The Emirates Group

Company Profile

Publication Date: 30 Oct 2009

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The Emirates Group

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The Emirates Group
TABLE OF CONTENTS

TABLE OF CONTENTS

Company Overview..............................................................................................4
Key Facts...............................................................................................................4
Business Description...........................................................................................5
History...................................................................................................................7
Key Employees.....................................................................................................9
Key Employee Biographies................................................................................10
Major Products and Services............................................................................11
Revenue Analysis...............................................................................................12
SWOT Analysis...................................................................................................13
Top Competitors.................................................................................................18
Company View.....................................................................................................19
Locations and Subsidiaries...............................................................................22

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The Emirates Group
Company Overview

COMPANY OVERVIEW

The Emirates Group is a conglomerate which operates through Emirates Airline, an international
airline, and Dnata, a travel organization operating in the Middle East. The group is wholly owned by
the United Arab Emirates (UAE) government. It provides scheduled passenger and cargo services
to more than 100 destinations. The company has operations across Middle East, Europe and
Americas, Far East and Australia, West Asia and Indian Ocean, and Africa. It is headquartered in
Dubai, the United Arab Emirates and employs 28,037 people.

The group recorded revenues of AED42,674.3 million ($11,621.5 million) during the financial year
ended March 2009 (FY2009), an increase of 17.1% over FY2008. The operating profit of the group
was AED2,573.3 million ($700.8 million) in FY2009, a decrease of 42.2% compared to FY2008. Its
net profit was AED981.7 million ($267.3 million) in FY2009, a decrease of 80.4% compared to
FY2008.

KEY FACTS

Head Office The Emirates Group

Near Clock Tower
Dubai
ARE
Phone 9714 708 1111
Fax 9714 286 4066
Web Address http://www.ekgroup.com
Revenue / turnover 42,674.3
(AED Mn)
Financial Year End March
Employees 28,037

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The Emirates Group
Business Description

BUSINESS DESCRIPTION

The Emirates Group, through its subsidiaries, provides commercial air transportation services in the
United Arab Emirates and internationally.The group operates through Emirates Airline, an international
airline; and Dnata, a travel organization operating in the Middle East.

The group operates through three business segments which include: airline related, consumer goods
and others.

The airline related business segment comprised of passenger and cargo transport services. Emirates
airlines is one of the major airlines in the Middle East mainly involved in the provision of commercial
air transportation services. It provides scheduled passenger and cargo services to more than 100
destinations in over 60 countries. It operates through the passenger fleet of 124 aircraft which
comprised of Boeing and Airbus models, including the Boeing B777 and the Airbus A330. Emirates
operates through code share agreements with Air India, Air Malta, Air Mauritius, Continental Airlines,
Japan Airlines, Jet Airways, Korean Airlines, Oman Air, Philippine Airlines, Royal Air Maroc, South
African Airways and Thai Airways.

Dnata is the UAE Government's wholly owned subsidiary. It is a travel management services company
which provides air travel services in the Middle East. It is mainly involved in providing aircraft handling
and engineering services, handling services for export and import cargo, information technology
services, representing airlines as their general sales agent, travel agency and other travel related
services, and in-flight and institutional catering. Dnata’s operations are comprised of Dnata Airport
Operations, Dnata Cargo, Dnata Agencies and other.

Dnata Airport's operations provide passenger baggage, cargo, ramp and technical support services
to airlines at Dubai International Airport. Dnata Cargo offers a range of services that includes cargo
management, marketing and handling. Dnata Agencies is engaged in meeting the current and future
travel demands of the public and the travel trade with retail and wholesale products distributed in
Dubai and, through partner travel agencies, in countries in the Middle East and West Asia.

Mercator is engaged in providing IT solutions to the global air travel industry. It provides business
technology solutions, delivering business transformation, process improvement and return on
investment to more than 150 customers in five continents.

