Jul dnata becomes the first ground handler to launch cool DUBZ, dnata’s leading baggage technology and dollies in its operations at Singapore . logistics company, adds home COVID-19 testing to Its new, high-tech containers are specially designed its offering, enabling customers to safely and quickly to serve the pharmaceutical industry with a closed complete the flight check-in process, and obtain a temperature-controlled system for the seamless medical certificate within 24 to 48 hours of testing, from delivery of temperature-sensitive goods between cargo any location in Dubai. warehouses and aircraft.

22 Jun

The International Air Transport Association (IATA) 25 Aug 20 Oct awards dnata the IATA Safety Audit for Ground Operations (ISAGO) Registration in and the US. GTA dnata, dnata’s joint-venture company in Canada, is dnata enters the Indonesian aviation market awarded a 5-year ground handling license at Vancouver through a partnership with PT UNEX Rajawali International Airport. The company will provide quality Indonesia (UNEX). The partners will enhance 01 Jul and safe ramp, passenger and cargo warehousing ground handling capacity in Indonesia dnata’s ground and passenger handling teams help services to airlines with a team of highly trained, by making joint investments in facilities, airline partners deliver on special missions across the customer-oriented aviation professionals. equipment and training. The collaboration globe. From London to Manila and Dubai, dnata’s launches in Jakarta with future expansion plans dedicated employees help thousands of families 07 Oct to other Indonesian airports. reunite by handling more than 2,600 repatriation marhaba expands its global network with the opening flights between March-July. of a new airport lounge at Ninoy Aquino International Airport in Manila. Located at Terminal 1, the newest marhaba lounge features comfortable seating for over 85 guests, a prayer room, a private meeting room and shower facilities.

39 ANNUAL REPORT 2020-21

Overview 16 Dec Emirates marhaba and Plaza Premium Group form a strategic dnata partnership to enhance their offering of airport lounges Group and meet and greet services around the world. The Financial partnership will see the two companies jointly engage information new and existing customers, enhance their product and Additional service offering and increase their global footprint. information

17 Dec For the 10th time, dnata is named Ground Support Services Provider of the Year at the 2020 Aviation Business Awards. dnata also receives a commendation for a ‘green turnaround’ which it completed in partnership with flydubai in 2019.

02 Nov For the 6th consecutive year, dnata is named Ground Handler of the Year at the 2020 Air Cargo News Awards. 30 Nov The recognition is a testament to the dnata teams’ dnata launches a smart, just-in-time freight handling relentless commitment to safety, innovation and platform across its Dubai operations. A cloud-based service excellence in the industry’s most challenging platform, Appointment and Dock Management (ADM) year on record. provides improved planning, efficient processing and 21 Jan end-to-end transparency of the entire cargo journey, 26 Nov delivering significant benefits for all freight forwarders. dnata opens a new, state-of-the art cargo complex, dnata becomes the first ground handler to complete dnata City North, at . Representing an a green aircraft turnaround in the United States. The 14 Dec investment of over GBP 30 million, the 150,000 sq ft facility milestone was accomplished with VivaAerobus, using allows the company to significantly expand and consolidate In partnership with Uveya and Helvetic Airways in only zero-emission ramp ground support equipment at its Manchester operations. , dnata successfully trials ultraviolet (UV) New York-JFK Airport’s Terminal 1. technology to sanitise aircraft cabins. During the 26 Jan cleaning process, an autonomous sterilisation robot emits concentrated UV-C light across the cabin, killing dnata is awarded Qantas’ ground handling contracts in over 99% of bacteria and pathogens in the air and on all Sydney, Melbourne, Brisbane and Townsville. surfaces in a few minutes, without using any chemicals.

40 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information 02 Feb Additional 01 Mar information Airport Handling SpA, dnata’s subsidiary in Italy, and The Emirates Group announces the appointment of Beta Trans ink a strategic partnership to provide a full Steve Allen as the Executive Vice President of dnata, range of cargo services to customers at Milan Malpensa responsible for all dnata’s businesses covering airport Airport (MXP). The two companies’ joint offering operations, catering and retail and travel across six includes high quality and safe ramp and cargo handling, continents. He will report to Emirates Group Chairman warehousing and road feeder services. and Chief Executive HH Sheikh Ahmed bin Saaed Al Maktoum after the retirement of dnata President Gary Chapman.

04 Feb 18 Mar dnata becomes the first global air services provider dnata launches safe, efficient and environment-friendly to adopt the International Air Transport Association’s baggage disinfection service at Singapore Changi (IATA) Dangerous Goods AutoCheck (DG AutoCheck) Airport. The company’s advanced equipment creates platform for the acceptance of dangerous goods an almost invisible mist that is 100% natural, non-toxic, shipments. IATA’s innovative solution helps dnata further bio-degradable and can effectively kill over 99.99% of enhance safety and improve efficiency in the handling bacteria and pathogens on all types of baggage. of dangerous goods at over 20 airports globally.

16 Feb dnata adds four high-tech ‘cool dollies’ to its Australian cargo fleet, becoming the first air services provider to offer a fully integrated, temperature-controlled cool chain for pharma and perishable shipments in the 08 Mar country. The specialised containers ensure the safe dnata’s teams handle the 5,000th cargo-in-cabin flight delivery of temperature-sensitive goods at Sydney in the UAE in 12 months. dnata trained more than 500 Airport and . Dubai-based employees to safely and efficiently handle passenger planes carrying cargo only.

41 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information

Additional information 01 Apr dnata adapts its catering products and services in line with demand, and increases its capability to serve health and aged-care industries to support relief efforts alongside local authorities. In several countries, dnata delivers meals for COVID-19 quarantine facilities, looking after those in compulsory isolation.

Catering & retail

dnata’s Catering division saw a drastic drop of 82% in meals uplifted in 2020-21 15 Jun due to the pandemic. Despite the dramatic decrease in flight activity, dnata’s dnata’s Australian catering team rolls out bio-digesters teams continued to deliver quality services to customers across various industries. across its facilities to further reduce food waste across the operations. The company’s equipment is capable of Through the year, the Catering division adapted its products and services to meet diverting 730 tonnes of food waste from landfills annually. new customer requirements, including the provision of meals for quarantine facilities. It also worked with local organisations in Australia, Ireland, Italy and the UK to support communities in need. 28 Jul dnata signs a ten-year airport concession agreement with It continued to build the business with strategic investments including the launch Sharjah International Airport (UAE), expanding its remit to of a dedicated inflight retail centre of excellence, and the opening of a second include relaunching and operating the airport’s transit hotel state-of-the-art catering facility in Dublin. dnata introduced new bio-digesters to and adding more F&B outlets in the airport’s new terminal. reduce food waste across its operations, and solar panels at its Singapore facility as part of its commitment to reduce its environmental footprint.

42 ANNUAL REPORT 2020-21

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Emirates dnata

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Financial information

Additional information 25 Nov 15 Sep dnata launches a dedicated inflight retail centre of dnata commences operations at its new, second excellence. The new specialist unit delivers tailor- catering unit in Dublin. The state-of-the art facility made onboard retail programmes and innovative quadruples dnata’s catering capacity in the Irish capital, solutions for airline customers, supporting them to enabling the company to deliver 40,000 quality inflight maximise onboard ancillary revenue and enhance meals a day for customers. passenger satisfaction.

10 Feb dnata underscores its commitment to the consistent delivery of the highest health and safety standards across its global catering operations, by adopting the new industry guidelines of the International Flight Services Association (IFSA) and the Airline Catering Association (ACA). The guidelines support the airline 12 Oct and airline catering industries worldwide as they take actions in response to the COVID-19 pandemic. dnata joins forces with iFLEAT and Thuisbezorgd.nl to trial a revolutionary pre-order inflight retail initiative in the . The three companies’ innovative 31 Mar solution brings high-end, creative meals and snacks to 01 Feb dnata launches a state-of-the-art inflight retail airline passengers around the world. technology solution in Sharjah, UAE, delivering a more signs an agreement to install more efficient, customer-centric retail journey for ’s than 7,600 solar panels across its facilities, capable passengers. of delivering enough renewable to power 1,100 four bedroom flats for a year and reducing our carbon dioxide emissions by over two million kilograms annually.

43 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information

Additional information

07 Jul dnata Travel Attractions launches, enabling customers to book on dnataTravel.com a wide range of UAE attractions to enhance their staycations or create itineraries from some of the best local experiences as demand for domestic travel increases.

Travel

dnata’s Travel division saw a revenue decline by 96% to AED 130 million, with the total underlying transaction value (TTV) dropping by 98% to AED 229 million. This was due to low travel demand and bookings caused by severe travel restrictions around the globe, in addition to unprecedented volumes of customer refunds.

Throughout an incredibly tough year with a fast-changing global travel environment, dnata’s Travel division focussed on investing in technology, streamlining operations and initiatives to support its customers. Across its travel 14 Jul brands, dnata helped its customers rebuild traveller trust by processing refunds The World Travel and Tourism Council (WTTC) and rebookings, and providing the latest travel information. awards Arabian Adventures the ‘Safe Travels’ stamp, recognising the company for achieving high health and Leveraging its established UAE presence and the re-opening of Dubai for safety standards across its operations. The ‘Safe Travels’ international travel, dnata launched initiatives to promote staycations, and its stamp was created to help travellers identify companies UAE-based tour operating division Arabian Adventures started new experiences. and destinations around the world that follow WTTC’s standardised health and hygiene protocols.

44 ANNUAL REPORT 2020-21

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Financial information

Additional information 04 Nov dnata Travel wins four accolades at the 2020 World 04 Nov Travel Awards Middle East, including the Middle Arabian Adventures picks up three awards at the East’s Leading Airline GSA 2020, Middle East’s Leading 2020 World Travel Awards Middle East becoming the Corporate Travel Company 2020, ’s Leading UAE’s Leading Destination Management Company Travel Management Company 2020, and ’s 2020, UAE’s Leading Desert Safari Company 2020 and Leading Travel Agency 2020 awards. UAE’s Leading Tour Operator 2020.

01 Oct dnata Travel commences a partnership with Visit to promote smooth and safe travel to its 22 Nov private island destinations with holiday packages including PCR testing, resort transfers, all-inclusive meal Gold Medal expands its operations into Oman through plans, added extras and exclusives. dnata also made it a partnership with OUA Travel. Oman-based trade possible for customers to directly book their transfers in agents are now able to promote and sell Gold Medal’s the Maldives via dnataTravel.com. wide range of travel products, offering a new world of options to their customers.

26 Oct In partnership with sports brand ASICS, Arabian Adventures joins the Dubai Fitness Challenge (DFC) and offers free, guided sightseeing runs across the city. 04 Nov The runs offer a unique experience for all fitness levels yalago is named the Middle East’s Leading Hotel Booking and abilities. Solutions Provider 2020 at the 2020 World Travel Awards Middle East.

45 ANNUAL REPORT 2020-21

Overview

Emirates 27 Nov dnata Destination Asia, a leading DMC with presence across 11 Group South Asian countries, comes fully under the dnata Travel Financial Group umbrella with the acquisition of the remaining stake. information

Additional information 30 Nov Arabian Adventures partners with the technology and gaming experts at Questo to launch Historical Dubai, an innovative self-guided walking tour. Combining gaming with city sightseeing, the tour teleports users inside a fictional story where they are the main character, giving hints in order to solve riddles and move around a city whilst finding out its hidden stories.

14 Dec Travelbag wins seven awards at the British Travel Awards 2020: Best Luxury Holiday Company, Best Family Holiday Company, Best Holiday Company to the Middle East, Best Holiday Company to Australasia, Best Holiday Company to the Indian Ocean, Best Holiday Company to Southeast Asia, and Best Holiday Company to Canada.

46 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information 01 Jan Additional information dnata Travel launches a new blog with content from its travel experts to support customers with extensive COVID-19 travel information and destination 07 Mar inspiration. This includes a new online resource Arabian Adventures receives the Travelife Partner award, “Where can I travel to from the UAE” that provides the leading international sustainability certification in UAE travellers with daily-updated information on the travel industry. The global recognition demonstrates travel requirements to plan their journeys to Arabian Adventures’ commitment to service excellence popular destinations. and sustainable tourism.

31 Mar dnata Representation Services announces its 30 Mar appointment as the exclusive representation partner for the mobility solutions platform, Karhoo across Arabian Adventures launches ‘The Perfect Evening by the United Arab Emirates, Saudi Arabia, , Arabian Adventures’, a new, high-end dining experience Bahrain, Oman and . The partnership sees dnata in the Dubai Desert Conservation Reserve (DDCR). Representation Services offer travel agents access The experience includes sundowners with canapes to Karhoo’s innovative services, enabling them to at a perfect sunset stop, and premium dining at the seamlessly book reliable airport transfers and offer 21 Jan newly-designed camp with a private chef and waiter, travellers a truly door-to-door experience. with some traditional Arabian surprises for guests along Travelbag and Sunmaster are recognised by customer the way. review platform Feefo. Sunmaster retained its Trusted Service Award, while Travelbag improved its status from Gold to Platinum, the highest level.

47 ANNUAL REPORT 2020-21

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Emirates dnata

Group

Financial information

Additional information The COVID-19 pandemic led to a drastic and unprecedented reduction of flights, travel demand and airport operations, which had a profound effect on our business and our people. During 2020-21, the Emirates Group had to implement redundancies across all parts of the business for the first time in its history.

Prior to the redundancies, the Group initially took other cost-saving measures aimed at preserving our financial position and mitigating the risk to our workforce.

Our people

However, as it became clear that recovery would take much longer than initially projected, the Group had to resize its workforce in line with reduced operational requirements. This was a very difficult decision, but a necessary one to address the critical immediate challenge and maintain the future viability of our Group.

Even with the significant headcount reductions, the Group was able to retain the vast majority of its employees and talent across the entire organisation. Impacted employees were provided with assistance and support, particularly those who were unable to repatriate to their home countries due to travel restrictions.

During this time, our colleagues showed remarkable resilience, humility and flexibility; supporting each other and the organisation in overcoming the unprecedented and dynamic challenges presented by the pandemic and its impact on our industry.

48 ANNUAL REPORT 2020-21

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Financial information

Additional information

49 ANNUAL REPORT 2020-21

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Emirates dnata

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Financial Health and wellbeing information Through the year, health and wellbeing remained a top Additional information priority for Emirates and dnata as the COVID-19 pandemic ravaged communities and lives around the world.

A special taskforce was set up to regularly review workplace and operational protocols as new medical information on COVID-19 became available. This taskforce included in-house physical and mental health specialists, as well as representatives from HR, Communications, Training and Operations.

This group met daily for the first four months of the pandemic, and continues to meet regularly to ensure the health and wellbeing needs of the work population are being met.

50 ANNUAL REPORT 2020-21

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Emirates During the height of lockdown in the UAE, the taskforce dnata organised volunteer teams to support employees STOP THE SPREAD 5 ways to avoid the spread of COVID-19 Group impacted by COVID-19 – from simple calls to check on Our Group Medical team quickly reoriented Financial colleagues’ wellbeing and assistance with groceries, to operations to move 60% of medical consultations information Keep your distance providing dedicated hotel capacity for those unable to for our workforce and their dependants onto 2m حافظ على التباعد الجسدي Additional self-isolate in their homes. telemedicine consultations, supporting the stay at Panatilihin ang ligtas na distansya mula sa ibang tao فاصلہ رکھیں information home and COVID-19 risk reduction agenda. It also दूसरे से दूरी बनाए रखᴂ set up response units to operate two call centres for Wear a mask وضع الكمامة our workforce: one to provide direct phone support Magsuot ng face mask ماسک پھنیں to those medically at risk from COVID-19 which also included our Med Assist inflight support service; and मासक पहने

a second one as an online information service to Clean your hands تنظیف الیدين address questions related to COVID-19, supported Linisin ang iyong mga kamay اپنے ھاتھوں کو صاف کریں by volunteers. अपने हाथ साफ रखᴂ

Don’t touch your face تجنب لمس الوجه Huwag hawakan ang iyong mukha اپنے چھرے کو نا چھویں अपना चेहरा न छुएं

Avoid gathering in groups تجنب التجمّعات Iwasang magtipon sa mga tao گروپس میں جمع ہونے سے گریز کریں समूहⴂ मᴂ इक絍ा न हⴂ

Visit groupworld for all the official COVID-19 updates for Emirates Group employees.

For most of the first quarter, non-operational In April, the Group started a daily email outreach to its employees were required to work from home to protect operational employees, many of whom were not only themselves, their families, their colleagues and the grounded but also in strict isolation or lockdown. These wider community. Employees in frontline operations emails gave employees pointers on self-development, also had to quickly adapt to new protocols including tips for physical and mental health and regular regular PCR testing and periods of home quarantine. industry updates to ensure they stayed connected. Recognising the strain these rapid changes may have Similar assistance was also offered to those employees on our people, additional support systems were quickly stranded in overseas destinations. Over the year, we deployed to supplement our established Employee At the start of 2020-21, Group employees were delivered a program of initiatives under our “Sehaty” Assistance Programme, and more coaching and being cared for under a system of welfare cells, who wellbeing programme covering mental and physical information on topics such as mental and financial would track and trace positive COVID-19 cases and health, for pandemic as well as non-COVID-19 related wellbeing were made available to our people. close contacts and ensure they were being well looked health risks and conditions. after in quarantine and isolation facilities.

51 ANNUAL REPORT 2020-21

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Financial information

Additional information In October, the Emirates Group got behind the annual Dubai Fitness Challenge, which encourages participants to engage in at least 30 minutes of physical activity each day over the 30-day campaign. Recognising that the ongoing pandemic may have a negative physical and mental health impact, the Group conducted mindfulness workshops to support the resilience of its workforce.

In June, as the first employees who had recovered In July, the company introduced new protocols In January, the Emirates Group set up COVID-19 from COVID-19 began to return to work, the Group and policies for safe and phased return of UAE- vaccination centres, providing its UAE-based workforce initiated a ‘welcome back’ campaign aimed at based employees to the workplace, and produced a with convenient access to vaccines that the UAE reducing stigma around COVID-19 and ensuring that comprehensive ‘Return to Work’ framework including government has made available for free to UAE returning colleagues were assimilated back into the a series of risk assessments and health guidelines. citizens and residents. By end of March, over 35,000 workforce quickly. Employees were also offered flexibility to work from employees had opted to vaccinate at one of the Group’s home to enable social distancing in the workspace. vaccination centres.

52 ANNUAL REPORT 2020-21

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Emirates dnata

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Financial information In February, Emirates operates its first flight with In April, 36 digital training modules were developed and rolled-out to help our cabin crew Additional fully vaccinated employees onboard and across information supporting ground operations, illustrating the comply and maintain their knowledge in Safety & progress of the UAE’s vaccination drive including Emergency Procedures. amongst essential aviation workers. In June, we launched a Role Resumption Learning Site for Emirates Airport Service teams in Dubai and around our network, as well as Ground Handling Agents, to ensure our frontline teams are ready to restart operations with over 8,000 knowledge checks completed.

Learning and development In September, we launched our Group Learning In October, Emirates Group wins the ‘Best & Talent (L&T) Portal which is a one-stop shop for Nationalization Initiative in the Private Sector’ award Reflecting our culture of continuous learning, many employees to easily access the suite of L&T solutions at the GCC GOV HR Awards 2020, for its efforts in employees who were temporarily stood down, or designed to support their development expanding the range of internal and external learning unable to return to regular duties during COVID-19 and development programmes for UAE Nationals. lockdowns, took up self-development opportunities made available by the Group. In February, the Group launched a Learning and Talent Professional Skills Portfolio, a collection of During 2020-21, employees undertook over 10,700 programmes and virtual workshops to help employees hours of facilitated learning, utilised resources such as achieve success at work. LinkedIn Learning with nearly 5.5 million videos viewed, and completed 785,000 modules on our inhouse training portal, My Learning Zone.

