Going further THE EMIRATES GROUP ANNUAL REPORT
2013-14
His Highness Sheikh Mohammed bin Rashid Al Maktoum Vice President and Prime Minister of the UAE and Ruler of Dubai
The United Arab Emirates was ranked 19th overall in the World Economic Forum’s
The Emirates Group’s footprint now spans over 80 countries, connecting people,
2013 Global Competitiveness Index (GCI), and 1st globally in six sectors of the GCI
business and opportunities all over the world. In its 55 years of operations, the Group
index. It is an achievement we are proud of, and one that drives us to work harder to
has managed to maintain a balance between profitability and sustainability, and
obtain further progress.
stayed true to the principles of good business – healthy competition, accountability,
From our historical roots as a trading post, the UAE and Dubai have embraced
and delivering added value.
and built on the advantages of our geographic location. We invest in strong and
The aviation sector is a strategic pillar for the UAE economy without which tourism
sustainable infrastructure such as world-class airports, marine ports, tourism and
and trade cannot flourish, and the Emirates Group plays a vital role in this eco-system.
commercial institutions, to establish our country as an important gateway for global
Looking at its track record, strategies, and investments in people and infrastructure,
trade flows, investments and travel; while not forgetting social priorities like education,
I am confident the Emirates Group is in a strong position to address future challenges
healthcare and housing for the people who live and work here.
with agility and imagination, and that it will continue to make valuable contributions
Our leading national corporations help contribute to the vision and goals of our
not only to the UAE, but also the global aviation industry.
country, and in many ways they also exemplify the spirit that defines us as a nation the dynamic and global mindset, openness to healthy competition, and the quest for continuous improvement.
1
His Highness Sheikh Mohammed bin Rashid Al Maktoum Vice President and Prime Minister of the UAE and Ruler of Dubai
The United Arab Emirates was ranked 19th overall in the World Economic Forum’s
The Emirates Group’s footprint now spans over 80 countries, connecting people,
2013 Global Competitiveness Index (GCI), and 1st globally in six sectors of the GCI
business and opportunities all over the world. In its 55 years of operations, the Group
index. It is an achievement we are proud of, and one that drives us to work harder to
has managed to maintain a balance between profitability and sustainability, and
obtain further progress.
stayed true to the principles of good business – healthy competition, accountability,
From our historical roots as a trading post, the UAE and Dubai have embraced
and delivering added value.
and built on the advantages of our geographic location. We invest in strong and
The aviation sector is a strategic pillar for the UAE economy without which tourism
sustainable infrastructure such as world-class airports, marine ports, tourism and
and trade cannot flourish, and the Emirates Group plays a vital role in this eco-system.
commercial institutions, to establish our country as an important gateway for global
Looking at its track record, strategies, and investments in people and infrastructure,
trade flows, investments and travel; while not forgetting social priorities like education,
I am confident the Emirates Group is in a strong position to address future challenges
healthcare and housing for the people who live and work here.
with agility and imagination, and that it will continue to make valuable contributions
Our leading national corporations help contribute to the vision and goals of our
not only to the UAE, but also the global aviation industry.
country, and in many ways they also exemplify the spirit that defines us as a nation the dynamic and global mindset, openness to healthy competition, and the quest for continuous improvement.
1
| 11 Charting our future | 12 Taking our customers further | 14 Taking the 16 Emirates experience further | Extending our brand reach | 18 Taking our people further | 20 Focusing on results and 22 long term goals |
| 25 The air services provider 26 that goes further | Airport operations: investing in 28 capacity and capability | Cargo: meeting challenges 30 and seizing opportunities | Catering: expanding our 32 global footprint | Travel: a focused strategy 34 for growth | mercator: better business 36 through technology |
| 49 dnata Financial Commentary | 59 Emirates Independent 65 Auditor’s Report | Emirates Consolidated 66 Financial Statements | dnata Independent 109 Auditor’s Report | dnata Consolidated 110 Financial Statements |
| 146 dnata ten-year overview | 148 Group companies of Emirates | 150 Group companies of dnata | 151 Glossary | 152
Going further to achieve our potential
|4 Chairman’s statement | 6 The leadership team | 8 Financial highlights
Taking our business further
Emirates is a global airline, serving 142 cities in 80 countries from its hub in Dubai, United Arab Emirates. Operating the world’s largest fleets of Airbus A380 and Boeing 777 aircraft, its main activity is the provision of commercial air transportation services.
Emirates Financial Commentary
| Our growing network | 46 Group key events
dnata is one of the largest combined air services providers in the world and the largest travel management services company in the UAE. Its main activities are the provision of cargo and ground handling, catering, information technology and travel 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
38
Emirates ten-year overview
document, they are together referred to as the Emirates Group.
3
| 11 Charting our future | 12 Taking our customers further | 14 Taking the 16 Emirates experience further | Extending our brand reach | 18 Taking our people further | 20 Focusing on results and 22 long term goals |
| 25 The air services provider 26 that goes further | Airport operations: investing in 28 capacity and capability | Cargo: meeting challenges 30 and seizing opportunities | Catering: expanding our 32 global footprint | Travel: a focused strategy 34 for growth | mercator: better business 36 through technology |
| 49 dnata Financial Commentary | 59 Emirates Independent 65 Auditor’s Report | Emirates Consolidated 66 Financial Statements | dnata Independent 109 Auditor’s Report | dnata Consolidated 110 Financial Statements |
| 146 dnata ten-year overview | 148 Group companies of Emirates | 150 Group companies of dnata | 151 Glossary | 152
Going further to achieve our potential
|4 Chairman’s statement | 6 The leadership team | 8 Financial highlights
Taking our business further
Emirates is a global airline, serving 142 cities in 80 countries from its hub in Dubai, United Arab Emirates. Operating the world’s largest fleets of Airbus A380 and Boeing 777 aircraft, its main activity is the provision of commercial air transportation services.
Emirates Financial Commentary
| Our growing network | 46 Group key events
dnata is one of the largest combined air services providers in the world and the largest travel management services company in the UAE. Its main activities are the provision of cargo and ground handling, catering, information technology and travel 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
38
Emirates ten-year overview
document, they are together referred to as the Emirates Group.
3
Revenue and operating income in AED m 82,636
13-14 12-13
73,113
11-12 10-11 09-10
62,287 54,231 43,455
Profit attributable to the Owner in AED m 3,254
13-14 12-13 11-12
7,565
13-14 12-13
2,283
6,622
11-12
1,502
10-11 09-10
Revenue and operating income in AED m
5,375 3,538
5,755
10-11 09-10
4,406 3,160
Profit attributable to the Owner in AED m 13-14
829
12-13
819
11-12
808
10-11 09-10
576 613
Overview
Emirates
dnata
Group
Financial Information
Additional Information
Emirates
Emirates Group
Financial Highlights
Financial Highlights Revenue and other operating income* AED m Operating profit AED m Operating margin % Profit attributable to the Owner AED m Profit margin %
2013-14 2012-13 % change 87,766 77,536 13.2 5,123 3,654 40.2 5.8 4.7 1.1 pts 4,083 3,102 31.6 4.7 4.0 0.7 pts
Financial position Total assets** Cash assets
110,100 102,188 7.7 18,995 26,968 (29.6)
Employee data Average employee strength
AED m AED m
number
75,496
67,907
11.2
2012-13 figures have been re-classified to conform with the current year’s presentation. * After eliminating inter company income/expense of AED 2,435 million in 2013-14 (2012-13: AED 2,199 million). ** After eliminating inter company receivables/payables of AED 171 million in 2013-14 (2012-13: AED 186 million). Percentages and ratios are derived based on the full figure before rounding. 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.
4
dnata
Financial Highlights 2013-14 2012-13 % change Financial Highlights 2013-14 2012-13 % change Revenue and results Revenue and results Revenue and other operating income AED m 82,636 73,113 13.0 Revenue and other operating income AED m 7,565 6,622 14.2 Operating profit AED m 4,260 2,839 50.1 Operating profit AED m 863 815 5.9 Operating margin % 5.2 3.9 1.3 pts Operating margin % 11.4 12.3 (0.9) pts Profit attributable to the Owner AED m 3,254 2,283 42.5 Profit attributable to the Owner AED m 829 819 1.2 Profit margin % 3.9 3.1 0.8 pts Profit margin % 11.0 12.4 (1.4) pts Return on shareholder’s funds % 13.6 10.4 3.2 pts Return on shareholder’s funds % 19.1 21.4 (2.3) pts Financial position and cash flow Financial position Total assets AED m 101,604 94,803 7.2 Total assets AED m 8,667 7,571 14.5 Cash assets AED m 16,561 24,572 (32.6) Cash assets AED m 2,434 2,396 1.6 Net debt (including aircraft operating lease) equity ratio % 209.9 186.4 23.5 pts Key operating statistics EBITDAR AED m 17,229 13,891 24.0 Aircraft handled number 288,335 264,950 8.8 EBITDAR margin % 20.8 19.0 1.8 pts Cargo handled tonnes ‘000 1,604 1,570 2.2 Meals uplifted number ‘000 41,275 28,584 44.4 Airline operating statistics Travel services related net sales AED bn 5.9 5.4 10.0 Passengers carried number ‘000 44,537 39,391 13.1 Cargo carried tonnes ‘000 2,250 2,086 7.9 Employee data Passenger seat factor % 79.4 79.7 (0.3) pts Average employee strength number 22,980 20,229 13.6 Overall capacity ATKM million 46,820 40,934 14.4 Available seat kilometres ASKM million 271,133 236,645 14.6 Aircraft number 217 197 10.2 Employee data Average employee strength number 52,516 47,678
10.1
5
Revenue and operating income in AED m 82,636
13-14 12-13
73,113
11-12 10-11 09-10
62,287 54,231 43,455
Profit attributable to the Owner in AED m 3,254
13-14 12-13 11-12
7,565
13-14 12-13
2,283
6,622
11-12
1,502
10-11 09-10
Revenue and operating income in AED m
5,375 3,538
5,755
10-11 09-10
4,406 3,160
Profit attributable to the Owner in AED m 13-14
829
12-13
819
11-12
808
10-11 09-10
576 613
Overview
Emirates
dnata
Group
Financial Information
Additional Information
Emirates
Emirates Group
Financial Highlights
Financial Highlights Revenue and other operating income* AED m Operating profit AED m Operating margin % Profit attributable to the Owner AED m Profit margin %
2013-14 2012-13 % change 87,766 77,536 13.2 5,123 3,654 40.2 5.8 4.7 1.1 pts 4,083 3,102 31.6 4.7 4.0 0.7 pts
Financial position Total assets** Cash assets
110,100 102,188 7.7 18,995 26,968 (29.6)
Employee data Average employee strength
AED m AED m
number
75,496
67,907
11.2
2012-13 figures have been re-classified to conform with the current year’s presentation. * After eliminating inter company income/expense of AED 2,435 million in 2013-14 (2012-13: AED 2,199 million). ** After eliminating inter company receivables/payables of AED 171 million in 2013-14 (2012-13: AED 186 million). Percentages and ratios are derived based on the full figure before rounding. 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.
4
dnata
Financial Highlights 2013-14 2012-13 % change Financial Highlights 2013-14 2012-13 % change Revenue and results Revenue and results Revenue and other operating income AED m 82,636 73,113 13.0 Revenue and other operating income AED m 7,565 6,622 14.2 Operating profit AED m 4,260 2,839 50.1 Operating profit AED m 863 815 5.9 Operating margin % 5.2 3.9 1.3 pts Operating margin % 11.4 12.3 (0.9) pts Profit attributable to the Owner AED m 3,254 2,283 42.5 Profit attributable to the Owner AED m 829 819 1.2 Profit margin % 3.9 3.1 0.8 pts Profit margin % 11.0 12.4 (1.4) pts Return on shareholder’s funds % 13.6 10.4 3.2 pts Return on shareholder’s funds % 19.1 21.4 (2.3) pts Financial position and cash flow Financial position Total assets AED m 101,604 94,803 7.2 Total assets AED m 8,667 7,571 14.5 Cash assets AED m 16,561 24,572 (32.6) Cash assets AED m 2,434 2,396 1.6 Net debt (including aircraft operating lease) equity ratio % 209.9 186.4 23.5 pts Key operating statistics EBITDAR AED m 17,229 13,891 24.0 Aircraft handled number 288,335 264,950 8.8 EBITDAR margin % 20.8 19.0 1.8 pts Cargo handled tonnes ‘000 1,604 1,570 2.2 Meals uplifted number ‘000 41,275 28,584 44.4 Airline operating statistics Travel services related net sales AED bn 5.9 5.4 10.0 Passengers carried number ‘000 44,537 39,391 13.1 Cargo carried tonnes ‘000 2,250 2,086 7.9 Employee data Passenger seat factor % 79.4 79.7 (0.3) pts Average employee strength number 22,980 20,229 13.6 Overall capacity ATKM million 46,820 40,934 14.4 Available seat kilometres ASKM million 271,133 236,645 14.6 Aircraft number 217 197 10.2 Employee data Average employee strength number 52,516 47,678
10.1
5
Overview
22bn
Emirates
AED
dnata
(US$ 6 billion) invested across the Group,
Group
Financial Information
Chairman’s Statement
Additional Information
Going further – our defining mindset
Emirates announces the largest-ever aircraft order at the Dubai Air
the highest amount ever in one financial year,
Show for 50 A380s
to build a solid foundation for our future.
together worth US$ 99
and 150 Boeing 777X billion at list prices.
In every aspect of our operations, we strive to go further. It’s an organisational
Plotting a long-term course
The numbers bear out the results of our approach, as Emirates and dnata marked
information, communications and transactions. By then, 3.9 billion people are
culture and mindset that we believe sets us apart, and positions us optimally
At Emirates and dnata, we plot a course to sustainable profitability. For us, going
another record year. Our Group revenue of AED 87.8 billion (US$ 23.9 billion) is the
expected to travel by air, a 31% increase from 2012. In that same period, air cargo is
for the long term. This same driving force is reflected everywhere you look in
further means being agile and going the extra mile to excel in what we do. It means
highest in our 28-year history, up 13% on 2012-13. Profits of AED 4.1 billion (US$ 1.1
expected to grow 17%.
Dubai, our home and hub. In less than four decades, Dubai has transformed into
investing in our products, our people, our infrastructure, and the technology we use.
billion) were achieved, keeping pace with our growth even as we invested AED 22.0
a vibrant global city and a major commerce and tourism centre, because it is constantly aiming further, and going further.
This year, across Emirates and dnata, we strengthened our footprint and capabilities
billion (US$ 6.0 billion) across the Group – the highest amount ever in one financial
The opportunities for Emirates as a global connector of people and places, and for
year – to build a solid foundation for our future.
dnata, a world-class air services provider are obvious.
while keeping a laser focus on delivering the best value to our customers. We worked As part of its long-term vision for social and economic progress, Dubai
hard to strike the right balance between achieving immediate business priorities, and
Emirates carried 44.5 million passengers, 5.1 million more than in 2012-13, and 2.3 million
We will continue to work hard to stay ahead of our game and sustain our
has committed billions of dollars to develop its infrastructure across
planning ahead to capitalise on the possibilities of the future.
tonnes of airfreight, up 8%. dnata handled 1.6 million tonnes of cargo, handled 288,000
performance. Our track record and investments put us in a strong position to embrace
aircraft, a 9% increase over 2012-13, and served over 41 million meals at 62 airports.
the future and all of its possibilities and challenges.
destinations, offering even more connections for travel and trade, upgraded its
Embracing opportunities
More than ever before, we are ready to go further.
Winning the bid to host the World Expo in 2020 has only added to
products on board and on the ground, and invested in new technologies. dnata
People and businesses across the world want to connect, both virtually and physically,
the momentum. Over the next six years an estimated US$ 8.1 billion
made strategic acquisitions to complement and grow its travel, ground handling and
with an energy that cannot be stemmed. They demand the best goods, services and ideas
will be spent on infrastructure projects leading up to the event,
catering services in various markets, invested in new facilities in the UK and Dubai,
in a global marketplace, and technology makes all this possible at the tap of a finger.
generating tremendous opportunities for those who are prepared and
and launched a global One Safety campaign across its business. Across the Group, we
able to act on it.
added to our talent pool with 7,600 new staff recruited from over 50 countries.
industry sectors. These investments are driven not by a desire to be the biggest, but to be world-class.
6
Emirates expanded its global network by nine to 142 passenger and cargo
Some 3.5 billion people will be “online” by 2017, accessing the internet for
Ahmed bin Saeed Al Maktoum 7
Overview
22bn
Emirates
AED
dnata
(US$ 6 billion) invested across the Group,
Group
Financial Information
Chairman’s Statement
Additional Information
Going further – our defining mindset
Emirates announces the largest-ever aircraft order at the Dubai Air
the highest amount ever in one financial year,
Show for 50 A380s
to build a solid foundation for our future.
together worth US$ 99
and 150 Boeing 777X billion at list prices.
In every aspect of our operations, we strive to go further. It’s an organisational
Plotting a long-term course
The numbers bear out the results of our approach, as Emirates and dnata marked
information, communications and transactions. By then, 3.9 billion people are
culture and mindset that we believe sets us apart, and positions us optimally
At Emirates and dnata, we plot a course to sustainable profitability. For us, going
another record year. Our Group revenue of AED 87.8 billion (US$ 23.9 billion) is the
expected to travel by air, a 31% increase from 2012. In that same period, air cargo is
for the long term. This same driving force is reflected everywhere you look in
further means being agile and going the extra mile to excel in what we do. It means
highest in our 28-year history, up 13% on 2012-13. Profits of AED 4.1 billion (US$ 1.1
expected to grow 17%.
Dubai, our home and hub. In less than four decades, Dubai has transformed into
investing in our products, our people, our infrastructure, and the technology we use.
billion) were achieved, keeping pace with our growth even as we invested AED 22.0
a vibrant global city and a major commerce and tourism centre, because it is constantly aiming further, and going further.
This year, across Emirates and dnata, we strengthened our footprint and capabilities
billion (US$ 6.0 billion) across the Group – the highest amount ever in one financial
The opportunities for Emirates as a global connector of people and places, and for
year – to build a solid foundation for our future.
dnata, a world-class air services provider are obvious.
while keeping a laser focus on delivering the best value to our customers. We worked As part of its long-term vision for social and economic progress, Dubai
hard to strike the right balance between achieving immediate business priorities, and
Emirates carried 44.5 million passengers, 5.1 million more than in 2012-13, and 2.3 million
We will continue to work hard to stay ahead of our game and sustain our
has committed billions of dollars to develop its infrastructure across
planning ahead to capitalise on the possibilities of the future.
tonnes of airfreight, up 8%. dnata handled 1.6 million tonnes of cargo, handled 288,000
performance. Our track record and investments put us in a strong position to embrace
aircraft, a 9% increase over 2012-13, and served over 41 million meals at 62 airports.
the future and all of its possibilities and challenges.
destinations, offering even more connections for travel and trade, upgraded its
Embracing opportunities
More than ever before, we are ready to go further.
Winning the bid to host the World Expo in 2020 has only added to
products on board and on the ground, and invested in new technologies. dnata
People and businesses across the world want to connect, both virtually and physically,
the momentum. Over the next six years an estimated US$ 8.1 billion
made strategic acquisitions to complement and grow its travel, ground handling and
with an energy that cannot be stemmed. They demand the best goods, services and ideas
will be spent on infrastructure projects leading up to the event,
catering services in various markets, invested in new facilities in the UK and Dubai,
in a global marketplace, and technology makes all this possible at the tap of a finger.
generating tremendous opportunities for those who are prepared and
and launched a global One Safety campaign across its business. Across the Group, we
able to act on it.
added to our talent pool with 7,600 new staff recruited from over 50 countries.
industry sectors. These investments are driven not by a desire to be the biggest, but to be world-class.
6
Emirates expanded its global network by nine to 142 passenger and cargo
Some 3.5 billion people will be “online” by 2017, accessing the internet for
Ahmed bin Saeed Al Maktoum 7
Overview
Emirates
dnata
Group
Financial Information
Additional Information
Leadership team HH Sheikh Ahmed bin Saeed Al Maktoum Chairman & Chief Executive Emirates Airline & Group
8
Tim Clark President Emirates Airline
Gary Chapman President Group Services & dnata
Adel Ahmad Al Redha Executive Vice President, Chief Operations Officer, Emirates Airline
Thierry Antinori Executive Vice President, Chief Commercial Officer, Emirates Airline
Abdulaziz Al Ali Executive Vice President Human Resources, Emirates Group
Ali Mubarak Al Soori Executive Vice President Chairman’s Office, Facilities & Project Management & Non Aircraft P&L
Ismail Ali Albanna Executive Vice President dnata
Nigel Hopkins Executive Vice President Service Departments, Emirates Group
9
Overview
Emirates
dnata
Group
Financial Information
Additional Information
Leadership team HH Sheikh Ahmed bin Saeed Al Maktoum Chairman & Chief Executive Emirates Airline & Group
8
Tim Clark President Emirates Airline
Gary Chapman President Group Services & dnata
Adel Ahmad Al Redha Executive Vice President, Chief Operations Officer, Emirates Airline
Thierry Antinori Executive Vice President, Chief Commercial Officer, Emirates Airline
Abdulaziz Al Ali Executive Vice President Human Resources, Emirates Group
Ali Mubarak Al Soori Executive Vice President Chairman’s Office, Facilities & Project Management & Non Aircraft P&L
Ismail Ali Albanna Executive Vice President dnata
Nigel Hopkins Executive Vice President Service Departments, Emirates Group
9
Overview
Emirates
Each day, Emirates connects over 122,000 people and
dnata
6,000 tonnes of cargo with Group
one of the 142 destinations we serve. In 80 countries on
Financial Information
Additional Information
10
six continents, our team of
Going further to achieve our potential
over 52,000 people from 162 nationalities go further each day to ensure our customers can too.
11
Overview
Emirates
Each day, Emirates connects over 122,000 people and
dnata
6,000 tonnes of cargo with Group
one of the 142 destinations we serve. In 80 countries on
Financial Information
Additional Information
10
six continents, our team of
Going further to achieve our potential
over 52,000 people from 162 nationalities go further each day to ensure our customers can too.
11
700,000
Overview
tonnes per year handling capacity at
Emirates
Group
Financial Information
advanced facility of its kind owned by an airline.
World Central, with expansion potential to
In 2013-14, we added new
reach 1 million tonnes.
completed our new engine
maintenance hangars and shop in Dubai.
Charting our future Emirates is fortunate to have a home and hub in Dubai – a dynamic city that
fleet of more than 300 aircraft. Emirates SkyCargo, today the world’s largest international
draws global commerce and tourism through its progressive economic policies;
air freight airline by revenue tonne kilometres (RTKMs), will handle more than 15,000
a city whose favourable geographic location allows an airline to potentially serve
tonnes of freight a day.
80% of the world’s population within an eight-hour flying distance. Emirates’
want to provide our customers with the best flight experience.
The terminal infrastructure includes 46 truck docks and 80 truck parking spaces, in addition to 12 aircraft stands directly in front of the terminal. It will feature the latest
Having the best aircraft in the sky also means ensuring they operate in peak condition.
technology and systems, and allow Emirates SkyCargo to handle 700,000 tonnes per
Emirates today operates the largest dedicated engineering facility owned by an airline.
year at the facility, with a potential for further expansion to one million tonnes.
growth is inextricably linked to that of Dubai. We have the right ingredients
Between now and 2020, the demand for air transport services is forecast to continue
In 2013-14, we built new maintenance hangars and completed our engine shop in
for success, but with competition from over 120 other airlines operating out of
growing with the momentum of global trade and consumer demand.
Dubai in conjunction with General Electric. These multi-million dollar investments help
Our other project at DWC, the AED 500 million Emirates Flight Academy, was
us achieve long-term flexibility, quality control and rapid response speeds, even as we
announced in November. When complete, the facility will have its own 1.5 kilometre
reap immediate cost savings associated with transporting engines for repair.
runway, control tower, airport code and fleet of training aircraft. Initially catering to
Dubai, we do not take things for granted. We believe our future is in our hands, and that to stay at the top of our game we have In 2013-14, Emirates flew 44.5 million passengers and 2.3 million
to go further in everything that we do, even as we lay the groundwork to position
tonnes of cargo to 142 destinations in 80 countries. 24 wide-bodied
ourselves for future success.
Emirates’ own pilot cadet training needs, the Academy will eventually help address the Al Maktoum International airport at Dubai World Central (DWC) welcomed its first
Middle East’s projected need for 40,000 pilots over the next 20 years.
passenger flights in October 2013 as part of its phased development. Emirates
aircraft were added to our fleet, increasing our total capacity by 15%
12
is the largest and most
Emirates SkyCargo’s new terminal at Dubai
dnata
Additional Information
Emirates Engineering Centre
measured in available seat kilometres (ASKMs). Importantly, demand
Investing in the infrastructure to take us further
continues to be a part of the journey at DWC, working closely with its architects
In the hospitality sector, our JW Marriott Marquis Hotel Dubai property marked its first
for our services has kept pace with our growth, reflected in a high seat
At the 2013 Dubai Air Show, Emirates made its largest aircraft order yet - for 150
to map its capabilities and build flexibility into the designs to allow for future
full year of operations at Tower 1 and the soft opening of Tower 2. The latter will be
load factor of 79.4% for the year.
Boeing 777X and 50 Airbus A380 aircraft, together worth US$ 99 billion. Many of these
development and evolution. Our work this year focussed on the construction of our
fully operational in 2014-15.
aircraft, to be delivered from 2018 onwards, will replace the older ones in our fleet. It
new cargo terminal at DWC, in readiness for the move of all our freighter operations
By 2020, Emirates anticipates that we will carry some 70 million
reinforces our strategy of operating the most modern and efficient wide-body aircraft
from May 2014.
passengers to more than 180 destinations, utilising an ultra-modern
in the sky, not only for environmental and operational reasons, but also because we 13
700,000
Overview
tonnes per year handling capacity at
Emirates
Group
Financial Information
advanced facility of its kind owned by an airline.
World Central, with expansion potential to
In 2013-14, we added new
reach 1 million tonnes.
completed our new engine
maintenance hangars and shop in Dubai.
Charting our future Emirates is fortunate to have a home and hub in Dubai – a dynamic city that
fleet of more than 300 aircraft. Emirates SkyCargo, today the world’s largest international
draws global commerce and tourism through its progressive economic policies;
air freight airline by revenue tonne kilometres (RTKMs), will handle more than 15,000
a city whose favourable geographic location allows an airline to potentially serve
tonnes of freight a day.
80% of the world’s population within an eight-hour flying distance. Emirates’
want to provide our customers with the best flight experience.
The terminal infrastructure includes 46 truck docks and 80 truck parking spaces, in addition to 12 aircraft stands directly in front of the terminal. It will feature the latest
Having the best aircraft in the sky also means ensuring they operate in peak condition.
technology and systems, and allow Emirates SkyCargo to handle 700,000 tonnes per
Emirates today operates the largest dedicated engineering facility owned by an airline.
year at the facility, with a potential for further expansion to one million tonnes.
growth is inextricably linked to that of Dubai. We have the right ingredients
Between now and 2020, the demand for air transport services is forecast to continue
In 2013-14, we built new maintenance hangars and completed our engine shop in
for success, but with competition from over 120 other airlines operating out of
growing with the momentum of global trade and consumer demand.
Dubai in conjunction with General Electric. These multi-million dollar investments help
Our other project at DWC, the AED 500 million Emirates Flight Academy, was
us achieve long-term flexibility, quality control and rapid response speeds, even as we
announced in November. When complete, the facility will have its own 1.5 kilometre
reap immediate cost savings associated with transporting engines for repair.
runway, control tower, airport code and fleet of training aircraft. Initially catering to
Dubai, we do not take things for granted. We believe our future is in our hands, and that to stay at the top of our game we have In 2013-14, Emirates flew 44.5 million passengers and 2.3 million
to go further in everything that we do, even as we lay the groundwork to position
tonnes of cargo to 142 destinations in 80 countries. 24 wide-bodied
ourselves for future success.
Emirates’ own pilot cadet training needs, the Academy will eventually help address the Al Maktoum International airport at Dubai World Central (DWC) welcomed its first
Middle East’s projected need for 40,000 pilots over the next 20 years.
passenger flights in October 2013 as part of its phased development. Emirates
aircraft were added to our fleet, increasing our total capacity by 15%
12
is the largest and most
Emirates SkyCargo’s new terminal at Dubai
dnata
Additional Information
Emirates Engineering Centre
measured in available seat kilometres (ASKMs). Importantly, demand
Investing in the infrastructure to take us further
continues to be a part of the journey at DWC, working closely with its architects
In the hospitality sector, our JW Marriott Marquis Hotel Dubai property marked its first
for our services has kept pace with our growth, reflected in a high seat
At the 2013 Dubai Air Show, Emirates made its largest aircraft order yet - for 150
to map its capabilities and build flexibility into the designs to allow for future
full year of operations at Tower 1 and the soft opening of Tower 2. The latter will be
load factor of 79.4% for the year.
Boeing 777X and 50 Airbus A380 aircraft, together worth US$ 99 billion. Many of these
development and evolution. Our work this year focussed on the construction of our
fully operational in 2014-15.
aircraft, to be delivered from 2018 onwards, will replace the older ones in our fleet. It
new cargo terminal at DWC, in readiness for the move of all our freighter operations
By 2020, Emirates anticipates that we will carry some 70 million
reinforces our strategy of operating the most modern and efficient wide-body aircraft
from May 2014.
passengers to more than 180 destinations, utilising an ultra-modern
in the sky, not only for environmental and operational reasons, but also because we 13
New passenger routes 2013-14:
24 new aircraft
Overview
Emirates
dnata
Group
Financial Information
Additional Information
Stockholm, Sweden Clark, Philippines Milan-New York Conakry, Guinea Sialkot, Pakistan Kiev, Ukraine Kabul, Afghanistan Taipei, Taiwan Boston, USA New freighter routes 2013-14: Kano, Nigeria Guangzhou, China
joined Emirates’ fleet, adding a record
Quito, Ecuador
5.9 billion ATKMs – the largest capacity
by Emirates’ A380 aircraft:
increase in Emirates’ history in a single year.
Zurich, Los Angeles,
New destinations served London Gatwick, Brisbane, Mauritius, and Barcelona.
Taking our customers further In 2013-14, we took delivery of 16 Airbus A380 and eight Boeing 777 aircraft.
codeshare agreement with Jetstar, opening up 27 additional destinations in Australia,
year goal of handling two million customers. In 2013-14, Emirates Holidays expanded its
This year, we continued to build the foundations for our future growth. We created
These enabled us to strengthen our route network and launch new services to:
New Zealand and South East Asia for Emirates passengers, and expanding their
global distribution reach in September with its first global franchise, when it launched
an additional 700,000 tonnes of capacity at our new cargo terminal at Dubai World
Haneda, Japan; Stockholm, Sweden; Conakry, Guinea; Sialkot, Pakistan; Kiev,
opportunities to earn and redeem frequent flyer miles.
Emirates Vacations in the USA in partnership with Destination Southern Africa Inc.
Central, and at Dubai International airport we doubled capacity to 1.9 million tonnes.
(DSA vacations). This was followed in November by the launch of an Emirates Holidays
We also created a road corridor linking the two airports to ensure freight movements
franchise in Sri Lanka in partnership with Aitken Spence Travels and a new partnership
will be fast and smooth when our freighter operations move on 1 May 2014 to DWC.
Ukraine; Kabul, Afghanistan; Taipei, Taiwan; Boston, USA; and a new service between Milan and New York. We also launched flights to Clark in the Philippines
Our flagship A380 remains very popular with customers, having flown over 18 million
in October, but reflecting the dynamic nature of our industry, we made the decision
passengers when we marked the aircraft’s fifth year of service in August. In 2013-14,
to stop the service from May 2014.
we brought the total number of destinations served by the Emirates A380 to 27, with the introduction of A380 services to six new destinations – London Gatwick, Brisbane,
Each new destination added to our global network not only opens
Zurich, Los Angeles, Mauritius, and Barcelona. Emirates’ Los Angeles service is today
up new points for our customers, but also creates new city-pair
the world’s longest A380 flight at 16 hours and 20 minutes.
combinations for valuable trade and passenger traffic flows. Our
14
Haneda, Japan
Boston-Dubai route for instance, will benefit Boston and its surrounding
In August, we launched Emirates Executive, an Airbus A319 private jet service for business
region to the tune of US$ 132 million, according to data from the
travellers and VIPs. With every attention to quiet luxury and exclusive service, Emirates
Massachusetts Port Authority.
Executive has had a successful start, flying guests to destinations ranging from Kuwait
from December with Tour Brokers International in Nigeria. Taking the cargo business further Emirates SkyCargo continues to play a major role in the Dubai airfreight success story. In 2013-14, our tonnage transported increased by 8% to 2.3 million tonnes. In addition to bellyhold cargo capacity to Emirates’ new passenger destinations, in 2013-14 we launched new freighter operations to Kano, Nigeria; Guangzhou, China and Quito, Ecuador.
In April, Emirates SkyCargo became the first to implement Electronic-Air Waybill (e-AWB) shipments under the new industry standard, working with over 120 institutional freight customers and industry stakeholders on a smooth transition. To enhance our ability to fly perishable goods and pharmaceutical products more cost effectively, we also developed an innovative coating technology that moderates inflight freight temperature. Against the prevailing industry trend, Emirates SkyCargo achieved a 9% uptick in
and Johannesburg to Brazzaville and Gabala, and clocking over 132,000 kilometres on
We also received delivery of two Boeing 777 freighter aircraft, bringing our total
Emirates enjoyed our first full year of partnership with Qantas, allowing
commercial charters in its first months of operations. This year, we conducted a review
number of freighter aircraft to 12. Over the next two years, we will take delivery of
In the context of a global air cargo industry that is seeing sluggish recovery from the
more than a million people to take advantage of our combined
of our Destination and Leisure Management portfolio comprising Emirates Holidays and
three more 777 freighters, increasing our agility and ability to support trade flows
2008 financial crisis, our performance reflects the strong demand for our product, and
network into Australia, through Dubai and beyond. We also signed a
Arabian Adventures, and have started a change management process towards our five
between some of the world’s most important production centres.
the fruits of our investments in innovation and infrastructure.
revenue to AED 11.3 billion, contributing 15% to Emirates’ total transport revenues.
15
New passenger routes 2013-14:
24 new aircraft
Overview
Emirates
dnata
Group
Financial Information
Additional Information
Stockholm, Sweden Clark, Philippines Milan-New York Conakry, Guinea Sialkot, Pakistan Kiev, Ukraine Kabul, Afghanistan Taipei, Taiwan Boston, USA New freighter routes 2013-14: Kano, Nigeria Guangzhou, China
joined Emirates’ fleet, adding a record
Quito, Ecuador
5.9 billion ATKMs – the largest capacity
by Emirates’ A380 aircraft:
increase in Emirates’ history in a single year.
Zurich, Los Angeles,
New destinations served London Gatwick, Brisbane, Mauritius, and Barcelona.
Taking our customers further In 2013-14, we took delivery of 16 Airbus A380 and eight Boeing 777 aircraft.
codeshare agreement with Jetstar, opening up 27 additional destinations in Australia,
year goal of handling two million customers. In 2013-14, Emirates Holidays expanded its
This year, we continued to build the foundations for our future growth. We created
These enabled us to strengthen our route network and launch new services to:
New Zealand and South East Asia for Emirates passengers, and expanding their
global distribution reach in September with its first global franchise, when it launched
an additional 700,000 tonnes of capacity at our new cargo terminal at Dubai World
Haneda, Japan; Stockholm, Sweden; Conakry, Guinea; Sialkot, Pakistan; Kiev,
opportunities to earn and redeem frequent flyer miles.
Emirates Vacations in the USA in partnership with Destination Southern Africa Inc.
Central, and at Dubai International airport we doubled capacity to 1.9 million tonnes.
(DSA vacations). This was followed in November by the launch of an Emirates Holidays
We also created a road corridor linking the two airports to ensure freight movements
franchise in Sri Lanka in partnership with Aitken Spence Travels and a new partnership
will be fast and smooth when our freighter operations move on 1 May 2014 to DWC.
Ukraine; Kabul, Afghanistan; Taipei, Taiwan; Boston, USA; and a new service between Milan and New York. We also launched flights to Clark in the Philippines
Our flagship A380 remains very popular with customers, having flown over 18 million
in October, but reflecting the dynamic nature of our industry, we made the decision
passengers when we marked the aircraft’s fifth year of service in August. In 2013-14,
to stop the service from May 2014.
we brought the total number of destinations served by the Emirates A380 to 27, with the introduction of A380 services to six new destinations – London Gatwick, Brisbane,
Each new destination added to our global network not only opens
Zurich, Los Angeles, Mauritius, and Barcelona. Emirates’ Los Angeles service is today
up new points for our customers, but also creates new city-pair
the world’s longest A380 flight at 16 hours and 20 minutes.
combinations for valuable trade and passenger traffic flows. Our
14
Haneda, Japan
Boston-Dubai route for instance, will benefit Boston and its surrounding
In August, we launched Emirates Executive, an Airbus A319 private jet service for business
region to the tune of US$ 132 million, according to data from the
travellers and VIPs. With every attention to quiet luxury and exclusive service, Emirates
Massachusetts Port Authority.
Executive has had a successful start, flying guests to destinations ranging from Kuwait
from December with Tour Brokers International in Nigeria. Taking the cargo business further Emirates SkyCargo continues to play a major role in the Dubai airfreight success story. In 2013-14, our tonnage transported increased by 8% to 2.3 million tonnes. In addition to bellyhold cargo capacity to Emirates’ new passenger destinations, in 2013-14 we launched new freighter operations to Kano, Nigeria; Guangzhou, China and Quito, Ecuador.
In April, Emirates SkyCargo became the first to implement Electronic-Air Waybill (e-AWB) shipments under the new industry standard, working with over 120 institutional freight customers and industry stakeholders on a smooth transition. To enhance our ability to fly perishable goods and pharmaceutical products more cost effectively, we also developed an innovative coating technology that moderates inflight freight temperature. Against the prevailing industry trend, Emirates SkyCargo achieved a 9% uptick in
and Johannesburg to Brazzaville and Gabala, and clocking over 132,000 kilometres on
We also received delivery of two Boeing 777 freighter aircraft, bringing our total
Emirates enjoyed our first full year of partnership with Qantas, allowing
commercial charters in its first months of operations. This year, we conducted a review
number of freighter aircraft to 12. Over the next two years, we will take delivery of
In the context of a global air cargo industry that is seeing sluggish recovery from the
more than a million people to take advantage of our combined
of our Destination and Leisure Management portfolio comprising Emirates Holidays and
three more 777 freighters, increasing our agility and ability to support trade flows
2008 financial crisis, our performance reflects the strong demand for our product, and
network into Australia, through Dubai and beyond. We also signed a
Arabian Adventures, and have started a change management process towards our five
between some of the world’s most important production centres.
the fruits of our investments in innovation and infrastructure.
revenue to AED 11.3 billion, contributing 15% to Emirates’ total transport revenues.
15
11m
Overview
Emirates
Group
Financial Information
to complete close to one million trips in 2013-14. We upgraded the Emirates Lounge in Paris Charles De Gaulle airport, and began upgrading work in London Gatwick and
were handled by Emirates’ contact
Bangkok as part of a
centre team in 18 languages.
lounge refurbishment
multi-million US dollar programme.
Taking the Emirates experience further Emirates is an enthusiastic participant in the evolution of the aviation industry,
We launched “live” television channels, so passengers can stay abreast of global news
official Twitter channels, one of which is dedicated to supporting customers’ queries.
experience as our hub in Dubai International airport Concourse A. We also expanded our
and we work hard to continually raise the bar across our business.
and sports events from the skies, and expanded access to affordable high-speed
We also announced a new, 300-seat customer contact centre in Budapest, to support
dedicated Emirates Lounge network, with the opening of a brand new EUR 2.8 million Lounge at Rome’s Leonardo da Vinci Fiumicino airport, our second in Italy after Milan.
connectivity for passengers in every cabin, so our passengers can browse the internet
our future growth and enhance the language and response capabilities of our six
On the ground and in the air, our aim is to provide the best possible
or stay in touch with friends and colleagues on their personal devices. To date, a
other global contact centres. Today, our contact centres handle 11 million calls in 18
experience for our customers. We keep abreast of the latest
quarter of the aircraft in our fleet are already equipped with Wi-Fi and we will continue
languages a year, supporting customers from 45 countries.
technology and products, we look at creative ways to meet our
to roll out installation across all of our aircraft.
customers’ needs, and we never stop trying to improve.
Our unrelenting commitment to quality and customer experience was recognised at the annual Skytrax awards in June, where Emirates was named “World’s Best Airline”
We also expanded our chauffeur-drive services across our network, completing close
and we also won “Best Inflight Entertainment” for an unprecedented ninth consecutive
We look at the Emirates experience holistically. It is not only about the flight, but the
to one million trips in 2013-14, and transporting 23% more premium customers to and
year. The Skytrax awards are based on the votes of 18 million business and leisure
This year, Emirates invested significantly to ensure our inflight
experience at every part of the journey - whether on board or online. This year we
from the airport compared to the previous year. At the airport, we harnessed custom-
customers from more than 160 countries.
entertainment systems continue to set the highest standards at 30,000
significantly modernised our digital presence, to make sure the transaction experience
designed Windows based software to revamp our check-in procedures.
feet. In 2008, Emirates was the first airline to enable passengers to
is smoother than ever. We launched the “Inspire Me” tool, helping passengers to
use mobile phones to send text messages and make calls during their
find ideal travel destinations on www.emirates.com by suggesting options to meet
We also invested EUR 3.8 million to upgrade the Emirates Lounge in Paris Charles De
flight. In 2013-14, we marked the one millionth mobile phone call, and
personalised criteria such as location, climate and activities.
Gaulle airport, and began upgrading work for our dedicated lounges in London Gatwick
the 13 millionth text message sent on board by our passengers, since the service was introduced.
16
chauffeur-drive services
calls from customers in 45 countries
dnata
Additional Information
Emirates expanded its
and Bangkok. These projects are part of a multi-million dollar refurbishment programme In March, Emirates increased its social media footprint with the launch of its two
to bring all of the 30-plus Emirates Lounges in our network to the same design
17
11m
Overview
Emirates
Group
Financial Information
to complete close to one million trips in 2013-14. We upgraded the Emirates Lounge in Paris Charles De Gaulle airport, and began upgrading work in London Gatwick and
were handled by Emirates’ contact
Bangkok as part of a
centre team in 18 languages.
lounge refurbishment
multi-million US dollar programme.
Taking the Emirates experience further Emirates is an enthusiastic participant in the evolution of the aviation industry,
We launched “live” television channels, so passengers can stay abreast of global news
official Twitter channels, one of which is dedicated to supporting customers’ queries.
experience as our hub in Dubai International airport Concourse A. We also expanded our
and we work hard to continually raise the bar across our business.
and sports events from the skies, and expanded access to affordable high-speed
We also announced a new, 300-seat customer contact centre in Budapest, to support
dedicated Emirates Lounge network, with the opening of a brand new EUR 2.8 million Lounge at Rome’s Leonardo da Vinci Fiumicino airport, our second in Italy after Milan.
connectivity for passengers in every cabin, so our passengers can browse the internet
our future growth and enhance the language and response capabilities of our six
On the ground and in the air, our aim is to provide the best possible
or stay in touch with friends and colleagues on their personal devices. To date, a
other global contact centres. Today, our contact centres handle 11 million calls in 18
experience for our customers. We keep abreast of the latest
quarter of the aircraft in our fleet are already equipped with Wi-Fi and we will continue
languages a year, supporting customers from 45 countries.
technology and products, we look at creative ways to meet our
to roll out installation across all of our aircraft.
customers’ needs, and we never stop trying to improve.
Our unrelenting commitment to quality and customer experience was recognised at the annual Skytrax awards in June, where Emirates was named “World’s Best Airline”
We also expanded our chauffeur-drive services across our network, completing close
and we also won “Best Inflight Entertainment” for an unprecedented ninth consecutive
We look at the Emirates experience holistically. It is not only about the flight, but the
to one million trips in 2013-14, and transporting 23% more premium customers to and
year. The Skytrax awards are based on the votes of 18 million business and leisure
This year, Emirates invested significantly to ensure our inflight
experience at every part of the journey - whether on board or online. This year we
from the airport compared to the previous year. At the airport, we harnessed custom-
customers from more than 160 countries.
entertainment systems continue to set the highest standards at 30,000
significantly modernised our digital presence, to make sure the transaction experience
designed Windows based software to revamp our check-in procedures.
feet. In 2008, Emirates was the first airline to enable passengers to
is smoother than ever. We launched the “Inspire Me” tool, helping passengers to
use mobile phones to send text messages and make calls during their
find ideal travel destinations on www.emirates.com by suggesting options to meet
We also invested EUR 3.8 million to upgrade the Emirates Lounge in Paris Charles De
flight. In 2013-14, we marked the one millionth mobile phone call, and
personalised criteria such as location, climate and activities.
Gaulle airport, and began upgrading work for our dedicated lounges in London Gatwick
the 13 millionth text message sent on board by our passengers, since the service was introduced.
16
chauffeur-drive services
calls from customers in 45 countries
dnata
Additional Information
Emirates expanded its
and Bangkok. These projects are part of a multi-million dollar refurbishment programme In March, Emirates increased its social media footprint with the launch of its two
to bring all of the 30-plus Emirates Lounges in our network to the same design
17
At US$5.5 billion, Emirates is the world’s
Overview
Most Valuable Airline Brand
Emirates
dnata
Group
Zealand sailed against Oracle Team USA in San Francisco Bay in the final races of the 34th
for the third consecutive year.
Financial Information
Additional Information
Emirates Team New
America’s Cup in 2013.
Extending our brand reach Emirates continued to invest strategically in its brand throughout 2013-14, and
This year, we expanded our brand reach by signing as Official Partner of the Roland
In July, we provided aviation enthusiasts with a whole new way to experience Emirates
Brand Finance Global 500 Report for 2014, with an estimated brand value of US$ 5.5
make progress towards our goal to become a top global lifestyle brand. Our
Garros tennis tournament in Paris for five years, and extending our investment in The
when we opened the Emirates Aviation Experience, a £4 million visitor attraction in
billion. This was an increase of 34% over its 2013 value.
brand platform, “Hello Tomorrow”, celebrates the endless possibilities that
European Tour across an additional 10 golf tournaments until 2017 as Official Airline.
London featuring four commercial flight simulators under one roof.
global connectivity can bring for the human race - a potential that results from
We announced we will sponsor the Rugby World Cups 2015 in England and 2019 in
the connection of people and places, of passions and cultures, of ideas and
Japan, and signed a shirt sponsorship deal with the New York Cosmos.
opportunities.
Our brand team also worked closely with departments across the airline to ensure that everything we do – from marketing campaigns to our food menus, from the language
We partnered with international football superstars Pelé and Cristiano Ronaldo who
used by our service staff to the uniforms they wear, from our website experience to the
Our sponsorships are one of the most visible ways in which we
both became Emirates’ Global Ambassadors, and starred in our campaign which
soft toys and amenities provided on board – express what our brand represents.
connect people with their passions. Emirates today is one of the
showed how people can make the most unexpected “connections” at 30,000 feet on
most recognised brands in top-level sport through our partnerships
board an Emirates flight. The campaign attracted over 280 million views online in less
Our brand power helps us achieve outstanding results in activities such as recruitment,
with some of the world’s most famous football clubs, Formula 1 ,
than four weeks from its launch in March.
sales and marketing, and the attracting of investment. More tangibly, Emirates was
®
international cricket, rugby, tennis, golf, horse racing, and America’s
named the world’s “Most Valuable Airline Brand” for the third consecutive year in the
Cup sailing.
18
19
At US$5.5 billion, Emirates is the world’s
Overview
Most Valuable Airline Brand
Emirates
dnata
Group
Zealand sailed against Oracle Team USA in San Francisco Bay in the final races of the 34th
for the third consecutive year.
Financial Information
Additional Information
Emirates Team New
America’s Cup in 2013.
Extending our brand reach Emirates continued to invest strategically in its brand throughout 2013-14, and
This year, we expanded our brand reach by signing as Official Partner of the Roland
In July, we provided aviation enthusiasts with a whole new way to experience Emirates
Brand Finance Global 500 Report for 2014, with an estimated brand value of US$ 5.5
make progress towards our goal to become a top global lifestyle brand. Our
Garros tennis tournament in Paris for five years, and extending our investment in The
when we opened the Emirates Aviation Experience, a £4 million visitor attraction in
billion. This was an increase of 34% over its 2013 value.
brand platform, “Hello Tomorrow”, celebrates the endless possibilities that
European Tour across an additional 10 golf tournaments until 2017 as Official Airline.
London featuring four commercial flight simulators under one roof.
global connectivity can bring for the human race - a potential that results from
We announced we will sponsor the Rugby World Cups 2015 in England and 2019 in
the connection of people and places, of passions and cultures, of ideas and
Japan, and signed a shirt sponsorship deal with the New York Cosmos.
opportunities.
Our brand team also worked closely with departments across the airline to ensure that everything we do – from marketing campaigns to our food menus, from the language
We partnered with international football superstars Pelé and Cristiano Ronaldo who
used by our service staff to the uniforms they wear, from our website experience to the
Our sponsorships are one of the most visible ways in which we
both became Emirates’ Global Ambassadors, and starred in our campaign which
soft toys and amenities provided on board – express what our brand represents.
connect people with their passions. Emirates today is one of the
showed how people can make the most unexpected “connections” at 30,000 feet on
most recognised brands in top-level sport through our partnerships
board an Emirates flight. The campaign attracted over 280 million views online in less
Our brand power helps us achieve outstanding results in activities such as recruitment,
with some of the world’s most famous football clubs, Formula 1 ,
than four weeks from its launch in March.
sales and marketing, and the attracting of investment. More tangibly, Emirates was
®
international cricket, rugby, tennis, golf, horse racing, and America’s
named the world’s “Most Valuable Airline Brand” for the third consecutive year in the
Cup sailing.
18
19
Over 20%
Overview
4,800 new employees from all over the world to join the Emirates family of more than
of employees have been with
Emirates
the company for 10 years or
dnata
more, and 5% for over 20
Group
Financial Information
Additional Information
This year we recruited
160 nationalities, taking the total number of employees to over 52,000. The strength of the Emirates brand and the company’s track record
years, testament to Emirates’
of performance attracted
excellence as an employer.
across the company
over 430,000 applications in 2013-14.
Taking our people further This year we recruited 4,800 new employees from all over the world, taking the
Our Human Resources team also worked hard to provide the industry’s best training
For our pilots, this year Emirates invested more than US$ 35 million to add two new
An innovative performance management system has been developed, our staff travel
Emirates family comprising of over 160 nationalities to more than 50,000-strong.
opportunities and create a work culture where our employees know they are valued
simulators - an A380 and a Boeing 777 - to our existing nine. We also streamlined
and medical benefits were enhanced, and self-service kiosks were introduced to help
and vital members of a multi-cultural, multi-lingual global team.
training processes to maximise aircraft simulator face-time.
staff access administrative HR services at their convenience.
record of performance attracted over 430,000 applications across all
This year, we aligned our training processes to better meet the requirements of our
In the UAE, we launched the prestigious Emirates Aviation College Aviation
The results of our work are clear. Today, over 11,300 of our 52,000 employees have
divisions in 2013-14. However, keeping pace with the dynamic staffing
growth. Satellite training centres for airport service functions were established in
Management Programme, enabling us to train 40 young Emiratis over a four-year
been with Emirates for more than a decade, and 2,700 for more than 20 years.
needs across the company remained a significant task for our Human
America, Australia, the United Kingdom and India, enabling us to quickly equip new
period in every aspect of airline industry management. Each student is a full-time
Resources team, as Emirates continues to grow and operate into new
recruits with the skills needed to make a success of their chosen career. Plans to open
employee of Emirates from the start of the course.
markets – requiring new and specialist talent.
a centre in South Africa were also finalised.
The strength of the Emirates Group brands and the company’s track
20
21
Over 20%
Overview
4,800 new employees from all over the world to join the Emirates family of more than
of employees have been with
Emirates
the company for 10 years or
dnata
more, and 5% for over 20
Group
Financial Information
Additional Information
This year we recruited
160 nationalities, taking the total number of employees to over 52,000. The strength of the Emirates brand and the company’s track record
years, testament to Emirates’
of performance attracted
excellence as an employer.
across the company
over 430,000 applications in 2013-14.
Taking our people further This year we recruited 4,800 new employees from all over the world, taking the
Our Human Resources team also worked hard to provide the industry’s best training
For our pilots, this year Emirates invested more than US$ 35 million to add two new
An innovative performance management system has been developed, our staff travel
Emirates family comprising of over 160 nationalities to more than 50,000-strong.
opportunities and create a work culture where our employees know they are valued
simulators - an A380 and a Boeing 777 - to our existing nine. We also streamlined
and medical benefits were enhanced, and self-service kiosks were introduced to help
and vital members of a multi-cultural, multi-lingual global team.
training processes to maximise aircraft simulator face-time.
staff access administrative HR services at their convenience.
record of performance attracted over 430,000 applications across all
This year, we aligned our training processes to better meet the requirements of our
In the UAE, we launched the prestigious Emirates Aviation College Aviation
The results of our work are clear. Today, over 11,300 of our 52,000 employees have
divisions in 2013-14. However, keeping pace with the dynamic staffing
growth. Satellite training centres for airport service functions were established in
Management Programme, enabling us to train 40 young Emiratis over a four-year
been with Emirates for more than a decade, and 2,700 for more than 20 years.
needs across the company remained a significant task for our Human
America, Australia, the United Kingdom and India, enabling us to quickly equip new
period in every aspect of airline industry management. Each student is a full-time
Resources team, as Emirates continues to grow and operate into new
recruits with the skills needed to make a success of their chosen career. Plans to open
employee of Emirates from the start of the course.
markets – requiring new and specialist talent.
a centre in South Africa were also finalised.
The strength of the Emirates Group brands and the company’s track
20
21
Overview
Emirates
AED
dnata
years of the Flex Tracks programme for flights between Dubai and Australia which has reduced fuel burn by over 3,800 tonnes over the year, and more than 12,000
of instruments to finance new aircraft.
Financial Information
tonnes of CO2 emissions.
Focusing on results and long term goals Achieving long-term, sustainable profitability is a guiding principle for Emirates.
Externally, we worked tirelessly to find and serve new flows of passengers and
2013, Emirates and Airservices Australia marked the 10-year anniversary of the Flex
Certificate, for the funding of four A380 acquisitions, improving our access to US
Without it, there could not be the investment in innovation and service that
airfreight. We continually engage with industry stakeholders and regulators all over
Tracks programme for flights between Dubai and Australia. The programme saved
capital markets. The issuance was in line with our ongoing strategy of ensuring
defines us, nor could we hope to meet our growth targets.
the world to champion the role that air transport has on economies, and the benefits
over 3,800 tonnes of fuel on daily flights to Australia over the year, reducing CO2
financing sources are both geographically diverse and spread over a wide investor
of open skies policies over outdated protectionist thinking that only serve to limit
emissions by more than 12,000 tonnes. Our flight operational procedures of using idle
base. Another landmark was achieved when Emirates refinanced two A380s through
economic growth.
reverse thrust on landing and shutting one engine down while taxiing also saved 6,076
the first ever floating-rate capital market bond, backed by COFACE (the French Export
tonnes of fuel, equivalent to more than 19,000 tonnes of CO2.
Credit Agency) guarantee.
This year, despite launching ten new passenger routes, three new freighter routes and increasing our seat capacity and belly hold cargo significantly with the arrival of new aircraft to our fleet, we maintained
We recognise that aside from contributing economically in the markets where we
seat factors at close to 80% - a similar level to the previous year’s
operate, we also have a responsibility to the broader community. In November, Emirates
Financing for the future
Profitability and sound commercial management is about going further to ensure
performance and a considerable achievement.
announced a partnership with Airbus Corporate Foundation and Action Against Hunger,
In terms of securing funds for future growth, our proposition remains highly
we do even the little things the right way. We will continue to innovate and invest,
to utilise future Emirates A380 deliveries to transport humanitarian support to the
attractive to the international financial community. In 2013-14, we raised AED 12.0
to maintain our reputation for being a premium and respected airline brand, but we
Internally, our commercial teams have worked hard to go further in
United Nations Humanitarian Response Depot. Earlier in April, Emirates announced our
billion for aircraft financing and have already received offers of finance sufficient to
never lose sight of the imperative for profitability.
terms of securing off-peak revenues and maximising peak revenues for
“Greener Tomorrow� initiative which commits US$ 150,000 collected from our internal
cover almost all deliveries due in 2014-15. This year, eight of the aircraft of which we
the long-term. This year, we extensively restructured our commercial
recycling efforts to support of environmental or conservation projects. These are in
took delivery were funded through two cutting-edge corporate bonds that blended
We believe the future could not be more exciting, and Emirates is going further
focus areas and created a global sales department to better reflect
addition to the projects supported by the Emirates Airline Foundation.
Sharia-compliant and traditional financing techniques. The amortising bonds have
today to put in place the necessary resources and infrastructure to ensure that we are
since garnered international awards for innovation and for performance.
prepared for it.
the changed geographical realities of our times. As a result, our
22
Australia marked 10
funding raised in 2013-14, using a mix
Group
Additional Information
12bn
Emirates and Airservices
commercial teams finish the year well positioned to react quickly and
We also look for efficiencies in every aspect of our operations. High fuel prices are a
profitably to the ever-changing nature of global demand, both for
major consideration for our long-term profitability, and so we continue to work closely
This year also saw Emirates achieve significant financing milestones. We began
passenger flights and for the transport of airfreight.
with air service navigation providers to find more direct flight paths. In December
the year with the issuance through a lessor of a second Enhanced Equipment Trust
23
Overview
Emirates
AED
dnata
years of the Flex Tracks programme for flights between Dubai and Australia which has reduced fuel burn by over 3,800 tonnes over the year, and more than 12,000
of instruments to finance new aircraft.
Financial Information
tonnes of CO2 emissions.
Focusing on results and long term goals Achieving long-term, sustainable profitability is a guiding principle for Emirates.
Externally, we worked tirelessly to find and serve new flows of passengers and
2013, Emirates and Airservices Australia marked the 10-year anniversary of the Flex
Certificate, for the funding of four A380 acquisitions, improving our access to US
Without it, there could not be the investment in innovation and service that
airfreight. We continually engage with industry stakeholders and regulators all over
Tracks programme for flights between Dubai and Australia. The programme saved
capital markets. The issuance was in line with our ongoing strategy of ensuring
defines us, nor could we hope to meet our growth targets.
the world to champion the role that air transport has on economies, and the benefits
over 3,800 tonnes of fuel on daily flights to Australia over the year, reducing CO2
financing sources are both geographically diverse and spread over a wide investor
of open skies policies over outdated protectionist thinking that only serve to limit
emissions by more than 12,000 tonnes. Our flight operational procedures of using idle
base. Another landmark was achieved when Emirates refinanced two A380s through
economic growth.
reverse thrust on landing and shutting one engine down while taxiing also saved 6,076
the first ever floating-rate capital market bond, backed by COFACE (the French Export
tonnes of fuel, equivalent to more than 19,000 tonnes of CO2.
Credit Agency) guarantee.
This year, despite launching ten new passenger routes, three new freighter routes and increasing our seat capacity and belly hold cargo significantly with the arrival of new aircraft to our fleet, we maintained
We recognise that aside from contributing economically in the markets where we
seat factors at close to 80% - a similar level to the previous year’s
operate, we also have a responsibility to the broader community. In November, Emirates
Financing for the future
Profitability and sound commercial management is about going further to ensure
performance and a considerable achievement.
announced a partnership with Airbus Corporate Foundation and Action Against Hunger,
In terms of securing funds for future growth, our proposition remains highly
we do even the little things the right way. We will continue to innovate and invest,
to utilise future Emirates A380 deliveries to transport humanitarian support to the
attractive to the international financial community. In 2013-14, we raised AED 12.0
to maintain our reputation for being a premium and respected airline brand, but we
Internally, our commercial teams have worked hard to go further in
United Nations Humanitarian Response Depot. Earlier in April, Emirates announced our
billion for aircraft financing and have already received offers of finance sufficient to
never lose sight of the imperative for profitability.
terms of securing off-peak revenues and maximising peak revenues for
“Greener Tomorrow� initiative which commits US$ 150,000 collected from our internal
cover almost all deliveries due in 2014-15. This year, eight of the aircraft of which we
the long-term. This year, we extensively restructured our commercial
recycling efforts to support of environmental or conservation projects. These are in
took delivery were funded through two cutting-edge corporate bonds that blended
We believe the future could not be more exciting, and Emirates is going further
focus areas and created a global sales department to better reflect
addition to the projects supported by the Emirates Airline Foundation.
Sharia-compliant and traditional financing techniques. The amortising bonds have
today to put in place the necessary resources and infrastructure to ensure that we are
since garnered international awards for innovation and for performance.
prepared for it.
the changed geographical realities of our times. As a result, our
22
Australia marked 10
funding raised in 2013-14, using a mix
Group
Additional Information
12bn
Emirates and Airservices
commercial teams finish the year well positioned to react quickly and
We also look for efficiencies in every aspect of our operations. High fuel prices are a
profitably to the ever-changing nature of global demand, both for
major consideration for our long-term profitability, and so we continue to work closely
This year also saw Emirates achieve significant financing milestones. We began
passenger flights and for the transport of airfreight.
with air service navigation providers to find more direct flight paths. In December
the year with the issuance through a lessor of a second Enhanced Equipment Trust
23
Overview
Emirates
dnata
Group
On five continents, in 38 countries, in 90 cities and at
Financial Information
Additional Information
75 airports, dnata moves the aviation industry
Taking our business further
forward. We work hard to reach new heights, without ever leaving the ground. From the UK to Australia, in catering, ground handling, cargo and travel, our team
of
23,000
people
delivers the promises our customers make.
24
25
Overview
Emirates
dnata
Group
On five continents, in 38 countries, in 90 cities and at
Financial Information
Additional Information
75 airports, dnata moves the aviation industry
Taking our business further
forward. We work hard to reach new heights, without ever leaving the ground. From the UK to Australia, in catering, ground handling, cargo and travel, our team
of
23,000
people
delivers the promises our customers make.
24
25
No compromise on safety Safety is our number one priority.
success. It is part of a new governance structure that enables
dnata launched the ‘One Safety’ programme towards the end
issues to be addressed at each level of the workplace, while
of the last financial year – a global initiative to which we have
allowing escalation to the most senior executive levels.
committed AED 70 million. Since its launch, One Safety has Overview
Emirates
AED
dnata
Group
Financial Information
Additional Information
most importantly, our employees.
One Safety goes beyond eradicating workplace hazards. Driven by carefully selected 12-strong teams of ‘Safety ICONs’, it is designed to strengthen a culture of collective
This year, we established the Executive Safety Board chaired
responsibility and common purpose that safeguards everyone
by our President, sending a clear message that safety is a core
within the dnata family.
value and ensuring that it gets the attention it deserves.
Our goal is to be a leader in the field of workplace safety, and
invested across the dnata business
The Board establishes the safety vision, provides direction,
to ensure that safety is at the top of every employee’s mind. It
in 2013-14, a new record.
sponsors safety change initiatives, monitors our safety metrics
is our responsibility as an employer and as a service provider
and is there to remove barriers that prevent change or
for our customers. We will never compromise on safety.
The air services provider that goes further A complex and wide-ranging business that spans the globe, dnata’s aim is a
cargo, helps people arrange their travel plans, handles baggage, provides airlines and
to ensure the infrastructure gives us everything required to provide state-of-the-art
International Airport Operations, UAE Airport Operations, Catering, and Travel. This
simple one: be the most admired air services provider in the world. This goal
freight operators with business technology, and ensures passengers reach their final
service to our airline clients for both the short- and long-term future.
reflects dnata’s burgeoning international operations, and positions the business for future
underpins every strategic decision we make. It pushes us to innovate, it drives
destination. We are proud of the role we play within the industry.
us to deliver on the promises our customers make, and it is the backbone of our operations around the world.
growth through efficiencies within its ground handling and cargo management services. Beyond Dubai, we continued to develop our business in many of our key markets,
2013-14 has been another record year for dnata, with revenues climbing 14% to AED
particularly in the United Kingdom and Australia, where we have cemented our
Today, we aim to separate ourselves from the competition through the quality we
7.6 billion. Across all areas of operation, we have focused on delivering innovation and
position as the air services provider of choice to a large number of market-leading
provide to our customers. We want to be the partner of choice for airlines committed
We provide airport operations, travel, catering, and technology
long-term growth. This year, we have also invested heavily in strategic acquisitions,
clients for ground handling and cargo management, as well as corporate and retail
to excellence.
services to thousands of clients each day. Today, dnata is in 90 cities
in our people, and in our products and services, to position our company for the
travel services.
across the world, ensuring our customers’ promises are delivered.
challenges and opportunities of tomorrow’s global marketplace. Our investments into
Though our reach is global, our touch is local. We touch millions
the business this year reached a new record of AED 850 million.
of people’s lives daily, across 38 countries, at 75 airports on five
26
850m
already brought considerable benefits for our business and
continents, and we strive to maintain the highest standards. Our
In Dubai, we have worked hard to ensure we keep pace with the continued growth of
position in the market must be one of quality: quality through
the airport and travel industry, while providing service excellence in all that we deliver
innovation and service.
to our clients.
dnata’s work, in every geography in which we operate, provides the
This year, we welcomed the first passenger flights at Al Maktoum International Airport
vital functions that allow the aviation industry as a whole to thrive. Our
at Dubai World Central, adding to our roster of passenger and cargo airline customers
team of 23,000 staff uplifts meals; services aircraft, moves all types of
operating from Dubai’s second airport. We also worked with the airport’s designers
dnata won numerous awards this year, including the prestigious “Ground Handler Our growth strategy, while ambitious, is controlled. We continue to look at acquisition
of the Year” award from Air Cargo News, and Air Transport News. These awards,
targets and green field opportunities. We identify regions which will benefit from our
involving independent expert panels and a global voting audience, evaluated
expertise, and where dnata can contribute and add value to the community.
dnata’s performance in safety, innovation, entrepreneurship, achievements, financial performances, new products and contributions to society. These wins were
Where possible, we have broadened our capabilities to be able to offer clients a ‘one-
particularly significant achievements as it signals how dnata is now being seen and
stop shop’ proposition for all air service functions, be they line maintenance, aircraft
judged holistically.
cleaning, catering, travel services, or cargo management. We are proud of the work we do, and we believe we have the staff, the culture and the In March, we reorganised our leadership team into four core business divisions:
business agility to continue to flourish over the coming years.
27
No compromise on safety Safety is our number one priority.
success. It is part of a new governance structure that enables
dnata launched the ‘One Safety’ programme towards the end
issues to be addressed at each level of the workplace, while
of the last financial year – a global initiative to which we have
allowing escalation to the most senior executive levels.
committed AED 70 million. Since its launch, One Safety has Overview
Emirates
AED
dnata
Group
Financial Information
Additional Information
most importantly, our employees.
One Safety goes beyond eradicating workplace hazards. Driven by carefully selected 12-strong teams of ‘Safety ICONs’, it is designed to strengthen a culture of collective
This year, we established the Executive Safety Board chaired
responsibility and common purpose that safeguards everyone
by our President, sending a clear message that safety is a core
within the dnata family.
value and ensuring that it gets the attention it deserves.
Our goal is to be a leader in the field of workplace safety, and
invested across the dnata business
The Board establishes the safety vision, provides direction,
to ensure that safety is at the top of every employee’s mind. It
in 2013-14, a new record.
sponsors safety change initiatives, monitors our safety metrics
is our responsibility as an employer and as a service provider
and is there to remove barriers that prevent change or
for our customers. We will never compromise on safety.
The air services provider that goes further A complex and wide-ranging business that spans the globe, dnata’s aim is a
cargo, helps people arrange their travel plans, handles baggage, provides airlines and
to ensure the infrastructure gives us everything required to provide state-of-the-art
International Airport Operations, UAE Airport Operations, Catering, and Travel. This
simple one: be the most admired air services provider in the world. This goal
freight operators with business technology, and ensures passengers reach their final
service to our airline clients for both the short- and long-term future.
reflects dnata’s burgeoning international operations, and positions the business for future
underpins every strategic decision we make. It pushes us to innovate, it drives
destination. We are proud of the role we play within the industry.
us to deliver on the promises our customers make, and it is the backbone of our operations around the world.
growth through efficiencies within its ground handling and cargo management services. Beyond Dubai, we continued to develop our business in many of our key markets,
2013-14 has been another record year for dnata, with revenues climbing 14% to AED
particularly in the United Kingdom and Australia, where we have cemented our
Today, we aim to separate ourselves from the competition through the quality we
7.6 billion. Across all areas of operation, we have focused on delivering innovation and
position as the air services provider of choice to a large number of market-leading
provide to our customers. We want to be the partner of choice for airlines committed
We provide airport operations, travel, catering, and technology
long-term growth. This year, we have also invested heavily in strategic acquisitions,
clients for ground handling and cargo management, as well as corporate and retail
to excellence.
services to thousands of clients each day. Today, dnata is in 90 cities
in our people, and in our products and services, to position our company for the
travel services.
across the world, ensuring our customers’ promises are delivered.
challenges and opportunities of tomorrow’s global marketplace. Our investments into
Though our reach is global, our touch is local. We touch millions
the business this year reached a new record of AED 850 million.
of people’s lives daily, across 38 countries, at 75 airports on five
26
850m
already brought considerable benefits for our business and
continents, and we strive to maintain the highest standards. Our
In Dubai, we have worked hard to ensure we keep pace with the continued growth of
position in the market must be one of quality: quality through
the airport and travel industry, while providing service excellence in all that we deliver
innovation and service.
to our clients.
dnata’s work, in every geography in which we operate, provides the
This year, we welcomed the first passenger flights at Al Maktoum International Airport
vital functions that allow the aviation industry as a whole to thrive. Our
at Dubai World Central, adding to our roster of passenger and cargo airline customers
team of 23,000 staff uplifts meals; services aircraft, moves all types of
operating from Dubai’s second airport. We also worked with the airport’s designers
dnata won numerous awards this year, including the prestigious “Ground Handler Our growth strategy, while ambitious, is controlled. We continue to look at acquisition
of the Year” award from Air Cargo News, and Air Transport News. These awards,
targets and green field opportunities. We identify regions which will benefit from our
involving independent expert panels and a global voting audience, evaluated
expertise, and where dnata can contribute and add value to the community.
dnata’s performance in safety, innovation, entrepreneurship, achievements, financial performances, new products and contributions to society. These wins were
Where possible, we have broadened our capabilities to be able to offer clients a ‘one-
particularly significant achievements as it signals how dnata is now being seen and
stop shop’ proposition for all air service functions, be they line maintenance, aircraft
judged holistically.
cleaning, catering, travel services, or cargo management. We are proud of the work we do, and we believe we have the staff, the culture and the In March, we reorganised our leadership team into four core business divisions:
business agility to continue to flourish over the coming years.
27
Handling
250 airlines 27 airports 9 countries,
dnata purchased the aircraft cleaning
at
Overview
to complement its Australian ground handling services;
in
Emirates
dnata
Group
Financial Information
Additional Information
company Broadlex,
launched private aviation services at London Heathrow; and ramped up operations in Dubai with ongoing capacity expansion at
dnata is also the world’s largest ground
Dubai International, as
handler of the Airbus A380.
passenger services at
well as the launch of Dubai World Central.
Airport operations: investing in capacity and capability In 2013-14, we invested significantly in our ground handling operations at home
industry average of 6.96 per thousand.
and abroad.
In the UK, we completed projects that will bring a quantum change to our ability to
In Zurich, we installed equipment to allow our teams to service A380 aircraft, and in
offer customers best-in-class service. Expanding on the services already offered, we
Australia, we purchased Broadlex, an aircraft cleaning company. This was a strategic
This year, in addition to managing more than 70 million passenger movements
launched private aviation services for customers at London’s Heathrow airport, with
move as Broadlex complements our other Australian ground handling services and
At Dubai International airport an aircraft lands or takes off every 70 seconds,
through Dubai, dnata oversaw ongoing developments to expand airport capacity
the ability to handle aircraft ranging from helicopters and private jets to large charter
enables us to offer a more complete proposition to our airline customers.
24 hours a day, seven days a week. That equates to an average of 1,100 aircraft
including a new concourse which will be ready by early 2015. We also worked closely
jets. This is our second entry into private aviation services, having recently launched
movements per day, and dnata handles each of them.
with the architects and designers at Dubai World Central on the design of future
these services at Singapore’s Changi airport.
underground baggage networks and baggage tracking systems. This year, dnata handled 125,000 bags a day for Emirates alone and
Special mention must be made of the dnata team at Manila airport who responded admirably to the humanitarian emergency caused by Typhoon Haiyan in November.
Our team at Heathrow also welcomed the addition of new ground-power units that
Illustrating our preparedness to ‘go further’, our Manila team worked around the clock
that number continues to grow. By 2017, we expect to handle upwards
Our focus on operational efficiency and use of the latest equipment also helps
provide enough power to pull back an aircraft without needing to start the plane’s
in the immediate aftermath of the typhoon, rising to the challenge to manage more
of 100 million bags a year at Dubai International airport. Add to this
us reduce our environmental footprint. This year, we replaced diesel-powered
engines or burn fuel.
than 50 aid flights that came into the airport from all over the world with essential
the millions of bags we will handle as Dubai World Central welcomes
equipment at Terminal 2 where possible, including 15 of the tractors used to pull
more passengers, and it becomes clear why ensuring each piece of
cargo-trolleys, with electric-powered equipment, marking a big step towards a
Operationally, dnata enjoyed a stellar year at Heathrow, rising rapidly to finish
luggage arrives at its destination is no small task.
zero-emissions operation.
second in the airport’s ground handler rankings to a specialist, single-airline
supplies for the many thousands of people affected by the disaster.
handler. Our team was also invited by the airport to consult on a project to
28
Given the huge volumes of bags handled, our rate of mishandled
Beyond Dubai, we also invested heavily to upgrade and expand our ground handling
organise future baggage handling at Terminal 3, reflecting the esteem in which
bags – 4.3 per thousand – is outstanding, placing us way ahead of the
operations globally.
our UK operations are held. 29
Handling
250 airlines 27 airports 9 countries,
dnata purchased the aircraft cleaning
at
Overview
to complement its Australian ground handling services;
in
Emirates
dnata
Group
Financial Information
Additional Information
company Broadlex,
launched private aviation services at London Heathrow; and ramped up operations in Dubai with ongoing capacity expansion at
dnata is also the world’s largest ground
Dubai International, as
handler of the Airbus A380.
passenger services at
well as the launch of Dubai World Central.
Airport operations: investing in capacity and capability In 2013-14, we invested significantly in our ground handling operations at home
industry average of 6.96 per thousand.
and abroad.
In the UK, we completed projects that will bring a quantum change to our ability to
In Zurich, we installed equipment to allow our teams to service A380 aircraft, and in
offer customers best-in-class service. Expanding on the services already offered, we
Australia, we purchased Broadlex, an aircraft cleaning company. This was a strategic
This year, in addition to managing more than 70 million passenger movements
launched private aviation services for customers at London’s Heathrow airport, with
move as Broadlex complements our other Australian ground handling services and
At Dubai International airport an aircraft lands or takes off every 70 seconds,
through Dubai, dnata oversaw ongoing developments to expand airport capacity
the ability to handle aircraft ranging from helicopters and private jets to large charter
enables us to offer a more complete proposition to our airline customers.
24 hours a day, seven days a week. That equates to an average of 1,100 aircraft
including a new concourse which will be ready by early 2015. We also worked closely
jets. This is our second entry into private aviation services, having recently launched
movements per day, and dnata handles each of them.
with the architects and designers at Dubai World Central on the design of future
these services at Singapore’s Changi airport.
underground baggage networks and baggage tracking systems. This year, dnata handled 125,000 bags a day for Emirates alone and
Special mention must be made of the dnata team at Manila airport who responded admirably to the humanitarian emergency caused by Typhoon Haiyan in November.
Our team at Heathrow also welcomed the addition of new ground-power units that
Illustrating our preparedness to ‘go further’, our Manila team worked around the clock
that number continues to grow. By 2017, we expect to handle upwards
Our focus on operational efficiency and use of the latest equipment also helps
provide enough power to pull back an aircraft without needing to start the plane’s
in the immediate aftermath of the typhoon, rising to the challenge to manage more
of 100 million bags a year at Dubai International airport. Add to this
us reduce our environmental footprint. This year, we replaced diesel-powered
engines or burn fuel.
than 50 aid flights that came into the airport from all over the world with essential
the millions of bags we will handle as Dubai World Central welcomes
equipment at Terminal 2 where possible, including 15 of the tractors used to pull
more passengers, and it becomes clear why ensuring each piece of
cargo-trolleys, with electric-powered equipment, marking a big step towards a
Operationally, dnata enjoyed a stellar year at Heathrow, rising rapidly to finish
luggage arrives at its destination is no small task.
zero-emissions operation.
second in the airport’s ground handler rankings to a specialist, single-airline
supplies for the many thousands of people affected by the disaster.
handler. Our team was also invited by the airport to consult on a project to
28
Given the huge volumes of bags handled, our rate of mishandled
Beyond Dubai, we also invested heavily to upgrade and expand our ground handling
organise future baggage handling at Terminal 3, reflecting the esteem in which
bags – 4.3 per thousand – is outstanding, placing us way ahead of the
operations globally.
our UK operations are held. 29
£70m
Overview
investment in dnata City added
Emirates
20,000 sqm to existing capacity.
dnata
It is the first major cargo-
Group
Financial Information
Additional Information
dnata this year expanded its capacity at Dubai Freight Gate 5, and at seven airports in the UK – Heathrow, Manchester, Glasgow, Birmingham, Newcastle, East Midlands,
dedicated construction project in
and Gatwick. It also
Heathrow in over 10 years.
square metre cool chain
launched a new 2,000 facility in Singapore.
Cargo: meeting challenges and seizing opportunities dnata has also made massive investments to lay the groundwork for our cargo
dnata City, the first major cargo-dedicated construction project at Heathrow for
In Singapore, we opened a 2,000 square metre cool chain facility in August, offering
management services over the coming years.
more than a decade, is an ultra-modern concept which added 20,000 square
the latest cold storage technology and web-based monitoring, and enhancing our
metres of cargo space to our existing facility. The facility’s appeal was immediately
ability to handle consignments of pharmaceutical products and perishable goods.
At Dubai International airport, where space constraints remain a
apparent, with eight airline customer wins on the back of its launch in the first
significant challenge to the effective handling of cargo, we invested
quarter of 2014.
AED 120 million to significantly modernise the automated cargo
We also continued to develop and roll out Calogi, an integrated business environment that enables the cargo community to transact seamlessly in a paper-free environment.
processes at our warehouse facility, Freight Gate 5, resulting in an
We also significantly increased the size of dnata’s warehouses at Heathrow and
Calogi continues to gain popularity across the world, recording an increase in
additional storage volume of 40,000 tonnes of cargo.
Manchester, and added five new warehouses at Glasgow, Birmingham, Newcastle,
the number of subscribing companies to 775, up 19% and the number of online
East Midlands, and Gatwick. At each of these locations, we added warehouse space
transactions to 1 million, up by 5%.
In the UK, we took major steps to improve our cargo proposition. At
and ensured each is fitted with the most modern technology. dnata’s UK cargo
Heathrow, we completed dnata City, a £70 million investment that
network is now one of the most advanced in the country, ensuring the smooth
offers cutting-edge warehousing and cargo handling facilities in the
transport of goods from point to point.
heart of Europe’s most important airport.
30
31
£70m
Overview
investment in dnata City added
Emirates
20,000 sqm to existing capacity.
dnata
It is the first major cargo-
Group
Financial Information
Additional Information
dnata this year expanded its capacity at Dubai Freight Gate 5, and at seven airports in the UK – Heathrow, Manchester, Glasgow, Birmingham, Newcastle, East Midlands,
dedicated construction project in
and Gatwick. It also
Heathrow in over 10 years.
square metre cool chain
launched a new 2,000 facility in Singapore.
Cargo: meeting challenges and seizing opportunities dnata has also made massive investments to lay the groundwork for our cargo
dnata City, the first major cargo-dedicated construction project at Heathrow for
In Singapore, we opened a 2,000 square metre cool chain facility in August, offering
management services over the coming years.
more than a decade, is an ultra-modern concept which added 20,000 square
the latest cold storage technology and web-based monitoring, and enhancing our
metres of cargo space to our existing facility. The facility’s appeal was immediately
ability to handle consignments of pharmaceutical products and perishable goods.
At Dubai International airport, where space constraints remain a
apparent, with eight airline customer wins on the back of its launch in the first
significant challenge to the effective handling of cargo, we invested
quarter of 2014.
AED 120 million to significantly modernise the automated cargo
We also continued to develop and roll out Calogi, an integrated business environment that enables the cargo community to transact seamlessly in a paper-free environment.
processes at our warehouse facility, Freight Gate 5, resulting in an
We also significantly increased the size of dnata’s warehouses at Heathrow and
Calogi continues to gain popularity across the world, recording an increase in
additional storage volume of 40,000 tonnes of cargo.
Manchester, and added five new warehouses at Glasgow, Birmingham, Newcastle,
the number of subscribing companies to 775, up 19% and the number of online
East Midlands, and Gatwick. At each of these locations, we added warehouse space
transactions to 1 million, up by 5%.
In the UK, we took major steps to improve our cargo proposition. At
and ensured each is fitted with the most modern technology. dnata’s UK cargo
Heathrow, we completed dnata City, a £70 million investment that
network is now one of the most advanced in the country, ensuring the smooth
offers cutting-edge warehousing and cargo handling facilities in the
transport of goods from point to point.
heart of Europe’s most important airport.
30
31
41m
Overview
a day, in addition to its airport F&B
sharp increase of 44% due to the
dnata
Group
Financial Information
business in the UAE, Jordan, Italy, Bulgaria
consolidated operation in Italy as well as
and Romania, and its
growth in the UK and Australian markets.
of food, beverage and
inflight retail business boutique products.
Catering: expanding our global footprint Our global catering operations had an outstanding year marked by acquisitions,
In Italy, we took 100% ownership of the catering organisation we previously
mergers and the streamlining of existing capabilities. In 62 airports around the
operated as a joint venture with Servair. The move enabled us to undertake a major
world, our food division delivers more than 138,000 meals every day. To ensure customer satisfaction, we continually review processes and invest in our products and services.
catering business out of both Milan and Rome, and is aligned with our strategy to cater
airport, the latest addition to a total of eight F&B outlets in Amman.
by the continuing global rollout of the LiteBite box concept for economy cabins.
refurbishment of our kitchens in Rome and Milan, complete with the creation of
We also extended our business to the Czech Republic, when we began working with
In Australia, dnata invested nearly AUS$ 13 million to open a new kitchen in Adelaide
dedicated halal kitchens in each location. This investment won us the Emirates airline
Travel Service, the country’s second largest and fastest growing airline.
that will provide employment opportunities for close to 100 people and supply
for a broad range of ethnic and dietary requirements in an increasingly global market. We finished the year with revenues of AED 1.8 billion, an increase of 25% over 2012-13, marking a record year in the history of our
In Romania, we invested AED 25 million over a four-year period to launch 13 food
catering operations.
and beverage (F&B) outlets at Bucharest’s Henri Coanda airport, including the Brioche
As passengers become ever more demanding and discerning about
catering for Qantas and several other major airlines. We considerably upgraded and In South Africa, we marked a successful first year of our joint venture catering
expanded our longstanding catering facilities in Sydney and Melbourne, and added
operation, dnata Newrest, serving several major clients in South Africa, including
more than 5,000 square metres of floorspace in Brisbane and Perth. These investments
British Airways, Emirates, Singapore Airlines and Thai Airways.
reflect dnata’s commitment to the Australian market and our belief in its long-term health and profitability.
Dorée and Lavazza franchises. dnata’s catering division now owns and operates the
In Singapore, our catering operations continued to grow with two new airline
majority of F&B outlets at Henri Coanda.
contracts added this year. Our team at Changi airport also received numerous
Globally, we continue to build our catering business by introducing the best
customer appreciation accolades, a testament to our unrelenting customer focus.
technology, infrastructure and people. This is not driven by a desire to be the biggest,
the food served inflight, dnata’s catering division makes every effort
32
138,000 inflight meals
meals were uplifted by dnata in 2013-14, a
Emirates
Additional Information
dnata delivers over
to retain industry leadership status, investing heavily in innovation and
Through Alpha, we operate a number of food and beverage outlets at airports located
increased capacity in several geographies.
in the UAE, Jordan, Italy, Bulgaria and Romania. In September 2013 we opened our
In the UK, we enjoyed our first full year of ownership of En Route, which we acquired in
quality. We will continue work hard to be the catering partner of choice for airlines
new Grab and Go concept at Amman’s iconic new terminal at Queen Alia International
May 2012. En Route saw significant revenue growth over the course of the year, enhanced
around the world.
but the desire to ensure our customers receive the best value in terms of service and
33
41m
Overview
a day, in addition to its airport F&B
sharp increase of 44% due to the
dnata
Group
Financial Information
business in the UAE, Jordan, Italy, Bulgaria
consolidated operation in Italy as well as
and Romania, and its
growth in the UK and Australian markets.
of food, beverage and
inflight retail business boutique products.