The group has various other activities including resorts and a conference-organizing business in
Dubai. These include Emirates Holidays, Emirates Sky Cargo, Skywards, Arabian Adventures,
Emirates Hotels and Resorts, and Congress Solutions International. Emirates Holidays offers
specialized operations in package holidays. Emirates SkyCargo is an air freight division of the group
and it offers cargo solutions service. The express service assures on-time delivery around the world,
and the delivery of a wide range of goods.

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The Emirates Group
Business Description

Arabian Adventures is the official destination management company for important corporate travel
organizations and produces brochures in 10 languages. It provides services to tour operators,
incentive houses, meeting organizers, businesses and cruise lines. Emirates Hotels and Resorts is
one of the divisions of the Emirates Group which operates Al Maha Desert Resort and Spa set within
a 25-square kilometer desert conservation reserve.

Skyward is the frequent flyer program for regular Emirates customers and offers range of reward
benefits, including free travel and upgrades. The Congress Solutions International is a full fledged
Professional Congress Organisers (PCO) with wide range of service offerings. It is engaged in
managing different types of local, regional, and international events.

Emirates Engineering offers engineering and maintenance services to other airlines, as well as
tending to its own aircraft. In addition to Emirates and Dnata are also involved in hotels; in-flight
catering; laundry; upmarket gourmet and quick-service restaurants; airport ground handling; freight
and removal services; security; flight training and educational establishments; marine services and
IT software production.

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The Emirates Group
History

HISTORY

The group traces its history back to 1959, when the Dubai Government established Dnata to provide
ground-handling services at Dubai International Airport.

The Emirates Group was incorporated, with limited liability, by an Emiri Decree issued by H.H. Sheikh
Mohammed bin Rashid Al-Maktoum in 1985 as the national airline for the emirate of Dubai. In the
following year, the group acquired traffic rights into Amman, Colombo, Cairo and Dhaka.

Dnata Airport Operations began in 1993. Dnata Airport Services entered the South East Asian Airport
Service market through an equity investment in Wings Aviation Systems in 1999.

Emirates signed an online partnership agreement with the Intercontinental Hotels Group, to offer
online customers guaranteed internet hotel rates, in 2005. In the same year, Emirates Airline
Foundation signed a contract with Friendship, a registered non-governmental organization (NGO),
for the management of the new Emirates Friendship Hospital ship in Bangladesh.

In 2006, Emirates Airline selected Messier Services, member company of the SAFRAN group, to
provide landing gear exchange, overhaul and support services for its fleet of 37 A330-200 and
A340-300 aircraft. Further in the same year, Emirates SkyCargo launched SkyChain, a comprehensive
end-to-end IT cargo management system at the Air Cargo Forum. In addition, the company tied up
with lastminute.com, the UK's largest hotel intermediary which will provide customers access to over
100,000 three- to five-star hotels in 59 countries through the airline's website.

In 2007, Swiss WorldCargo has signed up for SkyChain, the end to end cargo reservation and
business management solution offered by Mercator, the airline IT solutions provider of the Emirates
Group. In the same year, Emirates Group entered into an agreement with GE Commercial Aviation
Service (GECAS) to lease five Boeing 777-300ER aircraft. Also in 2007, Emirates signed a contract
with CAE of Montreal for the purchase and installation of a CAE 7000 Series Boeing 777-300ER
full-flight simulator (FFS) to support the airline's flight training requirements for its fleet of Boeing
777-300ER aircraft.

Later in the same year, Emirates acquired 49% interest in Alpha Flight Services Australia, a provider
of in-flight catering services in Australia. Also in the same year, Dnata, through its wholly owned
subsidiary Dnata Gmbh, acquired 100% of the shares in Jet Aviation Handling, subsequently
rebranded as Dnata Switzerland.