53 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group

Financial information

Additional information Making our world better

We aim to make a positive impact on our industry and communities. We engage in programmes that support entrepreneurship and innovation in aviation, travel and tourism. Through our sponsorship of world-class events around the world, we bring our customers and fans closer to their passion, and help inspire young people in their pursuit of sports or culture.

Our communities

Through the Emirates Airline Foundation and dnata4good, we work with community organisations to make our world better. The airline foundation is a non-profit charity organisation that aims to improve the quality of life for underprivileged children, and dnata4good brings people from across the Group to help build schools, protect wildlife and provide humanitarian aid.

54 ANNUAL REPORT 2020-21

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Emirates dnata

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Financial information

Additional information

55 ANNUAL REPORT 2020-21

Overview

Emirates 13 Aug dnata

Group Emirates launched an airbridge between Dubai and Lebanon and dedicated over 50 flights to deliver Financial information emergency relief supplies in the aftermath of devastating explosions at the Port of Beirut. Additional information

27 Sep Emirates continues its Beirut relief efforts through the generosity of its customers, with the transport of over 160 tonnes of vital aid supplies. Over 12,000 donations from 140 countries enabled the airline to uplift even more humanitarian cargo into Lebanon.

01 May dnata teams up with authorities, organisations and 01 Apr partners to provide ingredients, meals and packaged goods to local communities in need. More than 200,000 dnata adapts its catering products and services in wholesome meals are donated to various organisations line with demand and increases its capability to serve in Australia, Ireland, Italy and the UK to enable them to health and aged-care industries to support relief efforts support those who need it the most. alongside local authorities. In several countries, dnata 27 Sep delivers meals for COVID-19 quarantine facilities, Emirates partners with “It’s a Penalty” campaign, to looking after those in compulsory isolation. 07 Jul shine a spotlight on the issue of human trafficking. dnata donates three pieces of cargo handling equipment to Dubai-based International Humanitarian 22 Nov City (IHC), the largest humanitarian hub in the world, to The Emirates Airline Foundation marks UN World support the organisation in facilitating rapid relief and Children’s Day by highlighting the work and first responses to crises at a global level. The equipment achievements of NGO partners who are dedicated to is deployed at IHC’s Dubai warehouses. helping disadvantaged children live better through access to education and safe shelter.

56 ANNUAL REPORT 2020-21

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Emirates dnata

Group 12 May Financial information Emirates releases its brand video “When this is over” Additional featuring its cabin crew delivering positive and inspiring information messages of their travel aspirations and personal goals after the pandemic lockdown.

07 Mar 31 Aug Emirates Team New Zealand wins the 36th America’s Emirates gets “Back in the Game” with brand presence Cup. The team, sponsored by Emirates since 2004, at the US Open and the French Open, two of the four successfully defended sailing’s oldest and most Grand Slams in world tennis. prestigious trophy in Auckland.

Sponsorships 15 Dec Emirates’ long-standing investment in sponsorships Emirates supports the safe restart of global sporting around the world stems from its belief that sports events in the UAE with the provision of brand and the arts are vital to vibrant societies, and sponsorship and air transportation services for high have the power to inspire, and bring people and profile competitions including the DP World Tour communities together. Championship and ‘Race to Dubai’, the European Tour’s season ending finales. During year, Emirates worked with its sponsorship 27 Mar partners to support the safe restart of sporting The Dubai World Cup meeting is successfully held at events, and on initiatives to motivate and encourage 30 Dec Meydan Racecourse with 117 horses from 11 countries communities impacted by lockdowns. competing for titles and a total prize pool of US$ 26.5 Emirates teamed up with its key football sponsorship million. Through its long-standing sponsorship of partners, Arsenal, Real Madrid and AC Milan, on a the event, Emirates has helped the Dubai World Cup campaign to surprise deserving fans and reconnect evolve into one of the world’s top racing challenges them with their favourite clubs. that draw the attention of millions of enthusiasts around the globe.

57 ANNUAL REPORT 2020-21

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Emirates dnata

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Financial information Additional The Group’s Environmental Framework and Strategy focusses resources on three information key areas: emissions reduction, responsible consumption, and wildlife and habitat conservation.

This year, dnata began embedding the environmental framework across its broad- spanning Travel businesses. It aims to continue improving its own operational footprint, and also to provide dnata Travel customers with environmental information, products and services, to make better travel choices.

Our planet

Two of its tour operating businesses, Arabian Adventures and Destination Asia achieved recognition for their sustainable tourism efforts. Destination Asia Indonesia achieved the Travelife certified award. The Travelife standard covers the ISO 26000 Corporate Social Responsibility themes, including environment, biodiversity, human rights and labour relations; and is in full compliance with the UN supported Global Sustainable Tourism Criteria. Arabian Adventures, located in the UAE, achieved Travelife Partner level, bringing the number of businesses across the dnata Travel Group to five who have achieved Travelife Partner level or above.

58 ANNUAL REPORT 2020-21

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Emirates dnata

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Additional information

59 ANNUAL REPORT 2020-21

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Emirates dnata Group Reducing emissions Financial information Emirates and dnata saw significant drops in flight and ground operations due to the COVID-19 pandemic, Additional information particularly in the first half of the year. This is reflected from Stockholm, with the support of Swedavia’s Biofuel in the 2020-21 environmental data which shows a Incentive Programme. Flights from Oslo also began 67.9% drop in fuel burn and emissions from aircraft operating on SAF under the Norwegian government operations, but a 6.5% drop in overall fuel efficiency SAF mandate policy. due to reduced loads compared to 2019-20. In 2020-21, Emirates joined the World Economic Reduced handling activity on the ground led to a Forum’s Clean Skies for Tomorrow coalition, which is 54.1% reduction in emissions from UAE based supporting a transition to sustainable aviation fuels as ground operations. part of a pathway towards carbon-neutral flying.

Through the year, Emirates continued to explore and implement initiatives to improve fuel efficiency and reduce emissions across its operations where operationally feasible. Some of its most significant initiatives in this regard include: its long-standing operation of flexible routings in partnership with air navigation service providers to create the most efficient flight plan for each flight; and the use of advanced data SAF is one of the main opportunities to reduce analytics, machine learning and AI in its fuel monitoring aviation’s carbon footprint in the longer term, along and aircraft weight management programmes. with aircraft and engine technology, and Emirates This year, Emirates received its first A380 powered by supports the development of a commercially viable sustainable aviation fuel (SAF) in December, and earlier supply chain for SAF. The airline continues to explore in August it uplifted 32 tonnes of SAF for its flights partnership opportunities in the few destinations on its network where SAF is being made available, and is reviewing longer-term prospects for technologies such as power-to-liquid fuels.

60 ANNUAL REPORT 2020-21

Overview

Emirates dnata Well-maintained aircraft also contribute to efficient Emirates complies with all regulatory obligations, Group flight operations. Emirates uses a dry wash technique which for carbon emissions now include CORSIA, the Financial information to clean its aircraft – a method which saves 11 million European Emissions Trading System (EU ETS), litres of water annually, and keeps its aircraft cleaner Swiss ETS, and UK ETS. However, Emirates strongly Additional information for longer, reducing fuel consumption because of less advocates that there should be no overlap between accumulation of dirt, and reduces the number of times these and other schemes or charges addressing the aircraft has to be washed annually. emissions from international aviation.

dnata’s commitment to utilising electric ground support equipment (GSE) in its operations where possible, has driven its GSE investments in recent years particularly at its busiest hubs such as Dubai International, New York JFK, and Malpensa in Milan. This year, dnata marked

Emirates is also one of the first airlines to utilise GE’s In response to the reduced flight operations over the 360 Foam Wash system for its engines, with the first past year dnata used the opportunity to retire its older, trials and subsequent roll-out of the programme in less efficient GSEs, representing approximately 10% 2017. To date, over 200 engines have been washed with of its fleet. dnata also rolled out a telematics system this innovative system, delivering fuel savings and an across its Dubai-based operations. The system will track

estimated reduction of CO2 emissions by 61,400 tonnes. equipment deployment and driver behaviour, which will aid improvements in fleet management, and reduce fuel Emirates completed its first audited annual emissions a new milestone, by successfully completing the first consumption and associated emissions. report for the Carbon Offsetting and Reduction green aircraft turnaround in the US, utilising its zero- Scheme for International Aviation (CORSIA), covering emission ramp GSEs at New York JFK airport. all of its international emissions for the year 2019, and at the end of this financial year was finalising the In Dubai, dnata’s airport operations began planning for audited report for 2020. CORSIA is an integral part of the electrification of ramp operations at Al Maktoum the aviation industry’s global approach to reducing International airport (DWC) by installing charging emissions, alongside technology, sustainable infrastructure. This is part of a broader initiative to make aviation fuel, infrastructure enhancements, and DWC an environmentally-friendly ground handling operational efficiency. operation airport.

61 ANNUAL REPORT 2020-21

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Emirates dnata

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Financial information

Additional information 01 Sep dnata became the first Middle East ground handler to 26 Nov operate a ‘fully electric’ A380 capable pushback tractor. dnata becomes the first ground handler to complete The tractor was dispatched to two Emirates aircraft a green aircraft turnaround in the United States. The as part of a successful trial to assess its suitability for company’s dedicated team ensures a smooth and safe deployment in Dubai. Once deployed on a permanent turnaround of a VivaAerobus A320 aircraft using basis the tractor will deliver significant reductions in only zero-emission ramp GSE at New York-JFK Airport’s carbon emissions and noise. (JFK) Terminal 1.

11 Aug 08 Dec dnata airport operations in Dubai launches a new Emirates receives its 116th A380, the first of three ride-hailing app “Moove” for its airside employees A380 aircraft to join its fleet in 2020. It was also the to easily shuttle between facilities using shared first A380 delivery powered by sustainable aviation vehicles, improving asset utilisation and its fuel (SAF), uplifted in Hamburg. environmental footprint.

01 Feb dnata Singapore signs an agreement to install more than 7,600 solar panels across its facilities, capable of delivering enough renewable energy to power 1,100 four bedroom flats for a year and reducing our carbon dioxide emissions by over two million kilograms per year. 01 Oct Emirates starts on greener road journeys in Dubai with biofuel-powered crew transport buses.

62 ANNUAL REPORT 2020-21

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Emirates dnata Consuming responsibly 03 Mar 15 Oct Group Pandemic containment measures unfortunately On World Wildlife Day, the Emirates Group held an Emirates Flight Catering rolls out advanced food waste Financial regressed efforts to reduce single-use plastic across online employee event to promote awareness and information management system, leveraging artificial intelligence Emirates and dnata’s operations, however this remains share updates on its efforts in the area of wildlife and machine learning to monitor and control food Additional an area of focus for the medium to longer term and and habitat conservation. Experts from the Dubai information waste, and meet its target of reducing food waste by many waste and plastic reduction measures put in place Desert Conservation Reserve (DDCR), and Wolgan 35% in its central operations. before the pandemic continue. Valley provided updates on their respective flora and fauna rehabilitation programmes. The Wolgan Valley wildlife and habitat restoration story is a particular Wildlife and habitat conservation achievement, following the bushfires which devastated Emirates and dnata continued efforts to support the many areas of Australia in the early part of 2020. conservation of wildlife and habitats, and protect the Emirates SkyCargo also provided an update on its biodiversity of our planet for future generations. anti-wildlife trafficking initiatives.

COVID-19 accelerated the digitisation of processes at 15 Mar customer touchpoints and also within the business, reducing paper consumption and waste. In addition, Emirates marks 5 years of engagement with significant investments in new technology systems The Royal Foundation on the United for Wildlife were made by both Emirates Flight Catering and initiative, being one of the first signatories of the dnata Catering this year, to reduce food waste across Buckingham Palace Declaration in 2016. dnata their operations. became the first air services provider to sign the declaration in 2019.

15 Jun dnata’s Australian catering team rolls out bio-digesters across its facilities to further reduce food waste across 28 Jul the operations. The company’s equipment is capable of Dubai Desert Conservation Reserve, supported by the diverting 730 tonnes of food waste from landfills. Emirates Group since its establishment more than 20 years ago, releases its first annual report for 2019-20.

63 ANNUAL REPORT 2020-21 The performance indicators below cover the Group’s business operations from its hub, Dubai including Emirates Flight Catering operations and Overview other Group entities registered in the UAE and where Emirates or dnata have management control during the financial year ended 31 March

Emirates 2021. It does not include our hotel operations, retail operations under Emirates Leisure Retail, operations of our Group entities (fully or partially dnata owned) registered outside the UAE or ground operations at locations outside the UAE. References to Scope 1 and 2 emissions below are based on definitions from the Greenhouse Gas Protocol – revised edition Group

Financial information

Additional Priority Performance indicator Unit 2020-21 2019-20 % change information Aircraft fuel Fleet age years 7.3 6.8 7.4 consumption, fuel efficiency, and Jet fuel (total fleet including training aircraft and wet-leased freighters) tonnes 3,494,233 10,879,616 -67.9 1, 2 CO2 efficiency Aviation gasoline (training aircraft) tonnes 231 165 40.0 Sustainable aviation fuel tonnes 77 - - Combined fuel efficiency (total fleet excluding training aircraft and wet-leased freighters) L/tk 0.346 0.325 6.5

Combined CO2 efficiency (total fleet excluding training aircraft and wet-leased freighters) kg CO2 / tk 0.858 0.805 6.6

Sustainability performance

Aircraft noise and Fleet cumulative margin to Chapter 4 noise standards EPNdB -11.80 -11.71 -0.8 local air quality Fleet cumulative margin to Chapter 4 noise standards % -7.00 -6.98 -0.02 % points Nitrogen oxide (NOx) emissions (landing and take-off cycle) tonnes < 3,000 ft 5,379 13,126 -59.0 Carbon monoxide (CO) emissions (landing and take-off cycle) tonnes < 3,000 ft 3,027 8,913 -66.0 Unburnt hydrocarbons (UHC) emissions (landing and take-off cycle) tonnes < 3,000 ft 309 955 -67.6 Fleet margins below regulatory limits for NOx % -10.68 -10.52 -0.16 % points Fleet margins below regulatory limits for CO % -57.26 -57.03 -0.23 % points Fleet margins below regulatory limits for UHC % -65.61 -65.27 -0.34 % points

Fuel Jettison Events 3 Total events 3 10 -70.0 Jettisoned fuel tonnes 94 328 -71.3

64 ANNUAL REPORT 2020-21

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Financial Priority Performance indicator Unit 2020-21 2019-20 % change information

Additional Vehicle and Diesel litres 19,521,565 39,622,561 -50.7 information ground service equipment fuel Petrol litres 4,838,615 13,943,692 -65.3 consumption

Electricity Electricity consumption MWh 366,525 460,321 -20.4 and water 4 Water consumption ML 1,661 2,352 -29.4

Materials Waste (landfill) tonnes 10,636 69,304 -84.7 and waste Material recycled tonnes 3,885 7,555 -48.6

CO2 emissions 5 Scope 1 Aircraft operations tonnes 11,042,736 34,380,099 -67.9 Ground operations tonnes 63,934 139,330 -54.1 Total Scope 1 emissions tonnes 11,106,670 34,519,429 -67.8 Scope 2 Electricity tonnes 153,940 193,335 -20.4 Total Scope 2 emissions tonnes 153,940 193,335 -20.4

Total CO2 emissions tonnes 11,260,610 34,712,764 -67.6

Energy Energy from fuel consumption TJ 154,357 479,756 -67.8 consumption Energy from electricity consumption TJ 1,319 1,657 -20.4 Total energy consumption TJ 155,676 481,413 -67.7

1 Passengers carried includes actual uplift excluding crew on duty. Kilometres flown is the planned actual ground distance from the Emirates flight planning system, corrected for the effect of wind.

2 Passenger and Freighter fuel and CO2 efficiency not reported this year as a result of the impacts of the pandemic on operations, e.g. use of passenger aircraft as freighters, repatriation flights, etc. 3 Fuel is only jettisoned in an in-flight emergency situation when it is necessary to lower the aircraft weight to ensure a safe landing. 4 Excludes some facilities located within Dubai airports due to lack of metered data.

5 CO2 emissions are calculated using the US Environmental Protection Agency (EPA) Emission Factors for Greenhouse Gas Inventories, the ICAO standard CO2 emissions factor for jet fuel 65 (3.16 kg CO2 per kg of Jet A/Jet A-1 fuel), and the DEWA grid emissions factor for electricity in Dubai. ANNUAL REPORT 2020-21 Emirates network Overview

Emirates Emirates operates flights to 157* destinations in 82 countries, offering industry-leading passenger dnata and cargo air transport services. Group

Financial We connect the world to, and through, our hub information in Dubai. Additional information *includes temporary suspensions due to COVID-19 pandemic.

Emirates destinations

NORTH AMERICA EUROPE MANCHESTER CAPE TOWN DUBAI INTERNATIONAL AGUADILLA AMSTERDAM MAASTRICHT CASABLANCA DUBAI WORLD CENTRAL BOSTON ATHENS MILAN CONAKRY ERBIL CHICAGO BARCELONA MOSCOW DAKAR JEDDAH COLUMBUS BIRMINGHAM MUNICH DAR EL SALAAM KUWAIT DALLAS/FORT WORTH BOLOGNA NEWCASTLE DURBAN MEDINA FORT LAUDERDALE BRUSSELS NICE ELDORET MUSCAT KABUL GUADALAJARA BUDAPEST OSLO ENTEBBE RIYADH KARACHI HOUSTON COPENHAGEN PARIS HARARE TEHRAN KOCHI LOS ANGELES DUBLIN PORTO JOHANNESBURG KOLKATA MEXICO CITY DÜSSELDORF PRAGUE KHARTOUM ASIA KUALA LUMPUR NEWARK EDINBURGH ROME LAGOS AHMEDABAD LAHORE NEW YORK FRANKFURT SHEREMETYEVO LILONGWE BALI MALE ORLANDO GENEVA ST. PETERSBURG LUANDA BANGKOK MANILA SAN FRANCISCO GLASGOW STOCKHOLM LUSAKA BEIJING SEATTLE HAMBURG VENICE BENGALURU NEW TORONTO ISTANBUL VIENNA NAIROBI CEBU OSAKA WASHINGTON ISTANBUL - WARSAW OUAGADOUGOU CHENNAI PESHAWAR SABIHA GOKCEN ZARAGOZA SEYCHELLES CLARK PHNOM PENH SOUTH AMERICA LARNACA ZURICH TUNIS PHUKET BOGOTA LIEGE SEOUL AUSTRALASIA BUENOS AIRES LISBON AFRICA MIDDLE EAST GUANGZHOU SHANGHAI ADELAIDE QUITO LONDON GATWICK ABIDJAN HANOI SIALKOT AUCKLAND RIO DE JANEIRO LONDON HEATHROW ABUJA BAGHDAD HO CHI MINH CITY SINGAPORE BRISBANE SANTIAGO LONDON STANSTED ACCRA BAHRAIN HONG KONG TAIPEI CHRISTCHURCH SAO PAULO LYON ADDIS ABABA BASRA HYDERABAD THIRUVANANTHAPURAM MELBOURNE VIRACOPOS MADRID ALGIERS BEIRUT ISLAMABAD TOKYO HANEDA PERTH MALTA CAIRO DAMMAM JAKARTA TOKYO NARITA SYDNEY

Emirates presence NORTH AMERICA EUROPE CAPE TOWN AJMAN SHARJAH KRABI AUCKLAND BOSTON COPENHAGEN DAR ES SALAAM AL AIN UMM AL QUWAIN MALE BRISBANE CLEVELAND FRANKFURT JOHANNESBURG DUBAI PHUKET CAIRNS NASHVILLE KINGSTON MWANZA CITY FUJAIRAH ASIA SAMUI LAUNCESTON NEW YORK NICOSIA SEYCHELLES MUSCAT BANGKOK SINGAPORE MELBOURNE PITSBURGH RAS AL KHAIMAH COLOMBO PERTH WASHINGTON AFRICA MIDDLE EAST SALALAH GALLE AUSTRALASIA SYDNEY ARUSHA ABU DHABI SOHAR HUA HIN ADELAIDE WOLGAN VALLEY 66 ANNUAL REPORT 2020-21