Catering: expanding our global footprint Our global catering operations had an outstanding year marked by acquisitions,
In Italy, we took 100% ownership of the catering organisation we previously
mergers and the streamlining of existing capabilities. In 62 airports around the
operated as a joint venture with Servair. The move enabled us to undertake a major
world, our food division delivers more than 138,000 meals every day. To ensure customer satisfaction, we continually review processes and invest in our products and services.
catering business out of both Milan and Rome, and is aligned with our strategy to cater
airport, the latest addition to a total of eight F&B outlets in Amman.
by the continuing global rollout of the LiteBite box concept for economy cabins.
refurbishment of our kitchens in Rome and Milan, complete with the creation of
We also extended our business to the Czech Republic, when we began working with
In Australia, dnata invested nearly AUS$ 13 million to open a new kitchen in Adelaide
dedicated halal kitchens in each location. This investment won us the Emirates airline
Travel Service, the country’s second largest and fastest growing airline.
that will provide employment opportunities for close to 100 people and supply
for a broad range of ethnic and dietary requirements in an increasingly global market. We finished the year with revenues of AED 1.8 billion, an increase of 25% over 2012-13, marking a record year in the history of our
In Romania, we invested AED 25 million over a four-year period to launch 13 food
catering operations.
and beverage (F&B) outlets at Bucharest’s Henri Coanda airport, including the Brioche
As passengers become ever more demanding and discerning about
catering for Qantas and several other major airlines. We considerably upgraded and In South Africa, we marked a successful first year of our joint venture catering
expanded our longstanding catering facilities in Sydney and Melbourne, and added
operation, dnata Newrest, serving several major clients in South Africa, including
more than 5,000 square metres of floorspace in Brisbane and Perth. These investments
British Airways, Emirates, Singapore Airlines and Thai Airways.
reflect dnata’s commitment to the Australian market and our belief in its long-term health and profitability.
Dorée and Lavazza franchises. dnata’s catering division now owns and operates the
In Singapore, our catering operations continued to grow with two new airline
majority of F&B outlets at Henri Coanda.
contracts added this year. Our team at Changi airport also received numerous
Globally, we continue to build our catering business by introducing the best
customer appreciation accolades, a testament to our unrelenting customer focus.
technology, infrastructure and people. This is not driven by a desire to be the biggest,
the food served inflight, dnata’s catering division makes every effort
32
138,000 inflight meals
meals were uplifted by dnata in 2013-14, a
Emirates
Additional Information
dnata delivers over
to retain industry leadership status, investing heavily in innovation and
Through Alpha, we operate a number of food and beverage outlets at airports located
increased capacity in several geographies.
in the UAE, Jordan, Italy, Bulgaria and Romania. In September 2013 we opened our
In the UK, we enjoyed our first full year of ownership of En Route, which we acquired in
quality. We will continue work hard to be the catering partner of choice for airlines
new Grab and Go concept at Amman’s iconic new terminal at Queen Alia International
May 2012. En Route saw significant revenue growth over the course of the year, enhanced
around the world.
but the desire to ensure our customers receive the best value in terms of service and
33
100%
Overview
Emirates
dnata
Group
Financial Information
Additional Information
dnata continues to invest in its travel-shop experience. This year, it launched 14 additional travel retail locations
sales growth in India and strong
in the Middle East, and
double-digit growth in Gulf markets.
50 more outlets in the
announced plans for Kingdom of Saudi Arabia.
Travel: a focused strategy for growth dnata Travel offers comprehensive travel services for individuals, companies and
We have expanded our GSA business regionally this year by representing Qantas
the travel trade across 27 countries, managing over 200 retail outlets across the
in Iraq, Afghanistan, Egypt and Lebanon, Philippine Airlines in Oman, Iraq and
Middle East and handles more than 250,000 customer contacts each month at its 24/7 contact centres. In 2013-14, dnata Travel enjoyed growth in all key markets as we
ensure that our online offering is as strong as our bricks and mortar experience.
existing companies, and also making acquisitions where the synergies are obvious.
Afghanistan. We were also instrumental in supporting Emirates in setting up
The Middle East travel market still values the human touch. This year, we invested to
In 2013-14, our most significant acquisition was of the UK-based travel services
commercial operations in Afghanistan. Our GSA expertise and high standards
improve our travel-shop experience and ensure it is customer-centric. dnata launched
provider Gold Medal Travel Group in February. One of the UK’s leading travel
of service continue to win us the confidence and custom of airlines seeking
14 additional travel retail locations across the region with plans for 50 more outlets in
distributors of scheduled long-haul flights, hotels and car hire, the Gold Medal Travel
representation in markets across the region.
the Kingdom of Saudi Arabia.
Group acquisition strengthens dnata’s position in the UK market.
We launched high quality business-to-consumer websites in the Middle East,
dnata also saw solid growth in our corporate travel business with a 30% rise in
The purchase also adds the award-winning Netflights.com and the upmarket travel
strengthened our reputation as the Middle East’s leading travel services provider.
leveraging on synergies from Travel Republic which we acquired in December 2011.
bookings, as customers better understand how our extensive industry relationships,
brand Pure Luxury to dnata’s portfolio, boosting our global presence in the luxury
We saw tremendous sales growth of over 100% in India, and
Starting in the UAE, our website immediately offered our customers over 50,000
particularly with the Hogg Robinson Group, could add value to their travel experience.
travel sector.
registered strong double-digit growth in our traditional Gulf markets.
additional holiday property options, all over the world. Revenue from dnatatravel.com
The Government Travel division, catering to Government entities across the UAE
grew strongly, up 95% from last year.
witnessed a 21% growth in sales through a focused approach in promoting leisure
Increasingly, we are seeing demand for a professional, modern travel agent product,
products catering specifically to the needs of the local community.
tailored to the needs of the Middle East market. Our ability to offer customers the full
In our second year of operations in India, we have continued to build
34
our brand and exceeded our expectations. India will continue to be a
As customers in the region become more comfortable with an online travel
focus market for our travel services over the coming years.
experience, we will also expand digitally to new markets, and continue to work hard to
range of travel-related services, as well as our global reach through our partnerships Our growth strategy over the coming years is centred on the organic growth of our
and associations, will continue to be a key differentiator in the market.
35
100%
Overview
Emirates
dnata
Group
Financial Information
Additional Information
dnata continues to invest in its travel-shop experience. This year, it launched 14 additional travel retail locations
sales growth in India and strong
in the Middle East, and
double-digit growth in Gulf markets.
50 more outlets in the
announced plans for Kingdom of Saudi Arabia.
Travel: a focused strategy for growth dnata Travel offers comprehensive travel services for individuals, companies and
We have expanded our GSA business regionally this year by representing Qantas
the travel trade across 27 countries, managing over 200 retail outlets across the
in Iraq, Afghanistan, Egypt and Lebanon, Philippine Airlines in Oman, Iraq and
Middle East and handles more than 250,000 customer contacts each month at its 24/7 contact centres. In 2013-14, dnata Travel enjoyed growth in all key markets as we
ensure that our online offering is as strong as our bricks and mortar experience.
existing companies, and also making acquisitions where the synergies are obvious.
Afghanistan. We were also instrumental in supporting Emirates in setting up
The Middle East travel market still values the human touch. This year, we invested to
In 2013-14, our most significant acquisition was of the UK-based travel services
commercial operations in Afghanistan. Our GSA expertise and high standards
improve our travel-shop experience and ensure it is customer-centric. dnata launched
provider Gold Medal Travel Group in February. One of the UK’s leading travel
of service continue to win us the confidence and custom of airlines seeking
14 additional travel retail locations across the region with plans for 50 more outlets in
distributors of scheduled long-haul flights, hotels and car hire, the Gold Medal Travel
representation in markets across the region.
the Kingdom of Saudi Arabia.
Group acquisition strengthens dnata’s position in the UK market.
We launched high quality business-to-consumer websites in the Middle East,
dnata also saw solid growth in our corporate travel business with a 30% rise in
The purchase also adds the award-winning Netflights.com and the upmarket travel
strengthened our reputation as the Middle East’s leading travel services provider.
leveraging on synergies from Travel Republic which we acquired in December 2011.
bookings, as customers better understand how our extensive industry relationships,
brand Pure Luxury to dnata’s portfolio, boosting our global presence in the luxury
We saw tremendous sales growth of over 100% in India, and
Starting in the UAE, our website immediately offered our customers over 50,000
particularly with the Hogg Robinson Group, could add value to their travel experience.
travel sector.
registered strong double-digit growth in our traditional Gulf markets.
additional holiday property options, all over the world. Revenue from dnatatravel.com
The Government Travel division, catering to Government entities across the UAE
grew strongly, up 95% from last year.
witnessed a 21% growth in sales through a focused approach in promoting leisure
Increasingly, we are seeing demand for a professional, modern travel agent product,
products catering specifically to the needs of the local community.
tailored to the needs of the Middle East market. Our ability to offer customers the full
In our second year of operations in India, we have continued to build
34
our brand and exceeded our expectations. India will continue to be a
As customers in the region become more comfortable with an online travel
focus market for our travel services over the coming years.
experience, we will also expand digitally to new markets, and continue to work hard to
range of travel-related services, as well as our global reach through our partnerships Our growth strategy over the coming years is centred on the organic growth of our
and associations, will continue to be a key differentiator in the market.
35
More than
19m
Overview
loyalty members, and over 366
Emirates
dnata
Group
Financial Information
Additional Information
million transactions are managed
mercator’s solutions
annually by mercator’s Loyalty &
passenger coupons, and
CRM Solutions.
shipments of cargo
process over 965 million 18 million airfreight each year.
mercator: better business through technology mercator helps its customers to do better business through its innovative suite
The year also saw significant milestones for mercator’s passenger services and
engaged via dynamic features such as a gamification platform, alerts and messages,
its day-to-day management. dnata retains a 20% share in the new company. This was
of IT solutions which are developed specifically for airlines, trialled and tested
reservations systems. West-Africa-based Senegal Airlines implemented the Jupiter
auctions and locator tools.
a considered decision which we believe will open significant growth opportunities for
in the real world. For more than 25 years mercator has developed an extensive
passenger services system for full service carriers, and the Avantik solution continued
portfolio of Cargo, CRM, Finance, Passenger and Safety solutions to help airlines
to fuel the expansion plans for several new low cost carriers and regional airlines
As well as helping airlines engage better with their customers, mercator is committed
deliver their promises.
across Europe, Africa and Asia.
to its own customer relationship management which continues to be at the forefront
both mercator and its customers.
of what we do. This year saw the launch of the new mercator.com website and account More than 100 airlines in over 80 countries across six continents
mercator also updated its highly-successful Revenue Accounting Solution (RAPID) to
management portal to provide customers with a better user experience and let them
rely on mercator technology to manage their passenger and cargo
version 3.0, using the latest technology to deliver industry best practice in a complete,
easily interact with mercator as well as the broader product user community.
operations. In 2013-14, we continued to win new clients and contracts
end-to-end integrated solution. Already used by many of the world’s largest airlines,
across our portfolio. This included working with United, one of the
RAPID will now provide enhanced tools and more sophisticated reporting.
world’s largest cargo carriers, to customise and “go live” with the
36
Towards the close of the year, our focus was turned towards mercator’s future. In order to allow mercator to build on its expertise and fully focus on serving the needs
award-winning SkyChain solution representing one of the largest
Other highlights include the launch of a new mobile app for airline loyalty
of the global aviation IT services market, we signed an agreement for global private
cargo IT solutions migrations in the industry.
programmes, which is designed to keep frequent flyers and programme partners
equity firm Warburg Pincus to acquire the mercator business and take full control of
37
More than
19m
Overview
loyalty members, and over 366
Emirates
dnata
Group
Financial Information
Additional Information
million transactions are managed
mercator’s solutions
annually by mercator’s Loyalty &
passenger coupons, and
CRM Solutions.
shipments of cargo
process over 965 million 18 million airfreight each year.
mercator: better business through technology mercator helps its customers to do better business through its innovative suite
The year also saw significant milestones for mercator’s passenger services and
engaged via dynamic features such as a gamification platform, alerts and messages,
its day-to-day management. dnata retains a 20% share in the new company. This was
of IT solutions which are developed specifically for airlines, trialled and tested
reservations systems. West-Africa-based Senegal Airlines implemented the Jupiter
auctions and locator tools.
a considered decision which we believe will open significant growth opportunities for
in the real world. For more than 25 years mercator has developed an extensive
passenger services system for full service carriers, and the Avantik solution continued
portfolio of Cargo, CRM, Finance, Passenger and Safety solutions to help airlines
to fuel the expansion plans for several new low cost carriers and regional airlines
As well as helping airlines engage better with their customers, mercator is committed
deliver their promises.
across Europe, Africa and Asia.
to its own customer relationship management which continues to be at the forefront
both mercator and its customers.
of what we do. This year saw the launch of the new mercator.com website and account More than 100 airlines in over 80 countries across six continents
mercator also updated its highly-successful Revenue Accounting Solution (RAPID) to
management portal to provide customers with a better user experience and let them
rely on mercator technology to manage their passenger and cargo
version 3.0, using the latest technology to deliver industry best practice in a complete,
easily interact with mercator as well as the broader product user community.
operations. In 2013-14, we continued to win new clients and contracts
end-to-end integrated solution. Already used by many of the world’s largest airlines,
across our portfolio. This included working with United, one of the
RAPID will now provide enhanced tools and more sophisticated reporting.
world’s largest cargo carriers, to customise and “go live” with the
36
Towards the close of the year, our focus was turned towards mercator’s future. In order to allow mercator to build on its expertise and fully focus on serving the needs
award-winning SkyChain solution representing one of the largest
Other highlights include the launch of a new mobile app for airline loyalty
of the global aviation IT services market, we signed an agreement for global private
cargo IT solutions migrations in the industry.
programmes, which is designed to keep frequent flyers and programme partners
equity firm Warburg Pincus to acquire the mercator business and take full control of
37
18 June
Emirates named
Overview
World’s Best
Emirates
dnata
by Skytrax
Group
Financial Information
Additional Information
1 Apr
1st quarter 1 APRIL
Emirates and Qantas mark the official start of their historic partnership,
with the first Qantas flights departing from Sydney and Melbourne to London via Dubai
3 Apr
8 Apr
committing US$150,000 collected from internal recycling efforts in support of environmental or conservation projects
dnata acquires Broadlex Air Services
Emirates SkyCargo is awarded “Cargo Airline of the Year” by Air Cargo News
8 APRIL
dnata expands relationship with Virgin Atlantic at London Heathrow
to include ramp handling for long and short haul flights (see picture above)
mercator unveils mBELT,
a complete solution to manage the entire life cycle of passenger baggage, at the Passenger Terminal Expo in Spain
30 APRIL
Emirates SkyCargo becomes the 1st carrier to implement electronic air waybill (e-AWB) shipments under the newly-ratified industry standard
15 May
16 May
27 May
dnata acquires further 50% share in Italian airport-based Servair Air Chef,
New Zealand Transport Minister approves Emirates-Qantas partnership
17 May
30 May
bringing its total ownership to 100% as part of its inflight catering business growth strategy
Emirates signs five-year agreements to be shirt sponsors
15 MAY
Emirates and Jetblue announce plans to expand their partnership
to include bilateral code sharing and reciprocal frequent flyer benefits. Emirates started placing its code on select JetBlueoperated flights in April 2012, expanding an interline agreement that dates back to 2010.
3 Jun
17 and 30 MAY
16 MAY
15 MAY
which provides aircraft cleaning, laundry and passenger support services across Australia
30 APRIL
8 APRIL
38
30 Apr
16 APRIL
3 APRIL
Emirates announces its “Greener Tomorrow” initiative,
16 Apr
5 Jun
Skytrax names Emirates “World’s Best Airline”, “Best Middle East Airline” and for a record 9th year running, “World’s Best Inflight Entertainment”. 13 Jun
5 JUNE of top European football clubs Paris SaintGermain and Real Madrid
Emirates signs shirt deal with the New York Cosmos
13 JUNE 27 MAY
Emirates-CAE Flight Training inaugurated its second stateof-the-art pilot training facility
at Dubai Silicon Oasis, bringing Emirates and CAE’s joint investment in the Middle East region to over US$ 260 million
3 JUNE
Emirates launches a daily service to Haneda, its 3rd gateway in Japan
dnata Singapore wins two new inflight catering contracts
19 Jun
19 JUNE
Aero Mexico is the first customer to sign up for mercator’s new Loyalty application which lets loyalty programme members accrue and redeem points faster, via their personal mobile devices
39
18 June
Emirates named
Overview
World’s Best
Emirates
dnata
by Skytrax
Group
Financial Information
Additional Information
1 Apr
1st quarter 1 APRIL
Emirates and Qantas mark the official start of their historic partnership,
with the first Qantas flights departing from Sydney and Melbourne to London via Dubai
3 Apr
8 Apr
committing US$150,000 collected from internal recycling efforts in support of environmental or conservation projects
dnata acquires Broadlex Air Services
Emirates SkyCargo is awarded “Cargo Airline of the Year” by Air Cargo News
8 APRIL
dnata expands relationship with Virgin Atlantic at London Heathrow
to include ramp handling for long and short haul flights (see picture above)
mercator unveils mBELT,
a complete solution to manage the entire life cycle of passenger baggage, at the Passenger Terminal Expo in Spain
30 APRIL
Emirates SkyCargo becomes the 1st carrier to implement electronic air waybill (e-AWB) shipments under the newly-ratified industry standard
15 May
16 May
27 May
dnata acquires further 50% share in Italian airport-based Servair Air Chef,
New Zealand Transport Minister approves Emirates-Qantas partnership
17 May
30 May
bringing its total ownership to 100% as part of its inflight catering business growth strategy
Emirates signs five-year agreements to be shirt sponsors
15 MAY
Emirates and Jetblue announce plans to expand their partnership
to include bilateral code sharing and reciprocal frequent flyer benefits. Emirates started placing its code on select JetBlueoperated flights in April 2012, expanding an interline agreement that dates back to 2010.
3 Jun
17 and 30 MAY
16 MAY
15 MAY
which provides aircraft cleaning, laundry and passenger support services across Australia
30 APRIL
8 APRIL
38
30 Apr
16 APRIL
3 APRIL
Emirates announces its “Greener Tomorrow” initiative,
16 Apr
5 Jun
Skytrax names Emirates “World’s Best Airline”, “Best Middle East Airline” and for a record 9th year running, “World’s Best Inflight Entertainment”. 13 Jun
5 JUNE of top European football clubs Paris SaintGermain and Real Madrid
Emirates signs shirt deal with the New York Cosmos
13 JUNE 27 MAY
Emirates-CAE Flight Training inaugurated its second stateof-the-art pilot training facility
at Dubai Silicon Oasis, bringing Emirates and CAE’s joint investment in the Middle East region to over US$ 260 million
3 JUNE
Emirates launches a daily service to Haneda, its 3rd gateway in Japan
dnata Singapore wins two new inflight catering contracts
19 Jun
19 JUNE
Aero Mexico is the first customer to sign up for mercator’s new Loyalty application which lets loyalty programme members accrue and redeem points faster, via their personal mobile devices
39
1 September
Overview
SNTTA Cargo
Emirates
dnata
Group
Financial Information
Additional Information
1 Jul
3 Jul
2nd quarter 1 JULY
Emirates marks 20 years of service to Muscat,
having carried nearly 2.4 million passengers on the route since flights began on 1st July 1993
3 JULY
Emirates sails the San Francisco Bay as title sponsor of Emirates Team New Zealand during the 34th America’s Cup
40
5 Jul
17 Jul
5 JULY
Emirates officially opens the Emirates Aviation Experience,
4 Aug
5 Aug
5 Aug
4 AUGUST
a £4 million visitor attraction in London featuring four commercial flight simulators under one roof
Emirates celebrates five years of A380 operations,
5 AUGUST
Arabian Adventures signs partnership agreement with Ukraine’s Travel Professional Group to provide reciprocal destination management services for clients
having flown over 18 million passengers on its A380 fleet since 2008
(see picture above)
17 JULY
Construction begins on the new Emirates SkyCargo terminal and facilities at Dubai World Central
15 Aug
in preparation for planned move of freighter operations in May 2014
5 AUGUST
dnata opens its new perishable cargo facility in Singapore, a US$4 million investment with a handling capacity of 75,000 tonnes annually
27 Aug
27 AUGUST
United Airlines migrates its cargo logistics and revenue accounting systems to mercator’s SkyChain and RAPID solutions
4 Sep
4 SEPTEMBER
Condé Nast Traveller readers name Emirates “Best Long-haul Airline”
5 Sep
5 SEPTEMBER
Emirates starts daily services to Stockholm, Sweden
19 Sep
Sep
19 SEPTEMBER
The Emirates Facebook page hits two million likes,
making it one of the top airlines on the social media site worldwide. Emirates also launched on LinkedIn, attracting more than 201,000 followers to date
4 SEPTEMBER
Emirates Group publishes its third annual environment report including airline operations, dnata’s handling business and a wide range of commercial activities on the ground
15 AUGUST
Emirates launches Emirates Executive, the private luxury jet service operated by an A319
3 Sep
the UAE’s premier air cargo general sales agent, launched a branded version of Calogi’s online portal, attracting subscriptions from over 50 forwarders to the new web portal on the first day of its launch
SEPTEMBER 3 SEPTEMBER
Emirates Holidays launches its first global franchise, Emirates Vacations in the USA, in partnership with US-based Destination Southern Africa Inc (DSA vacations)
National Geographic premiered its 10-part “Ultimate Airport” programme featuring Dubai Airport, with dnata and Emirates taking the spotlight
41
1 September
Overview
SNTTA Cargo
Emirates
dnata
Group
Financial Information
Additional Information
1 Jul
3 Jul
2nd quarter 1 JULY
Emirates marks 20 years of service to Muscat,
having carried nearly 2.4 million passengers on the route since flights began on 1st July 1993
3 JULY
Emirates sails the San Francisco Bay as title sponsor of Emirates Team New Zealand during the 34th America’s Cup
40
5 Jul
17 Jul
5 JULY
Emirates officially opens the Emirates Aviation Experience,
4 Aug
5 Aug
5 Aug
4 AUGUST
a £4 million visitor attraction in London featuring four commercial flight simulators under one roof
Emirates celebrates five years of A380 operations,
5 AUGUST
Arabian Adventures signs partnership agreement with Ukraine’s Travel Professional Group to provide reciprocal destination management services for clients
having flown over 18 million passengers on its A380 fleet since 2008
(see picture above)
17 JULY
Construction begins on the new Emirates SkyCargo terminal and facilities at Dubai World Central
15 Aug
in preparation for planned move of freighter operations in May 2014
5 AUGUST
dnata opens its new perishable cargo facility in Singapore, a US$4 million investment with a handling capacity of 75,000 tonnes annually
27 Aug
27 AUGUST
United Airlines migrates its cargo logistics and revenue accounting systems to mercator’s SkyChain and RAPID solutions
4 Sep
4 SEPTEMBER
Condé Nast Traveller readers name Emirates “Best Long-haul Airline”
5 Sep
5 SEPTEMBER
Emirates starts daily services to Stockholm, Sweden
19 Sep
Sep
19 SEPTEMBER
The Emirates Facebook page hits two million likes,
making it one of the top airlines on the social media site worldwide. Emirates also launched on LinkedIn, attracting more than 201,000 followers to date
4 SEPTEMBER
Emirates Group publishes its third annual environment report including airline operations, dnata’s handling business and a wide range of commercial activities on the ground
15 AUGUST
Emirates launches Emirates Executive, the private luxury jet service operated by an A319
3 Sep
the UAE’s premier air cargo general sales agent, launched a branded version of Calogi’s online portal, attracting subscriptions from over 50 forwarders to the new web portal on the first day of its launch
SEPTEMBER 3 SEPTEMBER
Emirates Holidays launches its first global franchise, Emirates Vacations in the USA, in partnership with US-based Destination Southern Africa Inc (DSA vacations)
National Geographic premiered its 10-part “Ultimate Airport” programme featuring Dubai Airport, with dnata and Emirates taking the spotlight
41
3 December
Emirates launches
World’s longest
Overview
Emirates
dnata
A380 flight
Group
Financial Information
Additional Information
1 Oct
4 Oct
3rd quarter 1 OCTOBER
Emirates and Qantas expand their joint network into New Zealand
Emirates inaugurates a new route between Milan, and New York JFK 4 OCTOBER
Emirates SkyCargo launches freighter service to Kano, Nigeria
10 Oct
24 Oct
27 Oct
27 Oct
10 OCTOBER began the first leg of the Baton’s journey round the world in Glasgow
30 Oct
5 Nov
27 OCTOBER
Emirates, Official Airline Partner of the Glasgow 2014 Commonwealth Games Queen’s Baton Relay
dnata handles the first passenger flight at Al Maktoum International airport at Dubai World Central, as Dubai’s second airport opens its doors to passengers
7 Nov
5 NOVEMBER
Emirates launches services to Sialkot, its 5th destination in Pakistan
12 Nov
17 Nov
Emirates Aviation College celebrates largest ever graduating class
Emirates SkyCargo receives its 10th Boeing 777 freighter, taking the total freighter fleet to 12 27 OCTOBER
Emirates launches services to Conakry, Guinea
30 OCTOBER
dnata opens three new facilities at Gatwick, Birmingham and Glasgow,
with 471 graduates across various programmes, reflecting aviation industry growth in the region, and the resulting demand for qualified professionals
to five of the UK’s key regional airports including Heathrow and Manchester. To date, dnata has invested more than £100 million in cargo infrastructure throughout the UK (see picture above)
19 Nov
20 Nov
Emirates announces largest-ever order for 150 Boeing 777X and 50 more Airbus A380 aircraft at the Dubai Air Show, together worth US$99 billion at list prices
20 NOVEMBER to utilise future Emirates A380 deliveries to transport humanitarian support to the United Nations Humanitarian Response Depot
2 Dec
3 Dec
4 Dec
The Emirates Dubai Rugby Sevens broke a new attendance record over the three day tournament,
Emirates partners Airbus Corporate Foundation and Action Against Hunger,
18 NOVEMBER
Emirates to help address the need for 40,000 pilots in the Middle East over the next two decades,
by investing AED500 million in the Emirates Flight Academy to be built at Dubai World Central
31 Dec
22 DECEMBER
Arabian Adventures launches its new “Arabian Dreams” overnight camp experience in the Dubai Desert Conservation Reserve
as the highlyanticipated annual event attracted more than 100,000 fans
3 DECEMBER
Emirates SkyCargo launches freighter service to Quito, Ecuador
26 NOVEMBER
dnata UK launches Private Aviation Services at Heathrow airport to cater to the growing executive jet sector
22 Dec
2 DECEMBER
dnata awarded “Ground Handler of the Year” at Aviation Business Awards for 6th year running 17 NOVEMBER
offering Card Members the opportunity to redeem points on Emirates flights
26 Nov
19 NOVEMBER
12 NOVEMBER
7 NOVEMBER
Emirates Skywards announces its partnership with American Express’ Membership Rewards Programme expanding its cargo capabilities
18 Nov
Emirates and dnata announce half-yearly profits of US$600 million and US$125 million respectively
27 OCTOBER
24 OCTOBER
1 OCTOBER
42
Emirates launches the world’s longest A380 flight from Dubai non-stop to Los Angeles with a travel time of 16 hours 20 minutes
4 DECEMBER
Emirates launches flights to Kabul, Afghanistan
31 DECEMBER
Emirates circles the globe over 18,000 times in 2013 operating over 164,000 flights
43
3 December
Emirates launches
World’s longest
Overview
Emirates
dnata
A380 flight
Group
Financial Information
Additional Information
1 Oct
4 Oct
3rd quarter 1 OCTOBER
Emirates and Qantas expand their joint network into New Zealand
Emirates inaugurates a new route between Milan, and New York JFK 4 OCTOBER
Emirates SkyCargo launches freighter service to Kano, Nigeria
10 Oct
24 Oct
27 Oct
27 Oct
10 OCTOBER began the first leg of the Baton’s journey round the world in Glasgow
30 Oct
5 Nov
27 OCTOBER
Emirates, Official Airline Partner of the Glasgow 2014 Commonwealth Games Queen’s Baton Relay
dnata handles the first passenger flight at Al Maktoum International airport at Dubai World Central, as Dubai’s second airport opens its doors to passengers
7 Nov
5 NOVEMBER
Emirates launches services to Sialkot, its 5th destination in Pakistan
12 Nov
17 Nov
Emirates Aviation College celebrates largest ever graduating class
Emirates SkyCargo receives its 10th Boeing 777 freighter, taking the total freighter fleet to 12 27 OCTOBER
Emirates launches services to Conakry, Guinea
30 OCTOBER
dnata opens three new facilities at Gatwick, Birmingham and Glasgow,
with 471 graduates across various programmes, reflecting aviation industry growth in the region, and the resulting demand for qualified professionals
to five of the UK’s key regional airports including Heathrow and Manchester. To date, dnata has invested more than £100 million in cargo infrastructure throughout the UK (see picture above)
19 Nov
20 Nov
Emirates announces largest-ever order for 150 Boeing 777X and 50 more Airbus A380 aircraft at the Dubai Air Show, together worth US$99 billion at list prices
20 NOVEMBER to utilise future Emirates A380 deliveries to transport humanitarian support to the United Nations Humanitarian Response Depot
2 Dec
3 Dec
4 Dec
The Emirates Dubai Rugby Sevens broke a new attendance record over the three day tournament,
Emirates partners Airbus Corporate Foundation and Action Against Hunger,
18 NOVEMBER
Emirates to help address the need for 40,000 pilots in the Middle East over the next two decades,
by investing AED500 million in the Emirates Flight Academy to be built at Dubai World Central
31 Dec
22 DECEMBER
Arabian Adventures launches its new “Arabian Dreams” overnight camp experience in the Dubai Desert Conservation Reserve
as the highlyanticipated annual event attracted more than 100,000 fans
3 DECEMBER
Emirates SkyCargo launches freighter service to Quito, Ecuador
26 NOVEMBER
dnata UK launches Private Aviation Services at Heathrow airport to cater to the growing executive jet sector
22 Dec
2 DECEMBER
dnata awarded “Ground Handler of the Year” at Aviation Business Awards for 6th year running 17 NOVEMBER
offering Card Members the opportunity to redeem points on Emirates flights
26 Nov
19 NOVEMBER
12 NOVEMBER
7 NOVEMBER
Emirates Skywards announces its partnership with American Express’ Membership Rewards Programme expanding its cargo capabilities
18 Nov
Emirates and dnata announce half-yearly profits of US$600 million and US$125 million respectively
27 OCTOBER
24 OCTOBER
1 OCTOBER
42
Emirates launches the world’s longest A380 flight from Dubai non-stop to Los Angeles with a travel time of 16 hours 20 minutes
4 DECEMBER
Emirates launches flights to Kabul, Afghanistan
31 DECEMBER
Emirates circles the globe over 18,000 times in 2013 operating over 164,000 flights
43
11 March
dnata wins the
Air Transport News Award
Overview
Emirates
dnata
for “Ground Handler of the Year”
Group
Financial Information
Additional Information
17 Jan
27 Jan
4th quarter 17 JANUARY
Emirates launches services to Kiev, Ukraine
30 Jan
10 Feb
11 Feb
30 JANUARY or nearly 10% of its fleet in its own state-of-the-art engineering facility which houses the world’s largest aircraft paint hangar owned by an airline
Emirates completes 21 aircraft makeovers
13 Feb
17 Feb
13 FEBRUARY
Emirates and Jetstar announce a codeshare and frequent flyer programme agreement
19 Feb
20 Feb
dnata and Qantas Freight announce a partnership
23 Feb
24 Feb
that will see dnata’s UK business provide freight ground handling at London’s Heathrow airport to Qantas. Under the agreement, Qantas Freight will relocate its UK office and all operations to dnata City
Emirates SkyCargo signs a five-year trucking contract with Dubai-based Allied Transport
for a 3rd consecutive year in the Brand Finance Global 500 Report for 2014, with an estimated brand value of US$5.5 billion
27 JANUARY
Emirates announces sponsorship of the Rugby World Cups 2015 (in England) and 2019 (in Japan) (see picture above)
11 FEBRUARY
dnata acquires the Gold Medal Group, one of the leading travel businesses in the UK
17 FEBRUARY
to become a one-stop-shop for customers at both Dubai International airport (DXB) and Al Maktoum International airport (DWC)
dnata airport operations launches new aircraft line maintenance services
12 Mar
Emirates is named the world’s “Most Valuable Airline Brand”
13 Mar
12 MARCH
24 FEBRUARY
Emirates Group signs an MoU with the Emirates National Development Programme,
17 Mar
27 Mar
to provide ongoing support for the Absher Initiative which focuses on the successful integration and development of the Emirati workforce
Emirates brings its A380 to India with a first-ever display at the Hyderabad Air Show
30 Mar
30 MARCH
Emirates SkyCargo launches a weekly freighter service to Tunis and Abidjan
Emirates receives delivery of its second set of A380 “twins” this year, bringing its A380 fleet to 47, and its total operating fleet to 217 aircraft
27 MARCH
Emirates expands its social media footprint with the launch of its official Twitter channels
30 Mar
to engage with fans and provide service to customers
28 MARCH
13 MARCH
Emirates SkyCargo received the “Diamond Award”
28 Mar
17 MARCH
10 MARCH
Emirates launches flights to Boston, its 8th gateway in the USA
for road feeder services between Dubai International and Dubai World Central, in preparation of its move of freighter operations to DWC in May 2014
20 FEBRUARY
Emirates launches daily services to Taipei, Taiwan
10 Mar
23 FEBRUARY
19 FEBRUARY
which opens 27 new routes and six new destinations for Emirates passengers across Australia, New Zealand and South East Asia, and adds opportunities to earn and redeem frequent flyer miles
10 FEBRUARY
44
based on readers’ votes and a panel of judges who evaluated nominees on criteria including: innovation, entrepreneurship, financial performance, new products launched and contribution to society
at the Air Cargo World Awards in Los Angeles, taking top position in the carrier category with more than 800,000 tonnes of cargo per annum
Football legends Pelé and Cristiano Ronaldo star in Emirates’ global campaign to connect sports fans around the world, as global ambassadors for the airline
30 MARCH
Emirates becomes the first airline to offer a scheduled A380 service at London Gatwick,
taking to 27 the total number of Emirates destinations served by its flagship A380. This year, Emirates also introduced its A380 service to Brisbane, Zurich, Mauritius, Los Angeles and Barcelona 45
11 March
dnata wins the
Air Transport News Award
Overview
Emirates
dnata
for “Ground Handler of the Year”
Group
Financial Information
Additional Information
17 Jan
27 Jan
4th quarter 17 JANUARY
Emirates launches services to Kiev, Ukraine
30 Jan
10 Feb
11 Feb
30 JANUARY or nearly 10% of its fleet in its own state-of-the-art engineering facility which houses the world’s largest aircraft paint hangar owned by an airline
Emirates completes 21 aircraft makeovers
13 Feb
17 Feb
13 FEBRUARY
Emirates and Jetstar announce a codeshare and frequent flyer programme agreement
19 Feb
20 Feb
dnata and Qantas Freight announce a partnership
23 Feb
24 Feb
that will see dnata’s UK business provide freight ground handling at London’s Heathrow airport to Qantas. Under the agreement, Qantas Freight will relocate its UK office and all operations to dnata City
Emirates SkyCargo signs a five-year trucking contract with Dubai-based Allied Transport
for a 3rd consecutive year in the Brand Finance Global 500 Report for 2014, with an estimated brand value of US$5.5 billion
27 JANUARY
Emirates announces sponsorship of the Rugby World Cups 2015 (in England) and 2019 (in Japan) (see picture above)
11 FEBRUARY
dnata acquires the Gold Medal Group, one of the leading travel businesses in the UK
17 FEBRUARY
to become a one-stop-shop for customers at both Dubai International airport (DXB) and Al Maktoum International airport (DWC)
dnata airport operations launches new aircraft line maintenance services
12 Mar
Emirates is named the world’s “Most Valuable Airline Brand”
13 Mar
12 MARCH
24 FEBRUARY
Emirates Group signs an MoU with the Emirates National Development Programme,
17 Mar
27 Mar
to provide ongoing support for the Absher Initiative which focuses on the successful integration and development of the Emirati workforce
Emirates brings its A380 to India with a first-ever display at the Hyderabad Air Show
30 Mar
30 MARCH
Emirates SkyCargo launches a weekly freighter service to Tunis and Abidjan
Emirates receives delivery of its second set of A380 “twins” this year, bringing its A380 fleet to 47, and its total operating fleet to 217 aircraft
27 MARCH
Emirates expands its social media footprint with the launch of its official Twitter channels
30 Mar
to engage with fans and provide service to customers
28 MARCH
13 MARCH
Emirates SkyCargo received the “Diamond Award”
28 Mar
17 MARCH
10 MARCH
Emirates launches flights to Boston, its 8th gateway in the USA
for road feeder services between Dubai International and Dubai World Central, in preparation of its move of freighter operations to DWC in May 2014
20 FEBRUARY
Emirates launches daily services to Taipei, Taiwan
10 Mar
23 FEBRUARY
19 FEBRUARY
which opens 27 new routes and six new destinations for Emirates passengers across Australia, New Zealand and South East Asia, and adds opportunities to earn and redeem frequent flyer miles
10 FEBRUARY
44
based on readers’ votes and a panel of judges who evaluated nominees on criteria including: innovation, entrepreneurship, financial performance, new products launched and contribution to society
at the Air Cargo World Awards in Los Angeles, taking top position in the carrier category with more than 800,000 tonnes of cargo per annum
Football legends Pelé and Cristiano Ronaldo star in Emirates’ global campaign to connect sports fans around the world, as global ambassadors for the airline
30 MARCH
Emirates becomes the first airline to offer a scheduled A380 service at London Gatwick,
taking to 27 the total number of Emirates destinations served by its flagship A380. This year, Emirates also introduced its A380 service to Brisbane, Zurich, Mauritius, Los Angeles and Barcelona 45
Overview Overview
Emirates Emirates
dnata
Group Group
Our growing Financial network Information
Additional Information Financial Information
Additional Information
462
47 3
Overview Overview
Emirates Emirates
dnata
Group Group
Our growing Financial network Information
Additional Information Financial Information
Additional Information
462
47 3
| 49 dnata Financial Commentary | 59 Emirates Independent 65 Auditor’s Report | Emirates Consolidated 66 Financial Statements | dnata Independent 109 Auditor’s Report | dnata Consolidated 110 Financial Statements | Emirates Financial Commentary
| 146 dnata ten-year overview | 148 Group companies of Emirates | 150 Group companies of dnata | 151 Glossary | 152 Emirates ten-year overview
48
Emirates Financial Commentary
49
| 49 dnata Financial Commentary | 59 Emirates Independent 65 Auditor’s Report | Emirates Consolidated 66 Financial Statements | dnata Independent 109 Auditor’s Report | dnata Consolidated 110 Financial Statements | Emirates Financial Commentary
| 146 dnata ten-year overview | 148 Group companies of Emirates | 150 Group companies of dnata | 151 Glossary | 152 Emirates ten-year overview
48
Emirates Financial Commentary
49
Profit attributable to the Owner in AED bn
Profit margin in %
Development of revenue in AED bn
9.9
5.4 3.5
3.3
52.9
8.1 3.1
2.3
3.9
61.5
71.2
Passenger seat factor in %
80.7
Available seat kilometres (ASKM) in millions
13-14 80.0
42.5
80.0
78.1
79.7
79.4
5.4 Emirates
4.3
3.6 2.8
21.6 10.4
1.8
13.6
7.2
Group
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
Revenue in AEDto m the Owner in AED bn2013-14 2012-13 % change Profit attributable Revenue and other operating income in Passenger 65,405AED m 57,477 13.8 09-10 10-11 11-12 12-13 13-14 5.4
Return on shareholder’s funds in % 28.4
Operating profit in AED bn
dnata
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
Financial Information
Cargo 11,263 10,346 8.9 Excess baggage 412 388 6.2 3.5 3.3 Transport revenue 77,080 68,211 13.0 2.3 1.5 Sale of goods Hotel operations Destination and leisure 09-10 10-11 11-12 12-13 13-14 Others
Total
2,555 2,181 17.1 395 234 68.8 228 226 0.9 09-10 10-11 11-12 12-13 13-14 459 307 49.5 80,717
71,159
28.3
30.5
30.5
30.4
161,756
Passenger numbers in millions
31.4
34.0
39.4
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
50
During the financial year 2013-14 we continued with our growth strategy adding 24 wide bodied aircraft to the fleet and returning four aircraft at the end of their lease terms. This resulted in additional 5.9 billion tonne-kilometers capacity measured in ATKM. We launched nine new destinations across five continents, shipped an additional 164 thousand tonnes of cargo and carried 5.1 million more passengers than the previous year.
Profitability Profit attributable to the Owner In its 26th consecutive year of profitable operations, profit attributable to the Owner stood at AED 3.3 billion, a substantial 42.5% increase over last year’s profit of AED 2.3 billion. Costs grew at a slower pace than the expansion in revenue. Lower unit costs and a stable yield on an expanded capacity were the main drivers for the growth in profitability.
Profit margin Profit margin improved to 3.9% (201213: 3.1%) and represents a positive result given that the airline’s capacity measured in ATKM has increased by 32% over the last two years. Operating profit Operating profit increased 50.1% to AED 4.3 billion, an increase of AED 1.5 billion from last year’s operating profit level of AED 2.8 billion. This result boosted the operating margin to 5.2%, 1.3 percentage points higher than the previous year (2012-13: 3.9%). Return on shareholder’s funds The increased profitability has resulted in the return on shareholder’s funds improving to 13.6%, a healthy increase of 3.2 percentage points compared to the previous year (2012-13: 10.4%).
Revenue
44.5
Cargo carried in tonnes ‘000
1,580
1,767
1,796
2,086
2,250
Geographical revenue in AED bn
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
13.4
Revenue at AED 80.7 billion increased 13.4% (2012-13: AED 71.2 billion). In general, currencies were weaker against the US dollar and this impacted yields and revenue. Transport revenue stood at AED 77.1 billion, a 13% improvement over last year (2012-13: AED 68.2 billion) mainly on account of the increase in passenger revenue. Transport revenue remains at a significant 95.5% (2012-13: 95.9%) of total revenue. Passenger revenue and seat factor Passenger revenue (including excess baggage) grew 13.7% or AED 8 billion over the previous year to AED 65.8 billion, the result of a 14.2% growth in RPKM and a stable yield per RPKM. Passengers carried million Available seat km ASKM million Passenger seat km RPKM million Passenger seat factor %
Passenger seat factor at 79.4% was an achievement in itself against a backdrop of a significant 17.9% increase in ASKMs in the previous financial year and further increase of 14.6% in the current year. Premium class seat factor increased 2.1 percentage points compared with the previous year while economy class seat factor remained above the 80% level at 82.4% (2012-13: 83.1%) despite the increase in capacity. The strong passenger seat factor over the expanded capacity has resulted in passenger numbers exceeding 44 million, an increase of 13.1% or 5.1 million passengers over last year. This increase comes on the back of an additional 5.4 million passengers carried in the last financial year and underlines Emirates’ growth and expanding network. 2013-14 44.5 271,133 215,353 79.4
2012-13 39.4 236,645 188,618 79.7
% change 13.1 14.6 14.2 (0.3) pts
East Asia and Australasia Europe Americas Gulf and Middle East West Asia and Indian Ocean Africa
09-10 10-11 11-12 12-13 13-14
Emirates Financial Commentary
dnata Financial Commentary
29.5% 29.0% 11.4% 10.3% 10.2% 9.6%
182,757
09-10
27.5
26.1
200,687
10-11
2.4
Overview
236,645
11-12
1.5
09-10 10-11 11-12 12-13 13-14
271,133
12-13
Geographical revenue in %
Passenger yield in fils per RPKM
On average, 3.7 million passengers boarded Emirates flights each month in 2013-14. January 2014 was a memorable month with some defining milestones reached for the first time; one million passengers in a single week and four million in a month. In its first full year of operations the newly commissioned Concourse A at Dubai International airport for our growing A380 fleet, witnessed a significant passenger throughput with 37% or 8.2 million Emirates’ passengers departing Dubai using the concourse gates to board 26,864 flights. Cargo revenue Cargo revenue continued to grow and is up 8.9% over last year to AED 11.3 billion (2012-13: AED 10.3 billion) and constitutes an important 14.6% (2012-13: 15.2%) of transport revenue. In addition to belly hold cargo capacity to nine new passenger destinations, dedicated freighter operations were
launched to Kano, Nigeria and Quito, Ecuador with full year of operations to Hanoi, Vietnam and Chicago, USA launched in the 4th quarter of 2012-13. Cargo tonnage increased 7.9% over the previous year to 2,250 thousand tonnes. FTKM increased by 10.1% to 10,207 million tonnes while yield per FTKM declined by 1%, impacted in part by weaker currencies. This compares favorably with a sluggish 1.2% global growth in FTKM for international air cargo transportation in 2013. We added two new 777-200LRF aircraft to our fleet resulting in a 20.7% growth in freighter tonnage while cargo carried in the belly of passenger aircraft increased 5.9%. Growth in tonnage comes predominantly from the Far-East and African routes.
East Asia Gulf and West Asia and Middle and Indian Year Australasia Europe Americas East Ocean 2013-14
23.8
23.4
2012-13
20.9
20.1
% change
14.1
16.3
9.2
Africa
Total
7.7
80.7
8.0
6.7
71.1
2.8
15.1
13.4
8.3
8.3
8.3
7.1
10.9
16.6
Non-transport revenue This financial year marks the first full year of operation of Tower 1 of our flagship hotel in Dubai, the JW Marriott Marquis comprising 804 rooms, conferencing and fine dining facilities. Tower 2 which is in the process of becoming fully operational in the next financial year will also house an additional 804 rooms, 294 of which opened effective mid February 2014. As a consequence, revenue from hotel operations is up 68.8% to AED 395 million and it also accounts for a substantial part of the AED 123 million increase in food and beverage revenue to AED 625 million. Consumer goods, the highest revenue earner in the sale of goods component is up AED 117 million to AED 1.3 billion reflecting the growth of Maritime and Mercantile International LLC operations in Dubai.
In-flight catering revenue of Emirates Flight Catering is up 27.7% to AED 617 million reflecting new business emanating from the change in Qantas’ hub to Dubai as well as the expansion in sales to existing customers. Revenue distribution With no region contributing more than 30% of revenues, we derive benefits from a strategy of having a diverse revenue base. A robust growth in revenue has been witnessed across most geographical regions led by Europe (up AED 3.3 billion or 16.3%), East Asia and Australasia (up AED 2.9 billion or 14.1%), Gulf and Middle East (up AED 1.2 billion or 16.6%) and Africa (up AED 1 billion or 15.1%). The changes in revenue by geographical area is generally in line with the overall revenue and capacity growth reflecting the introduction of nine new destinations, one new route and the increase in frequencies and capacity to many existing destinations. 51
Profit attributable to the Owner in AED bn
Profit margin in %
Development of revenue in AED bn
9.9
5.4 3.5
3.3
52.9
8.1 3.1
2.3
3.9
61.5
71.2
Passenger seat factor in %
80.7
Available seat kilometres (ASKM) in millions
13-14 80.0
42.5
80.0
78.1
79.7
79.4
5.4 Emirates
4.3
3.6 2.8
21.6 10.4
1.8
13.6
7.2
Group
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
Revenue in AEDto m the Owner in AED bn2013-14 2012-13 % change Profit attributable Revenue and other operating income in Passenger 65,405AED m 57,477 13.8 09-10 10-11 11-12 12-13 13-14 5.4
Return on shareholder’s funds in % 28.4
Operating profit in AED bn
dnata
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
Financial Information
Cargo 11,263 10,346 8.9 Excess baggage 412 388 6.2 3.5 3.3 Transport revenue 77,080 68,211 13.0 2.3 1.5 Sale of goods Hotel operations Destination and leisure 09-10 10-11 11-12 12-13 13-14 Others
Total
2,555 2,181 17.1 395 234 68.8 228 226 0.9 09-10 10-11 11-12 12-13 13-14 459 307 49.5 80,717
71,159
28.3
30.5
30.5
30.4
161,756
Passenger numbers in millions
31.4
34.0
39.4
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
50
During the financial year 2013-14 we continued with our growth strategy adding 24 wide bodied aircraft to the fleet and returning four aircraft at the end of their lease terms. This resulted in additional 5.9 billion tonne-kilometers capacity measured in ATKM. We launched nine new destinations across five continents, shipped an additional 164 thousand tonnes of cargo and carried 5.1 million more passengers than the previous year.
Profitability Profit attributable to the Owner In its 26th consecutive year of profitable operations, profit attributable to the Owner stood at AED 3.3 billion, a substantial 42.5% increase over last year’s profit of AED 2.3 billion. Costs grew at a slower pace than the expansion in revenue. Lower unit costs and a stable yield on an expanded capacity were the main drivers for the growth in profitability.
Profit margin Profit margin improved to 3.9% (201213: 3.1%) and represents a positive result given that the airline’s capacity measured in ATKM has increased by 32% over the last two years. Operating profit Operating profit increased 50.1% to AED 4.3 billion, an increase of AED 1.5 billion from last year’s operating profit level of AED 2.8 billion. This result boosted the operating margin to 5.2%, 1.3 percentage points higher than the previous year (2012-13: 3.9%). Return on shareholder’s funds The increased profitability has resulted in the return on shareholder’s funds improving to 13.6%, a healthy increase of 3.2 percentage points compared to the previous year (2012-13: 10.4%).
Revenue
44.5
Cargo carried in tonnes ‘000
1,580
1,767
1,796
2,086
2,250
Geographical revenue in AED bn
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
13.4
Revenue at AED 80.7 billion increased 13.4% (2012-13: AED 71.2 billion). In general, currencies were weaker against the US dollar and this impacted yields and revenue. Transport revenue stood at AED 77.1 billion, a 13% improvement over last year (2012-13: AED 68.2 billion) mainly on account of the increase in passenger revenue. Transport revenue remains at a significant 95.5% (2012-13: 95.9%) of total revenue. Passenger revenue and seat factor Passenger revenue (including excess baggage) grew 13.7% or AED 8 billion over the previous year to AED 65.8 billion, the result of a 14.2% growth in RPKM and a stable yield per RPKM. Passengers carried million Available seat km ASKM million Passenger seat km RPKM million Passenger seat factor %
Passenger seat factor at 79.4% was an achievement in itself against a backdrop of a significant 17.9% increase in ASKMs in the previous financial year and further increase of 14.6% in the current year. Premium class seat factor increased 2.1 percentage points compared with the previous year while economy class seat factor remained above the 80% level at 82.4% (2012-13: 83.1%) despite the increase in capacity. The strong passenger seat factor over the expanded capacity has resulted in passenger numbers exceeding 44 million, an increase of 13.1% or 5.1 million passengers over last year. This increase comes on the back of an additional 5.4 million passengers carried in the last financial year and underlines Emirates’ growth and expanding network. 2013-14 44.5 271,133 215,353 79.4
2012-13 39.4 236,645 188,618 79.7
% change 13.1 14.6 14.2 (0.3) pts
East Asia and Australasia Europe Americas Gulf and Middle East West Asia and Indian Ocean Africa
09-10 10-11 11-12 12-13 13-14
Emirates Financial Commentary
dnata Financial Commentary
29.5% 29.0% 11.4% 10.3% 10.2% 9.6%
182,757
09-10
27.5
26.1
200,687
10-11
2.4
Overview
236,645
11-12
1.5
09-10 10-11 11-12 12-13 13-14
271,133
12-13
Geographical revenue in %
Passenger yield in fils per RPKM
On average, 3.7 million passengers boarded Emirates flights each month in 2013-14. January 2014 was a memorable month with some defining milestones reached for the first time; one million passengers in a single week and four million in a month. In its first full year of operations the newly commissioned Concourse A at Dubai International airport for our growing A380 fleet, witnessed a significant passenger throughput with 37% or 8.2 million Emirates’ passengers departing Dubai using the concourse gates to board 26,864 flights. Cargo revenue Cargo revenue continued to grow and is up 8.9% over last year to AED 11.3 billion (2012-13: AED 10.3 billion) and constitutes an important 14.6% (2012-13: 15.2%) of transport revenue. In addition to belly hold cargo capacity to nine new passenger destinations, dedicated freighter operations were
launched to Kano, Nigeria and Quito, Ecuador with full year of operations to Hanoi, Vietnam and Chicago, USA launched in the 4th quarter of 2012-13. Cargo tonnage increased 7.9% over the previous year to 2,250 thousand tonnes. FTKM increased by 10.1% to 10,207 million tonnes while yield per FTKM declined by 1%, impacted in part by weaker currencies. This compares favorably with a sluggish 1.2% global growth in FTKM for international air cargo transportation in 2013. We added two new 777-200LRF aircraft to our fleet resulting in a 20.7% growth in freighter tonnage while cargo carried in the belly of passenger aircraft increased 5.9%. Growth in tonnage comes predominantly from the Far-East and African routes.
East Asia Gulf and West Asia and Middle and Indian Year Australasia Europe Americas East Ocean 2013-14
23.8
23.4
2012-13
20.9
20.1
% change
14.1
16.3
9.2
Africa
Total
7.7
80.7
8.0
6.7
71.1
2.8
15.1
13.4
8.3
8.3
8.3
7.1
10.9
16.6
Non-transport revenue This financial year marks the first full year of operation of Tower 1 of our flagship hotel in Dubai, the JW Marriott Marquis comprising 804 rooms, conferencing and fine dining facilities. Tower 2 which is in the process of becoming fully operational in the next financial year will also house an additional 804 rooms, 294 of which opened effective mid February 2014. As a consequence, revenue from hotel operations is up 68.8% to AED 395 million and it also accounts for a substantial part of the AED 123 million increase in food and beverage revenue to AED 625 million. Consumer goods, the highest revenue earner in the sale of goods component is up AED 117 million to AED 1.3 billion reflecting the growth of Maritime and Mercantile International LLC operations in Dubai.
In-flight catering revenue of Emirates Flight Catering is up 27.7% to AED 617 million reflecting new business emanating from the change in Qantas’ hub to Dubai as well as the expansion in sales to existing customers. Revenue distribution With no region contributing more than 30% of revenues, we derive benefits from a strategy of having a diverse revenue base. A robust growth in revenue has been witnessed across most geographical regions led by Europe (up AED 3.3 billion or 16.3%), East Asia and Australasia (up AED 2.9 billion or 14.1%), Gulf and Middle East (up AED 1.2 billion or 16.6%) and Africa (up AED 1 billion or 15.1%). The changes in revenue by geographical area is generally in line with the overall revenue and capacity growth reflecting the introduction of nine new destinations, one new route and the increase in frequencies and capacity to many existing destinations. 51
Fuel price and quantity development
Operating costs in AED bn 78.4
70.3 60.5
Destination cities
13-14 13.1
86.9
13-14
12-13 12.8
87.2
12-13
100%
11-12 13.1
86.9
11-12
90%
10-11 15.6
84.4
10-11
09-10 15.9
84.1
09-10
Fuel price
Fuel uplift
120%
48.8
39.9
Employee cost as % of total operating costs
130%
110%
80%
09-10 10-11 11-12 12-13 13-14
Apr
May
Jun
Jul
Aug
c
Overview
era
Jet fuel cost as % of operating costs 29.9
Emirates
34.5
40.2
39.6
65.5
59.8
60.4
Dec
Jan
Feb
Mar
c
cos s
cha
e
10,230
9,029
13.3
13.1
c c
Emirates Financial Commentary
era
c
Emirates Independent Auditor’s Report
c
c
c c
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
c
Additional Information
c c
c c
c
c
c
c
c
c
c c
c
c
c
c c
c c
c c
c
13-14 31
10-11
97
13-14 68.9
66.8
21
64.4
63.6
67.5
66.7
66.9
65.9
09-10
8
134
66.5
12-13 ace
64.9
11-12
15
09-10 10-11 11-12 12-13 13-14
c
c c
c
c
c
c
c c
c c c
c
c
c c
cos s c c
c
c
c
c
c
c
c
o er
126
ers
102
10-11
86
09-10
85
c
c
cc departure.
c
cc
c c
c
c
c
c
c c
c
c
c cc
c
c
c
c
and Dammam. c c and Hamburg.
c
c
c c
c
c
c
c c
c
c c
cha
e
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
cc
c c
c c
c
cc
c c c
c
ca
c lower at 12.7% to 31.1 billion tonne-
cos s
c
c
c
c c
c
c
c
c
cos s
her o era
c c
c
c
a ac ra oa ac or
cc
c 52
123,055
B777 aircraft numbers
47
c
c c
o ee cos s
c c
c
c
c c
rec o era c c
162
Overall and breakeven load factor in %
c
c
c
e cos s c c
c
c
c
e
dnata Consolidated Financial Statements
c
133,772
09-10
09-10 10-11 11-12 12-13 13-14
c
c
cos s
c
c
142,129
c
o a o era
c
c
11-12
c cc
c
cos s
99
97
159,892
10-11
102
12-13
95
176,039
12-13
112
11-12
Expenditure dnata Financial Commentary
167
13-14
c
09-10 10-11 11-12 12-13 13-14
c
123
A380 aircraft numbers
166
147
136
133
c s per ATKM
94
c
c
cos s
o operating cos s
60.8
09-10 10-11 11-12 12-13 13-14 Financial Information
Nov
39.2
dnata
70.1
Oct c
Employee c c
Group
Sep
142
Aircraft departures
Available tonne kilometres (ATKM) in bn and number of aircraft 217 169 197 148 142 46.8 40.9 35.5 32.1 28.5
c c
c c
c
c
53
Fuel price and quantity development
Operating costs in AED bn 78.4
70.3 60.5
Destination cities
13-14 13.1
86.9
13-14
12-13 12.8
87.2
12-13
100%
11-12 13.1
86.9
11-12
90%
10-11 15.6
84.4
10-11
09-10 15.9
84.1
09-10
Fuel price
Fuel uplift
120%
48.8
39.9
Employee cost as % of total operating costs
130%
110%
80%
09-10 10-11 11-12 12-13 13-14
Apr
May
Jun
Jul
Aug
c
Overview
era
Jet fuel cost as % of operating costs 29.9
Emirates
34.5
40.2
39.6
65.5
59.8
60.4
Dec
Jan
Feb
Mar
c
cos s
cha
e
10,230
9,029
13.3
13.1
c c
Emirates Financial Commentary
era
c
Emirates Independent Auditor’s Report
c
c
c c
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
c
Additional Information
c c
c c
c
c
c
c
c
c
c c
c
c
c
c c
c c
c c
c
13-14 31
10-11
97
13-14 68.9
66.8
21
64.4
63.6
67.5
66.7
66.9
65.9
09-10
8
134
66.5
12-13 ace
64.9
11-12
15
09-10 10-11 11-12 12-13 13-14
c
c c
c
c
c
c
c c
c c c
c
c
c c
cos s c c
c
c
c
c
c
c
c
o er
126
ers
102
10-11
86
09-10
85
c
c
cc departure.
c
cc
c c
c
c
c
c
c c
c
c
c cc
c
c
c
c
and Dammam. c c and Hamburg.
c
c
c c
c
c
c
c c
c
c c
cha
e
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
cc
c c
c c
c
cc
c c c
c
ca
c lower at 12.7% to 31.1 billion tonne-
cos s
c
c
c
c c
c
c
c
c
cos s
her o era
c c
c
c
a ac ra oa ac or
cc
c 52
123,055
B777 aircraft numbers
47
c
c c
o ee cos s
c c
c
c
c c
rec o era c c
162
Overall and breakeven load factor in %
c
c
c
e cos s c c
c
c
c
e
dnata Consolidated Financial Statements
c
133,772
09-10
09-10 10-11 11-12 12-13 13-14
c
c
cos s
c
c
142,129
c
o a o era
c
c
11-12
c cc
c
cos s
99
97
159,892
10-11
102
12-13
95
176,039
12-13
112
11-12
Expenditure dnata Financial Commentary
167
13-14
c
09-10 10-11 11-12 12-13 13-14
c
123
A380 aircraft numbers
166
147
136
133
c s per ATKM
94
c
c
cos s
o operating cos s
60.8
09-10 10-11 11-12 12-13 13-14 Financial Information
Nov
39.2
dnata
70.1
Oct c
Employee c c
Group
Sep
142
Aircraft departures
Available tonne kilometres (ATKM) in bn and number of aircraft 217 169 197 148 142 46.8 40.9 35.5 32.1 28.5
c c
c c
c
c
53
Fleet and other capital expenditure in AED bn 19.1
Cash generated from operating activities in AED bn 12.8
11.0
94.8
dnata
Group
1.4
1.3
1.3
17.5
19.2
26%
24%
2.0
09-10 10-11 11-12 12-13 13-14
23.0
09-10 10-11 11-12 12-13 13-14
34%
25%
10.6 6.0
15.3
20%
09-10 10-11 11-12 12-13 13-14
13.4 8.0
10.7
Equity in AED bn and dividend payout in %
40.5
18.8 24.6
Cash assets
32.4
31.3
13.9 8.1
Non-current liabilities
13-14 12-13
13-14 12-13
17.2 11.0
12.8
13.0
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
EBITDAR margin in %
ash flow in AED bn 12.6
25.5
23.0
32%
24.8
13.5 24.5
7.1
40,934 40,934
20.8
24.6
25%
19.0
16.6
Current liabilities
Other current assets
10.4
21.5 20.8 17.5 44% 32,057 35,467 28,526 32% 33%
Equity
Other non-current assets
16
15
c
Aircraft, engines and parts
17.2
10.8
16
c
43.7
16.6
15.6
14.0
8.1
EBITDAR in AED bn and debt service in months 21 20
20.3
16.6
10.5
0.9
42.6
Overview
Emirates
8.3
12.6
94.8 25.5
55.4
12.1
Operating cash margin in %
6.7
101.6
101.6
12.4
11.4
Equity and liabilities in AED bn
Assets in AED bn
Cash Assets in AED bn and Cash assets to revenue in % 24.6
Cash assets net of bank overdrafts as at 31 Mar 13
09-10 10-11 11-12 12-13 13-14
Net cash generated from operating activities
Net cash used in investing activities
Net cash used in c activities
Cash assets net of bank overdrafts as at 31 Mar 14
17.2
09-10 10-11 11-12 12-13 13-14
Divident payout
Financial Information
Emirates Financial Commentary
a a ce shee s r c re dnata Financial Commentary
c
Assets
c
cha
e
cha
e
c
c
c c
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
c c
c
c
c
c dnata Independent Auditor’s Report
c
c
c c
c
c c
c
a e
c
e
c
c
c c
c
a c
c oa
es c
c
c
cc
c
c c
c
c
c
c
EBITDAR c c substantial 24% over last year.
c
c
c
c c
c
re c
c
c
cc
ac
c c
c c
c its revenue generating assets investing
c
c
54
a
o era
c c
c c
c
dnata Consolidated Financial Statements
Additional Information
c
ash asse s c
c
oa
c
ash ro
c
c
c
ash os o
c
a
es
cha
e
cha
e
c
c
c
ess
e
ser ce
c c oa a er e
ser ce
55
Fleet and other capital expenditure in AED bn 19.1
Cash generated from operating activities in AED bn 12.8
11.0
94.8
dnata
Group
1.4
1.3
1.3
17.5
19.2
26%
24%
2.0
09-10 10-11 11-12 12-13 13-14
23.0
09-10 10-11 11-12 12-13 13-14
34%
25%
10.6 6.0
15.3
20%
09-10 10-11 11-12 12-13 13-14
13.4 8.0
10.7
Equity in AED bn and dividend payout in %
40.5
18.8 24.6
Cash assets
32.4
31.3
13.9 8.1
Non-current liabilities
13-14 12-13
13-14 12-13
17.2 11.0
12.8
13.0
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
EBITDAR margin in %
ash flow in AED bn 12.6
25.5
23.0
32%
24.8
13.5 24.5
7.1
40,934 40,934
20.8
24.6
25%
19.0
16.6
Current liabilities
Other current assets
10.4
21.5 20.8 17.5 44% 32,057 35,467 28,526 32% 33%
Equity
Other non-current assets
16
15
c
Aircraft, engines and parts
17.2
10.8
16
c
43.7
16.6
15.6
14.0
8.1
EBITDAR in AED bn and debt service in months 21 20
20.3
16.6
10.5
0.9
42.6
Overview
Emirates
8.3
12.6
94.8 25.5
55.4
12.1
Operating cash margin in %
6.7
101.6
101.6
12.4
11.4
Equity and liabilities in AED bn
Assets in AED bn
Cash Assets in AED bn and Cash assets to revenue in % 24.6
Cash assets net of bank overdrafts as at 31 Mar 13
09-10 10-11 11-12 12-13 13-14
Net cash generated from operating activities
Net cash used in investing activities
Net cash used in c activities
Cash assets net of bank overdrafts as at 31 Mar 14
17.2
09-10 10-11 11-12 12-13 13-14
Divident payout
Financial Information
Emirates Financial Commentary
a a ce shee s r c re dnata Financial Commentary
c
Assets
c
cha
e
cha
e
c
c
c c
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
c c
c
c
c
c dnata Independent Auditor’s Report
c
c
c c
c
c c
c
a e
c
e
c
c
c c
c
a c
c oa
es c
c
c
cc
c
c c
c
c
c
c
EBITDAR c c substantial 24% over last year.
c
c
c
c c
c
re c
c
c
cc
ac
c c
c c
c its revenue generating assets investing
c
c
54
a
o era
c c
c c
c
dnata Consolidated Financial Statements
Additional Information
c
ash asse s c
c
oa
c
ash ro
c
c
c
ash os o
c
a
es
cha
e
cha
e
c
c
c
ess
e
ser ce
c c oa a er e
ser ce
55
Passenger Number of aircraft
Average fleet age in months 217
Emirates
197 169
dnata
Group
142
148
09-10 10-11 11-12 12-13 13-14
13-14 12-13
117
73
15
301
74 72 77
10-11
77
Total
217
129
73
15 301
09-10
12-13
Property, plant and equipment
70
Net debt (including aircraft operating leases) EBITDAR ratio in % 324.1
Note: One A319 aircraft is used for Executive jet charters
309.1
3.9 0.6
3.9 0.7
3.3
3.2
13-14
14-15
15-16
Total debt
Lease liabilities
Net debt (including aircraft operating leases) and cash assets in AED bn 42.9
310.3
53.5
27.7
26.6
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
56
3.9 0.7
4.1 0.7
4.0 0.7
3.2
3.2
3.4
3.3
12.1
16-17
17-18
18-19
19-20
>19-20
69
09-10 10-11 11-12 12-13 13-14
At the Dubai Airshow in November 2013, we broke all records by ordering 200 wide bodied aircraft. This included 150 Boeing 777X (35 Boeing 777-8Xs and 115 Boeing 777-9Xs) plus 50 purchase rights and an additional 50 Airbus A380 aircraft. The total order, excluding purchase rights, is worth an estimated AED 364 billion (US$ 99 billion) at list prices. The Boeing aircraft order is worth AED 279 billion (US$ 76 billion) and the Airbus order AED 85 billion (US$ 23 billion). Combined, it is the largest aircraft order in civil aviation history. The Boeing order is also the single largest aircraft order by value in the history of US commercial aviation. With this, Emirates now has on order 301 aircraft.
A total of AED 12 billion (US$ 3.3 billion) was raised in aircraft financing during 2013-14 funded through finance and operating leases and bonds. We have already received offers of finance covering almost all aircraft deliveries due in the next financial year. Eight of the aircraft delivered in the current financial year were funded through two corporate bonds in early 2013 which raised US$ 1.75 billion by the issue of two amortising bonds – a conventional ‘144A / Reg S’ and a Sukuk format. These pioneering amortising bond structures continue to win awards across the globe and gain recognition from the financing and investor community.
This financial year has once again seen the achievement of significant financing milestones. The year started with the issue of a second Enhanced Equipment Trust Certificate through a lessor, which tapped into the US capital markets and funded four A380s. The structure is in line with our strategy of diversification of financing sources and has allowed us to deepen and widen our investor base. Another major landmark was achieved through the refinancing of two A380s through the first ever floating rate capital market bond backed by a COFACE (the French Export Credit Agency) guarantee. This trend-setting transaction has set a standard to be followed in the industry and comes on the back of the first ever capital market bond backed by a COFACE guarantee issued in the last financial year.
09-10 10-11 11-12 12-13 13-14
Bonds and term loans
10.5
14.0
Raising more than AED 119 billion (US$ 32 billion) over the last 10 years, we continue to maintain a well-diversified and evenly spread financing portfolio. We endorse a policy of tapping into multiple sources of funding to deliver a resilient financing strategy to meet our future requirements. Fleet information In addition to the above, three B777200LRFs have been contracted on operating lease for delivery from Dubai Aerospace Enterprise (DAE) and one B777-300ER from Air Lease Corporation. We operate one of the youngest fleet in the industry with an average age of 74 months (2012-13: 72 months) compared with an industry average of 140 months according to WATS report (57th edition).
Debt Total borrowing and lease liabilities increased to AED 42.4 billion is up 4.7% over the previous year (2012-13: AED 40.5 billion). The increase is on account of 10 additional aircraft taken on finance lease offset by repayments of bonds, term loans and finance lease liabilities amounting to AED 5.2 billion. As a consequence of the increase in equity, the ratio of borrowings and lease liabilities to total equity at 31 Mar 2014 was lower at 166.6% (2012-13: 176%). Net debt to EBITDAR ratio The net debt including aircraft operating leases to EBITDAR ratio remains stable at 310.3% (2012-13: 309.1%) on account of EBITDAR and net debt growing in similar proportions. Debt service Debt service payments (excluding operating lease rentals) during the year amounted to AED 6.3 billion and includes an AED 1.8 billion bond
Graph represents the % change in average monthly currency rates in 2013-14 indexed to 2012-13
Currency development
115%
15.6
24.6
16.6
ZAR
INR
AUD
EUR
Jul
Aug
GBP
JPY
09-10 10-11 11-12 12-13 13-14 Cash Assets
95% 90% 85% 80% 75%
During the financial year we took delivery of 24 aircraft; 16 A380s from Airbus, 6 B777-300ER and 2 B777-200F.
2.7
2.5
100%
197.6
Net debt
Fleet acquisition and financing
3.2
105%
Emirates Financial Commentary
Emirates Independent Auditor’s Report
4.8
3.1
110%
34.8
260.3
Financial Information
dnata Financial Commentary
3.0
8.0
42.4
40.5
30.9
11-12
2.5
71.6
57.0
49.2 23.2
10-11
Total assets
Effective interest rate on borrowings and lease liabilities in %
14.6
70
Freighter 12 12
11-12
09-10
205
77.1
94.8
of which on of which of On In operating on finance which firm Additional Aircraft operation lease lease owned order options Overview
65.1
As at 31 March 2014
19.6
Fleet information
39.8
55.5
Operating Lease EXIM/ECA Guaranteed Financing Bonds Commercial Financing Islamic Financing
33.8
49% 23% 13% 12% 3%
Debt repayment profile in AED bn
101.6
Debt collateralization in AED bn
Sources of funding over last 10 years in %
repaid in full on its maturity date. This AED denominated bond was originally issued in 2006 with a seven year term and listed on the DFM Stock Exchange. Debt maturity profile Our objective is to achieve a wellspread debt repayment profile as achieved through the two amortising bonds issued in early 2013. The last of the existing bullet bonds, SGD 150 million Singapore Dollar 2006 (Tranche B) bond and US$ 1 billion Reg S bond 2011 totaling to AED 4.1 billion, are due for repayment in June 2016 during the financial year 2016-17. Debt collateralization Of the total debt of AED 42.4 billion, 76.4% or AED 32.4 billion is secured against property plant and equipment. The remaining debt of AED 10 billion is adequately covered against the carrying value of unencumbered assets amounting to AED 31.9 billion.
Apr
May
Jun
Currency and interest rate risk Interest rates We continue to target a balanced portfolio approach, whilst still taking advantage of market movements, with a long-term view of hedging around half of our interest rate and currency risk exposures, using prudent hedging solutions including swaps and options. Borrowings and lease liabilities (net of cash) including the off balance sheet aircraft on operating lease at 31 March 2014, comprise 94% on a fixed interest rate basis with the balance 6% on floating interest rates. At 31 March 2014, borrowings and lease liabilities carry an effective interest rate of 3.2% (2012-13: 3.1%). Currency We proactively manage our currency exposure by using prudent hedging solutions including currency swaps, options and natural hedges through outflows denominated in Pound
Sep
Oct
Nov
Dec
Jan
Feb
Mar
sterling, Euro, Australian dollars, New Zealand dollars, Japanese yen, Indian rupees, Chinese yuan and South African rand. For the year ended 31 March 2014, hedging coverage in these currencies stood between 15% and 63% of net surplus funds. The change in average exchange rates in the current year over the previous year for the following currency pairs (FC to AED) is tabulated below. Currency Avg Avg % FX rate FX rate change 2013-14 2012-13 EUR 4.906 4.742 3.5 GBP 5.820 5.820 0.0 AUD 3.427 3.779 (9.3) INR 0.061 0.067 (9.2) ZAR 0.363 0.435 (16.7) JPY 0.037 0.045 (17.7) These six currencies account for circa 41% of transport revenue while US$, AED and other Gulf currencies pegged to the US dollar account for another 35% of transport revenue.
57
Passenger Number of aircraft
Average fleet age in months 217
Emirates
197 169
dnata
Group
142
148
09-10 10-11 11-12 12-13 13-14
13-14 12-13
117
73
15
301
74 72 77
10-11
77
Total
217
129
73
15 301
09-10
12-13
Property, plant and equipment
70
Net debt (including aircraft operating leases) EBITDAR ratio in % 324.1
Note: One A319 aircraft is used for Executive jet charters
309.1
3.9 0.6
3.9 0.7
3.3
3.2
13-14
14-15
15-16
Total debt
Lease liabilities
Net debt (including aircraft operating leases) and cash assets in AED bn 42.9
310.3
53.5
27.7
26.6
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
56
3.9 0.7
4.1 0.7
4.0 0.7
3.2
3.2
3.4
3.3
12.1
16-17
17-18
18-19
19-20
>19-20
69
09-10 10-11 11-12 12-13 13-14
At the Dubai Airshow in November 2013, we broke all records by ordering 200 wide bodied aircraft. This included 150 Boeing 777X (35 Boeing 777-8Xs and 115 Boeing 777-9Xs) plus 50 purchase rights and an additional 50 Airbus A380 aircraft. The total order, excluding purchase rights, is worth an estimated AED 364 billion (US$ 99 billion) at list prices. The Boeing aircraft order is worth AED 279 billion (US$ 76 billion) and the Airbus order AED 85 billion (US$ 23 billion). Combined, it is the largest aircraft order in civil aviation history. The Boeing order is also the single largest aircraft order by value in the history of US commercial aviation. With this, Emirates now has on order 301 aircraft.
A total of AED 12 billion (US$ 3.3 billion) was raised in aircraft financing during 2013-14 funded through finance and operating leases and bonds. We have already received offers of finance covering almost all aircraft deliveries due in the next financial year. Eight of the aircraft delivered in the current financial year were funded through two corporate bonds in early 2013 which raised US$ 1.75 billion by the issue of two amortising bonds – a conventional ‘144A / Reg S’ and a Sukuk format. These pioneering amortising bond structures continue to win awards across the globe and gain recognition from the financing and investor community.
This financial year has once again seen the achievement of significant financing milestones. The year started with the issue of a second Enhanced Equipment Trust Certificate through a lessor, which tapped into the US capital markets and funded four A380s. The structure is in line with our strategy of diversification of financing sources and has allowed us to deepen and widen our investor base. Another major landmark was achieved through the refinancing of two A380s through the first ever floating rate capital market bond backed by a COFACE (the French Export Credit Agency) guarantee. This trend-setting transaction has set a standard to be followed in the industry and comes on the back of the first ever capital market bond backed by a COFACE guarantee issued in the last financial year.
09-10 10-11 11-12 12-13 13-14
Bonds and term loans
10.5
14.0
Raising more than AED 119 billion (US$ 32 billion) over the last 10 years, we continue to maintain a well-diversified and evenly spread financing portfolio. We endorse a policy of tapping into multiple sources of funding to deliver a resilient financing strategy to meet our future requirements. Fleet information In addition to the above, three B777200LRFs have been contracted on operating lease for delivery from Dubai Aerospace Enterprise (DAE) and one B777-300ER from Air Lease Corporation. We operate one of the youngest fleet in the industry with an average age of 74 months (2012-13: 72 months) compared with an industry average of 140 months according to WATS report (57th edition).
Debt Total borrowing and lease liabilities increased to AED 42.4 billion is up 4.7% over the previous year (2012-13: AED 40.5 billion). The increase is on account of 10 additional aircraft taken on finance lease offset by repayments of bonds, term loans and finance lease liabilities amounting to AED 5.2 billion. As a consequence of the increase in equity, the ratio of borrowings and lease liabilities to total equity at 31 Mar 2014 was lower at 166.6% (2012-13: 176%). Net debt to EBITDAR ratio The net debt including aircraft operating leases to EBITDAR ratio remains stable at 310.3% (2012-13: 309.1%) on account of EBITDAR and net debt growing in similar proportions. Debt service Debt service payments (excluding operating lease rentals) during the year amounted to AED 6.3 billion and includes an AED 1.8 billion bond
Graph represents the % change in average monthly currency rates in 2013-14 indexed to 2012-13
Currency development
115%
15.6
24.6
16.6
ZAR
INR
AUD
EUR
Jul
Aug
GBP
JPY
09-10 10-11 11-12 12-13 13-14 Cash Assets
95% 90% 85% 80% 75%
During the financial year we took delivery of 24 aircraft; 16 A380s from Airbus, 6 B777-300ER and 2 B777-200F.
2.7
2.5
100%
197.6
Net debt
Fleet acquisition and financing
3.2
105%
Emirates Financial Commentary
Emirates Independent Auditor’s Report
4.8
3.1
110%
34.8
260.3
Financial Information
dnata Financial Commentary
3.0
8.0
42.4
40.5
30.9
11-12
2.5
71.6
57.0
49.2 23.2
10-11
Total assets
Effective interest rate on borrowings and lease liabilities in %
14.6
70
Freighter 12 12
11-12
09-10
205
77.1
94.8
of which on of which of On In operating on finance which firm Additional Aircraft operation lease lease owned order options Overview
65.1
As at 31 March 2014
19.6
Fleet information
39.8
55.5
Operating Lease EXIM/ECA Guaranteed Financing Bonds Commercial Financing Islamic Financing
33.8
49% 23% 13% 12% 3%
Debt repayment profile in AED bn
101.6
Debt collateralization in AED bn
Sources of funding over last 10 years in %
repaid in full on its maturity date. This AED denominated bond was originally issued in 2006 with a seven year term and listed on the DFM Stock Exchange. Debt maturity profile Our objective is to achieve a wellspread debt repayment profile as achieved through the two amortising bonds issued in early 2013. The last of the existing bullet bonds, SGD 150 million Singapore Dollar 2006 (Tranche B) bond and US$ 1 billion Reg S bond 2011 totaling to AED 4.1 billion, are due for repayment in June 2016 during the financial year 2016-17. Debt collateralization Of the total debt of AED 42.4 billion, 76.4% or AED 32.4 billion is secured against property plant and equipment. The remaining debt of AED 10 billion is adequately covered against the carrying value of unencumbered assets amounting to AED 31.9 billion.
Apr
May
Jun
Currency and interest rate risk Interest rates We continue to target a balanced portfolio approach, whilst still taking advantage of market movements, with a long-term view of hedging around half of our interest rate and currency risk exposures, using prudent hedging solutions including swaps and options. Borrowings and lease liabilities (net of cash) including the off balance sheet aircraft on operating lease at 31 March 2014, comprise 94% on a fixed interest rate basis with the balance 6% on floating interest rates. At 31 March 2014, borrowings and lease liabilities carry an effective interest rate of 3.2% (2012-13: 3.1%). Currency We proactively manage our currency exposure by using prudent hedging solutions including currency swaps, options and natural hedges through outflows denominated in Pound
Sep
Oct
Nov
Dec
Jan
Feb
Mar
sterling, Euro, Australian dollars, New Zealand dollars, Japanese yen, Indian rupees, Chinese yuan and South African rand. For the year ended 31 March 2014, hedging coverage in these currencies stood between 15% and 63% of net surplus funds. The change in average exchange rates in the current year over the previous year for the following currency pairs (FC to AED) is tabulated below. Currency Avg Avg % FX rate FX rate change 2013-14 2012-13 EUR 4.906 4.742 3.5 GBP 5.820 5.820 0.0 AUD 3.427 3.779 (9.3) INR 0.061 0.067 (9.2) ZAR 0.363 0.435 (16.7) JPY 0.037 0.045 (17.7) These six currencies account for circa 41% of transport revenue while US$, AED and other Gulf currencies pegged to the US dollar account for another 35% of transport revenue.
57
Geographical work force in %
88% UAE 12% Overseas
Capacity per airline employee in ATKM ‘000
Revenue per airline employee in AED ‘000
13-14
13-14
1,129
12-13
1,075
12-13
11-12
1,054
11-12
10-11
1,059
10-11
09-10
1,938 1,868 1,796 1,738
09-10
994
1,459
Overview
Emirates
dnata
Group
o ee s re
e
c c
Emirates Financial Commentary
o ee s re c
ro
Engineering
2,473
2,322
6.5
Overseas stations
5,609
5,536
1.3
ha c
oa
Emirates Independent Auditor’s Report
r
s
c
e
ar co
era e e
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
cha
c
Financial Information
dnata Financial Commentary
h
a es o ee s re
c c c
c
c
dnata Financial Commentary
h c c
c
c
dnata Consolidated Financial Statements
Additional Information
c c
c
c
c
c
c
c
c c c
c 59
Geographical work force in %
88% UAE 12% Overseas
Capacity per airline employee in ATKM ‘000
Revenue per airline employee in AED ‘000
13-14
13-14
1,129
12-13
1,075
12-13
11-12
1,054
11-12
10-11
1,059
10-11
09-10
1,938 1,868 1,796 1,738
09-10
994
1,459
Overview
Emirates
dnata
Group
o ee s re
e
c c
Emirates Financial Commentary
o ee s re c
ro
Engineering
2,473
2,322
6.5
Overseas stations
5,609
5,536
1.3
ha c
oa
Emirates Independent Auditor’s Report
r
s
c
e
ar co
era e e
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
cha
c
Financial Information
dnata Financial Commentary
h
a es o ee s re
c c c
c
c
dnata Financial Commentary
h c c
c
c
dnata Consolidated Financial Statements
Additional Information
c c
c
c
c
c
c
c
c c c
c 59
ro
a r
a e o he
w er in AED m
613
Revenue in AED bn 7.4
6.5
5.7
21.3
576
23
38
45
46
50
3.2
77
09-10 10-11 11-12 12-13 13-14
13-14
288,335 264,950
11-12
19.1
18.0
Meals uplifted number in millions
12-13
4.3
21.4
09-10 10-11 11-12 12-13 13-14
Aircraft handled
Geographical revenue in %
23.7
829
819
808
Return on shareholder’s funds in %
09-10 10-11 11-12 12-13 13-14
62
55
54
50
09-10 10-11 11-12 12-13 13-14
253,434
10-11
232,585
09-10
13-14
41.3
12-13
28.6
11-12
26.7
10-11
Travel services related net sales in AED bn
Cargo handled in tonnes ‘000
13-14
1,604
13-14
12-13
1,570
12-13
11-12
1,543
11-12
10-11
11.7
1,494
09-10
192,120
1,121
5.9 5.4 2.6
10-11
1.6
09-10
1.6
International era
Overview
ro
559
863
815
784
Emirates
dnata
ro ar 19.4
in AED m
Revenue by line of business in %
in %
500
14.0 13.1
Group
12.4
11.0
Revenue
Financial Information
c
Airport operations
c c
c Emirates Independent Auditor’s Report
c
Emirates Consolidated Financial Statements
c dnata Independent Auditor’s Report
c
c
c c c
c
c
c
c
c
c
c
ro
c
c
c
c
c
c
c
c c
c
c
c
c c
c
c
c
c
at Dubai International airport.
c
8.9% Travel services
c
c
c
c
c
c
c
cc c
c
c
c
c
cc
c c
c c
c
c
c c
c
c
c
c turnover measured by net sales value, c
or a o
c c
c
c
c
c
c
c serves 62 airports mainly in Europe,
c c
c
cc
c
c
cc last year.
Revenue
c
c
ra e ser ces c
c
c
cc
c
c
c c
c c
a
c
c
c
c
c
Cargo
Catering c
oa
c
c International airport at Dubai World
Finally in February 2014, we went c c 60
oa
15.7% Cargo
c
dnata Financial Commentary
Additional Information
o
23.5%
Revenue by line of business in %
c
Emirates Financial Commentary
dnata Consolidated Financial Statements
e
38.1% Airport operations
Revenue by line of business in %
c
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
cha
Revenue by line of business in %
c c
ech o o c cc c
c 61
ro
a r
a e o he
w er in AED m
613
Revenue in AED bn 7.4
6.5
5.7
21.3
576
23
38
45
46
50
3.2
77
09-10 10-11 11-12 12-13 13-14
13-14
288,335 264,950
11-12
19.1
18.0
Meals uplifted number in millions
12-13
4.3
21.4
09-10 10-11 11-12 12-13 13-14
Aircraft handled
Geographical revenue in %
23.7
829
819
808
Return on shareholder’s funds in %
09-10 10-11 11-12 12-13 13-14
62
55
54
50
09-10 10-11 11-12 12-13 13-14
253,434
10-11
232,585
09-10
13-14
41.3
12-13
28.6
11-12
26.7
10-11
Travel services related net sales in AED bn
Cargo handled in tonnes ‘000
13-14
1,604
13-14
12-13
1,570
12-13
11-12
1,543
11-12
10-11
11.7
1,494
09-10
192,120
1,121
5.9 5.4 2.6
10-11
1.6
09-10
1.6
International era
Overview
ro
559
863
815
784
Emirates
dnata
ro ar 19.4
in AED m
Revenue by line of business in %
in %
500
14.0 13.1
Group
12.4
11.0
Revenue
Financial Information
c
Airport operations
c c
c Emirates Independent Auditor’s Report
c
Emirates Consolidated Financial Statements
c dnata Independent Auditor’s Report
c
c
c c c
c
c
c
c
c
c
c
ro
c
c
c
c
c
c
c
c c
c
c
c
c c
c
c
c
c
at Dubai International airport.
c
8.9% Travel services
c
c
c
c
c
c
c
cc c
c
c
c
c
cc
c c
c c
c
c
c c
c
c
c
c turnover measured by net sales value, c
or a o
c c
c
c
c
c
c
c serves 62 airports mainly in Europe,
c c
c
cc
c
c
cc last year.