The group signed a Memorandum of Understanding (MoU) with Dubai Customs to reduce paperwork
and expedite the movement of goods in the air cargo supply chain in January 2008. In the same
month, Emirates Airline partnered with London Heathrow, Dubai International and Hong Kong
International airports, to trial the latest RFID (radio-frequency identification) technology in baggage
handling.

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The Emirates Group
History

In May 2008, the group signed a MoU with Western Australian Police (WAPOL) for co-operation in
areas of investigative practices and to carry out research into security operations. In November
2008, Dnata acquired 90% of the shares in Al Hidaya Travel.

Emirates, through its wholly owned subsidiary Emirates Leisure Retail acquired 100% of the business
of Hudsons Coffee, a company engaged in retail sales of food and beverage products in Australia,
in March 2009. The group and Virgin Blue Group’s new international airline, V Australia entered into
a code share partnership on the trans-Tasman route, in September 2009.

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Key Employees

KEY EMPLOYEES

Name Job Title Board

Sheikh Ahmed bin Saeed Chairman and CEO Executive Board
Al-Maktoum
Maurice Flanagan Executive Vice Chairman Executive Board
Tim Clark President, Emirates Airline Senior Management
Gary Chapman President, Group Services and Dnata Senior Management
Adel Ahmad Al Redha Executive Vice President, Engineering and Senior Management
Operations
Abdulaziz Al Ali Executive Vice President, Human Resources Senior Management
Ismail Ali Albanna Executive Vice President, Dnata Senior Management
Nigel Hopkins Executive Vice President, Service Departments Senior Management
Ali Mubarak Al Soori Executive Vice President, Facilities/Projects Senior Management
Management

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The Emirates Group
Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Sheikh Ahmed bin Saeed Al-Maktoum

Board: Executive Board

Job Title: Chairman and CEO

Mr. Al-Maktoum serves as the Chairman and CEO at Emirates. He is the Member of the Board of
the Dubai Council for Economic Affairs; Vice Chairman of the Dubai World Trade Centre; and Board
Member of the Dubai Corporation for Government Investment. Mr. Al-Maktoum is also the Chairman
of Dubai Airport Free Zone Authority, Dubai Air Wing, Alliance Insurance, Le Meridien Dubai, Dubai
International Marine Club, Dubai Golf Club, British University in Dubai, Dubai Power & Energy
Committee and the UAE National Olympic Committee.

Gary Chapman

Board: Senior Management

Job Title: President, Group Services and Dnata

Mr. Chapman serves as the President, Group Services and Dnata at Emirates. He joined the group
in 1989. Mr. Chapman is the Chairman of Maritime and Mercantile International and Changi
International Airport Services, and is a member of the Board of Directors for Emirates Flight Catering,
Emirates CAE Flight Training and Premier Travel Inn Gulf.

Adel Ahmad Al Redha

Board: Senior Management

Job Title: Executive Vice President, Engineering and Operations

Mr. Al Redha serves as the Executive Vice President, Engineering and Operations at Emirates. Prior
to that, he was a Director of Engineering since 2002 and Head of Engineering since 2000. Mr. Al
Redha joined Emirates in 1988 after starting his career two years earlier as a trainee aircraft engineer.

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The Emirates Group
Major Products and Services

MAJOR PRODUCTS AND SERVICES

The Emirates Group is an air travel organization. The group provides the following key services:

Aircraft engineering
Aircraft maintenance
Holidays
Cargo services
Cargo management
Duty free
Ground services
Global logistics
IT solutions to airlines
Passenger flights
Technical support
Travel solutions
Visa services
Frequent flyer program
Event Management
Overland explorer program

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The Emirates Group
Revenue Analysis

REVENUE ANALYSIS

The Emirates Group recorded revenues of AED42,674.3 million ($11,621.5 million) during FY2009,
an increase of 17.1% over FY2008. In FY2009, Europe and Americas, the group's largest geographic
market, accounted for 36.5% of the total revenues.

The group generates revenues through three business segments: airline related (97.3% of the total
revenues in FY2009), consumer goods (1.7%) and others (1%).