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Additional information

67 ANNUAL REPORT 2020-21 dnata network Overview

Emirates dnata’s business footprint in airport operations, catering and travel services, span 184 cities and dnata airports across the globe. Group

Financial We aim to be the world’s most admired air information services provider. Additional information

dnata presence NORTH AMERICA SOUTH AMERICA BELFAST MADRID AL KHOBAR ATLANTA ARACAJU BERGAMO MANCHESTER AMMAN AUSTIN BELEM BELGRADE MILAN LINATE BAHRAIN BALTIMORE BOA VISTA BIRMINGHAM MILAN MALPENSA DAMMAM BOSTON BRASILIA BOLOGNA NAPLES DUBAI INTERNATIONAL CHICAGO CAMPINA GRANDE BRINDISI NEWCASTLE DUBAI WORLD CENTRAL DALLAS/FORT WORTH CAMPINAS BRISTOL OLBIA ERBIL DETROIT CURITIBA BRUSSELS PALERMO FUJAIRAH EL PASO FLORIANOPOLIS BUCHAREST PISA JEDDAH GRAND RAPIDS FORTALEZA CAGLIARI PRAGUE JUBAIL HOUSTON ILHEUS CARDIFF PRESTON MARKA INDIANAPOLIS JOAO PESSOA CHELTENHAM PRESTWICK MUSCAT LAREDO JUAZEIRO DO NORTE CHESTER ROME FIUMICINO NIZWA LOS ANGELES MACAPA CORK SANDYCROFT RABIGH HO CHI MINH PUNE LUBBOCK MACEIÓ DONCASTER SHANNON RIYADH HONG KONG QUETTA MCALLEN MANAUS DUBLIN SOFIA SALALAH ISLAMABAD SINGAPORE MILWAUKEE NATAL EAST MIDLANDS SOLIHULL SEEB JAKARTA TOKYO NASHVILLE PETROLINA EDINBURGH ST. PETERSBURG SHARJAH KABUL YOGYAKARTA NEW YORK PORTO ALEGRE FRANKFURT SWINDON TAIF KARACHI NEWARK PORTO SEGURO FLORENCE TURIN YANBU KOH SAMUI AUSTRALASIA ONTARIO RECIFE GENEVA VENICE KOTA KINABALU ADELAIDE ORLANDO RIO DE JANEIRO GENOA VERONA ASIA KUALA LUMPUR AUCKLAND PHILADELPHIA SALVADOR GLASGOW WARSAW BALI KYOTO BRISBANE SAN DIEGO SANTAREM HALIFAX WINCHESTER BANGKOK LAHORE CAIRNS SANFORD SAO LUIS KINGSTON ZURICH BENGALURU LANGKAWI CANBERRA SAN FRANCISCO SAO PAULO KNUTSFORD CEBU MANILA / MAKATI COOLANGATTA TAMPA TERESINA LAMEZIA TERME AFRICA CHIANG MAI MULTAN DARWIN TORONTO LEEDS CAPE TOWN CLARK MUMBAI MELBOURNE VANCOUVER EUROPE LONDON GATWICK DANANG PATTAYA PERTH WASHINGTON ALGHERO LONDON HEATHROW MIDDLE EAST DELHI PENANG SYDNEY WICHITA AMSTERDAM LONDON STANSTED ABU DHABI FAISALABAD PESHAWAR TOWNSVILLE BARI LUTON AL AIN HANOI PHUKET

68 ANNUAL REPORT 2020-21

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Emirates dnata

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Financial information

Additional information

69 ANNUAL REPORT 2020-21

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Emirates dnata

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Financial information

Additional information

71 Emirates financial commentary 80 dnata financial commentary 86 Emirates independent auditor’s report 92 Emirates consolidated financial statements 142 dnata independent auditor’s report 146 dnata consolidated financial statements

70 ANNUAL REPORT 2020-21

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Financial information

Emirates financial commentary dnata financial commentary

Emirates consolidated financial statements dnata consolidated financial statements

Additional information

Emirates financial commentary

71 ANNUAL REPORT /RVV SURÀWDWWULEXWDEOHWRWKH2ZQHU /RVV SURÀWPDUJLQ in % Revenue in AED bn Revenue split in % 2020-21 in AED bn 96.0 1.5 3.0 91.2 91.0 0.9 1.1 83.8 57% Overview 1.3 2.8 0.9 1.1 Cargo Emirates 37% Passenger (including dnata 30.2 excess baggage) Group (65.6) (20.3) 6% Financial Non-transport information 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Emirates financial commentary 2SHUDWLQJ ORVV SURÀWin AED bn Return on Owner's funds in % Revenue in AED m 2020-21 2019-20 % change 2020-21 dnata as % of financial 6.4 revenue commentary 4.1 3.8 7.9 2.4 2.6 2.4 3.5 Passenger 11,012 75,587 (85.4) 36.4 Emirates Cargo 17,106 11,207 52.6 56.6 consolidated financial Excess baggage 218 478 (54.4) 0.7 statements Transport revenue 28,336 87,272 (67.5) 93.7 dnata (15.0) consolidated (95.3) Sale of goods 1,334 2,745 (51.4) 4.4 financial Hotel operations 296 584 (49.3) 1.0 statements 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Others 264 394 (33.0) 0.9 Additional information Non-transport revenue 1,894 3,723 (49.1) 6.3

Total 30,230 90,995 (66.8) 100.0

The impact of the COVID-19 pandemic on been to preserve cash, reduce costs and and AED 8.5bn worth of pandemic-driven Profitability the global economy and travel industry maximise revenue through innovative refund requests were honoured. Emirates’ financial results nose-dived this has been unprecedented. Governments products and services. year and we reported a loss of AED 20.3bn worldwide enforced travel restrictions, Being an international airline with no (2019-20: profit of AED 1.1bn). This was due lockdowns and quarantine measures to We took various measures to navigate domestic network, passenger capacity to operating losses of AED 15bn (2019-20: curb the spread of the virus, causing a through this difficult period, which measured in ASKMs dropped by 82.6% operating profit of AED 6.4bn) caused by steep drop in demand for air travel. 2020- included; availing various relief and compared to the prior year – the airline’s the diminished revenue line and high fixed 21 was by far the worst year in the history support schemes throughout our network, steepest decline ever. In contrast, SkyCargo costs. of the aviation and travel industries. The implementing numerous cost saving - our cargo division - performed better and future also remains uncertain, with most measures, delivering efficiencies across responded to global demand by ensuring analysts suggesting that it will take years to operational areas, reducing discretionary international connectivity for essential Revenue recover to pre-crisis levels. capital expenditure, securing additional goods and supplies such as PPE, medical Due to the limited operating capacity, working capital facilities and negotiating equipment, pharmaceuticals and food our revenues plummeted by 66.8% to Without a shadow of doubt, and similar waivers & deferral of payments for items. AED 30.2bn (2019-20: AED 91.0bn). to industry trend, this was the most liabilities. Regrettably, and despite our best Our emphasis on operating a young fleet Transport revenue, which forms nearly challenging year in Emirates’ operating efforts to cut costs and preserve cash, we 94% (2019-20: 96%) of Emirates’ revenue, history. Although we are not new to crises, had to take the decision to right-size our continued with 3 new A380s delivered this year. We also unveiled our Premium dropped by 67.5% to AED 28.3bn (2019-20: and our endurance has been sound to workforce and let people go, for the first AED 87.3bn). challenges and shocks, it is the sheer time in our history. Economy product to our customers duration and uncertainty surrounding the through our latest A380 aircraft. Non-transport revenue, comprising sale containment of the virus that had a severe During this time of crisis, our ultimate of consumer goods, catering operations, Owner, the Government of Dubai, injected By the end of the year, we had reconnected impact on our operations this year. As a the world with over 120 destinations. We sale at F&B outlets and hotel operations, result, Emirates recorded a loss of AED an equity of AED 11.3bn which helped us contributed 6.3% (2019-20: 4.1%) of our meet all our financial obligations. welcomed 6.6 million passengers on- 20.3bn, its first in the last 33 years. board our flights, one-ninth of our normal revenue and dropped to AED 1.9bn (2019- Despite being financially onerous, we passenger numbers, and carried 1.9 million 20: AED 3.7bn) due to lower, pandemic- The top priorities for the management ravaged trading activity this year. during this fragile environment have delivered on our commitment to customers tonnes of cargo.

72 ANNUAL REPORT Available seat kilometres (ASKM) in bn Revenue passenger kilometres (RPKM) in bn AncilliaryAncilliary revenue in AED bbnn Cargo carried in tonnes‘000 2020-21 and as a % of passenger revenue 390.8 292.2 300.0 288.1 368.1 377.1 367.2 276.6 3.1 2,577 2,623 2,659 2.9 2,389 Overview 2.5 2.3 1,873 Emirates 4.1 3.7 3.7 dnata 3.3 3.3

Group 64.1 28.4 0.4 Financial information 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Emirates Ancilliary revenue financial Ancilliary to passenger revenue % commentary Passenger numbers in millions Passenger seat factor in % Aircraft departures* in thousands Cargo carried in tonnes‘000 dnata and as a % to total 205 financial 56.1 58.5 58.6 56.2 202 203 commentary 189 548 23% Emirates consolidated 77.5 76.8 78.5 75.1 1,158 financial statements 79 1,841 62% 77% dnata 6.6 44.3 715 consolidated 38% financial statements 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 19-20 20-21

Additional *includes both passenger and cargo flights. Passenger operations Freighters information

Passenger revenue Air service connections completely The positive news of vaccine development Cargo revenue The COVID-19 outbreak forced the airline collapsed in April and May of 2020 when and testing spurred bookings for the SkyCargo exhibited strong performance to temporarily suspend several routes Dubai International Airport (“DXB”) was holiday season in December and we saw as revenue increased by 52.6% to AED across the network. The result was a under an 8-week lockdown subject only to capacity go up to 26% by the end of Q3, 17.1bn (2019-20: AED 11.2bn), resulting drop of 82.6% in our passenger capacity repatriation flights being operated to assist compared to the same period last year, from the pandemic induced global demand (measured in ASKMs) and 76.3% in UAE’s expat community move back safely and an accelerated recovery was being for essential goods and medical supplies passenger flights compared to 2019-20. to their home countries. forecasted. However, the discovery of new that was met by our high quality product virus strains dampened travel demand Further, low travel confidence and the Q2 saw a gradual opening of borders offerings. Cargo volumes in tonnes prevailing hassle-bound travel environment again in Q4. ASKMs for Mar’21 were decreased by 21.6% and stood at 1,873 and destinations started being operated, almost 40% of Mar’20 (start of pandemic) impacted RPKMs which plunged 90.2% and albeit with limited capacity, and under a thousand (2019-20: 2,389 thousand) while stood at 28.4bn (2019-20: 288.1bn). but remained in line with Jan and Feb’21 yield per FTKM nearly doubled compared New Normal travel experience – in which in absolute terms. The annual seat factor creating a safe travel environment for our to last year to 175 fils per FTKM (2019-20: As a result, our core passenger revenue of 44.3% (2019-20: 78.5%) constantly 94 fils per FTKM). (including excess baggage) reduced by customers was the utmost priority. remained under pressure. Our premium 85.2% to AED 11.2bn (2019-20: AED 76.1bn). class seat factor was healthy at 42.8%. Strategically, cargo operations were consolidated at DXB from the start of the Prioritising customer convenience during Movement in ASKM in comparison to previous year in % and monthly seat factor in % year as we temporarily ceased operations this year of crisis, decisions were taken at our previous hub at the Al Maktoum to provide; flexible options on our ticket 58% International Airport (“DWC”) to optimise 55% validity and refund policies, low-cost PCR logistics. 49% tests and global cover for COVID-19 related 43% 42% 44% 45% 39% medical costs, amongst others. To cater to the increased cargo demand, 36% 38% 37% 32% 40% we transformed 19 of our B777 passenger Our customer loyalty programme, aircraft to mini-freighters and introduced Skywards, pioneered new ways to offer 22% 24% 26% 26% 23% new loading protocols to safely carry cargo 17% 19% incremental benefits to its members, such 11% using the overhead bins and passenger as allowing a longer duration to retain elite 1% 1% 3% seats. One-third of our passenger aircraft tier status. were used for cargo operations this year. Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Our ancillary offerings, including in-flight upgrades and paid seats, generated ASKM as % of PY Seat factor revenue of AED 0.4bn (2019-20: AED 3.1bn). 73 ANNUAL REPORT Available tonne kilometres (ATKM) in bn Revenue tonne kilometres (RTKM) in bn YieldLQÀOVSHU57.0 Destinations in numbers* 2020-21 156 157 158 157 157 42.3 63.3 41.3 39.5 Overview 60.5 61.4 58.6 39.3 229 222 Emirates 219 213 dnata 24.8 12.5 204 Group

Financial information 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Emirates *includes temporary suspensions due to COVID-19 financial pandemic. commentary OveraOverallll anandd bbreakevenreakeven lloadoad ffactoractor in % Number of aircraft Geographical revenue in % dnata financial 77.2 commentary 28% East Asia and Australasia 67.2 66.8 67.4 Emirates 65.0 94 102 109 115 113 26% Europe consolidated 65.2 66.4 14% Americas financial 64.5 63.4 statements 12% West Asia and Indian Ocean dnata 163 166 161 155 146 10% Africa consolidated 50.5 financial 10% Gulf and Middle East statements 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Additional Breakeven Overall A380 B777 information

Cargo revenue (continued) Being a key player in the secure and rapid Total capacity and load factor reduced number of destinations this year, Our freighter network, served by dedicated global distribution of COVID-19 vaccines, With global connectivity at the heart of our and that too with a limited capacity, as wide-body freighters, passenger-freighters our readiness to handle the logistical business model, we prioritised the rebuild other destinations remained temporarily and mini-freighters reached over 120 complexities of distributing the vaccine and restoration of our network throughout suspended following the restrictions put in touchpoints globally. We increased globally was demonstrated by creating the year. The airline closely monitored place by the respective countries. a dedicated airside cargo hub in Dubai. our presence in South America and market conditions and adjusted its Overall yield Russia through the introduction of new More than 50 million vaccine doses were operations dynamically while governments destinations; Guadalajara, Bogota and transported by us during the year. tightened and relaxed travel restrictions to With optimum pricing of the limited capacity flown supported by excellent Sheremetyevo. SkyCargo continued to deliver innovative keep the pandemic in check. cargo performance, overall yield improved and bespoke solutions for its customers, Cargo carried by freighters was 62% The pandemic significantly impacted our to 229 fils per RTKM (2019-20: 222 fils per supporting the food industry, animal (2019-20: 23%) of the total weight carried, overall capacity and flown numbers this RTKM). an increase of 39% pts. from last year. transport, sporting events, and other critical year. Overall capacity, measured in ATKMs, ATKMs and FTKMs for freighter operations economic activity. It also played a key role rested at 24.8bn (2019-20: 58.6bn) for Revenue distribution in distributing relief supplies following the almost doubled compared to previous this year, a significant decline of 57.7% - Transport revenue declined in all our devastating Beirut Port explosions year. However, belly capacity was down on impacted by lower passenger activity partly markets in line with the overall drop in in August. account of a reduced passenger network, made good by enhanced cargo operations revenue. However, country-wide lockdowns resulting in a decrease of 18.6% in total run through transformed passenger and and travel restrictions impacted Europe cargo FTKMs. mini freighters. Revenue generating load and Americas more severely and their measured in RTKMs stood at 12.5bn (2019- contributions to our geographically diverse 2020-21 2019-20 % change 20: 39.5bn), a slump of 68.3%. Overall revenue base fell by 2.7% pts. and 2.5% load factor was at 50.5% (2019-20: 67.4%) pts. respectively. Drops in revenue share Cargo capacity FTKM million 9,758 11,986 (18.6) and our break-even load factor jumped to of these regions were compensated by Cargo yield fils per FTKM 175 94 87.5 77.2% (2019-20: 63.4%), due to high fixed increases elsewhere, mainly East Asia Cargo carried tonnes‘000 1,873 2,389 (21.6) costs and significant reduction in revenues. and Australasia, due to increased cargo operations in response to market demand. Passenger operations 715 1,841 (61.1) The highly unpredictable and volatile environment meant we connected with a Freighters 1,158 548 111.1

74 ANNUAL REPORT Total operating costs in AED bn Total cost movement in AED bn Key operating costs asas %% ofof totaltotal costs 2020-21 95.3 4.3 88.2 85.6 13 82.6 19.9 25 28 29 Overview 32 10.5 10 11 39 Emirates 3.7 1.3 10 21 45.9 90.9 dnata 65 61 51.2 58 Group 50 48

Financial information 16-17 17-18 18-19 19-20 20-21 Total costs - Employee Jet fuel Direct Sales and Others Total costs - 16-17 17-18 18-19 19-20 20-21 2019-20 costs operating costs marketing 2020-21 Emirates Depreciation, amortisation and impairment financial Jet fuel Others commentary Total costs in AED bn 2020-21 2019-20 % change 2020-21 FueFuell volumevolume in mimillionllion bbarrelsarrels as % of Unit cost LQin ÀOfilsVSHU$7.0 per ATKM dnata and average price in USD per barrel total cost financial 92.8 commentary 88.1 90.3 87.3 Depreciation, amortisation and 177 impairment 19.7 19.4 1.5 38.5 84 Emirates 76 Employee costs 7.8 12.1 (35.5) 15.2 consolidated 68 146 141 57 55* 139 financial Jet fuel 6.4 26.3 (75.7) 12.5 132 statements Direct operating costs 5.9 16.4 (64.0) 11.5 151 27.3 Sales and marketing 1.8 5.5 (67.3) 3.5 dnata consolidated Other operating costs 4.3 5.9 (27.1) 8.4 97 98 97 96 financial Total operating costs 45.9 85.6 (46.4) 89.6 statements 16-17 17-18 18-19 19-20 20-21 Net finance costs 4.2 4.8 (12.5) 8.2 16-17 17-18 18-19 19-20 20-21 Additional Fuel price Fuel volume Other financial losses 1.1 0.5 120.0 2.2 Unit Cost Unit cost excluding jet fuel information *hedged price Total costs 51.2 90.9 (43.7) 100.0