Revenue
c
c
ra e ser ces c
c
c
cc
c
c
c c
c c
a
c
c
c
c
c
Cargo
Catering c
oa
c
c International airport at Dubai World
Finally in February 2014, we went c c 60
oa
15.7% Cargo
c
dnata Financial Commentary
Additional Information
o
23.5%
Revenue by line of business in %
c
Emirates Financial Commentary
dnata Consolidated Financial Statements
e
38.1% Airport operations
Revenue by line of business in %
c
09-10 10-11 11-12 12-13 13-14
09-10 10-11 11-12 12-13 13-14
cha
Revenue by line of business in %
c c
ech o o c cc c
c 61
Free cash flow in AED m
4.1 0.6
Emirates
dnata
Group
0.6
Employee cost as % of total operating costs 48.5
51.5
era
12-13
47.7
52.3
Employee
11-12
50.1
49.9
10-11
52.0
48.0
09-10 c
Financial Information
cha 3,251 c
2,771
c
PPE and intangible assets Other noncurrent assets Cash assets Other current assets
2.4
1.9
436
c
2.4
17.3
372
17.2
c
c
e
c c
Rent and lease expenses
46.7
53.3
cos s
1.6
2.5
13-14 12-13
Equity
2.1
Non-current liabilities Current liabilities
1,125
443
2,317
Cash assets net of bank overdrafts as at 31 Mar 13*
13-14 12-13
2,262
Net cash generated from operating activities
c
Net cash used in investing activities
c
Net cash used in c activities
c
Cash assets net of bank overdrafts as at 31 Mar 14*
c
cha
e
cha
e
c
a a ce hee
o ee cos s
c
c
c
c
c
c
r or o era o s a c c
cc c
c c
c
c cc
c c
c
c
cc c
c
car o cos s c c
c
her o era c
c
c c
cc
c cc
c c
c
c
were made in ground support c c
c
oa
c
c
a
c
c
ash os o
cc
ash ro
o era o s
c
c
c
c
c
a c oa
a
cha
e
cha
cc
c
cc
es
c
c
c
c
c c c
c
c
c
c
c
c
ash asse s
c
e
c
c
c
cc
c
c
c
c
Free cash flow c
es c
c
c
c
c a
c
c
c
c
c
c c we believe is our responsibility as an c c
cos s
c
c
c
c c
c
c
os o sa es
or 17.3%. c
c
c c
c c
c
c c
dnata Consolidated Financial Statements
c
c c
c
Emirates Consolidated Financial Statements
r c re
Assets
c
c
62
770
1,125
1.4
c
oa
Expenditure
Additional Information
1,162
ash flow in AED m 1.4
Assets
dnata Financial Commentary
dnata Independent Auditor’s Report
09-10 10-11 11-12 12-13 13-14
c
Emirates Financial Commentary
Emirates Independent Auditor’s Report
14.9
09-10 10-11 11-12 12-13 13-14
4.8
3.0
13-14
17.5
3.8
09-10 10-11 11-12 12-13 13-14
Overview
20.3 355
7.6
7.6
20.4
703
Equity and liabilities in AED bn 8.7
631
2.6
Assets in AED bn 8.7
901
3.9
Operating cash margin in % 24.2
152
5.8 5.0
Employee Airport operations and cargo - other direct costs Cost of sales Rent and lease expenses Depreciation and amortisation Information technology infrastructure costs Sales and marketing expenses Corporate overheads
764
48.5% 13.2% 11.1% 6.5% 5.3% 5.1% 3.5% 6.8%
1,167
Operating costs in %
6.7
701
Operating costs in AED bn
c
c
cc c
c c
c 63
Free cash flow in AED m
4.1 0.6
Emirates
dnata
Group
0.6
Employee cost as % of total operating costs 48.5
51.5
era
12-13
47.7
52.3
Employee
11-12
50.1
49.9
10-11
52.0
48.0
09-10 c
Financial Information
cha 3,251 c
2,771
c
PPE and intangible assets Other noncurrent assets Cash assets Other current assets
2.4
1.9
436
c
2.4
17.3
372
17.2
c
c
e
c c
Rent and lease expenses
46.7
53.3
cos s
1.6
2.5
13-14 12-13
Equity
2.1
Non-current liabilities Current liabilities
1,125
443
2,317
Cash assets net of bank overdrafts as at 31 Mar 13*
13-14 12-13
2,262
Net cash generated from operating activities
c
Net cash used in investing activities
c
Net cash used in c activities
c
Cash assets net of bank overdrafts as at 31 Mar 14*
c
cha
e
cha
e
c
a a ce hee
o ee cos s
c
c
c
c
c
c
r or o era o s a c c
cc c
c c
c
c cc
c c
c
c
cc c
c
car o cos s c c
c
her o era c
c
c c
cc
c cc
c c
c
c
were made in ground support c c
c
oa
c
c
a
c
c
ash os o
cc
ash ro
o era o s
c
c
c
c
c
a c oa
a
cha
e
cha
cc
c
cc
es
c
c
c
c
c c c
c
c
c
c
c
c
ash asse s
c
e
c
c
c
cc
c
c
c
c
Free cash flow c
es c
c
c
c
c a
c
c
c
c
c
c c we believe is our responsibility as an c c
cos s
c
c
c
c c
c
c
os o sa es
or 17.3%. c
c
c c
c c
c
c c
dnata Consolidated Financial Statements
c
c c
c
Emirates Consolidated Financial Statements
r c re
Assets
c
c
62
770
1,125
1.4
c
oa
Expenditure
Additional Information
1,162
ash flow in AED m 1.4
Assets
dnata Financial Commentary
dnata Independent Auditor’s Report
09-10 10-11 11-12 12-13 13-14
c
Emirates Financial Commentary
Emirates Independent Auditor’s Report
14.9
09-10 10-11 11-12 12-13 13-14
4.8
3.0
13-14
17.5
3.8
09-10 10-11 11-12 12-13 13-14
Overview
20.3 355
7.6
7.6
20.4
703
Equity and liabilities in AED bn 8.7
631
2.6
Assets in AED bn 8.7
901
3.9
Operating cash margin in % 24.2
152
5.8 5.0
Employee Airport operations and cargo - other direct costs Cost of sales Rent and lease expenses Depreciation and amortisation Information technology infrastructure costs Sales and marketing expenses Corporate overheads
764
48.5% 13.2% 11.1% 6.5% 5.3% 5.1% 3.5% 6.8%
1,167
Operating costs in %
6.7
701
Operating costs in AED bn
c
c
cc c
c c
c 63
13-14
356
13-14
135
13-14
270
12-13
327
12-13
132
12-13
286
11-12
322
11-12
132
11-12
289
10-11
323
10-11
10-11
283
09-10
Overview
Cargo handled per man hour in kgs
Man hours per turn in hours
Revenue per employee in AED ‘000
266
09-10
122
09-10
115
Independent Auditor’s Report to the Owner of Emirates
277
Geographical work force in %
Emirates
dnata
60% UAE 40% Overseas
Group
Employee strength
2013-14
2012-13
% change
9,441
8,373
12.8
877
877
0.0
Airport operations Cargo handling Information technology
Financial Information
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
1,438
7.6
991
889
11.5
Others
486
484
0.4
Emirates Financial Commentary
dnata Financial Commentary
1,547
Travel services
Total dnata (parent co.)
Employee strength and productivity During 2013-14, the average workforce increased by 2,751 or 13.6% to 22,980. The average employee count for the dnata parent company rose 10.6% or by 1,281 to 13,342 (2012-13: 12,061). The main increase with 1,068 employees is in the airport operations area and stems from the additional manpower deployed to meet the logistic challenges posed by the expansion of Dubai International airport and the commencement of passenger handling services at Al Maktoum International airport in Dubai World Central.
Subsidiaries Average employee strength The average number of employees in our subsidiary companies is up 18% or by 1,470 to 9,638, mainly as a result of the Gold Medal and Air Chef acquisitions. With the growth in international operations, 40% (2012-13: 38%) of the workforce is now based outside the UAE. Productivity measured in terms of revenue per employee has risen 8.9% to AED 356 thousand from AED 327 thousand in 2012-13. Revenue from the acquisitions during the year have been normalised to arrive at this result.
13,342
12,061
10.6
9,638
8,168
18.0
22,980
20,229
13.6
Productivity measured in terms of man hours per aircraft turn at 135 (2012-13: 132) was impacted by the additional work force deployed at Dubai. Productivity measured in terms of cargo handled per man hour at 270 kgs is lower by 5.6% (2012-13: 286 kgs) on account of lower volumes in Singapore.
Report on the consolidated financial statements We have audited the accompanying consolidated financial statements of Emirates and its subsidiaries (together referred to as “Emirates”), which comprise the consolidated statement of financial position as of 31 March 2014 and the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. Management’s responsibility for the consolidated financial statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Emirates as of 31 March 2014, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. PricewaterhouseCoopers 1 May 2014
Paul Suddaby Registered Auditor Number 309 Dubai, United Arab Emirates
Additional Information
64
65
13-14
356
13-14
135
13-14
270
12-13
327
12-13
132
12-13
286
11-12
322
11-12
132
11-12
289
10-11
323
10-11
10-11
283
09-10
Overview
Cargo handled per man hour in kgs
Man hours per turn in hours
Revenue per employee in AED ‘000
266
09-10
122
09-10
115
Independent Auditor’s Report to the Owner of Emirates
277
Geographical work force in %
Emirates
dnata
60% UAE 40% Overseas
Group
Employee strength
2013-14
2012-13
% change
9,441
8,373
12.8
877
877
0.0
Airport operations Cargo handling Information technology
Financial Information
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
1,438
7.6
991
889
11.5
Others
486
484
0.4
Emirates Financial Commentary
dnata Financial Commentary
1,547
Travel services
Total dnata (parent co.)
Employee strength and productivity During 2013-14, the average workforce increased by 2,751 or 13.6% to 22,980. The average employee count for the dnata parent company rose 10.6% or by 1,281 to 13,342 (2012-13: 12,061). The main increase with 1,068 employees is in the airport operations area and stems from the additional manpower deployed to meet the logistic challenges posed by the expansion of Dubai International airport and the commencement of passenger handling services at Al Maktoum International airport in Dubai World Central.
Subsidiaries Average employee strength The average number of employees in our subsidiary companies is up 18% or by 1,470 to 9,638, mainly as a result of the Gold Medal and Air Chef acquisitions. With the growth in international operations, 40% (2012-13: 38%) of the workforce is now based outside the UAE. Productivity measured in terms of revenue per employee has risen 8.9% to AED 356 thousand from AED 327 thousand in 2012-13. Revenue from the acquisitions during the year have been normalised to arrive at this result.
13,342
12,061
10.6
9,638
8,168
18.0
22,980
20,229
13.6
Productivity measured in terms of man hours per aircraft turn at 135 (2012-13: 132) was impacted by the additional work force deployed at Dubai. Productivity measured in terms of cargo handled per man hour at 270 kgs is lower by 5.6% (2012-13: 286 kgs) on account of lower volumes in Singapore.
Report on the consolidated financial statements We have audited the accompanying consolidated financial statements of Emirates and its subsidiaries (together referred to as “Emirates”), which comprise the consolidated statement of financial position as of 31 March 2014 and the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. Management’s responsibility for the consolidated financial statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Emirates as of 31 March 2014, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. PricewaterhouseCoopers 1 May 2014
Paul Suddaby Registered Auditor Number 309 Dubai, United Arab Emirates
Additional Information
64
65
Emirates Consolidated Income Statement CONSOLIDATED INCOME STATEMENT Emirates for the year ended 31 March 2014
Consolidated Statement of Financial Position as at 31 March 2014
Emirates Emirates CONSOLIDATED CONSOLIDATED STATEMENT OF STATEMENT FINANCIALOF POSITION FINANCIAL POSITION AS AT 31 MARCH AS AT 2014 31 MARCH 2014
CONSOLIDATED INCOME FOR THE YEAR ENDED 31 STATEMENT MARCH 2014 FOR THE YEAR ENDED 31 MARCH 2014
Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
2014
2013
Note
AED m 2014
AED m 2013
Note
2014 Note AED m
2014 2013
2013
AEDmm AED
AED m
Revenue
5
80,717 AED m
71,159 AED m
ASSETS
Other operating income Revenue
6 5
1,919 80,717
1,954 71,159
Non-current assets Non-current assets
Operating costs income Other operating
7 6
(78,376) 1,919
(70,274) 1,954
plant and equipment Property, plantProperty, and equipment
11
11 71,582
71,582 57,039
57,039
Intangible assets Intangible assets
12
12 928
928 910
910
Operating profit Operating costs
7
4,260 (78,376)
2,839 (70,274)
Finance income Operating profit
8
247 4,260
406 2,839
costs Finance income
8
(1,179) 247
(900) 406
Share ofcosts results of investments accounted for using the equity method Finance
13 8
136 (1,179)
127 (900)
Profit of before tax Share resultsincome of investments accounted for using the equity method
13
3,464 136
2,472 127
Incomebefore tax expense Profit income tax
9
(47) 3,464
(64) 2,472
Profit for year Income taxthe expense
9
3,417 (47)
2,408 (64)
Profit attributable Profit for the yearto non-controlling interests
163 3,417
125 2,408
Profitattributable attributabletoto Emirates' Owner Profit non-controlling interests
3,254 163
2,283 125
Profit attributable to Emirates' Owner
3,254
2,283
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2014 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Consolidated Statement of Comprehensive Income FOR THE YEAR ENDED 31 MARCH 2014 for the year ended 31 March 2014 Profit for the year
3,417
2,408
Items that willyear not be reclassified to the consolidated income statement Profit for the
3,417
2,408
25
(148)
(70)
Items that may be reclassified subsequently to the consolidated income statement Remeasurement of retirement benefit obligations
25
(148)
(70)
19
(48)
9
19
182 (48)
56 9
19
(14) 182
(5) 56
Total comprehensive Other comprehensiveincome incomefor the year
3,403 (14)
2,403 (5)
Total comprehensive attributable to non-controlling interests Total comprehensiveincome income for the year
163 3,403
125 2,403
Total comprehensive comprehensiveincome income attributable to Emirates' Owner Total attributable to non-controlling interests
3,240 163
2,278 125
Total comprehensive income part attributable to Emirates' financial Owner statements. Notes 1 to 39 form an integral of these consolidated
3,240
2,278
Cash flowtranslation hedges differences Currency Other comprehensive Cash flow hedges income
method
13
13 495
495 485
485
Advance lease Advance rentals lease rentals
14
14 812
812 807
807
Loans and other receivables Loans and other receivables
15
15 428
428 508
508
Derivative financial instruments Derivative financial instruments
35
35 5
925
92
Deferred income tax asset Deferred income tax asset
29
29 -
1574,250 59,856
74,250 Inventories
Trade and other receivables Trade and other receivables
Capital
c
2013 AED m
18
801 18
801 801
801
19
(634) 19
(768) (634)
(768)
25,009 25,176 295 25,471
22,729 25,009 22,762 25,176 270 295 23,032 25,471
22,729 22,762 270 23,032
Retained earnings Retained earnings Attributable to Attributable Emirates' Owner to Emirates' Owner Non-controlling Non-controlling interests interests Total equity Total equity Non-current liabilities Non-current liabilities Trade and other Trade payables and other payables
30
287 30
269 287
269
Borrowings andBorrowings lease liabilities and lease liabilities
20
38,500 20
35,483 38,500
35,483 1,460
16 1,706
1,706 1,564
1,564
Deferred revenue Deferred revenue
27
1,440 27
1,460 1,440
17
17 9,086
9,086 8,744
8,744
Deferred credits Deferred credits
28
234 28
294 234
294
Derivative financial Derivative instruments financial instruments
35
599 35
1,016 599
1,016
Provisions
24
2,643 24
1,930 2,643
1,930
29
29 2
-2
43,705
43,705 40,452
40,452
30 27,079
27,079 25,013
25,013
30
30 24
24
20
20 3,931
3,931 5,042
5,042
Deferred revenue Deferred revenue
27
27 1,227
1,227 1,147
1,147
Deferred credits Deferred credits
28
28 66
66 87
87
Derivative financial instruments Derivative financial instruments
35
35 95
95 6
6
32,428
32,428 31,319
31,319
76,133
76,133 71,771
71,771
101,604
101,604 94,803
94,803
Derivative financial instruments Derivative financial instruments
35
35 1
671
67
Short term bank deposits Short term bank deposits
33
33 8,754
8,754 18,048
18,048
33 7,807
33
Total assets Total assets
7,807 6,524
6,524
27,354
27,354 34,947
34,947
101,604
101,604 94,803
94,803
Provisions
Deferred income Deferred tax liability income tax liability
-
Current liabilities Current liabilities Trade and other payables Trade and other payables
30
Income tax liabilities Income tax liabilities and lease liabilities Borrowings andBorrowings lease liabilities
Total liabilitiesTotal liabilities Total equity and liabilities Total equity and liabilities
c statements Thefinancial consolidated financial statements The cconsolidated were approvedwere on 1approved May 2014onand 1 May signed 2014 by:and signed by:
Notes 1 to 39 form partanofintegral these consolidated statements. Notesan1 integral to 39 form part of thesefinancial consolidated financial statements.
c
Capital
Other reserves Other reserves
Ahmed bin Saeed Al-Maktoum Sheikh Ahmed Sheikh bin Saeed Al-Maktoum Chairman and Chief Executive Chairman and Chief Executive
2
66
2013 2014 AED AEDmm
16
Notes 1 to 39 form an integral part of these consolidated financial statements.
Additional Information
15 59,856
Current assetsCurrent assets Inventories
2014 Note AED m
Capital and reserves Capital and reserves
Investments accounted for using the equity Investments accounted for using the equity method
Note EQUITY AND LIABILITIES EQUITY AND LIABILITIES
ASSETS
and cash equivalents Cash and cash Cash equivalents
Remeasurement of reclassified retirement benefit Items that will not be to the obligations consolidated income statement Currency translation differences Items that may be reclassified subsequently to the consolidated income statement
Emirates Consolidated Financial Statements
Note
c
c
2
c
Timothy Clark Timothy Clark President President
President
67
Emirates Consolidated Income Statement CONSOLIDATED INCOME STATEMENT Emirates for the year ended 31 March 2014
Consolidated Statement of Financial Position as at 31 March 2014
Emirates Emirates CONSOLIDATED CONSOLIDATED STATEMENT OF STATEMENT FINANCIALOF POSITION FINANCIAL POSITION AS AT 31 MARCH AS AT 2014 31 MARCH 2014
CONSOLIDATED INCOME FOR THE YEAR ENDED 31 STATEMENT MARCH 2014 FOR THE YEAR ENDED 31 MARCH 2014
Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
2014
2013
Note
AED m 2014
AED m 2013
Note
2014 Note AED m
2014 2013
2013
AEDmm AED
AED m
Revenue
5
80,717 AED m
71,159 AED m
ASSETS
Other operating income Revenue
6 5
1,919 80,717
1,954 71,159
Non-current assets Non-current assets
Operating costs income Other operating
7 6
(78,376) 1,919
(70,274) 1,954
plant and equipment Property, plantProperty, and equipment
11
11 71,582
71,582 57,039
57,039
Intangible assets Intangible assets
12
12 928
928 910
910
Operating profit Operating costs
7
4,260 (78,376)
2,839 (70,274)
Finance income Operating profit
8
247 4,260
406 2,839
costs Finance income
8
(1,179) 247
(900) 406
Share ofcosts results of investments accounted for using the equity method Finance
13 8
136 (1,179)
127 (900)
Profit of before tax Share resultsincome of investments accounted for using the equity method
13
3,464 136
2,472 127
Incomebefore tax expense Profit income tax
9
(47) 3,464
(64) 2,472
Profit for year Income taxthe expense
9
3,417 (47)
2,408 (64)
Profit attributable Profit for the yearto non-controlling interests
163 3,417
125 2,408
Profitattributable attributabletoto Emirates' Owner Profit non-controlling interests
3,254 163
2,283 125
Profit attributable to Emirates' Owner
3,254
2,283
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2014 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Consolidated Statement of Comprehensive Income FOR THE YEAR ENDED 31 MARCH 2014 for the year ended 31 March 2014 Profit for the year
3,417
2,408
Items that willyear not be reclassified to the consolidated income statement Profit for the
3,417
2,408
25
(148)
(70)
Items that may be reclassified subsequently to the consolidated income statement Remeasurement of retirement benefit obligations
25
(148)
(70)
19
(48)
9
19
182 (48)
56 9
19
(14) 182
(5) 56
Total comprehensive Other comprehensiveincome incomefor the year
3,403 (14)
2,403 (5)
Total comprehensive attributable to non-controlling interests Total comprehensiveincome income for the year
163 3,403
125 2,403
Total comprehensive comprehensiveincome income attributable to Emirates' Owner Total attributable to non-controlling interests
3,240 163
2,278 125
Total comprehensive income part attributable to Emirates' financial Owner statements. Notes 1 to 39 form an integral of these consolidated
3,240
2,278
Cash flowtranslation hedges differences Currency Other comprehensive Cash flow hedges income
method
13
13 495
495 485
485
Advance lease Advance rentals lease rentals
14
14 812
812 807
807
Loans and other receivables Loans and other receivables
15
15 428
428 508
508
Derivative financial instruments Derivative financial instruments
35
35 5
925
92
Deferred income tax asset Deferred income tax asset
29
29 -
1574,250 59,856
74,250 Inventories
Trade and other receivables Trade and other receivables
Capital
c
2013 AED m
18
801 18
801 801
801
19
(634) 19
(768) (634)
(768)
25,009 25,176 295 25,471
22,729 25,009 22,762 25,176 270 295 23,032 25,471
22,729 22,762 270 23,032
Retained earnings Retained earnings Attributable to Attributable Emirates' Owner to Emirates' Owner Non-controlling Non-controlling interests interests Total equity Total equity Non-current liabilities Non-current liabilities Trade and other Trade payables and other payables
30
287 30
269 287
269
Borrowings andBorrowings lease liabilities and lease liabilities
20
38,500 20
35,483 38,500
35,483 1,460
16 1,706
1,706 1,564
1,564
Deferred revenue Deferred revenue
27
1,440 27
1,460 1,440
17
17 9,086
9,086 8,744
8,744
Deferred credits Deferred credits
28
234 28
294 234
294
Derivative financial Derivative instruments financial instruments
35
599 35
1,016 599
1,016
Provisions
24
2,643 24
1,930 2,643
1,930
29
29 2
-2
43,705
43,705 40,452
40,452
30 27,079
27,079 25,013
25,013
30
30 24
24
20
20 3,931
3,931 5,042
5,042
Deferred revenue Deferred revenue
27
27 1,227
1,227 1,147
1,147
Deferred credits Deferred credits
28
28 66
66 87
87
Derivative financial instruments Derivative financial instruments
35
35 95
95 6
6
32,428
32,428 31,319
31,319
76,133
76,133 71,771
71,771
101,604
101,604 94,803
94,803
Derivative financial instruments Derivative financial instruments
35
35 1
671
67
Short term bank deposits Short term bank deposits
33
33 8,754
8,754 18,048
18,048
33 7,807
33
Total assets Total assets
7,807 6,524
6,524
27,354
27,354 34,947
34,947
101,604
101,604 94,803
94,803
Provisions
Deferred income Deferred tax liability income tax liability
-
Current liabilities Current liabilities Trade and other payables Trade and other payables
30
Income tax liabilities Income tax liabilities and lease liabilities Borrowings andBorrowings lease liabilities
Total liabilitiesTotal liabilities Total equity and liabilities Total equity and liabilities
c statements Thefinancial consolidated financial statements The cconsolidated were approvedwere on 1approved May 2014onand 1 May signed 2014 by:and signed by:
Notes 1 to 39 form partanofintegral these consolidated statements. Notesan1 integral to 39 form part of thesefinancial consolidated financial statements.
c
Capital
Other reserves Other reserves
Ahmed bin Saeed Al-Maktoum Sheikh Ahmed Sheikh bin Saeed Al-Maktoum Chairman and Chief Executive Chairman and Chief Executive
2
66
2013 2014 AED AEDmm
16
Notes 1 to 39 form an integral part of these consolidated financial statements.
Additional Information
15 59,856
Current assetsCurrent assets Inventories
2014 Note AED m
Capital and reserves Capital and reserves
Investments accounted for using the equity Investments accounted for using the equity method
Note EQUITY AND LIABILITIES EQUITY AND LIABILITIES
ASSETS
and cash equivalents Cash and cash Cash equivalents
Remeasurement of reclassified retirement benefit Items that will not be to the obligations consolidated income statement Currency translation differences Items that may be reclassified subsequently to the consolidated income statement
Emirates Consolidated Financial Statements
Note
c
c
2
c
Timothy Clark Timothy Clark President President
President
67
Emirates
Emirates
Consolidated Statement of INChanges in Equity CONSOLIDATED STATEMENT OF CHANGES EQUITY for theYEAR year ended 312014 March 2014 FOR THE ENDED 31 MARCH
Emirates
Consolidated Statement of Cash Flows FOR THE YEAR ENDED 31year MARCH 2014 FOR THE ENDED 31 MARCH for theYEAR ended 312014 March 2014 CONSOLIDATED STATEMENT OF CASH FLOWS CONSOLIDATED STATEMENT OF CASH FLOWS
Note
Attributable to Emirates' Owner Note
Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
1 April 2012
Non-
Other
Retained
Capital
reserves
earnings
Total
AED m
AED m
AED m
AED m
801
(833)
Remeasurement of retirement benefit obligations
25
-
-
Currency translation differences
19
-
9
controlling interests AED m
Operating activities Operating activities
AED m
Profit before income tax Profit before income tax
21,256
21,224
(70)
(70)
-
(70)
9
-
9
-
242
Total equity 21,466
2014 Note
2013 2014
AED m
AED AED m m
3,464
(119)
(13,958) 34
(5,773) (13,958)
(5,773)
Finance costs -Finance net costs - net
8
932 8
494 932
494
Investments inInvestments associates and joint ventures 13 in associates and joint ventures
(10) 26
(10)
Movement in short term bank deposits Movement in short term bank deposits
-
56
-
56
(5)
-
(5)
Share of resultsShare of investments accounted for accounted for of results of investments
Profit for the year
-
-
2,283
2,283
125
2,408
Total comprehensive income
-
65
2,213
2,278
125
2,403
Dividends
-
-
(740)
(740)
(97)
(837)
Transactions with owners
-
-
(740)
(740)
(97)
(837)
22,729
22,762
270
23,032
Interest incomeInterest income
13
(136) 13
(127) (136)
(127)
receivables c
17
5 17
(2) 5
(2)
Provision for employee Provision benefits for employee benefits
7
616 7
510 616
510
the equity method the equity method
Net movementNet on movement derivative financial instruments on derivative financial instruments Employee benefit payments Employee benefit payments
9
(1) 9
(1)
(485)
(442) (485)
(442)
(49)
(112) (49)
(112)
25
-
-
(148)
(148)
-
(148)
Currency translation differences
19
-
(48)
-
(48)
-
(48)
Income tax paid Income tax paid
Cash flow hedges
19
-
182
-
182
-
182
Change in inventories Change in inventories
(142)
(95) (142)
(95)
Other comprehensive income
-
134
(148)
(14)
-
(14)
Change in receivables advance lease rentals lease rentals Change and in receivables and advance
(314)
(521) (314)
(521)
Profit for the year
-
-
3,254
3,254
163
3,417
Change in provisions, deferred credits Changepayables, in provisions, payables, deferred credits
Total comprehensive income
-
134
3,106
3,240
163
3,403
Dividends
-
-
(826)
(826)
(138)
(964)
and revenue and revenue Net cash generated from operating activities Net cash generated from operating activities
Transactions with owners
-
-
(826)
(826)
(138)
(964)
25,009
25,176
295
25,471
2,302 12,649
5,512 2,302 12,814 12,649
13
Net cash usedNet in investing cash usedactivities in investing activities
5,512 12,814
Notes 1 to 39 form partanofintegral these consolidated statements. Notesan1 integral to 39 form part of thesefinancial consolidated financial statements.
c
312
133 13
102 133
102
(4,257)
(15,061) (4,257)
(15,061)
6,382 (2,165)
Aircraft financing costsfinancing costs Aircraft
(790)
(689) (790)
(689)
Other finance charges Other finance charges
(271)
(83) (271)
(83)
(2,652)
(2,068) (2,652)
(2,068)
Dividend paid Dividend paid
(726)
(40) (726)
(40)
Dividend paid Dividend to non-controlling interests paid to non-controlling interests
-
(138)
(97) (138)
(97)
Net cash (used in)cash / generated financing activities (7,107) Net (used in)from / generated from financing activities
1,240 (7,107)
1,240
Net increase /Net (decrease) and cash equivalents 1,285 increasein/ cash (decrease) in cash and cash equivalents
(1,007) 1,285
(1,007)
6,520
7,527 6,520
7,527
(5)
-(5)
7,800 33
6,520 7,800
Cash and cashCash equivalents end of yearat end of year33 and cashatequivalents
4
c
312 308
6,382 -
Repayment of Repayment lease liabilities of lease liabilities
dnata Consolidated Financial Statements
c
308
(2,165) (2,530)
Effects of exchange changes rate changes Effectsrate of exchange
c
(29) (9,993)
(2,530)
Repayment of Repayment bonds and loans of bonds and loans
Cash and cash Cash equivalents at equivalents beginning ofatyear and cash beginning of year
Additional Information
(29) (7) (9,993) 9,294
Financing activities Financing activities Proceeds fromProceeds bonds and loans from bonds and loans
dnata Independent Auditor’s Report
Notes 1 to 39 form an integral part of these consolidated financial statements.
(7) 13 9,294
Dividends fromDividends investments accounted for accounted using from investments for using
Net provision for of impairment trade Netimpairment provision for of trade
Remeasurement of retirement benefit obligations
(634)
(119) (105)
Additions to property, plant and equipment 34 Additions to property, plant and equipment
(70)
801
(105) 12
5,136
56
31 March 2014
439
12
5,136 6,421
65
(768)
439 78
6,421 7
receivables
AED m
78
7
using the equity method using the equity method
2013
Proceeds fromProceeds sale of property, plant and equipment from sale of property, plant and equipment
2,472
Depreciation and amortisation Depreciation and amortisation
-
801
2,472 3,464
Additions to intangible Additionsassets to intangible assets
-
31 March 2013
AED m
Adjustments for: Adjustments for:
Other comprehensive income
19
2013 2014 AED AED m m
Investing activities Investing activities
Loss / (gain) onLoss sale/ of property, plant and equipment (gain) on sale of property, plant and equipment 26
Cash flow hedges
2014 Note AED m
Note
2013
6,520
4
69
Emirates
Emirates
Consolidated Statement of INChanges in Equity CONSOLIDATED STATEMENT OF CHANGES EQUITY for theYEAR year ended 312014 March 2014 FOR THE ENDED 31 MARCH
Emirates
Consolidated Statement of Cash Flows FOR THE YEAR ENDED 31year MARCH 2014 FOR THE ENDED 31 MARCH for theYEAR ended 312014 March 2014 CONSOLIDATED STATEMENT OF CASH FLOWS CONSOLIDATED STATEMENT OF CASH FLOWS
Note
Attributable to Emirates' Owner Note
Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
1 April 2012
Non-
Other
Retained
Capital
reserves
earnings
Total
AED m
AED m
AED m
AED m
801
(833)
Remeasurement of retirement benefit obligations
25
-
-
Currency translation differences
19
-
9
controlling interests AED m
Operating activities Operating activities
AED m
Profit before income tax Profit before income tax
21,256
21,224
(70)
(70)
-
(70)
9
-
9
-
242
Total equity 21,466
2014 Note
2013 2014
AED m
AED AED m m
3,464
(119)
(13,958) 34
(5,773) (13,958)
(5,773)
Finance costs -Finance net costs - net
8
932 8
494 932
494
Investments inInvestments associates and joint ventures 13 in associates and joint ventures
(10) 26
(10)
Movement in short term bank deposits Movement in short term bank deposits
-
56
-
56
(5)
-
(5)
Share of resultsShare of investments accounted for accounted for of results of investments
Profit for the year
-
-
2,283
2,283
125
2,408
Total comprehensive income
-
65
2,213
2,278
125
2,403
Dividends
-
-
(740)
(740)
(97)
(837)
Transactions with owners
-
-
(740)
(740)
(97)
(837)
22,729
22,762
270
23,032
Interest incomeInterest income
13
(136) 13
(127) (136)
(127)
receivables c
17
5 17
(2) 5
(2)
Provision for employee Provision benefits for employee benefits
7
616 7
510 616
510
the equity method the equity method
Net movementNet on movement derivative financial instruments on derivative financial instruments Employee benefit payments Employee benefit payments
9
(1) 9
(1)
(485)
(442) (485)
(442)
(49)
(112) (49)
(112)
25
-
-
(148)
(148)
-
(148)
Currency translation differences
19
-
(48)
-
(48)
-
(48)
Income tax paid Income tax paid
Cash flow hedges
19
-
182
-
182
-
182
Change in inventories Change in inventories
(142)
(95) (142)
(95)
Other comprehensive income
-
134
(148)
(14)
-
(14)
Change in receivables advance lease rentals lease rentals Change and in receivables and advance
(314)
(521) (314)
(521)
Profit for the year
-
-
3,254
3,254
163
3,417
Change in provisions, deferred credits Changepayables, in provisions, payables, deferred credits
Total comprehensive income
-
134
3,106
3,240
163
3,403
Dividends
-
-
(826)
(826)
(138)
(964)
and revenue and revenue Net cash generated from operating activities Net cash generated from operating activities
Transactions with owners
-
-
(826)
(826)
(138)
(964)
25,009
25,176
295
25,471
2,302 12,649
5,512 2,302 12,814 12,649
13
Net cash usedNet in investing cash usedactivities in investing activities
5,512 12,814
Notes 1 to 39 form partanofintegral these consolidated statements. Notesan1 integral to 39 form part of thesefinancial consolidated financial statements.
c
312
133 13
102 133
102
(4,257)
(15,061) (4,257)
(15,061)
6,382 (2,165)
Aircraft financing costsfinancing costs Aircraft
(790)
(689) (790)
(689)
Other finance charges Other finance charges
(271)
(83) (271)
(83)
(2,652)
(2,068) (2,652)
(2,068)
Dividend paid Dividend paid
(726)
(40) (726)
(40)
Dividend paid Dividend to non-controlling interests paid to non-controlling interests
-
(138)
(97) (138)
(97)
Net cash (used in)cash / generated financing activities (7,107) Net (used in)from / generated from financing activities
1,240 (7,107)
1,240
Net increase /Net (decrease) and cash equivalents 1,285 increasein/ cash (decrease) in cash and cash equivalents
(1,007) 1,285
(1,007)
6,520
7,527 6,520
7,527
(5)
-(5)
7,800 33
6,520 7,800
Cash and cashCash equivalents end of yearat end of year33 and cashatequivalents
4
c
312 308
6,382 -
Repayment of Repayment lease liabilities of lease liabilities
dnata Consolidated Financial Statements
c
308
(2,165) (2,530)
Effects of exchange changes rate changes Effectsrate of exchange
c
(29) (9,993)
(2,530)
Repayment of Repayment bonds and loans of bonds and loans
Cash and cash Cash equivalents at equivalents beginning ofatyear and cash beginning of year
Additional Information
(29) (7) (9,993) 9,294
Financing activities Financing activities Proceeds fromProceeds bonds and loans from bonds and loans
dnata Independent Auditor’s Report
Notes 1 to 39 form an integral part of these consolidated financial statements.
(7) 13 9,294
Dividends fromDividends investments accounted for accounted using from investments for using
Net provision for of impairment trade Netimpairment provision for of trade
Remeasurement of retirement benefit obligations
(634)
(119) (105)
Additions to property, plant and equipment 34 Additions to property, plant and equipment
(70)
801
(105) 12
5,136
56
31 March 2014
439
12
5,136 6,421
65
(768)
439 78
6,421 7
receivables
AED m
78
7
using the equity method using the equity method
2013
Proceeds fromProceeds sale of property, plant and equipment from sale of property, plant and equipment
2,472
Depreciation and amortisation Depreciation and amortisation
-
801
2,472 3,464
Additions to intangible Additionsassets to intangible assets
-
31 March 2013
AED m
Adjustments for: Adjustments for:
Other comprehensive income
19
2013 2014 AED AED m m
Investing activities Investing activities
Loss / (gain) onLoss sale/ of property, plant and equipment (gain) on sale of property, plant and equipment 26
Cash flow hedges
2014 Note AED m
Note
2013
6,520
4
69
NotesTOtoTHEthe Consolidated Financial Statements NOTES CONSOLIDATED FINANCIAL STATEMENTS FOR 31 MARCH 2014 2014 for THE theYEAR yearENDED ended 31 March 1. General information
Overview
Emirates
dnata
Emirates comprises Emirates and its subsidiaries. Emirates was incorporated, with limited liability, by an Emiri Decree issued by H. H. Sheikh Maktoum bin Rashid Al-Maktoum on 26 June 1985 and is wholly owned by the Investment Corporation of Dubai, a Government of Dubai entity. Emirates commenced commercial operations on 25 October 1985 and is designated as the International Airline of the UAE. Emirates is incorporated and domiciled in Dubai, UAE. The address of its registered office is Emirates Group Headquarters, PO Box 686, Dubai, UAE. The main activities of Emirates comprise:
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
commercial air transportation which includes passenger, cargo and postal carriage services wholesale and retail of consumer goods in-flight and institutional catering hotel operations
Standards and amendments to published standards that are relevant to Emirates’ operations
Basis of consolidation Effective and adopted in the current year At the date of authorisation of these consolidated financial statements, certain new standards and amendments to the existing standards have been published and are mandatory for the current accounting period. These did not have a material impact on the consolidated financial statements and are set out below: IAS 1 (revised), Presentation of Financial Statements (effective from 1 July 2012) IAS 19 (revised), Employee Benefits (effective from 1 January 2013) IAS 28 (revised), Investments in Associates and Joint Ventures (effective from 1 January 2013) IFRS 10, Consolidated Financial Statements (effective from 1 January 2013) IFRS 11, Joint Arrangements (effective from 1 January 2013) IFRS 12, Disclosure of Interest in Other Entities (effective from 1 January 2013) IFRS 13, Fair value Measurement (effective from 1 January 2013)
2. Summary of significant accounting policies
Not yet effective and have not been early adopted
A summary of the significant accounting policies, which have been applied consistently in the preparation of these consolidated financial statements, is set out below.
At the date of authorisation of these consolidated financial statements, certain new standards and amendments to the existing standards have been published that are mandatory for accounting periods commencing after 1 April 2014 or later periods, but have not been early adopted. Management is currently assessing the following standards and amendments which are likely to have an impact on Emirates’ operations:
Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC). The consolidated financial statements are prepared under the historical cost convention except for those financial assets and financial liabilities that are measured at fair value as stated in the accounting policies below.
2. Summary of significant accounting policies (continued)
IAS 36 (Revised), Impairment of Assets (effective from 1 January 2014) IFRS 9, Financial Instruments (effective from 1 January 2018)
dnata Independent Auditor’s Report
Subsidiaries are those entities (including structured entities) over which Emirates has control. Control is exercised when an entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over that entity. Subsidiaries are consolidated from the date on which control is transferred to Emirates and are de-consolidated from the date that control ceases. Inter-company transactions, balances and unrealised gains and losses arising on transactions between Emirates and subsidiaries are eliminated. The acquisition method of accounting is used to account for the acquisition of subsidiaries. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred and the liabilities incurred to the former owners of the acquiree. Acquisition-related costs are expensed as incurred. Identifiable assets, including intangible assets acquired, liabilities and contingent liabilities incurred or assumed in a business combination, are measured initially at their fair values at the acquisition date. Any non-controlling interest in the acquiree is recognised on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
All material unrealised gains and losses arising on transactions between Emirates and its associates and joint ventures are eliminated to the extent of Emirates’ interest.
Additional Information
5
Revenue Passenger and cargo sales are recognised as revenue when the transportation is provided. Revenue documents (e.g. tickets or airway bills) sold but unused are held in the consolidated statement of financial position under current liabilities as passenger and cargo sales in advance. Unused flight documents are recognised as revenue based on their terms and conditions and historical trends. Revenue from the sale of goods is recognised when risks and rewards of ownership are transferred to the customer and are stated net of discounts and returns. Other revenue is recognised net of discounts when services are rendered. Interest income is recognised on a time proportion basis using the effective interest method. Liquidated damages
Associates are those entities in which Emirates has significant influence but not control, generally accompanying a shareholding between 20% and 50% of the voting rights. Investments in associates are accounted for by applying the equity method and include goodwill (net of accumulated impairment loss, if any) identified on acquisition. Joint ventures are contractual arrangements which establish joint control and where Emirates has rights to the net assets of the arrangement. Investments in joint ventures are accounted for by applying the equity method and include goodwill (net of accumulated impairment loss, if any) identified on acquisition.
dnata Consolidated Financial Statements
When control, significant influence or joint control ceases, the retained interest in the entity is remeasured to fair value as at that date, with the change in the carrying amount recognised in the consolidated income statement. The fair value is the initial carrying amount for the purposes of subsequent accounting of the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the related assets or liabilities have been directly disposed of. This could result in amounts previously recognised in other comprehensive income being reclassified to the consolidated income statement. If the ownership in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to the consolidated income statement.
Accounting policies of subsidiaries, associates and joint ventures have been changed where necessary to ensure consistency with Emirates’ accounting policies.
Income from claims for liquidated damages is recognised in the consolidated income statement when a contractual entitlement exists, amounts can be reliably measured and receipt is virtually certain. When such claims do not relate to compensations for loss of income or towards incremental operating costs, the amounts are taken to the consolidated statement of financial position and recorded as a reduction in the cost of the related asset. Foreign currency translation Emirates’ consolidated financial statements are presented in UAE Dirhams (AED), which is also the parent company’s functional currency. Subsidiaries determine their own functional currency and items included in the financial statements of these companies are measured using that functional currency.
6 70
71
NotesTOtoTHEthe Consolidated Financial Statements NOTES CONSOLIDATED FINANCIAL STATEMENTS FOR 31 MARCH 2014 2014 for THE theYEAR yearENDED ended 31 March 1. General information
Overview
Emirates
dnata
Emirates comprises Emirates and its subsidiaries. Emirates was incorporated, with limited liability, by an Emiri Decree issued by H. H. Sheikh Maktoum bin Rashid Al-Maktoum on 26 June 1985 and is wholly owned by the Investment Corporation of Dubai, a Government of Dubai entity. Emirates commenced commercial operations on 25 October 1985 and is designated as the International Airline of the UAE. Emirates is incorporated and domiciled in Dubai, UAE. The address of its registered office is Emirates Group Headquarters, PO Box 686, Dubai, UAE. The main activities of Emirates comprise:
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
commercial air transportation which includes passenger, cargo and postal carriage services wholesale and retail of consumer goods in-flight and institutional catering hotel operations
Standards and amendments to published standards that are relevant to Emirates’ operations
Basis of consolidation Effective and adopted in the current year At the date of authorisation of these consolidated financial statements, certain new standards and amendments to the existing standards have been published and are mandatory for the current accounting period. These did not have a material impact on the consolidated financial statements and are set out below: IAS 1 (revised), Presentation of Financial Statements (effective from 1 July 2012) IAS 19 (revised), Employee Benefits (effective from 1 January 2013) IAS 28 (revised), Investments in Associates and Joint Ventures (effective from 1 January 2013) IFRS 10, Consolidated Financial Statements (effective from 1 January 2013) IFRS 11, Joint Arrangements (effective from 1 January 2013) IFRS 12, Disclosure of Interest in Other Entities (effective from 1 January 2013) IFRS 13, Fair value Measurement (effective from 1 January 2013)
2. Summary of significant accounting policies
Not yet effective and have not been early adopted
A summary of the significant accounting policies, which have been applied consistently in the preparation of these consolidated financial statements, is set out below.
At the date of authorisation of these consolidated financial statements, certain new standards and amendments to the existing standards have been published that are mandatory for accounting periods commencing after 1 April 2014 or later periods, but have not been early adopted. Management is currently assessing the following standards and amendments which are likely to have an impact on Emirates’ operations:
Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC). The consolidated financial statements are prepared under the historical cost convention except for those financial assets and financial liabilities that are measured at fair value as stated in the accounting policies below.
2. Summary of significant accounting policies (continued)
IAS 36 (Revised), Impairment of Assets (effective from 1 January 2014) IFRS 9, Financial Instruments (effective from 1 January 2018)
dnata Independent Auditor’s Report
Subsidiaries are those entities (including structured entities) over which Emirates has control. Control is exercised when an entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over that entity. Subsidiaries are consolidated from the date on which control is transferred to Emirates and are de-consolidated from the date that control ceases. Inter-company transactions, balances and unrealised gains and losses arising on transactions between Emirates and subsidiaries are eliminated. The acquisition method of accounting is used to account for the acquisition of subsidiaries. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred and the liabilities incurred to the former owners of the acquiree. Acquisition-related costs are expensed as incurred. Identifiable assets, including intangible assets acquired, liabilities and contingent liabilities incurred or assumed in a business combination, are measured initially at their fair values at the acquisition date. Any non-controlling interest in the acquiree is recognised on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
All material unrealised gains and losses arising on transactions between Emirates and its associates and joint ventures are eliminated to the extent of Emirates’ interest.
Additional Information
5
Revenue Passenger and cargo sales are recognised as revenue when the transportation is provided. Revenue documents (e.g. tickets or airway bills) sold but unused are held in the consolidated statement of financial position under current liabilities as passenger and cargo sales in advance. Unused flight documents are recognised as revenue based on their terms and conditions and historical trends. Revenue from the sale of goods is recognised when risks and rewards of ownership are transferred to the customer and are stated net of discounts and returns. Other revenue is recognised net of discounts when services are rendered. Interest income is recognised on a time proportion basis using the effective interest method. Liquidated damages
Associates are those entities in which Emirates has significant influence but not control, generally accompanying a shareholding between 20% and 50% of the voting rights. Investments in associates are accounted for by applying the equity method and include goodwill (net of accumulated impairment loss, if any) identified on acquisition. Joint ventures are contractual arrangements which establish joint control and where Emirates has rights to the net assets of the arrangement. Investments in joint ventures are accounted for by applying the equity method and include goodwill (net of accumulated impairment loss, if any) identified on acquisition.
dnata Consolidated Financial Statements
When control, significant influence or joint control ceases, the retained interest in the entity is remeasured to fair value as at that date, with the change in the carrying amount recognised in the consolidated income statement. The fair value is the initial carrying amount for the purposes of subsequent accounting of the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the related assets or liabilities have been directly disposed of. This could result in amounts previously recognised in other comprehensive income being reclassified to the consolidated income statement. If the ownership in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to the consolidated income statement.
Accounting policies of subsidiaries, associates and joint ventures have been changed where necessary to ensure consistency with Emirates’ accounting policies.
Income from claims for liquidated damages is recognised in the consolidated income statement when a contractual entitlement exists, amounts can be reliably measured and receipt is virtually certain. When such claims do not relate to compensations for loss of income or towards incremental operating costs, the amounts are taken to the consolidated statement of financial position and recorded as a reduction in the cost of the related asset. Foreign currency translation Emirates’ consolidated financial statements are presented in UAE Dirhams (AED), which is also the parent company’s functional currency. Subsidiaries determine their own functional currency and items included in the financial statements of these companies are measured using that functional currency.
6 70
71
2. Summary of significant accounting policies (continued)
Overview
Emirates
dnata
Foreign currency transactions are translated into the functional currency at the exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the end of the reporting period. The resultant foreign exchange gains and losses, other than those on qualifying cash flow hedges deferred in other comprehensive income, are recognised in the consolidated income statement. Income and cash flow statements of subsidiaries are translated into UAE Dirhams at average exchange rates for the year that approximate the cumulative effect of rates prevailing on the transaction dates and their assets and liabilities are translated at the exchange rates ruling at the end of reporting period. The resulting exchange differences are recognised in other comprehensive income.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Also deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill in a business combination. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the end of reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
2. Summary of significant accounting policies (continued)
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost of the assets until such time the assets are substantially ready for their intended use. Where funds are borrowed specifically for the purpose of obtaining a qualifying asset, any investment income earned on temporary surplus funds is deducted from borrowing costs eligible for capitalisation. In the case of general borrowings, a capitalisation rate, which is the weighted average rate of general borrowing costs, is applied to the expenditure on qualifying assets and included in the cost of the asset.
Group
Financial Information
Emirates Financial Commentary
Share of results of investments accounted for using the equity method are translated into UAE Dirhams at average exchange rates for the year. Translation differences relating to investments in subsidiaries, associates, joint ventures and monetary assets and liabilities that form part of a net investment in a foreign operation, are recognised in other comprehensive income. When investments in subsidiaries, associates or joint ventures are disposed of, the translation differences recorded in equity are recognised in the consolidated income statement as part of the gain or loss on disposal.
dnata Financial Commentary
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the exchange rates prevailing at the end of reporting period.
Emirates Independent Auditor’s Report
Income tax
Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation. Cost consists of purchase cost, together with any incidental expenses of acquisition. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow and the cost can be measured reliably. Repairs and maintenance are charged to the consolidated income statement during the period in which they are incurred. Land is not depreciated. Depreciation on other items of property, plant and equipment is calculated using the straight-line method to allocate their cost, less estimated residual values, over the estimated useful lives of the assets or the lease term, if shorter.
The tax expense for the period comprises current and deferred tax. Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
Gains and losses on disposals are determined by comparing proceeds with the carrying amount and are recognised in the consolidated income statement. Borrowing costs
All other borrowing costs are recognised as an expense when incurred.
Gains and losses arising on sale and leaseback transaction resulting in an operating lease and where the sale price is at fair value, are recognised immediately in the consolidated income statement. Where the sale price is below fair value, any gains and losses are immediately recognised in the consolidated income statement, except where the loss is compensated for by future lease payments at below market price, it is deferred and amortised in proportion to the lease payments over the period for which the asset is expected to be used. Where the sale price is above fair value, the excess over fair value is deferred and amortised over the period for which the asset is expected to be used. In the case of profits arising on sale and leaseback transactions resulting in finance leases, the excess of sale proceeds over the carrying amount is deferred and amortised over the lease term. Lease classification is made at the inception of the lease. Lease classification is changed only if, at any time during the lease, the parties to the lease agreement agree to change the provisions of the lease (without renewing it) in a way that it would have been classified differently at inception had the changed terms been in effect at that time.
Manufacturers' credits Emirates receives credits from manufacturers in connection with the acquisition of certain aircraft and engines. Depending on their nature, these credits are either recorded as a reduction to the cost of the related aircraft and engines or reduced from ongoing operating expenses. Where the aircraft are held under operating leases, these credits are deferred and reduced from the operating lease rentals on a straight-line basis over the period of the related lease as deferred credits.
The revised agreement is considered as a new agreement and accounted for prospectively over the remaining term of the lease. Goodwill Goodwill represents the excess of the consideration transferred over the fair value of the share of the net identifiable assets at the date of acquisition.
The estimated useful lives and residual values are: The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where Emirates subsidiaries operate and generate taxable income.
Finance and operating leases
Aircraft – new Aircraft – used Aircraft engines and parts Buildings Other property, plant and equipment
15 years (residual value 10%) 5 - 8 years (residual value 10 - 20%) 5 - 15 years (residual value 0 - 10%) 15 - 40 years 3 - 20 years or over the lease term, if shorter
Major overhaul expenditure is depreciated over the shorter of the period to the next major overhaul, the remaining lease term or the useful life of the asset concerned. The residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
7 72
Capital projects are stated at cost. When the asset is ready for its intended use, it is transferred from capital projects to the appropriate category under property, plant and equipment and depreciated.
Leases, where a significant portion of risks and rewards of ownership are retained by the lessor, are classified as operating leases. Lease rental charges, including advance rentals in respect of operating leases, are charged to the consolidated income statement on a straight-line basis over the period of the lease.
Where property, plant and equipment have been financed by lease agreements under which substantially all of the risks and rewards incidental to ownership are transferred to Emirates, they are classified as finance leases. Finance leases are capitalised at the commencement of the lease at the lower of the present value of the minimum lease payments or the fair value of the leased asset. The corresponding lease obligations are included under liabilities. Lease payments are treated as consisting of capital and interest elements. The interest element is charged to the consolidated income statement over the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Property, plant and equipment acquired under finance leases are depreciated in accordance with Emirates’ policies.
Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate a potential impairment and is carried at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill is allocated to cash generating units or group of cash generating units that are expected to benefit from the business combination in which the goodwill arose. An impairment loss is recognised when the carrying value of the cash generating units or group of cash generating units exceeds its recoverable amount. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
8 73
2. Summary of significant accounting policies (continued)
Overview
Emirates
dnata
Foreign currency transactions are translated into the functional currency at the exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the end of the reporting period. The resultant foreign exchange gains and losses, other than those on qualifying cash flow hedges deferred in other comprehensive income, are recognised in the consolidated income statement. Income and cash flow statements of subsidiaries are translated into UAE Dirhams at average exchange rates for the year that approximate the cumulative effect of rates prevailing on the transaction dates and their assets and liabilities are translated at the exchange rates ruling at the end of reporting period. The resulting exchange differences are recognised in other comprehensive income.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Also deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill in a business combination. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the end of reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
2. Summary of significant accounting policies (continued)
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost of the assets until such time the assets are substantially ready for their intended use. Where funds are borrowed specifically for the purpose of obtaining a qualifying asset, any investment income earned on temporary surplus funds is deducted from borrowing costs eligible for capitalisation. In the case of general borrowings, a capitalisation rate, which is the weighted average rate of general borrowing costs, is applied to the expenditure on qualifying assets and included in the cost of the asset.
Group
Financial Information
Emirates Financial Commentary
Share of results of investments accounted for using the equity method are translated into UAE Dirhams at average exchange rates for the year. Translation differences relating to investments in subsidiaries, associates, joint ventures and monetary assets and liabilities that form part of a net investment in a foreign operation, are recognised in other comprehensive income. When investments in subsidiaries, associates or joint ventures are disposed of, the translation differences recorded in equity are recognised in the consolidated income statement as part of the gain or loss on disposal.
dnata Financial Commentary
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the exchange rates prevailing at the end of reporting period.
Emirates Independent Auditor’s Report
Income tax
Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation. Cost consists of purchase cost, together with any incidental expenses of acquisition. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow and the cost can be measured reliably. Repairs and maintenance are charged to the consolidated income statement during the period in which they are incurred. Land is not depreciated. Depreciation on other items of property, plant and equipment is calculated using the straight-line method to allocate their cost, less estimated residual values, over the estimated useful lives of the assets or the lease term, if shorter.
The tax expense for the period comprises current and deferred tax. Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
Gains and losses on disposals are determined by comparing proceeds with the carrying amount and are recognised in the consolidated income statement. Borrowing costs
All other borrowing costs are recognised as an expense when incurred.
Gains and losses arising on sale and leaseback transaction resulting in an operating lease and where the sale price is at fair value, are recognised immediately in the consolidated income statement. Where the sale price is below fair value, any gains and losses are immediately recognised in the consolidated income statement, except where the loss is compensated for by future lease payments at below market price, it is deferred and amortised in proportion to the lease payments over the period for which the asset is expected to be used. Where the sale price is above fair value, the excess over fair value is deferred and amortised over the period for which the asset is expected to be used. In the case of profits arising on sale and leaseback transactions resulting in finance leases, the excess of sale proceeds over the carrying amount is deferred and amortised over the lease term. Lease classification is made at the inception of the lease. Lease classification is changed only if, at any time during the lease, the parties to the lease agreement agree to change the provisions of the lease (without renewing it) in a way that it would have been classified differently at inception had the changed terms been in effect at that time.
Manufacturers' credits Emirates receives credits from manufacturers in connection with the acquisition of certain aircraft and engines. Depending on their nature, these credits are either recorded as a reduction to the cost of the related aircraft and engines or reduced from ongoing operating expenses. Where the aircraft are held under operating leases, these credits are deferred and reduced from the operating lease rentals on a straight-line basis over the period of the related lease as deferred credits.
The revised agreement is considered as a new agreement and accounted for prospectively over the remaining term of the lease. Goodwill Goodwill represents the excess of the consideration transferred over the fair value of the share of the net identifiable assets at the date of acquisition.
The estimated useful lives and residual values are: The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where Emirates subsidiaries operate and generate taxable income.
Finance and operating leases
Aircraft – new Aircraft – used Aircraft engines and parts Buildings Other property, plant and equipment
15 years (residual value 10%) 5 - 8 years (residual value 10 - 20%) 5 - 15 years (residual value 0 - 10%) 15 - 40 years 3 - 20 years or over the lease term, if shorter
Major overhaul expenditure is depreciated over the shorter of the period to the next major overhaul, the remaining lease term or the useful life of the asset concerned. The residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
7 72
Capital projects are stated at cost. When the asset is ready for its intended use, it is transferred from capital projects to the appropriate category under property, plant and equipment and depreciated.
Leases, where a significant portion of risks and rewards of ownership are retained by the lessor, are classified as operating leases. Lease rental charges, including advance rentals in respect of operating leases, are charged to the consolidated income statement on a straight-line basis over the period of the lease.
Where property, plant and equipment have been financed by lease agreements under which substantially all of the risks and rewards incidental to ownership are transferred to Emirates, they are classified as finance leases. Finance leases are capitalised at the commencement of the lease at the lower of the present value of the minimum lease payments or the fair value of the leased asset. The corresponding lease obligations are included under liabilities. Lease payments are treated as consisting of capital and interest elements. The interest element is charged to the consolidated income statement over the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Property, plant and equipment acquired under finance leases are depreciated in accordance with Emirates’ policies.
Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate a potential impairment and is carried at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill is allocated to cash generating units or group of cash generating units that are expected to benefit from the business combination in which the goodwill arose. An impairment loss is recognised when the carrying value of the cash generating units or group of cash generating units exceeds its recoverable amount. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
8 73
Overview
Emirates
dnata
Group
2. Summary of significant accounting policies (continued)
Derivative financial instruments
2. Summary of significant accounting policies (continued)
Retirement benefit obligations
Other intangible assets
Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Derivatives are designated either as a hedge of the fair value of a recognised asset or liability or of a firm commitment (fair value hedge) or a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge). Fair values are obtained from quoted market prices or dealer quotes for similar instruments, discounted cash flow models and option pricing models as appropriate. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.
When a cash flow hedging instrument expires or is sold, terminated or exercised, or when a hedge no longer meets the criteria for hedge accounting under IAS 39, any cumulative gain or loss existing in equity at that time is retained in equity and is ultimately recognised in the consolidated income statement when the forecasted transaction occurs. If a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the consolidated income statement. The gain or loss on the ineffective portion is recognised in the consolidated income statement.
Emirates operates or participates in various end of service benefit plans, which are classified either as defined contribution or defined benefit plans.
Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognised immediately in the consolidated income statement.
A defined benefit plan is a plan which is not a defined contribution plan. The liability recognised in the consolidated statement of financial position for a defined benefit plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets at that date. The defined benefit obligation is calculated by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting estimated future cash outflows using market yields at the end of the reporting period of high quality corporate bonds that have terms to maturity approximating to the estimated term of the postemployment benefit obligations.
Intangible assets are capitalised at cost only when future economic benefits are probable. Cost includes the purchase price together with any directly attributable expenditure. Intangible assets are amortised on a straight-line basis over their estimated useful lives which are: Service rights Trade names Contractual rights Computer software
15 years 20 years 15 years 5 years
Emirates’ criteria to account for a derivative financial instrument as a hedge include: Inventories formal documentation of the hedging instruments, hedged items, hedging objective, strategy and basis of measuring effectiveness all of which are prepared prior to applying hedge accounting; and documentation showing that the hedge effectiveness is assessed on an ongoing basis and is determined to have been highly effective in offsetting the risk of the hedged item throughout the reporting period.
Impairment of non-financial assets Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
Goodwill is not subject to amortisation and is tested annually for impairment. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets other than goodwill are reviewed at the end of each reporting period for possible reversal of the impairment loss.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges and that are highly effective are recorded in the consolidated income statement, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. This accounting treatment is discontinued when the fair value hedging instrument expires or is sold, terminated or exercised, or the hedge no longer meets the criteria for hedge accounting.
At the end of each reporting period, an assessment is made whether there is any objective evidence of impairment. Where necessary, the carrying amount is written down through the consolidated income statement to the present value of expected future cash flows discounted at the effective interest rate computed at initial recognition.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges and that prove to be highly effective in relation to the hedged risk, are recognised in other comprehensive income. When the forecasted transaction results in the recognition of an asset or of a liability, the gains and losses previously recognised in other comprehensive income are transferred from equity and recognised in profit or loss in the same period during which the asset or liability affects profit or loss. In all other cases, amounts previously recognised in other comprehensive income are transferred to the consolidated income statement in the period during which the forecasted transaction affects the consolidated income statement and are presented in the same line item as the gains and losses from hedged items.
9 74
Trade receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Where there is objective evidence of amounts that are not collectible, a provision is made for the difference between the carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate. Borrowings
Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such amounts are initially recognised at fair value including transaction costs and carried at amortised cost using the effective interest method. The amounts are derecognised when rights to receive cash flows have expired or have been transferred along with substantially all the risks and rewards of ownership.
Inventories are stated at the lower of cost and estimated net realisable value. Cost is determined on the weighted average cost basis with the exception of consumer goods inventory which is determined on a first-in-first-out basis.
A defined contribution plan is a pension scheme under which Emirates pays fixed contributions and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to settle the benefits relating to the employees service in the current and prior periods. Contributions to the pension fund are charged to the consolidated income statement in the period in which they fall due.
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost with any difference between the proceeds (net of transaction costs) and the redemption value recognised in the consolidated income statement over the period of the borrowings using the effective interest method. Provisions Provisions are made when an obligation exists for a future liability in respect of a past event and where the amount of the obligation can be reliably estimated. Provision for maintenance represents the estimate of the cost to meet the contractual return conditions on certain aircraft held under operating leases. The present value of the expected cost is recognised during the lease term considering the existing fleet plan and long-term maintenance schedules.
Actuarial gains and losses arising from changes in actuarial assumptions and experience adjustments are recognised in equity through consolidated statement of comprehensive income in the period in which they arise. Frequent flyer programme Emirates operates a frequent flyer programme that provides a variety of awards to programme members based on a mileage credit for flights on Emirates and other airlines that participate in the programme. Members can also accrue miles by utilising the services of non-airline programme participants. Emirates accounts for award credits as a separately identifiable component of the sales transaction in which they are granted. The consideration in respect of the initial sale is allocated to award credits based on their fair value and is accounted for as a liability (deferred revenue) in the consolidated statement of financial position. The fair value is determined using estimation techniques that take into account the fair value of awards for which miles could be redeemed. Miles accrued through utilising the services of programme partners and paid for by the participating partners are also accounted for as deferred revenue until they are utilised. In these instances, a liability is not recognised for miles that are expected to expire.
10 75
Overview
Emirates
dnata
Group
2. Summary of significant accounting policies (continued)
Derivative financial instruments
2. Summary of significant accounting policies (continued)
Retirement benefit obligations
Other intangible assets
Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Derivatives are designated either as a hedge of the fair value of a recognised asset or liability or of a firm commitment (fair value hedge) or a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge). Fair values are obtained from quoted market prices or dealer quotes for similar instruments, discounted cash flow models and option pricing models as appropriate. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.
When a cash flow hedging instrument expires or is sold, terminated or exercised, or when a hedge no longer meets the criteria for hedge accounting under IAS 39, any cumulative gain or loss existing in equity at that time is retained in equity and is ultimately recognised in the consolidated income statement when the forecasted transaction occurs. If a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the consolidated income statement. The gain or loss on the ineffective portion is recognised in the consolidated income statement.
Emirates operates or participates in various end of service benefit plans, which are classified either as defined contribution or defined benefit plans.
Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognised immediately in the consolidated income statement.
A defined benefit plan is a plan which is not a defined contribution plan. The liability recognised in the consolidated statement of financial position for a defined benefit plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets at that date. The defined benefit obligation is calculated by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting estimated future cash outflows using market yields at the end of the reporting period of high quality corporate bonds that have terms to maturity approximating to the estimated term of the postemployment benefit obligations.
Intangible assets are capitalised at cost only when future economic benefits are probable. Cost includes the purchase price together with any directly attributable expenditure. Intangible assets are amortised on a straight-line basis over their estimated useful lives which are: Service rights Trade names Contractual rights Computer software
15 years 20 years 15 years 5 years
Emirates’ criteria to account for a derivative financial instrument as a hedge include: Inventories formal documentation of the hedging instruments, hedged items, hedging objective, strategy and basis of measuring effectiveness all of which are prepared prior to applying hedge accounting; and documentation showing that the hedge effectiveness is assessed on an ongoing basis and is determined to have been highly effective in offsetting the risk of the hedged item throughout the reporting period.
Impairment of non-financial assets Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
Goodwill is not subject to amortisation and is tested annually for impairment. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets other than goodwill are reviewed at the end of each reporting period for possible reversal of the impairment loss.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges and that are highly effective are recorded in the consolidated income statement, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. This accounting treatment is discontinued when the fair value hedging instrument expires or is sold, terminated or exercised, or the hedge no longer meets the criteria for hedge accounting.
At the end of each reporting period, an assessment is made whether there is any objective evidence of impairment. Where necessary, the carrying amount is written down through the consolidated income statement to the present value of expected future cash flows discounted at the effective interest rate computed at initial recognition.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges and that prove to be highly effective in relation to the hedged risk, are recognised in other comprehensive income. When the forecasted transaction results in the recognition of an asset or of a liability, the gains and losses previously recognised in other comprehensive income are transferred from equity and recognised in profit or loss in the same period during which the asset or liability affects profit or loss. In all other cases, amounts previously recognised in other comprehensive income are transferred to the consolidated income statement in the period during which the forecasted transaction affects the consolidated income statement and are presented in the same line item as the gains and losses from hedged items.
9 74
Trade receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Where there is objective evidence of amounts that are not collectible, a provision is made for the difference between the carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate. Borrowings
Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such amounts are initially recognised at fair value including transaction costs and carried at amortised cost using the effective interest method. The amounts are derecognised when rights to receive cash flows have expired or have been transferred along with substantially all the risks and rewards of ownership.
Inventories are stated at the lower of cost and estimated net realisable value. Cost is determined on the weighted average cost basis with the exception of consumer goods inventory which is determined on a first-in-first-out basis.
A defined contribution plan is a pension scheme under which Emirates pays fixed contributions and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to settle the benefits relating to the employees service in the current and prior periods. Contributions to the pension fund are charged to the consolidated income statement in the period in which they fall due.
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost with any difference between the proceeds (net of transaction costs) and the redemption value recognised in the consolidated income statement over the period of the borrowings using the effective interest method. Provisions Provisions are made when an obligation exists for a future liability in respect of a past event and where the amount of the obligation can be reliably estimated. Provision for maintenance represents the estimate of the cost to meet the contractual return conditions on certain aircraft held under operating leases. The present value of the expected cost is recognised during the lease term considering the existing fleet plan and long-term maintenance schedules.
Actuarial gains and losses arising from changes in actuarial assumptions and experience adjustments are recognised in equity through consolidated statement of comprehensive income in the period in which they arise. Frequent flyer programme Emirates operates a frequent flyer programme that provides a variety of awards to programme members based on a mileage credit for flights on Emirates and other airlines that participate in the programme. Members can also accrue miles by utilising the services of non-airline programme participants. Emirates accounts for award credits as a separately identifiable component of the sales transaction in which they are granted. The consideration in respect of the initial sale is allocated to award credits based on their fair value and is accounted for as a liability (deferred revenue) in the consolidated statement of financial position. The fair value is determined using estimation techniques that take into account the fair value of awards for which miles could be redeemed. Miles accrued through utilising the services of programme partners and paid for by the participating partners are also accounted for as deferred revenue until they are utilised. In these instances, a liability is not recognised for miles that are expected to expire.
10 75
Overview
Emirates
dnata
Group
Financial Information
2. Summary of significant accounting policies (continued)
3. Critical accounting estimates and judgements
3. Critical accounting estimates and judgements (continued)
4. Fair value estimation
Revenue is recognised in the consolidated income statement only when Emirates fulfils its obligations by supplying free or discounted goods or services on redemption of the miles accrued.
Valuation of defined benefit obligations
The levels of fair value hierarchy are defined as follows:
The present value of the defined benefit obligations is determined on actuarial basis using various assumptions that may differ from actual developments in the future. These assumptions include the determination of the discount rate and expected salary increases which are reviewed at each reporting date. Due to the complexities involved in the valuation and its long-term nature, defined benefit obligations are highly sensitive to changes in these assumptions. A sensitivity analysis of changes in defined benefit obligations due to a reasonable change in these assumptions are set out in Note 25.
Level 1:
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
In the preparation of the consolidated financial statements, a number of estimates and associated assumptions have been made relating to the application of accounting policies and reported amounts of assets, liabilities, income and expense. The estimates and associated assumptions are assessed on an ongoing basis and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following discussion addresses the accounting policies that require subjective and complex judgements, often as a result of the need to make estimates.
Derecognition of financial assets and financial liabilities
Depreciation of property, plant and equipment
Financial assets are derecognised only when the contractual rights to the cash flows expire or substantially all the risks and rewards of ownership are transferred along with the contractual rights to receive cash flows. Financial liabilities are derecognised only when they are extinguished i.e. when the obligations specified in the contract are discharged or cancelled or expire.
Management assigns useful lives and residual values to property, plant and equipment based on the intended use of assets and the economic lives of those assets. Subsequent changes in circumstances such as technological advances or prospective utilisation of the assets concerned could result in the actual useful lives or residual values differing from initial estimates. Management has reviewed the residual values and useful lives of major items of property, plant and equipment and determined that no significant adjustments are required.
Trade payables
Cash and cash equivalents Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
Cash and cash equivalents comprise cash and liquid funds with an original maturity of three months or less. Other bank deposits with maturity less than a year are classified as short term bank deposits. Bank overdrafts are shown within current borrowings and lease liabilities in the consolidated statement of financial position. Dividend distribution Dividend distribution to Emirates’ Owner is recognised as a liability in the consolidated financial statements in the period in which the dividends are approved. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker makes strategic decisions and is responsible for allocating resources and assessing performance of the operating segments.
Income tax Income tax liabilities are not provided for when management is of the opinion that exemption from income tax will ultimately be granted by the relevant authorities in the concerned jurisdictions. In making its judgement, management considers the status of discussions with the relevant authorities in different countries, the existence of reciprocal exemptions or of a memorandum of understanding. The resolution of issues is not always within the control of management and is often dependant upon external parties. When, due to a change in circumstances, it is unlikely that a tax exemption will be obtained, the income tax liability is fully provided for on a conservative basis until a resolution is reached or the final tax outcome is determined.
Level 3:
Frequent flyer programme
Derivatives are the only financial instruments which are carried at fair value and fall into level 2 of the fair value hierarchy (Note 35).
Emirates accounts for award credits as a separately identifiable component of the sales transaction in which they are granted. The consideration in respect of the initial sale is allocated to award credits based on their fair value and is accounted as a liability (deferred revenue) in the consolidated statement of financial position.
Derivatives comprise forward exchange contracts and interest rate swaps. The forward exchange contracts have been fair valued using forward exchange rates that are quoted in an active market. Interest rate swaps are fair valued using forward interest rates extracted from observable yield curves.
Estimation techniques are used to determine the fair value of mile credits and reflect the weighted average of a number of factors i.e. fare per sector, flight upgrades and partner rewards. A rolling 12 month historical trend forms the basis of the calculations. Adjustments to the fair value of miles are also made for miles not expected to be redeemed by members and the extent to which the demand for an award cannot be met for the dates requested. A level of judgement is exercised by management due to the diversity of inputs that go into determining the fair value of miles. It is also difficult to present the sensitivity of a change in the value of the assumptions given the complexity of the workings.
Provision for maintenance The measurement of the provision for maintenance return conditions includes assumptions relating to expected costs, escalation rates, discount rates commensurate with the expected obligation maturity and long-term maintenance schedules. An estimate is therefore made at each reporting date to ensure that the provision corresponds to the present value of the expected costs to be borne by Emirates. A significant level of judgement is exercised by management given the long-term nature and diversity of assumptions that go into the determination of the provision. It is also difficult to present the sensitivity of a change in the value of the assumptions given the complexity of the workings.
11 76
Level 2:
Measurement is made by using quoted prices (unadjusted) from active market. Measurement is made by means of valuation methods with parameters derived directly or indirectly from observable market data. Measurement is made by means of valuation methods with parameters not based exclusively on observable market data.
12 77
Overview
Emirates
dnata
Group
Financial Information
2. Summary of significant accounting policies (continued)
3. Critical accounting estimates and judgements
3. Critical accounting estimates and judgements (continued)
4. Fair value estimation
Revenue is recognised in the consolidated income statement only when Emirates fulfils its obligations by supplying free or discounted goods or services on redemption of the miles accrued.
Valuation of defined benefit obligations
The levels of fair value hierarchy are defined as follows:
The present value of the defined benefit obligations is determined on actuarial basis using various assumptions that may differ from actual developments in the future. These assumptions include the determination of the discount rate and expected salary increases which are reviewed at each reporting date. Due to the complexities involved in the valuation and its long-term nature, defined benefit obligations are highly sensitive to changes in these assumptions. A sensitivity analysis of changes in defined benefit obligations due to a reasonable change in these assumptions are set out in Note 25.
Level 1:
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
In the preparation of the consolidated financial statements, a number of estimates and associated assumptions have been made relating to the application of accounting policies and reported amounts of assets, liabilities, income and expense. The estimates and associated assumptions are assessed on an ongoing basis and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following discussion addresses the accounting policies that require subjective and complex judgements, often as a result of the need to make estimates.
Derecognition of financial assets and financial liabilities
Depreciation of property, plant and equipment
Financial assets are derecognised only when the contractual rights to the cash flows expire or substantially all the risks and rewards of ownership are transferred along with the contractual rights to receive cash flows. Financial liabilities are derecognised only when they are extinguished i.e. when the obligations specified in the contract are discharged or cancelled or expire.
Management assigns useful lives and residual values to property, plant and equipment based on the intended use of assets and the economic lives of those assets. Subsequent changes in circumstances such as technological advances or prospective utilisation of the assets concerned could result in the actual useful lives or residual values differing from initial estimates. Management has reviewed the residual values and useful lives of major items of property, plant and equipment and determined that no significant adjustments are required.
Trade payables
Cash and cash equivalents Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
Cash and cash equivalents comprise cash and liquid funds with an original maturity of three months or less. Other bank deposits with maturity less than a year are classified as short term bank deposits. Bank overdrafts are shown within current borrowings and lease liabilities in the consolidated statement of financial position. Dividend distribution Dividend distribution to Emirates’ Owner is recognised as a liability in the consolidated financial statements in the period in which the dividends are approved. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker makes strategic decisions and is responsible for allocating resources and assessing performance of the operating segments.
Income tax Income tax liabilities are not provided for when management is of the opinion that exemption from income tax will ultimately be granted by the relevant authorities in the concerned jurisdictions. In making its judgement, management considers the status of discussions with the relevant authorities in different countries, the existence of reciprocal exemptions or of a memorandum of understanding. The resolution of issues is not always within the control of management and is often dependant upon external parties. When, due to a change in circumstances, it is unlikely that a tax exemption will be obtained, the income tax liability is fully provided for on a conservative basis until a resolution is reached or the final tax outcome is determined.
Level 3:
Frequent flyer programme
Derivatives are the only financial instruments which are carried at fair value and fall into level 2 of the fair value hierarchy (Note 35).
Emirates accounts for award credits as a separately identifiable component of the sales transaction in which they are granted. The consideration in respect of the initial sale is allocated to award credits based on their fair value and is accounted as a liability (deferred revenue) in the consolidated statement of financial position.
Derivatives comprise forward exchange contracts and interest rate swaps. The forward exchange contracts have been fair valued using forward exchange rates that are quoted in an active market. Interest rate swaps are fair valued using forward interest rates extracted from observable yield curves.
Estimation techniques are used to determine the fair value of mile credits and reflect the weighted average of a number of factors i.e. fare per sector, flight upgrades and partner rewards. A rolling 12 month historical trend forms the basis of the calculations. Adjustments to the fair value of miles are also made for miles not expected to be redeemed by members and the extent to which the demand for an award cannot be met for the dates requested. A level of judgement is exercised by management due to the diversity of inputs that go into determining the fair value of miles. It is also difficult to present the sensitivity of a change in the value of the assumptions given the complexity of the workings.
Provision for maintenance The measurement of the provision for maintenance return conditions includes assumptions relating to expected costs, escalation rates, discount rates commensurate with the expected obligation maturity and long-term maintenance schedules. An estimate is therefore made at each reporting date to ensure that the provision corresponds to the present value of the expected costs to be borne by Emirates. A significant level of judgement is exercised by management given the long-term nature and diversity of assumptions that go into the determination of the provision. It is also difficult to present the sensitivity of a change in the value of the assumptions given the complexity of the workings.
11 76
Level 2:
Measurement is made by using quoted prices (unadjusted) from active market. Measurement is made by means of valuation methods with parameters derived directly or indirectly from observable market data. Measurement is made by means of valuation methods with parameters not based exclusively on observable market data.
12 77
5. Revenue
7. Operating costs 7. Operating costs
5. Revenue 2014 AED m
Overview
Emirates
dnata
Group
Services
Services
Passenger
Passenger
Cargo
Cargo
Excess baggage Excess baggage Hotel operations Hotel operations Destination Destination and leisure and leisure Others Others Sale of goodsSale of goods Consumer goods Consumer goods Food and beverage and beverage In-flight catering In-flight catering
Food Financial Information Emirates Financial Commentary
dnata Financial Commentary
2014 2013 AED m m AED
2014
AED m
AED m Jet fuel
Jet fuel
Employee (seeEmployee (a) below)(see (a) below) Aircraft operating Aircraft operating leases (see (b) leases below)(see (b) below)
65,405 57,477 11,263 10,346
57,477
412 388 395 234
388 226
Handling
459
228 226 459 307
307
78,162
78,162 68,978
68,978
In-flight catering and related costs In-flight catering and related costs Overflying Overflying
65,405 11,263 412 395 228
10,346 234
1,313 1,196 625 502
1,196 483
2,555
617 483 2,555 2,181
2,181
80,717
80,717 71,159
71,159
1,313 625 617
8. Finance income 8. Finance and costs income and costs
2013
502
Depreciation and(Notes amortisation (Notes 11 & 12) Depreciation and amortisation 11 & 12) Sales and marketing Sales and marketing Handling
30,685 10,230 6,548 6,421 5,421 4,648 3,529 2,386
Aircraft maintenance Aircraft maintenance 2,146 Office accommodation and IT costs (see (c) below) Office accommodation and IT costs (see (c) below) 1,878 Landing and parking Landing and parking 1,568 Cost of goods Cost sold of goods sold Corporate Corporate overheads (seeoverheads (d) below)(see (d) below)
1,190 1,726
2014 2013 AED m m AED
2014
2013 2014
2013
2014
2013 2014
2013
AED m
AED m
AED AEDm m
AED m
AED m
AED AEDm m
AED m
228
341 228
341
47
68 47
68
30,685 27,855 10,230 9,029
27,855 9,029
Interest incomeInterest on short income term bank on short deposits term bank deposits
6,548 5,916 6,421 5,136
5,916
Related partiesRelated (Note 37) parties (Note 37)
5,421 5,270 4,648 4,073
5,270
Finance costs Finance costs
4,073
3,529 3,159 2,386 2,086 2,146 1,865 1,878 1,649
1,865
1,568 1,335 1,190 1,042
1,335
1,726 1,859 78,376 70,274
1,859
19
65 19
65
406 247
406
Aircraft financing Aircraft costsfinancing costs
(816)
(717) (816)
(717)
3,159
Interest charges Interest on bonds charges and term on bonds loansand term loans
(252)
(252) (96)
(96)
2,086
Other finance costs Other finance costs
(111)
(111) (87)
(87)
(1,179)
(1,179) (900)
(900)
1,649
(b) Aircraft operating charges include (2013: 160 of m) in respect of (b) Aircraft operating lease charges lease include AED Nil (2013:AED AEDNil 160 m) inAED respect leases of freighter aircraft. "wet" leases of"wet" freighter aircraft.
incidental to Emirates' operations. to Emirates' operations.
Current tax expense Current tax expense Deferred tax credit Deferred (Note tax29) credit (Note 29)
-
(4) -
(4)
47
64 47
64
Emirates has secured Emiratestax hasexemptions secured taxbyexemptions virtue of double by virtue taxation of double agreements taxationand agreements and airline reciprocal airline arrangements reciprocal arrangements in most of the in jurisdictions most of theinjurisdictions which it operates. in which it operates. Therefore, the Therefore, income taxtheexpense incomerelates tax expense only torelates certainonly overseas to certain stations overseas wherestations where Emirates is subject Emirates to income is subject tax.toProviding income tax. information Providingoninformation effective tax on rates effective is tax rates is therefore not meaningful. therefore not meaningful.
1,042
Other operating income AED 1,127 (2013: m) from liquidated Other operating income comprises AEDcomprises 1,127 m (2013: AED m 1,098 m) AED from1,098 liquidated damages and other compensation received in connection withNil aircraft, and other compensation received in connection with aircraft, AED (2013:AED Nil (2013:
Emirates Consolidated incidental Financial Statements
The components Theofcomponents income tax expense of income are: tax expense are:
247
6. Other operating income 6. Other operating income
AEDthe 25gain m) being theand gain on sale and leaseback of aircraft, aircraft engines and parts, AED 25 m) being on sale leaseback of aircraft, aircraft engines and parts, income AED 792 (2013: AED ancilliary 831 m) from ancilliary services and activities and income ofand AED 792 mof(2013: AED m 831 m) from services and activities
Finance income Finance income
5,136
70,274 78,376 (a) Employee costs include AED 616 m (2013: AED 510 m) in respect of post(a) Employee costs include AED 616 m (2013: AED 510 m) in respect of postemployment benefits. employment benefits.
Emirates Independent damages Auditor’s Report
9. Income tax 9. expense Income tax expense
2013
(c) Office accommodation and IT non-aircraft costs includeoperating non-aircraft operating (c) Office accommodation and IT costs include lease charges lease charges amounting to AED 647 m (2013: AED 544 m). amounting to AED 647 m (2013: AED 544 m). (d) Corporate overheads include exchange a net foreign of AEDAED 46 m (2013: AED (d) Corporate overheads include a net foreign loss exchange of AED 46loss m (2013: 244 m). 244 m).
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
78
13
13
14
14
79
5. Revenue
7. Operating costs 7. Operating costs
5. Revenue 2014 AED m
Overview
Emirates
dnata
Group
Services
Services
Passenger
Passenger
Cargo
Cargo
Excess baggage Excess baggage Hotel operations Hotel operations Destination Destination and leisure and leisure Others Others Sale of goodsSale of goods Consumer goods Consumer goods Food and beverage and beverage In-flight catering In-flight catering
Food Financial Information Emirates Financial Commentary
dnata Financial Commentary
2014 2013 AED m m AED
2014
AED m
AED m Jet fuel
Jet fuel
Employee (seeEmployee (a) below)(see (a) below) Aircraft operating Aircraft operating leases (see (b) leases below)(see (b) below)
65,405 57,477 11,263 10,346
57,477
412 388 395 234
388 226
Handling
459
228 226 459 307
307
78,162
78,162 68,978
68,978
In-flight catering and related costs In-flight catering and related costs Overflying Overflying
65,405 11,263 412 395 228
10,346 234
1,313 1,196 625 502
1,196 483
2,555
617 483 2,555 2,181
2,181
80,717
80,717 71,159
71,159
1,313 625 617
8. Finance income 8. Finance and costs income and costs
2013
502
Depreciation and(Notes amortisation (Notes 11 & 12) Depreciation and amortisation 11 & 12) Sales and marketing Sales and marketing Handling
30,685 10,230 6,548 6,421 5,421 4,648 3,529 2,386
Aircraft maintenance Aircraft maintenance 2,146 Office accommodation and IT costs (see (c) below) Office accommodation and IT costs (see (c) below) 1,878 Landing and parking Landing and parking 1,568 Cost of goods Cost sold of goods sold Corporate Corporate overheads (seeoverheads (d) below)(see (d) below)
1,190 1,726
2014 2013 AED m m AED
2014
2013 2014
2013
2014
2013 2014
2013
AED m
AED m
AED AEDm m
AED m
AED m
AED AEDm m
AED m
228
341 228
341
47
68 47
68
30,685 27,855 10,230 9,029
27,855 9,029
Interest incomeInterest on short income term bank on short deposits term bank deposits
6,548 5,916 6,421 5,136
5,916
Related partiesRelated (Note 37) parties (Note 37)
5,421 5,270 4,648 4,073
5,270
Finance costs Finance costs
4,073
3,529 3,159 2,386 2,086 2,146 1,865 1,878 1,649
1,865
1,568 1,335 1,190 1,042
1,335
1,726 1,859 78,376 70,274
1,859
19
65 19
65
406 247
406
Aircraft financing Aircraft costsfinancing costs
(816)
(717) (816)
(717)
3,159
Interest charges Interest on bonds charges and term on bonds loansand term loans
(252)
(252) (96)
(96)
2,086
Other finance costs Other finance costs
(111)
(111) (87)
(87)
(1,179)
(1,179) (900)
(900)
1,649
(b) Aircraft operating charges include (2013: 160 of m) in respect of (b) Aircraft operating lease charges lease include AED Nil (2013:AED AEDNil 160 m) inAED respect leases of freighter aircraft. "wet" leases of"wet" freighter aircraft.
incidental to Emirates' operations. to Emirates' operations.