Revenues by Segment

In FY2009, the airline related segment recorded revenues of AED42,520.5 million ($11,579.6 million),
an increase of 12.1% over FY2008.

The consumer goods segment recorded revenues of AED731.5 million ($199.2 million) in FY2009,
an increase of 31.7% over FY2008.

The others segment recorded revenues of AED442.9 million ($120.6 million) in FY2009, an increase
of 34.2% over FY2008.

Revenues by Geography

Europe and Americas accounted for 36.5% of the total revenues in FY2009. Revenues from Europe
and Americas reached AED15,932.8 million ($4,339 million) in FY2009, an increase of 17.4% over
FY2008.

Far East and Australia accounted for 28.1% of the total revenues in FY2009. Revenues from Far
East and Australia reached AED1,2281.4 million ($3,344.6 million) in FY2009, an increase of 11.6%
over FY2008.

Middle East accounted for 13.3% of the total revenues in FY2009. Revenues from Middle East
reached AED5,824.1 million ($1,586.1 million) in FY2009, a decrease of 7.7% over FY2008.

West Asia and Indian Ocean accounted for 11.3% of the total revenues in the FY2009. Revenues
from West Asia and Indian Ocean reached AED4,948.3 million ($1,347.6 million) in FY2009, an
increase of 24.8% over FY2008.

Africa accounted for 10.8% of the total revenues in FY2009. Revenues from Africa reached
AED4,708.2 million ($1,282.2 million) in FY2009, an increase of 18.8% over 2008.

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The Emirates Group
SWOT Analysis

SWOT ANALYSIS

The Emirates Group is a conglomerate operating through Emirates Airline, an international airline;
and Dnata, a travel organization operating in the Middle East. The group is wholly owned by the
United Arab Emirates (UAE) government.The group’s strong market position in major airline markets
gives it a significant edge over its peers/competitors. However, recession in global economy may
harm the group’s business by adversely affecting its revenues, results of operations, cash flows and
financial condition.

Strengths Weaknesses

Strong market position High debt burden

Diversified geographical spread Declining operating efficiency
High employee productivity

Opportunities Threats

Moderate growth in global air freight sector Global economic downturn

Growth in global passenger airline industry Increasing competition from low cost airlines
Growing Dubai tourism industry Consolidation in airline industry

Strengths

Strong market position

The Emirates Group is one of the largest airlines in the world. The group carried 22.7 million
passengers in FY2009 followed by Cathay Pacific (16.7 million). In addition, the group was the tenth
largest airline in terms of scheduled international freight ton-kilometers flown in FY2009. The group
carried 1.4 million tons of cargo during FY2009.

Further, the group is the largest airline in the Middle East in terms of revenue, fleet size, and
passengers carried. The airline operates over 2,350 passenger flights per week to 100 destinations
in 60 countries all over the world. It operates through its passenger fleet of 124 aircraft which
comprises of Boeing and Airbus models, including the Boeing B777 and the Airbus A330, as of
March 2009. The group’s online sales through emirates.com, which grew by 73% over FY2008,
accounted to AED4.42 billion ($1.2 billion) in FY2009. In addition, Emirates flights account for nearly
40% of all flight movements in and out of Dubai International Airport. The group’s strong market
position in major airline markets gives it a significant edge over its peers/competitors.

Diversified geographical spread

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The Emirates Group
SWOT Analysis

Emirates Airline has a global presence serving more than 100 destinations, and its subsidiary Dnata
provides ground handling services at 17 airports in seven countries. The group has operations across
Europe and Americas, Far East and Australia, the Middle East, West Asia and Indian Ocean, and
Africa. The revenues of the group are diversified across all the geographic regions it operates in.