Total costs These measures included; rightsizing the Further, fuel hedged at USD 55 per barrel Sales and marketing Our total costs for the year were AED 51.2bn workforce in line with demand projections limited the impact of drop in prices to 6.9%. Sales and marketing costs reduced by (2019-20: AED 90.9bn), showing a sizeable (our employee count was down 32.0% as The longer than expected duration of the 67.3% to AED 1.8bn (2019-20: AED 5.5bn) reduction of 43.7% from the previous year. at the year end as compared to previous pandemic environment resulted in lower due to decrease in volume-driven costs, year), imposing salary cuts, enforcing a fuel uplifts compared to our forecasts and Depreciation, amortisation and cuts on discretionary advertisement spend recruitment freeze and offering unpaid hence, hedge ineffectiveness of AED 1.1bn and the cancellation/postponement impairment leave to staff. Employee costs are presented was recognised in the consolidated income of various events as part of COVID-19 Depreciation, amortisation and impairment net of AED 105m worth of credits received statement and disclosed under ‘Other containment measures. charges now form 38.5% - the largest from various government-run support financial (losses)/ gains - net’. component – of our total costs (2019-20: schemes across our network. Other operating costs 21.4%). The marginal increase in expense Direct operating costs Other operating costs comprise facilities this year reflects the net impact of; a) Jet fuel and hedge ineffectiveness Direct operating costs include aircraft related spend, IT costs and corporate depreciation on 3 A380 aircraft delivered Jet fuel costs decreased to AED 6.4bn related handling, in-flight catering, overheads, which dropped by 27.1% to AED this year and the full year impact of 6 (2019-20: AED 26.3bn), a drop of 75.7%. overflying, landing & parking, crew layover 4.3bn (2019-20: AED 5.9bn). These costs aircraft delivered last year, b) reduced Fuel uplifts were down 68.8% due to and aircraft maintenance expenses which were managed through various cost-saving charge due to 14 aircraft retired this year, reduced operations. reduced by 64.0%, in line with the decrease measures. in overall capacity. and c) impairments of AED 710m. Included Unit cost per ATKM in this charge is AED 500m of specific Employee strength (in numbers) 2020-21 2019-20 % 2020-21 as Our unit cost per ATKM increased to impairment pertaining to certain aircraft change % of total and related assets. These aircraft are not 177 fils (2019-20: 141 fils) due to a more UAE expected to return to service before the pronounced drop in ATKMs compared to end of their useful life or lease term within Cabin crew 14,372 21,821 (34.1) 35.2 operating costs, part of which are fixed in the next financial year. The remaining Flight deck crew 2,964 4,461 (33.6) 7.3 nature, mainly fleet related depreciation charge of AED 210m is on the property, 2,289 3,284 (30.3) 5.6 and amortisation. plant and equipment, right-of-use and Others 9,510 12,711 (25.2) 23.3 Net finance costs intangible assets, primarily belonging to Total - UAE 29,135 42,277 (31.1) 71.4 Net finance costs reduced by 12.5% to AED our Australian group entities. Overseas stations 4,169 5,241 (20.5) 10.2 4.2bn (2019-20: AED 4.8bn) primarily on account of a drop in benchmark interest Employee costs Total - airline 33,304 47,518 (29.9) 81.6 Employee costs at AED 7.8bn (2019-20: rates and a reduction in total borrowings AED 12.1bn) were down 35.5%. Various cost and lease liabilities. Subsidiary companies 7,497 12,515 (40.1) 18.4 control measures were initiated this year to 75 curb the impact of the pandemic. Closing employee strength 40,801 60,033 (32.0) 100.0 ANNUAL REPORT Capital expenditure in AED bn Total equity in AED bn 2020-21 37.0 37.7 12.3 35.1 10.6 Overview 11.3 23.6 Emirates 7.4 20.1 Assets iinn AED bbnn EEquityquity anandd liliabilitiesabilities inin AED bnbn dnata 172.1 172.1 4.7 Group 151.8 23.6 151.8 Financial 2.0 1.1 1.1 0.6 0.3 information 20.1 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Emirates Primary Secondary financial commentary 124.8 dnata 111.0 99.6 financial Aircraft, engines 95.9 Total equity movement in AED bn commentary and parts*

Emirates Other non-current Equity consolidated assets 5.7 0.2 financial 20.3 19.6 Cash assets Non-current statements 17.9 23.6 20.1 48.9 liabilities 11.3 35.8 dnata 20.2 15.1 consolidated Other current Current liabilities financial 7.5 7.8 assets statements 19-20 20-21 As at Loss for the year Capital Fuel hedge Others As at 19-20 20-21 31 March Contribution reserve 31 March Additional * includes aircraft and engine related overhaul 2020 2021 information events and pre-delivery payments.

Statement of financial position Capital expenditure Equity Liabilities Emirates’ balance sheet stood strong with Robust cost control measures on capital Due to the reduction in demand, a highly Total liabilities reduced by 11.3% to AED total assets of AED 151.8bn (2019-20: AED expenditure resulted in a curtailed diminished revenue line and significant 131.7bn (2019-20: AED 148.5bn). 172.1 bn), although reduced by 11.8% investment in our fleet and customer operating losses, our bottom line Derivative mark-to-market exposures compared to last year. focused initiatives for the year. Capital plummeted to a loss of AED 20.3bn. 86.0% intensive spend amounted to AED 5.0bn of our opening equity was eroded as a swung by AED 7.2bn, of which fuel Assets (2019-20: AED 11.9bn). consequence. derivatives comprised AED 6.8bn. This reduction was due to gains of AED 3.5bn Non-current assets of AED 128.9bn (2019- Primary capital expenditure comprising Given the severity of the pandemic which recorded as fuel prices continued to inch 20: AED 144.4bn) were down 10.7% or AED aircraft spend (including pre-delivery far exceeded any other economic downturn closer to our hedged prices throughout 15.5bn due to depreciation, amortisation payments, aircraft, engines and parts), faced by the airline, our ultimate Owner the year (and exceeded by year end) and and impairment charges of AED 19.7bn major aircraft & engine maintenance costs - the Government of Dubai - injected settlements of AED 3.3bn made on maturity partly offset by additions of AED 5.5bn in and spare engines represented 93.3% or equity of AED 11.3bn to assist the airline dates. Deferred revenue dropped by AED property, plant and equipment, right-of-use AED 4.7bn of the annual capital spend sustain operations and meet its financial 4.3bn, a result of COVID-19 related refunds and intangible assets. (2019-20: 95.0% or AED 11.3bn). This spend obligations. With this support, Emirates’ made to customers and lower sales. includes addition of 3 A380s delivered this equity stood at AED 20.1bn (2019-20: Current assets, excluding cash assets, Borrowings and lease liabilities were down improved to AED 7.8bn from AED 7.5bn year. Our Premium Economy product was AED 23.6bn) by the end of the year. Other unveiled through the A380 delivered in significant movements in equity included by AED 2.6bn on account of repayments, due to a positive movement in MTM of fuel and lease re-measurements due to reduced derivatives by the year end. Cash assets December. a fuel hedge reserve credit of AED 5.7bn owing to the increase in fuel prices and interest rates offset by draw downs of credit remained healthy at AED 15.1bn (2019-20: Investments were also made on incremental lines and additional financing obtained for AED 20.2bn) but dropped from last year the recognition of hedge losses in the safety requirements to rebuild travel consolidated income statement. new aircraft deliveries. due to significant ticket refund payments confidence. We continued to enhance our made to customers this year and minimal digital capabilities to refine customers’ Other liabilities decreased by AED 3.4bn as cash inflows from operating activities due experience and improve connectivity with a result of the decline in operating activity. to highly depressed trading activity. our travel trade partners. This year we launched the Emirates Partner Portal - a one-stopshop for industry partners to gain access to Emirates products.

76 ANNUAL REPORT Sources of funding over last 10 years in % 2020-21

Overview 39% Leased Fleet information 36% Commercial Financing Emirates Aircraft Total as at Owned* Leased Total as at Change since Future Options 13% EXIM/ECA Guaranteed Financing 31 March 31 March 31 March deliveries dnata 6% Bonds 2021 2020 2020 Group 5% Equity A 380-800 113 56 57 115 (2) 5 -

Financial 1% Islamic Financing B 777-300ER 125 66 59 134 (9) - - information B 777-200LR 10 6 4 10 - - - Emirates B 787-9 - - - - - 30 - financial commentary B 777-X - - - - - 115 61 Number of aircraft $YHUDJHÁHHWDJH in months dnata A 350-900 - - - - - 50 - financial 88 commentary 268 270 270 81 Passenger 248 128 120 259 (11) 200 61 73 259 259 68 B777-200LRF 11 - 11 11 - - - Emirates 63 consolidated Freighters 11 - 11 11 - - - financial statements Total aircraft 259 128 131 270 (11) 200 61 dnata Note: One A319 aircraft is used for Executive jet charters. consolidated *Includes aircraft acquired on secured financing. financial statements 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Additional information

Fleet acquisition and financing term travel demand. Our order book has through term loans, revolving credit and on track with its long term financing 200 aircraft – 5 A380s, 50 A350-900s, 115 short term trade facilities. strategy. We started the financial year under B777-8x/9x and 30 B787-9, excluding COVID-19 restrictions on air travel at their options and purchase rights. Emirates has already received committed There is an on-going and unrelenting peak with passenger services suspended, offers to finance through Export Credit focus on working capital optimisation and and only cargo operations generating The airline took delivery of 3 A380s and Agency backed term loans, two aircraft plans have been put in place to manage positive cash flows. In order to manage simultaneously retired 10 of its older deliveries due in the forthcoming year the refinancing and repayment of funding the significant cash burn and mitigate aircraft during the financial year and will continue to tap the bank market taken at the start of the crisis. Additionally, the impact on liquidity, management (9 B777-300ER and 1 A380). Further, for further liquidity in 2021-22 to provide new credit lines and facilities have been implemented several strategies to 4 A380s were taken out of operations a cushion against the potential impact of set up to ensure appropriate liquidity is save costs, reduce discretionary capital as they are currently grounded and COVID-19 on cash flows in the near term. maintained to mitigate any short term expenditure, improve the working capital not expected to be used before their Notable support from aviation lessors and shocks in case the crisis continues for cycle and raise additional funding from scheduled retirement dates within the financing partners has been a testament longer. diverse geographical sources. next financial year. Emirates continues to to the financial community’s confidence in maintain a young fleet age of 7.3 years (88 the strength of the airline’s business model, To further bolster the liquidity, With robust cash reserves at the beginning months) (2019-20: 6.8 years (81 months)), and mid to longer term prospects. management is in regular discussions with of the financial year, an equity injection substantially lower than the industry various counterparties in exploring a mix of of AED 11.3bn by the Government of average, consisting of 146 Boeing aircraft Having raised more than AED 200bn over financing structures which provide funding Dubai, and various cost saving & liquidity and 113 twin-deck A380 aircraft. the last 10 years, Emirates continues to from diverse sources, maintain a balanced improvement measures, we were able to maintain a well-diversified and evenly maturity profile and optimise overall meet all our financial obligations on time. During the year, Emirates raised a total spread financing portfolio. Tapping into borrowing costs. of AED 14.5bn in financing for aircraft various sources of funding, both in terms of Although the future outlook is uncertain, and general corporate purposes funded structure and geography, Emirates remains Emirates remains optimistic about long

77 ANNUAL REPORT CasCashh assets in AED bbnn anandd CasCashh assets to Cash (used in)/generated from operating Operating cash margin in % EBITDA margin in % Split2020-21 total revenue in % activities in AED bn 22.8 20.4 28.1 backOverview 20.2 27.0 17.0 14.1 25.0 24.5 15.7 Emiratesas 2 15.1 10.4 10.5 24.8 12.3 15.3 10.8 graphsdnata 49 Group 22 22 18 17 15.0 (4.5) (14.4) Financial information 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Emirates Cash assets Cash assets to revenue % financial commentary &DVKÁRZ in AED bn EBITDA anandd ddebtebt service in AED bnbn dnata financial commentary 4.5 16 14 12 13 Emirates 3.5 2.9 consolidated 3 financial 20.2 25.9 25.9 25.0 25.0 24.0 24.0 23.4 statements 15.1 23.4 21.8 21.8 21.2 21.2 20.6 20.6 20.7 20.7 19.0 19.0 dnata 4.6 consolidated 4.6 financial Cash assets Net cash Net cash Net cash Cash assets statements as at used in used in generated from as at 16-17 17-18 18-19 19-20 20-21 31 March 20 operating investing ÀQDQFLQJ 31 March 21 Additional activities activities* activities EBITDA Debt service No. of months information *net of movement in short-term bank deposits.

Cash position Excluding the impact of AED 8.5bn EBITDA and debt service in lease liabilities with 9 tails returned and of pandemic-driven refunds made to the associated liabilities fully paid off, and Cash assets Cash profit from operations, excluding customers (which were largely funded working capital movements (EBITDA) at ii) lower interest rates this year. EBITDA after Our cash assets which include short term through strong opening cash reserves), AED 4.6bn (2019-20: AED 25.9bn) was debt service payments was AED 16.1bn bank deposits closed at AED 15.1bn cash from operating activities was AED 82.2% lower compared to last year as the (negative), however, the equity injection (2019-20: AED 20.2bn), down by 25.4%. 4.0bn positive. drop in revenues outpaced the decrease and term loans enabled us to service our Our cash reserves will continue to remain in costs. debt. under pressure given the current business Cash used in investing activities of AED environment and unpredictable global 3.5bn primarily relate to additions of Despite a significant strain on cash assets, EBITDA equated to 3 months (2019-20: 13 economic comeback. aircraft, engines and parts. we continued to honour all our financial months) of payments for this pandemic- stricken year. We remain confident to meet Supported by the equity injection of AED obligations. Debt service payments The cash assets to total revenue percentage amounted to AED 20.7bn (2019-20: AED our financial commitments as they fall due increased to 48.9% (2019-20: 22.0%). 11.3bn, we generated a net cash surplus of in the coming year and beyond through AED 2.9bn from financing activities after 23.4bn), a drop of 11.6% compared to However, this was due to lower revenues previous year. This was due to; i) decrease proactive working capital management and hence is not comparable to prior years. meeting all our debt obligations on time. and utilisation of available credit lines and While this is outside of our target range of facilities. 25% +/- 5%, we expect to stabilise this as 2020-21 2019-20 2018-19 2017-18 2016-17 soon as the demand returns to normal. Lower EBITDA and a reduced top line EBITDA in AED bn 4.6 25.9 24.0 25.0 21.2 resulted in the drop of EBITDA margin Cash flow movement Less: Debt service to 15.0% (2019-20: 28.1%), a 13.1% pts. Our efforts in managing working capital Repayment of borrowings and decline from last year. lease liabilities (16.6) (18.5) (7.0) (6.0) (10.0) helped us restrict the cash used in The payments shown in the table (including operating activities to AED 4.5bn (2019- Repayment of operating lease those of previous years) exclude refinancing 20: inflows of AED 22.8bn), a much better rentals - - (11.7) (11.7) (10.5) of certain borrowings and lease liabilities at position from what we anticipated at the Interest paid (4.1) (4.9) (1.9) (1.3) (1.3) commercially better rates. The related cash beginning of the year. Total (20.7) (23.4) (20.6) (19.0) (21.8) inflows and outflows are reported at their Negative cash flows from operating gross values in the consolidated statement activities also led to worsening of our of cash flows and in the relevant notes to operating cash margin to negative 14.4%, a EBITDA after debt service in the consolidated financial statements. AED bn (16.1) 2.5 3.4 6.0 (0.6) 78 drop of 39.2% pts. from last year. ANNUAL REPORT 'HEWUHSD\PHQWSURÀOH* in AED bn DebtDebt collateralisationcollateralisation in AED bnbn Revenue by currency in % 2020-21 USD Overview 32.1 172.1 172.1 EUR 151.8 151.8

139.1 139.1 24% Emirates 21.8 12.8 122.7 122.7 INR 110.2 110.2 20.5 107.6 107.6 18.4 16.9 36% CNY dnata 10.9 9.5 12.9 8.5 7.0 2% GBP Group 6.3 3% 5% PKR Financial 10.9 11.0 9.9 9.9 6.6 19.3 7% JPY information 21-22 22-23 23-24 24-25 25-26 27 and 19-20 20-21 beyond 9% 14% Others Lease liabilities Bonds and term loans Emirates Total assets Secured assets Total debt *including future interest. financial commentary Net debt to equity ratio in % Effective interest rate on borrowings Cash asset to net debt in % Currency impact in AED m dnata 459.0 and lease liabilities in % financial commentary 381.2 4.6 1,495 Emirates 4.0 25.4 3.8 40 consolidated 22.5 financial 3.2 3.0 (2,458) statements 21.5 (190) 18.8 dnata 237.9 16.3 consolidated 216.4 209.8 financial statements 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 19-20 20-21 Additional Revenue Cost information

Debt Debt repayment profile Financial risk management Currency risk Emirates’ borrowings and lease liabilities As part of our strategy, we strive to achieve Jet fuel price risk We proactively manage currency exposures reduced by AED 2.6bn to AED 107.6bn a stable repayment profile by obtaining generally over a period of up to 12 months We are exposed to volatility in the price of (2019-20: AED 110.2bn). This was primarily debt with periodic instalments as opposed depending on market conditions by jet fuel. To manage this risk, we hedge part due to repayments of AED 19.3bn for to bullet payments. This enables us to using various hedging solutions including of our highly probable forecast purchases amortising bonds, lease liabilities and term service our debt through operating cash forward contracts, currency swaps and of jet fuel up to 24 months in advance loans, partially offset by; a) drawdowns flows and the surplus cash is used for natural hedges. Nearly 36% of our transport using commodity futures, options and of committed credit lines for working investment purposes. This year, however, revenues and over 92% of our total costs swaps, as and when opportunity arises and capital and loans taken on delivery of 3 was an anomaly as we relied on an equity this year were denominated in US Dollar or depending on the market conditions. new aircraft, amounting in total to AED injection and drawdowns of credit lines currencies pegged to USD. 14.5bn, and b) interest expense and lease to meet our debt obligations. As at the Interest rate risk Due to reduced operations, the movements additions of AED 3.2bn. Further, favourable reporting date, almost 91% of our debt was Emirates is exposed to the effects of in exchange rates had an insignificant movements in benchmark interest rates amortising in nature. fluctuations in the prevailing interest rates adverse impact of AED 150m on Emirates’ and COVID-19 related lease waivers on borrowings and investments. In order operating results (2019-20: adverse impact reduced our lease liabilities by AED 1.4bn, Cash assets to net debt ratio to manage interest rate risk, we target of AED 1bn). whereas unfavourable currency and other A reduction in cash reserves led to a balanced portfolio approach and use movements pushed the liabilities up by worsening of our cash assets to net debt prudent hedging solutions such as interest The following six currencies accounted AED 0.4bn. ratio to 16.3% (2019-20: 22.5%). rate swaps. After taking into account for close to 40% (2019-20: 38%) of our transport revenue this financial year: Net debt to equity ratio Debt collateralisation the impact of interest rate swaps, almost 62% of our net debt was on fixed interest Our net debt to equity ratio increased to Of the total debt of AED 107.6bn, AED Currency average rate (in AED) rate basis with the balance 38% being on 459.0% (2019-20: 381.2%) due to lower 46.6bn represents lease liabilities which floating interest rates. 2020-21 2019-20 % change equity and cash assets compared to are supported by right-of-use assets. From EUR 4.301 4.077 5.5 the remaining debt, 73.5% or AED 44.8bn last year. The effective interest rate for borrowings INR 0.050 0.052 (4.1) is secured against property, plant and and lease liabilities reduced to 3.8% CNY 0.544 0.526 3.3 equipment while the balance AED 16.2bn (2019-20: 4.6%) due to lower benchmark is adequately covered against the carrying interest rates. GBP 4.830 4.658 3.7 value of unencumbered assets, mainly PKR 0.024 0.023 3.8 property, plant and equipment. JPY 0.035 0.034 2.7 79 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group

Financial information

Emirates financial commentary dnata financial commentary

Emirates consolidated financial statements dnata consolidated financial statements

Additional information

dnata financial commentary

80 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group

Financial information

Emirates financial commentary dnata financial commentary

Emirates consolidated financial statements dnata consolidated financial statements

Additional information

81 ANNUAL REPORT /RVV SURÀWDWWULEXWDEOHWRWKH2ZQHU /RVV SURÀWPDUJLQ in % Total revenue in AED bn Geographical revenue in % 2020-21 in AED m 1,445 9.9 10.1 10.0 14.8 1,210 1,317 4.2 14.4 13.1 66 68 70 72 62 Overview 618 12.2 Emirates dnata 5.5

Group (32.9) Financial (1,821) 34 32 30 28 38 information 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Emirates International UAE financial commentary 2SHUDWLQJ ORVV SURÀWin AED m Return on Owner's funds in % 3URÀW ORVV PRYHPHQWLQ$('P dnata financial 68618 commentary 1,224 1,196 1,278 19.3 20.3 19.2 1,821 507 783 556 Emirates 7.6 consolidated financial 9,249 4,680 statements dnata (24.6) consolidated 1,903 financial (1,857) statements 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 3URÀW 7RWDOUHYHQXH (PSOR\HH 2WKHU COVID-19 ,PSDLUPHQWV Loss 2019-20 FRVWV RSHUDWLQJ UHOLHIV 2020-21 Additional FRVWV information *adjusted for the impact of COVID-19 reliefs and impairments, as applicable.