Current tax expense Current tax expense Deferred tax credit Deferred (Note tax29) credit (Note 29)
-
(4) -
(4)
47
64 47
64
Emirates has secured Emiratestax hasexemptions secured taxbyexemptions virtue of double by virtue taxation of double agreements taxationand agreements and airline reciprocal airline arrangements reciprocal arrangements in most of the in jurisdictions most of theinjurisdictions which it operates. in which it operates. Therefore, the Therefore, income taxtheexpense incomerelates tax expense only torelates certainonly overseas to certain stations overseas wherestations where Emirates is subject Emirates to income is subject tax.toProviding income tax. information Providingoninformation effective tax on rates effective is tax rates is therefore not meaningful. therefore not meaningful.
1,042
Other operating income AED 1,127 (2013: m) from liquidated Other operating income comprises AEDcomprises 1,127 m (2013: AED m 1,098 m) AED from1,098 liquidated damages and other compensation received in connection withNil aircraft, and other compensation received in connection with aircraft, AED (2013:AED Nil (2013:
Emirates Consolidated incidental Financial Statements
The components Theofcomponents income tax expense of income are: tax expense are:
247
6. Other operating income 6. Other operating income
AEDthe 25gain m) being theand gain on sale and leaseback of aircraft, aircraft engines and parts, AED 25 m) being on sale leaseback of aircraft, aircraft engines and parts, income AED 792 (2013: AED ancilliary 831 m) from ancilliary services and activities and income ofand AED 792 mof(2013: AED m 831 m) from services and activities
Finance income Finance income
5,136
70,274 78,376 (a) Employee costs include AED 616 m (2013: AED 510 m) in respect of post(a) Employee costs include AED 616 m (2013: AED 510 m) in respect of postemployment benefits. employment benefits.
Emirates Independent damages Auditor’s Report
9. Income tax 9. expense Income tax expense
2013
(c) Office accommodation and IT non-aircraft costs includeoperating non-aircraft operating (c) Office accommodation and IT costs include lease charges lease charges amounting to AED 647 m (2013: AED 544 m). amounting to AED 647 m (2013: AED 544 m). (d) Corporate overheads include exchange a net foreign of AEDAED 46 m (2013: AED (d) Corporate overheads include a net foreign loss exchange of AED 46loss m (2013: 244 m). 244 m).
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
78
13
13
14
14
79
10. Segment 10. information Segment information Emirates' management monitors the monitors operatingthe results of its results business for the units for the Emirates' management operating of units its business purpose of making decisions about resource allocation and performance assessment. purpose of making decisions about resource allocation and performance assessment.
In-flight Airline AED m
The airline business unit,business which provides commercial transportation including The airline unit, which provides air commercial air transportation including passenger and cargo services, is the main reportable segment. In-flight catering is catering is passenger and cargo services, is the main reportable segment. In-flight Overview
Emirates
dnata
Group
another reportable segment which provideswhich in-flight and institutional services. another reportable segment provides in-flight andcatering institutional catering services.
Other segments include wholesale andwholesale retail of consumer food and beverage Other segments include and retail goods, of consumer goods, food and beverage operations and hotel operations. none of these segments meet the quantitative operations and hotelAsoperations. As none of these segments meet the quantitative
thresholds forthresholds determining under IFRS 8,under Operating segments, for reportable determiningsegments reportable segments IFRS 8, Operating segments, these are categorised "all other segments". these areascategorised as "all other segments". The performance airline, in-flight catering and other segments is evaluated on The of performance of airline, in-flight catering and other segmentsbased is evaluated based on net profit ornet lossprofit and or is measured consistently with profit for the year in the loss and is measured consistently with profit for the year in the consolidated financial statements. consolidated financial statements.
Segment revenue is measured a manner in consistent with that in the Segment revenue in is measured a manner consistent withconsolidated that in the consolidated income statement, the exception of exception notional revenues andrevenues costs in and the airline incomewith statement, with the of notional costs in the airline
Emirates Financial Commentary segment
arising from the usage of transportation services e.g. leave passage of staff and of staff and segment arising from the usage of transportation services e.g. leave passage duty travel of duty staff travel and consultants that are eliminated when preparing the preparing consolidated of staff and consultants that are eliminated when the consolidated financial statements. adjustment is adjustment presented as reconciling The breakdown financialThis statements. This is apresented as item. a reconciling item. The breakdown revenue from external from customers by customers nature of business activity is provided in is Note 5. of revenue external by nature of business activity provided in Note 5.
Segment assets includeassets inter-segment loans and receivables, are eliminated oneliminated Emirates Independent Segment include inter-segment loans andwhich receivables, which are Auditor’s Report consolidation. This consolidation adjustment is presented as a reconciling item. consolidation. This consolidation adjustment is presented as a reconciling item.
Emirates Consolidated Financial Statements
Total segmentTotal revenue 78,228 segment revenue Inter-segmentInter-segment revenue revenue Revenue fromRevenue external from external customers
78,228
customers Segment profitSegment for the profit for the year
year Finance income Finance income Finance costs Finance costs
on
credit
credit Depreciation and Depreciation and amortisation amortisation
ReconTotal ciliation AED AEDmm
2,254 78,228 1,637-
2,221 2,254 54 1,637
(295) 2,221 -54
82,408 (295) 1,691-
617 78,228
2,167 617
(295) 2,167
80,717 (295)
Total AED m
1,691 80,717 3,417
252
3,417247 (11)
(1,178)
(1) (1,178)
(11)(1)
11 (11)
(1,179) 11
(1,179)
14-
- 14
(173) (85)
(173)
-(61)
(6,163)
(85) (6,163)
247
(47) -
(47)
(6,421)-
(6,421)
Share of results of of results of Share
investments accounted foraccounted for investments using the equity method using the equity method Segment assets Segment assets
95,104
Investments accounted foraccounted for Investments using the equity method using the equity method Additions to property, Additions to property,
plant and equipment 20,535 plant and equipment assets
105 assets Additions to advance lease Additions to advance lease rentals
rentals
dnata Consolidated Financial Statements
169
In-flight Airline AED m
82,408
289 (11)1
(61)
Total segmentTotal revenue 69,169 segment revenue Inter-segmentInter-segment revenue revenueRevenue from Revenue external from external customers
69,169 customers Segment profitSegment for the profit for the year
year Finance income Finance income
--
1365,257 2,015
136 (772) 5,257
136101,604 (772)
136 101,604
495
495-
495
324 178
324
21,037-
21,037
105
--
--
105-
105
169
--
--
169-
169
1,825 1,814 44 1,331
(274) 1,825 - 44
72,534 (274) 1,375-
Total AED m
2013 2014 AED mm AED
2013 AED m
East Asia and Australasia East Asia and Australasia
23,832
Europe
23,424
20,884 23,832 20,140 23,424
20,884
Europe
Americas Gulf and Middle East Gulf and Middle East
9,178
8,275 9,178 7,117 8,298
8,275
West Asia andWest Indian Ocean Asia and Indian Ocean
8,259
8,031
Africa
7,726
8,031 8,259 6,712 7,726
80,717
71,159 80,717
71,159
Americas 72,534 1,375
71,159 (274)
71,159
244 1,951 5 419
213 244 15
-213 (19)1
2,408-
2,408
(3) (897)
(19)(3)
(99)
-(99)
(4,925)
(75) (4,925)
19 (19)
406 (19) (900) 19
(900)
35-
- 35
(64)-
(64)
(136) (75)
(136)
(5,136)-
(5,136)
-127 (791) 5,068
127-
127
406
Share of results of of results of Share
investments accounted for accounted for investments using the equity method using the equity method Segment assets Segment assets
495-
178 20,535
2014 AED m Revenue from Revenue external customers: from external customers:
(274) 1,781
Finance costs Finance costs (897) Income tax (expense) / Income tax (expense) / credit Depreciation and Depreciation and
1,814 69,169 1,331-
ReconTotal ciliation AED mm AED
1,781 483
419
credit
AllIn-flight other ReconAll other catering segments ciliation Airline catering segments AED mm AED mm AED mm AED AED AED
483 69,169
1,951
amortisation amortisation
-2,015 95,104
Geographical Geographical information information
The segment The information the year ended March 2013 as follows: segmentfor information for the31year ended 31isMarch 2013 is as follows:
289 375 15
Additions to intangible Additions to intangible
dnata Independent Auditor’s Report
AllIn-flight other ReconAll other catering ciliation Airline segments catering segments AED AED AED AEDmm AEDmm AEDmm
375 2,753 5 252
2,753
Income tax (expense) Income /tax (expense) /
Financial Information
dnata Financial Commentary of
10. Segment information 10. Segment(continued) information (continued)
The segment The information the year ended March 2014 as follows: segment for information for the31year ended 31isMarch 2014 is as follows:
88,740
Investments accounted for accounted for Investments using the equity method using the equity method Additions to property, Additions to property,
plant and equipment 12,535 plant and equipment Additions to intangible Additions to intangible assets
118 assets Additions to advance lease Additions to advance lease rentals
rentals
617
- 1,786 88,740 - 70 12,535 -118 617
1275,068 1,786
94,803 (791)
-485
485-
485
65470
-654
13,259-
13,259
- 1
119-
119
617 -
617
- -
- -
7,117 6,712
Revenue fromRevenue inboundfrom and inbound outboundand airline operations the between UAE and the the UAE and the outbound airlinebetween operations overseas pointoverseas are attributed to the geographical in which area the respective overseas point are attributed to the area geographical in which the respective overseas points are located. fromRevenue other segments aresegments reported are based upon based the points Revenue are located. from other reported upon the geographical area in which sales arewhich madesales or services areor rendered. geographical area in are made services are rendered.
The major revenue earning asset is the aircraft is registered UAE. Since The major revenue earning asset fleet, is thewhich aircraft fleet, whichinisthe registered in the UAE. Since the aircraft fleet is deployed flexibly acrossflexibly Emirates' route network, providing the aircraft fleet is deployed across Emirates' route network, providing information oninformation non-currentonassets by geographical areas is not considered meaningful. non-current assets by geographical areas is not considered meaningful. No single external customer contributes 10% or more of Emirates' revenues. No single external customer contributes 10% or more of Emirates' revenues.
94,803
485-
1-
Africa
8,298
20,140
Additional Information
80
15
15
16
16
81
10. Segment 10. information Segment information Emirates' management monitors the monitors operatingthe results of its results business for the units for the Emirates' management operating of units its business purpose of making decisions about resource allocation and performance assessment. purpose of making decisions about resource allocation and performance assessment.
In-flight Airline AED m
The airline business unit,business which provides commercial transportation including The airline unit, which provides air commercial air transportation including passenger and cargo services, is the main reportable segment. In-flight catering is catering is passenger and cargo services, is the main reportable segment. In-flight Overview
Emirates
dnata
Group
another reportable segment which provideswhich in-flight and institutional services. another reportable segment provides in-flight andcatering institutional catering services.
Other segments include wholesale andwholesale retail of consumer food and beverage Other segments include and retail goods, of consumer goods, food and beverage operations and hotel operations. none of these segments meet the quantitative operations and hotelAsoperations. As none of these segments meet the quantitative
thresholds forthresholds determining under IFRS 8,under Operating segments, for reportable determiningsegments reportable segments IFRS 8, Operating segments, these are categorised "all other segments". these areascategorised as "all other segments". The performance airline, in-flight catering and other segments is evaluated on The of performance of airline, in-flight catering and other segmentsbased is evaluated based on net profit ornet lossprofit and or is measured consistently with profit for the year in the loss and is measured consistently with profit for the year in the consolidated financial statements. consolidated financial statements.
Segment revenue is measured a manner in consistent with that in the Segment revenue in is measured a manner consistent withconsolidated that in the consolidated income statement, the exception of exception notional revenues andrevenues costs in and the airline incomewith statement, with the of notional costs in the airline
Emirates Financial Commentary segment
arising from the usage of transportation services e.g. leave passage of staff and of staff and segment arising from the usage of transportation services e.g. leave passage duty travel of duty staff travel and consultants that are eliminated when preparing the preparing consolidated of staff and consultants that are eliminated when the consolidated financial statements. adjustment is adjustment presented as reconciling The breakdown financialThis statements. This is apresented as item. a reconciling item. The breakdown revenue from external from customers by customers nature of business activity is provided in is Note 5. of revenue external by nature of business activity provided in Note 5.
Segment assets includeassets inter-segment loans and receivables, are eliminated oneliminated Emirates Independent Segment include inter-segment loans andwhich receivables, which are Auditor’s Report consolidation. This consolidation adjustment is presented as a reconciling item. consolidation. This consolidation adjustment is presented as a reconciling item.
Emirates Consolidated Financial Statements
Total segmentTotal revenue 78,228 segment revenue Inter-segmentInter-segment revenue revenue Revenue fromRevenue external from external customers
78,228
customers Segment profitSegment for the profit for the year
year Finance income Finance income Finance costs Finance costs
on
credit
credit Depreciation and Depreciation and amortisation amortisation
ReconTotal ciliation AED AEDmm
2,254 78,228 1,637-
2,221 2,254 54 1,637
(295) 2,221 -54
82,408 (295) 1,691-
617 78,228
2,167 617
(295) 2,167
80,717 (295)
Total AED m
1,691 80,717 3,417
252
3,417247 (11)
(1,178)
(1) (1,178)
(11)(1)
11 (11)
(1,179) 11
(1,179)
14-
- 14
(173) (85)
(173)
-(61)
(6,163)
(85) (6,163)
247
(47) -
(47)
(6,421)-
(6,421)
Share of results of of results of Share
investments accounted foraccounted for investments using the equity method using the equity method Segment assets Segment assets
95,104
Investments accounted foraccounted for Investments using the equity method using the equity method Additions to property, Additions to property,
plant and equipment 20,535 plant and equipment assets
105 assets Additions to advance lease Additions to advance lease rentals
rentals
dnata Consolidated Financial Statements
169
In-flight Airline AED m
82,408
289 (11)1
(61)
Total segmentTotal revenue 69,169 segment revenue Inter-segmentInter-segment revenue revenueRevenue from Revenue external from external customers
69,169 customers Segment profitSegment for the profit for the year
year Finance income Finance income
--
1365,257 2,015
136 (772) 5,257
136101,604 (772)
136 101,604
495
495-
495
324 178
324
21,037-
21,037
105
--
--
105-
105
169
--
--
169-
169
1,825 1,814 44 1,331
(274) 1,825 - 44
72,534 (274) 1,375-
Total AED m
2013 2014 AED mm AED
2013 AED m
East Asia and Australasia East Asia and Australasia
23,832
Europe
23,424
20,884 23,832 20,140 23,424
20,884
Europe
Americas Gulf and Middle East Gulf and Middle East
9,178
8,275 9,178 7,117 8,298
8,275
West Asia andWest Indian Ocean Asia and Indian Ocean
8,259
8,031
Africa
7,726
8,031 8,259 6,712 7,726
80,717
71,159 80,717
71,159
Americas 72,534 1,375
71,159 (274)
71,159
244 1,951 5 419
213 244 15
-213 (19)1
2,408-
2,408
(3) (897)
(19)(3)
(99)
-(99)
(4,925)
(75) (4,925)
19 (19)
406 (19) (900) 19
(900)
35-
- 35
(64)-
(64)
(136) (75)
(136)
(5,136)-
(5,136)
-127 (791) 5,068
127-
127
406
Share of results of of results of Share
investments accounted for accounted for investments using the equity method using the equity method Segment assets Segment assets
495-
178 20,535
2014 AED m Revenue from Revenue external customers: from external customers:
(274) 1,781
Finance costs Finance costs (897) Income tax (expense) / Income tax (expense) / credit Depreciation and Depreciation and
1,814 69,169 1,331-
ReconTotal ciliation AED mm AED
1,781 483
419
credit
AllIn-flight other ReconAll other catering segments ciliation Airline catering segments AED mm AED mm AED mm AED AED AED
483 69,169
1,951
amortisation amortisation
-2,015 95,104
Geographical Geographical information information
The segment The information the year ended March 2013 as follows: segmentfor information for the31year ended 31isMarch 2013 is as follows:
289 375 15
Additions to intangible Additions to intangible
dnata Independent Auditor’s Report
AllIn-flight other ReconAll other catering ciliation Airline segments catering segments AED AED AED AEDmm AEDmm AEDmm
375 2,753 5 252
2,753
Income tax (expense) Income /tax (expense) /
Financial Information
dnata Financial Commentary of
10. Segment information 10. Segment(continued) information (continued)
The segment The information the year ended March 2014 as follows: segment for information for the31year ended 31isMarch 2014 is as follows:
88,740
Investments accounted for accounted for Investments using the equity method using the equity method Additions to property, Additions to property,
plant and equipment 12,535 plant and equipment Additions to intangible Additions to intangible assets
118 assets Additions to advance lease Additions to advance lease rentals
rentals
617
- 1,786 88,740 - 70 12,535 -118 617
1275,068 1,786
94,803 (791)
-485
485-
485
65470
-654
13,259-
13,259
- 1
119-
119
617 -
617
- -
- -
7,117 6,712
Revenue fromRevenue inboundfrom and inbound outboundand airline operations the between UAE and the the UAE and the outbound airlinebetween operations overseas pointoverseas are attributed to the geographical in which area the respective overseas point are attributed to the area geographical in which the respective overseas points are located. fromRevenue other segments aresegments reported are based upon based the points Revenue are located. from other reported upon the geographical area in which sales arewhich madesales or services areor rendered. geographical area in are made services are rendered.
The major revenue earning asset is the aircraft is registered UAE. Since The major revenue earning asset fleet, is thewhich aircraft fleet, whichinisthe registered in the UAE. Since the aircraft fleet is deployed flexibly acrossflexibly Emirates' route network, providing the aircraft fleet is deployed across Emirates' route network, providing information oninformation non-currentonassets by geographical areas is not considered meaningful. non-current assets by geographical areas is not considered meaningful. No single external customer contributes 10% or more of Emirates' revenues. No single external customer contributes 10% or more of Emirates' revenues.
94,803
485-
1-
Africa
8,298
20,140
Additional Information
80
15
15
16
16
81
11. Property, plant and equipment Aircraft
Overview
Emirates
dnata
Group
11. Property, plant and equipment (continued)
Other Land
Other
property,
Aircraft
Additions Transfer from capital projects Disposals / write off Currency translation differences 31 March 2013
engines
and
plant and
Capital
and parts
buildings
equipment
projects
Total
engines
and
plant and
Capital
Aircraft
and parts
buildings
equipment
projects
Total
AED m
AED m
AED m
AED m
AED m
AED m
AED m
AED m
AED m
AED m
AED m
AED m
32,589
3,868
7,435
9,810
9,044
62,746
41,694
4,518
9,320
11,621
7,042
74,195
254
157
2,377
10,471
13,259
21,037
9,135
886
1,726
733
(12,480)
(30)
(490)
-
-
Cost -
-
(1,300)
-
(1,820)
Emirates Financial Commentary
dnata Financial Commentary
Disposals / write off
7
10
7,042
74,195
31 March 2014
13,548
-
414
11
2,398
18,214
169
325
435
(15,697)
(60)
(19)
(1,662)
(56)
(11)
(1)
12,781
9,558
1 April 2013
7,515
1,242
2,081
6,318
-
5,046
Charge for the year
3,012
320
395
2,610
-
6,337
(1,438)
Disposals / write off
(27)
(19)
(1,591)
-
(1,637)
1 April 2012
5,304
1,106
1,707
5,431
-
Charge for the year
2,241
251
374
2,180
-
Disposals / write off
(30)
(115)
-
(1,293)
-
6,318
-
17,156
-
(1,741)
9,581
11,621
-
-
5,041
9,320
Currency translation differences
14,768
56,462
4,518
(68) 93,423
Depreciation
7,515
1,242
2,081
Net book amount 31 March 2013
Additions Transfer from capital projects
1
41,694
31 March 2013
1 April 2013
2
Depreciation Financial Information
property,
Aircraft Cost 1 April 2012
Land
Currency translation differences 31 March 2014
34,179
3,276
7,239
5,303
7,042
57,039
(9)
(6)
-
(15)
10,527
-
1,535
-
2,448
7,331
-
21,841
45,935
3,506
7,133
5,450
Net book amount 31 March 2014
Emirates Independent Auditor’s Report
-
17,156
9,558
71,582
The net book amount of property, plant and equipment includes AED 38,543 m (2013: AED 32,593 m) in respect of aircraft held under finance leases.
Emirates Consolidated Financial Statements
The net book amount of aircraft includes an amount of AED 960 m (2013: AED 1,042 m) in respect of assets provided as security against term loans.
dnata Independent Auditor’s Report
Land of AED 396 m (2013: AED 396 m) is carried at cost and is not depreciated. The net book amount of land and buildings includes assets amounting to AED 156 m (2013: AED 155 m) purchased under a deferred payment scheme. The legal titles will be transferred upon settlement of the obligations.
dnata Consolidated Financial Statements
Property, plant and equipment includes capitalised interest amounting to AED 232 m (2013: AED 218 m). The interest on general borrowings were capitalised using a weighted average capitalisation rate of 4.8% (2013: 4.3%).
Additional Information
Capital projects include pre-delivery payments of AED 5,979 m (2013: AED 5,137 m) in respect of aircraft (Note 31) due for delivery between 2014 and 2025.
17 82
18 83
11. Property, plant and equipment Aircraft
Overview
Emirates
dnata
Group
11. Property, plant and equipment (continued)
Other Land
Other
property,
Aircraft
Additions Transfer from capital projects Disposals / write off Currency translation differences 31 March 2013
engines
and
plant and
Capital
and parts
buildings
equipment
projects
Total
engines
and
plant and
Capital
Aircraft
and parts
buildings
equipment
projects
Total
AED m
AED m
AED m
AED m
AED m
AED m
AED m
AED m
AED m
AED m
AED m
AED m
32,589
3,868
7,435
9,810
9,044
62,746
41,694
4,518
9,320
11,621
7,042
74,195
254
157
2,377
10,471
13,259
21,037
9,135
886
1,726
733
(12,480)
(30)
(490)
-
-
Cost -
-
(1,300)
-
(1,820)
Emirates Financial Commentary
dnata Financial Commentary
Disposals / write off
7
10
7,042
74,195
31 March 2014
13,548
-
414
11
2,398
18,214
169
325
435
(15,697)
(60)
(19)
(1,662)
(56)
(11)
(1)
12,781
9,558
1 April 2013
7,515
1,242
2,081
6,318
-
5,046
Charge for the year
3,012
320
395
2,610
-
6,337
(1,438)
Disposals / write off
(27)
(19)
(1,591)
-
(1,637)
1 April 2012
5,304
1,106
1,707
5,431
-
Charge for the year
2,241
251
374
2,180
-
Disposals / write off
(30)
(115)
-
(1,293)
-
6,318
-
17,156
-
(1,741)
9,581
11,621
-
-
5,041
9,320
Currency translation differences
14,768
56,462
4,518
(68) 93,423
Depreciation
7,515
1,242
2,081
Net book amount 31 March 2013
Additions Transfer from capital projects
1
41,694
31 March 2013
1 April 2013
2
Depreciation Financial Information
property,
Aircraft Cost 1 April 2012
Land
Currency translation differences 31 March 2014
34,179
3,276
7,239
5,303
7,042
57,039
(9)
(6)
-
(15)
10,527
-
1,535
-
2,448
7,331
-
21,841
45,935
3,506
7,133
5,450
Net book amount 31 March 2014
Emirates Independent Auditor’s Report
-
17,156
9,558
71,582
The net book amount of property, plant and equipment includes AED 38,543 m (2013: AED 32,593 m) in respect of aircraft held under finance leases.
Emirates Consolidated Financial Statements
The net book amount of aircraft includes an amount of AED 960 m (2013: AED 1,042 m) in respect of assets provided as security against term loans.
dnata Independent Auditor’s Report
Land of AED 396 m (2013: AED 396 m) is carried at cost and is not depreciated. The net book amount of land and buildings includes assets amounting to AED 156 m (2013: AED 155 m) purchased under a deferred payment scheme. The legal titles will be transferred upon settlement of the obligations.
dnata Consolidated Financial Statements
Property, plant and equipment includes capitalised interest amounting to AED 232 m (2013: AED 218 m). The interest on general borrowings were capitalised using a weighted average capitalisation rate of 4.8% (2013: 4.3%).
Additional Information
Capital projects include pre-delivery payments of AED 5,979 m (2013: AED 5,137 m) in respect of aircraft (Note 31) due for delivery between 2014 and 2025.
17 82
18 83
12. Intangible assets
Service
Trade Contractual
Computer
12. Intangible assets (continued)
Goodwill
rights
names
rights
software
Total
AED m
AED m
AED m
AED m
AED m
AED m
Cost Overview
Emirates
dnata
Group
1 April 2012
Computer
rights
names
rights
software
Total
AED m
AED m
AED m
AED m
AED m
AED m
564
162
19
28
718
1,491
Cost 564
162
19
27
621
1,393
1 April 2013
Additions
-
-
-
-
119
119
Additions
-
-
-
-
105
105
-
-
-
-
(22)
(22)
Disposals / write off
-
-
-
-
(14)
(14)
Currency translation differences
-
-
-
1
-
1
Currency translation differences
-
-
-
(4)
(1)
(5)
564
162
19
564
162
19
24
808
1,577 581
31 March 2013
28
718
1,491
Amortisation and impairment 1 April 2012
7
76
3
6
399
491
Amortisation for the year
-
11
1
2
76
90
7
87
4
8
475
581
Net book value 31 March 2013
31 March 2014 Amortisation and impairment
557
75
15
Emirates Financial Commentary
20
243
910
1 April 2013
7
87
4
8
475
Amortisation for the year
-
11
1
1
71
84
Disposals / write off
-
-
-
-
(14)
(14)
Currency translation differences
-
-
-
(1)
(1)
(2)
31 March 2014
7
98
5
8
531
649
557
64
14
16
277
928
Net book value 31 March 2014
Computer software includes an amount of AED 100 m (2013: AED 88 m) in respect of projects under implementation.
dnata Financial Commentary
For the purpose of testing goodwill impairment, the recoverable amounts for cash generating units have been determined on the basis of value-in-use calculations using cash flow forecasts approved by management covering a three year period. Cash flows beyond the three
Emirates Independent Auditor’s Report
year period have been extrapolated using the terminal growth rates stated below. The key assumptions used in the value-in-use calculations include a risk adjusted pre-tax discount rate, gross margins consistent with historical trends and growth rates based on management's expectations for market development. The growth rate does not exceed the long term average growth rate for the markets
Emirates Consolidated Financial Statements
in which the cash generating units operate. The goodwill allocated to the cash generating unit or group of cash generating units and the key assumptions used in the value-in-use calculations are as follows: Cash generating unit
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
19 84
Service
Disposals / write off
31 March 2013 Financial Information
Trade Contractual
Goodwill
Location Reportable segment
Goodwill 2014
2013
AED m
AED m
Discount
Gross
Terminal
rate
margin
growth
%
%
%
Consumer goods
UAE
Others
159
159
12
25
4
In-flight catering
UAE
In-flight catering
369
369
12
38
4
Food and beverage
UAE
Others
25
25
12
20
4
Food and beverage
Australia
Others
4
4
12
20
4
557
557
20 85
12. Intangible assets
Service
Trade Contractual
Computer
12. Intangible assets (continued)
Goodwill
rights
names
rights
software
Total
AED m
AED m
AED m
AED m
AED m
AED m
Cost Overview
Emirates
dnata
Group
1 April 2012
Computer
rights
names
rights
software
Total
AED m
AED m
AED m
AED m
AED m
AED m
564
162
19
28
718
1,491
Cost 564
162
19
27
621
1,393
1 April 2013
Additions
-
-
-
-
119
119
Additions
-
-
-
-
105
105
-
-
-
-
(22)
(22)
Disposals / write off
-
-
-
-
(14)
(14)
Currency translation differences
-
-
-
1
-
1
Currency translation differences
-
-
-
(4)
(1)
(5)
564
162
19
564
162
19
24
808
1,577 581
31 March 2013
28
718
1,491
Amortisation and impairment 1 April 2012
7
76
3
6
399
491
Amortisation for the year
-
11
1
2
76
90
7
87
4
8
475
581
Net book value 31 March 2013
31 March 2014 Amortisation and impairment
557
75
15
Emirates Financial Commentary
20
243
910
1 April 2013
7
87
4
8
475
Amortisation for the year
-
11
1
1
71
84
Disposals / write off
-
-
-
-
(14)
(14)
Currency translation differences
-
-
-
(1)
(1)
(2)
31 March 2014
7
98
5
8
531
649
557
64
14
16
277
928
Net book value 31 March 2014
Computer software includes an amount of AED 100 m (2013: AED 88 m) in respect of projects under implementation.
dnata Financial Commentary
For the purpose of testing goodwill impairment, the recoverable amounts for cash generating units have been determined on the basis of value-in-use calculations using cash flow forecasts approved by management covering a three year period. Cash flows beyond the three
Emirates Independent Auditor’s Report
year period have been extrapolated using the terminal growth rates stated below. The key assumptions used in the value-in-use calculations include a risk adjusted pre-tax discount rate, gross margins consistent with historical trends and growth rates based on management's expectations for market development. The growth rate does not exceed the long term average growth rate for the markets
Emirates Consolidated Financial Statements
in which the cash generating units operate. The goodwill allocated to the cash generating unit or group of cash generating units and the key assumptions used in the value-in-use calculations are as follows: Cash generating unit
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
19 84
Service
Disposals / write off
31 March 2013 Financial Information
Trade Contractual
Goodwill
Location Reportable segment
Goodwill 2014
2013
AED m
AED m
Discount
Gross
Terminal
rate
margin
growth
%
%
%
Consumer goods
UAE
Others
159
159
12
25
4
In-flight catering
UAE
In-flight catering
369
369
12
38
4
Food and beverage
UAE
Others
25
25
12
20
4
Food and beverage
Australia
Others
4
4
12
20
4
557
557
20 85
13. Investments in subsidiaries, associates and joint ventures
Country of incorporation Percentage of
and principal
equity owned
Principal activities
13. Investments 13.in Investments subsidiaries, inassociates subsidiaries, andassociates joint ventures and joint (continued) ventures (continued)
set out below: set out below: Movement ofMovement investments ofaccounted investments foraccounted using the equity for using method the equity method
operations
Principal subsidiaries Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
Balance brought Balance forward brought forward
Wholesale and retail of consumer Maritime & Mercantile International L.L.C.
68.7
goods
UAE
Investments during Investments the yearduring the year
Maritime & Mercantile International Holding L.L.C.
100.0
Holding company
UAE
Share of resultsShare of results
Emirates Leisure Retail Holding L.L.C.
100.0
Holding company
UAE
Dividends
Emirates Leisure Retail L.L.C.
68.7
Food and beverage operations
UAE
Currency translation Currency differences translation differences
Emirates Leisure Retail (Oman) L.L.C.
70.0
Food and beverage operations
Oman
Emirates Leisure Retail (Singapore) Pte Ltd.
100.0
Food and beverage operations
Singapore
Emirates Leisure Retail (Australia) Pty Ltd.
100.0
Food and beverage operations
Australia
Emirates Hotel L.L.C.
100.0
Hotel operations
UAE
Emirates Hotels (Australia) Pty Ltd.
100.0
Hotel operations
Australia
Emirates Flight Catering Company L.L.C.
90.0
In-flight and institutional catering
UAE
None of the subsidiaries have non-controlling interests that are material to Emirates.
Aggregate financial Aggregate information financialofinformation joint ventures, of joint that ventures, are not material that aretonot Emirates, materialis to Emirates, is
Dividends
Balance carried Balance forward carried forward
2014
2013 2014
2013
AED m
AED AED m m
AED m
485
430 485
430
7
297
29
136
127 136
127
(133)
(102) (133)
(102)
495
-1
1
485 495
485
Share of resultsShare of joint of results ventures of joint ventures
out below: 2014
2013 2014
2013
AED AED m m
AED m
81
78 81
78
Share of totalShare comprehensive of total comprehensive income of associates income of associates 81
78 81
78
Aggregate carrying Aggregate valuecarrying of investments value ofin investments associates in associates 94
99 94
99
Share of resultsShare of associates of results of associates
Principal joint ventures
2013 AED m
55
49 55
49
49 55
49
386 401
386
Aggregate carrying Aggregate valuecarrying of investments value ofin investments joint in joint ventures
ventures
401
14. Advance lease 14. Advance rentals lease rentals
Balance brought Balance forward brought forward AED m
2013 2014 AED AED m m
Share of totalShare comprehensive of total comprehensive income of joint income ventures of joint ventures 55
Aggregate financial Aggregate information financial ofinformation associates, of thatassociates, are not material that aretonot Emirates, materialis to setEmirates, is set out below:
2014 AED m
Additions during Additions the yearduring the year
2014
2013 2014
2013
AED m
AED AED m m
AED m
964
474 964
474
169
617 169
617
(163)
(127) (163)
(127)
Balance carried Balance forward carried forward 970 Advance lease Advance rentals will lease be rentals chargedwill to be thecharged consolidated to the consolidated
964 970
964
Charge for theCharge year for the year
income statement income as follows: statement as follows: Within one year Within (Note one 17)year (Note 17)
158
157 158
157
UAE
Total over oneTotal yearover one year
812
807 812
807
Emirates-CAE Flight Training L.L.C.
50.0
Flight simulator training
UAE
Premier Inn Hotels L.L.C.
51.0
Hotel operations
CAE Flight Training (India) Private Ltd.
50.0
Flight simulator training
India
Advance leaseAdvance rentals are leasenon-refundable rentals are non-refundable in the event of in the event relatedoflease the related being lease being
CAE Middle East Holdings Limited
50.0
Flight simulator training Wholesale and retail of consumer
UAE
terminated prior terminated to its expiry. prior to its expiry.
Independent Wine and Spirit (Thailand) Company Limited
49.0
goods
Thailand
Advance leaseAdvance rentals include lease rentals AED 440 include m (2013: AED 440 311 m m)(2013: paid to 311 a company m) paid tounder a company under common control. common control.
Premier Inn Hotels L.L.C. and Independent Wine and Spirit (Thailand) Company Limited are subject to joint control and, therefore, these investments are accounted for as joint ventures.
dnata Consolidated Financial Statements
Additional Information
21 86
22
22
87
13. Investments in subsidiaries, associates and joint ventures
Country of incorporation Percentage of
and principal
equity owned
Principal activities
13. Investments 13.in Investments subsidiaries, inassociates subsidiaries, andassociates joint ventures and joint (continued) ventures (continued)
set out below: set out below: Movement ofMovement investments ofaccounted investments foraccounted using the equity for using method the equity method
operations
Principal subsidiaries Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
Balance brought Balance forward brought forward
Wholesale and retail of consumer Maritime & Mercantile International L.L.C.
68.7
goods
UAE
Investments during Investments the yearduring the year
Maritime & Mercantile International Holding L.L.C.
100.0
Holding company
UAE
Share of resultsShare of results
Emirates Leisure Retail Holding L.L.C.
100.0
Holding company
UAE
Dividends
Emirates Leisure Retail L.L.C.
68.7
Food and beverage operations
UAE
Currency translation Currency differences translation differences
Emirates Leisure Retail (Oman) L.L.C.
70.0
Food and beverage operations
Oman
Emirates Leisure Retail (Singapore) Pte Ltd.
100.0
Food and beverage operations
Singapore
Emirates Leisure Retail (Australia) Pty Ltd.
100.0
Food and beverage operations
Australia
Emirates Hotel L.L.C.
100.0
Hotel operations
UAE
Emirates Hotels (Australia) Pty Ltd.
100.0
Hotel operations
Australia
Emirates Flight Catering Company L.L.C.
90.0
In-flight and institutional catering
UAE
None of the subsidiaries have non-controlling interests that are material to Emirates.
Aggregate financial Aggregate information financialofinformation joint ventures, of joint that ventures, are not material that aretonot Emirates, materialis to Emirates, is
Dividends
Balance carried Balance forward carried forward
2014
2013 2014
2013
AED m
AED AED m m
AED m
485
430 485
430
7
297
29
136
127 136
127
(133)
(102) (133)
(102)
495
-1
1
485 495
485
Share of resultsShare of joint of results ventures of joint ventures
out below: 2014
2013 2014
2013
AED AED m m
AED m
81
78 81
78
Share of totalShare comprehensive of total comprehensive income of associates income of associates 81
78 81
78
Aggregate carrying Aggregate valuecarrying of investments value ofin investments associates in associates 94
99 94
99
Share of resultsShare of associates of results of associates
Principal joint ventures
2013 AED m
55
49 55
49
49 55
49
386 401
386
Aggregate carrying Aggregate valuecarrying of investments value ofin investments joint in joint ventures
ventures
401
14. Advance lease 14. Advance rentals lease rentals
Balance brought Balance forward brought forward AED m
2013 2014 AED AED m m
Share of totalShare comprehensive of total comprehensive income of joint income ventures of joint ventures 55
Aggregate financial Aggregate information financial ofinformation associates, of thatassociates, are not material that aretonot Emirates, materialis to setEmirates, is set out below:
2014 AED m
Additions during Additions the yearduring the year
2014
2013 2014
2013
AED m
AED AED m m
AED m
964
474 964
474
169
617 169
617
(163)
(127) (163)
(127)
Balance carried Balance forward carried forward 970 Advance lease Advance rentals will lease be rentals chargedwill to be thecharged consolidated to the consolidated
964 970
964
Charge for theCharge year for the year
income statement income as follows: statement as follows: Within one year Within (Note one 17)year (Note 17)
158
157 158
157
UAE
Total over oneTotal yearover one year
812
807 812
807
Emirates-CAE Flight Training L.L.C.
50.0
Flight simulator training
UAE
Premier Inn Hotels L.L.C.
51.0
Hotel operations
CAE Flight Training (India) Private Ltd.
50.0
Flight simulator training
India
Advance leaseAdvance rentals are leasenon-refundable rentals are non-refundable in the event of in the event relatedoflease the related being lease being
CAE Middle East Holdings Limited
50.0
Flight simulator training Wholesale and retail of consumer
UAE
terminated prior terminated to its expiry. prior to its expiry.
Independent Wine and Spirit (Thailand) Company Limited
49.0
goods
Thailand
Advance leaseAdvance rentals include lease rentals AED 440 include m (2013: AED 440 311 m m)(2013: paid to 311 a company m) paid tounder a company under common control. common control.
Premier Inn Hotels L.L.C. and Independent Wine and Spirit (Thailand) Company Limited are subject to joint control and, therefore, these investments are accounted for as joint ventures.
dnata Consolidated Financial Statements
Additional Information
21 86
22
22
87
15. Loans and15. other Loans receivables and other receivables
Related partiesRelated (Note 37) parties (Note 37)
2014
2014 2013
2013
2014
2014 2013
2013
AED m
AED m
AED m
AED m
AED m
AED m
161
161 349
349
Engineering Engineering
649
649 604
604
64
64 62
62
In-flight consumables In-flight consumables
587
587 554
554
225
225 411
411
Consumer goods Consumer goods
331
331 262
262
Other receivables Other receivables Overview
Prepayments Prepayments Emirates
17. Trade and17. other Trade receivables and other (continued) receivables (continued)
16. Inventories 16. Inventories
203
203 97
97
428
428 508
508
Others
Others
139
139 144
144
1,706
1,706 1,564
1,564
The amounts (excluding The amounts prepayments) (excluding prepayments) are receivableare as receivable as dnata
follows:
follows:
Between 2 andBetween 5 years 2 and 5 years Group
After 5 years After 5 years
221
221 401
401
4
10 4
10
225 Loans and other Loans receivables and other(excluding receivables prepayments) (excluding prepayments) are are
225 411
411
Emirates Financial Commentary US
Dollars
Others dnata Financial Commentary
US Dollars Others
69 65
65
136
136 318
318
20
20 28
28
AED AED m m
AED m
118
135 118
135
43
51 43
51
Unused amounts Unused reversed amounts reversed
(38)
(53) (38)
(53)
Amounts written Amounts off as uncollectible written off as uncollectible
(20)
(11) (20)
(11)
-
(4) -
(4)
118 103
118
Charge for theCharge year for the year
The other classes Theof other tradeclasses and other of trade receivables and other doreceivables not containdo impaired not contain assets. impaired assets.
Prepayments Prepayments
2014
2014 2013
2013
AED m
AED m
AED m
5,344
5,344 5,005
5,005
775
1,239 775
1,239
1,729
1,729 1,224
1,224
Advance leaseAdvance rentals (Note lease 14) rentals (Note 14)
158
158 157
157
Operating lease Operating and other lease deposits and other deposits
806
806 814
814
225 m (2013: AED 225 m 411 (2013: m). Fair AEDvalue 411 m). is determined Fair value isbydetermined discountingbyprojected discounting cashprojected flows cash flows
Other receivables Other receivables Less: Receivables Less:over Receivables one year over (Noteone 15)year (Note 15)
of loans and other of loans receivables and other falls receivables into level falls 2 of into the fair levelvalue 2 of hierarchy. the fair value hierarchy.
AED m Balance brought Balance forward brought forward
17. Trade and17. other Trade receivables and other receivables
Related partiesRelated (Note 37) parties (Note 37)
based on credit based spreads on credit applicable spreads at the applicable end of at each thereporting end of each period. reporting The fair period. value The fair value
2013
Balance carried Balance forward carried forward
Trade receivables Trade - net receivables of provision - net of provision
the interest usingrate the yield interest curve rateforyield the curve remaining for the term remaining to maturity termand to maturity currenciesand currencies
2013 2014
are not expected are to notbeexpected consumed to be within consumed twelve months within twelve after the months reporting after the period. reporting period.
The fair value The of loans fair value and other of loans receivables and other (excluding receivables prepayments) (excluding prepayments) amounts to AED amounts to AED
Emirates Independent using Auditor’s Report
2014
Currency translation Currency differences translation differences
denominated denominated in the following in currencies: the following currencies: 69
Movements inMovements the provision infor theimpairment provision for of impairment trade receivables of trade arereceivables as follows: are as follows:
In-flight consumables In-flight consumables include AED 269 include m (2013: AED 269 AEDm256 (2013: m) relating AED 256tom) items relating which to items which
Financial Information
UAE Dirhams UAE Dirhams
Ageing of receivables Ageing of that receivables are past due thatbut arenot past impaired due butisnot as impaired follows: is as follows:
702
702 813
813
9,514
9,514 9,252
9,252
(428) 9,086
Emirates Consolidated Financial Statements
(428) (508) 9,086 8,744
103
Below 3 months Below 3 months 3-6 months
3-6 months
Above 6 months Above 6 months
2014
2013 2014
2013
AED m
AED AED m m
AED m
287
196 287
196
18
29 18
29
6
1506
150
311
375 311
375
The maximumThe exposure maximum to credit exposure risk of to trade creditand risk other of trade receivables and other at receivables the reporting at the reporting date is the carrying date isvalue the carrying of each class valueofofreceivables. each class of receivables.
(508) 8,744
The maximumThe exposure maximum to credit exposure risk at tothe credit reporting risk at the datereporting is the carrying date isvalue the carrying of the value of the loans and other loans receivables. and other At receivables. the end ofAtthe thereporting end of the period, reporting loans period, and other loans and other
dnata Independent receivables Auditor’s Report
The impairment Thecharge impairment on trade charge receivables on traderecognised receivablesinrecognised the consolidated in the income consolidated income
were receivables neither past weredue neither nor impaired. past due nor impaired.
statement during statement the year during mainly therelates year mainly to ticketing relatesagents to ticketing who are agents in unexpected who are in unexpected difficult economic difficult situations economic andsituations are unable and to are meet unable their to obligations meet theirunder obligations the IATA under the IATA agency programme. agency This programme. charge isThis included chargein isoperating included costs. in operating Amounts costs. charged Amounts to charged to
dnata Consolidated Financial Statements
the provision account the provision are written account offare when written thereoff is when no expectation there is noofexpectation further recovery. of further recovery.
Additional Information
88
23
23
24
24
89
15. Loans and15. other Loans receivables and other receivables
Related partiesRelated (Note 37) parties (Note 37)
2014
2014 2013
2013
2014
2014 2013
2013
AED m
AED m
AED m
AED m
AED m
AED m
161
161 349
349
Engineering Engineering
649
649 604
604
64
64 62
62
In-flight consumables In-flight consumables
587
587 554
554
225
225 411
411
Consumer goods Consumer goods
331
331 262
262
Other receivables Other receivables Overview
Prepayments Prepayments Emirates
17. Trade and17. other Trade receivables and other (continued) receivables (continued)
16. Inventories 16. Inventories
203
203 97
97
428
428 508
508
Others
Others
139
139 144
144
1,706
1,706 1,564
1,564
The amounts (excluding The amounts prepayments) (excluding prepayments) are receivableare as receivable as dnata
follows:
follows:
Between 2 andBetween 5 years 2 and 5 years Group
After 5 years After 5 years
221
221 401
401
4
10 4
10
225 Loans and other Loans receivables and other(excluding receivables prepayments) (excluding prepayments) are are
225 411
411
Emirates Financial Commentary US
Dollars
Others dnata Financial Commentary
US Dollars Others
69 65
65
136
136 318
318
20
20 28
28
AED AED m m
AED m
118
135 118
135
43
51 43
51
Unused amounts Unused reversed amounts reversed
(38)
(53) (38)
(53)
Amounts written Amounts off as uncollectible written off as uncollectible
(20)
(11) (20)
(11)
-
(4) -
(4)
118 103
118
Charge for theCharge year for the year
The other classes Theof other tradeclasses and other of trade receivables and other doreceivables not containdo impaired not contain assets. impaired assets.
Prepayments Prepayments
2014
2014 2013
2013
AED m
AED m
AED m
5,344
5,344 5,005
5,005
775
1,239 775
1,239
1,729
1,729 1,224
1,224
Advance leaseAdvance rentals (Note lease 14) rentals (Note 14)
158
158 157
157
Operating lease Operating and other lease deposits and other deposits
806
806 814
814
225 m (2013: AED 225 m 411 (2013: m). Fair AEDvalue 411 m). is determined Fair value isbydetermined discountingbyprojected discounting cashprojected flows cash flows
Other receivables Other receivables Less: Receivables Less:over Receivables one year over (Noteone 15)year (Note 15)
of loans and other of loans receivables and other falls receivables into level falls 2 of into the fair levelvalue 2 of hierarchy. the fair value hierarchy.
AED m Balance brought Balance forward brought forward
17. Trade and17. other Trade receivables and other receivables
Related partiesRelated (Note 37) parties (Note 37)
based on credit based spreads on credit applicable spreads at the applicable end of at each thereporting end of each period. reporting The fair period. value The fair value
2013
Balance carried Balance forward carried forward
Trade receivables Trade - net receivables of provision - net of provision
the interest usingrate the yield interest curve rateforyield the curve remaining for the term remaining to maturity termand to maturity currenciesand currencies
2013 2014
are not expected are to notbeexpected consumed to be within consumed twelve months within twelve after the months reporting after the period. reporting period.
The fair value The of loans fair value and other of loans receivables and other (excluding receivables prepayments) (excluding prepayments) amounts to AED amounts to AED
Emirates Independent using Auditor’s Report
2014
Currency translation Currency differences translation differences
denominated denominated in the following in currencies: the following currencies: 69
Movements inMovements the provision infor theimpairment provision for of impairment trade receivables of trade arereceivables as follows: are as follows:
In-flight consumables In-flight consumables include AED 269 include m (2013: AED 269 AEDm256 (2013: m) relating AED 256tom) items relating which to items which
Financial Information
UAE Dirhams UAE Dirhams
Ageing of receivables Ageing of that receivables are past due thatbut arenot past impaired due butisnot as impaired follows: is as follows:
702
702 813
813
9,514
9,514 9,252
9,252
(428) 9,086
Emirates Consolidated Financial Statements
(428) (508) 9,086 8,744
103
Below 3 months Below 3 months 3-6 months
3-6 months
Above 6 months Above 6 months
2014
2013 2014
2013
AED m
AED AED m m
AED m
287
196 287
196
18
29 18
29
6
1506
150
311
375 311
375
The maximumThe exposure maximum to credit exposure risk of to trade creditand risk other of trade receivables and other at receivables the reporting at the reporting date is the carrying date isvalue the carrying of each class valueofofreceivables. each class of receivables.
(508) 8,744
The maximumThe exposure maximum to credit exposure risk at tothe credit reporting risk at the datereporting is the carrying date isvalue the carrying of the value of the loans and other loans receivables. and other At receivables. the end ofAtthe thereporting end of the period, reporting loans period, and other loans and other
dnata Independent receivables Auditor’s Report
The impairment Thecharge impairment on trade charge receivables on traderecognised receivablesinrecognised the consolidated in the income consolidated income
were receivables neither past weredue neither nor impaired. past due nor impaired.
statement during statement the year during mainly therelates year mainly to ticketing relatesagents to ticketing who are agents in unexpected who are in unexpected difficult economic difficult situations economic andsituations are unable and to are meet unable their to obligations meet theirunder obligations the IATA under the IATA agency programme. agency This programme. charge isThis included chargein isoperating included costs. in operating Amounts costs. charged Amounts to charged to
dnata Consolidated Financial Statements
the provision account the provision are written account offare when written thereoff is when no expectation there is noofexpectation further recovery. of further recovery.
Additional Information
88
23
23
24
24
89
20. Borrowings 20.and Borrowings lease liabilities and lease liabilities
18. Capital Capital represents the permanent capital of Emirates.
Emirates
1 April 2012 Currency translation differences Transferred to the consolidated income statement 31 March 2013 Currency translation differences
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
reserve
Total
AED m
AED m
AED m
(920)
87
(833)
9
9
(138)
-
(138)
194
-
194
(864)
96
(768)
-
(48)
(48)
Loss on fair value of cash flow hedges
(97)
-
(97)
Transferred to the consolidated income statement
279
-
279
(682)
48
(634)
31 March 2014
2014 AED m Revenue Finance costs
dnata Independent Auditor’s Report
Term loans (Note Term 22) loans (Note 22) Lease liabilitiesLease (Noteliabilities 23) (Note 23) Current
2013
2014
2013 2014
2013
AED m
AED m
AED AED m m
AED m
9,479
9,954 9,479
9,954
473
2,371 473
2,371
672
764 672
764
6,524
6,394 6,524
6,394
Bonds (Note 21) Bonds (Note 21)
2013
Lease liabilitiesLease (Noteliabilities 23) (Note 23)
(45)
22
(9)
(11)
(225)
(205)
(279)
(194)
24,765
After 5 years After 5 years
2,955
3,560 2,955
3,560
35,483
Total over one Total yearover (Note one 20) year (Note 20)
9,479
9,954 9,479
9,954
473
2,371 473
2,371
92
151 92
151
3,359
2,516 3,359
2,516
437
444 437
444
7
47
4
3,931
5,042 3,931
5,042
42,431
40,525 42,431
40,525
US Dollars
Singapore Dollars Singapore Dollars Others
Bonds are denominated Bonds are in denominated the following in currencies: the following currencies: Fixed interestFixed rate bonds interest rate bonds Singapore Dollars Singapore Dollars US Dollars
US Dollars
9,560
10,101 9,560
10,101
9,997
10,545 9,997
10,545
1,837 -
1,837
Floating interest Floating rate bonds interest rate bonds
following currencies: following currencies: 1,477
3,487 1,477
3,487
40,514
36,592 40,514
36,592
437
444 437
444
3
23
2
UAE Dirhams UAE Dirhams
9,997
Less: Transaction Less: costs Transaction costs
1,837 -
1,837
12,382 9,997
12,382
(45)
(57) (45)
(57)
9,952
12,325 9,952
12,325
rate per interest annum rate onper lease annum liabilities on lease was liabilities 2.8% (2013: was2.9%), 2.8% term (2013: 2.9%), term The effective interest The effective loans was 3.7%loans (2013: was3.3%) 3.7%and (2013: on bonds 3.3%) and was on 4.5% bonds (2013: was 3.8%). 4.5% (2013: 3.8%). 21. Bonds
Contractual repricing Contractual dates repricing for the dates floating forinterest the floating rate bonds interest arerate setbonds at six are month set at six month
21. Bonds
Balance brought Balance forward brought forward Repayments during Repayments the year during the year Currency translation Currency differences translation differences Balance carried Balance forward carried forward
Additional Information
24,765 28,349 35,483 38,500
Borrowings and Borrowings lease liabilities and lease are denominated liabilities are in denominated the in the
Additions during Additions the year during the year dnata Consolidated Financial Statements
28,349
Bank overdrafts Bank (Note overdrafts 33) (Note 33)
Others
Within one year Within (Note one 20) year (Note 20) Between 2 andBetween 5 years 2 and 5 years
38,500
Term loans (Note Term 22) loans (Note 22)
US Dollars AED m
Bonds are repayable Bonds are as follows: repayable as follows:
Current
UAE Dirhams UAE Dirhams
The amounts transferred to the consolidated income statement have been (debited)/credited to the following line items:
Operating costs Emirates Consolidated Financial Statements
hedge reserve
-
Loss on fair value of cash flow hedges
Financial Information
Bonds (Note 21) Bonds (Note 21)
Cash flow Translation
Overview
Group
2013 2014 AED AED m m
Non-current Non-current
19. Other reserves
dnata
2014 AED m
Less: Transaction Less: costs Transaction costs
intervals. 2014
2013 2014
2013
AED m
AED AED m m
AED m
12,382
12,382 7,968
7,968
6,428 -
6,428
(2,378)
(2,020) (2,378)
(2,020)
(7)
(7) 6
6
9,997
12,382 9,997
12,382
(45)
(57) (45)
(57)
9,952
12,325 9,952
12,325
-
intervals.
25 90
26
26
91
20. Borrowings 20.and Borrowings lease liabilities and lease liabilities
18. Capital Capital represents the permanent capital of Emirates.
Emirates
1 April 2012 Currency translation differences Transferred to the consolidated income statement 31 March 2013 Currency translation differences
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
reserve
Total
AED m
AED m
AED m
(920)
87
(833)
9
9
(138)
-
(138)
194
-
194
(864)
96
(768)
-
(48)
(48)
Loss on fair value of cash flow hedges
(97)
-
(97)
Transferred to the consolidated income statement
279
-
279
(682)
48
(634)
31 March 2014
2014 AED m Revenue Finance costs
dnata Independent Auditor’s Report
Term loans (Note Term 22) loans (Note 22) Lease liabilitiesLease (Noteliabilities 23) (Note 23) Current
2013
2014
2013 2014
2013
AED m
AED m
AED AED m m
AED m
9,479
9,954 9,479
9,954
473
2,371 473
2,371
672
764 672
764
6,524
6,394 6,524
6,394
Bonds (Note 21) Bonds (Note 21)
2013
Lease liabilitiesLease (Noteliabilities 23) (Note 23)
(45)
22
(9)
(11)
(225)
(205)
(279)
(194)
24,765
After 5 years After 5 years
2,955
3,560 2,955
3,560
35,483
Total over one Total yearover (Note one 20) year (Note 20)
9,479
9,954 9,479
9,954
473
2,371 473
2,371
92
151 92
151
3,359
2,516 3,359
2,516
437
444 437
444
7
47
4
3,931
5,042 3,931
5,042
42,431
40,525 42,431
40,525
US Dollars
Singapore Dollars Singapore Dollars Others
Bonds are denominated Bonds are in denominated the following in currencies: the following currencies: Fixed interestFixed rate bonds interest rate bonds Singapore Dollars Singapore Dollars US Dollars
US Dollars
9,560
10,101 9,560
10,101
9,997
10,545 9,997
10,545
1,837 -
1,837
Floating interest Floating rate bonds interest rate bonds
following currencies: following currencies: 1,477
3,487 1,477
3,487
40,514
36,592 40,514
36,592
437
444 437
444
3
23
2
UAE Dirhams UAE Dirhams
9,997
Less: Transaction Less: costs Transaction costs
1,837 -
1,837
12,382 9,997
12,382
(45)
(57) (45)
(57)
9,952
12,325 9,952
12,325
rate per interest annum rate onper lease annum liabilities on lease was liabilities 2.8% (2013: was2.9%), 2.8% term (2013: 2.9%), term The effective interest The effective loans was 3.7%loans (2013: was3.3%) 3.7%and (2013: on bonds 3.3%) and was on 4.5% bonds (2013: was 3.8%). 4.5% (2013: 3.8%). 21. Bonds
Contractual repricing Contractual dates repricing for the dates floating forinterest the floating rate bonds interest arerate setbonds at six are month set at six month
21. Bonds
Balance brought Balance forward brought forward Repayments during Repayments the year during the year Currency translation Currency differences translation differences Balance carried Balance forward carried forward
Additional Information
24,765 28,349 35,483 38,500
Borrowings and Borrowings lease liabilities and lease are denominated liabilities are in denominated the in the
Additions during Additions the year during the year dnata Consolidated Financial Statements
28,349
Bank overdrafts Bank (Note overdrafts 33) (Note 33)
Others
Within one year Within (Note one 20) year (Note 20) Between 2 andBetween 5 years 2 and 5 years
38,500
Term loans (Note Term 22) loans (Note 22)
US Dollars AED m
Bonds are repayable Bonds are as follows: repayable as follows:
Current
UAE Dirhams UAE Dirhams
The amounts transferred to the consolidated income statement have been (debited)/credited to the following line items:
Operating costs Emirates Consolidated Financial Statements
hedge reserve
-
Loss on fair value of cash flow hedges
Financial Information
Bonds (Note 21) Bonds (Note 21)
Cash flow Translation
Overview
Group
2013 2014 AED AED m m
Non-current Non-current
19. Other reserves
dnata
2014 AED m
Less: Transaction Less: costs Transaction costs
intervals. 2014
2013 2014
2013
AED m
AED AED m m
AED m
12,382
12,382 7,968
7,968
6,428 -
6,428
(2,378)
(2,020) (2,378)
(2,020)
(7)
(7) 6
6
9,997
12,382 9,997
12,382
(45)
(57) (45)
(57)
9,952
12,325 9,952
12,325
-
intervals.
25 90
26
26
91
21. Bonds (continued) 21. Bonds (continued)
23. Lease liabilities (continued) 23. Lease liabilities (continued) 2014 AED m
Overview
2013 2014 AED AED m m
2013
2014
AED m
AED m
The fair valuesThe of the as follows: fairbonds valuesare of the bonds are as follows:
Loans are denominated the following Loans are in denominated in currencies: the following currencies:
Fixed interestFixed rate bonds interest rate bonds
UAE Dirhams UAE Dirhams
Singapore Dollars Singapore Dollars US Dollars
US Dollars
Emirates
440 9,626
455 440
455
10,198 9,626
10,198
10,653 10,066
10,653
-
1,831 -
1,831
-
1,831 -
1,831
12,484 10,066
12,484
10,066 Floating interest rate bonds Floating interest rate bonds
dnata
UAE Dirhams UAE Dirhams
Group
10,066
The fair value The of the fixed interest based rates on listed prices fallsprices and falls fairbonds value with of the bonds with rates fixed is interest is based onand listed into level 1 of the fair value hierarchy. The fair value of the other bonds is determined Financial Information into level 1 of the fair value hierarchy. The fair value of the other bonds is determined
US Dollars
US Dollars
43
106 43
106
The of present value ofliabilities finance lease The present value finance lease are liabilities are denominated in the following currencies: denominated in the following currencies:
721
809 721
809
US Dollars
curve for the remaining term to maturities currenciesand adjusted for credit spread. curve for the remaining term and to maturities currencies adjusted for credit spread. The fair value of the term loans falls into level 2 of the fair value hierarchy. The fair value of the term loans falls into level 2 of the fair value hierarchy.
Commentary
Finance leasesFinance leases
22. Term loans 22. Term loans
AED m
AED m
1,070 925
Within one year Within one year
4,239
925
3,274 4,239
3,274
1,070
16,245
(152)
(145) (152)
Between 2 andBetween 5 years 2 and 5 years
13,275 16,245
13,275
(145)
17,511
925 773
After 5 years After 5 years
15,591 17,511
15,591
925
37,995
(10) (9)
32,140 37,995
32,140
(10)
(6,287)
764
915 764
Future interestFuture interest
(4,859) (6,287)
(4,859)
915
Present valuePresent of finance lease liabilities value of finance lease liabilities
31,708
27,281 31,708
27,281
92
151 92
151
405
412 405
412
After 5 years After 5 years
267
352 267
352
Total over one yearover (Note 20) Total one year (Note 20)
672
764 672
764
Emirates Consolidated Balance Financial Statements
carried forward Balance carried forward
Less: Transaction costs Less: Transaction costs
dnata Independent Auditor’s ReportLoans
773 (9)
are repayable as follows: Loans are repayable as follows:
Within one year (Note 20) Within one year (Note 20) dnata Consolidated Between Financial Statements
92
2013
AED m brought forward Balance brought forward
Repayments during the year Repayments during the year
Additional Information
2013 2014 AED AED m m
2013 2014 AED AED m m
Emirates Independent Auditor’s ReportBalance
2 andBetween 5 years 2 and 5 years
Gross lease liabilities: Gross lease liabilities:
The present value finance lease is repayable The of present value of liabilities finance lease liabilities is repayable as follows:
as follows:
Within one year (Note 20) Within one year (Note 20)
3,359
2,516 3,359
2,516
Between 2 andBetween 5 years 2 and 5 years
12,940
10,716 12,940
10,716
After 5 years After 5 years
15,409
14,049 15,409
14,049
Total over one yearover (Note 20) Total one year (Note 20)
28,349
24,765 28,349
24,765
27
27
2013 AED m
30,274
30,274 25,737
25,737
1,434
1,434 1,544
1,544
nine out of and onetwenty hundred and twenty nine nine out of and onetwenty hundred and twenty nine out of one hundred nine (2013: nine out(2013: of one hundred eight) these aircraft under these leases. eight) aircraft under leases. In addition, Emirates hasfive) fourBoeing (2013: aircraft five) Boeing aircraft In addition, Emirates has four (2013: contracted oncontracted operating on operating leases for delivery between April 2014 and March 2016. leases for delivery between April 2014 and March 2016. 24. Provisions24. Provisions
The lease liabilities the related aircraft and aircraft engines. The lease liabilities are secured onare thesecured related on aircraft and aircraft engines.
AED m
2014 2013 AED m m AED
Retirement benefit obligations (Note 25) Retirement benefit obligations (Note 25)
1,048
1,048 769
Provision for (Note maintenance (Note 26) Provision for maintenance 26)
1,595
1,595 1,161
1,161
2,643
2,643 1,930
1,930
2014
Thelease fair value of lease liabilities amounts 31,413 (2013: The fair value of liabilities amounts to AED 31,413to m AED (2013: AED m 26,738 m).AED The26,738 m). The fair value isbydetermined discounting cashthe flows usingrate the interest rate fair value is determined discountingbyprojected cashprojected flows using interest for the remaining term and to maturities currencies adjusted for credit yield curve foryield the curve remaining term to maturities currenciesand adjusted for credit spread. The fair liabilities value of lease liabilities intofair level 2 ofhierarchy. the fair value hierarchy. spread. The fair value of lease falls into level falls 2 of the value
AED m
2014 2013 AED m m AED
AED m
45,978
45,978 44,983
44,983
2014
AED m 2013
US Dollars
UAE Dirhams UAE Dirhams
2014 2013 AED m m AED
2013 AED m 769
Operating leases Operating leases
2014 2014
2014 AED m
The fair value The of the amounts to AED 752 mto(2013: AED m 903 m). The fairterm valueloans of the term loans amounts AED 752 (2013: AEDfair 903 m). The fair value is determined by discounting projected cash flows using the interest rate value is determined by discounting projected cash flows using theyield interest rate yield
23. Lease liabilities 23. Lease liabilities
dnata Financial Commentary
2013 AED m
Contractual repricing dates are setdates at three to six Term loans Term loans Contractual repricing are set at month three tointervals. six month intervals. amounting to amounting AED 730 m to (2013: AED 814 m) are secured on aircraft. AED 730 m (2013: AED 814 m) are secured on aircraft.
by discounting cash flows using interest yield curve thecurve for the by projected discounting projected cash the flows using rate the interest rate for yield remaining term to maturities and currencies adjusted for credit spread. The fair value remaining term to maturities and currencies adjusted for credit spread. The fair value Emirates Financial of these bondsoffalls into level falls 2 of into the fair value these bonds level 2 of hierarchy. the fair value hierarchy.
2013 2014 AED AED m m
Emirates is entitled to extend leasesperiod for a further Emirates is entitled to extend certain aircraftcertain leases aircraft for a further of one period to six of one to six years endlease of the initial Further, lease period. Further, Emirates is entitled to purchase years at the end of at thethe initial period. Emirates is entitled to purchase
2013
Future payments Future minimum leaseminimum paymentslease are as follows: are as follows: Aircraft fleet Aircraft fleet Others
Others
Within one year Within one year
2,288
2,288 2,054
2,054
48,266
48,266 47,037
47,037
8,652
8,652 6,696
6,696
Between 2 andBetween 5 years 2 and 5 years
23,685
23,685 23,247
23,247
After 5 years After 5 years
15,929
15,929 17,094
17,094
48,266
48,266 47,037
47,037
theaircraft event of the aircraft leases being terminated prior topenalties their expiry, In the event ofInthe leases being terminated prior to their expiry, are penalties are payable. Hadbeen these leases been at 31the March 2014,would the penalties payable. Had these leases cancelled at 31cancelled March 2014, penalties have would have been AED been AED Nil (2013: AEDNil 280(2013: m). AED 280 m).
28
28
93
21. Bonds (continued) 21. Bonds (continued)
23. Lease liabilities (continued) 23. Lease liabilities (continued) 2014 AED m
Overview
2013 2014 AED AED m m
2013
2014
AED m
AED m
The fair valuesThe of the as follows: fairbonds valuesare of the bonds are as follows:
Loans are denominated the following Loans are in denominated in currencies: the following currencies:
Fixed interestFixed rate bonds interest rate bonds
UAE Dirhams UAE Dirhams
Singapore Dollars Singapore Dollars US Dollars
US Dollars
Emirates
440 9,626
455 440
455
10,198 9,626
10,198
10,653 10,066
10,653
-
1,831 -
1,831
-
1,831 -
1,831
12,484 10,066
12,484
10,066 Floating interest rate bonds Floating interest rate bonds
dnata
UAE Dirhams UAE Dirhams
Group
10,066
The fair value The of the fixed interest based rates on listed prices fallsprices and falls fairbonds value with of the bonds with rates fixed is interest is based onand listed into level 1 of the fair value hierarchy. The fair value of the other bonds is determined Financial Information into level 1 of the fair value hierarchy. The fair value of the other bonds is determined
US Dollars
US Dollars
43
106 43
106
The of present value ofliabilities finance lease The present value finance lease are liabilities are denominated in the following currencies: denominated in the following currencies:
721
809 721
809
US Dollars
curve for the remaining term to maturities currenciesand adjusted for credit spread. curve for the remaining term and to maturities currencies adjusted for credit spread. The fair value of the term loans falls into level 2 of the fair value hierarchy. The fair value of the term loans falls into level 2 of the fair value hierarchy.
Commentary
Finance leasesFinance leases
22. Term loans 22. Term loans
AED m
AED m
1,070 925
Within one year Within one year
4,239
925
3,274 4,239
3,274
1,070
16,245
(152)
(145) (152)
Between 2 andBetween 5 years 2 and 5 years
13,275 16,245
13,275
(145)
17,511
925 773
After 5 years After 5 years
15,591 17,511
15,591
925
37,995
(10) (9)
32,140 37,995
32,140
(10)
(6,287)
764
915 764
Future interestFuture interest
(4,859) (6,287)
(4,859)
915
Present valuePresent of finance lease liabilities value of finance lease liabilities
31,708
27,281 31,708
27,281
92
151 92
151
405
412 405
412
After 5 years After 5 years
267
352 267
352
Total over one yearover (Note 20) Total one year (Note 20)
672
764 672
764
Emirates Consolidated Balance Financial Statements
carried forward Balance carried forward
Less: Transaction costs Less: Transaction costs
dnata Independent Auditor’s ReportLoans
773 (9)
are repayable as follows: Loans are repayable as follows:
Within one year (Note 20) Within one year (Note 20) dnata Consolidated Between Financial Statements
92
2013
AED m brought forward Balance brought forward
Repayments during the year Repayments during the year
Additional Information
2013 2014 AED AED m m
2013 2014 AED AED m m
Emirates Independent Auditor’s ReportBalance
2 andBetween 5 years 2 and 5 years
Gross lease liabilities: Gross lease liabilities:
The present value finance lease is repayable The of present value of liabilities finance lease liabilities is repayable as follows:
as follows:
Within one year (Note 20) Within one year (Note 20)
3,359
2,516 3,359
2,516
Between 2 andBetween 5 years 2 and 5 years
12,940
10,716 12,940
10,716
After 5 years After 5 years
15,409
14,049 15,409
14,049
Total over one yearover (Note 20) Total one year (Note 20)
28,349
24,765 28,349
24,765
27
27
2013 AED m
30,274
30,274 25,737
25,737
1,434
1,434 1,544
1,544
nine out of and onetwenty hundred and twenty nine nine out of and onetwenty hundred and twenty nine out of one hundred nine (2013: nine out(2013: of one hundred eight) these aircraft under these leases. eight) aircraft under leases. In addition, Emirates hasfive) fourBoeing (2013: aircraft five) Boeing aircraft In addition, Emirates has four (2013: contracted oncontracted operating on operating leases for delivery between April 2014 and March 2016. leases for delivery between April 2014 and March 2016. 24. Provisions24. Provisions
The lease liabilities the related aircraft and aircraft engines. The lease liabilities are secured onare thesecured related on aircraft and aircraft engines.
AED m
2014 2013 AED m m AED
Retirement benefit obligations (Note 25) Retirement benefit obligations (Note 25)
1,048
1,048 769
Provision for (Note maintenance (Note 26) Provision for maintenance 26)
1,595
1,595 1,161
1,161
2,643
2,643 1,930
1,930
2014
Thelease fair value of lease liabilities amounts 31,413 (2013: The fair value of liabilities amounts to AED 31,413to m AED (2013: AED m 26,738 m).AED The26,738 m). The fair value isbydetermined discounting cashthe flows usingrate the interest rate fair value is determined discountingbyprojected cashprojected flows using interest for the remaining term and to maturities currencies adjusted for credit yield curve foryield the curve remaining term to maturities currenciesand adjusted for credit spread. The fair liabilities value of lease liabilities intofair level 2 ofhierarchy. the fair value hierarchy. spread. The fair value of lease falls into level falls 2 of the value
AED m
2014 2013 AED m m AED
AED m
45,978
45,978 44,983
44,983
2014
AED m 2013
US Dollars
UAE Dirhams UAE Dirhams
2014 2013 AED m m AED
2013 AED m 769
Operating leases Operating leases
2014 2014
2014 AED m
The fair value The of the amounts to AED 752 mto(2013: AED m 903 m). The fairterm valueloans of the term loans amounts AED 752 (2013: AEDfair 903 m). The fair value is determined by discounting projected cash flows using the interest rate value is determined by discounting projected cash flows using theyield interest rate yield
23. Lease liabilities 23. Lease liabilities
dnata Financial Commentary
2013 AED m
Contractual repricing dates are setdates at three to six Term loans Term loans Contractual repricing are set at month three tointervals. six month intervals. amounting to amounting AED 730 m to (2013: AED 814 m) are secured on aircraft. AED 730 m (2013: AED 814 m) are secured on aircraft.
by discounting cash flows using interest yield curve thecurve for the by projected discounting projected cash the flows using rate the interest rate for yield remaining term to maturities and currencies adjusted for credit spread. The fair value remaining term to maturities and currencies adjusted for credit spread. The fair value Emirates Financial of these bondsoffalls into level falls 2 of into the fair value these bonds level 2 of hierarchy. the fair value hierarchy.
2013 2014 AED AED m m
Emirates is entitled to extend leasesperiod for a further Emirates is entitled to extend certain aircraftcertain leases aircraft for a further of one period to six of one to six years endlease of the initial Further, lease period. Further, Emirates is entitled to purchase years at the end of at thethe initial period. Emirates is entitled to purchase
2013
Future payments Future minimum leaseminimum paymentslease are as follows: are as follows: Aircraft fleet Aircraft fleet Others
Others
Within one year Within one year
2,288
2,288 2,054
2,054
48,266
48,266 47,037
47,037
8,652
8,652 6,696
6,696
Between 2 andBetween 5 years 2 and 5 years
23,685
23,685 23,247
23,247
After 5 years After 5 years
15,929
15,929 17,094
17,094
48,266
48,266 47,037
47,037
theaircraft event of the aircraft leases being terminated prior topenalties their expiry, In the event ofInthe leases being terminated prior to their expiry, are penalties are payable. Hadbeen these leases been at 31the March 2014,would the penalties payable. Had these leases cancelled at 31cancelled March 2014, penalties have would have been AED been AED Nil (2013: AEDNil 280(2013: m). AED 280 m).
28
28
93
Overview
Emirates
dnata
25. Retirement 25.benefit Retirement obligations benefit obligations
(i) Funded scheme (i) Funded scheme
25. Retirement 25. benefit Retirement obligations benefit (continued) obligations (continued)
In accordance In with accordance the provisions with the of IAS provisions 19, management of IAS 19, has management carried outhas ancarried exerciseout an exercise
Senior employees Senior based employees in the UAE based participate in the UAE in aparticipate defined benefit in a defined provident benefit scheme provident scheme
Contributions received includeofthe transfer ofbenefits accumulated Contributions received include the transfer accumulated from benefits unfundedfrom unfunded
to assess the to present assessvalue the present of its defined value of benefit its defined obligations benefitat obligations 31 March 2014 at 31inMarch 2014 in
to which Emirates to which contributes Emirates a specified contributes percentage a specified of percentage basic salaryofbased basicupon salarythe based upon the
schemes. Emirates expects approximately to contribute approximately 250 m for existing plan schemes. Emirates expects to contribute AED 250 m forAED existing plan
respect of employees' respect of end employees' of service end benefits of service payable benefits underpayable relevantunder local regulations relevant local regulations
employee’s grade employee’s and duration grade and of service. duration Amounts of service. contributed Amountsare contributed invested in area invested in a
members ending members during the yearduring endingthe 31year March 2015.31 March 2015.
and contractual andarrangements. contractual arrangements. The assessment Theassumed assessment expected assumed salary expected increases salary increases
trustee administered trustee administered scheme and scheme accumulate and along accumulate with returns along with earned returns on earned on
averaging 4.5% averaging (2013: 4.5%) 4.5% and (2013: a discount 4.5%) and rate a discount of 4.75% rate (2013: of 4.0%) 4.75% per (2013: annum. 4.0%) per annum.
investments. Contributions investments. Contributions are made onare a monthly made onbasis a monthly irrespective basis ofirrespective fund of fund
The present values The present of thevalues defined of benefit the defined obligations benefitatobligations 31 March at 2014 31 were March 2014 were
performance and performance are not pooled, and arebut notare pooled, separately but are identifiable separately and identifiable attributable andtoattributable to
computed using computed the actuarial usingassumptions the actuarialset assumptions out above.set out above.
each participant. each The participant. fund comprises The fund a diverse comprises mix of a diverse managed mixfunds of managed and investment funds and investment decisions are controlled decisions are directly controlled by thedirectly participating by theemployees. participating employees.
The liabilities recognised The liabilities in the recognised consolidated in thestatement consolidated of financial statement position of financial are: position are:
Group
2014
2013 2014
2013
AED m
AED AED m m
AED m
Funded scheme Funded scheme Present Financial Information
value of Present defined value benefit of defined obligations benefit obligations
Less: Fair valueLess: of plan Fairassets value of plan assets Emirates Financial Commentary
dnata Financial Commentary
Present value of Present defined value benefit of defined obligations benefit obligations
financial position financial position
dependent upon dependent a participating upon a employee's participatinglength employee's of service. lengthIf of at service. the timeIf an at the time an employee leaves employee employment, leaves the employment, accumulated thevested accumulated amount, vested including amount, investment including investment returns, is lessreturns, than theis end less of than service the end benefits of service that would benefits have thatbeen would payable have been to that payable to that
1,789
1,508 1,789
1,508
(1,493) (1,774)
(1,493)
directly to thedirectly employee. to the However, employee. if the However, accumulated if the vested accumulated amountvested exceeds amount the exceeds the
15
15 15
15
end of service end benefits of service that would benefits have that been would payable have been to an payable employee to under an employee relevantunder relevant
employee under employee relevant under localrelevant regulations, local Emirates regulations, paysEmirates the shortfall pays the amount shortfall amount
local regulations, localthe regulations, employeethe receives employee between receives seventy between five and seventy one five hundred and one hundred 1,033
1,033 754
754
Liability recognised Liability inrecognised the consolidated in the consolidated statement of statement of Emirates Independent Auditor’s Report
Benefits receivable Benefits under receivable the provident under the scheme provident are subject scheme to are vesting subject rules, to which vesting are rules, which are
1,048
1,048 769
769
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
94
gains losses and expected are not calculated Actuarial gainsActuarial and losses andand expected return on planreturn assetsonareplan notassets calculated
Funded scheme Funded scheme
given that investment decisions to plan assets are under the of direct control of given that investment decisions relating to planrelating assets are under the direct control
Contributions expensed Contributions expensed
participating employees. participating employees.
or contribution other definedplans contribution plans follow relevant local regulations, which are mainly or other defined follow relevant local regulations, which are mainly based periods service of cumulative service and levels of employees’ final basic salaries. based on periods of on cumulative and levels of employees’ final basic salaries. The liability in the statement consolidated statementposition of financial The liability recognised in recognised the consolidated of financial is theposition is the
2014
2013 2014
2013
AED m
AED AEDmm
AED m
Balance brought Balance forward brought forward
754
616 754
616
settled from plan settled assets from and plan is calculated assets and as is the calculated excess as of the excess presentofvalue the present of the value of the
Current serviceCurrent cost service cost
153
153 98
98
defined benefit defined obligation benefit forobligation an individual for an employee individual over employee the fair over valuethe of fair the value of the
Interest cost
44
28 44
28
2014
2013 2014
2013
AED m
AED AED m m
AED m
1,493
1,236 1,493
1,236
Contributions Contributions received received
251
233 251
233
Benefits paid Benefits paid
(72)
(47) (72)
(47)
Change in fair Change value in fair value
102
102 71
71
1,774
1,493 1,774
1,493
29
AED AEDmm
AED m
242
221 242
221
242
221 242
221
153
153 98
98
Interest cost
Interest cost
44
28 44
28
197
126 197
126
177
163 177
163
Recognised inRecognised the consolidated in the income consolidated statement income statement616
510 616
510
Defined contribution Definedplan contribution plan ContributionsContributions expensed expensed
Interest cost
Remeasurement Remeasurement
The movementThe in the movement fair value inof the the fair plan value assets of the areplan as follows: assets are as follows:
29
AED m
The movementThe in the movement defined benefit in the defined obligation benefit is asobligation follows: is as follows:
The liability ofThe AEDliability 15 m of (2013: AEDAED 15 m 15(2013: m) represents AED 15 m) therepresents amount that the will amount not be that will not be
Balance carried Balance forward carried forward
2013
present value of the defined benefit obligation at the end ofperiod. the reporting period. present value of the defined benefit obligation at the end of the reporting
Emirates or itsEmirates creditorsor inits any creditors circumstances. in any circumstances.
Balance brought Balance forward brought forward
2013 2014
Unfunded scheme Unfunded scheme Current serviceCurrent cost service cost
End of service benefits for who do not participate in scheme the provident scheme End of service benefits for employees whoemployees do not participate in the provident
percent of their percent fund of balance. their fund Vested balance. assets Vested of the assets scheme of are the not scheme available are not to available to
employee's plan employee's assets at the planend assets of the at the reporting end of period. the reporting period.
2014 Defined benefit Defined plan benefit plan
(ii) Unfunded (ii) schemes Unfunded schemes
(1,774)
Unfunded scheme Unfunded scheme
The total amount Therecognised total amount in the recognised consolidated in theincome consolidated statement income is asstatement follows: is as follows:
- changes/indemographic experience /assumptions demographic assumptions12 - changes in experience
12 3
3
- changes in financial assumptions - changes in financial assumptions
(33)
(33) 67
67
- changes in prior year assumptions - changes in prior year assumptions
169
169 -
-
Payments made Payments made during the yearduring the year Balance carried forward Balance carried forward
(66)
(66) (58)
(58)
1,033
1,033 754
754
Payments made the year m (2013: 12 m) for Payments made during the yearduring include AED 9 include m (2013:AED AED9 12 m) for AED the transfer of the transfer of accumulated benefits to Emirates’ funded scheme. accumulated benefits to Emirates’ funded scheme.
30
30
95
Overview
Emirates
dnata
25. Retirement 25.benefit Retirement obligations benefit obligations
(i) Funded scheme (i) Funded scheme
25. Retirement 25. benefit Retirement obligations benefit (continued) obligations (continued)
In accordance In with accordance the provisions with the of IAS provisions 19, management of IAS 19, has management carried outhas ancarried exerciseout an exercise
Senior employees Senior based employees in the UAE based participate in the UAE in aparticipate defined benefit in a defined provident benefit scheme provident scheme
Contributions received includeofthe transfer ofbenefits accumulated Contributions received include the transfer accumulated from benefits unfundedfrom unfunded
to assess the to present assessvalue the present of its defined value of benefit its defined obligations benefitat obligations 31 March 2014 at 31inMarch 2014 in
to which Emirates to which contributes Emirates a specified contributes percentage a specified of percentage basic salaryofbased basicupon salarythe based upon the
schemes. Emirates expects approximately to contribute approximately 250 m for existing plan schemes. Emirates expects to contribute AED 250 m forAED existing plan
respect of employees' respect of end employees' of service end benefits of service payable benefits underpayable relevantunder local regulations relevant local regulations
employee’s grade employee’s and duration grade and of service. duration Amounts of service. contributed Amountsare contributed invested in area invested in a
members ending members during the yearduring endingthe 31year March 2015.31 March 2015.
and contractual andarrangements. contractual arrangements. The assessment Theassumed assessment expected assumed salary expected increases salary increases
trustee administered trustee administered scheme and scheme accumulate and along accumulate with returns along with earned returns on earned on
averaging 4.5% averaging (2013: 4.5%) 4.5% and (2013: a discount 4.5%) and rate a discount of 4.75% rate (2013: of 4.0%) 4.75% per (2013: annum. 4.0%) per annum.
investments. Contributions investments. Contributions are made onare a monthly made onbasis a monthly irrespective basis ofirrespective fund of fund
The present values The present of thevalues defined of benefit the defined obligations benefitatobligations 31 March at 2014 31 were March 2014 were
performance and performance are not pooled, and arebut notare pooled, separately but are identifiable separately and identifiable attributable andtoattributable to
computed using computed the actuarial usingassumptions the actuarialset assumptions out above.set out above.
each participant. each The participant. fund comprises The fund a diverse comprises mix of a diverse managed mixfunds of managed and investment funds and investment decisions are controlled decisions are directly controlled by thedirectly participating by theemployees. participating employees.
The liabilities recognised The liabilities in the recognised consolidated in thestatement consolidated of financial statement position of financial are: position are:
Group
2014
2013 2014
2013
AED m
AED AED m m
AED m
Funded scheme Funded scheme Present Financial Information
value of Present defined value benefit of defined obligations benefit obligations
Less: Fair valueLess: of plan Fairassets value of plan assets Emirates Financial Commentary
dnata Financial Commentary
Present value of Present defined value benefit of defined obligations benefit obligations
financial position financial position
dependent upon dependent a participating upon a employee's participatinglength employee's of service. lengthIf of at service. the timeIf an at the time an employee leaves employee employment, leaves the employment, accumulated thevested accumulated amount, vested including amount, investment including investment returns, is lessreturns, than theis end less of than service the end benefits of service that would benefits have thatbeen would payable have been to that payable to that
1,789
1,508 1,789
1,508
(1,493) (1,774)
(1,493)
directly to thedirectly employee. to the However, employee. if the However, accumulated if the vested accumulated amountvested exceeds amount the exceeds the
15
15 15
15
end of service end benefits of service that would benefits have that been would payable have been to an payable employee to under an employee relevantunder relevant
employee under employee relevant under localrelevant regulations, local Emirates regulations, paysEmirates the shortfall pays the amount shortfall amount
local regulations, localthe regulations, employeethe receives employee between receives seventy between five and seventy one five hundred and one hundred 1,033
1,033 754
754
Liability recognised Liability inrecognised the consolidated in the consolidated statement of statement of Emirates Independent Auditor’s Report
Benefits receivable Benefits under receivable the provident under the scheme provident are subject scheme to are vesting subject rules, to which vesting are rules, which are
1,048
1,048 769
769
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
94
gains losses and expected are not calculated Actuarial gainsActuarial and losses andand expected return on planreturn assetsonareplan notassets calculated
Funded scheme Funded scheme
given that investment decisions to plan assets are under the of direct control of given that investment decisions relating to planrelating assets are under the direct control
Contributions expensed Contributions expensed
participating employees. participating employees.
or contribution other definedplans contribution plans follow relevant local regulations, which are mainly or other defined follow relevant local regulations, which are mainly based periods service of cumulative service and levels of employees’ final basic salaries. based on periods of on cumulative and levels of employees’ final basic salaries. The liability in the statement consolidated statementposition of financial The liability recognised in recognised the consolidated of financial is theposition is the
2014
2013 2014
2013
AED m
AED AEDmm
AED m
Balance brought Balance forward brought forward
754
616 754
616
settled from plan settled assets from and plan is calculated assets and as is the calculated excess as of the excess presentofvalue the present of the value of the
Current serviceCurrent cost service cost
153
153 98
98
defined benefit defined obligation benefit forobligation an individual for an employee individual over employee the fair over valuethe of fair the value of the
Interest cost
44
28 44
28
2014
2013 2014
2013
AED m
AED AED m m
AED m
1,493
1,236 1,493
1,236
Contributions Contributions received received
251
233 251
233
Benefits paid Benefits paid
(72)
(47) (72)
(47)
Change in fair Change value in fair value
102
102 71
71
1,774
1,493 1,774
1,493
29
AED AEDmm
AED m
242
221 242
221
242
221 242
221
153
153 98
98
Interest cost
Interest cost
44
28 44
28
197
126 197
126
177
163 177
163
Recognised inRecognised the consolidated in the income consolidated statement income statement616
510 616
510
Defined contribution Definedplan contribution plan ContributionsContributions expensed expensed
Interest cost
Remeasurement Remeasurement
The movementThe in the movement fair value inof the the fair plan value assets of the areplan as follows: assets are as follows:
29
AED m
The movementThe in the movement defined benefit in the defined obligation benefit is asobligation follows: is as follows:
The liability ofThe AEDliability 15 m of (2013: AEDAED 15 m 15(2013: m) represents AED 15 m) therepresents amount that the will amount not be that will not be
Balance carried Balance forward carried forward
2013
present value of the defined benefit obligation at the end ofperiod. the reporting period. present value of the defined benefit obligation at the end of the reporting
Emirates or itsEmirates creditorsor inits any creditors circumstances. in any circumstances.