In FY2009, Europe and Americas, the largest geographic segment of the group, accounted for 36.5%
of the total revenues. This was followed by Far East and Australia (28.1% of the total revenues), the
Middle East (13.3%), West Asia and Indian Ocean (11.3%) while Africa region accounted for the
remaining 10.6% of overall revenues. The diversified presence and evenly spread revenue base
ensures that the group does not rely on any one market for a majority of its revenues, and this in
turn, substantially reduces its business risk in a highly volatile aviation industry.

High employee productivity

The group posted strong revenues in proportion to the total number of employees. In FY2009, the
group recorded revenues of AED42,674 million ($11,621.5 million), with a total number of 28,037
employees. The group’s revenue per employee stood at $414,505.2, significantly higher than that
of its close competitors such as Cathay Pacific, China Airlines and Singapore Airlines.

For fiscal year December 2008, the revenue per employee of Cathay Pacific stood at $410,303.1
million, lower compared to Emirates. Similarly, the revenue per employee of China Airlines stood at
$409,619.7 and Singapore Airlines stood at $349,768.9 during the same period. The strong revenue
per employee of the group, as compared to its competitors, indicates its strong productivity and
operational efficiency.

Weaknesses

High debt burden

The group’s holds a substantial amount of debt. As of March 31, 2009, its long term debt stood at
AED15,140 million ($4,123 million), as compared to AED12,301 million ($3,350 million) in FY2008.
At the same time, the group’s share holder’s equity stood at AED16,410 million ($4,469 million),
representing a debt equity ratio of 92%. The debt equity ratio of the group was also higher compared
its competitor Singapore Airlines during FY2009. The debt equity ratio of Singapore Airlines stood
at 12%. The group’s substantial debt may limit its ability to obtain additional financing to fund future
working capital, capital expenditures, acquisitions and other general corporate requirements, which
is a clear disadvantage for the group.

Declining operating efficiency

Emirates recorded declining efficiency in terms of profits and margins. The group's operating profit
was AED2,573.3 million ($700.8 million) in FY2009, a decrease of 42.2% compared to FY2008. Its
net profit reached AED981.7 million ($267.3 million) in FY2009, a decrease of 80.4% compared to

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The Emirates Group
SWOT Analysis

FY2008. Similarly, the operating profit margin declined from 12.2% in FY2008 to 6% FY2009; and
net profit margin decreased from 13.8% in FY2008 to 2.3% in FY2009. The group’s operating and
net profit margins also declined from 14.9% and 13.7% respectively during FY2005, to 6% and 2.3%
respectively, during FY2009. The declining operating efficiency of Emirates is a result of higher fuel
and oil costs, and foreign exchange losses. Continuation of this trend could reduce availability of
resources to pursue growth plans.

In addition, the group’s returns have declined significantly in recent years. Its return on assets (RoA),
return on equity (RoE) and return on capital employed (RoCE) decreased from 11.9%, 33.8% and
14.3% respectively, in FY2008 to 2.1%, 5.9% and 7.7% respectively, in FY2009. Continued weak
returns may adversely affect investor confidence.

Opportunities

Moderate growth in global air freight sector

The global air freight and logistics sector has witnessed moderate growth in recent years. The global
air freight sector generated total revenues of $100 billion in 2008, representing a CAGR of 5.6% for
2004–08. The sector volumes increased with a CAGR of 3.8% during 2004–08, to reach a total of
133.3 billion freight tons kilometers (FTK) in 2008. The performance of the market is forecast to drive
the sector to a value of $119.5 billion by the end of 2013. The group provides cargo and postal
carriage services along with passenger transport to approximately 100 destinations worldwide. The
moderate growth in global air freight sector provides an opportunity for the group to capitalize on
this market and expand its revenues.