Following the declaration of COVID-19 various businesses were conducted and, on quality, safety, people and customers. We activity. These losses were aggravated by as a global pandemic in March 2020, the where necessary, steps were taken to either went above and beyond to offer refunds (or impairments of; a) AED 766m recognised on travel industry came to a standstill and was restructure certain businesses or exit them re-bookings) to our travel customers. Across goodwill & other intangible assets (2019-20: pushed into a crisis never witnessed before. completely. other lines of business, we adapted to the AED 193m), and b) AED 122m on trade and Governments worldwide enforced travel dynamic environment by implementing new other receivables (2019-20: AED 139m). The restrictions, lockdowns and quarantine We also took measures to reduce employee protocols and introduced innovative products cost reduction measures taken in response measures to curb the spread of the virus, costs - the most significant component of and services in response to new customer to the fall in revenue are gradually filtering causing demand for air travel and associated our operating costs. Regrettably, numerous expectations and business opportunities. through to the bottom line. services to plunge to new lows. 2020-21 ended positions had to be made redundant. Where We continued to drive efficiencies across all up being the worst year in the history of the possible, staff were put on furlough in line businesses in processes and resources. Total revenue (including other aviation and travel industries. with relevant local regulations. A general recruitment freeze was implemented, and Despite the progress on vaccination programs, operating income) As a global air and travel services provider, employment rewards were cut. We also utilised the market outlook remains challenging Our total revenue declined by AED 9.3bn dnata too was seriously impacted and could financial support schemes, introduced by and unpredictable. Significant risks remain to AED 5.5bn (2019-20: AED 14.8bn) as not escape the financial devastation caused by various governments, to mitigate the impact around new variants of the virus, future plans COVID-19 choked demand across all our lines the pandemic. All four core lines of business of the COVID-19 outbreak on our bottom line of governments to open for travel, and the of business. – international airport operations, UAE airport and cash assets. restoration of travellers’ confidence. However, operations, inflight catering and travel services we will remain steadfast and agile to get Other operating income decreased by AED – saw significant decline in revenues leading Our nimble response to the pandemic has through this period of uncertainty and deliver 337m to AED 200m (2019-20: AED 537m) as to an unprecedented fall of 62.5% in total helped us maintain adequate cash reserves at for our customers, people and shareholder for the prior year numbers included the one-time revenue for dnata. the year-end which will, to an extent, see us years to come. gains from the divestment of Accelya and the through the ongoing challenges. We firmly recovery of a legal claim in the US. With such a material drop in the top line, believe that we have laid a good foundation we took extraordinary steps to protect our for a profitable growth path as soon as the Profitability Overall, the share of geographical revenue balance sheet, preserve cash and reduce demand recovers. dnata registered a loss attributable to the from operations outside the UAE decreased costs. Non-critical expenditure (both capital Owner of AED 1,821m, a swing of AED 2,439m by 10% pts. to 62.0% as COVID-19 impacted and operating) was suspended. Active While the crisis undoubtedly pushed our from last year’s profit of AED 618m. This was international businesses more severely than steps were taken to recover outstanding operations and finances to the limit, it also driven by weaker operating performance (loss the UAE. debt while suppliers were engaged with to brought to the fore our resilience and true of AED 1,857m against a profit of AED 507m reschedule payments. Strategic reviews of spirit. We remained undeterred in our focus in the prior year) as COVID-19 ravaged trading

82 ANNUAL REPORT Revenue by Line of Business ,QÁLJKWFDWHULQJ0HDOVXSOLIWHG Travel services 2020-21 number in millions - Total Transaction Value (TTV) in AED bn Revenue in AED m 2021-21 2019-20 % change % of total 20-21 16.9 20-21 0.2 Overview International airport operations 2,263 3,940 (42.6) 42.4 19-20 93.5 19-20 10.8 Emirates UAE airport operations 1,671 3,171 (47.3) 31.3 dnata Inflight catering 1,046 3,313 (68.4) 19.6 18-19 70.9 18-19 11.5 Travel services 130 3,537 (96.3) 2.4 Group 55.7 Other services 231 262 (11.8) 4.3 17-18 17-18 11.3 Financial information Total 5,341 14,223 (62.4) 100.0 16-17 60.7 16-17 10.7 Emirates financial commentary International airport operations International airport operations UAE airport operations UAE airport operations dnata - Aircraft turns handled - Cargo handled - in tonnes‘000 - Aircraft turns handled - Cargo handled - in tonnes‘000 financial commentary 20-21 211,425 20-21 2,111 20-21 78,101 20-21 575

Emirates 19-20 492,657 19-20 2,231 19-20 188,210 19-20 698 consolidated financial statements 18-19 488,225 18-19 2,364 18-19 210,514 18-19 727 dnata 17-18 448,553 17-18 2,352 17-18 211,038 731 consolidated 17-18 financial statements 16-17 407,915 16-17 2,130 16-17 215,696 16-17 714

Additional information

International airport operations UAE airport operations Inflight catering Travel services International airport operations continues UAE airport operations revenue decreased The inflight catering business was also severely Travel services revenue plunged 96.3% to AED to be the largest business segment of dnata by 47.3% to AED 1.7bn (2019-20: AED 3.2bn) impacted by the pandemic, as our customers 130m (2019-20: AED 3.5bn) as the pandemic by revenue. The segment’s revenue dropped due to the decline in volumes driven by the across the globe were forced to either reduce affected all key markets and business lines. by 42.6% to AED 2.3bn (2019-20: AED COVID-19 outbreak. A significant reduction operations or stop flying completely. Revenue The UK business, which is the biggest market 3.9bn) as COVID-19 triggered the closure of was experienced in ground handling fell by 68.4% to AED 1.0bn (2019-20: AED for dnata travel services, was hit the hardest. international borders and restricted aircraft operations at both Dubai International Airport 3.3bn), while meals uplifted dropped by 81.9% Demand completely collapsed due to movements. Cargo volumes, although down (DXB) and Al Maktoum International Airport to 16.9m (2019-20: 93.5m). prolonged and stop/start lockdowns, while the by 5.4%, were more resilient than aircraft turns (DWC) which suspended its passenger terminal cancellations and refunds relating to prior year handled – reduced by 57.1%. This was due to operations for most part of the financial The focus for 2020-21 was on preserving cash bookings also negatively impacted revenue for significant growth in freighter activity this year year. Flight cancellations throughout the year and resizing the business in light of current 2020-21. (including cargo-in-cabin operations) in our affected our operations severely. As a result, and forecasted demand. Cash collection businesses in the Netherlands, Singapore, US there was a sharp decrease of 110,109 or improved by diligent work and supplier During the year, we conducted a strategic and Australia. Our quality of service and high 58.5% in the number of aircraft turns handled payment terms were optimised through review of our brand portfolio and competitive safety standards helped us win or retain over while cargo volumes dropped by 17.6% to intensive negotiations. Capital expenditure was positioning. This led to our exit from our 100 contracts with key accounts across our 575 thousand tonnes (2019-20: 698 thousand kept to a minimum as several projects were corporate travel business in India, liquidation network. tonnes). Due to increased freighter operations, suspended, workforce was reduced by 37.4% of Tropo (B2B tour operator in Germany), and similar to the trend in our international compared to the prior year and furlough disposal of The Global Travel Group in the UK, Continuing our investment in critical cargo businesses, the reduction in cargo volumes schemes were availed where possible. We also and merger of Gold Medal and Travel 2 infrastructure, we opened dnata City North in was not as steep as aircraft turns handled. commenced operations at the second catering brands to create the UK’s largest B2B operator. Manchester and broke ground on the second Our marhaba business suffered as well and unit in Dublin and added new F&B outlets at Further, to manage the cash outflow, several phase of the dnata City East project at London registered a 66.7% decrease in guests at its Sharjah International Airport. As a result of cost saving initiatives were undertaken, Heathrow. We also invested in new technology lounges in Dubai. these measures, the business is now operating resulting in sustainable savings of more than and innovative products in response to the in an agile and efficient manner and is well- AED 400m, primarily due to staff reductions. market demand, including; cool dollies in Watchful of market demand, we introduced placed to capture volume growth as travel We also completed the purchase of the Australia and Singapore, UV cabin cleaning new products and services this year, including restrictions ease. remaining equity stake in Destination Asia, in Switzerland, a baggage disinfection station disinfection services and specialised handling a destination management company, with in Singapore, and IATA Dangerous Goods of medical supplies. businesses spread across seven countries in AutoCheck platform installations across the South East Asia. network.

83 ANNUAL REPORT Operating costs* in AED bn Employee costs as % of total operating costs 2020-21 14.3 13.1 44 56 11.9 20-21 Overview 11.0 19-20 41 59 Emirates 7.4 Operating costs in AED m 2020-21 2019-20 % change % of total 18-19 41 59 dnata Employee costs 3,290 5,875 (44.0) 44.5 Group 17-18 43 57 Depreciation, amortisation and impairment 1,662 1,046 58.9 22.5 Financial Direct costs 1,096 5,282 (79.3) 14.8 information 16-17 17-18 18-19 19-20 20-21 16-17 42 58 - Airport operations 715 1,364 (47.6) 9.7 Emirates Employee costs Other operating costs - Inflight catering 326 1,352 (75.9) 4.4 financial commentary - Travel services 53 2,534 (97.9) 0.7 Geographical workforce in % - Others 2 32 (93.8) 0.0 dnata financial Facilities related expenditure 325 501 (35.1) 4.4 commentary Information technology costs 270 320 (15.6) 3.6 Emirates Sales and marketing expenses 35 321 (89.1) 0.5 consolidated 67% Overseas financial Corporate overheads* 720 908 (20.7) 9.7 statements Total operating costs 7,398 14,253 (48.1) 100.0 33% UAE dnata consolidated * Includes net impairment loss on trade and other receivables. financial statements

Additional information

Operating costs Employee costs Direct costs Other operating costs dnata’s total operating costs, including the Employee costs fell 44.0% or AED 2.6bn Direct costs fell by 79.3% or AED 4.2bn year- Depreciation, amortisation and impairment provision for impairment of trade and other against last year and stood at AED 3.3bn on-year to AED 1.1bn (2019-20: AED 5.3bn). charges increased by AED 616m or 58.9%. This receivables, decreased by 48.1% or AED 6.9bn was mainly due to impairments recognised (2019-20: AED 5.9bn). This was on account Direct costs for travel services reduced by to AED 7.4bn (2019-20: AED 14.3bn). This on intangible assets of AED 766m (2019-20: of savings from reduced workforce, AED 97.9% to AED 53m (2019-20: AED 2.5bn), was primarily due to the drop in employee 193m) as cessation of certain operations, a 682m worth of COVID-related payroll grants mirroring the plunge in revenue, as demand expenses and direct costs – owing to reduced decline in general demand, increased risks received from various governments, reduction for travel completely dried up across all operations. Moreover, numerous cost-cutting and continued uncertainty due to COVID-19 in working hours and overtime payments, and markets, particularly in our biggest market in measures initiated by the business and the pandemic adversely impacted expected future cuts imposed on salaries. These decreases the UK which suffered from successive and COVID-19 related reliefs of AED 783m received cash flows. Impairments on goodwill and other were partly offset by one-off redundancy extended lockdowns. from various governments and suppliers payments. intangible assets were recognised across all against specific expenditure (particularly Airport operations pertaining costs were 47.6% lines of business. employee costs) also helped trim down total After exhausting all options to reduce costs lower at AED 715m (2019-20: AED 1.4bn) in Facilities related expenditure dropped by operating costs. These savings were partly and preserve cash, we made the difficult line with the reduction in ground handling 35.1% to AED 325m primarily due to COVID-19 offset by impairment charges recognised on decision to resize our workforce in line with activity across our network, and consequently, related reliefs received from various suppliers financial and non-financial assets. reduced operational requirements. Overall, lower costs were incurred for contract labour, employee strength as at March 2021 was and also because of a reduction in utility fuel and spares, passenger transport, amongst charges. down 29.2% compared to last year. others. Sales and marketing expenses showed a Inflight catering related direct costs decreased decrease of 89.1% to AED 35m as the travel Employee strength (in numbers) by 75.9% or AED 1.0bn to AED 326m (2019- businesses suspended marketing activities. 2020-21 2019-20 % change % of total 20: AED 1.4bn) consistent with the decline in In addition, the lack of trade wiped out sales revenue as a limited number of meals were International airport operations 14,857 19,550 (24.0) 43.2 commission and associated incentive costs for uplifted this year. Volumes in our key markets travel services. UAE airport operations 8,643 12,233 (29.3) 25.2 in Australia, Italy and witnessed a precipitous drop of 87% as lockdowns wreaked Corporate overheads were down 20.7% to Inflight catering 6,175 9,861 (37.4) 18.0 havoc on trading. AED 720m in line with reduced operations Travel services 3,118 4,966 (37.2) 9.1 and various cost-saving initiatives taken across dnata businesses. Others 1,551 1,893 (18.1) 4.5 Closing employee strength 34,344 48,503 (29.2) 100.0 84 ANNUAL REPORT &DVKÁRZ in AED m 2020-21 10 149 540 Overview 5,316 53 Emirates Assets in AED m 2020-21 2019-20 % change % of total 4,690 dnata PPE, ROU assets, investment 6,632 7,297 (9.1) 46.4 property & intangible assets Group Investment accounted for using the 455 551 (17.4) 3.2 Cash assets Net cash Net cash Net cash Effects of Cash assets Financial equity method as at generated used in used in exchange as at information 31 March 20 from operating investing ÀQDQFLQJ rate changes 31 March 21 Trade and other receivables 2,195 3,033 (27.6) 15.4 activities activities# activities* Emirates Cash assets 4,690 5,316 (11.8) 32.9 #net of movement in short term bank deposits. financial *net of movement in bank overdrafts. commentary Other assets 302 506 (40.3) 2.1 Total 14,274 16,703 (14.5) 100.0 Operating cash margin in % Cash assets in AED m dnata financial 14.2 5,316 commentary 5,122 Equity and liabilities in AED m 2020-21 2019-20 % change % of total 10.5 4,945 4,690 9.8 Emirates Equity 6,535 8,302 (21.3) 45.8 9.4 consolidated 3,398 financial Borrowings and lease liabilities 4,058 3,918 3.6 28.4 statements Trade and other payables 2,845 3,468 (18.0) 19.9 dnata Other liabilities 836 1,015 (17.6) 5.9 consolidated 0.2 financial Total 14,274 16,703 (14.5) 100.0 statements 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Additional information

Statement of financial position portfolio at 69.5% (2019-20: 69.4%) which Borrowings and lease liabilities increased before tax for the year of AED 1.9bn was is validated on an annual basis through marginally to AED 4.1bn (2019-20: AED 3.9bn). largely due to depreciation, amortisation and Assets impairment testing. As future cash flows of Term loans were unchanged at AED 1.5bn as impairment charges of AED 1.8bn on Total assets decreased by 14.5% to AED 14.3bn various businesses struggled to support the repayments of AED 229m in the year were financial and non-financial assets, which are (2019-20: AED 16.7bn). underlying carrying values, impairments of offset by; a) additional loans of AED 82m to non-cash in nature. With operating cash AED 766m were recognised across all lines of fund working capital requirements in our inflows close to nil, opening reserves were Property, plant and equipment (‘PPE’), Right- business; AED 255m in travel services, AED catering and airport operations in the US, utilised to fund investing activities of of-use (‘ROU’) assets, investment property and 208m in airport operations, AED 232m in and b) negative foreign exchange impact of AED 149m, which related to additions to intangible assets combined were down 9.1% inflight catering and AED 71m on corporate AED 116m due to deterioration in the value of non-current assets, and financing activities to AED 6.6bn (2019-20: AED 7.3bn). A weak US assets. US Dollar. of AED 0.5bn comprising net payments for Dollar increased the value of these assets by term loans and lease liabilities totalling to AED AED 488m. Investments accounted for using the equity Lease liabilities increased by 7.2% to AED 0.4bn, and interest costs of AED 0.1bn. method slid by 17.4% to AED 455m (2019-20: 2.4bn (2019-20: AED 2.2bn) due to; i) new PPE remained consistent at AED 2.1bn (2019- AED 551m) owing to; a) reduced profits and leases of AED 297m entered into for kitchens Our net assets continue to remain under 20: AED 2.2bn) as the reduction in assets due losses recognised in our security and travel in Sharjah and Dublin and cargo buildings in pressure due to a severely depressed trading to depreciation charge of AED 389m was business respectively, and b) dividends of Dubai and Manchester, ii) currency translation environment and ongoing uncertainy. We largely offset by additions of AED 192m and AED 70m. differences of AED 213m, and iii) interest have taken various measures to navigate a forex impact of AED 127m. Key investments expense of AED 86m. These increases were our business through this crisis, including made this year included the City North cargo Trade and other receivables reduced by 27.6% partly offset by repayments of AED 373m. compensating cost saving measures, complex at Manchester Airport, catering to AED 2.2bn (2019-20: AED 3.0bn) as a result reductions in discretionary capital expenditure high-loaders in Australia and a state-of-the-art of impairments of AED 122m, better cash Trade and other payables declined by 18.0% and availing support from governments and kitchen facility in Dublin. collection and a general reduction in business to AED 2.8bn (2019-20: AED 3.5bn) driven other bodies, where available. As soon as activity. by diminished business activity in 2020-21 demand recovers, we aim to restore to our full ROU assets were also in line with last year at because of the COVID-19 pandemic. operating capacity to serve our customers and AED 2.0bn (2019-20: AED 2.0bn). The impact of Equity to further strengthen our brand. depreciation was compensated by new leases Cash position Total equity at AED 6.5bn (2019-20: AED 8.3bn) taken in Manchester, Sharjah and Dublin and a Cash assets reduced to AED 4.7bn (2019-20: favourable foreign exchange movement. reflects a fall of 21.3% or AED 1.8bn, mainly attributable to losses for the year. AED 5.3bn), a drop of 11.8% from last year. Intangible assets of AED 2.1bn (2019-20: AED With a significant decline in trading activity, 2.8bn) form 29.0% (2019-20: 34.2%) of dnata’s Liabilities cash generated from operating activities and operating cash margin plummeted to AED non-current assets. Goodwill continues to Total liabilities showed a reduction of AED 662m 10m (2019-20: AED 1.4bn) and 0.2% (2019-20: be the largest portion of the intangible asset and stood at AED 7.7bn (2019-20: AED 8.4bn). 9.4%) respectively. This reflects that the loss 85 ANNUAL REPORT 2020-21

Overview

Emirates dnata Group Independent Auditor’s Report Financial information to the Owner of Emirates Emirates financial commentary dnata financial commentary

Emirates consolidated financial Our opinion statements In our opinion, the consolidated financial statements present fairly, in all material Independence dnata respects, the consolidated financial position of Emirates and its subsidiaries (together We are independent of Emirates in accordance with the International Code of Ethics for consolidated financial referred to as “Emirates”) as at 31 March 2021, and its consolidated financial Professional Accountants (including International Independence Standards) issued by statements performance and its consolidated cash flows for the year then ended in accordance the International Ethics Standards Board for Accountants (IESBA Code) and the ethical with International Financial Reporting Standards (“IFRS”). requirements that are relevant to our audit of the consolidated financial statements Additional information in the United Arab Emirates. We have fulfilled our other ethical responsibilities in What we have audited accordance with these requirements and the IESBA Code.