Balance brought Balance forward brought forward
2013 2014
Unfunded scheme Unfunded scheme Current serviceCurrent cost service cost
End of service benefits for who do not participate in scheme the provident scheme End of service benefits for employees whoemployees do not participate in the provident
percent of their percent fund of balance. their fund Vested balance. assets Vested of the assets scheme of are the not scheme available are not to available to
employee's plan employee's assets at the planend assets of the at the reporting end of period. the reporting period.
2014 Defined benefit Defined plan benefit plan
(ii) Unfunded (ii) schemes Unfunded schemes
(1,774)
Unfunded scheme Unfunded scheme
The total amount Therecognised total amount in the recognised consolidated in theincome consolidated statement income is asstatement follows: is as follows:
- changes/indemographic experience /assumptions demographic assumptions12 - changes in experience
12 3
3
- changes in financial assumptions - changes in financial assumptions
(33)
(33) 67
67
- changes in prior year assumptions - changes in prior year assumptions
169
169 -
-
Payments made Payments made during the yearduring the year Balance carried forward Balance carried forward
(66)
(66) (58)
(58)
1,033
1,033 754
754
Payments made the year m (2013: 12 m) for Payments made during the yearduring include AED 9 include m (2013:AED AED9 12 m) for AED the transfer of the transfer of accumulated benefits to Emirates’ funded scheme. accumulated benefits to Emirates’ funded scheme.
30
30
95
Overview
25.benefit Retirement benefit(continued) obligations (continued) 25. Retirement obligations
for maintenance 26. Provision 26. for Provision maintenance
The of unfunded schemeintothe changes in the principal assumptions is The sensitivity of sensitivity unfunded scheme to changes principal assumptions is set out below:set out below:
infor themaintenance provision forare maintenance Movements inMovements the provision as follows: are as follows:
Assumption Assumption
Change
Change Effect on unfunded
Emirates
Discount rate Discount rate dnata
+ 0.5%
+ 0.5%
- 0.5% salary increases + 0.5% Expected salaryExpected increases
+ 0.5%
Group
- 0.5%
- 0.5% - 0.5%
scheme AED m
Effect on unfunded scheme AED m
(68) 77 80 (70)
(68) 77 80 (70)
The above sensitivity analysis basedinonana assumption change in an assumption The above sensitivity analysis are based on aare change while holding while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in all other assumptions constant. In practice, this is unlikely to occur, and changes in
2014 AED m Balance brought forward Balance brought forward Charge for the year Charge for the year Utilised on return of aircraft Utilised on return of aircraft Unwinding Unwinding of discount of discount Unutilised amounts reversed Unutilised amounts reversed Balance carried forward Balance carried forward
Emirates Financial Commentary the
the projected unit credit at the end of period. the reporting period. projected unit credit method at themethod end of the reporting
The weighted average of scheme the unfunded scheme is sixteen years. The weighted average duration of theduration unfunded is sixteen years. dnata Financial Commentary
Through its defined benefit plans the group exposedoftorisks, a number of risks, the most Through its defined benefit plans the group is exposed to aisnumber the most significant of which are detailed below: significant of which are detailed below: Changerate: in discount rate:benefit Retirement benefitwill obligations will increase due to a in a) discount Retirement obligations increase due to a decrease in market yields of high quality corporate bonds. decrease in market yields of high quality corporate bonds.
(86)
2013 AED m 757
105 85 (86) -
85
Deferred creditsDeferred will be recognised credits will as befollows: recognised as follows:
-
Within one year Within one year
2014
2014 2013 AED m AED m
2013
2014
Recognised Recognised during the yearduring the year Balance carried forward Balance carried forward
dnata Independent Auditor’s Report
Deferred will be as follows: Deferred revenue will berevenue recognised as recognised follows: Within one year Within one year Over one yearOver one year
2,607 1,675 (1,615) 2,667
207 72 1,595 1,161
2014 2013 AED m AED m
Balance carriedBalance forward carried forward
30. Trade and other 30. Trade payables and other payables 2014
2013 2014
2013
2014
2013 2014
2013
AED m
AED AEDmm
AED m
AED m
AED AEDmm
AED m
381
486 381
486
14,184
13,514 14,184
13,514
6
42 6
42
875
513 875
513
(87)
(147) (87)
(147)
Passenger and cargo Passenger salesand in advance cargo sales in advance
11,300
10,483 11,300
10,483
300
381 300
381
Provision for maintenance Provision for(Note maintenance 26) (Note 26)
207
72 207
72
(6)
1,802
1,595
Recognised during Recognised the yearduring the year
397
1,233
207
Balance brought Balance forward brought forward Net additions during Net additions the yearduring the year
602 397 (52) (6)
1,802 1,233
AED m
b) Expected salary The present value ofbenefit the defined benefit Emirates Consolidated b) Expected salary increases: Theincreases: present value of the defined obligation is obligation is Financial Statements calculated by reference to the future salaries of plan participants. As such, calculated by reference to the future salaries of plan participants. As such, an increase an increase
Additional Information
(52) 105
27. Deferred revenue 27. Deferred revenue
Balance brought forward Balance brought forward Additions Additions during the yearduring the year
dnata Consolidated Financial Statements
602
AED m Within one30) year (Note 30) Within one year (Note one24) year (Note 24) Over one yearOver (Note
Emirates Independent a) Change Auditor’s Report
theplan salary of the plan participants willretirement increase the retirement benefit obligations. in the salary ofinthe participants will increase the benefit obligations.
1,233
2014 2013 AED m AED m 1,233 757
The provision to be used as follows: The provision is expected to is beexpected used as follows:
Financial Information
of the may assumptions may be the above sensitivity some of the some assumptions be correlated. In correlated. calculating Inthecalculating above sensitivity analysis, the present value of the defined benefit obligation has been calculated using analysis, the present value of the defined benefit obligation has been calculated using
28. Deferred credits 28. Deferred credits
Over one year Over one year
Related parties Related (Note 37) parties (Note 37)
Dividend payable Dividend payable 66
87 66
87
234
294 234
294
Less: Payables over Less:one Payables year over one year
800
700 800
700
27,366
25,282 27,366
25,282
(287)
(269) (287)
(269)
27,079
25,013 27,079
25,013
The carrying value The of carrying trade and valueother of trade payables and other over one payables year approximate over one yeartheir approximate fair their fair
29. Deferred income 29. Deferred tax income tax
value.
AED m
Deferred tax assetsare andoffset liabilities offset there is a legally enforceable right Deferred tax assets and liabilities whenare there is awhen legally enforceable right
72
totax offset current tax current assets against current taxwhen liabilities and when the deferred taxes to offset current assets against tax liabilities and the deferred taxes
1,161
relate to thetax same incomeThe taxmovement authority. The movement deferred relate to the same income authority. of the deferredof taxthe asset and tax asset and
value.
deferred liability is as follows: the deferred taxthe liability is astax follows:
2013
2014
2013 2014
2013
AED m
AED AEDmm
AED m
15
AED m
Balance brought Balance forward brought forward
10 15
10
2,607 1,989 1,675 1,647
1,989
Credited to the Credited consolidated to the income consolidated statement income (Notestatement 9) (Note 9) -
4-
4
Tax consolidation Taxsettlements consolidation settlements
(15)
-(15)
-
(1,615) (1,029) 2,667 2,607
(1,029)
Currency translation differences Currency translation differences
(2)
1(2)
1
2,607
carried forward Balance carriedBalance forward
(2)
15(2)
15
1,227 1,147 1,440 1,460
1,147
1,647
Trade payables Trade and accruals payables and accruals
A deferred taxbeen assetrecognised has not been recognised in respect of carried forward tax losses A deferred tax asset has not in respect of carried forward tax losses 1,227 1,440
amounting AED 1,012 m (2013: amounting to AED 1,012 mto (2013: AED 1,882 m). AED 1,882 m).
1,460
Deferred revenue to flyer the frequent flyerand programme the fair Deferred revenue relates to the relates frequent programme representsand therepresents fair value of outstanding award credits. Revenue is recognised when Emirates fulfills its value of outstanding award credits. Revenue is recognised when Emirates fulfills its by supplying free or discounted goods on theofredemption of obligations byobligations supplying free or discounted goods or services on or theservices redemption the award credits. the award credits.
Deferred revenue is classified current andliabilities non-current liabilities Deferred revenue is classified within current within and non-current based on the based on the expected redemption patterns. expected redemption patterns.
96
31
31
32
32
97
Overview
25.benefit Retirement benefit(continued) obligations (continued) 25. Retirement obligations
for maintenance 26. Provision 26. for Provision maintenance
The of unfunded schemeintothe changes in the principal assumptions is The sensitivity of sensitivity unfunded scheme to changes principal assumptions is set out below:set out below:
infor themaintenance provision forare maintenance Movements inMovements the provision as follows: are as follows:
Assumption Assumption
Change
Change Effect on unfunded
Emirates
Discount rate Discount rate dnata
+ 0.5%
+ 0.5%
- 0.5% salary increases + 0.5% Expected salaryExpected increases
+ 0.5%
Group
- 0.5%
- 0.5% - 0.5%
scheme AED m
Effect on unfunded scheme AED m
(68) 77 80 (70)
(68) 77 80 (70)
The above sensitivity analysis basedinonana assumption change in an assumption The above sensitivity analysis are based on aare change while holding while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in all other assumptions constant. In practice, this is unlikely to occur, and changes in
2014 AED m Balance brought forward Balance brought forward Charge for the year Charge for the year Utilised on return of aircraft Utilised on return of aircraft Unwinding Unwinding of discount of discount Unutilised amounts reversed Unutilised amounts reversed Balance carried forward Balance carried forward
Emirates Financial Commentary the
the projected unit credit at the end of period. the reporting period. projected unit credit method at themethod end of the reporting
The weighted average of scheme the unfunded scheme is sixteen years. The weighted average duration of theduration unfunded is sixteen years. dnata Financial Commentary
Through its defined benefit plans the group exposedoftorisks, a number of risks, the most Through its defined benefit plans the group is exposed to aisnumber the most significant of which are detailed below: significant of which are detailed below: Changerate: in discount rate:benefit Retirement benefitwill obligations will increase due to a in a) discount Retirement obligations increase due to a decrease in market yields of high quality corporate bonds. decrease in market yields of high quality corporate bonds.
(86)
2013 AED m 757
105 85 (86) -
85
Deferred creditsDeferred will be recognised credits will as befollows: recognised as follows:
-
Within one year Within one year
2014
2014 2013 AED m AED m
2013
2014
Recognised Recognised during the yearduring the year Balance carried forward Balance carried forward
dnata Independent Auditor’s Report
Deferred will be as follows: Deferred revenue will berevenue recognised as recognised follows: Within one year Within one year Over one yearOver one year
2,607 1,675 (1,615) 2,667
207 72 1,595 1,161
2014 2013 AED m AED m
Balance carriedBalance forward carried forward
30. Trade and other 30. Trade payables and other payables 2014
2013 2014
2013
2014
2013 2014
2013
AED m
AED AEDmm
AED m
AED m
AED AEDmm
AED m
381
486 381
486
14,184
13,514 14,184
13,514
6
42 6
42
875
513 875
513
(87)
(147) (87)
(147)
Passenger and cargo Passenger salesand in advance cargo sales in advance
11,300
10,483 11,300
10,483
300
381 300
381
Provision for maintenance Provision for(Note maintenance 26) (Note 26)
207
72 207
72
(6)
1,802
1,595
Recognised during Recognised the yearduring the year
397
1,233
207
Balance brought Balance forward brought forward Net additions during Net additions the yearduring the year
602 397 (52) (6)
1,802 1,233
AED m
b) Expected salary The present value ofbenefit the defined benefit Emirates Consolidated b) Expected salary increases: Theincreases: present value of the defined obligation is obligation is Financial Statements calculated by reference to the future salaries of plan participants. As such, calculated by reference to the future salaries of plan participants. As such, an increase an increase
Additional Information
(52) 105
27. Deferred revenue 27. Deferred revenue
Balance brought forward Balance brought forward Additions Additions during the yearduring the year
dnata Consolidated Financial Statements
602
AED m Within one30) year (Note 30) Within one year (Note one24) year (Note 24) Over one yearOver (Note
Emirates Independent a) Change Auditor’s Report
theplan salary of the plan participants willretirement increase the retirement benefit obligations. in the salary ofinthe participants will increase the benefit obligations.
1,233
2014 2013 AED m AED m 1,233 757
The provision to be used as follows: The provision is expected to is beexpected used as follows:
Financial Information
of the may assumptions may be the above sensitivity some of the some assumptions be correlated. In correlated. calculating Inthecalculating above sensitivity analysis, the present value of the defined benefit obligation has been calculated using analysis, the present value of the defined benefit obligation has been calculated using
28. Deferred credits 28. Deferred credits
Over one year Over one year
Related parties Related (Note 37) parties (Note 37)
Dividend payable Dividend payable 66
87 66
87
234
294 234
294
Less: Payables over Less:one Payables year over one year
800
700 800
700
27,366
25,282 27,366
25,282
(287)
(269) (287)
(269)
27,079
25,013 27,079
25,013
The carrying value The of carrying trade and valueother of trade payables and other over one payables year approximate over one yeartheir approximate fair their fair
29. Deferred income 29. Deferred tax income tax
value.
AED m
Deferred tax assetsare andoffset liabilities offset there is a legally enforceable right Deferred tax assets and liabilities whenare there is awhen legally enforceable right
72
totax offset current tax current assets against current taxwhen liabilities and when the deferred taxes to offset current assets against tax liabilities and the deferred taxes
1,161
relate to thetax same incomeThe taxmovement authority. The movement deferred relate to the same income authority. of the deferredof taxthe asset and tax asset and
value.
deferred liability is as follows: the deferred taxthe liability is astax follows:
2013
2014
2013 2014
2013
AED m
AED AEDmm
AED m
15
AED m
Balance brought Balance forward brought forward
10 15
10
2,607 1,989 1,675 1,647
1,989
Credited to the Credited consolidated to the income consolidated statement income (Notestatement 9) (Note 9) -
4-
4
Tax consolidation Taxsettlements consolidation settlements
(15)
-(15)
-
(1,615) (1,029) 2,667 2,607
(1,029)
Currency translation differences Currency translation differences
(2)
1(2)
1
2,607
carried forward Balance carriedBalance forward
(2)
15(2)
15
1,227 1,147 1,440 1,460
1,147
1,647
Trade payables Trade and accruals payables and accruals
A deferred taxbeen assetrecognised has not been recognised in respect of carried forward tax losses A deferred tax asset has not in respect of carried forward tax losses 1,227 1,440
amounting AED 1,012 m (2013: amounting to AED 1,012 mto (2013: AED 1,882 m). AED 1,882 m).
1,460
Deferred revenue to flyer the frequent flyerand programme the fair Deferred revenue relates to the relates frequent programme representsand therepresents fair value of outstanding award credits. Revenue is recognised when Emirates fulfills its value of outstanding award credits. Revenue is recognised when Emirates fulfills its by supplying free or discounted goods on theofredemption of obligations byobligations supplying free or discounted goods or services on or theservices redemption the award credits. the award credits.
Deferred revenue is classified current andliabilities non-current liabilities Deferred revenue is classified within current within and non-current based on the based on the expected redemption patterns. expected redemption patterns.
96
31
31
32
32
97
31. Commitments 31. Commitments
32. Guarantees 32. Guarantees
Capital commitments Capital commitments 2014 AED m Overview
Emirates
AED m
2013 AED m
Aircraft fleet Aircraft fleet
130,573
141,660 130,573
141,660
Non-aircraft Non-aircraft
5,744
4,969 5,744
4,969
39
39
39
136,356
146,668 136,356
146,668
Joint venturesJoint ventures
-
Aircraft fleet Aircraft fleet
138,118
138,118 -
Non-aircraft Non-aircraft
2,611
2,611 5,184
5,184
8
8 25
25
ventures
140,737 277,093
Emirates Financial Commentary
140,737 5,209 277,093 151,877
5,209 151,877
have been into for the purchase aircraft as for delivery as CommitmentsCommitments have been entered into entered for the purchase of aircraft forofdelivery dnata Financial Commentary
(Note 11): follows (Note follows 11): Financial yearFinancial year
2014 - 2015 2014 - 2015 Emirates Independent Auditor’s Report Beyond
2014 -Beyond 2015 2014 - 2015
2013
AED m
AED m
AED m
365 392
365
392
Performance Performance bonds and letters bondsofand credit letters include of credit AED include 117 m (2013: AED 117 AEDm113 (2013: m) AED 113 m) provided by companies provided by under companies common under control. common control.
2014
2014
Description Description
Term AED m
2013 Term AED m
reporting period. reporting period.
2013 Term AED m
AED m
Cash flow hedge Cash flow hedge
2014
2013 2014
2013
AED m
AED m
AED m
Bank depositsBank deposits
11,790
20,361 11,790
20,361
Cash and bankCash and bank
4,771
4,211 4,771
4,211
16,561
24,572 16,561
24,572
(8,754)
(18,048) (8,754)
(18,048)
Aircraft
Aircraft
21
21
280
280
Cash and bank Cash balances and bank balances Less: Short term Less: bank Short deposits term bank - over deposits 3 months - over 3 months
Cash and cash Cash equivalents and cashas equivalents per the consolidated as per the consolidated statement of statement financial position of financial position
7,807
6,524 7,807
6,524
(7)
(4) (7)
(4)
Bank overdraftBank (Note overdraft 20) (Note 20) Cash and cash Cash equivalents and cashas equivalents per the consolidated as per the consolidated statement of statement cash flowsof cash flows
7,800
6,520 7,800
Currency swaps Currency and forwards swaps and forwards
(2013: AED 8 m) (2013: will enter AED 8into m) the will determination enter into the determination of profit between of profit 2014 between and 2017.2014 and 2017. 2014-2017 5
2013-20175
2013-2017 92
92
5
5
92
92
1
1
67
67
1
1
67
67
The maximumThe exposure maximum to credit exposure risk to at the credit reporting risk at the datereporting is the fair date value is the of the fair value of the derivative assets derivative in the consolidated assets in thestatement consolidated of financial statement position. of financial position.
Interest rate swaps Interest rate swaps 2014-2023
2014-2023 (579) 2013-2023 (579) 2013-2023 (961)
(961)
Currency swaps Currency and forwards swaps and 2014-2015 forwards
2014-2015 (20) 2013-2016 (20) 2013-2016 (55)
Cash flow hedge Cash flow hedge Non-current liabilities Non-current liabilities
(599) Interest rate swaps Interest rate swaps Currency swaps Currency and forwards swaps and forwards
Interest rate contracts Interest rate contracts Currency contracts Currency contracts
In the eventof that delivery of certain not taken, penaltiesbyare payable by In the event that delivery certain aircraft are notaircraft taken,are penalties are payable
(55) (1,016)
-
-
(1)
(1)
(95)
(95)
(5)
(5)
(95)
(95)
(6)
(6)
The notional principal The notional amounts principal outstanding amountsare: outstanding are:
annum.
In addition, options are held on seventy Boeing aircraft. options are held on seventy Boeing aircraft.
(599)
(1,016)
Current liabilities Current liabilities
6,520
Cash and bank Cash balances and bank earned balances an effective earnedinterest an effective rate of interest 1.7% (2013: rate of2.6%) 1.7% per (2013: 2.6%) per
Emirates to AED the extent of AED 1,712 m. to the extent of 1,712 m.
Currency swaps Currency and forwards swaps and 2014-2017 forwards
Net losses onNet account lossesofonterminated account ofcurrency terminated derivatives currency amounting derivativesto amounting AED 12 m to AED 12 m
Current assetsCurrent assets
33. Short term 33.bank Short deposits term bank and deposits cash andand cashcash equivalents and cash equivalents
34. Cash outflow 34. Cash on property, outflow on plant property, and equipment plant and equipment dnata Independent Auditor’s Report Emirates
remaining maturity remaining of thematurity hedgedofitem the ishedged more than item 12 is more months than as 12 at the months end as of at thethe end of the Term
banks in the normal banks in course the normal of business course of business
annum. Emirates Consolidated In addition, Financial Statements
2013 2014
Performance bonds Performance and letters bonds of and credit letters provided of credit by provided by
Authorised but Authorised not contracted: but not contracted:
Joint venturesJoint Financial Information
2014
The full fair value The full of fair the value derivative of the instrument derivativeis instrument classified asis non-current classified as ifnon-current the if the
Non-current assets Non-current assets
Authorised and Authorised contracted: and contracted:
dnata
Group
2013 2014
35. Derivative35. financial Derivative instruments financial instruments
2014
2013 2014
2013
AED m
AED AEDm m
AED m
10,234
11,107 10,234
11,107
8,738
8,738 3,244
3,244
For the purposes For the of the purposes consolidated of the consolidated statement of statement cash flows,of cash cash outflow flows, cash on outflow on property, plantproperty, and equipment plant and is analysed equipment as isfollows: analysed as follows:
dnata Consolidated Operational Financial Statements
Additional Information
Operational commitments commitments
Sales and marketing Sales and marketing
2014
2014 2013
2013
AED m
AED m
AED m
3,046
3,046 3,191
3,191
2014 Payments for property, Paymentsplant for property, and equipment plant and equipment Less: Assets acquired Less: Assets under acquired financeunder leasesfinance leases
2013 2014
2013
AED m
AED m
AED m
21,037
13,259 21,037
13,259
(7,079)
(7,486) (7,079)
(7,486)
13,958
13,958 5,773
5,773
4
4
99
31. Commitments 31. Commitments
32. Guarantees 32. Guarantees
Capital commitments Capital commitments 2014 AED m Overview
Emirates
AED m
2013 AED m
Aircraft fleet Aircraft fleet
130,573
141,660 130,573
141,660
Non-aircraft Non-aircraft
5,744
4,969 5,744
4,969
39
39
39
136,356
146,668 136,356
146,668
Joint venturesJoint ventures
-
Aircraft fleet Aircraft fleet
138,118
138,118 -
Non-aircraft Non-aircraft
2,611
2,611 5,184
5,184
8
8 25
25
ventures
140,737 277,093
Emirates Financial Commentary
140,737 5,209 277,093 151,877
5,209 151,877
have been into for the purchase aircraft as for delivery as CommitmentsCommitments have been entered into entered for the purchase of aircraft forofdelivery dnata Financial Commentary
(Note 11): follows (Note follows 11): Financial yearFinancial year
2014 - 2015 2014 - 2015 Emirates Independent Auditor’s Report Beyond
2014 -Beyond 2015 2014 - 2015
2013
AED m
AED m
AED m
365 392
365
392
Performance Performance bonds and letters bondsofand credit letters include of credit AED include 117 m (2013: AED 117 AEDm113 (2013: m) AED 113 m) provided by companies provided by under companies common under control. common control.
2014
2014
Description Description
Term AED m
2013 Term AED m
reporting period. reporting period.
2013 Term AED m
AED m
Cash flow hedge Cash flow hedge
2014
2013 2014
2013
AED m
AED m
AED m
Bank depositsBank deposits
11,790
20,361 11,790
20,361
Cash and bankCash and bank
4,771
4,211 4,771
4,211
16,561
24,572 16,561
24,572
(8,754)
(18,048) (8,754)
(18,048)
Aircraft
Aircraft
21
21
280
280
Cash and bank Cash balances and bank balances Less: Short term Less: bank Short deposits term bank - over deposits 3 months - over 3 months
Cash and cash Cash equivalents and cashas equivalents per the consolidated as per the consolidated statement of statement financial position of financial position
7,807
6,524 7,807
6,524
(7)
(4) (7)
(4)
Bank overdraftBank (Note overdraft 20) (Note 20) Cash and cash Cash equivalents and cashas equivalents per the consolidated as per the consolidated statement of statement cash flowsof cash flows
7,800
6,520 7,800
Currency swaps Currency and forwards swaps and forwards
(2013: AED 8 m) (2013: will enter AED 8into m) the will determination enter into the determination of profit between of profit 2014 between and 2017.2014 and 2017. 2014-2017 5
2013-20175
2013-2017 92
92
5
5
92
92
1
1
67
67
1
1
67
67
The maximumThe exposure maximum to credit exposure risk to at the credit reporting risk at the datereporting is the fair date value is the of the fair value of the derivative assets derivative in the consolidated assets in thestatement consolidated of financial statement position. of financial position.
Interest rate swaps Interest rate swaps 2014-2023
2014-2023 (579) 2013-2023 (579) 2013-2023 (961)
(961)
Currency swaps Currency and forwards swaps and 2014-2015 forwards
2014-2015 (20) 2013-2016 (20) 2013-2016 (55)
Cash flow hedge Cash flow hedge Non-current liabilities Non-current liabilities
(599) Interest rate swaps Interest rate swaps Currency swaps Currency and forwards swaps and forwards
Interest rate contracts Interest rate contracts Currency contracts Currency contracts
In the eventof that delivery of certain not taken, penaltiesbyare payable by In the event that delivery certain aircraft are notaircraft taken,are penalties are payable
(55) (1,016)
-
-
(1)
(1)
(95)
(95)
(5)
(5)
(95)
(95)
(6)
(6)
The notional principal The notional amounts principal outstanding amountsare: outstanding are:
annum.
In addition, options are held on seventy Boeing aircraft. options are held on seventy Boeing aircraft.
(599)
(1,016)
Current liabilities Current liabilities
6,520
Cash and bank Cash balances and bank earned balances an effective earnedinterest an effective rate of interest 1.7% (2013: rate of2.6%) 1.7% per (2013: 2.6%) per
Emirates to AED the extent of AED 1,712 m. to the extent of 1,712 m.
Currency swaps Currency and forwards swaps and 2014-2017 forwards
Net losses onNet account lossesofonterminated account ofcurrency terminated derivatives currency amounting derivativesto amounting AED 12 m to AED 12 m
Current assetsCurrent assets
33. Short term 33.bank Short deposits term bank and deposits cash andand cashcash equivalents and cash equivalents
34. Cash outflow 34. Cash on property, outflow on plant property, and equipment plant and equipment dnata Independent Auditor’s Report Emirates
remaining maturity remaining of thematurity hedgedofitem the ishedged more than item 12 is more months than as 12 at the months end as of at thethe end of the Term
banks in the normal banks in course the normal of business course of business
annum. Emirates Consolidated In addition, Financial Statements
2013 2014
Performance bonds Performance and letters bonds of and credit letters provided of credit by provided by
Authorised but Authorised not contracted: but not contracted:
Joint venturesJoint Financial Information
2014
The full fair value The full of fair the value derivative of the instrument derivativeis instrument classified asis non-current classified as ifnon-current the if the
Non-current assets Non-current assets
Authorised and Authorised contracted: and contracted:
dnata
Group
2013 2014
35. Derivative35. financial Derivative instruments financial instruments
2014
2013 2014
2013
AED m
AED AEDm m
AED m
10,234
11,107 10,234
11,107
8,738
8,738 3,244
3,244
For the purposes For the of the purposes consolidated of the consolidated statement of statement cash flows,of cash cash outflow flows, cash on outflow on property, plantproperty, and equipment plant and is analysed equipment as isfollows: analysed as follows:
dnata Consolidated Operational Financial Statements
Additional Information
Operational commitments commitments
Sales and marketing Sales and marketing
2014
2014 2013
2013
AED m
AED m
AED m
3,046
3,046 3,191
3,191
2014 Payments for property, Paymentsplant for property, and equipment plant and equipment Less: Assets acquired Less: Assets under acquired financeunder leasesfinance leases
2013 2014
2013
AED m
AED m
AED m
21,037
13,259 21,037
13,259
(7,079)
(7,486) (7,079)
(7,486)
13,958
13,958 5,773
5,773
4
4
99
36. Classification of financial instruments (continued)
36. Classification of financial instruments
Financial
The accounting policies for financial instruments have been applied to the line items below:
Derivative liabilities at Loans and
Financial
dnata
Group
Loans and Description
financial
amortised cost
Total
AED m
AED m
AED m
Emirates Financial Commentary
AED m
2013 Loans and other receivables (excluding prepayments)
411
-
-
411
-
159
-
159
7,460
-
-
7,460
Short term bank deposits
18,048
-
-
18,048
Cash and cash equivalents
6,524
-
-
6,524
159
-
32,602
Derivative financial instruments
Total
32,443
Liabilities dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
Borrowings and lease liabilities
-
-
40,525
40,525
Provision for maintenance Trade and other payables (excluding passenger and cargo sales in advance and
-
-
1,233
1,233
other non financial liabilities)
-
Derivative financial instruments
-
1,022
Total
-
1,022
-
14,104 55,862
14,104
AED m
amortised cost
Total
AED m
AED m
2014 Assets Loans and other receivables (excluding prepayments)
225
Derivative financial instruments
Assets
Trade and other receivables (excluding prepayments and advance lease rentals) Financial Information
AED m
receivables instruments
financial
receivables instruments
Derivative liabilities at
Overview
Emirates
Description
-
-
-
225
6
-
6
Trade and other receivables (excluding prepayments and advance lease rentals)
7,402
-
-
7,402
Short term bank deposits
8,754
-
-
8,754
7,807
-
-
7,807
6
-
24,194
Cash and cash equivalents Total
24,188
Liabilities Borrowings and lease liabilities
-
-
42,431
42,431
Provision for maintenance Trade and other payables (excluding passenger and cargo sales in advance and
-
-
1,802
1,802
other non financial liabilities)
-
-
15,414
15,414
Derivative financial instruments
-
694
Total
-
694
59,647
694 60,341
1,022 56,884
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
35 100
36 101
36. Classification of financial instruments (continued)
36. Classification of financial instruments
Financial
The accounting policies for financial instruments have been applied to the line items below:
Derivative liabilities at Loans and
Financial
dnata
Group
Loans and Description
financial
amortised cost
Total
AED m
AED m
AED m
Emirates Financial Commentary
AED m
2013 Loans and other receivables (excluding prepayments)
411
-
-
411
-
159
-
159
7,460
-
-
7,460
Short term bank deposits
18,048
-
-
18,048
Cash and cash equivalents
6,524
-
-
6,524
159
-
32,602
Derivative financial instruments
Total
32,443
Liabilities dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
Borrowings and lease liabilities
-
-
40,525
40,525
Provision for maintenance Trade and other payables (excluding passenger and cargo sales in advance and
-
-
1,233
1,233
other non financial liabilities)
-
Derivative financial instruments
-
1,022
Total
-
1,022
-
14,104 55,862
14,104
AED m
amortised cost
Total
AED m
AED m
2014 Assets Loans and other receivables (excluding prepayments)
225
Derivative financial instruments
Assets
Trade and other receivables (excluding prepayments and advance lease rentals) Financial Information
AED m
receivables instruments
financial
receivables instruments
Derivative liabilities at
Overview
Emirates
Description
-
-
-
225
6
-
6
Trade and other receivables (excluding prepayments and advance lease rentals)
7,402
-
-
7,402
Short term bank deposits
8,754
-
-
8,754
7,807
-
-
7,807
6
-
24,194
Cash and cash equivalents Total
24,188
Liabilities Borrowings and lease liabilities
-
-
42,431
42,431
Provision for maintenance Trade and other payables (excluding passenger and cargo sales in advance and
-
-
1,802
1,802
other non financial liabilities)
-
-
15,414
15,414
Derivative financial instruments
-
694
Total
-
694
59,647
694 60,341
1,022 56,884
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
35 100
36 101
37. Related party 37. Related transactions party transactions
37. Related party 37. Related transactions party(continued) transactions (continued)
The followingThe transactions followingwere transactions carried out were with carried related outparties: with related parties:
Overview
Emirates
dnata
Group
2014
2014 2013
2013
2014
2014 2013
2013
AED m
AED AED m m
AED m
AED m
AED AED m m
AED m
Trading transactions: Trading transactions:
(iii) Purchase(iii) of assets Purchase of assets
(i) Sale of goods (i) Sale andofservices goods and services
Company under Company common under control common control
Sale of goodsSale - Associates of goods - Associates
58
58 56
56
Sale of goodsSale - Companies of goods under - Companies common under control common control
51
51 11
11
Year end balances Year end balances
Sale of goodsSale - Joint of goods ventures - Joint ventures
29
29 12
12
(i) Receivables (i) -Receivables sale of goods - sale andofservices goods and services
Services rendered Services - Companies rendered under - Companies common under control common control 82
82 81
81
Associates
Services rendered Services - Joint rendered ventures - Joint ventures
11
11 11
11
Joint venturesJoint ventures
231
231 171
171
Associates
Companies under Companies common under control common control
(ii) Purchase (ii) of goods Purchase andofservices goods and services Financial Information
Purchase of goods Purchase - Associates of goods - Associates
208 194
194
Purchase of goods Purchase - Companies of goods under - Companies common under control common control 5,048
5,048 4,288
4,288
Joint venturesJoint ventures
2,810 2,472
2,472
Companies under Companies common under control common control
15 -
15
8,066 6,969
6,969
received Services - Companies received under - Companies common under control common control2,810
Services received Services - Joint received ventures - Joint ventures dnata Financial Commentary
8,066
-
Receivable within Receivable one year within one year
Other transactions: Other transactions:
Receivable over Receivable one yearover (Note one15) year (Note 15)
28 26
26
9
92
2
25
25 79
79
62
107 62
107
6
18 6
18
198
198 488
488
204
204 506
506
157
157 345
345
47
161 47
161
ventures
Companies under Companies common under control common control Emirates Consolidated Financial Statements
5
56
6
14
14 59
59
19
19 65
65
116
116 98
98
14
14 15
15
1
-1
-
131
131 113
The amounts The outstanding amounts at outstanding year end are at year unsecured end are and unsecured will be settled and will in be cash. settled No in cash. No impairment charge impairment has been charge recognised has beenduring recognised the year during in respect the year of in amounts respectowed of amounts owed by related parties. by related parties.
dnata Independent Post-employment benefits Auditor’s ReportPost-employment
benefits
Termination benefits Termination benefits dnata Consolidated Financial Statements
2014
2013 2014
2013
AED m
AED AED m m
AED m
(v) Loans and (v) advances Loans and to key advances management to key management personnel personnel
24
26 24
26
Balance brought Balance forward brought forward
5
55
5
851
487 851
487
Additions during Additions the yearduring the year
7
47
4
875
513 875
513
Repayments during Repayments the yearduring the year
(6)
(4) (6)
(4)
Balance carried Balance forward carried forward
6
56
5
Companies under Companies commonunder control common control
Receivable within Receivable one year within one year
2
22
2
Receivable over Receivable one yearover (Note one 15)year (Note 15)
4
34
3
48
65 48
65
455
556 455
556
503
621 503
621
621
1,414 621
1,414
Loans and advances Loans and are interest advances free areand interest repayable free and overrepayable a period over up toasixty period months. up to sixty months.
Movement in the Movement loans were in the as follows: loans were as follows: Balance brought Balance forward brought forward Additions during Additions the yearduring the year
Emirates has the Emirates right has to recover the right outstanding to recoverloans outstanding and advances loans and against advances the final against the final 308
312 308
312
(422)
(1,103) (422)
(1,103)
(4)
(2) (4)
(2)
Balance carried Balance forward carried forward
503
621 503
621
Receivable within Receivable one year within one year
393
436 393
436
Receivable over Receivable one yearover (Note one 15)year (Note 15)
110
185 110
185
Repayments during Repayments the yearduring the year Currency translation Currency differences translation differences
dues payable to dues thepayable employees. to the employees.
The effective interest The effective rate oninterest the loans ratewas on 4% the (2013: loans was 4.5%) 4%per (2013: annum. 4.5%) per annum. Receivables from Receivables and loans from toand companies loans to under companies common under control common relatecontrol to relate to government entities, government whichentities, are unrated. which Management are unrated. Management is of the opinion is of that the the opinion that the
(ii) Compensation (ii) Compensation to key management to key management personnel personnel
Salaries and short Salaries term and employee short term benefits employee benefits
2013 AED m
(iv) Loans
Joint ventures Joint ventures
28
(i) Finance income (i) Finance income
Emirates Independent Auditor’s ReportJoint venturesJoint
Associates
Companies under Companies commonunder control common control (iv) Loans
(ii) Receivables (ii) -Receivables other transactions - other transactions
208
Emirates Financial Services Commentary
80 -
2013 2014 AED AED m m
(iii) Payables -purchase (iii) Payables of goods -purchase and of services goods(Note and services 30) (Note 30) Associates
80
2014 AED m
amounts are fully amounts recoverable. are fully recoverable. In addition to In theaddition above, Emirates to the above, has also Emirates entered hasinto alsotransactions entered intowith transactions other Dubai with other Dubai government controlled government entities controlled in theentities normalin course the normal of business. course The of business. amounts The amounts involved are, both involved individually are, both and individually in aggregate, andnot in aggregate, significant.not significant.
113
Additional Information
102
37
37
38
38
103
37. Related party 37. Related transactions party transactions
37. Related party 37. Related transactions party(continued) transactions (continued)
The followingThe transactions followingwere transactions carried out were with carried related outparties: with related parties:
Overview
Emirates
dnata
Group
2014
2014 2013
2013
2014
2014 2013
2013
AED m
AED AED m m
AED m
AED m
AED AED m m
AED m
Trading transactions: Trading transactions:
(iii) Purchase(iii) of assets Purchase of assets
(i) Sale of goods (i) Sale andofservices goods and services
Company under Company common under control common control
Sale of goodsSale - Associates of goods - Associates
58
58 56
56
Sale of goodsSale - Companies of goods under - Companies common under control common control
51
51 11
11
Year end balances Year end balances
Sale of goodsSale - Joint of goods ventures - Joint ventures
29
29 12
12
(i) Receivables (i) -Receivables sale of goods - sale andofservices goods and services
Services rendered Services - Companies rendered under - Companies common under control common control 82
82 81
81
Associates
Services rendered Services - Joint rendered ventures - Joint ventures
11
11 11
11
Joint venturesJoint ventures
231
231 171
171
Associates
Companies under Companies common under control common control
(ii) Purchase (ii) of goods Purchase andofservices goods and services Financial Information
Purchase of goods Purchase - Associates of goods - Associates
208 194
194
Purchase of goods Purchase - Companies of goods under - Companies common under control common control 5,048
5,048 4,288
4,288
Joint venturesJoint ventures
2,810 2,472
2,472
Companies under Companies common under control common control
15 -
15
8,066 6,969
6,969
received Services - Companies received under - Companies common under control common control2,810
Services received Services - Joint received ventures - Joint ventures dnata Financial Commentary
8,066
-
Receivable within Receivable one year within one year
Other transactions: Other transactions:
Receivable over Receivable one yearover (Note one15) year (Note 15)
28 26
26
9
92
2
25
25 79
79
62
107 62
107
6
18 6
18
198
198 488
488
204
204 506
506
157
157 345
345
47
161 47
161
ventures
Companies under Companies common under control common control Emirates Consolidated Financial Statements
5
56
6
14
14 59
59
19
19 65
65
116
116 98
98
14
14 15
15
1
-1
-
131
131 113
The amounts The outstanding amounts at outstanding year end are at year unsecured end are and unsecured will be settled and will in be cash. settled No in cash. No impairment charge impairment has been charge recognised has beenduring recognised the year during in respect the year of in amounts respectowed of amounts owed by related parties. by related parties.
dnata Independent Post-employment benefits Auditor’s ReportPost-employment
benefits
Termination benefits Termination benefits dnata Consolidated Financial Statements
2014
2013 2014
2013
AED m
AED AED m m
AED m
(v) Loans and (v) advances Loans and to key advances management to key management personnel personnel
24
26 24
26
Balance brought Balance forward brought forward
5
55
5
851
487 851
487
Additions during Additions the yearduring the year
7
47
4
875
513 875
513
Repayments during Repayments the yearduring the year
(6)
(4) (6)
(4)
Balance carried Balance forward carried forward
6
56
5
Companies under Companies commonunder control common control
Receivable within Receivable one year within one year
2
22
2
Receivable over Receivable one yearover (Note one 15)year (Note 15)
4
34
3
48
65 48
65
455
556 455
556
503
621 503
621
621
1,414 621
1,414
Loans and advances Loans and are interest advances free areand interest repayable free and overrepayable a period over up toasixty period months. up to sixty months.
Movement in the Movement loans were in the as follows: loans were as follows: Balance brought Balance forward brought forward Additions during Additions the yearduring the year
Emirates has the Emirates right has to recover the right outstanding to recoverloans outstanding and advances loans and against advances the final against the final 308
312 308
312
(422)
(1,103) (422)
(1,103)
(4)
(2) (4)
(2)
Balance carried Balance forward carried forward
503
621 503
621
Receivable within Receivable one year within one year
393
436 393
436
Receivable over Receivable one yearover (Note one 15)year (Note 15)
110
185 110
185
Repayments during Repayments the yearduring the year Currency translation Currency differences translation differences
dues payable to dues thepayable employees. to the employees.
The effective interest The effective rate oninterest the loans ratewas on 4% the (2013: loans was 4.5%) 4%per (2013: annum. 4.5%) per annum. Receivables from Receivables and loans from toand companies loans to under companies common under control common relatecontrol to relate to government entities, government whichentities, are unrated. which Management are unrated. Management is of the opinion is of that the the opinion that the
(ii) Compensation (ii) Compensation to key management to key management personnel personnel
Salaries and short Salaries term and employee short term benefits employee benefits
2013 AED m
(iv) Loans
Joint ventures Joint ventures
28
(i) Finance income (i) Finance income
Emirates Independent Auditor’s ReportJoint venturesJoint
Associates
Companies under Companies commonunder control common control (iv) Loans
(ii) Receivables (ii) -Receivables other transactions - other transactions
208
Emirates Financial Services Commentary
80 -
2013 2014 AED AED m m
(iii) Payables -purchase (iii) Payables of goods -purchase and of services goods(Note and services 30) (Note 30) Associates
80
2014 AED m
amounts are fully amounts recoverable. are fully recoverable. In addition to In theaddition above, Emirates to the above, has also Emirates entered hasinto alsotransactions entered intowith transactions other Dubai with other Dubai government controlled government entities controlled in theentities normalin course the normal of business. course The of business. amounts The amounts involved are, both involved individually are, both and individually in aggregate, andnot in aggregate, significant.not significant.
113
Additional Information
102
37
37
38
38
103
Emirates limitsconcentrations and controls concentrations of they risk wherever they are identified. Emirates manages limitsmanages and controls of risk wherever are identified.
38. Financial risk 38. management Financial risk management
38. Financial risk 38. Financial management risk management (continued) (continued)
the normal courseEmirates of business, Emirates places significant with high credit In the normal In course of business, places significant deposits with deposits high credit banks institutions. and financialTransactions institutions.with Transactions derivative counterparties are quality banks quality and financial derivativewith counterparties are
Financial risk factors Financial risk factors
similarly to high financial credit quality financial institutions. Exposure credit risk is also similarly limited to highlimited credit quality institutions. Exposure to credit risk istoalso
Emirates is exposed Emirates to a is variety exposed ofto financial a variety risks of which financial involve risks which the analysis, involveevaluation, the analysis, evaluation, Overview
acceptance and acceptance management and of management some degree of of some risk degree or combination of risk orofcombination risks. Emirates' of risks. Emirates' aim is, therefore, aim to is, therefore, achieve antoappropriate achieve anbalance appropriate between balance risk between and return riskand and return and
Emirates
minimise potential minimise adverse potential effectsadverse on Emirates' effectsfinancial on Emirates' performance. financial performance. to set appropriate to setrisk appropriate limits andrisk controls, limits and and to controls, monitor and thetorisks monitor and adherence the risks and to adherence to limits by means limits of reliable by means andof up-to-date reliable and information. up-to-dateEmirates information. regularly Emirates reviews regularly its riskreviews its risk
Group
management management procedures and procedures systems to andreflect systems changes to reflect in markets, changesproducts in markets, and products and emerging bestemerging practice. Emirates best practice. uses Emirates derivativeuses financial derivative instruments financialtoinstruments hedge certain to hedge certain risk exposures.risk exposures. A risk management A risk programme management is programme carried out under is carried procedures out under that procedures are approved that by areaapproved by a steering groupsteering comprising group of senior comprising management. of senior Identification, management. evaluation Identification, andevaluation hedging and hedging risks isfinancial done inrisks close is cooperation done in closewith cooperation the operating with units. the operating Senior management units. Senior management
is also responsible is also forresponsible the review for of risk the management review of risk and management the controland environment. the control The environment. The various financial various risk elements financialare riskdiscussed elements below. are discussed below.
dnata Financial Commentary (i)
Emirates is exposed Emirates to ismarket exposed risk,towhich market is risk, the risk which thatis the the fair risk value that the or future fair value cashor future cash
to meet their andtheir by changing theirappropriate. limits where appropriate. counterparties counterparties to meet their obligations andobligations by changing limits where
flows of a financial flows instrument of a financial willinstrument fluctuate because will fluctuate of changes because in of market changes prices. in market Marketprices. Market
21% of (2013: shortdeposits term bank ApproximatelyApproximately 21% (2013: 48%) short48%) termofbank and deposits cash andand cashcash and cash
risk comprisesrisk three comprises types of three risk - types jet fuelofprice risk -risk, jet fuel currency price risk risk,and currency interest riskrate andrisk. interest rate risk.
held with financial institutions under common control. Approximately equivalents areequivalents held with are financial institutions under common control. Approximately the UAE.
the UAE.
The saleand of passenger and cargo transportation is largely achieved through International The sale of passenger cargo transportation is largely achieved through International
cost against the costforecast against cost. the forecast To manage cost.the To price manage risk,the Emirates price risk, utilises Emirates commodity utilises commodity
Air Transport Association (IATA) sales agents. IATAtoagents Air Transport Association (IATA) approved salesapproved agents. All IATA agentsAllhave meet ahave to meet a
futures and options futures to andachieve optionsa to level achieve of control a level over of higher control jet over fuelhigher costs jet so fuel that costs so that
minimum financial criteria applicable toof their countrytoofremain operation to remain accredited. minimum financial criteria applicable to their country operation accredited.
profitability is profitability not adversely is affected. not adversely affected.
the financial criteria on is monitored an ongoing by IATA through Adherence to Adherence the financialtocriteria is monitored an ongoingonbasis by IATA basis through owing to a broad diversification. small owing tosmall a broad diversification. Other receivables include advances to employees, VAT receivables Other receivables mainly includemainly advances to employees, VAT receivables and interest and interest accruals on bank deposits. Emirates the right to recoveremployee outstanding employee accruals on bank deposits. Emirates has the right has to recover outstanding advances against the finalto dues to the employees. advances against the final dues payable the payable employees. The table below presents an analysis of short term bank deposits and bank The table below presents an analysis of short term bank deposits and bank balances by balances by
Credit risk (i) Credit risk
agencyatdesignation thereporting end of the reporting based & on Standard & rating agency rating designation the end of atthe period based period on Standard Poor's ratings orfor its Emirates' equivalentmain for Emirates' main banking relationships: Poor's ratings or its equivalent banking relationships:
Emirates Independent Emirates Auditor’s Report
is exposed Emirates to iscredit exposed risk, to which credit is the risk,risk which thatis the the counterparty risk that the will counterparty cause a will cause a
financial loss to financial Emirates lossbytofailing Emirates to discharge by failing an to obligation. discharge an Financial obligation. assets Financial that assets that potentially subject potentially Emirates subject to credit Emirates risk consist to credit principally risk consist of deposits principally with of banks deposits andwith banks and
Emirates Consolidated other financialother institutions, financial derivative institutions, counterparties derivative counterparties as well as receivables as well as from receivables agents Financial Statements
Dirham is pegged. Dirham Currency is pegged. exposure Currency exists exposure on theexists Singapore on theDollar Singapore bond, Dollar the bond, the
AED m
position for other position currencies. for other Currency currencies. surpluses Currency are surpluses convertedare to converted US Dollar and to US UAE Dollar and UAE
2
Dirham funds.Dirham Currency funds. risksCurrency arise mainly risks from arise Emirates' mainly from revenue Emirates' earning revenue activities earning in activities in
Poor's and Moody's Poor's or and their Moody's equivalent or their in order equivalent to measure in order and to monitor measureits and credit monitor risk its credit risk
BBB+
BBB+
5,989
13,784 5,989
13,784
1-
1
Pounds Sterling, Pounds Euro, Sterling, Australian Euro, Dollars, Australian Japanese Dollars, Yen, Japanese Indian Rupees, Yen, Indian Chinese Rupees, Yuan Chinese and Yuan and South AfricanSouth Rand.African Currency Rand. risksCurrency are hedged risks are usinghedged forwards using andforwards options, and as options, as appropriate, asappropriate, well as by way as well of aasnatural by wayhedge of a natural between hedge foreign between currency foreign inflows currency and inflows and outflows.
outflows.
Emirates is also Emirates subjectis to also thesubject risk that to countries the risk that in which countries it may in which earn revenues it may earn mayrevenues may impose restrictions imposeorrestrictions prohibitionoronprohibition the exporton of the those export revenues. of those Emirates revenues. seeksEmirates to seeks to minimise this risk minimise by repatriating this risk bysurplus repatriating funds surplus to the UAE funds onto a monthly the UAE on basis. a monthly Cash and basis. Cash and cash equivalents cashforequivalents the currentforyear the include current AED year 564 include m (2013: AED 564 AEDm529 (2013: m) held AED in 529 a m) held in a
Additional Information
104
Dirhams and SIBOR forand Singapore Dollars. Summarised is available in is available in Dirhams SIBOR for Singapore Dollars. quantitative Summariseddata quantitative data Note 20 for interest cost Note 20 forexposures. interest cost exposures. Borrowings taken at variable rates expose Emirates to cash flow interest whilerate risk while Borrowings taken at variable rates expose Emirates to cash rate flowrisk interest borrowings issued at fixedissued rates expose to fair value interest rate risk. Emirates borrowings at fixed Emirates rates expose Emirates to fair value interest rate risk. Emirates targets a balanced approach, nevertheless taking advantage targets portfolio a balanced portfoliowhilst approach, whilst nevertheless takingofadvantage of opportune market movements, hedging around half ofaround its net half interest opportune marketby movements, by hedging of itsrate netexposure interest rate exposure going forward,going usingforward, appropriate solutions including interest swaps.interest Variable usinghedging appropriate hedging solutions including swaps. Variable
The following The sensitivity analysis, relating to existing financial instruments, how shows how following sensitivity analysis, relating to existing financial shows instruments, profit and equity would if the market variables different at thedifferent end profit and change equity would change risk if the market had risk been variables had been at the end of the reporting with allperiod other variables held variables constant held and has been and computed on computed on of period the reporting with all other constant has been the basis of assumptions indices used considered byconsidered other market the basis ofand assumptions andand indices used and by participants. other market participants.
summarised quantitative summarised data quantitative for which data is available for whichinisNote available 21. Senior in Note management 21. Senior management
2 260
9,519
factors.
denominated denominated in UAE Dirhams, in UAE the functional Dirhams, the currency functional or in currency US Dollars or to in which US Dollars the UAE to which the UAE
AED AED mm 9,519 9,153
factors.
revenue earning revenue and earning borrowing andactivities. borrowing Long activities. term debt Longobligations term debtare obligations mainly are mainly
260 9,153
dnata Consolidated Financial Statements
rate fluctuations ratebetween fluctuations the UAE between Dirham theand UAEother Dirham currencies and other generated currencies from generated Emirates from Emirates
AED m A- to A+
assessed based assessed on thebased counterparty's on the counterparty's financial position, financial past position, experience pastand experience other and other
reference ratesreference based onrates which interest costs interest are determined LIBOR, EIBOR for UAEEIBOR for UAE based on which costs areare determined are LIBOR,
Sensitivity analysis Sensitivity of market analysis riskof market risk
exchange ratesexchange on its financial rates on position its financial and cash position flows. and Exposure cash flows. arises Exposure due to exchange arises due to exchange
Emirates is in Emirates a net payer is inposition a net payer with position respect to with therespect US Dollar to the andUS in Dollar a net surplus and in a net surplus
-
obligations, operating lease rentals and on itsincome cash surpluses. Thesurpluses. key obligations, operating leaseinterest rentalsincome and interest on its cash The key
Emirates is exposed Emiratestois the exposed effectstoofthe fluctuation effects ofin fluctuation the prevailing in the foreign prevailing currency foreign currency
2013
A- to A+
Lower than BBB+ Lower than BBB+
international financial markets with markets respect with to interest on its long international financial respectcost to interest cost term on itsdebt long term debt
rate debt and rate cashdebt surpluses are mainly denominated UAE Dirhams Dollars.and US Dollars. and cash surpluses are mainly in denominated in and UAEUS Dirhams
2013 2014
selling commercial selling aircommercial transportation. air transportation. Emirates uses external Emirates ratings uses external such asratings Standard such&as Standard & to financial exposures institutions. to financial In institutions. the absenceIn ofthe independent absence ofratings, independent credit quality ratings,iscredit quality is
on borrowingsonand investments. arises from interest rate fluctuations the borrowings and Exposure investments. Exposure arises from interest rateinfluctuations in the
Currency risk Currency risk
2014 AA- to AA+
dnata Independent exposures Auditor’s Report
Emirates is exposed to is theexposed effects to of fluctuations the prevailing levels of interest rates Emirates the effects ofinfluctuations in the prevailing levels of interest rates
2013 2013 2014 2014 Effect on Effect Effectonon Effect Effectonon Effect Effectonon Effect on
monitors currency monitors positions currency on apositions regular basis. on a regular basis.
AA- to AA+
from agents
Jet fuel price Jet riskfuel price risk Emirates is exposed Emirates to isvolatility exposedinto the volatility price ofinjet thefuel price andofclosely jet fuelmonitors and closely the actual monitors the actual
their AgencyThe Programme. credit risk suchissales agents is relatively their Agency Programme. credit riskThe associated withassociated such saleswith agents relatively
Financial Information
Emirates Financial financial Commentary
managed through regular analysis ability of counterparties managed through regular analysis of the abilityofofthe counterparties and potential and potential
88%of(2013: 93%)bank of cash and bank balances are held institutions with financial institutions based in 88% (2013: 93%) cash and balances are held with financial based in
Emirates' risk management Emirates' risk procedures management areprocedures designed to areidentify designed andtoanalyse identifythese and risks, analyse these risks, dnata
(ii) Market risk (ii) Market risk
Interest rate risk Interest rate risk
Interest cost Interest cost - 25 basis points - 25 basis points UAE Dirhams UAE Dirhams US Dollars
US Dollars
Others
Others
39
equity profit
profit equity
equity profit
equity
AED AED mm
AED AED mm
AED AED mm
AED m
4
44
94
99
9
33
(64) 33
33 (64)
(97) 33
(97)
-
--
--
(1)-
37
(60) 37
42 (60)
(89) 42
(1) (89)
+ 25 basis points + 25 basis points UAE Dirhams UAE Dirhams US Dollars
US Dollars
Others
Others
country wherecountry exchange where controls exchange and other controls legaland restrictions other legal apply. restrictions apply.
39
profit AED m
40
40
(4)
(4)(4)
(9)(4)
(9)(9)
(9)
(33)
64 (33)
(33) 64
97 (33)
97
-
--
--
1-
(37)
60 (37)
(42) 60
89 (42)
1 89
105
Emirates limitsconcentrations and controls concentrations of they risk wherever they are identified. Emirates manages limitsmanages and controls of risk wherever are identified.
38. Financial risk 38. management Financial risk management
38. Financial risk 38. Financial management risk management (continued) (continued)
the normal courseEmirates of business, Emirates places significant with high credit In the normal In course of business, places significant deposits with deposits high credit banks institutions. and financialTransactions institutions.with Transactions derivative counterparties are quality banks quality and financial derivativewith counterparties are
Financial risk factors Financial risk factors
similarly to high financial credit quality financial institutions. Exposure credit risk is also similarly limited to highlimited credit quality institutions. Exposure to credit risk istoalso
Emirates is exposed Emirates to a is variety exposed ofto financial a variety risks of which financial involve risks which the analysis, involveevaluation, the analysis, evaluation, Overview
acceptance and acceptance management and of management some degree of of some risk degree or combination of risk orofcombination risks. Emirates' of risks. Emirates' aim is, therefore, aim to is, therefore, achieve antoappropriate achieve anbalance appropriate between balance risk between and return riskand and return and
Emirates
minimise potential minimise adverse potential effectsadverse on Emirates' effectsfinancial on Emirates' performance. financial performance. to set appropriate to setrisk appropriate limits andrisk controls, limits and and to controls, monitor and thetorisks monitor and adherence the risks and to adherence to limits by means limits of reliable by means andof up-to-date reliable and information. up-to-dateEmirates information. regularly Emirates reviews regularly its riskreviews its risk
Group
management management procedures and procedures systems to andreflect systems changes to reflect in markets, changesproducts in markets, and products and emerging bestemerging practice. Emirates best practice. uses Emirates derivativeuses financial derivative instruments financialtoinstruments hedge certain to hedge certain risk exposures.risk exposures. A risk management A risk programme management is programme carried out under is carried procedures out under that procedures are approved that by areaapproved by a steering groupsteering comprising group of senior comprising management. of senior Identification, management. evaluation Identification, andevaluation hedging and hedging risks isfinancial done inrisks close is cooperation done in closewith cooperation the operating with units. the operating Senior management units. Senior management
is also responsible is also forresponsible the review for of risk the management review of risk and management the controland environment. the control The environment. The various financial various risk elements financialare riskdiscussed elements below. are discussed below.
dnata Financial Commentary (i)
Emirates is exposed Emirates to ismarket exposed risk,towhich market is risk, the risk which thatis the the fair risk value that the or future fair value cashor future cash
to meet their andtheir by changing theirappropriate. limits where appropriate. counterparties counterparties to meet their obligations andobligations by changing limits where
flows of a financial flows instrument of a financial willinstrument fluctuate because will fluctuate of changes because in of market changes prices. in market Marketprices. Market
21% of (2013: shortdeposits term bank ApproximatelyApproximately 21% (2013: 48%) short48%) termofbank and deposits cash andand cashcash and cash
risk comprisesrisk three comprises types of three risk - types jet fuelofprice risk -risk, jet fuel currency price risk risk,and currency interest riskrate andrisk. interest rate risk.
held with financial institutions under common control. Approximately equivalents areequivalents held with are financial institutions under common control. Approximately the UAE.
the UAE.
The saleand of passenger and cargo transportation is largely achieved through International The sale of passenger cargo transportation is largely achieved through International
cost against the costforecast against cost. the forecast To manage cost.the To price manage risk,the Emirates price risk, utilises Emirates commodity utilises commodity
Air Transport Association (IATA) sales agents. IATAtoagents Air Transport Association (IATA) approved salesapproved agents. All IATA agentsAllhave meet ahave to meet a
futures and options futures to andachieve optionsa to level achieve of control a level over of higher control jet over fuelhigher costs jet so fuel that costs so that
minimum financial criteria applicable toof their countrytoofremain operation to remain accredited. minimum financial criteria applicable to their country operation accredited.
profitability is profitability not adversely is affected. not adversely affected.
the financial criteria on is monitored an ongoing by IATA through Adherence to Adherence the financialtocriteria is monitored an ongoingonbasis by IATA basis through owing to a broad diversification. small owing tosmall a broad diversification. Other receivables include advances to employees, VAT receivables Other receivables mainly includemainly advances to employees, VAT receivables and interest and interest accruals on bank deposits. Emirates the right to recoveremployee outstanding employee accruals on bank deposits. Emirates has the right has to recover outstanding advances against the finalto dues to the employees. advances against the final dues payable the payable employees. The table below presents an analysis of short term bank deposits and bank The table below presents an analysis of short term bank deposits and bank balances by balances by
Credit risk (i) Credit risk
agencyatdesignation thereporting end of the reporting based & on Standard & rating agency rating designation the end of atthe period based period on Standard Poor's ratings orfor its Emirates' equivalentmain for Emirates' main banking relationships: Poor's ratings or its equivalent banking relationships:
Emirates Independent Emirates Auditor’s Report
is exposed Emirates to iscredit exposed risk, to which credit is the risk,risk which thatis the the counterparty risk that the will counterparty cause a will cause a
financial loss to financial Emirates lossbytofailing Emirates to discharge by failing an to obligation. discharge an Financial obligation. assets Financial that assets that potentially subject potentially Emirates subject to credit Emirates risk consist to credit principally risk consist of deposits principally with of banks deposits andwith banks and
Emirates Consolidated other financialother institutions, financial derivative institutions, counterparties derivative counterparties as well as receivables as well as from receivables agents Financial Statements
Dirham is pegged. Dirham Currency is pegged. exposure Currency exists exposure on theexists Singapore on theDollar Singapore bond, Dollar the bond, the
AED m
position for other position currencies. for other Currency currencies. surpluses Currency are surpluses convertedare to converted US Dollar and to US UAE Dollar and UAE
2
Dirham funds.Dirham Currency funds. risksCurrency arise mainly risks from arise Emirates' mainly from revenue Emirates' earning revenue activities earning in activities in
Poor's and Moody's Poor's or and their Moody's equivalent or their in order equivalent to measure in order and to monitor measureits and credit monitor risk its credit risk
BBB+
BBB+
5,989
13,784 5,989
13,784
1-
1
Pounds Sterling, Pounds Euro, Sterling, Australian Euro, Dollars, Australian Japanese Dollars, Yen, Japanese Indian Rupees, Yen, Indian Chinese Rupees, Yuan Chinese and Yuan and South AfricanSouth Rand.African Currency Rand. risksCurrency are hedged risks are usinghedged forwards using andforwards options, and as options, as appropriate, asappropriate, well as by way as well of aasnatural by wayhedge of a natural between hedge foreign between currency foreign inflows currency and inflows and outflows.
outflows.
Emirates is also Emirates subjectis to also thesubject risk that to countries the risk that in which countries it may in which earn revenues it may earn mayrevenues may impose restrictions imposeorrestrictions prohibitionoronprohibition the exporton of the those export revenues. of those Emirates revenues. seeksEmirates to seeks to minimise this risk minimise by repatriating this risk bysurplus repatriating funds surplus to the UAE funds onto a monthly the UAE on basis. a monthly Cash and basis. Cash and cash equivalents cashforequivalents the currentforyear the include current AED year 564 include m (2013: AED 564 AEDm529 (2013: m) held AED in 529 a m) held in a
Additional Information
104
Dirhams and SIBOR forand Singapore Dollars. Summarised is available in is available in Dirhams SIBOR for Singapore Dollars. quantitative Summariseddata quantitative data Note 20 for interest cost Note 20 forexposures. interest cost exposures. Borrowings taken at variable rates expose Emirates to cash flow interest whilerate risk while Borrowings taken at variable rates expose Emirates to cash rate flowrisk interest borrowings issued at fixedissued rates expose to fair value interest rate risk. Emirates borrowings at fixed Emirates rates expose Emirates to fair value interest rate risk. Emirates targets a balanced approach, nevertheless taking advantage targets portfolio a balanced portfoliowhilst approach, whilst nevertheless takingofadvantage of opportune market movements, hedging around half ofaround its net half interest opportune marketby movements, by hedging of itsrate netexposure interest rate exposure going forward,going usingforward, appropriate solutions including interest swaps.interest Variable usinghedging appropriate hedging solutions including swaps. Variable
The following The sensitivity analysis, relating to existing financial instruments, how shows how following sensitivity analysis, relating to existing financial shows instruments, profit and equity would if the market variables different at thedifferent end profit and change equity would change risk if the market had risk been variables had been at the end of the reporting with allperiod other variables held variables constant held and has been and computed on computed on of period the reporting with all other constant has been the basis of assumptions indices used considered byconsidered other market the basis ofand assumptions andand indices used and by participants. other market participants.
summarised quantitative summarised data quantitative for which data is available for whichinisNote available 21. Senior in Note management 21. Senior management
2 260
9,519
factors.
denominated denominated in UAE Dirhams, in UAE the functional Dirhams, the currency functional or in currency US Dollars or to in which US Dollars the UAE to which the UAE
AED AED mm 9,519 9,153
factors.
revenue earning revenue and earning borrowing andactivities. borrowing Long activities. term debt Longobligations term debtare obligations mainly are mainly
260 9,153
dnata Consolidated Financial Statements
rate fluctuations ratebetween fluctuations the UAE between Dirham theand UAEother Dirham currencies and other generated currencies from generated Emirates from Emirates
AED m A- to A+
assessed based assessed on thebased counterparty's on the counterparty's financial position, financial past position, experience pastand experience other and other
reference ratesreference based onrates which interest costs interest are determined LIBOR, EIBOR for UAEEIBOR for UAE based on which costs areare determined are LIBOR,
Sensitivity analysis Sensitivity of market analysis riskof market risk
exchange ratesexchange on its financial rates on position its financial and cash position flows. and Exposure cash flows. arises Exposure due to exchange arises due to exchange
Emirates is in Emirates a net payer is inposition a net payer with position respect to with therespect US Dollar to the andUS in Dollar a net surplus and in a net surplus
-
obligations, operating lease rentals and on itsincome cash surpluses. Thesurpluses. key obligations, operating leaseinterest rentalsincome and interest on its cash The key
Emirates is exposed Emiratestois the exposed effectstoofthe fluctuation effects ofin fluctuation the prevailing in the foreign prevailing currency foreign currency
2013
A- to A+
Lower than BBB+ Lower than BBB+
international financial markets with markets respect with to interest on its long international financial respectcost to interest cost term on itsdebt long term debt
rate debt and rate cashdebt surpluses are mainly denominated UAE Dirhams Dollars.and US Dollars. and cash surpluses are mainly in denominated in and UAEUS Dirhams
2013 2014
selling commercial selling aircommercial transportation. air transportation. Emirates uses external Emirates ratings uses external such asratings Standard such&as Standard & to financial exposures institutions. to financial In institutions. the absenceIn ofthe independent absence ofratings, independent credit quality ratings,iscredit quality is
on borrowingsonand investments. arises from interest rate fluctuations the borrowings and Exposure investments. Exposure arises from interest rateinfluctuations in the
Currency risk Currency risk
2014 AA- to AA+
dnata Independent exposures Auditor’s Report
Emirates is exposed to is theexposed effects to of fluctuations the prevailing levels of interest rates Emirates the effects ofinfluctuations in the prevailing levels of interest rates
2013 2013 2014 2014 Effect on Effect Effectonon Effect Effectonon Effect Effectonon Effect on
monitors currency monitors positions currency on apositions regular basis. on a regular basis.
AA- to AA+
from agents
Jet fuel price Jet riskfuel price risk Emirates is exposed Emirates to isvolatility exposedinto the volatility price ofinjet thefuel price andofclosely jet fuelmonitors and closely the actual monitors the actual
their AgencyThe Programme. credit risk suchissales agents is relatively their Agency Programme. credit riskThe associated withassociated such saleswith agents relatively
Financial Information
Emirates Financial financial Commentary
managed through regular analysis ability of counterparties managed through regular analysis of the abilityofofthe counterparties and potential and potential
88%of(2013: 93%)bank of cash and bank balances are held institutions with financial institutions based in 88% (2013: 93%) cash and balances are held with financial based in
Emirates' risk management Emirates' risk procedures management areprocedures designed to areidentify designed andtoanalyse identifythese and risks, analyse these risks, dnata
(ii) Market risk (ii) Market risk
Interest rate risk Interest rate risk
Interest cost Interest cost - 25 basis points - 25 basis points UAE Dirhams UAE Dirhams US Dollars
US Dollars
Others
Others
39
equity profit
profit equity
equity profit
equity
AED AED mm
AED AED mm
AED AED mm
AED m
4
44
94
99
9
33
(64) 33
33 (64)
(97) 33
(97)
-
--
--
(1)-
37
(60) 37
42 (60)
(89) 42
(1) (89)
+ 25 basis points + 25 basis points UAE Dirhams UAE Dirhams US Dollars
US Dollars
Others
Others
country wherecountry exchange where controls exchange and other controls legaland restrictions other legal apply. restrictions apply.
39
profit AED m
40
40
(4)
(4)(4)
(9)(4)
(9)(9)
(9)
(33)
64 (33)
(33) 64
97 (33)
97
-
--
--
1-
(37)
60 (37)
(42) 60
89 (42)
1 89
105
38. Financial 38. riskFinancial management risk management (continued) (continued)
(iii) Liquidity(iii) riskLiquidity risk
2014 2013 2014 2013 Effect on Effect Effecton on Effect Effecton on Effect Effecton on Effect on
Overview
Emirates
dnata
Group
Liquidity risk Liquidity is the risk risk that is the Emirates risk that is unable Emiratesto ismeet unable its to payment meet its obligations payment obligations
equity profit
profit equity
equity profit
equity
are withdrawn.are withdrawn.
AED m
AEDmm AED
AEDmm AED
AEDmm AED
AED m
Emirates liquidity Emirates management liquidity management process as monitored process asbymonitored the senior by management, the senior management, includes the following: includes the following:
- 25 basis points - 25 basis points
(10)
(10) (10)
(10) (15)
(15) (15)
(15)
+ 25 basis points + 25 basis points
10
10 10
10 15
15 15
15
Currency - Pounds Sterling Currency - Pounds Sterling + 1%
+ 1%
2
(27)2
(27) 6
26
2
- 1%
- 1%
(2)
27(2)
27 (6)
(6) (2)
(2)
Currency - Euro Currency - Euro + 1% Financial Information - 1% Emirates Financial Currency Commentary
+ 1%
dnata FinancialCommentary
1%
+ 1%
4
(22)4
(22) 3
(4)3
(4)
- 1%
(4)
22(4)
22 (3)
4(3)
4
CurrencyDollars - Australian Dollars - Australian + 1%
1
(5)1
1(5)
(2)1
(2)
- 1%
(1)
5(1)
(1)5
2(1)
2
Day to day funding, Day to day managed funding, by managed monitoringbyfuture monitoring cash flows future to cash ensure flows thatto ensure that requirements requirements can be met. This can includes be met. This replenishment includes replenishment of funds as they of funds mature. as they mature. Emirates maintains Emirates diversified maintains credit diversified lines to credit enablelines thisto toenable happen. this to happen. Maintaining rolling Maintaining forecasts rolling of Emirates’ forecasts of liquidity Emirates’ position liquidity on the position basis on of the basis of expected cashexpected flows. cash flows. Monitoring liquidity Monitoring ratiosliquidity against ratios internal against standards. internal standards. Maintaining debt Maintaining financingdebt plans. financing plans. Entering into stand-by Entering into credit stand-by facility arrangements. credit facility arrangements.
+ 1%
+ 1%
-
(4)
- (4)
(3)
(3)
- 1%
-
4-
- 4
3-
3
39. Capital management 39. Capital management
Less than
Over 5
1 year 2 - 5 years 1 year 2 - years 5 years
Over 5 Total years
Total
capital structure capital to reduce structure the cost to reduce of capital. the cost of capital.
AED AED mm
AED AED mm
AED m
Borrowings and Borrowings lease liabilities and lease liabilities 5,299
24,277 5,299
20,995 24,277
50,571 20,995
50,571
attributable to attributable the Owner expressed to the Owner as aexpressed percentage asof a percentage average Owner's of average equity.Owner's Emirates equity. Emirates
Derivative financial instruments 405 Derivative financial instruments
405 342
342 12
75912
759
seeks to provide seeks a better to provide returna to better the return Owner to bythe borrowing Owner by andborrowing taking aircraft and taking on aircraft on
Provision for maintenance Provision for maintenance 216 Trade and other payables (excluding Trade and other payables (excluding
216 1,167
1,167 1,087
1,087 2,470
2,470
operating leases operating to meet leases its growth to meet plans. its growth In 2014,plans. Emirates In 2014, achieved Emirates a return achieved on a return on
2014
2014
Emirates monitors Emirates the monitors return ontheOwner's return equity, on Owner's which equity, is defined whichas isthe defined profit as the profit
Owner's equityOwner's funds ofequity 13.6%funds (2013: of10.4%) 13.6% in (2013: comparison 10.4%) in tocomparison an effectiveto interest an effective rate interest rate of 3.2% (2013: of 3.1%) 3.2% on(2013: borrowings. 3.1%) on borrowings.
cargo sales in advance passenger andpassenger cargo salesand in advance otherliabilities) non financial liabilities) and other non and financial 15,127
15,127 287
-287
21,047
21,047 26,073
26,073 22,094
15,414 -
15,414
Emirates also monitors Emirates also capital monitors on the capital basis ofona the gearing basisratio of a which gearing is calculated ratio whichasisthe calculated as the
22,094 69,214
69,214
ratio of borrowings ratio of and borrowings lease liabilities, and lease net of liabilities, cash to net totalofequity. cash toIntotal 2014,equity. this ratio In 2014, is this ratio is 101.6% (2013: 101.6% 69.3%) (2013: and if 69.3%) aircraft and operating if aircraft leases operating are included, leases the are ratio included, is 209.9% the ratio is 209.9%
diversificationdiversification by geography,byprovider, geography, product provider, and term. product and term.
Borrowings and lease liabilities 6,303 Borrowings and lease liabilities
6,303 21,492
21,492 19,829
19,829 47,624
47,624
Summarised below Summarised in the below table is in the the maturity table is the profile maturity of financial profileliabilities of financial andliabilities netand net-
Derivative financial instruments 223 Derivative financial instruments
223 748
748 28
99928
999
settled derivative settled financial derivative liabilities financial based liabilities on thebased remaining on theperiod remaining at theperiod end of at the end of
Provision for maintenance Provision for maintenance 73 Trade and other payables (excluding Trade and other payables (excluding
69473
694 986
986 1,753
1,753
contractual undiscounted contractual undiscounted cash flows. cash flows.
going concerngoing in order concern to provide in order returns to provide for its returns Owner for anditstoOwner maintain andantooptimal maintain an optimal
AED AED mm
2013
reporting period reporting to theperiod contractual to the maturity contractual date.maturity The amounts date. The disclosed amounts aredisclosed the are the
Emirates' objective Emirates' whenobjective managing when capital managing is to safeguard capital is its to ability safeguard to continue its abilityastoa continue as a
AED m
Sources of liquidity Sources are of liquidity regularly are reviewed regularly by reviewed senior management by senior management to maintain to a maintain a
Currency - Japanese Yen Currency - Japanese Yen
Emirates Independent Auditor’s Report - 1%
Less than
associated with associated its financial withliabilities its financial when liabilities they fallwhen due and theyto fallreplace due and funds to replace when they funds when they
profit Interest income Interest income
38. Financial risk 38. management Financial risk management (continued) (continued)
2013
(2013: 186.4%).(2013: 186.4%).
cargo sales in advance passenger andpassenger cargo salesand in advance otherliabilities) non financial liabilities) and other non and financial 13,835
13,835 269
-269
20,434
20,434 23,203
23,203 20,843
14,104 -
14,104
20,843 64,480
64,480
CurrencyDollars - Singapore Dollars Currency - Singapore
Emirates Consolidated Financial Statements + 1%
- 1%
+ 1%
(4)
(4) (4)
(4) (4)
(4) (4)
(4)
- 1%
4
44
44
44
4
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
106
41
41
42
42
107
38. Financial 38. riskFinancial management risk management (continued) (continued)
(iii) Liquidity(iii) riskLiquidity risk
2014 2013 2014 2013 Effect on Effect Effecton on Effect Effecton on Effect Effecton on Effect on
Overview
Emirates
dnata
Group
Liquidity risk Liquidity is the risk risk that is the Emirates risk that is unable Emiratesto ismeet unable its to payment meet its obligations payment obligations
equity profit
profit equity
equity profit
equity
are withdrawn.are withdrawn.
AED m
AEDmm AED
AEDmm AED
AEDmm AED
AED m
Emirates liquidity Emirates management liquidity management process as monitored process asbymonitored the senior by management, the senior management, includes the following: includes the following:
- 25 basis points - 25 basis points
(10)
(10) (10)
(10) (15)
(15) (15)
(15)
+ 25 basis points + 25 basis points
10
10 10
10 15
15 15
15
Currency - Pounds Sterling Currency - Pounds Sterling + 1%
+ 1%
2
(27)2
(27) 6
26
2
- 1%
- 1%
(2)
27(2)
27 (6)
(6) (2)
(2)
Currency - Euro Currency - Euro + 1% Financial Information - 1% Emirates Financial Currency Commentary
+ 1%
dnata FinancialCommentary
1%
+ 1%
4
(22)4
(22) 3
(4)3
(4)
- 1%
(4)
22(4)
22 (3)
4(3)
4
CurrencyDollars - Australian Dollars - Australian + 1%
1
(5)1
1(5)
(2)1
(2)
- 1%
(1)
5(1)
(1)5
2(1)
2
Day to day funding, Day to day managed funding, by managed monitoringbyfuture monitoring cash flows future to cash ensure flows thatto ensure that requirements requirements can be met. This can includes be met. This replenishment includes replenishment of funds as they of funds mature. as they mature. Emirates maintains Emirates diversified maintains credit diversified lines to credit enablelines thisto toenable happen. this to happen. Maintaining rolling Maintaining forecasts rolling of Emirates’ forecasts of liquidity Emirates’ position liquidity on the position basis on of the basis of expected cashexpected flows. cash flows. Monitoring liquidity Monitoring ratiosliquidity against ratios internal against standards. internal standards. Maintaining debt Maintaining financingdebt plans. financing plans. Entering into stand-by Entering into credit stand-by facility arrangements. credit facility arrangements.
+ 1%
+ 1%
-
(4)
- (4)
(3)
(3)
- 1%
-
4-
- 4
3-
3
39. Capital management 39. Capital management
Less than
Over 5
1 year 2 - 5 years 1 year 2 - years 5 years
Over 5 Total years
Total
capital structure capital to reduce structure the cost to reduce of capital. the cost of capital.
AED AED mm
AED AED mm
AED m
Borrowings and Borrowings lease liabilities and lease liabilities 5,299
24,277 5,299
20,995 24,277
50,571 20,995
50,571
attributable to attributable the Owner expressed to the Owner as aexpressed percentage asof a percentage average Owner's of average equity.Owner's Emirates equity. Emirates
Derivative financial instruments 405 Derivative financial instruments
405 342
342 12
75912
759
seeks to provide seeks a better to provide returna to better the return Owner to bythe borrowing Owner by andborrowing taking aircraft and taking on aircraft on
Provision for maintenance Provision for maintenance 216 Trade and other payables (excluding Trade and other payables (excluding
216 1,167
1,167 1,087
1,087 2,470
2,470
operating leases operating to meet leases its growth to meet plans. its growth In 2014,plans. Emirates In 2014, achieved Emirates a return achieved on a return on
2014
2014
Emirates monitors Emirates the monitors return ontheOwner's return equity, on Owner's which equity, is defined whichas isthe defined profit as the profit
Owner's equityOwner's funds ofequity 13.6%funds (2013: of10.4%) 13.6% in (2013: comparison 10.4%) in tocomparison an effectiveto interest an effective rate interest rate of 3.2% (2013: of 3.1%) 3.2% on(2013: borrowings. 3.1%) on borrowings.
cargo sales in advance passenger andpassenger cargo salesand in advance otherliabilities) non financial liabilities) and other non and financial 15,127
15,127 287
-287
21,047
21,047 26,073
26,073 22,094
15,414 -
15,414
Emirates also monitors Emirates also capital monitors on the capital basis ofona the gearing basisratio of a which gearing is calculated ratio whichasisthe calculated as the
22,094 69,214
69,214
ratio of borrowings ratio of and borrowings lease liabilities, and lease net of liabilities, cash to net totalofequity. cash toIntotal 2014,equity. this ratio In 2014, is this ratio is 101.6% (2013: 101.6% 69.3%) (2013: and if 69.3%) aircraft and operating if aircraft leases operating are included, leases the are ratio included, is 209.9% the ratio is 209.9%
diversificationdiversification by geography,byprovider, geography, product provider, and term. product and term.
Borrowings and lease liabilities 6,303 Borrowings and lease liabilities
6,303 21,492
21,492 19,829
19,829 47,624
47,624
Summarised below Summarised in the below table is in the the maturity table is the profile maturity of financial profileliabilities of financial andliabilities netand net-
Derivative financial instruments 223 Derivative financial instruments
223 748
748 28
99928
999
settled derivative settled financial derivative liabilities financial based liabilities on thebased remaining on theperiod remaining at theperiod end of at the end of
Provision for maintenance Provision for maintenance 73 Trade and other payables (excluding Trade and other payables (excluding
69473
694 986
986 1,753
1,753
contractual undiscounted contractual undiscounted cash flows. cash flows.
going concerngoing in order concern to provide in order returns to provide for its returns Owner for anditstoOwner maintain andantooptimal maintain an optimal
AED AED mm
2013
reporting period reporting to theperiod contractual to the maturity contractual date.maturity The amounts date. The disclosed amounts aredisclosed the are the
Emirates' objective Emirates' whenobjective managing when capital managing is to safeguard capital is its to ability safeguard to continue its abilityastoa continue as a
AED m
Sources of liquidity Sources are of liquidity regularly are reviewed regularly by reviewed senior management by senior management to maintain to a maintain a
Currency - Japanese Yen Currency - Japanese Yen
Emirates Independent Auditor’s Report - 1%
Less than
associated with associated its financial withliabilities its financial when liabilities they fallwhen due and theyto fallreplace due and funds to replace when they funds when they
profit Interest income Interest income
38. Financial risk 38. management Financial risk management (continued) (continued)
2013
(2013: 186.4%).(2013: 186.4%).
cargo sales in advance passenger andpassenger cargo salesand in advance otherliabilities) non financial liabilities) and other non and financial 13,835
13,835 269
-269
20,434
20,434 23,203
23,203 20,843
14,104 -
14,104
20,843 64,480
64,480
CurrencyDollars - Singapore Dollars Currency - Singapore
Emirates Consolidated Financial Statements + 1%
- 1%
+ 1%
(4)
(4) (4)
(4) (4)
(4) (4)
(4)
- 1%
4
44
44
44
4
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
106
41
41
42
42
107
Independent Auditor’s Report to the Owner of dnata Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Report on the consolidated financial statements We have audited the accompanying consolidated financial statements of dnata and its subsidiaries (together referred to as “dnata”), which comprise the consolidated statement of financial position as of 31 March 2014 and the consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. Management’s responsibility for the consolidated financial statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. .
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of dnata as of 31 March 2014, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. PricewaterhouseCoopers 1 May 2014
Paul Suddaby Registered Auditor Number 309 Dubai, United Arab Emirates
Additional Information
108
109
Independent Auditor’s Report to the Owner of dnata Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Report on the consolidated financial statements We have audited the accompanying consolidated financial statements of dnata and its subsidiaries (together referred to as “dnata”), which comprise the consolidated statement of financial position as of 31 March 2014 and the consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. Management’s responsibility for the consolidated financial statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. .
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of dnata as of 31 March 2014, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. PricewaterhouseCoopers 1 May 2014
Paul Suddaby Registered Auditor Number 309 Dubai, United Arab Emirates
Additional Information
108
109
dnata dnata
dnata
Consolidated Income Statement CONSOLIDATED INCOME STATEMENT for the year ended 31 March 2014 dnata FOR THE YEAR ENDED 31 MARCH 2014
Consolidated Statement of Financial Position ASMARCH AT MARCH 2014 2014 as at3131 March AS AT 31 2014 CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED INCOME STATEMENT
Note
FOR THE YEAR ENDED 31 MARCH 2014
Note 5
Revenue Other operating income Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
Operating Revenue costs Operating profitincome Other operating
6 5
Finance income Operating costs Finance costs Operating profit
6
Share ofincome results of investments accounted for using the equity method Finance Profit before Finance costs income tax Income expense Share oftax results of investments accounted for using the equity method Profit from discontinued operations Profit before income tax
Profit for year Income taxthe expense Profit attributable to non-controlling Profit from discontinued operations interests
10 7 10 7
Profit for attributable Profit the year to dnata's Owner
2014
2013
AED m
AED m
2014 7,448 AED m 117
2013 6,536 AED86 m
(6,702) 7,448 863 117
(5,807) 6,536 815 86
37 (6,702) (40) 863 56 37 916 (40)
(50) 56 916
866 (50) 37 -
43 (5,807) (41) 815 22 43 839 (41)
(38) 22 53 839
854 (38) 35 53
829 866
819 854
37
35
Consolidated Statement of Comprehensive Income Profit for the year CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 March 2014 FOR ENDED 31 MARCHto 2014 ItemsTHE thatYEAR will not be reclassified the consolidated income statement
829
819
866
854
of retirement benefit obligations net of deferred tax Profit Remeasurement for the year Share of other comprehensive income of investments accounted for using equity Items that will not be reclassified to the consolidated income statement method net of deferred tax Remeasurement of retirement benefit obligations net of deferred tax Items Share that may be reclassified subsequently the consolidated income statement of other comprehensive income of to investments accounted for using equity Currency translation differences method net of deferred tax Net investment hedge Items that may be reclassified subsequently to the consolidated income statement Share of other comprehensive income of investment accounted for using equity Currency translation differences method net of deferred tax Net investment hedge Other comprehensive income Share of other comprehensive income of investment accounted for using equity Total comprehensive incometax for the year method net of deferred
8 866
(59) 854
10
(36) 8
(20) (59)
10 20
43 (36) (15)
(55) (20) 12
10 20
43 13 (15) 13
(55) 2 12 (120)
879 13 39 13
734 2 35 (120) 699 734
Profit attributable STATEMENT to non-controlling interests CONSOLIDATED OF COMPREHENSIVE INCOME Profit attributable to dnata's Owner FOR THE YEAR ENDED 31 MARCH 2014
Total income attributable to non-controlling interests Othercomprehensive comprehensive income Total Total comprehensive comprehensive income income attributable for the year to dnata's Owner
from continuing operations Total comprehensive income attributable to non-controlling interests from discontinued operations Total comprehensive income attributable to dnata's Owner
Notes to 31 formoperations an integral part of these consolidated financial statements. from1continuing from discontinued operations
10
840 879 840 39 840
646 35 53 699
840
646
-
53
Note
Note 2014
2014 2013
2013
Note
Note 2014
2014 2013
2013
AED m AED m AED m AED m
AED m AED m AED m AED m AND LIABILITIES EQUITY EQUITY AND LIABILITIES Capital and Capital and reservesreserves
ASSETS ASSETS Non-current Non-current assets assets plant and equipment Property,Property, plant and equipment Intangible Intangible assets assets
8
9 Investments accounted themethod equity method Investments accounted for usingfor theusing equity 10 lease rentals AdvanceAdvance lease rentals 11 income tax assets DeferredDeferred income tax assets Trade and other receivables Trade and other receivables
8 1,416 9 2,369 10
487
1,830
487 533 25 26
533
11
25
22
33
33
11
11
13
13
34
34
35
35
12
12
Trade and other receivables Trade and other receivables Income Income tax assettax asset
13
13 1,783
Short term bank deposits Short term bank deposits cash equivalents Cash andCash cashand equivalents
26
84 2
26
Total assets Total assets
2,369 1,830
26
4,3643,594 84
72
1,783 1,509
1,509
-
4,303
846 1,932 1,588 464 4,3033,977
3,977
8,667
8,6677,571
7,571
846 26 1,588
14
Total equity Total equity Non-current liabilities Non-current liabilities Trade and other Trade and other payablespayables
1,932 464
4,580
4,580 3,976
3,976
4,674
4,028
82
4,6744,028 82 69
4,756
4,7564,097
4,097
185 166 570 638
166
(24) 14
Attributable to dnata's Attributable to dnata's Owner Owner Non-controlling interests Non-controlling interests
3,594
(23)
55
63 63 (24) (23) 55 12
63
Other reserves Other reserves RetainedRetained earningsearnings
26
72
2
Capital Capital Capital reserve Capital reserve
1,159
22
4,364 Current Current assets assets Inventories Inventories
1,416 1,159
15
15
185
Borrowings and lease liabilities Borrowings and lease liabilities income tax liabilities DeferredDeferred income tax liabilities
19
19
570
22
22
131
Provisions Provisions
16
16
500
liabilities Current Current liabilities Trade and other payables Trade and other payables
15
12
69
638
1,386
131 108 500 439 1,3861,351
1,351
15 2,205
2,205 1,885
1,885
Income tax liabilities Income tax liabilities Borrowings and lease liabilities Borrowings and lease liabilities
19
19
Provisions Provisions
16
16
19
108 439
15
15
296 204 5 19
204 2,123
3,911
2,5252,123 3,9113,474
8,667
8,6677,571
7,571
19 296 5 2,525
Total liabilities Total liabilities Totaland equity and liabilities Total equity liabilities
63
19 3,474
The consolidated statements were approved 1 May andby: signed by: The consolidated financialfinancial statements were approved on 1 Mayon2014 and2014 signed
1 to 31 an part integral part of these consolidated statements. Notes 1 Notes to 31 form an form integral of these consolidated financialfinancial statements.