Growth in global passenger airline industry

The global airline industry primarily comprising of passenger transportation witnessed significant
growth in recent past. The global airline market generated total revenues of $429.9 billion in 2007,
representing a CAGR of 11.2% for 2003–07. This market is forecast to reach a value of $711 billion
by the end of 2012. The domestic flight passenger segment was the most lucrative for the global
passenger airline industry which carried 1.4 billion passengers in 2007, and is forecast to reach a
volume of 2.4 billion passengers in 2012. Emirates generated nearly 80.5% of the total revenues in
FY2009 from passenger transportation. It is forecast that there will be a marginal growth of 1.2% in
the number of passengers traveling to the Middle East in 2010. The growing global passenger airline
industry provides significant opportunity for the group to further strengthen its network and gain
competitive advantage over its peers.

Growing Dubai tourism industry

The Dubai tourism industry recorded strong revenues in 2008 and the city has delivered on several
key projects in the last year, and more are nearing completion. Metro, the first highly-automated,
driverless trains, which provides residents and tourists with fast and reliable connections, was opened

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The Emirates Group
SWOT Analysis

in September 2009. It provides stops at Emirates Terminal 3 and Dubai International airport. Metro
is planned to operate a total of 47 stations, 29 on the Red Line (four underground and 25 elevated),
and 18 on the Green Line (six underground and 12 elevated) and plans to carry three million
passengers in the first year. Dubai’s hotels recorded 7 million guests and posted revenues of
AED15.25 billion in 2008, an increase of 15% over 2007, according to the Dubai Naturalization and
Residency Department (DNRD). The UAE was recently ranked first for regional tourism in the World
Economic Forum’s Travel and Tourism Competitiveness Index. Dnata Agencies, the company’s
subsidiary, is engaged in meeting the current and future travel demands of the public and the travel
trade with retail and wholesale products distributed in Dubai and, through partner travel agencies,
in countries in the Middle East and West Asia. The launch of several key projects like the Metro and
the focus towards tourism in Dubai will boost the number of tourists visiting the country and provides
significant opportunity for the company to continue its top line growth.

Threats

Global economic downturn

The airline industry has been severely affected by the economic crisis. According to the IMF World
Economy Outlook July 2009, the global GDP growth rate is forecasted to decline from 3.1% in 2008
to -1.4% in 2009. An economic downturn poses challenges for Emirates. The financial turmoil and
credit tightening has led both leisure and business passengers to look for the cheapest fares and
to travel less frequently. The group provides scheduled passenger and cargo services to more than
100 destinations across Europe and Americas, Far East and Australia, Middle East, West Asia and
Indian Ocean, and Africa.

Healthy economic growth is necessary for the positive growth rate of the business. Therefore, further
recession in global economy may harm the group’s business by adversely affecting its revenues,
results of operations, cash flows and financial condition.

Increasing competition from low cost airlines

The emergence of low cost carriers such as China Airlines, Hong Kong Flights, Japan Flights, Jetstar
Asia, Air Asia in the East Asian region, has intensified competition. The low fare charged by these
budget airlines makes the group’s airline operations less competitive. In the long-haul market, the
group is confronted with competition from local operators in most geographical areas like the Middle
East, China and India. In the medium-haul market, low-cost carriers established strong market
positions and continue to grow. The growing number of low cost, and low fare airlines may impact
the group’s market share across all its geographic regions.

Consolidation in airline industry

The airline industry has recently gone through a period of consolidation and transition, consequently
the group has fewer potential partners. Since 1978, the airline industry has undergone substantial

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The Emirates Group
SWOT Analysis

consolidation, and it may in the future undergo additional consolidation. For instance, in 2008, Delta
and Northwest completed a merger. Other developments include the domestic code-share alliance
between United and US Airways, and the merger of America West and US Airways. Further
consolidation could limit the number of potential partners with whom the group may enter into
code-share relationships. The group operates through code share agreements with Air India, Air
Malta, Air Mauritius, Continental Airlines, Japan Airlines, Jet Airways, Korean Airlines, Oman Air,
Philippine Airlines, Royal Air Maroc, South African Airways and Thai Airways for airline services.
Although none of the group’s contracts with its partners allow termination or are amendable in the
event of consolidation. Any additional consolidation within the airline industry may adversely affect
the group’s relationship with its partners.