Emirates’ consolidated financial statements comprise: Our audit approach ● the consolidated income statement for the year ended 31 March 2021; Overview ● the consolidated statement of comprehensive income for the year ended 31 March 2021; Key audit matters ● Passenger and cargo revenue recognition ● the consolidated statement of financial position as at 31 March 2021; ● Accounting for the “Skywards” frequent flyer programme ● the consolidated statement of changes in equity for the year ended 31 March 2021; ● Impairment of the airline cash generating unit (CGU) ● the consolidated statement of cash flows for the year ended 31 March 2021; and ● Provision for aircraft return conditions ● the notes to the consolidated financial statements, which include significant As part of designing our audit, we determined materiality and assessed the risks of accounting policies and other explanatory information. material misstatement in the consolidated financial statements. In particular, we considered where management made subjective judgements; for example, in respect Basis for opinion of significant accounting estimates that involved making assumptions and considering We conducted our audit in accordance with International Standards on Auditing future events that are inherently uncertain. As in all of our audits, we also addressed (“ISAs”). Our responsibilities under those standards are further described in the the risk of management override of internal controls, including among other matters Auditor’s responsibilities for the audit of the consolidated financial statements section consideration of whether there was evidence of bias that represented a risk of material of our report. misstatement due to fraud.

We believe that the audit evidence we have obtained is sufficient and appropriate to We tailored the scope of our audit in order to perform sufficient work to enable us to provide a basis for our opinion. provide an opinion on the consolidated financial statements as a whole, taking into account the structure of Emirates, the accounting processes and controls, and the industry in which Emirates operates.

PricewaterhouseCoopers (Dubai Branch), License no. 102451, Emaar Square, Building 5, P O Box 11987, Dubai - United Arab Emirates, T: +971 (0)4 304 3100, F: +971 (0)4 346 9150, www.pwc.com/me 86 Mohamed ElBorno, Jacques Fakhoury, Douglas O’Mahony and Rami Sarhan are registered as practising auditors with the UAE Ministry of Economy ANNUAL REPORT 2020-21 Independent Auditor’s Report to the Owner of Emirates (continued)

Overview

Emirates dnata Key audit matters Group

Financial Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current year. These information matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Emirates financial commentary Key audit matter How our audit addressed the Key audit matter dnata financial commentary Passenger and cargo revenue recognition We performed detailed end-to-end walkthroughs of the finance and operational processes surrounding the revenue systems, utilising our Emirates When a flight booking is made, passenger and cargo revenue is measured based on understanding of the industry and Emirates, to assess the design effectiveness consolidated the sales price to the customer and allocated to each performance obligation under financial of the related key internal controls and identify changes, if any, that have statements the contract. Revenue is initially deferred on the consolidated statement of financial occurred during the current year. position and subsequently recognised in the consolidated income statement when dnata the related performance obligation has been fulfilled (typically when a passenger consolidated We tested the operating effectiveness of these key controls to obtain sufficient, financial or the cargo has flown) (refer to notes 2, 3, 5 and 23 to the consolidated financial appropriate evidence that they operated throughout the year as intended. We statements statements). also tested the key IT systems, including interfaces that impact the recognition Additional of revenue from passenger and cargo sales along with the IT change control information The determination of the revenue to be recognised for each flight requires complex procedures and related application controls. IT systems and involves the exchange of information with industry systems and other airlines for a high volume of transactions. We performed computer assisted audit techniques over passenger and cargo revenue to identify and test unexpected entries and correlate revenue The accounting for passenger and cargo revenue is susceptible to management movements during the year to accounts receivable and cash. We substantively override of controls through the recording of manual journals in the accounting tested a sample of revenue from passenger and cargo sales at a booking and records, the override of IT systems to accelerate revenue recognition, or the flight level to validate occurrence and cut-off of revenue. We tested manual manipulation of inputs used to calculate revenue recorded in respect of unused journal entries posted into relevant revenue accounts in the sub-ledgers and revenue documents. the general ledger.

The timing of revenue recognition for unused revenue documents requires We obtained data supporting Emirates’ historical expiry trend in respect of judgement due to the timeframe over which revenue documents can be utilised unused revenue documents. In addition to performing controls based testing as and the large number of fare types sold by Emirates. Management has determined described above, we tested the accuracy of historical expiry data and compared the value of unused revenue documents that will not be utilised based on their this data to that used by Emirates in their calculation of the amount of revenue terms and conditions and historical expiry trends. to recognise from unused revenue documents.

We focused on this area as a result of the complexity of the related IT systems, the We assessed whether the related disclosures in notes 2, 3, 5 and 23 to the potential for management override of controls and the level of judgement required consolidated financial statements are consistent with the requirements of IFRS. by management in determining the timing of recognition of unused revenue documents.

87 ANNUAL REPORT 2020-21 Independent Auditor’s Report to the Owner of Emirates (continued)

Overview

Emirates dnata

Group Key audit matter How our audit addressed the Key audit matter

Financial information Accounting for the “Skywards” frequent flyer programme We tested management’s model supporting the calculation of Skywards deferred revenue as follows: Emirates Emirates operates frequent flyer programmes in order to encourage and incentivise loyalty from financial ● we updated our understanding of the process and related commentary its customers, with “Skywards” being the biggest programme of this type. Skywards members controls by which deferred revenue is calculated; either earn Skywards miles after a flight has been paid for and flown or from Skywards partners ● we tested automated controls and key interfaces between the dnata who purchase miles from Emirates to issue to their customers. Skywards miles can be redeemed financial IT systems used to initially accrue and subsequently redeem for reductions in airfares as well as being used towards free flights, cabin class upgrades and commentary the Skywards miles for each member; other non-airline rewards. Emirates ● we reconciled the Skywards miles issued and redeemed during consolidated the year, and the closing miles balance in the model to the The consideration in respect of the value of unused miles issued to Skywards members when financial underlying IT systems; statements flights are flown and for miles issued to Skywards members from sales to partners with a total ● we tested the mathematical accuracy of management’s model; dnata value of AED 1,789 million as at 31 March 2021 is recognised in the consolidated statement of consolidated financial position as deferred revenue (refer to notes 2, 3 and 23 to the consolidated financial ● we tested the key assumptions within management’s model, financial statements). Revenue is recognised in the consolidated income statement when the miles are including agreeing historical expiry trends supporting the statements redeemed by a customer and the underlying performance obligation relating to the redeemed expiry percentage, historical sector average fares and historical Additional miles is fulfilled. fares for upgrades to underlying reports, discussing anticipated information future changes to the Skywards programme that may impact The consideration for each mile is based on a relative standalone selling price calculated using a expiry trends with appropriate senior management and testing model incorporating a number of factors including historical sector average fares, historical fares ticket and upgrade availability to internal supporting evidence; for upgrades, ticket and upgrade availability and redemption patterns. An estimate is also made and of the number of miles that will expire based on historical expiry patterns and any known future ● we tested the sensitivity analysis on the key assumptions and changes to the Skywards programme. variables used in management’s model.

We focused on this area because of the significant level of judgement exercised by management We assessed whether the related disclosures in notes 2, 3 and 23 in determining the underlying assumptions within the model. to the consolidated financial statements are consistent with the requirements of IFRS.

88 ANNUAL REPORT 2020-21 Independent Auditor’s Report to the Owner of Emirates (continued)

Overview

Emirates dnata

Group Key audit matter How our audit addressed the Key audit matter

Financial information Impairment of the airline cash generating unit (CGU) We obtained management’s impairment model and discussed the key assumptions with senior management. Emirates Given the existence of COVID-19 and the significant impact the pandemic has on the financial commentary airline industry, management has performed an impairment assessment at the airline We evaluated the appropriateness of the key assumptions within the model CGU level. With the exception of specific asset impairments of AED 500 million, no as follows: dnata impairment was recognised in respect of the airline CGU (refer to notes 2, 3, 12 and 13 financial ● using a variety of available internal and external analyses, we assessed commentary to the consolidated financial statements). whether management’s cash flow projections were reasonable, including: ● comparing the anticipated recovery timeline of airline revenues to Emirates An assessment of the recoverable amount of the airline CGU compared to its carrying consolidated published views of market commentators, and publicly available value was performed based on cash flow projections prepared taking into account the financial aviation industry reports; statements current COVID-19 pandemic. Management has estimated the recoverable amount of ● comparing the cost estimates to management forecasts and future the airline CGU based on its value in use, using a discounted cash flow model. The cash dnata market prices where applicable; and consolidated flow projections are based on current and anticipated market conditions covering the financial period to 2024-25. The projections are inherently uncertain due to the fluidity of the ● comparing planned capital expenditure to management’s forecast of statements impact of COVID-19 pandemic. aircraft delivery timing and contractually agreed aircraft values; Additional ● we compared the long-term growth rates to external airline industry information The key assumptions applied by management in estimating the recoverable amount of economic data and economic forecasts; and the CGU included: ● we utilised our internal valuation specialists to perform an independent ● an anticipated gradual recovery of airline operations to 90% of pre-COVID-19 calculation of the discount rate, with particular reference to comparable revenues by financial year 2023-24; companies and compared this calculation to the rate used by ● cost expectations in line with expected operational capacity, known cost savings and management. future market prices, where applicable; ● capital expenditure based on estimated aircraft replacement timing at contracted We tested the mathematical accuracy of the impairment model. values; ● the long-term growth rate of 1.5% after the four-year period; and We tested the sensitivity analyses over each of the significant assumptions within the impairment model. ● the pre-tax discount rate of 7.5% used in the impairment model. We assessed whether the related disclosures in notes 2, 3, 12 and 13 to the We focused on this area because of the significant level of judgement exercised consolidated financial statements are consistent with the requirements of by management in determining the underlying assumptions and estimating the IFRS. recoverable amount of the airline CGU.

89 ANNUAL REPORT 2020-21 Independent Auditor’s Report to the Owner of Emirates (continued)

Overview

Emirates dnata

Group Key audit matter How our audit addressed the Key audit matter

Financial information Provision for aircraft return conditions We obtained the aircraft return provision model prepared by management, together with a summary of the underlying assumptions. Emirates Emirates operated 131 aircraft under lease arrangements at 31 March financial commentary 2021 (2020: 142). We tested the completeness of the provision by ensuring that all significant return condition obligations included in aircraft lease contracts were included in the model. dnata Under the terms of the lease arrangements with the lessors, Emirates financial commentary is contractually committed to either return the aircraft and/or engines We reperformed the calculations within the model to test the mathematical accuracy. in a certain condition or to compensate the lessor based on the Emirates actual condition of the aircraft and/or engines at the date of return. consolidated To understand the methodology used by management, the following key assumptions were financial Accordingly, a provision of AED 5,759 million is recorded for the discussed with senior engineering and finance personnel: statements present value of the expected cost associated with these contractual ● the past and expected future utilisation and maintenance patterns of the aircraft; return conditions and is recognised in the consolidated statement of dnata ● the expected cost of each maintenance event at the time it is expected to occur; and consolidated financial position within provisions (refer to notes 2, 3 and 22 to the ● the discount rate applied to calculate the present value of the future liability. financial consolidated financial statements). statements

Additional The provision is calculated using a model which incorporates a We compared historical utilisation of the aircraft to flying records and assessed if the future information number of assumptions, requiring significant judgement, including utilisation assumptions were considered reasonable in light of past experience. Assumed the: maintenance costs were assessed against historical actual costs incurred and existing long ● past and expected future utilisation and maintenance patterns of term maintenance agreements. Future maintenance patterns were assessed against internal the aircraft and engines; maintenance plans. We verified that the discount rate applied by management to the future liability was within an acceptable range with reference to the time value of money applicable ● expected cost of the maintenance at the time it is estimated to to Emirates and the risks specific to the liability. occur; and ● discount rate applied to calculate the present value of the future Along with testing management’s sensitivity analysis on reasonably possible changes in liability. assumptions, we also compared provisions held for aircraft and engines returned during the year to the compensation paid out to the lessors or actual costs incurred to establish if past We focused on this area because of the significant level of judgement provisions were reasonable. exercised by management in determining the underlying assumptions within the model and the sensitivity of the amounts recorded in the We assessed whether the related disclosures in notes 2, 3 and 22 to the consolidated consolidated financial statements from changes in these assumptions. financial statements are consistent with the requirements of IFRS.

Other information Management is responsible for the other information. The other information comprises is to read the other information identified above and, in doing so, consider whether the the information included in the Annual Report (but does not include the consolidated other information is materially inconsistent with the consolidated financial statements financial statements and our auditor’s report thereon). or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

Our opinion on the consolidated financial statements does not cover the other If, based on the work we have performed, we conclude that there is a material information and we do not express any form of assurance conclusion thereon. misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. In connection with our audit of the consolidated financial statements, our responsibility

90 ANNUAL REPORT 2020-21 Independent Auditor’s Report to the Owner of Emirates (continued)

Overview

Emirates dnata Responsibilities of management and those charged with governance for the consolidated financial statements Group

Financial Management is responsible for the preparation and fair presentation of the assessing Emirates’ ability to continue as a going concern, disclosing, as applicable, information consolidated financial statements in accordance with IFRS, and for such internal control matters related to going concern and using the going concern basis of accounting as management determines is necessary to enable the preparation of consolidated unless management either intends to liquidate Emirates or to cease operations, or has Emirates financial financial statements that are free from material misstatement, whether due to fraud no realistic alternative but to do so. commentary or error. Those charged with governance are responsible for overseeing Emirates’ financial dnata financial In preparing the consolidated financial statements, management is responsible for reporting process. commentary

Emirates consolidated financial Auditor’s responsibilities for the audit of the consolidated ● Evaluate the overall presentation, structure and content of the consolidated financial statements financial statements statements, including the disclosures, and whether the consolidated financial dnata statements represent the underlying transactions and events in a manner that consolidated achieves fair presentation. financial Our objectives are to obtain reasonable assurance about whether the consolidated statements ● Obtain sufficient appropriate audit evidence regarding the financial information financial statements as a whole are free from material misstatement, whether due to of the entities or business activities within Emirates to express an opinion on the Additional fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable consolidated financial statements. We are responsible for the direction, supervision information assurance is a high level of assurance, but is not a guarantee that an audit conducted and performance of the Emirates audit. We remain solely responsible for our audit in accordance with ISAs will always detect a material misstatement when it exists. opinion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic We communicate with those charged with governance regarding, among other matters, decisions of users taken on the basis of these consolidated financial statements. the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with ● Identify and assess the risks of material misstatement of the consolidated financial them all relationships and other matters that may reasonably be thought to bear on our statements, whether due to fraud or error, design and perform audit procedures independence, and where applicable, actions taken to eliminate threats or safeguards responsive to those risks, and obtain audit evidence that is sufficient and appropriate applied. to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve From the matters communicated with those charged with governance, we determine collusion, forgery, intentional omissions, misrepresentations, or the override of those matters that were of most significance in the audit of the consolidated financial internal control. statements of the current year and are therefore the Key audit matters. We describe ● Obtain an understanding of internal control relevant to the audit in order to design these matters in our auditor’s report unless law or regulation precludes public disclosure audit procedures that are appropriate in the circumstances, but not for the purpose about the matter or when, in extremely rare circumstances, we determine that a matter of expressing an opinion on the effectiveness of Emirates’ internal control. should not be communicated in our report because the adverse consequences of ● Evaluate the appropriateness of accounting policies used and the reasonableness of doing so would reasonably be expected to outweigh the public interest benefits of accounting estimates and related disclosures made by management. such communication. ● Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material PricewaterhouseCoopers uncertainty exists related to events or conditions that may cast significant doubt 6 May 2021 on Emirates’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions Douglas O’Mahony may cause Emirates to cease to continue as a going concern. Registered Auditor Number 834 Dubai, United Arab Emirates 91 ANNUAL REPORT 2020-21 Consolidated Income Statement Overview for the year ended 31 March 2021 Emirates dnata

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Consolidated Statement of Comprehensive Income for the year ended 31 March 2021

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The accompanying notes are an integral part of these consolidated financial statements.

92 ANNUAL REPORT 2020-21 Consolidated Statement of Financial Position Overview as at 31 March 2021 Emirates dnata

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The consolidated financial statements were approved on 6 May 2021 and signed by:

Sheikh Ahmed bin Saeed Al-Maktoum Timothy Clark Chairman and Chief Executive President

The accompanying notes are an integral part of these consolidated financial statements.

93 ANNUAL REPORT 2020-21 Consolidated Statement of Changes in Equity Overview for the year ended 31 March 2021 Emirates dnata

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The accompanying notes are an integral part of these consolidated financial statements.

94 ANNUAL REPORT 2020-21 Consolidated Statement of Cash Flows Overview for the year ended 31 March 2021 Emirates dnata

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The accompanying notes are an integral part of these consolidated financial statements.

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96 ANNUAL REPORT 2020-21

Overview

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97 ANNUAL REPORT 2020-21

Overview

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98 ANNUAL REPORT 2020-21

Overview

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99 ANNUAL REPORT 2020-21

Overview

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100 ANNUAL REPORT 2020-21

Overview

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101 ANNUAL REPORT 2020-21

Overview

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102 ANNUAL REPORT 2020-21

Overview

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Overview

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137 ANNUAL REPORT 2020-21

Overview

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138 ANNUAL REPORT 2020-21

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Emirates dnata )LQDQFLDOULVNPDQDJHPHQW FRQWLQXHG LLL /LTXLGLW\ULVN Group

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139 ANNUAL REPORT 2020-21

Overview

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140 ANNUAL REPORT 2020-21

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141 ANNUAL REPORT 2020-21

Overview

Emirates dnata Group Independent Auditor’s Report Financial Information to the Owner of dnata Emirates Financial Commentary dnata Financial Commentary

Emirates Consolidated Financial Our opinion Statements In our opinion, the consolidated financial statements present fairly, in all material Independence dnata respects, the consolidated financial position of dnata and its subsidiaries (together We are independent of dnata in accordance with the International Code of Ethics for consolidated referred to as “dnata”) as at 31 March 2021, and its consolidated financial performance financial Professional Accountants (including International Independence Standards) issued by statements and its consolidated cash flows for the year then ended in accordance with International the International Ethics Standards Board for Accountants (IESBA Code) and the ethical Financial Reporting Standards (“IFRS”). Additional requirements that are relevant to our audit of the consolidated financial statements Information in the United Arab Emirates. We have fulfilled our other ethical responsibilities in What we have audited accordance with these requirements and the IESBA Code. dnata’s consolidated financial statements comprise: Our audit approach ● the consolidated income statement for the year ended 31 March 2021; Overview ● the consolidated statement of comprehensive income for the year ended 31 March 2021; Key audit matter ● Impairment of goodwill ● the consolidated statement of financial position as at 31 March 2021; ● the consolidated statement of changes in equity for the year ended 31 March 2021; As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements. In particular, we ● the consolidated statement of cash flows for the year ended 31 March 2021; and considered where management made subjective judgements; for example, in respect ● the notes to the consolidated financial statements, which include significant of significant accounting estimates that involved making assumptions and considering accounting policies and other explanatory information. future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters Basis for opinion consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those standards are further described in the Auditor’s We tailored the scope of our audit in order to perform sufficient work to enable us to responsibilities for the audit of the consolidated financial statements section of our report. provide an opinion on the consolidated financial statements as a whole, taking into account the structure of dnata, the accounting processes and controls, and the industry We believe that the audit evidence we have obtained is sufficient and appropriate to in which dnata operates. provide a basis for our opinion.