Sheikh bin Ahmed binAl-Maktoum Saeed Al-Maktoum Sheikh Ahmed Saeed
Gary Chapman Gary Chapman
Chairman and Chief Executive Chairman and Chief Executive
PresidentPresident
c
2
President
2
Notes 1 to 31 form an integral part of these consolidated financial statements.
110
c
c
c
c
111
dnata dnata
dnata
Consolidated Income Statement CONSOLIDATED INCOME STATEMENT for the year ended 31 March 2014 dnata FOR THE YEAR ENDED 31 MARCH 2014
Consolidated Statement of Financial Position ASMARCH AT MARCH 2014 2014 as at3131 March AS AT 31 2014 CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED INCOME STATEMENT
Note
FOR THE YEAR ENDED 31 MARCH 2014
Note 5
Revenue Other operating income Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
Operating Revenue costs Operating profitincome Other operating
6 5
Finance income Operating costs Finance costs Operating profit
6
Share ofincome results of investments accounted for using the equity method Finance Profit before Finance costs income tax Income expense Share oftax results of investments accounted for using the equity method Profit from discontinued operations Profit before income tax
Profit for year Income taxthe expense Profit attributable to non-controlling Profit from discontinued operations interests
10 7 10 7
Profit for attributable Profit the year to dnata's Owner
2014
2013
AED m
AED m
2014 7,448 AED m 117
2013 6,536 AED86 m
(6,702) 7,448 863 117
(5,807) 6,536 815 86
37 (6,702) (40) 863 56 37 916 (40)
(50) 56 916
866 (50) 37 -
43 (5,807) (41) 815 22 43 839 (41)
(38) 22 53 839
854 (38) 35 53
829 866
819 854
37
35
Consolidated Statement of Comprehensive Income Profit for the year CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 March 2014 FOR ENDED 31 MARCHto 2014 ItemsTHE thatYEAR will not be reclassified the consolidated income statement
829
819
866
854
of retirement benefit obligations net of deferred tax Profit Remeasurement for the year Share of other comprehensive income of investments accounted for using equity Items that will not be reclassified to the consolidated income statement method net of deferred tax Remeasurement of retirement benefit obligations net of deferred tax Items Share that may be reclassified subsequently the consolidated income statement of other comprehensive income of to investments accounted for using equity Currency translation differences method net of deferred tax Net investment hedge Items that may be reclassified subsequently to the consolidated income statement Share of other comprehensive income of investment accounted for using equity Currency translation differences method net of deferred tax Net investment hedge Other comprehensive income Share of other comprehensive income of investment accounted for using equity Total comprehensive incometax for the year method net of deferred
8 866
(59) 854
10
(36) 8
(20) (59)
10 20
43 (36) (15)
(55) (20) 12
10 20
43 13 (15) 13
(55) 2 12 (120)
879 13 39 13
734 2 35 (120) 699 734
Profit attributable STATEMENT to non-controlling interests CONSOLIDATED OF COMPREHENSIVE INCOME Profit attributable to dnata's Owner FOR THE YEAR ENDED 31 MARCH 2014
Total income attributable to non-controlling interests Othercomprehensive comprehensive income Total Total comprehensive comprehensive income income attributable for the year to dnata's Owner
from continuing operations Total comprehensive income attributable to non-controlling interests from discontinued operations Total comprehensive income attributable to dnata's Owner
Notes to 31 formoperations an integral part of these consolidated financial statements. from1continuing from discontinued operations
10
840 879 840 39 840
646 35 53 699
840
646
-
53
Note
Note 2014
2014 2013
2013
Note
Note 2014
2014 2013
2013
AED m AED m AED m AED m
AED m AED m AED m AED m AND LIABILITIES EQUITY EQUITY AND LIABILITIES Capital and Capital and reservesreserves
ASSETS ASSETS Non-current Non-current assets assets plant and equipment Property,Property, plant and equipment Intangible Intangible assets assets
8
9 Investments accounted themethod equity method Investments accounted for usingfor theusing equity 10 lease rentals AdvanceAdvance lease rentals 11 income tax assets DeferredDeferred income tax assets Trade and other receivables Trade and other receivables
8 1,416 9 2,369 10
487
1,830
487 533 25 26
533
11
25
22
33
33
11
11
13
13
34
34
35
35
12
12
Trade and other receivables Trade and other receivables Income Income tax assettax asset
13
13 1,783
Short term bank deposits Short term bank deposits cash equivalents Cash andCash cashand equivalents
26
84 2
26
Total assets Total assets
2,369 1,830
26
4,3643,594 84
72
1,783 1,509
1,509
-
4,303
846 1,932 1,588 464 4,3033,977
3,977
8,667
8,6677,571
7,571
846 26 1,588
14
Total equity Total equity Non-current liabilities Non-current liabilities Trade and other Trade and other payablespayables
1,932 464
4,580
4,580 3,976
3,976
4,674
4,028
82
4,6744,028 82 69
4,756
4,7564,097
4,097
185 166 570 638
166
(24) 14
Attributable to dnata's Attributable to dnata's Owner Owner Non-controlling interests Non-controlling interests
3,594
(23)
55
63 63 (24) (23) 55 12
63
Other reserves Other reserves RetainedRetained earningsearnings
26
72
2
Capital Capital Capital reserve Capital reserve
1,159
22
4,364 Current Current assets assets Inventories Inventories
1,416 1,159
15
15
185
Borrowings and lease liabilities Borrowings and lease liabilities income tax liabilities DeferredDeferred income tax liabilities
19
19
570
22
22
131
Provisions Provisions
16
16
500
liabilities Current Current liabilities Trade and other payables Trade and other payables
15
12
69
638
1,386
131 108 500 439 1,3861,351
1,351
15 2,205
2,205 1,885
1,885
Income tax liabilities Income tax liabilities Borrowings and lease liabilities Borrowings and lease liabilities
19
19
Provisions Provisions
16
16
19
108 439
15
15
296 204 5 19
204 2,123
3,911
2,5252,123 3,9113,474
8,667
8,6677,571
7,571
19 296 5 2,525
Total liabilities Total liabilities Totaland equity and liabilities Total equity liabilities
63
19 3,474
The consolidated statements were approved 1 May andby: signed by: The consolidated financialfinancial statements were approved on 1 Mayon2014 and2014 signed
1 to 31 an part integral part of these consolidated statements. Notes 1 Notes to 31 form an form integral of these consolidated financialfinancial statements.
Sheikh bin Ahmed binAl-Maktoum Saeed Al-Maktoum Sheikh Ahmed Saeed
Gary Chapman Gary Chapman
Chairman and Chief Executive Chairman and Chief Executive
PresidentPresident
c
2
President
2
Notes 1 to 31 form an integral part of these consolidated financial statements.
110
c
c
c
c
111
dnata
dnata Consolidated Statement of Changes in Equity CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 March 2014 FOR THE YEAR ENDED 31 MARCH 2014
Attributable to dnata's Owner
Note
Overview
1 April 2012 Currency translation differences
Retained
controlling
Total
reserves
earnings
Total
interests
equity
AED m
AED m
AED m
AED m
AED m
AED m
AED m
63
(14)
52
3,513
3,614
69
3,683
(55)
-
(55)
-
(55)
-
12
-
12
-
12
-
-
-
(59)
(59)
-
(59)
Other comprehensive income
-
-
1 (42)
(19) (78)
(18) (120)
-
(18) (120)
Profit for the year
-
-
-
819
819
35
854
Total comprehensive income
-
-
(42)
741
699
35
734
dnata
Emirates Financial Commentary
Other
reserve
-
Remeasurement of retirement benefit obligations net of deferred tax Share of other comprehensive income of investment accounted for using
Financial Information
Capital Capital
-
Net investment hedge
Group
Note
Non-
-
Emirates
20
the equity method net of deferred tax
10
Dividends
-
-
-
(260)
(260)
(38)
(298)
Non-controlling interest on acquisition of a subsidiary
30
-
-
-
-
-
3
3
Option to acquire non-controlling interest
30
-
(9)
-
-
(9)
-
-
(9)
-
Transactions with owners
(260)
(269)
(35)
(9) (304)
Share of other equity movements of investment accounted for using the dnata Financial Commentary
equity method
10
63
(23)
-
-
41
-
41
-
-
(15)
-
(15)
-
(15)
-
-
-
8
8
-
8
-
(1) (1)
14 40
(36) (28)
(23) 11
2
(23) 13
Profit for the year
-
-
-
829
829
37
866
Total comprehensive income
-
(1)
40
801
840
39
879
Dividends
-
-
-
(200)
(200)
(27)
(227)
-
-
-
-
-
1
1
-
-
-
(200)
(200)
(26)
(226)
63
(24)
3 55
3 4,580
6 4,674
82
6 4,756
31 March 2013 Currency translation differences
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Net investment hedge
20
Remeasurement of retirement benefit obligations net of deferred tax Share of other comprehensive income of investments accounted for 10
using the equity method net of deferred tax Other comprehensive income
Non-controlling interest on acquisition of a subsidiary
dnata
Consolidated Statement of Cash Flows CONSOLIDATED STATEMENT CASH FLOWS CONSOLIDATED STATEMENT OF CASHOF FLOWS FOR THE YEAR ENDED 31 MARCH for the year ended March 2014 FOR THE YEAR ENDED 31 MARCH 2014312014
30
Transactions with owners
2 12
(18) 3,976
(16) 4,028
69 2
(16) 4,097 43
Note2014
20142013
2013
Note
Note2014
Investing Investing activitiesactivities Additions to property, and equipment Additions to property, plant andplant equipment
Operating Operating activitiesactivities Profitincome beforetax income tax including discontinued Profit before including discontinued operations operations Adjustments for: Adjustments for: Depreciation and amortisation Depreciation and amortisation
916 8,9
Finance Finance cost - netcost - net Amortisation of advance lease rentals Amortisation of advance lease rentals
8,9 353 3
11
of investments accounted for Share of Share resultsofofresults investments accounted for the equity method using theusing equity method Gain on of dilution of investment in an associate Gain on dilution investment in an associate Lossof onproperty, sale of property, and equipment Loss on sale plant andplant equipment Gainof ondiscontinued sale of discontinued operations Gain on sale operations
10
Net provision for impairment of trade receivables13 Net provision for impairment of trade receivables for employee ProvisionProvision for employee benefits benefits 6 Employee benefit payments Employee benefit payments Income Income tax paid tax paid
11 10
1 (56) 10 -
13 11 6 146 (113) (75)
Change in inventories Change in inventories Change in trade and other receivables Change in trade and other receivables
(6) (85)
Change in provisions, and other payables Change in provisions, trade andtrade other payables cash generated from operating Net cashNet generated from operating activitiesactivities
20 1,125
916 907 353 344 3 2 1
1
(56) (22) (8) 10 20 - (20) 11
907
8 to intangible AdditionsAdditions to intangible assets assets 9 sale of property, and equipment ProceedsProceeds from salefrom of property, plant andplant equipment
344
Investments in associates joint ventures Investments in associates and jointand ventures
1 (22) (8)
from discontinued operations ProceedsProceeds from discontinued operations related- parties - net Loans to Loans relatedtoparties net
20
Movement in short term bank deposits Movement in short term bank deposits Finance income Finance income
(20) (2)
146 115 (113) (70) (75) (71)
115
(6)
7
(33) 26
10 5 30 (328) 28
26
26 1,086 33
cash generated from in) / (used in) investing Net cashNet generated from / (used investing activitiesactivities
(70)
8 (495) 9
(6)
Dividends from investments accounted Dividends from investments accounted for usingfor using equity method equity method 10 Acquisition of subsidiaries Acquisition of subsidiaries 30
2
(2)
20142013
2013
AED m AED m AED m AED m
AED m AED m AED m AED m
316
(495) (371)
(371)
(33) (68) 26 7
(68)
(6)
-
5 28 (328) (20) 20
7 28 (20) 20
28 (87) (87) 1,086(1,451) (1,451) 33 32 32 316 (1,910) (1,910)
Financing Financing activitiesactivities
(71)
Net movement in term loans Net movement in term loans lease liabilities Net leaseNet liabilities
7
(85) (78) (78) 20 37 37 1,1251,162 1,162
20
20 (121)
(121) 64 (2) 20
64 (39)
(27)
(33) (39) (27) (38)
(260)
(260) (350)
(350)
(443)
(443)(343)
(343)
(2)
Finance cost Finance cost Dividends paid to non-controlling Dividends paid to non-controlling interests interests
(33)
Dividends paid toOwner dnata's Owner Dividends paid to dnata's cash used in financing Net cashNet used in financing activitiesactivities
20 (38)
Net increase / (decrease) in cash cash equivalents Net increase / (decrease) in cash and cashand equivalents
998
998 (1,091) (1,091)
cash equivalents at beginning Cash andCash cashand equivalents at beginning of year of year of exchange rate changes Effects ofEffects exchange rate changes
385
3851,492 33 (16)
cash equivalents end of year Cash andCash cashand equivalents at end ofatyear
33 26
261,416
1,416 385
1,492 (16) 385
Notes 1 to an 31 integral form an part integral part of these consolidated statements. Notes 1 to 31 form of these consolidated financial financial statements.
Share of other equity movements of investment accounted for using the Additional Information
equity method
10
31 March 2014
4
4
Capital represents permanent capital of dnata. Capital reserve includes the difference between the carrying value of the non-controlling interest acquired and the fair value of the consideration paid. It also includes the fair value of the option issued by dnata to acquire the non-controlling interest in a subsidiary company. Notes 1 to 31 form an integral part of these consolidated financial statements. 112
c
c
c
c
113
dnata
dnata Consolidated Statement of Changes in Equity CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 March 2014 FOR THE YEAR ENDED 31 MARCH 2014
Attributable to dnata's Owner
Note
Overview
1 April 2012 Currency translation differences
Retained
controlling
Total
reserves
earnings
Total
interests
equity
AED m
AED m
AED m
AED m
AED m
AED m
AED m
63
(14)
52
3,513
3,614
69
3,683
(55)
-
(55)
-
(55)
-
12
-
12
-
12
-
-
-
(59)
(59)
-
(59)
Other comprehensive income
-
-
1 (42)
(19) (78)
(18) (120)
-
(18) (120)
Profit for the year
-
-
-
819
819
35
854
Total comprehensive income
-
-
(42)
741
699
35
734
dnata
Emirates Financial Commentary
Other
reserve
-
Remeasurement of retirement benefit obligations net of deferred tax Share of other comprehensive income of investment accounted for using
Financial Information
Capital Capital
-
Net investment hedge
Group
Note
Non-
-
Emirates
20
the equity method net of deferred tax
10
Dividends
-
-
-
(260)
(260)
(38)
(298)
Non-controlling interest on acquisition of a subsidiary
30
-
-
-
-
-
3
3
Option to acquire non-controlling interest
30
-
(9)
-
-
(9)
-
-
(9)
-
Transactions with owners
(260)
(269)
(35)
(9) (304)
Share of other equity movements of investment accounted for using the dnata Financial Commentary
equity method
10
63
(23)
-
-
41
-
41
-
-
(15)
-
(15)
-
(15)
-
-
-
8
8
-
8
-
(1) (1)
14 40
(36) (28)
(23) 11
2
(23) 13
Profit for the year
-
-
-
829
829
37
866
Total comprehensive income
-
(1)
40
801
840
39
879
Dividends
-
-
-
(200)
(200)
(27)
(227)
-
-
-
-
-
1
1
-
-
-
(200)
(200)
(26)
(226)
63
(24)
3 55
3 4,580
6 4,674
82
6 4,756
31 March 2013 Currency translation differences
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Net investment hedge
20
Remeasurement of retirement benefit obligations net of deferred tax Share of other comprehensive income of investments accounted for 10
using the equity method net of deferred tax Other comprehensive income
Non-controlling interest on acquisition of a subsidiary
dnata
Consolidated Statement of Cash Flows CONSOLIDATED STATEMENT CASH FLOWS CONSOLIDATED STATEMENT OF CASHOF FLOWS FOR THE YEAR ENDED 31 MARCH for the year ended March 2014 FOR THE YEAR ENDED 31 MARCH 2014312014
30
Transactions with owners
2 12
(18) 3,976
(16) 4,028
69 2
(16) 4,097 43
Note2014
20142013
2013
Note
Note2014
Investing Investing activitiesactivities Additions to property, and equipment Additions to property, plant andplant equipment
Operating Operating activitiesactivities Profitincome beforetax income tax including discontinued Profit before including discontinued operations operations Adjustments for: Adjustments for: Depreciation and amortisation Depreciation and amortisation
916 8,9
Finance Finance cost - netcost - net Amortisation of advance lease rentals Amortisation of advance lease rentals
8,9 353 3
11
of investments accounted for Share of Share resultsofofresults investments accounted for the equity method using theusing equity method Gain on of dilution of investment in an associate Gain on dilution investment in an associate Lossof onproperty, sale of property, and equipment Loss on sale plant andplant equipment Gainof ondiscontinued sale of discontinued operations Gain on sale operations
10
Net provision for impairment of trade receivables13 Net provision for impairment of trade receivables for employee ProvisionProvision for employee benefits benefits 6 Employee benefit payments Employee benefit payments Income Income tax paid tax paid
11 10
1 (56) 10 -
13 11 6 146 (113) (75)
Change in inventories Change in inventories Change in trade and other receivables Change in trade and other receivables
(6) (85)
Change in provisions, and other payables Change in provisions, trade andtrade other payables cash generated from operating Net cashNet generated from operating activitiesactivities
20 1,125
916 907 353 344 3 2 1
1
(56) (22) (8) 10 20 - (20) 11
907
8 to intangible AdditionsAdditions to intangible assets assets 9 sale of property, and equipment ProceedsProceeds from salefrom of property, plant andplant equipment
344
Investments in associates joint ventures Investments in associates and jointand ventures
1 (22) (8)
from discontinued operations ProceedsProceeds from discontinued operations related- parties - net Loans to Loans relatedtoparties net
20
Movement in short term bank deposits Movement in short term bank deposits Finance income Finance income
(20) (2)
146 115 (113) (70) (75) (71)
115
(6)
7
(33) 26
10 5 30 (328) 28
26
26 1,086 33
cash generated from in) / (used in) investing Net cashNet generated from / (used investing activitiesactivities
(70)
8 (495) 9
(6)
Dividends from investments accounted Dividends from investments accounted for usingfor using equity method equity method 10 Acquisition of subsidiaries Acquisition of subsidiaries 30
2
(2)
20142013
2013
AED m AED m AED m AED m
AED m AED m AED m AED m
316
(495) (371)
(371)
(33) (68) 26 7
(68)
(6)
-
5 28 (328) (20) 20
7 28 (20) 20
28 (87) (87) 1,086(1,451) (1,451) 33 32 32 316 (1,910) (1,910)
Financing Financing activitiesactivities
(71)
Net movement in term loans Net movement in term loans lease liabilities Net leaseNet liabilities
7
(85) (78) (78) 20 37 37 1,1251,162 1,162
20
20 (121)
(121) 64 (2) 20
64 (39)
(27)
(33) (39) (27) (38)
(260)
(260) (350)
(350)
(443)
(443)(343)
(343)
(2)
Finance cost Finance cost Dividends paid to non-controlling Dividends paid to non-controlling interests interests
(33)
Dividends paid toOwner dnata's Owner Dividends paid to dnata's cash used in financing Net cashNet used in financing activitiesactivities
20 (38)
Net increase / (decrease) in cash cash equivalents Net increase / (decrease) in cash and cashand equivalents
998
998 (1,091) (1,091)
cash equivalents at beginning Cash andCash cashand equivalents at beginning of year of year of exchange rate changes Effects ofEffects exchange rate changes
385
3851,492 33 (16)
cash equivalents end of year Cash andCash cashand equivalents at end ofatyear
33 26
261,416
1,416 385
1,492 (16) 385
Notes 1 to an 31 integral form an part integral part of these consolidated statements. Notes 1 to 31 form of these consolidated financial financial statements.
Share of other equity movements of investment accounted for using the Additional Information
equity method
10
31 March 2014
4
4
Capital represents permanent capital of dnata. Capital reserve includes the difference between the carrying value of the non-controlling interest acquired and the fair value of the consideration paid. It also includes the fair value of the option issued by dnata to acquire the non-controlling interest in a subsidiary company. Notes 1 to 31 form an integral part of these consolidated financial statements. 112
c
c
c
c
113
NotesTOtoTHE the Consolidated Financial Statements NOTES NOTES TO THE CONSOLIDATED CONSOLIDATED FINANCIAL FINANCIAL STATEMENTS STATEMENTS FOR 31 2014 for THE theYEAR yearENDED ended 31 March FOR THE YEAR ENDED 31 MARCH MARCH 2014 2014 1. 1. General General information information
Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata dnata comprises comprises dnata dnata (“the (“the parent parent company”) company”) and and its its subsidiaries. subsidiaries. dnata dnata was was incorporated in the emirate of Dubai, UAE with limited liability, under an Emiri incorporated in the emirate of Dubai, UAE with limited liability, under an Emiri Decree Decree issued issued by by H.H. H.H. Sheikh Sheikh Maktoum Maktoum bin bin Rashid Rashid Al-Maktoum Al-Maktoum on on 4 4 April April 1987. 1987. On On that that date, date, the total assets and liabilities of Dubai National Air Travel Agency were transferred the total assets and liabilities of Dubai National Air Travel Agency were transferred to to dnata, with with effect effect from from 1 1 April April 1987, 1987, for for nil nil consideration. consideration. dnata dnata is is wholly wholly owned owned by by the the dnata, Investment Investment Corporation Corporation of of Dubai, Dubai, a a Government Government of of Dubai Dubai entity. entity. dnata dnata is is incorporated incorporated and and domiciled domiciled in in Dubai, Dubai, UAE. UAE. The The address address of of its its registered registered office office is is Dnata Travel Centre, PO Box 1515, Dubai, UAE. Dnata Travel Centre, PO Box 1515, Dubai, UAE. The The main main activities activities of of dnata dnata comprise: comprise:
aircraft aircraft handling handling and and engineering engineering services services handling services for export handling services for export and and import import cargo cargo inflight catering catering inflight information information technology technology services services representing airlines airlines as as their their general general sales sales agent agent representing travel travel agency agency and and other other travel travel related related services services
2. 2. Summary Summary of of significant significant accounting accounting policies policies A summary summary of of the the significant significant accounting accounting policies, policies, which which have have been been applied applied consistently consistently A in in the the preparation preparation of of these these consolidated consolidated financial financial statements, statements, is is set set out out below. below. Basis Basis of of preparation preparation The consolidated consolidated financial financial statements statements have have been been prepared prepared in in accordance accordance with with The International International Financial Financial Reporting Reporting Standards Standards (IFRS) (IFRS) and and IFRS IFRS Interpretations Interpretations Committee Committee (IFRS IC). IC). The The consolidated consolidated financial financial statements statements are are prepared prepared under under the the historical historical cost cost (IFRS convention convention except except for for revaluation revaluation of of certain certain financial financial assets assets and and liabilities liabilities at at fair fair value value through through profit profit or or loss. loss.
Standards and and amendments amendments to to published published standards standards that that are are relevant relevant to to dnata’s dnata’s Standards operations operations Effective Effective and and adopted adopted in in the the current current year year At At the the date date of of authorisation authorisation of of these these consolidated consolidated financial financial statements, statements, certain certain new new standards and amendments to the existing standards have been published standards and amendments to the existing standards have been published and and are are mandatory for for the the current current accounting accounting period. period. These These did did not not have have a a material material impact impact on on mandatory the the consolidated consolidated financial financial statements statements and and are are set set out out below: below: IAS IAS 1 1 (revised), (revised), Presentation Presentation of of Financial Financial Statements Statements (effective (effective from from 1 1 July July 2012) 2012) IAS 19 (revised), Employee Benefits (effective from 1 January 2013) IAS 19 (revised), Employee Benefits (effective from 1 January 2013) IAS 28 28 (revised), (revised), Investments Investments in in Associates Associates and and Joint Joint Ventures Ventures (effective (effective from from 1 1 IAS January January 2013) 2013) IFRS 10, 10, Consolidated Consolidated Financial Financial Statements Statements (effective (effective from from 1 1 January January 2013) 2013) IFRS IFRS IFRS 11, 11, Joint Joint Arrangements Arrangements (effective (effective from from 1 1 January January 2013) 2013) IFRS IFRS 12, 12, Disclosure Disclosure of of Interest Interest in in Other Other Entities Entities (effective (effective from from 1 1 January January 2013) 2013) IFRS 13, 13, Fair Fair value value Measurement Measurement (effective (effective from from 1 1 January January 2013) 2013) IFRS
Not yet yet effective effective and and have have not not been been early early adopted adopted Not At At the the date date of of authorisation authorisation of of these these consolidated consolidated financial financial statements, statements, certain certain new new standards, standards, interpretations interpretations and and amendments amendments to to the the existing existing standards standards have have been been published published that that are are mandatory mandatory for for accounting accounting periods periods commencing commencing after after 1 1 April April 2014 2014 or or later periods, periods, but but have have not not been been early early adopted. adopted. Management Management is is currently currently assessing assessing the the later following following standards standards and and amendments amendments which which are are likely likely to to have have an an impact impact on on dnata’s dnata’s operations: operations: IAS IAS 36 36 (Revised), (Revised), Impairment Impairment of of Assets Assets (effective (effective from from 1 1 January January 2014) 2014) 9, Financial Financial Instruments Instruments (effective (effective from from 1 1 January January 2018) 2018) IFRS 9, IFRS
dnata Independent Auditor’s Report
2. Summary of significant accounting policies (continued) Basis of consolidation Subsidiaries are those entities over which dnata has control. Control is exercised when an entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to dnata and are deconsolidated from the date on which control ceases. Inter-company transactions, balances and unrealised gains and losses arising on transactions between dnata and subsidiaries are eliminated. The acquisition method of accounting is used to account for the acquisition of subsidiaries. The consideration transferred for the acquisition of a subsidiary is the fair value of assets transferred and the liabilities incurred to the former owners of the acquiree. Acquisition-related costs are expensed as incurred. Identifiable assets, including intangible assets acquired liabilities and contingent liabilities, if any, incurred or assumed in a business combination, are measured initially at their fair values at the acquisition date. Any non-controlling interest in the acquiree is recognised on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is as transactions with the owners in their capacity as owners. For purchases of non-controlling interests, the difference between fair value of any consideration paid and the relevant share acquired of the carrying value of the net assets of the subsidiary is recorded in equity. Gains or losses on disposal to non-controlling interests are also recorded in equity. Associates are those entities in which dnata has significant influence but not control, generally accompanying a shareholding between 20% and 50% of the voting rights. Investments in associates are accounted for by applying the equity method and include goodwill (net of accumulated impairment loss, if any) identified on acquisition. Joint ventures are contractual arrangements which establish joint control and where dnata has rights to the net assets of the arrangement. Investments in joint ventures are accounted for by applying the equity method and include goodwill (net of accumulated impairment loss, if any) identified on acquisition.
dnata Consolidated Financial Statements
All material unrealised gains and losses arising on transactions between dnata and its associates and joint ventures are eliminated to the extent of dnata’s interest.
Additional Information
5 5
When control, joint control or significant influence ceases, the retained interest in the entity is remeasured to fair value as at that date, with the change in the carrying amount recognised in the consolidated income statement. The fair value is the initial carrying amount for the purposes of subsequent accounting of the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the related assets and liabilities have been directly disposed of. This could result in amounts previously recognised in other comprehensive income being reclassified to the consolidated income statement. If the ownership in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to the consolidated income statement. Revenue Revenue from airport operations and cargo services is stated net of value added taxes, rebates and discounts, and is recognised on the performance of services. Revenue from information technology services is recognised as services are rendered for time-and-material contracts and as per the percentage-of-completion method with reference to the stage of completion for software implementation services. The stage of completion is determined on the basis of actual cost incurred as a proportion of total estimated cost. Revenue from travel services includes agency commission earned from the sale of thirdparty travel products and inclusive tours. Revenue relating to third-party travel products is recognised on the completion of sale. Revenue relating to inclusive tours is recognised on departure. Revenue from sale of goods is recognised when the risks and rewards of ownership are transferred to the customer and is stated net of discounts and returns. Interest income is recognised on a time proportion basis using the effective interest method. Foreign currency translation dnata’s consolidated financial statements are presented in UAE Dirhams (AED), which is also the parent company’s functional currency. Subsidiaries determine their own functional currency and items included in the financial statements of these companies are measured using that functional currency.
Accounting policies of subsidiaries, associates and joint ventures have been changed where necessary to ensure consistency with dnata’s accounting policies.
6 114
115
NotesTOtoTHE the Consolidated Financial Statements NOTES NOTES TO THE CONSOLIDATED CONSOLIDATED FINANCIAL FINANCIAL STATEMENTS STATEMENTS FOR 31 2014 for THE theYEAR yearENDED ended 31 March FOR THE YEAR ENDED 31 MARCH MARCH 2014 2014 1. 1. General General information information
Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata dnata comprises comprises dnata dnata (“the (“the parent parent company”) company”) and and its its subsidiaries. subsidiaries. dnata dnata was was incorporated in the emirate of Dubai, UAE with limited liability, under an Emiri incorporated in the emirate of Dubai, UAE with limited liability, under an Emiri Decree Decree issued issued by by H.H. H.H. Sheikh Sheikh Maktoum Maktoum bin bin Rashid Rashid Al-Maktoum Al-Maktoum on on 4 4 April April 1987. 1987. On On that that date, date, the total assets and liabilities of Dubai National Air Travel Agency were transferred the total assets and liabilities of Dubai National Air Travel Agency were transferred to to dnata, with with effect effect from from 1 1 April April 1987, 1987, for for nil nil consideration. consideration. dnata dnata is is wholly wholly owned owned by by the the dnata, Investment Investment Corporation Corporation of of Dubai, Dubai, a a Government Government of of Dubai Dubai entity. entity. dnata dnata is is incorporated incorporated and and domiciled domiciled in in Dubai, Dubai, UAE. UAE. The The address address of of its its registered registered office office is is Dnata Travel Centre, PO Box 1515, Dubai, UAE. Dnata Travel Centre, PO Box 1515, Dubai, UAE. The The main main activities activities of of dnata dnata comprise: comprise:
aircraft aircraft handling handling and and engineering engineering services services handling services for export handling services for export and and import import cargo cargo inflight catering catering inflight information information technology technology services services representing airlines airlines as as their their general general sales sales agent agent representing travel travel agency agency and and other other travel travel related related services services
2. 2. Summary Summary of of significant significant accounting accounting policies policies A summary summary of of the the significant significant accounting accounting policies, policies, which which have have been been applied applied consistently consistently A in in the the preparation preparation of of these these consolidated consolidated financial financial statements, statements, is is set set out out below. below. Basis Basis of of preparation preparation The consolidated consolidated financial financial statements statements have have been been prepared prepared in in accordance accordance with with The International International Financial Financial Reporting Reporting Standards Standards (IFRS) (IFRS) and and IFRS IFRS Interpretations Interpretations Committee Committee (IFRS IC). IC). The The consolidated consolidated financial financial statements statements are are prepared prepared under under the the historical historical cost cost (IFRS convention convention except except for for revaluation revaluation of of certain certain financial financial assets assets and and liabilities liabilities at at fair fair value value through through profit profit or or loss. loss.
Standards and and amendments amendments to to published published standards standards that that are are relevant relevant to to dnata’s dnata’s Standards operations operations Effective Effective and and adopted adopted in in the the current current year year At At the the date date of of authorisation authorisation of of these these consolidated consolidated financial financial statements, statements, certain certain new new standards and amendments to the existing standards have been published standards and amendments to the existing standards have been published and and are are mandatory for for the the current current accounting accounting period. period. These These did did not not have have a a material material impact impact on on mandatory the the consolidated consolidated financial financial statements statements and and are are set set out out below: below: IAS IAS 1 1 (revised), (revised), Presentation Presentation of of Financial Financial Statements Statements (effective (effective from from 1 1 July July 2012) 2012) IAS 19 (revised), Employee Benefits (effective from 1 January 2013) IAS 19 (revised), Employee Benefits (effective from 1 January 2013) IAS 28 28 (revised), (revised), Investments Investments in in Associates Associates and and Joint Joint Ventures Ventures (effective (effective from from 1 1 IAS January January 2013) 2013) IFRS 10, 10, Consolidated Consolidated Financial Financial Statements Statements (effective (effective from from 1 1 January January 2013) 2013) IFRS IFRS IFRS 11, 11, Joint Joint Arrangements Arrangements (effective (effective from from 1 1 January January 2013) 2013) IFRS IFRS 12, 12, Disclosure Disclosure of of Interest Interest in in Other Other Entities Entities (effective (effective from from 1 1 January January 2013) 2013) IFRS 13, 13, Fair Fair value value Measurement Measurement (effective (effective from from 1 1 January January 2013) 2013) IFRS
Not yet yet effective effective and and have have not not been been early early adopted adopted Not At At the the date date of of authorisation authorisation of of these these consolidated consolidated financial financial statements, statements, certain certain new new standards, standards, interpretations interpretations and and amendments amendments to to the the existing existing standards standards have have been been published published that that are are mandatory mandatory for for accounting accounting periods periods commencing commencing after after 1 1 April April 2014 2014 or or later periods, periods, but but have have not not been been early early adopted. adopted. Management Management is is currently currently assessing assessing the the later following following standards standards and and amendments amendments which which are are likely likely to to have have an an impact impact on on dnata’s dnata’s operations: operations: IAS IAS 36 36 (Revised), (Revised), Impairment Impairment of of Assets Assets (effective (effective from from 1 1 January January 2014) 2014) 9, Financial Financial Instruments Instruments (effective (effective from from 1 1 January January 2018) 2018) IFRS 9, IFRS
dnata Independent Auditor’s Report
2. Summary of significant accounting policies (continued) Basis of consolidation Subsidiaries are those entities over which dnata has control. Control is exercised when an entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to dnata and are deconsolidated from the date on which control ceases. Inter-company transactions, balances and unrealised gains and losses arising on transactions between dnata and subsidiaries are eliminated. The acquisition method of accounting is used to account for the acquisition of subsidiaries. The consideration transferred for the acquisition of a subsidiary is the fair value of assets transferred and the liabilities incurred to the former owners of the acquiree. Acquisition-related costs are expensed as incurred. Identifiable assets, including intangible assets acquired liabilities and contingent liabilities, if any, incurred or assumed in a business combination, are measured initially at their fair values at the acquisition date. Any non-controlling interest in the acquiree is recognised on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is as transactions with the owners in their capacity as owners. For purchases of non-controlling interests, the difference between fair value of any consideration paid and the relevant share acquired of the carrying value of the net assets of the subsidiary is recorded in equity. Gains or losses on disposal to non-controlling interests are also recorded in equity. Associates are those entities in which dnata has significant influence but not control, generally accompanying a shareholding between 20% and 50% of the voting rights. Investments in associates are accounted for by applying the equity method and include goodwill (net of accumulated impairment loss, if any) identified on acquisition. Joint ventures are contractual arrangements which establish joint control and where dnata has rights to the net assets of the arrangement. Investments in joint ventures are accounted for by applying the equity method and include goodwill (net of accumulated impairment loss, if any) identified on acquisition.
dnata Consolidated Financial Statements
All material unrealised gains and losses arising on transactions between dnata and its associates and joint ventures are eliminated to the extent of dnata’s interest.
Additional Information
5 5
When control, joint control or significant influence ceases, the retained interest in the entity is remeasured to fair value as at that date, with the change in the carrying amount recognised in the consolidated income statement. The fair value is the initial carrying amount for the purposes of subsequent accounting of the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the related assets and liabilities have been directly disposed of. This could result in amounts previously recognised in other comprehensive income being reclassified to the consolidated income statement. If the ownership in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to the consolidated income statement. Revenue Revenue from airport operations and cargo services is stated net of value added taxes, rebates and discounts, and is recognised on the performance of services. Revenue from information technology services is recognised as services are rendered for time-and-material contracts and as per the percentage-of-completion method with reference to the stage of completion for software implementation services. The stage of completion is determined on the basis of actual cost incurred as a proportion of total estimated cost. Revenue from travel services includes agency commission earned from the sale of thirdparty travel products and inclusive tours. Revenue relating to third-party travel products is recognised on the completion of sale. Revenue relating to inclusive tours is recognised on departure. Revenue from sale of goods is recognised when the risks and rewards of ownership are transferred to the customer and is stated net of discounts and returns. Interest income is recognised on a time proportion basis using the effective interest method. Foreign currency translation dnata’s consolidated financial statements are presented in UAE Dirhams (AED), which is also the parent company’s functional currency. Subsidiaries determine their own functional currency and items included in the financial statements of these companies are measured using that functional currency.
Accounting policies of subsidiaries, associates and joint ventures have been changed where necessary to ensure consistency with dnata’s accounting policies.
6 114
115
2. Summary of significant accounting policies (continued)
Overview
Foreign currency transactions are translated into the functional currency, at the exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at exchange rates prevailing at the end of the reporting period. The resultant foreign exchange gains and losses, other than those on qualifying net investment hedges and net investment in foreign operations deferred in other comprehensive income, are recognised in the consolidated income statement.
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Income and cash flow statements of subsidiaries are translated into UAE Dirhams at average exchange rates for the year that approximate the cumulative effect of rates prevailing on the transaction dates and their assets and liabilities are translated at the exchange rates ruling at the end of the reporting period. The resulting exchange differences are recognised in other comprehensive income. Share of results of investments accounted for using the equity method are translated into UAE Dirhams at average exchange rates for the year. Translation differences relating to investments in subsidiaries, associates, joint ventures and foreign currency borrowings that provide a hedge against a net investment in a foreign entity and monetary assets and liabilities that form part of net investment in foreign operations are recognised in other comprehensive income. When investments in subsidiaries, associates or joint ventures are disposed, the translation differences recorded in equity are recognised in the consolidated income statement as part of the gain or loss on disposal. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the exchange rates prevailing at the end of the reporting period. Property, plant and equipment
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Property, plant and equipment is stated at cost less accumulated depreciation. Cost consists of purchase cost, together with any incidental expenses of acquisition. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the items will flow and the cost can be reliably measured. Repairs and maintenance are charged to the consolidated income statement during the period in which they are incurred.
Land is not depreciated. Depreciation on other items of property, plant and equipment is calculated using the straight line method to allocate their cost, less estimated residual values, over the estimated useful lives of the assets or lease term, if shorter. The estimated useful lives are: Buildings Leasehold property Plant and machinery Office equipment and furniture Motor vehicles
15 - 33 years shorter of useful life or lease term 4 - 15 years 3 - 6 years 5 years
The residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Capital projects are stated at cost. When the asset is ready for its intended use, it is transferred from capital projects to the appropriate category under property, plant and equipment and depreciated in accordance with dnata’s policies. Gains and losses on disposal are determined by comparing proceeds with the carrying amount and are recognised in the consolidated income statement. Goodwill Goodwill represents the excess of the consideration transferred and the acquisition date fair value of any retained interest over the fair value of the identifiable net assets at the date of acquisition. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate a potential impairment and is carried at cost less accumulated impairment losses, if any. For the purpose of impairment testing, goodwill is allocated to cash generating units or group of cash generating units that are expected to benefit from the business combination in which the goodwill arose. An impairment loss is recognised when the carrying value of the cash generating unit or group cash generating units exceeds its recoverable amount. Impairment losses on goodwill are not reversed. Gains and losses on disposal of an entity include the carrying amount of goodwill relating to the entity sold.
2. Summary of significant accounting policies (continued)
Loans and receivables
Other intangible assets
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such amounts are initially recognised at fair value including transaction costs and carried at amortised cost using the effective interest method. The amounts are derecognised when rights to receive cash flows have expired or have been transferred along with substantially all the risks and rewards of ownership.
Computer software is capitalised at cost only when future economic benefits are probable. Cost includes purchase price together with any directly attributable expenditure. In the case of internally developed computer software, development expenditure is capitalised if costs can be measured reliably, the product is technically and commercially feasible, future economic benefits are probable, and there exists an intent and ability to complete the development and to use or sell the asset. Other research and development expenditure not meeting the criteria for capitalisation are recognised in the consolidated income statement as incurred. Trade names, customer relationships and contractual rights are recognised on acquisition at fair values. Contractual rights also include licenses to operate in certain airports. Intangible assets with indefinite useful lives are not amortised but tested for impairment annually. Intangible assets with finite useful lives are amortised on a straight-line basis over their estimated useful life. The useful lives of intangible assets are: Trade names Computer software Customer relationships Contractual rights
10 years or indefinite life 3 - 5 years 3 - 10 years over the expected term of the rights
Impairment of non-financial assets Goodwill and intangible assets with indefinite useful lives are not subject to amortisation and are tested annually for impairment. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets other than goodwill are reviewed at the end of each reporting period for possible reversal of the impairment loss.
At the end of each reporting period, an assessment is made whether there is any objective evidence of impairment. Where necessary the carrying amount is written down through the consolidated income statement to the present value of expected future cash flows discounted at the effective interest rate computed at initial recognition. Finance and operating leases Where property, plant and equipment have been financed by lease agreements under which substantially all of the risks and rewards incidental to ownership are transferred to dnata, they are classified as finance leases. Finance leases are capitalised at the commencement of the lease at the lower of the present value of the minimum lease payments or the fair value of the leased asset. The corresponding lease obligations are included under liabilities. Lease payments are treated as consisting of capital and interest elements. The interest element is charged to the consolidated income statement over the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Property, plant and equipment acquired under finance leases are depreciated in accordance with dnata’s policies. Leases, where a significant portion of risks and rewards of ownership are retained by the lessor are classified as operating leases. Lease rental charges, including advance rentals in respect of operating leases, are charged to the consolidated income statement on a straight-line basis over the period of the lease. Inventories Inventories are stated at the lower of cost and estimated net realisable value. Cost is determined on the weighted average cost basis except for food and beverage inventory which is determined on a first-in-first-out basis.
Additional Information
7 116
8 117
2. Summary of significant accounting policies (continued)
Overview
Foreign currency transactions are translated into the functional currency, at the exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at exchange rates prevailing at the end of the reporting period. The resultant foreign exchange gains and losses, other than those on qualifying net investment hedges and net investment in foreign operations deferred in other comprehensive income, are recognised in the consolidated income statement.
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Income and cash flow statements of subsidiaries are translated into UAE Dirhams at average exchange rates for the year that approximate the cumulative effect of rates prevailing on the transaction dates and their assets and liabilities are translated at the exchange rates ruling at the end of the reporting period. The resulting exchange differences are recognised in other comprehensive income. Share of results of investments accounted for using the equity method are translated into UAE Dirhams at average exchange rates for the year. Translation differences relating to investments in subsidiaries, associates, joint ventures and foreign currency borrowings that provide a hedge against a net investment in a foreign entity and monetary assets and liabilities that form part of net investment in foreign operations are recognised in other comprehensive income. When investments in subsidiaries, associates or joint ventures are disposed, the translation differences recorded in equity are recognised in the consolidated income statement as part of the gain or loss on disposal. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the exchange rates prevailing at the end of the reporting period. Property, plant and equipment
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Property, plant and equipment is stated at cost less accumulated depreciation. Cost consists of purchase cost, together with any incidental expenses of acquisition. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the items will flow and the cost can be reliably measured. Repairs and maintenance are charged to the consolidated income statement during the period in which they are incurred.
Land is not depreciated. Depreciation on other items of property, plant and equipment is calculated using the straight line method to allocate their cost, less estimated residual values, over the estimated useful lives of the assets or lease term, if shorter. The estimated useful lives are: Buildings Leasehold property Plant and machinery Office equipment and furniture Motor vehicles
15 - 33 years shorter of useful life or lease term 4 - 15 years 3 - 6 years 5 years
The residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Capital projects are stated at cost. When the asset is ready for its intended use, it is transferred from capital projects to the appropriate category under property, plant and equipment and depreciated in accordance with dnata’s policies. Gains and losses on disposal are determined by comparing proceeds with the carrying amount and are recognised in the consolidated income statement. Goodwill Goodwill represents the excess of the consideration transferred and the acquisition date fair value of any retained interest over the fair value of the identifiable net assets at the date of acquisition. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate a potential impairment and is carried at cost less accumulated impairment losses, if any. For the purpose of impairment testing, goodwill is allocated to cash generating units or group of cash generating units that are expected to benefit from the business combination in which the goodwill arose. An impairment loss is recognised when the carrying value of the cash generating unit or group cash generating units exceeds its recoverable amount. Impairment losses on goodwill are not reversed. Gains and losses on disposal of an entity include the carrying amount of goodwill relating to the entity sold.
2. Summary of significant accounting policies (continued)
Loans and receivables
Other intangible assets
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such amounts are initially recognised at fair value including transaction costs and carried at amortised cost using the effective interest method. The amounts are derecognised when rights to receive cash flows have expired or have been transferred along with substantially all the risks and rewards of ownership.
Computer software is capitalised at cost only when future economic benefits are probable. Cost includes purchase price together with any directly attributable expenditure. In the case of internally developed computer software, development expenditure is capitalised if costs can be measured reliably, the product is technically and commercially feasible, future economic benefits are probable, and there exists an intent and ability to complete the development and to use or sell the asset. Other research and development expenditure not meeting the criteria for capitalisation are recognised in the consolidated income statement as incurred. Trade names, customer relationships and contractual rights are recognised on acquisition at fair values. Contractual rights also include licenses to operate in certain airports. Intangible assets with indefinite useful lives are not amortised but tested for impairment annually. Intangible assets with finite useful lives are amortised on a straight-line basis over their estimated useful life. The useful lives of intangible assets are: Trade names Computer software Customer relationships Contractual rights
10 years or indefinite life 3 - 5 years 3 - 10 years over the expected term of the rights
Impairment of non-financial assets Goodwill and intangible assets with indefinite useful lives are not subject to amortisation and are tested annually for impairment. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets other than goodwill are reviewed at the end of each reporting period for possible reversal of the impairment loss.
At the end of each reporting period, an assessment is made whether there is any objective evidence of impairment. Where necessary the carrying amount is written down through the consolidated income statement to the present value of expected future cash flows discounted at the effective interest rate computed at initial recognition. Finance and operating leases Where property, plant and equipment have been financed by lease agreements under which substantially all of the risks and rewards incidental to ownership are transferred to dnata, they are classified as finance leases. Finance leases are capitalised at the commencement of the lease at the lower of the present value of the minimum lease payments or the fair value of the leased asset. The corresponding lease obligations are included under liabilities. Lease payments are treated as consisting of capital and interest elements. The interest element is charged to the consolidated income statement over the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Property, plant and equipment acquired under finance leases are depreciated in accordance with dnata’s policies. Leases, where a significant portion of risks and rewards of ownership are retained by the lessor are classified as operating leases. Lease rental charges, including advance rentals in respect of operating leases, are charged to the consolidated income statement on a straight-line basis over the period of the lease. Inventories Inventories are stated at the lower of cost and estimated net realisable value. Cost is determined on the weighted average cost basis except for food and beverage inventory which is determined on a first-in-first-out basis.
Additional Information
7 116
8 117
2. Summary of significant accounting policies (continued) Trade receivables
Overview
Emirates
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method less provision for impairment. Where there is objective evidence of amounts that are not collectible, a provision is made for the difference between the carrying amount and the present value of estimated future cash flows discounted at the original effective interest rate. Borrowings
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost with any difference between the proceeds (net of transaction costs) and the redemption value recognised in the consolidated income statement over the period of the borrowings using the effective interest method. Provisions Provisions are recognised when dnata has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at the present value of the expenditures expected to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. Retirement benefit obligations
Emirates Consolidated Financial Statements
dnata operates or participates in various end of service benefit plans, which are classified either as defined contribution or defined benefit plans.
dnata Independent Auditor’s Report
A defined contribution plan is a pension scheme under which dnata pays fixed contributions and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to settle the benefits relating to the employees service in the current and prior periods. Contributions to the pension fund are charged to the consolidated income statement in the period in which they fall due.
dnata Consolidated Financial Statements
A defined benefit plan is a plan which is not a defined contribution plan. The liability recognised in the consolidated statement of financial position for a defined benefit plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets at that date. The defined benefit obligation is calculated by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting estimated future cash outflows using market yields at the end of the reporting period of high quality corporate bonds that have terms to maturity approximating to the estimated term of the postemployment benefit obligations.
2. Summary of significant accounting policies (continued)
3. Critical accounting estimates and judgements
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by dnata and it is probable that the temporary difference will not reverse in the foreseeable future.
In the preparation of the consolidated financial statements, a number of estimates and associated assumptions have been made relating to the application of accounting policies and reported amounts of assets, liabilities, income and expense. The estimates and associated assumptions are assessed on an ongoing basis and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following discussion addresses the accounting policies that require subjective and complex judgements, often as a result of the need to make estimates.
Actuarial gains and losses arising from changes in actuarial assumptions and experience adjustments are recognised in equity through other comprehensive income in the period in which they arise. Income tax
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
The tax expense for the year comprises current and deferred tax.
Trade payables
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where dnata’s subsidiaries operate and generate taxable income.
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
For each acquisition management assesses the fair value of intangible assets acquired. The instance where individual fair values of assets in a group are not reliably measurable, a single asset comprising goodwill is recognised. Where an active market does not exist for an intangible asset, fair values are established using valuation techniques e.g. discounting future cash flows from the asset. In the process, estimates are made of the future cash flows, the useful life and the discount rate based on management’s experience and expectation at the time of acquisition.
Cash and cash equivalents
Depreciation of property, plant and equipment
Cash and cash equivalents comprise all cash and liquid funds with an original maturity of three months or less. Other bank deposits with maturity less than a year are classified as short term bank deposits. Bank overdrafts are shown within current borrowings and lease liabilities in the consolidated statement of financial position.
Management assigns useful lives and residual values to property, plant and equipment based on the intended use of assets and the economic lives of those assets. Subsequent changes in circumstances such as technological advances or prospective utilisation of the assets concerned could result in the actual useful lives or residual values differing from initial estimates. Management has reviewed the residual value and useful lives of major items of property, plant and equipment and determined that no adjustment is necessary.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Also deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill in a business combination. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted in the jurisdiction of the individual companies by the end of the reporting period and are expected to apply when the related deferred income tax liability is settled or the deferred income tax asset is realised.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Dividend distribution Dividend distribution to dnata’s Owner is recognised as a liability in the consolidated financial statements in the period in which the dividends are approved.
Valuation of intangible assets on acquisition
Useful lives of intangible assets Management assigns useful lives to intangible assets based on the intended use of the assets, the underlying contractual or legal rights and the historical experience. Subsequent changes in circumstances such as technological advances, changes in the terms of the underlying contracts or prospective utilisation of the assets concerned could result in the useful lives differing from initial estimates. Management has reviewed the useful lives of major intangible assets and determined that no adjustment is necessary.
Additional Information
9 118
10 119
2. Summary of significant accounting policies (continued) Trade receivables
Overview
Emirates
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method less provision for impairment. Where there is objective evidence of amounts that are not collectible, a provision is made for the difference between the carrying amount and the present value of estimated future cash flows discounted at the original effective interest rate. Borrowings
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost with any difference between the proceeds (net of transaction costs) and the redemption value recognised in the consolidated income statement over the period of the borrowings using the effective interest method. Provisions Provisions are recognised when dnata has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at the present value of the expenditures expected to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. Retirement benefit obligations
Emirates Consolidated Financial Statements
dnata operates or participates in various end of service benefit plans, which are classified either as defined contribution or defined benefit plans.
dnata Independent Auditor’s Report
A defined contribution plan is a pension scheme under which dnata pays fixed contributions and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to settle the benefits relating to the employees service in the current and prior periods. Contributions to the pension fund are charged to the consolidated income statement in the period in which they fall due.
dnata Consolidated Financial Statements
A defined benefit plan is a plan which is not a defined contribution plan. The liability recognised in the consolidated statement of financial position for a defined benefit plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets at that date. The defined benefit obligation is calculated by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting estimated future cash outflows using market yields at the end of the reporting period of high quality corporate bonds that have terms to maturity approximating to the estimated term of the postemployment benefit obligations.
2. Summary of significant accounting policies (continued)
3. Critical accounting estimates and judgements
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by dnata and it is probable that the temporary difference will not reverse in the foreseeable future.
In the preparation of the consolidated financial statements, a number of estimates and associated assumptions have been made relating to the application of accounting policies and reported amounts of assets, liabilities, income and expense. The estimates and associated assumptions are assessed on an ongoing basis and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following discussion addresses the accounting policies that require subjective and complex judgements, often as a result of the need to make estimates.
Actuarial gains and losses arising from changes in actuarial assumptions and experience adjustments are recognised in equity through other comprehensive income in the period in which they arise. Income tax
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
The tax expense for the year comprises current and deferred tax.
Trade payables
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where dnata’s subsidiaries operate and generate taxable income.
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
For each acquisition management assesses the fair value of intangible assets acquired. The instance where individual fair values of assets in a group are not reliably measurable, a single asset comprising goodwill is recognised. Where an active market does not exist for an intangible asset, fair values are established using valuation techniques e.g. discounting future cash flows from the asset. In the process, estimates are made of the future cash flows, the useful life and the discount rate based on management’s experience and expectation at the time of acquisition.
Cash and cash equivalents
Depreciation of property, plant and equipment
Cash and cash equivalents comprise all cash and liquid funds with an original maturity of three months or less. Other bank deposits with maturity less than a year are classified as short term bank deposits. Bank overdrafts are shown within current borrowings and lease liabilities in the consolidated statement of financial position.
Management assigns useful lives and residual values to property, plant and equipment based on the intended use of assets and the economic lives of those assets. Subsequent changes in circumstances such as technological advances or prospective utilisation of the assets concerned could result in the actual useful lives or residual values differing from initial estimates. Management has reviewed the residual value and useful lives of major items of property, plant and equipment and determined that no adjustment is necessary.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Also deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill in a business combination. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted in the jurisdiction of the individual companies by the end of the reporting period and are expected to apply when the related deferred income tax liability is settled or the deferred income tax asset is realised.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Dividend distribution Dividend distribution to dnata’s Owner is recognised as a liability in the consolidated financial statements in the period in which the dividends are approved.
Valuation of intangible assets on acquisition
Useful lives of intangible assets Management assigns useful lives to intangible assets based on the intended use of the assets, the underlying contractual or legal rights and the historical experience. Subsequent changes in circumstances such as technological advances, changes in the terms of the underlying contracts or prospective utilisation of the assets concerned could result in the useful lives differing from initial estimates. Management has reviewed the useful lives of major intangible assets and determined that no adjustment is necessary.
Additional Information
9 118
10 119
3. Critical accounting estimates and judgements (continued) 3. Critical accounting estimates and judgements (continued)
Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
Impairment of investments accounted for using the equity method Impairment of investments accounted for using the equity method Management applies the guidance in IAS 39 to identify if potential impairment exists for its equity accounted each reporting period, an assessment is Management appliesinvestments. the guidance At in the IAS end 39 toofidentify if potential impairment exists for made whether thereinvestments. is any objective evidence of impairment. In such its equity accounted At the end of each reporting period, an instances, assessmentthe is investment is subject to any an impairment test by comparing the carrying to the made whether there is objective evidence of impairment. In such amount instances, recoverable is amount Considering thecomparing long term nature of these investments, investment subjectoftothe anasset. impairment test by the carrying amount to the the recoverable amount determined basedthe onlong value-in-use calculations. Calculating recoverable amount of theis asset. Considering term nature of these investments, implies obtaining cash based flow forecasts from management the equity the value-in-use recoverable amount is determined on value-in-use calculations.ofCalculating accounted investments. listed companies often operate under restrictions to the value-in-use impliesPublicly obtaining cash flow forecasts from management of the due equity the applicable listing regulations on disclosure information to a selective group of accounted investments. Publicly listed companiesof often operate under restrictions due to shareholders. forregulations such investments management develops to its aown estimated cash the applicableThus, listing on disclosure of information selective group of flows using publicly available data or analyst forecasts, asdevelops appropriate. shareholders. Thus, for such investments management its own estimated cash flows using publicly available data or analyst forecasts, as appropriate. Impairment of goodwill and intangible assets with indefinite useful lives Impairment of goodwill and intangible assets with indefinite useful lives Determining whether goodwill or intangible assets with indefinite useful lives is impaired requires an estimation of the value-in-use the cash units or group of cash Determining whether goodwill or intangibleofassets withgenerating indefinite useful lives is impaired generating to which goodwill or intangible assets with indefinite has requires an units estimation of the value-in-use of the cash generating units oruseful grouplives of cash been allocated. calculation requires management to estimate future generating unitsThe to value-in-use which goodwill or intangible assets with indefinite usefulthe lives has cash flows expected to arise fromcalculation the cash generating unit and a suitable discount rate been allocated. The value-in-use requires management to estimate the future in order toexpected calculate to present value.the The estimates made in and arriving at thediscount value-in-use cash flows arise from cash generating unit a suitable rate calculation set outpresent in Note value. 9. in order to are calculate The estimates made in arriving at the value-in-use calculation are set out in Note 9. Valuation of defined benefit obligations Valuation of defined benefit obligations The present value of the defined benefit obligations is determined on actuarial basis usingpresent variousvalue assumptions that maybenefit differ from actual developments theactuarial future. These The of the defined obligations is determinedinon basis discount rate and expected salary assumptions include the that determination of the using various assumptions may differ from actual developments in the future. These increases which are reviewed at each reporting date.discount Due to the involved in assumptions include the determination of the ratecomplexities and expected salary the valuation and itsreviewed long-term defined benefit obligations are highly sensitive increases which are at nature, each reporting date. Due to the complexities involved to in changes in these A sensitivity analysisobligations of changes defined benefit the valuation and itsassumptions. long-term nature, defined benefit areinhighly sensitive to obligations to aassumptions. reasonable change in theseanalysis assumptions are set out in Note 17. changes in due these A sensitivity of changes in defined benefit obligations due to a reasonable change in these assumptions are set out in Note 17.
4. Fair value estimation 4. Fair value estimation The levels of fair value hierarchy are defined as follows: The levels of fair value hierarchy are defined as follows: Level 1: Measurement is made by using quoted prices (unadjusted) from active Level 1: market. Measurement is made by using quoted prices (unadjusted) from active Level 2: Measurement is made by means of valuation methods with parameters market. derived directlyisormade indirectly observable marketmethods data. Level 2: Measurement by from means of valuation with parameters Level 3: derived Measurement by means of valuation methods directlyisormade indirectly from observable market data.with parameters not exclusively on observable market data. methods with parameters not Level 3: based Measurement is made by means of valuation based exclusively on observable market data. Derivatives, contingent consideration and option liability are carried at fair value. Derivatives into level consideration 2 of the fair value whereasare contingent consideration Derivatives, fall contingent and hierarchy option liability carried at fair value. and option liability into of the fair hierarchy value hierarchy. Derivatives fall intofall level 2 level of the3 fair value whereas contingent consideration and option liability fall into level 3 of the fair value hierarchy. Derivatives comprise forward exchange contracts. The forward exchange contracts are fair valued using forward exchange rates that are quoted in an active market.contracts are Derivatives comprise forward exchange contracts. The forward exchange fair valued using forward exchange rates that are quoted in an active market. The fair values of contingent consideration and option liability are determined by using valuation techniques based on entity specific estimates. These are estimates are not The fair values of contingent consideration and option liability determined by based using on observable marketbased data and under level 3 of the fair value valuation techniques on hence entity classified specific estimates. These estimates arehierarchy. not based on observable market data and hence classified under level 3 of the fair value hierarchy. The changes in the fair value of level 3 instruments are set out in Note 15. The changes in the fair value of level 3 instruments are set out in Note 15.
5. Revenue 5. Revenue
7. Income 7. Income tax expense tax expense 2014 2014 2013 2013 AED m AED m AED m AED m
2014 2014 2013 2013 AED m AED m AED m AED m Services Services Airport Airport operations operations CargoCargo Information Information technology technology TravelTravel services services OtherOther Sale of goods Sale of goods In-flight catering In-flight catering OtherOther
2,8392,839 1,1661,166 814 814
2,4742,474 1,0771,077 755 755
662 662 544 544 34 34 105 105 5,5155,515 4,9554,955
76 76 (26) (26)
46 (8)
46 (8)
50
38
38
50
The income tax expense foryear thecan yearbe can be reconciled The income tax expense for the reconciled to theto the accounting from continuing operations as follows: accounting profitprofit from continuing operations as follows:
1,7531,753 180 180
1,4071,407 174 174
1,9331,933 1,5811,581 7,4487,448 6,5366,536 6. Operating costscosts 6. Operating 2014 2014 2013 2013 AED m AED m AED m AED m Employee (see below) Employee (see below) Airport operations and cargo - other directdirect costs costs Airport operations and cargo - other Cost of sales Cost of sales RentalRental and lease expenses and lease expenses Depreciation and amortisation Depreciation and amortisation Information technology infrastructure costs costs Information technology infrastructure Sales Sales and marketing expenses and marketing expenses Corporate overheads Corporate overheads
The components The components of income of income tax expense tax expense are: are: Current Current tax tax Deferred Deferred tax credit tax credit
3,2513,251 883 883 747 747 436 436 353 353 345 345 234 234 453 453
2,7712,771 798 798 601 601 372 372 328 328 308 308 194 194 435 435
income ProfitProfit beforebefore income tax tax
916 916
839 839
Tax calculated at domestic tax rates applicable to profits Tax calculated at domestic tax rates applicable to profits in respective tax jurisdictions in respective tax jurisdictions of non-deductible expenses EffectEffect of non-deductible expenses of income exempt from tax EffectEffect of income exempt from tax Recognition of previously unrecognised tax losses Recognition of previously unrecognised tax losses Re-measurement of deferred tax - effect of changes Re-measurement of deferred tax - effect of changes in taxin tax
52 8
52 8 (8) (8) (2) (2)
28 7
rates rates Tax losses for which no deferred tax asset recognised Tax losses for which no deferred tax asset recognised of other EffectEffect of other itemsitems Income tax expense Income tax expense
(1) (1) 2 2 (1) (1) 50 50
-
-
4 1 38
4 1 38
28 7 (2) (2)
Therates tax rates forreconciliation the reconciliation arerates the rates applicable the profits in The tax used used for the aboveabove are the applicable to thetoprofits in the respective tax jurisdictions. the respective tax jurisdictions.
6,7026,702 5,8075,807 Employee costs costs include AED 146 (2013: AED 115 in m) respect of post-employment Employee include AEDm146 m (2013: AEDm) 115 in respect of post-employment benefits (Note(Note 17). 17). benefits
dnata Consolidated Financial Statements
Additional Information
11 11 120
12
12 121
3. Critical accounting estimates and judgements (continued) 3. Critical accounting estimates and judgements (continued)
Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
Impairment of investments accounted for using the equity method Impairment of investments accounted for using the equity method Management applies the guidance in IAS 39 to identify if potential impairment exists for its equity accounted each reporting period, an assessment is Management appliesinvestments. the guidance At in the IAS end 39 toofidentify if potential impairment exists for made whether thereinvestments. is any objective evidence of impairment. In such its equity accounted At the end of each reporting period, an instances, assessmentthe is investment is subject to any an impairment test by comparing the carrying to the made whether there is objective evidence of impairment. In such amount instances, recoverable is amount Considering thecomparing long term nature of these investments, investment subjectoftothe anasset. impairment test by the carrying amount to the the recoverable amount determined basedthe onlong value-in-use calculations. Calculating recoverable amount of theis asset. Considering term nature of these investments, implies obtaining cash based flow forecasts from management the equity the value-in-use recoverable amount is determined on value-in-use calculations.ofCalculating accounted investments. listed companies often operate under restrictions to the value-in-use impliesPublicly obtaining cash flow forecasts from management of the due equity the applicable listing regulations on disclosure information to a selective group of accounted investments. Publicly listed companiesof often operate under restrictions due to shareholders. forregulations such investments management develops to its aown estimated cash the applicableThus, listing on disclosure of information selective group of flows using publicly available data or analyst forecasts, asdevelops appropriate. shareholders. Thus, for such investments management its own estimated cash flows using publicly available data or analyst forecasts, as appropriate. Impairment of goodwill and intangible assets with indefinite useful lives Impairment of goodwill and intangible assets with indefinite useful lives Determining whether goodwill or intangible assets with indefinite useful lives is impaired requires an estimation of the value-in-use the cash units or group of cash Determining whether goodwill or intangibleofassets withgenerating indefinite useful lives is impaired generating to which goodwill or intangible assets with indefinite has requires an units estimation of the value-in-use of the cash generating units oruseful grouplives of cash been allocated. calculation requires management to estimate future generating unitsThe to value-in-use which goodwill or intangible assets with indefinite usefulthe lives has cash flows expected to arise fromcalculation the cash generating unit and a suitable discount rate been allocated. The value-in-use requires management to estimate the future in order toexpected calculate to present value.the The estimates made in and arriving at thediscount value-in-use cash flows arise from cash generating unit a suitable rate calculation set outpresent in Note value. 9. in order to are calculate The estimates made in arriving at the value-in-use calculation are set out in Note 9. Valuation of defined benefit obligations Valuation of defined benefit obligations The present value of the defined benefit obligations is determined on actuarial basis usingpresent variousvalue assumptions that maybenefit differ from actual developments theactuarial future. These The of the defined obligations is determinedinon basis discount rate and expected salary assumptions include the that determination of the using various assumptions may differ from actual developments in the future. These increases which are reviewed at each reporting date.discount Due to the involved in assumptions include the determination of the ratecomplexities and expected salary the valuation and itsreviewed long-term defined benefit obligations are highly sensitive increases which are at nature, each reporting date. Due to the complexities involved to in changes in these A sensitivity analysisobligations of changes defined benefit the valuation and itsassumptions. long-term nature, defined benefit areinhighly sensitive to obligations to aassumptions. reasonable change in theseanalysis assumptions are set out in Note 17. changes in due these A sensitivity of changes in defined benefit obligations due to a reasonable change in these assumptions are set out in Note 17.
4. Fair value estimation 4. Fair value estimation The levels of fair value hierarchy are defined as follows: The levels of fair value hierarchy are defined as follows: Level 1: Measurement is made by using quoted prices (unadjusted) from active Level 1: market. Measurement is made by using quoted prices (unadjusted) from active Level 2: Measurement is made by means of valuation methods with parameters market. derived directlyisormade indirectly observable marketmethods data. Level 2: Measurement by from means of valuation with parameters Level 3: derived Measurement by means of valuation methods directlyisormade indirectly from observable market data.with parameters not exclusively on observable market data. methods with parameters not Level 3: based Measurement is made by means of valuation based exclusively on observable market data. Derivatives, contingent consideration and option liability are carried at fair value. Derivatives into level consideration 2 of the fair value whereasare contingent consideration Derivatives, fall contingent and hierarchy option liability carried at fair value. and option liability into of the fair hierarchy value hierarchy. Derivatives fall intofall level 2 level of the3 fair value whereas contingent consideration and option liability fall into level 3 of the fair value hierarchy. Derivatives comprise forward exchange contracts. The forward exchange contracts are fair valued using forward exchange rates that are quoted in an active market.contracts are Derivatives comprise forward exchange contracts. The forward exchange fair valued using forward exchange rates that are quoted in an active market. The fair values of contingent consideration and option liability are determined by using valuation techniques based on entity specific estimates. These are estimates are not The fair values of contingent consideration and option liability determined by based using on observable marketbased data and under level 3 of the fair value valuation techniques on hence entity classified specific estimates. These estimates arehierarchy. not based on observable market data and hence classified under level 3 of the fair value hierarchy. The changes in the fair value of level 3 instruments are set out in Note 15. The changes in the fair value of level 3 instruments are set out in Note 15.
5. Revenue 5. Revenue
7. Income 7. Income tax expense tax expense 2014 2014 2013 2013 AED m AED m AED m AED m
2014 2014 2013 2013 AED m AED m AED m AED m Services Services Airport Airport operations operations CargoCargo Information Information technology technology TravelTravel services services OtherOther Sale of goods Sale of goods In-flight catering In-flight catering OtherOther
2,8392,839 1,1661,166 814 814
2,4742,474 1,0771,077 755 755
662 662 544 544 34 34 105 105 5,5155,515 4,9554,955
76 76 (26) (26)
46 (8)
46 (8)
50
38
38
50
The income tax expense foryear thecan yearbe can be reconciled The income tax expense for the reconciled to theto the accounting from continuing operations as follows: accounting profitprofit from continuing operations as follows:
1,7531,753 180 180
1,4071,407 174 174
1,9331,933 1,5811,581 7,4487,448 6,5366,536 6. Operating costscosts 6. Operating 2014 2014 2013 2013 AED m AED m AED m AED m Employee (see below) Employee (see below) Airport operations and cargo - other directdirect costs costs Airport operations and cargo - other Cost of sales Cost of sales RentalRental and lease expenses and lease expenses Depreciation and amortisation Depreciation and amortisation Information technology infrastructure costs costs Information technology infrastructure Sales Sales and marketing expenses and marketing expenses Corporate overheads Corporate overheads
The components The components of income of income tax expense tax expense are: are: Current Current tax tax Deferred Deferred tax credit tax credit
3,2513,251 883 883 747 747 436 436 353 353 345 345 234 234 453 453
2,7712,771 798 798 601 601 372 372 328 328 308 308 194 194 435 435
income ProfitProfit beforebefore income tax tax
916 916
839 839
Tax calculated at domestic tax rates applicable to profits Tax calculated at domestic tax rates applicable to profits in respective tax jurisdictions in respective tax jurisdictions of non-deductible expenses EffectEffect of non-deductible expenses of income exempt from tax EffectEffect of income exempt from tax Recognition of previously unrecognised tax losses Recognition of previously unrecognised tax losses Re-measurement of deferred tax - effect of changes Re-measurement of deferred tax - effect of changes in taxin tax
52 8
52 8 (8) (8) (2) (2)
28 7
rates rates Tax losses for which no deferred tax asset recognised Tax losses for which no deferred tax asset recognised of other EffectEffect of other itemsitems Income tax expense Income tax expense
(1) (1) 2 2 (1) (1) 50 50
-
-
4 1 38
4 1 38
28 7 (2) (2)
Therates tax rates forreconciliation the reconciliation arerates the rates applicable the profits in The tax used used for the aboveabove are the applicable to thetoprofits in the respective tax jurisdictions. the respective tax jurisdictions.
6,7026,702 5,8075,807 Employee costs costs include AED 146 (2013: AED 115 in m) respect of post-employment Employee include AEDm146 m (2013: AEDm) 115 in respect of post-employment benefits (Note(Note 17). 17). benefits
dnata Consolidated Financial Statements
Additional Information
11 11 120
12
12 121
8. Property, plant and equipment (continued)
8. Property, plant and equipment
Land,
Land,
Overview
Emirates
dnata
Group
Emirates Financial Commentary
Emirates Independent Auditor’s Report
dnata Independent Auditor’s Report
Office
and
Plant equipment
and
Plant equipment
leasehold
and
and
Motor
Capital
property AED m
machinery AED m
furniture AED m
vehicles AED m
projects AED m
Total AED m
992
1,260
1,102
28
3,434
Additions Transfer from capital projects
2
1
10
166
117
-
-
19
(28)
(79)
(55)
(4)
(21)
(3)
Discontinued operations
(265)
(203)
(25)
31 March 2013
705
Currency translation differences
1,125
1,156
52 4 -
74
371
(19)
-
(4)
-
-
(2)
(7)
-
45
3
81
(166) (30) (500) 3,112
405
932
873
40
-
2,250
Charge for the year Discontinued operations
35
78
104
4
-
221
5
7
1
(15)
(74)
(66)
(3)
(12)
(3)
Discontinued operations
(162)
(166)
31 March 2013
265
765
889
34
-
1,953
440
360
267
11
81
1,159
Disposals / write off
(20)
-
-
13
(3)
-
(158)
-
-
(18)
(7)
-
(355)
Net book amount at 31 March 2013
and
and
Motor
Capital
property AED m
machinery AED m
furniture AED m
vehicles AED m
projects AED m
705
1,125
1,156
45
81
5
18
105
9
-
137
Additions
66
141
145
7
136
495
Transfer from capital projects
60
5
19
-
(84)
-
Disposals / write off
(9)
(33)
(50)
(1)
(96)
1 April 2013 Acquisition (Note 30)
Currency translation differences 31 March 2014
Total AED m
(3)
(3)
6
6
824
1,262
1,381
58
-
265
765
889
34
(4) 128
3,112
5 3,653
Depreciation 1 April 2013
Depreciation
Continuing operations
leasehold
Cost
-
Currency translation differences Emirates Consolidated Financial Statements
buildings
Acquisition
1 April 2012 dnata Financial Commentary
Office
Cost 1 April 2012
Disposals / write off Financial Information
buildings
-
1,953
2
12
97
-
-
111
Charge for the year
40
73
113
6
-
232
Disposals / write off
-
(30)
(28)
(2)
-
(60)
Acquisition (Note 30)
Currency translation differences 31 March 2014
-
-
1
304
(3)
820
-
1,075
4
38
-
2,237
520
442
306
20
128
1,416
Net book amount at 31 March 2014
The net book amount of property, plant and equipment includes AED 83 m (2013: AED 75 m) in respect of plant and machinery held under finance leases (Note 21). Land of AED 8 m (2013: AED 17 m) is carried at cost and is not depreciated.
dnata Consolidated Financial Statements
Additional Information
122
13
14
123
8. Property, plant and equipment (continued)
8. Property, plant and equipment
Land,
Land,
Overview
Emirates
dnata
Group
Emirates Financial Commentary
Emirates Independent Auditor’s Report
dnata Independent Auditor’s Report
Office
and
Plant equipment
and
Plant equipment
leasehold
and
and
Motor
Capital
property AED m
machinery AED m
furniture AED m
vehicles AED m
projects AED m
Total AED m
992
1,260
1,102
28
3,434
Additions Transfer from capital projects
2
1
10
166
117
-
-
19
(28)
(79)
(55)
(4)
(21)
(3)
Discontinued operations
(265)
(203)
(25)
31 March 2013
705
Currency translation differences
1,125
1,156
52 4 -
74
371
(19)
-
(4)
-
-
(2)
(7)
-
45
3
81
(166) (30) (500) 3,112
405
932
873
40
-
2,250
Charge for the year Discontinued operations
35
78
104
4
-
221
5
7
1
(15)
(74)
(66)
(3)
(12)
(3)
Discontinued operations
(162)
(166)
31 March 2013
265
765
889
34
-
1,953
440
360
267
11
81
1,159
Disposals / write off
(20)
-
-
13
(3)
-
(158)
-
-
(18)
(7)
-
(355)
Net book amount at 31 March 2013
and
and
Motor
Capital
property AED m
machinery AED m
furniture AED m
vehicles AED m
projects AED m
705
1,125
1,156
45
81
5
18
105
9
-
137
Additions
66
141
145
7
136
495
Transfer from capital projects
60
5
19
-
(84)
-
Disposals / write off
(9)
(33)
(50)
(1)
(96)
1 April 2013 Acquisition (Note 30)
Currency translation differences 31 March 2014
Total AED m
(3)
(3)
6
6
824
1,262
1,381
58
-
265
765
889
34
(4) 128
3,112
5 3,653
Depreciation 1 April 2013
Depreciation
Continuing operations
leasehold
Cost
-
Currency translation differences Emirates Consolidated Financial Statements
buildings
Acquisition
1 April 2012 dnata Financial Commentary
Office
Cost 1 April 2012
Disposals / write off Financial Information
buildings
-
1,953
2
12
97
-
-
111
Charge for the year
40
73
113
6
-
232
Disposals / write off
-
(30)
(28)
(2)
-
(60)
Acquisition (Note 30)
Currency translation differences 31 March 2014
-
-
1
304
(3)
820
-
1,075
4
38
-
2,237
520
442
306
20
128
1,416
Net book amount at 31 March 2014
The net book amount of property, plant and equipment includes AED 83 m (2013: AED 75 m) in respect of plant and machinery held under finance leases (Note 21). Land of AED 8 m (2013: AED 17 m) is carried at cost and is not depreciated.
dnata Consolidated Financial Statements
Additional Information
122
13
14
123
9. Intangible assets
9. Intangible assets (continued) Computer software includes an amount of AED 39 m (2013: AED 43 m) in respect of projects under implementation.
Computer
Trade
Customer
Contractual
Goodwill AED m
software AED m
names AED m
relationships AED m
rights AED m
Total AED m
1,400
312
38
12
700
2,462
Cost
Trade names include an amount of AED 52 m (2013: Nil) with indefinite useful lives. It comprises of brands for which there is no foreseeable limit to the period over which they are expected to generate net cash inflows. These assets are an integral part of the long term business strategy of travel services, UK and will continue to grow in future.
Overview
1 April 2012 Acquisition
10
1
-
13
-
24
For the purpose of testing goodwill for impairment, the recoverable amounts for cash generating units or group of cash generating
Emirates
Additions
-
68
-
-
-
68
units have been determined on the basis of value-in-use calculations using cash flow forecasts approved by management covering a
Disposals / write off
-
(20)
-
-
-
(20)
Currency translation differences
(53)
(2)
(2)
(1)
(26)
(84)
Discontinued operations
(48)
(7)
-
-
(56)
(111)
352
36
24
618
2,339
-
158
1
12
255
426
calculations are as follows:
39
4
2
62
107
Cash generating unit / Group of cash generating units
Location
-
dnata
Group
31 March 2013 Amortisation 1 April 2012
Financial Information
Charge for the year Continuing operations
Emirates Financial Commentary
dnata Financial Commentary
Discontinued operations
Emirates Consolidated Financial Statements
-
-
-
3
-
-
-
(1)
Airport services
Singapore
Currency translation differences
-
(1)
-
-
(8)
(9)
Airport services
Switzerland
(17)
Airport services
Australia
Discontinued operations 31 March 2013
1,309
(7)
-
-
(10)
3
188
5
14
302
509
164
31
10
316
1,830
Cost 1 April 2013 Acquisition (Note 30) Additions Disposals / write off Currency translation differences
1,309 371 (37) 58 1,701
352 6 33 (1) 3 393
36 62 4 102
24 64 88
618 74 42 734
2,339 577 33 (37) (1) 107 3,018
1,701
188 44 (1) 1 232 161
5 4 1 10 92
14 10 24 64
302 63 18 383 351
509 121 (1) 20 649 2,369
In-flight catering group
UK
Online travel services
UK
Travel services
UK
Travel services
UAE
Goodwill 2014
2013
AED m
AED m
99 282 35 562 566 154 3 1,701
100 263 425 518 3
Discount rate %
7.0 6.0 10.0 8.0 9.0 9.0 -
Gross Terminal margin growth rate %
21.5 6.7 22.0 14.5 8.0 8.0 -
%
3.0 1.5 3.0 1.5 1.5 1.5 -
1,309
The recoverable value of cash generating units or group of cash generating units would not fall below their carrying amount with a 1% reduction in terminal growth rate or a 1% increase in the discount rate.
Amortisation 1 April 2013 Disposals / write off Currency translation differences 31 March 2014 Net book value at 31 March 2014
124
goodwill allocated to cash generating units or group of cash generating units and the key assumptions used in the value-in-use
(1)
Charge for the year Additional Information
the long term average growth rate for the markets in which the cash generating units or group of cash generating units operate. The
-
31 March 2014 dnata Consolidated Financial Statements
historical trends and growth rate based on management's expectations for market development. The growth rate does not exceed
-
De-recognition (Note 10) dnata Independent Auditor’s Report
key assumptions used in the value-in-use calculations include a risk adjusted pre-tax discount rate, gross margins consistent with
Disposals / write off
Net book value at 31 March 2013 Emirates Independent Auditor’s Report
1,309
period of three to five years. Cash flows beyond such period have been extrapolated using terminal growth rates stated below. The
15
16
125
9. Intangible assets
9. Intangible assets (continued) Computer software includes an amount of AED 39 m (2013: AED 43 m) in respect of projects under implementation.
Computer
Trade
Customer
Contractual
Goodwill AED m
software AED m
names AED m
relationships AED m
rights AED m
Total AED m
1,400
312
38
12
700
2,462
Cost
Trade names include an amount of AED 52 m (2013: Nil) with indefinite useful lives. It comprises of brands for which there is no foreseeable limit to the period over which they are expected to generate net cash inflows. These assets are an integral part of the long term business strategy of travel services, UK and will continue to grow in future.
Overview
1 April 2012 Acquisition
10
1
-
13
-
24
For the purpose of testing goodwill for impairment, the recoverable amounts for cash generating units or group of cash generating
Emirates
Additions
-
68
-
-
-
68
units have been determined on the basis of value-in-use calculations using cash flow forecasts approved by management covering a
Disposals / write off
-
(20)
-
-
-
(20)
Currency translation differences
(53)
(2)
(2)
(1)
(26)
(84)
Discontinued operations
(48)
(7)
-
-
(56)
(111)
352
36
24
618
2,339
-
158
1
12
255
426
calculations are as follows:
39
4
2
62
107
Cash generating unit / Group of cash generating units
Location
-
dnata
Group
31 March 2013 Amortisation 1 April 2012
Financial Information
Charge for the year Continuing operations
Emirates Financial Commentary
dnata Financial Commentary
Discontinued operations
Emirates Consolidated Financial Statements
-
-
-
3
-
-
-
(1)
Airport services
Singapore
Currency translation differences
-
(1)
-
-
(8)
(9)
Airport services
Switzerland
(17)
Airport services
Australia
Discontinued operations 31 March 2013
1,309
(7)
-
-
(10)
3
188
5
14
302
509
164
31
10
316
1,830
Cost 1 April 2013 Acquisition (Note 30) Additions Disposals / write off Currency translation differences
1,309 371 (37) 58 1,701
352 6 33 (1) 3 393
36 62 4 102
24 64 88
618 74 42 734
2,339 577 33 (37) (1) 107 3,018
1,701
188 44 (1) 1 232 161
5 4 1 10 92
14 10 24 64
302 63 18 383 351
509 121 (1) 20 649 2,369
In-flight catering group
UK
Online travel services
UK
Travel services
UK
Travel services
UAE
Goodwill 2014
2013
AED m
AED m
99 282 35 562 566 154 3 1,701
100 263 425 518 3
Discount rate %
7.0 6.0 10.0 8.0 9.0 9.0 -
Gross Terminal margin growth rate %
21.5 6.7 22.0 14.5 8.0 8.0 -
%
3.0 1.5 3.0 1.5 1.5 1.5 -
1,309
The recoverable value of cash generating units or group of cash generating units would not fall below their carrying amount with a 1% reduction in terminal growth rate or a 1% increase in the discount rate.
Amortisation 1 April 2013 Disposals / write off Currency translation differences 31 March 2014 Net book value at 31 March 2014
124
goodwill allocated to cash generating units or group of cash generating units and the key assumptions used in the value-in-use
(1)
Charge for the year Additional Information
the long term average growth rate for the markets in which the cash generating units or group of cash generating units operate. The
-
31 March 2014 dnata Consolidated Financial Statements
historical trends and growth rate based on management's expectations for market development. The growth rate does not exceed
-
De-recognition (Note 10) dnata Independent Auditor’s Report
key assumptions used in the value-in-use calculations include a risk adjusted pre-tax discount rate, gross margins consistent with
Disposals / write off
Net book value at 31 March 2013 Emirates Independent Auditor’s Report
1,309
period of three to five years. Cash flows beyond such period have been extrapolated using terminal growth rates stated below. The
15
16
125
10. Investments in subsidiaries, associates and joint ventures
10. Investments in subsidiaries, associates and joint ventures (continued)
Principal subsidiaries Percentage
Country of
of equity owned Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
Percentage
Country of
of equity
incorporation
owned
incorporation Principal activities
and principal operations
Principal activities
and principal operations
Principal subsidiaries
dnata Travel (UK) Limited
100
Travel agency
United Kingdom
dnata Inc.