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Top Competitors

TOP COMPETITORS

The following companies are the major competitors of The Emirates Group

British Airways Plc

Northwest Airlines Corporation
Virgin Atlantic Airways
Mexicana Airlines
China Airlines
Malaysia Airline System Berhad
South African Airways
UAL Corporation
Cathay Pacific Airways Limited

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The Emirates Group
Company View

COMPANY VIEW

A statement by Ahmed bin Saeed Al-Maktoum, Chairman and CEO of the board of Emirates Group
is given below. The statement has been taken from the group’s 2009 annual report

No one could have predicted the global recession which is now impacting every country on earth.
As I have often indicated, airlines are particularly susceptible to the socio-economic conditions
prevailing in the world and this is no ordinary situation.

I agree with my colleague, Giovanni Bisignani, the Director General and CEO of the International
Air Transport Association (IATA) who said, “The state of the airline industry today is grim and we
predict a worldwide loss of US$4.7 billion (AED 17.3 billion), adding to an industry debt of US$170
billion (AED 624 billion) reflecting the rapid deterioration of global economic conditions.”

In fact, as we move into the new financial year, the outlook is not improving.

Although fuel prices are dropping, demand is slowing down and revenues plummeting.

For Emirates, the past year saw the first six months posting record fuel prices with oil rising to US$147
(AED 540) a barrel and then the decrease in demand was followed by declining yields with the
strengthening US dollar against major currencies, causing significant losses. The GBP dropped 28
per cent in value, AUD went down 25 per cent and the EUR fell 16 per cent.

Despite the global meltdown and the doom and gloom associated with this real crisis, and without
trying to minimise the devastating effect it is having on so many countries, businesses and families,
I still believe that 2009/10 will be a year of satisfactory growth for the Emirates Group.

In the financial year 2008/09, the group met these awesome challenges with determination, improved
efficiency and fresh, market-leading initiatives.

We returned a net profit of AED1.49 billion (US$406 million), a 72 per cent decrease on the previous
year’s all-time record profit, but under the circumstances a satisfactory result.

Emirates net profit was AED982 million (US$268 million) and Dnata earned AED 507 million (US$138
million).

It has been forecast that in the Middle East in 2009/10 there will be a slight increase in passenger
growth of 1.2 per cent, though this will be accompanied by an overall increase in capacity of 3.8 per
cent.

We expect continuing fierce competition as we defend our market share in all regions, often facing
“suicidal” air fares from some of the competing airlines. This is a situation which puts pressure on

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Company View

all carriers but we will continue to maintain our high service standards as the fares hit levels which
are unprofitable.

Already, we have tried to respond by introducing new features such as Business Rewards to help
small to medium enterprises benefit from Skywards Miles.

We have not reduced the quality of our award-winning service. Unlike other travel related
organizations, we have not reduced staff numbers. In fact, as usual we have not responded with
knee-jerk reactions as we face an unsettled future.

We know we must remain flexible. We have to make changes to adapt to the new world travel order
and address our costs without affecting the travel convenience and enjoyment of our customers.

We will maintain our commitment to the protection of the environment. We will meet the high
expectations of our passenger and cargo clients. We will ensure the job security of our staff.

In the financial year, there were two major events which involved Emirates and Dnata – the delivery
of Emirates’ first A380 superjumbo and the opening of the new Emirates Terminal 3 at Dubai
International airport. Emirates earned worldwide headlines in both cases but we recognized Dnata’s
important role behind the scenes, in opening the state-of-the-art baggage handling system.

One of the highlights of my year was attending the A380 Reveal Ceremony in Hamburg.

Airbus’ entire workforce in Germany turned out on the tarmac to give us an unforgettable send-off.

We had a plane full of journalists on the A380 flight from Hamburg to Dubai with myself and my
senior colleagues showing them the unique features of this double-decker aviation mammoth,
including the onboard Lounge and the Shower Spa.