PricewaterhouseCoopers (Dubai Branch), License no. 102451, Emaar Square, Building 5, P O Box 11987, Dubai - United Arab Emirates, T: +971 (0)4 304 3100, F: +971 (0)4 346 9150, www.pwc.com/me 142 Mohamed ElBorno, Jacques Fakhoury, Douglas O’Mahony and Rami Sarhan are registered as practising auditors with the UAE Ministry of Economy ANNUAL REPORT 2020-21 Independent Auditor’s Report to the Owner of dnata (continued)

Overview

Emirates dnata Key audit matters Group

Financial Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current year. These information matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Emirates financial commentary Key audit matter How our audit addressed the Key audit matter dnata financial Impairment of goodwill We obtained an understanding of management’s impairment models and commentary key assumptions. We then tested these impairment models, in particular, with As at 31 March 2021, the carrying value of goodwill was AED 1,474 million. Refer to Emirates regard to the appropriateness of the key assumptions used within the models, consolidated notes 2, 3 and 11 to the consolidated financial statements. as follows: financial statements Goodwill is not subject to amortisation and, as a result, in accordance with IAS 36 ● we utilised our internal valuation specialists to perform independent dnata “Impairment of assets” is required to be tested annually for impairment. calculations of the discount rates, with particular reference to comparable consolidated companies and compared these to the discount rates used by management; financial The recoverable amount attributable to a cash generating unit to which goodwill statements ● we agreed the base case cash flows used in management’s impairment is allocated is determined as being the higher of the fair value less the costs of models to approved budgets, including management’s assessment of the Additional disposal and the value in use. The recoverable amount is compared to the carrying impact of the COVID-19 pandemic; information value of the cash generating unit to which goodwill is allocated in order to assess ● we compared future expected revenue growth rates and gross margins used whether an impairment exists. The value in use is determined by calculating the in the approved budgets, to historical trends as well as future economic discounted cash flows of the cash generating unit. outlooks and reviewed whether management’s estimates made in prior periods were reasonable compared to actual performance; The calculation of value in use incorporates key assumptions including risk adjusted pre-tax discount rates, gross margins consistent with historic trends and ● we compared long term terminal growth rates to external sources of management expectations for market development and long term terminal growth information including economic forecasts; rates. ● we tested management’s sensitivity analysis over assumptions used within the value in use calculations and considered the appropriateness of the The impairment model prepared by management in respect of certain cash impairment charge recognised; and generating units containing goodwill determined that an impairment of AED 601 ● we tested the mathematical accuracy of the models. million was required which was recorded by management in the consolidated financial statements. We assessed whether the related disclosures in notes 2, 3 and 11 to the consolidated financial statements are consistent with the requirements of IFRS. The impairment models prepared by management for the remaining cash generating units determined that adequate headroom existed and no impairment charge was required.

We focused on this area because the determination of whether an impairment loss should be recognised is inherently complex and required management to exercise significant judgement over the calculation of value in use.

143 ANNUAL REPORT 2020-21 Independent Auditor’s Report to the Owner of dnata (continued)

Overview

Emirates dnata Other information Responsibilities of management and those charged with Group governance for the consolidated financial statements Financial Management is responsible for the other information. The other information comprises Information the information included in the Annual Report (but does not include the consolidated financial statements and our auditor’s report thereon). Emirates Management is responsible for the preparation and fair presentation of the Financial consolidated financial statements in accordance with IFRS, and for such internal control Commentary Our opinion on the consolidated financial statements does not cover the other as management determines is necessary to enable the preparation of consolidated information and we do not express any form of assurance conclusion thereon. dnata financial statements that are free from material misstatement, whether due to fraud Financial or error. Commentary In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the Emirates In preparing the consolidated financial statements, management is responsible for Consolidated other information is materially inconsistent with the consolidated financial statements assessing dnata’s ability to continue as a going concern, disclosing, as applicable, Financial or our knowledge obtained in the audit, or otherwise appears to be materially misstated. matters related to going concern and using the going concern basis of accounting Statements unless management either intends to liquidate dnata or to cease operations, or has no dnata If, based on the work we have performed, we conclude that there is a material realistic alternative but to do so. consolidated misstatement of this other information, we are required to report that fact. We have financial nothing to report in this regard. statements Those charged with governance are responsible for overseeing dnata’s financial reporting process. Additional Information

144 ANNUAL REPORT 2020-21 Independent Auditor’s Report to the Owner of dnata (continued)

Overview

Emirates dnata Auditor’s responsibilities for the audit of the consolidated financial statements Group

Financial Our objectives are to obtain reasonable assurance about whether the consolidated ● Obtain sufficient appropriate audit evidence regarding the financial information information financial statements as a whole are free from material misstatement, whether due to of the entities or business activities within dnata to express an opinion on the fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable consolidated financial statements. We are responsible for the direction, supervision Emirates financial assurance is a high level of assurance, but is not a guarantee that an audit conducted and performance of the dnata audit. We remain solely responsible for our audit commentary in accordance with ISAs will always detect a material misstatement when it exists. opinion. Misstatements can arise from fraud or error and are considered material if, individually dnata financial or in the aggregate, they could reasonably be expected to influence the economic We communicate with those charged with governance regarding, among other matters, commentary decisions of users taken on the basis of these consolidated financial statements. the planned scope and timing of the audit and significant audit findings, including any Emirates significant deficiencies in internal control that we identify during our audit. consolidated As part of an audit in accordance with ISAs, we exercise professional judgement and financial maintain professional scepticism throughout the audit. We also: We also provide those charged with governance with a statement that we have complied statements with relevant ethical requirements regarding independence, and to communicate with dnata ● Identify and assess the risks of material misstatement of the consolidated financial them all relationships and other matters that may reasonably be thought to bear on our consolidated statements, whether due to fraud or error, design and perform audit procedures independence, and where applicable, actions taken to eliminate threats or safeguards financial statements responsive to those risks, and obtain audit evidence that is sufficient and applied. appropriate to provide a basis for our opinion. The risk of not detecting a material Additional information misstatement resulting from fraud is higher than for one resulting from error, as From the matters communicated with those charged with governance, we determine fraud may involve collusion, forgery, intentional omissions, misrepresentations, or those matters that were of most significance in the audit of the consolidated financial the override of internal control. statements of the current year and are therefore the Key audit matters. We describe ● Obtain an understanding of internal control relevant to the audit in order to design these matters in our auditor’s report unless law or regulation precludes public disclosure audit procedures that are appropriate in the circumstances, but not for the purpose about the matter or when, in extremely rare circumstances, we determine that a matter of expressing an opinion on the effectiveness of dnata’s internal control. should not be communicated in our report because the adverse consequences of ● Evaluate the appropriateness of accounting policies used and the reasonableness of doing so would reasonably be expected to outweigh the public interest benefits of accounting estimates and related disclosures made by management. such communication. ● Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt PricewaterhouseCoopers on dnata’s ability to continue as a going concern. If we conclude that a material 6 May 2021 uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause dnata to cease to continue as a going concern. ● Evaluate the overall presentation, structure and content of the consolidated Douglas O’Mahony financial statements, including the disclosures, and whether the consolidated Registered Auditor Number 834 financial statements represent the underlying transactions and events in a manner Dubai, United Arab Emirates that achieves fair presentation.

145 ANNUAL REPORT 2020-21 Consolidated Income Statement Overview for the year ended 31 March 2021 Emirates dnata

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The accompanying notes are an integral part of these consolidated financial statements.

146 ANNUAL REPORT 2020-21 Consolidated Statement of Financial Position Overview as at 31 March 2021 Emirates dnata

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The consolidated financial statements were approved on 6 May 2021 and signed by:

Sheikh Ahmed bin Saeed Al-Maktoum Nigel Hopkins Chairman and Chief Executive Executive Vice President Service Departments

The accompanying notes are an integral part of these consolidated financial statements.

147 ANNUAL REPORT 2020-21 Consolidated Statement of Changes in Equity Overview for the year ended 31 March 2021 Emirates dnata

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The accompanying notes are an integral part of these consolidated financial statements.

148 ANNUAL REPORT 2020-21 Consolidated Statement of Cash Flows Overview for the year ended 31 March 2021 Emirates dnata

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The accompanying notes are an integral part of these consolidated financial statements.

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150 ANNUAL REPORT 2020-21

Overview

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153 ANNUAL REPORT 2020-21

Overview

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154 ANNUAL REPORT 2020-21

Overview

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156 ANNUAL REPORT 2020-21

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158 ANNUAL REPORT 2020-21

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159 ANNUAL REPORT 2020-21

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160 ANNUAL REPORT 2020-21

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162 ANNUAL REPORT 2020-21

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Buildings include right-of-use assets with a net book amount of AED 37 m (2020: AED 39 m). The net book amount of investment property of AED 82 m (2020: AED 86 m) is pledged as security against term loans.

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Revenue from rental income earned during the year amounting to AED 45 m (2020: AED 43 m) is recognised in the consolidated income statement as revenue from ‘Services - Others’.

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185 ANNUAL REPORT 2020-21

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186 ANNUAL REPORT 2020-21

Overview

Emirates dnata

Group

Financial information

Emirates financial commentary dnata financial commentary

Emirates consolidated Financial statements dnata consolidated financial statements

Additional information

188 Emirates ten-year overview 190 dnata ten-year overview 192 Group ten-year overview Additional information 193 Group companies of Emirates 194 Group companies of dnata 196 Glossary

187 ANNUAL REPORT 2020-21 Emirates ten-year overview Overview

Emirates dnata Consolidated income statement 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 Revenue and other operating income AED m 30,927 91,972 97,907 92,322 85,083 85,044 88,819 82,636 73,113 62,287 Group

Financial Operating costs AED m 45,948 85,564 95,260 88,236 82,648 76,714 82,926 78,376 70,274 60,474 information - of which depreciation, amortisation and Emirates impairment AED m 19,665 19,444 9,680 9,193 8,304 8,000 7,446 6,421 5,136 4,134 financial commentary - of which employee costs AED m 7,830 12,058 12,623 13,080 12,864 12,452 11,851 10,230 9,029 7,936 dnata - of which jet fuel AED m 6,398 26,260 30,768 24,715 20,968 19,731 28,690 30,685 27,855 24,292 financial commentary Operating (loss) / profit AED m (15,021) 6,408 2,647 4,086 2,435 8,330 5,893 4,260 2,839 1,813 Emirates consolidated (Loss) / profit attributable to the Owner AED m (20,279) 1,056 871 2,796 1,250 7,125 4,555 3,254 2,283 1,502 financial statements Consolidated statement of financial position dnata consolidated Non-current assets AED m 128,886 144,357 96,483 93,417 93,722 87,752 83,627 74,250 59,856 51,896 financial statements Current assets AED m 22,891 27,705 30,915 34,170 27,836 31,427 27,735 27,354 34,947 25,190 - of which cash assets AED m 15,108 20,249 17,037 20,420 15,668 19,988 16,885 16,561 24,572 15,587 Additional information Total assets AED m 151,777 172,062 127,398 127,587 121,558 119,179 111,362 101,604 94,803 77,086

Emirates ten-year Total equity AED m 20,147 23,587 37,743 37,046 35,094 32,405 28,286 25,471 23,032 21,466 overview - of which equity attributable to the Owner AED m 19,597 22,978 37,149 36,454 34,508 31,909 27,886 25,176 22,762 21,224 dnata Non-current liabilities AED m 95,925 99,583 52,190 49,975 48,082 48,250 48,595 43,705 40,452 30,574 ten-year overview Current liabilities AED m 35,705 48,892 37,465 40,566 38,382 38,524 34,481 32,428 31,319 25,046

Group ten-year overview Consolidated statement of cash flows

Group Cash flow from operating activities AED m (4,454) 22,798 10,528 14,134 10,425 14,105 13,265 12,649 12,814 8,107 companies Cash flow from investing activities AED m (2,644) (10,231) (1,360) (10,977) (3,129) (2,361) (6,411) (4,257) (15,061) (10,566) of Emirates Cash flow from financing activities AED m 2,902 (9,366) (9,807) (6,442) (10,502) (7,975) (6,264) (7,107) 1,240 (201) Group companies Net change in cash and cash equivalents AED m (4,196) 3,201 (639) (3,285) (3,206) 3,769 590 1,285 (1,007) (2,660) of dnata

Glossary Other financial data Net change in cash assets AED m (5,141) 3,212 (3,383) 4,752 (4,320) 3,103 324 (8,011) 8,985 1,614 EBITDA AED m 4,644 25,852 23,977 24,970 21,248 24,415 20,259 17,229 13,891 10,735

Borrowings and lease liabilities AED m 107,576 110,157 53,039 51,101 51,002 50,105 47,808 42,431 40,525 30,880 Less: Cash assets AED m 15,108 20,249 17,037 20,420 15,668 19,988 16,885 16,561 24,572 15,587 Net debt AED m 92,468 89,908 36,002 30,681 35,334 30,117 30,923 25,870 15,953 15,293

Capital expenditure AED m 4,997 11,870 13,437 8,496 12,632 16,723 19,873 21,142 13,378 13,644

Notes : 1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. 188 2. Comparative figures are restated, where applicable, according to IFRS rules i.e. only the immediately preceding year’s figures are restated. ANNUAL REPORT 2020-21 Emirates ten-year overview Overview

Emirates dnata Key ratios 2020-21 2019-202018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 Operating margin % (48.6) 7.0 2.7 4.4 2.9 9.8 6.6 5.2 3.9 2.9 Group (Loss) / profitprofit margin margin % (65.6) 1.1 0.9 3.0 1.5 8.4 5.1 3.9 3.1 2.4 Financial Return on Owner's funds % (95.3) 3.5 2.4 7.9 3.8 23.8 17.2 13.6 10.4 7.2 information EBITDA margin % 15.0 28.1 24.5 27.0 25.0 28.7 22.8 20.8 19.0 17.2 Emirates financial Cash assets to revenue and other operating income % 48.9 22.0 17.4 22.1 18.4 23.5 19.0 20.0 33.6 25.0 commentary dnata Net debt to equity ratio % 459.0 381.2 95.4 82.8 100.7 92.9 109.3 101.6 69.3 71.2 financial Net debt (incl. aircraft operating leases*) to equity ratio % 459.0 381.2 209.8 216.4 237.9 215.9 212.1 209.9 186.4 162.1 commentary Net debt (incl. aircraft operating leases*) to EBITDA % 1,991.1 347.8 330.3 321.0 392.9 286.5 296.2 310.3 309.1 324.1 Emirates Effective interest rate on borrowings and lease liabilities % 3.8 4.6 4.0 3.2 3.0 3.1 3.3 3.2 3.1 3.0 consolidated financial Fixed to floatingfloating debt debt mix mix 62:38 69:31 65:35 72:28 75:25 92:8 85:15 94:6 90:10 89:11 statements Key operating statistics dnata consolidated Performance indicators financial Yield Fils per RTKM 229 222 219 213 204 218 245 250 249 251 statements Unit cost Fils per ATKM 177 141 146 139 132 132 158 162 167 166 Additional Unit cost excluding jet fuel Fils per ATKM 151 96 97 98 97 97 102 97 99 97 information Breakeven load factor % 77.2 63.4 66.4 65.2 64.5 60.4 64.7 64.9 66.9 65.9 Emirates ten-year Fleet overview Aircraft number 259 270 270 268 259 251 231 217 197 169 dnata Average fleetfleet age age months 88 81 73 68 63 74 75 74 72 77 ten-year overview Production Group Destinations number 157** 157** 158 157 156 153 144 142 133 123 ten-year Overall capacity ATKM million 24,782 58,584 63,340 61,425 60,461 56,383 50,844 46,820 40,934 35,467 overview Available seat kilometres ASKM million 64,062 367,153 390,775 377,060 368,102 333,726 295,740 271,133 236,645 200,687 Group Aircraft departures number 79,156 189,081 203,281 201,858 204,543 199,754 181,843 176,039 159,892 142,129 companies of Emirates TrafficTraffic Group Passengers carried number'000 6,553 56,162 58,601 58,485 56,076 51,853 48,139 44,537 39,391 33,981 companies Passenger seat kilometres RPKM million 28,353 288,148 299,967 292,221 276,608 255,176 235,498 215,353 188,618 160,446 of dnata Passenger seat factor % 44.3 78.5 76.8 77.5 75.1 76.5 79.6 79.4 79.7 80.0 Glossary Cargo carried tonnes'000 1,873 2,389 2,659 2,623 2,577 2,509 2,377 2,250 2,086 1,796 Overall load carried RTKM million 12,510 39,505 42,304 41,250 39,296 36,931 34,207 31,137 27,621 23,672 Overall load factor % 50.5 67.4 66.8 67.2 65.0 65.5 67.3 66.5 67.5 66.7

Employee Employee strength-Emirates number 40,801 60,033 60,282 62,356 64,768 61,205 56,725 52,516 47,678 42,422 Employee strength-airline number 33,304 47,518 47,808 49,740 51,628 48,023 44,571 41,471 38,067 33,634 Revenue per airline employee AED'000 929 1,935 1,975 1,784 1,580 1,717 1,939 1,938 1,868 1,796 *pertains to year 2018-19 and earlier. From 1 April 2019, with the adoption of IFRS 16, applicable off-balance sheet leases havhavee been capitalised on the consolidated statement of financialfinancial position position and and related related lease lease liability is included in net debt. **includes temporary suspensions due to COVID-19 pandemic.

Notes : 1. The ten-year overview has been extracted from the audited financialfinancial statementsstatements whichwhich havehave beenbeen drawndrawn upup inin compliancecompliance withwith IFIFRS.RS. 2. Comparative figuresfigures are are restated, restated, where where applicable, applicable, according according to to IFRS IFRS rules rules i.e. i.e. only only the the immediately immediately preceding preceding year’s year’s figures figures are are restated. restated. 3. Employee strength is presented as at the reporting date from 2019-20 and onwards. Prior years’ data represent average employemployeeee strength. 189 ANNUAL REPORT 2020-21 dnata ten-year overview Overview

Emirates dnata Consolidated income statement 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 Revenue and other operating income AED m 5,541 14,760 14,419 13,074 12,182 10,630 9,160 7,565 6,622 5,755 Group

Financial information Operating costs* AED m 7,398 14,253 13,141 11,878 10,958 9,569 8,155 6,702 5,807 4,971 - of which employee costs AED m 3,290 5,875 5,386 5,055 4,654 3,847 3,351 3,251 2,771 2,488 Emirates financial - of which airport operations direct costs AED m 715 1,364 1,350 1,293 1,138 949 824 883 798 699 commentary - of which inflight catering direct cost AED m 326 1,352 1,070 843 794 715 735 663 601 451 dnata - of which travel services direct costs AED m 53 2,534 2,476 2,135 1,913 1,951 1,458 84 n/a n/a financial commentary Operating (loss) / profit AED m (1,857) 507 1,278 1,196 1,224 1,061 1,005 863 815 784 Emirates consolidated (Loss) / profit attributable to the Owner AED m (1,821) 618 1,445 1,317 1,210 1,054 906 829 819 808 financial statements dnata Consolidated statement of financial position consolidated financial Non-current assets AED m 7,314 8,143 6,196 5,718 5,372 4,590 4,219 4,364 3,594 3,759 statements Current assets AED m 6,960 8,560 8,895 8,574 6,675 6,388 5,427 4,303 3,977 3,360 Additional - of which cash assets AED m 4,690 5,316 5,122 4,945 3,398 3,465 3,148 2,434 2,396 1,999 information Total assets AED m 14,274 16,703 15,091 14,292 12,047 10,978 9,646 8,667 7,571 7,119 Emirates ten-year overview Total equity AED m 6,535 8,302 8,027 7,282 6,706 5,554 4,853 4,756 4,097 3,683 dnata - of which equity attributable to the Owner AED m 6,554 8,259 7,911 7,103 6,539 5,387 4,788 4,674 4,028 3,614 ten-year Non-current liabilities AED m 3,839 4,109 2,126 1,734 1,542 1,362 1,213 1,386 1,351 1,275 overview Current liabilities AED m 3,900 4,292 4,938 5,276 3,799 4,062 3,580 2,525 2,123 2,161 Group ten-year overview Consolidated statement of cash flows Group companies Cash flow from operating activities AED m 10 1,393 1,417 1,858 1,281 1,390 1,058 1,125 1,162 1,167 of Emirates Cash flow from investing activities AED m (179) (878) 78 (2,157) (961) (1,076) (697) 316 (1,910) (431) Group Cash flow from financing activities AED m (548) (899) (643) 78 (146) (496) (344) (443) (343) (718) companies of dnata Net change in cash and cash equivalents AED m (717) (384) 852 (221) 174 (182) 17 998 (1,091) 18

Glossary Other financial data Cash assets AED m 4,690 5,316 5,122 4,945 3,398 3,465 3,148 2,434 2,396 1,999 * includes net impairment loss on trade and other receivables.