100
Aircraft handling services
Philippines
Najm Travel LLC
100
Travel agency
United Arab Emirates
Dnata International Airport Services Pte Ltd
100
Holding company
Singapore
dnata Travel Holdings UK Ltd
100
Travel services
United Kingdom
dnata Singapore Pte Ltd
100
Aircraft handling and catering services
Singapore
Acquired during the year:
Incorporated during the year:
Maritime and Mercantile International Travel
Air Chef srl
100
In-flight catering services
Italy
LLC
80
In-flight catering services
Italy
Dnata GmbH
100 100
Travel agency Holding company
United Arab Emirates Austria
Servizi di Bordo srl Gold Medal Travel Group plc
100
Travel services
United Kingdom
Dnata Switzerland AG
100
Aircraft handling services
Switzerland
Airline Network plc
100
Travel services
United Kingdom
Al Hidaya Travel & Tourism WLL
100
Travel agency
Bahrain
Disposed during the previous year:
Cleopatra International Travel WLL
100
Travel agency
Bahrain
Alpha Flight Services BV
100
In-flight catering services
Netherlands
Dnata Aviation Services Ltd
100
Holding company
United Kingdom
Disposed during the year: Alpha Flight Services EOOD
100
In-flight catering services
Bulgaria
dnata Limited
100
Aircraft handling services
United Kingdom
Mercator Asia Co. Ltd
100
Information Technology services
Thailand
Dnata for Airport Services Ltd
100
Aircraft handling services
Iraq
Dnata Catering Services Ltd
100
Holding company
United Kingdom
Alpha Flight Group Ltd
100
In-flight catering services
United Kingdom
Alpha Flight UK Ltd
100
In-flight catering services
United Kingdom
Alpha Flight Services Pty Ltd
100
In-flight catering services
Australia
Percentage
Country of
Alpha Flight Ireland Ltd
100
In-flight catering services
Ireland
of equity
incorporation
owned
Principal activities
and principal operations
Dubai Express LLC
50
Freight clearing and forwarding
United Arab Emirates
Gerry's Dnata (Private) Ltd
50
Aircraft handling services
Pakistan
Ground Handling Services Co. Ltd
20
Aircraft handling services
P. R. China
Alpha Flight a.s
100
In-flight catering services
Czech Republic
Alpha In-Flight US LLC
100
In-flight catering services
United States of America
Alpha Flight Italia srl
100
Holding company
Italy
Alpha Rocas SA
64.2
In-flight catering services
Romania
49
In-flight catering services
United Arab Emirates
Jordan Flight Catering Company Ltd
35.9
In-flight catering services
Jordan
dnata International Private Limited
100
Travel agency
India
dnata World Travel Limited
75
Holding company
United Kingdom
Travel Republic Limited
75
Online travel services
United Kingdom
Marhaba Bahrain SPC
100
Passenger meet and greet services
Bahrain
Airline Cleaning Services Pty Ltd
100
Aircraft cleaning services
Australia
80
Bakery and packaged food solutions
United Kingdom
Alpha Flight Services UAE
Incorporated during the previous year:
Alpha Flight Services UAE and Jordan Flight Catering Company Ltd qualify as subsidiaries as overall control is exercised by dnata, therefore results of these companies are consolidated. dnata's beneficial interest is 80% in Dnata for Airport Services Ltd and 100% in dnata World Travel Ltd and Travel Republic Ltd. None of the subsidiaries have non-controlling interests that are material to dnata.
Principal associates
Oman United Agencies Travel LLC
50
Corporate Travel services
Oman
Hogg Robinson Group plc
22
Corporate Travel services
United Kingdom
Mindpearl AG
49
Contact centre operations
Switzerland
Mindpearl South Africa (Pty) Ltd
49
Contact centre operations
South Africa
36
In-flight catering services
Italy
Acquired during the year: SEA Services srl
Acquired during the previous year: En Route International Limited
126
17
18
127
10. Investments in subsidiaries, associates and joint ventures
10. Investments in subsidiaries, associates and joint ventures (continued)
Principal subsidiaries Percentage
Country of
of equity owned Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Additional Information
Percentage
Country of
of equity
incorporation
owned
incorporation Principal activities
and principal operations
Principal activities
and principal operations
Principal subsidiaries
dnata Travel (UK) Limited
100
Travel agency
United Kingdom
dnata Inc.
100
Aircraft handling services
Philippines
Najm Travel LLC
100
Travel agency
United Arab Emirates
Dnata International Airport Services Pte Ltd
100
Holding company
Singapore
dnata Travel Holdings UK Ltd
100
Travel services
United Kingdom
dnata Singapore Pte Ltd
100
Aircraft handling and catering services
Singapore
Acquired during the year:
Incorporated during the year:
Maritime and Mercantile International Travel
Air Chef srl
100
In-flight catering services
Italy
LLC
80
In-flight catering services
Italy
Dnata GmbH
100 100
Travel agency Holding company
United Arab Emirates Austria
Servizi di Bordo srl Gold Medal Travel Group plc
100
Travel services
United Kingdom
Dnata Switzerland AG
100
Aircraft handling services
Switzerland
Airline Network plc
100
Travel services
United Kingdom
Al Hidaya Travel & Tourism WLL
100
Travel agency
Bahrain
Disposed during the previous year:
Cleopatra International Travel WLL
100
Travel agency
Bahrain
Alpha Flight Services BV
100
In-flight catering services
Netherlands
Dnata Aviation Services Ltd
100
Holding company
United Kingdom
Disposed during the year: Alpha Flight Services EOOD
100
In-flight catering services
Bulgaria
dnata Limited
100
Aircraft handling services
United Kingdom
Mercator Asia Co. Ltd
100
Information Technology services
Thailand
Dnata for Airport Services Ltd
100
Aircraft handling services
Iraq
Dnata Catering Services Ltd
100
Holding company
United Kingdom
Alpha Flight Group Ltd
100
In-flight catering services
United Kingdom
Alpha Flight UK Ltd
100
In-flight catering services
United Kingdom
Alpha Flight Services Pty Ltd
100
In-flight catering services
Australia
Percentage
Country of
Alpha Flight Ireland Ltd
100
In-flight catering services
Ireland
of equity
incorporation
owned
Principal activities
and principal operations
Dubai Express LLC
50
Freight clearing and forwarding
United Arab Emirates
Gerry's Dnata (Private) Ltd
50
Aircraft handling services
Pakistan
Ground Handling Services Co. Ltd
20
Aircraft handling services
P. R. China
Alpha Flight a.s
100
In-flight catering services
Czech Republic
Alpha In-Flight US LLC
100
In-flight catering services
United States of America
Alpha Flight Italia srl
100
Holding company
Italy
Alpha Rocas SA
64.2
In-flight catering services
Romania
49
In-flight catering services
United Arab Emirates
Jordan Flight Catering Company Ltd
35.9
In-flight catering services
Jordan
dnata International Private Limited
100
Travel agency
India
dnata World Travel Limited
75
Holding company
United Kingdom
Travel Republic Limited
75
Online travel services
United Kingdom
Marhaba Bahrain SPC
100
Passenger meet and greet services
Bahrain
Airline Cleaning Services Pty Ltd
100
Aircraft cleaning services
Australia
80
Bakery and packaged food solutions
United Kingdom
Alpha Flight Services UAE
Incorporated during the previous year:
Alpha Flight Services UAE and Jordan Flight Catering Company Ltd qualify as subsidiaries as overall control is exercised by dnata, therefore results of these companies are consolidated. dnata's beneficial interest is 80% in Dnata for Airport Services Ltd and 100% in dnata World Travel Ltd and Travel Republic Ltd. None of the subsidiaries have non-controlling interests that are material to dnata.
Principal associates
Oman United Agencies Travel LLC
50
Corporate Travel services
Oman
Hogg Robinson Group plc
22
Corporate Travel services
United Kingdom
Mindpearl AG
49
Contact centre operations
Switzerland
Mindpearl South Africa (Pty) Ltd
49
Contact centre operations
South Africa
36
In-flight catering services
Italy
Acquired during the year: SEA Services srl
Acquired during the previous year: En Route International Limited
126
17
18
127
10. Investments in subsidiaries, associates and joint ventures (continued) 10. Investments in subsidiaries, associates and joint ventures (continued)
10. Investments in subsidiaries, associates and joint ventures (continued) Percentage
Country of
of equity
incorporation
owned Overview
Principal activities
BalanceBalance broughtbrought forwardforward
50
Logistics services
United Arab Emirates
dnata Travel Limited
70
Travel agency
Saudi Arabia
Emirates
Transguard Group LLC
100
Security services
United Arab Emirates
Toll Dnata Airport Services Pty Ltd
50
Aircraft handling services
Australia
dnata
Dunya Travel LLC
50
Travel agency
United Arab Emirates
othermovements equity movements Share ofShare otherof equity
25.5
Logistics services
United Arab Emirates
Dividends Dividends
Najm Travels LLC
50
Travel agency
Afghanistan
Al Tawfeeq Travel (Dnata Travels) LLC
50
Travel agency
Qatar
33.3
In-flight catering services
South Africa
Group
dnata Newrest (Pty) Ltd Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
Incorporated during the previous year: 50
Travel services
United Arab Emirates
Alpha LSG Ltd
50
In-flight catering services
United Kingdom
533 477
477
3
3
-
-
Investments during Investments during the yearthe year
6
6
99
99
22
22
22
22
(23) (18)
(18)
of results Share ofShare results other comprehensive Share ofShare otherof comprehensive income income
(23) 6 (5)
De-recognition / dilution due to in change in ownership De-recognition / dilution due to change ownership interest interest (Note 28) TransferTransfer (Note 28) translation differences CurrencyCurrency translation differences
(47)
(16)
(16)
(5) (28)
6
(28)
(47)
50 100
Passenger meet and greet services Security services
India United Arab Emirates
Although the percentage of equity owned in dnata Travel Limited, dnata Newrest (Pty) Ltd and SDV UAE LLC are 70%, 33.3% and
dnata Independent Auditor’s Report
312014. March 2014. 31 March Aggregate information of associates, which not individually to Aggregate financialfinancial information of associates, which are not are individually materialmaterial to set out below: dnata, isdnata, set outis below:
2014 2014 2013 2013 AED m AED mAED m AED m ofof results of associates Share ofShare results associates
26
26
(15)
(15) (18)
(18)
11
11
-
-
(9)
(9)
total comprehensive of associates Share ofShare totalof comprehensive income income of associates
487 533
533
(15)
7
7
Aggregate of investments in associates Aggregate carryingcarrying value ofvalue investments in associates
srl, to increase its shareholding to ainterest 100% interest (Note The retained in Chef srl,Chef to increase its shareholding to a 100% (Note 30). The30). retained interest interest in
Fair of retained (Note 30) Fair value ofvalue retained interest interest (Note 30)
118
118
Less: Carrying of investment Less: Carrying amount amount of investment
(47)
(47)
De-recognition of goodwill De-recognition of goodwill (Note 9)(Note 9)
(37)
(37)
on remeasurement of retained Gain onGain remeasurement of retained interestinterest
34
34
151
26
8
8
151 135
135
set out below: dnata, isdnata, set outis below:
2014 2014 2013 2013 AED m AED mAED m AED m
gain 34 of m AED as below: set out below: gain of AED as 34 setmout
2014 2014 AED m AED m
26
Aggregate information joint ventures, which not individually to Aggregate financialfinancial information of jointof ventures, which are not are individually materialmaterial to
joint venture at the acquisition was remeasured to fairresulting value resulting the jointthe venture at the acquisition date wasdate remeasured to fair value in a netin a net
and are subject to joint control.
renamed as Air Chef srl.
made,necessary, where necessary, for theofeffect of significant events between 1 January 2014 and made, where for the effect significant events between 1 January 2014 and
6
in the ownership of venture a joint venture ChangeChange in the ownership interestinterest of a joint
25.5% respectively, they are subject to joint control. dnata's beneficial interest in Transguard Group LLC and Transecure LLC is 50%
Servair Air Chef srl was classified as a subsidiary after acqusition of the remaining 50% interest. Post acquisistion it has been
statements as prepared above have been used and appropriate adjustments have been statements as prepared above have been used and appropriate adjustments have been
other comprehensive of associates Share ofShare otherof comprehensive income income of associates
(15) 487
6
On 15 May 2013,acquired dnata acquired the remaining 50% interest a joint venture, Servair Air On 15 May 2013, dnata the remaining 50% interest in a jointinventure, Servair Air
Incorporated during the year: India Premier Services Private Ltd Transecure LLC
533
Acquisition (Note 30) Acquisition (Note 30)
BalanceBalance carried carried forwardforward
Travel Counsellors LLC
of applying the method equity method of accounting and disclosures, the financial purposepurpose of applying the equity of accounting and disclosures, the financial
2014 2014 2013 2013 AED m AED mAED m AED m
PAL PAN Airport Logistics LLC
SDV UAE LLC
December to comply the accelerated reporting timetable of For dnata. December 2013 to2013 comply with thewith accelerated reporting timetable of dnata. the For the
Movement of investments accounted forthe using themethod equity method Movement of investments accounted for using equity
and principal operations
Principal joint ventures
The financial statements of an associate have been prepared from 1 January The financial statements of an associate have been prepared from 1 January 2013 to 2013 31 to 31
ofof results of joint ventures Share ofShare results joint ventures
(4)
(4)
(4)
(4)
other comprehensive a joint venture Share ofShare otherof comprehensive income income of a jointofventure
(8)
(8)
-
-
(12)
(12)
(4)
(4)
336 398
398
total comprehensive joint ventures Share ofShare totalof comprehensive income income of joint of ventures
Aggregate of investments joint ventures 336 Aggregate carryingcarrying value ofvalue investments in joint in ventures
on remeasurement is included underofshare ofof results of investments accounted The gainThe on gain remeasurement is included under share results investments accounted using themethod equity method in the consolidated statement. for usingfor the equity in the consolidated income income statement.
dnata Consolidated Financial Statements
Additional Information
128
19
20
20
129
10. Investments in subsidiaries, associates and joint ventures (continued) 10. Investments in subsidiaries, associates and joint ventures (continued)
10. Investments in subsidiaries, associates and joint ventures (continued) Percentage
Country of
of equity
incorporation
owned Overview
Principal activities
BalanceBalance broughtbrought forwardforward
50
Logistics services
United Arab Emirates
dnata Travel Limited
70
Travel agency
Saudi Arabia
Emirates
Transguard Group LLC
100
Security services
United Arab Emirates
Toll Dnata Airport Services Pty Ltd
50
Aircraft handling services
Australia
dnata
Dunya Travel LLC
50
Travel agency
United Arab Emirates
othermovements equity movements Share ofShare otherof equity
25.5
Logistics services
United Arab Emirates
Dividends Dividends
Najm Travels LLC
50
Travel agency
Afghanistan
Al Tawfeeq Travel (Dnata Travels) LLC
50
Travel agency
Qatar
33.3
In-flight catering services
South Africa
Group
dnata Newrest (Pty) Ltd Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
Incorporated during the previous year: 50
Travel services
United Arab Emirates
Alpha LSG Ltd
50
In-flight catering services
United Kingdom
533 477
477
3
3
-
-
Investments during Investments during the yearthe year
6
6
99
99
22
22
22
22
(23) (18)
(18)
of results Share ofShare results other comprehensive Share ofShare otherof comprehensive income income
(23) 6 (5)
De-recognition / dilution due to in change in ownership De-recognition / dilution due to change ownership interest interest (Note 28) TransferTransfer (Note 28) translation differences CurrencyCurrency translation differences
(47)
(16)
(16)
(5) (28)
6
(28)
(47)
50 100
Passenger meet and greet services Security services
India United Arab Emirates
Although the percentage of equity owned in dnata Travel Limited, dnata Newrest (Pty) Ltd and SDV UAE LLC are 70%, 33.3% and
dnata Independent Auditor’s Report
312014. March 2014. 31 March Aggregate information of associates, which not individually to Aggregate financialfinancial information of associates, which are not are individually materialmaterial to set out below: dnata, isdnata, set outis below:
2014 2014 2013 2013 AED m AED mAED m AED m ofof results of associates Share ofShare results associates
26
26
(15)
(15) (18)
(18)
11
11
-
-
(9)
(9)
total comprehensive of associates Share ofShare totalof comprehensive income income of associates
487 533
533
(15)
7
7
Aggregate of investments in associates Aggregate carryingcarrying value ofvalue investments in associates
srl, to increase its shareholding to ainterest 100% interest (Note The retained in Chef srl,Chef to increase its shareholding to a 100% (Note 30). The30). retained interest interest in
Fair of retained (Note 30) Fair value ofvalue retained interest interest (Note 30)
118
118
Less: Carrying of investment Less: Carrying amount amount of investment
(47)
(47)
De-recognition of goodwill De-recognition of goodwill (Note 9)(Note 9)
(37)
(37)
on remeasurement of retained Gain onGain remeasurement of retained interestinterest
34
34
151
26
8
8
151 135
135
set out below: dnata, isdnata, set outis below:
2014 2014 2013 2013 AED m AED mAED m AED m
gain 34 of m AED as below: set out below: gain of AED as 34 setmout
2014 2014 AED m AED m
26
Aggregate information joint ventures, which not individually to Aggregate financialfinancial information of jointof ventures, which are not are individually materialmaterial to
joint venture at the acquisition was remeasured to fairresulting value resulting the jointthe venture at the acquisition date wasdate remeasured to fair value in a netin a net
and are subject to joint control.
renamed as Air Chef srl.
made,necessary, where necessary, for theofeffect of significant events between 1 January 2014 and made, where for the effect significant events between 1 January 2014 and
6
in the ownership of venture a joint venture ChangeChange in the ownership interestinterest of a joint
25.5% respectively, they are subject to joint control. dnata's beneficial interest in Transguard Group LLC and Transecure LLC is 50%
Servair Air Chef srl was classified as a subsidiary after acqusition of the remaining 50% interest. Post acquisistion it has been
statements as prepared above have been used and appropriate adjustments have been statements as prepared above have been used and appropriate adjustments have been
other comprehensive of associates Share ofShare otherof comprehensive income income of associates
(15) 487
6
On 15 May 2013,acquired dnata acquired the remaining 50% interest a joint venture, Servair Air On 15 May 2013, dnata the remaining 50% interest in a jointinventure, Servair Air
Incorporated during the year: India Premier Services Private Ltd Transecure LLC
533
Acquisition (Note 30) Acquisition (Note 30)
BalanceBalance carried carried forwardforward
Travel Counsellors LLC
of applying the method equity method of accounting and disclosures, the financial purposepurpose of applying the equity of accounting and disclosures, the financial
2014 2014 2013 2013 AED m AED mAED m AED m
PAL PAN Airport Logistics LLC
SDV UAE LLC
December to comply the accelerated reporting timetable of For dnata. December 2013 to2013 comply with thewith accelerated reporting timetable of dnata. the For the
Movement of investments accounted forthe using themethod equity method Movement of investments accounted for using equity
and principal operations
Principal joint ventures
The financial statements of an associate have been prepared from 1 January The financial statements of an associate have been prepared from 1 January 2013 to 2013 31 to 31
ofof results of joint ventures Share ofShare results joint ventures
(4)
(4)
(4)
(4)
other comprehensive a joint venture Share ofShare otherof comprehensive income income of a jointofventure
(8)
(8)
-
-
(12)
(12)
(4)
(4)
336 398
398
total comprehensive joint ventures Share ofShare totalof comprehensive income income of joint of ventures
Aggregate of investments joint ventures 336 Aggregate carryingcarrying value ofvalue investments in joint in ventures
on remeasurement is included underofshare ofof results of investments accounted The gainThe on gain remeasurement is included under share results investments accounted using themethod equity method in the consolidated statement. for usingfor the equity in the consolidated income income statement.
dnata Consolidated Financial Statements
Additional Information
128
19
20
20
129
11. Advance lease rentals 11. Advance lease rentals 2014 2014 2013 2013 AED m AED mAED m AED m
Overview
Emirates
brought forward BalanceBalance brought forward Charge for the year Charge for the year forward BalanceBalance carriedcarried forward
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
(1)
(1)
25
25
27
27
(1)
(1)
26
26
are written offthere whenisthere is no expectation of further recovery. accountaccount are written off when no expectation of further recovery.
Food and beverage Food and beverage Plant and machinery spares and consumables Plant and machinery - spares- and consumables
38
38
32
32
25
Other Other
21
25
19
19
21
21
21
84
84
72
72
13.and Trade andreceivables other receivables 13. Trade other
Movements in the provision for impairment trade receivables are as follows: Movements in the provision for impairment of tradeofreceivables are as follows:
Trade receivables net of provision Trade receivables - net of-provision Prepayments Prepayments
948
948
114
114
66
66
(Note 28) RelatedRelated parties parties (Note 28) Deposits andreceivables other receivables Deposits and other
485
485
404
404
270
270
295
295
Less: Receivable over one year Less: Receivable over one year
brought forward BalanceBalance brought forward Acquisition Acquisition
45
45
for the year Charge Charge for the year Unused amounts reversed Unused amounts reversed Amounts off as uncollectible Amounts written written off as uncollectible Currency translation differences Currency translation differences forward BalanceBalance carriedcarried forward
49
6
6
-
-
20
20
10
10
(9)
(9)
(8)
(8)
2 56
779
779
1,817 1,817 1,544 1,544 (34) (35) (35) (34) 1,783 1,783 1,509 1,509
(55)
52 (55)
-
-
52 (55)
52 (55)
Trade payables and accruals Trade payables and accruals Related parties (Note 28) Related parties (Note 28)
31
net of deferred tax method method net of deferred tax
Customer Customer depositsdeposits Dividend Dividend payable payable
12
12
-
-
12
12
Share of comprehensive other comprehensive of of other income income of investment accounted for the usingequity the equity investment accounted for using other movement equity movement of investment Share ofShare otherofequity of investment accounted themethod equity method accounted for usingfor theusing equity
2
2
(1)
(1)
1
1
Other payables Other payables -
-
2
2
2
2
11
1
1
12
12
(12)
(12)
41
41
-
-
41
41
(1)
(1)
Net investment hedge (Note 20) Net investment hedge (Note 20)
(15)
(15)
-
-
(15)
(15)
2
(1)
(1)
Share
56
45
45
net of deferred tax method method net of deferred tax
13
13
1
1
14
14
other movement equity movement of investment Share ofShare otherofequity of investment accounted themethod equity method accounted for usingfor theusing equity
-
-
3
3
3
3
50
50
5
5
55
55
Share of comprehensive other comprehensive of of other income income of investments accounted for the usingequity the equity investments accounted for using
312014 March 2014 31 March
6 months Above 6Above months
Other receivables derivative instruments AED 2 mprevious in the previous Other receivables include include derivative financialfinancial instruments of AED of 2m in the year year (Note15). (Note15).
457
457
331
331
77
77
31
31
65
65
54
54
599
599
416
416
187 200 190
1,643 1,268 24
97 115 101 187 135
31
24 200 260 190 166
1,268 97 101 135 24 260 166
2,3902,051 2,051 (185) (185) (166) (166) 2,205 2,2051,885 1,885 2,390
Less: Payable Less: Payable over oneover yearone year
The non-current portion represents the deferred and contingent consideration related to a The non-current portion represents the deferred and contingent consideration related to a subsidary during year31 ended 312012. March It also includes the fair subsidary acquiredacquired during the yearthe ended March It 2012. also includes the fair value of value of issued to acquire a non-controlling in a subsidiary during the options options issued to acquire a non-controlling interest interest in a subsidiary acquiredacquired during the year (Note 30). previousprevious year (Note 30). The movements in fair of values of contingent consideration and options to acquire The movements in fair values contingent consideration and options to acquire non- noncontrolling interest are as follows. controlling interest are as follows. 2014 2014 2013 2013 AED m AED mAED m AED m
of receivables past not impaired is as follows: Ageing Ageing of receivables that arethat pastare due butdue notbut impaired is as follows:
3 months Below 3Below months 3-6 months 3-6 months
24
Share
11
2014 2014 2013 2013 AED m AED mAED m AED m
1,643 115
312013 March 2013 31 March translation differences CurrencyCurrency translation differences
The maximum exposure to risk credit of current tradeother and receivables other receivables The maximum exposure to credit of risk current trade and at the at the reporting datecarrying is the carrying each of receivable mentioned reporting date is the value ofvalue eachof class ofclass receivable mentioned above. above.
92
92
82
82
-
-
9
9
7
7
7
7
Remeasurement gain Remeasurement gain translation differences CurrencyCurrency translation differences
(10)
(10)
-
-
8
8
carried forward BalanceBalance carried forward
97
97
BalanceBalance broughtbrought forwardforward Acquisition Acquisition Interest Interest
(6) 92
(6) 92
The remeasurement gain represents a decrease in the contingent consideration The remeasurement gain represents a decrease in the contingent consideration payable.payable. This is recognised in the consolidated statement underoperating other operating This gain is gain recognised in the consolidated income income statement under other income. income.
dnata Consolidated Financial Statements
Other payables derivative instruments AEDThese 5 m.relate Thesetorelate Other payables include include derivative financialfinancial instruments of AED of 5 m. a to a subsidiary which entered into currency to manage its currency foreign currency subsidiary which entered into currency forward forward contractscontracts to manage its foreign exposure. The notional outstanding m AED (2013: exposure. The notional principalprincipal outstanding is AED is 442AED m 442 (2013: 398AED m) 398 and m) and are expected cover exposures from oneto month to one year.are These are contractscontracts are expected to coverto exposures ranging ranging from one month one year. These
Additional Information
130
49
52
2014 2014 2013 2013 AED m AED mAED m AED m
Employee leave pay Employee leave pay Airlines Airlines
Net investment hedge (Note 20) Net investment hedge (Note 20)
Theclasses other classes trade andreceivables other receivables do not contain impaired The other of tradeofand other do not contain impaired assets. assets. 2014 2014 2013 2013 AED m AED mAED m AED m
Translation Translation reserve reserveOther Other Total Total AED m AED mAED m AED mAED m AED m 1 April 2012 1 April 2012 translation differences CurrencyCurrency translation differences
2014 2014 2013 2013 AED m AED mAED m AED m 2014 2014 2013 2013 AED m AED mAED m AED m
Financial Information
Emirates Financial Commentary
26
15.and Trade and other payables 15. Trade other payables
14.reserves Other reserves 14. Other
customers who in difficult economic situations are unable to their meet their customers who are in are difficult economic situations and areand unable to meet obligations. This charge is included in operating costs. Amounts to the provision obligations. This charge is included in operating costs. Amounts chargedcharged to the provision
12. Inventories 12. Inventories
dnata
Group
26
The impairment on receivables trade receivables recognised the consolidated The impairment charge charge on trade recognised in the in consolidated incomeincome statement themainly year mainly to commercial, travel agency and airline statement during during the year relates relates to commercial, travel agency and airline
not designated as under hedgesIAS under not designated as hedges 39. IAS 39.
21
21
22
22
131
11. Advance lease rentals 11. Advance lease rentals 2014 2014 2013 2013 AED m AED mAED m AED m
Overview
Emirates
brought forward BalanceBalance brought forward Charge for the year Charge for the year forward BalanceBalance carriedcarried forward
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
(1)
(1)
25
25
27
27
(1)
(1)
26
26
are written offthere whenisthere is no expectation of further recovery. accountaccount are written off when no expectation of further recovery.
Food and beverage Food and beverage Plant and machinery spares and consumables Plant and machinery - spares- and consumables
38
38
32
32
25
Other Other
21
25
19
19
21
21
21
84
84
72
72
13.and Trade andreceivables other receivables 13. Trade other
Movements in the provision for impairment trade receivables are as follows: Movements in the provision for impairment of tradeofreceivables are as follows:
Trade receivables net of provision Trade receivables - net of-provision Prepayments Prepayments
948
948
114
114
66
66
(Note 28) RelatedRelated parties parties (Note 28) Deposits andreceivables other receivables Deposits and other
485
485
404
404
270
270
295
295
Less: Receivable over one year Less: Receivable over one year
brought forward BalanceBalance brought forward Acquisition Acquisition
45
45
for the year Charge Charge for the year Unused amounts reversed Unused amounts reversed Amounts off as uncollectible Amounts written written off as uncollectible Currency translation differences Currency translation differences forward BalanceBalance carriedcarried forward
49
6
6
-
-
20
20
10
10
(9)
(9)
(8)
(8)
2 56
779
779
1,817 1,817 1,544 1,544 (34) (35) (35) (34) 1,783 1,783 1,509 1,509
(55)
52 (55)
-
-
52 (55)
52 (55)
Trade payables and accruals Trade payables and accruals Related parties (Note 28) Related parties (Note 28)
31
net of deferred tax method method net of deferred tax
Customer Customer depositsdeposits Dividend Dividend payable payable
12
12
-
-
12
12
Share of comprehensive other comprehensive of of other income income of investment accounted for the usingequity the equity investment accounted for using other movement equity movement of investment Share ofShare otherofequity of investment accounted themethod equity method accounted for usingfor theusing equity
2
2
(1)
(1)
1
1
Other payables Other payables -
-
2
2
2
2
11
1
1
12
12
(12)
(12)
41
41
-
-
41
41
(1)
(1)
Net investment hedge (Note 20) Net investment hedge (Note 20)
(15)
(15)
-
-
(15)
(15)
2
(1)
(1)
Share
56
45
45
net of deferred tax method method net of deferred tax
13
13
1
1
14
14
other movement equity movement of investment Share ofShare otherofequity of investment accounted themethod equity method accounted for usingfor theusing equity
-
-
3
3
3
3
50
50
5
5
55
55
Share of comprehensive other comprehensive of of other income income of investments accounted for the usingequity the equity investments accounted for using
312014 March 2014 31 March
6 months Above 6Above months
Other receivables derivative instruments AED 2 mprevious in the previous Other receivables include include derivative financialfinancial instruments of AED of 2m in the year year (Note15). (Note15).
457
457
331
331
77
77
31
31
65
65
54
54
599
599
416
416
187 200 190
1,643 1,268 24
97 115 101 187 135
31
24 200 260 190 166
1,268 97 101 135 24 260 166
2,3902,051 2,051 (185) (185) (166) (166) 2,205 2,2051,885 1,885 2,390
Less: Payable Less: Payable over oneover yearone year
The non-current portion represents the deferred and contingent consideration related to a The non-current portion represents the deferred and contingent consideration related to a subsidary during year31 ended 312012. March It also includes the fair subsidary acquiredacquired during the yearthe ended March It 2012. also includes the fair value of value of issued to acquire a non-controlling in a subsidiary during the options options issued to acquire a non-controlling interest interest in a subsidiary acquiredacquired during the year (Note 30). previousprevious year (Note 30). The movements in fair of values of contingent consideration and options to acquire The movements in fair values contingent consideration and options to acquire non- noncontrolling interest are as follows. controlling interest are as follows. 2014 2014 2013 2013 AED m AED mAED m AED m
of receivables past not impaired is as follows: Ageing Ageing of receivables that arethat pastare due butdue notbut impaired is as follows:
3 months Below 3Below months 3-6 months 3-6 months
24
Share
11
2014 2014 2013 2013 AED m AED mAED m AED m
1,643 115
312013 March 2013 31 March translation differences CurrencyCurrency translation differences
The maximum exposure to risk credit of current tradeother and receivables other receivables The maximum exposure to credit of risk current trade and at the at the reporting datecarrying is the carrying each of receivable mentioned reporting date is the value ofvalue eachof class ofclass receivable mentioned above. above.
92
92
82
82
-
-
9
9
7
7
7
7
Remeasurement gain Remeasurement gain translation differences CurrencyCurrency translation differences
(10)
(10)
-
-
8
8
carried forward BalanceBalance carried forward
97
97
BalanceBalance broughtbrought forwardforward Acquisition Acquisition Interest Interest
(6) 92
(6) 92
The remeasurement gain represents a decrease in the contingent consideration The remeasurement gain represents a decrease in the contingent consideration payable.payable. This is recognised in the consolidated statement underoperating other operating This gain is gain recognised in the consolidated income income statement under other income. income.
dnata Consolidated Financial Statements
Other payables derivative instruments AEDThese 5 m.relate Thesetorelate Other payables include include derivative financialfinancial instruments of AED of 5 m. a to a subsidiary which entered into currency to manage its currency foreign currency subsidiary which entered into currency forward forward contractscontracts to manage its foreign exposure. The notional outstanding m AED (2013: exposure. The notional principalprincipal outstanding is AED is 442AED m 442 (2013: 398AED m) 398 and m) and are expected cover exposures from oneto month to one year.are These are contractscontracts are expected to coverto exposures ranging ranging from one month one year. These
Additional Information
130
49
52
2014 2014 2013 2013 AED m AED mAED m AED m
Employee leave pay Employee leave pay Airlines Airlines
Net investment hedge (Note 20) Net investment hedge (Note 20)
Theclasses other classes trade andreceivables other receivables do not contain impaired The other of tradeofand other do not contain impaired assets. assets. 2014 2014 2013 2013 AED m AED mAED m AED m
Translation Translation reserve reserveOther Other Total Total AED m AED mAED m AED mAED m AED m 1 April 2012 1 April 2012 translation differences CurrencyCurrency translation differences
2014 2014 2013 2013 AED m AED mAED m AED m 2014 2014 2013 2013 AED m AED mAED m AED m
Financial Information
Emirates Financial Commentary
26
15.and Trade and other payables 15. Trade other payables
14.reserves Other reserves 14. Other
customers who in difficult economic situations are unable to their meet their customers who are in are difficult economic situations and areand unable to meet obligations. This charge is included in operating costs. Amounts to the provision obligations. This charge is included in operating costs. Amounts chargedcharged to the provision
12. Inventories 12. Inventories
dnata
Group
26
The impairment on receivables trade receivables recognised the consolidated The impairment charge charge on trade recognised in the in consolidated incomeincome statement themainly year mainly to commercial, travel agency and airline statement during during the year relates relates to commercial, travel agency and airline
not designated as under hedgesIAS under not designated as hedges 39. IAS 39.
21
21
22
22
131
16. Provisions 16. Provisions 2014 2014 2013 2013 AED m AED mAED m AED m Non-current Non-current Overview
Retirement Retirement benefit obligations benefit obligations (Note 17) (Note 17) Other provisions Other provisions (Note 18) (Note 18)
465
430
430
35
35
9
9
500 439
439
500 Emirates
In accordance In accordance with thewith provisions the provisions of IAS 19, of IAS management 19, management has carried has carried out an out exercise an exercise to to
receivable under the provident are subject to vesting rules,are which are Benefits Benefits receivable under the provident scheme scheme are subject to vesting rules, which dependent a participating employee's length of service. at the an employee dependent upon a upon participating employee's length of service. If at theIftime an time employee
assess the assess present the present value ofvalue its defined of its defined benefit benefit obligations obligations at 31 March at 31 2014 Marchin 2014 respect in respect of of employees' employees' end of service end of benefits service benefits payablepayable under relevant under relevant local regulations local regulations and contractual and contractual The liabilities The liabilities recognised recognised in the consolidated in the consolidated statement statement of financial of financial positionposition are: are: 2014 2014 2013 2013 AED m AED mAED m AED m
CurrentCurrent Other provisions Other provisions (Note 18) (Note 18)
dnata
17. Retirement obligations (continued) 17. Retirement benefit benefit obligations (continued)
arrangements. arrangements. 465
5
5
19
19
FundedFunded schemes schemes
5
5
19
19
Present Present value ofvalue defined of defined benefit obligations benefit obligations
505 458
458
505
Less: Fair Less: value Fair ofvalue plan assets of plan assets
leaves employment, the accumulated vested amount, including investment returns leaves employment, the accumulated vested amount, including investment returns is less is less end of benefits service benefits that have would havepayable been payable that employee than thethan endthe of service that would been to that to employee under under local regulations, dnatathepays the shortfall to the employee. relevantrelevant local regulations, dnata pays shortfall amount amount directly directly to the employee. However, if the accumulated vested amount end of benefits service benefits that would However, if the accumulated vested amount exceeds exceeds the end the of service that would have been payable to an employee under relevant local regulations, the employee have been payable to an employee under relevant local regulations, the employee receivesreceives between seventy five and one hundred percent of their fund balance. Vested between seventy five and one hundred percent of their fund balance. Vested assets ofassets the of the are not available or its creditors in any circumstances. scheme scheme are not available to dnatatoordnata its creditors in any circumstances.
314 (270) 44
Group
314
297
297
(270) (245)
(245)
44
52
52
421
421 378
378
LiabilityLiability recognised recognised in consolidated in consolidated statement statement of financial of financial
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
positionposition
465
465 430
430
92
92
79
79
88
88
76
76
4
4
3
3
FundedFunded schemes schemes
The assessment of the present of defined obligations The assessment of the present value ofvalue defined benefit benefit obligations assumedassumed expectedexpected salary increases averaging 4.5%4.5%) (2013:and 4.5%) and a discount rate of(2013: 4.75%4.0%) (2013:per 4.0%) per salary increases averaging 4.5% (2013: a discount rate of 4.75%
a) Parent a) company Parent company
The present values of the defined obligations at 31 2014 Marchwere 2014 were annum. annum. The present values of the defined benefit benefit obligations at 31 March computed using the actuarial assumptions set out above. computed using the actuarial assumptions set out above.
Senior employees Senior employees based inbased the UAE in the participate UAE participate in a defined in a defined benefit benefit provident provident scheme scheme to to which dnata whichcontributes dnata contributes a specified a specified percentage percentage of basicof salary basicbased salaryupon basedthe upon employee’s the employee’s grade and grade duration and duration of service. of service. Amounts Amounts contributed contributed are invested are invested in a trustee in a administered trustee administered scheme scheme and accumulate and accumulate along with along returns with returns earned on earned investments. on investments. Contributions Contributions are made are made on a monthly on a monthly basis irrespective basis irrespective of fund of performance fund performance and are and not are pooled, not pooled, but are but separately are separately identifiable identifiable and attributable and attributable to eachtoparticipant. each participant. The fund Thecomprises fund comprises a diverse a diverse mix of mix of managed managed funds and funds investment and investment decisions decisions are controlled are controlled directly directly by the by participating the participating employees. employees.
BalanceBalance broughtbrought forwardforward Contributions Contributions receivedreceived paid Benefits Benefits paid in fair value Change Change in fair value carried forward BalanceBalance carried forward
76
76
67
67
14
14
12
12
(6)
(6)
(5)
(5)
4
4
2
2
88
88
76
76
Employees of a subsidiary in Switzerland participate in a defined benefit plan. The Swiss Employees of a subsidiary in Switzerland participate in a defined benefit plan. The Swiss plan is by funded bycontribution way of contribution to an insurance plan is funded way of to an insurance policy. policy.
2014 2014 2013 2013 AED m AED mAED m AED m of defined funded defined benefit obligations Present Present value of value funded benefit obligations Fair value of plan assets Fair value of plan assets
Financial Information
2014 2014 2013 2013 AED m AED mAED m AED m
b) Subsidiary b) Subsidiary
The present of obligations of planare assets are as follows: The present value of value obligations and fair and valuefair of value plan assets as follows:
Unfunded Unfunded schemes schemes Present Present value ofvalue defined of defined benefit obligations benefit obligations
Emirates Financial Commentary
The movement in value the fair of the planis:assets is: The movement in the fair of value the plan assets
17. Retirement 17. Retirement benefit benefit obligations obligations
The present of obligations of planare assets are as follows: The present value of value obligations and fair and valuefair of value plan assets as follows: 2014 2014 2013 2013 AED m AED mAED m AED m of defined funded defined benefit obligations Present Present value of value funded benefit obligations Fair value of plan assets Fair value of plan assets
222 182 40
222 218 182 169 40
49
218 169 49
The actuarial for the Swiss plan included assumptions to discount The actuarial valuationvaluation for the Swiss plan included assumptions relating relating to discount rate of rate of 2.4%2.0%) (2013: 2.0%) and expected salary increases 1.0%1.0%). (2013: 1.0%). 2.4% (2013: and expected salary increases of 1.0% of (2013:
The of liability 4 mAED (2013: AED 3 m) represents the amount willsettled not befrom settled from The liability AED 4ofmAED (2013: 3 m) represents the amount that will that not be plan and assets and is calculated as the of excess of the present of the defined plan assets is calculated as the excess the present value ofvalue the defined benefit benefit obligation for an individual employee fairofvalue of the employee's planatassets at obligation for an individual employee over theover fair the value the employee's plan assets endreporting of the reporting the end the of the period. period. Contributions the transfer of accumulated from unfunded Contributions receivedreceived include include the transfer of accumulated benefits benefits from unfunded schemes.schemes. gains andand losses and expected returns planare assets are not calculated given that ActuarialActuarial gains and losses expected returns on plan on assets not calculated given that investment decisions relating to plan assets are under the direct control of participating investment decisions relating to plan assets are under the direct control of participating
dnata Consolidated Financial Statements
employees. employees.
Additional Information
132
23
23
24
24
133
16. Provisions 16. Provisions 2014 2014 2013 2013 AED m AED mAED m AED m Non-current Non-current Overview
Retirement Retirement benefit obligations benefit obligations (Note 17) (Note 17) Other provisions Other provisions (Note 18) (Note 18)
465
430
430
35
35
9
9
500 439
439
500 Emirates
In accordance In accordance with thewith provisions the provisions of IAS 19, of IAS management 19, management has carried has carried out an out exercise an exercise to to
receivable under the provident are subject to vesting rules,are which are Benefits Benefits receivable under the provident scheme scheme are subject to vesting rules, which dependent a participating employee's length of service. at the an employee dependent upon a upon participating employee's length of service. If at theIftime an time employee
assess the assess present the present value ofvalue its defined of its defined benefit benefit obligations obligations at 31 March at 31 2014 Marchin 2014 respect in respect of of employees' employees' end of service end of benefits service benefits payablepayable under relevant under relevant local regulations local regulations and contractual and contractual The liabilities The liabilities recognised recognised in the consolidated in the consolidated statement statement of financial of financial positionposition are: are: 2014 2014 2013 2013 AED m AED mAED m AED m
CurrentCurrent Other provisions Other provisions (Note 18) (Note 18)
dnata
17. Retirement obligations (continued) 17. Retirement benefit benefit obligations (continued)
arrangements. arrangements. 465
5
5
19
19
FundedFunded schemes schemes
5
5
19
19
Present Present value ofvalue defined of defined benefit obligations benefit obligations
505 458
458
505
Less: Fair Less: value Fair ofvalue plan assets of plan assets
leaves employment, the accumulated vested amount, including investment returns leaves employment, the accumulated vested amount, including investment returns is less is less end of benefits service benefits that have would havepayable been payable that employee than thethan endthe of service that would been to that to employee under under local regulations, dnatathepays the shortfall to the employee. relevantrelevant local regulations, dnata pays shortfall amount amount directly directly to the employee. However, if the accumulated vested amount end of benefits service benefits that would However, if the accumulated vested amount exceeds exceeds the end the of service that would have been payable to an employee under relevant local regulations, the employee have been payable to an employee under relevant local regulations, the employee receivesreceives between seventy five and one hundred percent of their fund balance. Vested between seventy five and one hundred percent of their fund balance. Vested assets ofassets the of the are not available or its creditors in any circumstances. scheme scheme are not available to dnatatoordnata its creditors in any circumstances.
314 (270) 44
Group
314
297
297
(270) (245)
(245)
44
52
52
421
421 378
378
LiabilityLiability recognised recognised in consolidated in consolidated statement statement of financial of financial
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
positionposition
465
465 430
430
92
92
79
79
88
88
76
76
4
4
3
3
FundedFunded schemes schemes
The assessment of the present of defined obligations The assessment of the present value ofvalue defined benefit benefit obligations assumedassumed expectedexpected salary increases averaging 4.5%4.5%) (2013:and 4.5%) and a discount rate of(2013: 4.75%4.0%) (2013:per 4.0%) per salary increases averaging 4.5% (2013: a discount rate of 4.75%
a) Parent a) company Parent company
The present values of the defined obligations at 31 2014 Marchwere 2014 were annum. annum. The present values of the defined benefit benefit obligations at 31 March computed using the actuarial assumptions set out above. computed using the actuarial assumptions set out above.
Senior employees Senior employees based inbased the UAE in the participate UAE participate in a defined in a defined benefit benefit provident provident scheme scheme to to which dnata whichcontributes dnata contributes a specified a specified percentage percentage of basicof salary basicbased salaryupon basedthe upon employee’s the employee’s grade and grade duration and duration of service. of service. Amounts Amounts contributed contributed are invested are invested in a trustee in a administered trustee administered scheme scheme and accumulate and accumulate along with along returns with returns earned on earned investments. on investments. Contributions Contributions are made are made on a monthly on a monthly basis irrespective basis irrespective of fund of performance fund performance and are and not are pooled, not pooled, but are but separately are separately identifiable identifiable and attributable and attributable to eachtoparticipant. each participant. The fund Thecomprises fund comprises a diverse a diverse mix of mix of managed managed funds and funds investment and investment decisions decisions are controlled are controlled directly directly by the by participating the participating employees. employees.
BalanceBalance broughtbrought forwardforward Contributions Contributions receivedreceived paid Benefits Benefits paid in fair value Change Change in fair value carried forward BalanceBalance carried forward
76
76
67
67
14
14
12
12
(6)
(6)
(5)
(5)
4
4
2
2
88
88
76
76
Employees of a subsidiary in Switzerland participate in a defined benefit plan. The Swiss Employees of a subsidiary in Switzerland participate in a defined benefit plan. The Swiss plan is by funded bycontribution way of contribution to an insurance plan is funded way of to an insurance policy. policy.
2014 2014 2013 2013 AED m AED mAED m AED m of defined funded defined benefit obligations Present Present value of value funded benefit obligations Fair value of plan assets Fair value of plan assets
Financial Information
2014 2014 2013 2013 AED m AED mAED m AED m
b) Subsidiary b) Subsidiary
The present of obligations of planare assets are as follows: The present value of value obligations and fair and valuefair of value plan assets as follows:
Unfunded Unfunded schemes schemes Present Present value ofvalue defined of defined benefit obligations benefit obligations
Emirates Financial Commentary
The movement in value the fair of the planis:assets is: The movement in the fair of value the plan assets
17. Retirement 17. Retirement benefit benefit obligations obligations
The present of obligations of planare assets are as follows: The present value of value obligations and fair and valuefair of value plan assets as follows: 2014 2014 2013 2013 AED m AED mAED m AED m of defined funded defined benefit obligations Present Present value of value funded benefit obligations Fair value of plan assets Fair value of plan assets
222 182 40
222 218 182 169 40
49
218 169 49
The actuarial for the Swiss plan included assumptions to discount The actuarial valuationvaluation for the Swiss plan included assumptions relating relating to discount rate of rate of 2.4%2.0%) (2013: 2.0%) and expected salary increases 1.0%1.0%). (2013: 1.0%). 2.4% (2013: and expected salary increases of 1.0% of (2013:
The of liability 4 mAED (2013: AED 3 m) represents the amount willsettled not befrom settled from The liability AED 4ofmAED (2013: 3 m) represents the amount that will that not be plan and assets and is calculated as the of excess of the present of the defined plan assets is calculated as the excess the present value ofvalue the defined benefit benefit obligation for an individual employee fairofvalue of the employee's planatassets at obligation for an individual employee over theover fair the value the employee's plan assets endreporting of the reporting the end the of the period. period. Contributions the transfer of accumulated from unfunded Contributions receivedreceived include include the transfer of accumulated benefits benefits from unfunded schemes.schemes. gains andand losses and expected returns planare assets are not calculated given that ActuarialActuarial gains and losses expected returns on plan on assets not calculated given that investment decisions relating to plan assets are under the direct control of participating investment decisions relating to plan assets are under the direct control of participating
dnata Consolidated Financial Statements
employees. employees.
Additional Information
132
23
23
24
24
133
17. Retirement 17. Retirement benefit benefit obligations obligations (continued) (continued)
Unfunded Unfunded schemesschemes
17. Retirement obligations (continued) 17. Retirement benefit benefit obligations (continued)
The movement in the present value of value defined benefit obligations of the Swiss plan is: plan is: The movement in the present of defined benefit obligations of the Swiss
End of benefits service benefits for employees do not participate in the provident or End of service for employees who do who not participate in the provident scheme scheme or
total amount recognised in the consolidated income statement is as follows: The totalThe amount recognised in the consolidated income statement is as follows:
2014 2014 2013 2013 AED m AED mAED m AED m Overview
Emirates
dnata
BalanceBalance broughtbrought forwardforward
218
-
AdditionAddition
-
-
190
190
14
14
12
12
Interest Interest cost cost
4
4
4
4
(16)
(16)
13
13
8
8
8
8
(22)
(22)
(6)
(6)
16
16
(3)
(3)
Remeasurement (gain) / loss Remeasurement (gain) / loss Employee contributions Employee contributions CurrencyCurrency translation differences translation differences BalanceBalance carried forward carried forward
Financial InformationThe
222
222 218
218
BalanceBalance broughtbrought forwardforward
169
169
AdditionAddition
-
-
ExpectedExpected return on plan on assets return plan assets
4
4
-
-
154
154
4
4
Remeasurement Remeasurement Emirates Independent Auditor’s Report
- Return-on plan on assets Return plan assets
-
-
2
2
Employer contributions Employer contributions
10
10
10
10
Employee contributions Employee contributions
8
8
8
8
(22)
(22)
(6)
(6)
13
13
(3)
(3)
Emirates Consolidated Benefits Benefits paid Financial Statements
paid
CurrencyCurrency translation differences translation differences
dnata Independent Auditor’s Report
recognised in the consolidated statement of financial is the present recognised in the consolidated statement of financial positionposition is the present value ofvalue the of the benefit obligation at the endreporting of the reporting defined defined benefit obligation at the end of the period. period. The movement in the defined benefit obligation is: The movement in the defined benefit obligation is: 2014 2014 2013 2013 AED m AED mAED m AED m BalanceBalance broughtbrought forwardforward
BalanceBalance carried forward carried forward
182
182 169
378
378 321
321
Current Current service cost service cost
65
65
54
54
Interest Interest cost cost
18
18
14
14
Remeasurement Remeasurement - changes in experience / demographic assumptions - changes in experience / demographic assumptions
2014 2014 2013 2013 AED m AED mAED m AED m
2014 2014 2013 2013 AED m AED mAED m AED m
on periods of cumulative service andoflevels of employees’ finalsalary. basic The salary. The liability on periods of cumulative service and levels employees’ final basic liability
movement in the fair of value the plan assets the Swiss plan is: plan is: The movement in value the fair of the planofassets of the Swiss
Emirates Financial Commentary
dnata Financial Commentary
-
Service cost Service cost
Benefits Benefits paid paid Group
218
other defined contribution plansrelevant follow relevant local regulations, which are based mainly based other defined contribution plans follow local regulations, which are mainly
- changes in financial assumptions - changes in financial assumptions - changes in prior year assumptions - changes in prior year assumptions Payments madethe during Payments made during yearthe year translation differences CurrencyCurrency translation differences carried forward BalanceBalance carried forward
Net in change in the present of defined benefit obligations Net change the present value of value defined benefit obligations over plan assets over plan assets Unfunded Unfunded schemesschemes Current service cost Current service cost Interest cost Interest cost
2
2
1
1
(16)
21
21
contribution DefinedDefined contribution plans plans Contributions expensed Contributions expensed
18
-
-
Recognised in the consolidated statement Recognised in the consolidated income income statement
18 5 421
(49) (33) 5
-
421 378
(33)
27
27
23
23
(1)
(1)
(2)
(2)
26
26
65
65
18 83 37 146
18 83
21
21
54
54
14
14
68
68
37 26 146 115
26 115
Assumption Assumption
Effect on defined ChangeChange Effect on defined benefit obligation benefit obligation
Unfunded Unfunded Subsidiary Subsidiary schemesschemes AED m AED mAED m AED m
+ 0.5% + 0.5% (14) - 0.5% - 0.5% 15 + 0.5% + 0.5% 3
rate DiscountDiscount rate salary increases ExpectedExpected salary increases
- 0.5% - 0.5%
(3)
(14) (29) 15 31 3
33
(3) (30)
(29) 31 33 (30)
Thesensitivity above sensitivity areon based on a change in an assumption while holding all The above analysis analysis are based a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of other assumptions constant. In practice, this is unlikely to occur, and changes in some of
the assumptions may be correlated. In calculating thesensitivity above sensitivity the present the assumptions may be correlated. In calculating the above analysis,analysis, the present of the defined benefit obligation been calculated using the projected unit credit value ofvalue the defined benefit obligation has beenhas calculated using the projected unit credit at the endreporting of the reporting method method at the end of the period. period.
The weighted durations of the defined benefit obligations are below: set out below: The weighted average average durations of the defined benefit obligations are set out
378
Payments made the during year include AED 2 m AED (2013: AEDfor2 the m) for the transfer of Payments made during yearthe include AED 2 m (2013: 2 m) transfer of accumulated to funded dnata’s scheme. funded scheme. accumulated benefits benefits to dnata’s
DefinedDefined benefit benefit plans plans Funded schemes Funded schemes Service and interest cost Service and interest cost
(16) (49)
The sensitivity of this defined benefit obligation to changes in the principal assumptions are The sensitivity of this defined benefit obligation to changes in the principal assumptions are set out below: set out below:
- subsidiary Funded Funded scheme scheme - subsidiary Unfunded scheme Unfunded scheme
Years
Years
14.7
14.7
16.1
16.1
its defined benefitthe plans the isgroup is exposed to a number the most ThroughThrough its defined benefit plans group exposed to a number of risks, oftherisks, most significant of which are detailed below: significant of which are detailed below: a) Change in discount rate: Retirement benefit obligations will increase to a decrease a) Change in discount rate: Retirement benefit obligations will increase due to due a decrease in market yields of high quality corporate bonds. in market yields of high quality corporate bonds. b) Expected salary increases: The present the defined obligation is b) Expected salary increases: The present value ofvalue the of defined benefit benefit obligation is calculated by reference to thesalaries future salaries plan participants. an increase of calculated by reference to the future of plan of participants. As such,As ansuch, increase of
169
theofsalary of the plan participants will increase the retirement benefit obligations. the salary the plan participants will increase the retirement benefit obligations.
dnata expects to contribute, in respect existing plan members of all its of funded dnata expects to contribute, in of respect of existing plan members all its schemes, funded schemes, approximately AED 24 m during yearthe ending March approximately AED 24 mthe during year 31 ending 312015. March 2015.
dnata Consolidated Financial Statements
Additional Information
134
25
25
26
26
135
17. Retirement 17. Retirement benefit benefit obligations obligations (continued) (continued)
Unfunded Unfunded schemesschemes
17. Retirement obligations (continued) 17. Retirement benefit benefit obligations (continued)
The movement in the present value of value defined benefit obligations of the Swiss plan is: plan is: The movement in the present of defined benefit obligations of the Swiss
End of benefits service benefits for employees do not participate in the provident or End of service for employees who do who not participate in the provident scheme scheme or
total amount recognised in the consolidated income statement is as follows: The totalThe amount recognised in the consolidated income statement is as follows:
2014 2014 2013 2013 AED m AED mAED m AED m Overview
Emirates
dnata
BalanceBalance broughtbrought forwardforward
218
-
AdditionAddition
-
-
190
190
14
14
12
12
Interest Interest cost cost
4
4
4
4
(16)
(16)
13
13
8
8
8
8
(22)
(22)
(6)
(6)
16
16
(3)
(3)
Remeasurement (gain) / loss Remeasurement (gain) / loss Employee contributions Employee contributions CurrencyCurrency translation differences translation differences BalanceBalance carried forward carried forward
Financial InformationThe
222
222 218
218
BalanceBalance broughtbrought forwardforward
169
169
AdditionAddition
-
-
ExpectedExpected return on plan on assets return plan assets
4
4
-
-
154
154
4
4
Remeasurement Remeasurement Emirates Independent Auditor’s Report
- Return-on plan on assets Return plan assets
-
-
2
2
Employer contributions Employer contributions
10
10
10
10
Employee contributions Employee contributions
8
8
8
8
(22)
(22)
(6)
(6)
13
13
(3)
(3)
Emirates Consolidated Benefits Benefits paid Financial Statements
paid
CurrencyCurrency translation differences translation differences
dnata Independent Auditor’s Report
recognised in the consolidated statement of financial is the present recognised in the consolidated statement of financial positionposition is the present value ofvalue the of the benefit obligation at the endreporting of the reporting defined defined benefit obligation at the end of the period. period. The movement in the defined benefit obligation is: The movement in the defined benefit obligation is: 2014 2014 2013 2013 AED m AED mAED m AED m BalanceBalance broughtbrought forwardforward
BalanceBalance carried forward carried forward
182
182 169
378
378 321
321
Current Current service cost service cost
65
65
54
54
Interest Interest cost cost
18
18
14
14
Remeasurement Remeasurement - changes in experience / demographic assumptions - changes in experience / demographic assumptions
2014 2014 2013 2013 AED m AED mAED m AED m
2014 2014 2013 2013 AED m AED mAED m AED m
on periods of cumulative service andoflevels of employees’ finalsalary. basic The salary. The liability on periods of cumulative service and levels employees’ final basic liability
movement in the fair of value the plan assets the Swiss plan is: plan is: The movement in value the fair of the planofassets of the Swiss
Emirates Financial Commentary
dnata Financial Commentary
-
Service cost Service cost
Benefits Benefits paid paid Group
218
other defined contribution plansrelevant follow relevant local regulations, which are based mainly based other defined contribution plans follow local regulations, which are mainly
- changes in financial assumptions - changes in financial assumptions - changes in prior year assumptions - changes in prior year assumptions Payments madethe during Payments made during yearthe year translation differences CurrencyCurrency translation differences carried forward BalanceBalance carried forward
Net in change in the present of defined benefit obligations Net change the present value of value defined benefit obligations over plan assets over plan assets Unfunded Unfunded schemesschemes Current service cost Current service cost Interest cost Interest cost
2
2
1
1
(16)
21
21
contribution DefinedDefined contribution plans plans Contributions expensed Contributions expensed
18
-
-
Recognised in the consolidated statement Recognised in the consolidated income income statement
18 5 421
(49) (33) 5
-
421 378
(33)
27
27
23
23
(1)
(1)
(2)
(2)
26
26
65
65
18 83 37 146
18 83
21
21
54
54
14
14
68
68
37 26 146 115
26 115
Assumption Assumption
Effect on defined ChangeChange Effect on defined benefit obligation benefit obligation
Unfunded Unfunded Subsidiary Subsidiary schemesschemes AED m AED mAED m AED m
+ 0.5% + 0.5% (14) - 0.5% - 0.5% 15 + 0.5% + 0.5% 3
rate DiscountDiscount rate salary increases ExpectedExpected salary increases
- 0.5% - 0.5%
(3)
(14) (29) 15 31 3
33
(3) (30)
(29) 31 33 (30)
Thesensitivity above sensitivity areon based on a change in an assumption while holding all The above analysis analysis are based a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of other assumptions constant. In practice, this is unlikely to occur, and changes in some of
the assumptions may be correlated. In calculating thesensitivity above sensitivity the present the assumptions may be correlated. In calculating the above analysis,analysis, the present of the defined benefit obligation been calculated using the projected unit credit value ofvalue the defined benefit obligation has beenhas calculated using the projected unit credit at the endreporting of the reporting method method at the end of the period. period.
The weighted durations of the defined benefit obligations are below: set out below: The weighted average average durations of the defined benefit obligations are set out
378
Payments made the during year include AED 2 m AED (2013: AEDfor2 the m) for the transfer of Payments made during yearthe include AED 2 m (2013: 2 m) transfer of accumulated to funded dnata’s scheme. funded scheme. accumulated benefits benefits to dnata’s
DefinedDefined benefit benefit plans plans Funded schemes Funded schemes Service and interest cost Service and interest cost
(16) (49)
The sensitivity of this defined benefit obligation to changes in the principal assumptions are The sensitivity of this defined benefit obligation to changes in the principal assumptions are set out below: set out below:
- subsidiary Funded Funded scheme scheme - subsidiary Unfunded scheme Unfunded scheme
Years
Years
14.7
14.7
16.1
16.1
its defined benefitthe plans the isgroup is exposed to a number the most ThroughThrough its defined benefit plans group exposed to a number of risks, oftherisks, most significant of which are detailed below: significant of which are detailed below: a) Change in discount rate: Retirement benefit obligations will increase to a decrease a) Change in discount rate: Retirement benefit obligations will increase due to due a decrease in market yields of high quality corporate bonds. in market yields of high quality corporate bonds. b) Expected salary increases: The present the defined obligation is b) Expected salary increases: The present value ofvalue the of defined benefit benefit obligation is calculated by reference to thesalaries future salaries plan participants. an increase of calculated by reference to the future of plan of participants. As such,As ansuch, increase of
169
theofsalary of the plan participants will increase the retirement benefit obligations. the salary the plan participants will increase the retirement benefit obligations.
dnata expects to contribute, in respect existing plan members of all its of funded dnata expects to contribute, in of respect of existing plan members all its schemes, funded schemes, approximately AED 24 m during yearthe ending March approximately AED 24 mthe during year 31 ending 312015. March 2015.
dnata Consolidated Financial Statements
Additional Information
134
25
25
26
26
135
18. Other 18.provisions Other provisions dations dations Others OthersTotal Total AED m AED m AED m AED m AED m AED m
Overview
Emirates
1 April 2013 1 April 2013
9
9
19
19
28
28
Acquisition Acquisition (Note 30)(Note 30)
-
-
18
18
18
18
Unutilised Unutilised amountsamounts reversedreversed
-
-
(4)
(4)
(4)
(4)
Utilised during Utilisedthe during year the year
-
-
(4)
(4)
(4)
(4)
CurrencyCurrency translation translation differences differences
-
-
31 March 312014 March 2014
9
9
2
2
2
2
31
31
40
40
dnata
Within one Within yearone year oneOver yearone year
31 March 312014 March 2014
5
5
19
19
35
35
9
9
40
40
28
28
The provision The provision for dilapidations for dilapidations represents represents an estimate an estimate of the costs of theof costs restoring of restoring certain certain leasehold leasehold properties properties to their original to their condition original condition at the end at the of the endlease of the term lease discounted term discounted at at
dnata Financial Commentary
the pre-tax therate pre-tax thatrate reflects thatthe reflects risk specific the risk to specific the liability. to the liability.
49 570
521 590 49
590
48
48
570 638
638
Term loans Term (Note loans 20)(Note 20) Lease liabilities Lease liabilities (Note 21)(Note 21)
BalanceBalance broughtbrought forwardforward Acquisitions Acquisitions Additions Additions Repayments Repayments
Current Current
2014 2014 2013 2013 AED m AED m AED m AED m
Group
Emirates Financial Commentary
Lease liabilities Lease liabilities (Note 21)(Note 21)
521
109 15
109 112 15
13
112
172
172
79
79
296
296 204
204
866
866 842
842
Borrowings Borrowings and leaseand liabilities lease liabilities are denominated are denominated in the following in the following currencies: currencies: 2014 2014 2013 2013 AED m AED m AED m AED m Pounds Sterling Pounds Sterling
522
522 487
487
Swiss Francs Swiss Francs
253
253 239
239
Singapore Singapore Dollars Dollars
78
78 104
104
Others Others
13
13
12
CurrencyCurrency translation translation differences differences
12
707
Unamortised Unamortised transaction transaction costs costs BalanceBalance carried forward carried forward
707 669
-
5
136
136 175
175
(257)
(257) (111)
(111)
47
-
669
5
633
13
47
(3) 630
(31)
633 707 (3)
(5)
630 702
(31) 707 (5) 702
Term loans Term areloans repayable are repayable as follows: as follows: Within one Within yearone year
109
109 112
112
BetweenBetween 2 and 5 2years and 5 years
521
521 590
590
Term loans Term areloans denominated are denominated in the following in the following currencies: currencies: Pounds Sterling Pounds Sterling
390
390 407
407
Swiss Francs Swiss Francs
199
199 212
212
Singapore Singapore Dollars Dollars
41
41
83
83
A term loan A term amounting loan amounting to AED 41 to m AED (2013: 41 mAED (2013: 83 m) AEDis 83 secured m) is secured by a charge by aon charge the shares on the shares of CIAS of International CIAS International Pte Ltd and Pte Ltd dnata andSingapore dnata Singapore Pte Ltd. Pte A corporate Ltd. A corporate guarantee guarantee has alsohas also been provided been provided by dnataby fordnata the total for the value total of value the term of the loans. term loans.
Emirates Independent Auditor’s Report
Contractual Contractual repricingrepricing dates are dates set at aresixset month at sixintervals. month intervals. The effective The effective interest interest rate on the rate on the term loans termwas loans 2.8% was (2013: 2.8% 3.0%) (2013:per 3.0%) annum. per annum. The carrying The carrying amountsamounts of the term of the loans term loans
Emirates Consolidated Financial Statements
2014 2014 2013 2013 AED m AED mAED m AED m Gross lease Gross liabilities: lease liabilities:
Movements Movements in the term in the loans term areloans as follows: are as follows:
Non-current Non-current Term loans Term (Note loans 20)(Note 20)
21. Lease 21.liabilities Lease liabilities 2014 2014 2013 2013 AED m AED mAED m AED m
2014 2014 2013 2013 AED m AED m AED m AED m
Bank overdrafts Bank overdrafts (Note 26)(Note 26)
Provisions Provisions are expected are expected to be used to be as follows: used as follows:
Financial InformationOver
20. Term 20. loans Term loans
19. Borrowings 19. Borrowings and lease and liabilities lease liabilities Dilapi- Dilapi-
approximate approximate their fairtheir value. fair The value. fair The value fairis value determined is determined by discounting by discounting projected projected cash cash
Within one Within yearone year
17
17
16
16
BetweenBetween 2 and 5 years 2 and 5 years
42
42
40
40
After 5 years After 5 years
12
12
13
13
71
71
69
69
Future interest Future interest Present Present value ofvalue finance of finance lease liabilities lease liabilities The present The present value of value finance of lease finance liabilities lease liabilities is repayable is repayable as as
(7)
(7)
(8)
(8)
64
64
61
61
follows: follows: Within one Within yearone year
15
15
13
13
BetweenBetween 2 and 5 years 2 and 5 years
38
38
36
36
After 5 years After 5 years
11
11
12
12
Total over Total one over yearone year The present The present value of value finance of lease finance liabilities lease liabilities are denominated are denominated in in
49
49
48
48
Pounds Sterling Pounds Sterling
35
35
34
34
Swiss Francs Swiss Francs
29
29
27
27
the following the following currencies: currencies:
Lease liabilities Lease liabilities are secured are secured on the related on the plant related and plant machinery. and machinery. The carrying The carrying amount amount of leaseofliabilities lease liabilities approximate approximate their fairtheir value. fair The value. fairThe value fairisvalue is determined determined by discounting by discounting projected projected cash flows cash using flowsthe using interest the interest rate yield rate curve yieldforcurve the for the remaining remaining term to term maturities to maturities and currencies and currencies adjustedadjusted for creditforspread creditand spread fallsand within fallslevel within level 2 of the 2fair of value the fair hierarchy. value hierarchy.
flows using flowsthe using interest the interest rate yield rate curve yieldapplicable curve applicable to different to different maturities maturities and currencies and currencies adjustedadjusted for creditfor spread creditand spread fallsand within fallslevel within 2 oflevel the 2fair of value the fair hierarchy. value hierarchy.
dnata Independent Auditor’s Report
The term The loan term in loan SwissinFrancs Swiss isFrancs designated is designated as a hedge as a of hedge the net of the investment net investment in dnatain dnata Switzerland Switzerland AG. The AG. foreign The exchange foreign exchange gain or loss gain on or loss translation on translation of the loan of the at the loanend at the of end of
dnata Consolidated Financial Statements
the reporting the reporting period isperiod recognised is recognised in the translation in the translation reserve through reserve through other comprehensive other comprehensive income. income.
Additional Information
136
27
27
28
28
137
18. Other 18.provisions Other provisions dations dations Others OthersTotal Total AED m AED m AED m AED m AED m AED m
Overview
Emirates
1 April 2013 1 April 2013
9
9
19
19
28
28
Acquisition Acquisition (Note 30)(Note 30)
-
-
18
18
18
18
Unutilised Unutilised amountsamounts reversedreversed
-
-
(4)
(4)
(4)
(4)
Utilised during Utilisedthe during year the year
-
-
(4)
(4)
(4)
(4)
CurrencyCurrency translation translation differences differences
-
-
31 March 312014 March 2014
9
9
2
2
2
2
31
31
40
40
dnata
Within one Within yearone year oneOver yearone year
31 March 312014 March 2014
5
5
19
19
35
35
9
9
40
40
28
28
The provision The provision for dilapidations for dilapidations represents represents an estimate an estimate of the costs of theof costs restoring of restoring certain certain leasehold leasehold properties properties to their original to their condition original condition at the end at the of the endlease of the term lease discounted term discounted at at
dnata Financial Commentary
the pre-tax therate pre-tax thatrate reflects thatthe reflects risk specific the risk to specific the liability. to the liability.
49 570
521 590 49
590
48
48
570 638
638
Term loans Term (Note loans 20)(Note 20) Lease liabilities Lease liabilities (Note 21)(Note 21)
BalanceBalance broughtbrought forwardforward Acquisitions Acquisitions Additions Additions Repayments Repayments
Current Current
2014 2014 2013 2013 AED m AED m AED m AED m
Group
Emirates Financial Commentary
Lease liabilities Lease liabilities (Note 21)(Note 21)
521
109 15
109 112 15
13
112
172
172
79
79
296
296 204
204
866
866 842
842
Borrowings Borrowings and leaseand liabilities lease liabilities are denominated are denominated in the following in the following currencies: currencies: 2014 2014 2013 2013 AED m AED m AED m AED m Pounds Sterling Pounds Sterling
522
522 487
487
Swiss Francs Swiss Francs
253
253 239
239
Singapore Singapore Dollars Dollars
78
78 104
104
Others Others
13
13
12
CurrencyCurrency translation translation differences differences
12
707
Unamortised Unamortised transaction transaction costs costs BalanceBalance carried forward carried forward
707 669
-
5
136
136 175
175
(257)
(257) (111)
(111)
47
-
669
5
633
13
47
(3) 630
(31)
633 707 (3)
(5)
630 702
(31) 707 (5) 702
Term loans Term areloans repayable are repayable as follows: as follows: Within one Within yearone year
109
109 112
112
BetweenBetween 2 and 5 2years and 5 years
521
521 590
590
Term loans Term areloans denominated are denominated in the following in the following currencies: currencies: Pounds Sterling Pounds Sterling
390
390 407
407
Swiss Francs Swiss Francs
199
199 212
212
Singapore Singapore Dollars Dollars
41
41
83
83
A term loan A term amounting loan amounting to AED 41 to m AED (2013: 41 mAED (2013: 83 m) AEDis 83 secured m) is secured by a charge by aon charge the shares on the shares of CIAS of International CIAS International Pte Ltd and Pte Ltd dnata andSingapore dnata Singapore Pte Ltd. Pte A corporate Ltd. A corporate guarantee guarantee has alsohas also been provided been provided by dnataby fordnata the total for the value total of value the term of the loans. term loans.
Emirates Independent Auditor’s Report
Contractual Contractual repricingrepricing dates are dates set at aresixset month at sixintervals. month intervals. The effective The effective interest interest rate on the rate on the term loans termwas loans 2.8% was (2013: 2.8% 3.0%) (2013:per 3.0%) annum. per annum. The carrying The carrying amountsamounts of the term of the loans term loans
Emirates Consolidated Financial Statements
2014 2014 2013 2013 AED m AED mAED m AED m Gross lease Gross liabilities: lease liabilities:
Movements Movements in the term in the loans term areloans as follows: are as follows:
Non-current Non-current Term loans Term (Note loans 20)(Note 20)
21. Lease 21.liabilities Lease liabilities 2014 2014 2013 2013 AED m AED mAED m AED m
2014 2014 2013 2013 AED m AED m AED m AED m
Bank overdrafts Bank overdrafts (Note 26)(Note 26)
Provisions Provisions are expected are expected to be used to be as follows: used as follows:
Financial InformationOver
20. Term 20. loans Term loans
19. Borrowings 19. Borrowings and lease and liabilities lease liabilities Dilapi- Dilapi-
approximate approximate their fairtheir value. fair The value. fair The value fairis value determined is determined by discounting by discounting projected projected cash cash
Within one Within yearone year
17
17
16
16
BetweenBetween 2 and 5 years 2 and 5 years
42
42
40
40
After 5 years After 5 years
12
12
13
13
71
71
69
69
Future interest Future interest Present Present value ofvalue finance of finance lease liabilities lease liabilities The present The present value of value finance of lease finance liabilities lease liabilities is repayable is repayable as as
(7)
(7)
(8)
(8)
64
64
61
61
follows: follows: Within one Within yearone year
15
15
13
13
BetweenBetween 2 and 5 years 2 and 5 years
38
38
36
36
After 5 years After 5 years
11
11
12
12
Total over Total one over yearone year The present The present value of value finance of lease finance liabilities lease liabilities are denominated are denominated in in
49
49
48
48
Pounds Sterling Pounds Sterling
35
35
34
34
Swiss Francs Swiss Francs
29
29
27
27
the following the following currencies: currencies:
Lease liabilities Lease liabilities are secured are secured on the related on the plant related and plant machinery. and machinery. The carrying The carrying amount amount of leaseofliabilities lease liabilities approximate approximate their fairtheir value. fair The value. fairThe value fairisvalue is determined determined by discounting by discounting projected projected cash flows cash using flowsthe using interest the interest rate yield rate curve yieldforcurve the for the remaining remaining term to term maturities to maturities and currencies and currencies adjustedadjusted for creditforspread creditand spread fallsand within fallslevel within level 2 of the 2fair of value the fair hierarchy. value hierarchy.
flows using flowsthe using interest the interest rate yield rate curve yieldapplicable curve applicable to different to different maturities maturities and currencies and currencies adjustedadjusted for creditfor spread creditand spread fallsand within fallslevel within 2 oflevel the 2fair of value the fair hierarchy. value hierarchy.
dnata Independent Auditor’s Report
The term The loan term in loan SwissinFrancs Swiss isFrancs designated is designated as a hedge as a of hedge the net of the investment net investment in dnatain dnata Switzerland Switzerland AG. The AG. foreign The exchange foreign exchange gain or loss gain on or loss translation on translation of the loan of the at the loanend at the of end of
dnata Consolidated Financial Statements
the reporting the reporting period isperiod recognised is recognised in the translation in the translation reserve through reserve through other comprehensive other comprehensive income. income.
Additional Information
136
27
27
28
28
137
22. Deferred tax 22. Deferred incomeincome tax
The movements in deferred taxand assets and liabilities during year, without taking into The movements in deferred tax assets liabilities during the year,the without taking into consideration the offsetting of balances within tax jurisdiction, are as follows: consideration the offsetting of balances within the samethe taxsame jurisdiction, are as follows:
taxand assets and liabilities arewhen offsetthere when is aenforceable legally enforceable DeferredDeferred tax assets liabilities are offset is there a legally right to right to offset current tax against assets against tax liabilities andthe when the deferred offset current tax assets current current tax liabilities and when deferred taxes taxes
Deferred tax liabilities Deferred incomeincome tax liabilities
to the same income tax authority. Theamounts offset amounts are as follows: relate torelate the same income tax authority. The offset are as follows: 2014 2014 2013 2013 m m AED m AED m AEDAED
Overview
Emirates
tax assets DeferredDeferred income income tax assets Deferred income tax Deferred income tax liabilitiesliabilities
dnata
The movement in the deferred tax account is as follows: The movement in the deferred tax account is as follows: Balance brought forward Balance brought forward Acquisition (Note 30) Acquisition (Note 30) Credited to the consolidated statement Credited to the consolidated income income statement Deferred tax on retirement benefit obligation Financial InformationDeferred tax on retirement benefit obligation Discontinued operations Discontinued operations Currency translation differences Currency translation differences Emirates Financial Commentary Effect of change in tax Effect of change in tax rates rates BalanceBalance carried carried forwardforward Group
33
33 11
(131)
(131) (108)
(98)
(98)(97)
(97)
(97) (128)
(20) 25 (2) (5) 1 (98)
11 (108) (97)
(128) (20) (3) (3) 25 8 8 (2) 11 11 - 12 12 (5) 3 3 1 (98)(97) (97)
dnata Financial Commentary
equipment Other Other Total Total equipment assets assets m m AEDAED m m AEDAED m m AED m AED m AED AED 1 April 2012 1 April 2012 Acquisition Acquisition / credited (Charge)(Charge) / credited to the to the consolidated statement consolidated income income statement Discontinued operations Discontinued operations translation differences CurrencyCurrency translation differences 31 2013 March 2013 31 March Acquisition (Note 30) Acquisition (Note 30) / credited (Charge)(Charge) / credited to the to the
(41) -
(41)(108) (108) (2) (3) (3)
(2) (151) (151) - (3) (3)
(2) 3 (40)
(2) 17 3 10 5 (40) (79)
- 15 15 - 13 13 5 5 (2) (121) (121)
-
consolidated statement consolidated income income statement of changes in tax rates Effect ofEffect changes in tax rates Transfers Transfers translation differences CurrencyCurrency translation differences 31 2014 March 2014 31 March
(1) (41)
-
(45)
(1) 19 1 (6) (41)(110)
17 10 5 (79)
(2)
(45) 19 1 (6) (110)
2 (1) (1)
- (45) 2 20 1 (1) (1) - (6) (1) (152)
2014 2014 2013 2013 AED m AED mAED m AED m Less than 1 year Less than 1 year Between and 5 years Between 2 and 52years After 5 After years 5 years
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
312013 March 2013 31 March
dnata Consolidated Financial Statements
Acquisition (Note 30) Acquisition (Note 30) to the consolidated CreditedCredited to the consolidated income income statement statement Recognised other comprehensive Recognised in other in comprehensive income income
Additional Information
Transfers Transfers translation differences CurrencyCurrency translation differences 31 2014 March 2014 31 March
29
1
1 11
11 23
23
(4)
(4) (1)
(1) (2)
(2) (7)
(7)
(2) 5
- 11 (2) 5 11
11 - (1) - 11 8
- 11 (1) (1) - (2) 8 24
11 (1) (2) 24
17 25
25
11
11
2
2
6
6 17
1
1
1
1
1 -
1 -
(2) 1
9
9
17
3
(2) - 1 17 28
3
5
5
(2) 1 1
(2) 1 1
28 54
54
-
asset notrecognised been recognised in respect of forward carried forward tax losses DeferredDeferred tax assettaxhas not has been in respect of carried tax losses amounting to AED 156 m. amounting to AED 156 m. 29
1,786 1,786 1,969 1,969 648 427 427 648 2,434 2,434 2,396 2,396 (846) (846)(1,932) (1,932)
110
Cash andbalances bank balances Cash and bank
372
Less:term Short termdeposits bank deposits over 3 months Less: Short bank over 3 months Cash and cash equivalents as per the consolidated Cash and cash equivalents as per the consolidated statement of financial position statement of financial position Bank overdrafts (Note 19) Bank overdrafts (Note 19) Cash and cash equivalents as per the consolidated Cash and cash equivalents as per the consolidated
99 99 306 306 552 603 603 552 1,034 1,034 1,008 1,008
224 716 940
224
135 716 754 940 889
135 754 889
statement cash flows statement of cashof flows
1,588 1,588 464 (172) (172) (79)
464 (79)
1,416 1,416 385
385
Shortbank termdeposits, bank deposits, cash andequivalents cash equivalents an effective Short term cash and cash yield anyield effective interestinterest rate rate 1.6% 2.2%) (2013:per 2.2%) per annum. of 1.6%of(2013: annum.
25. Guarantees 25. Guarantees 2014 2014 2013 2013 AED m AED mAED m AED m
Tax losses Provisions Tax losses Provisions Other Other Total Total m m AEDAED m m AEDAED m m AED m AED m AED AED 1 April 2012 1 April 2012 to the consolidated ChargedCharged to the consolidated income income statement statement Recognised other comprehensive Recognised in otherin comprehensive income income Discontinued operation Discontinued operation translation differences CurrencyCurrency translation differences
Short termdeposits bank deposits Short term bank Cash and bank Cash and bank
372
2014 2014 2013 2013 AED m AED mAED m AED m Authorised and contracted Authorised and contracted Authorised not contracted Authorised but notbut contracted
2014 2014 2013 2013 AED m AED mAED m AED m
110
24. Capital commitments 24. Capital commitments
(45) 20 1 (1) (6) (152)
26.term Shortbank termdeposits, bank deposits, cash and cash equivalents 26. Short cash and cash equivalents
minimum lease payments under non-cancellable operating Future Future minimum lease payments under non-cancellable operating leases leases are as are as follows:follows:
Deferred tax assets Deferred incomeincome tax assets
Emirates Independent Auditor’s Report
138
Property, Property, plant and Intangible plant and Intangible
23. Operating 23. Operating leases leases
Guarantees and of letters ofprovided credit provided byin banks Guarantees and letters credit by banks the in the of business normal normal course course of business
134
134
84
84
Guarantees and of letters of include credit include 59 m AED (2013: 15 m) provided by Guarantees and letters credit AED 59AED m (2013: 15AED m) provided by companies under common companies under common control.control.
30
30
139
22. Deferred tax 22. Deferred incomeincome tax
The movements in deferred taxand assets and liabilities during year, without taking into The movements in deferred tax assets liabilities during the year,the without taking into consideration the offsetting of balances within tax jurisdiction, are as follows: consideration the offsetting of balances within the samethe taxsame jurisdiction, are as follows:
taxand assets and liabilities arewhen offsetthere when is aenforceable legally enforceable DeferredDeferred tax assets liabilities are offset is there a legally right to right to offset current tax against assets against tax liabilities andthe when the deferred offset current tax assets current current tax liabilities and when deferred taxes taxes
Deferred tax liabilities Deferred incomeincome tax liabilities
to the same income tax authority. Theamounts offset amounts are as follows: relate torelate the same income tax authority. The offset are as follows: 2014 2014 2013 2013 m m AED m AED m AEDAED
Overview
Emirates
tax assets DeferredDeferred income income tax assets Deferred income tax Deferred income tax liabilitiesliabilities
dnata
The movement in the deferred tax account is as follows: The movement in the deferred tax account is as follows: Balance brought forward Balance brought forward Acquisition (Note 30) Acquisition (Note 30) Credited to the consolidated statement Credited to the consolidated income income statement Deferred tax on retirement benefit obligation Financial InformationDeferred tax on retirement benefit obligation Discontinued operations Discontinued operations Currency translation differences Currency translation differences Emirates Financial Commentary Effect of change in tax Effect of change in tax rates rates BalanceBalance carried carried forwardforward Group
33
33 11
(131)
(131) (108)
(98)
(98)(97)
(97)
(97) (128)
(20) 25 (2) (5) 1 (98)
11 (108) (97)
(128) (20) (3) (3) 25 8 8 (2) 11 11 - 12 12 (5) 3 3 1 (98)(97) (97)
dnata Financial Commentary
equipment Other Other Total Total equipment assets assets m m AEDAED m m AEDAED m m AED m AED m AED AED 1 April 2012 1 April 2012 Acquisition Acquisition / credited (Charge)(Charge) / credited to the to the consolidated statement consolidated income income statement Discontinued operations Discontinued operations translation differences CurrencyCurrency translation differences 31 2013 March 2013 31 March Acquisition (Note 30) Acquisition (Note 30) / credited (Charge)(Charge) / credited to the to the
(41) -
(41)(108) (108) (2) (3) (3)
(2) (151) (151) - (3) (3)
(2) 3 (40)
(2) 17 3 10 5 (40) (79)
- 15 15 - 13 13 5 5 (2) (121) (121)
-
consolidated statement consolidated income income statement of changes in tax rates Effect ofEffect changes in tax rates Transfers Transfers translation differences CurrencyCurrency translation differences 31 2014 March 2014 31 March
(1) (41)
-
(45)
(1) 19 1 (6) (41)(110)
17 10 5 (79)
(2)
(45) 19 1 (6) (110)
2 (1) (1)
- (45) 2 20 1 (1) (1) - (6) (1) (152)
2014 2014 2013 2013 AED m AED mAED m AED m Less than 1 year Less than 1 year Between and 5 years Between 2 and 52years After 5 After years 5 years
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
312013 March 2013 31 March
dnata Consolidated Financial Statements
Acquisition (Note 30) Acquisition (Note 30) to the consolidated CreditedCredited to the consolidated income income statement statement Recognised other comprehensive Recognised in other in comprehensive income income
Additional Information
Transfers Transfers translation differences CurrencyCurrency translation differences 31 2014 March 2014 31 March
29
1
1 11
11 23
23
(4)
(4) (1)
(1) (2)
(2) (7)
(7)
(2) 5
- 11 (2) 5 11
11 - (1) - 11 8
- 11 (1) (1) - (2) 8 24
11 (1) (2) 24
17 25
25
11
11
2
2
6
6 17
1
1
1
1
1 -
1 -
(2) 1
9
9
17
3
(2) - 1 17 28
3
5
5
(2) 1 1
(2) 1 1
28 54
54
-
asset notrecognised been recognised in respect of forward carried forward tax losses DeferredDeferred tax assettaxhas not has been in respect of carried tax losses amounting to AED 156 m. amounting to AED 156 m. 29
1,786 1,786 1,969 1,969 648 427 427 648 2,434 2,434 2,396 2,396 (846) (846)(1,932) (1,932)
110
Cash andbalances bank balances Cash and bank
372
Less:term Short termdeposits bank deposits over 3 months Less: Short bank over 3 months Cash and cash equivalents as per the consolidated Cash and cash equivalents as per the consolidated statement of financial position statement of financial position Bank overdrafts (Note 19) Bank overdrafts (Note 19) Cash and cash equivalents as per the consolidated Cash and cash equivalents as per the consolidated
99 99 306 306 552 603 603 552 1,034 1,034 1,008 1,008
224 716 940
224
135 716 754 940 889
135 754 889
statement cash flows statement of cashof flows
1,588 1,588 464 (172) (172) (79)
464 (79)
1,416 1,416 385
385
Shortbank termdeposits, bank deposits, cash andequivalents cash equivalents an effective Short term cash and cash yield anyield effective interestinterest rate rate 1.6% 2.2%) (2013:per 2.2%) per annum. of 1.6%of(2013: annum.