I was delighted, too, with the phased launch of our Terminal 3 with the Emirates Group and Dubai
International airport working together to avoid the problems which plagued Heathrow’s Terminal 5.

It was my privilege to lead Emirates’ delegations to various parts of the network, including visits to
Australia, Germany, UK and the USA.

I attended the inaugural celebrations in San Francisco, our fifth gateway in North America, with the
chart-topping Sheryl Crow and Oscar winning Hilary Swank helping to lead the festivities.

We had opened Los Angeles two months earlier with similar glitter and razzmatazz to herald our
arrival on the US West Coast where we had a wonderful Californian welcome.

The five finalists for the Emirates Chairman’s Award for Sales Excellence revealed the extraordinary
people we have and the international nature of our team.

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The Emirates Group
Company View

Japanese Yuri Sunahata based in Dubai won the award for her outstanding ability while the excellent
runners up were UAE national, Mohammed Abdulaziz based in Sanaa, American JJ Catanzavita
from San Francisco, Iranian Shafag Khavendi from Tehran and Arthur Hongchen Zhang from
Shanghai.

In its 50th year, Dnata continued to expand internationally, investing in a contact center company
with operations in Spain, Australia and South Africa, while Dnata Cargo remained at the forefront
of freight handlers with the launch of Calogi, the cargo services portal.

It was a personal pleasure for me to attend the graduation of 36 UAE cadet pilots who had completed
their ab-initio training in Adelaide, Australia and are now undergoing simulator courses at Emirates
Aviation College before joining their 2,226 international colleagues on the flight deck.

In Emirates, we now have 172 captains and first officers who are UAE nationals, less than one tenth
of the pilot workforce but an incredible achievement for the country considering its relatively small
population. These young persons represent the crème-de-la-crème of our university graduates.

Another highlight for me was the retrofitting of the Boeing 777s and A340-300s to bring the interiors
in line with the rest of the fleet.

All the work is being carried out in-house at the Emirates Engineering Centre, underlining the diversity
of the group’s activities.

In addition to Emirates and Dnata, the group’s subsidiary companies are involved in hotels; in-flight
catering; laundry; upmarket gourmet and quick-service restaurants; airport ground handling; freight
and removal services; security; flight training and educational establishments; marine services and
IT software production.

The group and subsidiaries staff count stood at 48,246.

Finally, I can confirm we have no plans to slow down our development plans and will forge ahead
in the future to build the airline, Dnata and the many subsidiary companies. We will shape our services
to meet the ever-changing demands of our many clients around the globe.

I would like to pay a sincere tribute to my staff whose hard work and enthusiasm convinces me that
despite the current downturn, we will emerge stronger, fitter and in fine shape for more profitable
years ahead.

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The Emirates Group
Locations and Subsidiaries

LOCATIONS AND SUBSIDIARIES

Head Office
The Emirates Group
Near Clock Tower
Dubai
ARE
P:9714 708 1111
F:9714 286 4066
http://www.ekgroup.com

Other Locations and Subsidiaries

Emirates Johannesburg Emirates Toronto

Sandton Office Tower 90 Sheppard Avenue East
5 Floor Sandton City Suite 101
C/O 5th Avenue & Rivonia Road Toronto
Johannesburg Ontario
ZAF M2N 6K9
CAN

Emirates Bangkok Emirates Sydney

B.B. Building 2nd Floor Level 10
54 Asoke Road 1 York Street
Sukhumvit 21 Sydney
Khet Wattana New South Wales 2000
Bangkok 10110 AUS
THA

Emirates Moscow Emirates London

5th Floor First Floor
Paveletskaya Tower Block 3 Gloucester Park
Moscow 115054 95 Cromwell Road
RUS London SW7 4DL
GBR

Dnata Cargo Mercator

Dubai Dubai
ARE ARE

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