Notes : 1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. 2. Comparative figures are restated, where applicable, according to IFRS rules i.e. only the immediately preceding year’s figures are restated.

190 ANNUAL REPORT 2020-21 dnata ten-year overview Overview

Emirates dnata Key ratios 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 Operating margin % (33.5) 3.4 8.9 9.1 10.0 10.0 11.0 11.4 12.3 13.6 Group (Loss) / profit margin % (32.9) 4.2 10.0 10.1 9.9 9.9 9.9 11.0 12.4 14.0 Financial information Return on Owner's funds % (24.6) 7.6 19.2 19.3 20.3 20.7 19.2 19.1 21.4 23.7

Emirates financial Employee commentary Employee strength number 34,344 48,503 45,004 41,007 40,978 34,117 27,428 22,980 20,229 18,356 dnata Revenue per employee AED'000 161 304 320 319 297 333 399 356 327 322 financial commentary Key operating statistics Emirates consolidated financial Airport operations statements Aircraft turns handled number 289,526 680,867 698,739 659,591 623,611 389,412 298,298 288,335 264,950 253,434 dnata Cargo handled tonnes'000 2,686 2,929 3,091 3,083 2,844 2,056 1,671 1,604 1,570 1,543 consolidated financial Catering statements Meals uplifted number'000 16,939 93,492 70,889 55,718 60,747 57,062 57,687 41,275 28,584 26,708 Additional information Travel services Emirates Total transaction value (TTV) AED m 229 10,751 11,459 11,281 10,687 11,747 9,782 5,892 5,357 2,630 ten-year overview dnata ten-year overview

Group ten-year overview

Group companies of Emirates

Group companies of dnata

Glossary

Notes : 1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. 2. Comparative figures are restated, where applicable, according to IFRS rules i.e. only the immediately preceding year’s figures are restated. 3. Employee strength is presented as at the reporting date from 2019-20 and onwards. Prior years’ data represent average employee strength.

191 ANNUAL REPORT 2020-21 Group ten-year overview Overview

Emirates dnata Financial highlights 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 Revenue and other operating income* AED m 35,586 104,002 109,255 102,409 94,706 92,896 96,053 87,766 77,536 66,149 Group Operating costs* AED m 52,464 97,087 105,330 97,127 91,047 83,505 89,155 82,643 73,882 63,552 Financial information Operating (loss) / profit AED m (16,878) 6,915 3,925 5,282 3,659 9,391 6,898 5,123 3,654 2,597

Emirates Operating margin % (47.4) 6.6 3.6 5.2 3.9 10.1 7.2 5.8 4.7 3.9 financial (Loss) / profit attributable to the Owner AED m (22,100) 1,674 2,316 4,113 2,460 8,179 5,461 4,083 3,102 2,310 commentary (Loss) / profit margin % (62.1) 1.6 2.1 4.0 2.6 8.8 5.7 4.7 4.0 3.5 dnata financial Dividend to the Owner AED m - - 500 2,000 - 2,500 2,569 1,026 1,000 850 commentary

Emirates Financial position consolidated Total assets** AED m 165,872 188,461 142,267 141,625 133,281 129,989 120,886 110,100 102,188 84,127 financial statements Cash assets AED m 19,798 25,565 22,159 25,365 19,066 23,453 20,033 18,995 26,968 17,586 dnata consolidated Employee financial statements Employee strength number 75,145 108,536 105,286 103,363 105,746 95,322 84,153 75,496 67,907 60,778

Additional * After eliminating inter company income/expense of the year. information ** After eliminating inter company receivables/payables as at year end.

Emirates ten-year overview dnata ten-year overview

Group ten-year overview

Group companies of Emirates

Group companies of dnata

Glossary

Notes : 1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. 2. Comparative figures are restated, where applicable, according to IFRS rules i.e. only the immediately preceding year’s figures are restated. 3. Employee strength is presented as at the reporting date from 2019-20 and onwards. Prior years’ data represent average employee strength.

192 ANNUAL REPORT 2020-21 Group companies of Emirates Overview Hotel operations, food and Emirates Air transportation related services Consumer goods beverage operations and others dnata Emirates Emirates Emirates

Group 100% Maritime and Mercantile International 100% Dnata Travel (UK) Limited (Holding) LLC (UAE) 100% Emirates Hotels (Australia) Pty Ltd Financial information 100% DN Travel ApS (Denmark) 100% MMI Tanzania PVT Ltd 50% Queen OS Trading FZE (UAE) 100% Emirates Hotel LLC (UAE) Emirates financial 100% DS Travel GmbH (Germany) 90.8% Prembev International FZE (UAE) 49% Independent Wine & Spirit () 100% Emirates Land Development Services LLC commentary Co. Ltd (UAE) 100% Brand 2 Consumer (Pty) Ltd 100% Emirates Leisure Retail (Holding) LLC dnata 100% Emirates Vacations LLC (United States) 40% Cooperhouse Asia Pte. Ltd (Singapore) financial (South Africa) (UAE) commentary 100% The High Street LLC (UAE) 90% Seyvine Ltd (Seychelles) 40% Diamond Wines & Spirits PTE. Ltd 100% Air Ventures Holding, Inc. (USA) Emirates (Singapore) consolidated financial 68.7% Maritime and Mercantile International 40% Platinum Wines & Spirits Pte. Ltd 100% Transguard Aviation Security LLC (UAE) LLC (UAE) 75% Air Ventures, LLC (USA) statements (Singapore) dnata 50% Emirates - CAE Flight Training LLC (UAE) 100% Duty Free Dubai Ports FZE (UAE) 40% Royalton Wine & Spirits Private Ltd 100% Air Ventures LGA, LLC (USA) consolidated (Singapore) financial statements 50% CAE Middle East Pilot Services LLC (UAE) 100% Harts International LLC (UAE) 40% Titanium International Wines & Spirits 100% Emirates Leisure Retail (Australia) Pty Ltd PTE. Ltd (Singapore) Additional information 100% Golden Globe (BVI) Ltd 15% Savero Distributors Ltd (Cyprus) 100% ELRA Properties Pty Ltd (Australia) Catering services 100% Hudcom Pty Ltd (Australia) Emirates 50% Arabian Harts International Ltd 100% Hudsons Pty Ltd (Australia) ten-year Emirates (BVI)* 100% Hudsons Airport Launceston Pty Ltd (Australia) overview 100% Hudsons Albury Pty Ltd (Australia) 100% Harts International Retailers (Middle dnata 90% Emirates Flight Catering Co. (LLC) (UAE) East) FZE (UAE) 100% Hudsons Bendigo Pty Ltd (Australia) ten-year 100% Hudsons Bourke Spring Pty Ltd (Australia) overview 100% Maritime and Mercantile International 100% Hudsons Elizabeth (Melb) Pty Ltd (Australia) 80% Emirates Crop One LLC (UAE) FZE (UAE) Group 100% Hudsons Epworth Richmond Pty Ltd (Australia) ten-year 100% Hudsons Gawler Pty Ltd (Australia) 65% Emirates Cuisine Solutions LLC (UAE) 70% Oman United Agencies LLC overview 100% Hudsons George (Bris) Pty Ltd (Australia) 100% Hudsons Grenfell Currie Pty Ltd (Australia) Group 92.5% Sohar Catering & Supplies Co. LLC companies 65% Kosher Arabia LLC (UAE) (Oman) 100% Hudsons Hospital Australia Pty Ltd (Australia) of Emirates 100% Hudsons Hospitals Nth Adelaide Pty Ltd (Australia) 100% Hudsons Hospitals S.A. Pty Ltd (Australia) Group 67.1% Onas Trading LLC (Oman) companies 100% Hudsons Hospitals Victoria Pty Ltd (Australia) of dnata 100% Hudsons King William Pty Ltd (Australia) 50% Sirocco FZCO (UAE) 100% Hudsons Launceston Pty Ltd (Australia) Glossary 100% Hudsons Little Collins Flinders Pty Ltd (Australia) 49% Fujairah Maritime and Mercantile International LLC (UAE) 100% Hudsons Liverpool Pty Ltd (Australia) 100% Hudsons Murray Pty Ltd (Australia) 50% Focus Brands Ltd (BVI) 100% Hudsons Shepparton Pty Ltd (Australia) 100% Hudsons WA Airports Pty Ltd (Australia) 50% Lanka Premium Beverage PVT Limited 100% Hudsons William Pty Ltd (Australia) () 100% Emirates Leisure Retail (Singapore) Pte Ltd

100% Emirates Leisure Retail (New Zealand) Ltd

68.7% Emirates Leisure Retail LLC (UAE)

Note: Percentages indicate beneficial interest in the company, legal shareholdings may be different. The country of incorporation is same as country of principal operations. 51% Premier Inn Hotels LLC (UAE) *Country of principal operations is UAE. 193 ANNUAL REPORT 2020-21 Group companies of dnata Overview

Emirates Airport Operations Catering dnata dnata dnata

Group 100% Dnata International Airport Services Pte 100% Dnata Aviation Services Limited (UK) Ltd (Singapore) 100% Dnata Catering Services Limited (UK) Financial information 100% Airline Cleaning Services Pty Ltd (Australia) 100% CIAS International Pte Ltd (Singapore) 100% Alpha Flight Group Limited (UK) 100% En Route International Limited (UK) Emirates 100% Alpha Flight Services Pty Ltd financial 100% dnata Aviation Services Canada Limited 100% dnata Singapore Pte Ltd (Singapore)* 100% En Route NV commentary (Australia) 50% G.T.A. Dnata Ground Handling Limited dnata 20% Guangzhou Baiyun International 100% Alpha ATS Pty Ltd (Australia) 100% En Route International Australia Pty, Ltd financial (Canada) Airport Ground Handling Services Co. Ltd commentary (P. R. ) 50% G.T.A. Dnata Ground Handling YVR 100% dnata Catering Australia 100% En Route International General Trading Limited (Canada) Subsidiary 2 Pty Ltd LLC (UAE) Emirates 100% Dubai Express LLC (UAE) consolidated financial 50% G.T.A. Dnata World Cargo Limited 100% dnata Catering Australia 100% En Route International Limited (Canada) Subsidiary 1 Pty Ltd (Hong Kong) statements 100% Freightworks Logistics LLC (UAE) dnata 100% dnata Aviation Services US Inc. (USA) 100% Snap Fresh Pty Ltd (Australia) 100% En Route International South Africa (Pty) Ltd consolidated 80% Dnata Airport Services Kurdistan financial (Cayman Islands) statements 100% ALX Cargo Center IAH LLC (USA) 100% Alpha Flight US, Inc. 100% En Route International USA, Inc. 100% Dnata for Airport Services Ltd Additional (Kurdistan, Iraq) information 100% dnata Aviation USA Inc. 100% Alpha Inflight US, LLC 70% Dubz Holding Limited (BVI) Emirates 100% Ground Services International Inc. 84.5% dnata Catering US, LLC (USA) 100% dnata Catering UK Limited ten-year (USA) (England) overview 100% Delivering Your Bags Passenger Luggage Delivery LLC (UAE) dnata 100% Metro Air Service Inc. (USA) 100% 121 Group Holdings LLC (USA) 100% Alpha Flight UK Ltd ten-year 51% Bolloré Logistics LLC (UAE) overview 100% dnata BV (The Netherlands) 100% 121 at BNA LLC (USA) 100% dnata s.r.l (Italy) Group 51% Dnata PW Airport Logistics LLC (UAE) ten-year overview 100% dnata NV (Belgium) 100% 121 at Oxford LLC (USA) 80% Alpha Flight a.s. () 50% Gerry’s Dnata (Private) Ltd (Pakistan) Group 100% dnata US Inflight Catering companies 100% dnata Limited (UK) LLC (USA) 64.2% dnata Catering SRL (Romania) of Emirates 100% Dnata Switzerland AG Group 100% dnata Cargo Limited (UK) 100% North Salem Deli LLC (USA) 49% Alpha Flight Services UAE LLC companies of dnata 30% GVAssistance SA (Switzerland) 100% dnata Ground Limited (UK) 100% Dnata Catering Canada Limited 35.9% Jordan Flight Catering Company Ltd Glossary 99% dnata Pty Ltd (Australia) 35.7% Airports Bureau Systems Ltd (UK) 100% dnata Catering Ireland Ltd 28.7% Silver Wings OOD (Bulgaria) 100% dnata Airport Services Pty Ltd. 100% dnata, Inc. () (Australia) 99.2% Consortium Alpha DZZD (Bulgaria) 100% Airport Handling Services Australia 100% dnata Clark Inc. (Philippines) Pty Ltd

70% Airport Handling SpA (Italy)

70% RM Servicos Auxilliares de Transporte Aereo Ltda ()

95% Air Dispatch (CLC) s.r.o. (Czech Republic) Note: Percentages indicate beneficial interest in the company, legal shareholdings may be different. 100% Air Dispatch (CLC) Spolka z.o.o. The country of incorporation is same as country of principal operations. (Poland) 194 * Also provides catering services. ANNUAL REPORT 2020-21 Group companies of dnata Overview

Emirates Travel services Others dnata dnata / dnata World Travel dnata / dnata World Travel dnata

Group 100% Cleopatra International Travel Co. W.L.L. 100% Destination Asia LLC (UAE) (Bahrain) 100% Travel Partners LLC (UAE) 100% Plafond Fit Out LLC (UAE) Financial information 100% dnata Travel Inc. (Philippines) 100% Travel Partners Iberian, Sociedad 100% Destination Asia Limited (UAE) Limitada (Spain) 100% Transecure LLC (UAE) Emirates financial 100% Destination Asia (Singapore) Pte Limited 100% dnata d.o.o. Beograd (Serbia) 100% Travel Partners (London) Limited (UK) 50% Transguard Group LLC (UAE) commentary 100% Maritime and Mercantile International dnata 100% Destination Asia Destination 75% Super Bus Tourism LLC (UAE) 100% CASS International General Trading LLC financial Management Sdn Bhd () Travel LLC (UAE) (UAE) commentary 100% Destination Asia Japan Limited 76.9% Oman United Agencies Travel LLC 70% dnata Travel Company Limited (Saudi 50% Transguard Cash LLC (UAE) Emirates Arabia) consolidated financial 100% Sama Travel & Services International 100% dnata Aviation Services Company 100% Destination Asia Limited (Hong Kong) LLC (Oman) Limited (Saudi Arabia) 100% Transguard Cash Services LLC (UAE) statements 100% Cruise Asia By Destination Asia 100% Transguard Group International LLC dnata 50% Moon Travel LLC (Oman) Limited (Hong Kong) 60% Priohub LLC (UAE) (UAE) consolidated financial statements 100% eDA Services Limited (Hong Kong) 100% Dunya Travel LLC (UAE) 51% Imagine Enterprises Limited (UK) 100% Transguard Group Cash KSA LLC (UAE)

Additional 100% Dunya Air Services LLC (UAE) 51% Transguard Group International LLC information 100% Destination Asia (Thailand) Limited 100% Imagine Cruising GmbH (Germany) (Oman) Emirates 100% Destination Asia (Vietnam) Limited 100% Najm Travel LLC (UAE)* ten-year (Hong Kong) 100% Imagine Cruising Limited (UK) overview 100% Travel Management Services Limited dnata (Hong Kong) 100% Imagine Transport Limited (UK) ten-year overview 100% Destination Group Asia (Hong Kong) Limited 100% Imagine Cruising Pty Ltd (Australia) Group ten-year 100% DMC Management Asia Services overview Limited (Hong Kong) 100% Imagine Cruising (Pty) Ltd (South Africa)

Group 100% Imagine Cruising (WA) PTY Ltd companies 100% PT Destination Asia (Indonesia) (Australia) of Emirates

Group 100% dnata International Private Ltd (India) 50% Travel Counsellors LLC (UAE) companies of dnata 100% dnata Marketing Services Pvt Ltd (India) Glossary 100% dnata Travel and Tourism WLL (Bahrain)

100% dnata Travel Holdings UK Limited 100% Travel 2 Limited (UK)

100% Airline Network Limited (UK) 100% Travelbag Limited (UK)

100% Gold Medal Travel Group Ltd (UK) 100% Travel Republic Ltd (UK)

100% Gold Medal Transport Ltd (UK) 82.28% BD4 Travel Limited (UK)

100% Personalised Travel Services Limited (UK) 100% BD4 Travel GmbH (Germany) Note: Percentages indicate beneficial interest in the company, legal shareholdings may be different. The country of incorporation is same as country of principal operations. 14.29% Travel Technology Initiative Limited 100% Sunmaster Limited (UK) (UK) *Country of principal operations is Iraq. 195 ANNUAL REPORT 2020-21 Glossary Overview

Emirates dnata

Group A D N R

Financial Acquisitions – The sum of purchase Dividend payout ratio – Dividend Net debt – Borrowings and lease Return on Owner’s funds – Profit information consideration for acquisition of accruing to the Owner divided by profit liabilities (current and non-current) net attributable to the Owner expressed as a Emirates subsidiaries and investments made in attributable to the Owner. of cash assets. percentage of Owner’s funds. financial associates and joint ventures. commentary E Net debt to equity ratio – Net debt in RPKM (Revenue Passenger Kilometre) ASKM (Available Seat Kilometre) – relation to total equity. – Number of passengers carried dnata financial Passenger seat capacity measured in EBITDA – Operating profit before multiplied by the distance flown. commentary seats available multiplied by the depreciation, amortisation and O RTKM (Revenue Tonne Kilometre) – distance flown. impairment (and aircraft operating lease Emirates Operating cash margin – Cash Actual traffic load (passenger and cargo) consolidated rentals for financial years 2018-19 and financial ATKM (Available Tonne Kilometre) generated from operating activities carried measured in terms of tonnes before). statements – Overall capacity measured in tonnes expressed as a percentage of the sum of multiplied by the distance flown. dnata available for carriage of passengers EBITDA margin – EBITDA expressed as revenue and other operating income. consolidated and cargo load multiplied by the a percentage of the sum of revenue and T financial Operating margin – Operating profit distance flown. other operating income. statements expressed as a percentage of the sum of Total revenue – Sum of revenue and Additional B Equity ratio – Total equity divided by revenue and other operating income. other operating income. information total assets. Overall load factor – RTKM divided Total transaction value – The sum of Breakeven load factor – The load Emirates by ATKM. gross revenue from agency and package ten-year factor at which revenue will equal F overview sales, net of government taxes. operating costs. Owner’s funds – Average of opening Fixed to floating debt mix – Ratio of dnata and closing equity attributable to the Traffic – see RTKM fixed rate debt to floating rate debt. The ten-year C Owner. overview ratio is based on net debt (including Transport revenue – The sum of Group Capacity – see ATKM aircraft operating leases for financial P passenger, cargo and excess ten-year years 2018-19 and before). baggage revenue. Capital expenditure – The sum overview Passenger seat factor – RPKM divided of additions to property, plant and Free cash flow – Cash generated from Group by ASKM. U companies equipment and intangible assets. operating activities less cash used in of Emirates investing activities adjusted for the Passenger yield (Fils per RPKM) – Unit cost (Fils per ATKM) – Operating costs Capitalised value of aircraft operating movement in short term bank deposits. Passenger revenue divided by RPKM. (airline only) incurred per ATKM. Group lease costs – 60% of future minimum companies lease payments for aircraft on operating Freight yield (Fils per FTKM) – Cargo of dnata Profit margin – Profit attributable to the Y lease (applicable to financial years 2018- revenue divided by FTKM. Owner expressed as a percentage of sum Glossary 19 and before). From 1 April 2019, with of revenue and other operating income. FTKM - Cargo tonnage uplifted Yield (Fils per RTKM) – Revenue (airline the adoption of IFRS 16, the related lease multiplied by the distance carried. only) earned per RTKM. liabilities are included in net debt.

Cash assets – The sum of short term bank deposits and cash and cash equivalents.

196

Emirates P.O. Box 686, Dubai, United Arab Emirates, emirates.com dnata P.O. Box 1515, Dubai, United Arab Emirates, dnata.com