25. Guarantees 25. Guarantees 2014 2014 2013 2013 AED m AED mAED m AED m
Tax losses Provisions Tax losses Provisions Other Other Total Total m m AEDAED m m AEDAED m m AED m AED m AED AED 1 April 2012 1 April 2012 to the consolidated ChargedCharged to the consolidated income income statement statement Recognised other comprehensive Recognised in otherin comprehensive income income Discontinued operation Discontinued operation translation differences CurrencyCurrency translation differences
Short termdeposits bank deposits Short term bank Cash and bank Cash and bank
372
2014 2014 2013 2013 AED m AED mAED m AED m Authorised and contracted Authorised and contracted Authorised not contracted Authorised but notbut contracted
2014 2014 2013 2013 AED m AED mAED m AED m
110
24. Capital commitments 24. Capital commitments
(45) 20 1 (1) (6) (152)
26.term Shortbank termdeposits, bank deposits, cash and cash equivalents 26. Short cash and cash equivalents
minimum lease payments under non-cancellable operating Future Future minimum lease payments under non-cancellable operating leases leases are as are as follows:follows:
Deferred tax assets Deferred incomeincome tax assets
Emirates Independent Auditor’s Report
138
Property, Property, plant and Intangible plant and Intangible
23. Operating 23. Operating leases leases
Guarantees and of letters ofprovided credit provided byin banks Guarantees and letters credit by banks the in the of business normal normal course course of business
134
134
84
84
Guarantees and of letters of include credit include 59 m AED (2013: 15 m) provided by Guarantees and letters credit AED 59AED m (2013: 15AED m) provided by companies under common companies under common control.control.
30
30
139
Overview
Emirates
dnata
Group
28. Related party transactions 28. Related party transactions
The accounting policies for financial instruments have been applied to the following:
transactions were carried with related The following transactions were carried out without related parties: parties: The following
Description
Assets and
Financial
liabilities at fair
liabilities at
Loans and
value through
amortised
receivables AED m
profit and loss AED m
cost AED m
transactions TradingTrading transactions Total AED m
2013 Assets Trade and other receivables (excluding prepayments)
1,476
2
-
1,478
Short term bank deposits
1,932
-
-
1,932
464
-
-
464
2
-
3,874
Cash and cash equivalents Total
3,872
Financial Information
Liabilities Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Other transactions Other transactions
27. Classification of financial instruments
Borrowings and lease liabilities
-
-
842
842
Trade and other payables (excluding customer deposits)
-
92
1,935
2,027
Total
-
92
2,777
2,869
2014 Assets Trade and other receivables (excluding prepayments) Short term bank deposits
1,703
-
-
1,703
846
-
-
846
Cash and cash equivalents
1,588
-
-
1,588
Total
4,137
-
-
4,137
/ purchases of and goods and services (i) Sales(i)/ Sales purchases of goods services Sales Sales of -goods - Companies under common Sale of Sale goods Companies under common control control Services rendered Associates Services rendered - Associates rendered - Joint ventures ServicesServices rendered - Joint ventures Services rendered Companies under common Services rendered - Companies under common control control
2014 2014 2013 2013 AED m AED mAED m AED m
410 19 18 2,051 2,498
Purchases Purchases Purchase of -goods - Companies under common Purchase of goods Companies under common control control Services received Associates Services received - Associates - Joint ventures ServicesServices receivedreceived - Joint ventures Services received - Companies under common Services received - Companies under common control control Year end balances from sale / purchase of (ii) Year(ii) end balances arising arising from sale / purchase of goods and / or services goods and / or services Receivables from related (Note 13) Receivables from related partiesparties (Note 13) Associates Associates Joint ventures Joint ventures Companies under common Companies under common control control
131 8 198 66 403
Liabilities -
-
866
866
Trade and other payables (excluding customer deposits)
-
93
2,266
2,359
Total
-
93
3,132
3,225
Except as otherwise stated, the carrying amounts of financial assets and financial liabilities approximate their fair values.
Payables to related (Note 15) Payables to related partiesparties (Note 15) Joint ventures Joint ventures Companies under common Companies under common control control
131 100 8 12 198 195 66 56
403 363
100 12 195 56 363
Termination Termination benefitsbenefits (ii) Loans (ii) Loans Associates Associates Joint ventures Joint ventures
Movement in the loans as follows: Movement in the loans were as were follows:
brought forward BalanceBalance brought forward Additions Additions Repayments Repayments (Note 10) TransferTransfer (Note 10) Currency translation differences Currency translation differences
forward (Note 13) BalanceBalance carriedcarried forward (Note 13)
26
26 3 -
3
29 3
7
7 221 228
61
61 178 (2) -
-
29
229
226 221 229 228
228
228
226
16 178 (44) (2)
16 (44) 15 14 229
21
21 3 1 25
3
15
(9) 229 228 14
3 1 25
(9) 228
Theearned loans earned 3.5%4.3%) (2013:per 4.3%) per annum. The loans effectiveeffective interestinterest of 3.5%of (2013: annum. In addition to the dnata above,has dnata also entered into transactions withDubai other Dubai In addition to the above, alsohas entered into transactions with other government controlled entities in the normal course of business. The amounts government controlled entities in the normal course of business. The amounts are, both individually and in aggregate, not significant. involvedinvolved are, both individually and in aggregate, not significant.
12 68 176 256
Borrowings and lease liabilities
369 10 18 6 6 2,051 1,869 1,869 2,4982,254 2,254 410 369 19 10
(i) Compensation to key management personnel (i) Compensation to key management personnel Salaries and short-term employee benefits Salaries and short-term employee benefits Post-employment Post-employment benefitsbenefits
2014 2014 2013 2013 AED m AED mAED m AED m
12
3 32 176 141 256 176 68
3 32 141 176
10 10 87 87 24 97 97 24 The amounts outstanding at the year are unsecured will be settled The amounts outstanding at the year end areend unsecured and willand be settled in cash.in cash. -
24
-
24
Additional Information
140
31
32
32
141
Overview
Emirates
dnata
Group
28. Related party transactions 28. Related party transactions
The accounting policies for financial instruments have been applied to the following:
transactions were carried with related The following transactions were carried out without related parties: parties: The following
Description
Assets and
Financial
liabilities at fair
liabilities at
Loans and
value through
amortised
receivables AED m
profit and loss AED m
cost AED m
transactions TradingTrading transactions Total AED m
2013 Assets Trade and other receivables (excluding prepayments)
1,476
2
-
1,478
Short term bank deposits
1,932
-
-
1,932
464
-
-
464
2
-
3,874
Cash and cash equivalents Total
3,872
Financial Information
Liabilities Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
Other transactions Other transactions
27. Classification of financial instruments
Borrowings and lease liabilities
-
-
842
842
Trade and other payables (excluding customer deposits)
-
92
1,935
2,027
Total
-
92
2,777
2,869
2014 Assets Trade and other receivables (excluding prepayments) Short term bank deposits
1,703
-
-
1,703
846
-
-
846
Cash and cash equivalents
1,588
-
-
1,588
Total
4,137
-
-
4,137
/ purchases of and goods and services (i) Sales(i)/ Sales purchases of goods services Sales Sales of -goods - Companies under common Sale of Sale goods Companies under common control control Services rendered Associates Services rendered - Associates rendered - Joint ventures ServicesServices rendered - Joint ventures Services rendered Companies under common Services rendered - Companies under common control control
2014 2014 2013 2013 AED m AED mAED m AED m
410 19 18 2,051 2,498
Purchases Purchases Purchase of -goods - Companies under common Purchase of goods Companies under common control control Services received Associates Services received - Associates - Joint ventures ServicesServices receivedreceived - Joint ventures Services received - Companies under common Services received - Companies under common control control Year end balances from sale / purchase of (ii) Year(ii) end balances arising arising from sale / purchase of goods and / or services goods and / or services Receivables from related (Note 13) Receivables from related partiesparties (Note 13) Associates Associates Joint ventures Joint ventures Companies under common Companies under common control control
131 8 198 66 403
Liabilities -
-
866
866
Trade and other payables (excluding customer deposits)
-
93
2,266
2,359
Total
-
93
3,132
3,225
Except as otherwise stated, the carrying amounts of financial assets and financial liabilities approximate their fair values.
Payables to related (Note 15) Payables to related partiesparties (Note 15) Joint ventures Joint ventures Companies under common Companies under common control control
131 100 8 12 198 195 66 56
403 363
100 12 195 56 363
Termination Termination benefitsbenefits (ii) Loans (ii) Loans Associates Associates Joint ventures Joint ventures
Movement in the loans as follows: Movement in the loans were as were follows:
brought forward BalanceBalance brought forward Additions Additions Repayments Repayments (Note 10) TransferTransfer (Note 10) Currency translation differences Currency translation differences
forward (Note 13) BalanceBalance carriedcarried forward (Note 13)
26
26 3 -
3
29 3
7
7 221 228
61
61 178 (2) -
-
29
229
226 221 229 228
228
228
226
16 178 (44) (2)
16 (44) 15 14 229
21
21 3 1 25
3
15
(9) 229 228 14
3 1 25
(9) 228
Theearned loans earned 3.5%4.3%) (2013:per 4.3%) per annum. The loans effectiveeffective interestinterest of 3.5%of (2013: annum. In addition to the dnata above,has dnata also entered into transactions withDubai other Dubai In addition to the above, alsohas entered into transactions with other government controlled entities in the normal course of business. The amounts government controlled entities in the normal course of business. The amounts are, both individually and in aggregate, not significant. involvedinvolved are, both individually and in aggregate, not significant.
12 68 176 256
Borrowings and lease liabilities
369 10 18 6 6 2,051 1,869 1,869 2,4982,254 2,254 410 369 19 10
(i) Compensation to key management personnel (i) Compensation to key management personnel Salaries and short-term employee benefits Salaries and short-term employee benefits Post-employment Post-employment benefitsbenefits
2014 2014 2013 2013 AED m AED mAED m AED m
12
3 32 176 141 256 176 68
3 32 141 176
10 10 87 87 24 97 97 24 The amounts outstanding at the year are unsecured will be settled The amounts outstanding at the year end areend unsecured and willand be settled in cash.in cash. -
24
-
24
Additional Information
140
31
32
32
141
29. Financial risk management 29. Financial risk management dnata hasexposure limited exposure to financial risks by of theofnature of its operations. dnata has limited to financial risks by virtue ofvirtue the nature its operations. In the In the areasfinancial where financial risks is to achieve an appropriate risk areas where risks exist, theexist, aim the is toaim achieve an appropriate balance balance betweenbetween risk andand return and minimise effects on financial dnata’s financial and return minimise potentialpotential adverse adverse effects on dnata’s position.position. Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
29. risk Financial risk management (continued) 29. Financial management (continued)
is exposed to the of effects of fluctuations in prevailing exchange dnata isdnata exposed to the effects fluctuations in prevailing foreign foreign currencycurrency exchange on its long term debt obligations denominated in Singapore Swiss Francs, rates onrates its long term debt obligations denominated in Singapore Dollars, Dollars, Swiss Francs,
The table below an presents of short bank and deposits bank balances by The table below presents analysisanofanalysis short term bankterm deposits bankand balances by rating agency designation at the end of the reporting period based on Standard & Poor's rating agency designation at the end of the reporting period based on Standard & Poor's ratings or its equivalent for banking the mainrelationships: banking relationships: ratings or its equivalent for the main
and Pounds Cashfrom flows the Singapore, Switzerland, and United Euro andEuro Pounds Sterling.Sterling. Cash flows thefrom Singapore, Switzerland, Italy andItaly United operations are adequate meet the repayment schedules. A 1% change in KingdomKingdom operations are adequate to meettothe repayment schedules. A 1% change in
dnata’s risk management procedures are designed to identify and analyse these dnata’s risk management procedures are designed to identify and analyse these risks, to risks, to set appropriate risk limits and controls and to monitor the risks and adherence to set appropriate risk limits and controls and to monitor the risks and adherence to limits bylimits by
exchange rate for these currencies would have a significant impact or equity. exchange rate for these currencies would not havenot a significant impact on profiton orprofit equity.
means of reliable and up-to-date information. dnata reviews risk management means of reliable and up-to-date information. dnata reviews its risk its management procedures and systems on a basis regular reflect changes in markets, and procedures and systems on a regular to basis reflecttochanges in markets, productsproducts and
(ii)risk Credit risk (ii) Credit
emerging best practice. emerging best practice.
is exposed credit risk,is which is that the risk the counterparty will cause a financial dnata is dnata exposed to credittorisk, which the risk the that counterparty will cause a financial loss tobydnata to discharge an obligation. assets that potentially loss to dnata failingbytofailing discharge an obligation. FinancialFinancial assets that potentially subject subject
Risk management procedures are approved by a steering group comprising Risk management procedures are approved by a steering group comprising of seniorof senior management. Their identification, evaluation and hedging of financial are performed management. Their identification, evaluation and hedging of financial risks arerisks performed
credit risk principally consist principally of deposits withand banks and trade receivables. dnata todnata credittorisk consist of deposits with banks trade receivables. dnata dnata uses external ratings as Standard & Moody's Poor's, Moody's their equivalent uses external ratings such as such Standard & Poor's, or their or equivalent in orderintoorder to
close cooperation the operating units.management Senior management is also responsible for in close in cooperation with thewith operating units. Senior is also responsible for the of review of risk management the environment. control environment. The various risk the review risk management and the and control The various financialfinancial risk
and monitor credit risk exposures to financial institutions. In the absence of measuremeasure and monitor its credititsrisk exposures to financial institutions. In the absence of independent credit is quality is assessed based the counterparty's independent ratings, ratings, credit quality assessed based on the on counterparty's financialfinancial
are discussed elementselements are discussed below. below.
past experience and other factors. position,position, past experience and other factors.
(i) Market risk (i) Market risk Market risk is the the fair future cash of a financial instrument will Market risk is the risk thatrisk the that fair value orvalue futureorcash flows of flows a financial instrument will of changes in prices. marketMarket prices. risks Market risks relevant to operations dnata's operations fluctuatefluctuate becausebecause of changes in market relevant to dnata's are rate interest and currency risk. are interest risk rate and risk currency risk.
dnata Financial Commentary
Currency risk Currency risk
InterestInterest rate riskrate risk is exposed to the of effects of fluctuations in prevailing of interest dnata isdnata exposed to the effects fluctuations in prevailing levels oflevels interest rates onrates on borrowings and investments. arisesinterest from interest rate fluctuations borrowings and investments. ExposureExposure arises from rate fluctuations in the in the international with respect to interest on itsterm longdebt term debt international financialfinancial markets markets with respect to interest cost oncost its long obligations and income interest on income on its bank deposits. obligations and interest its bank deposits.
dnata manages limits and controls concentration of risk wherever are identified. dnata manages limits and controls concentration of risk wherever they arethey identified. dnatasignificant places significant with highquality credit banks. qualityExposure banks. Exposure credit dnata places depositsdeposits with high credit to credittorisk is risk is also managed of the of ability of counterparties and potential also managed through through regular regular analysis analysis of the ability counterparties and potential counterparties to meet their obligations and by changing their limits where appropriate. counterparties to meet their obligations and by changing their limits where appropriate. Approximately 30%22%) (2013: short term bank deposits and bank balances Approximately 30% (2013: of 22%) short of term bank deposits and cashand andcash bank balances with financial institutions under common are heldare withheld financial institutions under common control. control. Policies are in tothat ensure that are to customers with an appropriate Policies are in place to place ensure sales aresales made tomade customers with an appropriate credit credit historywhich failinganwhich an appropriate level of security is obtained, where necessary history failing appropriate level of security is obtained, where necessary sales aresales are cashCredit terms.limits Credit also imposed to cap exposure to a customer. made onmade cash on terms. arelimits also are imposed to cap exposure to a customer.
Borrowings at variable rates dnata exposetodnata cash flow interest Borrowings obtainedobtained at variable rates expose cash to flow interest rate risk.rate No risk. No is obtained duestable to theinterest stable interest rate environment thatinexists hedginghedging cover is cover obtained due to the rate environment that exists the in the
AA- to AA+ AA- to AA+ A- to A+ A- to A+ BBB+ BBB+ Lower than BBB+ Lower than BBB+
2014 AED m 25 715 1,186 57
20142013 2013 AED m AED m AED m 25 62 62 715 830 830 1,186 1,268 1,268 57 15 15
(iii) Liquidity risk (iii) Liquidity risk Liquidity risk is the risk that dnata is unable to meet its payment obligations associated Liquidity risk is the risk that dnata is unable to meet its payment obligations associated with its financial liabilities when they fall due and to replace funds when they are with its financial liabilities when they fall due and to replace funds when they are withdrawn. withdrawn. dnata’s liquidity management process is monitored by senior management and includes dnata’s liquidity management process is monitored by senior management and includes the following: the following: Day to day funding, managed by monitoring future cash flows to ensure that Day to dayrequirements funding, managed by monitoring future cash flows of tofunds ensure can be met. This includes replenishment as that they mature. requirements can be met. This includes replenishment of funds as they mature. dnata maintains diversified credit lines to enable this to happen. dnatamaintains diversified credit lines to of enable this liquidity to happen. Maintaining rolling forecasts dnata’s position on the basis of Maintaining rollingcash forecasts expected flows. of dnata’s liquidity position on the basis of expected flows. liquidity ratios against internal and external regulatory cash Monitoring Monitoringrequirements. liquidity ratios against internal and external regulatory requirements. Maintaining debt financing plans. Maintaining debt financing plans.credit facility arrangements. Entering in to stand-by Entering in to stand-by credit facility arrangements.
Summarised in the is the maturity profile of financial liabilities based Summarised below inbelow the table is table the maturity profile of financial liabilities based on the on the remaining at the endreporting of the reporting period to the contractual maturity date. The remaining period atperiod the end of the period to the contractual maturity date. The are the contractual undiscounted cash flows. amountsamounts discloseddisclosed are the contractual undiscounted cash flows.
Description Description
Less 5 Less than 1 than 1 2 - 5 2 - Over 5 Over 5 year years year years years years Total Total AED m AED m AED m AED m AED m AED mAED m AED m
2014 2014 Borrowings and lease liabilities Borrowings and lease liabilities Trade and other payables Trade and other payables (excluding customer deposits) (excluding customer deposits)
315 2,169 2,484
2013 2013 Borrowings and lease liabilities Borrowings and lease liabilities Trade and other payables Trade and other payables (excluding customer deposits) (excluding customer deposits)
228 1,861 2,089
315 2,169 2,484
228 1,861 2,089
591 213 804
683 217 900
591 213 804
683 217 900
12 12
-
12 12
-
918 2,382 3,300
911 2,078 2,989
918 2,382 3,300
911 2,078 2,989
Sources of liquidity are regularly reviewed as required by senior management to maintain Sources ofaliquidity are regularly reviewed as required by senior management to maintain diversification by geography, provider, product and term. a diversification by geography, provider, product and term.
where are contracted. countriescountries where the loansthe areloans contracted. key reference rateson based which interest are determined CHFfor LIBOR for The key The reference rates based whichoninterest costs arecosts determined are CHF are LIBOR Swiss GBP Francs, GBPfor LIBOR for Pounds andfor SIBOR for Singapore Swiss Francs, LIBOR Pounds Sterling,Sterling, EURIBOREURIBOR for Eurofor andEuro SIBOR Singapore Dollars. A 25 basis point in change these rates interest ratesnot would have a significant Dollars. A 25 basis point change these in interest would havenot a significant impact impact or equity. on profiton orprofit equity.
Additional Information
142
33
33
34
34
143
29. Financial risk management 29. Financial risk management dnata hasexposure limited exposure to financial risks by of theofnature of its operations. dnata has limited to financial risks by virtue ofvirtue the nature its operations. In the In the areasfinancial where financial risks is to achieve an appropriate risk areas where risks exist, theexist, aim the is toaim achieve an appropriate balance balance betweenbetween risk andand return and minimise effects on financial dnata’s financial and return minimise potentialpotential adverse adverse effects on dnata’s position.position. Overview
Emirates
dnata
Group
Financial Information
Emirates Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
dnata Consolidated Financial Statements
29. risk Financial risk management (continued) 29. Financial management (continued)
is exposed to the of effects of fluctuations in prevailing exchange dnata isdnata exposed to the effects fluctuations in prevailing foreign foreign currencycurrency exchange on its long term debt obligations denominated in Singapore Swiss Francs, rates onrates its long term debt obligations denominated in Singapore Dollars, Dollars, Swiss Francs,
The table below an presents of short bank and deposits bank balances by The table below presents analysisanofanalysis short term bankterm deposits bankand balances by rating agency designation at the end of the reporting period based on Standard & Poor's rating agency designation at the end of the reporting period based on Standard & Poor's ratings or its equivalent for banking the mainrelationships: banking relationships: ratings or its equivalent for the main
and Pounds Cashfrom flows the Singapore, Switzerland, and United Euro andEuro Pounds Sterling.Sterling. Cash flows thefrom Singapore, Switzerland, Italy andItaly United operations are adequate meet the repayment schedules. A 1% change in KingdomKingdom operations are adequate to meettothe repayment schedules. A 1% change in
dnata’s risk management procedures are designed to identify and analyse these dnata’s risk management procedures are designed to identify and analyse these risks, to risks, to set appropriate risk limits and controls and to monitor the risks and adherence to set appropriate risk limits and controls and to monitor the risks and adherence to limits bylimits by
exchange rate for these currencies would have a significant impact or equity. exchange rate for these currencies would not havenot a significant impact on profiton orprofit equity.
means of reliable and up-to-date information. dnata reviews risk management means of reliable and up-to-date information. dnata reviews its risk its management procedures and systems on a basis regular reflect changes in markets, and procedures and systems on a regular to basis reflecttochanges in markets, productsproducts and
(ii)risk Credit risk (ii) Credit
emerging best practice. emerging best practice.
is exposed credit risk,is which is that the risk the counterparty will cause a financial dnata is dnata exposed to credittorisk, which the risk the that counterparty will cause a financial loss tobydnata to discharge an obligation. assets that potentially loss to dnata failingbytofailing discharge an obligation. FinancialFinancial assets that potentially subject subject
Risk management procedures are approved by a steering group comprising Risk management procedures are approved by a steering group comprising of seniorof senior management. Their identification, evaluation and hedging of financial are performed management. Their identification, evaluation and hedging of financial risks arerisks performed
credit risk principally consist principally of deposits withand banks and trade receivables. dnata todnata credittorisk consist of deposits with banks trade receivables. dnata dnata uses external ratings as Standard & Moody's Poor's, Moody's their equivalent uses external ratings such as such Standard & Poor's, or their or equivalent in orderintoorder to
close cooperation the operating units.management Senior management is also responsible for in close in cooperation with thewith operating units. Senior is also responsible for the of review of risk management the environment. control environment. The various risk the review risk management and the and control The various financialfinancial risk
and monitor credit risk exposures to financial institutions. In the absence of measuremeasure and monitor its credititsrisk exposures to financial institutions. In the absence of independent credit is quality is assessed based the counterparty's independent ratings, ratings, credit quality assessed based on the on counterparty's financialfinancial
are discussed elementselements are discussed below. below.
past experience and other factors. position,position, past experience and other factors.
(i) Market risk (i) Market risk Market risk is the the fair future cash of a financial instrument will Market risk is the risk thatrisk the that fair value orvalue futureorcash flows of flows a financial instrument will of changes in prices. marketMarket prices. risks Market risks relevant to operations dnata's operations fluctuatefluctuate becausebecause of changes in market relevant to dnata's are rate interest and currency risk. are interest risk rate and risk currency risk.
dnata Financial Commentary
Currency risk Currency risk
InterestInterest rate riskrate risk is exposed to the of effects of fluctuations in prevailing of interest dnata isdnata exposed to the effects fluctuations in prevailing levels oflevels interest rates onrates on borrowings and investments. arisesinterest from interest rate fluctuations borrowings and investments. ExposureExposure arises from rate fluctuations in the in the international with respect to interest on itsterm longdebt term debt international financialfinancial markets markets with respect to interest cost oncost its long obligations and income interest on income on its bank deposits. obligations and interest its bank deposits.
dnata manages limits and controls concentration of risk wherever are identified. dnata manages limits and controls concentration of risk wherever they arethey identified. dnatasignificant places significant with highquality credit banks. qualityExposure banks. Exposure credit dnata places depositsdeposits with high credit to credittorisk is risk is also managed of the of ability of counterparties and potential also managed through through regular regular analysis analysis of the ability counterparties and potential counterparties to meet their obligations and by changing their limits where appropriate. counterparties to meet their obligations and by changing their limits where appropriate. Approximately 30%22%) (2013: short term bank deposits and bank balances Approximately 30% (2013: of 22%) short of term bank deposits and cashand andcash bank balances with financial institutions under common are heldare withheld financial institutions under common control. control. Policies are in tothat ensure that are to customers with an appropriate Policies are in place to place ensure sales aresales made tomade customers with an appropriate credit credit historywhich failinganwhich an appropriate level of security is obtained, where necessary history failing appropriate level of security is obtained, where necessary sales aresales are cashCredit terms.limits Credit also imposed to cap exposure to a customer. made onmade cash on terms. arelimits also are imposed to cap exposure to a customer.
Borrowings at variable rates dnata exposetodnata cash flow interest Borrowings obtainedobtained at variable rates expose cash to flow interest rate risk.rate No risk. No is obtained duestable to theinterest stable interest rate environment thatinexists hedginghedging cover is cover obtained due to the rate environment that exists the in the
AA- to AA+ AA- to AA+ A- to A+ A- to A+ BBB+ BBB+ Lower than BBB+ Lower than BBB+
2014 AED m 25 715 1,186 57
20142013 2013 AED m AED m AED m 25 62 62 715 830 830 1,186 1,268 1,268 57 15 15
(iii) Liquidity risk (iii) Liquidity risk Liquidity risk is the risk that dnata is unable to meet its payment obligations associated Liquidity risk is the risk that dnata is unable to meet its payment obligations associated with its financial liabilities when they fall due and to replace funds when they are with its financial liabilities when they fall due and to replace funds when they are withdrawn. withdrawn. dnata’s liquidity management process is monitored by senior management and includes dnata’s liquidity management process is monitored by senior management and includes the following: the following: Day to day funding, managed by monitoring future cash flows to ensure that Day to dayrequirements funding, managed by monitoring future cash flows of tofunds ensure can be met. This includes replenishment as that they mature. requirements can be met. This includes replenishment of funds as they mature. dnata maintains diversified credit lines to enable this to happen. dnatamaintains diversified credit lines to of enable this liquidity to happen. Maintaining rolling forecasts dnata’s position on the basis of Maintaining rollingcash forecasts expected flows. of dnata’s liquidity position on the basis of expected flows. liquidity ratios against internal and external regulatory cash Monitoring Monitoringrequirements. liquidity ratios against internal and external regulatory requirements. Maintaining debt financing plans. Maintaining debt financing plans.credit facility arrangements. Entering in to stand-by Entering in to stand-by credit facility arrangements.
Summarised in the is the maturity profile of financial liabilities based Summarised below inbelow the table is table the maturity profile of financial liabilities based on the on the remaining at the endreporting of the reporting period to the contractual maturity date. The remaining period atperiod the end of the period to the contractual maturity date. The are the contractual undiscounted cash flows. amountsamounts discloseddisclosed are the contractual undiscounted cash flows.
Description Description
Less 5 Less than 1 than 1 2 - 5 2 - Over 5 Over 5 year years year years years years Total Total AED m AED m AED m AED m AED m AED mAED m AED m
2014 2014 Borrowings and lease liabilities Borrowings and lease liabilities Trade and other payables Trade and other payables (excluding customer deposits) (excluding customer deposits)
315 2,169 2,484
2013 2013 Borrowings and lease liabilities Borrowings and lease liabilities Trade and other payables Trade and other payables (excluding customer deposits) (excluding customer deposits)
228 1,861 2,089
315 2,169 2,484
228 1,861 2,089
591 213 804
683 217 900
591 213 804
683 217 900
12 12
-
12 12
-
918 2,382 3,300
911 2,078 2,989
918 2,382 3,300
911 2,078 2,989
Sources of liquidity are regularly reviewed as required by senior management to maintain Sources ofaliquidity are regularly reviewed as required by senior management to maintain diversification by geography, provider, product and term. a diversification by geography, provider, product and term.
where are contracted. countriescountries where the loansthe areloans contracted. key reference rateson based which interest are determined CHFfor LIBOR for The key The reference rates based whichoninterest costs arecosts determined are CHF are LIBOR Swiss GBP Francs, GBPfor LIBOR for Pounds andfor SIBOR for Singapore Swiss Francs, LIBOR Pounds Sterling,Sterling, EURIBOREURIBOR for Eurofor andEuro SIBOR Singapore Dollars. A 25 basis point in change these rates interest ratesnot would have a significant Dollars. A 25 basis point change these in interest would havenot a significant impact impact or equity. on profiton orprofit equity.
Additional Information
142
33
33
34
34
143
30. Acquisitions and disposal 30. Acquisitions and disposal Acquisitions Acquisitions
The and assets the liabilities arisingand from and recognised the acquisition The assets theand liabilities arising from recognised on the on acquisition of the of the subsidiaries are as follows: subsidiaries are as follows:
Broadlex Air Services Broadlex Air Services
Overview
On 15 Aprildnata 2013,acquired dnata acquired the business of Broadlex Air Services its On 15 April 2013, the business of Broadlex Air Services throughthrough its wholly subsidiary owned subsidiary Airline Cleaning Pty. Limited. The company wholly owned Airline Cleaning ServicesServices Pty. Limited. The company providesprovides at airports various airports in Australia. aircraft aircraft cleaningcleaning services services at various in Australia.
Emirates
Air ChefAir srlChef srl
dnata
On 2013, 15 May 2013,obtained dnata obtained 100% of control a joint venture, Servair On 15 May dnata 100% control a jointofventure, Servair Air Chef Air srl Chef (“Air srl (“Air Chef”), by acquiring the remaining 50% through its wholly owned subsidiary Alpha Flight Chef”), by acquiring the remaining 50% through its wholly owned subsidiary Alpha Flight
Group
srl. Air Chefofisthe oneleading of the in-flight leading in-flight companies in Italy operating Italia srl. Italia Air Chef is one catering catering companies in Italy operating at 23 at 23 airports (Note 10). airports (Note 10). GoldInternational Medal International plc Gold Medal plc On 27 February 2014, dnata acquired GoldInternational Medal International plcMedal") ("Gold Medal") On 27 February 2014, dnata acquired Gold Medal plc ("Gold through through itsowned wholly subsidiary owned subsidiary dnataHoldings Travel Holdings UK Limited. GoldisMedal one of the its wholly dnata Travel UK Limited. Gold Medal one ofis the
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
leading distributors of scheduled long-haul travel products in theKingdom. United Kingdom. leading distributors of scheduled long-haul travel products in the United
Description Description
and equipment Property,Property, plant andplant equipment (Note 8) (Note 8) Intangible assets9) (Note 9) Intangible assets (Note Investment accounted Investment accounted for usingfor theusing the
8
8
21
21
12 24
12
6 24 161
6
26 161 206
equity method equity method (Note 10)(Note 10) Deferred tax assets Deferred tax assets (Note 22)(Note 22)
-
-
3
3
-
-
-
-
11
11
14
14
Otherassets current assets Other current Cash and cash equivalents Cash and cash equivalents
-
-
84
84
80
-
-
41
41
Provisions Provisions (Note 18)(Note 18) Deferred tax liabilities Deferred tax liabilities (Note 22)(Note 22)
-
-
(18)
(18)
(6)
(6)
Current liabilities Current liabilities Fair of netacquired assets acquired Fair value ofvalue net assets Less: Non controlling Less: Non controlling interest interest dnata's share of net assets dnata's share of net assets
acquiredacquired GoodwillGoodwill (Note 9) (Note 9)
Total purchase consideration Total purchase consideration Less: cash equivalents Less: Cash andCash cashand equivalents
acquiredacquired of retained Less: FairLess: valueFair of value retained interest interest (Note 10)(Note 10) Cash outflow on acquisition Cash outflow on acquisition
(3) 20
(7) (3) (79) 20 71
-
-
20
20
38
38 180 58 250
58 58
-
(1) 70
(41)
- (118) 58 91
26 206
3
3
52
25 80 164 52 93
25
(7) (32) (79) (203)
- (18) (32) (45) (203) (285)
71
(1) 70
78 78
180 153 250 231 (41) (52) (118)
91 179
Description Description
Air Services Air ChefAir Gold Air Services ChefMedal Gold Medal Total
Acquisition-related costs costs Acquisition-related Contribution from acquired Contribution from acquired
Total
AED m AED m AED m AED m AED m AED m AED m AED m 3 2 5 3 2 5 10 10
businesses businesses RevenueRevenue from acquisition date to date to from acquisition
93 (18) (45) (285) 169
78 168 153 371
168
(1)
371 539
(52) (93)
(93)
- (118) 179 328
(118) 328
a minority interest. interest. Only thatOnly partthat of the which serves customers is being is being a minority partbusiness of the business whichexternal serves external customers disposeddisposed of. The completion of sale is subject to certain conditions which will be completed of. The completion of sale is subject to certain conditions which will be completed
after theafter datethe these consolidated financialfinancial statements are approved. As this line of business date these consolidated statements are approved. As this line of business as a discontinued operation. as a discontinued operation.
125
125 298
6
14
Profit / (loss) acquisition date Profitfrom / (loss) from acquisition date to 31 March to 312014 March 2014
6
298
56
56 479
479
14
(2)
18
18
(2)
If the acquisition had taken If the acquisition hadplace taken place
of the year at the beginning at the beginning of the year RevenueRevenue Profit Profit
On 31 March dnata into an agreement with a global to firm, to On 312014, March 2014,entered dnata entered into an agreement with aprivate global equity privatefirm, equity dispose dispose of its United Emirates based information technology businessbusiness while retaining of itsArab United Arab Emirates based information technology while retaining
does notdoes constitute a significant proportion of dnata's it has notit been classified not constitute a significant proportion of operations, dnata's operations, has not been classified
164
78 169 (1)
231 539
Disposal Disposal
The financial effects ofeffects the acquired businesses are set out The financial of the acquired businesses arebelow: set out below: Broadlex Broadlex
31 March312014 March 2014
is attributable to the expected synergies, growth andmarket future market GoodwillGoodwill is attributable to the expected synergies, revenue revenue growth and future development of the acquired businesses. development of the acquired businesses.
31. Capital management 31. Capital management dnata monitors the return equity defined as profitas forprofit the year expressed as a dnata monitors theon return onwhich equityis which is defined for the year expressed as a percentage of average equity. dnata seeks to provide a higher return to the Owner percentage of average equity. dnata seeks to provide a higher return to the by Owner by resortingresorting to borrowings to finance acquisitions. In 2014,Indnata a returnaon to borrowings to its finance its acquisitions. 2014,achieved dnata achieved return on equity ofequity 19.1%of(2013: comparison to an effective interest interest rate of 2.8% (2013: 19.1%21.4%) (2013: in 21.4%) in comparison to an effective rate of 2.8% (2013: 3.0%) on3.0%) borrowings. on borrowings.
129 6
129 358 6 22
358 604 22 32
604 1,091 32
60
1,091 60
In the previous year, dnata an 80% an beneficial interest interest in En Route In the previous year,acquired dnata acquired 80% beneficial in EnInternational Route International Limited Limited (En Route), its wholly dnata Catering Services Services Limited Limited (En through Route), through its owned wholly subsidiary owned subsidiary dnata Catering (DCSL). En RouteEnisRoute a supplier of bakery packaged food solutions with operations in (DCSL). is a supplier of and bakery and packaged food solutions with operations in United Kingdom, United Arab Emirates and United America. United Kingdom, United Arab Emirates andStates UnitedofStates of America.
The assets liabilities arising from and recognised on acquisition of En Route as were as Theand assets and liabilities arising from and recognised on acquisition of Enwere Route follows: follows: Fair value ofvalue net assets Fair of netacquired assets acquired Less: Non controlling interest interest Less: Non controlling dnata's dnata's share ofshare net assets of netacquired assets acquired GoodwillGoodwill (Note 9) (Note 9) Total purchase consideration Total purchase consideration
Less: Cash andCash cashand equivalents acquiredacquired Less: cash equivalents Cash outflow on acquisition Cash outflow on acquisition
dnata Consolidated Financial Statements
AED m AED m 14 14 (3) (3) 11
10 21 (1) 20
11 10 21 (1) 20
DCSL entered into a symmetrical put andput calland options arrangement to acquire the DCSL entered into a symmetrical call options arrangement to acquire the remaining 20% non-controlling interest interest in En Route. fair The value the amount that remaining 20% non-controlling in En The Route. fairofvalue of the amount that becomesbecomes payable payable on exercise of the option included in trade in and other payables. on exercise of theisoption is included trade and other payables.
Additional Information
144
BroadlexBroadlex Air ChefAir Chef Gold Gold Air Services srl Air Services srl Medal MedalTotal Total AED m AED m AED m AED m AED m AED m AED m AED m
30. Acquisitions and disposal (continued) 30. Acquisitions and disposal (continued)
35
35
36
36
145
30. Acquisitions and disposal 30. Acquisitions and disposal Acquisitions Acquisitions
The and assets the liabilities arisingand from and recognised the acquisition The assets theand liabilities arising from recognised on the on acquisition of the of the subsidiaries are as follows: subsidiaries are as follows:
Broadlex Air Services Broadlex Air Services
Overview
On 15 Aprildnata 2013,acquired dnata acquired the business of Broadlex Air Services its On 15 April 2013, the business of Broadlex Air Services throughthrough its wholly subsidiary owned subsidiary Airline Cleaning Pty. Limited. The company wholly owned Airline Cleaning ServicesServices Pty. Limited. The company providesprovides at airports various airports in Australia. aircraft aircraft cleaningcleaning services services at various in Australia.
Emirates
Air ChefAir srlChef srl
dnata
On 2013, 15 May 2013,obtained dnata obtained 100% of control a joint venture, Servair On 15 May dnata 100% control a jointofventure, Servair Air Chef Air srl Chef (“Air srl (“Air Chef”), by acquiring the remaining 50% through its wholly owned subsidiary Alpha Flight Chef”), by acquiring the remaining 50% through its wholly owned subsidiary Alpha Flight
Group
srl. Air Chefofisthe oneleading of the in-flight leading in-flight companies in Italy operating Italia srl. Italia Air Chef is one catering catering companies in Italy operating at 23 at 23 airports (Note 10). airports (Note 10). GoldInternational Medal International plc Gold Medal plc On 27 February 2014, dnata acquired GoldInternational Medal International plcMedal") ("Gold Medal") On 27 February 2014, dnata acquired Gold Medal plc ("Gold through through itsowned wholly subsidiary owned subsidiary dnataHoldings Travel Holdings UK Limited. GoldisMedal one of the its wholly dnata Travel UK Limited. Gold Medal one ofis the
Financial Information
Emirates Financial Commentary
dnata Financial Commentary
Emirates Independent Auditor’s Report
Emirates Consolidated Financial Statements
dnata Independent Auditor’s Report
leading distributors of scheduled long-haul travel products in theKingdom. United Kingdom. leading distributors of scheduled long-haul travel products in the United
Description Description
and equipment Property,Property, plant andplant equipment (Note 8) (Note 8) Intangible assets9) (Note 9) Intangible assets (Note Investment accounted Investment accounted for usingfor theusing the
8
8
21
21
12 24
12
6 24 161
6
26 161 206
equity method equity method (Note 10)(Note 10) Deferred tax assets Deferred tax assets (Note 22)(Note 22)
-
-
3
3
-
-
-
-
11
11
14
14
Otherassets current assets Other current Cash and cash equivalents Cash and cash equivalents
-
-
84
84
80
-
-
41
41
Provisions Provisions (Note 18)(Note 18) Deferred tax liabilities Deferred tax liabilities (Note 22)(Note 22)
-
-
(18)
(18)
(6)
(6)
Current liabilities Current liabilities Fair of netacquired assets acquired Fair value ofvalue net assets Less: Non controlling Less: Non controlling interest interest dnata's share of net assets dnata's share of net assets
acquiredacquired GoodwillGoodwill (Note 9) (Note 9)
Total purchase consideration Total purchase consideration Less: cash equivalents Less: Cash andCash cashand equivalents
acquiredacquired of retained Less: FairLess: valueFair of value retained interest interest (Note 10)(Note 10) Cash outflow on acquisition Cash outflow on acquisition
(3) 20
(7) (3) (79) 20 71
-
-
20
20
38
38 180 58 250
58 58
-
(1) 70
(41)
- (118) 58 91
26 206
3
3
52
25 80 164 52 93
25
(7) (32) (79) (203)
- (18) (32) (45) (203) (285)
71
(1) 70
78 78
180 153 250 231 (41) (52) (118)
91 179
Description Description
Air Services Air ChefAir Gold Air Services ChefMedal Gold Medal Total
Acquisition-related costs costs Acquisition-related Contribution from acquired Contribution from acquired
Total
AED m AED m AED m AED m AED m AED m AED m AED m 3 2 5 3 2 5 10 10
businesses businesses RevenueRevenue from acquisition date to date to from acquisition
93 (18) (45) (285) 169
78 168 153 371
168
(1)
371 539
(52) (93)
(93)
- (118) 179 328
(118) 328
a minority interest. interest. Only thatOnly partthat of the which serves customers is being is being a minority partbusiness of the business whichexternal serves external customers disposeddisposed of. The completion of sale is subject to certain conditions which will be completed of. The completion of sale is subject to certain conditions which will be completed
after theafter datethe these consolidated financialfinancial statements are approved. As this line of business date these consolidated statements are approved. As this line of business as a discontinued operation. as a discontinued operation.
125
125 298
6
14
Profit / (loss) acquisition date Profitfrom / (loss) from acquisition date to 31 March to 312014 March 2014
6
298
56
56 479
479
14
(2)
18
18
(2)
If the acquisition had taken If the acquisition hadplace taken place
of the year at the beginning at the beginning of the year RevenueRevenue Profit Profit
On 31 March dnata into an agreement with a global to firm, to On 312014, March 2014,entered dnata entered into an agreement with aprivate global equity privatefirm, equity dispose dispose of its United Emirates based information technology businessbusiness while retaining of itsArab United Arab Emirates based information technology while retaining
does notdoes constitute a significant proportion of dnata's it has notit been classified not constitute a significant proportion of operations, dnata's operations, has not been classified
164
78 169 (1)
231 539
Disposal Disposal
The financial effects ofeffects the acquired businesses are set out The financial of the acquired businesses arebelow: set out below: Broadlex Broadlex
31 March312014 March 2014
is attributable to the expected synergies, growth andmarket future market GoodwillGoodwill is attributable to the expected synergies, revenue revenue growth and future development of the acquired businesses. development of the acquired businesses.
31. Capital management 31. Capital management dnata monitors the return equity defined as profitas forprofit the year expressed as a dnata monitors theon return onwhich equityis which is defined for the year expressed as a percentage of average equity. dnata seeks to provide a higher return to the Owner percentage of average equity. dnata seeks to provide a higher return to the by Owner by resortingresorting to borrowings to finance acquisitions. In 2014,Indnata a returnaon to borrowings to its finance its acquisitions. 2014,achieved dnata achieved return on equity ofequity 19.1%of(2013: comparison to an effective interest interest rate of 2.8% (2013: 19.1%21.4%) (2013: in 21.4%) in comparison to an effective rate of 2.8% (2013: 3.0%) on3.0%) borrowings. on borrowings.
129 6
129 358 6 22
358 604 22 32
604 1,091 32
60
1,091 60
In the previous year, dnata an 80% an beneficial interest interest in En Route In the previous year,acquired dnata acquired 80% beneficial in EnInternational Route International Limited Limited (En Route), its wholly dnata Catering Services Services Limited Limited (En through Route), through its owned wholly subsidiary owned subsidiary dnata Catering (DCSL). En RouteEnisRoute a supplier of bakery packaged food solutions with operations in (DCSL). is a supplier of and bakery and packaged food solutions with operations in United Kingdom, United Arab Emirates and United America. United Kingdom, United Arab Emirates andStates UnitedofStates of America.
The assets liabilities arising from and recognised on acquisition of En Route as were as Theand assets and liabilities arising from and recognised on acquisition of Enwere Route follows: follows: Fair value ofvalue net assets Fair of netacquired assets acquired Less: Non controlling interest interest Less: Non controlling dnata's dnata's share ofshare net assets of netacquired assets acquired GoodwillGoodwill (Note 9) (Note 9) Total purchase consideration Total purchase consideration
Less: Cash andCash cashand equivalents acquiredacquired Less: cash equivalents Cash outflow on acquisition Cash outflow on acquisition
dnata Consolidated Financial Statements
AED m AED m 14 14 (3) (3) 11
10 21 (1) 20
11 10 21 (1) 20
DCSL entered into a symmetrical put andput calland options arrangement to acquire the DCSL entered into a symmetrical call options arrangement to acquire the remaining 20% non-controlling interest interest in En Route. fair The value the amount that remaining 20% non-controlling in En The Route. fairofvalue of the amount that becomesbecomes payable payable on exercise of the option included in trade in and other payables. on exercise of theisoption is included trade and other payables.
Additional Information
144
BroadlexBroadlex Air ChefAir Chef Gold Gold Air Services srl Air Services srl Medal MedalTotal Total AED m AED m AED m AED m AED m AED m AED m AED m
30. Acquisitions and disposal (continued) 30. Acquisitions and disposal (continued)
35
35
36
36
145
Ten-year overview Consolidated income statement Revenue and other operating income Operating costs
Overview
Emirates
dnata
Group
Emirates Ten-Year Overview
Group Companies of Emirates
Group Companies of dnata
Glossary
146
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
73,113
62,287
54,231
43,455
43,266
38,810
29,173
22,658
17,909 15,290
Key ratios
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
Operating margin Profit margin Return on shareholder's funds EBITDAR margin
% % % %
5.2 3.9 13.6 20.8
3.9 3.1 10.4 19.0
2.9 2.4 7.2 17.2
10.0 9.9 28.4 24.8
8.2 8.1 21.6 24.5
5.3 1.6 4.4 19.2
11.5 12.9 33.8 25.1
11.4 10.6 26.0 26.1
11.7 10.9 26.4 26.3
14.6 13.4 37.4 29.8
AED m
78,376
70,274
60,474
48,788
39,890
40,988
34,359
25,834
20,006
30,685
27,855
24,292
16,820
11,908
14,443
11,005
7,525
5,445
3,279
- of which employee costs
AED m
10,230
9,029
7,936
7,615
6,345
5,861
5,475
4,024
3,187
2,701
Cash assets to revenue and other operating income
%
20.0
33.6
25.0
25.8
24.2
17.0
32.8
39.7
43.4
42.7
Operating profit
AED m
4,260
2,839
1,813
5,443
3,565
2,278
4,451
3,339
2,652
2,619
Profit attributable to the Owner
AED m
3,254
2,283
1,502
5,375
3,538
686
5,020
3,096
2,475
2,407
Net debt equity ratio Net debt (including aircraft operating leases) equity ratio Net debt (including aircraft operating leases) to EBITDAR Effective interest rate on borrowings and lease liabilities Fixed to float debt mix
% % % %
101.6 209.9 310.3 3.2 94:6
69.3 186.4 309.1 3.1 90:10
71.2 162.1 324.1 3.0 89:11
44.5 127.6 197.6 2.7 89:11
52.0 158.5 260.3 2.5 83:17
58.7 167.0 313.9 3.5 61:39
5.9 98.1 169.9 5.2 68:32
13.2 116.1 201.2 5.7 63:37
13.0 111.9 204.6 4.5 63:37
6.1 116.6 177.4 3.5 67:33
Non-current assets
AED m
74,250
59,856
51,896
43,223
36,870
31,919
27,722
22,530
17,018
12,219
Current assets
AED m
27,354
34,947
25,190
21,867
18,677
15,530
18,790
15,428
14,376
11,499
Fils per RTKM Fils per ATKM Fils per ATKM %
250 162 97 64.9
249 167 99 66.9
251 166 97 65.9
232 147 95 63.6
211 136 94 64.4
254 163 104 64.1
236 151 101 64.1
216 129 90 59.9
203 122 88 60.2
192 111 86 58.0
number months
217 74
197 72
169 77
148 77
142 69
127 64
109 67
96 63
85 61
69 55
Production Destination cities Overall capacity Available seat kilometres Aircraft departures
number ATKM million ASKM million number
142 46,820 271,133 176,039
133 40,934 236,645 159,892
123 35,467 200,687 142,129
112 32,057 182,757 133,772
102 28,526 161,756 123,055
99 24,397 134,180 109,477
99 22,078 118,290 101,709
89 19,414 102,337 92,158
83 15,803 82,009 79,937
76 13,292 68,930 72,057
Traffic Passengers carried Passenger seat kilometres Passenger seat factor Cargo carried Overall load carried Overall load factor
number '000 RPKM million % tonnes '000 RTKM million %
44,537 215,353 79.4 2,250 31,137 66.5
39,391 188,618 79.7 2,086 27,621 67.5
33,981 160,446 80.0 1,796 23,672 66.7
31,422 146,134 80.0 1,767 22,078 68.9
27,454 126,273 78.1 1,580 19,063 66.8
22,731 101,762 75.8 1,408 15,879 65.1
21,229 94,346 79.8 1,282 14,739 66.8
17,544 77,947 76.2 1,156 12,643 65.1
14,498 62,260 75.9 1,019 10,394 65.8
12,529 51,398 74.6 838 8,649 65.1
number AED '000
41,471 1,938
38,067 1,868
33,634 1,796
30,258 1,738
28,686 1,459
28,037 1,492
23,650 1,625
20,273 1,431
17,296 1,285
15,858 1,104
Consolidated statement of financial position
Total assets
AED m
16,561
24,572
15,587
13,973
10,511
7,168
10,360
9,123
9,199
7,328
AED m
101,604
94,803
77,086
65,090
55,547
47,449
46,512
37,958
31,394
23,719
AED m
25,471
23,032
21,466
20,813
17,475
15,571
16,843
13,170
10,919
8,112
AED m
25,176
22,762
21,224
20,606
17,274
15,412
16,687
13,040
10,788
7,962
Non-current liabilities
AED m
43,705
40,452
30,574
22,987
19,552
17,753
14,206
14,210
10,616
8,927
Current liabilities
AED m
32,428
31,319
25,046
21,290
18,520
14,125
15,463
10,578
9,859
6,680
AED m
12,649
12,814
8,107
11,004
8,328
5,016
7,335
5,765
4,106
4,009
- of which equity attributable to the Owner
Consolidated statement of cash flows Cash flow from operating activities
dnata Ten-Year Overview
2012-13
82,636
AED m
Total equity Additional Information
2013-14
- of which jet fuel
- of which bank deposits and cash Financial Information
AED m
Cash flow from investing activities
AED m
(4,257)
(15,061)
(10,566)
(5,092)
(577)
1,896
(8,869)
(4,749)
(5,049)
(2,638)
Cash flow from financing activities
AED m
(7,107)
1,240
(201)
(5,046)
(2,982)
(5,085)
(3,820)
(198)
867
(487)
Net change in cash and cash equivalents
AED m
1,285
(1,007)
(2,660)
866
4,769
1,827
(5,354)
818
(76)
885
Other financial data Net change in cash and cash equivalents and short term bank deposits EBITDAR
AED m
(8,011)
8,985
1,614
3,462
3,343
(3,192)
1,237
(76)
1,871
873
AED m
17,229
13,891
10,735
13,437
10,638
8,286
9,730
7,600
5,970
5,331
Borrowings and lease liabilities
AED m
42,431
40,525
30,880
23,230
19,605
16,512
13,717
13,338
11,247
8,142
Less: Cash assets
AED m
16,561
24,572
15,587
13,973
10,511
7,368
12,715
11,594
9,828
7,645
Net debt
AED m
25,870
15,953
15,293
9,257
9,094
9,144
1,002
1,744
1,419
497
Capital expenditure
AED m
21,142
13,378
13,644
12,238
8,053
10,178
9,058
5,388
4,528
3,115
Notes Notes :: 1. The ten-year overview has have been drawn upup in compliance with IFRS. New Standards andand amendments to existing IFRSIFRS havehave beenbeen adopted 1.The ten-year has been been extracted extractedfrom fromthe theaudited auditedfinancial financialstatements statementswhich which have been drawn in compliance with IFRS. New Standards amendments to existing on the effective applicable to Emirates. adopted on thedates effective dates applicable to Emirates. 2. Comparative i.e.i.e. only the immediately preceding year’s figures areare restated andand figures beyond that that yearyear havehave not been amended. 2.Comparative figures are are restated, restated,where whereapplicable, applicable,according accordingtotoIFRS IFRSrules rules only the immediately preceding year's figures restated figures beyond not been amended.
Airline Operating Statistics Performance Indicators Yield Unit cost Unit cost excluding jet fuel Breakeven load factor Fleet Aircraft Average fleet age
Employee Average employee strength Revenue per employee
Notes : 1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. New Standards and amendments to existing IFRS have been adopted on the effective dates applicable to Emirates. 2. Comparative figures are restated, where applicable, according to IFRS rules i.e. only the immediately preceding year’s figures are restated and figures beyond that year have not been amended.
147
Ten-year overview Consolidated income statement Revenue and other operating income Operating costs
Overview
Emirates
dnata
Group
Emirates Ten-Year Overview
Group Companies of Emirates
Group Companies of dnata
Glossary
146
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
73,113
62,287
54,231
43,455
43,266
38,810
29,173
22,658
17,909 15,290
Key ratios
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
Operating margin Profit margin Return on shareholder's funds EBITDAR margin
% % % %
5.2 3.9 13.6 20.8
3.9 3.1 10.4 19.0
2.9 2.4 7.2 17.2
10.0 9.9 28.4 24.8
8.2 8.1 21.6 24.5
5.3 1.6 4.4 19.2
11.5 12.9 33.8 25.1
11.4 10.6 26.0 26.1
11.7 10.9 26.4 26.3
14.6 13.4 37.4 29.8
AED m
78,376
70,274
60,474
48,788
39,890
40,988
34,359
25,834
20,006
30,685
27,855
24,292
16,820
11,908
14,443
11,005
7,525
5,445
3,279
- of which employee costs
AED m
10,230
9,029
7,936
7,615
6,345
5,861
5,475
4,024
3,187
2,701
Cash assets to revenue and other operating income
%
20.0
33.6
25.0
25.8
24.2
17.0
32.8
39.7
43.4
42.7
Operating profit
AED m
4,260
2,839
1,813
5,443
3,565
2,278
4,451
3,339
2,652
2,619
Profit attributable to the Owner
AED m
3,254
2,283
1,502
5,375
3,538
686
5,020
3,096
2,475
2,407
Net debt equity ratio Net debt (including aircraft operating leases) equity ratio Net debt (including aircraft operating leases) to EBITDAR Effective interest rate on borrowings and lease liabilities Fixed to float debt mix
% % % %
101.6 209.9 310.3 3.2 94:6
69.3 186.4 309.1 3.1 90:10
71.2 162.1 324.1 3.0 89:11
44.5 127.6 197.6 2.7 89:11
52.0 158.5 260.3 2.5 83:17
58.7 167.0 313.9 3.5 61:39
5.9 98.1 169.9 5.2 68:32
13.2 116.1 201.2 5.7 63:37
13.0 111.9 204.6 4.5 63:37
6.1 116.6 177.4 3.5 67:33
Non-current assets
AED m
74,250
59,856
51,896
43,223
36,870
31,919
27,722
22,530
17,018
12,219
Current assets
AED m
27,354
34,947
25,190
21,867
18,677
15,530
18,790
15,428
14,376
11,499
Fils per RTKM Fils per ATKM Fils per ATKM %
250 162 97 64.9
249 167 99 66.9
251 166 97 65.9
232 147 95 63.6
211 136 94 64.4
254 163 104 64.1
236 151 101 64.1
216 129 90 59.9
203 122 88 60.2
192 111 86 58.0
number months
217 74
197 72
169 77
148 77
142 69
127 64
109 67
96 63
85 61
69 55
Production Destination cities Overall capacity Available seat kilometres Aircraft departures
number ATKM million ASKM million number
142 46,820 271,133 176,039
133 40,934 236,645 159,892
123 35,467 200,687 142,129
112 32,057 182,757 133,772
102 28,526 161,756 123,055
99 24,397 134,180 109,477
99 22,078 118,290 101,709
89 19,414 102,337 92,158
83 15,803 82,009 79,937
76 13,292 68,930 72,057
Traffic Passengers carried Passenger seat kilometres Passenger seat factor Cargo carried Overall load carried Overall load factor
number '000 RPKM million % tonnes '000 RTKM million %
44,537 215,353 79.4 2,250 31,137 66.5
39,391 188,618 79.7 2,086 27,621 67.5
33,981 160,446 80.0 1,796 23,672 66.7
31,422 146,134 80.0 1,767 22,078 68.9
27,454 126,273 78.1 1,580 19,063 66.8
22,731 101,762 75.8 1,408 15,879 65.1
21,229 94,346 79.8 1,282 14,739 66.8
17,544 77,947 76.2 1,156 12,643 65.1
14,498 62,260 75.9 1,019 10,394 65.8
12,529 51,398 74.6 838 8,649 65.1
number AED '000
41,471 1,938
38,067 1,868
33,634 1,796
30,258 1,738
28,686 1,459
28,037 1,492
23,650 1,625
20,273 1,431
17,296 1,285
15,858 1,104
Consolidated statement of financial position
Total assets
AED m
16,561
24,572
15,587
13,973
10,511
7,168
10,360
9,123
9,199
7,328
AED m
101,604
94,803
77,086
65,090
55,547
47,449
46,512
37,958
31,394
23,719
AED m
25,471
23,032
21,466
20,813
17,475
15,571
16,843
13,170
10,919
8,112
AED m
25,176
22,762
21,224
20,606
17,274
15,412
16,687
13,040
10,788
7,962
Non-current liabilities
AED m
43,705
40,452
30,574
22,987
19,552
17,753
14,206
14,210
10,616
8,927
Current liabilities
AED m
32,428
31,319
25,046
21,290
18,520
14,125
15,463
10,578
9,859
6,680
AED m
12,649
12,814
8,107
11,004
8,328
5,016
7,335
5,765
4,106
4,009
- of which equity attributable to the Owner
Consolidated statement of cash flows Cash flow from operating activities
dnata Ten-Year Overview
2012-13
82,636
AED m
Total equity Additional Information
2013-14
- of which jet fuel
- of which bank deposits and cash Financial Information
AED m
Cash flow from investing activities
AED m
(4,257)
(15,061)
(10,566)
(5,092)
(577)
1,896
(8,869)
(4,749)
(5,049)
(2,638)
Cash flow from financing activities
AED m
(7,107)
1,240
(201)
(5,046)
(2,982)
(5,085)
(3,820)
(198)
867
(487)
Net change in cash and cash equivalents
AED m
1,285
(1,007)
(2,660)
866
4,769
1,827
(5,354)
818
(76)
885
Other financial data Net change in cash and cash equivalents and short term bank deposits EBITDAR
AED m
(8,011)
8,985
1,614
3,462
3,343
(3,192)
1,237
(76)
1,871
873
AED m
17,229
13,891
10,735
13,437
10,638
8,286
9,730
7,600
5,970
5,331
Borrowings and lease liabilities
AED m
42,431
40,525
30,880
23,230
19,605
16,512
13,717
13,338
11,247
8,142
Less: Cash assets
AED m
16,561
24,572
15,587
13,973
10,511
7,368
12,715
11,594
9,828
7,645
Net debt
AED m
25,870
15,953
15,293
9,257
9,094
9,144
1,002
1,744
1,419
497
Capital expenditure
AED m
21,142
13,378
13,644
12,238
8,053
10,178
9,058
5,388
4,528
3,115
Notes Notes :: 1. The ten-year overview has have been drawn upup in compliance with IFRS. New Standards andand amendments to existing IFRSIFRS havehave beenbeen adopted 1.The ten-year has been been extracted extractedfrom fromthe theaudited auditedfinancial financialstatements statementswhich which have been drawn in compliance with IFRS. New Standards amendments to existing on the effective applicable to Emirates. adopted on thedates effective dates applicable to Emirates. 2. Comparative i.e.i.e. only the immediately preceding year’s figures areare restated andand figures beyond that that yearyear havehave not been amended. 2.Comparative figures are are restated, restated,where whereapplicable, applicable,according accordingtotoIFRS IFRSrules rules only the immediately preceding year's figures restated figures beyond not been amended.
Airline Operating Statistics Performance Indicators Yield Unit cost Unit cost excluding jet fuel Breakeven load factor Fleet Aircraft Average fleet age
Employee Average employee strength Revenue per employee
Notes : 1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. New Standards and amendments to existing IFRS have been adopted on the effective dates applicable to Emirates. 2. Comparative figures are restated, where applicable, according to IFRS rules i.e. only the immediately preceding year’s figures are restated and figures beyond that year have not been amended.
147
Ten-year overview Consolidated income statement
Overview
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
Revenue and other operating income
AED m
7,565
6,622
5,755
4,406
3,160
3,181
2,585
1,996
1,734
1,390
Operating costs
AED m
6,702
5,807
4,971
3,906
2,601
2,714
2,340
1,700
1,444
1,149
- of which employee costs
AED m
3,251
2,771
2,488
2,032
1,387
1,347
1,227
993
863
700
- of which cost of sales
AED m
747
601
451
241
35
40
30
33
32
13
AED m
883
798
699
582
442
391
234
75
n/a
n/a
- of which airport operations & cargo - other direct costs
Emirates
dnata
2013-14
2012-13
2011-12
Operating profit
AED m
863
815
784
500
559
467
245
296
290
241
Profit attributable to the Owner
AED m
829
819
808
576
613
507
305
360
324
260
Non-current assets Current assets - of which bank deposits and cash
Financial Information
Total assets Total equity
Additional Information
Emirates Ten-Year Overview
dnata Ten-Year Overview
Group Companies of Emirates
Glossary
148
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
%
11.4
12.3
13.6
11.3
17.7
14.7
9.5
14.8
16.7
17.3
Profit margin
%
11.0
12.4
14.0
13.1
19.4
15.9
11.8
18.0
18.7
18.7
Return on shareholder's funds
%
19.1
21.4
23.7
18.0
21.3
21.4
15.2
22.0
25.2
26.1
2013-14
2012-13
Employee Average employee strength
number
22,980
20,229
18,356
17,971
13,298
12,434
11,640
9,832
9,860
9,607
AED '000
356
327
322
323
266
256
241
210
176
155
Performance Indicators Airport
AED m
4,364
3,594
3,759
3,072
1,934
1,984
1,950
1,107
863
935
AED m
4,303
3,977
3,360
3,328
2,704
1,963
1,992
1,846
1,580
1,141
AED m
2,434
2,396
1,999
2,083
1,982
1,350
1,383
1,403
1,099
843
AED m
8,667
7,571
7,119
6,400
4,638
3,947
3,942
2,953
2,442
2,076
Aircraft handled* Cargo handled*
number
288,335
264,950
253,434
232,585
192,120
177,495
119,510
109,648
101,607
93,004
tonnes '000
1,604
1,570
1,543
1,494
1,121
1,003
633
535
503
458
hours
135
132
132
122
115
124 21
20
18
17
270
286
289
283
277
241 611
564
552
512
Man hours per turn Aircraft handled per employee*
number
Cargo handled per man hour
AED m
4,756
4,097
3,683
3,282
3,194
2,553
2,180
1,823
1,453
1,126
AED m
4,674
4,028
3,614
3,209
3,194
2,553
2,180
1,823
1,453
1,126
Non-current liabilities
AED m
1,386
1,351
1,275
1,115
672
697
845
460
464
480
Catering
Current liabilities
AED m
2,525
2,123
2,161
2,003
772
697
917
670
526
470
Meals uplifted
- of which equity attributable to the Owner
kgs
Cargo handled per employee*
kgs '000 number '000
41,275
28,584
26,708
11,743
AED m
5,892
5,357
2,630
1,610
Travel services
Consolidated statement of cash flows Cash flow from operating activities
AED m
Cash flow from investing activities Cash flow from financing activities Net cash flow for the year
1,125
1,162
1,167
901
764
481
540
531
423
370
AED m
316
(1,910)
(431)
(1,333)
391
(71)
(1,420)
(373)
(129)
(638)
AED m
(443)
(343)
(718)
(96)
(73)
(68)
224
(46)
(40)
281
AED m
998
(1,091)
18
(528)
1,082
342
(656)
113
254
12
AED m
2,434
2,396
1,999
2,083
1,982
1,350
1,383
1,403
1,228
972
Net sales
1,559
* Figures for 2007-08 and prior years exclude subsidiaries.
Other financial data Cash assets
Group Companies of dnata
2011-12
Operating margin
Revenue per employee*
Consolidated statement of financial position Group
Key ratios
Notes : 1.The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. New Standards and amendments to existing IFRS have been adopted on the effective dates applicable to dnata. 2.Comparative figures are restated, where applicable, according to IFRS rules i.e. only the immediately preceding year's figures are restated and figures beyond that year have not been amended 3.Effective 2006-07 "airport operations and cargo - other direct costs" are reported as a separate line item within operating costs. Prior to that year, such costs are reflected as not available or "n/a" and they were reported under the corporate overheads line.
Notes: 1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. New Standards and amendments to existing IFRS have been adopted on the effective dates applicable to dnata. 2. Comparative figures are restated, where applicable, according to IFRS rules i.e. only the immediately preceding year’s figures are restated and figures beyond that year have not been amended. 3. Effective 2006-07 “airport operations and cargo - other direct costs” are reported as a separate line item within operating costs. Prior to that year, such costs are reflected as not available or “n/a” and they were reported under the corporate overheads line.
* Figures for 2007-08 and prior years exclude subsidiaries.
149
Ten-year overview Consolidated income statement
Overview
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
Revenue and other operating income
AED m
7,565
6,622
5,755
4,406
3,160
3,181
2,585
1,996
1,734
1,390
Operating costs
AED m
6,702
5,807
4,971
3,906
2,601
2,714
2,340
1,700
1,444
1,149
- of which employee costs
AED m
3,251
2,771
2,488
2,032
1,387
1,347
1,227
993
863
700
- of which cost of sales
AED m
747
601
451
241
35
40
30
33
32
13
AED m
883
798
699
582
442
391
234
75
n/a
n/a
- of which airport operations & cargo - other direct costs
Emirates
dnata
2013-14
2012-13
2011-12
Operating profit
AED m
863
815
784
500
559
467
245
296
290
241
Profit attributable to the Owner
AED m
829
819
808
576
613
507
305
360
324
260
Non-current assets Current assets - of which bank deposits and cash
Financial Information
Total assets Total equity
Additional Information
Emirates Ten-Year Overview
dnata Ten-Year Overview
Group Companies of Emirates
Glossary
148
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
%
11.4
12.3
13.6
11.3
17.7
14.7
9.5
14.8
16.7
17.3
Profit margin
%
11.0
12.4
14.0
13.1
19.4
15.9
11.8
18.0
18.7
18.7
Return on shareholder's funds
%
19.1
21.4
23.7
18.0
21.3
21.4
15.2
22.0
25.2
26.1
2013-14
2012-13
Employee Average employee strength
number
22,980
20,229
18,356
17,971
13,298
12,434
11,640
9,832
9,860
9,607
AED '000
356
327
322
323
266
256
241
210
176
155
Performance Indicators Airport
AED m
4,364
3,594
3,759
3,072
1,934
1,984
1,950
1,107
863
935
AED m
4,303
3,977
3,360
3,328
2,704
1,963
1,992
1,846
1,580
1,141
AED m
2,434
2,396
1,999
2,083
1,982
1,350
1,383
1,403
1,099
843
AED m
8,667
7,571
7,119
6,400
4,638
3,947
3,942
2,953
2,442
2,076
Aircraft handled* Cargo handled*
number
288,335
264,950
253,434
232,585
192,120
177,495
119,510
109,648
101,607
93,004
tonnes '000
1,604
1,570
1,543
1,494
1,121
1,003
633
535
503
458
hours
135
132
132
122
115
124 21
20
18
17
270
286
289
283
277
241 611
564
552
512
Man hours per turn Aircraft handled per employee*
number
Cargo handled per man hour
AED m
4,756
4,097
3,683
3,282
3,194
2,553
2,180
1,823
1,453
1,126
AED m
4,674
4,028
3,614
3,209
3,194
2,553
2,180
1,823
1,453
1,126
Non-current liabilities
AED m
1,386
1,351
1,275
1,115
672
697
845
460
464
480
Catering
Current liabilities
AED m
2,525
2,123
2,161
2,003
772
697
917
670
526
470
Meals uplifted
- of which equity attributable to the Owner
kgs
Cargo handled per employee*
kgs '000 number '000
41,275
28,584
26,708
11,743
AED m
5,892
5,357
2,630
1,610
Travel services
Consolidated statement of cash flows Cash flow from operating activities
AED m
Cash flow from investing activities Cash flow from financing activities Net cash flow for the year
1,125
1,162
1,167
901
764
481
540
531
423
370
AED m
316
(1,910)
(431)
(1,333)
391
(71)
(1,420)
(373)
(129)
(638)
AED m
(443)
(343)
(718)
(96)
(73)
(68)
224
(46)
(40)
281
AED m
998
(1,091)
18
(528)
1,082
342
(656)
113
254
12
AED m
2,434
2,396
1,999
2,083
1,982
1,350
1,383
1,403
1,228
972
Net sales
1,559
* Figures for 2007-08 and prior years exclude subsidiaries.
Other financial data Cash assets
Group Companies of dnata
2011-12
Operating margin
Revenue per employee*
Consolidated statement of financial position Group
Key ratios
Notes : 1.The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. New Standards and amendments to existing IFRS have been adopted on the effective dates applicable to dnata. 2.Comparative figures are restated, where applicable, according to IFRS rules i.e. only the immediately preceding year's figures are restated and figures beyond that year have not been amended 3.Effective 2006-07 "airport operations and cargo - other direct costs" are reported as a separate line item within operating costs. Prior to that year, such costs are reflected as not available or "n/a" and they were reported under the corporate overheads line.
Notes: 1. The ten-year overview has been extracted from the audited financial statements which have been drawn up in compliance with IFRS. New Standards and amendments to existing IFRS have been adopted on the effective dates applicable to dnata. 2. Comparative figures are restated, where applicable, according to IFRS rules i.e. only the immediately preceding year’s figures are restated and figures beyond that year have not been amended. 3. Effective 2006-07 “airport operations and cargo - other direct costs” are reported as a separate line item within operating costs. Prior to that year, such costs are reflected as not available or “n/a” and they were reported under the corporate overheads line.
* Figures for 2007-08 and prior years exclude subsidiaries.
149
Group companies of Emirates Air transportation and related services
Emirates 100% The High Street LLC (UAE)
In-flight and institutional catering services
Emirates 90% Emirates Flight Catering Co. LLC (UAE)
50% Emirates – CAE Flight Training LLC (UAE) Overview
Emirates
50% CAE Flight Training (India) Pvt Ltd 50% CAE Middle East Holdings Ltd (UAE)
dnata
Group
Financial Information
Group companies of dnata Consumer goods
Emirates 100% Maritime and Mercantile International Holding LLC (UAE) 100% Maritime and Mercantile International Maldives Pvt Ltd 68.7% Maritime and Mercantile International LLC (UAE) 100% Duty Free Dubai Ports FZE (UAE)
Group Companies of Emirates
100% Emirates Hotels (Australia) Pty Ltd 100% Emirates Hotels (Seychelles) Ltd 100% Emirates Leisure Retail (Holding) LLC (UAE)
100% Harts International LLC (UAE)
100% Emirates Leisure Retail (Singapore) Pte Ltd
100% Maritime and Mercantile International FZE (UAE)
70% Emirates Leisure Retail (Oman) LLC
50% Oman United Agencies LLC
68.7% Emirates Leisure Retail LLC (UAE)
50% MMI Tanzania Pvt Ltd
dnata Ten-Year Overview
100% Emirates Hotel LLC (UAE)
100% Emirates Leisure Retail (Australia) Pty Ltd
49% Fujairah Maritime and Mercantile International LLC (UAE)
Emirates Ten-Year Overview
Emirates
100% Harts International Retailers (M.E.) FZE (UAE)
50% Sirocco FZCO (UAE)
Additional Information
Hotel operations and food and beverage operations
100% Community Club Management FZE (UAE) 51% Premier Inn Hotels LLC (UAE)
Cargo and ground handling
dnata
dnata / dnata World Travel
100% Dnata International Airport Services Pte Ltd (Singapore) 100% CIAS International Pte Ltd (Singapore) 100% dnata Singapore Pte Ltd (Singapore)* 20% Guangzhou Baiyun International Airport Ground Handling Services Co., Ltd (P. R. China) 100% Dnata Aviation Services GmbH (Austria) 100% Dnata GmbH (Austria) 100% Dnata Switzerland AG 30% GVAssistance SA (Switzerland) 100% dnata Inc. (Philippines) 100% Dnata Aviation Services Limited (UK) 100% dnata Limited (UK)
50% Focus Brands Ltd (BVI)
100% dnata Ground Limited (UK)
49% Independent Wine and Spirit (Thailand) Co. Ltd
100% dnata Cargo Limited (UK)
40% Zanzibar Maritime and Mercantile International Co. Ltd
100% Airline Cleaning Services Pty Ltd (Australia) 100% Marhaba Bahrain SPC
Group Companies of dnata
80% Dnata Airport Services Kurdistan Ltd (Cayman Islands)
Glossary
Travel services
100% Dnata for Airport Services Ltd (Iraq)
100% Maritime and Mercantile International Travel LLC (UAE) 50% Oman United Agencies Travel LLC 100% dnata Travel (UK) Limited 100% dnata Travel Holdings Limited (UK) 100% Gold Medal International Limited (UK) 100% Gold Medal Travel Group plc (UK) 100% Airline Network plc (UK)
Catering
dnata 100% Dnata Catering Services Limited (UK) 100% Alpha Flight Group Ltd (UK) 100% Alpha Flight US Inc 100% Alpha In-Flight US LLC 100% Alpha Flight Ireland Ltd 100% Alpha Flight Services Pty Ltd (Australia) 100% Alpha ATS Pty Ltd (Australia)
100% dnata International Pvt Ltd (India)
100% Alpha Flight a.s. (Czech Republic)
100% dnata World Travel Limited (UK)
100% Alpha Flight UK Ltd
100% Travel Technology Investments Ltd (UK) 100% Travel Republic Holdings Ltd (UK) 100% Travel Republic Limited (UK) 100% dnata Travel Company WLL (Bahrain) 100% Najm Travel LLC (UAE)
100% Alpha-Airfayre Ltd (UK) 100% Alpha Flight Italia srl (Italy) 100% Air Chef srl (Italy) 80% Servizi di Bordo srl (Italy) 36% SEA Services srl (Italy)
70% dnata Travel Limited (Saudi Arabia)
64.2% Alpha Rocas SA (Romania)
50% Al Tawfeeq Travel (Dnata Travels) LLC (Qatar)
50% Alpha LSG Ltd (UK)
50% Travel Counsellors LLC (UAE) 50% Dunya Travel LLC (UAE)
49% Alpha Flight Services UAE LLC 35.8% Jordan Flight Catering Co. Ltd
80% En Route International Limited (UK) 100% En Route International USA, Inc. 100% En Route International South Africa (Pty) Ltd 100% En Route International Limited (Hong Kong) 100% En Route Australia Pty Ltd 100% En Route International General Trading LLC (UAE) 33.3% dnata Newrest (Pty) Ltd (South Africa)**
Freight forwarding services
dnata 50% Dubai Express LLC (UAE) 50% PAL PAN Airport Logistics LLC (UAE) 50% Freightworks Logistics LLC (UAE) 25.5% SDV UAE LLC
Others
dnata 100% Mercator Asia Co., Ltd (Thailand) 50% Transecure LLC (UAE)
50% Gerry’s Dnata (Private) Ltd (Pakistan)
50% Najm Travels LLC (Afghanistan)
50% India Premier Services Pvt Ltd (India)
49% Mindpearl Group Ltd (Cayman Islands)
50% Toll Dnata Airport Services Pty Ltd (Australia)
22% Hogg Robinson Group plc (UK)
50% Transguard Group LLC (UAE)
150
Note: Percentages indicate beneficial interest in the company. Legal share holding may be different. Group companies of associates and joint ventures have been excluded.
* Also provides catering services. ** Held through Mountainfield Investments (Pty) Ltd. Note: Percentages indicate beneficial interest in the company. Legal share holding may be different. Group companies of associates and joint ventures have been excluded.
151
Group companies of Emirates Air transportation and related services
Emirates 100% The High Street LLC (UAE)
In-flight and institutional catering services
Emirates 90% Emirates Flight Catering Co. LLC (UAE)
50% Emirates – CAE Flight Training LLC (UAE) Overview
Emirates
50% CAE Flight Training (India) Pvt Ltd 50% CAE Middle East Holdings Ltd (UAE)
dnata
Group
Financial Information
Group companies of dnata Consumer goods
Emirates 100% Maritime and Mercantile International Holding LLC (UAE) 100% Maritime and Mercantile International Maldives Pvt Ltd 68.7% Maritime and Mercantile International LLC (UAE) 100% Duty Free Dubai Ports FZE (UAE)
Group Companies of Emirates
100% Emirates Hotels (Australia) Pty Ltd 100% Emirates Hotels (Seychelles) Ltd 100% Emirates Leisure Retail (Holding) LLC (UAE)
100% Harts International LLC (UAE)
100% Emirates Leisure Retail (Singapore) Pte Ltd
100% Maritime and Mercantile International FZE (UAE)
70% Emirates Leisure Retail (Oman) LLC
50% Oman United Agencies LLC
68.7% Emirates Leisure Retail LLC (UAE)
50% MMI Tanzania Pvt Ltd
dnata Ten-Year Overview
100% Emirates Hotel LLC (UAE)
100% Emirates Leisure Retail (Australia) Pty Ltd
49% Fujairah Maritime and Mercantile International LLC (UAE)
Emirates Ten-Year Overview
Emirates
100% Harts International Retailers (M.E.) FZE (UAE)
50% Sirocco FZCO (UAE)
Additional Information
Hotel operations and food and beverage operations
100% Community Club Management FZE (UAE) 51% Premier Inn Hotels LLC (UAE)
Cargo and ground handling
dnata
dnata / dnata World Travel
100% Dnata International Airport Services Pte Ltd (Singapore) 100% CIAS International Pte Ltd (Singapore) 100% dnata Singapore Pte Ltd (Singapore)* 20% Guangzhou Baiyun International Airport Ground Handling Services Co., Ltd (P. R. China) 100% Dnata Aviation Services GmbH (Austria) 100% Dnata GmbH (Austria) 100% Dnata Switzerland AG 30% GVAssistance SA (Switzerland) 100% dnata Inc. (Philippines) 100% Dnata Aviation Services Limited (UK) 100% dnata Limited (UK)
50% Focus Brands Ltd (BVI)
100% dnata Ground Limited (UK)
49% Independent Wine and Spirit (Thailand) Co. Ltd
100% dnata Cargo Limited (UK)
40% Zanzibar Maritime and Mercantile International Co. Ltd
100% Airline Cleaning Services Pty Ltd (Australia) 100% Marhaba Bahrain SPC
Group Companies of dnata
80% Dnata Airport Services Kurdistan Ltd (Cayman Islands)
Glossary
Travel services
100% Dnata for Airport Services Ltd (Iraq)
100% Maritime and Mercantile International Travel LLC (UAE) 50% Oman United Agencies Travel LLC 100% dnata Travel (UK) Limited 100% dnata Travel Holdings Limited (UK) 100% Gold Medal International Limited (UK) 100% Gold Medal Travel Group plc (UK) 100% Airline Network plc (UK)
Catering
dnata 100% Dnata Catering Services Limited (UK) 100% Alpha Flight Group Ltd (UK) 100% Alpha Flight US Inc 100% Alpha In-Flight US LLC 100% Alpha Flight Ireland Ltd 100% Alpha Flight Services Pty Ltd (Australia) 100% Alpha ATS Pty Ltd (Australia)
100% dnata International Pvt Ltd (India)
100% Alpha Flight a.s. (Czech Republic)
100% dnata World Travel Limited (UK)
100% Alpha Flight UK Ltd
100% Travel Technology Investments Ltd (UK) 100% Travel Republic Holdings Ltd (UK) 100% Travel Republic Limited (UK) 100% dnata Travel Company WLL (Bahrain) 100% Najm Travel LLC (UAE)
100% Alpha-Airfayre Ltd (UK) 100% Alpha Flight Italia srl (Italy) 100% Air Chef srl (Italy) 80% Servizi di Bordo srl (Italy) 36% SEA Services srl (Italy)
70% dnata Travel Limited (Saudi Arabia)
64.2% Alpha Rocas SA (Romania)
50% Al Tawfeeq Travel (Dnata Travels) LLC (Qatar)
50% Alpha LSG Ltd (UK)
50% Travel Counsellors LLC (UAE) 50% Dunya Travel LLC (UAE)
49% Alpha Flight Services UAE LLC 35.8% Jordan Flight Catering Co. Ltd
80% En Route International Limited (UK) 100% En Route International USA, Inc. 100% En Route International South Africa (Pty) Ltd 100% En Route International Limited (Hong Kong) 100% En Route Australia Pty Ltd 100% En Route International General Trading LLC (UAE) 33.3% dnata Newrest (Pty) Ltd (South Africa)**
Freight forwarding services
dnata 50% Dubai Express LLC (UAE) 50% PAL PAN Airport Logistics LLC (UAE) 50% Freightworks Logistics LLC (UAE) 25.5% SDV UAE LLC
Others
dnata 100% Mercator Asia Co., Ltd (Thailand) 50% Transecure LLC (UAE)
50% Gerry’s Dnata (Private) Ltd (Pakistan)
50% Najm Travels LLC (Afghanistan)
50% India Premier Services Pvt Ltd (India)
49% Mindpearl Group Ltd (Cayman Islands)
50% Toll Dnata Airport Services Pty Ltd (Australia)
22% Hogg Robinson Group plc (UK)
50% Transguard Group LLC (UAE)
150
Note: Percentages indicate beneficial interest in the company. Legal share holding may be different. Group companies of associates and joint ventures have been excluded.
* Also provides catering services. ** Held through Mountainfield Investments (Pty) Ltd. Note: Percentages indicate beneficial interest in the company. Legal share holding may be different. Group companies of associates and joint ventures have been excluded.
151
Overview
Emirates
A
D
N
R
ASKM (Available Seat Kilometre) – Passenger seat capacity measured in seats available multiplied by the distance flown.
Dividend payout ratio – Dividend accruing to the Owner divided by profit attributable to the Owner.
Net debt – Borrowings and lease liabilities (current and non-current) net of cash assets.
Return on shareholder’s funds – Profit attributable to the Owner expressed as a percentage of shareholder’s funds.
ATKM (Available Tonne Kilometre) – Overall capacity measured in tonnes available for carriage of passengers and cargo load multiplied by the distance flown.
dnata
B Group
Financial Information
Breakeven load factor – The load factor at which revenue will equal operating costs.
C Capacity – see ATKM
Additional Information
Emirates Ten-Year Overview
dnata Ten-Year Overview
Group Companies of Emirates
Group Companies of dnata
Glossary
152
Capital expenditure – The sum of additions to property, plant and equipment and intangible assets excluding goodwill. Capitalised value of aircraft operating lease costs – 60% of future minimum lease payments for aircraft on operating lease. Cash assets – The sum of short term bank deposits, cash and cash equivalents and other cash investments classified into other categories of financial assets (e.g. held-to-maturity investments).
E EBITDAR – Operating profit before depreciation, amortisation and aircraft operating lease rentals. EBITDAR margin – EBITDAR expressed as a percentage of the sum of revenue and other operating income. Equity ratio – Total equity divided by total assets.
F Fixed to float debt mix – Ratio of fixed rate debt to floating rate debt. The ratio is based on net debt including aircraft operating leases. Free cash flow – Cash generated from operating activities less cash used in investing actvities adjusted for the movement in short term bank deposits.
Net debt equity ratio – Net debt in relation to total equity. Net debt including aircraft operating leases - The sum of net debt and the capitalised value of aircraft operating lease costs.
O Operating cash margin – Cash generated from operating activities expressed as a percentage of the sum of revenue and other operating income. Operating margin – Operating profit expressed as a percentage of the sum of revenue and other operating income. Overall load factor – RTKM divided by ATKM.
P
Freight yield (Fils per FTKM) – Cargo revenue divided by FTKM.
Passenger seat factor – RPKM divided by ASKM.
FTKM - Cargo tonnage uplifted multiplied by the distance carried.
Passenger yield (Fils per RPKM) – Passenger revenue divided by RPKM.
M
Profit margin – Profit attributable to the Owner expressed as a percentage of sum of revenue and other operating income.
Man hours per turn – Manhours to handle an aircraft arrival and departure.
RPKM (Revenue Passenger Kilometre) – Number of passengers carried multiplied by the distance flown. RTKM (Revenue Tonne Kilometre) – Actual traffic load (passenger and cargo) carried measured in terms of tonnes multiplied by the distance flown.
S Shareholder’s funds – Average of opening and closing equity attributable to the Owner.
T Traffic – see RTKM Transport revenue – The sum of passenger, cargo and excess baggage revenue.
U Unit cost (Fils per ATKM) – Operating costs (airline only) incurred per ATKM.
Y Yield (Fils per RTKM) – Revenue (airline only) earned per RTKM.